The Company leases drilling rigs, compressors, vehicles, office space, and other equipment under non-cancelable operating leases expiring through 2036. Certain lease agreements may include options to renew the lease, terminate the lease early, or purchase the underlying asset(s). The Company determines the lease term at the lease commencement date as the non-cancelable period of the lease, including the options to extend or terminate the lease when such an option is reasonably certain to be exercised.

As discussed in Note 2—Summary of Significant Accounting Policies, the Company adopted ASU 2016-02, ASU 2018-11 and ASU 2019-01 “Leases (Topic 842)” on January 1, 2019 using the optional transition method of adoption. The Company elected a package of practical expedients that together allows an entity to not reassess (i) whether a contract is or contains a lease, (ii) lease classification, and (iii) initial direct costs. In addition, the Company elected the following practical expedients for all asset classes: (i) to not reassess certain land easements, (ii) to not apply the recognition requirements under the standard to short-term leases, and (iii) to combine and account for lease and nonlease contract components as a lease, which requires the capitalization of fixed nonlease payments on January 1, 2019 or lease effective date and recognition of variable nonlease payments as variable lease expense.

On January 1, 2019, the Company recorded a total of $10.4 million in right-of-use assets and corresponding new lease liabilities on its Consolidated Balance Sheets representing the present value of its future operating lease payments. Adoption of the standards did not require an adjustment to the opening balance of retained earnings. The discount rate used to determine present value was based on the rate of interest that the Company estimated it would have to pay to borrow (on a collateralized-basis over a similar term) an amount equal to the lease payments in a similar economic environment as of January 1, 2019. The Company is required to reassess the discount rate for any new and modified lease contracts as of the lease effective date.

The right-of-use assets and lease liabilities recognized upon adoption of ASU 2016-02 were based on the lease classifications, lease commitment amounts, and terms recognized under the prior lease accounting guidance. Leases with an initial term of 12 months or less, taking into account extensions if reasonably certain to be exercised, are considered short-term leases and are not recorded on the Consolidated Balance Sheet.

The Company incurred $16.0 million in operating lease cost during the year ended December 31, 2019. The operating lease right-of-use assets were reported in other noncurrent assets and the current and noncurrent portions of the operating lease liabilities were reported in current liabilities and noncurrent liabilities, respectively, on the Consolidated Balance Sheets. As of December 31, 2019, the operating right-of-use assets were $37.0 million and operating lease liabilities were $37.2 million, of which $12.7 million was classified as current. As of December 31, 2019, the weighted average remaining lease term was 3.7 years and the weighted average discount rate was 5.4%.

Supplemental cash flow information related to the Company’s operating leases is included in the table below (in thousands):

	For the Year Ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	5,542
Investing cash flows for operating leases	$	10,489
ROU assets added in exchange for lease obligations (upon adoption)	$	10,434
ROU assets and lease obligations acquired in BRMR Merger	$	7,900
ROU assets added in exchange for lease obligations, net of terminations (since adoption)	$	31,714

The Company’s lease liabilities with enforceable contract terms that are greater than one year mature as follows (in thousands):

	Operating Leases
2020	$	14,424
2021		13,004
2022		5,524
2023		3,611
2024		2,110
Thereafter		2,631
Total lease payments	$	41,304
Less imputed interest		(4,069	)
Total lease liability	$	37,235

As discussed in Note 2—Summary of Significant Accounting Policies, the Company elected a transition method to recognize the effects of applying the new standard as a cumulative-effect adjustment to the opening balance of retained earnings. Per ASU 2016-02, the entity electing this transition method should provide the required disclosures under Topic 840 for all periods that continue to be in accordance with Topic 840. As such, the Company included the future minimum lease commitments table below as of December 31, 2018. Future minimum lease commitments under non-cancellable leases at December 31, 2018 were as follows:

2019		1,360
2020		1,060
2021		929
2022		755
2023		755
Thereafter		1,619
Total minimum lease payments	$	6,478