Leases (Tables)

6 Months Ended

Jun. 30, 2020

For the three and six months ended June 30, 2020 and 2019, lease cost were as follows:


	Three Months Ended June 30,						Six Months Ended June 30,
Lease Cost	2020		2019		2020		2019
	(in thousands)
Operating lease cost⁽¹⁾⁽³⁾	$	529	$	569	$	1,039	$	1,117
Short-term lease cost ⁽²⁾⁽³⁾	789		4,167		3,052		10,386
Variable lease cost ⁽⁴⁾	373		—		693		—
Total lease cost	$	1,691	$	4,736	$	4,784	$	11,503

(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 June 30, 2020 and December 31, 2019, were as follows:


Operating Leases	As of June 30, 2020			As of December 31, 2019
	(in thousands)
Right-of-use assets ⁽¹⁾	$	9,906		$	9,287
Accumulated amortization ⁽²⁾	(1,621)			(1,142)
Total right-of-use assets, net ⁽³⁾	$	8,285		$	8,145
Current lease liabilities ⁽⁴⁾	(1,954)			(1,287)
Noncurrent lease liabilities ⁽⁵⁾	(12,834)			(13,195)
Total lease liabilities ⁽³⁾	$	(14,788)		$	(14,482)
Weighted average remaining lease term
Operating leases (in years)	7.3			7.8
Weighted average discount rate
Operating leases	5.6		%	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 ASC 842 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 June 30, 2020 and December 31, 2019 were as follows:


	As of June 30, 2020		As of December 31, 2019
	(in thousands)
2020	$	1,377	$	2,056
2021	2,635		2,355
2022	2,324		2,044
2023	2,101		2,024
2024	2,078		2,078
Thereafter	7,576		7,577
Total	$	18,091	$	18,134
Less: Interest	(3,303)		(3,652)
Present value of lease liabilities	$	14,788	$	14,482