v3.26.1
Asset Retirement Obligations
12 Months Ended
Dec. 31, 2025
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligations

16. Asset Retirement Obligations

Asset retirement obligations are estimated by management based on Epsilon’s net ownership interest in all wells and the gathering system, estimated costs to reclaim and abandon such assets and the estimated timing of the costs to be incurred in future periods, and the forecast risk free cost of capital. Epsilon has estimated the net present value of its total asset retirement obligations to be $7.4 million as of December 31, 2025 ($3.7 million at December 31, 2024). We acquired $3.8 million of additional asset retirement obligation with the Peak acquisition. Each year we review, and to the extent necessary, revise our asset retirement obligations estimates in accordance with recent activity and current service costs.

The following table presents the activity in Epsilon’s asset retirement obligations for the periods indicated:

Year Ended

Year ended

December 31, 

December 31, 

2025

  ​ ​ ​

2024

Balance beginning of period

$

3,652,296

$

3,502,952

Liabilities acquired

3,841,144

48,207

Liabilities disposed of

(287,716)

Wells plugged and abandoned

(1,600)

(88,992)

Change in estimates

6,695

Accretion

233,836

183,434

Balance end of period

$

7,437,960

$

3,652,296