Revenue

9 Months Ended

Sep. 30, 2020

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 and condensate 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 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 costs 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, 2020
Northern Region
Williston Basin	$	58.6	$	3.3	$	4.1	$	(9.4)	$	56.6
Other Northern	—		—		—		—		—
Southern Region
Permian Basin	110.7		6.0		9.1		(6.6)		119.2
Other Southern	—		—		—		—		—
Total oil and condensate, gas and NGL sales	$	169.3	$	9.3	$	13.2	$	(16.0)	$	175.8
	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

	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, 2020
Northern Region
Williston Basin	$	173.2	$	10.9	$	8.1	$	(27.3)	$	164.9
Other Northern	0.1		1.2		—		—		1.3
Southern Region
Permian Basin	334.5		12.5		21.0		(18.3)		349.7
Other Southern	—		—		—		—		—
Total oil and condensate, gas and NGL sales	$	507.8	$	24.6	$	29.1	$	(45.6)	$	515.9
	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