SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

The Company operates in two business segments: (i) exploration and production and (ii) midstream. The exploration and production segment is engaged in the exploration, development, production and acquisition of oil and natural gas resources in the United States and is currently focused primarily on the oil and liquids-rich portion of the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas. The Company also operates in the Eagle Ford shale play in South Texas and the Haynesville shale and Cotton Valley plays in Northwest Louisiana. The midstream segment conducts midstream operations in support of the Company’s exploration, development and production operations and provides natural gas processing, oil transportation services, oil, natural gas and produced water gathering services and produced water disposal services to third parties. Substantially all of the Company’s midstream operations in the Rustler Breaks, Wolf and Stateline asset areas and the Greater Stebbins Area in the Delaware Basin, which comprise most of the Company’s midstream operations, are conducted through San Mateo. San Mateo and its subsidiaries are not guarantors of the Notes.

The following tables present selected financial information for the periods presented regarding the Company’s business segments on a stand-alone basis, corporate expenses that are not allocated to a segment and the consolidation and elimination entries necessary to arrive at the financial information for the Company on a consolidated basis (in thousands). On a consolidated basis, midstream services revenues consist primarily of those revenues from midstream operations related to third parties, including working interest owners in the Company’s operated wells. All midstream services revenues associated with Company-owned production are eliminated in consolidation. In evaluating the operating results of the exploration and production and midstream segments, the Company does not allocate certain expenses to the individual segments, including general and administrative expenses. Such expenses are reflected in the column labeled “Corporate.”

	Exploration and Production						Consolidations and Eliminations		Consolidated Company
			Midstream		Corporate
Three Months Ended March 31, 2022
Oil and natural gas revenues	$	624,793	$	1,722	$	—	$	—	$	626,515
Midstream services revenues	—		67,391		—		(50,085)		17,306
Sales of purchased natural gas	7,122		12,217		—		—		19,339
Realized loss on derivatives	(22,439)		—		—		—		(22,439)
Unrealized loss on derivatives	(75,029)		—		—		—		(75,029)
Expenses(1)	237,457		42,771		26,242		(50,085)		256,385
Operating income(2)	$	296,990	$	38,559	$	(26,242)	$	—	$	309,307
Total assets	$	3,596,773	$	894,560	$	75,995	$	—	$	4,567,328
Capital expenditures(3)	$	239,848	$	19,081	$	225	$	—	$	259,154

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(1)Includes depletion, depreciation and amortization expenses of $87.3 million and $8.0 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $0.6 million.

(2)Includes $17.1 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment.

(3)Includes $41.1 million attributable to land and seismic acquisition expenditures related to the exploration and production segment and $9.3 million in capital expenditures attributable to non-controlling interest in subsidiaries related to the midstream segment.

	Exploration and Production						Consolidations and Eliminations		Consolidated Company
			Midstream		Corporate
Three Months Ended March 31, 2021
Oil and natural gas revenues	$	314,646	$	1,587	$	—	$	—	$	316,233
Midstream services revenues	—		43,909		—		(28,471)		15,438
Sales of purchased natural gas	2,462		2,048		—		—		4,510
Realized loss on derivatives	(25,913)		—		—		—		(25,913)
Unrealized loss on derivatives	(43,423)		—		—		—		(43,423)
Expenses(1)	156,444		26,247		19,962		(28,471)		174,182
Operating income(2)	$	91,328	$	21,297	$	(19,962)	$	—	$	92,663
Total assets	$	2,881,242	$	831,239	$	26,400	$	—	$	3,738,881
Capital expenditures(3)	$	134,865	$	9,773	$	133	$	—	$	144,771

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(1)Includes depletion, depreciation and amortization expenses of $66.4 million and $7.8 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $0.7 million.

(2)Includes $8.9 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment.

(3)Includes $8.7 million attributable to land and seismic acquisition expenditures related to the exploration and production segment and $4.4 million in capital expenditures attributable to non-controlling interest in subsidiaries related to the midstream segment.