Leases

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Leases

9. Leases

We are a lessee under various agreements for drilling rigs, compressors, vehicles and gas treating plants. As of December 31, 2023, 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 right of use (“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.

The following table presents our ROU assets and lease liabilities as of December 31, 2023 and 2022. As of December 31, 2023 and 2022, we did not have any finance leases.

	Successor
	Operating Leases
	December 31, 2023		December 31, 2022
ROU assets	$	99	$	119
Lease liabilities:
Current lease liabilities	$	84	$	86
Long-term lease liabilities	15		33
Total lease liabilities, net	$	99	$	119

Additional information for the Company’s operating and finance leases is presented below:

	Successor						Predecessor
	Year Ended December 31, 2023		Year Ended December 31, 2022		Period from February 10, 2021 through December 31, 2021		Period from January 1, 2021 through February 9, 2021
Lease cost:
Finance lease cost	$	—	$	—	$	—	$	1
Operating lease cost	107		51		33		3
Short-term lease cost	40		74		13		—
Total lease cost	$	147	$	125	$	46	$	4
Other information:
Operating cash outflows from operating leases	$	10	$	15	$	7	$	—
Investing cash outflows from operating leases	$	137	$	110	$	39	$	3
Financing cash outflows from finance lease	$	—	$	—	$	—	$	1

	Successor
	December 31, 2023		December 31, 2022
Weighted average remaining lease term - operating leases	1.24 years		1.54 years
Weighted average discount rate - operating leases	7.02	%	6.64	%

Maturity analysis of operating lease liabilities is presented below:

	Successor
	December 31, 2023
2024	$	85
2025	17
2026	1
Total lease payments	103
Less imputed interest	(4)
Present value of lease liabilities	99
Less current maturities	(84)
Present value of lease liabilities, less current maturities	$	15

Leases

9. Leases

We are a lessee under various agreements for drilling rigs, compressors, vehicles and gas treating plants. As of December 31, 2023, 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 right of use (“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.

The following table presents our ROU assets and lease liabilities as of December 31, 2023 and 2022. As of December 31, 2023 and 2022, we did not have any finance leases.

	Successor
	Operating Leases
	December 31, 2023		December 31, 2022
ROU assets	$	99	$	119
Lease liabilities:
Current lease liabilities	$	84	$	86
Long-term lease liabilities	15		33
Total lease liabilities, net	$	99	$	119

Additional information for the Company’s operating and finance leases is presented below:

	Successor						Predecessor
	Year Ended December 31, 2023		Year Ended December 31, 2022		Period from February 10, 2021 through December 31, 2021		Period from January 1, 2021 through February 9, 2021
Lease cost:
Finance lease cost	$	—	$	—	$	—	$	1
Operating lease cost	107		51		33		3
Short-term lease cost	40		74		13		—
Total lease cost	$	147	$	125	$	46	$	4
Other information:
Operating cash outflows from operating leases	$	10	$	15	$	7	$	—
Investing cash outflows from operating leases	$	137	$	110	$	39	$	3
Financing cash outflows from finance lease	$	—	$	—	$	—	$	1

	Successor
	December 31, 2023		December 31, 2022
Weighted average remaining lease term - operating leases	1.24 years		1.54 years
Weighted average discount rate - operating leases	7.02	%	6.64	%

Maturity analysis of operating lease liabilities is presented below:

	Successor
	December 31, 2023
2024	$	85
2025	17
2026	1
Total lease payments	103
Less imputed interest	(4)
Present value of lease liabilities	99
Less current maturities	(84)
Present value of lease liabilities, less current maturities	$	15