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 nine months ended September 30, 2019 and 2018 was as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Finance lease cost:
Amortization of right-of-use assets	$	359	$	355	$	1,062	$	1,078
Interest on lease liabilities		41		72		144		238
Total finance lease cost	$	400	$	427	$	1,206	$	1,316

Operating lease cost		388		406		1,197		1,226

Short-term lease cost		—		—		—		—
Total lease cost	$	788	$	833	$	2,403	$	2,542

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


	September 30, 2019		September 30, 2018
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(1,115)	$	(1,246)
Operating cash flows from finance leases	$	(148)	$	(228)
Financing cash flows from finance leases	$	(2,126)	$	(2,018)
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	8,226	$	—
Finance leases	$	121	$	—

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


	September 30, 2019		September 30, 2018
Operating leases
Operating lease right-of-use assets	$	6,863	$	—

Operating lease liabilities - current	$	1,226	$	—
Operating lease liabilities - long-term		6,171		—
Total operating lease liabilities	$	7,397	$	—

Finance leases
Property and equipment, at cost	$	8,663	$	8,542
Accumulated depreciation		(2,932)		(1,560)
Property and equipment, net	$	5,731	$	6,982

Finance lease liabilities - current	$	3,029	$	2,805
Finance lease liabilities - long-term		106		3,028
Total finance lease liabilities	$	3,135	$	5,833

Weighted average remaining lease term:
Operating leases		6.5 years		7.5 years
Finance leases		1.1 years		2.0 years

Weighted average discount rate:
Operating leases		5.04%		—
Finance leases		4.67%		4.65%

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


	Operating Leases		Finance Leases
October 2019 - September 2020	$	1,571	$	3,112
October 2020 - September 2021		1,349		60
October 2021 - September 2022		1,198		42
October 2022 - September 2023		1,154		10
October 2023 - September 2024		1,177		—
Thereafter		2,274		—
Total payments under lease agreements	$	8,723	$	3,224

Less imputed interest		(1,326)		(89)

Total lease liabilities	$	7,397	$	3,135