W&T Offshore, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Leases (Tables)

Leases (Tables)

12 Months Ended

Dec. 31, 2021


	December 31,
	2021		2020
Operating lease cost, excluding short-term leases	$	1,743	$	3,060
Short-term lease cost ⁽¹⁾		5,926		1,633
Total lease cost	$	7,669	$	4,693

(1)

Short-term lease costs are reported at gross amounts and primarily represent costs incurred for drilling rigs, most of which are short-term contracts not recognized as a right-of-use asset and lease liability on the balance sheet. The majority of such costs were recorded within Oil and natural gas properties and other, net, on the Consolidated Balance Sheet.

Operating Lease, Lessee, Assets and Liabilities [Table Text Block]

The present value of the fixed lease payments recorded as the Company’s right-of-use asset and liability, adjusted for initial direct costs and incentives are as follows (in thousands):


	December 31,
	2021		2020
ROU assets	$	10,602	$	11,509

Lease liability:
Accrued liabilities	$	1,115	$	394
Other liabilities		11,227		11,360
Total lease liability	$	12,342	$	11,754

Lessee, Operating Lease, Weighted Average Remaining Lease Term and Discount Rate [Table Text Block]

The table below presents the weighted average remaining lease term and discount rate related to leases (in thousands):


	December 31,
	2021		2020
Weighted average remaining lease term:	14.1 years		14.8 years
Weighted average discount rate:	10.1	%	10.2	%

Lessee, Operating Lease, Supplemental Cash Flow Information [Table Text Block]

The table below presents the supplemental cash flow information related to leases (in thousands):


	December 31,
	2021		2020
Operating cash outflow from operating leases	$	425	$	1,825
Right-of-use assets obtained in exchange for new operating lease liabilities	$	—	$	5,142

Lessee, Operating Lease, Liability, Maturity [Table Text Block]

Undiscounted future minimum payments as of December 31, 2021 are as follows (in thousands):


2022	$	1,134
2023		1,625
2024		2,023
2025		1,512
2026		1,542
Thereafter		15,919
Total lease payments		23,755
Present value adjustment		(11,413)
Total	$	12,342