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Leases | 12 Months Ended
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Dec. 31, 2024
Leases [Abstract] |
Leases | Note T – Leases Nature of Leases The Company has entered into various operating and financial leases such as a natural gas processing plant, floating production storage and off-take vessels, buildings, marine vessels, vehicles, drilling rigs, pipelines and other oil and natural gas field equipment. Remaining lease terms range from 1 year to 16 years, some of which may include options to extend leases for multi-year periods and others which include options to terminate the leases within 1 month. Options to extend lease terms are at the Company’s discretion. Early lease terminations are a combination of Company discretion and mutual agreement between the Company and the lessor. Purchase options also exist for certain leases. Related Expenses Expenses related to finance and operating leases included in the Consolidated Financial Statements are as follows:
|  |  |  | Year Ended December 31,
(Thousands of dollars) |  | Financial Statement Category |  | 2024 |  | 2023
Operating lease 1, 2 |  | Lease operating expenses |  | $ | 411,303 |  |  | $ | 246,721 |
Operating lease 2 |  | Transportation, gathering and processing |  | 16,117 |  |  | 37,797 |
Operating lease 2 |  | Selling and general expenses |  | 10,990 |  |  | 9,859 |
Operating lease 2 |  | Other operating expense |  | 6,622 |  |  | 675 |
Operating lease 2 |  | Exploration expenses |  | 38,974 |  |  | 110,577 |
Operating lease 2 |  | Property, plant and equipment |  | 277,170 |  |  | 204,595 |
Operating lease 2 |  | Asset retirement obligations |  | 10 |  |  | 57,442 |
Finance lease |  |  |  |  |  |
Amortization of asset |  | Depreciation, depletion and amortization |  | 855 |  |  | 1,505 |
Interest on lease liabilities |  | Interest expense, net |  | 193 |  |  | 221 |
Sublease income |  | Other income |  | (1,143) |  |  | (1,402) |
Net lease expense |  |  |  | $ | 761,091 |  |  | $ | 667,990 |
1 Variable lease expenses. For the years ended December 31, 2024 and 2023, includes variable lease expenses of $42.3 million and $36.7 million, respectively, primarily related to additional volumes processed at a natural gas processing plant. 2 Short-term leases due within 12 months. For the year ended December 31, 2024, includes $236.4 million in lease operating expenses, $13.0 million for “Transportation, gathering and processing”, $38.5 million for “Exploration expenses, including undeveloped lease amortization”, $0.8 million in “Selling and general expenses”, $6.2 million in “Other operating expense”, $97.1 million in “Property, plant and equipment, net” and nil in “Asset retirement obligations” relating to short-term leases due within 12 months. Expenses primarily relate to drilling rigs and other oil and natural gas field equipment. For the year ended December 31, 2023, includes $78.2 million in lease operating expenses, $29.4 million in “Transportation, gathering and processing”, $80.3 million for “Exploration expenses, including undeveloped lease amortization”, $1.6 million in “Selling and general expenses", $0.3 million in “Other operating expense”, $112.7 million in “Property, plant and equipment, net” and $57.4 million in “Asset retirement obligations” relating to short-term leases due within 12 months. Expenses primarily relate to drilling rigs and other oil and natural gas field equipment. Maturity of Lease Liabilities
(Thousands of dollars) | Operating Leases |  | Finance Leases |  | Total
2025 | $ | 290,474 |  |  | $ | 1,257 |  |  | $ | 291,731 |
2026 | 123,487 |  |  | 1,257 |  |  | 124,744 |
2027 | 66,521 |  |  | 1,257 |  |  | 67,778 |
2028 | 59,398 |  |  | 1,257 |  |  | 60,655 |
2029 | 56,849 |  |  | 456 |  |  | 57,305 |
Remaining | 406,450 |  |  | 927 |  |  | 407,377 |
Total future minimum lease payments | 1,003,179 |  |  | 6,411 |  |  | 1,009,590 |
Less imputed interest | (212,590) |  |  | (1,534) |  |  | (214,124) |
Present value of lease liabilities 1 | $ | 790,589 |  |  | $ | 4,877 |  |  | $ | 795,466 |
1 Includes both the current and long-term portion of the lease liabilities. Lease Term and Discount Rate
| December 31, 2024 |  | December 31, 2023
Weighted average remaining lease term: |  |  |
Operating leases | 8 years |  | 10 years
Finance leases | 6 years |  | 5 years
Weighted average discount rate: |  |  |
Operating leases | 5.7 | % |  | 5.9 | %
Finance leases | 4.9 | % |  | 4.7 | %
Other Information
| Year Ended December 31,
(Thousands of dollars) | 2024 |  | 2023
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows from operating leases | $ | 328,847 |  |  | $ | 271,488 |
Operating cash flows from finance leases | 311 |  |  | 221 |
Financing cash flows from finance leases | 665 |  |  | 622 |
Right-of-use assets obtained in exchange for lease liabilities: |  |  |
Operating leases ¹ | $ | 349,312 |  |  | $ | 5,923 |
1 For the year ended December 31, 2024, right-of-use assets obtained in exchange for lease liabilities primarily includes $254.1 million related to the extension of an operating lease pertaining to a drill ship used in our U.S. Offshore business and $52.7 million pertaining to two drilling rigs and several natural gas compressor units at our U.S. Onshore business. December 31, 2023 includes $4.5 million related to natural gas compressor units at various U.S. Onshore locations.
