LEASES

12 Months Ended

Dec. 31, 2025

Leases [Abstract]

LEASES

LEASES

Under the leasing standard that became effective January 1, 2019, there are two types of leases: finance and operating. Regardless of the type of lease, the initial measurement of the lease results in recording a ROU asset and a lease liability at the present value of the future lease payments.

Operating leases

The Company is currently a party to three operating lease agreements for the corporate and Egypt offices and transportation equipment. The remaining lease term for these agreements ranges from 35 to 60 months. In some cases, the lease contracts require the Company to make payments both for the use of the asset itself and for operations and maintenance services. Only the payments for the use of the asset related to the lease component are included in the calculation of ROU assets and lease liabilities. Payments for the operations and maintenance services are considered non-lease components and are not included in calculating the ROU assets and lease liabilities. For leases on ROU assets used in joint operations, generally the operator reflects the full amount of the lease component, including the amount that will be funded by the non-operators. As operator for the Etame Marin block, the ROU asset recorded for certain equipment used in the joint operations includes the gross amount of the lease components.

The transportation equipment leases include provisions for variable lease payments, under which the Company is required to make additional payments based on the number of days or hours the asset is deployed. Because the Company does not know the extent that the Company will be required to make such payments, they are excluded from the calculation of ROU assets and lease liabilities.

Financing leases

The Company is currently a party to several financing lease agreements for the FSO and generators and marine vessels used in the operations of the Etame Marin block. The remaining lease term for these agreements ranges from 1 to 81 months months. In some cases, the lease contracts require the Company to make payments both for the use of the asset itself and for operations and maintenance services. Only the payments for the use of the asset related to the lease component are included

in the calculation of ROU assets and lease liabilities. Payments for the operations and maintenance services are considered non-lease components and are not included in calculating the ROU assets and lease liabilities.

All leases

For all leases that contain an option to extend the initial lease term, the Company has evaluated whether it is reasonably certain that the Company will extend the lease beyond the initial lease term. When the Company believes it is reasonably certain it will utilize these leased assets beyond the initial lease term, those payments have been included in the calculation of the ROU assets and liabilities. The discount rate used to calculate ROU assets and lease liabilities represents the Company’s incremental borrowing rate. The Company determined this by considering the term and economic environment of each lease, and estimating the resulting interest rate the Company would incur to borrow the lease payments.

For the years ended December 31, 2025, 2024 and 2023, the components of the lease costs and supplemental information was as follows:

	Year Ended December 31,
	2025		2024		2023
Lease cost:	(in thousands)
Finance lease cost (1):
Amortization of lease assets	$	13,558	$	12,924	$	10,253
Interest on lease liabilities	5,449		6,274		7,044
Operating lease cost	5,018		5,100		1,403
Short-term lease cost (2)	845		893		6,574
Variable lease cost (3)	1,964		1		653
Total lease expense	26,834		25,192		25,927
Lease costs capitalized	761		—		55
Total lease costs	$	27,595	$	25,192	$	25,982

(1)Represents depreciation and interest associated with financing leases.

(2)Represents short term leases under contracts that are 1 year or less where a ROU asset and lease liability are not required to be recorded.

(3)Variable costs represent differences between minimum lease costs and actual lease costs incurred under lease contracts.

Other information:

	Year Ended December 31,
	2025			2024			2023
Other information:
Cash paid for amounts included in the measurement of lease liabilities:
Financing cash flows attributable to finance leases (in thousands)	$	13,289		$	10,477		$	7,161
Weighted-average remaining lease term (in years)	6.47			7.36			8.16
Weighted-average discount rate	7.21		%	7.16		%	7.99		%
Operating cash flows attributable to operating leases (in thousands)	$	6,531		$	2,127		$	505
Weighted-average remaining lease term (in years)	3.29			4.09			0.67
Weighted-average discount rate	6.53		%	6.14		%	8.45		%

The table below describes the presentation of the total lease cost on the Company’s consolidated statements of operations and other comprehensive income (loss). As discussed above, the Company’s joint venture owners are required to reimburse the Company for their share of certain expenses, including certain lease costs.

	Year Ended December 31,
	2025		2024		2023
	(in thousands)
Finance lease cost	$	11,179	$	11,290	$	10,231
Production expense	4,309		3,517		3,556
General and administrative expense	500		346		196
Lease costs billed to the joint venture owners	10,846		10,039		11,964
Total lease expense	26,834		25,192		25,947
Lease costs capitalized	761		—		35
Total lease costs	$	27,595	$	25,192	$	25,982

The following table describes the future maturities of the Company’s operating and financing lease liabilities at December 31, 2025:

	Operating Leases		Finance Leases
Year	(in thousands)
2026	$	6,646	$	16,676
2027	5,431		15,216
2028	5,202		11,660
2029	958		11,660
2030	626		12,568
Thereafter	—		17,884
	18,863		85,664
Less: imputed interest	(1,936)		(16,289)
Total lease liabilities	$	16,927	$	69,375

Under the joint operating agreements, other joint venture owners are obligated to fund approximately $41.3 million of the $104.5 million in future lease liabilities as of December 31, 2025.

