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Leases (Tables)

12 Months Ended

Dec. 31, 2021

The components of lease costs were as follows (in thousands):


	Year Ended December 31,
	2021		2020		2019
Finance lease cost - interest on lease liabilities	$	11,453	$	15,748	$	19,115
Operating lease cost, excluding short-term leases(1)		2,706		3,361		3,261
Short-term lease cost(2)		38,472		53,573		85,865
Variable lease cost(3)		1,356		543		11
Total lease cost	$	53,987	$	73,225	$	108,252

(1)

Operating lease cost reflect a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a straight-line basis.

(2)

Short-term lease costs are reported at gross amounts and primarily represent costs incurred for drilling rigs, most of which are short-term contracts not recognized as a right-of-use asset and lease liability on the Consolidated Balance Sheets.

Variable lease costs primarily represent differences between minimum payment obligations and actual operating charges incurred by the Company related to its long-term leases.

Schedule of Right-of-Use Asset and Liability, Adjusted for Initial Direct Costs and Incentives

The present value of the fixed lease payments recorded as the Company’s right-of-use asset and liability, adjusted for initial direct costs and incentives were as follows (in thousands):


	Year Ended December 31,
	2021		2020
Operating leases:
Operating lease assets	$	5,714	$	6,855

Current portion of operating lease liabilities	$	1,715	$	1,793
Operating lease liabilities		16,330		18,554
Total operating lease liabilities	$	18,045	$	20,347

Finance leases:
Proved property	$	124,299	$	124,299

Other current liabilities	$	27,083	$	21,804
Other long-term liabilities		13,138		40,222
Total finance lease liabilities	$	40,221	$	62,026

Schedule of Lease Maturity

The table below presents the lease maturity by year as of December 31, 2021 (in thousands). Such commitments are reflected at undiscounted values and are reconciled to the discounted present value recognized on the Consolidated Balance Sheets.


	Operating Leases			Finance Leases
2022	$	3,712		$	33,257
2023		3,652			13,857
2024		3,454			—
2025		3,519			—
2026		3,584			—
Thereafter		9,258			—
Total lease payments	$	27,179		$	47,114
Imputed interest		(9,134	)		(6,893	)
Total lease liabilities	$	18,045		$	40,221

Schedule of Weighted Average Remaining Lease Term and Discount Rate

The table below presents the weighted average remaining lease term and discount rate related to leases:


	Year Ended December 31,
	2021			2020			2019
Weighted average remaining lease term:
Operating leases	7.4 years			7.8 years			8.4 years
Finance leases	1.4 years			2.4 years			3.4 years
Weighted average discount rate:
Operating leases		11.9	%		12.0	%		10.2	%
Finance leases		21.9	%		21.9	%		21.9	%

Supplemental Cash Flow Information Related to Leases

The table below presents the supplemental cash flow information related to leases (in thousands):


	Year Ended December 31,
	2021		2020		2019
Operating cash outflow from finance leases	$	11,453	$	15,748	$	19,115
Operating cash outflow from operating leases	$	3,864	$	2,648	$	1,812

Right-of-use assets obtained in exchange for new operating lease liabilities	$	1,020	$	—	$	2,225