QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
☒ | Accelerated filer | ☐ | ||||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
Emerging growth company |
Page | ||||||||
Definitions of Certain Terms and Conventions Used Herein | ||||||||
Cautionary Statement Concerning Forward-Looking Statements | ||||||||
PART I. FINANCIAL INFORMATION | ||||||||
Item 1. | Financial Statements | |||||||
Consolidated Balance Sheets | ||||||||
Consolidated Statements of Operations | ||||||||
Consolidated Statements of Equity | ||||||||
Consolidated Statements of Cash Flows | ||||||||
Notes to Consolidated Financial Statements | ||||||||
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | |||||||
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | |||||||
Item 4. | Controls and Procedures | |||||||
PART II. OTHER INFORMATION | ||||||||
Item 1. | Legal Proceedings | |||||||
Item 1A. | Risk Factors | |||||||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | |||||||
Item 5. | Other Information | |||||||
Item 6. | Exhibits | |||||||
Signatures | ||||||||
March 31, 2024 | December 31, 2023 | ||||||||||
(Unaudited) | |||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net | |||||||||||
Inventories | |||||||||||
Investment in affiliate | |||||||||||
Prepaids and other | |||||||||||
Total current assets | |||||||||||
Oil and gas properties, using the successful efforts method of accounting: | |||||||||||
Proved properties | |||||||||||
Unproved properties | |||||||||||
Accumulated depletion, depreciation and amortization | ( | ( | |||||||||
Total oil and gas properties, net | |||||||||||
Other property and equipment, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Goodwill | |||||||||||
Other assets | |||||||||||
$ | $ | ||||||||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable: | |||||||||||
Trade | $ | $ | |||||||||
Due to affiliates | |||||||||||
Interest payable | |||||||||||
Income taxes payable | |||||||||||
Current portion of debt | |||||||||||
Derivatives | |||||||||||
Operating leases | |||||||||||
Other | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Derivatives | |||||||||||
Deferred income taxes | |||||||||||
Operating leases | |||||||||||
Other liabilities | |||||||||||
Equity: | |||||||||||
Common shares, $ | |||||||||||
Additional paid-in capital | |||||||||||
Treasury shares, at cost; December 31, 2023, respectively | ( | ( | |||||||||
Retained earnings | |||||||||||
Total equity | |||||||||||
Commitments and contingencies | |||||||||||
$ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Revenues and other income: | |||||||||||
Oil and gas | $ | $ | |||||||||
Sales of purchased commodities | |||||||||||
Interest and other income (loss), net | ( | ||||||||||
Derivative loss, net | ( | ( | |||||||||
Gain on disposition of assets, net | |||||||||||
Costs and expenses: | |||||||||||
Oil and gas production | |||||||||||
Production and ad valorem taxes | |||||||||||
Depletion, depreciation and amortization | |||||||||||
Purchased commodities | |||||||||||
Exploration and abandonments | |||||||||||
General and administrative | |||||||||||
Accretion of discount on asset retirement obligations | |||||||||||
Interest | |||||||||||
Other | |||||||||||
Income before income taxes | |||||||||||
Income tax provision | ( | ( | |||||||||
Net income attributable to common shareholders | $ | $ | |||||||||
Net income per share attributable to common shareholders: | |||||||||||
Basic | $ | $ | |||||||||
Diluted | $ | $ | |||||||||
Weighted average shares outstanding: | |||||||||||
Basic | |||||||||||
Diluted | |||||||||||
Dividends declared per share | $ | $ | |||||||||
Shares Outstanding | Common Shares | Additional Paid-in Capital | Treasury Shares | Retained Earnings | Total Equity | ||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Balance as of December 31, 2023 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||
Dividends declared ($ | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Convertible senior note conversions: | |||||||||||||||||||||||||||||||||||
Conversion premium | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Capped call proceeds | — | — | — | — | |||||||||||||||||||||||||||||||
Issuance fees and deferred taxes | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Purchases of treasury shares | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Share-based compensation: | |||||||||||||||||||||||||||||||||||
Vested compensation awards | — | — | — | — | |||||||||||||||||||||||||||||||
Compensation costs included in net income | — | — | — | — | |||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Balance as of March 31, 2024 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||
Shares Outstanding | Common Shares | Additional Paid-in Capital | Treasury Shares | Retained Earnings | Total Equity | ||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Balance as of December 31, 2022 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||
Dividends declared ($ | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Convertible senior note conversions: | |||||||||||||||||||||||||||||||||||
Conversion premium | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Capped call proceeds | — | — | — | — | |||||||||||||||||||||||||||||||
Issuance fees and deferred taxes | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Purchases of treasury shares | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Share-based compensation: | |||||||||||||||||||||||||||||||||||
Vested compensation awards | — | — | — | — | |||||||||||||||||||||||||||||||
Compensation costs included in net income | — | — | — | — | |||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Balance as of March 31, 2023 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depletion, depreciation and amortization | |||||||||||
Exploration expenses | |||||||||||
Deferred income taxes | |||||||||||
Gain on disposition of assets, net | ( | ( | |||||||||
Accretion of discount on asset retirement obligations | |||||||||||
Interest expense | |||||||||||
Derivative-related activity | |||||||||||
Amortization of share-based compensation | |||||||||||
Investment valuation adjustments | |||||||||||
Other | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | ( | ||||||||||
Inventories | ( | ( | |||||||||
Other assets | ( | ( | |||||||||
Accounts payable | ( | ( | |||||||||
Interest payable | ( | ( | |||||||||
Income taxes payable | |||||||||||
Other liabilities | |||||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Proceeds from disposition of assets | |||||||||||
Additions to oil and gas properties | ( | ( | |||||||||
Additions to other assets and other property and equipment | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from borrowings and issuance of debt, net of discount | |||||||||||
Repayment of debt | ( | ( | |||||||||
Proceeds from capped call on convertible notes | |||||||||||
Payments of other liabilities | ( | ( | |||||||||
Payments of financing fees | ( | ||||||||||
Purchases of treasury shares | ( | ( | |||||||||
Dividends paid | ( | ( | |||||||||
Net cash used in financing activities | ( | ( | |||||||||
Net increase in cash and cash equivalents | |||||||||||
Cash and cash equivalents, beginning of period | |||||||||||
Cash and cash equivalents, end of period | $ | $ | |||||||||
