Leases (Tables)

6 Months Ended

Jun. 30, 2019

Our operating lease and financing lease assets and liabilities are recorded on our balance sheet as of June 30, 2019 as follows:



	As of June 30, 2019
	Operating leases		Financing leases
Right of use asset:
Right of use assets from operating leases	$	9,005	$	—
Plant, property and equipment, net (1)	—		11,456
Total lease assets	$	9,005	$	11,456
Lease liability:
Account payable and accrued liabilities	$	6,930	$	—
Long-term debt and financing leases, classified as current	—		10,617
Long-term debt and financing leases, less current maturities	—		1,003
Noncurrent operating lease obligations	2,075		—
Total lease liabilities	$	9,005	$	11,620

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(1)	CO₂ compressors included in Machinery and equipment and fleet vehicles included in automobiles and trucks. See “Note 1: Nature of operations and summary of significant accounting policies.”

Our income, expenses and cash flows related to our leases is as follows for the three and six months ended June 30, 2019:



	Three months ended			Six months ended
	June 30, 2019			June 30, 2019
Lease cost
Finance lease cost:
Amortization of right-of-use assets	$	749		$	1,442
Interest on lease liabilities	117			230
Operating lease cost	308			616
Short-term lease cost	154			283
Variable lease cost	95			190
Sublease income	(1,198		)	(2,396		)
Total lease cost	$	225		$	365

Capitalized operating lease cost (1)	$	3,371		$	6,706

Other information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for finance leases	$	(117	)	$	(230	)
Operating cash flows for operating leases	(308		)	(616		)
Investing cash flows for operating leases	(2,965		)	(3,988		)
Financing cash flows for finance leases	(746		)	(1,445		)
Right-of-use assets obtained in exchange for new finance lease liabilities	717			1,387

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(1)	The operating lease cost are related to drilling rigs and are capitalized as part of oil and natural gas properties on our balance sheets.



	As of
	June 30, 2019
Weighted-average remaining lease term - finance leases	0.7 years
Weighted-average remaining lease term - operating leases	1.2 years
Weighted-average discount rate - finance leases	4.08	%
Weighted-average discount rate - operating leases	13.33	%

Our lease payments for each of the next five years and thereafter are as follows:



	As of June 30, 2019				As of December 31, 2018 (1)
	Operating leases		Financing leases		Operating leases		Financing leases
2019	$	6,877	$	10,633	$	13,890	$	12,332
2020	1,233		392		1,330		—
2021	1,292		392		1,297		—
2022	274		392		278		—
2023	205		116		205		—
Thereafter	—		—		—		—
Total minimum lease payments	9,881		11,925		17,000		12,332
Less: imputed interest	876		305		*		*
Total lease liability	9,005		11,620		*		*
Less: current maturities of lease obligations	6,930		10,617		*		*
Noncurrent lease obligations	$	2,075	$	1,003	*		*

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(1)	Represents undiscounted firm commitments as of December 31, 2018

* Disclosure not required under ASC 840.

Our lease payments for each of the next five years and thereafter are as follows:



	As of June 30, 2019				As of December 31, 2018 (1)
	Operating leases		Financing leases		Operating leases		Financing leases
2019	$	6,877	$	10,633	$	13,890	$	12,332
2020	1,233		392		1,330		—
2021	1,292		392		1,297		—
2022	274		392		278		—
2023	205		116		205		—
Thereafter	—		—		—		—
Total minimum lease payments	9,881		11,925		17,000		12,332
Less: imputed interest	876		305		*		*
Total lease liability	9,005		11,620		*		*
Less: current maturities of lease obligations	6,930		10,617		*		*
Noncurrent lease obligations	$	2,075	$	1,003	*		*

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(1)	Represents undiscounted firm commitments as of December 31, 2018

* Disclosure not required under ASC 840.

In accordance with ASC 842, the disclosure of the impact of adoption on our balance statement is as follows:



	As of January 1, 2019
	Balances upon adoption		Balances without adoption of ASC 842		Effect of change
Assets
Right of use asset from operating leases, net	$	14,999	$	—	$	14,999
Liabilities
Accounts payable and accrued liabilities	12,467		—		12,467
Noncurrent operating lease obligation	2,532		—		2,532