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LEASES | 12 Months Ended
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Dec. 31, 2022
Leases [Abstract] |
LEASES | LEASES The Company’s right-of-use assets and lease liabilities are recognized on the accompanying balance sheets based on the present value of the expected lease payments over the lease term. As of December 31, 2022 and 2021, the Company did not have any agreements in place that were classified as finance leases. The following table summarizes the asset classes of the Company’s operating leases (in thousands):
|  | As of December 31,
|  | 2022 |  | 2021
Operating Leases |  |  |  |
Field equipment(1) |  | $ | 15,131 |  |  | $ | 29,312 |
Corporate leases |  | 8,235 |  |  | 9,484 |
Vehicles |  | 759 |  |  | 1,089 |
Total right-of-use asset |  | $ | 24,125 |  |  | $ | 39,885 |
Field equipment(1) |  | $ | 15,131 |  |  | $ | 29,312 |
Corporate leases |  | 8,898 |  |  | 9,870 |
Vehicles |  | 759 |  |  | 1,089 |
Total lease liability |  | $ | 24,788 |  |  | $ | 40,271 |
____________________________ (1)Includes compressors, certain natural gas processing equipment, and other field equipment. The following table summarizes the components of the Company’s gross lease costs incurred for the periods below (in thousands):
|  | Year Ended December 31,
|  | 2022 |  | 2021 |  | 2020
Operating lease cost(1) |  | $ | 21,050 |  |  | $ | 15,449 |  |  | $ | 13,957 |
Short-term lease cost(2) |  | 55,059 |  |  | 3,662 |  |  | 2,058 |
Sublease income(3) |  | (63) |  |  | (367) |  |  | (358) |
Total lease cost(4) |  | $ | 76,046 |  |  | $ | 18,744 |  |  | $ | 15,657 |
___________________________ (1)Includes office rent expense of $4.3 million, $2.2 million, and $1.1 million for the years ended December 31, 2022, 2021, and 2020, respectively. (2)Includes drilling rigs and other equipment. Short-term drilling rig costs include a non-lease labor component, which is treated as a single lease component. (3)The Company subleased a portion of one of its office spaces for the remainder of the office lease term (4)Variable lease costs represent differences between lease obligations and actual costs incurred for certain leases that do not have fixed payments related to both lease and non-lease components. Such incremental costs include lease payment increases or decreases driven by market price fluctuations and leased asset maintenance costs.Variable lease costs were not material for the years ended December 31, 2022, 2021, and 2020. Lease costs disclosed above are presented on a gross basis. A portion of these costs may have been or will be billed to other working interest owners. The Company’s net share of these costs is included in various line items on the accompanying statements of operations or capitalized to proved properties or other property and equipment, as applicable. The Company recognizes operating lease cost on a straight-line basis. Short-term lease costs are recognized as incurred and represent payments for leases with a lease term of one year or less, excluding leases with a term of one month or less. The Company’s weighted-average remaining lease terms and discount rates as of December 31, 2022 are as follows:
|  | Operating Leases
Weighted-average lease term (years) |  | 2.6
Weighted-average discount rate |  | 4.0%
Future commitments by year for the Company’s leases with a lease term of one year or more as of December 31, 2022 are presented in the table below. Such commitments are reflected at undiscounted values and are reconciled to the discounted present value recognized on the accompanying balance sheets as follows (in thousands):
|  | Operating Leases
2023 |  | $ | 14,139 |
2024 |  | 5,737 |
2025 |  | 2,150 |
2026 |  | 1,803 |
2027 |  | 1,771 |
Thereafter |  | 598 |
Total lease payments |  | 26,198 |
Less: imputed interest |  | (1,410) |
Total lease liability |  | $ | 24,788 |

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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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