Leases
We have commitments under operating leases primarily related to office leases. Our leases have initial lease terms ranging from one year to ten years. Certain lease agreements contain provisions for future rent increases.
The components of lease cost for the years ended December 31, 2025, 2024 and 2023 is as follows:
| | | | | | | | | | | | | | | | | | | |
| December 31, | | |
| 2025 | | 2024 | | 2023 | | |
| (In thousands) | | | | |
| Operating lease cost | $ | 4,276 | | | $ | 3,864 | | | $ | 3,866 | | | |
| Variable lease cost | 2,074 | | | 1,963 | | | 1,766 | | | |
| Short-term lease cost(1) | 3,557 | | | 12,281 | | | 17,464 | | | |
| Total lease cost | $ | 9,907 | | | $ | 18,108 | | | $ | 23,096 | | | |
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(1)Includes $2.5 million, $10.7 million and $16.0 million during the years ended December 31, 2025, 2024 and 2023, respectively, of costs associated with short-term drilling contracts.
Other information related to operating leases at December 31, 2025 and 2024, is as follows:
| | | | | | | | | | | |
| December 31, |
| 2025 | | 2024 |
| (In thousands, except lease term and discount rate) |
| Balance sheet classifications | | | |
| Other assets (right-of-use assets) | $ | 10,059 | | | $ | 12,294 | |
| Accrued liabilities (current maturities of leases) | 2,777 | | | 2,816 | |
| Other long-term liabilities (non-current maturities of leases) | 9,438 | | | 12,745 | |
| | | |
| Weighted average remaining lease term | 3.7 years | | 4.6 years |
| | | |
| Weighted average discount rate | 10.7 | % | | 9.8 | % |
The table below presents supplemental cash flow information related to leases during the years ended December 31, 2025, 2024 and 2023:
| | | | | | | | | | | | | | | | | |
| December 31, |
| 2025 | | 2024 | | 2023 |
| (In thousands) | | |
| Operating cash flows for operating leases | $ | 7,339 | | | $ | 7,683 | | | $ | 7,256 | |
| Investing cash flows for operating leases(1) | 2,528 | | | 10,746 | | | 16,029 | |
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(1)Represents costs associated with short-term drilling contracts.
Future minimum rental commitments under our leases at December 31, 2025, are as follows:
| | | | | |
| Operating Leases(1) |
| (In thousands) |
| 2026 | $ | 3,923 | |
| 2027 | 3,956 | |
| 2028 | 3,744 | |
| 2029 | 3,176 | |
| 2030 | — | |
| Thereafter | — | |
| Total undiscounted lease payments | $ | 14,799 | |
| Less: Imputed interest | (2,584) | |
| Total lease liabilities | $ | 12,215 | |
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(1)Does not include purchase commitments for jointly owned fields and facilities where we are not the operator and excludes commitments for exploration activities, including well commitments, in our petroleum contracts.