ASSET RETIREMENT OBLIGATIONS

12 Months Ended

Dec. 31, 2023

ASSET RETIREMENT OBLIGATIONS

ASSET RETIREMENT OBLIGATIONS

9. ASSET RETIREMENT OBLIGATIONS

The Company records an ARO on oil and natural gas properties when it can reasonably estimate the fair value of an obligation to perform site reclamation, dismantle facilities or plug and abandon costs. The Company records AROs to reflect the Company’s legal obligations related to future plugging and abandonment of its oil and natural gas wells, treating equipment and gathering support facilities.

The Company recorded the following activity related to its ARO liability (inclusive of the current portion) (in thousands):

	For the Year Ended December 31,
	2023		2022
Asset retirement obligations at beginning of the period	$	15,469	$	11,896
Accretion expense		793		528
Liabilities incurred		34		151
Liabilities settled/divested		(112)		(647)
Revisions to estimate		1,274		3,541
Asset retirement obligations at end of period		17,458		15,469
Less: current asset retirement obligations		—		(225)
Long-term asset retirement obligations at the end of the period	$	17,458	$	15,244