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Net Income Per Share and Stockholders' Equity
3 Months Ended
Mar. 31, 2023
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 March 31,
 20232022
 (in millions, except per share data)
Net income attributable to common stockholders$1,222 $2,009 
Participating share-based earnings (a)(3)(5)
Basic net income attributable to common stockholders1,219 2,004 
Adjustment to after-tax interest expense to reflect the dilutive impact attributable to Convertible Notes
Diluted net income attributable to common stockholders$1,220 $2,005 
Basic weighted average shares outstanding235 243 
Convertible Notes (b)
13 
Diluted weighted average shares outstanding244 256 
Net income per share attributable to common stockholders:
Basic$5.19 $8.25 
Diluted$5.00 $7.85 
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(a)Unvested Equity 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 Equity 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 months ended March 31, 2023 and 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 payments of base and variable dividends and a stock repurchase program. The Board, at its sole discretion, may change its dividend practices 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 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 repurchases are included as treasury stock in the consolidated balance sheets.
Dividends. Base and variable dividends declared by the Board during the three months ended March 31, 2023 and 2022 are as follows:
BaseVariableTotalTotal
(per share)(per share)(per share)(in millions)
2023:
First quarter$1.10 $4.48 $5.58 $1,314 
2022:
First quarter$0.78 $3.00 $3.78 $922 
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 16 for additional information.
Stock repurchase programs. In February 2022, the Board authorized a $4 billion common stock repurchase program. This authorization replaced the previously authorized $2 billion common stock repurchase program, which had $841 million remaining at the time it was replaced.
Expenditures to acquire shares under the stock repurchase program are as follows:
Three Months Ended March 31,
20232022
(in millions)
Shares repurchased (a)$500 $250 
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(a)During the three months ended March 31, 2023, 2.4 million shares were repurchased under the stock repurchase program, as compared to 1.1 million shares repurchased during the three months ended March 31, 2022. Expenditures for share repurchases during the three months ended March 31, 2023 exclude the one percent excise tax on all stock repurchases after December 31, 2022.
In April 2023, the Board authorized a new $4 billion common stock repurchase program to replace the aforementioned $4 billion common stock repurchase program, which had $1.9 billion remaining at the time it was replaced. As was the case with the aforementioned stock repurchase programs, 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.