Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Leases

Note 5. 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 14 years, with certain land leases having

remaining terms up to 48 years.  Leases with a term of 12 months or less are not recorded on our balance sheet. The table below reflects our operating lease right-of-use assets and operating lease liabilities, which primarily consist of our office leases:

	Successor
In thousands	December 31, 2021		December 31, 2020
Operating leases
Operating lease right-of-use assets	$	19,502	$	20,342
Operating lease liabilities – current	$	4,677	$	1,350
Operating lease liabilities – long-term	17,094		19,460
Total operating lease liabilities	$	21,771	$	20,810

The majority of our leases contain renewal options, typically exercisable at our sole discretion. At emergence, we recorded right-of-use assets and liabilities based on the fair value of lease payments and utilized our incremental borrowing rate based on information available at the Emergence Date. The following weighted average remaining lease terms and discount rates related to our outstanding operating leases:

	Successor
	December 31, 2021		December 31, 2020
Weighted average remaining lease term	5.2 years		6.3 years
Weighted average discount rate	5.4	%	5.6	%

We account for lease and nonlease components in a contract as a single lease component for all asset classes. 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. Variable lease costs represent additional payments in excess of our minimum base rental payments under our office space leases. The Predecessor Company previously subleased part of the office space included in its operating leases for which it received rental payments. Since those office space leases were terminated during the Chapter 11 Restructuring, the underlying sublease agreements were also terminated. The Successor

Company subsequently entered into an operating lease for a new corporate office space which commenced in October 2020. The following table summarizes the components of lease costs and sublease income:

		Successor				Predecessor
		Year Ended Dec. 31, 2021		Period from Sept. 19, 2020 through Dec. 31, 2020		Period from Jan. 1, 2020 through Sept. 18, 2020		Year Ended Dec. 31, 2019
In thousands	Income Statement
Operating lease cost	General and administrative expenses	$	4,102	$	872	$	5,683	$	8,924
	Lease operating expenses	655		158		214		58
	CO2 operating and discovery expenses	50		14		37		5
		$	4,807	$	1,044	$	5,934	$	8,987
Finance lease cost
Amortization of right-of-use assets	Depletion, depreciation, and amortization	$	—	$	3	$	9	$	1,188
Interest on lease liabilities	Interest expense	—		1		3		40
Total finance lease cost		$	—	$	4	$	12	$	1,228
Variable lease cost		$	670	$	258	$	3,688	$	4,852
Sublease income	General and administrative expenses	$	—	$	100	$	2,584	$	4,127

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

	Successor				Predecessor
	Year Ended Dec. 31, 2021		Period from Sept. 19, 2020 through Dec. 31, 2020		Period from Jan. 1, 2020 through Sept. 18, 2020		Year Ended Dec. 31, 2019
In thousands
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	2,830	$	341	$	7,341	$	10,995
Operating cash flows from interest on finance leases	—		1		3		40
Financing cash flows from finance leases	—		78		10		1,275
Right-of-use assets obtained in exchange for lease obligations
Operating leases	2,683		19,902		1,049		415
Finance leases	—		—		162		—

The following table summarizes by year the maturities of our lease liabilities as of December 31, 2021:

	Operating
In thousands	Leases
2022	$	5,705
2023	4,712
2024	4,138
2025	4,177
2026	4,203
Thereafter	2,326
Total minimum lease payments	25,261
Less: Amount representing interest	(3,490)
Present value of minimum lease liabilities	$	21,771