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Leases
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Leases
Note 9 — Leases
Leases
We determine if an arrangement is a lease at inception. Our lease agreements are primarily for real estate, equipment, storage, dock space, and automobiles and are included within “Other assets”, “Other current liabilities”, and “Other liabilities” on our Consolidated Balance Sheets. In connection with the Diamond Transaction, the Company assumed several leases entered into by Diamond consisting of operating leases for corporate and shorebases offices, office and information technology equipment, employee housing, onshore storage yards, and certain rig equipment and tools as well as finance
leases for well control equipment used on the drillships. The finance leases commenced in 2016 and also include an option to purchase the leased equipment at the end of the respective lease term.
As most of our leases do not provide an explicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Certain of our lease agreements include options to extend or terminate the lease, which we do not include in our minimum lease terms unless management is reasonably certain to exercise.
Supplemental balance sheet information related to leases was as follows:
December 31, 2024December 31, 2023
Operating leases
Right-of-use assets$78,993 $24,528 
Current lease liabilities
$14,844 $10,581 
Long-term lease liabilities$65,981 $15,082 
Weighted average remaining lease term (years)7.494.34
Weighted average discount rate6.6 %7.6 %
Finance leases (1)
Right-of-use assets$34,346 $— 
Current lease liabilities
$22,722 $— 
Long-term lease liabilities$11,270 $— 
Weighted average remaining lease term (years)1.47— 
Weighted average discount rate5.8 %— %
(1)Includes finance leases acquired in the Diamond Transaction.
The components of lease cost were as follows:
Year EndedYear EndedYear Ended
December 31, 2024December 31, 2023December 31, 2022
Operating lease cost$31,162 $12,615 $6,095 
Finance lease cost:
Amortization of right-of-use assets7,766 — — 
Interest on lease liabilities734 — — 
Short-term lease cost3,819 6,185 5,741 
Variable lease cost675 928 948 
Total lease cost$44,156 $19,728 $12,784 
Supplemental cash flow information related to leases was as follows:
Year EndedYear EndedYear Ended
December 31, 2024December 31, 2023December 31, 2022
Operating leases
Operating cash flows used$20,857 $13,369 $6,676 
Right-of-use assets obtained in exchange for a lease liability (1)
45,313 9,614 19,841 
Finance leases
Operating cash flows used$560 $— $— 
Financing cash flows used6,064 — — 
Right-of-use assets obtained in exchange for a lease liability (1)
42,113 — — 
(1)Includes right-of-use assets acquired in business combinations.
Maturities of lease liabilities as of December 31, 2024, were as follows:
Operating LeasesFinance Leases
2025$17,850 $24,049 
202616,720 11,430 
202714,629 — 
202810,905 — 
20297,403 — 
Thereafter43,025 — 
Total lease payments110,532 35,479 
Less: Interest(29,707)(1,487)
Present value of lease liability$80,825 $33,992