Financial Analysis

COMMITMENTS & CONTINGENCIES Litigation The Company is engaged in various proceedings incidental to the normal course of business. Due to their nature, such legal proceedings involve inherent uncertainties, including, but not limited to, court rulings, negotiations between affected parties and governmental intervention. Based upon the information available to the Company and discussions with legal counsel, it is the Companys opinion that the outcome of the various legal actions and claims that are incidental to its business will not have a material impact on the Companys financial position, results of operations or cash flows. Such matters, however, are subject to many uncertainties, and the outcome of any matter is not predictable with assurance. …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

LONG-TERM DEBT The Companys long-term debt consists of the following: December 31, 2025 (In thousands) Principal Balance Premium/ (Discount) Debt Issuance Costs, Net Long-term Debt, Net Revolving Credit Facility (1) $ 478,000 $ $ $ 478,000 Senior Notes due 2028 20,165 124 (139) 20,150 Convertible Notes due 2029 700,000 9,619 (15,125) 694,494 Senior Notes due 2031 500,000 (4,828) (6,399) 488,773 Senior Notes due 2033 725,000 (11,024) 713,976 Total $ 2,423,165 $ 4,915 $ (32,687) $ 2,395,393 December 31, 2024 Principal Balance Premium/ (Discount) Debt Issuance Costs, Net Long-term Debt, Net Revolving Credit Facility (1) 690,000 690,000 Senior Notes due 2028 705,108 6,346 (7,097) 704,357 Convertible Notes due 2029 500,000 (11,780) 488,220 Senior Notes due 2031 500,000 (5,712) (7,571) 486,717 Total $ 2,395,108 $ 634 $ (26,448) $ 2,369,294 _______________ (1) Unamortized debt issuance costs related to the Companys Revolving Credit Facility of 13.1 million and $9.0 million as of December 31, 2025 and 2024, are recorded in Other Noncurrent Assets, Net in the balance sheets. Revolving Credit Facility In November 2025, the Company entered into a Fourth Amended and Restated Credit Agreement (the Revolving Credit Facility) with Wells Fargo Bank, National Association, as administrative agent and collateral agent (Agent), and the lenders from time to time party thereto, which amended and restated the Companys prior revolving credit facility that was entered into in June 2022. The Revolving …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following tables presents the disaggregation of the Companys oil revenues and natural gas and NGL revenues for the years ended December 31, 2025, 2024 and 2023. Twelve Months Ended December 31, (In thousands) 2025 2024 2023 Oil Sales $ 1,627,493 $ 1,897,857 $ 1,646,096 Natural Gas and NGL Sales (1) 453,795 254,222 251,683 Total $ 2,081,288 $ 2,152,079 $ 1,897,779 ___________ (1) Balances for the year ended December 31, 2025 include $81.7 million in legal settlement from an Operator in North Dakota. …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

STOCK-BASED COMPENSATION AND WARRANTS Stock-Based Compensation The Company maintains the Amended and Restated 2018 Equity Incentive Plan (the 2018 Plan) for the purpose of making equity-based awards to employees, directors and other eligible persons. As of December 31, 2025, there were 2,598,210 shares available for future awards or settlement of awards under the 2018 Plan. The Company recognizes the fair value of stock-based compensation awards expected to vest over the requisite service period as a charge against earnings, net of amounts capitalized. The Companys stock-based compensation awards are accounted for as equity instruments and are included in the General and administrative expenses line item in the statements of operations. The Company capitalizes a portion of stock-based compensation for employees who are directly involved in the acquisition of oil and natural gas properties into the full cost pool. Capitalized stock-based compensation is included in the Oil and natural gas properties line item in the balance sheets. Issuances made pursuant to the 2018 Plan are summarized as follows: The Company issues share-based awards in the form of restricted stock awards (RSAs), restricted stock units (RSUs) and share appreciation awards (SARs), subject to various vesting conditions, as compensation to executive officers, employees and directors of the Company. Typically, RSAs issued to employees and executive officers contain a service condition only and generally vest ove …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

FAIR VALUE Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The Company uses a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Financial Assets and Liabilities As required, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Companys assessment of the significance of a particular input requires judgment and may …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

