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Leases Leases (Notes)
 12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Lessee, Operating Leases Leases
SilverBow Resources has contractual agreements for its corporate office lease, vehicle fleet, drilling rigs, compressors, treating equipment, and for surface use rights. For leases with a primary term of more than 12 months, a right-of-use (“ROU”) asset and the corresponding lease liability is recorded. The Company determines at inception if an arrangement is an operating or financing lease. All of the Company’s leases are operating leases.

The initial asset and liability balances are recorded at the present value of the payment obligations over the lease term. If lease terms include options to extend the lease and it is reasonably certain that the Company will exercise that option, the lease term used for capitalization includes the expected renewal periods. Most leases do not provide an implicit interest rate. Unless the lease contract contains an implicit interest rate, the Company uses its incremental borrowing rate at the time of lease inception to compute the fair value of the lease payments. The ROU asset balance and current and non-current lease liabilities are reported separately on the accompanying Consolidated Balance Sheets. Certain leases have payment terms that vary based on the usage of the underlying assets. Variable lease payments are not included in ROU assets and lease liabilities. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and the Company does not account for lease and non-lease components separately. The Company recognizes lease expense on a straight-line basis over the lease term.
    
Lease costs represent the straight-line lease expense of ROU assets and short-term leases. The components of lease cost are classified as follows (in thousands):
Year Ended December 31, 2021Year Ended December 31, 2020
Lease Costs Included in the Asset Additions in the Condensed Consolidated Balance Sheets
Property and equipment acquisitions - short-term leases$3,472 $3,774 
Property and equipment acquisitions - operating leases— 10 
Total lease costs in property, plant and equipment additions$3,472 $3,784 
Year Ended December 31, 2021Year Ended December 31, 2020
Lease Costs Included in the Condensed Consolidated Statements of Operations
Lease operating costs - short-term leases$1,873 $724 
Lease operating costs - operating leases5,325 5,655 
General and administrative, net - operating leases844 704 
Total lease cost expensed$8,042 $7,083 

The lease term and the discount rate related to the Company's leases are as follows:
As of December 31, 2021
Weighted-average remaining lease term (in years)3.0
Weighted-average discount rate4.1 %

As of December 31, 2021, the Company's future undiscounted cash payment obligation for its operating lease liabilities are as follows (in thousands):
As of December 31, 2021
2022$7,757 
20236,468 
20241,200 
2025803 
2026689 
Thereafter539 
Total undiscounted lease payments$17,456 
Present value adjustment(1,144)
Net operating lease liabilities$16,312 

Supplemental cash flow information related to leases was as follows (in thousands):
Year Ended December 31, 2021Year Ended December 31, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows$6,011 $6,352 
Investing cash flows$— $10 
Non-cash Investing and Financing Activities
Additions to ROU assets obtained from new operating lease liabilities $8,779 $1,751 

Rental and lease expense was $7.0 million and $5.8 million for the years ended December 31, 2021 and 2020, respectively. The rental and lease expense primarily relates to compressor rentals and the lease of our office space in Houston, Texas. During 2021 the Company entered into a five-year lease agreement for office space in Houston, Texas. The operating lease commenced
on May 18, 2021. As of December 31, 2021, the minimum contractual obligations were approximately $3.5 million in the aggregate.