Leases (Tables)

9 Months Ended

Sep. 30, 2019

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



	As of September 30, 2019
	Operating leases		Financing leases
Right of use asset:
Right of use assets from operating leases (1)	$	5,853	$	—
Plant, property and equipment, net (2)	—		1,478
Total lease assets	$	5,853	$	1,478
Lease liability:
Account payable and accrued liabilities	$	4,301	$	—
Long-term debt and financing leases, classified as current	—		381
Long-term debt and financing leases, less current maturities	—		1,106
Noncurrent operating lease obligations	1,239		—
Total lease liabilities	$	5,540	$	1,487

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(1) Consisted of leases on office space and drilling rigs.

(2) Consisted of leased fleet vehicles

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



	Three months ended			Nine months ended
	September 30, 2019			September 30, 2019
Lease cost
Finance lease cost:
Amortization of right-of-use assets	$	544		$	1,986
Interest on lease liabilities	87			317
Operating lease cost	205			821
Short-term lease cost	180			463
Variable lease cost	63			253
Sublease income	(799		)	(3,195		)
Total lease cost	$	280		$	645

Capitalized operating lease cost (1)	$	3,409		$	10,115

Other information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for finance leases	$	(87	)	$	(317	)
Operating cash flows for operating leases	(205		)	(821		)
Investing cash flows for operating leases	(3,510		)	(7,498		)
Financing cash flows for finance leases	(557		)	(2,002		)
Right-of-use assets obtained in exchange for new finance lease liabilities	256			1,643

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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
	September 30, 2019
Weighted-average remaining lease term - finance leases	3.6 years
Weighted-average remaining lease term - operating leases	1.0 year
Weighted-average discount rate - finance leases	6.29	%
Weighted-average discount rate - operating leases	10.97	%

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



	As of September 30, 2019				As of December 31, 2018 (1)
	Operating leases		Financing leases		Operating leases		Financing leases
2019	$	3,475	$	116	$	13,890	$	12,332
2020	1,389		464		1,330		—
2021	941		464		1,297		—
2022	—		464		278		—
2023	—		160		205		—
Thereafter	—		—		—		—
Total minimum lease payments	5,805		1,668		17,000		12,332
Less: imputed interest	265		181		*		*
Total lease liability	5,540		1,487		*		*
Less: current maturities of lease obligations	4,301		381		*		*
Noncurrent lease obligations	$	1,239	$	1,106	*		*

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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 September 30, 2019				As of December 31, 2018 (1)
	Operating leases		Financing leases		Operating leases		Financing leases
2019	$	3,475	$	116	$	13,890	$	12,332
2020	1,389		464		1,330		—
2021	941		464		1,297		—
2022	—		464		278		—
2023	—		160		205		—
Thereafter	—		—		—		—
Total minimum lease payments	5,805		1,668		17,000		12,332
Less: imputed interest	265		181		*		*
Total lease liability	5,540		1,487		*		*
Less: current maturities of lease obligations	4,301		381		*		*
Noncurrent lease obligations	$	1,239	$	1,106	*		*

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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