Leases

6 Months Ended

Jun. 30, 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 June 30, 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:

	June 30, 2026		December 31, 2025
	(In thousands)
Office space	$	1,424	$	1,737
Vehicles		895		281
Equipment ⁽¹⁾		647		948
Total right–of–use asset	$	2,966	$	2,966

Office space	$	1,548	$	1,870
Vehicles		892		274
Equipment ⁽¹⁾		647		948
Total lease liability	$	3,087	$	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 for its operating leases as of June 30, 2026 are as follows:

Weighted–average lease term (years)			2.45
Weighted–average discount rate			10.06	%

The Company has several operating leases for office spaces, vehicles, and equipment used in its daily operations, under non–cancelable operating leases expiring through 2029. 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 recognized during the periods presented:

	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(In thousands)
Operating lease cost	$	471	$	272	$	891	$	394
Variable lease cost ⁽¹⁾		114		96		217		118
Total lease cost	$	585	$	368	$	1,108	$	512

⁽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 June 30, 2026, the Company’s future lease commitments by year consisted of the following:

	(In thousands)
July 1, 2026 through December 31, 2026	$	1,665
January 1, 2027 through December 31, 2027		1,054
January 1, 2028 through December 31, 2028		611
January 1, 2029 through December 31, 2029		171
Total lease payments		3,501
Less: imputed interest		(414	)
Total lease liability	$	3,087

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

	Six Months Ended June 30,
	2026		2025
	(In thousands)
Cash paid for operating leases included in cash provided by operating activities	$	843	$	355
Right-of-use assets obtained in exchange for operating liabilities	$	728	$	812