Leases (Tables)

12 Months Ended

Dec. 31, 2023

Lessee Disclosure [Abstract]

Components of total lease cost

The following table reflects the components of the Company’s total lease costs, whether capitalized or expensed, related to operating leases, including short-term leases, and variable lease payments made for both short-term and long-term leases for the years ended December 31, 2023, and 2022. This total does not reflect amounts that may be reimbursed by other third parties in the normal course of business, such as non-operating working interest owners.

	For the Years Ended December 31,
	2023		2022
	(in thousands)
Operating lease cost	$	15,625	$	10,174
Short-term lease cost (1)	251,628		175,098
Variable lease cost (2)	11,838		7,085
Total lease cost	$	279,091	$	192,357

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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 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 relate to the 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 primarily driven by the number of drilling rigs and completion crews operating.

Cash paid for amounts included in the measurement of lease liabilities for the years ended December 31, 2023, and 2022, were as follows:

	For the Years Ended December 31,
	2023		2022
	(in thousands)
Operating cash flows related to operating leases	$	4,181	$	4,718
Investing cash flows related to operating leases	$	11,300	$	5,042

Operating lease liability maturities

Maturities for the Company’s operating lease liabilities included on the accompanying balance sheets as of December 31, 2023, were as follows:

	As of December 31, 2023
	(in thousands)
2024	$	17,208
2025	11,242
2026	4,793
2027	2,685
2028	2,054
Thereafter	6,906
Total Lease payments	$	44,888
Less: Imputed interest (1)	(5,110)
Total	$	39,778

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(1)    The weighted-average discount rate used to determine the operating lease liability as of December 31, 2023, was 6.2 percent.

Balance sheet information related to operating leases

The following table presents supplemental accompanying balance sheet information for operating leases as of December 31, 2023, and 2022:

	As of December 31,
	2023		2022
	(in thousands, except discount rate and lease term)
Balance sheet classifications of operating leases:
Other noncurrent assets	$	32,264	$	26,368
Other current liabilities	$	15,425	$	10,114
Other noncurrent liabilities	$	24,352	$	23,621
ROU assets obtained in exchange for operating lease liabilities	$	19,341	$	16,186
Weighted-average discount rate	6.2%		5.8%
Weighted-average remaining lease term (years)	4		5