false
--12-31
Q1
2021
2021-03-31
10-Q
0001792849
92675898
Yes
true
false
Non-accelerated Filer
Yes
HighPeak Energy, Inc.
false
true
Common Stock, par value $0.0001 per share
hpk
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Accounts payable and accrued liabilities. </div></div>Accounts payable and accrued liabilities as of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020 </div>totaled approximately <div style="display: inline; font-style: italic; font: inherit;">$34.8</div> million and <div style="display: inline; font-style: italic; font: inherit;">$22.4</div> million, respectively, including trade accounts payable, revenues payable and accruals for capital expenditures, operating and general and administrative expenses, operating leases and other miscellaneous items.</div></div></div></div></div></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -1pt;"><div style="display: inline; font-weight: bold;">NOTE <div style="display: inline; font-style: italic; font: inherit;">3.</div> Acquisitions</div></div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">During the <div style="display: inline; font-style: italic; font: inherit;">three</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;">2020,</div> the Company spent a total of <div style="display: inline; font-style: italic; font: inherit;">$309,000</div> and <div style="display: inline; font-style: italic; font: inherit;">$3.3</div> million, respectively, to acquire primarily undeveloped acreage, and in the case of the <div style="display: inline; font-style: italic; font: inherit;">2020</div> period, <div style="display: inline; font-style: italic; font: inherit;">three</div> vertical producing properties and <div style="display: inline; font-style: italic; font: inherit;">two</div> salt-water disposal wells in and around the Company's existing properties for future exploration activities in the Midland Basin.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Grenadier Acquisition.</div></div> In <div style="display: inline; font-style: italic; font: inherit;"> June 2019, </div>HighPeak Energy Assets II, LLC (“HighPeak Assets II”) signed a purchase and sale agreement with Grenadier Energy Partners II, LLC (“Grenadier”) to acquire substantially all the oil and natural gas assets of Grenadier, effective <div style="display: inline; font-style: italic; font: inherit;"> June 1, 2019, </div>subject to certain customary closing adjustments for a total purchase price of <div style="display: inline; font-style: italic; font: inherit;">$615.0</div> million. Since HighPeak Assets II was contributed to the Predecessor in the HPK LP business combination, this purchase and sale agreement became part of the Predecessor effective <div style="display: inline; font-style: italic; font: inherit;"> October 1, 2019. </div>A nonrefundable deposit of <div style="display: inline; font-style: italic; font: inherit;">$61.5</div> million was paid to Grenadier in <div style="display: inline; font-style: italic; font: inherit;">2019</div> in addition to a <div style="display: inline; font-style: italic; font: inherit;">$15.0</div> million nonrefundable extension payment in <div style="display: inline; font-style: italic; font: inherit;">2020</div> to extend the potential closing to <div style="display: inline; font-style: italic; font: inherit;"> May 2020. </div>The Grenadier Acquisition was terminated in <div style="display: inline; font-style: italic; font: inherit;"> April 2020 </div>and was <div style="display: inline; font-style: italic; font: inherit;">not</div> consummated and therefore a charge to expense of <div style="display: inline; font-style: italic; font: inherit;">$76.5</div> million was recognized during the <div style="display: inline; font-style: italic; font: inherit;">three</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2020.</div></div></div>
61500000
15000000
76500000
P1Y
312711
3
20000000
1
P90D
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Impact of the COVID-<div style="display: inline; font-style: italic; font: inherit;">19</div> Pandemic. </div></div>A novel strain of the coronavirus disease <div style="display: inline; font-style: italic; font: inherit;">2019</div> ("COVID-<div style="display: inline; font-style: italic; font: inherit;">19"</div>) surfaced in late <div style="display: inline; font-style: italic; font: inherit;">2019</div> and spread around the world,<div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;"> </div></div>including to the United States. In <div style="display: inline; font-style: italic; font: inherit;"> March 2020, </div>the World Health Organization declared COVID-<div style="display: inline; font-style: italic; font: inherit;">19</div> a pandemic, and the President of the United States declared the COVID-<div style="display: inline; font-style: italic; font: inherit;">19</div> outbreak a national emergency. The COVID-<div style="display: inline; font-style: italic; font: inherit;">19</div> pandemic significantly affected the global economy, disrupted global supply chains and created significant volatility in the financial markets. In addition, the COVID-<div style="display: inline; font-style: italic; font: inherit;">19</div> pandemic resulted in travel restrictions, business closures and other restrictions that have disrupted the demand for oil throughout the world and when combined with pressures on the global supply-demand balance for oil and related products, resulted in significant volatility in oil prices beginning late <div style="display: inline; font-style: italic; font: inherit;"> February 2020. </div>The length of this demand disruption is unknown, and there is significant uncertainty regarding the long-term impact of the effects of the COVID-<div style="display: inline; font-style: italic; font: inherit;">19</div> pandemic to global oil demand.</div></div></div></div></div></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -1pt;"><div style="display: inline; font-weight: bold;">NOTE <div style="display: inline; font-style: italic; font: inherit;">5.</div> Exploratory Well Costs</div></div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">The Company capitalizes exploratory well and project costs until a determination is made that the well or project has either found proved reserves, is impaired or is sold. The Company's capitalized exploratory well and project costs are included in proved properties in the condensed consolidated balance sheets. If the exploratory well or project is determined to be impaired, the impaired costs are charged to exploration and abandonments expense.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">The changes in capitalized exploratory well costs are as follows (in thousands):</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </div> <div> <table border="0" cellpadding="0" cellspacing="0" style="margin-right: 5%; font-size: 10pt; font-family: Times New Roman; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="6" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Three Months Ended March 31,</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2021 </div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2020 </div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Successor</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Predecessor</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt; width: 68%;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Beginning capitalized exploratory well costs</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">32,592</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">11,427</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 27pt;">Additions to exploratory well costs</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">42,098</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">46,865</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 27pt;">Reclassification to proved properties</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">(67,445</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">)</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">(17,315</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">)</div> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 27pt;">Exploratory well costs charged to exploration and abandonment expense</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Ending capitalized exploratory well costs</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">7,245</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">40,977</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> </table> </div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -1pt; text-align: justify; text-indent: 25pt;">All capitalized exploratory well costs have been capitalized for less than <div style="display: inline; font-style: italic; font: inherit;">one</div> year based on the date of drilling.</div></div>
13263000
8933000
76500000
2100000
1700000
5500000
2500000
3000000
2
3
P30D
P60D
3596000
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="margin-right: 5%; font-size: 10pt; font-family: Times New Roman; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">March 31, </div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2021</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt; width: 84%;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Approved and authorized awards</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">11,907,006</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Awards granted under plan</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">(9,767,995</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">)</div> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Awards available for future grant</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">2,139,011</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> </table></div>
5000
7500
10000
554000
5466000
5466000
0
3596000
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Subscription receivable.</div></div> <div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;"> </div></div>In accordance with the Financial Accounting Standards Board ("FASB") Accounting Standards Codification (“ASC”) <div style="display: inline; font-style: italic; font: inherit;">505</div>-<div style="display: inline; font-style: italic; font: inherit;">10</div>-<div style="display: inline; font-style: italic; font: inherit;">45</div>-<div style="display: inline; font-style: italic; font: inherit;">2,</div> “<div style="display: inline; font-style: italic;">Receivables for Issuance of Equity,</div>”<div style="display: inline; font-style: italic;"> </div>the Company recorded a subscription receivable as of <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020 </div>related to the exercise of warrants prior to <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020 </div>as the cash was collected before the financial statements were issued or available to be issued. Prior to <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020, </div><div style="display: inline; font-style: italic; font: inherit;">312,711</div> warrants were exercised for cash proceeds of <div style="display: inline; font-style: italic; font: inherit;">$3.6</div> million. Due to the timing of the exercises, the shares underlying the warrants were issued in <div style="display: inline; font-style: italic; font: inherit;"> December 2020 </div>and the proceeds were received subsequent to <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020. </div>The outstanding proceeds were recorded as a subscription receivable in the accompanying balance sheets as of <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020. </div>There is <div style="display: inline; font-style: italic; font: inherit;">no</div> subscription receivable as of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>as all cash related to exercises of warrants was received prior to the balance sheet date.</div></div></div></div></div></div>
34800000
22400000
12760000
7581000
13400000
4200000
16915000
7722000
35000
34000
20525000
12374000
285000
237000
589432000
581426000
966000
966000
966000
302000
0
966000
0
0
29000
0
29000
2293000
2212000
2481000
2343000
35000
34000
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -1pt;"><div style="display: inline; font-weight: bold;">Note <div style="display: inline; font-style: italic; font: inherit;">7.</div> Asset Retirement Obligations </div></div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">The Company's asset retirement obligations primarily relate to the future plugging and abandonment of wells and related facilities. Market risk premiums associated with asset retirement obligations are estimated to represent a component of the Company's credit-adjusted risk-free rate that is utilized in the calculations of asset retirement obligations.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">Asset retirement obligations activity is as follows (in thousands):</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </div> <div> <table border="0" cellpadding="0" cellspacing="0" style="margin-right: 5%; font-size: 10pt; font-family: Times New Roman; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="6" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Three Months Ended March 31,</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2021 </div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2020 </div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Successor</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Predecessor</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt; width: 68%;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Beginning asset retirement obligations</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">2,293</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">2,212</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 27pt;">Liabilities incurred from new wells</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">163</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">97</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 27pt;">Revision of estimates (a)</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">(10</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">)</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 27pt;">Accretion of discount</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">35</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">34</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Ending asset retirement obligations</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">2,481</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">2,343</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> </table> </div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </div> <table cellpadding="0pt" cellspacing="0pt" style="font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; margin-right: auto; min-width: 700px;"> <tr style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <td style="vertical-align: bottom; width: 0%; border-top: thin solid rgb(0, 0, 0); font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; font-variant: normal; margin: 0pt;">(a) The revisions to the Company's asset retirement obligation estimates are primarily due to changes in estimated costs based on experience with the properties and their expected useful lives.</div> </td> </tr> </table> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">As of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020, </div>all asset retirement obligations are considered noncurrent and classified as such in the accompanying consolidated balance sheet.</div></div>
163000
97000
-10000
2481000
2293000
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Asset retirement obligations. </div></div>The Company records a liability for the fair value of an asset retirement obligation in the period in which the associated asset is acquired or placed into service, if a reasonable estimate of fair value can be made. Asset retirement obligations are generally capitalized as part of the carrying value of the long-lived asset to which it relates. Conditional asset retirement obligations meet the definition of liabilities and are recorded when incurred and when fair value can be reasonably estimated. See Note <div style="display: inline; font-style: italic; font: inherit;">7</div> for additional information.</div></div></div></div></div></div>
564327000
537930000
27528000
33295000
0
0
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Presentation. </div></div>In the opinion of management, the unaudited interim condensed consolidated and combined financial statements of the Company as of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020 </div>and for the <div style="display: inline; font-style: italic; font: inherit;">three</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 (</div>Successor), and for the <div style="display: inline; font-style: italic; font: inherit;">three</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2020 (</div>Predecessor) include all adjustments and accruals, consisting only of normal, recurring adjustments and accruals necessary for a fair presentation of the results for the interim periods in conformity with generally accepted accounting principles in the United States ("GAAP"). The operating results for the <div style="display: inline; font-style: italic; font: inherit;">three</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>are <div style="display: inline; font-style: italic; font: inherit;">not</div> indicative of results for a full year.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted in accordance with the rules and regulations of the United States Securities and Exchange Commission (the "SEC"). These unaudited interim condensed consolidated and combined financial statements should be read together with the consolidated and combined financial statements and notes thereto included in the Company's Annual Report on Form <div style="display: inline; font-style: italic; font: inherit;">10</div>-K for the year ended <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020.</div></div></div></div></div></div></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -1pt;"><div style="display: inline; font-weight: bold;">NOTE <div style="display: inline; font-style: italic; font: inherit;">2.</div> Basis of Presentation and Summary of Significant Accounting Policies</div></div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Presentation. </div></div>In the opinion of management, the unaudited interim condensed consolidated and combined financial statements of the Company as of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020 </div>and for the <div style="display: inline; font-style: italic; font: inherit;">three</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 (</div>Successor), and for the <div style="display: inline; font-style: italic; font: inherit;">three</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2020 (</div>Predecessor) include all adjustments and accruals, consisting only of normal, recurring adjustments and accruals necessary for a fair presentation of the results for the interim periods in conformity with generally accepted accounting principles in the United States ("GAAP"). The operating results for the <div style="display: inline; font-style: italic; font: inherit;">three</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>are <div style="display: inline; font-style: italic; font: inherit;">not</div> indicative of results for a full year.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted in accordance with the rules and regulations of the United States Securities and Exchange Commission (the "SEC"). These unaudited interim condensed consolidated and combined financial statements should be read together with the consolidated and combined financial statements and notes thereto included in the Company's Annual Report on Form <div style="display: inline; font-style: italic; font: inherit;">10</div>-K for the year ended <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020.</div></div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Principles of consolidation. </div></div>The condensed consolidated and combined financial statements include the accounts of the Company and its wholly owned subsidiaries since <div style="display: inline; font-style: italic; font: inherit;"> August 22, 2020, </div>and its Predecessors and their wholly owned subsidiaries since their acquisition or formation for all periods prior to <div style="display: inline; font-style: italic; font: inherit;"> August 21, 2020. </div>All material intercompany balances and transactions have been eliminated. Certain reclassifications have been made to prior period amounts to conform to the current period's presentation.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Use of estimates in the preparation of financial statements. </div></div>Preparation of the Company's unaudited interim condensed consolidated and combined financial statements in<div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;"> </div></div>conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Depletion of oil and natural gas properties and evaluations for impairment of proved and unproved oil and natural gas properties, in part, is determined using estimates of proved, probable and possible oil, NGL and natural gas reserves. There are numerous uncertainties inherent in the estimation of quantities of proved, probable and possible reserves and in the projection of future rates of production and the timing of development expenditures. Similarly, evaluations for impairment of proved and unproved oil and natural gas properties are subject to numerous uncertainties including, among others, estimates of future recoverable reserves, commodity price outlooks and future undiscounted and discounted net cash flows. Other items subject to such estimates and assumptions include, but are <div style="display: inline; font-style: italic; font: inherit;">not</div> limited to, the carrying value of oil and natural gas properties, asset retirement obligations, equity-based compensation and estimates of income taxes. Actual results could differ from the estimates and assumptions utilized.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Cash and cash equivalents. </div></div>The Company's cash and cash equivalents include depository accounts held by banks with original issuance maturities of <div style="display: inline; font-style: italic; font: inherit;">90</div> days or less. The Company's cash and cash equivalents are generally held in financial institutions in amounts that <div style="display: inline; font-style: italic; font: inherit;"> may </div>exceed the insurance limits of the Federal Deposit Insurance Corporation. However, management believes that the Company's counterparty risks are minimal based on the reputation and history of the institutions selected.