Accounts Receivable and Revenues from Contracts with Customers

3 Months Ended

Mar. 31, 2021

Loans, Notes, Trade and Other Receivables Disclosure

Accounts Receivable and Revenues from Contracts with Customers

Accounts Receivable and Major Customers

The following table summarizes our accounts receivable by type as of the dates presented:


	March 31,		December 31,
	2021		2020
Customers	$	52,623	$	39,672
Joint interest partners	11,270		3,079
Derivative settlements from counterparties	2,835		3,287
Other	7		8
	66,735		46,046
Less: Allowance for credit losses	(364)		(197)
	$	66,371	$	45,849

Revenue from Contracts with Customers

For the three months ended March 31, 2021, three customers accounted for $54.1 million, or approximately 61%, of our consolidated product revenues. The revenues generated from these customers during the three months ended March 31, 2021, were $23.0 million, $20.1 million and $11.0 million, or 26%, 23% and 12% of the consolidated total, respectively. For the three months ended March 31, 2020, four customers accounted for $66.5 million, or approximately 73%, of our consolidated product revenues. As of March 31, 2021 and December 31, 2020, $23.5 million and $24.1 million, or approximately 45% and 61%, respectively, of our consolidated accounts receivable from customers was related to these customers. No significant uncertainties exist related to the collectability of amounts owed to us by any of these customers.

Credit Losses and Allowance for Credit Losses

In accordance with our accounting policies, we assess our portfolio of accounts receivable for credit losses by assigning credit risks to receivables originating by portfolio segment type as described below.

Customers. We sell our commodity products to approximately 16 customers. A substantial majority of these customers are large, internationally recognized refiners and marketers in the case of our crude oil sales and large domestic processors and interstate pipelines with respect to our NGL and natural gas sales. Due primarily to the historical market efficiencies and generally timely settlements associated with commodity sale transactions for crude oil, NGLs and natural gas, we have assessed this portfolio segment at zero risk for those receivables originated during the three months ended March 31, 2021.

Mutual Operators. As of March 31, 2021, we had mutual joint interest partner relationships with two upstream producers that also operate properties for which we have non-operated working interests. We have assessed receivables from these operators that originated in the three months ended March 31, 2021 with a five percent risk.

Large Partners. As of March 31, 2021, five legal entities had working interests of 10 percent or greater in properties that we operate. These entities are primarily passive investors. We have assessed receivables from these entities that originated in the three months ended March 31, 2021 with a two percent risk.

All Others. As of March 31, 2021, approximately 15 legal entities had working interests of less than 10 percent in properties that we operate. We have assessed receivables from these entities that originated in the three months ended March 31, 2021 with a 10 percent risk. As of March 31, 2021 and December 31, 2020, approximately $0.2 million of accounts receivables attributable to this portfolio segment was past due, or over 60 days. In addition, the derivative settlements from counterparties referenced in the table above have been assessed zero risk. Collectability from these counterparties is discussed further in Note 5.

As of March 31, 2021 and December 31, 2020, the allowance for credit losses is entirely attributable to receivables from joint interest partners. The following table summarizes the activity in our allowance for credit losses, by portfolio segment, for the three months ended March 31, 2021:


	Mutual Operators		Large Partners		All Others		Total
Balance at beginning of period	$	9	$	87	$	101	$	197
Provision for expected credit losses	(7)		202		(28)		167
Write-offs and recoveries	—		—		—		—
Balance at end of period	$	2	$	289	$	73	$	364