2024 Q1 Form 10-K Financial Statement

#000162828024014131 Filed on April 01, 2024

View on sec.gov

Income Statement

Concept 2024 Q1 2023 Q4 2023
Revenue $239.2M $309.1M $762.3M
YoY Change 24.45% -18.68%
Cost Of Revenue $91.55M $70.58M $227.0M
YoY Change -20.57%
Gross Profit $147.6M $238.5M $535.3M
YoY Change -17.85%
Gross Profit Margin 61.72% 77.16% 70.22%
Selling, General & Admin $10.33M $15.90M $27.65M
YoY Change 8.64%
% of Gross Profit 7.0% 6.67% 5.17%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $67.47M $43.69M $137.6M
YoY Change 118.18% 55.34%
% of Gross Profit 45.71% 18.32% 25.71%
Operating Expenses $80.36M $83.34M $176.1M
YoY Change 36.33%
Operating Profit $67.24M $155.1M $359.1M
YoY Change -28.0% -31.25%
Interest Expense $26.29M -$8.084M -$11.20M
YoY Change 1349.01% 130.85%
% of Operating Profit 39.09% -5.21% -3.12%
Other Income/Expense, Net -$25.54M $3.581M -$1.385M
YoY Change 1400.71% 100.43%
Pretax Income $41.70M $150.6M $346.6M
YoY Change -32.95%
Income Tax
% Of Pretax Income
Net Earnings $41.70M $150.6M $346.6M
YoY Change -54.52% -32.95%
Net Earnings / Revenue 17.44% 48.74% 45.46%
Basic Earnings Per Share $0.44 $0.72
Diluted Earnings Per Share $0.44 $1.59 $3.65
COMMON SHARES
Basic Shares Outstanding 95.00M shares 95.00M shares 94.91M shares
Diluted Shares Outstanding 95.01M shares 94.91M shares

Balance Sheet

Concept 2024 Q1 2023 Q4 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $151.3M $152.8M $152.8M
YoY Change 419.4%
Cash & Equivalents $151.3M $152.8M $152.8M
Short-Term Investments
Other Short-Term Assets $3.245M $27.23M $27.23M
YoY Change 1059.09% 1007.24%
Inventory $31.41M $31.38M $31.38M
Prepaid Expenses
Receivables $127.7M $78.05M $78.05M
Other Receivables $29.54M $54.15M $54.15M
Total Short-Term Assets $354.1M $343.6M $343.6M
YoY Change 84.5% 84.09%
LONG-TERM ASSETS
Property, Plant & Equipment $91.71M $1.939B $1.939B
YoY Change 2558.41% 177.69%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $5.833M $22.21M $22.21M
YoY Change 627.85% 627.85%
Total Long-Term Assets $1.962B $1.961B $1.961B
YoY Change 179.65% 179.65%
TOTAL ASSETS
Total Short-Term Assets $354.1M $343.6M $343.6M
Total Long-Term Assets $1.962B $1.961B $1.961B
Total Assets $2.316B $2.305B $2.305B
YoY Change 159.68% 159.56%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $63.43M $47.44M $47.44M
YoY Change 144.19% 139.06%
Accrued Expenses $45.52M $55.29M $55.29M
YoY Change -8.1% -22.05%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $82.50M $61.88M $61.88M
YoY Change
Total Short-Term Liabilities $353.1M $274.9M $274.9M
YoY Change 80.1% 79.61%
LONG-TERM LIABILITIES
Long-Term Debt $725.6M $745.1M $745.1M
YoY Change 777.67% 777.67%
Other Long-Term Liabilities $1.100M $92.74M $92.74M
YoY Change 34376.58% 63.65%
Total Long-Term Liabilities $819.6M $837.9M $837.9M
YoY Change 491.85% 491.85%
TOTAL LIABILITIES
Total Short-Term Liabilities $353.1M $274.9M $274.9M
Total Long-Term Liabilities $819.6M $837.9M $837.9M
Total Liabilities $1.173B $1.113B $1.113B
YoY Change 278.23% 277.69%
SHAREHOLDERS EQUITY
Retained Earnings
YoY Change
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $1.144B $1.192B $1.192B
YoY Change
Total Liabilities & Shareholders Equity $2.316B $2.305B $2.305B
YoY Change 159.68% 159.56%

