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Leases
 12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Leases Leases
The Company determines if an arrangement is or contains a lease at inception. A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. As most of the Company's leases do not provide an implicit rate, the Company's incremental borrowing rate was used as the discount rate when determining the present value of future payments. Lease assets are recognized based on the lease liability plus any prepaid lease payments and excluding lease incentives and initial direct costs incurred for the same periods. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that option will be exercised. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.

Operating leases are included in other assets, other current liabilities and other long-term obligations, and finance leases are included in other property, plant and equipment, other current liabilities and other long-term obligations on the accompanying consolidated balance sheet as of December 31, 2021 and 2020.

The Company had operating and financing leases for vehicles and equipment outstanding during the year ended December 31, 2021 and 2020, which were not significant to the consolidated financial statements.

The components of lease costs recognized for the Company's right-of-use leases are shown below (in thousands):
Year Ended December 31, 2021Year Ended December 31, 2020Year Ended December 31, 2019
Short-term lease cost (1)$892 $1,880 $9,994 
Financing lease cost389 1,220 1,397 
Operating lease cost151 169 188 
Total lease cost$1,432 $3,269 $11,579 
___________________
(1)There were no short-term lease costs capitalized as part of oil and natural gas properties during the year ended December 31, 2021 and 2020, and $4.8 million in 2019. Portions of these costs were reimbursed to the Company by other working interest owners.
Leases Leases
The Company determines if an arrangement is or contains a lease at inception. A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. As most of the Company's leases do not provide an implicit rate, the Company's incremental borrowing rate was used as the discount rate when determining the present value of future payments. Lease assets are recognized based on the lease liability plus any prepaid lease payments and excluding lease incentives and initial direct costs incurred for the same periods. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that option will be exercised. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.

Operating leases are included in other assets, other current liabilities and other long-term obligations, and finance leases are included in other property, plant and equipment, other current liabilities and other long-term obligations on the accompanying consolidated balance sheet as of December 31, 2021 and 2020.

The Company had operating and financing leases for vehicles and equipment outstanding during the year ended December 31, 2021 and 2020, which were not significant to the consolidated financial statements.

The components of lease costs recognized for the Company's right-of-use leases are shown below (in thousands):
Year Ended December 31, 2021Year Ended December 31, 2020Year Ended December 31, 2019
Short-term lease cost (1)$892 $1,880 $9,994 
Financing lease cost389 1,220 1,397 
Operating lease cost151 169 188 
Total lease cost$1,432 $3,269 $11,579 
___________________
(1)There were no short-term lease costs capitalized as part of oil and natural gas properties during the year ended December 31, 2021 and 2020, and $4.8 million in 2019. Portions of these costs were reimbursed to the Company by other working interest owners.