Intangible Assets

12 Months Ended

Dec. 31, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

6. Intangible Assets

Intangible assets, net of accumulated amortization consisted of the following:


	Year Ended December 31,
	2025			2024
Water contracts	$	28,556		$	28,556
Surface use agreements		121,385			24,247
Subtotal		149,941			52,803
Less: accumulated amortization		(12,979	)		(7,538	)
Total intangible assets, net	$	136,962		$	45,265

	Year Ended December 31,
Accumulated amortization	2025			2024
Water contracts	$	6,476		$	3,516
Surface use agreements		6,503			4,022
Total accumulated amortization	$	12,979		$	7,538

On November 12, 2025, the Company acquired surface use agreements as part of the 1918 Ranch Acquisition. The purchase consideration attributable to the contracts was approximately $97.1 million, which will be amortized over a term of 15 years.

On November 22, 2024, the Company acquired surface use agreements as part of an acquisition of land in Lea County, New Mexico. The purchase consideration attributable to the surface use agreements was approximately $5.1 million, which will be amortized over a term of 15 years.

On November 1, 2024, the Company acquired a water contract as part of an acquisition of land in Winkler County, Texas. The purchase consideration attributable to the water contract was approximately $13.6 million, which will be amortized over a term of 7 years.

On March 18, 2024, the Company acquired a surface use agreement as part of an acquisition of land in Lea County, New Mexico. The purchase consideration attributable to the surface use agreement was approximately $0.5 million, which will be amortized over a term of 30 years.

The Company recognized $5.4 million, $2.6 million and $2.2 million in amortization expense for the years ended December 31, 2025, 2024 and 2023, respectively. The remaining weighted average amortization period for the surface use agreements and water contracts was 13.5 years and 10.9 years as of December 31, 2025 and 2024, respectively.

Future amortization expense related to such intangibles for the next five years and thereafter as of December 31, 2025 is as follows:


	Amortization Expense
2026	$	11,035
2027		11,035
2028		11,035
2029		11,035
2030		11,035
Thereafter		81,787
Total	$	136,962