General and administrative expenses

$ 301,368,000

$ 117,875,000

$ 552,527,000

$ 360,076,000

Expenses

Taxes other than income

22,382,000

10,372,000

41,345,000

30,058,000

15,450,000

23,776,000

47,433,000

33,509,000

Interest, net of amounts capitalized of $1,168, $8,729, $2,251 and $18,181, respectively

1,252,000

20,617,000

2,788,000

40,563,000

Depletion, depreciation, and amortization

36,381,000

55,414,000

75,831,000

152,276,000

Commodity derivatives expense (income)

172,664,000

40,130,000

288,407,000

(106,641,000)

Gain on debt extinguishment

0

(18,994,000)

Write-down of oil and natural gas properties

0

662,440,000

14,377,000

734,981,000

Other expenses

3,214,000

11,290,000

5,360,000

13,784,000

Total expenses

379,359,000

917,055,000

700,402,000

1,095,856,000

Loss before income taxes

(77,991,000)

(799,180,000)

(147,875,000)

(735,780,000)

Income tax benefit

(296,000)

(101,706,000)

(538,000)

(112,322,000)

Net loss

$ (77,695,000)

$ (697,474,000)

$ (147,337,000)

$ (623,458,000)

Net loss per common share

Basic

$ (1.52)

$ (1.41)

$ (2.91)

$ (1.26)

Diluted

$ (1.52)

$ (1.41)

$ (2.91)

$ (1.26)

Weighted average common shares outstanding

Basic

50,999

495,245

50,661

494,752

Diluted

^[1]

50,999

495,245

50,661

494,752

Other income

Transportation and marketing

$ 707,000

$ 494,000

$ 1,067,000

$ 1,322,000

Oil, natural gas, and related product sales

8,522,000

9,388,000

16,319,000

19,009,000

282,708,000

109,387,000

518,153,000

339,011,000

110,225,000

81,293,000

192,195,000

190,563,000

CO2

10,134,000

6,504,000

19,362,000

14,532,000

1,531,000

885,000

2,524,000

1,637,000

Oil marketing

7,819,000

1,490,000

13,945,000

5,211,000

Basis of Presentation and Significant Accounting Policies

$ 7,738,000

$ 1,450,000

$ 13,823,000

$ 5,111,000

[1]	If the Company had recognized net income, the weighted average diluted shares outstanding would have been 54.3 million and 587.1 million for the three months ended June 30, 2021 and 2020, respectively, and 52.7 million and 586.6 million for the six months ended June 30, 2021 and 2020, respectively.

Condensed Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Expenses
Capitalized interest	$ 1,168	$ 8,729	$ 2,251	$ 18,181

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash flows from operating activities
Net loss	$ (147,337,000)	$ (623,458,000)
Adjustments to reconcile net loss to cash flows from operating activities
Depletion, depreciation, and amortization	75,831,000	152,276,000
Write-down of oil and natural gas properties	14,377,000	734,981,000
Deferred income taxes	(87,000)	(106,513,000)
Stock-based compensation	20,232,000	3,540,000
Commodity derivatives expense (income)	288,407,000	(106,641,000)
Receipt (payment) on settlements of commodity derivatives	(101,796,000)	70,267,000
Gain on debt extinguishment	0	(18,994,000)
Debt issuance costs and discounts	1,370,000	9,921,000
Other, net	744,000	(1,642,000)
Changes in assets and liabilities, net of effects from acquisitions
Accrued production receivable	(48,881,000)	62,063,000
Trade and other receivables	(5,578,000)	(16,162,000)
Other current and long-term assets	1,294,000	(4,552,000)
Accounts payable and accrued liabilities	27,292,000	(60,295,000)
Oil and natural gas production payable	20,224,000	(22,217,000)
Other liabilities	(2,554,000)	237,000
Net cash provided by operating activities	143,538,000	72,811,000
Cash flows from investing activities
Oil and natural gas capital expenditures	(53,411,000)	(79,897,000)
Acquisitions of oil and natural gas properties	(10,811,000)	0
Pipelines and plants capital expenditures	(4,851,000)	(10,962,000)
Net proceeds from sales of oil and natural gas properties and equipment	18,456,000	40,971,000
Other	(4,159,000)	(105,000)
Net cash used in investing activities	(54,776,000)	(49,993,000)
Cash flows from financing activities
Bank repayments	(485,000,000)	(226,000,000)
Bank borrowings	450,000,000	491,000,000
Interest payments treated as a reduction of debt	0	(42,506,000)
Cash paid in conjunction with debt repurchases	0	(14,171,000)
Pipeline financing and capital lease debt repayments	(33,510,000)	(7,015,000)
Other	(2,735,000)	(9,529,000)
Net cash provided by (used in) financing activities	(71,245,000)	191,779,000
Net increase in cash, cash equivalents, and restricted cash	17,517,000	214,597,000
Cash, cash equivalents, and restricted cash at beginning of period	42,248,000	33,045,000
Cash, cash equivalents, and restricted cash at end of period	$ 59,765,000	$ 247,642,000

Condensed Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock ($.001 Par Value)	Paid-In Capital in Excess of Par	Retained Earnings (Accumulated Deficit)	Treasury Stock (at cost)
Beginning balance, shares at Dec. 31, 2019		508,065,495			1,652,771
Beginning balance at Dec. 31, 2019	$ 1,412,259	$ 508	$ 2,739,099	$ (1,321,314)	$ (6,034)
Issued pursuant to stock compensation plans, shares		312,516
Issued pursuant to directors' compensation plan, shares		37,367
Stock-based compensation, value	3,204		3,204
Tax withholding for stock compensation plans, shares					175,673
Tax withholding for stock compensation plans, value	(34)				$ (34)
Net income (loss)	74,016			74,016
Ending balance, shares at Mar. 31, 2020		508,415,378			1,828,444
Ending balance at Mar. 31, 2020	1,489,445	$ 508	2,742,303	(1,247,298)	$ (6,068)
Beginning balance, shares at Dec. 31, 2019		508,065,495			1,652,771
Beginning balance at Dec. 31, 2019	1,412,259	$ 508	2,739,099	(1,321,314)	$ (6,034)
Net income (loss)	(623,458)
Ending balance, shares at Jun. 30, 2020		509,553,960			1,828,444
Ending balance at Jun. 30, 2020	804,419	$ 510	2,754,749	(1,944,772)	$ (6,068)
Beginning balance, shares at Mar. 31, 2020		508,415,378			1,828,444
Beginning balance at Mar. 31, 2020	1,489,445	$ 508	2,742,303	(1,247,298)	$ (6,068)
Canceled pursuant to stock compensation plans, shares		(6,218,868)
Canceled pursuant to stock compensation plans, value		$ (6)	6
Issued pursuant to notes conversion, shares		7,357,450
Issued pursuant to notes conversion, value	11,461	$ 8	11,453
Stock-based compensation, value	987		987
Net income (loss)	(697,474)			(697,474)
Ending balance, shares at Jun. 30, 2020		509,553,960			1,828,444
Ending balance at Jun. 30, 2020	804,419	$ 510	2,754,749	(1,944,772)	$ (6,068)
Canceled pursuant to stock compensation plans, shares		(95,016)
Issued pursuant to notes conversion, shares		14,800
Issued pursuant to notes conversion, value	40		40
Stock-based compensation, value	10,126		10,126
Tax withholding for stock compensation plans, shares					567,189
Tax withholding for stock compensation plans, value	(134)				$ (134)
Cancellation of Predecessor equity, shares		(509,473,744)			(2,395,633)
Cancellation of Predecessor equity, value	(5,331)	$ (510)	(2,764,915)	2,753,892	$ 6,202
Issuance of Successor equity, shares		49,999,999
Issuance of Successor equity, value	1,095,419	$ 50	1,095,369
Net income (loss)	(809,120)			(809,120)
Ending balance, shares at Sep. 18, 2020		49,999,999
Ending balance at Sep. 18, 2020	1,095,419	$ 50	1,095,369
Net income (loss)	2,758			2,758
Ending balance, shares at Sep. 30, 2020		49,999,999
Ending balance at Sep. 30, 2020	1,098,177	$ 50	1,095,369	2,758
Stock-based compensation, value	8,907		8,907
Net income (loss)	$ (53,416)			(53,416)
Ending balance, shares at Dec. 31, 2020	49,999,999	49,999,999
Ending balance at Dec. 31, 2020	$ 1,053,668	$ 50	1,104,276	(50,658)
Stock-based compensation, value	19,172		19,172
Tax withholding for stock compensation plans, value	(1,467)		(1,467)
Issued pursuant to exercise of warrants, shares		5,620
Issued pursuant to exercise of warrants, value	195	$ 0	195
Net income (loss)	(69,642)			(69,642)
Ending balance, shares at Mar. 31, 2021		50,005,619
Ending balance at Mar. 31, 2021	$ 1,001,926	$ 50	1,122,176	(120,300)
Beginning balance, shares at Dec. 31, 2020	49,999,999	49,999,999
Beginning balance at Dec. 31, 2020	$ 1,053,668	$ 50	1,104,276	(50,658)
Net income (loss)	$ (147,337)
Ending balance, shares at Jun. 30, 2021	50,017,491	50,017,491
Ending balance at Jun. 30, 2021	$ 927,198	$ 50	1,125,143	(197,995)
Beginning balance, shares at Mar. 31, 2021		50,005,619
Beginning balance at Mar. 31, 2021	1,001,926	$ 50	1,122,176	(120,300)
Stock-based compensation, value	2,682		2,682
Tax withholding for stock compensation plans, value	(7)		(7)
Issued pursuant to exercise of warrants, shares		11,872
Issued pursuant to exercise of warrants, value	292	$ 0	292
Net income (loss)	$ (77,695)			(77,695)
Ending balance, shares at Jun. 30, 2021	50,017,491	50,017,491
Ending balance at Jun. 30, 2021	$ 927,198	$ 50	$ 1,125,143	$ (197,995)

