Note 8 - Asset Retirement Obligations

6 Months Ended

Jun. 30, 2025

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):

	Six Months Ended June 30, 2025
Beginning asset retirement obligations	$	14,750
Liabilities incurred from new wells		560
Liabilities settled and divested		(396	)
Accretion of discount		500
Ending asset retirement obligations	$	15,414

As of June 30, 2025 and December 31, 2024, all asset retirement obligations are considered noncurrent and classified as such in the accompanying condensed consolidated balance sheets.