XML 54 R26.htm IDEA: XBRL DOCUMENT v3.20.4
REVENUE RECOGNITION
 12 Months Ended
Dec. 31, 2020
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION REVENUE RECOGNITION
The following table provides disaggregated revenue from contracts with customers:
SuccessorPredecessor
November 1, 2020 - December 31, 2020January 1, 2020 - October 31, 2020Years ended December 31,
(in millions)20192018
Oil and natural gas sales
Oil$176 $874 $1,884 $2,110 
NGLs29 106 179 260 
Natural gas32 112 207 220 
237 1,092 2,270 2,590 
Electricity sales15 86 112 111 
Trading revenue38 124 286 330 
Other revenue3 14 25 32 
56 224 423 473 
Net derivative (loss) gain from commodity contracts(141)91 (59)1 
Total revenues$152 $1,407 $2,634 $3,064 
Commodity Sales Contracts

We recognize revenue from the sale of our production when delivery has occurred and control passes to the customer. Our contracts with customers are short term, typically less than a year. We consider our performance obligations to be satisfied upon transfer of control of the commodity. In certain instances, transportation and processing fees are incurred by us prior to control being transferred to customers. We record these costs as a component of other expenses, net on our consolidated statements of operations.

Our commodity sales contracts are based on index prices. We recognize revenue in the amount that we expect to receive once we are able to adequately estimate the consideration (i.e., when market prices are known). Our contracts with customers typically require payment within 30 days following invoicing.

Electricity

The electrical output of our Elk Hills power plant that is not used in our operations is sold to the wholesale power market and to a utility under a power purchase and sales agreement (PPA) through December 2023, which includes a monthly capacity payment plus a variable payment based on the quantity of power purchased each month. Revenue is recognized when obligations under the terms of a contract are satisfied; generally, this occurs upon delivery of the electricity. Revenue is measured as the amount of consideration we expect to receive based on average index or California Independent System Operator (CAISO) market pricing with payment due the month following delivery. Payments under our PPA are settled monthly. We consider our performance obligations to be satisfied upon delivery of electricity or as the contracted amount of energy is made available to the customer in the case of capacity payments.

Trading Revenue and Other

To transport our natural gas as well as third-party volumes, we have entered into firm pipeline commitments. In addition, we may from time-to-time enter into natural gas purchase and sale agreements with third parties to take advantage of market dislocations. We consider our performance obligations to be satisfied upon transfer of control of the commodity.
We report our trading revenue in total revenues and associated purchases of commodities related to our trading activities are reported in other expenses, net on our consolidated statements of operations.