Leases

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Leases

Leases

We have multi-year operating and financing leases for corporate office space, field location facilities, land, vehicles and various other equipment used in our operations. We also have a significant number of rentals related to our drilling operations that are day-to-day or month-to-month arrangements. Our multi-year leases have remaining lease terms of greater than one year to four years.

The components of lease expense were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2020		2019		2020		2019
Operating lease expense	$	153	$	127	$	456	$	376
Short-term lease expense	374		1,480		2,300		3,907
Variable lease expense	65		92		294		363
Finance lease expense:
Amortization of right-of-use assets	$	285	$	273	$	997	$	852
Interest expense on lease liabilities	228		41		680		120
Total finance lease expense	513		314		1,677		972
Total lease expense	$	1,105	$	2,013	$	4,727	$	5,618

Supplemental cash flow information related to leases is as follows:

	Nine Months Ended		Nine Months Ended
(in thousands)	September 30, 2020		September 30, 2019
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	469	$	357
Operating cash flows from finance leases	$	672	$	115
Financing cash flows from finance leases	$	3,499	$	1,003
Right-of-use assets obtained or recorded in exchange for lease obligations:
Operating leases	$	252	$	1,205
Finance leases	$	3,326	$	2,181

Supplemental balance sheet information related to leases is as follows:

(in thousands)	September 30, 2020			December 31, 2019
Operating leases:
Other long-term assets, net	$	928		$	1,033
Accrued liabilities	$	571		$	475
Other long-term liabilities	937			1,250
Total operating lease liabilities	$	1,508		$	1,725
Finance leases:
Property, plant and equipment	$	14,549		$	14,375
Accumulated depreciation	(851)			(1,425)
Property, plant and equipment, net	$	13,698		$	12,950
Current portion of long-term debt	$	3,141		$	3,685
Long-term debt	6,343			7,472
Total finance lease liabilities	$	9,484		$	11,157
Weighted-average remaining lease term
Operating leases	2.8 years			3.6 years
Finance leases	2.2 years			2.7 years
Weighted-average discount rate
Operating leases	8.14		%	8.07		%
Finance leases	9.02		%	7.64		%

Maturities of lease liabilities at September 30, 2020 were as follows:

(in thousands)	Operating Leases		Finance Leases
2020	$	193	$	972
2021	625		3,846
2022	451		5,138
2023	370		262
2024	47		—
Thereafter	—		—
Total cash lease payment	1,686		10,218
Add: expected residual value	—		564
Less: imputed interest	(178)		(1,298)
Total lease liabilities	$	1,508	$	9,484

Leases

Leases

We have multi-year operating and financing leases for corporate office space, field location facilities, land, vehicles and various other equipment used in our operations. We also have a significant number of rentals related to our drilling operations that are day-to-day or month-to-month arrangements. Our multi-year leases have remaining lease terms of greater than one year to four years.

The components of lease expense were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2020		2019		2020		2019
Operating lease expense	$	153	$	127	$	456	$	376
Short-term lease expense	374		1,480		2,300		3,907
Variable lease expense	65		92		294		363
Finance lease expense:
Amortization of right-of-use assets	$	285	$	273	$	997	$	852
Interest expense on lease liabilities	228		41		680		120
Total finance lease expense	513		314		1,677		972
Total lease expense	$	1,105	$	2,013	$	4,727	$	5,618

Supplemental cash flow information related to leases is as follows:

	Nine Months Ended		Nine Months Ended
(in thousands)	September 30, 2020		September 30, 2019
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	469	$	357
Operating cash flows from finance leases	$	672	$	115
Financing cash flows from finance leases	$	3,499	$	1,003
Right-of-use assets obtained or recorded in exchange for lease obligations:
Operating leases	$	252	$	1,205
Finance leases	$	3,326	$	2,181

Supplemental balance sheet information related to leases is as follows:

(in thousands)	September 30, 2020			December 31, 2019
Operating leases:
Other long-term assets, net	$	928		$	1,033
Accrued liabilities	$	571		$	475
Other long-term liabilities	937			1,250
Total operating lease liabilities	$	1,508		$	1,725
Finance leases:
Property, plant and equipment	$	14,549		$	14,375
Accumulated depreciation	(851)			(1,425)
Property, plant and equipment, net	$	13,698		$	12,950
Current portion of long-term debt	$	3,141		$	3,685
Long-term debt	6,343			7,472
Total finance lease liabilities	$	9,484		$	11,157
Weighted-average remaining lease term
Operating leases	2.8 years			3.6 years
Finance leases	2.2 years			2.7 years
Weighted-average discount rate
Operating leases	8.14		%	8.07		%
Finance leases	9.02		%	7.64		%

Maturities of lease liabilities at September 30, 2020 were as follows:

(in thousands)	Operating Leases		Finance Leases
2020	$	193	$	972
2021	625		3,846
2022	451		5,138
2023	370		262
2024	47		—
Thereafter	—		—
Total cash lease payment	1,686		10,218
Add: expected residual value	—		564
Less: imputed interest	(178)		(1,298)
Total lease liabilities	$	1,508	$	9,484