Basis of Presentation

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

Note 1. Basis of Presentation

Organization and Nature of Operations

Denbury Inc. (“Denbury,” “Company” or the “Successor”), a Delaware corporation, is an independent energy company with operations focused in the Gulf Coast and Rocky Mountain regions. The Company is differentiated by its focus on CO2 enhanced oil recovery (“EOR”) and the emerging carbon capture, use, and storage (“CCUS”) industry, supported by the Company’s CO2 EOR technical and operational expertise and its extensive CO2 pipeline infrastructure. The utilization of captured industrial-sourced CO2 in EOR significantly reduces the carbon footprint of the oil that Denbury produces, underpinning the Company’s goal to fully offset its Scope 1, 2, and 3 CO2 emissions within this decade, primarily through increasing the amount of captured industrial-sourced CO2 used in its operations.

Emergence from Voluntary Reorganization Under Chapter 11 of the Bankruptcy Code

On July 30, 2020, Denbury Resources Inc. (the “Predecessor”) and its subsidiaries filed petitions for reorganization in a “prepackaged” voluntary bankruptcy under chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas (the “Bankruptcy Court”) under the caption “In re Denbury Resources Inc., et al., Case No. 20-33801”. On September 2, 2020, the Bankruptcy Court entered an order (the “Confirmation Order”) confirming the prepackaged joint plan of reorganization (the “Plan”) and approving the Disclosure Statement, and on September 18, 2020 (the “Emergence Date”), the Plan became effective in accordance with its terms and the Company emerged from Chapter 11 as the successor reporting company of Denbury Resources Inc. On April 23, 2021, the Bankruptcy Court entered a final decree closing the Chapter 11 case captioned “In re Denbury Resources Inc., et al., Case No. 20-33801”, so all of the Chapter 11 cases have been closed.

Upon emergence from bankruptcy, we met the criteria and were required to adopt fresh start accounting in accordance with Financial Accounting Standards Board Codification (“FASC”) Topic 852, Reorganizations. Fresh start accounting requires that new fair values be established for the Company’s assets, liabilities and equity as of the Emergence Date, and therefore certain values and operational results of the condensed consolidated financial statements subsequent to September 18, 2020 are not comparable to those in the Company’s condensed consolidated financial statements prior to, and including September 18, 2020. The Emergence Date fair values of the Successor’s assets and liabilities differ materially from their recorded values as reflected on the historical balance sheets of the Predecessor contained in periodic reports previously filed with the Securities and Exchange Commission. References to “Successor” relate to the financial position and results of operations of the Company subsequent to September 18, 2020, and references to “Predecessor” relate to the financial position and results of operations of the Company prior to, and including, September 18, 2020.

Interim Financial Statements

The accompanying unaudited condensed consolidated financial statements of Denbury Inc. and its subsidiaries have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. These financial statements and the notes thereto should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2020 (the “Form 10-K”). Unless indicated otherwise or the context requires, the terms “we,” “our,” “us,” “Company” or “Denbury,” refer to Denbury Inc. and its subsidiaries.

Accounting measurements at interim dates inherently involve greater reliance on estimates than at year end, and the results of operations for the interim periods shown in this report are not necessarily indicative of results to be expected for the year. In management’s opinion, the accompanying unaudited condensed consolidated financial statements include all adjustments of a normal recurring nature necessary for a fair presentation of our consolidated financial position as of June 30, 2021 (Successor); our consolidated results of operations for the three and six months ended June 30, 2021 (Successor) and June 30, 2020 (Predecessor); our consolidated cash flows for the six months ended June 30, 2021 (Successor) and June 30, 2020 (Predecessor); and our consolidated statements of changes in stockholders’ equity for the three and six months ended June 30, 2021 (Successor), for the period January 1, 2020 through September 18, 2020 (Predecessor), and for the period September 19, 2020 through December 31, 2020 (Successor). Upon the adoption of fresh start accounting, the Company’s assets and liabilities were recorded at their fair values as of the fresh start reporting date. As a result of the adoption of fresh start

accounting, certain values and operational results of the Company’s condensed consolidated financial statements subsequent to September 18, 2020 are not comparable to those in its condensed consolidated financial statements prior to, and including September 18, 2020.

Reclassifications

Certain prior period amounts have been reclassified to conform to the current year presentation. Such reclassifications had no impact on our reported net income (loss), current assets, total assets, current liabilities, total liabilities or stockholders’ equity.

Cash, Cash Equivalents, and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents, and restricted cash as reported within the Unaudited Condensed Consolidated Balance Sheets to “Cash, cash equivalents, and restricted cash at end of period” as reported within the Unaudited Condensed Consolidated Statements of Cash Flows:


	Successor
In thousands	June 30, 2021		December 31, 2020
Cash and cash equivalents	$	13,565	$	518
Restricted cash, current	—		1,000
Restricted cash included in other assets	46,200		40,730
Total cash, cash equivalents, and restricted cash shown in the Unaudited Condensed Consolidated Statements of Cash Flows	$	59,765	$	42,248

Restricted cash included in other assets in the table above consists of escrow accounts that are legally restricted for certain of our asset retirement obligations, and are included in “Other assets” in the accompanying Unaudited Condensed Consolidated Balance Sheets.

Net Income (Loss) per Common Share

Basic net income (loss) per common share is computed by dividing the net income (loss) attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted net income per common share is calculated in the same manner but includes the impact of potentially dilutive securities. Potentially dilutive securities during the Successor periods consist of nonvested restricted stock units and outstanding series A and series B warrants, and during the Predecessor periods consisted of nonvested restricted stock, nonvested performance-based equity awards, and convertible senior notes. For the three and six months ended June 30, 2021 and 2020, there were no adjustments to net loss for purposes of calculating basic and diluted net loss per common share.

The following is a reconciliation of the weighted average shares used in the basic and diluted net loss per common share calculations for the periods indicated:


	Successor	Predecessor	Successor	Predecessor
In thousands	Three Months Ended June 30, 2021	Three Months Ended June 30, 2020	Six Months Ended June 30, 2021	Six Months Ended June 30, 2020







Weighted average common shares outstanding – basic	50,999	495,245	50,661	494,752
Effect of potentially dilutive securities
Restricted stock units	—	—	—

Warrants	—	—	—	—
Restricted stock and performance-based equity awards	—	—	—	—
Convertible senior notes(1)	—	—	—	—
Weighted average common shares outstanding – diluted(2)	50,999	495,245	50,661	494,752

(1)In connection with the Company’s emergence from bankruptcy on September 18, 2020, all outstanding convertible senior notes were fully extinguished.

(2)If the Company had recognized net income, the weighted average diluted shares outstanding would have been 54.3 million and 587.1 million for the three months ended June 30, 2021 and 2020, respectively, and 52.7 million and 586.6 million for the six months ended June 30, 2021 and 2020, respectively.

