Leases (Tables)

6 Months Ended

Jun. 30, 2020

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, 2020, and 2019, consisted of the following:


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2020		2019		2020		2019
	(in thousands)
Operating lease cost	$	4,453	$	11,479	$	11,287	$	20,458
Short-term lease cost ⁽¹⁾	36,630		102,085		80,202		237,002
Variable lease cost ⁽²⁾	21,136		26,198		43,470		57,606
Total lease cost	$	62,219	$	139,762	$	134,959	$	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 that 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, completion crews, and vehicles, 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.

Right-of-use assets obtained in exchange for new operating lease liabilities totaled $745,000 for the three and six months ended June 30, 2020, and $10.5 million and $22.7 million for the three and six months ended June 30, 2019, respectively.

Cash paid for amounts included in the measurement of lease liabilities for the six months ended June 30, 2020, and 2019, was as follows:


	For the Six Months Ended June 30,
	2020		2019
	(in thousands)
Operating cash flows from operating leases	$	6,065	$	5,966
Investing cash flows from operating leases	$	6,188	$	14,808

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, 2020, were as follows:


	As of June 30, 2020
	(in thousands)
2020 (remaining after June 30, 2020)	$	7,161
2021	12,938
2022	5,948
2023	3,602
2024	2,081
Thereafter	1,640
Total Lease payments	$	33,370
Less: Imputed interest ⁽¹⁾	(3,340)
Total	$	30,030

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⁽¹⁾The weighted-average discount rate used to determine the operating lease liability as of June 30, 2020, was 6.9 percent.

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

Amounts recorded on the accompanying balance sheets for operating leases as of June 30, 2020, and December 31, 2019, were as follows:


	As of June 30, 2020		As of December 31, 2019
	(in thousands)
Other noncurrent assets	$	27,778	$	39,717

Other current liabilities	$	12,597	$	19,189
Other noncurrent liabilities	$	17,433	$	23,137