As of March 31, 2024 | |||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Investment in affiliate | $ | $ | $ | $ | |||||||||||||||||||
Deferred compensation plan assets | |||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Conversion option derivatives | $ | $ | $ | $ | |||||||||||||||||||
Marketing derivatives | |||||||||||||||||||||||
$ | $ | $ | $ |
As of December 31, 2023 | |||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Investment in affiliate | $ | $ | $ | $ | |||||||||||||||||||
Deferred compensation plan assets | |||||||||||||||||||||||
Conversion option derivatives | |||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Marketing derivatives | $ | $ | $ | $ | |||||||||||||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(in millions) | |||||||||||
Investment in affiliate valuation adjustment | $ | ( | $ | ( | |||||||
Deferred compensation plan asset valuation adjustment | $ | $ | ( | ||||||||
Derivative loss, net: | |||||||||||
Marketing derivatives: | |||||||||||
Noncash derivative loss | $ | ( | $ | ( | |||||||
Cash payments on settled derivatives | ( | ( | |||||||||
Total marketing derivative loss | ( | ( | |||||||||
Conversion option derivatives: | |||||||||||
Noncash derivative loss, net | ( | ||||||||||
Cash receipts (payments) on settled derivatives, net | ( | ||||||||||
Total conversion option derivative gain (loss), net | ( | ||||||||||
$ | ( | $ | ( | ||||||||
As of March 31, 2024 | ||||||||||||||||||||||||||
Type | Consolidated Balance Sheet Location | Fair Value | Gross Amounts Offset in the Consolidated Balance Sheet | Net Fair Value Presented in the Consolidated Balance Sheet | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Marketing derivatives | $ | $ | $ | |||||||||||||||||||||||
Conversion option derivatives | Derivatives - current | $ | $ | $ | ||||||||||||||||||||||
Marketing derivatives | $ | $ | $ | |||||||||||||||||||||||
As of December 31, 2023 | ||||||||||||||||||||||||||
Type | Consolidated Balance Sheet Location | Fair Value | Gross Amounts Offset in the Consolidated Balance Sheet | Net Fair Value Presented in the Consolidated Balance Sheet | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Conversion option derivatives | Prepaids and other | $ | $ | $ | ||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Marketing derivatives | $ | $ | $ | |||||||||||||||||||||||
Marketing derivatives | $ | $ | $ |
As of March 31, 2024 | As of December 31, 2023 | ||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Cash and cash equivalents (a) | $ | $ | $ | $ | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Current portion of debt: | |||||||||||||||||||||||
Convertible senior notes (b) | $ | $ | $ | $ | |||||||||||||||||||
Long-term debt: | |||||||||||||||||||||||
Convertible senior notes (b) | $ | $ | $ | $ | |||||||||||||||||||
Senior notes (b) | $ | $ | $ | $ | |||||||||||||||||||
Three Months Ended March 31, 2024 | |||||
(in millions) | |||||
Beginning capitalized exploratory well and project costs | $ | ||||
Additions to exploratory well and project costs pending the determination of proved reserves | |||||
Reclassifications due to determination of proved reserves | ( | ||||
Ending capitalized exploratory well and project costs | $ |
As of March 31, 2024 | As of December 31, 2023 | ||||||||||
(in millions, except project counts) | |||||||||||
One year or less | $ | $ | |||||||||
More than one year | |||||||||||
$ | $ | ||||||||||
Number of projects with exploratory well costs that have been suspended for a period greater than one year |
As of March 31, 2024 | As of December 31, 2023 | ||||||||||
(in millions) | |||||||||||
Outstanding debt principal balances: | |||||||||||
$ | $ | ||||||||||
Issuance costs and discounts, net | ( | ( | |||||||||
Total debt | |||||||||||
Less current portion of debt | |||||||||||
Long-term debt | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(in millions) | |||||||||||
Cash payments: | |||||||||||
Principal repayments | $ | $ | |||||||||
Conversion premiums | |||||||||||
Conversion option derivative payments, net | — | ||||||||||
Cash payments, net | $ | $ | |||||||||
Cash receipts: | |||||||||||
Capped Call proceeds | $ | $ | |||||||||
Conversion option derivative receipts, net | — | ||||||||||
Cash receipts, net | $ | $ | |||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(in millions) | |||||||||||
Equity Awards | $ | $ | |||||||||
Liability Awards (a) | |||||||||||
Performance Awards | |||||||||||
ESPP | |||||||||||
$ | $ | ||||||||||
Capitalized share-based compensation expense | $ | $ | |||||||||
Three Months Ended March 31, 2024 | |||||||||||||||||
Equity Awards | Liability Awards | Performance Awards (a) | |||||||||||||||
Beginning awards | |||||||||||||||||
Awards granted | |||||||||||||||||
Awards forfeited | ( | ( | |||||||||||||||
Awards vested (b) | ( | ( | |||||||||||||||
Ending awards |
Three Months Ended March 31, 2024 | |||||
(in millions) | |||||
Beginning asset retirement obligations | $ | ||||
Additions | |||||
Liabilities settled | ( | ||||
Accretion of discount | |||||
Ending asset retirement obligations | |||||
Less current portion of asset retirement obligations | ( | ||||
Asset retirement obligations, long-term | $ | ||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(in millions) | |||||||||||
Oil sales | $ | $ | |||||||||
NGL sales | |||||||||||
Gas sales | |||||||||||
Total oil and gas revenues | |||||||||||
Sales of purchased oil | |||||||||||
Sales of purchased gas | |||||||||||
Total sales of purchased commodities | |||||||||||
$ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(in millions) | |||||||||||
ExxonMobil merger-related costs (a) | $ | $ | |||||||||
Unoccupied facilities expense (b) | |||||||||||
Legal and environmental contingencies (Note 9) | |||||||||||
Impairment of long-lived assets (Note 4) | |||||||||||
Other | |||||||||||
$ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(in millions) | |||||||||||
Pressure pumping related service charges | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(in millions, except tax rates) | |||||||||||
Current tax provision | $ | $ | |||||||||
Deferred tax provision | |||||||||||
$ | $ | ||||||||||
Effective tax rate | % | % |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(in millions, except per share data) | |||||||||||
Net income attributable to common shareholders | $ | $ | |||||||||
Participating share-based earnings (a) | ( | ( | |||||||||
Basic net income attributable to common shareholders | |||||||||||
Adjustment to after-tax interest expense to reflect the dilutive impact attributable to Convertible Notes | |||||||||||
Diluted net income attributable to common shareholders | $ | $ | |||||||||
Basic weighted average shares outstanding | |||||||||||
Convertible Notes (b) | |||||||||||
Diluted weighted average shares outstanding | |||||||||||
Net income per share attributable to common shareholders: | |||||||||||
Basic | $ | $ | |||||||||
Diluted | $ | $ |
Base | Variable | Total | Total | ||||||||||||||||||||
(per share) | (per share) | (per share) | (in millions) | ||||||||||||||||||||
2024: | |||||||||||||||||||||||
First quarter | $ | $ | $ | $ | |||||||||||||||||||
2023: | |||||||||||||||||||||||
First quarter | $ | $ | $ | $ | |||||||||||||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(in millions) | |||||||||||
