Quarterly report pursuant to Section 13 or 15(d)

LEASES

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LEASES
 6 Months Ended
Jun. 30, 2024
Leases [Abstract]  
LEASES
NOTE 15 — LEASES
Our Driftwood Project land leases are classified as finance leases and include one or more options to extend the lease term for up to 40 years, as well as to terminate the lease within five years, at our sole discretion. We are reasonably certain that those options will be exercised and that our termination rights will not be exercised, and we have, therefore, included those assumptions within our right of use assets and corresponding lease liabilities. Our other land leases are classified as finance leases and include one or more options to extend the lease term for up to 69 years or to terminate the lease within seven years, at our sole discretion. We are reasonably certain that those options and termination rights will not be exercised, and we have, therefore, excluded those assumptions within our right of use assets and corresponding lease liabilities.
Our office space leases are classified as operating leases and include one or more options to extend the lease term up to 10 years, at our sole discretion. As we are not reasonably certain that those options will be exercised, none are recognized as part of our right of use assets and lease liabilities. As none of our leases provide an implicit rate, we have determined our own discount rate.
The following table shows the classification and location of our right-of-use assets and lease liabilities on our Condensed Consolidated Balance Sheets (in thousands):

Leases Balance Sheets Classification June 30, 2024 December 31, 2023
Right of use asset
Operating Other non-current assets $ 11,141  $ 12,814 
Finance Property, plant and equipment, net 124,391  126,225 
Total leased assets $ 135,532  $ 139,039 
Liabilities
Current
Operating Accrued and other liabilities $ 3,987  $ 3,835 
Finance Accrued and other liabilities 908  875 
Non-current
Operating Other non-current liabilities 8,708  10,743 
Finance Finance lease liabilities 120,987  121,450 
Total leased liabilities $ 134,590  $ 136,903 
Lease costs recognized in our Condensed Consolidated Statements of Operations is summarized as follows (in thousands):
Six Months Ended June 30,
Lease costs 2024 2023
Operating lease cost $ 2,117  $ 1,804 
Finance lease cost
Amortization of lease assets 1,835  1,627 
Interest on lease liabilities 4,816  4,370 
Finance lease cost 6,651  5,997 
Total lease cost $ 8,768  $ 7,801 
Other information about lease amounts recognized in our Condensed Consolidated Financial Statements is as follows:
June 30, 2024
Lease term and discount rate
Weighted average remaining lease term (years)
Operating lease 3.0
Finance lease 35.6
Weighted average discount rate
Operating lease 6.4  %
Finance lease 8.7  %
The following table includes other quantitative information for our operating and finance leases (in thousands):
Six Months Ended June 30,
2024 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 2,174  $ 2,009 
Operating cash flows from finance leases 5,502  4,294 
Financing cash flows from finance leases 356  170 
The table below presents a maturity analysis of our lease liability on an undiscounted basis and reconciles those amounts to the present value of the lease liability as of June 30, 2024 (in thousands):
Operating Finance
2024 $ 2,341  $ 5,245 
2025 4,723  10,491 
2026 4,758  10,491 
2027 1,955  10,491 
2028 275  10,491 
After 2028 —  322,335 
Total lease payments $ 14,052  $ 369,544 
Less: discount 1,357  247,649 
Present value of lease liability $ 12,695  $ 121,895 
LEASES
NOTE 15 — LEASES
Our Driftwood Project land leases are classified as finance leases and include one or more options to extend the lease term for up to 40 years, as well as to terminate the lease within five years, at our sole discretion. We are reasonably certain that those options will be exercised and that our termination rights will not be exercised, and we have, therefore, included those assumptions within our right of use assets and corresponding lease liabilities. Our other land leases are classified as finance leases and include one or more options to extend the lease term for up to 69 years or to terminate the lease within seven years, at our sole discretion. We are reasonably certain that those options and termination rights will not be exercised, and we have, therefore, excluded those assumptions within our right of use assets and corresponding lease liabilities.
Our office space leases are classified as operating leases and include one or more options to extend the lease term up to 10 years, at our sole discretion. As we are not reasonably certain that those options will be exercised, none are recognized as part of our right of use assets and lease liabilities. As none of our leases provide an implicit rate, we have determined our own discount rate.
The following table shows the classification and location of our right-of-use assets and lease liabilities on our Condensed Consolidated Balance Sheets (in thousands):

Leases Balance Sheets Classification June 30, 2024 December 31, 2023
Right of use asset
Operating Other non-current assets $ 11,141  $ 12,814 
Finance Property, plant and equipment, net 124,391  126,225 
Total leased assets $ 135,532  $ 139,039 
Liabilities
Current
Operating Accrued and other liabilities $ 3,987  $ 3,835 
Finance Accrued and other liabilities 908  875 
Non-current
Operating Other non-current liabilities 8,708  10,743 
Finance Finance lease liabilities 120,987  121,450 
Total leased liabilities $ 134,590  $ 136,903 
Lease costs recognized in our Condensed Consolidated Statements of Operations is summarized as follows (in thousands):
Six Months Ended June 30,
Lease costs 2024 2023
Operating lease cost $ 2,117  $ 1,804 
Finance lease cost
Amortization of lease assets 1,835  1,627 
Interest on lease liabilities 4,816  4,370 
Finance lease cost 6,651  5,997 
Total lease cost $ 8,768  $ 7,801 
Other information about lease amounts recognized in our Condensed Consolidated Financial Statements is as follows:
June 30, 2024
Lease term and discount rate
Weighted average remaining lease term (years)
Operating lease 3.0
Finance lease 35.6
Weighted average discount rate
Operating lease 6.4  %
Finance lease 8.7  %
The following table includes other quantitative information for our operating and finance leases (in thousands):
Six Months Ended June 30,
2024 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 2,174  $ 2,009 
Operating cash flows from finance leases 5,502  4,294 
Financing cash flows from finance leases 356  170 
The table below presents a maturity analysis of our lease liability on an undiscounted basis and reconciles those amounts to the present value of the lease liability as of June 30, 2024 (in thousands):
Operating Finance
2024 $ 2,341  $ 5,245 
2025 4,723  10,491 
2026 4,758  10,491 
2027 1,955  10,491 
2028 275  10,491 
After 2028 —  322,335 
Total lease payments $ 14,052  $ 369,544 
Less: discount 1,357  247,649 
Present value of lease liability $ 12,695  $ 121,895