INCOME TAXES Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating losses and tax credit carry-forwards. Under this method, deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income (loss) in the period that includes the enactment date. The One Big Beautiful Bill, which was enacted in July 2025, primarily makes permanent the tax implications of the Tax Cuts and Jobs Act from 2017. The income tax provisions include the reinstatement of the 100% additional first-year bonus depreciation deduction, updates to the calculation of disallowed interest, and updates to the determination of whether the Company is subject to the Corporate Alternative Minimum Tax. The income tax provisions for the years ended December 31, 2025, 2024, and 2023 consist of the following: (In thousands) 2025 2024 2023 Current Federal $ $ $ State 374 959 915 Total Current Tax Expense (Benefit) $ 374 $ 959 $ 915 Deferred Federal 16,435 145,224 209,168 State 7,499 14,402 22,035 Valuation Allowance (364) (76) (154,345) Total D …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recently Adopted and Recently Issued Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (FASB) that are adopted by the Company as of the specified effective date, as applicable. If not discussed, management believes that the impact of recently issued accounting standards, which are not yet effective, will not have a material impact on the Companys financial statements upon adoption. Recently Adopted Accounting Pronouncements: In December 2023, the FASB issued ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires the Company to disclose disaggregated jurisdictional and categorical information for the tax rate reconciliation, income taxes paid and other income tax related amounts. This guidance is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The Company adopted ASU 2023-09 as of December 31, 2025, on a retrospective basis, with no significant impact on its financial statements. However, the adoption of ASU 2023-09 resulted in more detailed and enhanced footnote disclosures (see Note 2 and Note 10 to the financial statements). Recently Issued Accounting Pronouncements: In November 2024, the FASB issued ASU 2024-04 Debt - Debt With Conversion and Other Options (Subtopic 470-20): Induced Conversion of Convertible Debt Instruments. The objective of the standard is to improve the relevance and consistency in applicati …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

RELATED PARTY TRANSACTIONS There were no material related party transactions as of December 31, 2025. The Companys Audit Committee is responsible for approving all transactions involving related parties. …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

SIGNIFICANT ACCOUNTING POLICIES These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). Out-of-Period Adjustments During the year ended December 31, 2024, the Company identified certain errors in its previously issued financial statements that have been corrected through cumulative out-of-period adjustments in the financial statements as of and for the year ended December 31, 2024. The errors related, primarily, to improper classifications of income taxes withheld by the state of New Mexico, from January 2021 through June 2024, that were recorded as production tax expense. As a result, the Company recorded an out-of-period adjustment of approximately $32.1 million in the year ended December 31, 2024 to record an income tax receivable, offset by a reduction in production taxes. Further, in the year ended December 31, 2024, the Company recorded an out-of-period adjustment of approximately $6.7 million to income tax expense, offset by an increase in deferred tax liabilities. These errors understated net income for the fiscal years ended December 31, 2023, 2022, and 2021, by approximately $9.3 million, $11.2 million, and $0.5 million, respectively. Management considered qualitative and quantitative factors and concluded the out-of-period adjustments were immaterial to 2024 and each of the applicable periods. Use of Estimates The preparation of financial statements under GAAP requires managem …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

COMMON AND PREFERRED STOCK Common Stock On May 23, 2024, the Company filed an amendment to its certificate of incorporation, which was effective upon filing, to increase the number of authorized shares of common stock, par value $0.001 per share, from 135,000,000 to 270,000,000, as approved by the Companys stockholders at the 2024 Annual Meeting of Stockholders on May 23, 2024. As of December 31, 2025 and 2024, the Company had 97,265,559 and 99,113,645 shares of common stock issued and outstanding, respectively. Preferred Stock The Company is authorized to issue up to 5,000,000 shares of preferred stock, par value $0.001 per share, with such designations, voting and other rights and preferences as may be determined from time to time by the Companys board of directors. As of December 31, 2025 and 2024, the Company had zero shares of preferred stock issued and outstanding. 2025 Activity Common Stock During the year ended December 31, 2025, 80,247 shares of common stock were surrendered by certain employees of the Company to cover tax obligations in connection with the vesting of their restricted stock awards. The total value of these shares surrendered, based on the market prices on the dates the shares were surrendered, was approximately $2.1 million. During the year ended December 31, 2025, 9,246 shares of the Companys stock, previously issued as stock-based compensation, were forfeited by former employees of the Company upon separation. During the year ended December 31, 202 …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

