Leases

12 Months Ended

Dec. 31, 2022

LEASESThe Company’s variable lease costs are primarily comprised of variable operating charges incurred in connection with its headquarters lease. The variable lease costs are expected to continue throughout the lease term. There are currently no material residual value guarantees in the Company’s existing leases.

The components of lease costs are shown below:


	For the years ended December 31,
(in millions)	2022		2021		2020
Operating lease cost	$	63	$	54	$	48
Short-term lease cost	93		15		35
Variable lease cost	3		3		3
Total lease cost	$	159	$	72	$	86

As of December 31, 2022, the Company had operating leases of $15 million, related primarily to compressor leases, which have been executed but not yet commenced. These operating leases are planned to commence during 2023 with lease terms expiring through 2028. The Company’s existing operating leases do not contain any material restrictive covenants.

Supplemental cash flow information related to leases is set forth below:


	For the years ended December 31,
(in millions)	2022		2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	62	$	53	$	47

Right-of-use assets obtained in exchange for operating liabilities:
Operating leases	$	43	$	73	$	48

Supplemental balance sheet information related to leases is as follows:


(in millions)	December 31, 2022			December 31, 2021
Right-of-use asset balance:
Operating leases	$	177		$	187
Lease liability balance:
Current operating leases	$	42		$	42
Long-term operating leases	133			142
Total operating leases	$	175		$	184

Weighted average remaining lease term: (years)
Operating leases	4.9			5.5

Weighted average discount rate:
Operating leases	7.32		%	6.77		%

Maturity analysis of operating lease liabilities:


(in millions)	December 31, 2022
2023	$	53
2024	41
2025	35
2026	31
2027	27
Thereafter	20
Total undiscounted lease liability	207
Imputed interest	(32)
Total discounted lease liability	$	175