Leases | Note T – Leases Nature of Leases The Company has entered into various operating and financial leases such as a natural gas processing plant, floating production storage and off-take vessels, buildings, marine vessels, vehicles, drilling rigs, pipelines and other oil and natural gas field equipment. Remaining lease terms range from 1 year to 16 years, some of which may include options to extend leases for multi-year periods and others which include options to terminate the leases within 1 month. Options to extend lease terms are at the Company’s discretion. Early lease terminations are a combination of Company discretion and mutual agreement between the Company and the lessor. Purchase options also exist for certain leases. Related Expenses Expenses related to finance and operating leases included in the Consolidated Financial Statements are as follows:
|  |  |  | Year Ended December 31,
(Thousands of dollars) |  | Financial Statement Category |  | 2024 |  | 2023
Operating lease 1, 2 |  | Lease operating expenses |  | $ | 411,303 |  |  | $ | 246,721 |
Operating lease 2 |  | Transportation, gathering and processing |  | 16,117 |  |  | 37,797 |
Operating lease 2 |  | Selling and general expenses |  | 10,990 |  |  | 9,859 |
Operating lease 2 |  | Other operating expense |  | 6,622 |  |  | 675 |
Operating lease 2 |  | Exploration expenses |  | 38,974 |  |  | 110,577 |
Operating lease 2 |  | Property, plant and equipment |  | 277,170 |  |  | 204,595 |
Operating lease 2 |  | Asset retirement obligations |  | 10 |  |  | 57,442 |
Finance lease |  |  |  |  |  |
Amortization of asset |  | Depreciation, depletion and amortization |  | 855 |  |  | 1,505 |
Interest on lease liabilities |  | Interest expense, net |  | 193 |  |  | 221 |
Sublease income |  | Other income |  | (1,143) |  |  | (1,402) |
Net lease expense |  |  |  | $ | 761,091 |  |  | $ | 667,990 |
1 Variable lease expenses. For the years ended December 31, 2024 and 2023, includes variable lease expenses of $42.3 million and $36.7 million, respectively, primarily related to additional volumes processed at a natural gas processing plant. 2 Short-term leases due within 12 months. For the year ended December 31, 2024, includes $236.4 million in lease operating expenses, $13.0 million for “Transportation, gathering and processing”, $38.5 million for “Exploration expenses, including undeveloped lease amortization”, $0.8 million in “Selling and general expenses”, $6.2 million in “Other operating expense”, $97.1 million in “Property, plant and equipment, net” and nil in “Asset retirement obligations” relating to short-term leases due within 12 months. Expenses primarily relate to drilling rigs and other oil and natural gas field equipment. For the year ended December 31, 2023, includes $78.2 million in lease operating expenses, $29.4 million in “Transportation, gathering and processing”, $80.3 million for “Exploration expenses, including undeveloped lease amortization”, $1.6 million in “Selling and general expenses", $0.3 million in “Other operating expense”, $112.7 million in “Property, plant and equipment, net” and $57.4 million in “Asset retirement obligations” relating to short-term leases due within 12 months. Expenses primarily relate to drilling rigs and other oil and natural gas field equipment. Maturity of Lease Liabilities
(Thousands of dollars) | Operating Leases |  | Finance Leases |  | Total
2025 | $ | 290,474 |  |  | $ | 1,257 |  |  | $ | 291,731 |
2026 | 123,487 |  |  | 1,257 |  |  | 124,744 |
2027 | 66,521 |  |  | 1,257 |  |  | 67,778 |
2028 | 59,398 |  |  | 1,257 |  |  | 60,655 |
2029 | 56,849 |  |  | 456 |  |  | 57,305 |
Remaining | 406,450 |  |  | 927 |  |  | 407,377 |
Total future minimum lease payments | 1,003,179 |  |  | 6,411 |  |  | 1,009,590 |
Less imputed interest | (212,590) |  |  | (1,534) |  |  | (214,124) |
Present value of lease liabilities 1 | $ | 790,589 |  |  | $ | 4,877 |  |  | $ | 795,466 |
1 Includes both the current and long-term portion of the lease liabilities. Lease Term and Discount Rate
| December 31, 2024 |  | December 31, 2023
Weighted average remaining lease term: |  |  |
Operating leases | 8 years |  | 10 years
Finance leases | 6 years |  | 5 years
Weighted average discount rate: |  |  |
Operating leases | 5.7 | % |  | 5.9 | %
Finance leases | 4.9 | % |  | 4.7 | %
Other Information
| Year Ended December 31,
(Thousands of dollars) | 2024 |  | 2023
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows from operating leases | $ | 328,847 |  |  | $ | 271,488 |
Operating cash flows from finance leases | 311 |  |  | 221 |
Financing cash flows from finance leases | 665 |  |  | 622 |
Right-of-use assets obtained in exchange for lease liabilities: |  |  |
Operating leases ¹ | $ | 349,312 |  |  | $ | 5,923 |
1 For the year ended December 31, 2024, right-of-use assets obtained in exchange for lease liabilities primarily includes $254.1 million related to the extension of an operating lease pertaining to a drill ship used in our U.S. Offshore business and $52.7 million pertaining to two drilling rigs and several natural gas compressor units at our U.S. Onshore business. December 31, 2023 includes $4.5 million related to natural gas compressor units at various U.S. Onshore locations.

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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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + 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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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