Basic weighted average common shares during the Successor periods includes 987,987 and 563,416 performance stock units during the three and six months ended June 30, 2021, respectively, with vesting parameters tied to the Company’s common stock trading prices and which became fully vested on March 3, 2021. Although the performance measures for vesting of these awards have been achieved, the shares underlying these awards are not currently outstanding as actual delivery of the shares is not scheduled to occur until after the end of the performance period, December 4, 2023. Basic weighted average common shares during the Predecessor periods included time-vesting restricted stock that vested during the periods.

The following outstanding securities were excluded from the computation of diluted net loss per share, as their effect would have been antidilutive, as of the respective dates:


	Successor	Predecessor
In thousands	June 30, 2021	June 30, 2020
Restricted stock units	1,255	—
Warrants	5,503	—
Stock appreciation rights	—	1,493
Nonvested time-based restricted stock and performance-based equity awards	—	5,572
Convertible senior notes	—	83,495

For the Successor period, the Company’s restricted stock units and series A and series B warrants were antidilutive based on the Company’s net loss position for the period. At June 30, 2021, the Company had approximately 5.5 million warrants outstanding that can be exercised for shares of the Successor’s common stock, at an exercise price of $32.59 per share for the 2.6 million series A warrants and at an exercise price of $35.41 per share for the 2.9 million series B warrants. The series A warrants are exercisable until September 18, 2025, and the series B warrants are exercisable until September 18, 2023, at which time the warrants expire. The warrants were issued pursuant to the Plan to holders of the Predecessor’s convertible senior notes, senior subordinated notes, and equity. As of June 30, 2021, 2,315 series A warrants and 20,927 series B warrants had been exercised. The warrants may be exercised for cash or on a cashless basis. If warrants are exercised on a cashless basis, the amount of dilution will be less than 5.5 million shares.

Oil and Natural Gas Properties

Unevaluated Costs. Under full cost accounting, we exclude certain unevaluated costs from the amortization base and full cost ceiling test pending the determination of whether proved reserves can be assigned to such properties. These costs are transferred to the full cost amortization base as these properties are developed, tested and evaluated. At least annually, we test these assets for impairment based on an evaluation of management’s expectations of future pricing, evaluation of lease expiration terms, and planned development activities. In the first quarter of 2020 Predecessor period, given the significant declines in NYMEX oil prices in March and April 2020, we reassessed our development plans and transferred $244.9 million of our unevaluated costs to the full cost amortization base. Upon emergence from bankruptcy, the Company adopted fresh start accounting which resulted in our oil and natural gas properties, including unevaluated properties, being recorded at their fair values at the Emergence Date.

Write-Down of Oil and Natural Gas Properties. Under full cost accounting, the net capitalized costs of oil and natural gas properties are limited to the lower of unamortized cost or the cost center ceiling. The cost center ceiling is defined as (1) the present value of estimated future net revenues from proved oil and natural gas reserves before future abandonment costs (discounted at 10%), based on the average first-day-of-the-month oil and natural gas price for each month during a 12-month rolling period prior to the end of a particular reporting period; plus (2) the cost of properties not being amortized; plus (3) the lower of cost or estimated fair value of unproved properties included in the costs being amortized, if any; less (4) related income tax effects. Our future net revenues from proved oil and natural gas reserves are not reduced for development costs related to the cost of drilling for and developing CO2 reserves nor those related to the cost of constructing CO2 pipelines, as we do not have to incur additional CO2 capital costs to develop the proved oil and natural gas reserves. Therefore, we include in the ceiling test, as a reduction of future net revenues, that portion of our capitalized CO2 costs related to CO2 reserves and CO2 pipelines that we estimate will be consumed in the process of producing our proved oil and natural gas reserves. The fair value of our oil and natural gas derivative contracts is not included in the ceiling test, as we do not designate these contracts as hedge instruments for accounting purposes. The cost center ceiling test is prepared quarterly.

We recognized a full cost pool ceiling test write-down of $14.4 million during the three months ended March 31, 2021, with first-day-of-the-month NYMEX oil prices for the preceding 12 months averaging $36.40 per Bbl, after adjustments for market differentials and transportation expenses by field. The write-down was primarily a result of the recent acquisition (see Note 2 – Acquisition and Divestiture) which was recorded based on a valuation that utilized NYMEX strip oil prices at the acquisition date, which were significantly higher than the average first-day-of-the-month NYMEX oil prices used to value the cost ceiling. We also recognized full cost pool ceiling test write-downs of $662.4 million and $72.5 million during the Predecessor three months ended June 30, 2020 and March 31, 2020, respectively. We did not record a ceiling test write-down during the three months ended June 30, 2021.

Recent Accounting Pronouncements

Recently Adopted

Income Taxes. In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU 2019-12, Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes (“ASU 2019-12”). The objective of ASU 2019-12 is to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and to provide more consistent application to improve the comparability of financial statements. Effective January 1, 2021, we adopted ASU 2019-02. The implementation of this standard did not have a material impact on our consolidated financial statements and related footnote disclosures.

Acquisition and Divestiture

6 Months Ended

Jun. 30, 2021

Business Combinations [Abstract]

Acquisition and Divestiture

Note 2. Acquisition and Divestiture

Acquisition of Wyoming CO2 EOR Fields

On March 3, 2021, we acquired a nearly 100% working interest (approximately 83% net revenue interest) in the Big Sand Draw and Beaver Creek EOR fields located in Wyoming from a subsidiary of Devon Energy Corporation for $10.7 million cash (before final closing adjustments), including surface facilities and a 46-mile CO2 transportation pipeline to the acquired fields. The acquisition agreement provides for us to make two contingent cash payments, one in January 2022 and one in January 2023, of $4 million each, conditioned on NYMEX WTI oil prices averaging at least $50 per Bbl during 2021 and 2022, respectively. The fair value of the contingent consideration on the acquisition date was $5.3 million, and as of June 30, 2021, the fair value of the contingent consideration recorded on our unaudited condensed consolidated balance sheets was $7.0 million. The $1.7 million increase from the March 2021 acquisition date fair value was the result of higher NYMEX WTI oil prices and was recorded to “Other expenses” in our Unaudited Condensed Consolidated Statements of Operations.

The fair values allocated to our assets acquired and liabilities assumed for the acquisition were based on significant inputs not observable in the market and considered level 3 inputs. The following table presents a summary of the fair value of assets acquired and liabilities assumed in the acquisition:


In thousands
Consideration:
Cash consideration	$	10,657

Less: Fair value of assets acquired and liabilities assumed:(1)
Proved oil and natural gas properties	59,852
Other property and equipment	1,685
Asset retirement obligations	(39,794)
Contingent consideration	(5,320)
Other liabilities	(5,766)
Fair value of net assets acquired	$	10,657

(1)Fair value of assets acquired and liabilities assumed is preliminary, pending final closing adjustments and further evaluation of reserves and liabilities assumed.

Divestiture of Hartzog Draw Deep Mineral Rights

On June 30, 2021, we closed the sale of undeveloped, unconventional deep mineral rights in Hartzog Draw Field in Wyoming. The cash proceeds of $18 million were recorded to “Proved properties” in our Unaudited Condensed Consolidated Balance Sheets. The proceeds reduced our full cost pool; therefore, no gain or loss was recorded on the transaction, and the sale had no impact on our production or reserves.

Revenue Recognition

6 Months Ended

Jun. 30, 2021

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Note 3. Revenue Recognition

We record revenue in accordance with FASC Topic 606, Revenue from Contracts with Customers. The core principle of FASC Topic 606 is that an entity should recognize revenue for the transfer of goods or services equal to the amount of consideration that it expects to be entitled to receive for those goods or services. Once we have delivered the volume of commodity to the delivery point and the customer takes delivery and possession, we are entitled to payment and we invoice the customer for such delivered production. Payment under most oil and CO2 contracts is received within a month following product delivery and for natural gas and NGL contracts payment is generally received within two months following delivery. Timing of revenue recognition may differ from the timing of invoicing to customers; however, as the right to consideration after delivery is unconditional based on only the passage of time before payment of the consideration is due, upon delivery we record a receivable in “Accrued production receivable” in our Unaudited Condensed Consolidated Balance Sheets. From time to time,

the Company enters into marketing arrangements for the purchase and sale of crude oil for third parties. Revenues and expenses from these transactions are presented on a gross basis, as we act as a principal in the transaction by assuming control of the commodities purchased and responsibility to deliver the commodities sold. Revenue is recognized when control transfers to the purchaser at the delivery point based on the price received from the purchaser.

