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LEASES | 12 Months Ended
--- | ---
Dec. 31, 2025
Leases [Abstract] |
LEASES | 17. LEASES The Company leases certain office space and equipment under operating leases. The Company leases office space for terms of between 3 and 10 years. Office space leases limit exposure to risks related to ownership, such as fluctuations in real estate prices. The Company leases equipment primarily to support its operations in response to the needs of its gathering systems for terms of between 3 and 4 years. The Company also leases vehicles under finance leases to support its operations in response to the needs of its gathering systems for a term of 3 years. Some of the Company’s leases are subject to annual escalations relating to the Consumer Price Index (“CPI”). While lease liabilities are not remeasured as a result of changes to the CPI, changes to the CPI are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. Significant assumptions or judgments include the determination of whether a contract contains a lease and the discount rate used in the lease liabilities. Often, the rates implicit in the lease contracts are not readily determinable. In determining the discount rate used for lease liabilities, the Company analyzed certain factors in its incremental borrowing rate, including collateral assumptions and the term used. As of December 31, 2025 the Company’s weighted average discount rate for it’s operating leases and finance leases was 6% and 7%, respectively. Right of Use (“ROU”) assets (included in other noncurrent assets on the Company’s consolidated balance sheet) and lease liabilities (included in Other current liabilities and Other noncurrent liabilities on the Company’s consolidated balance sheet) follow:
| December 31, 2025 |  | December 31, 2024
| (In thousands)
ROU assets |  |  |
Operating | $ | 5,068 |  |  | $ | 8,513 |
Finance | 3,514 |  |  | 3,861 |
| $ | 8,582 |  |  | $ | 12,374 |
Lease liabilities, current |  |  |
Operating | $ | 1,534 |  |  | $ | 5,801 |
Finance | 1,412 |  |  | 1,382 |
| $ | 2,946 |  |  | $ | 7,183 |
Lease liabilities, noncurrent |  |  |
Operating | $ | 3,590 |  |  | $ | 3,390 |
Finance | 1,414 |  |  | 1,560 |
| $ | 5,004 |  |  | $ | 4,950 |
Lease cost and other information follow:
| Year ended December 31,
| 2025 |  | 2024 |  | 2023
| (In thousands)
Lease cost |  |  |  |  |
Finance lease cost: |  |  |  |  |
Amortization of ROU assets (included in depreciation and amortization) | $ | 1,459 |  |  | $ | 1,186 |  |  | $ | 686 |
Interest on lease liabilities (included in interest expense) | 159 |  |  | 156 |  |  | 62 |
Operating lease cost (included in general and administrative expense) | 643 |  |  | 916 |  |  | 1,999 |
| $ | 2,261 |  |  | $ | 2,258 |  |  | $ | 2,747 |
| Year ended December 31,
| 2025 |  | 2024 |  | 2023
| (In thousands)
Other information |  |  |  |  |
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |  |
Operating cash outflows from operating leases | $ | 6,607 |  | $ | 3,328 |  | $ | 3,975
Operating cash outflows from finance leases | 159 |  | 156 |  | 62
Financing cash outflows from finance leases | 1,412 |  | 1,148 |  | 610
ROU assets obtained in exchange for new operating lease liabilities | 2,363 |  | 3,882 |  | 3,516
ROU assets obtained in exchange for new finance lease liabilities | 2,303 |  | 1,781 |  | 1,238
Weighted-average remaining lease term (years) - operating leases | 7.3 |  | 2.2 |  | 3.6
Weighted-average remaining lease term (years) - finance leases | 2.2 |  | 2.3 |  | 2.5
Weighted-average discount rate - operating leases | 6% |  | 7% |  | 6%
Weighted-average discount rate - finance leases | 7% |  | 6% |  | 5%
The Company recognizes total lease expense incurred or allocated to us in general and administrative expenses. Lease expense related to operating leases, including lease expense incurred on the Company’s behalf and allocated to us, was as follows:
| Year ended December 31,
| 2025 |  | 2024 |  | 2023
| (In thousands)
Lease expense | $ | 18,469 |  |  | $ | 6,179 |  |  | $ | 5,898 |
Future minimum lease payments due under noncancelable leases as of December 31, 2025, were as follows:
| December 31, 2025
| (In thousands)
| Operating |  | Finance
2026 | $ | 2,000 |  |  | $ | 1,398 |
2027 | 1,881 |  |  | 973 |
2028 | 389 |  |  | 427 |
2029 | 443 |  |  | 34 |
2030 | 208 |  |  | — |
Thereafter | 1,742 |  |  | — |
Total future minimum lease payments | $ | 6,663 |  |  | $ | 2,832 |