COMMITMENTS & CONTINGENCIES Litigation The Company is engaged in various proceedings incidental to the normal course of business. Due to their nature, such legal proceedings involve inherent uncertainties, including, but not limited to, court rulings, negotiations between affected parties and governmental intervention. Based upon the information available to the Company and discussions with legal counsel, it is the Companys opinion that the outcome of the various legal actions and claims that are incidental to its business will not have a material impact on the Companys financial position, results of operations or cash flows. Such matters, however, are subject to many uncertainties, and the outcome of any matter is not predictable with assurance. …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

LONG-TERM DEBT The Companys long-term debt consists of the following: March 31, 2026 (In thousands) Principal Balance Premium/(Discount) Debt Issuance Costs, Net Long-term Debt, Net Revolving Credit Facility (1) $ 653,000 $ $ $ 653,000 Convertible Notes due 2029 700,000 8,889 (13,977) 694,912 Senior Notes due 2031 500,000 (4,607) (6,106) 489,287 Senior Notes due 2033 725,000 (10,671) 714,329 Total $ 2,578,000 $ 4,282 $ (30,754) $ 2,551,528 December 31, 2025 Principal Balance Premium/(Discount) Debt Issuance Costs, Net Long-term Debt, Net Revolving Credit Facility (1) $ 478,000 $ $ $ 478,000 Senior Notes due 2028 20,165 124 (139) 20,150 Convertible Notes due 2029 700,000 9,619 (15,125) 694,494 Senior Notes due 2031 500,000 (4,828) (6,399) 488,773 Senior Notes due 2033 725,000 (11,024) 713,976 Total $ 2,423,165 $ 4,915 $ (32,687) $ 2,395,393 ________________ (1) Unamortized debt issuance costs related to the Companys Revolving Credit Facility of $14.0 million and $13.1 million as of March 31, 2026 and December 31, 2025, are recorded in Other Noncurrent Assets, Net in the condensed balance sheets. Revolving Credit Facility In November 2025, the Company entered into a Fourth Amended and Restated Credit Agreement (as amended, modified or supplemented through the date of this filing, the Revolving Credit Facility) with Wells Fargo Bank, National Association, as administrative agent and collateral agent (Agent), and the lenders from time to time party thereto, which amended and rest …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents the disaggregation of the Companys oil revenues and natural gas and NGL revenues for the three months ended March 31, 2026 and 2025. Three Months Ended March 31, (In thousands) 2026 2025 Oil Sales $ 439,082 $ 459,682 Natural Gas and NGL Sales 100,773 117,270 Total $ 539,855 $ 576,952 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

STOCK-BASED COMPENSATION Stock-Based Compensation The Company maintains the Amended and Restated 2018 Equity Incentive Plan (the 2018 Plan) for the purpose of making equity-based awards to employees, directors and other eligible persons. As of March 31, 2026, there were 2,256,637 shares available for future awards or settlement of awards under the 2018 Plan. The Company recognizes the fair value of stock-based compensation awards expected to vest over the requisite service period as a charge against earnings, net of amounts capitalized. The Companys stock-based compensation awards are accounted for as equity instruments and are included in the General and administrative expenses line item in the condensed statements of operations. The Company capitalizes a portion of stock-based compensation for employees who are directly involved in the acquisition of oil and natural gas properties into the full cost pool. Capitalized stock-based compensation is included in the Oil and natural gas properties line item in the condensed balance sheets. Issuances made pursuant to the 2018 Plan are summarized as follows: The Company issues share-based awards in the form of restricted stock awards (RSAs), restricted stock units (RSUs) and share appreciation awards (SARs), subject to various vesting conditions, as compensation to executive officers, employees and directors of the Company. Typically, RSAs issued to employees and executive officers contain a service condition only and generally vest …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

