Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.20.2
Leases
9 Months Ended
Sep. 30, 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, crude oil storage tank capacity, 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, crude oil storage tank capacity and our field compressors. 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 September 30, Nine Months Ended September 30,
2020 2019 2020 2019
Operating lease cost $ 215  $ 208  $ 645  $ 565 
Short-term lease cost 2,675  9,969  18,566  33,024 
Variable lease cost 5,754  6,777  16,401  17,420 
Less: Amounts charged as drilling costs 1
(1,978) (9,224) (16,309) (30,865)
Total lease cost recognized in the Condensed Consolidated Statement of Operations 2
$ 6,666  $ 7,730  $ 19,303  $ 20,144 
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1    Represents the combined gross amounts incurred 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 $3.0 million and $3.9 million and $8.6 million and $8.9 million recognized in Gathering, processing and transportation expense (“GPT”), $3.5 million and $3.6 million and $10.1 million and $10.7 million recognized in Lease operating expense (“LOE”) for the three and nine months ended September 30, 2020 and 2019, respectively, and $0.2 million and $0.6 million recognized in G&A for each of the three and nine months ended September 30, 2020 and 2019, respectively.
The following table summarizes supplemental cash flow information related to leases for the periods presented:
Three Months Ended September 30, Nine Months Ended September 30,
2020 2019 2020 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 236  $ 221  $ 707  $ 442 
ROU assets obtained in exchange for lease obligations:
Operating leases 1
$ 82  $ —  $ 388  $ 3,325 
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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:
September 30, December 31,
2020 2019
ROU assets – operating leases $ 2,625  $ 2,740 
Current operating lease obligations $ 953  $ 847 
Noncurrent operating lease obligations 1,948  2,232 
Total operating lease obligations $ 2,901  $ 3,079 
Weighted-average remaining lease term – operating leases 3.3 years 4.1 years
Weighted-average discount rate – operating leases 3.25  % 5.97  %
Remaining maturities of operating lease obligations as of September 30, 2020:
2020 $ 236 
2021 936 
2022 874 
2023 872 
2024 and thereafter 145 
Total undiscounted lease payments 3,063 
Less: imputed interest (162)
Total operating lease obligations $ 2,901