Leases

12 Months Ended

Dec. 31, 2022

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 13 years, with certain land leases having

remaining terms up to 47 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:



In thousands	December 31, 2022		December 31, 2021
Operating leases
Operating lease right-of-use assets	$	18,017	$	19,502

Operating lease liabilities – current	$	4,676	$	4,677
Operating lease liabilities – long-term	15,431		17,094
Total operating lease liabilities	$	20,107	$	21,771

The majority of our leases contain renewal options, typically exercisable at our sole discretion. The following table presents weighted average remaining lease terms and discount rates for our outstanding operating leases:



	December 31, 2022		December 31, 2021
Weighted average remaining lease term	4.5 years		5.2 years
Weighted average discount rate	5.7	%	5.4	%

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, 2022		Year Ended Dec. 31, 2021		Period from Sept. 19, 2020 through Dec. 31, 2020		Period from Jan. 1, 2020 through Sept. 18, 2020
In thousands	Income Statement
Operating lease cost	General and administrative expenses	$	5,532	$	4,102	$	872	$	5,683
	Lease operating expenses	178		655		158		214
	CO2 operating and discovery expenses	50		50		14		37
		$	5,760	$	4,807	$	1,044	$	5,934
Finance lease cost
Amortization of right-of-use assets	Depletion, depreciation, and amortization	$	—	$	—	$	3	$	9
Interest on lease liabilities	Interest expense	—		—		1		3
Total finance lease cost		$	—	$	—	$	4	$	12

Variable lease cost		$	758	$	670	$	258	$	3,688

Sublease income	General and administrative expenses	$	—	$	—	$	100	$	2,584

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


	Successor						Predecessor
	Year Ended Dec. 31, 2022		Year Ended Dec. 31, 2021		Period from Sept. 19, 2020 through Dec. 31, 2020		Period from Jan. 1, 2020 through Sept. 18, 2020
In thousands
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	5,903	$	2,830	$	341	$	7,341
Operating cash flows from interest on finance leases	—		—		1		3
Financing cash flows from finance leases	—		—		78		10

Right-of-use assets obtained in exchange for lease obligations
Operating leases	2,270		2,683		19,902		1,049
Finance leases	—		—		—		162

The following table summarizes by year the maturities of our lease liabilities as of December 31, 2022:


	Operating
In thousands	Leases
2023	$	5,702
2024	4,963
2025	4,974
2026	4,640
2027	1,786
Thereafter	1,023
Total minimum lease payments	23,088
Less: Amount representing interest	(2,981)
Present value of minimum lease liabilities	$	20,107