FAIR VALUE Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The Company uses a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Financial Assets and Liabilities As required, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Companys assessment of the significance of a particular input requires judgment and may …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

INCOME TAXES Income tax expense or benefits during interim periods is based on applying an estimated annual effective income tax rate to year-to-date income, plus any significant unusual or infrequently occurring items which are recorded in the interim period. The provision for income taxes or benefits for the three months ended March 31, 2026 and 2025 differs from the amount that would be provided by applying the statutory U.S. federal income tax rate of 21% to pre-tax income (loss) primarily due to the non-deductibility of permanent items, state income taxes, and discrete items during the three months ended March 31, 2026 and 2025. In assessing the realizability of deferred tax assets (DTAs), management considers whether it is more likely than not that some portion, or all, of the Companys DTAs will not be realized. In making such determination, the Company considers all available positive and negative evidence, including (i) its earnings history, (ii) its ability to recover net operating loss carry-forwards, (iii) the projected future income and results of operations, and (iv) its ability to use tax planning strategies. If the Company concludes that it is more likely than not that some portion, or all, of its DTAs will not be realized, the tax asset is reduced by a valuation allowance. The Company assesses the appropriateness of its valuation allowance on a quarterly basis. The One Big Beautiful Bill (OBBB), which was enacted in July 2025, primarily makes permanent the tax …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recently Adopted and Recently Issued Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (FASB) that are adopted by the Company as of the specified effective date, as applicable. If not discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Companys financial statements upon adoption. Recently Adopted Accounting Pronouncements: In November 2024, the FASB issued ASU 2024-04 Debt - Debt With Conversion and Other Options (Subtopic 470-20): Induced Conversion of Convertible Debt Instruments. The objective of the standard is to improve the relevance and consistency in application of the induced conversion guidance in Subtopic 470-20, Debt with Conversion and Other Options. This standard will affect entities that settle convertible debt instruments for which the conversion privileges are changed to induce conversion. ASU 2024-04 is effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. The Company adopted ASU 2024-04 as of March 31, 2026, with no material impact on its financial statements and related disclosures. Recently Issued Accounting Pronouncements: In November 2024, the FASB issued ASU 2024-03 Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation These financial statements, which are unaudited, have been prepared in accordance with generally accepted accounting principles in the United States (GAAP). Such information includes all adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods. The results of operations for interim periods are not necessarily indicative of the results to be expected for an entire year. Certain information, accounting policies, and footnote disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted in this Quarterly Report on Form 10-Q pursuant to certain rules and regulations of the Securities and Exchange Commission (SEC). The condensed financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2025, which were included in the Companys 2025 Annual Report on Form 10-K for the fiscal year ended December 31, 2025. Use of Estimates The preparation of financial statements under 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 dur …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

COMMON AND PREFERRED STOCK Common Stock On May 23, 2024, the Company filed an amendment to its certificate of incorporation, which was effective upon filing, to increase the number of authorized shares of common stock, par value $0.001 per share, from 135,000,000 to 270,000,000, as approved by the Companys stockholders at the 2024 Annual Meeting of Stockholders on May 23, 2024. As of March 31, 2026, the Company had 105,791,123 shares of common stock issued and outstanding. Preferred Stock The Company is authorized to issue up to 5,000,000 shares of preferred stock, par value $0.001 per share, with such designations, voting and other rights and preferences as may be determined from time to time by the Companys board of directors. As of March 31, 2026, the Company had zero shares of preferred stock issued and outstanding. 2026 Activity Common Stock During the three months ended March 31, 2026, 104,298 shares of common stock were surrendered by certain employees of the Company to cover tax obligations in connection with the vesting of their restricted stock awards. The total value of these shares surrendered, based on the market prices on the dates the shares were surrendered, was approximately $2.8 million. During the three months ended March 31, 2026, 1,467 shares of the Companys stock, previously issued as stock-based compensation, were forfeited by former employees of the Company upon separation. During the three months ended March 31, 2026, the Company issued 343,040 shares …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing