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SEGMENT INFORMATION | 6 Months Ended
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Jun. 30, 2024
Segment Reporting [Abstract] |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company operates in two business segments: (i) exploration and production and (ii) midstream. The exploration and production segment is engaged in the exploration, development, production and acquisition of oil and natural gas resources in the United States and is currently focused primarily on the oil and liquids-rich portion of the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas. The Company also operates in the Eagle Ford shale play in South Texas and the Haynesville shale and Cotton Valley plays in Northwest Louisiana. The midstream segment conducts midstream operations in support of the Company’s exploration, development and production operations and provides natural gas processing, oil transportation services, oil, natural gas and produced water gathering services and produced water disposal services to third parties. The majority of the Company’s midstream operations in the Rustler Breaks, West Texas and Stateline asset areas and the Greater Stebbins Area in the Delaware Basin are conducted through San Mateo. In addition, at June 30, 2024, the Company operated a cryogenic gas processing plant, compressor stations and natural gas gathering pipelines in Lea and Eddy Counties, New Mexico through Pronto, which is a wholly-owned subsidiary of the Company. At June 30, 2024, neither San Mateo nor Pronto was a guarantor of the 2028 Notes or the 2032 Notes. The following tables present selected financial information for the periods presented regarding the Company’s business segments on a stand-alone basis, corporate expenses that are not allocated to a segment and the consolidation and elimination entries necessary to arrive at the financial information for the Company on a consolidated basis (in thousands). On a consolidated basis, midstream services revenues consist primarily of those revenues from midstream operations related to third parties, including working interest owners in the Company’s operated wells. All midstream services revenues associated with Company-owned production are eliminated in consolidation. In evaluating the operating results of the exploration and production and midstream segments, the Company does not allocate certain expenses to the individual segments, including general and administrative expenses. Such expenses are reflected in the column labeled “Corporate.”
| Exploration and Production |  |  |  |  |  | Consolidations and Eliminations |  | Consolidated Company
|  | Midstream |  | Corporate |  |
Three Months Ended June 30, 2024 |  |  |  |  |  |  |  |  |
Oil and natural gas revenues | $ | 772,267 |  |  | $ | 4,012 |  |  | $ | — |  |  | $ | — |  |  | $ | 776,279 |
Midstream services revenues | — |  |  | 104,345 |  |  | — |  |  | (71,694) |  |  | 32,651 |
Sales of purchased natural gas | 5,121 |  |  | 41,144 |  |  | — |  |  | — |  |  | 46,265 |
Realized gain on derivatives | 3,770 |  |  | — |  |  | — |  |  | — |  |  | 3,770 |
Unrealized loss on derivatives | (11,829) |  |  | — |  |  | — |  |  | — |  |  | (11,829) |
Expenses(1) | 436,960 |  |  | 93,618 |  |  | 24,632 |  |  | (71,694) |  |  | 483,516 |
Operating income(2) | $ | 332,369 |  |  | $ | 55,883 |  |  | $ | (24,632) |  |  | $ | — |  |  | $ | 363,620 |
Total assets | $ | 7,102,714 |  |  | $ | 1,369,461 |  |  | $ | 46,216 |  |  | $ | — |  |  | $ | 8,518,391 |
Capital expenditures(3) | $ | 471,863 |  |  | $ | 51,525 |  |  | $ | 545 |  |  | $ | — |  |  | $ | 523,933 |
_____________________ (1)Includes depletion, depreciation and amortization expenses of $214.7 million and $10.9 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $0.3 million. (2)Includes $18.7 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment. (3)Includes $157.3 million attributable to land and seismic acquisition expenditures related to the exploration and production segment and $6.3 million in capital expenditures attributable to non-controlling interest in subsidiaries related to the midstream segment.
| Exploration and Production |  |  |  |  |  | Consolidations and Eliminations |  | Consolidated Company
|  | Midstream |  | Corporate |  |
Three Months Ended June 30, 2023 |  |  |  |  |  |  |  |  |
Oil and natural gas revenues | $ | 586,732 |  |  | $ | 1,185 |  |  | $ | — |  |  | $ | — |  |  | $ | 587,917 |
Midstream services revenues | — |  |  | 79,214 |  |  | — |  |  | (49,139) |  |  | 30,075 |
Sales of purchased natural gas | 5,544 |  |  | 26,354 |  |  | — |  |  | — |  |  | 31,898 |
Realized loss on derivatives | (3,148) |  |  | — |  |  | — |  |  | — |  |  | (3,148) |
Unrealized loss on derivatives | (8,659) |  |  | — |  |  | — |  |  | — |  |  | (8,659) |
Expenses(1) | 341,513 |  |  | 70,122 |  |  | 23,319 |  |  | (49,139) |  |  | 385,815 |
Operating income(2) | $ | 238,956 |  |  | $ | 36,631 |  |  | $ | (23,319) |  |  | $ | — |  |  | $ | 252,268 |
Total assets | $ | 5,998,037 |  |  | $ | 1,088,627 |  |  | $ | 45,674 |  |  | $ | — |  |  | $ | 7,132,338 |
Capital expenditures(3) | $ | 1,897,679 |  |  | $ | 82,129 |  |  | $ | 709 |  |  | $ | — |  |  | $ | 1,980,517 |
_____________________ (1)Includes depletion, depreciation and amortization expenses of $167.4 million and $9.8 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $0.3 million. (2)Includes $12.4 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment. (3)Includes $1.59 billion attributable to land and seismic acquisition expenditures related to the exploration and production segment, $63.6 million attributable to midstream acquisition expenditures and $6.8 million in capital expenditures attributable to non-controlling interest in subsidiaries related to the midstream segment.
