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Leases | 12 Months Ended
--- | ---
Dec. 31, 2022
Leases [Abstract] |
Leases | Leases The Company’s long-term leases consist primarily of office space, vehicles and other property and equipment used in its operations. The components of lease costs attributable to continuing operations were as follows for the periods presented (in thousands):
| Successor |  |  | Predecessor
| Year Ended December 31, |  | Period from November 20, 2020 through December 31, 2020 |  |  | Period from January 1, 2020 through November 19, 2020
| 2022 |  | 2021 |  |  |
Operating lease costs | $ | 11,292 |  |  | $ | 2,966 |  |  | $ | 666 |  |  |  | $ | 3,245 |
Variable lease costs(1) | 8,562 |  |  | 1,737 |  |  | 425 |  |  |  | 2,433 |
Short-term lease costs | 25,716 |  |  | 8,244 |  |  | 554 |  |  |  | 9,807 |
Finance lease costs: |  |  |  |  |  |  |  |
Amortization of ROU assets | 1,342 |  |  | 1,578 |  |  | 151 |  |  |  | 1,959 |
Interest on lease liabilities | 65 |  |  | 86 |  |  | 9 |  |  |  | 145 |
Total lease costs | $ | 46,977 |  |  | $ | 14,611 |  |  | $ | 1,805 |  |  |  | $ | 17,589 |
___________________ (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 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. Total lease costs attributable to discontinued operations were recorded in income from discontinued operations, net of income tax on the Consolidated Statements of Operations. Total lease costs attributable to discontinued operations were immaterial for the periods reported. As of December 31, 2022, maturities of the Company’s lease liabilities were as follows:
| Operating Leases |  | Finance Leases
| (In thousands)
2023 | $ | 10,762 |  |  | $ | 1,078 |
2024 | 3,853 |  |  | 389 |
2025 | 2,344 |  |  | 330 |
2026 | 1,939 |  |  | 122 |
2027 | 1,975 |  |  | — |
Thereafter | 5,434 |  |  | — |
Total future lease payments | 26,307 |  |  | 1,919 |
Less: Imputed interest | 3,100 |  |  | 118 |
Present value of future lease payments | $ | 23,207 |  |  | $ | 1,801 |
Supplemental balance sheet information related to the Company’s leases were as follows:
|  | Balance Sheet Location |  | December 31, 2022 |  | December 31, 2021
|  |  |  | (In thousands)
Assets |  |  |  |  |  |
Operating lease assets(1) |  | Operating right-of-use assets |  | $ | 23,875 |  |  | $ | 15,782 |
Finance lease assets(2)(3) |  | Other assets |  | 1,803 |  |  | 1,124 |
Total lease assets |  |  |  | $ | 25,678 |  |  | $ | 16,906 |
Liabilities |  |  |  |  |  |
Current |  |  |  |  |  |
Operating lease liabilities(1) |  | Current operating lease liabilities |  | $ | 9,941 |  |  | $ | 7,893 |
Finance lease liabilities(3) |  | Other current liabilities |  | 1,012 |  |  | 1,008 |
Long-term |  |  |  |  |  |
Operating lease liabilities(1) |  | Operating lease liabilities |  | 13,266 |  |  | 6,724 |
Finance lease liabilities(3) |  | Other liabilities |  | 789 |  |  | 180 |
Total lease liabilities |  |  |  | $ | 25,008 |  |  | $ | 15,805 |
___________________ (1)The Company acquired certain operating leases for office buildings and operating equipment in connection with the Merger. As of December 31, 2022, these included operating lease assets of $14.5 million, current operating lease liabilities of $2.5 million and long-term operating lease liabilities of $11.9 million. In connection with the 2021 Williston Basin Acquisition, the Company acquired certain operating leases for generators and compressors. As of December 31, 2021, these included operating lease assets of $11.0 million, current operating lease liabilities of $6.7 million and long-term operating lease liabilities of $4.5 million. (2)Finance lease ROU assets are recorded net of accumulated amortization of $1.6 million as of December 31, 2022 and $0.9 million as of December 31, 2021. (3)The Company acquired certain finance leases for vehicles in connection with the Merger. As of December 31, 2022, these included finance lease assets of $1.4 million, current finance lease liabilities of $0.8 million and long-term finance lease liabilities of $0.6 million. Operating lease assets and liabilities and finance lease assets and liabilities that were attributable to discontinued operations were classified as held for sale as of December 31, 2021 and were immaterial. Supplemental cash flow information and non-cash transactions related to the Company’s leases were as follows (in thousands):
| Successor |  |  | Predecessor