Disaggregation of Revenue

The following table summarizes our revenues by product type:


	Successor		Predecessor		Successor		Predecessor

In thousands	Three Months Ended June 30, 2021		Three Months Ended June 30, 2020		Six Months Ended June 30, 2021		Six Months Ended June 30, 2020
Oil sales	$	280,577	$	108,538	$	513,621	$	337,115
Natural gas sales	2,131		849		4,532		1,896
CO2 sales and transportation fees	10,134		6,504		19,362		14,532
Oil marketing revenues	7,819		1,490		13,945		5,211
Total revenues	$	300,661	$	117,381	$	551,460	$	358,754

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
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Long-Term Debt

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Long-Term Debt

Note 4. Long-Term Debt

The table below reflects long-term debt outstanding as of the dates indicated:


	Successor
In thousands	June 30, 2021		December 31, 2020
Senior Secured Bank Credit Agreement	$	35,000	$	70,000
Pipeline financings	34,498		68,008
Total debt principal balance	69,498		138,008
Less: current maturities of long-term debt	(34,498)		(68,008)
Long-term debt	$	35,000	$	70,000

Senior Secured Bank Credit Agreement

On the Emergence Date, we entered into a credit agreement with JPMorgan Chase Bank, N.A., as administrative agent, and other lenders party thereto (the “Bank Credit Agreement”). The Bank Credit Agreement is a senior secured revolving credit facility with an initial borrowing base and lender commitments of $575 million. Availability under the Bank Credit Agreement is subject to a borrowing base, which is redetermined semiannually on or around May 1 and November 1 of each year, with our next scheduled redetermination around November 1, 2021. The borrowing base is adjusted at the lenders’ discretion and is based, in part, upon external factors over which we have no control. If our outstanding debt under the Bank Credit Agreement exceeds the then-effective borrowing base, we would be required to repay the excess amount over a period not to exceed six months. The Bank Credit Agreement matures on January 30, 2024. The weighted average interest rate on borrowings outstanding as of June 30, 2021 under the Bank Credit Agreement was 4.0%. The undrawn portion of the aggregate lender commitments under the Bank Credit Agreement is subject to a commitment fee of 0.5% per annum.

The Bank Credit Agreement prohibits us from paying dividends on our common stock through September 17, 2021. Commencing on September 18, 2021, we may pay dividends on our common stock or make other restricted payments in an amount not to exceed “Distributable Free Cash Flow”, but only if (1) no event of default or borrowing base deficiency exists; (2) our total leverage ratio is 2 to 1 or lower; and (3) availability under the Bank Credit Agreement is at least 20%. The Bank Credit Agreement also limits our ability to, among other things, incur and repay other indebtedness; grant liens; engage in certain mergers, consolidations, liquidations and dissolutions; engage in sales of assets; make acquisitions and investments; make other restricted payments (including redeeming, repurchasing or retiring our common stock); and enter into commodity derivative agreements, in each case subject to customary exceptions.

The Successor Bank Credit Agreement is secured by (1) our proved oil and natural gas properties, which are held through our restricted subsidiaries; (2) the pledge of equity interests of such subsidiaries; (3) a pledge of our commodity derivative agreements; (4) a pledge of deposit accounts, securities accounts and our commodity accounts; and (5) a security interest in substantially all other collateral that may be perfected by a Uniform Commercial Code filing, subject to certain exceptions.

The Bank Credit Agreement contains certain financial performance covenants including the following:

•A Consolidated Total Debt to Consolidated EBITDAX covenant (as defined in the Bank Credit Agreement), with such ratio not to exceed 3.5 times; and

•A requirement to maintain a current ratio (i.e., Consolidated Current Assets to Consolidated Current Liabilities) of 1.0 time.

For purposes of computing the current ratio per the Bank Credit Agreement, Consolidated Current Assets exclude the current portion of derivative assets but include available borrowing capacity under the Bank Credit Agreement, and Consolidated Current Liabilities exclude the current portion of derivative liabilities as well as the current portions of long-term indebtedness outstanding. As of June 30, 2021, we were in compliance with all debt covenants under the Bank Credit Agreement.

The above description of our Bank Credit Agreement is qualified by the express language and defined terms contained in the Bank Credit Agreement.

Pipeline Financing Transactions

During the first half of 2021, Denbury paid $35.0 million to Genesis Energy, L.P., half of the four quarterly installments totaling $70 million to be paid during 2021 in accordance with the October 2020 restructuring of the financing arrangements of our NEJD CO2 pipeline system. The third quarterly installment of $17.5 million was paid in July 2021, and the final quarterly payment of $17.5 million is payable on October 31, 2021.

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Note 5. Income Taxes We evaluate our estimated annual effective income tax rate based on current and forecasted business results and enacted tax laws on a quarterly basis and apply this tax rate to our ordinary income or loss to calculate our estimated tax liability or benefit. Our income taxes are based on an estimated combined federal and state statutory rate of approximately 25% in 2021 and 2020. Our effective tax rates for the three and six months ended June 30, 2021 (Successor) differed from our estimated statutory rate as the deferred tax benefit generated from our operating losses were offset by a valuation allowance applied to our underlying federal and state deferred tax assets.

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Commodity Derivative Contracts

6 Months Ended

Jun. 30, 2021

Commodity Derivative Contracts

Note 6. Commodity Derivative Contracts

We do not apply hedge accounting treatment to our oil and natural gas derivative contracts; therefore, the changes in the fair values of these instruments are recognized in income in the period of change. These fair value changes, along with the settlements of expired contracts, are shown under “Commodity derivatives expense (income)” in our Unaudited Condensed Consolidated Statements of Operations.

Historically, we have entered into various oil and natural gas derivative contracts to provide an economic hedge of our exposure to commodity price risk associated with anticipated future oil and natural gas production and to provide more certainty to our future cash flows. We do not hold or issue derivative financial instruments for trading purposes. Generally, these contracts have consisted of various combinations of price floors, collars, three-way collars, fixed-price swaps, fixed-price swaps enhanced with a sold put, and basis swaps. The production that we hedge has varied from year to year depending on our levels of debt, financial strength and expectation of future commodity prices. In addition, our new senior secured bank credit facility entered into on the Emergence Date required that, by December 31, 2020, we have certain minimum commodity hedge levels in place covering anticipated crude oil production through July 31, 2022. The requirement is non-recurring, and we were in compliance with the hedging requirements as of December 31, 2020.

We manage and control market and counterparty credit risk through established internal control procedures that are reviewed on an ongoing basis. We attempt to minimize credit risk exposure to counterparties through formal credit policies, monitoring procedures and diversification, and all of our commodity derivative contracts are with parties that are lenders under our Bank Credit Agreement (or affiliates of such lenders). As of June 30, 2021, all of our outstanding derivative contracts were subject to enforceable master netting arrangements whereby payables on those contracts can be offset against receivables from separate derivative contracts with the same counterparty. It is our policy to classify derivative assets and liabilities on a gross basis on our balance sheets, even if the contracts are subject to enforceable master netting arrangements.

The following table summarizes our commodity derivative contracts as of June 30, 2021, none of which are classified as hedging instruments in accordance with the FASC Derivatives and Hedging topic:


Months	Index Price	Volume (Barrels per day)	Contract Prices ($/Bbl)
			Range(1)				Weighted Average Price
							Swap		Floor		Ceiling
Oil Contracts:
2021 Fixed-Price Swaps
July – Dec	NYMEX	29,000	$	38.68	–	56.00	$	43.86	$	—	$	—
2021 Collars
July – Dec	NYMEX	4,000	$	45.00	–	59.30	$	—	$	46.25	$	53.04
2022 Fixed-Price Swaps
Jan – June	NYMEX	15,500	$	42.65	–	58.15	$	49.01	$	—	$	—
July – Dec	NYMEX	9,000		50.13	–	60.35	56.35		—		—
2022 Collars
Jan – June	NYMEX	11,000	$	47.50	–	70.75	$	—	$	49.77	$	64.31
July – Dec	NYMEX	10,000		47.50	–	70.75	—		49.75		64.18

(1)Ranges presented for fixed-price swaps represent the lowest and highest fixed prices of all open contracts for the period presented. For collars, ranges represent the lowest floor price and highest ceiling price for all open contracts for the period presented.

