Leases (Tables)

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Lease, Cost

The following table presents supplemental consolidated statement of income information related to lease expenses, on a gross basis, for the years ended December 31, 2023 and 2022, respectively (in thousands). Lease payments represent gross payments to vendors, which, for certain of the Company’s operating assets, are partially offset by amounts received from other working interest owners in the Company’s operated wells.

	Year Ended December 31,
	2023		2022
Operating leases
Lease operating	$	25,637	$	15,970
Plant and other midstream services	360		285
General and administrative	2,933		3,266
Total operating leases(1)	28,930		19,521
Short-term leases
Lease operating	27,252		17,437
Plant and other midstream services	5,590		4,359
General and administrative	63		34
Total short-term leases(2)(3)	32,905		21,830
Financing leases
Depreciation of assets	2,765		571
Interest on lease liabilities	410		143
Total financing leases	3,175		714
Total lease expense	$	65,010	$	42,065

_____________________

(1)     Does not include gross payments related to drilling rig leases of $84.1 million and $58.7 million for the years ended December 31, 2023 and 2022, respectively, that were capitalized and recorded in “Oil and natural gas properties, full-cost method” in the consolidated balance sheets at December 31, 2023 and 2022, respectively.

(2)    These costs are related to leases that are not recorded as right of use assets or lease liabilities in the consolidated balance sheets as they are short-term leases.

(3)    Does not include gross payments related to short-term drilling rig leases and other equipment rentals of $159.7 million and $101.5 million for the years ended December 31, 2023 and 2022, respectively, that were capitalized and recorded in “Oil and natural gas properties, full-cost method” in the consolidated balance sheets at December 31, 2023 and 2022, respectively.

The following table presents supplemental consolidated cash flow information related to lease payments for the years ended December 31, 2023 and 2022, respectively (in thousands).

	Year Ended December 31,
	2023		2022
Cash paid related to lease liabilities
Operating cash payments for operating leases	$	28,766	$	19,290
Investing cash payments for operating leases	$	84,065	$	58,693
Financing cash payments for financing leases	$	1,082	$	620
Right of use assets obtained in exchange for lease obligations entered into during the period
Operating leases	$	87,042	$	80,254
Financing leases	$	3,891	$	1,511

Assets And Liabilities, Lessee

The following table presents supplemental consolidated balance sheet information related to leases as of December 31, 2023 and 2022, respectively (in thousands).

	December 31,
	2023		2022
Operating leases
Other long-term assets	$	44,404	$	58,798
Other current liabilities	$	(36,946)	$	(43,921)
Other long-term liabilities	(10,800)		(19,532)
Total operating lease liabilities	$	(47,746)	$	(63,453)
Financing leases
Other property and equipment, at cost	$	11,316	$	7,425
Accumulated depreciation	(7,236)		(4,470)
Net property and equipment	$	4,080	$	2,955
Other current liabilities	$	(1,254)	$	(685)
Other long-term liabilities	(869)		(630)
Total financing lease liabilities	$	(2,123)	$	(1,315)

Lessee, Lease Terms

The following table presents the maturities of lease liabilities at December 31, 2023 (in years).

Weighted-Average Remaining Lease Term	December 31, 2023
Operating leases	1.4
Financing leases	1.6

Finance Lease, Liability, Maturity

The following table presents a schedule of future minimum lease payments required under all lease agreements as of December 31, 2023 (in thousands). 

	December 31, 2023
	Operating Leases		Financing Leases
2024	$	36,946	$	1,254
2025	8,939		842
2026	3,035		153
2027	296		—
2028	—		—
Thereafter	—		—
Total lease payments	49,216		2,249
Less imputed interest	(1,470)		(126)
Total lease obligations	47,746		2,123
Less current obligations	(36,946)		(1,254)
Long-term lease obligations	$	10,800	$	869

Lessee, Operating Lease, Liability, Maturity

The following table presents a schedule of future minimum lease payments required under all lease agreements as of December 31, 2023 (in thousands). 

	December 31, 2023
	Operating Leases		Financing Leases
2024	$	36,946	$	1,254
2025	8,939		842
2026	3,035		153
2027	296		—
2028	—		—
Thereafter	—		—
Total lease payments	49,216		2,249
Less imputed interest	(1,470)		(126)
Total lease obligations	47,746		2,123
Less current obligations	(36,946)		(1,254)
Long-term lease obligations	$	10,800	$	869