Leases

3 Months Ended

Mar. 31, 2023

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.

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 March 31,
(in thousands)		2023			2022
Lease Cost (1)
Operating lease cost		$	3,232		$	2,641
Short-term lease cost		363			319
Variable lease costs		695			936
Total lease cost		$	4,290		$	3,896

Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		$	(3,232)		$	(2,641)

Leased assets obtained in exchange for new operating lease liabilities		$	2,294		$	—
Leased assets obtained in exchange for new financing lease liabilities		$	1,162		$	—

		As of March 31,
		2023			2022

Weighted-average remaining lease term (years) for operating leases		3.5			3.2
Weighted-average discount rate (2) operating leases		6.9		%	5.8		%
Weighted-average remaining lease term (years) for finance lease		2.4			1.9
Weighted-average discount rate (2) finance lease		4.3		%	1.9		%

(1) Includes an immaterial amount of financing lease.

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