Shares repurchased (a) | $ | $ |
Three Months Ended March 31, 2024 | |||||||||||
Development | Exploration/Extension | ||||||||||
Beginning wells in progress | 52 | 273 | |||||||||
Wells spud | 43 | 93 | |||||||||
Successful wells | (7) | (131) | |||||||||
Ending wells in progress | 88 | 235 | |||||||||
Three Months Ended March 31, 2024 | |||||
( in millions) | |||||
Proved property acquisition costs | $ | 6 | |||
Unproved property acquisitions | 20 | ||||
Exploration/extension costs | 767 | ||||
Development costs | 302 | ||||
Asset retirement obligations | 1 | ||||
$ | 1,096 |
Three Months Ended March 31, | |||||||||||||||||
2024 | 2023 | Change | |||||||||||||||
(in millions, except volumes) | |||||||||||||||||
Oil and gas revenues | $ | 3,287 | $ | 3,166 | $ | 121 | |||||||||||
Average daily sales volumes: | |||||||||||||||||
Oil (Bbls) | 383,541 | 361,316 | 6 | % | |||||||||||||
NGLs (Bbls) | 192,640 | 167,486 | 15 | % | |||||||||||||
Gas (Mcf) | 1,030,807 | 909,831 | 13 | % | |||||||||||||
Total (BOE) | 747,981 | 680,440 | 10 | % | |||||||||||||
Liquids percentage of total production | 77 | % | 78 | % | (1) | % |
Three Months Ended March 31, | |||||||||||||||||
2024 | 2023 | Change | |||||||||||||||
Oil price per Bbl | $ | 76.86 | $ | 75.15 | 2 | % | |||||||||||
NGL price per Bbl | $ | 24.49 | $ | 27.30 | (10 | %) | |||||||||||
Gas price per Mcf | $ | 1.87 | $ | 3.79 | (51 | %) | |||||||||||
Price per BOE | $ | 48.29 | $ | 51.69 | (7 | %) |
Three Months Ended March 31, | |||||||||||||||||
2024 | 2023 | Change | |||||||||||||||
(in millions) | |||||||||||||||||
Sales of purchased commodities | $ | 1,616 | $ | 1,431 | $ | 185 | |||||||||||
Purchased commodities expense | 1,648 | 1,485 | 163 | ||||||||||||||
$ | (32) | $ | (54) | $ | 22 |
Three Months Ended March 31, | |||||||||||||||||
2024 | 2023 | Change | |||||||||||||||
(in millions) | |||||||||||||||||
Interest and other income (loss), net | $ | 28 | $ | (37) | $ | 65 |
Three Months Ended March 31, | |||||||||||||||||
2024 | 2023 | Change | |||||||||||||||
(in millions) | |||||||||||||||||
Marketing derivatives: | |||||||||||||||||
Noncash derivative loss | $ | (95) | $ | (36) | $ | (59) | |||||||||||
Cash payments on settled derivatives | (20) | (15) | (5) | ||||||||||||||
Total marketing derivative loss | (115) | (51) | (64) | ||||||||||||||
Conversion option derivatives: | |||||||||||||||||
Noncash derivative loss, net | (3) | — | (3) | ||||||||||||||
Cash receipts (payments) on settled derivatives, net | (4) | 7 | (11) | ||||||||||||||
Total conversion option derivative gain (loss), net | (7) | 7 | (14) | ||||||||||||||
$ | (122) | $ | (44) | $ | (78) |
Three Months Ended March 31, | |||||||||||||||||
2024 | 2023 | Change | |||||||||||||||
(in millions) | |||||||||||||||||
Gain on disposition of assets, net | $ | 2 | $ | 25 | $ | (23) | |||||||||||
Three Months Ended March 31, | |||||||||||||||||
2024 | 2023 | Change | |||||||||||||||
(in millions, except per BOE) | |||||||||||||||||
Oil and gas production costs | $ | 598 | $ | 455 | $ | 143 | |||||||||||
Production costs per BOE: | |||||||||||||||||
Lease operating expense (a) | $ | 4.65 | $ | 4.10 | 13 | % | |||||||||||
Gathering, processing and transportation expense (b) | 3.31 | 2.94 | 13 | % | |||||||||||||
Workover costs (a) | 1.31 | 1.16 | 13 | % | |||||||||||||
Net natural gas plant income (c) | (0.48) | (0.77) | (38 | %) | |||||||||||||
$ | 8.79 | $ | 7.43 | 18 | % |
Three Months Ended March 31, | |||||||||||||||||
2024 | 2023 | Change | |||||||||||||||
(in millions, except per BOE) | |||||||||||||||||
Production and ad valorem taxes | $ | 206 | $ | 208 | $ | (2) | |||||||||||
Production and ad valorem taxes per BOE: | |||||||||||||||||
Production taxes per BOE | $ | 2.23 | $ | 2.46 | (9 | %) | |||||||||||
Ad valorem taxes per BOE | 0.80 | 0.93 | (14 | %) | |||||||||||||
$ | 3.03 | $ | 3.39 | (11 | %) |
Three Months Ended March 31, | |||||||||||||||||
2024 | 2023 | Change | |||||||||||||||
(in millions, except per BOE) | |||||||||||||||||
Depletion, depreciation and amortization | $ | 774 | $ | 664 | $ | 110 | |||||||||||
Total DD&A expense per BOE: | |||||||||||||||||
DD&A per BOE | $ | 11.37 | $ | 10.84 | 5 | % | |||||||||||
Depletion expense per BOE | $ | 11.18 | $ | 10.64 | 5 | % |
Three Months Ended March 31, | |||||||||||||||||
2024 | 2023 | Change | |||||||||||||||
(in millions) | |||||||||||||||||
Exploration and abandonments | $ | 20 | $ | 15 | $ | 5 |
Three Months Ended March 31, | |||||||||||||||||
2024 | 2023 | Change | |||||||||||||||
(in millions, except per BOE) | |||||||||||||||||
Cash general and administrative expense | $ | 77 | $ | 71 | $ | 6 | |||||||||||
Noncash general and administrative expense | 15 | 13 | 2 | ||||||||||||||
$ | 92 | $ | 84 | $ | 8 | ||||||||||||
General and administrative expense per BOE: | |||||||||||||||||
Cash general and administrative expense | $ | 1.14 | $ | 1.15 | (1 | %) | |||||||||||
Noncash general and administrative expense | 0.22 | 0.22 | — | % | |||||||||||||
$ | 1.36 | $ | 1.37 | (1 | %) |
Three Months Ended March 31, | |||||||||||||||||
2024 | 2023 | Change | |||||||||||||||
(in millions) | |||||||||||||||||
Interest expense | $ | 40 | $ | 28 | $ | 12 |
Three Months Ended March 31, | |||||||||||||||||
2024 | 2023 | Change | |||||||||||||||
(in millions) | |||||||||||||||||
Other expense | $ | 24 | $ | 41 | $ | (17) |
Three Months Ended March 31, | |||||||||||||||||
2024 | 2023 | Change | |||||||||||||||
(in millions) | |||||||||||||||||
ExxonMobil merger-related costs (a) | $ | 9 | $ | — | $ | 9 | |||||||||||
Legal and environmental contingencies | $ | 2 | $ | 16 | $ | (14) | |||||||||||
Impairment of long-lived assets | $ | — | $ | 11 | $ | (11) |
Three Months Ended March 31, | |||||||||||||||||
2024 | 2023 | Change | |||||||||||||||
(in millions, except tax rates) | |||||||||||||||||
Income tax provision | $ | 309 | $ | 335 | $ | (26) | |||||||||||
Effective tax rate | 22 | % | 22 | % | — | % |
Three Months Ended March 31, | |||||||||||||||||
2024 | 2023 | Change | |||||||||||||||
(in millions) | |||||||||||||||||
Net cash provided by operating activities | $ | 1,946 | $ | 2,314 | $ | (368) | |||||||||||
Net cash used in investing activities | $ | (964) | $ | (1,204) | $ | (240) | |||||||||||
Net cash used in financing activities | $ | (771) | $ | (950) | $ | (179) | |||||||||||
Three Months Ended March 31, 2024 | ||||||||||||||||||||||||||
Period | Total Number of Shares Purchased (a) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Amount of Shares that May Yet Be Purchased under Plans or Programs (b) | ||||||||||||||||||||||
January 1-31, 2024 | — | $ | — | — | $ | 3,875,575,094 | ||||||||||||||||||||
February 1-29, 2024 | 9,882 | $ | 229.14 | — | $ | 3,875,575,094 | ||||||||||||||||||||
March 1-31, 2024 | 1,944 | $ | 237.27 | — | $ | 3,875,575,094 | ||||||||||||||||||||
11,826 | — |
Exhibit Number | Description | |||||||
2.1* | ||||||||
10.1 | Form of Restricted Stock Unit Award Agreement between the Company and executive officers of the Company with respect to annual awards made under the Company's 2006 Long-Term Incentive Plan, commencing in 2024 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K, File No. 1-13245. filed with the SEC on February 8, 2024). | |||||||
