Business Segment Information

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Business Segment Information

Business Segment Information

The Company has two reportable segments: exploration and production and midstream. In conjunction with the Well Services Exit during the first quarter of 2020, the Company eliminated its well services segment and reported the remaining services performed by Oasis Well Services LLC within its exploration and production segment. Prior to the Well Services Exit, the Company had three reportable segments: exploration and production, midstream and well services. To conform to the current period reportable segments presentation, the prior periods have been restated to reflect the change in reportable segments.

The Company’s exploration and production segment is engaged in the acquisition and development of oil and gas properties. Revenues for the exploration and production segment are primarily derived from the sale of crude oil and natural gas production.

The Company’s midstream business segment performs midstream services including: (i) natural gas gathering, compression, processing, gas lift and NGL storage services; (ii) crude oil gathering, stabilization, blending, storage and transportation services; (iii) produced and flowback water gathering and disposal services; and (iv) freshwater supply and distribution services. Revenues for the midstream segment are derived from performing these midstream services to support the exploration and production operations of the Company as well as third-party producers. The revenues and expenses related to goods and services provided by the midstream segment for the Company’s ownership interests are eliminated in consolidation, and only the revenues and expenses related to non-affiliated interest owners and third-party customers are included in the Company’s Condensed Consolidated Statements of Operations.

The Company’s corporate activities have been allocated to the supported business segments accordingly. Management evaluates the performance of the Company’s business segments based on operating income (loss), which is defined as segment operating revenues less operating expenses, including depreciation, depletion and amortization.

The following table summarizes financial information for the Company’s two business segments for the periods presented:

	Exploration and Production		Midstream		Eliminations		Consolidated
	(In thousands)
Three months ended September 30, 2020:
Revenues from non-affiliates	$	215,636	$	55,423	$	—	$	271,059
Inter-segment revenues	—		54,638		(54,638)		—
Total revenues	215,636		110,061		(54,638)		271,059

Operating income (loss)	(8,603)		48,132		(1,005)		38,524
Other expense, net	(87,953)		(2,812)		—		(90,765)
Income (loss) before income taxes including non-controlling interests	$	(96,556)	$	45,320	$	(1,005)	$	(52,241)
General and administrative expenses	$	44,088	$	9,089	$	(3,926)	$	49,251
Equity-based compensation expenses	4,502		400		(68)		4,834
Three months ended September 30, 2019:
Revenues from non-affiliates	$	432,720	$	50,023	$	—	$	482,743
Inter-segment revenues	—		73,388		(73,388)		—
Total revenues	432,720		123,411		(73,388)		482,743
Operating income (loss)	(52,529)		64,299		(3,329)		8,441
Other income (expense), net	9,010		(4,512)		—		4,498
Income (loss) before income taxes including non-controlling interests	$	(43,519)	$	59,787	$	(3,329)	$	12,939
General and administrative expenses	$	29,409	$	7,842	$	(4,391)	$	32,860
Equity-based compensation expenses	8,247		383		(184)		8,446
Nine months ended September 30, 2020:
Revenues from non-affiliates	$	668,849	$	156,360	$	—	$	825,209
Inter-segment revenues	—		160,377		(160,377)		—
Total revenues	668,849		316,737		(160,377)		825,209
Operating income (loss)	(4,866,759)		36,526		(4,995)		(4,835,228)
Other income (expense), net	140,580		(38,568)		—		102,012
Loss before income taxes including non-controlling interests	$	(4,726,179)	$	(2,042)	$	(4,995)	$	(4,733,216)
General and administrative expenses	$	103,051	$	26,995	$	(12,178)	$	117,868
Equity-based compensation expenses	15,909		1,031		(409)		16,531
Nine months ended September 30, 2019:
Revenues from non-affiliates	$	1,438,235	$	149,645	$	—	$	1,587,880
Inter-segment revenues	—		199,793		(199,793)		—
Total revenues	1,438,235		349,438		(199,793)		1,587,880
Operating income (loss)	(30,734)		169,321		(8,130)		130,457
Other expense, net	(153,325)		(12,460)		—		(165,785)
Income (loss) before income taxes including non-controlling interests	$	(184,059)	$	156,861	$	(8,130)	$	(35,328)
General and administrative expenses	$	86,800	$	24,683	$	(13,238)	$	98,245
Equity-based compensation expenses	25,683		1,363		(676)		26,370
At September 30, 2020:
Property, plant and equipment, net	$	1,197,626	$	962,209	$	(43,981)	$	2,115,854
Total assets	1,499,941		1,050,817		(43,981)		2,506,777
At December 31, 2019:
Property, plant and equipment, net	$	5,939,389	$	1,078,903	$	(40,516)	$	6,977,776
Total assets	6,418,610		1,121,159		(40,516)		7,499,253