Our asset retirement obligation primarily represents the estimated present value of the amount we will incur to plug, abandon and remediate our proved producing properties at the end of their productive lives, in accordance with applicable state and federal laws. We determine our asset retirement obligation by calculating the present value of estimated cash flows related to the liability. The following is a summary of changes in TXO Partners’ asset retirement obligation activity for the three months ended March 31, 2026:


	(in thousands)
Asset retirement obligation, January 1		221,085
Liability settled upon plugging and abandoning wells		(677	)
Accretion of discount expense		4,568
Asset retirement obligation, March 31		224,976
Less current portion		(3,500	)
Asset retirement obligation, long term	$	221,476