See Note 12 for discussion of the Company’s accounting for derivative contracts.

Sales of natural gas, oil and NGL are recognized when production is sold to a purchaser and control has transferred. Oil is priced on the delivery date based upon prevailing prices published by purchasers with certain adjustments related to oil quality and physical location. The price the Company receives for natural gas and NGL is tied to a market index, with certain adjustments based on, among other factors, whether a well delivers to a gathering or transmission line, quality and heat content of natural gas, and prevailing supply and demand conditions, so that the price of natural gas fluctuates to remain competitive with other available natural gas supplies. These market indices are determined on a monthly basis. Each unit of commodity is considered a separate performance obligation; however, as consideration is variable, the Company utilizes the variable consideration allocation exception permitted under the standard to allocate the variable consideration to the specific units of commodity to which they relate.

The following tables present the disaggregation of the Company’s natural gas, oil and NGL revenues for the year ended December 31, 2023, the three months ended December 31, 2022, and the year ended September 30, 2022.


	Year Ended December 31, 2023
	Royalty Interest		Working Interest		Total
Natural gas revenue	$	17,420,360	$	2,025,900	$	19,446,260
Oil revenue		12,306,987		1,733,213		14,040,200
NGL revenue		1,866,004		1,183,821		3,049,825
Natural gas, oil and NGL sales	$	31,593,351	$	4,942,934	$	36,536,285


	Three Months Ended December 31, 2022
	Royalty Interest		Working Interest		Total
Natural gas revenue	$	7,209,757	$	2,243,736	$	9,453,493
Oil revenue		2,760,844		1,563,619		4,324,463
NGL revenue		601,103		509,615		1,110,718
Natural gas, oil and NGL sales	$	10,571,704	$	4,316,970	$	14,888,674


	Year Ended September 30, 2022
	Royalty Interest		Working Interest		Total
Natural gas revenue	$	30,837,464	$	14,930,201	$	45,767,665
Oil revenue		10,851,353		7,279,566		18,130,919
NGL revenue		2,795,655		3,166,392		5,962,047
Natural gas, oil and NGL sales	$	44,484,472	$	25,376,159	$	69,860,631

The Company satisfies the performance obligations under its natural gas, oil and NGL sales contracts upon delivery of its production and related transfer of title to purchasers. Upon delivery of production, the Company has a right to receive consideration from its purchasers in amounts that correspond with the value of the production transferred.

As the Company has determined that each unit of product generally represents a separate performance obligation, future volumes are wholly unsatisfied, and disclosure of the transaction price allocated to remaining performance obligations is not required. The Company has utilized the practical expedient in ASC 606, which permits the Company to allocate variable consideration to one or more but not all performance obligations in the contract if the terms of the variable payment relate specifically to the Company’s efforts to satisfy that performance obligation and allocating the variable amount to the performance obligation is consistent with the allocation objective under ASC 606. Additionally, the Company will not disclose variable consideration subject to this practical expedient.

The Company records revenue in the month production is delivered to the purchaser. As a non-operator, the Company has limited visibility into the timing of when new wells start producing, and production statements may not be received for 30 to 90 days or more after the date production is delivered. As a result, the Company is required to estimate the amount of production delivered to the purchaser and the price that will be received for the sale of the product. The expected sales volumes and prices for these properties are estimated and recorded within the natural gas, oil and NGL sales receivables line item on the Company’s balance sheets. The difference between the Company’s estimates and the actual amounts received for natural gas, oil and NGL sales is recorded in the quarter that payment is received from the third party. For the year ended December 31, 2023, three months ended December 31, 2022, and year ended September 30, 2022, revenue recognized in these reporting periods related to performance obligations satisfied in prior reporting periods for existing wells was considered a change in estimate.