Annual report pursuant to Section 13 and 15(d)

Leases

v3.22.4
Leases
12 Months Ended
Dec. 31, 2022
Leases  
Leases

10. 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

    

December 31, 2022

Assets

Right-of-Use Assets

Consolidated Balance Sheet

$

9,135

Liabilities

Current Lease Liabilities

Accrued and Other Current Liabilities

$

1,176

Noncurrent Lease Liabilities

Other Long-Term Liabilities

7,719

Statement of Operations Information

The following table provides the components of lease cost, excluding lease cost related to short-term leases:

Year Ended

December 31, 

(in thousands)

    

2022

Direct Operating Costs

$

969

General and Administrative

700

Total Lease Cost

$

1,669

Short-term Leases

Our short-term lease cost, which consisted primarily of field equipment rentals, totaled $11.1 million for the year ended December 31, 2022.

Cash Flow Information

The following table summarizes supplemental cash flow information related to leases:

Year Ended

December 31, 

(in thousands)

    

2022

Cash Paid for Amounts Included in Lease Liabilities

$

1,282

Right-of-Use Assets Obtained in Exchange for Operating Lease Liabilities, net

2,639

Lease Terms and Discount Rates

The following table provides lease terms and discount rates related to leases:

    

December 31, 2022

Weighted Average Remaining Lease Term (Years)

6.6

Weighted Average Discount Rate

2.85%

Annual Lease Maturities

The following table provides maturities of lease liabilities at December 31, 2022:

(in thousands)

    

2023

$

1,290

2024

1,206

2025

952

2026

671

2027

1,597

Thereafter

4,250

Total Lease Payments

9,966

Less: Interest

(1,071)

Present Value of Lease Liabilities

$

8,895

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

Leases That Have Not Yet Commenced

During the fourth quarter of 2022, we entered into an additional operating lease for office space. We anticipate that this lease will commence during 2023. Undiscounted future lease payments of $10.1 million will be included in the determination of the right-of-use asset and lease liability upon lease commencement.