Asset retirement obligations

12 Months Ended

Dec. 31, 2023

Asset Retirement Obligation Disclosure [Abstract]

The Company recognizes the fair value of its asset retirement obligations related to the future costs of plugging, abandonment, and remediation of oil and natural gas producing properties at the times the obligations are incurred. Upon initial recognition of a liability, that cost is capitalized as part of the related oil and natural gas properties and allocated to expense over the useful life of the asset. Our asset retirement obligations primarily represent the present value of the estimated amount we will incur to plug, abandon and remediate our proved producing properties at the end of their productive lives, in accordance with applicable state laws.

The following table presents the changes in the asset retirement obligations during the years ended December 31, 2023, 2022 and 2021:


	Year Ended December 31,
(in thousands)	2023		2022		2021
Asset retirement obligations, beginning of year	$	4,963	$	2,962	$	3,114
Liabilities incurred during the period	2,370		1,012		465
Revision of estimates (1)	2,596		490		(868)
Accretion of discount during the period	441		499		447
Disposals or settlements	(496)		—		(196)
Asset retirement obligations, end of year	$	9,874	$	4,963	$	2,962
Less current portion of asset retirement obligations	483		218		—
Asset retirement obligations, long-term	$	9,391	$	4,745	$	2,962

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(1)Revisions in estimated liabilities during 2023 relate primarily to changes in estimated well lives, while revisions in prior year relate primarily to changes in estimates of asset retirement costs.