v3.26.3
SEGMENT INFORMATION
 9 Months Ended
Sep. 30, 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 September 30, 2026
Oil and natural gas revenues$1,217,582 $4,539 $— $— $1,222,121 
Midstream services revenues— 172,500 — (116,166)56,334 
Sales of purchased natural gas52,045 60,040 — — 112,085 
Realized loss on derivatives(160,170)— — — (160,170)
Unrealized loss on derivatives(67,727)— — — (67,727)
Operating expense(1)
170,157 82,442 — (50,081)202,518 
Other expenses(2)
556,092 80,208 36,028 (66,085)606,243 
Operating income(3)
$315,481 $74,429 $(36,028)$— $353,882 
Total assets(4)
$11,902,834 $2,672,391 $118,088 $— $14,693,313 
Capital expenditures(5)
$355,778 $825,349 $1,609 $— $1,182,736 
_____________________
(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 $320.1 million and $22.6 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $0.3 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 $23.0 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 $25.9 million attributable to land and seismic acquisition expenditures related to the exploration and production segment, $761.0 million attributable to midstream acquisition expenditures and $12.1 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 September 30, 2025
Oil and natural gas revenues$807,167 $3,074 $— $— $810,241 
Midstream services revenues— 143,117 — (99,284)43,833 
Sales of purchased natural gas26,057 34,986 — — 61,043 
Realized gain on derivatives3,946 — — — 3,946 
Unrealized gain on derivatives19,952 — — — 19,952 
Operating expense(1)
147,537 49,337 — (43,356)153,518 
Other expenses(2)
444,304 59,528 31,614 (55,928)479,518 
Operating income(3)
$265,281 $72,312 $(31,614)$— $305,979 
Total assets(4)
$9,663,974 $1,832,452 $150,282 $— $11,646,708 
Capital expenditures(5)
$569,873 $72,193 $1,291 $— $643,357 
_____________________
(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 $290.1 million and $14.9 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 $24.3 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 $140.0 million attributable to land and seismic acquisition expenditures related to the exploration and production segment and $29.4 million in capital expenditures attributable to non-controlling interest in subsidiaries related to the midstream segment.

Exploration and ProductionConsolidations and EliminationsConsolidated Company
MidstreamCorporate
Nine Months Ended September 30, 2026
Oil and natural gas revenues$3,116,866 $11,570 $— $— $3,128,436 
Midstream services revenues— 454,776 — (311,758)143,018 
Sales of purchased natural gas89,436 144,677 — — 234,113 
Realized loss on derivatives(247,151)— — — (247,151)
Unrealized loss on derivatives(237,744)— — — (237,744)
Operating expense(1)
466,158 198,205 — (131,608)532,755 
Other expenses(2)
1,379,786 204,388 105,868 (180,150)1,509,892 
Operating income(3)
$875,463 $208,430 $(105,868)$— $978,025 
Total assets(4)
$11,902,834 $2,672,391 $118,088 $— $14,693,313 
Capital expenditures(5)
$2,429,585 $885,124 $3,697 $— $3,318,406 
_____________________
(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 $892.5 million and $57.2 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $1.1 million. Other expenses for each reportable segment also includes (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 $66.0 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 $1.27 billion attributable to land and seismic acquisition expenditures related to the exploration and production segment, $767.2 million attributable to midstream acquisition expenditures and $30.7 million in capital expenditures attributable to non-controlling interest in subsidiaries related to the midstream segment.
Exploration and ProductionConsolidations and EliminationsConsolidated Company
MidstreamCorporate
Nine Months Ended September 30, 2025
Oil and natural gas revenues$2,526,213 $9,720 $— $— $2,535,933 
Midstream services revenues— 400,221 — (280,882)119,339 
Sales of purchased natural gas81,316 110,380 — — 191,696 
Realized gain on derivatives13,607 — — — 13,607 
Unrealized loss on derivatives(12,290)— — — (12,290)
Operating expense(1)
444,932 145,597 — (131,110)459,419 
Other expenses(2)
1,302,875 164,705 87,264 (149,772)1,405,072 
Operating income(3)
$861,039 $210,019 $(87,264)$— $983,794 
Total assets(4)
$9,663,974 $1,832,452 $150,282 $— $11,646,708 
Capital expenditures(5)
$1,435,138 $250,864 $3,047 $— $1,689,049 
_____________________
(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 $848.6 million and $40.1 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $1.2 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 $78.6 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 $265.6 million attributable to land and seismic acquisition expenditures related to the exploration and production segment and $105.5 million in capital expenditures attributable to non-controlling interest in subsidiaries related to the midstream segment.