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Revenue from Contracts with Customers
 6 Months Ended
Jun. 30, 2023
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers Note C – Revenue from Contracts with Customers
Nature of Goods and Services
The Company explores for and produces crude oil, natural gas and natural gas liquids (collectively oil and natural gas) in select basins around the globe. The Company’s revenue from sales of oil and natural gas production activities are primarily subdivided into two key geographic segments: the U.S. and Canada. Additionally, revenue from sales to customers is generated from three primary revenue streams: crude oil and condensate, natural gas liquids, and natural gas.
For operated oil and natural gas production where the non-operated working interest owner does not take in kind its proportionate interest in the produced commodity, the Company acts as an agent for the working interest owner and recognizes revenue only for its own share of the commingled production. The exception to
this is the reporting of the noncontrolling interest in MP Gulf of Mexico, LLC (MP GOM) as prescribed by ASC 810-10-45.
U.S. - In the U.S., the Company primarily produces oil and natural gas from fields in the Eagle Ford Shale area of South Texas and in the Gulf of Mexico. Revenue is generally recognized when oil and natural gas are transferred to the customer at the delivery point. Revenue recognized is largely index-based with price adjustments for floating market differentials.
Canada - In Canada, contracts include long-term floating commodity index priced and natural gas physical forward sales fixed-price contracts. For the offshore business in Canada, contracts are based on index prices and revenue is recognized at the time of vessel load, based on the volumes on the bill of lading and point of custody transfer. The Company also purchases natural gas in Canada to meet certain sales commitments.
Disaggregation of Revenue
The Company reviews performance based on two key geographical segments and between onshore and offshore sources of revenue within these geographies.
For the three-month periods ended June 30, 2023, and 2022, the Company recognized $812.9 million and $1,196.2 million, respectively, from total revenue from sales to customers, from sales of oil, natural gas liquids and natural gas.
For the six-month periods ended June 30, 2023, and 2022, the Company recognized $1,652.8 million and $2,067.6 million, respectively, from total revenue from sales to customers, from sales of oil, natural gas liquids and natural gas.
Three Months Ended
June 30,		Six Months Ended
June 30,
(Thousands of dollars)2023202220232022
Net crude oil and condensate revenue
United States
Onshore$177,085 $264,841 $307,166 $436,537 
                     Offshore480,841 612,526 981,151 1,078,147 
Canada    
Onshore19,306 40,417 41,258 77,114 
Offshore24,871 38,354 41,001 67,186 
Other
– 13,636 3,644 13,636 
Total crude oil and condensate revenue702,103 969,774 1,374,220 1,672,620 
Net natural gas liquids revenue
United States
Onshore6,540 18,062 14,810 34,747 
 
Offshore11,541 18,093 26,170 32,072 
Canada
Onshore1,517 5,001 4,980 9,868 
Total natural gas liquids revenue19,598 41,156 45,960 76,687 
Net natural gas revenue
United States
Onshore4,138 19,034 9,588 30,403 
Offshore14,802 43,567 36,934 69,768 
Canada
Onshore59,195 72,768 129,365 131,349 
Total natural gas revenue78,135 135,369 175,887 231,520 
Revenue from production799,836 1,146,299 1,596,067 1,980,827 
Sales of purchased natural gas
United States
Offshore– 181– 181 
Canada
Onshore13,014 49,758 56,751 86,604 
Total sales of purchased natural gas13,014 49,939 56,751 86,785 
Total revenue from sales to customers812,850 1,196,238 1,652,818 2,067,612 
Loss on derivative instruments– (103,068)– (423,845)
Gain on sale of assets and other income1,738 7,887 3,486 10,251 
Total revenues and other income$814,588 $1,101,057 $1,656,304 $1,654,018 
Contract Balances and Asset Recognition
As of June 30, 2023, and December 31, 2022, receivables from contracts with customers, net of royalties and associated payables, on the balance sheets from continuing operations, were $197.4 million and $201.1 million,
respectively. Payment terms for the Company’s sales vary across contracts and geographical regions, with the majority of the cash receipts required within 30 days of billing. Based on a forward-looking expected loss model in accordance with ASU 2016-13, the Company did not recognize any impairment losses on receivables or contract assets arising from customer contracts during the reporting periods.
The Company has not entered into any revenue contracts that have financing components as of June 30, 2023.
The Company does not employ sales incentive strategies such as commissions or bonuses for obtaining sales contracts. For the periods presented, the Company did not identify any assets to be recognized associated with the costs to obtain a contract with a customer.
Performance Obligations
The Company recognizes oil and natural gas revenue when it satisfies a performance obligation by transferring control over a commodity to a customer. Judgment is required to determine whether some customers simultaneously receive and consume the benefit of commodities. As a result of this assessment for the Company, each unit of measure of the specified commodity is considered to represent a distinct performance obligation that is satisfied at a point in time upon the transfer of control of the commodity.
For contracts with market or index-based pricing, which represent the majority of sales contracts, the Company has elected the allocation exception and allocates the variable consideration to each single performance obligation in the contract. As a result, there is no price allocation to unsatisfied remaining performance obligations for delivery of commodity product in subsequent periods.
The Company has entered into several long-term, fixed-price contracts in Canada. The underlying reason for entering a fixed price contract is generally unrelated to anticipated future prices or other observable data and serves a particular purpose in the Company’s long-term strategy.
As of June 30, 2023, the Company had the following sales contracts in place which are expected to generate revenue from sales to customers for a period of more than 12 months starting at the inception of the contract:
Current Long-Term Contracts Outstanding at June 30, 2023
LocationCommodityEnd DateDescriptionApproximate Volumes
U.S.Natural Gas and NGLQ1 2030Deliveries from dedicated acreage in Eagle FordAs produced
CanadaNatural GasQ4 2023Contracts to sell natural gas at USD index pricing25 MMCFD
CanadaNatural GasQ4 2023Contracts to sell natural gas at CAD fixed prices38 MMCFD
CanadaNatural GasQ4 2024Contracts to sell natural gas at USD index pricing31 MMCFD
CanadaNatural GasQ4 2024Contracts to sell natural gas at CAD fixed prices100 MMCFD
CanadaNatural GasQ4 2024Contracts to sell natural gas at CAD fixed prices34 MMCFD
CanadaNatural GasQ4 2024Contracts to sell natural gas at USD index fixed prices15 MMCFD
CanadaNatural GasQ4 2024Contracts to sell natural gas at CAD index prices28 MMCFD
CanadaNatural GasQ4 2026Contracts to sell natural gas at USD index pricing49 MMCFD
CanadaNatural GasQ4 2027Contracts to sell natural gas at CAD index prices10 MMCFD
CanadaNGLQ3 2023Contracts to sell natural gas liquids at CAD prices952 BOEPD
Fixed price contracts are accounted for as normal sales and purchases for accounting purposes.