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Accounts receivable. </div></div>The Company's accounts receivables are primarily comprised of oil, NGL and natural gas sales receivables, a current U.S. federal income tax receivable, joint interest receivables and other receivables for which the Company does <div style="display: inline; font-style: italic; font: inherit;">not</div> require collateral security. The Company's share of oil, NGL and natural gas production is sold to various purchasers who must be prequalified under the Company's credit risk policies and procedures. The Company records allowances for doubtful accounts based on the age of accounts receivables and the financial condition of its purchasers. The Company's credit risk related to collecting accounts receivables is mitigated by using credit and other financial criteria to evaluate the credit standing of the entity obligated to make payment on the accounts receivable, and where appropriate, the Company obtains assurances of payment, such as a guarantee by the parent company of the counterparty or other credit support.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">As of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020, </div>the Company's accounts receivables primarily consist of amounts due from the sale of crude oil, NGL and natural gas of <div style="display: inline; font-style: italic; font: inherit;">$13.4</div> million and <div style="display: inline; font-style: italic; font: inherit;">$4.2</div> million, respectively, and are based on estimates of sales volumes and realized prices the Company anticipates it will receive, a current U.S. federal income tax receivable of <div style="display: inline; font-style: italic; font: inherit;">$3.2</div> million and <div style="display: inline; font-style: italic; font: inherit;">$3.2</div> million, respectively, and joint interest receivables of <div style="display: inline; font-style: italic; font: inherit;">$311,000</div> and <div style="display: inline; font-style: italic; font: inherit;">$345,000,</div> respectively. The Company routinely reviews outstanding balances and establishes allowances for bad debts equal to the estimable portions of accounts receivable for which failure to collect is considered probable. As of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020, </div>the Company had <div style="display: inline; font-style: italic; font: inherit;"><div style="display: inline; font-style: italic; font: inherit;">no</div></div> allowance for doubtful accounts.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Subscription receivable.</div></div> <div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;"> </div></div>In accordance with the Financial Accounting Standards Board ("FASB") Accounting Standards Codification (“ASC”) <div style="display: inline; font-style: italic; font: inherit;">505</div>-<div style="display: inline; font-style: italic; font: inherit;">10</div>-<div style="display: inline; font-style: italic; font: inherit;">45</div>-<div style="display: inline; font-style: italic; font: inherit;">2,</div> “<div style="display: inline; font-style: italic;">Receivables for Issuance of Equity,</div>”<div style="display: inline; font-style: italic;"> </div>the Company recorded a subscription receivable as of <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020 </div>related to the exercise of warrants prior to <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020 </div>as the cash was collected before the financial statements were issued or available to be issued. Prior to <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020, </div><div style="display: inline; font-style: italic; font: inherit;">312,711</div> warrants were exercised for cash proceeds of <div style="display: inline; font-style: italic; font: inherit;">$3.6</div> million. Due to the timing of the exercises, the shares underlying the warrants were issued in <div style="display: inline; font-style: italic; font: inherit;"> December 2020 </div>and the proceeds were received subsequent to <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020. </div>The outstanding proceeds were recorded as a subscription receivable in the accompanying balance sheets as of <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020. </div>There is <div style="display: inline; font-style: italic; font: inherit;">no</div> subscription receivable as of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>as all cash related to exercises of warrants was received prior to the balance sheet date.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Inventory. </div></div>Inventory is comprised primarily of oil and natural gas drilling or repair items such as tubing, casing, proppant used to fracture-stimulate oil and natural gas wells, water, chemicals, operating supplies and ordinary maintenance materials and parts. The materials and supplies inventory is primarily acquired for use in future drilling operations or repair operations and is carried at the lower of cost or net realizable value, on a weighted average cost basis. Valuation allowances for materials and supplies inventories are recorded as reductions to the carrying values of the materials and supplies inventories in the Company's condensed consolidated balance sheet and as charges to other expense in the condensed consolidated statements of operations. The Company's materials and supplies inventory as of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020 </div>is <div style="display: inline; font-style: italic; font: inherit;">$109,000</div> and <div style="display: inline; font-style: italic; font: inherit;">$120,000,</div> respectively, and the Company has <div style="display: inline; font-style: italic; font: inherit;"><div style="display: inline; font-style: italic; font: inherit;">not</div></div> recognized any valuation allowance to date.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Oil and natural gas properties. </div></div>The Company utilizes the successful efforts method of accounting for its oil and natural gas properties. Under this method, all costs associated with productive wells and nonproductive development wells are capitalized while nonproductive exploration costs and geological and geophysical expenditures are expensed.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">The Company does <div style="display: inline; font-style: italic; font: inherit;">not</div> carry the costs of drilling an exploratory well as an asset in its consolidated balance sheet following the completion of drilling unless both of the following conditions are met: (i) the well has found a sufficient quantity of reserves to justify its completion as a producing well and (ii) the Company is making sufficient progress assessing the reserves and the economic and operating viability of the project.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">Due to the capital-intensive nature and the geographical location of certain projects, it <div style="display: inline; font-style: italic; font: inherit;"> may </div>take an extended period of time to evaluate the future potential of an exploration project and the economics associated with making a determination on its commercial viability. In these instances, the project's feasibility is <div style="display: inline; font-style: italic; font: inherit;">not</div> contingent upon price improvements or advances in technology, but rather the Company's ongoing efforts and expenditures related to accurately predict the hydrocarbon recoverability based on well information, gaining access to other companies' production data in the area, transportation or processing facilities and/or getting partner approval to drill additional appraisal wells. These activities are ongoing and are being pursued constantly. Consequently, the Company's assessment of suspended exploratory well costs is continuous until a decision can be made that the project has found sufficient proved reserves to sanction the project or is noncommercial and is charged to exploration and abandonment expense. See Note <div style="display: inline; font-style: italic; font: inherit;">5</div> for additional information.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">The capitalized costs of proved properties are depleted using the unit-of-production method based on proved reserves for leasehold costs and proved reserves for drilling, completion and other oil and natural gas property costs. Costs of unproved leasehold costs are excluded from depletion until proved reserves are established or, if unsuccessful, impairment is determined.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">Proceeds from the sales of individual properties and the capitalized costs of individual properties sold or abandoned are credited and charged, respectively, to accumulated depletion, depreciation and amortization, if doing so does <div style="display: inline; font-style: italic; font: inherit;">not</div> materially impact the depletion rate of an amortization base. Generally, <div style="display: inline; font-style: italic; font: inherit;">no</div> gain or loss is recorded until an entire amortization base is sold. However, gain or loss is recorded from the sale of less than an entire amortization base if the disposition is significant enough to materially impact the depletion rate of the remaining properties in the amortization base.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">The Company performs assessments of its long-lived assets to be held and used, including proved oil and natural gas properties accounted for under the successful efforts method of accounting, whenever events or circumstances indicate that the carrying value of those assets <div style="display: inline; font-style: italic; font: inherit;"> may </div><div style="display: inline; font-style: italic; font: inherit;">not</div> be recoverable. An impairment loss is indicated if the sum of the expected future cash flows is less than the carrying amount of the assets. In these circumstances, the Company recognizes an impairment charge for the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">Unproved oil and natural gas properties are periodically assessed for impairment on a project-by-project basis. These impairment assessments are affected by the results of exploration activities, commodity price outlooks, planned future sales or expirations of all or a portion of such projects. If the estimated future net cash flows attributable to such projects are <div style="display: inline; font-style: italic; font: inherit;">not</div> expected to be sufficient to fully recover the costs invested in each project, the Company will recognize an impairment charge at that time.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Other property and equipment, net. </div></div>Other property and equipment is recorded at cost. The carrying values of other property and equipment, net of accumulated depreciation of <div style="display: inline; font-style: italic; font: inherit;">$285,000</div> and <div style="display: inline; font-style: italic; font: inherit;">$237,000</div> as of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020, </div>respectively, are as follows (in thousands):</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -1pt; text-align: justify; text-indent: 25pt;"> </div> <div> <table border="0" cellpadding="0" cellspacing="0" style="margin-right: 5%; font-size: 10pt; font-family: Times New Roman; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">March 31,</div></div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2021</div></div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">December 31, </div></div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2020</div></div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt; width: 68%;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Land</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">725</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">725</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Information technology</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">250</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">292</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Transportation equipment</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">39</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">41</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Leasehold improvements</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">20</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">24</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Field equipment</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">10</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">10</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Total other property and equipment, net</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">1,044</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">1,092</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> </table> </div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">Other property and equipment is depreciated over its estimated useful life on a straight-line basis. Land is <div style="display: inline; font-style: italic; font: inherit;">not</div> depreciated. Information technology is generally depreciated over <div style="display: inline; font-style: italic; font: inherit;">three</div> years, transportation equipment is generally depreciated over <div style="display: inline; font-style: italic; font: inherit;">five</div> years and field equipment is generally depreciated over <div style="display: inline; font-style: italic; font: inherit;">seven</div> years. Leasehold improvements are amortized over the lesser of their estimated useful lives or the underlying terms of the associated leases.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset <div style="display: inline; font-style: italic; font: inherit;"> may </div><div style="display: inline; font-style: italic; font: inherit;">not</div> be recoverable. If such assets are considered to be impaired, the impairment to be recorded is measured by the amount by which the carrying amount of the asset exceeds its estimated fair value. The estimated fair value is determined using either a discounted future cash flow model or another appropriate fair value method.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Debt issuance costs. </div></div>The Company has paid a total of <div style="display: inline; font-style: italic; font: inherit;">$407,000</div> in debt issuance costs, <div style="display: inline; font-style: italic; font: inherit;">$2,000</div> of which was incurred during the <div style="display: inline; font-style: italic; font: inherit;">three</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021, </div>related to its new revolving credit facility. Amortization based on the straight-line method over the term of the revolving credit facility which approximates the interest rate method was <div style="display: inline; font-style: italic; font: inherit;">$29,000</div> and <div style="display: inline; font-style: italic; font: inherit;">zero</div> during the <div style="display: inline; font-style: italic; font: inherit;">three</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;">2020,</div> respectively. As of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020, </div>the net debt issuance costs are included in noncurrent assets on the accompanying consolidated balance sheet due to the fact that the revolving credit facility was undrawn at the time. In the future, these net costs will be included with long-term debt, if any, in accordance with GAAP. See Note <div style="display: inline; font-style: italic; font: inherit;">6</div> for additional information regarding the Company's new revolving credit facility.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Leases. </div></div>The Company enters into leases for drilling rigs, storage tanks, equipment and buildings and recognizes lease expense on a straight-line basis over the lease term. Lease right-of-use assets and liabilities are initially recorded on the lease commencement date based on the present value of lease payments over the lease term. As most of the Company's lease contracts do <div style="display: inline; font-style: italic; font: inherit;">not</div> provide an implicit discount rate, the Company uses its incremental borrowing rate, which is determined based on information available at the commencement date of a lease. Leases <div style="display: inline; font-style: italic; font: inherit;"> may </div>include renewal, purchase or termination options that can extend or shorten the term of a lease. The exercise of those options is at the Company's sole discretion and is evaluated at inception and throughout the contract to determine if a modification of the lease term is required. Leases with an initial term of <div style="display: inline; font-style: italic; font: inherit;">12</div> months or less are <div style="display: inline; font-style: italic; font: inherit;">not</div> recorded as lease right-of-use assets and liability. See Note <div style="display: inline; font-style: italic; font: inherit;">9</div> for additional information.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Accounts payable and accrued liabilities. </div></div>Accounts payable and accrued liabilities as of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020 </div>totaled approximately <div style="display: inline; font-style: italic; font: inherit;">$34.8</div> million and <div style="display: inline; font-style: italic; font: inherit;">$22.4</div> million, respectively, including trade accounts payable, revenues payable and accruals for capital expenditures, operating and general and administrative expenses, operating leases and other miscellaneous items.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Asset retirement obligations. </div></div>The Company records a liability for the fair value of an asset retirement obligation in the period in which the associated asset is acquired or placed into service, if a reasonable estimate of fair value can be made. Asset retirement obligations are generally capitalized as part of the carrying value of the long-lived asset to which it relates. Conditional asset retirement obligations meet the definition of liabilities and are recorded when incurred and when fair value can be reasonably estimated. See Note <div style="display: inline; font-style: italic; font: inherit;">7</div> for additional information.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Revenue recognition</div></div><div style="display: inline; font-weight: bold;">. </div>The Company follows FASB ASC <div style="display: inline; font-style: italic; font: inherit;">606,</div> “Revenue from Contracts with Customers,” (“ASC <div style="display: inline; font-style: italic; font: inherit;">606”</div>) whereby the Company recognizes revenues from the sales of oil and natural gas to its purchasers and presents them disaggregated on the Company's condensed consolidated and combined statements of operations.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">The Company enters into contracts with purchasers to sell its oil and natural gas production. Revenue on these contracts is recognized in accordance with the <div style="display: inline; font-style: italic; font: inherit;">five</div>-step revenue recognition model prescribed in ASC <div style="display: inline; font-style: italic; font: inherit;">606.</div> Specifically, revenue is recognized when the Company's performance obligations under these contracts are satisfied, which generally occurs with the transfer of control of the oil and natural gas to the purchaser. Control is generally considered transferred when the following criteria are met: (i) transfer of physical custody, (ii) transfer of title, (iii) transfer of risk of loss and (iv) relinquishment of any repurchase rights or other similar rights. Given the nature of the products sold, revenue is recognized at a point in time based on the amount of consideration the Company expects to receive in accordance with the price specified in the contract. Consideration under the oil and natural gas marketing contracts is typically received from the purchaser <div style="display: inline; font-style: italic; font: inherit;">one</div> to <div style="display: inline; font-style: italic; font: inherit;">two</div> months after production. At <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020, </div>the Company had receivables related to contracts with purchasers of approximately <div style="display: inline; font-style: italic; font: inherit;">$13.4</div> million and <div style="display: inline; font-style: italic; font: inherit;">$4.2</div> million, respectively. </div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-style: italic;">Oil Contracts. </div>The Company's oil marketing contracts transfer physical custody and title at or near the wellhead, which is generally when control of the oil has been transferred to the purchaser. The oil produced is sold under contracts using market-based pricing which is then adjusted for the differentials based upon delivery location and oil quality. Since the differentials are incurred after the transfer of control of the oil, the differentials are included in oil sales on the consolidated and combined statements of operations as they represent part of the transaction price of the contract.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-style: italic;">Natural Gas Contracts. </div>The majority of the Company's natural gas is sold at the lease location, which is generally when control of the natural gas has been transferred to the purchaser. The natural gas is sold under (i) percentage of proceeds processing contracts or (ii) a hybrid of percentage of proceeds and fee-based contracts. Under the majority of the Company's contracts, the purchaser gathers the natural gas in the field where it is produced and transports it to natural gas processing plants where NGL products are extracted. The NGL products and remaining residue natural gas are then sold by the purchaser. Under percentage of proceeds and hybrid percentage of proceeds and fee-based contracts, the Company receives a percentage of the value for the extracted liquids and the residue natural gas. Since control of the natural gas transfers upstream of the transportation and processing activities, revenue is recognized as the net amount received from the purchaser.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -1pt; text-align: justify; text-indent: 25pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">The Company does <div style="display: inline; font-style: italic; font: inherit;">not</div> disclose the value of unsatisfied performance obligations under its contracts with customers as it applies the practical exemption in accordance with ASC <div style="display: inline; font-style: italic; font: inherit;">606.</div> The exemption, as described in ASC <div style="display: inline; font-style: italic; font: inherit;">606</div>-<div style="display: inline; font-style: italic; font: inherit;">10</div>-<div style="display: inline; font-style: italic; font: inherit;">50</div>-<div style="display: inline; font-style: italic; font: inherit;">14</div>(a), applies to variable consideration that is recognized as control of the product is transferred to the customer. Since each unit of product represents a separate performance obligation, future volumes are wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations is <div style="display: inline; font-style: italic; font: inherit;">not</div> required.