31.1 (a) | ||||||||
31.2 (a) | ||||||||
32.1 (b) | ||||||||
32.2 (b) | ||||||||
101.INS (a) | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH (a) | Inline XBRL Taxonomy Extension Schema Document. | |||||||
101.CAL (a) | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
101.DEF (a) | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
101.LAB (a) | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||||
101.PRE (a) | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
(a) | Filed herewith. | ||||
(b) | Furnished herewith. | ||||
* | Schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The Company agrees to furnish to the SEC a copy of any omitted schedule upon request. |
PIONEER NATURAL RESOURCES COMPANY | ||||||||||||||
May 2, 2024 | By: | /s/ Neal H. Shah | ||||||||||||
Neal H. Shah | ||||||||||||||
Executive Vice President and Chief Financial Officer | ||||||||||||||
May 2, 2024 | By: | /s/ Christopher L. Washburn | ||||||||||||
Christopher L. Washburn | ||||||||||||||
Vice President and Chief Accounting Officer |
/s/ Richard P. Dealy | |||||
Richard P. Dealy | |||||
President and Chief Executive Officer | |||||
Date: | May 2, 2024 |
/s/ Neal H. Shah | |||||
Neal H. Shah | |||||
Executive Vice President and Chief Financial Officer | |||||
Date: | May 2, 2024 |
/s/ Richard P. Dealy | |||||
Richard P. Dealy | |||||
President and Chief Executive Officer | |||||
Date: | May 2, 2024 |
/s/ Neal H. Shah | |||||
Neal H. Shah | |||||
Executive Vice President and Chief Financial Officer | |||||
Date: | May 2, 2024 |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Mar. 31, 2024 |
Dec. 31, 2023 |
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Statement of Financial Position [Abstract] | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 245,640,802 | 245,594,927 |
Treasury stock, shares (in shares) | 11,983,632 | 11,971,806 |
Consolidated Statements of Equity (Parenthetical) - $ / shares |
3 Months Ended | |
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Mar. 31, 2024 |
Mar. 31, 2023 |
|
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared (usd per share) | $ 2.56 | $ 5.58 |
Organization and Nature of Operations |
3 Months Ended |
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Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Operations | Organization and Nature of Operations Pioneer is a Delaware corporation whose common shares are listed and traded on the NYSE. The Company is a large independent oil and gas exploration and production company that explores for, develops and produces oil, NGLs and gas in the Midland Basin in West Texas. Planned merger of the Company with Exxon Mobil Corporation. On October 10, 2023, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") with Exxon Mobil Corporation, a New Jersey corporation ("ExxonMobil"), and a subsidiary of ExxonMobil, pursuant to which, and subject to the terms and conditions thereof, the Company will merge with the subsidiary and become a wholly-owned subsidiary of ExxonMobil (the "Merger"). Under the terms of the Merger Agreement, each eligible share of the Company's common stock will be converted into the right to receive 2.3234 shares of ExxonMobil common stock (the "Exchange Ratio"). On February 7, 2024, the Company's shareholders adopted the Merger Agreement at a special meeting of shareholders. Completion of the Merger remains subject to certain conditions. The Merger is currently expected to close in the second quarter of 2024; however, no assurance can be given as to when, or if, the Merger will occur. The above description of the Merger Agreement and the transactions contemplated thereby, including certain referenced terms, is a summary of certain principal terms and conditions contained in the Merger Agreement.
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Basis of Presentation |
3 Months Ended |
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Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Presentation. In the opinion of management, the unaudited interim consolidated financial statements of the Company as of March 31, 2024 and for the three months ended March 31, 2024 and 2023 include all adjustments and accruals, consisting only of normal, recurring adjustments and accruals necessary for a fair presentation of the results for the interim periods in conformity with GAAP. The operating results for the three months ended March 31, 2024 are not necessarily indicative of results for a full year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted in accordance with the rules and regulations of the SEC. These unaudited interim consolidated financial statements should be read together with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023. Use of estimates in the preparation of financial statements. Preparation of the Company's consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from the estimates and assumptions utilized.
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Nonmonetary Transactions |
3 Months Ended |
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Mar. 31, 2024 | |
Business Combinations [Abstract] | |
Nonmonetary Transactions | Nonmonetary Transactions During the three months ended March 31, 2023, the Company's nonmonetary transactions included exchanges of both proved and unproved oil and gas properties in the Midland Basin with unaffiliated third parties. Certain of these transactions were determined to have commercial substance, which led to those transactions being accounted for at fair value, and resulted in the Company recording a gain of $24 million to net gain on disposition of assets in the consolidated statements of operations and $162 million of noncash investing activities for the three months ended March 31, 2023. Nonmonetary transactions that do not have commercial substance are recorded at carryover basis.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements The Company determines fair value based on the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are based upon inputs that market participants use in pricing an asset or liability, which are characterized according to a hierarchy that prioritizes those inputs based on the degree to which they are observable. Observable inputs represent market data obtained from independent sources, whereas unobservable inputs reflect a company's own market assumptions, which are used if observable inputs are not reasonably available without undue cost and effort. The fair value input hierarchy level to which an asset or liability measurement in its entirety falls is determined based on the lowest level input that is significant to the measurement in its entirety. The three input levels of the fair value hierarchy are as follows: •Level 1 – quoted prices for identical assets or liabilities in active markets. •Level 2 – quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g. interest rates) and inputs derived principally from or corroborated by observable market data by correlation or other means. •Level 3 – unobservable inputs for the asset or liability, typically reflecting management's estimate of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques, including discounted cash flow models. Assets and liabilities measured at fair value on a recurring basis.
