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Leases | 12 Months Ended
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Dec. 31, 2020
Leases [Abstract] |
Leases | Leases As discussed in Note 4—Summary of Significant Accounting Policies, the Company adopted ASC 842 as of January 1, 2019. The Company’s leases consist primarily of office space, drilling rigs, vehicles and other property and equipment used in its operations. The components of lease costs were as follows for the periods presented (in thousands):
| Successor |  |  | Predecessor
| Period from November 20, 2020 through December 31, 2020 |  |  | Period from January 1, 2020 through November 19, 2020 |  | Year Ended December 31,
|  |  |  | 2019 |  |
Operating lease costs | $ | 751 |  |  |  | $ | 5,797 |  |  | $ | 26,341 |  |  |
Variable lease costs(1) | 437 |  |  |  | 2,678 |  |  | 9,189 |  |  |
Short-term lease costs | 554 |  |  |  | 9,807 |  |  | 4,657 |  |  |
Finance lease costs: |  |  |  |  |  |  |  |
Amortization of ROU assets | 153 |  |  |  | 1,987 |  |  | 2,543 |  |  |
Interest on lease liabilities | 11 |  |  |  | 167 |  |  | 260 |  |  |
Total lease costs | $ | 1,906 |  |  |  | $ | 20,436 |  |  | $ | 42,990 |  |  |
___________________ (1)Based on payments made by the Company to lessors for the right to use an underlying asset that vary because of changes in circumstances occurring after the commencement date, other than the passage of time, such as property taxes, operating and maintenance costs, which do not depend on an index or rate. The amounts disclosed herein include costs associated with properties operated by the Company that are presented on a gross basis and do not reflect the Company’s net proportionate share of such amounts. A portion of these costs have been or will be billed to other working interest owners. The Company’s share of operating, variable and short-term lease costs are either capitalized and included in property, plant and equipment on the Company’s Consolidated Balance Sheets or are recognized in the Company’s Consolidated Statements of Operations in lease operating expenses, midstream expenses and general and administrative expenses, as applicable. The finance lease costs for the amortization of ROU assets and the interest on lease liabilities disclosed above are included in depreciation, depletion and amortization and interest expense, net of capitalized interest, respectively, on the Company’s Consolidated Statements of Operations. For the year ended December 31, 2018 (Predecessor), the Company had operating leases for office space and other property and equipment used in its operations, which it accounted for as operating leases in accordance with GAAP under ASC 840. For the year ended December 31, 2018 (Predecessor), the Company incurred operating rental expenses of $10.6 million which were included in general and administrative expenses on its Consolidated Statements of Operations. As of December 31, 2020 (Successor), maturities of the Company’s lease liabilities were as follows (in thousands):
| Successor
| Operating Leases |  | Finance Leases
2021 | $ | 2,744 |  |  | $ | 1,722 |
2022 | 1,548 |  |  | 1,210 |
2023 | 787 |  |  | 260 |
2024 | 102 |  |  | 45 |
2025 | — |  |  | 45 |
Thereafter | — |  |  | 594 |
Total future lease payments | 5,181 |  |  | 3,876 |
Less: Imputed interest | 211 |  |  | 346 |
Present value of future lease payments | $ | 4,970 |  |  | $ | 3,530 |
Supplemental balance sheet information related to the Company’s leases were as follows (in thousands):
|  |  |  | Successor(1) |  |  | Predecessor
|  | Balance Sheet Location |  | December 31, 2020 |  |  | December 31, 2019
Assets |  |  |  |  |  |  |
Operating lease assets |  | Operating right-of-use assets |  | $ | 6,083 |  |  |  | $ | 18,497 |
Finance lease assets(2) |  | Other assets |  | 3,419 |  |  |  | 6,303 |
Total lease assets |  |  |  | $ | 9,502 |  |  |  | $ | 24,800 |
Liabilities |  |  |  |  |  |  |
Current |  |  |  |  |  |  |
Operating lease liabilities |  | Current operating lease liabilities |  | $ | 2,607 |  |  |  | $ | 6,182 |
Finance lease liabilities |  | Other current liabilities |  | 1,626 |  |  |  | 2,413 |
Long-term |  |  |  |  |  |  |
Operating lease liabilities |  | Operating lease liabilities |  | 2,362 |  |  |  | 17,915 |
Finance lease liabilities |  | Other liabilities |  | 1,904 |  |  |  | 3,958 |
Total lease liabilities |  |  |  | $ | 8,499 |  |  |  | $ | 30,468 |
