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Revenue Recognition | 9 Months Ended
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Sep. 30, 2021
Revenue from Contract with Customer [Abstract] |
Revenue Recognition | Revenue Recognition Exploration and Production Revenues E&P revenues from contracts with customers for crude oil, natural gas and NGL sales and other services were as follows for the periods presented (in thousands):
| Successor |  |  | Predecessor |  | Successor |  |  | Predecessor
| Three Months Ended September 30, 2021 |  |  | Three Months Ended September 30, 2020 |  | Nine Months Ended September 30, 2021 |  |  | Nine Months Ended September 30, 2020
Crude oil revenues | $ | 205,731 |  |  |  | $ | 155,052 |  |  | $ | 598,278 |  |  |  | $ | 448,904 |
Purchased crude oil sales | 53,562 |  |  |  | 35,442 |  |  | 163,785 |  |  |  | 144,719 |
Natural gas revenues | 75,905 |  |  |  | 24,525 |  |  | 184,046 |  |  |  | 63,631 |
Purchased natural gas sales | 8 |  |  |  | 308 |  |  | 362 |  |  |  | 4,909 |
Other services revenues | 121 |  |  |  | 309 |  |  | 542 |  |  |  | 6,686 |
Total E&P revenues | $ | 335,327 |  |  |  | $ | 215,636 |  |  | $ | 947,013 |  |  |  | $ | 668,849 |
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. Revenues derived from contracts with customers for midstream revenues were as follows for the periods presented (in thousands):
| Successor |  |  | Predecessor |  | Successor |  |  | Predecessor
| Three Months Ended September 30, 2021 |  |  | Three Months Ended September 30, 2020 |  | Nine Months Ended September 30, 2021 |  |  | Nine Months Ended September 30, 2020
Midstream service revenues |  |  |  |  |  |  |  |  |
Crude oil, natural gas and NGL revenues | $ | 22,111 |  |  |  | $ | 22,682 |  |  | $ | 65,225 |  |  |  | $ | 72,267 |
Produced and flowback water revenues | 10,312 |  |  |  | 8,801 |  |  | 25,230 |  |  |  | 27,300 |
Total midstream service revenues | 32,423 |  |  |  | 31,483 |  |  | 90,455 |  |  |  | 99,567 |
Midstream product revenues |  |  |  |  |  |  |  |  |
Purchased crude oil sales(1) | — |  |  |  | 8,444 |  |  | $ | 19,738 |  |  |  | $ | 18,196 |
Crude oil, natural gas and NGL revenues | 33,845 |  |  |  | 15,100 |  |  | 91,671 |  |  |  | 35,707 |
Freshwater revenues | 444 |  |  |  | 396 |  |  | 1,681 |  |  |  | 2,890 |
Total midstream product revenues | 34,289 |  |  |  | 23,940 |  |  | 113,090 |  |  |  | 56,793 |
Total midstream revenues | $ | 66,712 |  |  |  | $ | 55,423 |  |  | $ | 203,545 |  |  |  | $ | 156,360 |
___________________ (1) Reported under purchased oil and gas sales on the Condensed Consolidated Statements of Operations. 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. 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 when the Company expects to receive cash for contract assets or recognize revenue for contract liabilities. Contract liabilities are included in other current liabilities and other liabilities on the Company’s Condensed Consolidated Balance Sheets. There were no material contract asset balances at September 30, 2021 or December 31, 2020. The following table summarizes the changes in the Company’s contract liabilities for the nine months ended September 30, 2021:
| (In thousands)
Balance as of December 31, 2020 (Successor) | $ | 3,966 |
Cash received | 3,231 |
Revenues recognized | (276) |
Balance as of September 30, 2021 (Successor) | $ | 6,921 |
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, 2021 and 2020, 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, 2021 (Successor):
| (In thousands)
2021 (excluding the nine months ended September 30, 2021) | $ | 3,709 |
2022 | 17,175 |
2023 | 10,896 |
2024 | 11,089 |
2025 | 2,768 |
Total | $ | 45,637 |
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.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 + Details
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