Revenue Recognition (Notes)

9 Months Ended

Sep. 30, 2020

Revenue Recognition and Deferred Revenue [Abstract]

Revenue from Contract with Customer [Text Block]

REVENUE RECOGNITIONCrude oil, natural gas and NGLs revenues are recognized when we have transferred control of crude oil, natural gas or NGLs production to the purchaser. We consider the transfer of control to have occurred when the purchaser has the ability to direct the use of, and obtain substantially all of the remaining benefits from, the crude oil, natural gas or NGLs production. We record sales revenue based on an estimate of the volumes delivered at estimated prices as determined by the applicable sales agreement. We estimate our sales volumes based on company-measured volume readings. We then adjust our crude oil, natural gas and NGLs sales in subsequent periods based on the data received from our purchasers that reflects actual volumes delivered and prices received. We receive payment for sales one to two months after actual delivery has occurred. The differences in sales estimates and actual sales are recorded one to two months later. Historically, these differences have not been material.        

Disaggregated Revenue. The following table presents crude oil, natural gas and NGLs sales disaggregated by commodity and operating region for the three and nine months ended September 30, 2020 and 2019:

	Three Months Ended September 30,						Nine Months Ended September 30,
Revenue by Commodity and Operating Region	2020		2019		Percent Change		2020		2019		Percent Change
	(in thousands)
Crude oil
Wattenberg Field	$	183,420	$	185,543	(1.1)	%	$	483,608	$	569,518	(15.1)	%
Delaware Basin	42,591		70,175		(39.3)	%	107,347		191,452		(43.9)	%
Total	$	226,011	$	255,718	(11.6)	%	$	590,955	$	760,970	(22.3)	%
Natural gas
Wattenberg Field	$	39,759	$	23,949	66.0	%	$	109,279	$	100,779	8.4	%
Delaware Basin	2,140		2,613		(18.1)	%	3,183		9,293		(65.7)	%
Total	$	41,899	$	26,562	57.7	%	$	112,462	$	110,072	2.2	%
NGLs
Wattenberg Field	$	38,871	$	16,906	129.9	%	$	86,875	$	67,305	29.1	%
Delaware Basin	8,139		8,223		(1.0)	%	18,864		29,117		(35.2)	%
Total	$	47,010	$	25,129	87.1	%	$	105,739	$	96,422	9.7	%
Crude oil, natural gas and NGLs
Wattenberg Field	$	262,050	$	226,398	15.7	%	$	679,762	$	737,602	(7.8)	%
Delaware Basin	52,870		81,011		(34.7)	%	129,394		229,862		(43.7)	%
Total	$	314,920	$	307,409	2.4	%	$	809,156	$	967,464	(16.4)	%

Contract Assets.    Contract assets include material contributions in aid of construction, which are common in purchase and processing agreements with midstream service providers that are our customers. The intent of the payments is primarily to reimburse the customer for actual costs incurred related to the construction of its gathering and processing infrastructure. Contract assets are included in other assets in the condensed consolidated balance sheet. The contract assets are amortized as a reduction to crude oil, natural gas and NGLs sales revenue during the periods in which the related production is transferred to the customer.

The following table presents the changes in carrying amounts of the contract assets associated with our crude oil, natural gas and NGLs sales revenue for the nine months ended September 30, 2020:

	Amount
	(in thousands)
Beginning balance, January 1, 2020	$	11,494
Additions	15,627
Amortized as a reduction to crude oil, natural gas and NGLs sales	(1,588)
Ending balance, September 30, 2020	$	25,533