Asset Retirement Obligations

12 Months Ended

Dec. 31, 2024

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligations

(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, 2024 and 2023 (in thousands):

	Year Ended December 31,
	2024			2023
Beginning of period	$	117,429		$	109,851
Liabilities incurred		3,871			2,047
Liabilities settled		(4,655	)		(3,039	)
Accretion expense		7,148			6,000
Change in estimate		9,974			2,570
End of period		133,767			117,429
Less current portion		(1,189	)		(2,395	)
Long-term asset retirement obligations	$	132,578		$	115,034

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