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These excerpts taken from the DVN 10-K filed Feb 27, 2009. Revenue
Recognition and Gas Balancing
Oil, gas and NGL revenues are recognized when production is sold
to a purchaser at a fixed or determinable price, delivery has
occurred, title has transferred and collectability of the
revenue is probable. Delivery occurs and title is transferred
when production has been delivered to a pipeline, railcar or
truck or a tanker lifting has occurred. Cash received relating
to future production is deferred and recognized when all revenue
recognition criteria are met. Taxes assessed by governmental
authorities on oil, gas and NGL revenues are presented
separately from such revenues as production taxes in the
statement of operations.
Devon follows the sales method of accounting for gas production
imbalances. The volumes of gas sold may differ from the volumes
to which Devon is entitled based on its interests in the
properties. These differences create imbalances that are
recognized as a liability only when the estimated remaining
reserves will not be sufficient to enable the underproduced
owner to recoup its entitled share through production. The
liability is priced based on current market prices. No
receivables are recorded for those wells where Devon has taken
less than its share of production unless all revenue recognition
criteria are met. If an imbalance exists at the time the
wells’ reserves are depleted, settlements are made among
the joint interest owners under a variety of arrangements.
Marketing and midstream revenues are recorded at the time
products are sold or services are provided to third parties at a
fixed or determinable price, delivery or performance has
occurred, title has transferred and collectibility of the
revenue is probable. Revenues and expenses attributable to gas
and NGL purchase, transportation and processing contracts are
reported on a gross basis when Devon takes title to the products
and has risks and rewards of ownership.
Revenue
Recognition and Gas Balancing
Oil, gas and NGL revenues are recognized when production is sold
to a purchaser at a fixed or determinable price, delivery has
occurred, title has transferred and collectability of the
revenue is probable. Delivery occurs and title is transferred
when production has been delivered to a pipeline, railcar or
truck or a tanker lifting has occurred. Cash received relating
to future production is deferred and recognized when all revenue
recognition criteria are met. Taxes assessed by governmental
authorities on oil, gas and NGL revenues are presented
separately from such revenues as production taxes in the
statement of operations.
Devon follows the sales method of accounting for gas production
imbalances. The volumes of gas sold may differ from the volumes
to which Devon is entitled based on its interests in the
properties. These differences create imbalances that are
recognized as a liability only when the estimated remaining
reserves will not be sufficient to enable the underproduced
owner to recoup its entitled share through production. The
liability is priced based on current market prices. No
receivables are recorded for those wells where Devon has taken
less than its share of production unless all revenue recognition
criteria are met. If an imbalance exists at the time the
wells’ reserves are depleted, settlements are made among
the joint interest owners under a variety of arrangements.
Marketing and midstream revenues are recorded at the time
products are sold or services are provided to third parties at a
fixed or determinable price, delivery or performance has
occurred, title has transferred and collectibility of the
revenue is probable. Revenues and expenses attributable to gas
and NGL purchase, transportation and processing contracts are
reported on a gross basis when Devon takes title to the products
and has risks and rewards of ownership.
Revenue Recognition and Gas Balancing Oil, gas and NGL revenues are recognized when production is sold to a purchaser at a fixed or determinable price, delivery has occurred, title has transferred and collectability of the revenue is probable. Delivery occurs and title is transferred when production has been delivered to a pipeline, railcar or truck or a tanker lifting has occurred. Cash received relating to future production is deferred and recognized when all revenue recognition criteria are met. Taxes assessed by governmental authorities on oil, gas and NGL revenues are presented separately from such revenues as production taxes in the statement of operations. Devon follows the sales method of accounting for gas production imbalances. The volumes of gas sold may differ from the volumes to which Devon is entitled based on its interests in the properties. These differences create imbalances that are recognized as a liability only when the estimated remaining reserves will not be sufficient to enable the underproduced owner to recoup its entitled share through production. The liability is priced based on current market prices. No receivables are recorded for those wells where Devon has taken less than its share of production unless all revenue recognition criteria are met. If an imbalance exists at the time the wells’ reserves are depleted, settlements are made among the joint interest owners under a variety of arrangements. Marketing and midstream revenues are recorded at the time products are sold or services are provided to third parties at a fixed or determinable price, delivery or performance has occurred, title has transferred and collectibility of the revenue is probable. Revenues and expenses attributable to gas and NGL purchase, transportation and processing contracts are reported on a gross basis when Devon takes title to the products and has risks and rewards of ownership. Revenue Recognition and Gas Balancing Oil, gas and NGL revenues are recognized when production is sold to a purchaser at a fixed or determinable price, delivery has occurred, title has transferred and collectability of the revenue is probable. Delivery occurs and title is transferred when production has been delivered to a pipeline, railcar or truck or a tanker lifting has occurred. Cash received relating to future production is deferred and recognized when all revenue recognition criteria are