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Income taxes. </div></div>The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the carrying amounts for income tax purposes and net operating loss and tax credit carryforwards. The amount of deferred taxes on these temporary differences is determined using the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, as applicable, based on tax rates and laws in the respective tax jurisdiction enacted as of the balance sheet date.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">The Company reviews its deferred tax assets for recoverability and establishes a valuation allowance based on projected future taxable income, applicable tax strategies and the expected timing of the reversals of existing temporary differences. A valuation allowance is provided when it is more likely than <div style="display: inline; font-style: italic; font: inherit;">not</div> (likelihood of greater than <div style="display: inline; font-style: italic; font: inherit;">50</div> percent) that some portion or all the deferred tax assets will <div style="display: inline; font-style: italic; font: inherit;">not</div> be realized. The Company has <div style="display: inline; font-style: italic; font: inherit;">not</div> established a valuation allowance as of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020.</div></div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than <div style="display: inline; font-style: italic; font: inherit;">not</div> that the tax position will be sustained upon examination by the taxing authorities, based upon the technical merits of the position. If all or a portion of the unrecognized tax benefit is sustained upon examination by the taxing authorities, the tax benefit will be recognized as a reduction to the Company's deferred tax liability and will affect the Company's effective tax rate in the period it is recognized. See Note <div style="display: inline; font-style: italic; font: inherit;">12</div> for addition information.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">The Company records any tax-related interest charges as interest expense and any tax-related penalties as other expense in the condensed consolidated and combined statements of operations of which there have been <div style="display: inline; font-style: italic; font: inherit;">none</div> to date.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">Prior to <div style="display: inline; font-style: italic; font: inherit;"> August 21, 2020, </div>the Predecessors did <div style="display: inline; font-style: italic; font: inherit;">not</div> record a provision for U.S. federal income tax because the Predecessors were treated as partnerships for U.S. federal income tax purposes and, as such, the partners of the Predecessors reported their share of the Company's income or loss on their respective income tax returns. The Predecessors were required to file tax returns on Form <div style="display: inline; font-style: italic; font: inherit;">1065</div> with the Internal Revenue Service (“IRS”). The <div style="display: inline; font-style: italic; font: inherit;">2017</div> to <div style="display: inline; font-style: italic; font: inherit;">2019</div> tax years remain open to examination.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">The Predecessors recognize in their condensed consolidated and combined financial statements the effect of a tax position, if that position is more likely than <div style="display: inline; font-style: italic; font: inherit;">not</div> to be sustained upon examination, including resolution of any appeals or litigation processes, based upon the technical merits of the position. Tax positions taken related to the Predecessors' status as limited partnerships, and state filing requirements have been reviewed, and management is of the opinion that they would more likely than <div style="display: inline; font-style: italic; font: inherit;">not</div> be sustained by examination. Accordingly, the Company has <div style="display: inline; font-style: italic; font: inherit;">not</div> recorded an income tax liability for uncertain tax benefits for periods prior to <div style="display: inline; font-style: italic; font: inherit;"> August 21, 2020. </div>Under the new centralized partnership audit rules effective for tax years beginning after <div style="display: inline; font-style: italic; font: inherit;">2017,</div> the IRS assesses and collects underpayments of tax from the partnership instead of from each partner. The partnership <div style="display: inline; font-style: italic; font: inherit;"> may </div>be able to pass the adjustments through to its partners by making a push-out election or, if eligible, by electing out of the centralized partnership audit rules. The collection of tax from the partnership is only an administrative convenience for the IRS to collect any underpayment of income taxes including interest and penalties. Income taxes on partnership income, regardless of who pays the tax or when the tax is paid, is attributed to the partners. Any payment made by the Company as a result of an IRS examination will be treated as an expense from the Company in the condensed consolidated and combined financial statements.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">The Company is also subject to Texas Margin Tax. The Company realized <div style="display: inline; font-style: italic; font: inherit;">no</div> Texas Margin Tax in the accompanying condensed consolidated and combined financial statements as we do <div style="display: inline; font-style: italic; font: inherit;">not</div> anticipate owing any Texas Margin Tax for the periods presented.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Stock-based compensation. </div></div>Stock-based compensation expense for stock options (“Equity Awards”) is measured at the grant date or modification date, as applicable, using the fair value of the award, and is recorded, net of forfeitures, on a straight-line basis over the requisite service period of the respective award. The fair value of Equity Awards is determined on the grant date or modification date, as applicable, using a Black-Scholes option valuation model with the following inputs; (i) the grant date's closing stock price, (ii) the exercise price of the stock options, (iii) the expected term of the stock option, (iv) the estimated risk-free adjusted interest rate for the duration of the option's expected term, (v) the expected annual dividend yield on the underlying stock and (vi) the expected volatility over the option's expected term.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">Stock-based compensation for HighPeak Energy common stock issued to directors with <div style="display: inline; font-style: italic; font: inherit;">no</div> restrictions thereon, is measured at the grant date using the fair value of the award and is recorded as stock-based compensation in the accompanying financial statements immediately. If restricted stock is awarded to employees or directors in the future, as the case <div style="display: inline; font-style: italic; font: inherit;"> may </div>be, stock-based compensation will be recognized on a straight-line basis over the requisite service period of the respective award.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt; text-align: justify;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Segments. </div></div>Based on the Company's organizational structure, the Company has <div style="display: inline; font-style: italic; font: inherit;">one</div> operating segment, which is oil and natural gas development, exploration and production. In addition, the Company has a single, company-wide management team that allocates capital resources to maximize profitability and measures financial performance as a single enterprise.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Impact of the COVID-<div style="display: inline; font-style: italic; font: inherit;">19</div> Pandemic. </div></div>A novel strain of the coronavirus disease <div style="display: inline; font-style: italic; font: inherit;">2019</div> ("COVID-<div style="display: inline; font-style: italic; font: inherit;">19"</div>) surfaced in late <div style="display: inline; font-style: italic; font: inherit;">2019</div> and spread around the world,<div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;"> </div></div>including to the United States. In <div style="display: inline; font-style: italic; font: inherit;"> March 2020, </div>the World Health Organization declared COVID-<div style="display: inline; font-style: italic; font: inherit;">19</div> a pandemic, and the President of the United States declared the COVID-<div style="display: inline; font-style: italic; font: inherit;">19</div> outbreak a national emergency. The COVID-<div style="display: inline; font-style: italic; font: inherit;">19</div> pandemic significantly affected the global economy, disrupted global supply chains and created significant volatility in the financial markets. In addition, the COVID-<div style="display: inline; font-style: italic; font: inherit;">19</div> pandemic resulted in travel restrictions, business closures and other restrictions that have disrupted the demand for oil throughout the world and when combined with pressures on the global supply-demand balance for oil and related products, resulted in significant volatility in oil prices beginning late <div style="display: inline; font-style: italic; font: inherit;"> February 2020. </div>The length of this demand disruption is unknown, and there is significant uncertainty regarding the long-term impact of the effects of the COVID-<div style="display: inline; font-style: italic; font: inherit;">19</div> pandemic to global oil demand.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Adoption of new accounting standards. </div></div>In <div style="display: inline; font-style: italic; font: inherit;"> December 2019, </div>the FASB issued Accounting Standards Update (“ASU”) <div style="display: inline; font-style: italic; font: inherit;">No.</div> <div style="display: inline; font-style: italic; font: inherit;">2019</div>-<div style="display: inline; font-style: italic; font: inherit;">12,</div> “<div style="display: inline; font-style: italic;">Simplifying the Accounting for Income Taxes (Topic <div style="display: inline; font-style: italic; font: inherit;">740</div>)</div>”. The new guidance simplifies the accounting for income taxes by eliminating certain exceptions related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period, hybrid taxes, and the recognition of deferred tax liabilities for outside basis differences. It also clarifies and simplifies other aspects of the accounting for income taxes. Amendments are to be applied prospectively, except for certain amendments that are to be applied either retrospectively or with a modified retrospective approach through a cumulative effect adjustment recorded to retained earnings. The Company adopted ASU <div style="display: inline; font-style: italic; font: inherit;">2019</div>-<div style="display: inline; font-style: italic; font: inherit;">12</div> on <div style="display: inline; font-style: italic; font: inherit;"> January 1, 2021, </div>which did <div style="display: inline; font-style: italic; font: inherit;">not</div> have a material impact on the Company's condensed consolidated and combined financial statements.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">New accounting pronouncements. </div></div>The Company has evaluated recently issued, but <div style="display: inline; font-style: italic; font: inherit;">not</div> yet effective, accounting pronouncements and does <div style="display: inline; font-style: italic; font: inherit;">not</div> believe they would have a material effect on the Company's condensed consolidated and combined financial statements.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -1pt;"><div style="display: inline; font-weight: bold;">NOTE <div style="display: inline; font-style: italic; font: inherit;">1.</div> Organization and Nature of Operations</div></div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 27pt;">HighPeak Energy, Inc. ("HighPeak Energy" the "Company," or the “Successor”) is a Delaware corporation, initially formed in <div style="display: inline; font-style: italic; font: inherit;"> October 2019 </div>as a wholly owned subsidiary of Pure Acquisition Corp (“Pure”), a Delaware corporation, formed in <div style="display: inline; font-style: italic; font: inherit;"> November 2017, </div>which was a special purpose acquisition company for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination involving Pure and <div style="display: inline; font-style: italic; font: inherit;">one</div> or more businesses. See the Company's Annual Report on Form <div style="display: inline; font-style: italic; font: inherit;">10</div>-K for the year ended <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020 </div>regarding the business combination which resulted in the Company becoming the parent company and Pure becoming a wholly owned subsidiary along with the businesses acquired.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 27pt;">HighPeak Energy's common stock and warrants are listed and traded on the Nasdaq Global Market (the "Nasdaq") under the ticker symbols “HPK” and “HPKEW,” respectively. HighPeak Energy's Contingent Value Rights (“CVRs”) are currently traded on the Over-The-Counter market, although the Company has applied for listing on the Nasdaq. The Company is an independent oil and natural gas exploration and production company that explores for, develops and produces oil, NGL and natural gas in the Permian Basin in West Texas, more specifically, the Midland Basin. Our acreage is composed of <div style="display: inline; font-style: italic; font: inherit;">two</div> core areas with the northern block named Flat Top and the southern block named Signal Peak.</div></div>
42098000
46865000
32592000
11427000
7245000
40977000
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="margin-right: 5%; font-size: 10pt; font-family: Times New Roman; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="6" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Three Months Ended March 31,</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2021 </div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2020 </div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Successor</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Predecessor</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt; width: 68%;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Beginning capitalized exploratory well costs</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">32,592</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">11,427</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 27pt;">Additions to exploratory well costs</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">42,098</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">46,865</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 27pt;">Reclassification to proved properties</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">(67,445</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">)</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">(17,315</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">)</div> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 27pt;">Exploratory well costs charged to exploration and abandonment expense</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Ending capitalized exploratory well costs</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">7,245</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">40,977</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> </table></div>
9638000
19552000
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Cash and cash equivalents. </div></div>The Company's cash and cash equivalents include depository accounts held by banks with original issuance maturities of <div style="display: inline; font-style: italic; font: inherit;">90</div> days or less. The Company's cash and cash equivalents are generally held in financial institutions in amounts that <div style="display: inline; font-style: italic; font: inherit;"> may </div>exceed the insurance limits of the Federal Deposit Insurance Corporation. However, management believes that the Company's counterparty risks are minimal based on the reputation and history of the institutions selected.</div></div></div></div></div></div>
19552000
22711000
9638000
25649000
-9914000
2938000
11.50
11.50
2.125
2.125
9500174
10225472
10209300
10209300
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -1pt;"><div style="display: inline; font-weight: bold;">NOTE <div style="display: inline; font-style: italic; font: inherit;">9.</div> Commitments and Contingencies</div></div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Leases. </div></div>The Company adopted ASC Topic <div style="display: inline; font-style: italic; font: inherit;">842,</div> “Leases” electing the transition method which permits entities to change the date of initial application to the beginning of the year of adoption and to recognize the effects of applying the new standard as a cumulative-effect adjustment to the opening balance of retained earnings. The Company elected this transition approach, however the cumulative impact of adoption in the opening balance of retained earnings as of <div style="display: inline; font-style: italic; font: inherit;"> January 1, 2020 </div>was <div style="display: inline; font-style: italic; font: inherit;">zero</div>. Therefore, as of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020 </div>the Company had operating right-of-use assets totaling <div style="display: inline; font-style: italic; font: inherit;">$371,000</div> and <div style="display: inline; font-style: italic; font: inherit;">$506,000,</div> respectively, included in other noncurrent assets and operating lease liabilities totaling <div style="display: inline; font-style: italic; font: inherit;">$374,000</div> and <div style="display: inline; font-style: italic; font: inherit;">$508,000,</div> respectively, <div style="display: inline; font-style: italic; font: inherit;">$322,000</div> and <div style="display: inline; font-style: italic; font: inherit;">$430,000,</div> respectively, of which are included in other current liabilities and <div style="display: inline; font-style: italic; font: inherit;">$52,000</div> and <div style="display: inline; font-style: italic; font: inherit;">$78,000,</div> respectively, are included in other noncurrent liabilities on the accompanying condensed consolidated balance sheets. The Company does <div style="display: inline; font-style: italic; font: inherit;">not</div> currently have any finance right-of-use leases. Maturities of the operating lease obligations are as follows (in thousands):</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </div> <div> <table border="0" cellpadding="0" cellspacing="0" style="margin-right: 5%; font-size: 10pt; font-family: Times New Roman; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">March 31,</div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2021</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt; width: 84%;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Remainder of 2021</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">328</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">2022</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">53</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Total lease payments</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">381</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 18pt;">Less present value discount</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">(7</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">)</div> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Present value of lease liabilities</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">374</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> </table> </div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Legal actions. </div></div>From time to time, the Company <div style="display: inline; font-style: italic; font: inherit;"> may </div>be a party to various proceedings and claims incidental to its business. While many of these matters involve inherent<div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;"> </div></div>uncertainty, the Company believes that the amount of the liability, if any, ultimately incurred with respect to these proceedings and claims will <div style="display: inline; font-style: italic; font: inherit;">not</div> have a material adverse effect on the Company's consolidated financial position as a whole or on its liquidity, capital resources or future annual results of operations. The Company records reserves for contingencies when information available indicates that a loss is probable, and the amount of the loss can be reasonably estimated.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Indemnifications. </div></div>The Company has agreed to indemnify its directors, officers and certain employees and agents with respect to claims and damages arising from acts or omissions taken in such capacity, as well as with respect to certain litigation.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Environmental. </div></div>Environmental expenditures that relate to an existing condition caused by past operations and that have <div style="display: inline; font-style: italic; font: inherit;">no</div> future economic benefits are expensed. Environmental expenditures that extend the life of the related property or mitigate or prevent future environmental contamination are capitalized. Liabilities for expenditures that will <div style="display: inline; font-style: italic; font: inherit;">not</div> qualify for capitalization are recorded when environmental assessment and/or remediation is probable, and the costs can be reasonably estimated. Such liabilities are undiscounted unless the timing of cash payments for the liability is fixed or reliably determinable. Environmental liabilities normally involve estimates that are subject to revision until settlement or remediation occurs.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Salt-Water Disposal Commitments. </div></div>The Company has committed to deliver a total of <div style="display: inline; font-style: italic; font: inherit;">5.5</div> MMBbl of produced water for disposal with <div style="display: inline; font-style: italic; font: inherit;">two</div> different <div style="display: inline; font-style: italic; font: inherit;">third</div>-party salt-water disposal companies, including <div style="display: inline; font-style: italic; font: inherit;">2.5</div> MMBbl between <div style="display: inline; font-style: italic; font: inherit;"> September 30, 2020 </div>and <div style="display: inline; font-style: italic; font: inherit;"> September 30, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;">3.0</div> MMBbl between <div style="display: inline; font-style: italic; font: inherit;"> July 24, 2020 </div>and <div style="display: inline; font-style: italic; font: inherit;"> July 24, 2022. </div>As of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021, </div>the Company has delivered approximately <div style="display: inline; font-style: italic; font: inherit;">2.1</div> MMBbl and <div style="display: inline; font-style: italic; font: inherit;">1.7</div> MMBbl, respectively under the <div style="display: inline; font-style: italic; font: inherit;">two</div> agreements. Both agreements require a payment for any volumes <div style="display: inline; font-style: italic; font: inherit;">not</div> delivered should the Company <div style="display: inline; font-style: italic; font: inherit;">not</div> perform under the agreements, indicating a remaining monetary commitment of approximately <div style="display: inline; font-style: italic; font: inherit;">$760,000</div> as of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021. </div>Given the current production levels coupled with the wells planned to come on production during the remainder of <div style="display: inline; font-style: italic; font: inherit;">2021</div> and in to <div style="display: inline; font-style: italic; font: inherit;">2022,</div> the Company expects to meet the volume commitments under these agreements.</div></div>
