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Revenue from Contracts with Customers
 9 Months Ended
Sep. 30, 2022
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers Note C – Revenue from Contracts with Customers
Nature of Goods and Services
The Company explores for and produces crude oil, natural gas and natural gas liquids (collectively oil and natural gas) in select basins around the globe. The Company’s revenue from sales of oil and natural gas production activities are primarily subdivided into two key geographic segments: the U.S. and Canada.  Additionally, revenue from sales to customers is generated from three primary revenue streams: crude oil and condensate, natural gas liquids, and natural gas.
For operated oil and natural gas production where the non-operated working interest owner does not take-in-kind its proportionate interest in the produced commodity, the Company acts as an agent for the working interest owner and recognizes revenue only for its own share of the commingled production. The exception to this is the reporting of the noncontrolling interest in MP Gulf of Mexico, LLC (MP GOM) as prescribed by ASC 810-10-45.
U.S. - In the United States, the Company primarily produces oil and natural gas from fields in the Eagle Ford Shale area of South Texas and in the Gulf of Mexico (GOM).  Revenue is generally recognized when oil and natural gas are transferred to the customer at the delivery point. Revenue recognized is largely index based with price adjustments for floating market differentials.
Canada - In Canada, contracts include long-term floating commodity index priced and natural gas physical forward sales fixed-price contracts. For the offshore business in Canada, contracts are based on index prices and revenue is recognized at the time of vessel load, based on the volumes on the bill of lading and point of custody transfer. The Company also purchases natural gas in Canada to meet certain sales commitments.
Disaggregation of Revenue
The Company reviews performance based on two key geographical segments and between onshore and offshore sources of revenue within these geographies.
For the three-month periods ended September 30, 2022, and 2021, the Company recognized $1,166 million and $687.5 million, respectively, from total revenue from sales to customers, from sales of oil, natural gas liquids and natural gas.
For the nine-month periods ended September 30, 2022, and 2021, the Company recognized $3,234.0 million and $2,038.9 million, respectively, from total revenue from sales to customers, from sales of oil, natural gas liquids and natural gas.
Three Months Ended
September 30,		Nine Months Ended
September 30,
(Thousands of dollars)2022202120222021
Net crude oil and condensate revenue
United States
Onshore$247,562 167,010 $684,099 464,767 
                     Offshore597,242 340,001 1,675,389 1,079,418 
Canada    
Onshore29,445 29,110 106,559 89,708 
Offshore30,030 20,499 97,216 70,333 
Other
4,867 — 18,503 — 
Total crude oil and condensate revenue909,146 556,620 2,581,766 1,704,226 
Net natural gas liquids revenue
United States
Onshore18,288 16,356 53,035 33,480 
 
Offshore16,079 11,046 48,151 31,866 
Canada
Onshore4,932 4,501 14,800 11,728 
Total natural gas liquids revenue39,299 31,903 115,986 77,074 
Net natural gas revenue
United States
Onshore21,009 11,127 51,412 24,442 
Offshore52,143 17,444 121,911 56,855 
Canada
Onshore99,312 70,455 230,661 176,308 
Total natural gas revenue172,464 99,026 403,984 257,605 
Revenue from production1,120,909 687,549 3,101,736 2,038,905 
Sales of purchased natural gas
United States
Offshore— — 181 — 
Canada
Onshore45,500 — 132,104 — 
Total sales of purchased natural gas45,500 — 132,285 — 
Total revenue from sales to customers1,166,409 687,549 3,234,021 2,038,905 
Gain (Loss) on derivative instruments115,191 (59,164)(308,654)(499,794)
Gain on sale of assets and other income21,825 2,315 32,076 21,217 
Total revenues and other income$1,303,425 630,700 $2,957,443 1,560,328 

In 2022, the Company included additional line items on the face of the Consolidated Statements of Operations to report Sales of purchased natural gas and Costs of purchased natural gas. Sales and purchases of natural gas are reported on a gross basis when Murphy takes control of the products and has risks and rewards of ownership.
Contract Balances and Asset Recognition
As of September 30, 2022, and December 31, 2021, receivables from contracts with customers, net of royalties and associated payables, on the balance sheet from continuing operations, were $210.1 million and $169.8 million, respectively. Payment terms for the Company’s sales vary across contracts and geographical regions, with the majority of the cash receipts required within 30 days of billing. Based on a forward-looking expected loss model in accordance with ASU 2016-13, the Company did
not recognize any impairment losses on receivables or contract assets arising from customer contracts during the reporting periods.
The Company has not entered into any revenue contracts that have financing components as of September 30, 2022.
The Company does not employ sales incentive strategies such as commissions or bonuses for obtaining sales contracts. For the periods presented, the Company did not identify any assets to be recognized associated with the costs to obtain a contract with a customer.
Performance Obligations
The Company recognizes oil and natural gas revenue when it satisfies a performance obligation by transferring control over a commodity to a customer.  Judgment is required to determine whether some customers simultaneously receive and consume the benefit of commodities. As a result of this assessment for the Company, each unit of measure of the specified commodity is considered to represent a distinct performance obligation that is satisfied at a point in time upon the transfer of control of the commodity.
For contracts with market or index-based pricing, which represent the majority of sales contracts, the Company has elected the allocation exception and allocates the variable consideration to each single performance obligation in the contract. As a result, there is no price allocation to unsatisfied remaining performance obligations for delivery of commodity product in subsequent periods.
The Company has entered into several long-term, fixed-price contracts in Canada. The underlying reason for entering a fixed price contract is generally unrelated to anticipated future prices or other observable data and serves a particular purpose in the Company’s long-term strategy.
As of September 30, 2022, the Company had the following sales contracts in place which are expected to generate revenue from sales to customers for a period of more than 12 months starting at the inception of the contract:
Current Long-Term Contracts Outstanding at September 30, 2022
LocationCommodityEnd DateDescriptionApproximate Volumes
U.S.Natural Gas and NGLQ2 2023Deliveries from dedicated acreage in Eagle FordAs produced
CanadaNatural GasQ4 2022Contracts to sell natural gas at USD index pricing8 MMCFD
CanadaNatural GasQ4 2022Contracts to sell natural gas at CAD fixed prices5 MMCFD
CanadaNatural GasQ4 2022Contracts to sell natural gas at USD fixed pricing20 MMCFD
CanadaNatural GasQ4 2023Contracts to sell natural gas at USD index pricing25 MMCFD
CanadaNatural GasQ4 2023Contracts to sell natural gas at CAD fixed prices38 MMCFD
CanadaNatural GasQ4 2024Contracts to sell natural gas at USD index pricing31 MMCFD
CanadaNatural GasQ4 2024Contracts to sell natural gas at CAD fixed prices100 MMCFD
CanadaNatural GasQ4 2024Contracts to sell natural gas at CAD fixed prices34 MMCFD
CanadaNatural GasQ4 2024Contracts to sell natural gas at USD fixed pricing15 MMCFD
CanadaNatural GasQ4 2026Contracts to sell natural gas at USD index pricing49 MMCFD
CanadaNGLQ3 2023Contracts to sell natural gas liquids at CAD pricing952 BOED
Fixed price contracts are accounted for as normal sales and purchases for accounting purposes.