Asset Retirement Obligations

12 Months Ended

Dec. 31, 2023

Asset Retirement Obligation Disclosure [Abstract]

(7) Asset Retirement Obligations

ARO primarily represents the present value of the estimated amounts we will incur to plug, abandon and remediate our producing properties at the end of their productive lives. Significant inputs used in determining such obligations include estimates of plugging and abandonment costs, estimated future inflation rates and well lives. The inputs are calculated based on historical data as well as current estimated costs. The following is a reconciliation of our liability for plugging and abandonment costs as of December 31, 2023 and 2022 (in thousands):


	Year Ended December 31,
	2023			2022
Beginning of period	$	109,851		$	95,836
Liabilities incurred		2,047			2,589
Liabilities settled		(3,039	)		(10,650	)
Accretion expense		6,000			6,569
Change in estimate		2,570			15,507
End of period		117,429			109,851
Less current portion		(2,395	)		(4,570	)
Long-term asset retirement obligations	$	115,034		$	105,281

Accretion expense is recognized as an increase to depreciation, depletion and amortization expense in the accompanying consolidated statements of income.