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Commitments and Contingencies | 3 Months Ended
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Mar. 31, 2025
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies | Commitments and Contingencies South Bend Utica Farmout Agreement. On March 2, 2018, the Company entered into an Exploration and Development Agreement and Farm Out Agreement (collectively, the “South Bend Utica Development Agreements”) with Dominion Energy Transmission, Inc. (“Dominion”) covering approximately 11,000 acres in Armstrong and Indiana Counties, Pennsylvania targeting the Utica Shale horizon. This acreage underpins our acreage position at South Bend for Utica development. The South Bend Utica Development Agreements had an initial term of 15 years and require the drilling of one (1) seven thousand foot lateral into the Utica formation. As of March 31, 2025, the Company had yet to satisfy that obligation and has approximately 9 years remaining to meet its obligation. Firm Transportation. The Company has entered into long-term physical gas sales with BP to move volumes at South Bend. The terms of the agreement supported 25,000 decatherm per day through March 2029. Maximum Daily Quantity. The Company has commitments from an existing contract with Eureka Midstream for guaranteed pipeline capacity up to a maximum daily quantity (MDQ) of 15,000 decatherm per day expiring October 2025. In connection with this contract we have a minimum reservation fee and gathering fee based on the MDQ of 15,000 decatherm per day. Minimum Volume Commitment. The Company has minimum volume commitments under an existing contract with Ohio Gathering Company. The terms of the agreement supported an average of 10,600 decatherm per day through 2030. The following table summarizes our future commitments related to these oil and natural gas transportation and gathering agreements as of March 31, 2025:
| As of March 31, 2025
| Remainder 2025 |  | 2026 |  | 2027 |  | 2028 |  | 2029 and thereafter |  | Total
(in thousands) |  |  |  |  |  |  |  |  |  |  |
Firm Transportation | $ | 671 |  | 894 |  | 894 |  | 894 |  | 225 |  | $ | 3,577
Maximum Daily Quantity | 511 |  | — |  | — |  | — |  | — |  | 511
Minimum Volume Commitment | 4,453 |  | 8,964 |  | 8,964 |  | 8,988 |  | 15,743 |  | 47,112
Total minimum future commitments | $ | 5,635 |  | 9,858 |  | 9,858 |  | 9,882 |  | 15,968 |  | $ | 51,200
Drilling Rig Service Commitments. We entered into a third amendment to our September 2023 drilling contract with Patterson-UTI Energy, Inc. (“Patterson”) in January 2025 to drill eight (8) horizontal lateral wells. The Company has drilled one (1) well as of March 31, 2025 associated with this contract. In the event that we elected to not drill the remaining seven (7) wells under that amendment, the Company would have a minimum payment of $3.2 million. We entered into an additional drilling contract with Patterson for a separate drilling rig in January 2025 to drill four (4) horizontal lateral wells. The Company has drilled two (2) wells as of March 31, 2025 associated with this contract. In the event that we elected to not drill the remaining two (2) wells under that amendment, the Company would have a minimum payment of $0.9 million. Lease Commitments. We do not have any finance lease obligations. Litigation. From time to time, the Company is party to various legal and/or regulatory proceedings arising in the ordinary course of business. While the ultimate outcome and impact to us cannot be predicted with certainty, we believe that all such matters are without merit and involve amounts which, if resolved unfavorably, either individually or in the aggregate, will not have a material effect on our financial condition, results of operations or cash flows. When it is determined that a loss is probable of occurring and is reasonably estimable, we accrue an undiscounted liability for such contingencies based on our best estimate using information available at the time. The Company discloses contingencies where an adverse outcome may be material, or in the judgment of management, the matter should otherwise be disclosed.

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