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 and six months ended June 30, 2019 and 2018 was as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Finance lease cost:
Amortization of right-of-use assets	$	352	$	357	$	703	$	723
Interest on lease liabilities		48		80		103		166
Total finance lease cost	$	400	$	437	$	806	$	889

Operating lease cost		366		406		809		820

Short-term lease cost		—		—		—		—
Total lease cost	$	766	$	843	$	1,615	$	1,709

Supplemental cash flow information related to leases for the six months ended June 30, 2019 and 2018 was as follows (in thousands):


	June 30, 2019		June 30, 2018
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(726)	$	(831)
Operating cash flows from finance leases	$	(106)	$	(154)
Financing cash flows from finance leases	$	(1,407)	$	(1,336)
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	8,226	$	—
Finance leases	$	40	$	—

Supplemental balance sheet information related to leases as of June 30, 2019 and 2018 was as follows (in thousands):


	June 30, 2019		June 30, 2018
Operating leases
Operating lease right-of-use assets	$	7,165	$	—

Operating lease liabilities - current	$	1,206	$	—
Operating lease liabilities - long-term		6,494		—
Total operating lease liabilities	$	7,700	$	—

Finance leases
Property and equipment, at cost	$	8,582	$	8,542
Accumulated depreciation		(2,563)		(1,223)
Property and equipment, net	$	6,019	$	7,319

Finance lease liabilities - current	$	2,910	$	2,770
Finance lease liabilities - long-term		865		3,736
Total finance lease liabilities	$	3,775	$	6,506

Weighted average remaining lease term:
Operating leases		6.7 years		7.6 years
Finance leases		1.3 years		2.3 years

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

Maturities of lease liabilities at June 30, 2019 are as follows (in thousands):


	Operating Leases		Finance Leases
July 2019 - June 2020	$	1,566	$	3,025
July 2020 - June 2021		1,409		841
July 2021 - June 2022		1,253		21
July 2022 - June 2023		1,150		12
July 2023 - June 2024		1,173		—
Thereafter		2,571		—
Total payments under lease agreements	$	9,122	$	3,899

Less imputed interest		(1,422)		(124)

Total lease liabilities	$	7,700	$	3,775