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Leases | 9 Months Ended
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Sep. 30, 2023
Leases [Abstract] |
Leases | Note 4 — Leases The Company has operating leases principally for office space, drilling rigs, compressors and other equipment necessary to support the Company’s operations. Additionally, the Company has a finance lease related to the use of the Helix Producer I (the “HP-I”), a dynamically positioned floating production facility that interconnects with the Phoenix Field through a production buoy. The HP-I is utilized in the Company’s oil and natural gas development activities and the right-of-use asset was capitalized and included in proved property and depleted as part of the full cost pool. Once items are included in the full cost pool, they are indistinguishable from other proved properties. The capitalized costs within the full cost pool are amortized over the life of the total proved reserves using the unit-of-production method, computed quarterly. Costs associated with the Company’s leases are either expensed or capitalized depending on how the underlying asset is utilized. The lease costs described below are presented on a gross basis and do not represent the Company’s net proportionate share of such amounts. A portion of these costs have been or may be billed to other working interest owners. The Company’s share of these costs is included in property and equipment, lease operating expense or general and administrative expense, as applicable. The components of lease costs were as follows (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30, |
| 2023 |  | 2022 |  | 2023 |  | 2022 |
Finance lease cost - interest on lease liabilities | $ | 3,604 |  | $ | 1,386 |  | $ | 10,969 |  | $ | 5,179 |
Operating lease cost, excluding short-term leases(1) |  | 1,323 |  |  | 568 |  |  | 3,419 |  |  | 1,703 |
Short-term lease cost(2) |  | 33,152 |  |  | 12,982 |  |  | 103,001 |  |  | 24,838 |
Variable lease cost(3) |  | 666 |  |  | 363 |  |  | 1,856 |  |  | 1,088 |
Variable and fixed sublease income |  | (207 | ) |  | — |  |  | (276 | ) |  | — |
Total lease cost | $ | 38,538 |  | $ | 15,299 |  | $ | 118,969 |  | $ | 32,808 |
(1) Operating lease cost reflect a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a straight-line basis. (2) Short-term lease costs are reported at gross amounts and primarily represent costs incurred for drilling rigs, most of which are short-term contracts not recognized as a right-of-use asset and lease liability on the Condensed Consolidated Balance Sheets. (3) Variable lease costs primarily represent differences between minimum payment obligations and actual operating charges incurred by the Company related to its long-term leases. The present value of the fixed lease payments recorded as the Company’s right-of-use (“ROU”) assets and lease liabilities, adjusted for initial direct costs and incentives were as follows (in thousands):
| September 30, 2023 |  | December 31, 2022 |
Operating leases: |  |  |  |
Operating lease assets | $ | 12,313 |  | $ | 5,903 |
Current portion of operating lease liabilities | $ | 2,859 |  | $ | 1,943 |
Operating lease liabilities |  | 18,888 |  |  | 14,855 |
Total operating lease liabilities | $ | 21,747 |  | $ | 16,798 |
Finance leases: |  |  |  |
Proved properties | $ | 166,261 |  | $ | 166,261 |
Other current liabilities | $ | 17,426 |  | $ | 16,306 |
Other long-term liabilities |  | 135,826 |  |  | 149,064 |
Total finance lease liabilities | $ | 153,252 |  | $ | 165,370 |
The table below presents the supplemental cash flow information related to leases (in thousands):
| Nine Months Ended September 30, |
| 2023 |  | 2022 |
Operating cash outflow from finance leases | $ | 10,969 |  | $ | 5,179 |
Operating cash outflow from operating leases | $ | 4,880 |  | $ | 2,776 |
ROU assets obtained in exchange for new operating lease liabilities(1) | $ | 12,971 |  | $ | — |
Remeasurement of lease liability arising from modification of ROU asset(2) | $ | (5,124 | ) | $ | — |
(1) See EnVen Acquisition in Note 2 — Acquisitions and Divestitures. (2) Lease termination accounted for as a lease modification based on the modified lease term. The termination did not take effect contemporaneously with the effective date of the modification.

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- Definition The entire disclosure for operating and finance leases of lessee. Includes, but is not limited to, description of lessee's operating and finance lease and maturity analysis of lease liability. + References No definition available. + Details
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- References No definition available. + Details
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