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Leases

9 Months Ended

Sep. 30, 2025

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 September 30, 2025 and 2024, and cash paid for right-of-use lease was approximately $0.1 million for the same respective periods. Right-of-use lease expense was approximately $0.4 million for both the nine months ended September 30, 2025 and 2024, respectively, and cash paid for right-of-use lease was approximately $0.3 million and $0.4 million for the same periods.

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


	September 30,		December 31,
	2025		2024
Net operating lease asset (included in Other property and equipment, net)	$	428	$	604

Current portion of lease liability	$	330	$	400
Long-term lease liability		61		144
Total right-of-use lease liabilities	$	391	$	544

The weighted-average remaining term for Empire’s right-of-use leases is 1.16 years, and the weighted-average discount rate is 7.72% as of the third quarter of 2025.

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


	September 30,
	2025
Year 1	$	346
Year 2		62
Year 3		—
Year 4		—
Year 5		—
Total lease payments		408
Less: imputed interest		(17)
Total lease obligation	$	391