Leases (Tables)
|
12 Months Ended |
Dec. 31, 2019 |
|---|
| Leases [Abstract] |
|
| Lease, Cost |
The table below presents the components of the Company’s lease costs for the year ended December 31, 2019.
|
|
|
|
|
|
|
|
Year Ended December 31, 2019 |
|
|
(In thousands) |
Components of Lease Costs |
|
|
Finance lease costs |
|
|
$92 |
|
Amortization of right-of-use assets (1)
|
|
82 |
|
Interest on lease liabilities (2)
|
|
10 |
|
Operating lease cost (3)
|
|
38,076 |
|
Impairment of Operating lease ROU assets (4)
|
|
16,209 |
|
Short-term lease cost (5)
|
|
3,640 |
|
Variable lease costs (6)
|
|
— |
|
Total lease costs |
|
|
$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 year ended December 31, 2019, approximately $34.9 million are costs associated with drilling rigs and are capitalized to “Evaluated properties, net” in the consolidated balance sheets and the other remaining operating lease costs are components of “General and administrative” and “Lease operating” in the consolidated statements of operations.
|
|
|
(4) |
In conjunction with the Carrizo Acquisition, the Company evaluated certain of its office leases for impairment as the determination was made in 2019 that certain corporate offices would be consolidated. Upon evaluation, the Company recorded an impairment of certain of its Operating lease ROU assets of $16.2 million which is 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.
|
| Assets And Liabilities, Lessee |
The table below presents supplemental balance sheet information for the Company’s leases as of December 31, 2019.
|
|
|
|
|
|
|
|
Year Ended December 31, 2019 |
|
|
(In thousands) |
Leases |
|
|
Operating leases: |
|
|
Operating lease ROU assets |
|
|
$63,908 |
|
|
|
|
Current operating lease liabilities |
|
|
$42,858 |
|
Long-term operating lease liabilities |
|
37,088 |
|
Total operating lease liabilities |
|
79,946 |
|
|
|
|
Financing leases: |
|
|
Other property and equipment |
|
|
$2,197 |
|
Accumulated depreciation |
|
(82 |
) |
Other property and equipment, net |
|
2,115 |
|
|
|
|
Current financing lease liabilities |
|
|
$1,334 |
|
Long-term financing lease liabilities |
|
807 |
|
Total financing lease liabilities |
|
2,141 |
|
|
| Non-Cash Investing and Supplemental Cash Flow Information |
The table below presents the weighted average remaining lease terms and weighted average discounts rates for the Company’s leases as of December 31, 2019.
|
|
|
|
|
|
|
|
|
|
December 31, 2019 |
Weighted Average Remaining Lease Terms (In years) |
|
|
Operating leases |
|
4.3 |
|
Financing leases |
|
2.1 |
|
|
|
|
Weighted Average Discount Rate |
|
|
Operating leases |
|
5.5 |
% |
Financing leases |
|
9.4 |
% |
|
| Lessee, Operating Lease, Liability, Maturity |
The table below presents the maturity of the Company’s lease liabilities as of December 31, 2019.
|
|
|
|
|
|
|
|
|
|
|
|
Operating Leases |
|
Financing Leases |
|
|
(In thousands) |
2020 |
|
|
$45,864 |
|
|
|
$1,475 |
|
2021 |
|
11,648 |
|
|
275 |
|
2022 |
|
4,363 |
|
|
234 |
|
2023 |
|
4,209 |
|
|
233 |
|
2024 |
|
4,110 |
|
|
38 |
|
Thereafter |
|
17,902 |
|
|
— |
|
Total lease payments |
|
88,096 |
|
|
2,255 |
|
Less imputed interest |
|
8,150 |
|
|
114 |
|
Total lease liabilities |
|
|
$79,946 |
|
|
|
$2,141 |
|
|
| Finance Lease, Liability, Maturity |
The table below presents the maturity of the Company’s lease liabilities as of December 31, 2019.
|
|
|
|
|
|
|
|
|
|
|
|
Operating Leases |
|
Financing Leases |
|
|
(In thousands) |
2020 |
|
|
$45,864 |
|
|
|
$1,475 |
|
2021 |
|
11,648 |
|
|
275 |
|
2022 |
|
4,363 |
|
|
234 |
|
2023 |
|
4,209 |
|
|
233 |
|
2024 |
|
4,110 |
|
|
38 |
|
Thereafter |
|
17,902 |
|
|
— |
|
Total lease payments |
|
88,096 |
|
|
2,255 |
|
Less imputed interest |
|
8,150 |
|
|
114 |
|
Total lease liabilities |
|
|
$79,946 |
|
|
|
$2,141 |
|
|