Chord Energy Corp

18. Leases

During the three months ended September 30, 2024, the Company recorded a $2.5 million impairment charge related to the Denver office and its related fixed assets acquired in the Arrangement as a result of the current sublease market conditions. There wereno lease impairment charges recorded during the six months ended June 30, 2024. During the nine months ended September 30, 2023, the Company recorded a right-of-use asset impairment charge of $17.5 million related to a portion of one of its corporate offices. The right-of-use asset impairment charges are recorded within exploration and impairment on the Condensed Consolidated Statements of Operations.

In connection with the Arrangement, the Company assumed approximately $29.0 million of operating lease liabilities for operating equipment with lease terms through 2027, $7.5 million of operating lease liabilities for office space, primarily in Denver and Calgary, with lease terms through 2029, and approximately $6.5 million of finance lease liabilities for vehicles with lease terms through 2027.

Other than the items disclosed above, no other material changes have occurred to the Company’s lease portfolio for the periods presented. Refer to the 2023 Annual Report for more information on the Company’s leases.