Natural Gas Properties & Other Property and Equipment

6 Months Ended

Jun. 30, 2026

Property, Plant, and Equipment [Abstract]

Natural Gas Properties & Other Property and Equipment

Note 4 - Natural Gas Properties & Other Property, Plant, and Equipment

As of June 30, 2026 and December 31, 2025, accumulated depreciation, depletion, and amortization for developed natural gas properties was $895.1 million and $825.7 million, respectively. Depreciation, depletion, and amortization expense for developed natural gas properties was $35.9 million and $30.7 million for the three months ended June 30, 2026 and 2025, respectively, and $69.4 million and $62.5 million for the six months ended June 30, 2026 and 2025, respectively.

As of June 30, 2026 and December 31, 2025, accumulated depreciation for midstream assets was $27.0 million and $23.8 million, respectively. Depreciation expense on midstream assets was $1.6 million for both the three months ended June 30, 2026 and 2025, and $3.3 million and $3.2 million for the six months ended June 30, 2026 and 2025, respectively.

Other property, plant, and equipment consisted of the following:


(in thousands)	June 30, 2026		December 31, 2025
Plant facility	$	928,987	$	926,092
Carbon capture, utilization, and sequestration	138,746		114,261
Buildings	6,746		6,746
Furniture, fixtures, equipment, and vehicles	26,446		27,643
Computer software	8,637		8,461
Leasehold improvements	1,685		1,685
Land	127,766		8,090
Construction in process	35,570		6,350
Total	1,274,583		1,099,328
Accumulated depreciation	(178,467)		(154,916)
Other property, plant, and equipment, net	$	1,096,116	$	944,412

Depreciation expense for other property, plant, and equipment was $11.2 million and $11.1 million for the three months ended June 30, 2026 and 2025, respectively, and $24.4 million and $22.4 million for the six months ended June 30, 2026 and 2025, respectively. During the three months ended June 30, 2026 and 2025, the Company received proceeds on the sales of other properties of $0.3 million and $0.2 million, respectively and recognized a gain on sale of these properties of $0.3 million and $0.1 million, respectively. During the six months ended June 30, 2026 and 2025, the Company received proceeds on the sale of other properties of $0.5 million and $1.3 million, respectively, and recognized a gain on sale of these properties of $0.4 million and $1.2 million, respectively. The gain on sale of other property, plant, and equipment is included in other in the condensed consolidated statements of income.

Impairment of Asset Held for Sale

During the six months ended June 30, 2025, the Company classified its field office in Bridgeport, Texas as held for sale and recognized an impairment of $2.4 million based on an estimated selling price of $5.5 million, which was included in other within total revenues and other operating income in the condensed consolidated statements of income. The Company completed the sale of the field office in the third quarter of 2025 for proceeds of $5.5 million, resulting in no further gain or loss.

During the three months ended June 30, 2026, the Company entered into an agreement with a third party to sell its CO2 storage lease interests located in Liberty and Chambers Counties, Texas and classified these assets as held for sale within other current assets on the condensed consolidated balance sheets. The Company recognized an impairment on the assets of $3.5 million using an estimated selling price of $2.6 million, which was included in other within total revenues and other operating income in the condensed consolidated statements of income.

Asset Retirement Obligations

The following table summarizes the activities of the Company's asset retirement obligations:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2026		2025		2026		2025
Balance, beginning of period	$	201,774	$	204,186	$	233,339	$	201,158

Liabilities incurred	69		45		109		80
Liabilities settled	(374)		(180)		(822)		(803)

Revisions of estimates(1)	—		—		(35,172)		—
Accretion of discount	3,642		3,671		7,657		7,287
Balance, end of period	205,111		207,722		205,111		207,722
Less current portion	(4,507)		(3,391)		(4,507)		(3,391)
Asset retirement obligations, long-term	$	200,604	$	204,331	$	200,604	$	204,331

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(1) Revisions of estimates are due to reductions of expected plugging and abandonment cost per well for all Barnett operated properties.