Commitments and contingencies Legal actions . The Company is a party to proceedings and claims incidental to its business. Assessing contingencies is highly subjective and requires judgment about uncertain future events. When evaluating contingencies related to legal proceedings, the Company may be unable to estimate losses due to a number of factors, including potential defenses, the procedural status of the matter in question, the presence of complex legal and/or factual issues, the ongoing discovery and/or development of information important to the matter. For material matters that the Company believes an unfavorable outcome is reasonably possible, it would disclose the nature of the matter and a range of potential exposure, unless an estimate cannot be made at this time. The Company does not believe that the loss for any other litigation matters and claims that are reasonably possible to occur will have a material adverse effect on its financial position, results of operations or liquidity. The Company will continue to evaluate proceedings and claims involving the Company on a regular basis and will establish and adjust any estimated accruals as appropriate. Severance tax, royalty and joint interest audits . The Company is subject to routine severance, royalty and joint interest audits from regulatory bodies and non-operators and makes accruals as necessary for estimated exposure when deemed probable and estimable. Additionally, the Company is subject to various possible contingencies that arise primarily from interpretations affecting the oil and natural gas industry. Such contingencies include differing interpretations as to the prices at which oil and natural gas sales may be made, the prices at which royalty owners may be paid for production from their leases, allowable costs under joint interest arrangements and other matters. Although the Company believes that it has estimated its exposure with respect to the various laws and regulations, administrative rulings and interpretations thereof, adjustments could be required as new interpretations and regulations are issued. Commitments. The Company periodically enters into contractual arrangements under which the Company is committed to expend funds. These contractual arrangements relate to purchase agreements the Company has entered into including water commitment agreements, throughput volume delivery commitments, fixed and variable power commitments, sand commitment agreements, fixed asset commitments and maintenance commitments. The Companys drilling rig commitments are considered leases under ASU 2016-02 and are included within the tables under the Leases section below. The following table summarizes the Companys commitments at June 30, 2019 : (in millions) Remaining 2019 $ 20 2020 70 2021 77 2022 38 2023 35 2024 36 Thereafter 103 Total $ 379 At June 30, 2019 , the Companys delivery commitments covered the following gross volumes of oil and natural gas: Oil (MMBbl) Natural Gas (MMcf) Remaining 2019 7 1,582 2020 32 4,792 2021 37 18,931 2022 41 16,425 2023 33 16,425 2024 33 16,470 Thereafter 114 32,850 Total 297 107,475 Other commitments. In January 2019, the Company entered into a firm sales agreement with a third-party purchaser. The purchaser provides integrated transportation and marketing optionality, including dock capacity in Corpus Christi, Texas. The agreement has a term that ends five years after the completion of certain infrastructure projects and requires the Company to deliver 50,000 barrels of oil per day that will receive waterborne market pricing. Leases. The Company leases office space, office equipment, drilling rigs, field equipment and vehicles. Right-of-use assets and lease liabilities are initially recorded at commencement date based on the present value of lease payments over the lease term. Leased assets may be used in joint operations with other working interest owners. When the Company is the operator in a joint arrangement, the right-of-use assets and lease liabilities are determined on a gross basis. Certain leases contain variable costs above the minimum required payments and are not included in the right-of-use assets or lease liabilities. Options to extend or terminate a lease are included in the lease term when it is reasonably certain the Company will exercise that option. For operating leases, lease cost is recognized on a straight-line basis over the term of the lease. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. The Company elected a practical expedient to not separate non-lease components from lease components for the following asset types: office space, office equipment, drilling rigs, and field equipment. The Company did not elect this practical expedient for vehicle leases. The following table provides supplemental consolidated balance sheet information related to leases at June 30, 2019 : (in millions) Classification June 30, 2019 Assets Operating lease right-of-use assets Other property and equipment, net $ 17 Finance lease right-of-use assets Other property and equipment, net 15 Total lease right-of-use assets (a) $ 32 Liabilities Current: Operating Other current liabilities $ 7 Finance Other current liabilities 6 Noncurrent: Operating Asset retirement obligations and other long-term liabilities 12 Finance Asset retirement obligations and other long-term liabilities 10 Total lease liabilities (a) $ 35 (a) Total lease right-of-use assets and lease liabilities are gross amounts, and a portion of these costs will be reimbursed by other working interest owners. As of June 30, 2019 , the Company had additional operating leases that have not yet commenced. Future undiscounted lease payments of $15 million and estimated lease incentives of $5 million will be included in the determination of the right-of-use asset and lease liability upon lease commencement. The following table provides the components of lease cost, excluding lease cost related to short-term leases, for the three and six months ended June 30, 2019 : (in millions) Classification Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Operating lease cost General and administrative $ 2 $ 4 Finance lease cost Depreciation, depletion, and amortization (a) 2 4 Total lease cost $ 4 $ 8 (a) Interest on lease liabilities related to finance leases was immaterial during the three and six months ended June 30, 2019. The Companys short-term leases are comprised primarily of drilling rigs and certain field equipment. During the three and six months ended June 30, 2019 , the Companys gross lease costs related to its short-term leases were $90 million and $184 million , respectively, of which $64 million and $131 million , respectively, were capitalized as part of oil and natural gas properties. A portion of these costs was reimbursed to the Company by other working interest owners. The following table summarizes supplemental cash flow information related to leases for the six months ended June 30, 2019 : (in millions) Six Months Ended June 30, 2019 Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 4 Financing cash flows from finance leases $ 4 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 1 Finance leases $ 4 The following table provides lease terms and discount rates related to leases at June 30, 2019 : June 30, 2019 Weighted average remaining lease term (years): Operating leases 3.2 Finance leases 2.8 Weighted average discount rate (a): Operating leases 4.9 % Finance leases 4.4 % (a) The Company uses the rate implicit in the contract, if readily determinable, or its incremental borrowing rate at the commencement date as the discount rate in determining the present value of the lease payments. The following table provides maturities of lease liabilities at June 30, 2019 : (in millions) Operating Leases Finance Leases Remaining 2019 $ 4 $ 3 2020 8 6 2021 7 5 2022 1 2 2023  1 Thereafter 1  Total lease payments 21 17 Less: interest (2 ) (1 ) Present value of lease liabilities $ 19 $ 16 As discussed in Note 2 , the Company elected a transition method to recognize the effects of applying the new standard as a cumulative-effect adjustment to the opening balance of retained earnings. Per ASU 2016-02, an entity electing this transition method should provide the required disclosures under Topic 840 for all periods that continue to be in accordance with Topic 840. As such, the Company included the future minimum lease commitments table below as of December 31, 2018 . In addition, lease payments associated with these operating leases were $3 million and $6 million for the three and six months ended June 30, 2018 , respectively. Future minimum lease commitments under non-cancellable leases at December 31, 2018 were as follows: (in millions) 2019 $ 14 2020 12 2021 10 2022 3 2023  Thereafter 1 Total $ 40