Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Leases

Leases

As of December 31, 2021, the Company has one finance lease for its corporate headquarters office building. The Company's operating leases, as of December 31, 2021, are comprised of drilling rigs, storage tanks, equipment and buildings.

The Company's finance lease balances are as follows:

		As of December 31,
Type	Consolidated Balance Sheet Location	2021		2020
		(in millions)
Assets:
Finance lease right-of-use asset	Other property and equipment, net	$	500	$	528
Liabilities:
Finance lease liability, current	Other liabilities - current	$	18	$	17
Finance lease liability, noncurrent	Other liabilities - noncurrent	$	521	$	539

The components of lease costs, including amounts recoverable from joint operating partners, are as follows:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Finance lease cost:
Amortization of right-of-use asset	$	28	$	28	$	7
Interest on lease liability	16		17		4
Operating lease cost (a)	162		151		200
Short-term lease cost (b)	107		23		33
Variable lease cost (c)	59		27		73
Sublease income	(4)		—		—
	$	368	$	246	$	317

_____________________

(a)Represents straight-line lease costs associated with the Company's operating lease right-of-use assets.

(b)Represents costs associated with short-term leases (those with a contractual term of 12 months or less) that are not included in the consolidated balance sheets.

(c)Variable lease costs are primarily comprised of the non-lease service component of drilling rig commitments above the minimum required payments. Both the minimum required payments and the non-lease service component of the drilling rig commitments are capitalized as additions to oil and gas properties.

Cash flow information related to leases is as follows:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Operating cash flows:
Cash payments for operating, short-term and variable leases	$	131	$	83	$	103
Cash payments for interest on finance lease	$	16	$	17	$	4
Investing cash flows:
Cash payments for operating, short-term and variable leases (a)	$	191	$	130	$	180
Financing cash flows:
Cash payments for principal on finance lease	$	17	$	16	$	1

_____________________

(a)Represents costs associated with drilling operations that are capitalized as additions to oil and gas properties.

The changes in lease liabilities are as follows:

	Year Ended December 31, 2021				Year Ended December 31, 2020
	Operating		Finance		Operating		Finance
	(in millions)
Beginning lease liabilities	$	210	$	556	$	306	$	572
Liabilities assumed in exchange for new right-of-use    assets (a)	100		—		33		—
Liabilities assumed in the Parsley Acquisition	201		—		—		—
Liabilities assumed in the DoublePoint Acquisition	2		—		—		—
Contract modifications (b)	2		—		27		—
Liabilities settled	(158)		(17)		(163)		(16)
Accretion of discount on operating leases (c)	7		—		7		—
Ending lease liabilities (d)	$	364	$	539	$	210	$	556

______________________

(a)Represents noncash leasing activity. The weighted-average discount rate used to determine the present value of future operating and finance lease payments is 1.8 percent and 3.0 percent respectively, in 2021 and 2.5 percent and 3.0 percent, respectively, in 2020.

(b)Represents changes in lease liabilities due to modifications of original contract terms.

(c)Represents imputed interest on discounted future cash payments of operating leases.

(d)As of December 31, 2021, the weighted-average remaining lease term of the Company's operating and finance leases is six and 18 years, respectively, as compared to three and 19 years in 2020.

Maturities of lease liabilities are as follows:

	As of December 31, 2021
	Operating		Finance
	(in millions)
2022	$	131	$	34
2023	78		35
2024	44		35
2025	19		36
2026	21		36
Thereafter	98		528
Total lease payments	391		704
Less present value discount	(27)		(165)
Present value of lease liabilities	$	364	$	539

Leases

Leases

As of December 31, 2021, the Company has one finance lease for its corporate headquarters office building. The Company's operating leases, as of December 31, 2021, are comprised of drilling rigs, storage tanks, equipment and buildings.

The Company's finance lease balances are as follows:

		As of December 31,
Type	Consolidated Balance Sheet Location	2021		2020
		(in millions)
Assets:
Finance lease right-of-use asset	Other property and equipment, net	$	500	$	528
Liabilities:
Finance lease liability, current	Other liabilities - current	$	18	$	17
Finance lease liability, noncurrent	Other liabilities - noncurrent	$	521	$	539

The components of lease costs, including amounts recoverable from joint operating partners, are as follows:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Finance lease cost:
Amortization of right-of-use asset	$	28	$	28	$	7
Interest on lease liability	16		17		4
Operating lease cost (a)	162		151		200
Short-term lease cost (b)	107		23		33
Variable lease cost (c)	59		27		73
Sublease income	(4)		—		—
	$	368	$	246	$	317

_____________________

(a)Represents straight-line lease costs associated with the Company's operating lease right-of-use assets.

(b)Represents costs associated with short-term leases (those with a contractual term of 12 months or less) that are not included in the consolidated balance sheets.

(c)Variable lease costs are primarily comprised of the non-lease service component of drilling rig commitments above the minimum required payments. Both the minimum required payments and the non-lease service component of the drilling rig commitments are capitalized as additions to oil and gas properties.

Cash flow information related to leases is as follows:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Operating cash flows:
Cash payments for operating, short-term and variable leases	$	131	$	83	$	103
Cash payments for interest on finance lease	$	16	$	17	$	4
Investing cash flows:
Cash payments for operating, short-term and variable leases (a)	$	191	$	130	$	180
Financing cash flows:
Cash payments for principal on finance lease	$	17	$	16	$	1

_____________________

(a)Represents costs associated with drilling operations that are capitalized as additions to oil and gas properties.

The changes in lease liabilities are as follows:

	Year Ended December 31, 2021				Year Ended December 31, 2020
	Operating		Finance		Operating		Finance
	(in millions)
Beginning lease liabilities	$	210	$	556	$	306	$	572
Liabilities assumed in exchange for new right-of-use    assets (a)	100		—		33		—
Liabilities assumed in the Parsley Acquisition	201		—		—		—
Liabilities assumed in the DoublePoint Acquisition	2		—		—		—
Contract modifications (b)	2		—		27		—
Liabilities settled	(158)		(17)		(163)		(16)
Accretion of discount on operating leases (c)	7		—		7		—
Ending lease liabilities (d)	$	364	$	539	$	210	$	556

______________________

(a)Represents noncash leasing activity. The weighted-average discount rate used to determine the present value of future operating and finance lease payments is 1.8 percent and 3.0 percent respectively, in 2021 and 2.5 percent and 3.0 percent, respectively, in 2020.

(b)Represents changes in lease liabilities due to modifications of original contract terms.

(c)Represents imputed interest on discounted future cash payments of operating leases.

(d)As of December 31, 2021, the weighted-average remaining lease term of the Company's operating and finance leases is six and 18 years, respectively, as compared to three and 19 years in 2020.

Maturities of lease liabilities are as follows:

	As of December 31, 2021
	Operating		Finance
	(in millions)
2022	$	131	$	34
2023	78		35
2024	44		35
2025	19		36
2026	21		36
Thereafter	98		528
Total lease payments	391		704
Less present value discount	(27)		(165)
Present value of lease liabilities	$	364	$	539