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Leases

6 Months Ended

Jun. 30, 2019

11. LEASES

Anadarko, on behalf of the Partnership, has entered into operating leases that extend through 2028 for corporate offices, shared field offices, and equipment supporting the Partnership’s operations, for which Anadarko charges the Partnership rent. The Partnership has also subleased equipment from Anadarko with finance leases extending through April 2020.

The following table summarizes information related to the Partnership’s leases at June 30, 2019:



thousands except lease term and discount rate	Operating Leases			Finance Leases
Assets
Other assets	$	6,923		$	—
Net property, plant and equipment	—			8,374
Total lease assets ⁽¹⁾	$	6,923		$	8,374

Liabilities
Accrued liabilities	$	4,515		$	—
Short-term debt	—			8,381
Other liabilities	3,302			—
Total lease liabilities ⁽¹⁾	$	7,817		$	8,381

Weighted-average remaining lease term (years)	4			1
Weighted-average discount rate	4.6		%	2.9		%


⁽¹⁾	Includes additions to ROU assets and lease liabilities of $8.5 million related to finance leases for the six months ended June 30, 2019.

11. LEASES (CONTINUED)

Lease expense charged to the Partnership was $12.9 million and $26.7 million for the three and six months ended June 30, 2018, respectively. The following table summarizes the Partnership’s lease cost for the periods presented below:



thousands	Three Months Ended June 30, 2019			Six Months Ended June 30, 2019
Operating lease cost	$	1,923		$	3,837
Variable lease cost	102			119
Sublease income	(103		)	(207		)
Finance lease cost
Amortization of ROU assets	80			80
Interest on lease liabilities	20			20
Total lease cost	$	2,022		$	3,849

The following table summarizes cash paid for amounts included in the measurement of lease liabilities for the six months ended June 30, 2019:



thousands	Operating Leases
Operating cash flows	$	3,929

The following table reconciles the undiscounted cash flows to the operating and finance lease liabilities at June 30, 2019:



thousands	Operating Leases		Finance Leases
Remainder of 2019	$	3,114	$	625
2020	1,969		7,934
2021	612		—
2022	618		—
2023	625		—
Thereafter	1,658		—
Total lease payments	8,596		8,559
Less portion representing imputed interest	779		178
Total lease liabilities	$	7,817	$	8,381

11. LEASES (CONTINUED)

The amounts in the table below represent contractual operating lease commitments at December 31, 2018, that may be assigned or otherwise charged to the Partnership pursuant to the reimbursement provisions of the omnibus agreement:



thousands
2019	$	8,711
2020	2,236
2021	460
2022	467
2023	473
Thereafter	1,547
Total lease payments	$	13,894

Leases

11. LEASES

The following table summarizes information related to the Partnership’s leases at June 30, 2019:



thousands except lease term and discount rate	Operating Leases			Finance Leases
Assets
Other assets	$	6,923		$	—
Net property, plant and equipment	—			8,374
Total lease assets ⁽¹⁾	$	6,923		$	8,374

Liabilities
Accrued liabilities	$	4,515		$	—
Short-term debt	—			8,381
Other liabilities	3,302			—
Total lease liabilities ⁽¹⁾	$	7,817		$	8,381

Weighted-average remaining lease term (years)	4			1
Weighted-average discount rate	4.6		%	2.9		%


⁽¹⁾	Includes additions to ROU assets and lease liabilities of $8.5 million related to finance leases for the six months ended June 30, 2019.

11. LEASES (CONTINUED)



thousands	Three Months Ended June 30, 2019			Six Months Ended June 30, 2019
Operating lease cost	$	1,923		$	3,837
Variable lease cost	102			119
Sublease income	(103		)	(207		)
Finance lease cost
Amortization of ROU assets	80			80
Interest on lease liabilities	20			20
Total lease cost	$	2,022		$	3,849

The following table summarizes cash paid for amounts included in the measurement of lease liabilities for the six months ended June 30, 2019:



thousands	Operating Leases
Operating cash flows	$	3,929

The following table reconciles the undiscounted cash flows to the operating and finance lease liabilities at June 30, 2019:



thousands	Operating Leases		Finance Leases
Remainder of 2019	$	3,114	$	625
2020	1,969		7,934
2021	612		—
2022	618		—
2023	625		—
Thereafter	1,658		—
Total lease payments	8,596		8,559
Less portion representing imputed interest	779		178
Total lease liabilities	$	7,817	$	8,381

11. LEASES (CONTINUED)



thousands
2019	$	8,711
2020	2,236
2021	460
2022	467
2023	473
Thereafter	1,547
Total lease payments	$	13,894