Leases

6 Months Ended

Jun. 30, 2024

Leases [Abstract]

Leases

Leases

Nature of Leases

The Company has entered into various operating leases such as a natural gas processing plant, floating production storage and off-take vessels, buildings, marine vessels, vehicles, drilling rigs, pipelines and other oil and gas field equipment.

Options to extend lease terms are at the Company’s discretion. Early lease terminations are a combination of Company discretion and mutual agreement between the Company and lessor. Purchase options also exist for certain leases.

During the second quarter of 2024, the Company exercised an option to extend and expand an operating lease pertaining to a drill ship used in our offshore business. This resulted in an increase of $254.1 million (discounted) to our right-of-use assets and operating lease liabilities at June 30, 2024.

Maturity of Lease Liabilities

(Thousands of dollars)	Operating Leases		Finance Leases		Total
2024	$	158,984	$	534	$	159,518
2025	266,213		1,069		267,282
2026	111,686		1,069		112,755
2027	61,053		1,069		62,122
2028	60,182		1,069		61,251
Remaining	484,971		267		485,238
Total future minimum lease payments	1,143,089		5,077		1,148,166
Less imputed interest	(243,266)		(1,137)		(244,403)
Present value of lease liabilities 1	$	899,823	$	3,940	$	903,763

1 Includes both the current and long-term portion of the lease liabilities.

Lease Term and Discount Rate

	June 30, 2024		December 31, 2023
Weighted average remaining lease term:
Operating leases	8 years		10 years
Finance leases	5 years		5 years
Weighted average discount rate:
Operating leases	5.7	%	5.9	%
Finance leases	4.7	%	4.7	%

Leases

Leases

Nature of Leases

The Company has entered into various operating leases such as a natural gas processing plant, floating production storage and off-take vessels, buildings, marine vessels, vehicles, drilling rigs, pipelines and other oil and gas field equipment.

Options to extend lease terms are at the Company’s discretion. Early lease terminations are a combination of Company discretion and mutual agreement between the Company and lessor. Purchase options also exist for certain leases.

During the second quarter of 2024, the Company exercised an option to extend and expand an operating lease pertaining to a drill ship used in our offshore business. This resulted in an increase of $254.1 million (discounted) to our right-of-use assets and operating lease liabilities at June 30, 2024.

Maturity of Lease Liabilities

(Thousands of dollars)	Operating Leases		Finance Leases		Total
2024	$	158,984	$	534	$	159,518
2025	266,213		1,069		267,282
2026	111,686		1,069		112,755
2027	61,053		1,069		62,122
2028	60,182		1,069		61,251
Remaining	484,971		267		485,238
Total future minimum lease payments	1,143,089		5,077		1,148,166
Less imputed interest	(243,266)		(1,137)		(244,403)
Present value of lease liabilities 1	$	899,823	$	3,940	$	903,763

1 Includes both the current and long-term portion of the lease liabilities.

Lease Term and Discount Rate

	June 30, 2024		December 31, 2023
Weighted average remaining lease term:
Operating leases	8 years		10 years
Finance leases	5 years		5 years
Weighted average discount rate:
Operating leases	5.7	%	5.9	%
Finance leases	4.7	%	4.7	%