Leases

6 Months Ended

Jun. 30, 2022

Leases

Leases

7.Leases

In the normal course of business, we enter into operating lease agreements to support our operations. Our leased assets include right-of-way easements for our wells and facilities, office space and other assets. We currently have no finance leases.

Balance Sheet Information

The following table provides supplemental consolidated balance sheet information related to leases:

(in thousands)	Classification	June 30, 2022
Assets
Right-of-Use Assets	Consolidated Balance Sheet	$	7,067
Liabilities
Current Lease Liabilities	Accrued and Other Current Liabilities		1,045
Noncurrent Lease Liabilities	Other Long-Term Liabilities		5,631

Statement of Operations Information

The following table provides the components of lease cost, excluding lease cost related to short-term leases:

	Three Months Ended			Six Months Ended
(in thousands)	June 30, 2022			June 30, 2022
Direct Operating Costs			226			446
General and Administrative			165			332
Total Lease Cost		$	391		$	778

Short-Term Leases

Our short-term lease cost, which consisted primarily of field equipment rentals, totaled $2.0 million and $3.8 million for the three and six months ended June 30, 2022.

Cash Flow Information

The following table summarizes supplemental cash flow information related to leases:

	Six Months Ended
(in thousands)	June 30, 2022
Cash Paid for Amounts Included in Lease Liabilities	$	542
Reduction in Right-of-Use Assets and Lease Liabilities Due to Lease Agreement Modifications		(198)

Lease Terms and Discount Rates

The following table provides lease terms and discount rates related to leases:

	June 30, 2022
Weighted Average Remaining Lease Term (Years)		6.5
Weighted Average Discount Rate		2.85%

Annual Lease Maturities

The following table provides maturities of lease liabilities at June 30, 2022:

(in thousands)
2022	$	679
2023		1,013
2024		924
2025		686
2026		611
Thereafter		3,546
Total Lease Payments		7,459
Less: Interest		(783)
Present Value of Lease Liabilities	$	6,676

Future Minimum Lease Commitments

Future minimum lease commitments under non-cancellable leases at December 31, 2021 were as follows:

(in thousands)
2022	$	824
2023		638
2024		622
2025		514
2026		438
Thereafter		816
Total	$	3,852