Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.20.1
Leases
3 Months Ended
Mar. 31, 2020
Leases [Abstract]  
Leases
Leases
Lease Arrangements and Supplemental Disclosures
We generally have lease arrangements for office facilities and certain office equipment, certain field equipment including compressors, drilling rigs, land easements and similar arrangements for rights-of-way, and certain gas gathering and gas lift assets. Our short-term leases included in the disclosures below are primarily comprised of our contractual arrangements with certain vendors for operated drilling rigs and our field compressors. During April 2020, we released our drilling rigs. Our primary variable lease was represented by our field gas gathering and gas lift agreement with a midstream service provider and the lease payments are charged on a volumetric basis at a contractual fixed rate.
The following table summarizes the components of our total lease cost for the periods presented:
 
 
Three Months Ended March 31,
 
 
2020
 
2019
Operating lease cost
 
$
210

 
$
163

Short-term lease cost
 
11,296

 
11,571

Variable lease cost
 
5,657

 
5,095

Less: Amounts charged as drilling costs 1
 
(10,621
)
 
(10,851
)
Total lease cost recognized in the Condensed Consolidated Statement of Operations 2
 
$
6,542

 
$
5,978

___________________
1 
Represents the combined gross amounts paid and (i) capitalized as drilling costs for our working interest share and (ii) billed to joint interest partners for their working interest share for short-term leases of operated drilling rigs.
2 
Includes $2.8 million and $2.1 million recognized in Gathering, processing and transportation, $3.5 million and $3.7 million recognized in Lease operating and $0.2 million and $0.2 million recognized in G&A for the three months ended March 31, 2020 and 2019, respectively.
The following table summarizes supplemental cash flow information related to leases for the periods presented:
 
Three Months Ended March 31,
 
2020
 
2019
Cash paid for amounts included in the measurement of lease liabilities:
 
 
 
Operating cash flows from operating leases
$
218

 
$
39

ROU assets obtained in exchange for lease obligations:
 
 
 
Operating leases 1
$
306

 
$
2,572


___________________
1    Includes $2.5 million recognized upon the adoption of Accounting Standards Codification Topic 842 (“ASC842”) in 2019.
The following table summarizes supplemental balance sheet information related to leases as of the dates presented:
 
March 31,
 
December 31,
 
2020
 
2019
ROU assets - operating leases
$
2,928

 
$
2,740

Current operating lease obligations
$
927

 
$
847

Noncurrent operating lease obligations
2,335

 
2,232

Total operating lease obligations
$
3,262

 
$
3,079

Weighted-average remaining lease term
 
 
 
Operating leases
3.8 Years

 
4.1 Years

Weighted-average discount rate
 
 
 
Operating leases
3.26
%
 
5.97
%
Remaining maturities of operating lease obligations as of March 31, 2020:
 
 
 
2020
$
689

 
 
2021
894

 
 
2022
874

 
 
2023
873

 
 
2024 and thereafter
144

 
 
Total undiscounted lease payments
3,474

 
 
Less: imputed interest
(212
)
 
 
Total operating lease obligations
$
3,262