| Exploration and Production |  |  |  |  |  | Consolidations and Eliminations |  | Consolidated Company
|  | Midstream |  | Corporate |  |
Six Months Ended June 30, 2024 |  |  |  |  |  |  |  |  |
Oil and natural gas revenues | $ | 1,473,692 |  |  | $ | 6,706 |  |  | $ | — |  |  | $ | (579) |  |  | $ | 1,479,819 |
Midstream services revenues | — |  |  | 204,191 |  |  | — |  |  | (139,183) |  |  | 65,008 |
Sales of purchased natural gas | 10,199 |  |  | 85,512 |  |  | — |  |  | — |  |  | 95,711 |
Realized gain on derivatives | 4,045 |  |  | — |  |  | — |  |  | — |  |  | 4,045 |
Unrealized loss on derivatives | (9,754) |  |  | — |  |  | — |  |  | — |  |  | (9,754) |
Expenses(1) | 853,458 |  |  | 187,756 |  |  | 50,804 |  |  | (139,762) |  |  | 952,256 |
Operating income(2) | $ | 624,724 |  |  | $ | 108,653 |  |  | $ | (50,804) |  |  | $ | — |  |  | $ | 682,573 |
Total assets | $ | 7,102,714 |  |  | $ | 1,369,461 |  |  | $ | 46,216 |  |  | $ | — |  |  | $ | 8,518,391 |
Capital expenditures(3) | $ | 1,023,783 |  |  | $ | 137,937 |  |  | $ | 771 |  |  | $ | — |  |  | $ | 1,162,491 |
_____________________ (1)Includes depletion, depreciation and amortization expenses of $415.9 million and $21.7 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $0.6 million. (2)Includes $38.2 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment. (3)Includes $358.6 million attributable to land and seismic acquisition expenditures related to the exploration and production segment and $13.4 million in capital expenditures attributable to non-controlling interest in subsidiaries related to the midstream segment.
| Exploration and Production |  |  |  |  |  | Consolidations and Eliminations |  | Consolidated Company
|  | Midstream |  | Corporate |  |
Six Months Ended June 30, 2023 |  |  |  |  |  |  |  |  |
Oil and natural gas revenues | $ | 1,088,080 |  |  | $ | 2,746 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,090,826 |
Midstream services revenues | — |  |  | 154,465 |  |  | — |  |  | (97,879) |  |  | 56,586 |
Sales of purchased natural gas | 11,374 |  |  | 54,778 |  |  | — |  |  | — |  |  | 66,152 |
Realized gain on derivatives | 521 |  |  | — |  |  | — |  |  | — |  |  | 521 |
Unrealized loss on derivatives | (15,726) |  |  | — |  |  | — |  |  | — |  |  | (15,726) |
Expenses(1) | 609,093 |  |  | 139,971 |  |  | 43,473 |  |  | (97,879) |  |  | 694,658 |
Operating income(2) | $ | 475,156 |  |  | $ | 72,018 |  |  | $ | (43,473) |  |  | $ | — |  |  | $ | 503,701 |
Total assets | $ | 5,998,037 |  |  | $ | 1,088,627 |  |  | $ | 45,674 |  |  | $ | — |  |  | $ | 7,132,338 |
Capital expenditures(3) | $ | 2,216,184 |  |  | $ | 95,409 |  |  | $ | 2,478 |  |  | $ | — |  |  | $ | 2,314,071 |
_____________________ (1)Includes depletion, depreciation and amortization expenses of $284.0 million and $19.2 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $0.7 million. (2)Includes $28.2 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment. (3)Includes $1.61 billion attributable to land and seismic acquisition expenditures related to the exploration and production segment, $63.6 million attributable to midstream acquisition expenditures and $11.3 million in capital expenditures attributable to non-controlling interest in subsidiaries related to the midstream segment.

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