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 |
|
|