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LEASES
 9 Months Ended
Sep. 30, 2026
Leases [Abstract]  
LEASES
NOTE 3 — LEASES
The Company has operating leases for its offices in Midland, Texas and The Woodlands, Texas. The Midland office is currently under a five-year lease, effective October 1, 2022. The Woodlands office is currently under a 71-month (five years and 11-month) lease, effective May 9, 2023. The future payments for these office spaces are reflected in the future lease payments schedule below.
The Company has month to month leases for office equipment and compressors used in its operations on which the Company has elected to apply ASU 2016-02 (i.e. to not capitalize). The office equipment and compressors are not subject to capitalization based on the agreement and nature of use. These leases are for terms that are less than 12 months and the Company does not intend to continue to lease this equipment for more than 12 months. The lease costs associated with these leases are reflected in the short-term lease costs within Lease operating expenses, shown below.
The Company has financing leases for vehicles. These leases have an initial term of 36 months at the end of which the Company owns the vehicles. These vehicles are generally sold at the end of their term, and the proceeds are settled in cash or applied to a new vehicle.
Future lease payments associated with these operating and financing leases as of September 30, 2026 are as follows:
20262027202820292030Other Future YearsTotal
Operating lease payments$131,759 $460,497 $250,606 $149,628 $— $— $992,490 
Financing lease payments210,799 608,872 302,366 43,626 — — 1,165,663 
The following table shows the weighted average remaining lease term and the weighted average discount rate for the Company's leases as of the dates indicated.
As of
September 30, 2026December 31, 2025
Operating leases
Weighted average remaining lease term (in years)
2.29
2.71
Weighted average discount rate
4.50%
4.50%
Finance leases
Weighted average remaining lease term (in years)
1.76
1.99
Weighted average discount rate
7.50%
7.50%

The following table represents a reconciliation between the undiscounted future cash flows in the table above and the operating and financing lease liabilities disclosed in the Condensed Balance Sheets:
As of
September 30, 2026December 31, 2025
Operating lease liability, current portion$498,844 $586,614 
Operating lease liability, non-current portion442,008 819,223 
Operating lease liability, total$940,852 $1,405,837 
Total undiscounted future cash flows (sum of future operating lease payments)992,490 1,497,380 
Imputed interest51,638 91,543 
Undiscounted future cash flows less imputed interest$940,852 $1,405,837 
Financing lease liability, current portion$646,731 $730,564 
Financing lease liability, non-current portion439,869 593,146 
Financing lease liability, total$1,086,600 $1,323,710 
Total undiscounted future cash flows (sum of future financing lease payments)1,165,663 1,428,999 
Imputed interest79,063 105,289 
Undiscounted future cash flows less imputed interest$1,086,600 $1,323,710 
The following table provides supplemental information regarding lease costs in the Condensed Statements of Operations:
For the Three Months Ended
For the Nine Months Ended
September 30, 2026September 30, 2025September 30, 2026September 30, 2025
Operating lease costs$124,187 $175,091 $474,368 $525,272 
Short-term lease costs (1)
812,000 1,143,136 2,446,993 3,555,538 
Financing lease costs:
Amortization of financing lease assets (2)
211,324 217,213 618,233 720,618 
Interest on financing lease liabilities (3)
22,582 24,330 72,129 80,709 
(1)Amount included in Lease operating expenses
(2)Amount included in Depreciation, depletion and amortization
(3)Amount included in Interest (expense)
During the three and nine months ended September 30, 2026 and 2025, the Company recorded a gain (loss) on disposal of assets, which was impacted by the sale of leased vehicles, as follows:

For the Three Months EndedFor the Nine Months Ended
September 30, 2026September 30, 2025September 30, 2026September 30, 2025
Sale of owned vehicles$— $— $23,142 $(6,974)
Sale of leased vehicles52,331 105,642 133,339 392,519 
Gain (loss) on disposal of assets$52,331 $105,642 $156,481 $385,545