The condensed consolidated balance sheets consist of the following amounts relating to operating and finance leases (in thousands):


	As of March 31,		As of December 31,
	2026		2025
Operating right-of-use assets
Real property	$	16,871	$	17,556
	$	16,871	$	17,556
Operating lease liabilities
Current	$	8,354	$	8,004
Non-current		8,733		9,783
	$	17,087	$	17,787


	As of March 31,		As of December 31,
	2026		2025
Finance right-of-use assets
Vehicles	$	25,098	$	25,861
	$	25,098	$	25,861
Finance lease liabilities
Current	$	13,010	$	12,895
Non-current		9,851		10,862
	$	22,861	$	23,757

Additions to operating right-of-use assets during the three months ended March 31, 2026 and 2025, were approximately $1.4 million and $0.3 million, respectively. Additions to finance right-of-use assets during the three months ended March 31, 2026 and 2025, were approximately $2.7 million and $3.8 million, respectively. Disposals of the right-of-use assets during the three months ended March 31, 2026 and 2025, were approximately $0.7 million and $2.3 million, respectively.

The weighted average lessee’s incremental borrowing rate applied to the operating and finance lease liabilities on March 31, 2026 was 6.5% and 6.6%, respectively. The weighted average lessee’s incremental borrowing rate applied to the operating and finance lease liabilities on December 31, 2025 was 6.6% and 6.9%, respectively. The weighted average remaining lease term for operating and finance lease on March 31, 2026 was 2.98 years and 2.37 years, respectively. The weighted average remaining lease term for operating and finance lease on December 31, 2025 was 2.80 years and 2.68 years, respectively.

The condensed consolidated statements of operations consist of the following amounts relating to leases (in thousands):


	Three Months Ended March 31,
	2026		2025
Amortization of real property operating right-of-use assets
(included in general and administrative expenses)	$	2,542	$	2,052
Interest expense (recovery) of vehicles finance right-of-use assets
(included in interest expense)	$	383	$	1,037
Depreciation of vehicles finance right-of-use assets
(included in depreciation and amortization)	$	3,481	$	2,154

Variable lease expense	$	—	$	—
Short-term lease expense	$	420	$	225

The below table shows the total cash outflows for leases for the periods presented (in thousands):


	Three Months Ended March 31,
	2026		2025
Operating cash flows from operating leases	$	2,804	$	1,848
Financing cash flows from finance leases		4,055		2,829
Total cash outflows for leases	$	6,859	$	4,677

The table below reconciles the undiscounted future minimum operating and finance lease payments to the operating and finance lease liabilities recorded on the balance sheet as of March 31, 2026 (in thousands):


	Operating Lease			Finance Lease
Remainder of 2026	$	7,082		$	11,065
2027		5,768			9,286
2028		2,866			3,255
2029		1,620			434
2030		886			157
Thereafter		631			33
Total future minimum lease payments		18,853			24,230
Less: Amount of lease payments representing interest		(1,766	)		(1,369	)
Present values of future minimum lease payments	$	17,087		$	22,861

Rental agreements are for the rental of our compression and ESP systems to customers. Rental revenue for the three months ended March 31, 2026 and 2025, were approximately $121.9 million and $97.3 million, respectively. Revenue related to these rental agreements is reflected as rental revenue in the condensed consolidated statements of operations.

Scheduled future minimum lease payments to be received by the Company as of March 31, 2026 for each of the next five years is as follows (in thousands):


	Amount
Remainder of 2026	$	154,205
2027		85,497
2028		25,127
2029		2,152
2030		—
Thereafter		—
Total	$	266,981