Asset Retirement Obligations

12 Months Ended

Dec. 31, 2023

Asset Retirement Obligation Disclosure [Abstract]

ASSET RETIREMENT OBLIGATIONS

The asset retirement obligation ("ARO") liability reflects the present value of estimated costs of dismantlement, removal, site reclamation, and similar activities associated with the Partnership’s working interest oil and natural gas properties. The Partnership utilizes current retirement costs to estimate the expected cash outflows for retirement obligations. The Partnership estimates the ultimate productive life of the properties, a credit-adjusted risk-free rate, and an inflation factor in order to determine the current present value of this obligation. To the extent future revisions to these assumptions impact the present value of the existing ARO liability, a corresponding adjustment is made to the oil and natural gas property balance.

The following table describes changes to the Partnership’s ARO liability for the periods presented:


	For the year ended December 31,
	2023		2022
	(in thousands)
Beginning asset retirement obligations	$	16,019	$	13,284
Liabilities incurred	174		124
Liabilities settled	(98)		(294)
Accretion expense	1,042		861
Revisions in estimated costs	3,130		2,044
Dispositions	—		—
Ending asset retirement obligations	$	20,267	$	16,019
Current asset retirement obligations	$	1,237	$	989
Non-current asset retirement obligations	$	19,030	$	15,030