XML 53 R23.htm IDEA: XBRL DOCUMENT v3.24.0.1
LEASES
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
LEASES LEASES
Our 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. The following table summarizes the asset classes of our operating leases (in thousands):
As of December 31,
20232022
Operating Leases
Field equipment(1)
$61,662 $15,131 
Corporate leases8,864 8,235 
Vehicles 7,740 759 
Total right-of-use asset$78,266 $24,125 
Field equipment(1)
$61,741 $15,131 
Corporate leases9,653 8,898 
Vehicles7,740 759 
Total lease liability$79,134 $24,788 
Finance Leases
Right of use asset - field equipment$16,340 $— 
Lease liability - field equipment$16,404 $— 
____________________________
(1)Includes drilling rigs, compressors, certain natural gas processing equipment, and other field equipment.
The following table summarizes the components of our gross lease costs incurred for the periods below (in thousands):
Year Ended December 31,
202320222021
Operating lease cost
$32,769 $21,050 $15,449 
Finance lease cost
Amortization of ROU assets1,275 — 3 
Interest on lease liabilities442 — 1 
Short-term lease cost(1)
79,405 55,059 3,662 
Total lease cost(2)
$113,891 $76,109 $19,115 
___________________________
(1)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.
(2)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, 2023, 2022, and 2021.

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. Our 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.
We recognize 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.
Our weighted-average remaining lease terms and discount rates as of December 31, 2023 are as follows:
Operating LeasesFinance Leases
Weighted-average lease term (years)2.16.1
Weighted-average discount rate 6.4%6.3%
Future commitments by year for our leases with a lease term of greater than one year as of December 31, 2023 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 LeasesFinance Leases
2024$45,524 $4,210 
202527,392 4,277 
20267,576 4,020 
20272,833 3,684 
20281,019 1,350 
Thereafter— 1,461 
Total lease payments84,344 19,002 
Less: Imputed interest
(5,210)(2,598)
Total lease liability$79,134 $16,404 
LEASES LEASES
Our 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. The following table summarizes the asset classes of our operating leases (in thousands):
As of December 31,
20232022
Operating Leases
Field equipment(1)
$61,662 $15,131 
Corporate leases8,864 8,235 
Vehicles 7,740 759 
Total right-of-use asset$78,266 $24,125 
Field equipment(1)
$61,741 $15,131 
Corporate leases9,653 8,898 
Vehicles7,740 759 
Total lease liability$79,134 $24,788 
Finance Leases
Right of use asset - field equipment$16,340 $— 
Lease liability - field equipment$16,404 $— 
____________________________
(1)Includes drilling rigs, compressors, certain natural gas processing equipment, and other field equipment.
The following table summarizes the components of our gross lease costs incurred for the periods below (in thousands):
Year Ended December 31,
202320222021
Operating lease cost
$32,769 $21,050 $15,449 
Finance lease cost
Amortization of ROU assets1,275 — 3 
Interest on lease liabilities442 — 1 
Short-term lease cost(1)
79,405 55,059 3,662 
Total lease cost(2)
$113,891 $76,109 $19,115 
___________________________
(1)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.
(2)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, 2023, 2022, and 2021.

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. Our 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.
We recognize 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.
Our weighted-average remaining lease terms and discount rates as of December 31, 2023 are as follows:
Operating LeasesFinance Leases
Weighted-average lease term (years)2.16.1
Weighted-average discount rate 6.4%6.3%
Future commitments by year for our leases with a lease term of greater than one year as of December 31, 2023 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 LeasesFinance Leases
2024$45,524 $4,210 
202527,392 4,277 
20267,576 4,020 
20272,833 3,684 
20281,019 1,350 
Thereafter— 1,461 
Total lease payments84,344 19,002 
Less: Imputed interest
(5,210)(2,598)
Total lease liability$79,134 $16,404