During 2026, in connection with the Merger and the South Texas Divestiture, we announced workforce reductions to better align staffing levels and the organizational structure with our strategy. During the three and nine months ended September 30, 2026, we incurred restructuring costs of $1 million and $123 million, respectively, which are included in G&A expense in the accompanying statements of operations. These restructuring costs represent a component of total one-time Merger integration costs and consist primarily of employee severance and retention and accelerated vesting of stock-based compensation awards. As of September 30, 2026, we have incurred and paid substantially all expected restructuring costs.

The following table summarizes restructuring cost activity during the nine months ended September 30, 2026, and our restructuring cost liabilities included in the accounts payable and accrued expenses line item in the accompanying balance sheets as of the dates presented:


	(in millions)
Balance as of December 31, 2025	$	—
Restructuring costs incurred (1)	123
Restructuring costs paid or settled	(121)
Balance as of September 30, 2026	$	2

(1) Restructuring costs incurred exclude $36 million of other G&A integration costs including systems integration, advisory, and legal expenses, and salaries for transition employees.