Cashflow Statement

Concept 2024 Q1 2023 Q4 2023
OPERATING ACTIVITIES
Net Income $41.70M $150.6M $346.6M
YoY Change -54.52% -32.95%
Depreciation, Depletion And Amortization $67.47M $43.69M $137.6M
YoY Change 118.18% 55.34%
Cash From Operating Activities $144.0M $109.8M $491.7M
YoY Change -2.17% -11.16%
INVESTING ACTIVITIES
Capital Expenditures $55.31M $788.4M $1.070B
YoY Change 183.81%
Acquisitions
YoY Change
Other Investing Activities $587.0K $39.15M $42.49M
YoY Change 905.3%
Cash From Investing Activities -$54.72M -$749.3M -$1.027B
YoY Change -34.83% 175.63%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $168.5M
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$90.73M 733.5M 658.8M
YoY Change 52.73% -412.61%
NET CHANGE
Cash From Operating Activities $144.0M 109.8M 491.7M
Cash From Investing Activities -$54.72M -749.3M -1.027B
Cash From Financing Activities -$90.73M 733.5M 658.8M
Net Change In Cash -$1.492M 94.06M 123.4M
YoY Change -139.43% -513.25%
FREE CASH FLOW
Cash From Operating Activities $144.0M $109.8M $491.7M
Capital Expenditures $55.31M $788.4M $1.070B
Free Cash Flow $88.65M -$678.6M -$577.9M
YoY Change -427.14%

