v3.26.1
Exit Costs
6 Months Ended
Jun. 30, 2026
Restructuring and Related Activities [Abstract]  
Exit Costs

(11) EXIT COSTS

In third quarter 2020, the Company sold its North Louisiana assets and retained certain gathering, transportation and processing obligations which extend into 2030. These are contracts where we will not realize any future benefit. The estimated obligations are included in current and long-term divestiture contract obligation in our consolidated balance sheets. In first six months 2026, we recorded accretion expense of $13.7 million compared to $17.4 million in the same period of the prior year. In second quarter 2026, we recorded a net adjustment of $2.9 million to increase this obligation for a change in expected throughput volumes.

The following details the accrued exit cost liability activity for the six months ended June 30, 2026 (in thousands):

 

Exit Costs

 

Balance as of December 31, 2025

$

278,428

 

Accretion of discount

 

13,669

 

Changes in estimate

 

2,850

 

Payments

 

(41,837

)

Balance as of June 30, 2026

$

253,110