Revenue Recognition

The Company records natural gas and oil revenue in accordance with Accounting Standards Update ("ASU") 2014-09 "Revenue from Contracts with Customers". The core principle of ASU 2014-09 is that an entity will recognize revenue when it transfers control of goods or services to customers at an amount that reflects the consideration to which it expects to be entitled in exchange for those goods and or services.

The Company’s sources of revenue are oil, natural gas and NGL production from its oil and gas properties. Oil and natural gas production is typically sold to purchasers through monthly contracts at negotiated sales prices based on published market indices. The sale takes place at the wellhead for oil production and at the wellhead or gas processing plant for natural gas. NGL production is sold once natural gas is processed and the related liquids are removed at the processing plant. The contracts for sale of NGL production are with the processing plant with prices based on what the processing plant is able to receive from third party purchasers.

Sales of oil, natural gas and NGL production are recognized when the product is delivered and title transfers to the purchaser and payment is generally received one to two months after the sale has occurred. The Company had $3.8 million of revenue receivable at June 30, 2019, comprised of $0.9 million of oil revenue, $2.3 million of natural gas revenue and $0.6 million of NGL revenue.

The following table includes a disaggregation of revenue by product including the effects of hedges in place for the three month periods ended June 30, 2019 and 2018 (in thousands):



	For the Three Month Period Ended June 30, 2019		For the Three Month Period Ended June 30, 2018
Oil production	$	3,858	$	5,660
Natural gas production	8,224		11,825
Natural gas liquids production	1,876		4,076
Total	$	13,958	$	21,561

The following table includes a disaggregation of revenue by product including the effects of hedges in place for the the Successor period of February 9, 2019 through June 30, 2019, the Predecessor period of January 1, 2019 through February 8, 2019 and the six month period ended June 30, 2018 (in thousands):



	For the Successor Period of February 9, 2019 through June 30, 2019		For the Predecessor Period of January 1, 2019 through February 8, 2019		For the Six Months Ended June 30, 2018
Oil production	$	6,041	$	1,502	$	11,982
Natural gas production	13,233		4,130		26,709
Natural gas liquids production	3,166		1,025		7,788
Total	$	22,440	$	6,657	$	46,478