Revenue from Contracts with Customers Revenues from Contracts with Customers (Tables)

6 Months Ended

Jun. 30, 2018

Revenue From Contracts with Customers [Abstract]

Revenue Impact of the Adoption of ASC606

The following tables summarizes the impact of the adoption of ASC 606 on revenue and operating costs for the three months ended June 30, 2018:



	Three Months Ended June 30, 2018
	As Reported		Adjustments due to ASC 606			Amounts without the Adoption of ASC 606
	(In thousands)
Oil and natural gas revenues	$	102,318	$	(3,732	)	$	106,050
Oil and natural gas operating costs	32,418		(3,732		)	36,150
Gross profit	$	69,900	$	—		$	69,900

The following tables summarizes the impact of the adoption of ASC 606 on revenue and operating costs for the six months ended June 30, 2018:



	Six Months Ended June 30, 2018
	As Reported		Adjustments due to ASC 606			Amounts without the Adoption of ASC 606
	(In thousands)
Oil and natural gas revenues	$	205,417	$	(6,902	)	$	212,319
Oil and natural gas operating costs	68,380		(6,902		)	75,282
Gross profit	$	137,037	$	—		$	137,037

This adjustment related to the timing of revenue recognized on certain demand fees and had the following impact to the Unaudited Condensed Consolidated Income Statement for the three months ended June 30, 2018:



	As Reported		Adjustments due to ASC 606		Amounts without the Adoption of ASC 606
	(In thousands)
Gas gathering and processing revenues	$	54,059	$	1,179	$	52,880
Deferred income tax expense	2,029		289		1,740
Net income	8,150		890		7,260



	As Reported		Adjustments due to ASC 606		Amounts without the Adoption of ASC 606
	(In thousands)
Gas gathering and processing revenues	$	110,103	$	2,371	$	107,732
Deferred income tax expense	5,636		581		5,055
Net income	16,015		1,790		14,225

Balance Sheet Impact of the Adoption of ASC606

This adjustment related to the timing of revenue recognized on certain demand fees and had the following impact to the Unaudited Condensed Consolidated Balance Sheet:



	Balance at December 31, 2017		Adjustments due to ASC 606			Balance at January 1, 2018
	(In thousands)
Assets:
Other assets	$	16,230	$	10,798		$	27,028
Liabilities and shareholders' equity:
Current portion of other long-term liabilities	13,002		2,748			15,750
Other long-term liabilities	100,203		9,737			109,940
Deferred income taxes	133,477		(413		)	133,064
Retained earnings	799,402		(1,274		)	798,128

The impact of these demand fees to the Unaudited Condensed Consolidated Balance Sheet at June 30, 2018 was:



	As Reported		Adjustments due to ASC 606		Amounts without the Adoption of ASC 606
	(In thousands)
Assets:
Prepaid expenses and other	$	8,731	$	128	$	8,603
Other assets	28,113		11,887		16,226
Liabilities and shareholders' equity:
Current portion of other long-term liabilities	14,036		2,875		11,161
Other long-term liabilities	102,928		8,456		94,472
Deferred income taxes	158,232		168		158,064
Retained earnings	811,781		516		811,265

Revenue, Remaining Performance Obligation

Included below is the additional fixed revenue we will earn over the remaining term of the contracts and excludes all variable consideration to be earned with the associated contract.



Contract	Remaining Term of Contract	July - December 2018		2019		2020			2021			2022		Total Remaining Impact to Revenue
		(In thousands)
Demand fee contracts	4-5 years	$	2,598	$	2,632	$	(3,781	)	$	(3,507	)	$	1,374	$	(684	)

Contract with Customer, Asset and Liability



	June 30, 2018		January 1, 2018			Change
	(In thousands)
Contract assets	$	12,015	$	10,798		$	1,217
Contract liabilities	11,331		12,485			(1,154		)
Contract liabilities, net	$	684	$	(1,687	)	$	2,371