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Revenue from Contracts with Customers
 6 Months Ended
Jun. 30, 2024
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 divided into two key geographic segments: the United States (U.S.) and Canada. Additionally, revenue from sales to customers is generated from three primary revenue streams: crude oil and condensate, natural gas liquids (NGL), 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 (NCI) in MP Gulf of Mexico, LLC (MP GOM) as prescribed by GAAP.
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.
The Company’s revenues and other income for the three-month and six-month periods ended June 30, 2024 and 2023 were as follows.
Three Months Ended
June 30,		Six Months Ended
June 30,
(Thousands of dollars)2024202320242023
Net crude oil and condensate revenue
United States - Onshore
$145,955 $177,085 $288,498 $307,166 
United States - Offshore 1
501,692 480,841 982,131 981,151 
Canada - Onshore
19,580 19,306 33,453 41,258 
Canada - Offshore
43,326 24,871 98,101 41,001 
Other4,307 – 4,209 3,644 
Total crude oil and condensate revenue714,860 702,103 1,406,392 1,374,220 
Net natural gas liquids revenue
United States - Onshore
7,311 6,540 15,147 14,810 
United States - Offshore 1
9,337 11,541 19,711 26,170 
Canada - Onshore
1,595 1,517 3,032 4,980 
Total natural gas liquids revenue18,243 19,598 37,890 45,960 
Net natural gas revenue
United States - Onshore
3,352 4,138 7,628 9,588 
United States - Offshore 1
10,500 14,802 23,389 36,934 
Canada - Onshore
50,555 59,195 116,814 129,365 
Total natural gas revenue64,407 78,135 147,831 175,887 
Revenue from production797,510 799,836 1,592,113 1,596,067 
Sales of purchased natural gas
Canada - Onshore
3,497 13,014 3,742 56,751 
Total sales of purchased natural gas3,497 13,014 3,742 56,751 
Total revenue from sales to customers801,007 812,850 1,595,855 1,652,818 
Gain on sale of assets and other income1,764 1,738 3,328 3,486 
Total revenues and other income$802,771 $814,588 $1,599,183 $1,656,304 
1 Includes revenue attributable to noncontrolling interest in MP GOM.
Contract Balances and Asset Recognition
As of June 30, 2024, and December 31, 2023, receivables from contracts with customers, net of royalties and associated payables, on the balance sheet from continuing operations, were $233.2 million and $193.7 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, 2024.
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, 2024, the Company had the following sales contracts in place which are expected to generate revenue from sales to customers for a period over 12 months starting at the inception of the contract:
Long-Term Contracts Outstanding at June 30, 2024
LocationCommodityEnd DateDescriptionApproximate Volumes
U.S.Natural Gas and NGLQ1 2030Deliveries from dedicated acreage in Eagle FordAs produced
CanadaNatural GasQ4 2024Contracts to sell natural gas at USD index pricing31 MMCFD
CanadaNatural GasQ4 2024Contracts to sell natural gas at CAD fixed pricing124 MMCFD
CanadaNatural GasQ4 2024Contracts to sell natural gas at USD fixed pricing25 MMCFD
CanadaNatural GasQ4 2024Contracts to sell natural gas at CAD index pricing28 MMCFD
CanadaNatural GasQ4 2025Contracts to sell natural gas at USD index pricing25 MMCFD
CanadaNatural GasQ4 2026Contracts to sell natural gas at USD index pricing49 MMCFD
CanadaNatural GasQ4 2027Contracts to sell natural gas at USD index pricing30 MMCFD
CanadaNatural GasQ4 2028Contracts to sell natural gas at USD index pricing10 MMCFD
CanadaNGLQ2 2025Contracts to sell NGL at CAD index pricingAs produced
Fixed price contracts are accounted for as normal sales and purchases for accounting purposes.