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Leases | 12 Months Ended
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Dec. 31, 2020
Leases [Abstract] |
Leases | Leases We are a lessee under various agreements for compressors, drilling rigs, vehicles and other equipment. As of December 31, 2020, these leases have remaining terms ranging from one month to three years. Certain of our lease agreements include options to renew the lease, terminate the lease early or purchase the underlying asset at the end of the lease. We determine the lease term at the lease commencement date as the non-cancelable period of the lease, including options to extend or terminate the lease when we are reasonably certain to exercise the option. The company’s vehicles are the only leases with renewal options that we are reasonably certain to exercise. The renewals are reflected in the ROU asset and lease liability balances. Our operating ROU assets are included in other long-term assets while operating lease liabilities are included in other current and other long-term liabilities on the consolidated balance sheet. Finance ROU assets are reflected in total property and equipment, net, while finance lease liabilities are included in other current and other long-term liabilities on the consolidated balance sheet. On February 1, 2019, we acquired WildHorse and, as part of the purchase price allocation, we recognized additional operating lease liabilities of $40 million, a related ROU asset of $38 million, and lease incentives of $2 million related to two office space leases, a long-term hydraulic fracturing agreement and other equipment leases. Regarding our long-term hydraulic fracturing agreements, we made a policy election to treat both lease and non-lease components as a single lease component. All of these acquired leases were approved for rejection during our bankruptcy process and subsequently removed from our balance sheet. In 2018, we sold our wholly owned subsidiary, Midcon Compression, L.L.C., to a third party and subsequently leased back certain natural gas compressors for 38 months. The lease is accounted for as a finance lease liability. The following table presents our ROU assets and lease liabilities as of December 31, 2020 and 2019.
|  | Years Ended December 31,
|  | 2020 |  | 2019
|  | Finance |  | Operating |  | Finance |  | Operating
|  | ($ in millions)
ROU assets |  | $ | 9 |  |  | $ | 29 |  |  | $ | 17 |  |  | $ | 22 |
Lease liabilities: |  |  |  |  |  |  |  |
Current lease liabilities |  | $ | 9 |  |  | $ | 27 |  |  | $ | 9 |  |  | $ | 9 |
Long-term lease liabilities |  | — |  |  | 2 |  |  | 9 |  |  | 16 |
Total lease liabilities |  | 9 |  |  | 29 |  |  | 18 |  |  | 25 |
Less amounts reclassified to liabilities subject to compromise |  | (9) |  |  | (5) |  |  | — |  |  | — |
Total lease liabilities, net |  | $ | — |  |  | $ | 24 |  |  | $ | 18 |  |  | $ | 25 |
Additional information for the Company’s operating and finance leases is presented below:
|  | Years Ended December 31,
|  | 2020 |  | 2019
Lease cost: |  | ($ in millions)
Amortization of ROU assets |  | $ | 9 |  |  | $ | 8 |
Interest on lease liability |  | 1 |  |  | 2 |
Finance lease cost |  | 10 |  |  | 10 |
Operating lease cost |  | 17 |  |  | 26 |
Short-term lease cost |  | 32 |  |  | 112 |
Total lease cost |  | $ | 59 |  |  | $ | 148 |
Other information: |  |  |  |
Operating cash outflows from finance lease |  | $ | 1 |  |  | $ | 2 |
Operating cash outflows from operating leases |  | $ | 9 |  |  | $ | 11 |
Investing cash outflows from operating leases |  | $ | 40 |  |  | $ | 127 |
Financing cash outflows from finance lease |  | $ | 9 |  |  | $ | 8 |
|  | December 31,
|  | 2020 |  | 2019
Weighted average remaining lease term - finance lease |  | 1.00 year |  | 2.00 years
Weighted average remaining lease term - operating leases |  | 1.12 years |  | 4.65 years
Weighted average discount rate - finance lease |  | 7.50 | % |  | 7.50 | %
Weighted average discount rate - operating leases |  | 6.46 | % |  | 4.85 | %
Maturity analysis of finance lease liabilities and operating lease liabilities are presented below:
|  | December 31, 2020
|  | Finance Lease |  | Operating Leases
|  | ($ in millions)
2021 |  | $ | 10 |  |  | $ | 28 |
2022 |  | — |  |  | 2 |
Total lease payments |  | 10 |  |  | 30 |
Less imputed interest |  | (1) |  |  | (1) |
Present value of lease liabilities |  | 9 |  |  | 29 |
Less current maturities |  | (9) |  |  | (27) |
Present value of lease liabilities, less current maturities |  | $ | — |  |  | $ | 2 |
