In third quarter 2020, the Company sold its North Louisiana assets and retained certain gathering, transportation and processing obligations which extend into 2030. These are contracts where we will not realize any future benefit. The estimated obligations are included in current and long-term divestiture contract obligation in our consolidated balance sheets. In first nine months 2025, we recorded accretion expense of $25.5 million compared to $30.0 million in the same period of the prior year.

The following details the accrued exit cost liability activity for the nine months ended September 30, 2025 (in thousands):


	Exit Costs
Balance at December 31, 2024		344,308
Accretion of discount		25,484
Payments		(70,396	)
Balance at September 30, 2025	$	299,395