Gains and losses recorded in the consolidated statements of operations related to assets and liabilities measured at fair value on a recurring basis are as follows:
Investment in affiliate. The Company elected the fair value option for measuring its equity method investment in ProPetro Holding Corp. ("ProPetro"). The fair value of the Company's investment in ProPetro common shares is determined using Level 1 inputs based on observable prices on a major exchange and changes in fair value are recorded in net interest and other income (loss) in the consolidated statements of operations. See Note 10 for additional information. Deferred compensation plan assets. The Company's deferred compensation plan assets include investments in equity and mutual fund securities that are actively traded on major exchanges. The fair value of these investments is determined using Level 1 inputs based on observable prices on major exchanges and changes in fair value are recorded in net interest and other income (loss) in the consolidated statements of operations. Conversion option derivatives. In May 2020, the Company issued $1.3 billion principal amount of convertible senior notes due 2025 (the "Convertible Notes"). Certain holders of the Convertible Notes have exercised their conversion options per the terms of the notes' indenture. The Company elected to settle the conversions in cash, with settlement occurring 25 trading days from the notice of conversion (the "Settlement Period"). The Company's election to settle an exercised conversion option in cash results in a forward contract during the Settlement Period that is accounted for as a derivative instrument not designated as a hedge. The change in fair value of the conversion option derivatives during the Settlement Period is primarily determined based on Level 2 inputs related to the daily volumetric weighted average prices of the Company's common shares during the Settlement Period. See Note 6 for additional information. Marketing derivatives. The Company uses marketing derivatives to diversify its oil pricing to Gulf Coast and international markets. The Company's marketing derivatives reflect long-term marketing contracts with Occidental Energy Marketing, Inc. ("Oxy") whereby the Company agreed to purchase and simultaneously sell, at an oil terminal in Midland, Texas, (i) 50 thousand barrels of oil per day beginning January 1, 2021 and ending December 31, 2026, (ii) 40 thousand barrels of oil per day beginning May 1, 2022 and ending April 30, 2027 and (iii) 30 thousand barrels of oil per day beginning August 1, 2022 and ending July 31, 2027. The price the Company pays to purchase the oil volumes under the purchase contract is based on a Midland oil price and the price the Company receives for the oil volumes sold is the WASP that Oxy receives for selling oil through a Gulf Coast storage and export facility at prices that are highly correlated with Brent oil prices during the same month of the purchase. Based on the form of the long-term marketing contracts, the Company accounts for the contracts as derivative instruments not designated as hedges. The asset and liability measurements for the long-term marketing contracts are determined using both Level 2 and 3 inputs. The Company utilizes a discounted cash flow model for valuing the marketing derivatives. The values attributable to the Company's marketing derivatives that are determined based on Level 2 inputs include (i) the contracted notional volumes, (ii) independent active market price quotes, (iii) the applicable estimated credit-adjusted risk-free rate yield curve and (iv) stated contractual rates. The Level 3 inputs attributable to the Company's marketing derivatives include the historical monthly differential between Brent oil prices and Oxy's WASP ("WASP Differential Deduction") and, to a lesser extent, an estimated annual cost inflation rate. The average WASP Differential Deduction used in the fair value determination as of March 31, 2024 and December 31, 2023 was $1.90 per barrel and $1.66 per barrel, respectively. The WASP Differential Deduction and the estimated annual cost inflation rate reflects management's best estimate of future results utilizing historical performance, however these estimates are not observable inputs by a market participant and contain a high degree of uncertainty. The Company experiences mark-to-market fluctuations in the fair value of its marketing derivatives based on changes in the WASP Differential Deduction if it deviates from historical levels. For example, a 10 percent increase or decrease in the WASP Differential Deduction would impact the fair value of the Company's marketing derivatives recorded by $23 million as of March 31, 2024. Derivative financial instruments are presented in the Company's consolidated balance sheets as follows:
Assets and liabilities measured at fair value on a nonrecurring basis. Certain assets and liabilities are measured at fair value on a nonrecurring basis. These assets and liabilities are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances. These assets and liabilities can include inventories, proved and unproved oil and gas properties, goodwill, asset retirement obligations and other long-lived assets that are written down to fair value when they are determined to be impaired or held for sale. Nonmonetary transactions. Oil and gas property nonmonetary transactions that have commercial substance are valued as of the transaction date based on income and market based approaches utilizing Level 3 inputs, including internally generated development and production profiles and price and cost assumptions. During the three months ended March 31, 2023, the Company recorded a gain of $24 million to net gain on disposition of assets in the consolidated statements of operations associated with nonmonetary transactions. See Note 3 for additional information. Other long-lived assets. The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If such assets are considered to be impaired, the impairment charge is measured as the amount by which the carrying amount of the asset exceeds its estimated fair value determined using either a discounted future cash flow model or another appropriate fair value method. As a result of the Company's impairment assessments of unoccupied facilities during the three months ended March 31, 2023, the Company recorded $11 million of noncash impairment charges in other expense in the consolidated statements of operations. See Note 12 for additional information. Financial instruments not carried at fair value.
______________________ (a)Fair value approximates carrying value due to the short-term nature of the instruments. (b)Fair value is determined using Level 2 inputs. The Company's senior notes are quoted, but not actively traded on major exchanges; therefore, fair value is based on periodic values as quoted on major exchanges. See Note 6 for additional information. The Company has other financial instruments consisting primarily of receivables, payables and other current assets and liabilities that approximate fair value due to the nature of the instrument and their relatively short maturities.