| Year Ended December 31, |  | Period from November 20, 2020 through December 31, 2020 |  |  | Period from January 1, 2020 through November 19, 2020
| 2022 |  | 2021 |  |  |
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |  |  |  |  |
Operating cash flows from operating leases | $ | 15,843 |  |  | $ | 3,420 |  |  | $ | 1,992 |  |  |  | $ | 6,624 |
Operating cash flows from finance leases | 57 |  |  | 62 |  |  | 9 |  |  |  | 145 |
Financing cash flows from finance leases | 1,299 |  |  | 1,161 |  |  | 202 |  |  |  | 1,989 |
ROU assets obtained in exchange for lease obligations |  |  |  |  |  |  |  |
Operating leases(1) | $ | 20,164 |  |  | $ | 14,140 |  |  | $ | — |  |  |  | $ | 797 |
Finance leases(2) | 2,659 |  |  | 127 |  |  | — |  |  |  | 24 |
Reductions to ROU assets resulting from reductions to lease obligations |  |  |  |  |  |  |  |
Operating leases(3) | $ | — |  |  | $ | — |  |  | $ | (6,255) |  |  |  | $ | — |
___________________ (1)The year ended December 31, 2022 includes $15.8 million related to operating leases acquired in the Merger. The year ended December 31, 2021 includes $12.3 million related to operating leases acquired in the 2021 Williston Basin Acquisition. (2)The year ended December 31, 2022 includes $2.1 million related to finance leases acquired in the Merger. (3)The period from November 20, 2020 through December 31, 2020 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 emergence from bankruptcy. Weighted-average remaining lease terms and discount rates for the Company’s leases were as follows:
| December 31,
| 2022 |  | 2021
Operating Leases |  |  |
Weighted average remaining lease term | 4.6 years |  | 1.9 years
Weighted average discount rate | 4.9 | % |  | 3.4 | %
Finance Leases |  |  |
Weighted average remaining lease term | 2.3 years |  | 1.1 years
Weighted average discount rate | 5.4 | % |  | 3.5 | %
Leases | Leases The Company’s long-term leases consist primarily of office space, vehicles and other property and equipment used in its operations. The components of lease costs attributable to continuing operations were as follows for the periods presented (in thousands):
| Successor |  |  | Predecessor
| Year Ended December 31, |  | Period from November 20, 2020 through December 31, 2020 |  |  | Period from January 1, 2020 through November 19, 2020
| 2022 |  | 2021 |  |  |
Operating lease costs | $ | 11,292 |  |  | $ | 2,966 |  |  | $ | 666 |  |  |  | $ | 3,245 |
Variable lease costs(1) | 8,562 |  |  | 1,737 |  |  | 425 |  |  |  | 2,433 |
Short-term lease costs | 25,716 |  |  | 8,244 |  |  | 554 |  |  |  | 9,807 |
Finance lease costs: |  |  |  |  |  |  |  |
Amortization of ROU assets | 1,342 |  |  | 1,578 |  |  | 151 |  |  |  | 1,959 |
Interest on lease liabilities | 65 |  |  | 86 |  |  | 9 |  |  |  | 145 |
Total lease costs | $ | 46,977 |  |  | $ | 14,611 |  |  | $ | 1,805 |  |  |  | $ | 17,589 |
___________________ (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 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. Total lease costs attributable to discontinued operations were recorded in income from discontinued operations, net of income tax on the Consolidated Statements of Operations. Total lease costs attributable to discontinued operations were immaterial for the periods reported. As of December 31, 2022, maturities of the Company’s lease liabilities were as follows:
| Operating Leases |  | Finance Leases
| (In thousands)
2023 | $ | 10,762 |  |  | $ | 1,078 |
2024 | 3,853 |  |  | 389 |
2025 | 2,344 |  |  | 330 |
2026 | 1,939 |  |  | 122 |
2027 | 1,975 |  |  | — |
Thereafter | 5,434 |  |  | — |
Total future lease payments | 26,307 |  |  | 1,919 |
Less: Imputed interest | 3,100 |  |  | 118 |
Present value of future lease payments | $ | 23,207 |  |  | $ | 1,801 |
Supplemental balance sheet information related to the Company’s leases were as follows:
|  | Balance Sheet Location |  | December 31, 2022 |  | December 31, 2021
|  |  |  | (In thousands)
Assets |  |  |  |  |  |
Operating lease assets(1) |  | Operating right-of-use assets |  | $ | 23,875 |  |  | $ | 15,782 |