met. Taxes assessed by governmental authorities on oil, gas and NGL revenues are presented separately from such revenues as production taxes in the statement of operations. Devon follows the sales method of accounting for gas production imbalances. The volumes of gas sold may differ from the volumes to which Devon is entitled based on its interests in the properties. These differences create imbalances that are recognized as a liability only when the estimated remaining reserves will not be sufficient to enable the underproduced owner to recoup its entitled share through production. The liability is priced based on current market prices. No receivables are recorded for those wells where Devon has taken less than its share of production unless all revenue recognition criteria are met. If an imbalance exists at the time the wells’ reserves are depleted, settlements are made among the joint interest owners under a variety of arrangements. Marketing and midstream revenues are recorded at the time products are sold or services are provided to third parties at a fixed or determinable price, delivery or performance has occurred, title has transferred and collectibility of the revenue is probable. Revenues and expenses attributable to gas and NGL purchase, transportation and processing contracts are reported on a gross basis when Devon takes title to the products and has risks and rewards of ownership. These excerpts taken from the DVN 10-K filed Jun 9, 2008. Revenue
Recognition and Gas Balancing
Oil, gas and NGL revenues are recognized when production is sold
to a purchaser at a fixed or determinable price, delivery has
occurred, title has transferred and collectibility of the
revenue is probable. Delivery occurs and title is transferred
when production has been delivered to a pipeline or truck or a
tanker lifting has occurred. Cash received relating to future
production is deferred and recognized when all revenue
recognition criteria are met. Taxes assessed by governmental
authorities on oil, gas and NGL revenues are presented
separately from such revenues as production taxes in the
statement of operations.
Devon follows the sales method of accounting for gas production
imbalances. The volumes of gas sold may differ from the volumes
to which Devon is entitled based on its interests in the
properties. These differences create imbalances that are
recognized as a liability only when the estimated remaining
reserves will not be sufficient to enable the underproduced
owner to recoup its entitled share through production. The
liability is priced based on current market prices. No
receivables are recorded for those wells where Devon has taken
less than its share of production unless all revenue recognition
criteria are met. If an imbalance exists at
Table of Contents
DEVON
ENERGY CORPORATION AND SUBSIDIARIES
NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS —
(Continued)
the time the wells’ reserves are depleted, settlements are
made among the joint interest owners under a variety of
arrangements.
Marketing and midstream revenues are recorded at the time
products are sold or services are provided to third parties at a
fixed or determinable price, delivery or performance has
occurred, title has transferred and collectibility of the
revenue is probable. Revenues and expenses attributable to
Devon’s gas and NGL purchase and processing contracts are
reported on a gross basis when Devon takes title to the products
and has risks and rewards of ownership. The gas purchased under
these contracts is processed in Devon-owned plants.
Revenue Recognition and Gas Balancing Oil, gas and NGL revenues are recognized when production is sold to a purchaser at a fixed or determinable price, delivery has occurred, title has transferred and collectibility of the revenue is probable. Delivery occurs and title is transferred when production has been delivered to a pipeline or truck or a tanker lifting has occurred. Cash received relating to future production is deferred and recognized when all revenue recognition criteria are met. Taxes assessed by governmental authorities on oil, gas and NGL revenues are presented separately from such revenues as production taxes in the statement of operations. Devon follows the sales method of accounting for gas production imbalances. The volumes of gas sold may differ from the volumes to which Devon is entitled based on its interests in the properties. These differences create imbalances that are recognized as a liability only when the estimated remaining reserves will not be sufficient to enable the underproduced owner to recoup its entitled share through production. The liability is priced based on current market prices. No receivables are recorded for those wells where Devon has taken less than its share of production unless all revenue recognition criteria are met. If an imbalance exists at
Table of ContentsDEVON ENERGY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) the time the wells’ reserves are depleted, settlements are made among the joint interest owners under a variety of arrangements. Marketing and midstream revenues are recorded at the time products are sold or services are provided to third parties at a fixed or determinable price, delivery or performance has occurred, title has transferred and collectibility of the revenue is probable. Revenues and expenses attributable to Devon’s gas and NGL purchase and processing contracts are reported on a gross basis when Devon takes title to the products and has risks and rewards of ownership. The gas purchased under these contracts is processed in Devon-owned plants. These excerpts taken from the DVN 10-K filed Feb 28, 2008. Revenue
Recognition and Gas Balancing
Oil, gas and NGL revenues are recognized when production is sold
to a purchaser at a fixed or determinable price, delivery has
occurred, title has transferred and collectibility of the
revenue is probable. Delivery occurs and title is transferred
when production has been delivered to a pipeline or truck or a
tanker lifting has occurred. Cash received relating to future
production is deferred and recognized when all revenue
recognition criteria are met. Taxes assessed by governmental
authorities on oil, gas and NGL revenues are presented
separately from such revenues as production taxes in the
statement of operations.
