Accounts Receivable, Other Accrued Expenses and Other Liabilities

12 Months Ended

Dec. 31, 2022

Concentration Risks, Types, No Concentration Percentage [Abstract]

Accounts Receivable, Other Accrued Expenses and Other Liabilities

NOTE 8 - ACCOUNTS RECEIVABLE, OTHER ACCRUED EXPENSES AND OTHER LIABILITIES

Accounts Receivable. The following table presents the components of accounts receivable, net of allowance for doubtful accounts as of the dates indicated:

	December 31,
	2022		2021
	(in thousands)
Crude oil, natural gas and NGLs sales	$	491,327	$	368,991
Joint interest billings	46,633		24,860
Other	13,796		10,809
Allowance for doubtful accounts	(5,445)		(6,055)
Accounts receivable, net	$	546,311	$	398,605

The Company’s accounts receivable consist mainly of receivables from (i) crude oil, natural gas and NGLs purchasers, (ii) joint interest owners in the properties we operate and (iii) derivative counterparties. Most payments for production are received within two months after the production date. For receivables from joint interest owners, we typically have the ability to withhold future revenue disbursements to recover any non-payment of joint interest billings.

Credit and Concentration Risk. Inherent to our industry is the concentration of crude oil, natural gas and NGLs sales to a limited number of customers. This concentration has the potential to impact our overall exposure to credit risk in that our customers may be similarly affected by changes in economic and financial conditions, commodity prices or other conditions.

Given the liquidity in the market for the sale of hydrocarbons, we believe that the loss of any single purchaser, or the aggregate loss of several purchasers, could be managed by selling to alternative purchasers in our operating areas. The following major customers accounted for 10 percent or more of our total crude oil, natural gas, and NGLs sales for at least one of the periods presented:

	Year Ended December 31,
	2022		2021		2020
Major customer #1	27	%	32	%	31	%
Major customer #2	9	%	9	%	16	%
Major customer #3	7	%	11	%	13	%
Major customer #4	5	%	10	%	17	%

Other Accrued Expenses. The following table presents the components of other accrued expenses as of the dates indicated:

	December 31,
	2022		2021
	(in thousands)
Employee benefits	$	29,288	$	29,319
Asset retirement obligations	25,986		32,146
Environmental expenses	25,666		11,942
Operating and finance leases	5,987		7,197
Other	19,155		10,805
Other accrued expenses	$	106,082	$	91,409

Other Liabilities. The following table presents the components of other liabilities as of the dates indicated:

	December 31,
	2022		2021
	(in thousands)
Deferred midstream gathering credits	$	145,937	$	159,788
Production taxes	315,758		131,865
Operating and finance leases	41,815		6,274
Other	29,360		16,842
Other liabilities	$	532,870	$	314,769

Deferred Midstream Gathering Credits. In 2019, we entered into agreements pursuant to which we dedicated the gathering of some of our production and all water gathering and disposal volumes in the Delaware Basin. The terms of these agreements range from 15 to 22 years. The acreage dedication agreements resulted in initial cash receipts and are being amortized on a units-of-production basis. The amortization rates are assessed on an annual basis for changes in estimated future production.

The following table presents the amortization charges related to our deferred credits recognized on the consolidated statements of operations for the periods indicated:

	Year Ended December 31,
	2022		2021
	(in thousands)
Transportation, gathering and processing expense	$	11,037	$	7,317
Lease operating expense	3,753		2,422