LEASES

6 Months Ended

Jun. 30, 2020

The Company leases certain drilling rigs, facilities, compression and other equipment.

The following table summarizes operating lease costs for the three months and six months ended June 30, 2020 and 2019:


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
	(in millions)
Operating lease costs	$	4	$	8	$	9	$	12

For the six months ended June 30, 2020 and 2019, cash paid for operating lease liabilities, and reported in cash flows provided by operating activities on the Company’s Statements of Consolidated Cash Flows, was $9 million and $12 million, respectively. During the six months ended June 30, 2020 and 2019, the Company recorded an additional $10 million and $13 million of right-of-use assets in exchange for new lease liabilities, respectively.

The operating lease right-of-use assets were reported in other assets and the current and noncurrent portions of the operating lease liabilities were reported in other accrued liabilities and other long-term liabilities, respectively, on the Consolidated Balance Sheets. As of June 30, 2020, the operating right-of-use assets were $16 million and operating lease liabilities were $16 million, of which $11 million was classified as current. As of June 30, 2020, the weighted average remaining lease term was 1.6 years and the weighted average discount rate was 9.4%.

Schedule of Operating Lease Liability Maturities. The following table summarizes undiscounted cash flows owed by the Company to lessors pursuant to contractual agreements in effect as of June 30, 2020:


	As of June 30, 2020
	(in millions)
2020 (July - December)	$	8
2021	6
2022	4
2023	—
2024	—
Thereafter	—
Total lease payments	18
Less: interest	2
Present value of lease liabilities	$	16