21694763
0.0001
0.0001
600000000
600000000
92675898
91967565
92675898
91967565
9000
9000
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -1pt;"><div style="display: inline; font-weight: bold;">NOTE <div style="display: inline; font-style: italic; font: inherit;">11.</div> Major Customers</div></div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">Lion Oil Trading and Transportation, LLC (“Lion”) purchased approximately <div style="display: inline; font-style: italic; font: inherit;">96%</div> of the Company's crude oil, NGL and natural gas during the <div style="display: inline; font-style: italic; font: inherit;">three</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021. </div>Enlink Crude Purchasing, LLC purchased approximately <div style="display: inline; font-style: italic; font: inherit;">88%</div> of the Company's crude oil, NGL and natural gas during the <div style="display: inline; font-style: italic; font: inherit;">three</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2020. </div>Based on the current demand for oil and natural gas and the availability of other purchasers, management believes the loss of these major purchasers would <div style="display: inline; font-style: italic; font: inherit;">not</div> have a material adverse effect on our financial condition and results of operations because crude oil and natural gas are fungible products with well-established markets and numerous purchasers.</div></div>
0.96
0.88
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Principles of consolidation. </div></div>The condensed consolidated and combined financial statements include the accounts of the Company and its wholly owned subsidiaries since <div style="display: inline; font-style: italic; font: inherit;"> August 22, 2020, </div>and its Predecessors and their wholly owned subsidiaries since their acquisition or formation for all periods prior to <div style="display: inline; font-style: italic; font: inherit;"> August 21, 2020. </div>All material intercompany balances and transactions have been eliminated. Certain reclassifications have been made to prior period amounts to conform to the current period's presentation.</div></div></div></div></div></div>
760000
19805000
8951000
0.005
0.0325
0.00125
0
0
500000000
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Debt issuance costs. </div></div>The Company has paid a total of <div style="display: inline; font-style: italic; font: inherit;">$407,000</div> in debt issuance costs, <div style="display: inline; font-style: italic; font: inherit;">$2,000</div> of which was incurred during the <div style="display: inline; font-style: italic; font: inherit;">three</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021, </div>related to its new revolving credit facility. Amortization based on the straight-line method over the term of the revolving credit facility which approximates the interest rate method was <div style="display: inline; font-style: italic; font: inherit;">$29,000</div> and <div style="display: inline; font-style: italic; font: inherit;">zero</div> during the <div style="display: inline; font-style: italic; font: inherit;">three</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;">2020,</div> respectively. As of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020, </div>the net debt issuance costs are included in noncurrent assets on the accompanying consolidated balance sheet due to the fact that the revolving credit facility was undrawn at the time. In the future, these net costs will be included with long-term debt, if any, in accordance with GAAP. See Note <div style="display: inline; font-style: italic; font: inherit;">6</div> for additional information regarding the Company's new revolving credit facility.</div></div></div></div></div></div>
1115000
40013000
38898000
18565000
12880000
15300000
9725000
31000
31000
3234000
3124000
0
0
40013000
38898000
58578000
51778000
56000
0
0.04
1
0.8
50000
50000
12963000
3356000
61.4
61.4
61.4
61.4
61.4
61.4
61.4
152500
230000
230000
612500
225000
75000
300000
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -1pt;"><div style="display: inline; font-weight: bold;">NOTE <div style="display: inline; font-style: italic; font: inherit;">8.</div> Incentive Plans</div></div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;"><div style="display: inline; font-style: italic; font: inherit;">401</div>(k) Plan. </div></div>The HighPeak Energy Employees, Inc <div style="display: inline; font-style: italic; font: inherit;">401</div>(k) Plan (the <div style="display: inline; font-style: italic; font: inherit;">“401</div>(k) Plan”) is a defined contribution plan established under Section <div style="display: inline; font-style: italic; font: inherit;">401</div> of the Internal Revenue Code of <div style="display: inline; font-style: italic; font: inherit;">1986,</div> as amended (the "Code"). As of <div style="display: inline; font-style: italic; font: inherit;"> October 1, 2020, </div>all regular full-time and part-time employees of the Company are eligible to participate in the <div style="display: inline; font-style: italic; font: inherit;">401</div>(k) Plan after <div style="display: inline; font-style: italic; font: inherit;">three</div> continuous months of employment with the Company. Participants <div style="display: inline; font-style: italic; font: inherit;"> may </div>contribute up to <div style="display: inline; font-style: italic; font: inherit;">80</div> percent of their annual base salary into the <div style="display: inline; font-style: italic; font: inherit;">401</div>(k) Plan. Matching contributions are made to the <div style="display: inline; font-style: italic; font: inherit;">401</div>(k) Plan in cash by the Company in amounts equal to <div style="display: inline; font-style: italic; font: inherit;">100</div> percent of a participant's contributions to the <div style="display: inline; font-style: italic; font: inherit;">401</div>(k) Plan up to <div style="display: inline; font-style: italic; font: inherit;">four</div> percent of the participant's annual base salary (the “Matching Contribution”). Each participant's account is credited with the participant's contributions, Matching Contributions and allocations of the <div style="display: inline; font-style: italic; font: inherit;">401</div>(k) Plan's earnings. Participants are fully vested in their account balances at their eligibility date. During the <div style="display: inline; font-style: italic; font: inherit;">three</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;">2020,</div> the Company contributed <div style="display: inline; font-style: italic; font: inherit;">$56,000</div> and <div style="display: inline; font-style: italic; font: inherit;">zero</div> to the <div style="display: inline; font-style: italic; font: inherit;">401</div>(k) Plan, respectively.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Long-Term Incentive Plan. </div></div>The Company's <div style="display: inline; font-style: italic; font: inherit;">2020</div> Long-Term Incentive Plan (“LTIP”) provides for the granting of stock awards, stock options, dividend equivalents and substitute awards to directors, officers and employees of the Company. The number of shares available for grant pursuant to awards under the LTIP are as follows:</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </div> <div> <table border="0" cellpadding="0" cellspacing="0" style="margin-right: 5%; font-size: 10pt; font-family: Times New Roman; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">March 31, </div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2021</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt; width: 84%;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Approved and authorized awards</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">11,907,006</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Awards granted under plan</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">(9,767,995</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">)</div> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Awards available for future grant</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">2,139,011</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> </table> </div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Stock Options. </div></div>Stock options were granted to employees on <div style="display: inline; font-style: italic; font: inherit;"> August 24, 2020. </div>Stock-based compensation expense related to the Company's stock options for the <div style="display: inline; font-style: italic; font: inherit;">three</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;">2020</div> was <div style="display: inline; font-style: italic; font: inherit;">$966,000</div> and <div style="display: inline; font-style: italic; font: inherit;">zero</div>, respectively, and as of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020 </div>there was <div style="display: inline; font-style: italic; font: inherit;">$2.9</div> million and <div style="display: inline; font-style: italic; font: inherit;">$3.8</div> million, respectively, of unrecognized stock-based compensation expense related to unvested stock-based compensation awards. The unrecognized compensation expense will be recognized on a straight-line basis over the remaining vesting periods of the awards, which is a period of less than <div style="display: inline; font-style: italic; font: inherit;">two</div> years.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">The Company estimates the fair values of stock options granted on the grant date using a Black-Scholes option valuation model, which requires the Company to make several assumptions. The expected term of options granted was determined based on the simplified method of the midpoint between the vesting dates and the contractual term of the options. The risk-free interest rate is based on the U.S. treasury yield curve rate for the expected term of the option at the date of grant and the volatility was based on the volatility of a peer group of companies with similar characteristics of the Company on the date of grant since the Company did <div style="display: inline; font-style: italic; font: inherit;">not</div> have any trading history. More detailed stock options activity and details are as follows:</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </div> <div> <table border="0" cellpadding="0" cellspacing="0" style="margin-right: 5%; margin-left: 9pt; font-size: 10pt; font-family: Times New Roman; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Stock</div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Options</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Exercise </div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Price</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Remaining </div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Term in</div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Years</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Intrinsic</div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Value (in </div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">thousands)</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt; width: 48%;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Outstanding at August 22, 2020</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="text-align: right; font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-style: italic; font: inherit;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="text-align: right; font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-style: italic; font: inherit;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="text-align: right; font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-style: italic; font: inherit;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Awards granted</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">9,705,495</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">10.00</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="text-align: right; font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-style: italic; font: inherit;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="text-align: right; font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-style: italic; font: inherit;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Outstanding at December 31, 2020</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">9,705,495</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">10.00</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">9.7</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">57,942</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Exercised</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">(154,268</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">)</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">10.00</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="text-align: right; font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-style: italic; font: inherit;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="text-align: right; font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-style: italic; font: inherit;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Outstanding at March 31, 2021</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);"> </td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">9,551,227</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">10.00</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">9.4</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Vested at December 31, 2020</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">7,204,163</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">10.00</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">9.7</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">43,009</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Exercisable at December 31, 2020</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">7,204,163</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">10.00</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">9.7</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">43,009</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Vested at March 31, 2021</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">7,049,895</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">10.00</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">9.4</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Exercisable at March 31, 2021</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">7,049,895</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">10.00</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">9.4</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> </table> </div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Stock Issued to Directors. </div></div>Stock was issued to the outside directors of the Company in <div style="display: inline; font-style: italic; font: inherit;"> November 2020 </div>in the amount of <div style="display: inline; font-style: italic; font: inherit;">12,500</div> shares for each outside director, totaling <div style="display: inline; font-style: italic; font: inherit;">62,500</div> shares. There were <div style="display: inline; font-style: italic; font: inherit;">no</div> restrictions of these shares. Therefore stock-based compensation expense was recognized immediately upon the issuance of these shares in the amount of <div style="display: inline; font-style: italic; font: inherit;">$302,000</div> which was based upon the closing price of the stock on the date the stock issuance was approved by the board of directors of the Company.</div></div>
0.05
0.05
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -1pt;"><div style="display: inline; font-weight: bold;">NOTE <div style="display: inline; font-style: italic; font: inherit;">13.</div> Earnings Per Share</div></div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">The Company uses the treasury stock method of calculating earnings per share because certain of the Company's unvested stock-based awards qualify as participating securities. </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">The Company's basic earnings per share attributable to common stockholders is computed as (i) net income as reported attributable to common stockholders, (ii) less participating basic earnings (iii) divided by weighted average basic common shares outstanding. The Company's diluted earnings per share attributable to common stockholders is computed as (i) basic earnings attributable to common stockholders, (ii) plus reallocation of participating earnings (iii) divided by weighted average diluted shares outstanding. The components of basic and diluted earnings per share attributable to common stockholders are as follows (in thousands):</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </div> <div> <table border="0" cellpadding="0" cellspacing="0" style="margin-right: 5%; font-size: 10pt; font-family: Times New Roman; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Successor</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Three</div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Months Ended</div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">March 31,</div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2020</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt; width: 84%;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Net income attributable to common stockholders</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">4,744</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Participating share-based earnings (a)</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Basic and diluted net income attributable to common stockholders</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">4,744</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Basic weighted average shares outstanding</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">92,592</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Dilution attributable to stock-based compensation awards</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">2,890</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Diluted weighted average shares outstanding</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">95,482</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> </table> </div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </div> <table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: top;"> <td style="width: 36pt;"> </td> <td style="width: 18pt;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">(a)</div> </td> <td> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">Participating earnings represent the distributed and undistributed earnings of the Company attributable to the participating securities. Unexercised stock option awards do <div style="display: inline; font-style: italic; font: inherit;">not</div> participate in undistributed net losses as they are <div style="display: inline; font-style: italic; font: inherit;">not</div> contractually obligated to do so.</div> </td> </tr> </table> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -1pt; text-align: justify; text-indent: 25pt;">The calculation for weighted average shares reflects shares outstanding over the reporting period based on the actual number of days the shares were outstanding. </div></div>
0.19
0.21
-109000
P2Y
2900000
3800000
49000
3000
191000
3000
