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Leases
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Leases
9.Leases
We are a lessee under various agreements for drilling rigs, compressors, vehicles, office space and gas treating plants. As of December 31, 2022, 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 right of use (“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 November 1, 2021, we acquired Vine and, as part of the purchase price allocation, we recognized additional operating lease liabilities of $32 million and a related ROU asset of $32 million related to drilling rig leases, an office space lease and gas treating plant leases.
The following table presents our ROU assets and lease liabilities as of December 31, 2022 and 2021. As of December 31, 2022 and 2021, we did not have any finance leases.
Successor
Operating Leases
 December 31, 2022December 31, 2021
ROU assets$119 $38 
Lease liabilities:
Current lease liabilities$86 $29 
Long-term lease liabilities33 9 
Total lease liabilities, net$119 $38 
As of December 31, 2022, we had operating leases of $73 million related to drilling rig leases, which have been executed but not yet commenced. These operating leases are expected to commence in 2023 with lease terms expiring through 2025.
Additional information for the Company’s operating and finance leases is presented below:
SuccessorPredecessor
 Year Ended December 31, 2022Period from February 10, 2021 through December 31, 2021Period from January 1, 2021 through February 9, 2021Year Ended December 31, 2020
Lease cost:
Amortization of ROU assets$— $— $1 $9 
Interest on lease liability— — — 1 
Finance lease cost— — 1 10 
Operating lease cost51 33 3 17 
Short-term lease cost74 13 — 32 
Total lease cost$125 $46 $4 $59 
Other information:
Operating cash outflows from finance lease$— $— $— $1 
Operating cash outflows from operating leases$15 $7 $— $9 
Investing cash outflows from operating leases$110 $39 $3 $40 
Financing cash outflows from finance lease$— $— $1 $9 
Successor
December 31, 2022December 31, 2021
Weighted average remaining lease term - operating leases1.54 years1.44 years
Weighted average discount rate - operating leases6.64 %3.80 %
Maturity analysis of operating lease liabilities are presented below:
Successor
December 31, 2022
2023$88 
202438 
2025— 
Total lease payments126 
Less imputed interest(7)
Present value of lease liabilities119 
Less current maturities(86)
Present value of lease liabilities, less current maturities$33 
Leases
9.Leases
We are a lessee under various agreements for drilling rigs, compressors, vehicles, office space and gas treating plants. As of December 31, 2022, 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 right of use (“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 November 1, 2021, we acquired Vine and, as part of the purchase price allocation, we recognized additional operating lease liabilities of $32 million and a related ROU asset of $32 million related to drilling rig leases, an office space lease and gas treating plant leases.
The following table presents our ROU assets and lease liabilities as of December 31, 2022 and 2021. As of December 31, 2022 and 2021, we did not have any finance leases.
Successor
Operating Leases
 December 31, 2022December 31, 2021
ROU assets$119 $38 
Lease liabilities:
Current lease liabilities$86 $29 
Long-term lease liabilities33 9 
Total lease liabilities, net$119 $38 
As of December 31, 2022, we had operating leases of $73 million related to drilling rig leases, which have been executed but not yet commenced. These operating leases are expected to commence in 2023 with lease terms expiring through 2025.
Additional information for the Company’s operating and finance leases is presented below:
SuccessorPredecessor
 Year Ended December 31, 2022Period from February 10, 2021 through December 31, 2021Period from January 1, 2021 through February 9, 2021Year Ended December 31, 2020
Lease cost:
Amortization of ROU assets$— $— $1 $9 
Interest on lease liability— — — 1 
Finance lease cost— — 1 10 
Operating lease cost51 33 3 17 
Short-term lease cost74 13 — 32 
Total lease cost$125 $46 $4 $59 
Other information:
Operating cash outflows from finance lease$— $— $— $1 
Operating cash outflows from operating leases$15 $7 $— $9 
Investing cash outflows from operating leases$110 $39 $3 $40 
Financing cash outflows from finance lease$— $— $1 $9 
Successor
December 31, 2022December 31, 2021
Weighted average remaining lease term - operating leases1.54 years1.44 years
Weighted average discount rate - operating leases6.64 %3.80 %
Maturity analysis of operating lease liabilities are presented below:
Successor
December 31, 2022
2023$88 
202438 
2025— 
Total lease payments126 
Less imputed interest(7)
Present value of lease liabilities119 
Less current maturities(86)
Present value of lease liabilities, less current maturities$33