Segment Information

9 Months Ended

Sep. 30, 2020

We have two reportable operating segments. Both of these segments are organized and managed based upon geographic location and the nature of the products and services offered.

•United States (“U.S.”) – explores for, produces and markets crude oil and condensate, NGLs and natural gas in the United States

•International (“Int’l”) – explores for, produces and markets crude oil and condensate, NGLs and natural gas outside of the United States as well as produces and markets products manufactured from natural gas, such as LNG and methanol, in Equatorial Guinea (“E.G.”)

Segment income represents income which excludes certain items not allocated to our operating segments, net of income taxes. A portion of our corporate and operations general and administrative support costs are not allocated to the operating segments. These unallocated costs primarily consist of employment costs (including pension effects), professional services, facilities and other costs associated with corporate and operations support activities. Additionally, items which affect comparability such as: gains or losses on dispositions, impairments of proved property, goodwill, and equity method investments, unrealized gains or losses on commodity and interest rate derivative instruments, effects of pension settlements and curtailments, or other items (as determined by the chief operating decision maker (“CODM”)) are not allocated to operating segments.


	Three Months Ended September 30, 2020
(In millions)	U.S.		Int’l		Not Allocated to Segments			Total
Revenues from contracts with customers	$	722	$	39	$	—		$	761
Net gain (loss) on commodity derivatives	35		—		(36)		(b)	(1)
Income (loss) from equity method investments	—		8		(18)			(10)
Net gain on disposal of assets	—		—		1			1
Other income	1		1		1			3
Less costs and expenses:
Production	118		11		—			129
Shipping, handling and other operating	154		1		28			183
Exploration	21		—		6			27
Depreciation, depletion and amortization	530		19		5			554
Impairments	—		—		1			1
Taxes other than income	48		—		1			49
General and administrative	25		3		25			53
Net interest and other	—		—		62			62
Other net periodic benefit costs	—		—		6		(c)	6
Income tax provision (benefit)	(3)		6		4			7
Segment income (loss)	$	(135)	$	8	$	(190)		$	(317)
Total assets	$	16,396	$	1,104	$	1,163		$	18,663
Capital expenditures(a)	$	176	$	—	$	1		$	177

(a)Includes accruals.

(b)Unrealized loss on commodity derivative instruments (See Note 15).

(c)Includes pension settlement loss of $9 million (See Note 20).


	Three Months Ended September 30, 2019
(In millions)	U.S.		Int’l		Not Allocated to Segments			Total
Revenues from contracts with customers	$	1,172	$	77	$	—		$	1,249
Net gain on commodity derivatives	14		—		33		(b)	47
Income from equity method investments	—		21		—			21
Net gain on disposal of assets	—		—		22		(c)	22
Other income	3		2		1			6
Less costs and expenses:
Production	147		16		—			163
Shipping, handling and other operating	137		1		—			138
Exploration	22		—		—			22
Depreciation, depletion and amortization	589		25		8			622

Taxes other than income	80		—		1			81
General and administrative	34		5		43			82
Net interest and other	—		—		64			64
Other net periodic benefit credit	—		—		(2)			(2)
Income tax provision	—		10		—			10
Segment income (loss)	$	180	$	43	$	(58)		$	165
Total assets	$	17,722	$	2,003	$	648		$	20,373
Capital expenditures(a)	$	667	$	1	$	7		$	675

(a)Includes accruals.

(b)Unrealized gain on commodity derivative instruments (See Note 15).

(c)Primarily related to the sale of our U.K. business (see Note 4).


	Nine Months Ended September 30, 2020
(In millions)	U.S.		Int’l		Not Allocated to Segments			Total
Revenues from contracts with customers	$	2,154	$	121	$	—		$	2,275
Net gain on commodity derivatives	92		—		39		(b)	131
Loss from equity method investments	—		(4)		(170)		(c)	(174)
Net gain on disposal of assets	—		—		8			8
Other income	8		5		3			16
Less costs and expenses:
Production	375		43		—			418
Shipping, handling and other operating	385		5		42			432
Exploration	75		—		6			81
Depreciation, depletion and amortization	1,716		62		17			1,795
Impairments	—		—		98		(d)	98
Taxes other than income	144		—		1			145
General and administrative	89		10		118		(e)	217
Net interest and other	—		—		195			195
Other net periodic benefit credit	—		—		(1)		(f)	(1)
Income tax provision (benefit)	(10)		1		(2)			(11)
Segment income (loss)	$	(520)	$	1	$	(594)		$	(1,113)
Total assets	$	16,396	$	1,104	$	1,163		$	18,663
Capital expenditures(a)	$	874	$	—	$	10		$	884

(a)Includes accruals.

(b)Unrealized gain on commodity derivative instruments (See Note 15).

(c)Partial impairment of investment in equity method investee (See N ote 23).

(d)Includes the full impairment of the International reporting unit goodwill of $95 million (See Note 14).

(e)Includes severance expenses associated with workforce reductions of $15 million.

(f)Includes pension settlement loss of $25 million and pension curtailment gain of $17 million (See Note 20).


	Nine Months Ended September 30, 2019
(In millions)	U.S.		Int’l		Not Allocated to Segments			Total
Revenue from contracts with customers	$	3,434	$	396	$	—		$	3,830
Net gain (loss) on commodity derivatives	41		—		(69)		(b)	(28)
Income from equity method investments	—		63		—			63
Net gain on disposal of assets	—		—		56		(c)	56
Other income	8		7		39		(d)	54
Less costs and expenses:
Production	433		112		(2)			543
Shipping, handling and other operating	424		24		14			462
Exploration	107		—		—			107
Depreciation, depletion and amortization	1,664		97		20			1,781
Impairments	—		—		24		(e)	24
Taxes other than income	233		—		(1)			232
General and administrative	94		20		149			263
Net interest and other	—		—		177			177
Other net periodic benefit credit	—		(3)		(6)			(9)
Income tax provision (benefit)	1		16		(122)		(f)	(105)
Segment income (loss)	$	527	$	200	$	(227)		$	500
Total assets	$	17,722	$	2,003	$	648		$	20,373
Capital expenditures(a)	$	1,959	$	16	$	15		$	1,990

(a)Includes accruals.

(b)Unrealized loss on commodity derivative instruments (See Note 15).

(c)Primarily related to the sale of our working interest in the Droshky field (Gulf of Mexico) and the sale of our U.K. business (See No te 4).

(d)Primarily related to the indemnification of certain tax liabilities in connection with the 2010-2011 Federal Tax Audit.

(e)Primarily as a result of anticipated sales of certain non-core proved properties in our International and United States segments.

(f)Primarily relates to the settlement of the 2010-2011 Federal Tax Audit (See Note 7).