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Leases (Tables)

9 Months Ended

Sep. 30, 2019

For the three and nine months ended September 30, 2019, lease cost was as follows:



	Three Months Ended September 30,		Nine Months Ended September 30,
Lease Cost	2019		2019
	(in thousands)
Operating lease cost⁽¹⁾⁽³⁾	$	576	$	1,693
Short-term lease cost ⁽²⁾⁽³⁾	2,678		13,064
Variable lease cost ⁽⁴⁾	154		154
Total lease cost	$	3,408	$	14,911


(1)	Operating lease cost was primarily included in general and administrative expense or lease operating expense on the Unaudited Consolidated Statements of Operations.


(2)	Short-term lease cost primarily includes leases for drilling rigs, which were capitalized to property, plant and equipment on the Unaudited Consolidated Balance Sheets.


(3)	A portion of the operating lease cost and a majority of the short-term lease cost represent gross amounts that the Company was financially committed to pay. However, the Company recorded in the financial statements its proportionate share based on the Company's working interest, which varies from property to property.

(4)

Variable lease cost is related to a gathering agreement and is included in oil, gas, and NGL production on the Unaudited Consolidated Statements of Operations.

Supplemental Balance Sheet Information, Leases

Supplemental balance sheet information related to leases as of September 30, 2019, was as follows:



Operating Leases	As of September 30, 2019
	(in thousands)
Right-of-use assets ⁽¹⁾	$	9,475
Accumulated amortization ⁽²⁾	(1,028		)
Total right-of-use assets, net ⁽³⁾	$	8,447
Current lease liabilities ⁽⁴⁾	(985		)
Noncurrent lease liabilities ⁽⁵⁾	(13,598		)
Total lease liabilities ⁽³⁾	$	(14,583	)
Weighted average remaining lease term
Operating leases (in years)	8.0
Weighted average discount rate
Operating leases	5.6		%


(1)	Included in furniture, equipment and other in the Unaudited Consolidated Balance Sheets.


(2)	Included in accumulated depreciation, depletion, amortization and impairment in the Unaudited Consolidated Balance Sheets.


(3)	The difference between the right-of-use assets and total lease liabilities is primarily related to lease incentives and deferred rent balances, which were required to be netted against the right-of-use assets as of the implementation date of January 1, 2019.


(4)	Included in accounts payable and accrued liabilities in the Unaudited Consolidated Balance Sheets.


(5)	Included in other noncurrent liabilities in the Unaudited Consolidated Balance Sheets.

Lessee, Operating Lease, Liability, Maturity

Maturities of lease liabilities as of September 30, 2019 were as follows:



	As of September 30, 2019
	(in thousands)
2019	$	342
2020	2,040
2021	2,340
2022	2,031
2023	2,024
Thereafter	9,654
Total	$	18,431
Less: Interest	(3,848		)
Present value of lease liabilities	$	14,583

Schedule of Future Minimum Rental Payments for Operating Leases

Minimum future contractual payments for operating leases under the scope of ASC 840 as of December 31, 2018 were as follows:



	As of December 31, 2018
	(in thousands)
2019	$	2,583
2020	3,032
2021	3,331
2022	3,263
2023	3,036
Thereafter	13,112
Total	$	28,357