Risk Factors Update Summary
- The NMOCD and RRC imposed stricter requirements for oil and gas wastewater injection activities in response to seismic activity in the Permian Basin. For example, NMOCD implemented a Seismicity Response Protocol in November 2021, affecting operators with additional analysis, reporting, and injection rate reductions.
- The RRC suspended all well activity in deep formations in the Gardendale SRA, terminating 33 disposal well permits. The RRC expanded restrictions to other areas, suspending all deep disposal well permits in the NCR SRA, totaling 23.
- The RRC expanded the Gardendale and NCR SRAs in December 2022 due to additional earthquakes. Effective January 12, 2024, the RRC suspended all deep disposal well permits in the NCR SRA and expanded restrictions to other areas.
- WTI prices ranged from a high of $93 to a low of $61 per Bbl in 2023, compared to a range of $123 to $71 per Bbl in 2022.
- Average daily prices for NYMEX Henry Hub gas ranged from a high of $3.85 to a low of $1.74 per MMBtu in 2023, compared to a range of $9 to $3.46 per MMBtu in 2022.
- The company recognized an impairment loss on proved properties in Texas outside the Champions Field due to notably lower commodity pricing at year-end 2023.
- The company drilled and completed 517 gross operated horizontal wells on its West Texas acreage, a significant increase from the 170 wells in 2022.
Full Text Changes in Most Recent 10-K
Intended use: review the highlighted statements. These are additions to the risk factors disclosure in the most recent 10-K filing compared to the previous 10-K filing. Deleted and moved text is less important and is shown for context.
To view the full company filings, click on the following link to be taken to the SEC EDGAR database landing page for the company: https://www.sec.gov/edgar/browse/?CIK=1001614&owner=exclude
This content requires a 'Free' membership to view. Please create one here.
This content requires a 'Free' membership to view. Please create one here.