Leases

12 Months Ended

Dec. 31, 2023

Note 10 – Leases

We have non-cancellable operating leases primarily associated with our office facilities, compressors, rail assets, land, storage and terminal assets. We have finance leases primarily associated with our substations, compressors, tractors and vehicles. Our leases have remaining lease terms of 1 to 9 years, some of which include options to extend the lease term for up to 20 years.

The balances of right-of-use assets and liabilities of finance leases and operating leases, and their locations on our Consolidated Balance Sheets are as follows:


		December 31,
	Balance Sheet Location	2023		2022
Right-of-use assets
Operating leases, gross	Other long-term assets	$	101.1	$	57.3
Finance leases, gross (1)	Property, plant and equipment		351.9		266.1

Lease liabilities
Current:
Operating leases	Accrued liabilities	$	21.8	$	14.4
Finance leases (1)	Current debt obligations		45.7		34.3
Non-current:
Operating leases	Other long-term liabilities	$	56.5	$	28.6
Finance leases (1)	Long-term debt		244.1		193.0

(1)

The December 31, 2022 balance includes $171.2 million of assets and $167.0 million of liabilities related to compressor leases from the Delaware Basin Acquisition that were subsequently amended and extended.

Operating lease costs and short-term lease costs are included in Operating expenses or General and administrative expense in our Consolidated Statements of Operations, depending on the nature of the leases. Finance lease costs are included in Depreciation and amortization expense and Interest expense, net in our Consolidated Statements of Operations. The components of lease expense were as follows:


	Year Ended December 31,
	2023		2022		2021
Lease cost
Operating lease cost	$	18.3	$	17.7	$	12.2
Short-term lease cost		56.7		35.0		20.4
Variable lease cost		26.0		17.9		5.7
Finance lease cost
Amortization of right-of-use assets		48.2		20.3		13.3
Interest expense		14.0		3.5		1.1
Total lease cost	$	163.2	$	94.4	$	52.7

Other supplemental information related to our leases are as follows:


	Year Ended December 31,
	2023		2022		2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	21.4	$	18.8	$	14.1
Operating cash flows for finance leases		13.9		2.7		1.0
Financing cash flows for finance leases		42.9		19.7		12.5

The weighted-average remaining lease terms for operating leases and finance leases are 5 years and 6 years, respectively. The weighted-average discount rates for operating leases and finance leases are 5.0% and 5.0%, respectively.

The following table presents the maturities of our lease liabilities under non-cancellable leases as of December 31, 2023:


	Operating Leases			Finance Leases

2024	$	25.5		$	57.5
2025		16.8			56.5
2026		11.2			55.0
2027		10.3			48.9
2028		10.1			41.4
Thereafter		14.4			72.8
Total undiscounted cash flows		88.3			332.1
Less imputed interest		(10.0	)		(42.3	)
Total lease liabilities	$	78.3		$	289.8