Leases (Tables)

12 Months Ended

Dec. 31, 2019

Our operating and financing lease assets and liabilities are recorded on our balance sheet as of December 31, 2019 as follows:



	As of December 31, 2019
	Operating leases		Financing leases
Right of use asset:
Right of use assets from operating leases (1)	$	2,444	$	—
Plant, property and equipment, net (2)	—		1,659
Total lease assets	$	2,444	$	1,659
Lease liability:
Account payable and accrued liabilities	$	1,259	$	—
Long-term debt and financing leases, classified as current	—		432
Long-term debt and financing leases, less current maturities	—		1,221
Noncurrent operating lease obligations	917		—
Total lease liabilities	$	2,176	$	1,653

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(1) Consisted of a lease of office space.

(2) Consisted of leased fleet vehicles and office equipment.

Our income, expenses and cash flows related to our leases is as follows for the year ended December 31, 2019:



	Year ended
	December 31, 2019
Lease cost
Finance lease cost:
Amortization of right-of-use assets	$	2,073
Interest on lease liabilities	344
Operating lease cost	1,342
Short-term lease cost	780
Variable lease cost	253
Sublease income	(3,195		)
Total lease cost	$	1,597

Capitalized operating lease cost (1)	$	13,523

Other information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for finance leases	$	(344	)
Operating cash flows for operating leases	(1,610		)
Investing cash flows for operating leases	(9,448		)
Financing cash flows for finance leases	(2,102		)
Right-of-use assets obtained in exchange for new finance lease liabilities	1,911

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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
	December 31, 2019
Weighted-average remaining lease term - finance leases	3.6 years
Weighted-average remaining lease term - operating leases	1.7 years
Weighted-average discount rate - finance leases	6.67	%
Weighted-average discount rate - operating leases	8.72	%

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



	As of December 31, 2019				As of December 31, 2018 (1)
	Operating leases		Financing leases		Operating leases		Financing leases
2019	$	1,389	$	530	$	13,890	$	12,332
2020	941		530		1,330		—
2021	—		531		1,297		—
2022	—		226		278		—
2023	—		55		205		—
Thereafter	—		—		—		—
Total minimum lease payments	2,330		1,872		17,000		12,332
Less: imputed interest	154		219		*		*
Total lease liability	2,176		1,653		*		*
Less: current maturities of lease obligations	1,259		432		*		*
Noncurrent lease obligations	$	917	$	1,221	*		*

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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 December 31, 2019				As of December 31, 2018 (1)
	Operating leases		Financing leases		Operating leases		Financing leases
2019	$	1,389	$	530	$	13,890	$	12,332
2020	941		530		1,330		—
2021	—		531		1,297		—
2022	—		226		278		—
2023	—		55		205		—
Thereafter	—		—		—		—
Total minimum lease payments	2,330		1,872		17,000		12,332
Less: imputed interest	154		219		*		*
Total lease liability	2,176		1,653		*		*
Less: current maturities of lease obligations	1,259		432		*		*
Noncurrent lease obligations	$	917	$	1,221	*		*

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

* Disclosure not required under ASC 840.

In accordance with ASC 606, the disclosure of the impact of adoption on our income statement is as follows:



	Year ended December 31, 2018
	As reported		Balances without adoption of ASC 606			Effect of change
Revenues
Net commodity sales	$	242,569	$	258,845		$	16,276
Costs and expenses
Transportation and processing	$	—	$	(16,276	)	$	(16,276	)

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