Leases

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases

Note 14. Leases

In the normal course of business, we enter into lease agreements to support our operations. We lease field equipment as well as water and pipeline transportation assets.

Operating Leases Our operating leases consist of field equipment and transportation assets. Our field equipment leases have fixed monthly payments over a minimum term with options to extend the rental period on a month-to-month basis. Our leased transportation assets have variable monthly payments (price per barrel throughput) over a minimum term with the option to extend on a year-to-year basis. Our operating and variable lease expense is recorded in direct operating expense in our consolidated statement of operations and was de minimis for the year ended December 31, 2019.

Finance Leases We lease water assets for use in the performance of our fresh water delivery services. The amount of the lease obligation is based on the discounted present value of future minimum lease payments, and therefore does not reflect future cash lease payments. Our finance lease expense is recorded in depreciation and amortization expense in our consolidated statement of operations and was de minimis for the year ended December 31, 2019. Interest expense for our finance lease is recorded in interest expense in our consolidated statement of operations and was de minimis for the year ended December 31, 2019.

Short-Term Leases Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. Short-term lease expense is recorded in direct operating expense in our consolidated statement of operations and was de minimis for the year ended December 31, 2019.

Balance Sheet Information ROU assets and lease liabilities are as follows:

(in thousands)	Balance Sheet Location	December 31, 2019
Assets
Operating (1)	Other Noncurrent Assets	$	2,743
Finance (2)	Total Property, Plant and Equipment, Net	3,869
Total ROU Assets		$	6,612
Liabilities
Current
Operating	Other Current Liabilities	$	2,471
Finance	Other Current Liabilities	—
Noncurrent
Operating	Other Noncurrent Liabilities	259
Finance (3)	Long-Term Debt	2,005
Total Lease Liabilities		$	4,735

⁽¹⁾  All of our operating leases mature between 2020 through 2021. Future operating lease payments of $2.5 million are due in 2020 and $0.3 million are due in 2021.

⁽²⁾  Finance lease assets are recorded net of accumulated amortization of $1.1 million as of December 31, 2019.

⁽³⁾ 

Our finance lease matures during 2021.

Leases

Note 14. Leases

In the normal course of business, we enter into lease agreements to support our operations. We lease field equipment as well as water and pipeline transportation assets.

Operating Leases Our operating leases consist of field equipment and transportation assets. Our field equipment leases have fixed monthly payments over a minimum term with options to extend the rental period on a month-to-month basis. Our leased transportation assets have variable monthly payments (price per barrel throughput) over a minimum term with the option to extend on a year-to-year basis. Our operating and variable lease expense is recorded in direct operating expense in our consolidated statement of operations and was de minimis for the year ended December 31, 2019.

Finance Leases We lease water assets for use in the performance of our fresh water delivery services. The amount of the lease obligation is based on the discounted present value of future minimum lease payments, and therefore does not reflect future cash lease payments. Our finance lease expense is recorded in depreciation and amortization expense in our consolidated statement of operations and was de minimis for the year ended December 31, 2019. Interest expense for our finance lease is recorded in interest expense in our consolidated statement of operations and was de minimis for the year ended December 31, 2019.

Short-Term Leases Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. Short-term lease expense is recorded in direct operating expense in our consolidated statement of operations and was de minimis for the year ended December 31, 2019.

Balance Sheet Information ROU assets and lease liabilities are as follows:

(in thousands)	Balance Sheet Location	December 31, 2019
Assets
Operating (1)	Other Noncurrent Assets	$	2,743
Finance (2)	Total Property, Plant and Equipment, Net	3,869
Total ROU Assets		$	6,612
Liabilities
Current
Operating	Other Current Liabilities	$	2,471
Finance	Other Current Liabilities	—
Noncurrent
Operating	Other Noncurrent Liabilities	259
Finance (3)	Long-Term Debt	2,005
Total Lease Liabilities		$	4,735

⁽¹⁾  All of our operating leases mature between 2020 through 2021. Future operating lease payments of $2.5 million are due in 2020 and $0.3 million are due in 2021.

⁽²⁾  Finance lease assets are recorded net of accumulated amortization of $1.1 million as of December 31, 2019.

⁽³⁾ 

Our finance lease matures during 2021.