Natural Gas Properties & Other Property and Equipment

3 Months Ended

Mar. 31, 2025

Property, Plant and Equipment [Abstract]

Natural Gas Properties & Other Property and Equipment

Note 3 - Natural Gas Properties & Other Property and Equipment

As of March 31, 2025 and December 31, 2024, accumulated depreciation, depletion, and amortization for developed natural gas properties was $728.8 million and $697.0 million, respectively. For the three months ended March 31, 2025 and 2024, depreciation, depletion, and amortization expense for developed natural gas properties was $31.8 million and $45.1 million, respectively.

As of March 31, 2025 and December 31, 2024, accumulated depreciation for midstream assets was $18.9 million and $17.3 million, respectively. For the three months ended March 31, 2025 and 2024, depreciation expense on midstream assets was $1.6 million and $1.9 million, respectively.

Other property and equipment consisted of the following:

(in thousands)	March 31, 2025		December 31, 2024
Carbon capture, utilization, and sequestration	$	74,426	$	69,743
Buildings	6,746		15,707
Furniture, fixtures, equipment, and vehicles	19,973		19,306
Computer software	5,896		5,595
Leasehold improvements	1,685		1,685
Land	3,090		3,090
Construction in process	4,627		3,575
Total	116,443		118,701
Accumulated depreciation	(21,662)		(21,401)
Other property and equipment, net	$	94,781	$	97,300

For the three months ended March 31, 2025 and 2024, depreciation expense for other property and equipment was $1.7 million and $1.4 million, respectively. During the three months ended March 31, 2025, the Company received proceeds on the sale of other properties of $1.1 million, and recognized a gain on sale of these properties of $1.1 million, which is included in other revenues in the condensed consolidated statements of operations.

Asset Held for Sale

The Company classifies assets as “held for sale” when, among other factors, management approves and commits to sell the assets with the intent to complete the sale within one year. The net assets held for sale are then recorded at the lower of the current value and the fair market value, less costs to sell, if any.

As of March 31, 2025, the Company approved the plan to sell its field office in Bridgeport, Texas. The Company intends to complete the sale of this field office within twelve months, and has classified this asset as held for sale, which is presented separately on the condensed consolidated balance sheets. The Company recognized an impairment on the field office of $2.4 million using an estimated selling price of $5.5 million. The impairment is netted within other revenues on the condensed consolidated statements of operations. See below for the major class of assets held for the sale for the Bridgeport field office:

(in thousands)	March 31, 2025
Buildings	$	6,515
Accumulated depreciation	(1,015)
Total asset held for sale	$	5,500