Note 2 - Revenue Recognition

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

NOTE

2—Revenue

Recognition

On

January 1, 2018,

we adopted ASU

2014

-

09,

Revenue from Contracts with Customers,

and the series of related ASU's that followed under

Accounting Standards Codification (

“

ASC”) Topic

606

(collectively, “Topic

606”

).Topic

606

did

not

change our pattern of timing of revenue recognition. Under Topic

606,

revenue is generally recognized upon delivery of our produced oil and natural gas volumes to our customers. Our customer sales contracts include oil and natural gas sales. Under Topic

606,

each unit (Mcf or barrel) of commodity product represents a separate performance obligation which is sold at variable prices, determinable on a monthly basis. The pricing provisions of our contracts are primarily tied to a market index with certain adjustments based on factors such as delivery, product quality and prevailing supply and demand conditions in the geographic areas in which we operate. We allocate the transaction price to each performance obligation and recognize revenue upon delivery of the commodity product when the customer obtains control. Control of our produced natural gas volumes passes to our customers at specific metered points indicated in our natural gas contracts. Similarly, control of our produced oil volumes passes to our customers when the oil is measured either by a trucking oil ticket or by a meter when entering an oil pipeline. The Company has

no

control over the commodities after those points and the measurement at those points dictates the amount on which the customer's payment is based. Our oil and natural gas revenue streams include volumes burdened by royalty and non-operated working interests. Our revenues are recorded and presented on our financial statements net of the royalty and non-operated working interests. Our revenue stream does

not

include any payments for services or ancillary items other than sale of oil and natural gas.

We record revenue in the month our production is delivered to the purchaser. However, settlement statements and payments for our oil and natural gas sales

may

not

be received for up to

60

days after the date production is delivered, and as a result, we are required to estimate the amount of production delivered to the purchaser and the price that will be received for the sale of the product. We record any differences, which historically have

not

been significant, between the actual amounts ultimately received and the original estimates in the period they become finalized. As of

March 31, 2019

 and

December 31, 2018

, receivables from contracts with customers were

$12.2

 million and

$14.5

 million, respectively.

The following table presents our revenues disaggregated by revenue source and by operated and non-operated properties for the

three

months ended

March 31, 2019

and

2018

:

	Three Months Ended March 31, 2019								Three Months Ended March 31, 2018
(In thousands)	Oil Revenue		Gas Revenue		NGL Revenue		Total Oil and Natural Gas Revenues		Oil Revenue		Gas Revenue		NGL Revenue		Total Oil and Natural Gas Revenues
Operated	$	2,711	$	20,174	$	-	$	22,885	$	3,799	$	5,801	$	-	$	9,600
Non-operated		75		6,182		4		6,261		143		2,096		4		2,243
Total oil and natural gas revenues	$	2,786	$	26,356	$	4	$	29,146	$	3,942	$	7,897	$	4	$	11,843