Introduction
The following discussion and analysis is intended to help the reader understand our business, financial condition, results of operations, liquidity and capital resources. This discussion and analysis should be read in conjunction with the accompanying unaudited condensed consolidated financial statements and the accompanying notes included in this Quarterly Report, as well as our audited consolidated financial statements and the accompanying notes included in the 2022 Form 10-K. Our discussion and analysis includes the following subjects:
•Overview;
•Consolidated Results of Operations;
•Liquidity and Capital Resources; and
•Critical Accounting Policies and Estimates.
The financial information with respect to the three-month periods ended
Overview
We are an independent oil and natural gas company with a principal focus on
acquisition, development and production activities in the
The chart below shows production by product for the three-month periods ended
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Total MBoe production for the three-month period ended
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Tabl e of Contents Recent Events
•Consistent with our 2023 capital development program announced on
Outlook
We will continue to focus on growing the cash value allocation capability of our asset base in a safe, responsible and efficient manner, while exercising prudent capital allocations to projects we believe provide high rates of returns in the current commodity price environment. These projects include (1) a continuation of our well reactivation program, (2) artificial lift conversions to more efficient and cost effective systems, (3) focused drilling in high-graded areas and (4) limited opportunistic leasing in proven areas around or adjacent to our area of operations that could further bolster future development. Given near term commodity price dynamics, and that our Midcon assets are 99% held by production, which preserves the tenor of our development option, we concluded our drilling activity this quarter, with remaining completions to occur in the second quarter. We will continue to monitor forward-looking commodity prices, results, costs and other factors that could influence returns on investments, which will continue to shape our disciplined development decisions in 2023 and beyond. We will also continue to maintain optionality to execute on value accretive merger and acquisition opportunities that could bring synergies, leverage our core competencies, compliment our portfolio of assets, further utilize our NOLs or otherwise yield attractive returns for our shareholders.
Consolidated Results of Operations
Our consolidated revenues and cash flows are generated from the production and
sale of oil, natural gas and NGL. Our revenues, profitability and future growth
depend substantially on prevailing prices received for our production, the
quantity of oil, natural gas and NGL we produce, and our ability to find and
economically develop and produce our reserves. Prices for oil, natural gas and
NGL fluctuate widely and are difficult to predict. To provide information on the
general trend in pricing, the average
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