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Leases
 12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Leases LeasesThe Company currently has leases associated with contracts for office space, drilling rigs, and the use of well equipment, vehicles, information technology infrastructure, and other office equipment. The tables below, which present the components of lease costs and
supplemental balance sheet information are presented on a gross basis. Other joint owners in the properties operated by the Company generally pay for their working interest share of costs associated with drilling rigs and well equipment.
The table below presents the components of the Company’s lease costs for the year ended December 31, 2021.
Years Ended December 31,
202120202019
(In thousands)
Components of Lease Costs
Finance lease costs$277 $1,489 $92 
Amortization of right-of-use assets (1)
237 1,348 82 
Interest on lease liabilities (2)
40 141 10 
Operating lease cost (3)
37,734 46,888 38,076 
Impairment of Operating lease ROU assets (4)
— 3,575 16,209 
Short-term lease cost (5)
347 1,821 3,640 
Variable lease costs (6)
284 259 — 
Total lease costs$38,642 $54,032 $58,017 
(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 years ended December 31, 2021, 2020 and 2019, approximately $23.0 million, $34.2 million and $34.9 million, respectively, are costs associated with drilling rigs. These costs were capitalized to “Evaluated properties, net” 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 the Company’s 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 years ended December 31, 2021, 2020 and 2019 of zero, $3.6 million and $16.2 million, respectively, which are a component of “Merger and integration expenses” in the consolidated statements of operations.
(5)Short-term lease cost excludes 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.
The table below presents supplemental balance sheet information for the Company’s operating leases. The Company’s financing leases are immaterial.
As of December 31,
20212020
(In thousands)
Leases
Operating leases:
Operating lease ROU assets$23,884 $22,526 
Current operating lease liabilities$17,599 $13,175 
Long-term operating lease liabilities23,547 27,576 
Total operating lease liabilities$41,146 $40,751 
The table below presents the weighted average remaining lease terms and weighted average discounts rates for the Company’s leases as of December 31, 2021.
December 31, 2021
Weighted Average Remaining Lease Terms (In years)
Operating leases5.1
Financing leases2.2
Weighted Average Discount Rate
Operating leases5.6 %
Financing leases6.6 %
The table below presents the maturity of the Company’s lease liabilities as of December 31, 2021.
Operating LeasesFinancing Leases
(In thousands)
2022$18,981 $250 
20235,031 233 
20244,939 39 
20253,958 — 
20263,805 — 
Thereafter10,334 — 
   Total lease payments47,048 522 
Less imputed interest(5,902)(36)
   Total lease liabilities$41,146 $486 
Leases LeasesThe Company currently has leases associated with contracts for office space, drilling rigs, and the use of well equipment, vehicles, information technology infrastructure, and other office equipment. The tables below, which present the components of lease costs and
supplemental balance sheet information are presented on a gross basis. Other joint owners in the properties operated by the Company generally pay for their working interest share of costs associated with drilling rigs and well equipment.
The table below presents the components of the Company’s lease costs for the year ended December 31, 2021.
Years Ended December 31,
202120202019
(In thousands)
Components of Lease Costs
Finance lease costs$277 $1,489 $92 
Amortization of right-of-use assets (1)
237 1,348 82 
Interest on lease liabilities (2)
40 141 10 
Operating lease cost (3)
37,734 46,888 38,076 
Impairment of Operating lease ROU assets (4)
— 3,575 16,209 
Short-term lease cost (5)
347 1,821 3,640 
Variable lease costs (6)
284 259 — 
Total lease costs$38,642 $54,032 $58,017 
(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 years ended December 31, 2021, 2020 and 2019, approximately $23.0 million, $34.2 million and $34.9 million, respectively, are costs associated with drilling rigs. These costs were capitalized to “Evaluated properties, net” 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 the Company’s 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 years ended December 31, 2021, 2020 and 2019 of zero, $3.6 million and $16.2 million, respectively, which are a component of “Merger and integration expenses” in the consolidated statements of operations.
(5)Short-term lease cost excludes 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.
The table below presents supplemental balance sheet information for the Company’s operating leases. The Company’s financing leases are immaterial.
As of December 31,
20212020
(In thousands)
Leases
Operating leases:
Operating lease ROU assets$23,884 $22,526 
Current operating lease liabilities$17,599 $13,175 
Long-term operating lease liabilities23,547 27,576 
Total operating lease liabilities$41,146 $40,751 
The table below presents the weighted average remaining lease terms and weighted average discounts rates for the Company’s leases as of December 31, 2021.
December 31, 2021
Weighted Average Remaining Lease Terms (In years)
Operating leases5.1
Financing leases2.2
Weighted Average Discount Rate
Operating leases5.6 %
Financing leases6.6 %
The table below presents the maturity of the Company’s lease liabilities as of December 31, 2021.
Operating LeasesFinancing Leases
(In thousands)
2022$18,981 $250 
20235,031 233 
20244,939 39 
20253,958 — 
20263,805 — 
Thereafter10,334 — 
   Total lease payments47,048 522 
Less imputed interest(5,902)(36)
   Total lease liabilities$41,146 $486