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Leases
 12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Leases Leases
We are a lessee under various agreements for compressors, drilling rigs, vehicles and other equipment. As of December 31, 2020, these leases have remaining terms ranging from one month to three years. Certain of our lease agreements include options to renew the lease, terminate the lease early or purchase the underlying asset at the end of the lease. We determine the lease term at the lease commencement date as the non-cancelable period of the lease, including options to extend or terminate the lease when we are reasonably certain to exercise the option. The company’s vehicles are the only leases with renewal options that we are reasonably certain to exercise. The renewals are reflected in the ROU asset and lease liability balances.
Our operating ROU assets are included in other long-term assets while operating lease liabilities are included in other current and other long-term liabilities on the consolidated balance sheet. Finance ROU assets are reflected in total property and equipment, net, while finance lease liabilities are included in other current and other long-term liabilities on the consolidated balance sheet.
On February 1, 2019, we acquired WildHorse and, as part of the purchase price allocation, we recognized additional operating lease liabilities of $40 million, a related ROU asset of $38 million, and lease incentives of $2 million related to two office space leases, a long-term hydraulic fracturing agreement and other equipment leases. Regarding our long-term hydraulic fracturing agreements, we made a policy election to treat both lease and non-lease components as a single lease component. All of these acquired leases were approved for rejection during our bankruptcy process and subsequently removed from our balance sheet.
In 2018, we sold our wholly owned subsidiary, Midcon Compression, L.L.C., to a third party and subsequently leased back certain natural gas compressors for 38 months. The lease is accounted for as a finance lease liability.
The following table presents our ROU assets and lease liabilities as of December 31, 2020 and 2019.
Years Ended December 31,
20202019
 FinanceOperatingFinanceOperating
 ($ in millions)
ROU assets$9 $29 $17 $22 
Lease liabilities:
Current lease liabilities
$9 $27 $9 $9 
Long-term lease liabilities
— 2 9 16 
Total lease liabilities
9 29 18 25 
Less amounts reclassified to liabilities subject to compromise(9)(5)— — 
Total lease liabilities, net$— $24 $18 $25 
Additional information for the Company’s operating and finance leases is presented below:
Years Ended December 31,
 20202019
Lease cost:($ in millions)
Amortization of ROU assets$9 $8 
Interest on lease liability1 2 
Finance lease cost
10 10 
Operating lease cost17 26 
Short-term lease cost32 112 
Total lease cost
$59 $148 
Other information:
Operating cash outflows from finance lease$1 $2 
Operating cash outflows from operating leases$9 $11 
Investing cash outflows from operating leases$40 $127 
Financing cash outflows from finance lease$9 $8 
December 31,
20202019
Weighted average remaining lease term - finance lease1.00 year2.00 years
Weighted average remaining lease term - operating leases1.12 years4.65 years
Weighted average discount rate - finance lease7.50 %7.50 %
Weighted average discount rate - operating leases6.46 %4.85 %
Maturity analysis of finance lease liabilities and operating lease liabilities are presented below:
December 31, 2020
 Finance LeaseOperating Leases
 ($ in millions)
2021$10 $28 
2022— 2 
Total lease payments
10 30 
Less imputed interest(1)(1)
Present value of lease liabilities
9 29 
Less current maturities(9)(27)
Present value of lease liabilities, less current maturities
$— $2 
Leases Leases
We are a lessee under various agreements for compressors, drilling rigs, vehicles and other equipment. As of December 31, 2020, these leases have remaining terms ranging from one month to three years. Certain of our lease agreements include options to renew the lease, terminate the lease early or purchase the underlying asset at the end of the lease. We determine the lease term at the lease commencement date as the non-cancelable period of the lease, including options to extend or terminate the lease when we are reasonably certain to exercise the option. The company’s vehicles are the only leases with renewal options that we are reasonably certain to exercise. The renewals are reflected in the ROU asset and lease liability balances.
Our operating ROU assets are included in other long-term assets while operating lease liabilities are included in other current and other long-term liabilities on the consolidated balance sheet. Finance ROU assets are reflected in total property and equipment, net, while finance lease liabilities are included in other current and other long-term liabilities on the consolidated balance sheet.
On February 1, 2019, we acquired WildHorse and, as part of the purchase price allocation, we recognized additional operating lease liabilities of $40 million, a related ROU asset of $38 million, and lease incentives of $2 million related to two office space leases, a long-term hydraulic fracturing agreement and other equipment leases. Regarding our long-term hydraulic fracturing agreements, we made a policy election to treat both lease and non-lease components as a single lease component. All of these acquired leases were approved for rejection during our bankruptcy process and subsequently removed from our balance sheet.
In 2018, we sold our wholly owned subsidiary, Midcon Compression, L.L.C., to a third party and subsequently leased back certain natural gas compressors for 38 months. The lease is accounted for as a finance lease liability.
The following table presents our ROU assets and lease liabilities as of December 31, 2020 and 2019.
Years Ended December 31,
20202019
 FinanceOperatingFinanceOperating
 ($ in millions)
ROU assets$9 $29 $17 $22 
Lease liabilities:
Current lease liabilities
$9 $27 $9 $9 
Long-term lease liabilities
— 2 9 16 
Total lease liabilities
9 29 18 25 
Less amounts reclassified to liabilities subject to compromise(9)(5)— — 
Total lease liabilities, net$— $24 $18 $25 
Additional information for the Company’s operating and finance leases is presented below:
Years Ended December 31,
 20202019
Lease cost:($ in millions)
Amortization of ROU assets$9 $8 
Interest on lease liability1 2 
Finance lease cost
10 10 
Operating lease cost17 26 
Short-term lease cost32 112 
Total lease cost
$59 $148 
Other information:
Operating cash outflows from finance lease$1 $2 
Operating cash outflows from operating leases$9 $11 
Investing cash outflows from operating leases$40 $127 
Financing cash outflows from finance lease$9 $8 
December 31,
20202019
Weighted average remaining lease term - finance lease1.00 year2.00 years
Weighted average remaining lease term - operating leases1.12 years4.65 years
Weighted average discount rate - finance lease7.50 %7.50 %
Weighted average discount rate - operating leases6.46 %4.85 %
Maturity analysis of finance lease liabilities and operating lease liabilities are presented below:
December 31, 2020
 Finance LeaseOperating Leases
 ($ in millions)
2021$10 $28 
2022— 2 
Total lease payments
10 30 
Less imputed interest(1)(1)
Present value of lease liabilities
9 29 
Less current maturities(9)(27)
Present value of lease liabilities, less current maturities
$— $2