Except as otherwise noted, all tabular amounts are in thousands, except per unit values.

There have been no changes from the Critical Accounting Policies described in our Annual Report on Form 10-K for the year ended December 31, 2021.

We are an independent energy company primarily engaged in the acquisition, development and production of oil and gas in the United States. Historically, we have grown through the acquisition and subsequent development

See Note 4 " Long-Term Debt - Restructuring" and Note 10 " Disposition of Assets and Restructuring" to the Consolidated Financial Statements.

Factors Affecting Our Financial Results

Our financial results depend upon many factors which significantly affect our results of operations including the following:

• the availability of and our ability to raise additional capital resources and

Effects of Inflation and Pricing

The realized prices that we receive for our production differ from NYMEX futures and spot market prices, principally due to:

The following table sets forth our average differentials for the six month periods ended June 30, 2022 and 2021:

(1) Excludes the impact of derivative activities.

The following table presents historical net production volumes for the three and six months ended June 30, 2022, and 2021:

(1) Oil and gas were combined by converting gas to Boe on the basis of 6 Mcf of

(4) Production costs include direct lease operating costs but exclude ad valorem

Borrowings and Interest. At June 30, 2022, we had $2.4 million outstanding under our real estate lien note (including the current portion). The real estate lien note was paid in full on August 3, 2022.

Selected Operating Data. The following table sets forth operating data from continuing operations for the periods presented.

(1) 2021 revenue and average sales prices are before the impact of hedging

(2) 2021 amounts include activity from our Rocky Mountain properties that were

Comparison of Three Months Ended June 30, 2022 to Three Months Ended June 30, 2021

As of June 30, 2022 all of our stock based compensation related to stock options and performance based shares had been fully amortized. Expense recognized during the second quarter of 2022 relates to restricted stock awards in May 2022.

Comparison of Six Months Ended June 30, 2022 to Six Months Ended June 30, 2021

As of June 30, 2022 all stock based compensation related to stock options and performance based shares had been fully amortized. Expense incurred in the second quarter of 2022 relate to restricted stock awards in May 2022.

• the development and exploration of existing properties, including drilling and

Capital Expenditures. Capital expenditures for the six months ended June 30, 2022 and 2021 were $0.7 million and $0.4 million respectively.

The table below sets forth the components of these capital expenditures:

During the six months ended June 30, 2022 and 2021, our capital expenditures were primarily on our existing properties. Our current capital constraints impair our ability to actively develop our existing properties.

Sources of Capital. The net funds provided by and/or used in each of the operating, investing and financing activities are summarized in the following table and discussed in further detail below:

Contractual Obligations. We are committed to making cash payments in the future on the following types of agreements:

Below is a schedule of the future payments that we are obligated to make based on agreements in place as of June 30, 2022:

2024-2025 June 30, 2026-2027 Thereafter Long-term debt (1)

(1) These amounts represent the balance outstanding under our real estate lien

note. The real estate loan was paid in full on August 3, 2022.

(2) Interest expense based on amortization schedule of our real estate lien note

Contingencies. From time to time, we are involved in litigation relating to claims arising out of our operations in the normal course of business. At June 30, 2022, we were not engaged in any legal proceedings that are expected, individually or in the aggregate, to have a material adverse effect on us.

Long-term debt consisted of the following (in thousands):

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