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Leases
 6 Months Ended
Jun. 30, 2025
Leases  
Leases

Note 9 - Leases

 

As a lessee, the Company leases its corporate office headquarters in Tulsa, Oklahoma, and one field office. The leases expire between 2025 and 2027. The corporate office has an option to renew for an additional five-year term. The option to renew the lease is generally not considered reasonably certain to be exercised. Therefore, the period covered by such optional period is not included in the determination of the term of the lease and the lease payments during these periods are similarly excluded from the calculation of right-of-use lease asset and lease liability balances.

 

The Company also leases vehicles primarily used in our field operations. These vehicle leases typically have a three-year life.

 

 

 

The Company recognizes right-of-use lease expense on a straight-line basis, except for certain variable expenses that are recognized when the variability is resolved, typically during the period in which they are paid. Variable right-of-use lease payments typically include charges for property taxes, insurance, and variable payments related to non-lease components, including common area maintenance.

 

Right-of-use lease expense was approximately $0.1 million for both the three months ended June 30, 2025 and 2024, and cash paid for right-of-use lease was approximately $0.1 million for the same periods. Right-of-use lease expense was approximately $0.2 million and $0.3 million for the six months ended June 30, 2025 and 2024, respectively, and cash paid for right-of-use lease was approximately $0.2 million and $0.3 million for the same periods.

 

Supplemental balance sheet information related to the right-of-use leases is as follows: 

 

   June 30,   December 31, 
   2025   2024 
         
Net operating lease asset (included in Other property and equipment, net)  $383   $604 
           
Current portion of lease liability  $300   $400 
Long-term lease liability   39    144 
Total right-of-use lease liabilities  $339   $544 

 

 

The weighted-average remaining term for Empire’s right-of-use leases is 1.02 years, and the weighted-average discount rate is 8.43% as of the second quarter of 2025.

 

 

Maturities of lease liabilities are as follows as of the date presented:

  

     June 30, 
     2025 
Year 1    $315 
Year 2     40 
Year 3     — 
Year 4     — 
Year 5     — 
Total lease payments     355 
Less: imputed interest     (16)
Total lease obligation    $339