VAALCO Energy, Inc. Quarterly report pursuant to Section 13 or 15(d)

Leases (Tables)

3 Months Ended

Mar. 31, 2022


	Three Months Ended March 31,
	2022		2021
Lease cost:	(in thousands)
Finance lease cost ⁽¹⁾	$	66	$	—
Operating lease cost		4,196		4,390
Short-term lease cost ⁽²⁾		1,014		794
Variable lease cost ⁽³⁾		1,338		1,434
Total lease expense		6,614		6,618
Lease costs capitalized		772		—
Total lease costs	$	7,386	$	6,618

Other information:
Cash paid for amounts included in the measurement of lease liabilities:	2022		2021
Operating cash flows attributable to finance leases	$	—	$	—
Weighted-average remaining lease term		5.42 years		—
Weighted-average discount rate		3.54%		—

Operating cash flows attributable to operating leases	$	6,551	$	4,773
Weighted-average remaining lease term		0.73 years		1.5 years
Weighted-average discount rate		5.83%		6.09%

(1)Represents depreciation and interest associated with financing leases.

(2)Represents short term leases under contracts that are 1 year or less where a ROU asset and lease liability are not required to be recorded.

(3)Variable costs represent differences between minimum lease costs and actual lease costs incurred under lease contracts.


	Three Months Ended March 31,
	2022		2021
	(in thousands)
Finance lease cost	$	39	$	—
Production expense		3,838		2,649
General and administrative expense		16		49
Lease costs billed to the joint venture owners		3,002		3,920
Total lease expense		6,895		6,618
Lease costs capitalized		491		—
Total lease costs	$	7,386	$	6,618