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -1pt;"><div style="display: inline; font-weight: bold;">NOTE <div style="display: inline; font-style: italic; font: inherit;">4.</div> Fair Value Measurements</div></div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">The Company determines fair value based on the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are based upon inputs that market participants use in pricing an asset or liability, which are characterized according to a hierarchy that prioritizes those inputs based on the degree to which they are observable. Observable inputs represent market data obtained from independent sources, whereas unobservable inputs reflect a company's own market assumptions, which are used if observable inputs are <div style="display: inline; font-style: italic; font: inherit;">not</div> reasonably available without undue cost and effort. The fair value input hierarchy level to which an asset or liability measurement in its entirety falls is determined based on the lowest level input that is significant to the measurement in its entirety.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">The <div style="display: inline; font-style: italic; font: inherit;">three</div> input levels of the fair value hierarchy are as follows:</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </div> <table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: top;"> <td style="width: 36pt;"> </td> <td style="width: 18pt;"> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">●</div> </td> <td> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">Level <div style="display: inline; font-style: italic; font: inherit;">1</div> – quoted prices for identical assets or liabilities in active markets.</div> </td> </tr> <tr style="vertical-align: top;"> <td style="width: 36pt;"> </td> <td style="width: 18pt;"> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">●</div> </td> <td> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">Level <div style="display: inline; font-style: italic; font: inherit;">2</div> – quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets that are <div style="display: inline; font-style: italic; font: inherit;">not</div> active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates) and inputs derived principally from or corroborated by observable market data by correlation or other means.</div> </td> </tr> <tr style="vertical-align: top;"> <td style="width: 36pt;"> </td> <td style="width: 18pt;"> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;">●</div> </td> <td> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">Level <div style="display: inline; font-style: italic; font: inherit;">3</div> – unobservable inputs for the asset or liability, typically reflecting management's estimate of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore, determined using model-based techniques, including discounted cash flow models.</div> </td> </tr> </table> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Assets and liabilities measured at fair value on a recurring basis. </div></div>The fair value input hierarchy level to which an asset or liability measurement in its entirety falls is determined based on the lowest level of input that is significant to the measurement in its entirety.<div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;"> </div></div></div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">The Company did <div style="display: inline; font-style: italic; font: inherit;"><div style="display: inline; font-style: italic; font: inherit;"><div style="display: inline; font-style: italic; font: inherit;"><div style="display: inline; font-style: italic; font: inherit;">not</div></div></div></div> have any assets or liabilities that are measured at fair value on a recurring basis as of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>or <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020.</div></div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Assets and liabilities measured at fair value on a nonrecurring basis. </div></div>Certain assets and liabilities are measured at fair value on a nonrecurring basis. These assets and liabilities are <div style="display: inline; font-style: italic; font: inherit;">not</div> measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances. Specifically, (i) stock-based compensation is measured at fair value on the date of grant based on Level <div style="display: inline; font-style: italic; font: inherit;">2</div> inputs based upon market data, (ii) the oil and natural gas properties of HighPeak Assets II that were contributed to the Predecessor discussed further and in more detail in Note <div style="display: inline; font-style: italic; font: inherit;">10</div> were measured at current estimated fair value using Level <div style="display: inline; font-style: italic; font: inherit;">3</div> inputs based upon market conditions in the area, and (iii) the estimates and fair value measurements used for the evaluation of proved property for potential impairment using Level <div style="display: inline; font-style: italic; font: inherit;">3</div> inputs based upon market conditions in the area. The Company assesses the recoverability of the carrying amount of certain assets and liabilities whenever events or changes in circumstances indicate the carrying amount of an asset or liability <div style="display: inline; font-style: italic; font: inherit;"> may </div><div style="display: inline; font-style: italic; font: inherit;">not</div> be recoverable. These assets and liabilities can include inventories, proved and unproved oil and natural gas properties and other long-lived assets that are written down to fair value when they are impaired or held for sale. The Company did <div style="display: inline; font-style: italic; font: inherit;">not</div> record any impairments to proved or unproved oil and natural gas properties for the periods presented in the accompanying condensed consolidated and combined financial statements.<div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;"> </div></div></div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">The Company has other financial instruments consisting primarily of cash equivalents, accounts receivable, accounts payable, long-term debt and other current assets and liabilities that approximate fair value due to the nature of the instrument and their relatively short maturities.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -1pt; text-align: justify; text-indent: 25pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Impact of the COVID-<div style="display: inline; font-style: italic; font: inherit;">19</div> pandemic on certain assets and liabilities measured at fair value on a nonrecurring basis.</div></div></div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-style: italic;">Proved Properties. </div>The Company performs assessments of its proved oil and natural gas properties accounted for under the successful efforts method of<div style="display: inline; font-style: italic;"> </div>accounting whenever events or circumstances indicate that the carrying value of those assets <div style="display: inline; font-style: italic; font: inherit;"> may </div><div style="display: inline; font-style: italic; font: inherit;">not</div> be recoverable. An impairment loss is indicated if the sum of the expected future cash flows is less than the carrying amount of the assets. In these circumstances, the Company recognizes an impairment charge for the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">The Company performed an impairment assessment of its proved oil and natural gas properties as of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020 </div>and determined that its proved oil and natural gas properties were <div style="display: inline; font-style: italic; font: inherit;"><div style="display: inline; font-style: italic; font: inherit;">not</div></div> impaired. The primary factors that <div style="display: inline; font-style: italic; font: inherit;"> may </div>affect estimates of future cash flows for the Company's proved oil and natural gas properties are (i) future reserve adjustments, both positive and negative, to proved reserves and risk-adjusted probable and possible reserves, (ii) results of future drilling activities, (iii) management's price outlooks and (iv) increases or decreases in production and capital costs.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">There is significant uncertainty surrounding the long-term impact to global oil demand due to the effects of the COVID-<div style="display: inline; font-style: italic; font: inherit;">19</div> pandemic. It is reasonably possible that the carrying value of the Company's proved oil and natural gas properties could exceed their estimated fair value resulting in the need to impair their carrying values in the future. If incurred, an impairment of the Company's proved oil and natural gas properties could have a material adverse effect on the Company's financial condition and results of operations.</div></div>
0
0
5859000
-80831000
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -1pt;"><div style="display: inline; font-weight: bold;">NOTE <div style="display: inline; font-style: italic; font: inherit;">12.</div> Income Taxes</div></div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">On <div style="display: inline; font-style: italic; font: inherit;"> March 27, 2020, </div>the Coronavirus Aid, Relief and Economic Security Act ("CARES Act") was signed into law. The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. The Company continues to examine how the CARES Act <div style="display: inline; font-style: italic; font: inherit;"> may </div>impact its business, results of operations, financial condition and liquidity.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">The Company's income tax expense attributable to income from operations consisted of the following (in thousands):</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </div> <div> <table border="0" cellpadding="0" cellspacing="0" style="margin-right: 5%; font-size: 10pt; font-family: Times New Roman; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Three</div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Months Ended</div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">March 31,</div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2021</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt; width: 84%;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Current tax expense</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Deferred tax expense</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">1,115</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Income tax expense</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">1,115</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> </table> </div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">The reconciliation between the income tax expense computed by multiplying pre-tax income by the U.S. federal statutory rate and the reported amounts of income tax expense is as follows (in thousands, except rate):</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </div> <div> <table border="0" cellpadding="0" cellspacing="0" style="margin-right: 5%; font-size: 10pt; font-family: Times New Roman; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times New Roman; font-size: 10pt; width: 84%;"> </td> <td style="font-family: Times New Roman; font-size: 10pt; width: 1%;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); width: 1%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Three</div></div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Months Ended</div></div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">March 31, </div></div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2021</div></div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px; width: 1%;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt; width: 84%;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Income tax expense at U.S. federal statutory rate</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">1,230</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt; width: 84%;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Limited tax benefit due to stock-based compensation</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">(109</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">)</div> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt; width: 84%;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Other</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">(6</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">)</div> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt; width: 84%;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Income tax expense</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">1,115</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt; width: 84%;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Effective income tax rate</div> </td> <td style="font-family: Times New Roman; font-size: 10pt; width: 1%;"> </td> <td colspan="2" style="text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; width: 1%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:right;margin:0pt;"><div style="display: inline; font-style: italic; font: inherit;">19.0</div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; width: 1%;">%</td> </tr> </table> </div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities were as follows as of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020 (</div>in thousands):</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div> <table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: Times New Roman; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">March 31,</div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2021</div> </div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">December 31,</div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2020</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt; width: 70%;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;"><div style="display: inline; font-weight: bold;">Deferred tax assets: </div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 18pt;">Net operating loss carryforwards</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">15,300</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">9,725</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 18pt;">Stock-based compensation</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">3,234</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">3,124</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 18pt;">Other</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">31</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">31</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 18pt;">Less: Valuation allowance</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 36pt;">Net deferred tax assets</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">18,565</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">12,880</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;"><div style="display: inline; font-weight: bold;">Deferred tax liabilities: </div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 18pt;">Oil and natural gas properties, principally due to differences in basis and depreciation and the deduction of intangible drilling costs for tax purposes</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">(58,578</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">)</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">(51,778</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">)</div> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 54pt;">Net deferred tax liabilities</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">(40,013</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">)</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">(38,898</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">)</div> </td> </tr> </table> </div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -1pt; text-align: justify; text-indent: 25pt;">The effective income tax rate differs from the U.S. statutory rate of <div style="display: inline; font-style: italic; font: inherit;">21</div> percent primarily due to permanent differences between GAAP income and taxable income. Periods prior to <div style="display: inline; font-style: italic; font: inherit;"> August 22, 2020 </div>are <div style="display: inline; font-style: italic; font: inherit;">not</div> shown because the Predecessors were treated as partnerships for U.S. federal income tax purposes and therefore do <div style="display: inline; font-style: italic; font: inherit;">not</div> record a provision for U.S. federal income tax because the partners of the Predecessors report their share of the Predecessors' income or loss on their respective income tax returns. The Predecessors are required to file tax returns on Form <div style="display: inline; font-style: italic; font: inherit;">1065</div> with the IRS. The <div style="display: inline; font-style: italic; font: inherit;">2017</div> through <div style="display: inline; font-style: italic; font: inherit;">2020</div> tax years remain open to examination.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">As required by ASC Topic <div style="display: inline; font-style: italic; font: inherit;">740,</div> “Income Taxes,” (“ASC <div style="display: inline; font-style: italic; font: inherit;">740”</div>) the Company uses reasonable judgments and makes estimates and assumptions related to evaluating the probability of uncertain tax positions. The Company bases its estimates and assumptions on the potential liability related to an assessment of whether the income tax position will “more likely than <div style="display: inline; font-style: italic; font: inherit;">not”</div> be sustained in an income tax audit. Based on that analysis, the Company believes the Company has <div style="display: inline; font-style: italic; font: inherit;">not</div> taken any material uncertain tax positions, and therefore has <div style="display: inline; font-style: italic; font: inherit;">not</div> recorded an income tax liability related to uncertain tax positions. However, if actual results materially differ, the Company's effective income tax rate and cash flows could be affected in the period of discovery or resolution. The Company also reviews the estimates and assumptions used in evaluating the probability of realizing the future benefits of the Company's deferred tax assets and records a valuation allowance when the Company believes that a portion or all the deferred tax assets <div style="display: inline; font-style: italic; font: inherit;"> may </div><div style="display: inline; font-style: italic; font: inherit;">not</div> be realized. If the Company is unable to realize the expected future benefits of its deferred tax assets, the Company is required to provide a valuation allowance. The Company uses its history and experience, overall profitability, future management plans, tax planning strategies, and current economic information to evaluate the amount of valuation allowance to record. As of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020, </div>the Company has <div style="display: inline; font-style: italic; font: inherit;"><div style="display: inline; font-style: italic; font: inherit;">not</div></div> recorded a valuation allowance for deferred tax assets arising from its operations because the Company believes they meet the “more likely than <div style="display: inline; font-style: italic; font: inherit;">not”</div> criteria as defined by the recognition and measurement provisions of ASC <div style="display: inline; font-style: italic; font: inherit;">740.</div> However, the Company <div style="display: inline; font-style: italic; font: inherit;"> may </div><div style="display: inline; font-style: italic; font: inherit;">not</div> realize the <div style="display: inline; font-style: italic; font: inherit;">$18.6</div> million and <div style="display: inline; font-style: italic; font: inherit;">$12.9</div> million in deferred tax assets it has as of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020, </div>respectively, if the estimates and assumptions used in evaluating the probability of realizing the future benefits of the Company's deferred tax assets change, which would affect the Company's effective income tax rate and cash flows in the period of discovery or resolution.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">On <div style="display: inline; font-style: italic; font: inherit;"> December 27, 2020, </div>the Consolidated Appropriations Act was signed into law, an omnibus spending bill to fund the federal government that also includes an array of COVID-related tax relief for individuals and businesses. The tax-related measures contained in the Consolidated Appropriations Act revise and expand provisions enacted earlier in the year by the Families First Coronavirus Response Act and the CARES Act. The Consolidated Appropriations Act also extends a number of expiring tax provisions. Additionally, the Act provides for a <div style="display: inline; font-style: italic; font: inherit;">100%</div> deduction for certain business meals incurred in calendar years <div style="display: inline; font-style: italic; font: inherit;">2021</div> and <div style="display: inline; font-style: italic; font: inherit;">2022,</div> which were deductible at <div style="display: inline; font-style: italic; font: inherit;">50%</div> for the year ending <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020. </div>In addition, on <div style="display: inline; font-style: italic; font: inherit;"> March 11, 2021, </div>the American Rescue Plan Act was signed into law, which includes additional COVID-related tax relief for individuals and businesses. The Company determined that income tax effects related to the passage of the Consolidated Appropriations Act and the American Rescue Plan Act were <div style="display: inline; font-style: italic; font: inherit;">not</div> material to the financial statements for the <div style="display: inline; font-style: italic; font: inherit;">three</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021.</div></div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">The Company is also subject to Texas Margin Tax. The Company realized <div style="display: inline; font-style: italic; font: inherit;">no</div> Texas Margin Tax in the accompanying condensed consolidated and combined financial statements as we do <div style="display: inline; font-style: italic; font: inherit;">not</div> anticipate owing any Texas Margin Tax for any periods.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div></div>
0
1115000
