Revenue Recognition (Notes)

12 Months Ended

Dec. 31, 2020

Revenue Recognition [Abstract]

Revenue Recognition

Revenue RecognitionDisaggregated revenue from contracts with purchasers. Revenues on sales of oil, NGL, gas and purchased oil, gas and diesel are recognized when control of the product is transferred to the purchaser and payment can be reasonably assured. Sales prices for oil, NGL 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, NGL and gas generally fluctuate similar to changes in the relevant market index prices.

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

	Year Ended December 31,
	2020		2019
	(in millions)
Oil sales	$	2,871	$	4,168
NGL sales	490		510
Gas sales	269		238
Total commodities sales	3,630		4,916
Sales of purchased oil	3,359		4,726
Sales of purchased gas	24		29
Sales of purchased diesel	11		—
Total sales of purchased commodities	3,394		4,755
Total revenue from contracts with purchasers	$	7,024	$	9,671

Performance obligations and contract balances. The majority of the Company's product sale commitments are short-term in nature with a contract term of one year or less. The Company typically satisfies its performance obligations upon transfer of control as described above in Disaggregated revenue from contracts with purchasers and records the related revenue in the month production is delivered to the purchaser. Settlement statements for sales of oil, NGL, gas and sales of purchased oil, gas and diesel may not be received for 30 to 60 days after the date the volumes are delivered, and as a result, the Company is required to estimate the amount of volumes delivered to the purchaser and the price that will be received for the sale of the product. The Company records the differences between estimates and the actual amounts received for product sales in the month that payment is received from the purchaser. As of December 31, 2020 and 2019, the accounts receivable balance representing amounts due or billable under the terms of contracts with purchasers was $661 million and $968 million, respectively.