___________________ (1)Upon emergence from bankruptcy and the adoption of fresh start accounting, operating lease ROU assets and operating and finance lease liabilities were adjusted to their estimated fair value. Refer to Note 3—Fresh Start Accounting for more information on Fresh Start Adjustments. (2)Finance lease ROU assets are recorded net of accumulated amortization of $0.2 million as of December 31, 2020 (Successor) and $2.3 million as of December 31, 2019 (Predecessor). Supplemental cash flow information and non-cash transactions related to the Company’s leases were as follows (in thousands):
| Successor |  |  | Predecessor |  |
| Period from November 20, 2020 through December 31, 2020 |  |  | Period from January 1, 2020 through November 19, 2020 |  | Year Ended December 31,
|  |  |  | 2019 |  |
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |  |  |  |  |
Operating cash flows from operating leases | $ | 1,992 |  |  |  | $ | 6,624 |  |  | $ | 30,316 |  |  |
Operating cash flows from finance leases | 9 |  |  |  | 145 |  |  | 260 |  |  |
Financing cash flows from finance leases | 202 |  |  |  | 1,989 |  |  | 2,382 |  |  |
ROU assets obtained in exchange for lease obligations |  |  |  |  |  |  |  |
Operating leases | $ | — |  |  |  | $ | 797 |  |  | $ | 12,746 |  |  |
Finance leases | — |  |  |  | 24 |  |  | 3,433 |  |  |
Reductions to ROU assets resulting from reductions to lease obligations |  |  |  |  |  |  |  |
Operating leases(1) | $ | (6,255) |  |  |  | $ | — |  |  | $ | — |  |  |
___________________ (1)Includes amounts added to or reduced from the carrying amount of ROU assets resulting from lease modifications and remeasurements in connection with the Company’s bankruptcy emergence. Weighted-average remaining lease terms and discount rates for the Company’s leases were as follows:
| Successor |  |  | Predecessor
| December 31, 2020 |  |  | December 31, 2019
Operating Leases |  |  |  |
Weighted average remaining lease term | 2.6 years |  |  | 7.1 years
Weighted average discount rate | 3.9 | % |  |  | 4.1 | %
Finance Leases |  |  |  |
Weighted average remaining lease term | 4.6 years |  |  | 4.1 years
Weighted average discount rate | 3.6 | % |  |  | 3.9 | %
Leases | Leases As discussed in Note 4—Summary of Significant Accounting Policies, the Company adopted ASC 842 as of January 1, 2019. The Company’s leases consist primarily of office space, drilling rigs, vehicles and other property and equipment used in its operations. The components of lease costs were as follows for the periods presented (in thousands):
| Successor |  |  | Predecessor
| Period from November 20, 2020 through December 31, 2020 |  |  | Period from January 1, 2020 through November 19, 2020 |  | Year Ended December 31,
|  |  |  | 2019 |  |
Operating lease costs | $ | 751 |  |  |  | $ | 5,797 |  |  | $ | 26,341 |  |  |
Variable lease costs(1) | 437 |  |  |  | 2,678 |  |  | 9,189 |  |  |
Short-term lease costs | 554 |  |  |  | 9,807 |  |  | 4,657 |  |  |
Finance lease costs: |  |  |  |  |  |  |  |
Amortization of ROU assets | 153 |  |  |  | 1,987 |  |  | 2,543 |  |  |
Interest on lease liabilities | 11 |  |  |  | 167 |  |  | 260 |  |  |
Total lease costs | $ | 1,906 |  |  |  | $ | 20,436 |  |  | $ | 42,990 |  |  |
___________________ (1)Based on payments made by the Company to lessors for the right to use an underlying asset that vary because of changes in circumstances occurring after the commencement date, other than the passage of time, such as property taxes, operating and maintenance costs, which do not depend on an index or rate. The amounts disclosed herein include costs associated with properties operated by the Company that are presented on a gross basis and do not reflect the Company’s net proportionate share of such amounts. A portion of these costs have been or will be billed to other working interest owners. The Company’s share of operating, variable and short-term lease costs are either capitalized and included in property, plant and equipment on the Company’s Consolidated Balance Sheets or are recognized in the Company’s Consolidated Statements of Operations in lease operating expenses, midstream expenses and general and administrative expenses, as applicable. The finance lease costs for the amortization of ROU assets and the interest on lease liabilities disclosed above are included in depreciation, depletion and amortization and interest expense, net