v3.26.1
Property and Equipment
6 Months Ended
Jun. 30, 2026
Property, Plant, and Equipment [Abstract]  
Property and Equipment Property and Equipment
Property and equipment is composed of the following.
June 30,
2026
December 31,
2025
Land$134,896 $133,516 
Buildings177,502 169,307 
Land and leasehold improvements161,518 155,817 
Equipment211,885 213,395 
Oil and gas properties159,302 157,960 
Construction in progress2,134 2,195 
847,237 832,190 
Less accumulated depreciation, depletion, and amortization(480,782)(465,583)
Property and equipment, net$366,455 $366,607 
Depletion expense related to oil and gas properties was $4,932 and $5,966 during the first six months of 2026 and 2025, respectively.
No impairment to restaurant long-lived assets was recorded in the second quarter and first six months of 2026. The Company recorded an impairment to restaurant long-lived assets related to underperforming stores of $1,251 in the second quarter and first six months of 2025.

We did not record any impairments to our oil and gas assets during the second quarter and first six months of 2026 and 2025. However, if commodity prices fall below current levels, we may be required to record impairments in future periods and such impairments could be material. Further, if commodity prices decrease, our production, proved reserves, and cash flows will be adversely impacted.

Abraxas Petroleum recorded gains of $4,803 and $794 during the second quarter of 2026 and 2025, respectively, and recorded gains of $4,803 and $10,117 during the first six months of 2026 and 2025, respectively, as a result of selling undeveloped reserves. Abraxas may receive future royalties for each of these transactions as the reserves are developed by the respective unaffiliated parties.
Property and equipment held for sale of $560 and $1,134 are recorded in other assets as of June 30, 2026 and December 31, 2025, respectively. The assets classified as held for sale include properties which were previously company-operated restaurants.

During the first six months of 2026 and 2025, the Company recognized net gains of $77 and $807, respectively, in connection with property sales, lease terminations and asset disposals which are included in selling, general and administrative expenses in the consolidated statements of earnings.