XML 34 R23.htm IDEA: XBRL DOCUMENT v3.22.2.2
Net Income Per Share and Stockholders' Equity
 9 Months Ended
Sep. 30, 2022
Earnings Per Share [Abstract]  
Net Income Per Share and Stockholders' Equity Net Income Per Share and Stockholders' Equity
Net income per share. The components of basic and diluted net income per share attributable to common stockholders are as follows:
 Three Months Ended September 30,
Nine Months Ended September 30,
 2022202120222021
 (in millions)
Net income attributable to common stockholders$1,984 $1,045 $6,364 $1,355 
Participating share-based earnings (a)(4)(3)(11)(4)
Basic net income attributable to common stockholders1,980 1,042 6,353 1,351 
Adjustment to after-tax interest expense to reflect the dilutive impact attributable to Convertible Notes
1 2 5 5 
Diluted net income attributable to common stockholders$1,981 $1,044 $6,358 $1,356 
Basic weighted average shares outstanding239 244 241 230 
Contingently issuable stock-based compensation— 1 — — 
Convertible Notes (b)
11 12 12 12 
Diluted weighted average shares outstanding250 257 253 242 
Net income per share attributable to common stockholders:
Basic$8.29 $4.27 $26.36 $5.88 
Diluted$7.93 $4.07 $25.11 $5.60 
______________________
(a)Unvested restricted stock awards represent participating securities because they participate in non-forfeitable dividends with the common equity owners of the Company. Participating share-based earnings represent the distributed and undistributed earnings of the Company attributable to the participating securities. Unvested restricted stock awards do not participate in undistributed net losses as they are not contractually obligated to do so. The dilutive effect of the reallocation of participating share-based earnings to diluted net income attributable to common stockholders was negligible.
(b)Diluted weighted average common shares outstanding includes the dilutive effect had the Company's Convertible Notes been converted as of the beginning of the three and nine months ended September 30, 2022, respectively. If converted by the holder, the Company may settle in cash, shares of the Company's common stock or a combination thereof, at the Company's election. See Note 7 for additional information.
Stockholders' equity. The Company's return of capital strategies include a base and variable dividend policy and a stock repurchase program. The Company's board of directors, at its sole discretion, may change its dividend policy and/or the Company's stock repurchase program based on the Company's outlook for commodity prices, liquidity, debt levels, capital resources, quarterly operating cash flows or other factors. Dividends declared by the board of directors and stock repurchased during the period are presented in the Company's consolidated statements of equity as dividends declared and purchases of treasury stock, respectively. Dividends paid and stock repurchased during the period are presented as cash used in financing activities in the Company's consolidated statements of cash flows. Dividends that are declared and have not been paid, if any, are included in other current liabilities in the consolidated balance sheets. Stock repurchased as part of a stock repurchase program are included as treasury stock in the consolidated balance sheets.
Dividends. Base and variable dividends declared by the board of directors for the three and nine months ended September 30, 2022 and 2021 are as follows:
BaseVariableTotalTotal
(per share)(per share)(per share)(in millions)
2022:
First quarter$0.78 $3.00 $3.78 $922 
Second quarter0.78 6.60 7.38 1,788 
Third quarter1.10 7.47 8.57 2,053 
$2.66 $17.07 $19.73 $4,763 
2021:
First quarter$0.56 $— $0.56 $122 
Second quarter0.56 — 0.56 138 
Third quarter0.56 1.51 2.07 508 
$1.68 $1.51 $3.19 $768 
The Company can provide no assurance that dividends will be authorized or declared in the future or as to the amount of any future dividends. See Note 17 for additional information.
Stock repurchase program. In February 2022, the Company's board of directors authorized a $4 billion common stock repurchase program. This authorization replaced the previously authorized $2 billion common stock repurchase program that had $841 million remaining in the program before being replaced with the $4 billion common stock repurchase program. Under this stock repurchase program, the Company may repurchase shares in accordance with applicable securities laws or pursuant to a trading plan meeting the requirements of Rule 10b5-1 under the Securities Act of 1934, which would permit the Company to repurchase shares at times that may otherwise be prohibited under the Company's insider trading policy.
Expenditures to acquire shares under the stock repurchase program are as follows:
Three Months Ended September 30,
Nine Months Ended September 30,
2022202120222021
(in millions)
Shares repurchased (a)$500 $— $1,249 $— 
______________________
(a)During the three and nine months ended September 30, 2022, 2.3 million and 5.5 million shares were repurchased under the stock repurchase program, respectively. No shares were repurchased under the stock repurchase program during the three and nine months ended September 30, 2021.
As of September 30, 2022, $2.8 billion remained available for use to repurchase shares under the Company's common stock repurchase program.