Leases

3 Months Ended

Mar. 31, 2020

Leases

The Company’s lease liabilities recognized on the balance sheet as a lessee totaled $12.6 million as of March 31, 2020 at discounted present value, which is comprised of the asset classes reflected in the table below. All leases recognized on the Company's balance sheet are classified as operating leases. The amounts disclosed herein primarily represent costs associated with properties operated by the Company that are presented on a gross basis and do not reflect the Company's net proportionate share of such amounts. A portion of these costs have been or will be billed to other working interest owners. Once paid, the Company's share of these costs are included in property and equipment, production expenses, or general and administrative expenses, as applicable. The Company's leasing activities as a lessor are negligible.



In thousands	Amount
Drilling rig commitments	$	6,048
Surface use agreements	5,091
Field equipment	1,105
Other	339
Total	$	12,583

Drilling rig commitments reflected above represent minimum payment obligations expected to be incurred on enforceable commitments with durations in excess of one year at the inception of the lease.

Minimum future commitments by year for the Company's operating leases as of March 31, 2020 are presented in the table below. Such commitments are reflected at undiscounted values and are reconciled to the discounted present value recognized on the balance sheet.



In thousands	Amount
Remainder of 2020	$	4,954
2021	2,574
2022	782
2023	729
2024	456
Thereafter	6,676
Total operating lease liabilities, at undiscounted value	$	16,171
Less: Imputed interest	(3,588		)
Total operating lease liabilities, at discounted present value	$	12,583
Less: Current portion of operating lease liabilities	(6,243		)
Operating lease liabilities, net of current portion	$	6,340

Additional information for the Company's operating leases is presented below. Lease costs are reflected at gross amounts and primarily represent costs incurred for drilling rigs, most of which are short term contracts that are not recognized as right-of-use assets and lease liabilities on the balance sheet. Variable lease costs primarily represent differences between minimum payment obligations and actual operating day-rate charges incurred by the Company for its long term drilling rig contracts. Short-term lease costs primarily represent operating day-rate charges for drilling rig contracts with durations of one year or less and month-to-month field equipment rentals.



In thousands, except weighted average data	Three months ended March 31, 2020
Lease costs:
Operating lease costs	$	1,260
Variable lease costs	3,223
Short-term lease costs	51,348
Total lease costs	$	55,831

Other information:
Right-of-use assets obtained in exchange for new operating lease liabilities	$	7,002
Operating cash flows from operating leases included in lease liabilities	228
Weighted average remaining lease term as of March 31, 2020 (in years)	9.8
Weighted average discount rate as of March 31, 2020	4.1		%