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, 2023

The components of lease costs were as follows (in thousands):


	December 31,
	2023		2022		2021
Operating lease costs, excluding short-term leases	$	1,670	$	1,579	$	1,743
Short-term lease cost ⁽¹⁾		58		2,957		5,926
Variable lease cost ⁽²⁾		765		647		—
Total lease cost	$	2,493	$	5,183	$	7,669

⁽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 are recorded within “Oil and natural gas properties, net” in the consolidated balance sheet.

⁽²⁾	Variable lease costs primarily represent differences between minimum lease payment obligations and actual operating charges incurred by the Company related to long-term operating leases.

Schedule for Company's ROU assets and operating lease liabilities

The present value of the fixed lease payments recorded as the Company’s ROU assets and operating lease liabilities, adjusted for initial direct costs and incentives, are as follows (in thousands):


	December 31,
	2023		2022
ROU assets ‒ Other assets	$	10,515	$	10,364

Lease liability:
Accrued liabilities	$	1,455	$	1,628
Other liabilities		10,803		10,527
Total lease liability	$	12,258	$	12,155

Schedule for weighted average remaining lease term and discount rate

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


	December 31,
	2023		2022		2021
Weighted average remaining lease term:	12.1 years		13.1 years		14.1 years
Weighted average discount rate:	10.3	%	10.1	%	10.1	%

Schedule for supplemental cash flow information

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


	December 31,
	2023		2022		2021
Operating cash outflow from operating leases	$	1,713	$	1,224	$	425
Right-of-use assets obtained in exchange for new operating lease liabilities	$	559	$	—	$	—

Schedule for undiscounted future minimum payments

Undiscounted future minimum payments as of December 31, 2023 are as follows (in thousands):


2024	$	2,156
2025		1,601
2026		1,625
2027		1,658
2028		1,712
Thereafter		12,888
Total lease payments		21,640
Less: imputed interest		(9,382)
Total	$	12,258