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Leases | 12 Months Ended
--- | ---
Dec. 31, 2024
Leases [Abstract] |
Leases | Leases The Company leases drilling rigs, facilities (including a water storage facility), vehicles and drilling and compression equipment. To determine the present value of its right-of-use assets and lease liabilities, the Company calculates a discount rate per lease contract based on an estimate of the rate of interest that the Company would pay to borrow (on a collateralized basis, over a similar term) an amount equal to the lease payment obligation. The Company has elected a practical expedient to forgo application of the recognition requirements under ASU 2016-02, Leases, to short-term leases; as such, short-term leases are not recorded in the Consolidated Balance Sheets. In addition, the Company has elected a practical expedient to account for lease and nonlease components together as a lease. Certain of the Company's lease contracts include variable lease payments, such as payments for property taxes and other operating and maintenance expenses and payments based on asset use, which are not included in the lease cost or the present value of the right-of-use asset or lease liability. Certain of the Company's lease contracts provide renewal periods at the Company's option; if a renewal period option is reasonably assured to be exercised, the associated lease payment obligation is included in the present value of the right-of-use asset and lease liability. As of December 31, 2024 and 2023, the Company was not a lessor. The following table summarizes the Company's lease costs.
| Years Ended December 31,
| 2024 |  | 2023 |  | 2022
| (Thousands)
Operating lease costs | $ | 41,991 |  |  | $ | 26,755 |  |  | $ | 19,922 |
Finance lease costs | 5,546 |  |  | 2,414 |  |  | 1,716 |
Variable and short-term lease costs | 33,475 |  |  | 24,151 |  |  | 13,726 |
Total lease costs (a) | $ | 81,012 |  |  | $ | 53,320 |  |  | $ | 35,364 |
(a)Includes drilling rig lease costs capitalized to property, plant and equipment of $50.5 million, $40.8 million and $25.4 million, respectively, of which $33.1 million, $24.5 million and $17.7 million, respectively, were operating lease costs for the years ended December 31, 2024, 2023 and 2022. For the years ended December 31, 2024, 2023 and 2022, cash paid for operating lease liabilities and reported in net cash provided by operating activities in the Statements of Consolidated Cash Flows was $13.6 million, $10.1 million and $10.3 million, respectively. For the years ended December 31, 2024, 2023 and 2022, cash paid for finance lease liabilities and reported in net cash used in financing activities in the Statements of Consolidated Cash Flows was $4.2 million, $2.3 million and $1.8 million, respectively. For the Company's operating leases, as of December 31, 2024, 2023 and 2022, the weighted average remaining term was 3.4 years, 1.6 years and 1.8 years, respectively, and the weighted average discount rate was 5.3%, 4.7% and 4.5%, respectively. For the Company's finance leases, as of December 31, 2024, 2023 and 2022, the weighted average remaining term was 6.8 years, 3.8 years and 3.3 years, respectively, and the weighted average discount rate was 5.1%, 4.8% and 3.9%, respectively. The Company records its right-of-use assets in other assets and the current and noncurrent portions of its lease liabilities in other current liabilities and other liabilities and credits, respectively, in the Consolidated Balance Sheets. The following table summarizes the Company's right-of-use assets and lease liabilities.
| December 31,
| 2024 |  | 2023
| (Thousands)
Right-of-Use Assets |  |  |
Operating | $ | 60,496 |  |  | $ | 42,338 |
Finance | 34,803 |  |  | 6,494 |
Total right-of-use assets | $ | 95,299 |  |  | $ | 48,832 |
Lease Liabilities |  |  |
Current lease liabilities |  |  |
Operating | $ | 36,275 |  |  | $ | 43,891 |
Finance | 5,603 |  |  | 2,489 |
Total current lease liabilities | 41,878 |  |  | 46,380 |
Noncurrent lease liabilities |  |  |
Operating | 29,391 |  |  | 8,443 |
Finance | 29,263 |  |  | 3,754 |
Total noncurrent lease liabilities | 58,654 |  |  | 12,197 |
Total lease liabilities | $ | 100,532 |  |  | $ | 58,577 |
The following table summarizes the Company's lease payment obligations as of December 31, 2024.
