Leases

3 Months Ended

Mar. 31, 2026

Note 10 – Leases

The Company determines if a contract contains a lease at its inception or as a result of an acquisition and makes certain assumptions and judgments when determining its right–of–use assets and lease liabilities. As of March 31, 2026 and December 31, 2025, all of the Company’s leases are operating leases. The Company capitalizes its operating right–of–use assets and corresponding lease liabilities separately on its condensed consolidated balance sheets, using the present value of the remaining lease payments over the determined lease term applying the implicit rate of the lease.

The following table presents the components of the Company’s operating leases on its condensed consolidated balance sheets for the periods presented:

	March 31, 2026		December 31, 2025
	(In thousands)
Office space	$	1,544	$	1,737
Vehicles		643		281
Equipment ⁽¹⁾		810		948
Total right–of–use asset	$	2,997	$	2,966

Office space	$	1,670	$	1,870
Vehicles		639		274
Equipment ⁽¹⁾		810		948
Total lease liability	$	3,119	$	3,092

⁽¹⁾	Operating leases for equipment primarily include compressor rentals used in the Company’s daily operations.

The Company’s weighted–average remaining lease terms and discount rates as of March 31, 2026 are as follows:

	Operating Leases
Weighted–average lease term (years)		2.56
Weighted–average discount rate		10.1	%

The Company has several operating leases for office spaces, vehicles, and equipment used in its daily operations, under non–cancelable operating leases expiring through 2030. The Company recognizes lease expense for these leases on a straight–line basis. The following table presents the components of the Company’s lease costs during the periods presented:

	Three Months Ended March 31,
	2026		2025
	(In thousands)
Operating lease cost	$	403	$	122
Variable lease cost ⁽¹⁾		104		22
Total lease cost	$	507	$	144

⁽¹⁾	Variable lease costs include operating costs, such as parking costs and property taxes, associated with the Company’s office leases. The Company expenses variable lease costs as they are incurred.

As of March 31, 2026, the Company’s future lease commitments by year consisted of the following:

	(In thousands)
April 1, 2026 through December 31, 2026	$	1,615
January 1, 2027 through December 31, 2027		1,059
January 1, 2028 through December 31, 2028		662
January 1, 2029 through December 31, 2029		227
Total lease payments		3,563
Less: imputed interest		(444	)
Total lease liability	$	3,119

The Company’s supplemental cash flow disclosures related to operating leases are presented below for the periods indicated:

	Three Months Ended March 31,
	2026		2025
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities – operating cash flows from operating leases	$	406	$	110
Right-of-use assets obtained in exchange for operating liabilities	$	479	$	32