Suspended Exploratory Well Costs

9 Months Ended

Sep. 30, 2025

Oil and Gas, Capitalized Exploratory Well Cost [Abstract]

(14) SUSPENDED EXPLORATORY WELL COSTS

We capitalize exploratory well costs until a determination is made that the well has either found proved reserves or that it is impaired. Capitalized exploratory well costs are presented in natural gas and oil properties in the accompanying consolidated balance sheets. If an exploratory well is determined to be impaired, the well costs are charged to exploration expense in the accompanying consolidated statements of income.

As of September 30, 2025, we had $17.2 million of exploratory well costs capitalized for greater than one year related to suspended wells. We believe these wells exhibit sufficient quantities of natural gas to justify future development. These suspended wells require completion activities and infrastructure expansion in order to classify the reserves as proved. The following table reflects the changes in capitalized exploratory well costs for the nine months ended September 30, 2025:


	Nine Months Ended September 30, 2025
	(in thousands)
Balance at beginning of period	$	12,569
Additions to capitalized exploratory well costs pending the determination of proved reserves		4,593
Reclassifications to wells, facilities and equipment based on determination of proved reserves		—
Capitalized exploratory well costs, charged to expense		—
Balance at end of period	$	17,162
Less exploratory well costs that have been capitalized for a period of one year or less	$	—
Capitalized exploratory well costs that have been capitalized for a period greater than one year	$	17,162

Number of projects that have exploratory well costs capitalized for a period greater than one year		2