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LEASES
 9 Months Ended
Jun. 30, 2025
Leases [Abstract]  
LEASES
NOTE 5 LEASES
Lease Position
(in thousands)June 30, 2025September 30, 2024
Operating lease commitments, including probable extensions1
$188,019 $104,535 
Discounted using the lessee's incremental borrowing rate$144,947 $77,316 
(Less): short-term leases recognized on a straight-line basis as expense(445)(404)
(Less): other(1,543)(182)
Lease liability recognized$142,959 $76,730 
Of which:
Current lease liabilities$34,132 $16,997 
Non-current lease liabilities108,827 59,733 
(1)Our future minimum rental payments exclude optional extensions that have not been exercised but are probable to be exercised in the future. Those probable extensions are included in the operating lease liability balance.
The recognized right-of-use assets relate to the following types of assets:
(in thousands)June 30, 2025September 30, 2024
Real estate properties
$113,902 $66,842 
Drilling equipment
6,311 234 
Total right-of-use assets$120,213 $67,076 
Lease Costs
The following table presents certain information related to the lease costs for our operating leases:
Three Months Ended June 30,Nine Months Ended June 30,
(in thousands)2025202420252024
Operating lease cost$9,727 $3,077 $21,135 $9,069 
Short-term lease cost6,659 445 19,903 1,166 
Total lease cost$16,386 $3,522 $41,038 $10,235 
Lease Terms and Discount Rates
The table below presents certain information related to the weighted average remaining lease terms and weighted average discount rates for our operating leases:
June 30, 2025September 30, 2024
Weighted average remaining lease term10.911.6
Weighted average discount rate5.3 %5.1 %
Lease Obligations
Future minimum rental payments required under operating leases having initial or remaining non-cancelable lease terms in excess of one year at June 30, 2025 (in thousands) are as follows:
Fiscal YearAmount
Remainder of 2025
$9,104 
202622,520 
202717,152 
202815,440 
202914,420 
Thereafter77,129 
Total1
$155,765 
(1)Our future minimum rental payments exclude optional extensions that have not been exercised but are probable to be exercised in the future. Those probable extensions are included in the operating lease liability balance.
Of the $155.8 million of future minimum rental payments, $61.8 million is attributable to our recently acquired subsidiary, KCA Deutag.
During the fiscal year ended September 30, 2024, we amended the lease for our Tulsa industrial facility. As part of the amendment, we extended the lease term, now continuing through June 30, 2035 with two five-year renewal options, resulting in an increase of $18.1 million to the right-of-use assets and lease liability on our Consolidated Balance Sheet. We recognized one of the five-year renewal options as part of our right-of-use assets and lease liabilities. This contract is accounted for as an operating lease. The future minimum lease payments for the Tulsa industrial facility represent a material portion of the amounts shown in the table above.
During the fiscal year ended September 30, 2024, we amended the lease for our Tulsa corporate headquarters, resulting in a $5.9 million increase to right-of-use assets and lease liability on our Consolidated Balance Sheets. The additional right of use asset will be amortized over the remaining 11 years of the original lease term. The future minimum lease payments for our corporate headquarters office space represent a material portion of the amounts shown in the table above.