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7.Leases
In the normal course of business, we enter into operating lease agreements to support our operations. Our leased assets include right-of-way easements for our wells and facilities, office space and other assets. We currently have no finance leases.
Balance Sheet Information
The following table provides supplemental consolidated balance sheet information related to leases:
|
|
|
|
|
|
|
|
(in thousands) |
|
|
Classification |
June 30, 2022 |
Assets |
|
|
|
|
|
|
|
Right-of-Use Assets |
|
Consolidated Balance Sheet |
|
$ |
7,067 |
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
Current Lease Liabilities |
|
|
Accrued and Other Current Liabilities |
|
|
1,045 |
Noncurrent Lease Liabilities |
|
|
Other Long-Term Liabilities |
|
|
5,631 |
Statement of Operations Information
The following table provides the components of lease cost, excluding lease cost related to short-term leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
(in thousands) |
|
|
|
|
June 30, 2022 |
|
June 30, 2022 |
Direct Operating Costs |
|
|
|
|
|
|
226 |
|
|
|
446 |
General and Administrative |
|
|
|
|
|
|
165 |
|
|
|
332 |
Total Lease Cost |
|
|
|
|
|
$ |
391 |
|
|
$ |
778 |
Short-Term Leases
Our short-term lease cost, which consisted primarily of field equipment rentals, totaled $2.0 million and $3.8 million for the three and six months ended June 30, 2022.
Cash Flow Information
The following table summarizes supplemental cash flow information related to leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
(in thousands) |
|
|
|
|
June 30, 2022 |
Cash Paid for Amounts Included in Lease Liabilities |
|
|
|
|
$ |
|
542 |
Reduction in Right-of-Use Assets and Lease Liabilities Due to Lease Agreement Modifications |
|
|
|
(198) |
Lease Terms and Discount Rates
The following table provides lease terms and discount rates related to leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2022 |
Weighted Average Remaining Lease Term (Years) |
|
|
|
|
|
|
6.5 |
Weighted Average Discount Rate |
|
|
|
|
|
|
2.85% |
Annual Lease Maturities
The following table provides maturities of lease liabilities at June 30, 2022:
|
|
|
|
|
|
|
|
(in thousands) |
|
|
|
|
|
|
2022 |
|
|
|
|
$ |
|
679 |
2023 |
|
|
|
|
|
|
1,013 |
2024 |
|
|
|
|
|
|
924 |
2025 |
|
|
|
|
|
|
686 |
2026 |
|
|
|
|
|
|
611 |
Thereafter |
|
|
|
|
|
|
3,546 |
Total Lease Payments |
|
|
|
|
|
|
7,459 |
Less: Interest |
|
|
|
|
|
|
(783) |
Present Value of Lease Liabilities |
|
|
|
|
$ |
|
6,676 |
Future Minimum Lease Commitments
Future minimum lease commitments under non-cancellable leases at December 31, 2021 were as follows:
|
|
|
|
|
|
|
|
(in thousands) |
|
|
|
|
|
|
|
2022 |
|
|
|
|
$ |
824 |
2023 |
|
|
|
|
|
638 |
2024 |
|
|
|
|
|
622 |
2025 |
|
|
|
|
|
514 |
2026 |
|
|
|
|
|
438 |
Thereafter |
|
|
|
|
|
816 |
Total |
|
|
|
|
$ |
3,852 |
|