Finance lease assets(2)(3) |  | Other assets |  | 1,803 |  |  | 1,124 |
Total lease assets |  |  |  | $ | 25,678 |  |  | $ | 16,906 |
Liabilities |  |  |  |  |  |
Current |  |  |  |  |  |
Operating lease liabilities(1) |  | Current operating lease liabilities |  | $ | 9,941 |  |  | $ | 7,893 |
Finance lease liabilities(3) |  | Other current liabilities |  | 1,012 |  |  | 1,008 |
Long-term |  |  |  |  |  |
Operating lease liabilities(1) |  | Operating lease liabilities |  | 13,266 |  |  | 6,724 |
Finance lease liabilities(3) |  | Other liabilities |  | 789 |  |  | 180 |
Total lease liabilities |  |  |  | $ | 25,008 |  |  | $ | 15,805 |
___________________ (1)The Company acquired certain operating leases for office buildings and operating equipment in connection with the Merger. As of December 31, 2022, these included operating lease assets of $14.5 million, current operating lease liabilities of $2.5 million and long-term operating lease liabilities of $11.9 million. In connection with the 2021 Williston Basin Acquisition, the Company acquired certain operating leases for generators and compressors. As of December 31, 2021, these included operating lease assets of $11.0 million, current operating lease liabilities of $6.7 million and long-term operating lease liabilities of $4.5 million. (2)Finance lease ROU assets are recorded net of accumulated amortization of $1.6 million as of December 31, 2022 and $0.9 million as of December 31, 2021. (3)The Company acquired certain finance leases for vehicles in connection with the Merger. As of December 31, 2022, these included finance lease assets of $1.4 million, current finance lease liabilities of $0.8 million and long-term finance lease liabilities of $0.6 million. Operating lease assets and liabilities and finance lease assets and liabilities that were attributable to discontinued operations were classified as held for sale as of December 31, 2021 and were immaterial. Supplemental cash flow information and non-cash transactions related to the Company’s leases were as follows (in thousands):
| Successor |  |  | Predecessor
| Year Ended December 31, |  | Period from November 20, 2020 through December 31, 2020 |  |  | Period from January 1, 2020 through November 19, 2020
| 2022 |  | 2021 |  |  |
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |  |  |  |  |
Operating cash flows from operating leases | $ | 15,843 |  |  | $ | 3,420 |  |  | $ | 1,992 |  |  |  | $ | 6,624 |
Operating cash flows from finance leases | 57 |  |  | 62 |  |  | 9 |  |  |  | 145 |
Financing cash flows from finance leases | 1,299 |  |  | 1,161 |  |  | 202 |  |  |  | 1,989 |
ROU assets obtained in exchange for lease obligations |  |  |  |  |  |  |  |
Operating leases(1) | $ | 20,164 |  |  | $ | 14,140 |  |  | $ | — |  |  |  | $ | 797 |
Finance leases(2) | 2,659 |  |  | 127 |  |  | — |  |  |  | 24 |
Reductions to ROU assets resulting from reductions to lease obligations |  |  |  |  |  |  |  |
Operating leases(3) | $ | — |  |  | $ | — |  |  | $ | (6,255) |  |  |  | $ | — |
___________________ (1)The year ended December 31, 2022 includes $15.8 million related to operating leases acquired in the Merger. The year ended December 31, 2021 includes $12.3 million related to operating leases acquired in the 2021 Williston Basin Acquisition. (2)The year ended December 31, 2022 includes $2.1 million related to finance leases acquired in the Merger. (3)The period from November 20, 2020 through December 31, 2020 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 emergence from bankruptcy. Weighted-average remaining lease terms and discount rates for the Company’s leases were as follows:
| December 31,
| 2022 |  | 2021
Operating Leases |  |  |
Weighted average remaining lease term | 4.6 years |  | 1.9 years
Weighted average discount rate | 4.9 | % |  | 3.4 | %
Finance Leases |  |  |
Weighted average remaining lease term | 2.3 years |  | 1.1 years
Weighted average discount rate | 5.4 | % |  | 3.5 | %

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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 https://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 https://asc.fasb.org/subtopic&trid=77888251 + Details
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