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Leases (Tables)
 6 Months Ended
Jun. 30, 2020
Leases [Abstract]  
Lease, Cost
The table below presents the components of the Company’s lease costs for the periods indicated:
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
(In thousands)(In thousands)
Components of Lease Costs
Finance lease costs$552  $—  $1,128  $—  
Amortization of right-of-use assets (1)
510  —  1,020  —  
Interest on lease liabilities (2)
42  —  108  —  
Operating lease costs (3)
16,387  9,565  33,664  19,156  
Impairment of Operating lease ROU assets (4)
1,982  —  3,575  —  
Short-term lease costs (5)
38  1,849  1,726  3,347  
Variable lease costs (6)
70  —  74  —  
Total lease costs$19,029  $11,414  $40,167  $22,503  

(1) Included as a component of “Depreciation, depletion and amortization” in the consolidated statements of operations.
(2) Included as a component of “Interest expense, net of capitalized amounts” in the consolidated statements of operations.
(3) For the three months ended June 30, 2020 and 2019, approximately $15.2 million and $7.0 million were costs associated with drilling rigs. For the six months ended June 30, 2020 and 2019, approximately $23.7 million and $13.9 million were costs associated with drilling rigs. and were capitalized to “Evaluated properties” in the consolidated balance sheets and the other remaining operating lease costs were components of “General and administrative” and “Lease operating” in the consolidated statements of operations.
(4) As a result of the downturn in economic conditions in conjunction with our ongoing effort to consolidate various office locations due to the Carrizo Acquisition, the Company evaluated certain of its office leases for impairment. Upon evaluation, the Company recorded impairments of certain of its Operating lease ROU assets for the three and six months ended June 30, 2020 of $2.0 million and $3.6 million which is a component of “Merger and integration expenses” in the consolidated statements of operations.
(5) Short-term lease costs exclude expenses related to leases with a contract term of one month or less.
(6) Variable lease costs include additional payments that were not included in the initial measurement of the lease liability and related ROU asset for lease agreements with terms greater than 12 months. Variable lease costs primarily consist of incremental usage associated with drilling rigs.
Assets and Liabilities, Lessee
The table below presents supplemental balance sheet information for the Company’s leases as of the periods indicated:
June 30, 2020December 31, 2019
(In thousands)
Leases
Operating leases:
Operating lease ROU assets$35,926  $63,908  
Current operating lease liabilities$24,355  $42,858  
Long-term operating lease liabilities30,729  37,088  
Total operating lease liabilities$55,084  $79,946  
Financing leases:
Other property and equipment$2,313  $2,197  
Accumulated depreciation(1,257) (82) 
Other property and equipment, net$1,056  $2,115  
Current financing lease liabilities$463  $1,334  
Long-term financing lease liabilities572  807  
Total financing lease liabilities$1,035  $2,141  
Lease Term and Discount Rate, Lessee
The table below presents the weighted average remaining lease terms and weighted average discounts rates for the Company’s leases for the period indicated:
As of June 30, 2020
Weighted Average Remaining Lease Term (In years)
Operating leases5.4
Financing leases2.8
Weighted Average Discount Rate
Operating leases5.4 %
Financing leases7.1 %
Lessee, Operating Lease, Liability, Maturity
The table below presents the maturity of the Company’s lease liabilities as of June 30, 2020:
Operating LeasesFinancing Leases
(In thousands)
Remainder of 2020$16,362  $363  
202114,116  275  
20225,453  234  
20235,013  233  
20244,937  38  
Thereafter18,097  —  
   Total lease payments63,978  1,143  
Less imputed interest(8,894) (108) 
   Total $55,084  $1,035  
Finance Lease, Liability, Maturity
The table below presents the maturity of the Company’s lease liabilities as of June 30, 2020:
Operating LeasesFinancing Leases
(In thousands)
Remainder of 2020$16,362  $363  
202114,116  275  
20225,453  234  
20235,013  233  
20244,937  38  
Thereafter18,097  —  
   Total lease payments63,978  1,143  
Less imputed interest(8,894) (108) 
   Total $55,084  $1,035