Leases and Lease Commitments (Tables)

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Schedule of Amounts Recognized in Unaudited Condensed Consolidated Balance Sheets

Amounts recognized in our Consolidated Balance Sheets for both our operating and finance leases are as follows (in thousands):

	December 31,
	2022			2021
Operating Leases:
Other assets	$	30,332		$	38,834
Accrued liabilities		(13,480	)		(15,998	)
Other liabilities		(16,542	)		(22,762	)
Finance Leases:
Drilling and other property and equipment, net of accumulated depreciation		145,510			162,717
Current finance lease liabilities		(16,965	)		(15,865	)
Noncurrent finance lease liabilities		(131,393	)		(148,358	)

Components of Lease Expense

Components of lease expense are as follows (in thousands):

	Successor				Predecessor
			Period from		Period from
	Year Ended December 31,		April 24, 2021 through		January 1, 2021 through		Year Ended December 31,
	2022		December 31, 2021		April 23, 2021		2020
Operating lease cost	$	19,479	$	11,754	$	11,799	$	35,964
Finance lease cost:
Amortization of ROU assets		17,207		11,854		—		—
Interest on lease liabilities		10,415		7,796		—		—
Short-term lease cost		242		199		101		832
Variable lease cost (1)		12,804		1,237		598		1,465
Total lease cost	$	60,147	$	32,840	$	12,498	$	38,261

(1)Includes charter expenses incurred post-commencement of drilling operations for the managed rigs.

Supplemental Information Related to Leases

Supplemental information related to leases is as follows (in thousands, except weighted-average data):

	Successor						Predecessor
				Period from			Period from
	Year Ended December 31,			April 24, 2021 through			January 1, 2021 through			Year Ended December 31,
	2022			December 31, 2021			April 23, 2021			2020
Operating Leases:
Operating cash flows used	$	19,031		$	12,005		$	10,817		$	35,057
ROU assets obtained in exchange for lease liabilities		8,662			19,064			1,076			10,645
Weighted-average remaining lease term (1)	4.0 years			4.4 years			5.9 years			5.6 years
Weighted-average discount rate (1)		6.79	%		6.53	%		6.89	%		8.94	%
Finance Leases:
Operating cash flows used	$	10,415		$	7,796		$	—		$	—
Financing cash flows used		15,865			9,845			—			—
ROU assets obtained in exchange for lease liabilities		—			174,571			—			—
Weighted-average remaining lease term (1)	3.5 years			4.5 years			n/a			n/a
Weighted-average discount rate (1)		6.72	%		6.72	%	n/a			n/a

(1)Amounts represent the weighted average remaining lease term or discount rate as of the end of the respective period presented.

Schedule of Maturities of Lease Liabilities

Maturities of lease liabilities as of December 31, 2022 are as follows (in thousands):

	Operating Leases			Finance Leases			Total
2023	$	14,937		$	26,280		$	41,217
2024		4,845			26,352			31,197
2025		3,686			26,280			29,966
2026		3,524			96,430			99,954
2027		3,437			—			3,437
Thereafter		4,258			—			4,258
Total lease payments		34,687			175,342		$	210,029
Less: interest		(4,665	)		(26,984	)
Total lease liability	$	30,022		$	148,358