NOTE 5 – REVENUE FROM CONTRACTS WITH CUSTOMERS

 

Disaggregation of Revenue from Contracts with Customers. The following table disaggregates revenue by significant product type for the years ended December 31, 2025 and 2024 (in thousands):

 

 

 

2025

 

 

2024

 

Oil sales

 

$40,230

 

 

$36,193

 

Natural gas sales

 

 

2,663

 

 

 

1,216

 

Natural gas liquids sales

 

 

2,858

 

 

 

2,144

 

Total revenue from customers

 

$45,751

 

 

$39,553

 

 

There were no significant contract liabilities or transaction price allocations to any remaining performance obligations as of December 31, 2025 or 2024, respectively.

Historical Timeline

Fiscal YearFiled
2025Mar 31, 2026Showing above
2024Mar 31, 2025
2023Mar 18, 2024
2022Mar 29, 2023
2021Mar 11, 2022
2020Mar 23, 2021
2019Mar 30, 2020
2018Apr 1, 2019

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.