Leases (Tables)

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Components of Lease Costs

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

	Year Ended December 31,
	2020		2019
Finance lease cost - interest on lease liabilities(1)	$	15,748	$	19,115
Operating lease cost, excluding short-term leases(2)		3,361		3,261
Short-term lease cost(3)		53,573		85,865
Variable lease cost(4)		543		11
Total lease cost	$	73,225	$	108,252

⁽¹⁾ The Helix Producer I (the “HP-I”) is utilized in the Company’s oil and natural gas development activities and the right-of-use asset was capitalized and included in proved property and depleted as part of the full cost pool. Once items are included in the full cost pool, they are indistinguishable from other proved properties. The capitalized costs within the full cost pool are amortized over the life of the total proved reserved using the unit-of-production method, computed quarterly.

⁽²⁾ 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.

⁽³⁾ 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.

⁽⁴⁾ 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 are as follows (in thousands):

	Year Ended December 31,
	2020		2019
Operating leases:
Operating lease assets	$	6,855	$	7,779
Current portion of operating lease liabilities	$	1,793	$	1,594
Operating lease liabilities		18,554		17,239
Total operating lease liabilities	$	20,347	$	18,833
Finance leases:
Proved property (1)	$	124,299	$	124,299
Other current liabilities	$	21,804	$	17,509
Other long-term liabilities		40,222		62,026
Total finance lease liabilities	$	62,026	$	79,535

⁽¹⁾ The HP-I is utilized in the Company’s oil and natural gas development activities and the right-of-use asset was capitalized and included in proved property and depleted as part of the full cost pool. Once items are included in the full cost pool, they are indistinguishable from other proved properties. The capitalized costs within the full cost pool are amortized over the life of the total proved reserves using the unit-of-production method, computed quarterly.

Schedule of Lease Maturity

The table below presents the lease maturity by year as of December 31, 2020 (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
2021	$	4,079		$	33,257
2022		4,302			33,257
2023		4,239			13,857
2024		3,315			—
2025		3,293			—
Thereafter		12,497			—
Total lease payments	$	31,725		$	80,371
Imputed interest		(11,378	)		(18,345	)
Total	$	20,347		$	62,026

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 for the years ended December 31, 2020 and 2019:

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

Supplemental Cash Flow Information Related to Leases

The table below presents the supplemental cash flow information related to leases for the years ended December 31, 2020 and 2019 (in thousands):

	Year Ended December 31,
	2020		2019
Operating cash outflow from finance leases	$	15,748	$	19,115
Financing cash outflow from finance leases	$	17,509	$	14,133
Operating cash outflow from operating leases	$	2,648	$	1,812
Right-of-use assets obtained in exchange for new operating lease liabilities	$	—	$	2,225