| Operating |  | Finance |  | Total
| (Thousands)
2025 | $ | 38,592 |  |  | $ | 7,192 |  |  | $ | 45,784 |
2026 | 8,289 |  |  | 6,420 |  |  | 14,709 |
2027 | 7,623 |  |  | 6,057 |  |  | 13,680 |
2028 | 6,480 |  |  | 4,806 |  |  | 11,286 |
2029 | 5,804 |  |  | 4,523 |  |  | 10,327 |
Thereafter | 5,207 |  |  | 12,126 |  |  | 17,333 |
Total lease payment obligations | 71,995 |  |  | 41,124 |  |  | 113,119 |
Less: Imputed interest | 6,329 |  |  | 6,258 |  |  | 12,587 |
Present value of lease liabilities | $ | 65,666 |  |  | $ | 34,866 |  |  | $ | 100,532 |
Leases | Leases The Company leases drilling rigs, facilities (including a water storage facility), vehicles and drilling and compression equipment. To determine the present value of its right-of-use assets and lease liabilities, the Company calculates a discount rate per lease contract based on an estimate of the rate of interest that the Company would pay to borrow (on a collateralized basis, over a similar term) an amount equal to the lease payment obligation. The Company has elected a practical expedient to forgo application of the recognition requirements under ASU 2016-02, Leases, to short-term leases; as such, short-term leases are not recorded in the Consolidated Balance Sheets. In addition, the Company has elected a practical expedient to account for lease and nonlease components together as a lease. Certain of the Company's lease contracts include variable lease payments, such as payments for property taxes and other operating and maintenance expenses and payments based on asset use, which are not included in the lease cost or the present value of the right-of-use asset or lease liability. Certain of the Company's lease contracts provide renewal periods at the Company's option; if a renewal period option is reasonably assured to be exercised, the associated lease payment obligation is included in the present value of the right-of-use asset and lease liability. As of December 31, 2024 and 2023, the Company was not a lessor. The following table summarizes the Company's lease costs.
| Years Ended December 31,
| 2024 |  | 2023 |  | 2022
| (Thousands)
Operating lease costs | $ | 41,991 |  |  | $ | 26,755 |  |  | $ | 19,922 |
Finance lease costs | 5,546 |  |  | 2,414 |  |  | 1,716 |
Variable and short-term lease costs | 33,475 |  |  | 24,151 |  |  | 13,726 |
Total lease costs (a) | $ | 81,012 |  |  | $ | 53,320 |  |  | $ | 35,364 |
(a)Includes drilling rig lease costs capitalized to property, plant and equipment of $50.5 million, $40.8 million and $25.4 million, respectively, of which $33.1 million, $24.5 million and $17.7 million, respectively, were operating lease costs for the years ended December 31, 2024, 2023 and 2022. For the years ended December 31, 2024, 2023 and 2022, cash paid for operating lease liabilities and reported in net cash provided by operating activities in the Statements of Consolidated Cash Flows was $13.6 million, $10.1 million and $10.3 million, respectively. For the years ended December 31, 2024, 2023 and 2022, cash paid for finance lease liabilities and reported in net cash used in financing activities in the Statements of Consolidated Cash Flows was $4.2 million, $2.3 million and $1.8 million, respectively. For the Company's operating leases, as of December 31, 2024, 2023 and 2022, the weighted average remaining term was 3.4 years, 1.6 years and 1.8 years, respectively, and the weighted average discount rate was 5.3%, 4.7% and 4.5%, respectively. For the Company's finance leases, as of December 31, 2024, 2023 and 2022, the weighted average remaining term was 6.8 years, 3.8 years and 3.3 years, respectively, and the weighted average discount rate was 5.1%, 4.8% and 3.9%, respectively. The Company records its right-of-use assets in other assets and the current and noncurrent portions of its lease liabilities in other current liabilities and other liabilities and credits, respectively, in the Consolidated Balance Sheets. The following table summarizes the Company's right-of-use assets and lease liabilities.
| December 31,
| 2024 |  | 2023
| (Thousands)
Right-of-Use Assets |  |  |
Operating | $ | 60,496 |  |  | $ | 42,338 |
Finance | 34,803 |  |  | 6,494 |
Total right-of-use assets | $ | 95,299 |  |  | $ | 48,832 |
Lease Liabilities |  |  |
Current lease liabilities |  |  |
Operating | $ | 36,275 |  |  | $ | 43,891 |
Finance | 5,603 |  |  | 2,489 |
Total current lease liabilities | 41,878 |  |  | 46,380 |
Noncurrent lease liabilities |  |  |
Operating | 29,391 |  |  | 8,443 |
Finance | 29,263 |  |  | 3,754 |
Total noncurrent lease liabilities | 58,654 |  |  | 12,197 |
Total lease liabilities | $ | 100,532 |  |  | $ | 58,577 |
The following table summarizes the Company's lease payment obligations as of December 31, 2024.
| Operating |  | Finance |  | Total
| (Thousands)
2025 | $ | 38,592 |  |  | $ | 7,192 |  |  | $ | 45,784 |
2026 | 8,289 |  |  | 6,420 |  |  | 14,709 |
2027 | 7,623 |  |  | 6,057 |  |  | 13,680 |
2028 | 6,480 |  |  | 4,806 |  |  | 11,286 |
2029 | 5,804 |  |  | 4,523 |  |  | 10,327 |
Thereafter | 5,207 |  |  | 12,126 |  |  | 17,333 |
Total lease payment obligations | 71,995 |  |  | 41,124 |  |  | 113,119 |
Less: Imputed interest | 6,329 |  |  | 6,258 |  |  | 12,587 |
Present value of lease liabilities | $ | 65,666 |  |  | $ | 34,866 |  |  | $ | 100,532 |

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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