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Exploratory Well and Project Costs |
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Extractive Industries [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exploratory Well and Project Costs | Exploratory Well and Project Costs The Company capitalizes exploratory well and project costs until a determination is made that the well or project has either found proved reserves, is impaired or is sold. The Company's capitalized exploratory well and project costs are included in proved properties in the consolidated balance sheets. If the exploratory well or project is determined to be impaired, the impaired costs are recorded in exploration and abandonments expense in the consolidated statements of operations. The changes in capitalized exploratory well and project costs are as follows:
Aging of capitalized exploratory costs and the number of projects for which exploratory well costs have been capitalized based on the date drilling was completed, are as follows:
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Debt and Interest Expense |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt and Interest Expense | Debt and Interest Expense The components of debt, including the effects of issuance costs and net discounts, are as follows:
______________________ (a)Assumed in the acquisition of Parsley Energy, Inc. on January 12, 2021. Credit facility. The Company maintains a revolving corporate credit facility (the "Credit Facility") with a syndicate of financial institutions ("Syndicate") and has aggregate loan commitments of $2.0 billion. The Credit Facility has a maturity date of January 12, 2026. As of March 31, 2024, the Company had no outstanding borrowings under the Credit Facility. The Company had intermittent borrowings and repayments of $105 million and $350 million during the three months ended March 31, 2024 and 2023, respectively. The Credit Facility requires the maintenance of a ratio of total debt to book capitalization, subject to certain adjustments, not to exceed 0.65 to 1.0. As of March 31, 2024, the Company was in compliance with its debt covenants. Senior notes. The Company's senior notes are general unsecured obligations ranking equally in right of payment with all other senior unsecured indebtedness of the Company and are senior in right of payment to all existing and future subordinated indebtedness of the Company. The Company is a holding company that conducts all of its operations through subsidiaries; consequently, the senior notes are structurally subordinated to all obligations of its subsidiaries. Interest on the Company's senior notes is payable semiannually. Convertible senior notes. The Convertible Notes bear a fixed interest rate of 0.250% per year, with interest payable semiannually on May 15 and November 15. The Convertible Notes will mature on May 15, 2025, unless earlier redeemed, repurchased or converted. The Convertible Notes are unsecured obligations ranking equally in right of payment with all other senior unsecured indebtedness of the Company. As of March 31, 2024, the Convertible Notes are convertible at an adjusted conversion rate of 10.9539 shares of the Company's common shares per $1,000 principal amount of the Convertible Notes (subject to further adjustment pursuant to the terms of the notes' indenture, the "Conversion Rate"), which represents an adjusted conversion price of $91.29 per share (subject to adjustment pursuant to the terms of the notes indenture, the "Conversion Price"). Upon conversion, the Convertible Notes may be settled in cash, the Company's common shares or a combination thereof, at the Company's election. Holders of the Convertible Notes may convert their notes at their option prior to February 15, 2025 under the following circumstances: •during the quarter following any quarter during which the last reported sales price of the Company's common shares for at least 20 of the last 30 consecutive trading days of such quarter exceeds 130 percent of the Conversion Price; •during the five-business day period following any five consecutive trading day period when the trading price of the Convertible Notes is less than 98 percent of the product of the last reported sales price of the Company's common shares and the Conversion Rate; •upon notice of redemption by the Company; or •upon the occurrence of specified corporate events, including certain consolidations or mergers. On or after February 15, 2025, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their notes at any time. Currently, the Company may redeem the Convertible Notes only if the last reported sale price of the Company's common shares has been at least 130 percent of the Conversion Price for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which the Company provides the notice of redemption. The redemption price is equal to 100 percent of the principal amount of the Convertible Notes to be redeemed, plus accrued and unpaid interest. In connection with the issuance of the Convertible Notes, the Company entered into privately negotiated capped call transactions with certain financial institution counterparties (the "Capped Call"), the purpose of which was to reduce the potential dilution to the Company's common shares upon conversion of the Convertible Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of such converted notes, with such reduction and offset subject to a capped price. As of March 31, 2024, the Capped Call transactions have an adjusted strike price of $91.29 per share of common shares and an adjusted capped price of $129.92 per share of common shares. As of March 31, 2024, the effective annual interest rate on the Convertible Notes is 0.6 percent after giving effect to deferred financing fees relating to the notes. Convertible Note conversions. During the last 30 consecutive trading days of the first quarter of 2021 through the first quarter of 2024, the last reported sales price of the Company's common shares exceeded 130 percent of the Conversion Price for at least 20 trading days, causing the Convertible Notes to be convertible at the option of the holders during the period from April 1, 2021 through June 30, 2024. Certain holders of the Convertible Notes exercised their conversion option resulting in the Company recognizing the following cash payments and cash receipts associated with the conversions:
The Company recorded the conversion premiums paid, Capped Call proceeds and associated issuance fees and deferred taxes attributable to the principal amount of the Convertible Notes converted in additional paid-in-capital. As of March 31, 2024 and December 31, 2023, $11 million and $28 million, respectively, of the principal amount of the Convertible Notes remained in the Settlement Period and are recorded in the current portion of debt in the consolidated balance sheets for each respective period. The current portion of Convertible Notes, as of March 31, 2024, will be cash settled at the end of their respective Settlement Periods during the second quarter of 2024.
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Incentive Plans |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Incentive Plans | Incentive Plans Long-Term Incentive Plan. The Company's Amended and Restated 2006 Long-Term Incentive Plan ("LTIP") provides for the granting of various forms of awards, including stock options, stock appreciation rights, performance units, restricted shares and restricted stock units to directors, officers and employees of the Company. Share-based compensation expense for (i) restricted stock awards and units expected to be settled in the Company's common shares ("Equity Awards"), (ii) restricted stock units expected to be settled in cash ("Liability Awards"), (iii) performance units ("Performance Awards") issued under the LTIP and (iv) shares issued under the Company's Employee Stock Purchase Plan ("ESPP") are as follows:
______________________ (a)Liability Awards are expected to be settled on their vesting date in cash. As of March 31, 2024 and December 31, 2023, accounts payable – due to affiliates included $8 million and $5 million, respectively, of liabilities attributable to Liability Awards. As of March 31, 2024, there is $103 million of unrecognized share-based compensation expense related to unvested share-based compensation awards of which $17 million is attributable to Liability Awards. The unrecognized compensation expense will be recognized on a straight-line basis over the remaining requisite service periods of the awards, which is a period of less than three years on a weighted average basis. Expense for the Performance Awards granted in 2023 is estimated based upon the achievement of certain financial performance targets and is reassessed periodically. The cumulative impact of any change in estimate is reflected in the period of the change. The Company did not grant Performance Awards in 2024. Per the change in control terms of award agreements, any Equity Awards, Liability Awards and Performance Awards granted prior to October 10, 2023 that are outstanding immediately prior to the completion of a change in control event will become vested. Additionally, in accordance with the Merger Agreement, outstanding Performance Awards vest at their maximum payout percentage, which may impact future share-based compensation expense based upon the fair value of the awards as of the modification date. Activity for Equity Awards, Liability Awards, and Performance Awards is as follows:
______________________ (a)Reflects the number of performance units initially granted assuming a target payout percentage. In accordance with the Merger Agreement, outstanding Performance Awards will vest at their maximum payout percentage upon closing. (b)Per the terms of award agreements and elections, the issuance of common shares may be deferred for certain Equity Awards that vest during the period.
