Asset Retirement Obligations

12 Months Ended

Dec. 31, 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:


		Year Ended December 31,
	2023			2022
		(in millions)
Beginning asset retirement obligations		$	477		$	354
Additions		7			8
Changes in estimates (a)		26			162

Liabilities settled		(67)			(62)
Accretion of discount		16			15
Ending asset retirement obligations		459			477
Less current portion of asset retirement obligations		90			82
Asset retirement obligations, long-term		$	369		$	395

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(a)Changes in estimates are determined based on several factors, including updating abandonment cost estimates using recent actual costs for abandonment activity, credit-adjusted risk-free discount rates, economic well life estimates and forecasted timing of abandoning wells.

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.