Quarterly report pursuant to Section 13 or 15(d)

PROPERTY AND EQUIPMENT

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PROPERTY AND EQUIPMENT
 3 Months Ended
Mar. 31, 2024
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT PROPERTY AND EQUIPMENT
The major categories of property and equipment and related accumulated DD&A are as follows (in thousands):
March 31, 2024 December 31, 2023
Proved oil and natural gas properties $ 3,033,571  $ 2,904,519 
Unproved properties 207,644  204,233 
Other depreciable property and equipment 9,598  8,779 
Land 386  386 
Total property and equipment 3,251,199  3,117,917 
Accumulated DD&A (945,646) (865,618)
Property and equipment, net $ 2,305,553  $ 2,252,299 
Under the full cost method of accounting, the Company is required to perform a ceiling test each quarter. The test determines a limit, or ceiling, on the book value of the Company's oil and natural gas properties. At March 31, 2024 and 2023, the net book value of the Company's oil and gas properties was below the calculated ceiling. As a result, the Company did not record an impairment of its oil and natural gas properties for the three months ended March 31, 2024 or 2023.
Lower natural gas, oil and NGL prices can reduce the value of the Company’s assets. In addition to commodity prices, the Company’s production rates, levels of proved reserves, future development costs, transfers of unevaluated properties and other factors will determine its actual ceiling test calculation and impairment analysis in future periods. Given the decline of commodity prices in 2023 and 2024, non-cash impairments in future periods could occur if the trailing 12-month commodity prices decrease as compared to the average used in prior periods.
Certain general and administrative costs are capitalized to the full cost pool and represent management’s estimate of costs incurred directly related to exploration and development activities. All general and administrative costs not capitalized are charged to expense as they are incurred. Capitalized general and administrative costs were approximately $5.7 million and $5.1 million for the three months ended March 31, 2024 and 2023, respectively.
The Company evaluates the costs excluded from its amortization calculation at least annually. Individually insignificant unevaluated properties are grouped for evaluation and periodically transferred to evaluated properties over a timeframe consistent with their expected development schedule.
The following table summarizes the Company’s non-producing properties excluded from amortization by area (in thousands):
March 31, 2024 December 31, 2023
Utica & Marcellus $ 182,034  $ 177,888 
SCOOP 25,610  26,345 
Total unproved properties $ 207,644  $ 204,233 
Asset Retirement Obligation
The following table provides a reconciliation of the Company’s asset retirement obligation for the three months ended March 31, 2024 and 2023 (in thousands):
Three Months Ended March 31, 2024 Three Months Ended March 31, 2023
Asset retirement obligation, beginning of period $ 29,941  $ 33,171 
Liabilities incurred 214  — 
Liabilities settled —  (165)
Liabilities removed due to divestitures —  (919)
Accretion expense 555  764 
Total asset retirement obligation, end of period $ 30,710  $ 32,851