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Revenues from Contracts with Customers (Tables)
 9 Months Ended
Sep. 30, 2018
Revenue From Contracts with Customers [Abstract]  
Revenue Impact of the Adoption of ASC606
These tables summarize the impact of the adoption of ASC 606 on revenue and operating costs for the three and nine months ended September 30, 2018, respectively:
 
 
Three Months Ended September 30, 2018
 
 
As Reported
 
Adjustments due to ASC 606
 
Amounts without the Adoption of ASC 606
 
 
(In thousands)
Oil and natural gas revenues
 
$
111,623

 
$
(5,200
)
 
$
116,823

Oil and natural gas operating costs
 
32,139

 
(5,200
)
 
37,339

Gross profit
 
$
79,484

 
$
—

 
$
79,484

 
 
Nine Months Ended September 30, 2018
 
 
As Reported
 
Adjustments due to ASC 606
 
Amounts without the Adoption of ASC 606
 
 
(In thousands)
Oil and natural gas revenues
 
$
317,040

 
$
(12,102
)
 
$
329,142

Oil and natural gas operating costs
 
100,519

 
(12,102
)
 
112,621

Gross profit
 
$
216,521

 
$
—

 
$
216,521

For the three months ended September 30, 2018:
 
 
As Reported
 
Adjustments due to ASC 606
 
Amounts without the Adoption of ASC 606
 
 
(In thousands)
Gas gathering and processing revenues
 
$
57,823

 
$
1,300

 
$
56,523

Deferred income tax expense
 
6,744

 
318

 
6,426

Net income
 
21,123

 
982

 
20,141


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 nine months ended September 30, 2018:
 
 
As Reported
 
Adjustments due to ASC 606
 
Amounts without the Adoption of ASC 606
 
 
(In thousands)
Gas gathering and processing revenues
 
$
167,926

 
$
3,671

 
$
164,255

Deferred income tax expense
 
12,380

 
899

 
11,481

Net income
 
37,138

 
2,772

 
34,366
Balance Sheet Impact of the Adoption of ASC606
This adjustment—related to the timing of revenue recognized on certain demand fees—impacted our Unaudited Condensed Consolidated Balance Sheet (for the periods indicated) as follows:
 
 
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



At September 30, 2018:
 
 
As Reported
 
Adjustments due to ASC 606
 
Amounts without the Adoption of ASC 606
 
 
(In thousands)
Assets:
 
 
 
 
 
 
Prepaid expenses and other
 
$
9,419

 
$
206

 
$
9,213

Other assets
 
28,703

 
12,383

 
16,320

Liabilities and shareholders' equity:
 
 
 
 
 
 
Current portion of other long-term liabilities
 
14,150

 
2,874

 
11,276

Other long-term liabilities
 
101,410

 
7,731

 
93,679

Deferred income taxes
 
164,964

 
486

 
164,478

Retained earnings
 
830,680

 
1,498

 
829,182
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
October - December 2018
2019
2020
2021
2022
Total Remaining Impact to Revenue
 
 
(In thousands)
 
Demand fee contracts
4-5 years
$
1,299

$
2,632

$
(3,781
)
$
(3,507
)
$
1,374

$
(1,983
)
Contract with Customer, Asset and Liability
 
 
September 30,
2018
 
January 1,
2018
 
Change
 
 
(In thousands)
Contract assets
 
$
12,589

 
$
10,798

 
$
1,791

Contract liabilities
 
10,605

 
12,485

 
(1,880
)
Contract assets (liabilities), net
 
$
1,984

 
$
(1,687
)
 
$
3,671