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Income taxes. </div></div>The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the carrying amounts for income tax purposes and net operating loss and tax credit carryforwards. The amount of deferred taxes on these temporary differences is determined using the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, as applicable, based on tax rates and laws in the respective tax jurisdiction enacted as of the balance sheet date.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">The Company reviews its deferred tax assets for recoverability and establishes a valuation allowance based on projected future taxable income, applicable tax strategies and the expected timing of the reversals of existing temporary differences. A valuation allowance is provided when it is more likely than <div style="display: inline; font-style: italic; font: inherit;">not</div> (likelihood of greater than <div style="display: inline; font-style: italic; font: inherit;">50</div> percent) that some portion or all the deferred tax assets will <div style="display: inline; font-style: italic; font: inherit;">not</div> be realized. The Company has <div style="display: inline; font-style: italic; font: inherit;">not</div> established a valuation allowance as of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020.</div></div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than <div style="display: inline; font-style: italic; font: inherit;">not</div> that the tax position will be sustained upon examination by the taxing authorities, based upon the technical merits of the position. If all or a portion of the unrecognized tax benefit is sustained upon examination by the taxing authorities, the tax benefit will be recognized as a reduction to the Company's deferred tax liability and will affect the Company's effective tax rate in the period it is recognized. See Note <div style="display: inline; font-style: italic; font: inherit;">12</div> for addition information.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">The Company records any tax-related interest charges as interest expense and any tax-related penalties as other expense in the condensed consolidated and combined statements of operations of which there have been <div style="display: inline; font-style: italic; font: inherit;">none</div> to date.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">Prior to <div style="display: inline; font-style: italic; font: inherit;"> August 21, 2020, </div>the Predecessors did <div style="display: inline; font-style: italic; font: inherit;">not</div> record a provision for U.S. federal income tax because the Predecessors were treated as partnerships for U.S. federal income tax purposes and, as such, the partners of the Predecessors reported their share of the Company's income or loss on their respective income tax returns. The Predecessors were required to file tax returns on Form <div style="display: inline; font-style: italic; font: inherit;">1065</div> with the Internal Revenue Service (“IRS”). The <div style="display: inline; font-style: italic; font: inherit;">2017</div> to <div style="display: inline; font-style: italic; font: inherit;">2019</div> tax years remain open to examination.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">The Predecessors recognize in their condensed consolidated and combined financial statements the effect of a tax position, if that position is more likely than <div style="display: inline; font-style: italic; font: inherit;">not</div> to be sustained upon examination, including resolution of any appeals or litigation processes, based upon the technical merits of the position. Tax positions taken related to the Predecessors' status as limited partnerships, and state filing requirements have been reviewed, and management is of the opinion that they would more likely than <div style="display: inline; font-style: italic; font: inherit;">not</div> be sustained by examination. Accordingly, the Company has <div style="display: inline; font-style: italic; font: inherit;">not</div> recorded an income tax liability for uncertain tax benefits for periods prior to <div style="display: inline; font-style: italic; font: inherit;"> August 21, 2020. </div>Under the new centralized partnership audit rules effective for tax years beginning after <div style="display: inline; font-style: italic; font: inherit;">2017,</div> the IRS assesses and collects underpayments of tax from the partnership instead of from each partner. The partnership <div style="display: inline; font-style: italic; font: inherit;"> may </div>be able to pass the adjustments through to its partners by making a push-out election or, if eligible, by electing out of the centralized partnership audit rules. The collection of tax from the partnership is only an administrative convenience for the IRS to collect any underpayment of income taxes including interest and penalties. Income taxes on partnership income, regardless of who pays the tax or when the tax is paid, is attributed to the partners. Any payment made by the Company as a result of an IRS examination will be treated as an expense from the Company in the condensed consolidated and combined financial statements.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">The Company is also subject to Texas Margin Tax. The Company realized <div style="display: inline; font-style: italic; font: inherit;">no</div> Texas Margin Tax in the accompanying condensed consolidated and combined financial statements as we do <div style="display: inline; font-style: italic; font: inherit;">not</div> anticipate owing any Texas Margin Tax for the periods presented.</div></div></div></div></div></div>
3200000
3200000
1230000
-6000
677000
6781000
9193000
-1019000
153000
97000
-1115000
12000
834000
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Oil and natural gas properties. </div></div>The Company utilizes the successful efforts method of accounting for its oil and natural gas properties. Under this method, all costs associated with productive wells and nonproductive development wells are capitalized while nonproductive exploration costs and geological and geophysical expenditures are expensed.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">The Company does <div style="display: inline; font-style: italic; font: inherit;">not</div> carry the costs of drilling an exploratory well as an asset in its consolidated balance sheet following the completion of drilling unless both of the following conditions are met: (i) the well has found a sufficient quantity of reserves to justify its completion as a producing well and (ii) the Company is making sufficient progress assessing the reserves and the economic and operating viability of the project.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">Due to the capital-intensive nature and the geographical location of certain projects, it <div style="display: inline; font-style: italic; font: inherit;"> may </div>take an extended period of time to evaluate the future potential of an exploration project and the economics associated with making a determination on its commercial viability. In these instances, the project's feasibility is <div style="display: inline; font-style: italic; font: inherit;">not</div> contingent upon price improvements or advances in technology, but rather the Company's ongoing efforts and expenditures related to accurately predict the hydrocarbon recoverability based on well information, gaining access to other companies' production data in the area, transportation or processing facilities and/or getting partner approval to drill additional appraisal wells. These activities are ongoing and are being pursued constantly. Consequently, the Company's assessment of suspended exploratory well costs is continuous until a decision can be made that the project has found sufficient proved reserves to sanction the project or is noncommercial and is charged to exploration and abandonment expense. See Note <div style="display: inline; font-style: italic; font: inherit;">5</div> for additional information.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">The capitalized costs of proved properties are depleted using the unit-of-production method based on proved reserves for leasehold costs and proved reserves for drilling, completion and other oil and natural gas property costs. Costs of unproved leasehold costs are excluded from depletion until proved reserves are established or, if unsuccessful, impairment is determined.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">Proceeds from the sales of individual properties and the capitalized costs of individual properties sold or abandoned are credited and charged, respectively, to accumulated depletion, depreciation and amortization, if doing so does <div style="display: inline; font-style: italic; font: inherit;">not</div> materially impact the depletion rate of an amortization base. Generally, <div style="display: inline; font-style: italic; font: inherit;">no</div> gain or loss is recorded until an entire amortization base is sold. However, gain or loss is recorded from the sale of less than an entire amortization base if the disposition is significant enough to materially impact the depletion rate of the remaining properties in the amortization base.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">The Company performs assessments of its long-lived assets to be held and used, including proved oil and natural gas properties accounted for under the successful efforts method of accounting, whenever events or circumstances indicate that the carrying value of those assets <div style="display: inline; font-style: italic; font: inherit;"> may </div><div style="display: inline; font-style: italic; font: inherit;">not</div> be recoverable. An impairment loss is indicated if the sum of the expected future cash flows is less than the carrying amount of the assets. In these circumstances, the Company recognizes an impairment charge for the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">Unproved oil and natural gas properties are periodically assessed for impairment on a project-by-project basis. These impairment assessments are affected by the results of exploration activities, commodity price outlooks, planned future sales or expirations of all or a portion of such projects. If the estimated future net cash flows attributable to such projects are <div style="display: inline; font-style: italic; font: inherit;">not</div> expected to be sufficient to fully recover the costs invested in each project, the Company will recognize an impairment charge at that time.</div></div></div></div></div></div>
54000
4000
0
0
109000
121000
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Inventory. </div></div>Inventory is comprised primarily of oil and natural gas drilling or repair items such as tubing, casing, proppant used to fracture-stimulate oil and natural gas wells, water, chemicals, operating supplies and ordinary maintenance materials and parts. The materials and supplies inventory is primarily acquired for use in future drilling operations or repair operations and is carried at the lower of cost or net realizable value, on a weighted average cost basis. Valuation allowances for materials and supplies inventories are recorded as reductions to the carrying values of the materials and supplies inventories in the Company's condensed consolidated balance sheet and as charges to other expense in the condensed consolidated statements of operations. The Company's materials and supplies inventory as of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020 </div>is <div style="display: inline; font-style: italic; font: inherit;">$109,000</div> and <div style="display: inline; font-style: italic; font: inherit;">$120,000,</div> respectively, and the Company has <div style="display: inline; font-style: italic; font: inherit;"><div style="display: inline; font-style: italic; font: inherit;">not</div></div> recognized any valuation allowance to date.</div></div></div></div></div></div>
109000
120000
1000
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Leases. </div></div>The Company enters into leases for drilling rigs, storage tanks, equipment and buildings and recognizes lease expense on a straight-line basis over the lease term. Lease right-of-use assets and liabilities are initially recorded on the lease commencement date based on the present value of lease payments over the lease term. As most of the Company's lease contracts do <div style="display: inline; font-style: italic; font: inherit;">not</div> provide an implicit discount rate, the Company uses its incremental borrowing rate, which is determined based on information available at the commencement date of a lease. Leases <div style="display: inline; font-style: italic; font: inherit;"> may </div>include renewal, purchase or termination options that can extend or shorten the term of a lease. The exercise of those options is at the Company's sole discretion and is evaluated at inception and throughout the contract to determine if a modification of the lease term is required. Leases with an initial term of <div style="display: inline; font-style: italic; font: inherit;">12</div> months or less are <div style="display: inline; font-style: italic; font: inherit;">not</div> recorded as lease right-of-use assets and liability. See Note <div style="display: inline; font-style: italic; font: inherit;">9</div> for additional information.</div></div></div></div></div></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="margin-right: 5%; font-size: 10pt; font-family: Times New Roman; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">March 31,</div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2021</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt; width: 84%;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Remainder of 2021</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">328</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">2022</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">53</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Total lease payments</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">381</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 18pt;">Less present value discount</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">(7</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">)</div> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Present value of lease liabilities</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">374</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> </table></div>
381000
53000
328000
7000
564327000
537930000
34805000
22435000
0
0
20000000
40000000
50000000
0.005
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -1pt;"><div style="display: inline; font-weight: bold;">Note <div style="display: inline; font-style: italic; font: inherit;">6.</div> Long-Term Debt</div></div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Revolving Credit Facility</div></div>. In <div style="display: inline; font-style: italic; font: inherit;"> December 2020, </div>the Company entered into a revolving credit facility with Fifth Third Bank, National Association (“Fifth Third”) as the administrative agent and sole lender (“Revolving Credit Facility”) that matures on <div style="display: inline; font-style: italic; font: inherit;"> June 17, 2024. </div>The Revolving Credit Facility has an initial borrowing base of <div style="display: inline; font-style: italic; font: inherit;">$40</div> million. The Company elected to reduce the aggregate elected commitments under the Revolving Credit Facility to <div style="display: inline; font-style: italic; font: inherit;">$20</div> million. The borrowing capacity under the Revolving Credit Facility is equal to the lowest of (i) the borrowing base (which currently stands at <div style="display: inline; font-style: italic; font: inherit;">$40.0</div> million), (ii) the aggregate elected commitments (which currently stand at <div style="display: inline; font-style: italic; font: inherit;">$20.0</div> million) and (iii) <div style="display: inline; font-style: italic; font: inherit;">$500.0</div> million. As of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020, </div>the Company had <div style="display: inline; font-style: italic; font: inherit;"><div style="display: inline; font-style: italic; font: inherit;">no</div></div> outstanding borrowings under the Revolving Credit Facility. Borrowings under the Revolving Credit Facility bear interest, at the option of the Company, based on (a) a rate per annum equal to the higher of (i) the prime rate announced from time to time by Fifth Third, (ii) the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System during the last preceding business day plus <div style="display: inline; font-style: italic; font: inherit;">0.5</div> percent or (iii) the Adjusted LIBOR Rate, plus a margin (the “Applicable Margin”), which is currently <div style="display: inline; font-style: italic; font: inherit;">3.25</div> percent and is also determined by the Borrowing Base Utilization Percentage as defined in the Revolving Credit Facility. Letters of credit outstanding under the Revolving Credit Facility are subject to a per annum fee, representing the Applicable Margin plus <div style="display: inline; font-style: italic; font: inherit;">0.125</div> percent. The Company also pays commitment fees on undrawn amounts under the Revolving Credit Facility equal to <div style="display: inline; font-style: italic; font: inherit;">0.50</div> percent. Borrowings under the Revolving Credit Facility are secured by a <div style="display: inline; font-style: italic; font: inherit;">first</div> lien security interest on substantially all assets of the Company and its restricted subsidiaries, including mortgages on the Company's and its restricted subsidiaries' oil and natural gas properties. The Revolving Credit Facility is scheduled to have the borrowing base redetermined semiannually in <div style="display: inline; font-style: italic; font: inherit;"> April </div>and <div style="display: inline; font-style: italic; font: inherit;"> October. </div>Additionally, the Company and Fifth Third each have the option for a wild card evaluation between redeterminations. In <div style="display: inline; font-style: italic; font: inherit;"> March 2021, </div>the Company's borrowing base and bank commitments under the Revolving Credit Facility were increased to <div style="display: inline; font-style: italic; font: inherit;">$50</div> million, subject to finalization of customary documentation.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">The Revolving Credit Facility requires the maintenance of a ratio of total debt to EBITDAX, subject to certain adjustments, <div style="display: inline; font-style: italic; font: inherit;">not</div> to exceed <div style="display: inline; font-style: italic; font: inherit;">3.00</div> to <div style="display: inline; font-style: italic; font: inherit;">1.00</div> as of the last day of any fiscal quarter (commencing with the fiscal quarter ending <div style="display: inline; font-style: italic; font: inherit;"> June 30, 2021 </div>since the Company has yet to borrow under the Revolving Credit Facility) and a current ratio, subject to certain adjustments of at least <div style="display: inline; font-style: italic; font: inherit;">1.00</div> to <div style="display: inline; font-style: italic; font: inherit;">1.00</div> as of the last day of any fiscal quarter.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">The Company has limited equity cure rights for a breach of the above-listed financial covenants. Additionally, the Revolving Credit Facility contains additional restrictive covenants that limit the ability of the Company and its restricted subsidiaries to, among other things, incur additional indebtedness, incur additional liens, make investments and loans, enter into mergers and acquisitions, make or declare dividends and other payments, enter into certain hedging transactions, sell assets and engage in transactions with affiliates. The Revolving Credit Facility contains customary mandatory prepayments, including a monthly mandatory prepayment if the Consolidated Cash Balance (as defined in the Revolving Credit Agreement) is in excess of <div style="display: inline; font-style: italic; font: inherit;">$20.0</div> million. In addition, the Revolving Credit Agreement is subject to customary events of default, including a change in control. If an event of default occurs and is continuing, the administrative agent or the majority of the lenders <div style="display: inline; font-style: italic; font: inherit;"> may </div>accelerate any amounts outstanding and terminate lender commitments.</div></div>
10634000
54000000
-31921000
-57090000
11373000
6028000
4744000
4744000
-80831000
-80831000
80800000
4744000
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Adoption of new accounting standards. </div></div>In <div style="display: inline; font-style: italic; font: inherit;"> December 2019, </div>the FASB issued Accounting Standards Update (“ASU”) <div style="display: inline; font-style: italic; font: inherit;">No.</div> <div style="display: inline; font-style: italic; font: inherit;">2019</div>-<div style="display: inline; font-style: italic; font: inherit;">12,</div> “<div style="display: inline; font-style: italic;">Simplifying the Accounting for Income Taxes (Topic <div style="display: inline; font-style: italic; font: inherit;">740</div>)</div>”. The new guidance simplifies the accounting for income taxes by eliminating certain exceptions related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period, hybrid taxes, and the recognition of deferred tax liabilities for outside basis differences. It also clarifies and simplifies other aspects of the accounting for income taxes. Amendments are to be applied prospectively, except for certain amendments that are to be applied either retrospectively or with a modified retrospective approach through a cumulative effect adjustment recorded to retained earnings. The Company adopted ASU <div style="display: inline; font-style: italic; font: inherit;">2019</div>-<div style="display: inline; font-style: italic; font: inherit;">12</div> on <div style="display: inline; font-style: italic; font: inherit;"> January 1, 2021, </div>which did <div style="display: inline; font-style: italic; font: inherit;">not</div> have a material impact on the Company's condensed consolidated and combined financial statements.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div><div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"></div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;"></div></div></div><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">New accounting pronouncements. </div></div>The Company has evaluated recently issued, but <div style="display: inline; font-style: italic; font: inherit;">not</div> yet effective, accounting pronouncements and does <div style="display: inline; font-style: italic; font: inherit;">not</div> believe they would have a material effect on the Company's condensed consolidated and combined financial statements.</div></div></div></div></div></div>
1
311000
345000
30392000
17477000
535010000
502636000
2017 2018 2019 2020
5912000
-4328000
2227000
2389000
374000
508000
322000
430000
52000
78000
371000
506000
745000
907000
1520000
2480000
52000
78000
76503000
11000000
464716000
464716000
437885000
437885000
54000000
54000000
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -1pt;"><div style="display: inline; font-weight: bold;">NOTE <div style="display: inline; font-style: italic; font: inherit;">15.</div> Partners</div>'<div style="display: inline; font-weight: bold;"> Capital (Predecessor)</div></div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Allocation of partner</div></div>'<div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">s net profits and losses. </div></div>Net income or loss and net gain or loss on investments of the Predecessor for the period are allocated among its partners in proportion to the relative capital contributions made to the Predecessor. The Predecessor realized a net loss of <div style="display: inline; font-style: italic; font: inherit;">$80.8</div> million for the <div style="display: inline; font-style: italic; font: inherit;">three</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2020.</div></div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Partner</div></div>'<div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">s distributions.</div></div><div style="display: inline; font-style: italic;"> </div>The proceeds distributable by the Predecessor (which shall include all proceeds attributable to the disposition of investments, net of expenses) is distributable in accordance with their respective Partnership Agreements.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div></div>
407000
2000
2000
615000000
3982000
309000
3333000
309000
3300000
50000
44875000
47658000
0.0001
0.0001
10000000
10000000
0
0
0
0
816000
2254000
54000000
1574000
3600000
5466000
1664000
308000
725000
725000
250000
292000
39000
41000
20000
24000
10000
10000
1044000
1092000
