XML 35 R24.htm IDEA: XBRL DOCUMENT v3.21.2
Business Segment Information
 6 Months Ended
Jun. 30, 2021
Segment Reporting [Abstract]  
Business Segment Information Business Segment Information
The Company has two reportable segments: E&P and midstream. The Company’s E&P business segment is engaged in the acquisition and development of oil and gas properties. Revenues for the E&P business segment are primarily derived from the sale of crude oil and natural gas production.
The Company’s midstream business segment performs midstream services including: (i) natural gas gathering, compression, processing, gas lift supply; (ii) crude oil gathering, terminaling and transportation; (iii) produced and flowback water gathering and disposal; and (iv) freshwater supply and distribution. Revenues for the midstream segment are derived from performing
these services for the Company’s E&P segment, as well as third-party producers. The revenues and expenses related to services provided by the midstream segment for the Company’s ownership interests are eliminated in consolidation, and only the revenues and expenses related to non-affiliated interest owners and third-party customers are included in the Company’s Condensed Consolidated Statements of Operations.
The Company’s corporate activities have been allocated to the supported business segments accordingly. Management evaluates the performance of the Company’s business segments based on operating income (loss), which is defined as segment operating revenues less operating expenses, including depreciation, depletion and amortization.
The following table summarizes financial information for the Company’s two business segments for the periods presented:
E&PMidstreamEliminationsConsolidated
 (In thousands)
Successor
Three months ended June 30, 2021:
Revenues from non-affiliates$328,987 $64,073 $— $393,060 
Inter-segment revenues— 42,090 (42,090)— 
Total revenues328,987 106,163 (42,090)393,060 
Operating income (loss)337,188 39,990 (1,605)375,573 
Total other income (expense), net(279,602)(11,008)— (290,610)
Income (loss) before income taxes including non-controlling interests$57,586 $28,982 $(1,605)$84,963 
Lease operating expenses$50,436 $— $(16,115)$34,321 
Gathering, processing and transportation expenses32,787 — (12,302)20,485 
General and administrative expenses(1)
15,707 8,175 (3,672)20,210 
Equity-based compensation expenses4,686 16 — 4,702 
 
Predecessor
Three months ended June 30, 2020:
Revenues from non-affiliates$121,826 $44,526 $— $166,352 
Inter-segment revenues— 37,195 (37,195)— 
Total revenues121,826 81,721 (37,195)166,352 
Operating income (loss)(40,901)30,620 (943)(11,224)
Total other income (expense), net(75,465)(5,273)— (80,738)
Income (loss) before income taxes including non-controlling interests$(116,366)$25,347 $(943)$(91,962)
Lease operating expenses$37,864 $— $(8,256)$29,608 
Gathering, processing and transportation expenses31,180 — (7,415)23,765 
General and administrative expenses(1)
32,290 9,304 (4,151)37,443 
Equity-based compensation expenses4,811 203 (124)4,890 
 
Successor
Six months ended June 30, 2021:
Revenues from non-affiliates$611,685 $136,834 $— $748,519 
Inter-segment revenues— 83,446 (83,446)— 
Total revenues611,685 220,280 (83,446)748,519 
Operating income (loss)440,368 88,657 (2,617)526,408 
Total other income (expense), net(465,498)(14,866)— (480,364)
Income (loss) before income taxes including non-controlling interests$(25,130)$73,791 $(2,617)$46,044 
Lease operating expenses$101,500 $— $(31,919)$69,581 
Gathering, processing and transportation expenses60,892 — (24,696)36,196 
General and administrative expenses(1)
31,382 16,735 (7,170)40,947 
Equity-based compensation expenses6,374 526 — 6,900 
Predecessor
Six months ended June 30, 2020:
Revenues from non-affiliates$453,213 $100,937 $— $554,150 
Inter-segment revenues— 105,739 (105,739)— 
Total revenues453,213 206,676 (105,739)554,150 
Operating loss(4,858,156)(11,606)(3,990)(4,873,752)
Total other income (expense), net228,533 (35,756)— 192,777 
Loss before income taxes including non-controlling interests$(4,629,623)$(47,362)$(3,990)$(4,680,975)
Lease operating expenses$103,677 $— $(24,300)$79,377 
Gathering, processing and transportation expenses73,894 — (20,665)53,229 
General and administrative expenses(1)
58,963 17,906 (8,252)68,617 
Equity-based compensation expenses11,407 631 (341)11,697 
Successor
At June 30, 2021:
Property, plant and equipment, net$670,699 $886,116 $(2,130)$1,554,685 
Total assets
1,894,614 1,044,232 (2,130)2,936,716 
At December 31, 2020:
Property, plant and equipment, net$837,020 $892,043 $(276)$1,728,787 
Total assets
1,093,253 1,066,060 (276)2,159,037 
___________________
(1)Includes equity-based compensation expenses.