Leases

9 Months Ended

Sep. 30, 2019

We lease certain pipeline and transportation equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term.

Our leases do not have any outstanding renewal options. Certain leases also include options to purchase the leased equipment.

Certain of our lease agreements include rates based on equipment usage and others include rate inflationary indices based increases. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The following table presents additional information related to our operating leases in accordance ASC 842:



	Three Months Ended September 30,			Nine Months Ended September 30,
(in thousands)	2019			2019
Lease Cost
Operating lease cost	$	1,744		$	4,643
Short-term lease cost ⁽¹⁾	47			850
Total lease cost	$	1,791		$	5,493

Other Information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	(1,744	)	$	(4,643	)

Leased assets obtained in exchange for new operating lease liabilities	$	649		$	649

				September 30, 2019
Weighted-average remaining lease term (years) for operating leases				3.58
Weighted-average discount rate ⁽²⁾ operating leases				7.8		%

⁽¹⁾Includes an immaterial amount of variable lease cost.

⁽²⁾Our discount rate is primarily based on our incremental borrowing rate in accordance with ASC 842.

The following is an estimate of the maturity of our lease liabilities for operating leases having remaining noncancelable terms in excess of one year as of September 30, 2019 (in thousands) under ASC 842:



October 1 to December 31, 2019	$	1,533
2020	6,055
2021	5,755
2022	5,047
2023	2,459
Thereafter	—
Total lease payments	20,849
Less: Interest	2,551
Present value of lease liabilities	$	18,298

The following is an estimate of our future minimum lease payments for operating leases having remaining noncancelable terms in excess of one year as of December 31, 2018 (in thousands) under ASC 840, Leases:



2019	$	5,755
2020	5,659
2021	5,337
2022	5,031
2023	2,429
Thereafter	8
Total future minimum lease payments	$	24,219