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CY2023 us-gaap Provision For Doubtful Accounts
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CY2021 us-gaap Provision For Doubtful Accounts
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CY2021 us-gaap Gain Loss On Disposition Of Assets1
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CY2021 us-gaap Asset Retirement Obligation Cash Paid To Settle
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CY2022 us-gaap Increase Decrease In Operating Assets
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CY2021 us-gaap Increase Decrease In Operating Assets
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CY2021 mnr Increase Decrease In Deferred Income
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CY2022 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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CY2021 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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CY2021 us-gaap Proceeds From Sale Of Other Property Plant And Equipment
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CY2022 us-gaap Net Cash Provided By Used In Investing Activities
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CY2021 us-gaap Net Cash Provided By Used In Investing Activities
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CY2021 us-gaap Proceeds From Issuance Initial Public Offering
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CY2021 mnr Payments For Treasury Units Purchased
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CY2021 us-gaap Proceeds From Long Term Lines Of Credit
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CY2022 us-gaap Distribution Made To Limited Liability Company Llc Member Cash Distributions Paid
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CY2021 us-gaap Distribution Made To Limited Liability Company Llc Member Cash Distributions Paid
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CY2023 us-gaap Payment For Contingent Consideration Liability Financing Activities
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CY2022 us-gaap Payment For Contingent Consideration Liability Financing Activities
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CY2021 us-gaap Payment For Contingent Consideration Liability Financing Activities
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CY2023 us-gaap Net Cash Provided By Used In Financing Activities
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CY2022 us-gaap Net Cash Provided By Used In Financing Activities
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CY2021 us-gaap Net Cash Provided By Used In Financing Activities
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CY2023 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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123375000 usd
CY2022 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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CY2021 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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CY2022Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2020Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2023Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2022Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2023 us-gaap Nature Of Operations
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<span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%;padding-left:3.3pt">Nature of Business</span><div style="margin-top:8pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Mach Natural Resources LP (“the Company”) is a Delaware limited partnership that was formed for the purpose of effectuating an initial public offering (the “Offering”) that closed in October 2023. The Company’s common units representing limited partnership interests (the “common units”) are listed on The New York Stock Exchange under the symbol “MNR.” The Company is an independent upstream oil and gas company focused on the acquisition, development and production of oil, natural gas and NGL reserves in the Anadarko Basin region of Western Oklahoma, Southern Kansas and the panhandle of Texas.</span></div><div style="margin-top:8pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Following the Offering and Corporate Reorganization, the Company became a holding partnership whose sole material asset consists of membership interests in Mach Natural Resources Intermediate LLC (“Intermediate”). Intermediate wholly owns Mach Natural Resources Holdco LLC (“Holdco”), and Holdco wholly owns each of the Company’s three operating subsidiaries, BCE-Mach LLC (“BCE-Mach”), BCE-Mach II LLC (“BCE-Mach II”) and BCE-Mach III LLC (collectively, the “Mach Companies”). BCE-Mach III LLC (the “Predecessor”) is the accounting predecessor to the Company for all periods prior to the Offering as discussed herein.</span></div><div style="margin-top:8pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company’s operations are governed by the provisions of its partnership agreement, executed by its general partner, Mach Natural Resources GP LLC (the “General Partner”) and the limited partners. The General Partner is managed and operated by the board of directors and executive officers of the General Partner. The members of the board of directors of the General Partner are appointed by the members of the General Partner, BCE-Mach Aggregator and Mach Resources in proportion to their respective limited partnership ownership in the Company.</span></div><div style="margin-top:8pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Management has evaluated how the Company is organized and managed and identified a single reportable segment, which is the exploration and production of oil, natural gas and NGLs. Management considers the Company’s gathering, processing and marketing functions as ancillary to its oil and gas producing activities. All of the Company’s operations and assets are located in the United States, and its revenues are attributable to United States customers.</span></div><div style="margin-top:12pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Corporate Reorganization</span></div><div style="margin-top:8pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On October 25, 2023, the Company underwent a corporate reorganization (the “Corporate Reorganization”) whereby (a) the owners who directly held membership interests in the Mach Companies prior to the Offering (the “Existing Owners”) contributed 100% of their membership interests in each of the Mach Companies for a pro rata allocation of 100% of the limited partner interests in the Company with BCE-Mach III determined as the accounting acquirer of the net assets and operations of BCE-Mach and BCE-Mach II through a business combination, (b) the Company contributed 100% of its membership interests in the Mach Companies to Intermediate in exchange for 100% of the membership interests in Intermediate, and (c) Intermediate contributed 100% of its membership interests in the Mach Companies to Holdco in exchange for 100% of the membership interests in Holdco.</span></div><div style="margin-top:12pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Initial Public Offering</span></div><div style="margin-top:8pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On October 27, 2023, the Company completed the Offering of 10,000,000 common units at a price of $19.00 per unit to the public. The sale of Company’s common units resulted in gross proceeds of $190.0 million to the Company and net proceeds of $168.5 million, after deducting underwriting fees and offering expenses. The material terms of the Offering are described in the Company’s final prospectus, filed with the U.S. Securities and Exchange Commission (“SEC”) on October 26, 2023, pursuant to Rule 424(b)(4) of the Securities Act of 1933, as amended (the “Securities Act”).</span></div><div style="margin-top:8pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company used $102.2 million of the proceeds to pay down the existing credit facilities of its operating subsidiaries (the “Pre-IPO Credit Facilities”) and $66.3 million of the proceeds to purchase 3,750,000 common units from the existing common unit owners on a pro rata basis. After giving effect to the Offering and the transactions related thereto, the Company had 95,000,000 common units issued and outstanding.</span></div>
