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Natural Gas Properties & Other Property and Equipment
 6 Months Ended
Jun. 30, 2025
Property, Plant and Equipment [Abstract]  
Natural Gas Properties & Other Property and Equipment
Note 3 - Natural Gas Properties & Other Property and Equipment
As of June 30, 2025 and December 31, 2024, accumulated depreciation, depletion, and amortization for developed natural gas properties was $759.5 million and $697.0 million, respectively. Depreciation, depletion, and amortization expense for developed natural gas properties was $30.7 million and $53.0 million for the three months ended June 30, 2025 and 2024, respectively, and $62.5 million and $98.1 million for the six months ended June 30, 2025 and 2024, respectively.
As of June 30, 2025 and December 31, 2024, accumulated depreciation for midstream assets was $20.5 million and $17.3 million, respectively. Depreciation expense on midstream assets was $1.6 million and $1.8 million for the three months ended June 30, 2025 and 2024, respectively, and $3.2 million and $3.7 million for the six months ended June 30, 2025 and 2024, respectively.
Other property and equipment consisted of the following:
(in thousands)June 30, 2025December 31, 2024
Carbon capture, utilization, and sequestration$80,064 $69,743 
Buildings6,746 15,707 
Furniture, fixtures, equipment, and vehicles20,280 19,306 
Computer software6,028 5,595 
Leasehold improvements1,685 1,685 
Land3,090 3,090 
Construction in process9,347 3,575 
Total127,240 118,701 
Accumulated depreciation(22,987)(21,401)
Other property and equipment, net$104,253 $97,300 
Depreciation expense for other property and equipment was $1.6 million and $1.5 million for the three months ended June 30, 2025 and 2024, respectively, and $3.3 million and $3.0 million for the six months ended June 30, 2025 and 2024, respectively. During the three months ended June 30, 2025 and 2024, the Company received proceeds on the sale of other properties of $0.2 million and $0.9 million, respectively, and recognized a gain on sale of these properties of $0.1 million and $0.7 million, respectively, which is included in other revenues in the condensed consolidated statements of operations. During the six months ended June 30, 2025 and 2024, the Company received proceeds on the sale of other properties of $1.3 million and $1.6 million, respectfully, and recognized a gain on sale of these properties of $1.2 million and $0.8 million, respectively, which is included in the other revenues in the condensed consolidated statements of operations.
Sales of BKV Chaffee Corners, LLC and BKV Chelsea, LLC
On June 14, 2024, the Company sold its wholly owned subsidiary, Chaffee, representing a non-operated interest in approximately 9,800 net acres and 116.0 gross (24.2 net) wells and 122 Bcfe of proved reserves in NEPA, as well as the Company's interest in the Repsol Oil and Gas operated midstream system, for $106.7 million. For the three and six months ended June 30, 2024, the Company recognized a gain on the sale of Chaffee of $6.0 million, net of transaction costs of $3.5 million, which is included in the gain on sale of business in the condensed consolidated statements of operations. The Company recognized additional proceeds of $1.1 million upon final settlement on December 6, 2024.
On June 28, 2024, Chelsea sold certain of its non-operated upstream assets, including interest in approximately 6,800 net acres and 214.0 gross (15.4 net) wells and 35 Bcfe of proved reserves in NEPA, for a purchase price of $25.0 million, subject to adjustment, and transaction costs of approximately $0.5 million. The purchase price was reduced by $0.2 million upon final settlement on November 18, 2024. Due to the immateriality of the upstream assets sold, the Company utilized the practical expedient to account for the sale of Chelsea's non-operated upstream assets sold as a normal retirement with no gain or loss recognized as sale of these assets did not significantly impact the depletion rate with respect to the total reserves retained in NEPA.
As of June 30, 2025, the Company held approximately 19,097 net acres in NEPA, 97% of which was held by production.
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 June 30, 2025, the Company approved the plan to sell its field office in Bridgeport, Texas. The Company 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. On July 21, 2025, the Company sold the Bridgeport field office for $5.5 million, and recognized fees associated with this sale of $0.4 million.
See below for the major class of assets held for the sale for the Bridgeport field office:
(in thousands)June 30, 2025
Buildings$6,515 
Accumulated depreciation(1,015)
Total asset held for sale$5,500