Leases

12 Months Ended

Dec. 31, 2021

Note 11 – Leases

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:


	Year Ended December 31,
	2021		2020		2019
Operating lease cost	$	891	$	979	$	773
Short-term lease cost	24,655		23,721		36,202
Variable lease cost	24,807		21,932		23,762
Less: Amounts charged as drilling costs 1	(21,213)		(20,708)		(33,354)
Total lease cost recognized in the consolidated statement of operations 2	$	29,140	$	25,924	$	27,383

___________________

1 Represents the combined gross amounts paid 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 $10.8 million, $11.2 million and $12.1 million recognized in GPT, $17.4 million, $13.8 million and $14.5 million recognized in Lease operating expense (“LOE”) and $0.9 million, $1.0 million and $0.8 million recognized in G&A for the years ended December 31, 2021, 2020, and 2019, respectively.

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


	Year Ended December 31,
	2021		2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	981	$	943	$	659
ROU assets obtained in exchange for operating lease obligations 1	$	—	$	388	$	3,325

___________________

1 Includes $2.5 million recognized upon adoption of ASC Topic 842, Leases and $0.8 million obtained during the twelve months ended December 31, 2019.

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


		December 31,
Leases	Balance Sheet Location	2021		2020
Assets
ROU assets – operating leases	Other assets	$	1,671	$	2,432

Liabilities
Current operating lease obligations	Accounts payable and accrued liabilities	$	914	$	936
Non-current operating lease obligations	Other non-current liabilities	975		1,752
Total operating lease obligations		$	1,889	$	2,688

The following table presents other information as it relates to operating leases as of the dates presented:


	December 31,
	2021		2020
Weighted-average remaining lease term – operating leases	2.1 years		3.1 years
Weighted-average discount rate – operating leases	3.13	%	3.24	%

As of December 31, 2021, maturities of our operating lease liabilities consisted of the following:


	December 31, 2021
2022	$	930
2023	878
2024	146
2025	—
2026	—
Total undiscounted lease payments	1,954
Less: imputed interest	(65)
Total operating lease obligations	$	1,889