XML 52 R7.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Revenue Recognition | 9 Months Ended
--- | ---
Sep. 30, 2018
Revenue from Contract with Customer [Abstract] |
Revenue Recognition | 2. REVENUE RECOGNITION The Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) and the series of related accounting standard updates that followed, on January 1, 2018, using the modified retrospective method of adoption. Adoption of the ASU did not require an adjustment to the opening balance of equity and did not change the Company’s amount and timing of revenues. The Company reports revenues utilizing information provided by the operator of the property following the same guidance. Adoption of this guidance applied to all contracts at the date of initial application and all contracts reflect the non-operated nature of the Company’s existing operations. The Company’s revenues are primarily derived from its interests in the sale of oil and natural gas production. The Company recognizes revenue from its interests in the sales of oil and natural gas in the period that its performance obligations are satisfied. Performance obligations are satisfied when the customer obtains control of product (as disclosed below), when the Company has no further obligations to perform related to the sale, when the transaction price has been determined and when collectability is probable. The sales of oil and natural gas are made under contracts which the third-party operators of the wells have negotiated with customers, which typically include variable consideration that is based on pricing tied to local indices and volumes delivered in the current month. The Company receives payment from the sale of oil and natural gas production from one to three months after delivery. At the end of each month when the performance obligation is satisfied, the variable consideration can be reasonably estimated and amounts due from customers are accrued in oil and gas sales receivable, net in the consolidated balance sheets. Variances between the Company’s estimated revenue and actual payments are recorded in the month the payment is received, however, differences have been and are insignificant. Accordingly, the variable consideration is not constrained. The Company does not disclose the value of unsatisfied performance obligations as it applies the practical exemption in accordance with ASC 606 since the Company contracts are month to month and not in excess of one year. The exemption, as described in ASC 606-10-50-14(a), applies to variable consideration that is recognized as control of the product is transferred to the customer. Since each unit of product represents a separate performance obligation, future volumes are wholly unsatisfied, and disclosure of the transaction price allocated to remaining performance obligations is not required. The Company’s oil is typically sold at delivery points under contract terms that are common in our industry. The Company’s natural gas produced is delivered by the well operators to various purchasers at agreed upon delivery points under a limited number of contract types that are also common in our industry. However, under these contracts, the natural gas may be sold to a single purchaser or may be sold to separate purchasers. Regardless of the contract type, the terms of these contracts compensate the well operators for the value of the oil and natural gas at specified prices, and then the well operators will remit payment to the Company for its share in the value of the oil and natural gas sold. There were no contract liabilities at the date of adoption or for the nine months ended September 30, 2018.
| -8- |
The following table presents our disaggregated revenue by major source and geographic area for the three and nine months ended September 30, 2018 and 2017 (in thousands):
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
Revenue: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
North Dakota |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Oil |  | $ | 795 |  |  | $ | 1,091 |  |  | $ | 2,384 |  |  | $ | 3,350 |
Natural gas and liquids |  |  | 65 |  |  |  | 111 |  |  |  | 240 |  |  |  | 290 |
Total |  |  | 860 |  |  |  | 1,202 |  |  |  | 2,624 |  |  |  | 3,640 |
Texas |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Oil |  |  | 325 |  |  |  | 220 |  |  |  | 1,258 |  |  |  | 791 |
Natural gas and liquids |  |  | 39 |  |  |  | 99 |  |  |  | 168 |  |  |  | 366 |
Total |  |  | 364 |  |  |  | 319 |  |  |  | 1,426 |  |  |  | 1,157 |
Louisiana |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Oil |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Natural gas and liquids (1) |  |  | (2 | ) |  |  | 17 |  |  |  | 300 |  |  |  | 479 |
Total |  |  | (2 | ) |  |  | 17 |  |  |  | 300 |  |  |  | 479 |
Combined Total |  | $ | 1,222 |  |  | $ | 1,538 |  |  | $ | 4,350 |  |  | $ | 5,276 |
| (1) | Negative production attributable to a combination of an over-accrual in June 2018, which was reversed in July 2018 and maintenance-related downtime on a specific well in Louisiana.

X
- References No definition available. + Details
Name: | us-gaap_RevenueFromContractWithCustomerAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 + Details
Name: | us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration