Annual report pursuant to Section 13 and 15(d)

Leases (Tables)

v3.22.0.1
Leases (Tables)
12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Lease, Cost
The table below presents the components of the Company’s lease costs for the year ended December 31, 2021.
Years Ended December 31,
2021 2020 2019
(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.
Assets And Liabilities, Lessee
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,
2021 2020
(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 liabilities 23,547  27,576 
Total operating lease liabilities $41,146  $40,751 
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, 2021.
December 31, 2021
Weighted Average Remaining Lease Terms (In years)
Operating leases 5.1
Financing leases 2.2
Weighted Average Discount Rate
Operating leases 5.6  %
Financing leases 6.6  %
Lessee, Operating Lease, Liability, Maturity The table below presents the maturity of the Company’s lease liabilities as of December 31, 2021.
Operating Leases Financing Leases
(In thousands)
2022 $18,981  $250 
2023 5,031  233 
2024 4,939  39 
2025 3,958  — 
2026 3,805  — 
Thereafter 10,334  — 
   Total lease payments 47,048  522 
Less imputed interest (5,902) (36)
   Total lease liabilities $41,146  $486 
Finance Lease, Liability, Maturity The table below presents the maturity of the Company’s lease liabilities as of December 31, 2021.
Operating Leases Financing Leases
(In thousands)
2022 $18,981  $250 
2023 5,031  233 
2024 4,939  39 
2025 3,958  — 
2026 3,805  — 
Thereafter 10,334  — 
   Total lease payments 47,048  522 
Less imputed interest (5,902) (36)
   Total lease liabilities $41,146  $486