Fair Value Measurements

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 7. Fair Value Measurements

The FASC Fair Value Measurement topic defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (often referred to as the “exit price”). We utilize market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable. We primarily apply the income approach for recurring fair value measurements and endeavor to utilize the best available information. Accordingly, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. We are able to classify fair value balances based on the observability of those inputs. The FASC establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are as follows:

•Level 1 – Quoted prices in active markets for identical assets or liabilities as of the reporting date.

•Level 2 – Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reported date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. Instruments in this category include non-exchange-traded oil derivatives that are based on NYMEX and regional pricing other than NYMEX (e.g., Light Louisiana Sweet). Our costless collars and the sold put features of our three-way collars are valued using the Black-Scholes model, an industry standard option valuation model that takes into account inputs such as contractual prices for the underlying instruments, maturity, quoted forward prices for commodities, interest rates, volatility factors and credit worthiness, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term

of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace.

•Level 3 – Pricing inputs include significant inputs that are generally less observable. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value.

We adjust the valuations from the valuation model for nonperformance risk, using our estimate of the counterparty’s credit quality for asset positions and our credit quality for liability positions. We use multiple sources of third-party credit data in determining counterparty nonperformance risk, including credit default swaps.

The following table sets forth, by level within the fair value hierarchy, our financial assets and liabilities that were accounted for at fair value on a recurring basis as of the periods indicated:


	Fair Value Measurements Using:
In thousands	Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
June 30, 2021





Liabilities
Oil derivative contracts – current	$	—	$	(223,212)	$	—	$	(223,212)
Oil derivative contracts – long-term	—		(22,164)		—		(22,164)
Total Liabilities	$	—	$	(245,376)	$	—	$	(245,376)

December 31, 2020
Assets
Oil derivative contracts – current	$	—	$	187	$	—	$	187
Total Assets	$	—	$	187	$	—	$	187

Liabilities
Oil derivative contracts – current	$	—	$	(53,865)	$	—	$	(53,865)
Oil derivative contracts – long-term	—		(5,087)		—		(5,087)
Total Liabilities	$	—	$	(58,952)	$	—	$	(58,952)

Since we do not apply hedge accounting for our commodity derivative contracts, any gains and losses on our assets and liabilities are included in “Commodity derivatives expense (income)” in the accompanying Unaudited Condensed Consolidated Statements of Operations.

Other Fair Value Measurements

The carrying value of our loans under our Bank Credit Agreement approximate fair value, as they are subject to short-term floating interest rates that approximate the rates available to us for those periods. The estimated fair value of the principal amount of our debt as of June 30, 2021 and December 31, 2020, excluding pipeline financing obligations, was $35.0 million and $70.0 million. We have other financial instruments consisting primarily of cash, cash equivalents, U.S. Treasury notes, short-term receivables and payables that approximate fair value due to the nature of the instrument and the relatively short maturities.

Additional Balance Sheet Details

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 8. Commitments and Contingencies Chapter 11 Proceedings On July 30, 2020, Denbury Resources Inc. and each of its wholly-owned subsidiaries filed for relief under chapter 11 of the Bankruptcy Code. The chapter 11 cases were administered jointly under the caption “In re Denbury Resources Inc., et al., Case No. 20-33801”. On September 2, 2020, the Bankruptcy Court entered the Confirmation Order and on the Emergence Date, all of the conditions of the Plan were satisfied or waived and the Plan became effective and was implemented in accordance with its terms. On September 30, 2020, the Bankruptcy Court closed the chapter 11 cases of each of Denbury Inc.’s wholly-owned subsidiaries. On April 23, 2021, the Bankruptcy Court entered a final decree closing the Chapter 11 case captioned “In re Denbury Resources Inc., et al., Case No. 20-33801”, so all of the Chapter 11 cases have been closed. Litigation We are involved in various lawsuits, claims and regulatory proceedings incidental to our businesses. We are also subject to audits for various taxes (income, sales and use, and severance) in the various states in which we operate, and from time to time receive assessments for potential taxes that we may owe. While we currently believe that the ultimate outcome of these proceedings, individually and in the aggregate, will not have a material adverse effect on our financial position, results of operations or cash flows, litigation is subject to inherent uncertainties. We accrue for losses from litigation and claims if we determine that a loss is probable and the amount can be reasonably estimated.

Additional Balance Sheet Details

6 Months Ended

Jun. 30, 2021

Disclosure Text Block [Abstract]

Note 9. Additional Balance Sheet Details

Trade and Other Receivables, Net


	Successor
In thousands	June 30, 2021		December 31, 2020
Trade accounts receivable, net	$	11,795	$	11,691
Federal income tax receivable, net	597		597
Commodity derivative settlement receivables	—		5,716
Other receivables(1)	12,348		1,678
Total	$	24,740	$	19,682

(1)Primarily consists of a currently estimated $9.9 million benefit under the Company’s power agreements for reduced power usage during the winter storms in February 2021.

Accounts Payable and Accrued Liabilities


	Successor
In thousands	June 30, 2021		December 31, 2020
Accounts payable	$	27,166	$	18,629
Accrued derivative settlements	26,121		3,908
Accrued lease operating expenses	24,802		21,294
Accrued compensation	21,428		7,512
Accrued exploration and development costs	12,361		1,861
Taxes payable	10,180		17,221
Accrued general and administrative expenses	4,432		21,825
Other	37,415		20,421
Total	$	163,905	$	112,671

Basis of Presentation (Policies)

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

Organization and Nature of Operations

Denbury Inc. (“Denbury,” “Company” or the “Successor”), a Delaware corporation, is an independent energy company with operations focused in the Gulf Coast and Rocky Mountain regions. The Company is differentiated by its focus on CO2 enhanced oil recovery (“EOR”) and the emerging carbon capture, use, and storage (“CCUS”) industry, supported by the Company’s CO2 EOR technical and operational expertise and its extensive CO2 pipeline infrastructure. The utilization of captured industrial-sourced CO2 in EOR significantly reduces the carbon footprint of the oil that Denbury produces, underpinning the Company’s goal to fully offset its Scope 1, 2, and 3 CO2 emissions within this decade, primarily through increasing the amount of captured industrial-sourced CO2 used in its operations.

Interim Financial Statements - Basis of Accounting, Policy

Interim Financial Statements

The accompanying unaudited condensed consolidated financial statements of Denbury Inc. and its subsidiaries have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. These financial statements and the notes thereto should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2020 (the “Form 10-K”). Unless indicated otherwise or the context requires, the terms “we,” “our,” “us,” “Company” or “Denbury,” refer to Denbury Inc. and its subsidiaries.

Interim Financial Statements - Use of Estimates

Accounting measurements at interim dates inherently involve greater reliance on estimates than at year end, and the results of operations for the interim periods shown in this report are not necessarily indicative of results to be expected for the year. In management’s opinion, the accompanying unaudited condensed consolidated financial statements include all adjustments of a normal recurring nature necessary for a fair presentation of our consolidated financial position as of June 30, 2021 (Successor); our consolidated results of operations for the three and six months ended June 30, 2021 (Successor) and June 30, 2020 (Predecessor); our consolidated cash flows for the six months ended June 30, 2021 (Successor) and June 30, 2020 (Predecessor); and our consolidated statements of changes in stockholders’ equity for the three and six months ended June 30, 2021 (Successor), for the period January 1, 2020 through September 18, 2020 (Predecessor), and for the period September 19, 2020 through December 31, 2020 (Successor). Upon the adoption of fresh start accounting, the Company’s assets and liabilities were recorded at their fair values as of the fresh start reporting date. As a result of the adoption of fresh start accounting, certain values and operational results of the Company’s condensed consolidated financial statements subsequent to September 18, 2020 are not comparable to those in its condensed consolidated financial statements prior to, and including September 18, 2020.

Reclassifications

Certain prior period amounts have been reclassified to conform to the current year presentation. Such reclassifications had no impact on our reported net income (loss), current assets, total assets, current liabilities, total liabilities or stockholders’ equity.

Cash, Cash Equivalents, and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents, and restricted cash as reported within the Unaudited Condensed Consolidated Balance Sheets to “Cash, cash equivalents, and restricted cash at end of period” as reported within the Unaudited Condensed Consolidated Statements of Cash Flows:


	Successor
In thousands	June 30, 2021		December 31, 2020
Cash and cash equivalents	$	13,565	$	518
Restricted cash, current	—		1,000
Restricted cash included in other assets	46,200		40,730
Total cash, cash equivalents, and restricted cash shown in the Unaudited Condensed Consolidated Statements of Cash Flows	$	59,765	$	42,248

Restricted cash included in other assets in the table above consists of escrow accounts that are legally restricted for certain of our asset retirement obligations, and are included in “Other assets” in the accompanying Unaudited Condensed Consolidated Balance Sheets.

