Quarterly report pursuant to Section 13 or 15(d)

Oil and Gas Royalty Interests

v3.24.3
Oil and Gas Royalty Interests
 9 Months Ended
Sep. 30, 2024
Real Estate [Abstract]  
Oil and Gas Royalty Interests Oil and Gas Royalty Interests
As of September 30, 2024 and December 31, 2023, we owned the following oil and gas royalty interests (in thousands):
September 30,
2024		 December 31,
2023
Oil and gas royalty interests:
1/16th nonparticipating perpetual royalty interests (1)
$ —  $ — 
1/128th nonparticipating perpetual royalty interests (1)
—  — 
Royalty interests acquired, at cost 171,828  51,494 
Total royalty interests 171,828  51,494 
Less: accumulated depletion (7,800) (4,885)
Royalty interests, net $ 164,028  $ 46,609 
(1)Royalty interests assigned through the Declaration of Trust.
During the nine months ended September 30, 2024, we acquired oil and gas royalty interests in 4,106 NRA in Culberson County, Texas for a purchase price of approximately $120.3 million, net of post-close adjustments, in an all-cash transaction. The acquisition was completed in conjunction with another entity that assigned a share of its interest in a purchase and sales agreement with an unaffiliated seller to the Company. Each party paid a pro-rata share of the purchase price and closing costs to the seller.

During the nine months ended September 30, 2023, we acquired oil and gas royalty interests in 119 NRA for an aggregate purchase price of approximately $3.6 million. There were no sales of oil and gas royalty interests during the nine months ended September 30, 2024 and 2023, respectively.

Depletion expense was $1.9 million and $0.5 million for the three months ended September 30, 2024 and 2023, respectively. Depletion expense was $2.9 million and $1.4 million for the nine months ended September 30, 2024 and 2023, respectively.