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Other property and equipment, net. </div></div>Other property and equipment is recorded at cost. The carrying values of other property and equipment, net of accumulated depreciation of <div style="display: inline; font-style: italic; font: inherit;">$285,000</div> and <div style="display: inline; font-style: italic; font: inherit;">$237,000</div> as of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020, </div>respectively, are as follows (in thousands):</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -1pt; text-align: justify; text-indent: 25pt;"> </div> <div> <table border="0" cellpadding="0" cellspacing="0" style="margin-right: 5%; font-size: 10pt; font-family: Times New Roman; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">March 31,</div></div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2021</div></div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">December 31, </div></div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2020</div></div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt; width: 68%;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Land</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">725</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">725</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Information technology</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">250</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">292</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Transportation equipment</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">39</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">41</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Leasehold improvements</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">20</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">24</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Field equipment</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">10</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">10</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Total other property and equipment, net</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">1,044</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">1,092</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> </table> </div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">Other property and equipment is depreciated over its estimated useful life on a straight-line basis. Land is <div style="display: inline; font-style: italic; font: inherit;">not</div> depreciated. Information technology is generally depreciated over <div style="display: inline; font-style: italic; font: inherit;">three</div> years, transportation equipment is generally depreciated over <div style="display: inline; font-style: italic; font: inherit;">five</div> years and field equipment is generally depreciated over <div style="display: inline; font-style: italic; font: inherit;">seven</div> years. Leasehold improvements are amortized over the lesser of their estimated useful lives or the underlying terms of the associated leases.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset <div style="display: inline; font-style: italic; font: inherit;"> may </div><div style="display: inline; font-style: italic; font: inherit;">not</div> be recoverable. If such assets are considered to be impaired, the impairment to be recorded is measured by the amount by which the carrying amount of the asset exceeds its estimated fair value. The estimated fair value is determined using either a discounted future cash flow model or another appropriate fair value method.</div></div></div></div></div></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="margin-right: 5%; font-size: 10pt; font-family: Times New Roman; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">March 31,</div></div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2021</div></div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">December 31, </div></div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2020</div></div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt; width: 68%;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Land</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">725</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">725</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Information technology</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">250</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">292</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Transportation equipment</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">39</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">41</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Leasehold improvements</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">20</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">24</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Field equipment</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">10</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">10</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Total other property and equipment, net</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">1,044</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">1,092</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> </table></div>
P3Y
P5Y
P7Y
433693000
367372000
67445000
17315000
1500000
2200000
1500000
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -1pt;"><div style="display: inline; font-weight: bold;">NOTE <div style="display: inline; font-style: italic; font: inherit;">10.</div> Related Party Transactions</div></div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">General and Administrative Expenses. </div></div>The general partner of HPK LP utilized HighPeak Energy Management, LLC (the “Management Company”) to provide services and assistance to conduct, direct and exercise full control over the activities of HPK LP per its Partnership Agreement. However, the Management Company is funded via payments from the parent companies of HighPeak I and HighPeak II pursuant to their respective Limited Partnership Agreements, as amended. Therefore, HPK LP reimbursed the parent companies of HighPeak I and HighPeak II for actual costs incurred by the Management Company. During the <div style="display: inline; font-style: italic; font: inherit;">three</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2020, </div>HPK LP paid <div style="display: inline; font-style: italic; font: inherit;"><div style="display: inline; font-style: italic; font: inherit;">$1.5</div></div> million each to the parent companies of HighPeak I and HighPeak II of which <div style="display: inline; font-style: italic; font: inherit;">$2.2</div> million is included in general and administrative expenses in the accompanying results of operations for the <div style="display: inline; font-style: italic; font: inherit;">three</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2020. </div>Effective upon closing of the HighPeak business combination, the Management Company is <div style="display: inline; font-style: italic; font: inherit;">no</div> longer being paid by the Company as all costs directly attributable to the Company are paid by the Company going forward.</div></div>
0
-102465000
-107209000
24870000
4524000
847000
99000
25717000
4623000
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Revenue recognition</div></div><div style="display: inline; font-weight: bold;">. </div>The Company follows FASB ASC <div style="display: inline; font-style: italic; font: inherit;">606,</div> “Revenue from Contracts with Customers,” (“ASC <div style="display: inline; font-style: italic; font: inherit;">606”</div>) whereby the Company recognizes revenues from the sales of oil and natural gas to its purchasers and presents them disaggregated on the Company's condensed consolidated and combined statements of operations.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">The Company enters into contracts with purchasers to sell its oil and natural gas production. Revenue on these contracts is recognized in accordance with the <div style="display: inline; font-style: italic; font: inherit;">five</div>-step revenue recognition model prescribed in ASC <div style="display: inline; font-style: italic; font: inherit;">606.</div> Specifically, revenue is recognized when the Company's performance obligations under these contracts are satisfied, which generally occurs with the transfer of control of the oil and natural gas to the purchaser. Control is generally considered transferred when the following criteria are met: (i) transfer of physical custody, (ii) transfer of title, (iii) transfer of risk of loss and (iv) relinquishment of any repurchase rights or other similar rights. Given the nature of the products sold, revenue is recognized at a point in time based on the amount of consideration the Company expects to receive in accordance with the price specified in the contract. Consideration under the oil and natural gas marketing contracts is typically received from the purchaser <div style="display: inline; font-style: italic; font: inherit;">one</div> to <div style="display: inline; font-style: italic; font: inherit;">two</div> months after production. At <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020, </div>the Company had receivables related to contracts with purchasers of approximately <div style="display: inline; font-style: italic; font: inherit;">$13.4</div> million and <div style="display: inline; font-style: italic; font: inherit;">$4.2</div> million, respectively. </div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-style: italic;">Oil Contracts. </div>The Company's oil marketing contracts transfer physical custody and title at or near the wellhead, which is generally when control of the oil has been transferred to the purchaser. The oil produced is sold under contracts using market-based pricing which is then adjusted for the differentials based upon delivery location and oil quality. Since the differentials are incurred after the transfer of control of the oil, the differentials are included in oil sales on the consolidated and combined statements of operations as they represent part of the transaction price of the contract.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-style: italic;">Natural Gas Contracts. </div>The majority of the Company's natural gas is sold at the lease location, which is generally when control of the natural gas has been transferred to the purchaser. The natural gas is sold under (i) percentage of proceeds processing contracts or (ii) a hybrid of percentage of proceeds and fee-based contracts. Under the majority of the Company's contracts, the purchaser gathers the natural gas in the field where it is produced and transports it to natural gas processing plants where NGL products are extracted. The NGL products and remaining residue natural gas are then sold by the purchaser. Under percentage of proceeds and hybrid percentage of proceeds and fee-based contracts, the Company receives a percentage of the value for the extracted liquids and the residue natural gas. Since control of the natural gas transfers upstream of the transportation and processing activities, revenue is recognized as the net amount received from the purchaser.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -1pt; text-align: justify; text-indent: 25pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">The Company does <div style="display: inline; font-style: italic; font: inherit;">not</div> disclose the value of unsatisfied performance obligations under its contracts with customers as it applies the practical exemption in accordance with ASC <div style="display: inline; font-style: italic; font: inherit;">606.</div> The exemption, as described in ASC <div style="display: inline; font-style: italic; font: inherit;">606</div>-<div style="display: inline; font-style: italic; font: inherit;">10</div>-<div style="display: inline; font-style: italic; font: inherit;">50</div>-<div style="display: inline; font-style: italic; font: inherit;">14</div>(a), applies to variable consideration that is recognized as control of the product is transferred to the customer. Since each unit of product represents a separate performance obligation, future volumes are wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations is <div style="display: inline; font-style: italic; font: inherit;">not</div> required.</div></div></div></div></div></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="margin-right: 5%; font-size: 10pt; font-family: Times New Roman; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="6" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Three Months Ended March 31,</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2021 </div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2020 </div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Successor</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Predecessor</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt; width: 68%;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Beginning asset retirement obligations</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">2,293</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">2,212</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 27pt;">Liabilities incurred from new wells</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">163</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">97</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 27pt;">Revision of estimates (a)</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">(10</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">)</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 27pt;">Accretion of discount</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">35</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">34</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Ending asset retirement obligations</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">2,481</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">2,343</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> </table></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="margin-right: 5%; font-size: 10pt; font-family: Times New Roman; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Three</div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Months Ended</div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">March 31,</div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2021</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt; width: 84%;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Current tax expense</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Deferred tax expense</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">1,115</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Income tax expense</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">1,115</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> </table></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: Times New Roman; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">March 31,</div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2021</div> </div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">December 31,</div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2020</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt; width: 70%;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;"><div style="display: inline; font-weight: bold;">Deferred tax assets: </div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 18pt;">Net operating loss carryforwards</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">15,300</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">9,725</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 18pt;">Stock-based compensation</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">3,234</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">3,124</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 18pt;">Other</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">31</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">31</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 18pt;">Less: Valuation allowance</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 36pt;">Net deferred tax assets</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">18,565</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">12,880</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;"><div style="display: inline; font-weight: bold;">Deferred tax liabilities: </div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 18pt;">Oil and natural gas properties, principally due to differences in basis and depreciation and the deduction of intangible drilling costs for tax purposes</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">(58,578</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">)</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">(51,778</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">)</div> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 54pt;">Net deferred tax liabilities</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">(40,013</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">)</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">(38,898</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">)</div> </td> </tr> </table></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: Times New Roman; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="14" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2021</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="10" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2022</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Second</div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Quarter</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Third</div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Quarter</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Fourth</div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Quarter</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Total</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">First</div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Quarter</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Second</div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Quarter</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Total</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt; width: 30%;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;"><div style="display: inline; font-weight: bold;">Oil Price Swaps - WTI: (a)</div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;">Volume (Bbls)</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 7%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">152,500</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 7%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">230,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 7%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">230,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 7%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">612,500</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 7%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">225,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 7%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">75,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 7%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">300,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;">Price per Bbl</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 7%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">61.40</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 7%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">61.40</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 7%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">61.40</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 7%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">61.40</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 7%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">61.40</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 7%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">61.40</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 7%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">61.40</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> </table></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="margin-right: 5%; font-size: 10pt; font-family: Times New Roman; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Successor</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Three</div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Months Ended</div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">March 31,</div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2020</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt; width: 84%;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Net income attributable to common stockholders</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">4,744</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Participating share-based earnings (a)</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Basic and diluted net income attributable to common stockholders</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">4,744</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Basic weighted average shares outstanding</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">92,592</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Dilution attributable to stock-based compensation awards</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">2,890</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Diluted weighted average shares outstanding</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">95,482</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> </table></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="margin-right: 5%; font-size: 10pt; font-family: Times New Roman; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times New Roman; font-size: 10pt; width: 84%;"> </td> <td style="font-family: Times New Roman; font-size: 10pt; width: 1%;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); width: 1%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Three</div></div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Months Ended</div></div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">March 31, </div></div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2021</div></div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px; width: 1%;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt; width: 84%;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Income tax expense at U.S. federal statutory rate</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">1,230</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt; width: 84%;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Limited tax benefit due to stock-based compensation</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">(109</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">)</div> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt; width: 