LEASES | 17. LEASES The Company leases certain office space and equipment under operating leases. The Company leases office space for terms of between 3 and 10 years. Office space leases limit exposure to risks related to ownership, such as fluctuations in real estate prices. The Company leases equipment primarily to support its operations in response to the needs of its gathering systems for terms of between 3 and 4 years. The Company also leases vehicles under finance leases to support its operations in response to the needs of its gathering systems for a term of 3 years. Some of the Company’s leases are subject to annual escalations relating to the Consumer Price Index (“CPI”). While lease liabilities are not remeasured as a result of changes to the CPI, changes to the CPI are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. Significant assumptions or judgments include the determination of whether a contract contains a lease and the discount rate used in the lease liabilities. Often, the rates implicit in the lease contracts are not readily determinable. In determining the discount rate used for lease liabilities, the Company analyzed certain factors in its incremental borrowing rate, including collateral assumptions and the term used. As of December 31, 2025 the Company’s weighted average discount rate for it’s operating leases and finance leases was 6% and 7%, respectively. Right of Use (“ROU”) assets (included in other noncurrent assets on the Company’s consolidated balance sheet) and lease liabilities (included in Other current liabilities and Other noncurrent liabilities on the Company’s consolidated balance sheet) follow:
| December 31, 2025 |  | December 31, 2024
| (In thousands)
ROU assets |  |  |
Operating | $ | 5,068 |  |  | $ | 8,513 |
Finance | 3,514 |  |  | 3,861 |
| $ | 8,582 |  |  | $ | 12,374 |
Lease liabilities, current |  |  |
Operating | $ | 1,534 |  |  | $ | 5,801 |
Finance | 1,412 |  |  | 1,382 |
| $ | 2,946 |  |  | $ | 7,183 |
Lease liabilities, noncurrent |  |  |
Operating | $ | 3,590 |  |  | $ | 3,390 |
Finance | 1,414 |  |  | 1,560 |
| $ | 5,004 |  |  | $ | 4,950 |
Lease cost and other information follow:
| Year ended December 31,
| 2025 |  | 2024 |  | 2023
| (In thousands)
Lease cost |  |  |  |  |
Finance lease cost: |  |  |  |  |
Amortization of ROU assets (included in depreciation and amortization) | $ | 1,459 |  |  | $ | 1,186 |  |  | $ | 686 |
Interest on lease liabilities (included in interest expense) | 159 |  |  | 156 |  |  | 62 |
Operating lease cost (included in general and administrative expense) | 643 |  |  | 916 |  |  | 1,999 |
| $ | 2,261 |  |  | $ | 2,258 |  |  | $ | 2,747 |
| Year ended December 31,
| 2025 |  | 2024 |  | 2023
| (In thousands)
Other information |  |  |  |  |
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |  |
Operating cash outflows from operating leases | $ | 6,607 |  | $ | 3,328 |  | $ | 3,975
Operating cash outflows from finance leases | 159 |  | 156 |  | 62
Financing cash outflows from finance leases | 1,412 |  | 1,148 |  | 610
ROU assets obtained in exchange for new operating lease liabilities | 2,363 |  | 3,882 |  | 3,516
ROU assets obtained in exchange for new finance lease liabilities | 2,303 |  | 1,781 |  | 1,238
Weighted-average remaining lease term (years) - operating leases | 7.3 |  | 2.2 |  | 3.6
Weighted-average remaining lease term (years) - finance leases | 2.2 |  | 2.3 |  | 2.5
Weighted-average discount rate - operating leases | 6% |  | 7% |  | 6%
Weighted-average discount rate - finance leases | 7% |  | 6% |  | 5%
The Company recognizes total lease expense incurred or allocated to us in general and administrative expenses. Lease expense related to operating leases, including lease expense incurred on the Company’s behalf and allocated to us, was as follows:
| Year ended December 31,
| 2025 |  | 2024 |  | 2023
| (In thousands)
Lease expense | $ | 18,469 |  |  | $ | 6,179 |  |  | $ | 5,898 |
Future minimum lease payments due under noncancelable leases as of December 31, 2025, were as follows:
| December 31, 2025
| (In thousands)
| Operating |  | Finance
2026 | $ | 2,000 |  |  | $ | 1,398 |
2027 | 1,881 |  |  | 973 |
2028 | 389 |  |  | 427 |
2029 | 443 |  |  | 34 |
2030 | 208 |  |  | — |
Thereafter | 1,742 |  |  | — |
Total future minimum lease payments | $ | 6,663 |  |  | $ | 2,832 |

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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