Leases

9 Months Ended

Sep. 30, 2020

Lease Arrangements and Supplemental Disclosures

We generally have lease arrangements for office facilities and certain office equipment, certain field equipment including compressors, drilling rigs, crude oil storage tank capacity, land easements and similar arrangements for rights-of-way and certain gas gathering and gas lift assets. Our short-term leases included in the disclosures below are primarily comprised of our contractual arrangements with certain vendors for operated drilling rigs, crude oil storage tank capacity and our field compressors. Our primary variable lease was represented by our field gas gathering and gas lift agreement with a midstream service provider and the lease payments are charged on a volumetric basis at a contractual fixed rate.

The following table summarizes the components of our total lease cost for the periods presented:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Operating lease cost	$	215	$	208	$	645	$	565
Short-term lease cost	2,675		9,969		18,566		33,024
Variable lease cost	5,754		6,777		16,401		17,420
Less: Amounts charged as drilling costs 1	(1,978)		(9,224)		(16,309)		(30,865)
Total lease cost recognized in the Condensed Consolidated Statement of Operations 2	$	6,666	$	7,730	$	19,303	$	20,144

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1 Represents the combined gross amounts incurred and (i) capitalized as drilling costs for our working interest share and (ii) billed to joint interest partners for their working interest share for short-term leases of operated drilling rigs.

2 Includes $3.0 million and $3.9 million and $8.6 million and $8.9 million recognized in Gathering, processing and transportation expense (“GPT”), $3.5 million and $3.6 million and $10.1 million and $10.7 million recognized in Lease operating expense (“LOE”) for the three and nine months ended September 30, 2020 and 2019, respectively, and $0.2 million and $0.6 million recognized in G&A for each of the three and nine months ended September 30, 2020 and 2019, respectively.

The following table summarizes supplemental cash flow information related to leases for the periods presented:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	236	$	221	$	707	$	442
ROU assets obtained in exchange for lease obligations:
Operating leases 1	$	82	$	—	$	388	$	3,325

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1 Includes $2.5 million recognized upon the adoption of Accounting Standards Codification Topic 842 (“ASC842”) in 2019.

The following table summarizes supplemental balance sheet information related to leases as of the dates presented:


	September 30,			December 31,
	2020			2019
ROU assets – operating leases	$	2,625		$	2,740
Current operating lease obligations	$	953		$	847
Noncurrent operating lease obligations	1,948			2,232
Total operating lease obligations	$	2,901		$	3,079
Weighted-average remaining lease term – operating leases	3.3 years			4.1 years
Weighted-average discount rate – operating leases	3.25		%	5.97		%
Remaining maturities of operating lease obligations as of September 30, 2020:
2020	$	236
2021	936
2022	874
2023	872
2024 and thereafter	145
Total undiscounted lease payments	3,063
Less: imputed interest	(162)
Total operating lease obligations	$	2,901