Quarterly report [Sections 13 or 15(d)]

PROPERTY AND EQUIPMENT

v3.26.1
PROPERTY AND EQUIPMENT
 3 Months Ended
Mar. 31, 2026
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT PROPERTY AND EQUIPMENT
The major categories of property and equipment and related accumulated DD&A are as follows (in thousands):
March 31, 2026 December 31, 2025
Proved oil and natural gas properties $ 4,054,885  $ 3,902,539 
Unproved properties 251,020  232,959 
Other depreciable property and equipment 13,179  12,622 
Land 386  386 
Total property and equipment 4,319,470  4,148,506 
Accumulated DD&A (1,943,856) (1,868,481)
Property and equipment, net $ 2,375,614  $ 2,280,025 
Oil and Natural Gas Properties
Under the full cost method of accounting, the Company is required to perform a ceiling test each quarter. The test determines a limit, or ceiling, on the book value of the Company's oil and natural gas properties. At March 31, 2026 and 2025, the net book value of the Company's oil and gas properties was below the calculated ceiling. As a result, the Company did not record an impairment of its oil and natural gas properties for the three months ended March 31, 2026 or 2025.
General and administrative costs capitalized to the full cost pool represent management’s estimate of costs incurred directly related to exploration and development activities such as geological and other administrative costs associated with overseeing the exploration and development activities. All general and administrative costs not directly associated with exploration and development activities are charged to expense as they are incurred. Capitalized general and administrative costs were approximately $5.5 million and $6.2 million for the three months ended March 31, 2026 and 2025, respectively.
The Company evaluates the costs excluded from its amortization calculation at least annually. Individually insignificant unevaluated properties are grouped for evaluation and periodically transferred to evaluated properties over a timeframe consistent with their expected development schedule.
The following table summarizes the Company’s non-producing properties excluded from amortization by area (in thousands):
March 31, 2026 December 31, 2025
Utica & Marcellus $ 229,617  $ 210,185 
SCOOP 21,403  22,774 
Total unproved properties $ 251,020  $ 232,959 
Asset Retirement Obligation
The following table provides a reconciliation of the Company’s asset retirement obligation (in thousands):
Three Months Ended March 31, 2026 Three Months Ended March 31, 2025
Asset retirement obligation, beginning of period $ 32,912  $ 32,949 
Liabilities incurred 243  53 
Liabilities settled and divested (74) (1,266)
Accretion expense 598  618 
Total asset retirement obligation, end of period $ 33,679  $ 32,354