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SEGMENT INFORMATION
 9 Months Ended
Sep. 30, 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. The majority 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. In addition, on June 30, 2022, an indirect wholly-owned subsidiary of the Company acquired a cryogenic gas processing plant, three compressor stations and approximately 45 miles of natural gas gathering pipelines in Lea and Eddy Counties, New Mexico as part of the acquisition (the “Pronto Acquisition”) of a wholly-owned subsidiary of Summit Midstream Partners, LP that was subsequently renamed Pronto Midstream, LLC (“Pronto”). Neither San Mateo nor Pronto is a guarantor 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 ProductionConsolidations and EliminationsConsolidated Company
MidstreamCorporate
Three Months Ended September 30, 2022
Oil and natural gas revenues$746,874 $4,570 $— $— $751,444 
Midstream services revenues— 75,844 — (51,137)24,707 
Sales of purchased natural gas51,563 26,380 — — 77,943 
Realized loss on derivatives(56,263)— — — (56,263)
Unrealized gain on derivatives43,097 — — — 43,097 
Expenses(1)
318,746 66,270 23,775 (51,137)357,654 
Operating income(2)
$466,525 $40,524 $(23,775)$— $483,274 
Total assets$3,900,138 $997,839 $407,173 $— $5,305,150 
Capital expenditures(3)
$302,499 $27,851 $407 $— $330,757 
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(1)Includes depletion, depreciation and amortization expenses of $109.1 million and $9.2 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $0.6 million.
(2)Includes $16.5 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment.
(3)Includes $60.7 million attributable to land and seismic acquisition expenditures related to the exploration and production segment and $13.2 million in capital expenditures attributable to non-controlling interest in subsidiaries related to the midstream segment.
Exploration and ProductionConsolidations and EliminationsConsolidated Company
MidstreamCorporate
Three Months Ended September 30, 2021
Oil and natural gas revenues$460,306 $1,159 $— $— $461,465 
Midstream services revenues— 61,215 — (40,729)20,486 
Sales of purchased natural gas25,961 12,809 — — 38,770 
Realized loss on derivatives(57,419)— — — (57,419)
Unrealized gain on derivatives9,049 — — — 9,049 
Expenses(1)
220,535 40,784 21,575 (40,729)242,165 
Operating income(2)
$217,362 $34,399 $(21,575)$— $230,186 
Total assets$3,025,668 $864,020 $95,805 $— $3,985,493 
Capital expenditures(3)
$138,374 $28,948 $220 $— $167,542 
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(1)Includes depletion, depreciation and amortization expenses of $80.6 million and $7.8 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $0.6 million.
(2)Includes $14.4 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment.
(3)Includes $17.2 million attributable to land and seismic acquisition expenditures related to the exploration and production segment and $14.2 million in capital expenditures attributable to non-controlling interest in subsidiaries related to the midstream segment.
Exploration and ProductionConsolidations and EliminationsConsolidated Company
MidstreamCorporate
Nine Months Ended September 30, 2022
Oil and natural gas revenues$2,261,395 $9,333 $— $— $2,270,728 
Midstream services revenues— 218,279 — (154,380)63,899 
Sales of purchased natural gas103,217 54,073 — — 157,290 
Realized loss on derivatives(139,865)— — — (139,865)
Unrealized loss on derivatives(1,502)— — — (1,502)
Expenses(1)
888,796 157,767 70,797 (154,380)962,980 
Operating income(2)
$1,334,449 $123,918 $(70,797)$— $1,387,570 
Total assets$3,900,138 $997,839 $407,173 $— $5,305,150 
Capital expenditures(3)
$714,987 $138,975 $690 $— $854,652 

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(1)Includes depletion, depreciation and amortization expenses of $307.5 million and $25.5 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $1.8 million.
(2)Includes $54.0 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment.
(3)Includes $131.4 million attributable to land and seismic acquisition expenditures related to the exploration and production segment, $75.0 million in midstream acquisition expenditures and $30.7 million in capital expenditures attributable to non-controlling interest in subsidiaries related to the midstream segment.
Exploration and ProductionConsolidations and EliminationsConsolidated Company
MidstreamCorporate
Nine Months Ended September 30, 2021
Oil and natural gas revenues$1,186,086 $3,686 $— $— $1,189,772 
Midstream services revenues— 164,815 — (109,041)55,774 
Sales of purchased natural gas32,543 21,655 — — 54,198 
Realized loss on derivatives(125,943)— — — (125,943)
Unrealized loss on derivatives(77,178)— — — (77,178)
Expenses(1)
576,106 97,305 64,298 (109,041)628,668 
Operating income(2)
$439,402 $92,851 $(64,298)$— $467,955 
Total assets$3,025,668 $864,020 $95,805 $— $3,985,493 
Capital expenditures(3)
$381,167 $46,584 $465 $— $428,216 

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(1)Includes depletion, depreciation and amortization expenses of $230.0 million and $23.4 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $2.0 million.
(2)Includes $39.2 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment.
(3)Includes $32.8 million attributable to land and seismic acquisition expenditures related to the exploration and production segment and $22.4 million in capital expenditures attributable to non-controlling interest in subsidiaries related to the midstream segment.