Leases

9 Months Ended

Sep. 30, 2022

Leases [Abstract]

Leases

Leases

We lease certain pipeline, transportation and compressor equipment. Certain of our easements and rights-of-way are also subject to operating lease accounting. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term.

Our leases do not have any outstanding renewal options. Certain leases also include options to purchase the leased equipment.

Certain of our lease agreements include rates based on equipment usage and others include rate inflationary indices based increases. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The following table presents additional information related to our operating leases in accordance ASC 842:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2022		2021		2022			2021
Lease Cost (1)
Operating lease cost	$	3,060	$	3,659	$	9,021		$	9,768
Short-term lease cost	1,060		484		2,171			1,262
Variable lease costs	—		276		1,203			235
Total lease cost	$	4,120	$	4,419	$	12,395		$	11,265
Other Information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	(3,060)	$	(3,659)	$	(9,021)		$	(9,768)
Leased assets obtained in exchange for new operating lease liabilities (1)	$	1,120	$	318	$	9,553		$	5,679
					Nine Months Ended September 30,
					2022			2021
Weighted-average remaining lease term (years) for operating leases					3.3			4.8
Weighted-average discount rate (2) operating leases					6.0		%	6.4		%
Weighted-average remaining lease term (years) for financing lease					1.4			6.7
Weighted-average discount rate (2) financing lease					1.9		%	3.2		%

(1) Includes an immaterial amount of financing lease.

(2)Our discount rate is primarily based on our incremental borrowing rate in accordance with ASC 842.