Subsequent Events

12 Months Ended

Dec. 31, 2022

Subsequent Events [Abstract]

Subsequent Events

Note 17—Subsequent events

Asset Acquisition

On December 9, 2022, the Company entered into a definitive agreement to acquire approximately 4,000 net leasehold acres and 3,300 net royalty acres for an unadjusted purchase price of $98 million. The acquired assets consist largely of undeveloped acreage and is contiguous to one of the Company’s existing core acreage blocks in Lea County, New Mexico. The transaction closed on February 16, 2023.

Asset Divestiture

On January 17, 2023, the Company entered into a definitive agreement to divest a portion of its saltwater disposal wells and associated produced water infrastructure in Reeves County, Texas for total consideration of $125 million. The full consideration will be received at closing with $60 million subject to repayment if certain thresholds tied to the Company’s future drilling

activity in the service area over the next several years are not met. The Company expects to retain the full consideration based on its current development plan. The transaction is expected to close in March of 2023, subject to customary closing terms and conditions.

Dividends Declared

On February 22, 2023, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.05 per share of Class A Common Stock and a quarterly cash distribution of $0.05 per common unit of OpCo. The dividend is payable on March 15, 2023 to shareholders of record as of March 7, 2023.