Net Loss per Common Share

Net Income (Loss) per Common Share

Basic net income (loss) per common share is computed by dividing the net income (loss) attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted net income per common share is calculated in the same manner but includes the impact of potentially dilutive securities. Potentially dilutive securities during the Successor periods consist of nonvested restricted stock units and outstanding series A and series B warrants, and during the Predecessor periods consisted of nonvested restricted stock, nonvested performance-based equity awards, and convertible senior notes. For the three and six months ended June 30, 2021 and 2020, there were no adjustments to net loss for purposes of calculating basic and diluted net loss per common share.

The following is a reconciliation of the weighted average shares used in the basic and diluted net loss per common share calculations for the periods indicated:


	Successor	Predecessor	Successor	Predecessor
In thousands	Three Months Ended June 30, 2021	Three Months Ended June 30, 2020	Six Months Ended June 30, 2021	Six Months Ended June 30, 2020







Weighted average common shares outstanding – basic	50,999	495,245	50,661	494,752
Effect of potentially dilutive securities
Restricted stock units	—	—	—

Warrants	—	—	—	—
Restricted stock and performance-based equity awards	—	—	—	—
Convertible senior notes(1)	—	—	—	—
Weighted average common shares outstanding – diluted(2)	50,999	495,245	50,661	494,752

(1)In connection with the Company’s emergence from bankruptcy on September 18, 2020, all outstanding convertible senior notes were fully extinguished.

(2)If the Company had recognized net income, the weighted average diluted shares outstanding would have been 54.3 million and 587.1 million for the three months ended June 30, 2021 and 2020, respectively, and 52.7 million and 586.6 million for the six months ended June 30, 2021 and 2020, respectively.

Basic weighted average common shares during the Successor periods includes 987,987 and 563,416 performance stock units during the three and six months ended June 30, 2021, respectively, with vesting parameters tied to the Company’s common stock trading prices and which became fully vested on March 3, 2021. Although the performance measures for vesting of these awards have been achieved, the shares underlying these awards are not currently outstanding as actual delivery of the shares is not scheduled to occur until after the end of the performance period, December 4, 2023. Basic weighted average common shares during the Predecessor periods included time-vesting restricted stock that vested during the periods.

The following outstanding securities were excluded from the computation of diluted net loss per share, as their effect would have been antidilutive, as of the respective dates:


	Successor	Predecessor
In thousands	June 30, 2021	June 30, 2020
Restricted stock units	1,255	—
Warrants	5,503	—
Stock appreciation rights	—	1,493
Nonvested time-based restricted stock and performance-based equity awards	—	5,572
Convertible senior notes	—	83,495

Oil and Natural Gas Properties

Unevaluated Costs. Under full cost accounting, we exclude certain unevaluated costs from the amortization base and full cost ceiling test pending the determination of whether proved reserves can be assigned to such properties. These costs are transferred to the full cost amortization base as these properties are developed, tested and evaluated. At least annually, we test these assets for impairment based on an evaluation of management’s expectations of future pricing, evaluation of lease expiration terms, and planned development activities. In the first quarter of 2020 Predecessor period, given the significant declines in NYMEX oil prices in March and April 2020, we reassessed our development plans and transferred $244.9 million of our unevaluated costs to the full cost amortization base. Upon emergence from bankruptcy, the Company adopted fresh start accounting which resulted in our oil and natural gas properties, including unevaluated properties, being recorded at their fair values at the Emergence Date.

Write-Down of Oil and Natural Gas Properties. Under full cost accounting, the net capitalized costs of oil and natural gas properties are limited to the lower of unamortized cost or the cost center ceiling. The cost center ceiling is defined as (1) the present value of estimated future net revenues from proved oil and natural gas reserves before future abandonment costs (discounted at 10%), based on the average first-day-of-the-month oil and natural gas price for each month during a 12-month rolling period prior to the end of a particular reporting period; plus (2) the cost of properties not being amortized; plus (3) the lower of cost or estimated fair value of unproved properties included in the costs being amortized, if any; less (4) related income tax effects. Our future net revenues from proved oil and natural gas reserves are not reduced for development costs related to the cost of drilling for and developing CO2 reserves nor those related to the cost of constructing CO2 pipelines, as we do not have to incur additional CO2 capital costs to develop the proved oil and natural gas reserves. Therefore, we include in the ceiling test, as a reduction of future net revenues, that portion of our capitalized CO2 costs related to CO2 reserves and CO2 pipelines that we estimate will be consumed in the process of producing our proved oil and natural gas reserves. The fair value of our oil and natural gas derivative contracts is not included in the ceiling test, as we do not designate these contracts as hedge instruments for accounting purposes. The cost center ceiling test is prepared quarterly.

We recognized a full cost pool ceiling test write-down of $14.4 million during the three months ended March 31, 2021, with first-day-of-the-month NYMEX oil prices for the preceding 12 months averaging $36.40 per Bbl, after adjustments for market differentials and transportation expenses by field. The write-down was primarily a result of the recent acquisition (see Note 2 – Acquisition and Divestiture) which was recorded based on a valuation that utilized NYMEX strip oil prices at the acquisition date, which were significantly higher than the average first-day-of-the-month NYMEX oil prices used to value the cost ceiling. We also recognized full cost pool ceiling test write-downs of $662.4 million and $72.5 million during the Predecessor three months ended June 30, 2020 and March 31, 2020, respectively. We did not record a ceiling test write-down during the three months ended June 30, 2021.

Recent Accounting Pronouncements

Recently Adopted

Income Taxes. In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU 2019-12, Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes (“ASU 2019-12”). The objective of ASU 2019-12 is to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and to provide more consistent application to improve the comparability of financial statements. Effective January 1, 2021, we adopted ASU 2019-02. The implementation of this standard did not have a material impact on our consolidated financial statements and related footnote disclosures.

Revenue Recognition

We record revenue in accordance with FASC Topic 606, Revenue from Contracts with Customers. The core principle of FASC Topic 606 is that an entity should recognize revenue for the transfer of goods or services equal to the amount of consideration that it expects to be entitled to receive for those goods or services. Once we have delivered the volume of commodity to the delivery point and the customer takes delivery and possession, we are entitled to payment and we invoice the customer for such delivered production. Payment under most oil and CO2 contracts is received within a month following product delivery and for natural gas and NGL contracts payment is generally received within two months following delivery. Timing of revenue recognition may differ from the timing of invoicing to customers; however, as the right to consideration after delivery is unconditional based on only the passage of time before payment of the consideration is due, upon delivery we record a receivable in “Accrued production receivable” in our Unaudited Condensed Consolidated Balance Sheets. From time to time, the Company enters into marketing arrangements for the purchase and sale of crude oil for third parties. Revenues and expenses from these transactions are presented on a gross basis, as we act as a principal in the transaction by assuming control of the commodities purchased and responsibility to deliver the commodities sold. Revenue is recognized when control transfers to the purchaser at the delivery point based on the price received from the purchaser.

Income Taxes

We evaluate our estimated annual effective income tax rate based on current and forecasted business results and enacted tax laws on a quarterly basis and apply this tax rate to our ordinary income or loss to calculate our estimated tax liability or benefit. Our income taxes are based on an estimated combined federal and state statutory rate of approximately 25% in 2021 and 2020.

Commodity Derivative Contracts

We do not apply hedge accounting treatment to our oil and natural gas derivative contracts; therefore, the changes in the fair values of these instruments are recognized in income in the period of change. These fair value changes, along with the settlements of expired contracts, are shown under “Commodity derivatives expense (income)” in our Unaudited Condensed Consolidated Statements of Operations.

Historically, we have entered into various oil and natural gas derivative contracts to provide an economic hedge of our exposure to commodity price risk associated with anticipated future oil and natural gas production and to provide more certainty to our future cash flows. We do not hold or issue derivative financial instruments for trading purposes. Generally, these contracts have consisted of various combinations of price floors, collars, three-way collars, fixed-price swaps, fixed-price swaps enhanced with a sold put, and basis swaps. The production that we hedge has varied from year to year depending on our levels of debt, financial strength and expectation of future commodity prices. In addition, our new senior secured bank credit facility entered into on the Emergence Date required that, by December 31, 2020, we have certain minimum commodity hedge levels in place covering anticipated crude oil production through July 31, 2022. The requirement is non-recurring, and we were in compliance with the hedging requirements as of December 31, 2020.

