Restructuring Costs

3 Months Ended

Mar. 31, 2026

Restructuring and Related Activities [Abstract]

Note 13 - Restructuring Costs

During the first quarter of 2026, in connection with the Civitas Merger, the Company announced workforce reductions to better align staffing levels and the organizational structure with the Company’s strategy. During the three months ended March 31, 2026, the Company incurred total restructuring costs of $97 million which are included in general and administrative (“G&A”) expense in the accompanying statements of operations. The restructuring costs represent a component of one-time Civitas Merger integration costs. These one-time termination benefits are primarily related to employee severance and retention and accelerated vesting of stock-based compensation awards. The Company expects to incur an additional $24 million of restructuring costs related to the Civitas Merger and anticipates that substantially all such costs will be incurred and paid during 2026.

The following table summarizes restructuring cost activity during the three months ended March 31, 2026, and the Company’s restructuring cost liabilities included in accounts payable and accrued expenses line item in the accompanying balance sheets as of the periods presented:


	(in millions)
Balance as of December 31, 2025	$	—
Restructuring costs incurred (1)	97
Restructuring costs paid	(74)
Balance as of March 31, 2026	$	23

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(1) Restructuring costs incurred does not include $21 million of other G&A integration costs comprised of one-time systems integration, advisory, and legal expenses, and salaries paid to transition employees.