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Asset Retirement Obligations |
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Retirement Obligation [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Retirement Obligations | Asset Retirement Obligations 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:
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Commitments and Contingencies |
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Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Indemnifications. The Company has agreed to indemnify its directors and certain of its officers, employees and agents with respect to claims and damages arising from acts or omissions taken in such capacity, as well as with respect to certain litigation. Legal actions. The Company is party to various proceedings and claims incidental to its business and in connection with the Merger. While many of these matters involve inherent uncertainty, the Company believes that the amount of the liability, if any, ultimately incurred with respect to these proceedings and claims will not have a material adverse effect on the Company's consolidated financial position as a whole or on its liquidity, capital resources or future annual results of operations. The Company records reserves for contingencies when information available indicates that a loss is probable and the amount of the loss can be reasonably estimated. Significant judgement is required in making these estimates and the Company's final liabilities may ultimately be materially different. Environmental. Environmental expenditures that relate to an existing condition caused by past operations and that have no future economic benefits are expensed. Environmental expenditures that extend the life of the related property or mitigate or prevent future environmental contamination are capitalized. Liabilities for expenditures that will not qualify for capitalization are recorded when environmental assessment and/or remediation is probable and the costs can be reasonably estimated. Such liabilities are undiscounted unless the timing of cash payments for the liability is fixed or reliably determinable. Environmental liabilities normally involve estimates that are subject to revision until settlement or remediation occurs. Obligations following divestitures. In connection with its divestiture transactions, the Company may retain certain liabilities and provide the purchaser certain indemnifications, subject to defined limitations, which may apply to identified pre-closing matters, including matters of litigation, environmental contingencies, royalties and income taxes. The Company may also be subject to retained liabilities with respect to certain divested assets by operation of law. Upon divesting its assets, the Company may receive collateral or credit support for its exposure to such liabilities. The Company establishes reserves for the amount that exceeds the collateral or credit support received in the event that the obligation becomes likely to be paid by the Company. For example, the Company is exposed to the risk that owners and/or operators of assets purchased from the Company may become unable to satisfy plugging or abandonment obligations associated with those assets. In that event, due to operation of law, the Company may be required to assume all or part of the plugging or abandonment obligations for those assets. Although the Company may establish reserves for such liabilities, it could be required to pay additional amounts in the future and these amounts could be material. The Company does not recognize a liability if the fair value of the obligation is immaterial or the likelihood of making payments is remote.
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Related Party Transactions |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions | Related Party Transactions In December 2018, the Company completed the sale of its pressure pumping assets to ProPetro in exchange for 16.6 million shares of ProPetro common shares and $110 million of cash. ProPetro is considered a related party as the shares received represent 15 percent of ProPetro's outstanding common shares. In addition to the sale of equipment and related facilities, the Company entered into a long-term agreement with ProPetro for it to provide pressure pumping and related services that ended on December 31, 2022. The Company continued to utilize ProPetro for pressure pumping and related services for a portion of 2023, but no longer uses such services as of March 31, 2024. Phillip A. Gobe, a nonemployee member of the Company's Board of Directors (the "Board"), was appointed by the board of directors of ProPetro to serve as its Executive Chairman in October 2019 and Chief Executive Officer in March 2020, and served as Chief Executive Officer and Chairman of the board of directors of ProPetro through August 31, 2021, at which point he continued as ProPetro's Executive Chairman. In March 2022, Mr. Gobe transitioned to non-executive Chairman of the board of directors of ProPetro. Mark S. Berg, the Company's Executive Vice President, Corporate Operations, serves as a member of the ProPetro board of directors under the Company's right to designate a director to the board of directors of ProPetro so long as the Company owns five percent or more of ProPetro's outstanding common shares. Based on the Company's ownership in ProPetro and representation on the ProPetro board of directors, ProPetro is considered an affiliate. Charges attributable to ProPetro pressure pumping related services were capitalized in oil and gas properties or charged to other expense as incurred. ProPetro pressure pumping related service charges are as follows:
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Revenue Recognition |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue Recognition Disaggregated revenue from contracts with purchasers. Revenues on sales of oil, NGLs, gas and purchased oil and gas are recognized when control of the product is transferred to the purchaser and payment can be reasonably assured. Sales prices for oil, NGLs and gas are negotiated based on factors normally considered in the industry, such as an index or spot price, distance from the well to the pipeline or market, commodity quality and prevailing supply and demand conditions. Accordingly, the prices received by the Company for oil, NGLs and gas generally fluctuate similar to changes in the relevant market index prices. Disaggregated revenue from contracts with purchasers by product type is as follows:
Performance obligations and contract balances. The majority of the Company's product sale commitments are short-term in nature with a contract term of one year or less. The Company typically satisfies its performance obligations upon transfer of control as described above in Disaggregated revenue from contracts with purchasers and records the related revenue in the month production is delivered to the purchaser. Settlement statements for sales of oil, NGLs, gas and sales of purchased oil and gas may not be received for 30 to 60 days after the date the volumes are delivered, and as a result, the Company is required to estimate the amount of volumes delivered to the purchaser and the price that will be received for the sale of the product. The Company records the differences between estimates and the actual amounts received for product sales in the month that payment is received from the purchaser. As of March 31, 2024 and December 31, 2023, the accounts receivable balance representing amounts due or billable under the terms of contracts with purchasers was $1.7 billion and $1.5 billion, respectively.
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Other Expense |
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Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Expense | Other Expense The components of other expense are as follows:
____________________ (a)Primarily represents legal fees and other transaction costs associated with the ExxonMobil merger. (b)Primarily represents facilities expense associated with certain offices acquired as part of business combinations that are no longer occupied by the Company.
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Income Taxes |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes Enactment of the Inflation Reduction Act of 2022. On August 16, 2022, President Biden signed into law the Inflation Reduction Act of 2022 (the "IRA"), which includes, among other things, a corporate alternative minimum tax (the "CAMT"). Under the CAMT, a 15 percent minimum tax is imposed on certain adjusted financial statement income of "applicable corporations." The CAMT generally treats a corporation as an "applicable corporation" in any taxable year in which the "average annual adjusted financial statement income" of the corporation and certain of its subsidiaries and affiliates for a three-taxable-year period ending prior to such taxable year exceeds $1 billion. The U.S. Department of the Treasury and the Internal Revenue Service have issued guidance on the application of the CAMT, which may be relied upon until final regulations are released. If the Company's CAMT liability is greater than its regular U.S. federal income tax liability for any particular tax year, the CAMT liability would effectively accelerate its future U.S. federal income tax obligations, reducing its cash flows in that year, but provide an offsetting credit against its regular U.S. federal income tax liability in future tax years. Based on the Company's interpretation of the IRA, CAMT and related guidance, the Company does not expect the CAMT to materially increase its tax obligations for the 2024 taxable year, however, the Company will continue to monitor and assess any impacts of the IRA on the Company's current year tax provision and the Company's consolidated financial statements. Income tax provisions and effective tax rates are as follows:
The Company evaluates and updates its annual effective income tax rate on an interim basis based on current and forecasted earnings and enacted tax laws. The mix and timing of the Company's actual earnings compared to annual projections can cause interim effective tax rate fluctuations. The Company's interim effective tax rate for the three months ended March 31, 2024 and 2023 differed from the U.S. statutory rate of 21 percent primarily due to forecasted state income taxes. The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. As of March 31, 2024, there are no proposed adjustments in any jurisdiction that would have a material effect on the Company's future results of operations or financial position.
