Revenue Recognition

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Note 5. Revenue Recognition

We record revenue in accordance with FASC Topic 606, Revenue from Contracts with Customers. The core principle of FASC Topic 606 is that an entity should recognize revenue for the transfer of goods or services equal to the amount of consideration that it expects to be entitled to receive for those goods or services. Once we have delivered the volume of commodity to the delivery

point and the customer takes delivery and possession, we are entitled to payment and we invoice the customer for such delivered production. Payment under most oil and CO₂ contracts is made within a month following product delivery and for natural gas and NGL contracts is generally made within two months following delivery. Timing of revenue recognition may differ from the timing of invoicing to customers; however, as the right to consideration after delivery is unconditional based on only the passage of time before payment of the consideration is due, upon delivery we record a receivable in “Accrued production receivable” in our Unaudited Condensed Consolidated Balance Sheets, which was $74.3 million and $139.4 million as of September 30, 2020 (Successor) and December 31, 2019 (Predecessor), respectively. From time to time, the Company enters into marketing arrangements for the purchase and sale of crude oil for third parties in the Gulf Coast region. Revenues and expenses from these transactions are presented on a gross basis, as we act as a principal in the transaction by assuming control of the commodities purchased and the responsibility to deliver the commodities sold. Revenue is recognized when control transfers to the purchaser at the delivery point based on the price received from the purchaser.

Disaggregation of Revenue

The following tables summarize our revenues by product type:

	Successor		Predecessor
	Period from Sept. 19, 2020 through		Period from July 1, 2020 through		Three Months Ended
In thousands	Sept. 30, 2020		Sept. 18, 2020		Sept. 30, 2019
Oil sales	$	22,311	$	152,136	$	292,100
Natural gas sales	10		954		1,092
CO2 sales and transportation fees	967		6,517		8,976
Oil marketing sales	151		3,332		5,468
Total revenues	$	23,439	$	162,939	$	307,636

	Successor		Predecessor
	Period from Sept. 19, 2020 through		Period from Jan. 1, 2020 through		Nine Months Ended
In thousands	Sept. 30, 2020		Sept. 18, 2020		Sept. 30, 2019
Oil sales	$	22,311	$	489,251	$	912,636
Natural gas sales	10		2,850		5,554
CO2 sales and transportation fees	967		21,049		25,532
Oil marketing sales	151		8,543		8,274
Total revenues	$	23,439	$	521,693	$	951,996