Revenues

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

Revenues

Below is a discussion of the nature, timing, and presentation of revenues arising from the Company's major revenue-generating arrangements.

Operated crude oil revenues – The Company pays third parties to transport the majority of its operated crude oil production from lease locations to downstream market centers, at which time the Company's customers take title and custody of the product in exchange for prices based on the particular market where the product was delivered. Operated crude oil revenues are recognized during the month in which control transfers to the customer and it is probable the Company will collect the consideration it is entitled to receive. Crude oil sales proceeds from operated properties are generally received by the Company within one month after the month in which a sale has occurred. Operated crude oil revenues are presented separately from transportation expenses as the Company controls the operated production prior to its transfer to customers. Transportation expenses associated with the Company's operated crude oil production totaled $67.8 million and $45.2 million for the three months ended September 30, 2022 and 2021, respectively, and $188.4 million and $129.2 million for the nine months ended September 30, 2022 and 2021, respectively.

Operated natural gas and natural gas liquids revenues – The Company sells a substantial majority of its operated natural gas production to midstream customers at its lease locations based on market prices in the field where the sales occur. Under these arrangements, the midstream customers obtain control of the unprocessed gas stream inclusive of natural gas liquids ("NGLs") at the lease location and the Company's revenues from each sale are determined using contractually agreed pricing formulas which contain multiple components, including the volume and Btu content of the natural gas sold, the midstream customer's proceeds from the sale of residue gas and NGLs at secondary downstream markets, and contractual pricing adjustments reflecting the midstream customer's estimated recoupment of its investment over time. Such revenues are recognized net of pricing adjustments applied by the midstream customer during the month in which control transfers to the customer at the delivery point and it is probable the Company will collect the consideration it is entitled to receive. Natural gas and NGL sales proceeds from operated properties are generally received by the Company within one month after the month in which a sale has occurred.

Under certain arrangements, the Company may elect to take a volume of processed residue gas and/or NGLs in-kind at the tailgate of the midstream customer's processing plant in lieu of a monetary settlement for the sale of the Company's operated production. When the Company elects to take volumes in kind, it takes possession of the processed products at the tailgate of the processing facility and either sells them at the tailgate or pays third parties to transport the products to downstream delivery points, where it then sells to customers at prices applicable to those downstream markets. In such situations, operated revenues are recognized during the month in which control transfers to the customer at the delivery point and it is probable the Company will collect the consideration it is entitled to receive. Operated sales proceeds are generally received by the Company within one month after the month in which a sale has occurred. In these scenarios, the Company's revenues include the pricing adjustments applied by the midstream processing entity according to the applicable contractual pricing formula, but exclude the transportation expenses the Company incurs to transport the processed products to downstream customers. Transportation expenses associated with these arrangements totaled $17.8 million and $8.7 million for the three months ended September 30, 2022 and 2021, respectively, and $48.4 million and $27.5 million for the nine months ended September 30, 2022 and 2021, respectively.

Non-operated crude oil, natural gas, and NGL revenues – The Company's proportionate share of production from non-operated properties is generally marketed at the discretion of the operators. For non-operated properties, the Company receives a net payment from the operator representing its proportionate share of sales proceeds which is net of costs incurred by the operator, if any. Such non-operated revenues are recognized at the net amount of proceeds to be received by the Company during the month in which production occurs and it is probable the Company will collect the consideration it is entitled to receive. Proceeds are generally received by the Company within two to three months after the month in which production occurs.

Revenues from derivative instruments – See Note 6. Derivative Instruments for discussion of the Company's accounting for its derivative instruments.

Revenues from service operations – Revenues from the Company's crude oil and natural gas service operations consist primarily of revenues associated with water gathering, recycling, and disposal activities and the treatment and sale of crude oil reclaimed from waste products. Revenues associated with such activities, which are derived using market-based rates or rates commensurate with industry guidelines, are recognized during the month in which services are performed, the Company has an unconditional right to receive payment, and collectability is probable. Payment is generally received by the Company within one month after the month in which services are provided.

Disaggregation of revenues

The following table presents the disaggregation of the Company's crude oil and natural gas revenues by operating area for the three and nine months ended September 30, 2022 and 2021. Sales of natural gas and NGLs are combined, as a substantial majority of the Company's natural gas sales contracts represent wellhead sales of unprocessed gas.

	Three months ended September 30, 2022						Three months ended September 30, 2021
In thousands	Crude Oil		Natural Gas and NGLs		Total		Crude Oil		Natural Gas and NGLs		Total
Bakken (1)	$	997,190	$	376,693	$	1,373,883	$	709,642	$	151,335	$	860,977
Anadarko Basin	258,267		562,896		821,163		227,239		298,309		525,548
Powder River Basin	177,129		47,892		225,021		24,081		3,705		27,786
Permian Basin	253,863		41,167		295,030		—		—		—
All other	51,965		200		52,165		41,861		9		41,870
Crude oil, natural gas, and natural gas liquids sales	$	1,738,414	$	1,028,848	$	2,767,262	$	1,002,823	$	453,358	$	1,456,181

	Nine months ended September 30, 2022						Nine months ended September 30, 2021
In thousands	Crude Oil		Natural Gas and NGLs		Total		Crude Oil		Natural Gas and NGLs		Total
Bakken (1)	$	3,031,550	$	870,168	$	3,901,718	$	1,947,883	$	337,960	$	2,285,843
Anadarko Basin	869,095		1,435,607		2,304,702		632,906		882,453		1,515,359
Powder River Basin	418,687		94,400		513,087		61,714		7,340		69,054
Permian Basin	852,778		125,850		978,628		—		—		—
All other	171,632		929		172,561		116,356		16		116,372
Crude oil, natural gas, and natural gas liquids sales	$	5,343,742	$	2,526,954	$	7,870,696	$	2,758,859	$	1,227,769	$	3,986,628

(1) Natural gas and NGL revenues for the Bakken field for the 2022 periods include $95 million of revenues recognized in the third quarter of 2022 in conjunction with the resolution of a legal matter, which pertain almost entirely to performance obligations satisfied by the Company in periods prior to 2022.