Asset Retirement Obligations

9 Months Ended

Sep. 30, 2023

Asset Retirement Obligation [Abstract]

The Company's asset retirement obligations primarily relate to the future plugging and abandonment of wells and related facilities. Market risk premiums associated with asset retirement obligations are estimated to represent a component of the Company's credit-adjusted risk-free rate that is utilized in the calculations of asset retirement obligations. The Company includes the current and noncurrent portions of asset retirement obligations in other current liabilities and other liabilities, respectively, in the consolidated balance sheets and expenditures are included as cash used in operating activities in the consolidated statements of cash flows.

Asset retirement obligations activity is as follows:


	Nine Months Ended September 30, 2023

	(in millions)
Beginning asset retirement obligations	$	477
Additions	4
Changes in estimates	(52)

Liabilities settled	(50)
Accretion of discount	12
Ending asset retirement obligations	391
Less current portion of asset retirement obligations	(107)
Asset retirement obligations, long-term	$	284

The Company's wells and related facilities abandonment costs generally approximate their estimated asset retirement obligations. Incremental plugging and abandonment costs for individual wells and related facilities that exceed their estimated asset retirement obligation are recorded in exploration and abandonment expense in the consolidated statements of operations.