Note 8 - Asset Retirement Obligations

12 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Asset Retirement Obligation Disclosure [Text Block]

NOTE 8. Asset Retirement Obligations

The Company’s asset retirement obligations primarily relate to the future plugging and abandonment of wells and remediation of related facilities. Market risk premiums associated with asset retirement obligations are estimated to represent a component of the Company’s credit-adjusted risk-free rate that is utilized in the calculations of asset retirement obligations.

Asset retirement obligations activity is as follows (in thousands):

	Year Ended December 31,
	2024			2023			2022
Beginning asset retirement obligations	$	13,245		$	7,502		$	4,260
Liabilities incurred from new wells		747			445			573
Liabilities assumed in acquisitions		—			2,638			3,219
Liabilities divested		(208	)		(81	)		—
Revision of estimates (a)		—			2,219			(920	)
Accretion of discount		966			522			370
Ending asset retirement obligations	$	14,750		$	13,245		$	7,502

(a) The revisions to the Company’s asset retirement obligation estimates are primarily due to changes in the ultimate expected useful lives of the properties.

As of December 31, 2024 and 2023, all asset retirement obligations are considered noncurrent and classified as such in the accompanying consolidated balance sheets.