Leases | Leases We are a lessee under various agreements for compressors, drilling rigs, vehicles and other equipment. As of December 31, 2020, these leases have remaining terms ranging from one month to three years. Certain of our lease agreements include options to renew the lease, terminate the lease early or purchase the underlying asset at the end of the lease. We determine the lease term at the lease commencement date as the non-cancelable period of the lease, including options to extend or terminate the lease when we are reasonably certain to exercise the option. The company’s vehicles are the only leases with renewal options that we are reasonably certain to exercise. The renewals are reflected in the ROU asset and lease liability balances. Our operating ROU assets are included in other long-term assets while operating lease liabilities are included in other current and other long-term liabilities on the consolidated balance sheet. Finance ROU assets are reflected in total property and equipment, net, while finance lease liabilities are included in other current and other long-term liabilities on the consolidated balance sheet. On February 1, 2019, we acquired WildHorse and, as part of the purchase price allocation, we recognized additional operating lease liabilities of $40 million, a related ROU asset of $38 million, and lease incentives of $2 million related to two office space leases, a long-term hydraulic fracturing agreement and other equipment leases. Regarding our long-term hydraulic fracturing agreements, we made a policy election to treat both lease and non-lease components as a single lease component. All of these acquired leases were approved for rejection during our bankruptcy process and subsequently removed from our balance sheet. In 2018, we sold our wholly owned subsidiary, Midcon Compression, L.L.C., to a third party and subsequently leased back certain natural gas compressors for 38 months. The lease is accounted for as a finance lease liability. The following table presents our ROU assets and lease liabilities as of December 31, 2020 and 2019.
|  | Years Ended December 31,
|  | 2020 |  | 2019
|  | Finance |  | Operating |  | Finance |  | Operating
|  | ($ in millions)
ROU assets |  | $ | 9 |  |  | $ | 29 |  |  | $ | 17 |  |  | $ | 22 |
Lease liabilities: |  |  |  |  |  |  |  |
Current lease liabilities |  | $ | 9 |  |  | $ | 27 |  |  | $ | 9 |  |  | $ | 9 |
Long-term lease liabilities |  | — |  |  | 2 |  |  | 9 |  |  | 16 |
Total lease liabilities |  | 9 |  |  | 29 |  |  | 18 |  |  | 25 |
Less amounts reclassified to liabilities subject to compromise |  | (9) |  |  | (5) |  |  | — |  |  | — |
Total lease liabilities, net |  | $ | — |  |  | $ | 24 |  |  | $ | 18 |  |  | $ | 25 |
Additional information for the Company’s operating and finance leases is presented below:
|  | Years Ended December 31,
|  | 2020 |  | 2019
Lease cost: |  | ($ in millions)
Amortization of ROU assets |  | $ | 9 |  |  | $ | 8 |
Interest on lease liability |  | 1 |  |  | 2 |
Finance lease cost |  | 10 |  |  | 10 |
Operating lease cost |  | 17 |  |  | 26 |
Short-term lease cost |  | 32 |  |  | 112 |
Total lease cost |  | $ | 59 |  |  | $ | 148 |
Other information: |  |  |  |
Operating cash outflows from finance lease |  | $ | 1 |  |  | $ | 2 |
Operating cash outflows from operating leases |  | $ | 9 |  |  | $ | 11 |
Investing cash outflows from operating leases |  | $ | 40 |  |  | $ | 127 |
Financing cash outflows from finance lease |  | $ | 9 |  |  | $ | 8 |
|  | December 31,
|  | 2020 |  | 2019
Weighted average remaining lease term - finance lease |  | 1.00 year |  | 2.00 years
Weighted average remaining lease term - operating leases |  | 1.12 years |  | 4.65 years
Weighted average discount rate - finance lease |  | 7.50 | % |  | 7.50 | %
Weighted average discount rate - operating leases |  | 6.46 | % |  | 4.85 | %
Maturity analysis of finance lease liabilities and operating lease liabilities are presented below:
|  | December 31, 2020
|  | Finance Lease |  | Operating Leases
|  | ($ in millions)
2021 |  | $ | 10 |  |  | $ | 28 |
2022 |  | — |  |  | 2 |
Total lease payments |  | 10 |  |  | 30 |
Less imputed interest |  | (1) |  |  | (1) |
Present value of lease liabilities |  | 9 |  |  | 29 |
Less current maturities |  | (9) |  |  | (27) |
Present value of lease liabilities, less current maturities |  | $ | — |  |  | $ | 2 |

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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 -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + 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 -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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