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Leases (Tables)

12 Months Ended

Dec. 31, 2022

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


	Year Ended December 31,
	2022		2021		2020
Finance lease cost - interest on lease liabilities	$	7,558	$	11,453	$	15,748
Operating lease cost, excluding short-term leases(1)		2,281		2,706		3,361
Short-term lease cost(2)		55,072		38,472		53,573
Variable lease cost(3)		1,450		1,356		543
Total lease cost	$	66,361	$	53,987	$	73,225

(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 ROU asset and lease liability on the 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 ROU Asset and Liability, Adjusted for Initial Direct Costs and Incentives

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


	Year Ended December 31,
	2022		2021
Operating leases:
Operating lease assets	$	5,903	$	5,714

Current portion of operating lease liabilities	$	1,943	$	1,715
Operating lease liabilities		14,855		16,330
Total operating lease liabilities	$	16,798	$	18,045

Finance leases:
Proved property	$	166,261	$	124,299

Other current liabilities	$	16,306	$	27,083
Other long-term liabilities		149,064		13,138
Total finance lease liabilities	$	165,370	$	40,221

Schedule of Lease Maturity

The table below presents the lease maturity by year as of December 31, 2022 (in thousands). Such commitments are reflected at undiscounted values and are reconciled to the discounted present value recognized on the Consolidated Balance Sheets.


	Operating Leases			Finance Leases
2023	$	3,774		$	30,782
2024		3,579			30,782
2025		3,645			30,782
2026		3,712			30,782
2027		3,596			30,782
Thereafter		5,727			74,389
Total lease payments	$	24,033		$	228,299
Imputed interest		(7,235	)		(62,929	)
Total lease liabilities	$	16,798		$	165,370

Schedule of Weighted Average Remaining Lease Term and Discount Rate

The table below presents the weighted average remaining lease term and discount rate related to leases:


	Year Ended December 31,
	2022			2021			2020
Weighted average remaining lease term:
Operating leases	6.4 years			7.4 years			7.8 years
Finance leases	7.4 years			1.4 years			2.4 years
Weighted average discount rate:
Operating leases		11.8	%		11.9	%		12.0	%
Finance leases		9.2	%		21.9	%		21.9	%

Supplemental Cash Flow Information Related to Leases

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


	Year Ended December 31,
	2022		2021		2020
Operating cash outflow from finance leases	$	7,181	$	11,453	$	15,748
Operating cash outflow from operating leases	$	3,722	$	3,864	$	2,648

ROU assets obtained in exchange for new finance lease liabilities	$	166,261	$	—	$	—
ROU assets obtained in exchange for new operating lease liabilities	$	474	$	1,020	$	—