Leases

3 Months Ended

Mar. 31, 2020

We currently have financing leases that consist of fleet trucks and office equipment and an operating lease for the office space housing our headquarters. Please see “Note 17: Leases” in “Item 8. Financial Statements and Supplementary Data” of our Annual Report on Form 10-K for the year ended December 31, 2019, for a discussion of these leases. We also have short term leases, which are those with lease terms of 12 months or less, and generally consist of wellhead compressors and drilling rigs with terms ranging from one month to six months. We do not recognize right of use assets or lease liabilities for leases with durations of 12 months or less.

Lease assets and liabilities

Our operating lease and financing lease assets and liabilities are recorded on our balance sheet as of March 31, 2020 as:



	As of March 31, 2020
	Operating leases		Financing leases
Right of use asset:
Right of use assets from operating leases	$	2,097	$	—
Plant, property and equipment, net	—		1,542
Total lease assets	$	2,097	$	1,542
Lease liability:
Account payable and accrued liabilities	$	1,295	$	—
Long-term debt and financing leases, classified as current	—		439
Long-term debt and financing leases, less current maturities	—		1,110
Noncurrent operating lease obligations	579		—
Total lease liabilities	$	1,874	$	1,549

Our income, expenses and cash flows related to our leases is as follows:



	Three months ended
	March 31, 2020			March 31, 2019
Lease cost
Finance lease cost:
Amortization of right-of-use assets	$	117		$	693
Interest on lease liabilities	27			113
Operating lease cost	390			308
Short-term lease cost	218			129
Variable lease cost	—			95
Sublease income	—			(1,198		)
Total lease cost	$	752		$	140

Capitalized operating lease cost (1)	$	—		$	3,335

Other information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for finance leases	$	(27	)	$	(113	)
Operating cash flows for operating leases	(345		)	(308		)
Investing cash flows for operating leases	—			(1,023		)
Financing cash flows for finance leases	(105		)	(699		)
Right-of-use assets obtained in exchange for new finance lease liabilities	—			670

________________________________


(1)	The operating lease cost is related to drilling rigs with terms longer than 30 days and is capitalized as part of oil and natural gas properties on our balance sheets.

Leases

Lease assets and liabilities

Our operating lease and financing lease assets and liabilities are recorded on our balance sheet as of March 31, 2020 as:



	As of March 31, 2020
	Operating leases		Financing leases
Right of use asset:
Right of use assets from operating leases	$	2,097	$	—
Plant, property and equipment, net	—		1,542
Total lease assets	$	2,097	$	1,542
Lease liability:
Account payable and accrued liabilities	$	1,295	$	—
Long-term debt and financing leases, classified as current	—		439
Long-term debt and financing leases, less current maturities	—		1,110
Noncurrent operating lease obligations	579		—
Total lease liabilities	$	1,874	$	1,549

Our income, expenses and cash flows related to our leases is as follows:



	Three months ended
	March 31, 2020			March 31, 2019
Lease cost
Finance lease cost:
Amortization of right-of-use assets	$	117		$	693
Interest on lease liabilities	27			113
Operating lease cost	390			308
Short-term lease cost	218			129
Variable lease cost	—			95
Sublease income	—			(1,198		)
Total lease cost	$	752		$	140

Capitalized operating lease cost (1)	$	—		$	3,335

Other information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for finance leases	$	(27	)	$	(113	)
Operating cash flows for operating leases	(345		)	(308		)
Investing cash flows for operating leases	—			(1,023		)
Financing cash flows for finance leases	(105		)	(699		)
Right-of-use assets obtained in exchange for new finance lease liabilities	—			670

________________________________


(1)	The operating lease cost is related to drilling rigs with terms longer than 30 days and is capitalized as part of oil and natural gas properties on our balance sheets.