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Revenue Recognition
 9 Months Ended
Sep. 30, 2020
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
Exploration and Production Revenues
Exploration and production revenues from contracts with customers for crude oil, natural gas and NGL sales and other services were as follows for the periods presented:
 Three Months Ended September 30,Nine Months Ended September 30,
 2020201920202019
 (In thousands)
Crude oil revenues$155,052 $318,564 $448,904 $964,662 
Purchased crude oil sales35,442 77,018 144,719 330,594 
Natural gas and NGL revenues24,525 25,906 63,631 105,594 
Purchased natural gas sales308 2,334 4,909 6,590 
Other services revenues309 8,898 6,686 30,795 
Total exploration and production revenues$215,636 $432,720 $668,849 $1,438,235 
Midstream Revenues
Midstream revenues are derived from contracts with customers for midstream services under fee-based arrangements and midstream product sales from purchase arrangements. The Company’s midstream revenues exclude intercompany revenues for goods and services provided by the midstream business segment for the Company’s ownership interests, which are eliminated in consolidation.
Midstream revenues were as follows for the periods presented:
 Three Months Ended September 30,Nine Months Ended September 30,
 2020201920202019
 (In thousands)
Midstream service revenues
Crude oil, natural gas and NGL revenues$22,682 $21,653 $72,267 $69,189 
Produced and flowback water revenues8,801 10,803 27,300 29,309 
Total midstream service revenues$31,483 $32,456 $99,567 $98,498 
Midstream product revenues
Purchased crude oil sales$8,444 $— $18,196 $28 
Crude oil, natural gas and NGL revenues15,100 16,424 35,707 46,541 
Freshwater revenues396 1,143 2,890 4,578 
Total midstream product revenues$23,940 $17,567 $56,793 $51,147 
Total midstream revenues$55,423 $50,023 $156,360 $149,645 
Contract Balances
Contract balances are the result of timing differences between revenue recognition, billings and cash collections. Contract assets relate to revenue recognized for accrued deficiency fees associated with minimum volume commitments where the Company believes it is probable there will be a shortfall payment and that a significant reversal of revenue recognized will not occur once the related performance period is completed and the customer is billed. Revenue recognized for accrued deficiency fees associated with minimum volume commitments is included in midstream revenues on the Company’s Condensed Consolidated Statements of Operations. Contract liabilities relate to 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. Contract balances are classified as current or long-term based on the timing of when the Company expects to receive cash for contract assets or recognize revenue for contract liabilities. Contract assets are included in other current assets on the Company’s Condensed Consolidated Balance Sheets, and contract liabilities are included in other current liabilities and other liabilities on the Company’s Condensed Consolidated Balance Sheets.
The following table summarizes the changes in the Company’s contract assets for the nine months ended September 30, 2020:
(In thousands)
Balance as of December 31, 2019
$— 
Revenues recognized1,538 
Balance as of September 30, 2020
$1,538 
The following table summarizes the changes in the Company’s contract liabilities for the nine months ended September 30, 2020:
(In thousands)
Balance as of December 31, 2019
$2,105 
Cash received1,780 
Revenues recognized(345)
Balance as of September 30, 2020
$3,540 
Performance Obligations
The Company records revenue when the performance obligations under the terms of its customer contracts are satisfied. For sales of commodities, the Company records revenue in the month the production or purchased product is delivered to the purchaser. However, settlement statements and payments are typically not received for 20 to 60 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 uses knowledge of its properties, its properties’ historical performance, spot market prices and other factors as the basis for these estimates. The Company records the differences between estimates and the actual amounts received for product sales once payment is received from the purchaser. For midstream services, the Company measures the satisfaction of its performance obligations using the output method based
upon the volume of crude oil, natural gas or water that flows through its systems. In certain cases, the Company is required to estimate these volumes during a reporting period and record any differences between the estimated volumes and actual volumes in the following reporting period. Differences between estimated and actual revenues have historically not been significant. For the three and nine months ended September 30, 2020 and 2019, revenue recognized related to performance obligations satisfied in prior reporting periods was not material.
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, 2020:
(In thousands)
2020 (excluding the nine months ended September 30, 2020)$6,067 
202116,921 
202217,175 
202310,896 
202411,089 
Thereafter2,768 
Total$64,916 
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 Accounting Standards Codification 606, Revenue from Contracts with Customers, 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 and (ii) contracts with an original expected duration of one year or less.