We manage and control market and counterparty credit risk through established internal control procedures that are reviewed on an ongoing basis. We attempt to minimize credit risk exposure to counterparties through formal credit policies, monitoring procedures and diversification, and all of our commodity derivative contracts are with parties that are lenders under our Bank Credit Agreement (or affiliates of such lenders). As of June 30, 2021, all of our outstanding derivative contracts were subject to enforceable master netting arrangements whereby payables on those contracts can be offset against receivables from separate derivative contracts with the same counterparty. It is our policy to classify derivative assets and liabilities on a gross basis on our balance sheets, even if the contracts are subject to enforceable master netting arrangements.

Fair Value Measurements

The FASC Fair Value Measurement topic defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (often referred to as the “exit price”). We utilize market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable. We primarily apply the income approach for recurring fair value measurements and endeavor to utilize the best available information. Accordingly, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. We are able to classify fair value balances based on the observability of those inputs. The FASC establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are as follows:

•Level 1 – Quoted prices in active markets for identical assets or liabilities as of the reporting date.

•Level 2 – Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reported date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. Instruments in this category include non-exchange-traded oil derivatives that are based on NYMEX and regional pricing other than NYMEX (e.g., Light Louisiana Sweet). Our costless collars and the sold put features of our three-way collars are valued using the Black-Scholes model, an industry standard option valuation model that takes into account inputs such as contractual prices for the underlying instruments, maturity, quoted forward prices for commodities, interest rates, volatility factors and credit worthiness, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term

of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace.

•Level 3 – Pricing inputs include significant inputs that are generally less observable. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value.

We adjust the valuations from the valuation model for nonperformance risk, using our estimate of the counterparty’s credit quality for asset positions and our credit quality for liability positions. We use multiple sources of third-party credit data in determining counterparty nonperformance risk, including credit default swaps.

Basis of Presentation (Tables)

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

Schedule of cash, cash equivalents, and restricted cash

The following table provides a reconciliation of cash, cash equivalents, and restricted cash as reported within the Unaudited Condensed Consolidated Balance Sheets to “Cash, cash equivalents, and restricted cash at end of period” as reported within the Unaudited Condensed Consolidated Statements of Cash Flows:


	Successor
In thousands	June 30, 2021		December 31, 2020
Cash and cash equivalents	$	13,565	$	518
Restricted cash, current	—		1,000
Restricted cash included in other assets	46,200		40,730
Total cash, cash equivalents, and restricted cash shown in the Unaudited Condensed Consolidated Statements of Cash Flows	$	59,765	$	42,248

Schedule of earnings per share, basic and diluted reconciliation

The following is a reconciliation of the weighted average shares used in the basic and diluted net loss per common share calculations for the periods indicated:


	Successor	Predecessor	Successor	Predecessor
In thousands	Three Months Ended June 30, 2021	Three Months Ended June 30, 2020	Six Months Ended June 30, 2021	Six Months Ended June 30, 2020







Weighted average common shares outstanding – basic	50,999	495,245	50,661	494,752
Effect of potentially dilutive securities
Restricted stock units	—	—	—

Warrants	—	—	—	—
Restricted stock and performance-based equity awards	—	—	—	—
Convertible senior notes(1)	—	—	—	—
Weighted average common shares outstanding – diluted(2)	50,999	495,245	50,661	494,752

(1)In connection with the Company’s emergence from bankruptcy on September 18, 2020, all outstanding convertible senior notes were fully extinguished.

(2)If the Company had recognized net income, the weighted average diluted shares outstanding would have been 54.3 million and 587.1 million for the three months ended June 30, 2021 and 2020, respectively, and 52.7 million and 586.6 million for the six months ended June 30, 2021 and 2020, respectively.

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The following outstanding securities were excluded from the computation of diluted net loss per share, as their effect would have been antidilutive, as of the respective dates:


	Successor	Predecessor
In thousands	June 30, 2021	June 30, 2020
Restricted stock units	1,255	—
Warrants	5,503	—
Stock appreciation rights	—	1,493
Nonvested time-based restricted stock and performance-based equity awards	—	5,572
Convertible senior notes	—	83,495

Acquisition and Divestiture (Tables)

6 Months Ended

Jun. 30, 2021

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table presents a summary of the fair value of assets acquired and liabilities assumed in the acquisition:


In thousands
Consideration:
Cash consideration	$	10,657

Less: Fair value of assets acquired and liabilities assumed:(1)
Proved oil and natural gas properties	59,852
Other property and equipment	1,685
Asset retirement obligations	(39,794)
Contingent consideration	(5,320)
Other liabilities	(5,766)
Fair value of net assets acquired	$	10,657

(1)Fair value of assets acquired and liabilities assumed is preliminary, pending final closing adjustments and further evaluation of reserves and liabilities assumed.

Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2021

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table summarizes our revenues by product type:


	Successor		Predecessor		Successor		Predecessor

In thousands	Three Months Ended June 30, 2021		Three Months Ended June 30, 2020		Six Months Ended June 30, 2021		Six Months Ended June 30, 2020
Oil sales	$	280,577	$	108,538	$	513,621	$	337,115
Natural gas sales	2,131		849		4,532		1,896
CO2 sales and transportation fees	10,134		6,504		19,362		14,532
Oil marketing revenues	7,819		1,490		13,945		5,211
Total revenues	$	300,661	$	117,381	$	551,460	$	358,754

Long-Term Debt (Tables)

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Components of Long-Term Debt

The table below reflects long-term debt outstanding as of the dates indicated:


	Successor
In thousands	June 30, 2021		December 31, 2020
Senior Secured Bank Credit Agreement	$	35,000	$	70,000
Pipeline financings	34,498		68,008
Total debt principal balance	69,498		138,008
Less: current maturities of long-term debt	(34,498)		(68,008)
Long-term debt	$	35,000	$	70,000

Commodity Derivative Contracts (Tables)

6 Months Ended

Jun. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Commodity derivative contracts not classified as hedging instruments

The following table summarizes our commodity derivative contracts as of June 30, 2021, none of which are classified as hedging instruments in accordance with the FASC Derivatives and Hedging topic:


Months	Index Price	Volume (Barrels per day)	Contract Prices ($/Bbl)
			Range(1)				Weighted Average Price
							Swap		Floor		Ceiling
Oil Contracts:
2021 Fixed-Price Swaps
July – Dec	NYMEX	29,000	$	38.68	–	56.00	$	43.86	$	—	$	—
2021 Collars
July – Dec	NYMEX	4,000	$	45.00	–	59.30	$	—	$	46.25	$	53.04
2022 Fixed-Price Swaps
Jan – June	NYMEX	15,500	$	42.65	–	58.15	$	49.01	$	—	$	—
July – Dec	NYMEX	9,000		50.13	–	60.35	56.35		—		—
2022 Collars
Jan – June	NYMEX	11,000	$	47.50	–	70.75	$	—	$	49.77	$	64.31
July – Dec	NYMEX	10,000		47.50	–	70.75	—		49.75		64.18

(1)Ranges presented for fixed-price swaps represent the lowest and highest fixed prices of all open contracts for the period presented. For collars, ranges represent the lowest floor price and highest ceiling price for all open contracts for the period presented.

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

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Fair value hierarchy of financial assets and liabilities

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

The following table sets forth, by level within the fair value hierarchy, our financial assets and liabilities that were accounted for at fair value on a recurring basis as of the periods indicated:


	Fair Value Measurements Using:
In thousands	Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
June 30, 2021





Liabilities
Oil derivative contracts – current	$	—	$	(223,212)	$	—	$	(223,212)
Oil derivative contracts – long-term	—		(22,164)		—		(22,164)
Total Liabilities	$	—	$	(245,376)	$	—	$	(245,376)

December 31, 2020
Assets
Oil derivative contracts – current	$	—	$	187	$	—	$	187
Total Assets	$	—	$	187	$	—	$	187

Liabilities
Oil derivative contracts – current	$	—	$	(53,865)	$	—	$	(53,865)
Oil derivative contracts – long-term	—		(5,087)		—		(5,087)
Total Liabilities	$	—	$	(58,952)	$	—	$	(58,952)

Additional Balance Sheet Details (Tables)

6 Months Ended

Jun. 30, 2021

Table Text Block [Abstract]

Trade and Other Receivables, Net


	Successor
In thousands	June 30, 2021		December 31, 2020
Trade accounts receivable, net	$	11,795	$	11,691
Federal income tax receivable, net	597		597
Commodity derivative settlement receivables	—		5,716
Other receivables(1)	12,348		1,678
Total	$	24,740	$	19,682

(1)Primarily consists of a currently estimated $9.9 million benefit under the Company’s power agreements for reduced power usage during the winter storms in February 2021.

