The Group recognizes the liability for an asset retirement obligation at their estimated fair value in the period in which the obligation originates. Fair value is estimated using the present value technique (level 2) based on a number of observable inputs including estimates and assumptions such as future retirement costs, future inflation rates and the Group’s credit-adjusted risk-free interest rate.

The Group capitalized the present value of the estimated asset retirement obligations as a part of the carrying amount of the related natural gas properties. The liability has been accreted to its present value for the year ended June 30, 2026.

The reconciliation of changes in asset retirement obligations is as follows (in thousands):


	For the years ended June 30,
	2026		2025
Beginning asset retirement obligations	$	9,649	$	8,141
Associated with acquisitions	10,578		—
Liabilities incurred	229		524
Accretion expense	1,243		1,042

Effect of changes in foreign exchange rates	439		(58)
Long-term asset retirement obligations	$	22,138	$	9,649