SIGNIFICANT CONCENTRATIONS

12 Months Ended

Dec. 31, 2019

During most of the first quarter of 2019 and throughout 2018, ARM Energy Management, LLC (“ARM”) marketed our oil, gas and NGLs for a marketing fee that was deducted from sales proceeds collected by ARM from purchasers. The sales were generally made under short-term contracts with month-to-month pricing based on published regional indices, adjusted for transportation, location and quality. In March 2019, in preparation for handling oil and NGL marketing responsibilities internally, we began receiving payments for the sale of oil and NGLs directly from purchasers and separately paying the marketing fee owed to ARM. In June 2019, we terminated our oil and NGL marketing agreement with ARM and began marketing such products internally.



	Successor				Predecessor
(in thousands)	Year Ended December 31, 2019		February 9, 2018 Through December 31, 2018		January 1, 2018 Through February 8, 2018
Revenue marketed by ARM on our behalf	$	123,000	$	336,248	$	28,757

Marketing and management fees paid to ARM	$	1,715	$	—	$	—
Fees paid to ARM for services relating to our derivatives	496		784		66
Total fees paid to ARM	$	2,211	$	784	$	66

Receivables from ARM for sales on our behalf were $6.8 million and $43.8 million as of December 31, 2019 and December 31, 2018, respectively, which are reflected in accounts receivable on our balance sheets.

For the year ended December 31, 2019, one customer accounted for 40.5% of our total operating revenue for the period.

We believe that the loss of any of our customers, or of our marketing agent ARM, would not have a material adverse effect on us because alternative purchasers are readily available.