Revenue Recognition

9 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

Disaggregation of revenues

Revenues associated with contracts with customers for crude oil, natural gas and natural gas liquids (“NGL”) sales were as follows for the three and nine months ended September 30, 2019 and 2018:


Exploration and Production Revenues
	Three Months Ended September 30,						Nine Months Ended September 30,
	2019		2018		2019		2018

	(In thousands)
Crude oil revenues	$	318,564	$	414,082	$	964,662	$	1,103,575
Purchased crude oil sales	77,018		169,531		330,594		364,404
Natural gas and NGL revenues	25,906		40,113		105,594		115,064
Purchased natural gas sales	2,334		1,616		6,590		2,161

Total exploration and production revenues	$	423,822	$	625,342	$	1,407,440	$	1,585,204

Revenues associated with contracts with customers for midstream services under fee-based arrangements and midstream product sales from purchase arrangements were as follows for the three and nine months ended September 30, 2019 and 2018:


Midstream Revenues⁽¹⁾
	Three Months Ended September 30,						Nine Months Ended September 30,
	2019		2018		2019		2018

	(In thousands)
Midstream service revenues
Crude oil and natural gas revenues	$	21,653	$	18,188	$	69,189	$	54,124
Produced and flowback water revenues	10,803		9,985		29,309		27,919
Total midstream service revenues	$	32,456	$	28,173	$	98,498	$	82,043
Midstream product revenues
Purchased crude oil sales	$	—	$	1,838	$	28	$	2,193
Natural gas and NGL revenues	16,424		—		46,541		—
Freshwater revenues	1,143		3,014		4,578		6,408
Total midstream product revenues	$	17,567	$	4,852	$	51,147	$	8,601
Total midstream revenues	$	50,023	$	33,025	$	149,645	$	90,644

__________________

(1)Represents midstream revenues, excluding all intercompany revenues for work performed by the midstream services business segment for the Company’s ownership interests that are eliminated in consolidation and are therefore not included in consolidated midstream services revenues.

Revenues associated with contracts with customers for well services were as follows for the three and nine months ended September 30, 2019 and 2018:


Well Services Revenues⁽¹⁾
	Three Months Ended September 30,						Nine Months Ended September 30,
	2019		2018		2019		2018

	(In thousands)
Hydraulic fracturing revenues	$	8,228	$	14,985	$	28,631	$	42,801
Equipment rental revenues	670		1,277		2,164		3,543
Total well services revenues	$	8,898	$	16,262	$	30,795	$	46,344

__________________

(1)Represents well services revenues, excluding all intercompany revenues for work performed by the well services business segment for the Company’s ownership interests that are eliminated in consolidation and are therefore not included in consolidated well services revenues.

Prior period performance obligations

For sales of commodities, the Company records revenue in the month production is delivered to the purchaser. However, settlement statements and payment may not be received for 20 to 90 days after the date production is delivered, and as a result, the Company is required to estimate the amount of production that was delivered to the purchaser and the price that will be received for the sale of the product. The Company records the differences between estimates and the actual amounts received for product sales once payment is received from the purchaser. Such differences have historically not been significant. The Company uses knowledge of its properties, its properties’ historical performance, spot market prices and other factors as the basis for these estimates. For the three and nine months ended September 30, 2019 and 2018, revenue recognized related to performance obligations satisfied in prior reporting periods was not material.

Contract balances

Contract balances are the result of timing differences between revenue recognition, billings and cash collections. Contract liabilities are recorded for consideration received from customers primarily related to (i) temporary deficiency quantities under minimum volume commitments, which are recognized as revenue when the customer makes up the volumes or the deficiency makeup period expires and (ii) aid in construction payments received from customers which are recognized as revenue over the expected period of future benefit. The Company does not recognize contract assets or contract liabilities under its customer contracts for which invoicing occurs once the Company’s performance obligations have been satisfied and payment is unconditional. No material contract balances were recorded in the condensed consolidated financial statements at September 30, 2019 or December 31, 2018.

Remaining performance obligations

The following table presents estimated revenue allocated to remaining performance obligations for contracted revenues that are unsatisfied (or partially satisfied) as of September 30, 2019:


	(In thousands)
2019 (excluding the nine months ended September 30, 2019)	$	3,003
2020	20,501
2021	25,082
2022	19,259
2023	12,642
Thereafter	14,642
Total	$	95,129

The partially and wholly unsatisfied performance obligations presented in the table above are generally limited to customer contracts which have fixed pricing and fixed volume terms and conditions, which generally include customer contracts with minimum volume commitment payment obligations.

The Company has elected practical expedients, pursuant to ASC 606, to exclude from the presentation of remaining performance obligations: (i) contracts with index-based pricing or variable volume attributes in which such variable consideration is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct service that forms part of a series of distinct services; (ii) contracts with an original expected duration of one year or less; and (iii) contracts for which the Company recognizes revenue under the right to invoice practical expedient.