Revenue Recognition

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

Disaggregation of revenues

The following table presents revenues associated with contracts with customers for the periods presented:


	Three Months Ended March 31,
	2020		2019⁽¹⁾

	(In thousands)
Service revenues
Crude oil and natural gas revenues	$	53,977	$	48,617
Produced and flowback water revenues	31,862		29,572
Total service revenues	85,839		78,189
Product revenues
Natural gas and NGL revenues	14,436		10,218
Freshwater revenues	6,352		5,445
Total product revenues	20,788		15,663
Total revenues	$	106,627	$	93,852

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(1)Retrospectively adjusted for the transfer of net assets between entities under common control.

Prior period performance obligations

The Partnership records revenue when the performance obligations under the terms of its customer contracts are satisfied. The Partnership 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 Partnership 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. Such differences have historically not been significant. For the three months ended March 31, 2020 and 2019, revenue recognized related to performance obligations satisfied in prior reporting periods was not material.

Contract balances

Contract balances are the result of timing differences between revenue recognition, billings and cash collections. Contract liabilities are recorded for consideration received from customers primarily related to (i) temporary deficiency quantities under minimum volume commitments which are recognized as revenue when the customer makes up the volumes or the deficiency makeup period expires and (ii) aid in construction payments received from customers which are recognized as revenue over the expected period of future benefit. The Partnership does not recognize contract assets or contract liabilities under its customer contracts for which invoicing occurs once the Partnership’s performance obligations have been satisfied and payment is unconditional. Contract liabilities are classified as current or long-term based on the timing of when the Partnership expects to recognize revenue.

The following table summarizes the changes in contract liabilities for the three months ended March 31, 2020:


	(In thousands)
Balance at December 31, 2019	$	3,681
Cash received	—
Revenue recognized	(147)
Balance at March 31, 2020	$	3,534

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 March 31, 2020:


	(In thousands)
2020 (excluding three months ended March 31, 2020)	$	12,403
2021	18,580
2022	18,301
2023	12,624
2024	11,874
Thereafter	2,768
Total	$	76,550

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 Partnership 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.