Accounts Payable and Accrued Liabilities


	Successor
In thousands	June 30, 2021		December 31, 2020
Accounts payable	$	27,166	$	18,629
Accrued derivative settlements	26,121		3,908
Accrued lease operating expenses	24,802		21,294
Accrued compensation	21,428		7,512
Accrued exploration and development costs	12,361		1,861
Taxes payable	10,180		17,221
Accrued general and administrative expenses	4,432		21,825
Other	37,415		20,421
Total	$	163,905	$	112,671

Basis of Presentation (Cash, Cash Equivalents, and Restricted Cash) (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Cash and cash equivalents	$ 13,565	$ 518
Restricted cash, current	0	1,000
Restricted cash included in other assets	46,200	40,730
Total cash, cash equivalents, and restricted cash shown in the Unaudited Condensed Consolidated Statements of Cash Flows	$ 59,765	$ 42,248	$ 247,642	$ 33,045

Basis of Presentation (Reconciliation of Weighted Average Shares Table) (Details) - shares
shares in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2021

Jun. 30, 2020

Jun. 30, 2021

Jun. 30, 2020

Weighted average common shares outstanding - diluted

^[1]

50,999

495,245

50,661

494,752

Weighted average common shares outstanding - basic

50,999

495,245

50,661

494,752

Restricted stock units

0

Warrants

0

Restricted stock and performance-based equity awards

0

Convertible senior notes

0

^[2]

0

^[2]

Net Income Scenario

Weighted average common shares outstanding - diluted

54,300

587,100

52,700

586,600

[1]

If the Company had recognized net income, the weighted average diluted shares outstanding would have been 54.3 million and 587.1 million for the three months ended June 30, 2021 and 2020, respectively, and 52.7 million and 586.6 million for the six months ended June 30, 2021 and 2020, respectively.

[2]

In connection with the Company’s emergence from bankruptcy on September 18, 2020, all outstanding convertible senior notes were fully extinguished.(2)If the Company had recognized net income, the weighted average diluted shares outstanding would have been 54.3 million and 587.1 million for the three months ended June 30, 2021 and 2020, respectively, and 52.7 million and 586.6 million for the six months ended June 30, 2021 and 2020, respectively.

Additional shares included in the calculation of diluted EPS as a result of the potentially dilutive effect of contingently issuable shares. Contingently issuable shares are those shares that are issuable for little or no cash contingent on certain conditions being met.

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Basis of Presentation (Antidilutive Securities) (Details)	Jun. 30, 2021 shares	Jun. 30, 2020 shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Warrants	5,500,000
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of antidilutive equity-based instruments outstanding	1,255,000	0
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Warrants	5,503,000	0
Stock appreciation rights
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock appreciation rights	0	1,493,000
Nonvested time-based restricted stock and performance-based equity awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of antidilutive equity-based instruments outstanding	0	5,572,000
Convertible senior notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Convertible senior notes	0	83,495,000

Basis of Presentation (Details Textuals)	3 Months Ended		6 Months Ended
Basis of Presentation (Details Textuals)	Jun. 30, 2021 warrants $ / shares shares	Jun. 30, 2020 shares	Jun. 30, 2021 warrants $ / shares shares	Jun. 30, 2020 shares
Class of Warrant or Right [Line Items]
Weighted average common shares outstanding - basic	50,999,000	495,245,000	50,661,000	494,752,000
Number of warrants outstanding	5,500,000		5,500,000
Shares issuable upon exercise of series A and B warrants	5,500,000		5,500,000
Performance share units
Class of Warrant or Right [Line Items]
Weighted average common shares outstanding - basic	987,987		563,416
Series A Warrants
Class of Warrant or Right [Line Items]
Number of warrants outstanding	2,600,000		2,600,000
Exercise price of warrants \| $ / shares	$ 32.59		$ 32.59
Number of warrants exercised \| warrants	2,315		2,315
Series B Warrants
Class of Warrant or Right [Line Items]
Number of warrants outstanding	2,900,000		2,900,000
Exercise price of warrants \| $ / shares	$ 35.41		$ 35.41
Number of warrants exercised \| warrants	20,927		20,927

Basis of Presentation (Details Textuals 2)	3 Months Ended				6 Months Ended
Basis of Presentation (Details Textuals 2)	Jun. 30, 2021 USD ($)	Mar. 31, 2021 USD ($) $ / Barrel	Jun. 30, 2020 USD ($)	Mar. 31, 2020 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)
Oil and Gas, Average Sale Price and Production Cost Per Unit [Line Items]
Impairment of unevaluated costs				$ 244,900,000
Write-down of oil and natural gas properties	$ 0	$ 14,400,000	$ 662,440,000	$ 72,500,000	$ 14,377,000	$ 734,981,000
Oil
Oil and Gas, Average Sale Price and Production Cost Per Unit [Line Items]
Average price \| $ / Barrel		36.40

Acquisition and Divestiture (Purchase Price Allocation) (Details) - Big Sand Draw and Beaver Creek Fields $ in Thousands	Mar. 03, 2021 USD ($)
Business Acquisition [Line Items]
Cash consideration	$ 10,657
Proved oil and natural gas properties	59,852
Other property and equipment	1,685
Asset retirement obligations	(39,794)
Contingent consideration	(5,320)
Other liabilities	(5,766)
Fair value of net assets acquired	$ 10,657

Acquisition and Divestiture (Details Textuals)			4 Months Ended	6 Months Ended
Acquisition and Divestiture (Details Textuals)	Jun. 30, 2021 USD ($)	Mar. 03, 2021 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2021 USD ($) $ / Barrel	Jun. 30, 2020 USD ($)
Business Acquisition, Contingent Consideration [Line Items]
Approximate working interest percentage acquired		100.00%
Approximate net revenue interest percentage acquired		83.00%
Acquisitions of oil and natural gas properties		$ 10,700,000		$ 10,811,000	$ 0
Contingent consideration	$ 7,000,000.0		$ 7,000,000.0	7,000,000.0
Contingent consideration at acquisition date		$ 5,300,000
Increase in contingent consideration			1,700,000
Cash proceeds on sale of Hartzog Draw deep mineral rights	18,000,000			18,456,000	$ 40,971,000
Gain (loss) on disposition of oil and gas properties	0
2021 \| Devon Energy Corporation's Wind River Basin properties
Business Acquisition, Contingent Consideration [Line Items]
Contingent cash payment	4,000,000		4,000,000	$ 4,000,000
2021 \| Minimum \| Devon Energy Corporation's Wind River Basin properties
Business Acquisition, Contingent Consideration [Line Items]
Average price \| $ / Barrel				50
2022 \| Devon Energy Corporation's Wind River Basin properties
Business Acquisition, Contingent Consideration [Line Items]
Contingent cash payment	$ 4,000,000		$ 4,000,000	$ 4,000,000
2022 \| Minimum \| Devon Energy Corporation's Wind River Basin properties
Business Acquisition, Contingent Consideration [Line Items]
Average price \| $ / Barrel				50

Revenue Recognition (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Disaggregation of Revenue [Line Items]
Revenues	$ 300,661	$ 117,381	$ 551,460	$ 358,754
Oil sales
Disaggregation of Revenue [Line Items]
Revenues	280,577	108,538	513,621	337,115
Natural gas sales
Disaggregation of Revenue [Line Items]
Revenues	2,131	849	4,532	1,896
CO2 sales and transportation fees
Disaggregation of Revenue [Line Items]
Revenues	10,134	6,504	19,362	14,532
Oil marketing revenues
Disaggregation of Revenue [Line Items]
Revenues	$ 7,819	$ 1,490	$ 13,945	$ 5,211

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

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Long-Term Debt (Components of Long-Term Debt) (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Debt and Lease Obligation [Abstract]
Senior Secured Bank Credit Agreement	$ 35,000	$ 70,000
Pipeline financings	34,498	68,008
Total debt principal balance	69,498	138,008
Less: current maturities of long-term debt	(34,498)	(68,008)
Long-term debt	$ 35,000	$ 70,000