Leases (Tables)

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Components of Lease Costs

The components of lease costs were as follows (in thousands):

	Three Months Ended March 31,
	2022		2021
Finance lease cost - interest on lease liabilities	$	2,059	$	3,256
Operating lease cost, excluding short-term leases(1)		568		716
Short-term lease cost(2)		5,762		5,760
Variable lease cost(3)		363		322
Total lease cost	$	8,752	$	10,054

(1)Operating lease cost reflect a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a straight-line basis.

(2)Short-term lease costs are reported at gross amounts and primarily represent costs incurred for drilling rigs, most of which are short-term contracts not recognized as a right-of-use asset and lease liability on the Condensed Consolidated Balance Sheets.

Variable lease costs primarily represent differences between minimum payment obligations and actual operating charges incurred by the Company related to its long-term leases.

Schedule of Right-of-Use Asset and Liability, Adjusted for Initial Direct Costs and Incentives

The present value of the fixed lease payments recorded as the Company’s right-of-use asset and liability, adjusted for initial direct costs and incentives were as follows (in thousands):

	March 31, 2022		December 31, 2021
Operating leases:
Operating lease assets	$	5,649	$	5,714
Current portion of operating lease liabilities	$	1,778	$	1,715
Operating lease liabilities		15,853		16,330
Total operating lease liabilities	$	17,631	$	18,045
Finance leases:
Proved property	$	124,299	$	124,299
Other current liabilities	$	28,570	$	27,083
Other long-term liabilities		5,395		13,138
Total finance lease liabilities	$	33,965	$	40,221

Supplemental Cash Flow Information Related to Leases

The table below presents the supplemental cash flow information related to leases (in thousands):

	Three Months Ended March 31,
	2022		2021
Operating cash outflow from finance leases	$	2,059	$	3,256
Operating cash outflow from operating leases	$	923	$	987