Significant Accounting Polices (Tables)

3 Months Ended

Mar. 31, 2018

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

Based on our review of our performance obligations in our contracts with customers, we changed the consolidated statement of operations classification for certain transactions from revenue to cost of sales or from cost of sales to revenue. For the three months ended March 31, 2018, the reclassification of revenues and cost of sales resulted in a net decrease in revenue of approximately $138 million, or 7%, compared to total revenues based on accounting prior to the adoption of ASC 606, with an equivalent net decrease in cost of sales. The change in total revenues as a result of the adoption of ASC 606 is made up of the following revenue line item changes (in millions):



	Increase (Decrease) in Revenue Due to ASC 606 Adoption
Product sales	$	(32	)
Product sales—related parties	(22		)
Midstream services	(77		)
Midstream services—related parties	(7		)
Total	$	(138	)

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction

The following table summarizes the expected gross operating margin (in millions), resulting from either revenue or reductions to cost of sales, from MVC and firm transportation contractual provisions. All amounts in the table below reflect the contractually-stated MVC or firm transportation volumes specified for each period multiplied by the relevant deficiency or reservation fee. Actual amounts could differ due to the timing of revenue recognition or reductions to cost of sales resulting from make-up right provisions included in our agreements, as well as due to nonpayment or nonperformance by our customers. In addition, amounts in the table below do not represent the shortfall amounts we expect to collect under our MVC contracts as we generally do not expect volume shortfalls to equal the full amount of the contractual MVCs during these periods.



2018 (remaining)	$	616.4
2019	254.3
2020	241.1
2021	98.4
2022	89.5
Thereafter	228.2
Total	$	1,527.9