The Company has operating leases on office spaces, various vehicles and compressors with remaining lease durations in excess of one year. These leases have various expiration dates through 2031. The vehicles are used for field operations and leased from third parties. The Company recognizes right-of-use asset and lease liability on the balance sheet for all leases with lease terms of greater than one year. Short-term leases that have an initial term of one year or less are not capitalized.

As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Company’s incremental borrowing rate reflects the estimated rate of interest that it would pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term and in a similar economic environment.

Future amounts due under operating lease liabilities as of June 30, 2026, were as follows (in thousands):


Remaining 2026	$	5,181
2027	9,587
2028	5,883
2029	2,512
2030	157
2031	122
Thereafter	255
Total lease payments	$	23,697
Less: imputed interest	(2,310)
Total	$	21,387

The following table summarizes our total lease costs before amounts are recovered from our joint interest partners, where applicable, for the three and six months ended June 30, 2026 and 2025 (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Operating lease cost	$	2,644	$	1,875	$	4,855	$	3,963

The weighted-average remaining lease term as of June 30, 2026 was 2.65 years. The weighted-average discount rate used to determine the operating lease liability as of June 30, 2026 was 7.9%.