v3.26.1
Property, Plant and Equipment
 3 Months Ended
Mar. 31, 2026
Property, Plant and Equipment [Abstract]  
PROPERTY, PLANT AND EQUIPMENT

NOTE 5. PROPERTY, PLANT AND EQUIPMENT

 

Oil and Natural Gas Properties

 

The Company has recorded oil and natural gas properties of $698.8 million and $529.1 million at March 31, 2026 and December 31, 2025, partially offset by accumulated depletion of $4.4 million and $204.6 million, respectively. Oil and natural gas properties recorded on the condensed consolidated balance sheets consist entirely of proved properties for both periods presented. For the Successor period from March 4, 2026 through March 31, 2026 and the Predecessor period from January 1, 2026 through March 3, 2026, depletion expense related to the Company’s oil and gas properties was $4.4 million and $4.3 million, respectively. For the three months ended March 31, 2025 (Predecessor), depletion expense related to the Company’s oil and gas properties was $7.3 million.

 

Other Property and Equipment

 

Below is a summary of other property and equipment as of March 31, 2026 and December 31, 2025:

 

        Successor     Predecessor  
        As of     As of  
(in thousands)   Useful Life
(in years)		   March 31,
2026		     December 31,
2025		  
Furniture and fixtures   7   $ 25     $ 92  
Software and licenses   3     628       8,612  
Computers and other hardware   3     1       11  
Vehicles   5     1,569       1,905  
Machinery and equipment   5     112       225  
Leasehold improvements   6     31       443  
Compressors   5     2,917       4,259  
Total other property and equipment       $ 5,283     $ 15,547  
Accumulated depreciation and amortization         (263 )     (10,090 )
Total other property and equipment, net       $ 5,020     $ 5,457  

  

For the Successor period from March 4, 2026 through March 31, 2026 and the Predecessor period from January 1, 2026 through March 3, 2026, depreciation expense related to property and equipment was $0.3 million and $0.7 million, respectively.

 

For the three months ended March 31, 2025 (Predecessor), depreciation expense related to property and equipment was $0.8 million.

2026 Divestitures

 

During the Successor period from March 4, 2026 through March 31, 2026, the Company sold leasehold and mineral interests in various oil and gas properties located in Oklahoma in exchange for $1.2 million in proceeds resulting in no gain from the sale. Additionally, the Company sold various other property and equipment that resulted in a less than $0.1 million gain.

 

During the Predecessor period from January 1, 2026 through March 3, 2026, the Company sold leasehold and mineral interests in various oil and gas properties located in Oklahoma in exchange for $0.8 million in proceeds, resulting in a gain for an equal amount as no book value remained for the properties.

 

2025 Divestitures

 

During the three months ended March 31, 2025 (Predecessor), the Company sold leasehold and mineral interests in various oil and gas properties located in Oklahoma in exchange for $4.8 million in proceeds, resulting in a gain for an equal amount as no book value remained for the properties. Additionally, the Company sold various other property and equipment that resulted in a $0.1 million gain.