XML 83 R10.htm IDEA: XBRL DOCUMENT v3.19.3
Revenue (Notes)
 9 Months Ended
Sep. 30, 2019
Revenue Recognition [Abstract]  
Revenue
Revenue Recognition

QEP recognizes revenue from the sale of oil and condensate, gas and NGL in the period that the performance obligations are satisfied. QEP's performance obligations are satisfied when the customer obtains control of product, when QEP has no further obligations to perform related to the sale, when the transaction price has been determined and when collectability is probable. The sale of oil and condensate, gas and NGL are made under contracts with customers, which typically include consideration that is based on pricing tied to local indices and volumes delivered in the current month. Reported revenues include estimates for the two most recent months using published commodity price indices and volumes supplied by field operators. Performance obligations under our contracts with customers are typically satisfied at a point in time through monthly delivery of oil and condensate, gas and/or NGL. Our contracts with customers typically require payment for oil and condensate, gas and NGL sales within 30 days following the calendar month of delivery.

QEP's oil is typically sold at specific delivery points under contract terms that are common in the industry. QEP's gas and NGL are also sold under contract types that are common in the industry; however, under these contracts, the gas and its components, including NGL, may be sold to a single purchaser or the residue gas and NGL may be sold to separate purchasers. Regardless of the contract type, the terms of these contracts compensate QEP for the value of the residue gas and NGL constituent components at market prices for each product. QEP also purchases and resells oil and gas primarily to mitigate credit risk related to third party purchasers, to fulfill volume commitments when production does not fulfill contractual commitments and to capture additional margin from subsequent sales of third party purchases. QEP recognizes revenue from these resale activities in the period that the performance obligations are satisfied.

The following tables present QEP's revenues that are disaggregated by revenue source and by geographic area. Transportation and processing costs in the following table are not all of the transportation and processing costs that QEP incurs, only the expenses that are netted against revenues pursuant to ASC Topic 606, Revenue Recognition.
 
Oil and condensate sales
 
Gas sales
 
NGL sales
 
Transportation and processing costs included in revenue
 
Oil and condensate, gas and NGL sales, as reported
 
(in millions)
 
Three Months Ended September 30, 2019
Northern Region
 
Williston Basin
$
88.9

 
$
5.5

 
$
2.4

 
$
(7.0
)
 
$
89.8

Other Northern
—

 
0.1

 
0.1

 
—

 
0.2

Southern Region
 
 
 
 
 
 
 
 

Permian Basin
209.9

 
3.4

 
9.4

 
(7.2
)
 
215.5

Other Southern
—

 
0.1

 
—

 
—

 
0.1

Total oil and condensate, gas and NGL sales
$
298.8

 
$
9.1

 
$
11.9

 
$
(14.2
)
 
$
305.6

 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2018
Northern Region
 
Williston Basin
$
203.4

 
$
12.0

 
$
19.2

 
$
(12.3
)
 
$
222.3

Uinta Basin
7.3

 
6.8

 
1.4

 
—

 
15.5

Other Northern
1.1

 
0.5

 
0.1

 
—

 
1.7

Southern Region
 
 
 
 
 
 
 
 

Permian Basin
204.0

 
5.4

 
21.3

 
(3.5
)
 
227.2

Haynesville/Cotton Valley
0.2

 
76.9

 
—

 
—

 
77.1

Other Southern
0.1

 
0.1

 
—

 
—

 
0.2

Total oil and condensate, gas and NGL sales
$
416.1

 
$
101.7

 
$
42.0

 
$
(15.8
)
 
$
544.0

 
Oil and condensate sales
 
Gas sales
 
NGL sales
 
Transportation and processing costs included in revenue
 
Oil and condensate, gas and NGL sales, as reported
 
(in millions)
 
Nine Months Ended September 30, 2019
Northern Region
 
Williston Basin
$
306.3

 
$
25.5

 
$
15.6

 
$
(26.0
)
 
$
321.4

Other Northern
0.9

 
0.4

 
0.1

 
—

 
1.4

Southern Region
 
 
 
 
 
 
 
 

Permian Basin
526.7

 
7.4

 
27.4

 
(14.7
)
 
546.8

Other Southern
0.1

 
6.1

 
—

 
—

 
6.2

Total oil and condensate, gas and NGL sales
$
834.0

 
$
39.4

 
$
43.1

 
$
(40.7
)
 
$
875.8

 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2018
Northern Region
 
Williston Basin
$
571.5

 
$
30.2

 
$
45.7

 
$
(32.9
)
 
$
614.5

Uinta Basin
25.2

 
24.8

 
4.8

 
—

 
54.8

Other Northern
3.9

 
1.7

 
—

 
—

 
5.6

Southern Region
 
 
 
 
 
 
 
 

Permian Basin
524.1

 
13.2

 
37.7

 
(8.0
)
 
567.0

Haynesville/Cotton Valley
0.8

 
231.2

 
—

 
—

 
232.0

Other Southern
(0.2
)
 
0.4

 
—

 
—

 
0.2

Total oil and condensate, gas and NGL sales
$
1,125.3

 
$
301.5

 
$
88.2

 
$
(40.9
)
 
$
1,474.1