v3.26.1
Revenue from Contracts with Customers
 3 Months Ended
Mar. 31, 2026
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 oil and natural gas in select basins around the world. The Company’s revenue from sales of oil and natural gas production activities is primarily subdivided into two key geographic segments: the United States (U.S.) and Canada. Additionally, revenue from sales to customers is generated from three primary revenue streams: crude oil, natural gas and natural gas liquids (NGLs).
For operated oil and natural gas production where a 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 (NCI) in MP Gulf of Mexico, LLC (MP GOM) as prescribed by GAAP.
U.S. - In the U.S., the Company primarily produces oil and natural gas from fields in the Eagle Ford Shale area of South Texas and in the Gulf of America. Revenue is generally recognized when oil and natural gas is 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.
The Company’s revenues and other income for the three-month periods ended March 31, 2026 and 2025 were as follows.
Three Months Ended
March 31,
(Thousands of dollars)20262025
Net crude oil and condensate revenue
United States - Onshore$188,348 $109,458 
United States - Offshore 1
333,441 352,362 
Canada - Onshore17,391 14,730 
Canada - Offshore53,336 74,469 
Other2,909 — 
Total crude oil and condensate revenue595,425 551,019 
Net natural gas liquids revenue
United States - Onshore9,275 8,487 
United States - Offshore 1
6,363 9,249 
Canada - Onshore1,318 1,747 
Total natural gas liquids revenue16,956 19,483 
Net natural gas revenue
United States - Onshore11,128 7,967 
United States - Offshore 1
26,150 19,941 
Canada - Onshore82,695 74,320 
Total natural gas revenue119,973 102,228 
Total revenue from sales to customers732,354 672,730 
Gain (loss) on derivative instruments— (9,459)
Gain on sale of assets and other operating income1,198 2,440 
Total revenues and other income$733,552 $665,711 
1 Includes revenue attributable to the noncontrolling interest in MP GOM.

Contract Balances and Asset Recognition
As of March 31, 2026, and December 31, 2025, receivables from contracts with customers, net of royalties and associated payables, on the balance sheet from continuing operations, were $222.1 million and $165.3 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 March 31, 2026.
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 March 31, 2026, the Company had the following sales contracts in place which are expected to generate revenue from sales to customers for a period over 12 months starting at the inception of the contract:
LocationCommodityEnd DateDescriptionApproximate Volumes
U.S.Natural Gas and NGLsQ1 2031Deliveries from dedicated acreage in Eagle Ford ShaleAs produced
CanadaNatural GasQ4 2026Contracts to sell natural gas at USD index pricing
49 MMCF/D
CanadaNatural GasQ4 2027Contracts to sell natural gas at USD index pricing
30 MMCF/D
CanadaNatural GasQ4 2028Contracts to sell natural gas at USD index pricing
10 MMCF/D
CanadaNatural Gas
Q4 2029
Contracts to sell natural gas at USD index pricing
25 MMCF/D
CanadaNatural GasQ4 2026Contracts to sell natural gas at CAD fixed pricing
50 MMCF/D
CanadaNatural GasQ4 2027Contracts to sell natural gas at CAD fixed pricing
9 MMCF/D
CanadaNGLs
Q4 2026
Contracts to sell NGLs at CAD index pricingAs produced
The fixed price contracts above are accounted for as normal sales and purchases for accounting purposes.