6. LEASES

The Company leases certain vehicles, seismic recording equipment, real property and office equipment under lease agreements. The Company evaluates each lease to determine its appropriate classification as an operating lease or finance lease for financial reporting purposes. The majority of our operating leases are non-cancelable operating leases for office and shop space in Midland, Plano, Denison, Houston, Denver, Oklahoma City and Calgary, Alberta.

On January 1, 2019, the Company adopted Topic 842 requiring organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. The Company elected to use the transition method of adoption, under which the new standards were applied prospectively rather than restating the prior periods presented. As a result of the transition method of adoption certain accounts lack a comparable value for the same period of 2018, specifically accounts and values associated with operating leases and ROU assets.

The components of lease cost for the three months ended March 31, 2019 and 2018 were as follows (in thousands):


	March 31, 2019		March 31, 2018

Finance lease cost:
Amortization of right-of-use assets	$	351	$	366
Interest on lease liabilities		55		86
Total finance lease cost		406		452

Operating lease cost		443		414

Short-term lease cost		10		4
Total lease cost	$	859	$	870

Supplemental cash flow information related to leases for the three months ended March 31, 2019 and 2018 was as follows (in thousands):


	March 31, 2019		March 31, 2018

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(349)	$	(410)
Operating cash flows from finance leases	$	(57)	$	(73)
Financing cash flows from finance leases	$	(700)	$	(663)
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	8,337	$	—
Finance leases	$	40	$	—

Supplemental balance sheet information related to leases as of March 31, 2019 and 2018 was as follows (in thousands):


	March 31, 2019		March 31, 2018
Operating leases
Operating lease right-of-use assets	$	7,531	$	—

Operating lease liabilities - current	$	1,229	$	—
Operating lease liabilities - long-term		6,839		—
Total operating lease liabilities	$	8,068	$	—

Finance leases
Property and equipment, at cost	$	8,582	$	8,542
Accumulated depreciation		(2,223)		(869)
Property and equipment, net	$	6,359	$	7,673

Finance lease liabilities - current	$	2,873	$	2,740
Finance lease liabilities - long-term		1,602		4,446
Total finance lease liabilities	$	4,475	$	7,186

Weighted average remaining lease term:
Operating leases		6.8 years		7.9 years
Finance leases		1.5 years		2.5 years

Weighted average discount rate:
Operating leases		5.04%		—
Finance leases		4.66%		4.65%

Maturities of lease liabilities at March 31, 2019 were as follows (in thousands):


	Operating Leases		Finance Leases

April 2019 - March 2020	$	1,614	$	3,022
April 2020 - March 2021		1,491		1,587
April 2021 - March 2022		1,314		25
April 2022 - March 2023		1,147		15
April 2023 - March 2024		1,168		—
Thereafter		2,866		—
Total payments under lease agreements	$	9,600	$	4,649

Less imputed interest		(1,532)		(174)

Total lease liabilities	$	8,068	$	4,475