Leases (Tables)

6 Months Ended

Jun. 30, 2019

Components of total lease cost [Table Text Block]

Components of the Company’s total lease cost, whether capitalized or expensed, for the three and six months ended June 30, 2019, were as follows:



	For the Three Months Ended June 30, 2019		For the Six Months Ended June 30, 2019
	(in thousands)
Operating lease cost	$	11,479	$	20,458
Short-term lease cost ⁽¹⁾	102,085		237,002
Variable lease cost ⁽²⁾	26,198		57,606
Total lease cost ⁽³⁾	$	139,762	$	315,066

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⁽¹⁾

Costs associated with short-term lease agreements relate primarily to operational activities where underlying lease terms are less than one year. This amount is significant as it includes drilling and completion activities and field equipment rentals, most of which are contracted for 12 months or less. It is expected this amount will fluctuate primarily with the number of drilling rigs and completion crews the Company is operating under short-term agreements.

⁽²⁾

Variable lease payments include additional payments made that were not included in the initial measurement of the ROU asset and corresponding liability for lease agreements with terms longer than 12 months. Variable lease payments relate to the actual volumes transported under certain midstream agreements, actual usage associated with drilling rigs and completion crews, and variable utility costs associated with the Company’s leased office space. Fluctuations in variable lease payments are driven by actual volumes delivered and the number of drilling rigs and completion crews operating under long-term agreements.


⁽³⁾	Lease costs are either expensed on the accompanying statements of operations or capitalized on the accompanying balance sheets depending on the nature and use of the underlying ROU asset.

Other information related to the Company’s leases for the six months ended June 30, 2019, was as follows:



	For the Six Months Ended June 30, 2019
	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	20,774
Right-of-use assets obtained in exchange for new operating lease liabilities	$	22,729

Operating lease liability maturities [Table Text Block]

Maturities for the Company’s operating lease liabilities included on the accompanying balance sheets as of June 30, 2019, were as follows:



	As of June 30, 2019
	(in thousands)
2019 (remaining after June 30, 2019)	$	13,581
2020	20,146
2021	11,699
2022	5,526
2023	3,476
Thereafter	3,721
Total Lease payments	$	58,149
Less: Imputed interest ⁽¹⁾	(4,161		)
Total	$	53,988

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⁽¹⁾

The weighted-average discount rate used to determine the operating lease liability as of June 30, 2019 was 6.6 percent.

Balance Sheet information related to operating leases [Table Text Block]

Amounts recorded on the Company’s accompanying balance sheets for operating leases as of June 30, 2019, were as follows:



	As of June 30, 2019
	(in thousands)
Other noncurrent assets	$	51,085

Other current liabilities	$	25,803
Other noncurrent liabilities	$	28,185