Leases

12 Months Ended

Dec. 31, 2023

LEASES

The 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)	2023		2022		2021
Operating lease cost	$	62	$	63	$	54
Short-term lease cost	103		93		15
Variable lease cost	3		3		3
Total lease cost	$	168	$	159	$	72

As of December 31, 2023, the Company had operating leases of $4 million, related primarily to compressor leases, which have been executed but not yet commenced. These operating leases are planned to commence during 2024 with lease terms expiring through 2027. 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)	2023		2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	61	$	62	$	53

Right-of-use assets obtained in exchange for operating liabilities:
Operating leases	$	27	$	43	$	73

Supplemental balance sheet information related to leases is as follows:


(in millions)	December 31, 2023			December 31, 2022
Right-of-use asset balance:
Operating leases	$	154		$	177
Lease liability balance:
Current operating leases	$	44		$	42
Long-term operating leases	107			133
Total operating leases	$	151		$	175

Weighted average remaining lease term: (years)
Operating leases	4.1			4.9

Weighted average discount rate:
Operating leases	7.50		%	7.32		%

Maturity analysis of operating lease liabilities:


(in millions)	December 31, 2023
2024	$	53
2025	39
2026	33
2027	29
2028	14
Thereafter	6
Total undiscounted lease liability	174
Imputed interest	(23)
Total discounted lease liability	$	151