The Company enters into service contracts and other contractual arrangements for the use of office space, drilling, completion and abandonment equipment (e.g., drilling rigs), production related equipment (e.g., compressors) and other equipment from third-party lessors to support its operations. The Company’s leasing activities as a lessor are negligible. At inception, contracts are reviewed to determine whether the agreement contains a lease. To the extent an arrangement is determined to include a lease, it is classified as either an operating or a finance lease, which dictates the pattern of expense recognition in the income statement.

On August 2, 2016, the Company executed a seven-year lease agreement for the use of the Helix Producer 1 (the “HP-I”), a dynamically positioned floating production facility that interconnects with the Phoenix Field through a production buoy. The HP-I is utilized in the Company’s oil and natural gas development activities and the right-of-use asset was capitalized and included in proved property and depleted as part of the full cost pool. Once items are included in the full cost pool, they are indistinguishable from other proved properties. The capitalized costs within the full cost pool are amortized over the life of the total proved reserves using the unit-of-production method, computed quarterly.

The amounts disclosed herein primarily represent costs associated with properties operated by the Company that are presented on a gross basis and do not reflect the Company’s net proportionate share of such amounts. A portion of these costs have been or may be billed to other working interest owners. The Company’s share of these costs is included in property and equipment, lease operating expense or general and administrative expense depending on how the leased asset is utilized. The components of lease costs were as follows (in thousands):

	Three Months Ended March 31,
	2021		2020
Finance lease cost - interest on lease liabilities	$	3,256	$	4,265
Operating lease cost, excluding short-term leases⁽¹⁾		716		866
Short-term lease cost⁽²⁾		5,760		3,535
Variable lease cost⁽³⁾		322		3
Total lease cost	$	10,054	$	8,669

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, are as follows (in thousands):

	March 31, 2021		December 31, 2020
Operating leases:
Operating lease assets	$	6,722	$	6,855

Current portion of operating lease liabilities	$	1,927	$	1,793
Operating lease liabilities		18,015		18,554
Total operating lease liabilities	$	19,942	$	20,347

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

Other current liabilities	$	23,002	$	21,804
Other long-term liabilities		33,966		40,222
Total finance lease liabilities	$	56,968	$	62,026

The table below presents the lease maturity by year as of March 31, 2021 (in thousands). Such commitments are reflected at undiscounted values and are reconciled to the discounted present value recognized on the Condensed Consolidated Balance Sheet.

	Operating Leases			Finance Leases
2021 (excluding the three months ended March 31, 2021)	$	3,421		$	27,715
2022		4,302			33,257
2023		4,239			13,857
2024		3,315			—
2025		3,293			—
Thereafter		12,496			—
Total lease payments	$	31,066		$	74,829
Imputed interest		(11,124	)		(17,861	)
Total lease liabilities	$	19,942		$	56,968

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

	Three Months Ended March 31,
	2021			2020
Weighted average remaining lease term:
Operating leases	7.6 years			8.3 years
Finance leases	2.2 years			3.2 years
Weighted average discount rate:
Operating leases		12.0	%		10.3	%
Finance leases		21.9	%		21.9	%

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

	Three Months Ended March 31,
	2021		2020
Operating cash outflow from finance leases	$	3,256	$	4,265
Financing cash outflow from finance leases	$	5,058	$	4,049
Operating cash outflow from operating leases	$	987	$	455