v3.26.1
Note 8 - Asset Retirement Obligations
6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Asset Retirement Obligation Disclosure [Text Block]

NOTE 8. Asset Retirement Obligations

 

The Company’s asset retirement obligations primarily relate to the future plugging and abandonment of wells and remediation of related facilities. Market risk premiums associated with asset retirement obligations are estimated to represent a component of the Company’s credit-adjusted risk-free rate that is utilized in the calculations of asset retirement obligations.

 

Asset retirement obligations activity is as follows (in thousands):

 

   

Six Months

Ended

June 30,

2026

 

Beginning asset retirement obligations

  $ 15,944  

Liabilities incurred from new wells

    201  

Liabilities settled

    (83 )

Accretion of discount

    597  

Ending asset retirement obligations

  $ 16,659  

 

As of June 30, 2026 and December 31, 2025, all asset retirement obligations are considered noncurrent and classified as such in the accompanying condensed consolidated balance sheets.