Revenue Recognition

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

The Company recognizes revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

Disaggregated revenue from contracts with purchasers. Revenues on sales of oil, NGLs, gas and purchased oil and gas are recognized when control of the product is transferred to the purchaser and payment can be reasonably assured. Sales prices for oil, NGLs and gas are negotiated based on factors normally considered in the industry, such as an index or spot price, distance from the well to the pipeline or market, commodity quality and prevailing supply and demand conditions. Accordingly, the prices received by the Company for oil, NGLs and gas sales generally fluctuate similar to changes in the relevant market index prices.

Disaggregated revenue from contracts with purchasers by product type is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(in millions)
Oil sales	$	724	$	1,068	$	2,101	$	3,032
NGL sales	129		116		344		373
Gas sales	69		51		172		162
Total oil and gas sales	922		1,235		2,617		3,567
Sales of purchased oil	934		1,166		2,373		3,455
Sales of purchased gas	1		5		18		8
Total sales of purchased oil and gas	935		1,171		2,391		3,463
Total revenue from contracts with purchasers	$	1,857	$	2,406	$	5,008	$	7,030

As of September 30, 2020 and December 31, 2019, the accounts receivable balance representing amounts due or billable under the terms of contracts with purchasers was $602 million and $968 million, respectively.