Leases (Tables)

9 Months Ended

Sep. 30, 2019

Schedule of Discount Rate and Remaining Lease Term, Components of Lease Expenses, and Other Information

The table below summarizes our discount rate and remaining lease term as of the period presented.



	As of September 30, 2019
Weighted-average discount rate	4.67	%
Weighted-average remaining lease term (years)	1.26

The following table presents the components of the Company’s lease expenses for the periods presented.



(in thousands)	For the Three Months Ended September 30, 2019		For the Nine Months Ended September 30, 2019
Lease costs⁽¹⁾
Operating lease cost	$	9,361	$	30,754
Variable lease cost	1,819		3,323
Short-term lease cost	18,679		47,587
Total Lease Cost	$	29,859	$	81,664

⁽¹⁾

The majority of the Company’s operating leases relate to the operations or completion of the Company’s wells. Therefore, the lease costs presented in the above table represent the total gross costs the Company incurs, which are not comparable to the Company’s net costs recorded to the Consolidated Statements of Operations, Consolidated Statements of Cash Flows or capitalized in the Consolidated Balance Sheets, as amounts therein are reflected net of amounts billed to working interest partners.

Schedule of Maturities of Operating Lease Liabilities

Maturities of the Company’s long-term operating lease liabilities by fiscal year as of September 30, 2019 are as follows:



(in thousands)	Total
2019⁽¹⁾⁽²⁾	$	6,428
2020	8,713
2021	2,855
2022	425
Total lease payments	18,421
Less: imputed interest	(408		)
Present value of lease liabilities ⁽³⁾	$	18,013


⁽¹⁾	Excludes payments made during the nine months ended September 30, 2019.


⁽²⁾	Includes drilling rigs as of September 30, 2019 with an initial term greater than one year.

⁽³⁾

Of the total present value of lease liabilities, $14.2 million was recorded to current Operating lease liabilities and $3.9 million was recorded in noncurrent Operating lease liabilities in the Consolidated Balance Sheets as of September 30, 2019.

Schedule of Future Contractual Payments For Leases Under ASC 840

The following is a schedule of the Company’s future contractual payments for operating leases under the scope of ASC 840 that had initial contractual terms greater than one year as of December 31, 2018:



(in thousands)	Drilling Rigs		Office Leases
2019	$	43,036	$	3,057
2020	4,124		2,830
2021	—		2,761
2022	—		404
Total lease payments	$	47,160	$	9,052