CY2023Q4 us-gaap Repayments Of Long Term Lines Of Credit
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CY2023 mnr Depreciation Depletion And Amortization Oil And Natural Gas
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CY2022 mnr Depreciation Depletion And Amortization Oil And Natural Gas
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CY2021 mnr Depreciation Depletion And Amortization Oil And Natural Gas
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CY2021 us-gaap Impairment Of Oil And Gas Properties
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CY2023 us-gaap Use Of Estimates
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<div style="margin-top:12pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Use of Estimates</span></div><div style="margin-top:8pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The preparation of the financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although management believes these estimates are reasonable, actual results could differ from these estimates. The Company evaluates these estimates on an ongoing basis, using historical experience, consultation with experts and other methods the Company considers reasonable in the particular circumstances. Nevertheless, actual results may differ significantly from the Company’s estimates. Any effects on the Company’s business, financial position or results of operations resulting from revisions to these estimates are recorded in the period in which the facts that give rise to the revision become known.</span></div><div style="margin-top:8pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Significant items subject to such estimates and assumptions include, but are not limited to, estimates of proved oil and natural gas reserves and related present value estimates of future net cash flows therefrom, the fair value determination of acquired assets and liabilities assumed in business combinations and the fair value estimates of commodity derivatives.</span></div>
CY2023 us-gaap Prior Period Reclassification Adjustment Description
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<div style="margin-top:12pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Reclassifications</span></div><div style="margin-top:8pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Certain prior period amounts have been reclassified to conform to the current period financial statement presentation. These reclassifications had an immaterial effect on the previously reported total assets, total liabilities, partners’ capital, results of operations or cash flows.</span></div>
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CY2022 mnr Amortization Expense Per Physical Unit Of Production Average Expense During Period
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CY2021 mnr Amortization Expense Per Physical Unit Of Production Average Expense During Period
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CY2023 us-gaap Depreciation
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CY2022 us-gaap Depreciation
Depreciation
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CY2021 us-gaap Depreciation
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CY2021 us-gaap Impairment Of Long Lived Assets Held For Use
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18000000 usd
CY2023 mnr Asset Retirement Obligation Liabilities Assumed In Acquisitions
AssetRetirementObligationLiabilitiesAssumedInAcquisitions
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CY2022 mnr Asset Retirement Obligation Liabilities Assumed In Acquisitions
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CY2023 us-gaap Asset Retirement Obligation Liabilities Settled
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CY2022 us-gaap Asset Retirement Obligation Liabilities Settled
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CY2023 us-gaap Asset Retirement Obligation Revision Of Estimate
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CY2022 us-gaap Asset Retirement Obligation Revision Of Estimate
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CY2022 us-gaap Asset Retirement Obligation Accretion Expense
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CY2023Q4 us-gaap Asset Retirement Obligation
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CY2022Q4 us-gaap Asset Retirement Obligation
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CY2022 us-gaap Interest Paid Net
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CY2022 mnr Increase Decrease In Accrued Capital Expenditures Non Cash
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CY2023 us-gaap Settlement Of Asset Retirement Obligations Through Noncash Payments Amount
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CY2022 us-gaap Settlement Of Asset Retirement Obligations Through Noncash Payments Amount
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CY2021 us-gaap Settlement Of Asset Retirement Obligations Through Noncash Payments Amount
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CY2022 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
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CY2021 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
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CY2023 us-gaap Business Combination Consideration Transferred Equity Interests Issued And Issuable
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CY2022 us-gaap Business Combination Consideration Transferred Equity Interests Issued And Issuable
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CY2021 us-gaap Business Combination Consideration Transferred Equity Interests Issued And Issuable
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CY2023Q4 us-gaap Oil And Gas Property Full Cost Method Gross
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CY2022Q4 us-gaap Oil And Gas Property Full Cost Method Gross
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CY2023Q4 us-gaap Oil And Gas Property Full Cost Method Depletion
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CY2022Q4 us-gaap Oil And Gas Property Full Cost Method Depletion
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CY2023Q4 us-gaap Oil And Gas Property Full Cost Method Net
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1831645000 usd
CY2022Q4 us-gaap Oil And Gas Property Full Cost Method Net
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610420000 usd
CY2023Q4 us-gaap Property Plant And Equipment Gross
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CY2022Q4 us-gaap Property Plant And Equipment Gross
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CY2023Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
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CY2022Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
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CY2023Q4 us-gaap Property Plant And Equipment Net
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89660000 usd
CY2022Q4 us-gaap Property Plant And Equipment Net
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CY2023Q4 mnr Accrued Operating Expenses
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CY2022Q4 mnr Accrued Operating Expenses
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CY2023Q4 us-gaap Construction Payable Current
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CY2022Q4 us-gaap Construction Payable Current
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CY2022Q4 us-gaap Accrued Salaries Current
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2450000 usd
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CY2022Q4 us-gaap Settlement Liabilities Current
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CY2023Q4 us-gaap Postemployment Benefits Liability Current
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CY2023Q4 mnr Accrued Midstream Shipping Costs
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