Devon follows the sales method of accounting for gas production
imbalances. The volumes of gas sold may differ from the volumes
to which Devon is entitled based on its interests in the
properties. These differences create imbalances that are
recognized as a liability only when the estimated remaining
reserves will not be sufficient to enable the underproduced
owner to recoup its entitled share through production. The
liability is priced based on current market prices. No
receivables are recorded for those wells where Devon has taken
less than its share of production unless all revenue recognition
criteria are met. If an imbalance exists at
Table of Contents
DEVON
ENERGY CORPORATION AND SUBSIDIARIES
NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS —
(Continued)
the time the wells’ reserves are depleted, settlements are
made among the joint interest owners under a variety of
arrangements.
Marketing and midstream revenues are recorded at the time
products are sold or services are provided to third parties at a
fixed or determinable price, delivery or performance has
occurred, title has transferred and collectibility of the
revenue is probable. Revenues and expenses attributable to
Devon’s gas and NGL purchase and processing contracts are
reported on a gross basis when Devon takes title to the products
and has risks and rewards of ownership. The gas purchased under
these contracts is processed in Devon-owned plants.
Revenue Recognition and Gas Balancing Oil, gas and NGL revenues are recognized when production is sold to a purchaser at a fixed or determinable price, delivery has occurred, title has transferred and collectibility of the revenue is probable. Delivery occurs and title is transferred when production has been delivered to a pipeline or truck or a tanker lifting has occurred. Cash received relating to future production is deferred and recognized when all revenue recognition criteria are met. Taxes assessed by governmental authorities on oil, gas and NGL revenues are presented separately from such revenues as production taxes in the statement of operations. Devon follows the sales method of accounting for gas production imbalances. The volumes of gas sold may differ from the volumes to which Devon is entitled based on its interests in the properties. These differences create imbalances that are recognized as a liability only when the estimated remaining reserves will not be sufficient to enable the underproduced owner to recoup its entitled share through production. The liability is priced based on current market prices. No receivables are recorded for those wells where Devon has taken less than its share of production unless all revenue recognition criteria are met. If an imbalance exists at
Table of ContentsDEVON ENERGY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) the time the wells’ reserves are depleted, settlements are made among the joint interest owners under a variety of arrangements. Marketing and midstream revenues are recorded at the time products are sold or services are provided to third parties at a fixed or determinable price, delivery or performance has occurred, title has transferred and collectibility of the revenue is probable. Revenues and expenses attributable to Devon’s gas and NGL purchase and processing contracts are reported on a gross basis when Devon takes title to the products and has risks and rewards of ownership. The gas purchased under these contracts is processed in Devon-owned plants. This excerpt taken from the DVN 10-K filed Feb 28, 2007. Revenue
Recognition and Gas Balancing
Oil, gas and NGL revenues are recognized when production is sold
to a purchaser at a fixed or determinable price, delivery has
occurred, title has transferred and collectibility of the
revenue is probable. Delivery occurs and title is transferred
when production has been delivered to a pipeline or truck or a
tanker lifting has occurred. Cash received relating to future
production is deferred and recognized when all revenue
recognition criteria are met. Taxes assessed by governmental
authorities on oil, gas and NGL revenues are presented
separately from such revenues as production taxes in the
statement of operations.
Devon follows the sales method of accounting for gas production
imbalances. The volumes of gas sold may differ from the volumes
to which Devon is entitled based on its interests in the
properties. These differences create imbalances that are
recognized as a liability only when the estimated remaining
reserves will not be sufficient to enable the under produced
owner to recoup its entitled share through production. If an
imbalance exists at the time the wells’ reserves are
depleted, settlements are made among the joint interest owners
under a variety of arrangements. The liability is priced based
on current market prices. No receivables
Table of Contents
DEVON
ENERGY CORPORATION AND SUBSIDIARIES
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
are recorded for those wells where Devon has taken less than its
share of production unless all revenue recognition criteria are
met.
Marketing and midstream revenues are recorded at the time
products are sold or services are provided to third parties at a
fixed or determinable price, delivery or performance has
occurred, title has transferred and collectibility of the
revenue is probable. Revenues and expenses attributable to
Devon’s gas and NGL purchase and processing contracts are
reported on a gross basis since Devon takes title to the
products and has risks and rewards of ownership. The gas
purchased under these contracts is processed in Devon-owned
plants.
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