84%;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Other</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">(6</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">)</div> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt; width: 84%;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Income tax expense</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 13%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">1,115</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt; width: 84%;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Effective income tax rate</div> </td> <td style="font-family: Times New Roman; font-size: 10pt; width: 1%;"> </td> <td colspan="2" style="text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; width: 1%;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:right;margin:0pt;"><div style="display: inline; font-style: italic; font: inherit;">19.0</div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; width: 1%;">%</td> </tr> </table></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="margin-right: 5%; margin-left: 9pt; font-size: 10pt; font-family: Times New Roman; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Stock</div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Options</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Exercise </div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Price</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Remaining </div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Term in</div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Years</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Intrinsic</div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Value (in </div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">thousands)</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt; width: 48%;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Outstanding at August 22, 2020</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="text-align: right; font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-style: italic; font: inherit;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="text-align: right; font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-style: italic; font: inherit;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="text-align: right; font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-style: italic; font: inherit;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Awards granted</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">9,705,495</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">10.00</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="text-align: right; font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-style: italic; font: inherit;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="text-align: right; font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-style: italic; font: inherit;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Outstanding at December 31, 2020</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">9,705,495</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">10.00</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">9.7</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">57,942</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Exercised</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">(154,268</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">)</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">10.00</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="text-align: right; font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-style: italic; font: inherit;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="text-align: right; font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-style: italic; font: inherit;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Outstanding at March 31, 2021</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);"> </td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font: inherit;">9,551,227</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">10.00</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">9.4</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Vested at December 31, 2020</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">7,204,163</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">10.00</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">9.7</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">43,009</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Exercisable at December 31, 2020</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">7,204,163</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">10.00</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">9.7</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">43,009</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Vested at March 31, 2021</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">7,049,895</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">10.00</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">9.4</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;">Exercisable at March 31, 2021</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">7,049,895</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">10.00</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">9.4</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 10%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> </table></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt; text-align: justify;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Segments. </div></div>Based on the Company's organizational structure, the Company has <div style="display: inline; font-style: italic; font: inherit;">one</div> operating segment, which is oil and natural gas development, exploration and production. In addition, the Company has a single, company-wide management team that allocates capital resources to maximize profitability and measures financial performance as a single enterprise.</div></div></div></div></div></div>
1759000
2861000
966000
11907006
2139011
9705495
57942
9767995
9705495
9551227
10
10
43009
7204163
7049895
10
10
43009
7204163
7049895
10
10
10
10
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Stock-based compensation. </div></div>Stock-based compensation expense for stock options (“Equity Awards”) is measured at the grant date or modification date, as applicable, using the fair value of the award, and is recorded, net of forfeitures, on a straight-line basis over the requisite service period of the respective award. The fair value of Equity Awards is determined on the grant date or modification date, as applicable, using a Black-Scholes option valuation model with the following inputs; (i) the grant date's closing stock price, (ii) the exercise price of the stock options, (iii) the expected term of the stock option, (iv) the estimated risk-free adjusted interest rate for the duration of the option's expected term, (v) the expected annual dividend yield on the underlying stock and (vi) the expected volatility over the option's expected term.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">Stock-based compensation for HighPeak Energy common stock issued to directors with <div style="display: inline; font-style: italic; font: inherit;">no</div> restrictions thereon, is measured at the grant date using the fair value of the award and is recorded as stock-based compensation in the accompanying financial statements immediately. If restricted stock is awarded to employees or directors in the future, as the case <div style="display: inline; font-style: italic; font: inherit;"> may </div>be, stock-based compensation will be recognized on a straight-line basis over the requisite service period of the respective award.</div></div></div></div></div></div>
P9Y255D
P9Y146D
P9Y255D
P9Y146D
P9Y255D
P9Y146D
91968000
92676000
12500
62500
154268
154000
1574000
1574000
9000
581426000
-107209000
474226000
9000
589432000
-102465000
486976000
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -1pt;"><div style="display: inline; font-weight: bold;">NOTE <div style="display: inline; font-style: italic; font: inherit;">14.</div> Stockholders</div>'<div style="display: inline; font-weight: bold;"> Equity (Successor)</div></div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">At <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020, </div>the Company had <div style="display: inline; font-style: italic; font: inherit;">92,675,898</div> and <div style="display: inline; font-style: italic; font: inherit;">91,967,565</div> shares of common stock outstanding, respectively, <div style="display: inline; font-style: italic; font: inherit;">9,500,174</div> and <div style="display: inline; font-style: italic; font: inherit;">10,225,472</div> warrants outstanding, respectively, with an exercise price of <div style="display: inline; font-style: italic; font: inherit;"><div style="display: inline; font-style: italic; font: inherit;">$11.50</div></div> per share that expire on <div style="display: inline; font-style: italic; font: inherit;"> August 21, 2025 </div>and <div style="display: inline; font-style: italic; font: inherit;">10,209,300</div> and <div style="display: inline; font-style: italic; font: inherit;">10,209,300</div> CVRs outstanding, respectively that give the holders a right to receive up to <div style="display: inline; font-style: italic; font: inherit;"><div style="display: inline; font-style: italic; font: inherit;">2.125</div></div> shares of HighPeak Energy common stock per CVR to satisfy the Preferred Returns (with an equivalent number of shares of Company common stock held by HighPeak I and HighPeak II being collectively forfeited in connection therewith). As such, HighPeak I and HighPeak II have placed a total of <div style="display: inline; font-style: italic; font: inherit;">21,694,763</div> shares of common stock of the Company in escrow. </div></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -1pt;"><div style="display: inline; font-weight: bold;">NOTE <div style="display: inline; font-style: italic; font: inherit;">16.</div> Subsequent Events</div></div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -1pt; text-indent: 27pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Commodity Derivative Financial Instruments.</div></div><div style="display: inline; font-style: italic;"> </div>In <div style="display: inline; font-style: italic; font: inherit;"> April </div>of <div style="display: inline; font-style: italic; font: inherit;">2021,</div> the Company entered into commodity derivative financial instruments with Fifth Third to hedge a portion of its crude oil production. Details of the contracts are as follows:</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </div> <div> <table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: Times New Roman; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="14" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2021</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="10" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">2022</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Second</div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Quarter</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Third</div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Quarter</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Fourth</div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Quarter</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Total</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">First</div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Quarter</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Second</div></div></div> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Quarter</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Total</div></div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt; width: 30%;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt;"><div style="display: inline; font-weight: bold;">Oil Price Swaps - WTI: (a)</div></div> </td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"> </td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: Times New Roman; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;">Volume (Bbls)</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 7%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">152,500</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 7%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">230,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 7%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">230,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 7%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">612,500</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 7%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">225,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 7%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">75,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 7%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">300,000</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: Times New Roman; font-size: 10pt;"> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; margin-top: 0pt; margin-bottom: 0pt; margin-left: 9pt;">Price per Bbl</div> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 7%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">61.40</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 7%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">61.40</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 7%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">61.40</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 7%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">61.40</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 7%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">61.40</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 7%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">61.40</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt;"> </td> <td style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 7%; text-align: right; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font: inherit;">61.40</div></td> <td nowrap="nowrap" style="width: 1%; font-family: Times New Roman; font-size: 10pt; margin-left: 0pt;"> </td> </tr> </table> </div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </div> <table border="0" cellpadding="0" cellspacing="0" style="; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: top;"> <td style="width: 18pt;"> </td> <td style="width: 18pt;"> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">(a)</div> </td> <td> <div style=" font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;">These oil derivative contracts are settled based on the NYMEX – WTI calendar month average futures price.</div> </td> </tr> </table> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Crude oil marketing contract. </div></div>In <div style="display: inline; font-style: italic; font: inherit;"> May 2021, </div>the Company entered into a crude oil marketing contract with Lion as the purchaser and DKL Permian Gathering, LLC (“DKL”) as the gatherer and transporter. The contract includes the Company's current and future crude oil production from its horizontal wells in Flat Top where DKL will construct an oil gathering system and custody transfer meters to all the Company's central tank batteries. The oil gathering system and custody transfer meters are expected to be operational by <div style="display: inline; font-style: italic; font: inherit;"> October 2021. </div>The contract contains a minimum volume commitment commencing <div style="display: inline; font-style: italic; font: inherit;"> October 2021 </div>based on the gross barrels delivered at the Company's central tank battery facilities and is <div style="display: inline; font-style: italic; font: inherit;">5,000</div> Bopd for the <div style="display: inline; font-style: italic; font: inherit;">first</div> year, <div style="display: inline; font-style: italic; font: inherit;">7,500</div> Bopd for the <div style="display: inline; font-style: italic; font: inherit;">second</div> year and <div style="display: inline; font-style: italic; font: inherit;">10,000</div> Bopd for the remaining <div style="display: inline; font-style: italic; font: inherit;">eight</div> years of the contract. However, the Company has the ability under the contract to cumulatively bank excess volumes delivered to offset future minimum volume commitments. The Company believes it will meet the minimum volume commitments based on the Company's current gross production levels and the current Flat Top development plan.</div> <div style=" font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Natural gas purchasing replacement contract. </div></div>In <div style="display: inline; font-style: italic; font: inherit;"> May 2021, </div>the Company entered into a replacement gas purchase contract with WTG Gas Processing, L.P. (“WTG”) as the gatherer, processor and purchaser of the Company's current and future gross natural gas production in Flat Top. The replacement contract provides the Company with improved natural gas and NGL pricing and requires WTG to expand its current low-pressure gathering system, which eliminates the need for in-field compression in Flat Top to accommodate the Company's increased natural gas production volumes based on the current plan of development. In exchange for the improved pricing terms and expansion of the gathering system, the Company will provide WTG with certain aid-in-construction payments. The replacement contract does <div style="display: inline; font-style: italic; font: inherit;">not</div> contain minimum volume commitments. Once operational, the expanded natural gas gathering system will reduce flaring and the emission of greenhouse gases.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Accounts receivable. </div></div>The Company's accounts receivables are primarily comprised of oil, NGL and natural gas sales receivables, a current U.S. federal income tax receivable, joint interest receivables and other receivables for which the Company does <div style="display: inline; font-style: italic; font: inherit;">not</div> require collateral security. The Company's share of oil, NGL and natural gas production is sold to various purchasers who must be prequalified under the Company's credit risk policies and procedures. The Company records allowances for doubtful accounts based on the age of accounts receivables and the financial condition of its purchasers. The Company's credit risk related to collecting accounts receivables is mitigated by using credit and other financial criteria to evaluate the credit standing of the entity obligated to make payment on the accounts receivable, and where appropriate, the Company obtains assurances of payment, such as a guarantee by the parent company of the counterparty or other credit support.</div> <div style=" font-family: "Times New Roman"; font-size: 10pt; font-variant: normal; margin: 0pt 0pt 0pt -9pt;"> </div> <div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;">As of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020, </div>the Company's accounts receivables primarily consist of amounts due from the sale of crude oil, NGL and natural gas of <div style="display: inline; font-style: italic; font: inherit;">$13.4</div> million and <div style="display: inline; font-style: italic; font: inherit;">$4.2</div> million, respectively, and are based on estimates of sales volumes and realized prices the Company anticipates it will receive, a current U.S. federal income tax receivable of <div style="display: inline; font-style: italic; font: inherit;">$3.2</div> million and <div style="display: inline; font-style: italic; font: inherit;">$3.2</div> million, respectively, and joint interest receivables of <div style="display: inline; font-style: italic; font: inherit;">$311,000</div> and <div style="display: inline; font-style: italic; font: inherit;">$345,000,</div> respectively. The Company routinely reviews outstanding balances and establishes allowances for bad debts equal to the estimable portions of accounts receivable for which failure to collect is considered probable. As of <div style="display: inline; font-style: italic; font: inherit;"> March 31, 2021 </div>and <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020, </div>the Company had <div style="display: inline; font-style: italic; font: inherit;"><div style="display: inline; font-style: italic; font: inherit;">no</div></div> allowance for doubtful accounts.</div></div></div></div></div></div>
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<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family: Times New Roman; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt 0pt 0pt -1pt; text-indent: 25pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Use of estimates in the preparation of financial statements. </div></div>Preparation of the Company's unaudited interim condensed consolidated and combined financial statements in<div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;"> </div></div>conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Depletion of oil and natural gas properties and evaluations for impairment of proved and unproved oil and natural gas properties, in part, is determined using estimates of proved, probable and possible oil, NGL and natural gas reserves. There are numerous uncertainties inherent in the estimation of quantities of proved, probable and possible reserves and in the projection of future rates of production and the timing of development expenditures. Similarly, evaluations for impairment of proved and unproved oil and natural gas properties are subject to numerous uncertainties including, among others, estimates of future recoverable reserves, commodity price outlooks and future undiscounted and discounted net cash flows. Other items subject to such estimates and assumptions include, but are <div style="display: inline; font-style: italic; font: inherit;">not</div> limited to, the carrying value of oil and natural gas properties, asset retirement obligations, equity-based compensation and estimates of income taxes. Actual results could differ from the estimates and assumptions utilized.</div></div></div></div></div></div>
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Participating earnings represent the distributed and undistributed earnings of the Company attributable to the participating securities. Unexercised stock option awards do not participate in undistributed net losses as they are not contractually obligated to do so.
The revisions to the Company's asset retirement obligation estimates are primarily due to changes in estimated costs based on experience with the properties and their expected useful lives.
Participating earnings represent the distributed and undistributed earnings of the Company attributable to the participating securities. Unexercised stock option awards do not participate in undistributed net losses as they are not contractually obligated to do so.
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