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Leases | 6 Months Ended
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Jun. 30, 2026
Leases [Abstract] |
Leases | Note 4 — Leases The Company has operating leases principally for office space, drilling rigs and other equipment necessary to support the Company’s operations. Costs associated with the Company’s leases are either expensed or capitalized depending on how the underlying asset is utilized. Additionally, the Company has a finance lease and the right-of-use (“ROU”) asset was capitalized and included in proved properties and is being depleted as part of the full cost pool. The lease costs described below are presented on a gross basis and do not represent the Company’s net proportionate share of such amounts. A portion of these costs have been or may be billed to other working interest owners. The Company’s share of these costs is included in property and equipment, lease operating expense or general and administrative expense, as applicable. The components of lease costs were as follows (in thousands):
| Three Months Ended June 30, |  | Six Months Ended June 30, |
| 2026 |  | 2025 |  | 2026 |  | 2025 |
Finance lease costs - interest on lease liabilities | $ | 2,385 |  | $ | 2,848 |  | $ | 4,863 |  | $ | 5,775 |
Operating lease costs, excluding short-term leases(1) |  | 903 |  |  | 1,081 |  |  | 1,806 |  |  | 2,156 |
Short-term lease costs(2) |  | 791 |  |  | 29,995 |  |  | 35,897 |  |  | 70,108 |
Variable lease costs(3) |  | 670 |  |  | 667 |  |  | 1,340 |  |  | 1,334 |
Variable and fixed sublease income |  | (403 | ) |  | (396 | ) |  | (800 | ) |  | (793 | )
Total lease costs | $ | 4,346 |  | $ | 34,195 |  | $ | 43,106 |  | $ | 78,580 |
(1) Operating lease costs reflect a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a straight-line basis. (2) Short-term lease costs are reported at gross amounts and primarily represent costs incurred for drilling rigs and well intervention vessels, most of which are short-term contracts not recognized as a ROU asset and lease liability on the Condensed Consolidated Balance Sheets. The short-term operating lease costs incurred during the periods presented are not necessarily indicative of the Company’s future short-term lease costs and obligations, as it routinely executes short-term contracts for the use of drilling rigs to support its drilling activities. Short-term lease costs for drilling rigs can vary significantly based on the timing of the drilling program. Market conditions can also contribute to the volatility and variability of short-term drilling rig lease costs. (3) Variable lease costs primarily represent differences between minimum payment obligations and actual operating charges incurred by the Company related to its long-term leases. The present value of the fixed lease payments recorded as the Company’s ROU asset and lease liability, adjusted for initial direct costs and incentives were as follows (in thousands):
| June 30, 2026 |  | December 31, 2025 |
Operating leases: |  |  |  |
Operating lease assets | $ | 8,345 |  | $ | 9,214 |
Current portion of operating lease liabilities | $ | 3,872 |  | $ | 3,657 |
Operating lease liabilities |  | 10,051 |  |  | 11,956 |
Total operating lease liabilities | $ | 13,923 |  | $ | 15,613 |
Finance leases: |  |  |  |
Proved properties | $ | 166,261 |  | $ | 166,261 |
Other current liabilities | $ | 22,472 |  | $ | 21,473 |
Other long-term liabilities |  | 78,641 |  |  | 90,169 |
Total finance lease liabilities | $ | 101,113 |  | $ | 111,642 |
The table below presents the supplemental cash flow information related to leases (in thousands):
| Six Months Ended June 30, |
| 2026 |  | 2025 |
Operating cash outflow from finance leases | $ | 4,863 |  | $ | 5,775 |
Operating cash outflow from operating leases | $ | 2,611 |  | $ | 2,969 |
Subsequent Event — On July 1, 2026, the Company entered into a 365-day minimum commitment vessel contract for approximately $160.0 million. The Company plans to utilize the vessel for certain Deepwater drilling and completion operations commencing in mid-2027. Other joint owners, to the extent they elect to participate, will be billed for their working interest share of such costs.

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- Definition The entire disclosure for operating and finance leases of lessee. Includes, but is not limited to, description of lessee's operating and finance lease and maturity analysis of lease liability. + References No definition available. + Details
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