LEASES

LEASES

Under the leasing standard that became effective January 1, 2019, there are two types of leases: finance and operating. Regardless of the type of lease, the initial measurement of the lease results in recording a ROU asset and a lease liability at the present value of the future lease payments.

Operating leases

The Company is currently a party to three operating lease agreements for the corporate and Egypt offices and transportation equipment. The remaining lease term for these agreements ranges from 35 to 60 months. In some cases, the lease contracts require the Company to make payments both for the use of the asset itself and for operations and maintenance services. Only the payments for the use of the asset related to the lease component are included in the calculation of ROU assets and lease liabilities. Payments for the operations and maintenance services are considered non-lease components and are not included in calculating the ROU assets and lease liabilities. For leases on ROU assets used in joint operations, generally the operator reflects the full amount of the lease component, including the amount that will be funded by the non-operators. As operator for the Etame Marin block, the ROU asset recorded for certain equipment used in the joint operations includes the gross amount of the lease components.

The transportation equipment leases include provisions for variable lease payments, under which the Company is required to make additional payments based on the number of days or hours the asset is deployed. Because the Company does not know the extent that the Company will be required to make such payments, they are excluded from the calculation of ROU assets and lease liabilities.

Financing leases

The Company is currently a party to several financing lease agreements for the FSO and generators and marine vessels used in the operations of the Etame Marin block. The remaining lease term for these agreements ranges from 1 to 81 months months. In some cases, the lease contracts require the Company to make payments both for the use of the asset itself and for operations and maintenance services. Only the payments for the use of the asset related to the lease component are included

in the calculation of ROU assets and lease liabilities. Payments for the operations and maintenance services are considered non-lease components and are not included in calculating the ROU assets and lease liabilities.

All leases

For all leases that contain an option to extend the initial lease term, the Company has evaluated whether it is reasonably certain that the Company will extend the lease beyond the initial lease term. When the Company believes it is reasonably certain it will utilize these leased assets beyond the initial lease term, those payments have been included in the calculation of the ROU assets and liabilities. The discount rate used to calculate ROU assets and lease liabilities represents the Company’s incremental borrowing rate. The Company determined this by considering the term and economic environment of each lease, and estimating the resulting interest rate the Company would incur to borrow the lease payments.

For the years ended December 31, 2025, 2024 and 2023, the components of the lease costs and supplemental information was as follows:

	Year Ended December 31,
	2025		2024		2023
Lease cost:	(in thousands)
Finance lease cost (1):
Amortization of lease assets	$	13,558	$	12,924	$	10,253
Interest on lease liabilities	5,449		6,274		7,044
Operating lease cost	5,018		5,100		1,403
Short-term lease cost (2)	845		893		6,574
Variable lease cost (3)	1,964		1		653
Total lease expense	26,834		25,192		25,927
Lease costs capitalized	761		—		55
Total lease costs	$	27,595	$	25,192	$	25,982

(1)Represents depreciation and interest associated with financing leases.

(2)Represents short term leases under contracts that are 1 year or less where a ROU asset and lease liability are not required to be recorded.

(3)Variable costs represent differences between minimum lease costs and actual lease costs incurred under lease contracts.

Other information:

	Year Ended December 31,
	2025			2024			2023
Other information:
Cash paid for amounts included in the measurement of lease liabilities:
Financing cash flows attributable to finance leases (in thousands)	$	13,289		$	10,477		$	7,161
Weighted-average remaining lease term (in years)	6.47			7.36			8.16
Weighted-average discount rate	7.21		%	7.16		%	7.99		%
Operating cash flows attributable to operating leases (in thousands)	$	6,531		$	2,127		$	505
Weighted-average remaining lease term (in years)	3.29			4.09			0.67
Weighted-average discount rate	6.53		%	6.14		%	8.45		%

The table below describes the presentation of the total lease cost on the Company’s consolidated statements of operations and other comprehensive income (loss). As discussed above, the Company’s joint venture owners are required to reimburse the Company for their share of certain expenses, including certain lease costs.

	Year Ended December 31,
	2025		2024		2023
	(in thousands)
Finance lease cost	$	11,179	$	11,290	$	10,231
Production expense	4,309		3,517		3,556
General and administrative expense	500		346		196
Lease costs billed to the joint venture owners	10,846		10,039		11,964
Total lease expense	26,834		25,192		25,947
Lease costs capitalized	761		—		35
Total lease costs	$	27,595	$	25,192	$	25,982

The following table describes the future maturities of the Company’s operating and financing lease liabilities at December 31, 2025:

	Operating Leases		Finance Leases
Year	(in thousands)
2026	$	6,646	$	16,676
2027	5,431		15,216
2028	5,202		11,660
2029	958		11,660
2030	626		12,568
Thereafter	—		17,884
	18,863		85,664
Less: imputed interest	(1,936)		(16,289)
Total lease liabilities	$	16,927	$	69,375

Under the joint operating agreements, other joint venture owners are obligated to fund approximately $41.3 million of the $104.5 million in future lease liabilities as of December 31, 2025.