Leases

12 Months Ended

Dec. 31, 2019

Note 3. Leases

We evaluate contracts for leasing arrangements at inception. We lease office space, equipment, and vehicles that have non-cancelable lease terms. Currently, our outstanding leases have remaining terms up to 6 years, with certain land leases having remaining terms up to 50 years. Leases with a term of 12 months or less are not recorded on our balance sheet. During the third quarter of 2019, we exercised the early buyout option on our remaining finance leases. The table below reflects our operating lease right-of-use assets and operating lease liabilities, which primarily consists of our office leases:



	December 31,
In thousands	2019
Operating leases
Operating lease right-of-use assets	$	34,099

Operating lease liabilities - current	$	6,901
Operating lease liabilities - long-term	41,932
Total operating lease liabilities	$	48,833

The majority of our leases contain renewal options, typically exercisable at our sole discretion. We record right-of-use assets and liabilities based on the present value of lease payments over the initial lease term, unless the option to extend the lease is reasonably certain, and utilize our incremental borrowing rate based on information available at the lease commencement date. The following weighted average remaining lease terms and discount rates related to our outstanding operating leases:



	December 31,
	2019
Weighted average remaining lease term	5.7 years
Weighted average discount rate	6.7	%

Lease costs for operating leases or leases with a term of 12 months or less are recognized on a straight-line basis over the lease term. For finance leases, interest on the lease liability and the amortization of the right-of-use asset are recognized separately, with the depreciable life reflective of the expected lease term. We have subleased part of the office space included in our operating leases. We expect to receive a total of approximately $10.4 million for 2020 through 2025 under our sublease agreements. The following table summarizes the components of lease costs and sublease income:



		Year Ended
In thousands	Income Statement	December 31, 2019
Operating lease cost	General and administrative expenses	$	8,924
	Lease operating expenses	58
	CO₂ discovery and operating expenses	5
		$	8,987
Finance lease cost
Amortization of right-of-use assets	Depletion, depreciation, and amortization	$	1,188
Interest on lease liabilities	Interest expense	40
Total finance lease cost		$	1,228

Sublease income	General and administrative expenses	$	4,127

Our statement of cash flows included the following activity related to our operating and finance leases:



	Year Ended
In thousands	December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	10,995
Operating cash flows from interest on finance leases	40
Financing cash flows from finance leases	1,275

Right-of-use assets obtained in exchange for lease obligations
Operating leases	415
Finance leases	—

The following table summarizes by year the maturities of our minimum lease payments as of December 31, 2019, but excludes future sublease receipts associated with sublease contracts we have for a portion of these operating leases:



	Operating
In thousands	Leases
2020	$	9,934
2021	10,056
2022	10,259
2023	10,300
2024	10,317
Thereafter	8,287
Total minimum lease payments	59,153
Less: Amount representing interest	(10,320		)
Present value of minimum lease payments	$	48,833

The following table summarizes by year the remaining non-cancelable future payments under our leases, as accounted for under previous accounting guidance under FASC Topic 840, Leases, as of December 31, 2018:



	Operating
In thousands	Leases
2019	$	10,690
2020	9,776
2021	10,007
2022	10,223
2023	10,262
Thereafter	18,169
Total minimum lease payments	$	69,127