v3.26.1
SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
SEGMENT INFORMATION
The Company has two business segments: (i) exploration and production and (ii) midstream. The exploration and production segment is engaged in the exploration, development, production and acquisition of oil and natural gas resources in the United States and is currently focused primarily on the oil and liquids-rich portion of the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas. The Company also has operations in the Haynesville shale and Cotton Valley plays in Northwest Louisiana. The midstream segment conducts midstream operations in support of, and provides flow assurance for, the Company’s exploration, development and production operations and provides natural gas processing, oil transportation services, oil, natural gas and produced water gathering services and produced water disposal services to third parties. The majority of the Company’s midstream operations in the Delaware Basin are conducted through San Mateo.
The Company’s chief operating decision maker (“CODM”) is the Chairman and Chief Executive Officer. The CODM uses operating income to assess income generated from each segment to allocate resources by either reinvesting profits as midstream or drilling and completion capital expenditures, or for determining the appropriate amounts for acquisition spend, the repayment of debt, the payment of dividends and repurchases of common stock.
The following tables present selected financial information for the periods presented regarding the Company’s business segments on a stand-alone basis, corporate expenses that are not allocated to a segment and the consolidation and elimination entries necessary to arrive at the financial information for the Company on a consolidated basis (in thousands). On a consolidated basis, midstream services revenues consist primarily of those revenues from midstream operations related to third parties, including working interest owners in the Company’s operated wells. All midstream services revenues associated with Company-owned production are eliminated in consolidation. In evaluating the operating results of the exploration and production and midstream segments, the Company does not allocate certain expenses to the individual segments, including general and administrative expenses. Such expenses are reflected in the column labeled “Corporate.”
Exploration and ProductionConsolidations and EliminationsConsolidated Company
MidstreamCorporate
Three Months Ended March 31, 2026
Oil and natural gas revenues$815,951 $2,780 $— $— $818,731 
Midstream services revenues— 135,948 — (93,857)42,091 
Sales of purchased natural gas34,367 46,415 — — 80,782 
Realized loss on derivatives(14,493)— — — (14,493)
Unrealized loss on derivatives(255,474)— — — (255,474)
Operating expense(1)
147,178 55,227 — (39,652)162,753 
Other expenses(2)
414,605 67,177 34,486 (54,205)462,063 
Operating income(3)
$18,568 $62,739 $(34,486)$— $46,821 
Total assets(4)
$10,187,710 $1,833,540 $153,239 $— $12,174,489 
Capital expenditures(5)
$479,060 $15,734 $2,132 $— $496,926 
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(1)Includes lease operating expense for the exploration and production segment and midstream operating expense for the midstream segment.
(2)Includes depletion, depreciation and amortization expenses of $275.3 million and $17.0 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $0.4 million. Other expenses for each reportable segment also include (i) transportation and processing, (ii) general and administrative expenses, (iii) accretion of asset retirement obligations, (iv) purchased natural gas and (v) taxes other than income.
(3)Includes $20.1 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment.
(4)Excludes intercompany receivables and investments in subsidiaries.
(5)Includes $61.4 million attributable to land and seismic acquisition expenditures related to the exploration and production segment and $5.2 million in capital expenditures attributable to non-controlling interest in subsidiaries related to the midstream segment.
Exploration and ProductionConsolidations and EliminationsConsolidated Company
MidstreamCorporate
Three Months Ended March 31, 2025
Oil and natural gas revenues$905,931 $3,987 $— $— $909,918 
Midstream services revenues— 119,979 — (86,480)33,499 
Sales of purchased natural gas25,577 37,179 — — 62,756 
Realized gain on derivatives2,714 — — — 2,714 
Unrealized gain on derivatives5,071 — — — 5,071 
Operating expense(1)
145,867 51,803 — (41,456)156,214 
Other expenses(2)
431,339 53,423 28,855 (45,024)468,593 
Operating income(3)
$362,087 $55,919 $(28,855)$— $389,151 
Total assets(4)
$9,310,313 $1,665,288 $106,440 $— $11,082,041 
Capital expenditures(5)
$476,152 $77,184 $942 $— $554,278 
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(1)Includes lease operating expense for the exploration and production segment and midstream operating expense for the midstream segment.
(2)Includes depletion, depreciation and amortization expenses of $269.5 million and $12.1 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $0.4 million. Other expenses for each reportable segment also include (i) transportation and processing, (ii) general and administrative expenses, (iii) accretion of asset retirement obligations, (iv) purchased natural gas and (v) taxes other than income.
(3)Includes $22.2 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment.
(4)Excludes intercompany receivables and investments in subsidiaries.
(5)Includes $81.8 million attributable to land and seismic acquisition expenditures related to the exploration and production segment and $30.8 million in capital expenditures attributable to non-controlling interest in subsidiaries related to the midstream segment.