Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.22.2
Leases
6 Months Ended
Jun. 30, 2022
Leases  
Leases

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