LEASES

6 Months Ended

Jun. 30, 2020

LEASES

LEASES

6. LEASES

The Company leases certain vehicles, seismic recording equipment, real property and office equipment under lease agreements. The Company evaluates each lease to determine its appropriate classification as an operating lease or finance lease for financial reporting purposes. The majority of our operating leases are non-cancelable operating leases for office and shop space in Midland, Plano, Denison, Houston, Denver, Oklahoma City and Calgary, Alberta.

The components of lease cost for the three and six months ended June 30, 2020 and 2019 was as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Finance lease cost
Amortization of right-of-use assets	$	344	$	352	$	691	$	703
Interest on lease liabilities		15		48		39		103
Total finance lease cost		359		400		730		806
Operating lease cost		387		366		775		809
Short-term lease cost		—		—		—		—
Total lease cost	$	746	$	766	$	1,505	$	1,615

Supplemental cash flow information related to leases for the six months ended June 30, 2020 and 2019 was as follows (in thousands):

	Six Months Ended June 30,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	(786)	$	(726)
Operating cash flows from finance leases	$	(42)	$	(106)
Financing cash flows from finance leases	$	(1,474)	$	(1,407)
Right-of-use assets obtained in exchange for lease obligations
Operating leases	$	—	$	8,226
Finance leases	$	—	$	40

Supplemental balance sheet information related to leases as of June 30, 2020 and 2019 was as follows (in thousands):

	June 30,
	2020		2019
Operating leases
Operating lease right-of-use assets	$	5,968	$	7,165
Operating lease liabilities - current	$	1,106	$	1,206
Operating lease liabilities - long-term		5,386		6,494
Total operating lease liabilities	$	6,492	$	7,700
Finance leases
Property and equipment, at cost	$	8,663	$	8,582
Property and equipment, net		(3,908)		(2,563)
Property and equipment, net	$	4,755	$	6,019
Finance lease liabilities - current	$	851	$	2,910
Finance lease liabilities - long-term		67		865
Total finance lease liabilities	$	918	$	3,775
Weighted average remaining lease term
Operating leases		6.0 years		6.7 years
Finance leases		0.4 years		1.3 years
Weighted average discount rate
Operating leases		5.04%		5.04%
Finance leases		4.69%		4.66%

Maturities of lease liabilities as of June 30, 2020 are as follows (in thousands):

	Operating Leases		Finance Leases
July 2020 - June 2021	$	1,407	$	861
July 2021 - June 2022		1,251		45
July 2022 - June 2023		1,147		25
July 2023 - June 2024		1,170		—
July 2024 - June 2025		1,016		—
Thereafter		1,564		—
Total payments under lease agreements		7,555		931
Less imputed interest		(1,063)		(13)
Total lease liabilities	$	6,492	$	918