Leases and Lease Commitments (Tables)

12 Months Ended

Dec. 31, 2023

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,
Operating Leases:	2023			2022
Other assets	$	37,876		$	30,332
Accrued liabilities		(8,436	)		(13,480	)
Other liabilities		(29,438	)		(16,542	)
Finance Leases:
Drilling and other property and equipment, net of accumulated depreciation		128,303			145,510
Current finance lease liabilities		(15,960	)		(16,965	)
Noncurrent finance lease liabilities		(113,201	)		(131,393	)

Components of Lease Expense

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

	Successor						Predecessor
	Year Ended December 31,				Period from		Period from
					April 24, 2021 through		January 1, 2021 through
	2023		2022		December 21, 2021		April 23, 2021
Operating lease cost	$	15,712	$	19,479	$	11,754	$	11,799
Finance lease cost:
Amortization of ROU assets		17,207		17,207		11,854		—
Interest on lease liabilities		9,315		10,415		7,796		—
Short-term lease cost		101		242		199		101
Variable lease cost (1)		107,848		12,804		1,237		598
Total lease cost	$	150,183	$	60,147	$	32,840	$	12,498

(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
	Year Ended December 31,						Period from			Period from
							April 24, 2021 through			January 1, 2021 through
Operating Leases:	2023			2022			December 31. 2021			April 23, 2021
Operating cash flows used	$	15,014		$	19,031		$	12,005		$	10,817
ROU assets obtained in exchange for lease liabilities		21,027			8,662			19,064			1,076
Weighted-average remaining lease term (1)	4.6 years			4.0 years			4.4 years			5.9 years
Weighted-average discount rate (1)		9	%		7	%		7	%		6.89	%
Finance Leases:
Operating cash flows used	$	9,315		$	10,415		$	7,796		$	—
Financing cash flows used		16,965			15,865			9,845			—
ROU assets obtained in exchange for lease liabilities		—			—			174,571			—
Weighted-average remaining lease term (1)	2.5 years			3.5 years			4.5 years			n/a
Weighted-average discount rate (1)		7	%		7	%		7	%	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, 2023 are as follows (in thousands):

	Operating Leases			Finance Leases			Total
2024	$	11,181		$	26,352		$	37,533
2025		9,658			26,280			35,938
2026		9,386			94,198			103,584
2027		8,566			—			8,566
2028		4,771			—			4,771
Thereafter		2,788			—			2,788
Total lease payments	$	46,350		$	146,830		$	193,180
Less: Interest		(8,476	)		(17,669	)		(26,145	)
Total lease liability	$	37,874		$	129,161		$	167,035