v3.26.3
Asset Retirement Obligation
9 Months Ended
Sep. 30, 2026
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligation Asset Retirement Obligation

Our asset retirement obligation primarily represents the estimated present value of the amount we will incur to plug, abandon and remediate our proved producing properties at the end of their productive lives, in accordance with applicable state and federal laws. We determine our asset retirement obligation by calculating the present value of estimated cash flows related to the liability. The following is a summary of changes in TXO Partners’ asset retirement obligation activity for the nine months ended September 30, 2026:

 

 

 

(in thousands)

 

Asset retirement obligation, January 1

 

 

221,085

 

Liability divested

 

 

(68,418

)

Liability settled upon plugging and abandoning wells

 

 

(2,431

)

Accretion of discount expense

 

 

10,988

 

Asset retirement obligation, September 30

 

 

161,224

 

Less current portion

 

 

(2,000

)

Asset retirement obligation, long term

 

$

159,224