During 2026, in connection with the Merger and the South Texas Divestiture, we announced workforce reductions to better align staffing levels and the organizational structure with our strategy. During the three and six months ended June 30, 2026, we incurred restructuring costs of $25 million and $122 million, respectively, which are included in G&A expense in the accompanying statements of operations. These restructuring costs represent a component of total one-time Merger integration costs and consist primarily of employee severance and retention and accelerated vesting of stock-based compensation awards. We expect to incur an additional $7 million of restructuring costs and anticipate that substantially all remaining costs will be incurred and paid during 2026.

The following table summarizes restructuring cost activity during the six months ended June 30, 2026, and our restructuring cost liabilities included in the accounts payable and accrued expenses line item in the accompanying balance sheets as of the periods presented:

(1) Restructuring costs incurred exclude $33 million of other G&A integration costs including systems integration, advisory, and legal expenses, and salaries for transition employees.