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Revenue from Contracts with Customers
 9 Months Ended
Sep. 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 nine-month periods ended September 30, 2024 and 2023 were as follows.
Three Months Ended
September 30,		Nine Months Ended
September 30,
(Thousands of dollars)2024202320242023
Net crude oil and condensate revenue
United States - Onshore
$161,965 $207,448 $450,463 $514,614 
United States - Offshore 1
399,940 568,721 1,382,071 1,549,872 
Canada - Onshore
20,852 20,610 54,305 61,868 
Canada - Offshore
80,226 22,272 178,327 63,273 
Other(795)3,442 3,414 7,086 
Total crude oil and condensate revenue662,188 822,493 2,068,580 2,196,713 
Net natural gas liquids revenue
United States - Onshore
8,134 9,953 23,281 24,763 
United States - Offshore 1
9,812 10,908 29,523 37,078 
Canada - Onshore
2,402 2,539 5,434 7,519 
Total natural gas liquids revenue20,348 23,400 58,238 69,360 
Net natural gas revenue
United States - Onshore
4,265 6,035 11,893 15,623 
United States - Offshore 1
12,311 18,377 35,700 55,311 
Canada - Onshore
54,057 75,584 170,871 204,949 
Total natural gas revenue70,633 99,996 218,464 275,883 
Revenue from production753,169 945,889 2,345,282 2,541,956 
Sales of purchased natural gas
Canada - Onshore
– 7,877 3,742 64,628 
Total sales of purchased natural gas– 7,877 3,742 64,628 
Total revenue from sales to customers753,169 953,766 2,349,024 2,606,584 
(Loss) on derivative instruments(1,344)– (1,344)– 
Gain on sale of assets and other income6,506 5,879 9,834 9,365 
Total revenues and other income$758,331 $959,645 $2,357,514 $2,615,949 
1 Includes revenue attributable to noncontrolling interest in MP GOM.
Contract Balances and Asset Recognition
As of September 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 $165.1 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 September 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 September 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 September 30, 2024
LocationCommodityEnd DateDescriptionApproximate Volumes
U.S.Natural Gas and NGLQ2 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 2025Contracts to sell natural gas at CAD fixed pricing40 MMCFD
CanadaNatural GasQ4 2026Contracts to sell natural gas at USD index pricing49 MMCFD
CanadaNatural GasQ4 2026Contracts to sell natural gas at CAD fixed pricing50 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.