Asset Retirement Obligations

6 Months Ended

Jun. 30, 2024

Asset Retirement Obligation Disclosure [Abstract]

(9) ASSET RETIREMENT OBLIGATIONS

Our asset retirement obligations primarily represent the estimated present value of the 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. A reconciliation of our liability for plugging and abandonment costs for the six months ended June 30, 2024 and the year ended December 31, 2023 is as follows (in thousands):


	Six Months Ended June 30, 2024			Year Ended December 31, 2023
Beginning of period	$	117,429		$	109,851
Liabilities incurred		1,836			2,047
Liabilities settled		(3,546	)		(3,039	)
Accretion expense		3,238			6,000
Change in estimate		550			2,570
End of period		119,507			117,429
Less current portion		(2,395	)		(2,395	)
Long-term asset retirement obligations	$	117,112		$	115,034

Accretion expense is recognized as a component of depreciation, depletion and amortization expense in the accompanying consolidated statements of income.