v3.26.1
Property, Plant, and Equipment
 6 Months Ended
Jun. 30, 2026
Property, Plant, and Equipment [Abstract]  
Property, Plant, and Equipment Property, Plant, and Equipment
Oil and Natural Gas Properties
We utilize the full cost method of accounting for costs related to the exploration, development, and acquisition of oil and natural gas properties. Our capitalized costs of oil and natural gas properties and the related accumulated depreciation, depletion, and amortization as of June 30, 2026 and December 31, 2025 are as follows:
June 30, 2026December 31, 2025
(in thousands)
Oil and natural gas properties:
Proved properties$1,857,133$1,175,523
Unproved properties114,15688,689
Gross oil and natural gas properties1,971,2891,264,212
Less: accumulated depreciation, depletion, and amortization(321,977)(249,296)
Oil and natural gas properties, net$1,649,312$1,014,916
The increase in proved property costs during the six months ended June 30, 2026 reflects the acquisition of oil and natural gas properties in connection with the Antero Acquisition discussed in Note 4 – Acquisitions to this Quarterly Report and development activities during the period.

Under the full cost method of accounting, the Company is required to perform a ceiling test each quarter which determines a limit, or ceiling, on the book value of proved oil and natural gas properties. When the book value is in excess of the ceiling value, an impairment is recognized. No impairment expense was recorded for the three and six months ended June 30, 2026 based on the results of the quarterly ceiling test.

Capitalized costs of oil and natural gas properties are subject to a ceiling test that limits such pooled costs, net of applicable deferred taxes, to the aggregate of the present value of future net revenues attributable to proved oil, natural gas, and NGL reserves discounted at 10%. Any costs in excess of the ceiling are written off as a non-cash expense. The expense will not be reversed in future periods, despite commodity price increases which subsequently increase the ceiling. Companies using the full cost method are generally required to utilize the unweighted arithmetic average of the first-day-of-the-month commodity prices for the preceding 12-month period, adjusted for applicable basis differentials, in determining the ceiling test value. The Company does not designate derivative contracts as cash flow hedges.
Capitalized costs of proved properties are computed on a units-of-production basis based on estimated proved reserves, whereby the depletion rate is determined by dividing the total unamortized cost base plus future development costs by estimated proved reserves on a net equivalent basis at the beginning of the period. The depletion rate is multiplied by total production for the period to compute depletion expense. The following table shows our depletion expense for the three and six months ended June 30, 2026 and 2025 related to oil and gas properties:
For the Three Months Ended June 30,
For the Six Months Ended June 30,
(in thousands, except per Mcfe amounts)20262025
2026
2025
Depletion of Proved Oil and Natural Gas Properties
38,75622,92072,68143,497
Average Depletion Rate per Mcfe
$1.23$1.27$1.24$1.36
Costs associated with unproved properties are excluded from the amortization base until the properties are evaluated or impairment is indicated. The costs associated with unproved leasehold acreage, related seismic data, wells currently drilling and related capitalized interest are initially excluded from the amortization base. Leasehold costs are either transferred to the amortization base with the costs of drilling a well on the lease or are assessed at least annually for possible impairment or reduction in value.
Our decision to exclude costs from amortization and the timing of the transfer of those costs into the amortization base involves judgment and may be subject to changes over time based on numerous factors, including drilling plans, availability of capital, project economics, and drilling results from adjacent acreage.    
Costs of unproved properties excluded from amortization consist of leasehold acreage and relate to properties which are not individually significant for which the evaluation process has not been completed. The timing and amount of property acquisition and seismic costs included in the amortization computation will depend on the location and timing of drilling wells, results of drilling, and other assessments. Therefore, we are unable to estimate when these costs will be included in the amortization computation.
Other Property and Equipment
Our other property and equipment consists of the following assets that are recorded at cost and depreciated on a straight-line basis over the respective estimated useful lives.
June 30, 2026December 31, 2025
Midstream assets
$347,298$53,077
Other property and equipment5,3374,039
Gross midstream and other property and equipment
352,63557,116
Less: accumulated depreciation
(14,524)(7,416)
Total midstream and other property and equipment, net
$338,111$49,700
The increase in midstream assets during the six months ended June 30, 2026 was primarily attributable to the acquisition of midstream assets as part of the Antero Acquisition described in Note 4 – Acquisitions to this Quarterly Report.
The estimated useful lives of other property and equipment depreciated on a straight-line basis are as follows:
Midstream assets
5 – 25 years
Vehicles
5 years
Furniture, fixtures, and office equipment
3 – 10 years
Leasehold improvements
5 years
The carrying value of long-lived assets that are not part of the Company’s full cost pool are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying values may not be recoverable. If an impairment exists, the impairment loss is measured as the amount by which the asset’s carrying value exceeds its fair value. No impairment was recognized during the three or six months ended June 30, 2026 or 2025.
Depreciation expense related to midstream and other property and equipment was approximately $5.7 million and $0.7 million for the three months ended June 30, 2026 and 2025, respectively, and approximately $7.1 million and $1.3 million for the six months ended June 30, 2026 and 2025, respectively