of capitalized interest, respectively, on the Company’s Consolidated Statements of Operations. For the year ended December 31, 2018 (Predecessor), the Company had operating leases for office space and other property and equipment used in its operations, which it accounted for as operating leases in accordance with GAAP under ASC 840. For the year ended December 31, 2018 (Predecessor), the Company incurred operating rental expenses of $10.6 million which were included in general and administrative expenses on its Consolidated Statements of Operations. As of December 31, 2020 (Successor), maturities of the Company’s lease liabilities were as follows (in thousands):
| Successor
| Operating Leases |  | Finance Leases
2021 | $ | 2,744 |  |  | $ | 1,722 |
2022 | 1,548 |  |  | 1,210 |
2023 | 787 |  |  | 260 |
2024 | 102 |  |  | 45 |
2025 | — |  |  | 45 |
Thereafter | — |  |  | 594 |
Total future lease payments | 5,181 |  |  | 3,876 |
Less: Imputed interest | 211 |  |  | 346 |
Present value of future lease payments | $ | 4,970 |  |  | $ | 3,530 |
Supplemental balance sheet information related to the Company’s leases were as follows (in thousands):
|  |  |  | Successor(1) |  |  | Predecessor
|  | Balance Sheet Location |  | December 31, 2020 |  |  | December 31, 2019
Assets |  |  |  |  |  |  |
Operating lease assets |  | Operating right-of-use assets |  | $ | 6,083 |  |  |  | $ | 18,497 |
Finance lease assets(2) |  | Other assets |  | 3,419 |  |  |  | 6,303 |
Total lease assets |  |  |  | $ | 9,502 |  |  |  | $ | 24,800 |
Liabilities |  |  |  |  |  |  |
Current |  |  |  |  |  |  |
Operating lease liabilities |  | Current operating lease liabilities |  | $ | 2,607 |  |  |  | $ | 6,182 |
Finance lease liabilities |  | Other current liabilities |  | 1,626 |  |  |  | 2,413 |
Long-term |  |  |  |  |  |  |
Operating lease liabilities |  | Operating lease liabilities |  | 2,362 |  |  |  | 17,915 |
Finance lease liabilities |  | Other liabilities |  | 1,904 |  |  |  | 3,958 |
Total lease liabilities |  |  |  | $ | 8,499 |  |  |  | $ | 30,468 |
___________________ (1)Upon emergence from bankruptcy and the adoption of fresh start accounting, operating lease ROU assets and operating and finance lease liabilities were adjusted to their estimated fair value. Refer to Note 3—Fresh Start Accounting for more information on Fresh Start Adjustments. (2)Finance lease ROU assets are recorded net of accumulated amortization of $0.2 million as of December 31, 2020 (Successor) and $2.3 million as of December 31, 2019 (Predecessor). Supplemental cash flow information and non-cash transactions related to the Company’s leases were as follows (in thousands):
| Successor |  |  | Predecessor |  |
| Period from November 20, 2020 through December 31, 2020 |  |  | Period from January 1, 2020 through November 19, 2020 |  | Year Ended December 31,
|  |  |  | 2019 |  |
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |  |  |  |  |
Operating cash flows from operating leases | $ | 1,992 |  |  |  | $ | 6,624 |  |  | $ | 30,316 |  |  |
Operating cash flows from finance leases | 9 |  |  |  | 145 |  |  | 260 |  |  |
Financing cash flows from finance leases | 202 |  |  |  | 1,989 |  |  | 2,382 |  |  |
ROU assets obtained in exchange for lease obligations |  |  |  |  |  |  |  |
Operating leases | $ | — |  |  |  | $ | 797 |  |  | $ | 12,746 |  |  |
Finance leases | — |  |  |  | 24 |  |  | 3,433 |  |  |
Reductions to ROU assets resulting from reductions to lease obligations |  |  |  |  |  |  |  |
Operating leases(1) | $ | (6,255) |  |  |  | $ | — |  |  | $ | — |  |  |
___________________ (1)Includes amounts added to or reduced from the carrying amount of ROU assets resulting from lease modifications and remeasurements in connection with the Company’s bankruptcy emergence. Weighted-average remaining lease terms and discount rates for the Company’s leases were as follows:
| Successor |  |  | Predecessor
| December 31, 2020 |  |  | December 31, 2019
Operating Leases |  |  |  |
Weighted average remaining lease term | 2.6 years |  |  | 7.1 years
Weighted average discount rate | 3.9 | % |  |  | 4.1 | %
Finance Leases |  |  |  |
Weighted average remaining lease term | 4.6 years |  |  | 4.1 years
Weighted average discount rate | 3.6 | % |  |  | 3.9 | %

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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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