The condensed consolidated balance sheets consist of the following amounts relating to operating and finance leases (in thousands):


	As of June 30,		As of December 31,
	2026		2025
Operating right-of-use assets
Real property	$	21,323	$	17,556
	$	21,323	$	17,556
Operating lease liabilities
Current	$	8,582	$	8,004
Non-current		12,957		9,783
	$	21,539	$	17,787


	As of June 30,		As of December 31,
	2026		2025
Finance right-of-use assets
Vehicles	$	24,517	$	25,861
	$	24,517	$	25,861
Finance lease liabilities
Current	$	13,044	$	12,895
Non-current		9,151		10,862
	$	22,195	$	23,757

Additions to operating right-of-use assets during the six months ended June 30, 2026 and 2025, were approximately $7.8 million and $0.8 million, respectively. Additions to finance right-of-use assets during the six months ended June 30, 2026 and 2025, were approximately $5.7 million and $9.4 million, respectively. Disposals of the right-of-use assets during the six months ended June 30, 2026 and 2025, were approximately $1.7 million and $4.0 million, respectively.

The weighted average lessee’s incremental borrowing rate applied to the operating and finance lease liabilities as of June 30, 2026 was 7.0% and 6.4%, respectively. The weighted average lessee’s incremental borrowing rate applied to the operating and finance lease liabilities on December 31, 2025 was 6.6% and 6.9%, respectively. The weighted average remaining lease term for operating and finance lease on June 30, 2026 was 3.09 years and 2.21 years, respectively. The weighted average remaining lease term for operating and finance lease on December 31, 2025 was 2.80 years and 2.68 years, respectively.

The condensed consolidated statements of operations consist of the following amounts relating to leases (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Amortization of real property operating right-of-use assets
(included in general and administrative expenses)	$	2,757	$	1,959	$	5,299	$	4,011
Interest expense (recovery) of vehicles finance right-of-use assets
(included in interest expense)	$	358	$	1,794	$	741	$	2,831
Depreciation of vehicles finance right-of-use assets
(included in depreciation and amortization)	$	3,641	$	1,587	$	7,122	$	3,741

Variable lease expense	$	—	$	—	$	—	$	—
Short-term lease expense	$	573	$	177	$	993	$	402

The table below shows the total cash outflows for leases for the periods presented (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Operating cash flows from operating leases	$	2,754	$	1,743	$	5,558	$	3,591
Financing cash flows from finance leases		4,165		2,834		8,220		5,663
Total cash outflows for leases	$	6,919	$	4,577	$	13,778	$	9,254

The table below reconciles the undiscounted future minimum operating and finance lease payments to the operating and finance lease liabilities recorded on the balance sheet as of June 30, 2026 (in thousands):


	Operating Lease			Finance Lease
Remainder of 2026	$	5,317		$	7,781
2027		7,353			10,516
2028		4,413			4,203
2029		3,030			764
2030		2,263			160
Thereafter		2,185			33
Total future minimum lease payments		24,561			23,457
Less: Amount of lease payments representing interest		(3,022	)		(1,262	)
Present values of future minimum lease payments	$	21,539		$	22,195

Rental agreements are for the rental of our compression and ESP systems to customers. Rental revenue for the six months ended June 30, 2026 and 2025, were approximately $254.5 million and $199.4 million, respectively. Revenue related to these rental agreements is reflected as rental revenue in the condensed consolidated statements of operations.

Scheduled future minimum lease payments to be received by the Company as of June 30, 2026 for each of the next five years is as follows (in thousands):


	Amount
Remainder of 2026	$	115,179
2027		113,891
2028		30,463
2029		3,788
2030		168
Thereafter		—
Total	$	263,489