Revenue Recognition

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue Recognition

REVENUE RECOGNITION

Revenues from Contracts with Customers

Natural gas and liquids.  Natural gas, oil and NGL sales are recognized when control of the product is transferred to the customer at a designated delivery point.  The pricing provisions of the Company’s contracts are primarily tied to a market index with certain adjustments based on factors such as delivery, quality of the product and prevailing supply and demand conditions in

the geographic areas in which the Company operates.  Under the Company’s sales contracts, the delivery of each unit of natural gas, oil and NGLs represents a separate performance obligation, and revenue is recognized at the point in time when the performance obligations are fulfilled.  There is no significant financing component to the Company’s revenues as payment terms are typically within 30 to 60 days of control transfer.  Furthermore, consideration from a customer corresponds directly with the value to the customer of the Company’s performance completed to date.  As a result, the Company recognizes revenue in the amount to which the Company has a right to invoice and has not disclosed information regarding its remaining performance obligations.

The Company records revenue from its natural gas and liquids production in the amount of its net revenue interest in sales from its properties.  Accordingly, natural gas and liquid sales are not recognized for deliveries in excess of the Company’s net revenue interest, while natural gas and liquid sales are recognized for any under-delivered volumes.

Marketing.  The Company, through its marketing affiliate, generally markets natural gas, oil and NGLs for its affiliated E&P companies as well as other joint owners who choose to market with the Company.  In addition, the Company markets some products purchased from third parties.  Marketing revenues for natural gas, oil and NGL sales are recognized when control of the product is transferred to the customer at a designated delivery point.  The pricing provisions of the Company’s contracts are primarily tied to market indices with certain adjustments based on factors such as delivery, quality of the product and prevailing supply and demand conditions.  Under the Company’s marketing contracts, the delivery of each unit of natural gas, oil and NGLs represents a separate performance obligation, and revenue is recognized at the point in time when the performance obligations are fulfilled.  Customers are invoiced and revenues are recorded each month as natural gas, oil and NGLs are delivered, and payment terms are typically within 30 to 60 days of control transfer.  Furthermore, consideration from a customer corresponds directly with the value to the customer of the Company’s performance completed to date.  As a result, the Company recognizes revenue in the amount to which the Company has a right to invoice and has not disclosed information regarding its remaining performance obligations.

Disaggregation of Revenues

The Company presents a disaggregation of E&P revenues by product in the consolidated statements of operations net of intersegment revenues.  The following table reconciles operating revenues as presented on the consolidated statements of operations to the operating revenues by segment:

(in millions)	E&P		Marketing		Intersegment Revenues		Total
Year ended December 31, 2021
Gas sales	$	3,358	$	—	$	54	$	3,412
Oil sales	389		—		5		394
NGL sales	888		—		2		890
Marketing	—		6,186		(4,223)		1,963
Other (1)	5		3		—		8
Total	$	4,640	$	6,189	$	(4,162)	$	6,667
Year ended December 31, 2020
Gas sales	$	928	$	—	$	39	$	967
Oil sales	150		—		4		154
NGL sales	265		—		—		265
Marketing	—		2,145		(1,228)		917
Other (1)	5		—		—		5
Total	$	1,348	$	2,145	$	(1,185)	$	2,308
Year ended December 31, 2019
Gas sales	$	1,207	$	—	$	34	$	1,241
Oil sales	220		—		3		223
NGL sales	274		—		—		274
Marketing	—		2,849		(1,552)		1,297
Other (1)	2		1		—		3
Total	$	1,703	$	2,850	$	(1,515)	$	3,038

(1)Other E&P revenues consists primarily of gas balancing and water sales to third-party operators, and other marketing revenues consists primarily of sales of gas from storage.

Associated E&P revenues are also disaggregated for analysis on a geographic basis by the core areas in which the Company operates, which are primarily Appalachia and Haynesville.

	For the years ended December 31,
(in millions)	2021		2020		2019
Appalachia	$	3,955	$	1,348	$	1,700
Haynesville	682		—		—
Other	3		—		3
Total	$	4,640	$	1,348	$	1,703

Receivables from Contracts with Customers

The following table reconciles the Company’s receivables from contracts with customers to consolidated accounts receivable as presented on the consolidated balance sheet:

(in millions)	December 31, 2021		December 31, 2020
Receivables from contracts with customers	$	1,085	$	350
Other accounts receivable	75		18
Total accounts receivable	$	1,160	$	368

Amounts recognized against the Company’s allowance for doubtful accounts related to receivables arising from contracts with customers were immaterial for the years ended December 31, 2021 and 2020.  The Company has no contract assets or contract liabilities associated with its revenues from contracts with customers.