REVENUE FROM CONTRACTS WITH CUSTOMERS
Revenue from Contracts with Customers
The following tables present the Company’s revenue from contracts with customers:
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| Year Ended December 31, | | |
| 2025 | | 2024 | | 2023 | | |
| (In millions) | | |
| Oil sales | $ | 11,621 | | | $ | 9,067 | | | $ | 7,279 | | | |
| Natural gas sales | 400 | | | 89 | | | 262 | | | |
| Natural gas liquid sales | 1,432 | | | 944 | | | 687 | | | |
| Total oil, natural gas and natural gas liquid revenues | 13,453 | | | 10,100 | | | 8,228 | | | |
| Sales of purchased oil | 1,476 | | | 923 | | | 111 | | | |
| Other service revenues | 65 | | | 29 | | | 62 | | | |
| Total revenue from contracts with customers | $ | 14,994 | | | $ | 11,052 | | | $ | 8,401 | | | |
The following tables present the Company’s revenue from oil, natural gas and natural gas liquids disaggregated by basin:
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| Year Ended December 31, 2025 |
| Midland Basin | | Delaware Basin | | Other | | Total |
| (In millions) |
| Oil sales | $ | 10,729 | | | $ | 850 | | | $ | 42 | | | $ | 11,621 | |
| Natural gas sales | 349 | | | 45 | | | 6 | | | 400 | |
| Natural gas liquid sales | 1,321 | | | 111 | | | — | | | 1,432 | |
| Total | $ | 12,399 | | | $ | 1,006 | | | $ | 48 | | | $ | 13,453 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended December 31, 2024 |
| Midland Basin | | Delaware Basin | | Other | | Total |
| (In millions) |
| Oil sales | $ | 7,711 | | | $ | 1,347 | | | $ | 9 | | | $ | 9,067 | |
| Natural gas sales | 65 | | | 23 | | | 1 | | | 89 | |
| Natural gas liquid sales | 779 | | | 165 | | | — | | | 944 | |
| Total | $ | 8,555 | | | $ | 1,535 | | | $ | 10 | | | $ | 10,100 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Year Ended December 31, 2023 |
| Midland Basin | | Delaware Basin | | Other | | Total |
| (In millions) |
| Oil sales | $ | 5,746 | | | $ | 1,527 | | | $ | 6 | | | $ | 7,279 | |
| Natural gas sales | 176 | | | 85 | | | 1 | | | 262 | |
| Natural gas liquid sales | 500 | | | 187 | | | — | | | 687 | |
| Total | $ | 6,422 | | | $ | 1,799 | | | $ | 7 | | | $ | 8,228 | |
Customers
The Company is subject to risk resulting from the concentration of its crude oil and natural gas sales and receivables with several significant purchasers. For the year ended December 31, 2025, four purchasers each accounted for more than 10% of our revenue: Medallion Midstream (16%), Shell Trading (USA) Company (“Shell”) (13%), Enterprise Crude Oil LLC (“Enterprise”) (12%) and Vitol Inc. (“Vitol”) (11%). For the year ended December 31, 2024, four purchasers each accounted for more than 10% of the Company’s revenue: Vitol (17%), Enterprise (15%), Shell (13%) and DK Trading & Supply LLC (“DK”) (11%). For the year ended December 31, 2023, four purchasers each accounted for more than 10% of the Company’s revenue: Vitol (22%), DK (18%), Shell (14%) and Enterprise (13%). The Company does not require collateral and does not believe the loss of any single purchaser would materially impact its operating results, as crude oil and natural gas are fungible products with well-established markets and numerous purchasers.
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.