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Asset Retirement Obligations

12 Months Ended

Jun. 30, 2024

Asset Retirement Obligations

Asset Retirement Obligations

Note 9. Asset Retirement Obligations

The Company’s ARO represents the estimated present value of the amount expected to be incurred to plug, abandon, and remediate its oil and natural gas properties at the end of their productive lives in accordance with applicable laws and

regulations. The Company records the ARO liability on the consolidated balance sheets and capitalizes the cost in “Oil and natural gas properties, net” during the period in which the obligation is incurred. The Company records the accretion of its ARO liabilities in “Depletion, depreciation and accretion” expense in the consolidated statements of operations.

​

The following is a reconciliation of the activity related to the Company’s ARO liability (inclusive of the current portion) for the years ended June 30, 2024 and 2023 (in thousands):

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​	​	​	​	​	​	​
		June 30, 2024			June 30, 2023
Asset retirement obligations — beginning of period	​	$	17,067	​	$	13,921
Liabilities incurred	​	​	28	​	​	57
Liabilities settled	​	​	(39)	​	​	(136)
Liabilities acquired(1)	​	​	90	​	​	—
Accretion of discount	​	​	1,457	​	​	1,131
Revisions of previous estimates(2)	​	​	808	​	​	2,094
Asset retirement obligations — end of period	​	​	19,411	​	​	17,067
Less: current asset retirement obligations	​	​	(202)	​	​	(55)
Long-term portion of asset retirement obligations	​	$	19,209	​	$	17,012

(1) See Note 3, “Acquisitions,” for additional information on the Company’s acquisition activities.

(2) Primarily related to upward revisions for increased cost estimates for the years ended June 30, 2024 and 2023.

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- References

No definition available.

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X

- Definition

The entire disclosure for an asset retirement obligation and the associated long-lived asset. An asset retirement obligation is a legal obligation associated with the disposal or retirement from service of a tangible long-lived asset that results from the acquisition, construction or development, or the normal operations of a long-lived asset, except for certain obligations of lessees.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 410
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481850/410-20-50-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 410
-SubTopic 20
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/410-20/tableOfContent

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-SubTopic 20
-Topic 410
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481850/410-20-50-2

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