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Net Income Per Share and Stockholders' Equity |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income Per Share and Stockholders' Equity | Net Income Per Share and Shareholders' Equity Net income per share. The components of basic and diluted net income per share attributable to common shareholders are as follows:
______________________ (a)Unvested Equity Awards and Liability 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 and Liability 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 shareholders 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, 2024 and 2023, respectively. If converted by the holder, the Company may settle in cash, Company's common shares or a combination thereof, at the Company's election. See Note 6 for additional information. Shareholders' equity. The Company's return of capital strategies include payments of dividends and a share repurchase program. The Board, at its sole discretion, may change its dividend practices and/or the Company's share repurchase program based on the Company's outlook for commodity prices, liquidity, debt levels, capital resources, quarterly operating cash flows or other factors, including terms set forth in the Merger Agreement. Dividends declared by the Board and shares repurchased during the period are presented in the Company's consolidated statements of equity as dividends declared and purchases of treasury shares, respectively. Dividends paid and shares 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. Share repurchases are included as treasury shares in the consolidated balance sheets. Dividends. Dividends declared by the Board are as follows:
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. The Merger Agreement provides certain restrictions on future base and variable dividend declarations, including an agreement that the Company will no longer declare a variable dividend after distributing the variable dividend attributable to the fourth quarter 2023 results. Share repurchase programs. In April 2023, the Board authorized a $4 billion common share repurchase program to replace the $4 billion common share repurchase program authorized in February 2022. As was the case with previous share 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 Exchange Act of 1934 (the "Exchange Act"), 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 share repurchase programs are as follows:
______________________ (a)The Company repurchased 2.4 million shares during the three months ended March 31, 2023. Expenditures for share repurchases exclude the one percent IRA excise tax. With limited exceptions, the Merger Agreement precludes the Company from future repurchases or acquisition of the Company's common shares, including repurchases under the Company's share repurchase program.
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Basis of Presentation (Policies) |
3 Months Ended |
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Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Presentation | Presentation. In the opinion of management, the unaudited interim consolidated financial statements of the Company as of March 31, 2024 and for the three months ended March 31, 2024 and 2023 include all adjustments and accruals, consisting only of normal, recurring adjustments and accruals necessary for a fair presentation of the results for the interim periods in conformity with GAAP. The operating results for the three months ended March 31, 2024 are not necessarily indicative of results for a full year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted in accordance with the rules and regulations of the SEC. These unaudited interim consolidated financial statements should be read together with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023.
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Use of estimates in the preparation of financial statements | Use of estimates in the preparation of financial statements. Preparation of the Company's consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from the estimates and assumptions utilized.
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Fair Value Measurements (Tables) |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of assets and liabilities measured at fair value on a recurring basis |
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Schedule of derivative gains and losses recognized on statement of operations | Gains and losses recorded in the consolidated statements of operations related to assets and liabilities measured at fair value on a recurring basis are as follows:
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Schedule of offsetting asset and liability | Derivative financial instruments are presented in the Company's consolidated balance sheets as follows:
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Schedule of carrying values and financial instruments not carried at fair value |
______________________ (a)Fair value approximates carrying value due to the short-term nature of the instruments. (b)Fair value is determined using Level 2 inputs. The Company's senior notes are quoted, but not actively traded on major exchanges; therefore, fair value is based on periodic values as quoted on major exchanges. See Note 6 for additional information.
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Exploratory Well and Project Costs (Tables) |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Extractive Industries [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of capitalized exploratory well costs, roll forward | The changes in capitalized exploratory well and project costs are as follows:
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Schedule of capitalized exploratory costs and the number of projects for which exploratory costs have been capitalized | Aging of capitalized exploratory costs and the number of projects for which exploratory well costs have been capitalized based on the date drilling was completed, are as follows:
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Debt and Interest Expense (Tables) |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of components of long-term debt | The components of debt, including the effects of issuance costs and net discounts, are as follows:
______________________ (a)Assumed in the acquisition of Parsley Energy, Inc. on January 12, 2021.
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Schedule of derivative instruments | Certain holders of the Convertible Notes exercised their conversion option resulting in the Company recognizing the following cash payments and cash receipts associated with the conversions:
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Incentive Plans (Tables) |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of stock-based compensation expense | Share-based compensation expense for (i) restricted stock awards and units expected to be settled in the Company's common shares ("Equity Awards"), (ii) restricted stock units expected to be settled in cash ("Liability Awards"), (iii) performance units ("Performance Awards") issued under the LTIP and (iv) shares issued under the Company's Employee Stock Purchase Plan ("ESPP") are as follows:
______________________ (a)Liability Awards are expected to be settled on their vesting date in cash. As of March 31, 2024 and December 31, 2023, accounts payable – due to affiliates included $8 million and $5 million, respectively, of liabilities attributable to Liability Awards.
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Schedule of equity awards, liability awards, performance awards and stock options | Activity for Equity Awards, Liability Awards, and Performance Awards is as follows:
______________________ (a)Reflects the number of performance units initially granted assuming a target payout percentage. In accordance with the Merger Agreement, outstanding Performance Awards will vest at their maximum payout percentage upon closing. (b)Per the terms of award agreements and elections, the issuance of common shares may be deferred for certain Equity Awards that vest during the period.
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Asset Retirement Obligations (Tables) |
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Retirement Obligation [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of asset retirement obligations | Asset retirement obligations activity is as follows:
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Related Party Transactions (Tables) |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of related party transactions and balances | ProPetro pressure pumping related service charges are as follows:
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Revenue Recognition (Tables) |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of revenue | Disaggregated revenue from contracts with purchasers by product type is as follows:
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Other Expense (Tables) |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of components of other expense | The components of other expense are as follows:
____________________ (a)Primarily represents legal fees and other transaction costs associated with the ExxonMobil merger. (b)Primarily represents facilities expense associated with certain offices acquired as part of business combinations that are no longer occupied by the Company.
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Income Taxes (Tables) |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of income tax (provision) benefit and effective tax rate | Income tax provisions and effective tax rates are as follows:
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Net Income Per Share and Stockholders' Equity (Tables) |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of earnings attributable to common stockholders, basic and diluted | The components of basic and diluted net income per share attributable to common shareholders are as follows:
______________________ (a)Unvested Equity Awards and Liability 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 and Liability 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 shareholders 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, 2024 and 2023, respectively. If converted by the holder, the Company may settle in cash, Company's common shares or a combination thereof, at the Company's election. See Note 6 for additional information.
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Dividends Declared | Dividends declared by the Board are as follows:
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Class of Treasury Stock | Expenditures to acquire shares under the share repurchase programs are as follows:
______________________ (a)The Company repurchased 2.4 million shares during the three months ended March 31, 2023. Expenditures for share repurchases exclude the one percent IRA excise tax.
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Organization and Nature of Operations - Narrative (Details) |
Oct. 10, 2023
shares
|
---|---|
Pioneer Natural Resources | Exxon Mobil | |
Business Acquisition [Line Items] | |
Common stock, number of ExxonMobil common stock for each share of Pioneer common stock converted | 2.3234 |
Nonmonetary Transactions - Narrative (Details) - Exchange of productive assets $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2023
USD ($)
| |
Business Acquisition [Line Items] | |
Gain on disposition of assets | $ 24 |
Noncash acquisition related costs | $ 162 |
Fair Value Measurements - Schedule of Derivative Obligations Under Terminated Hedge Arrangements (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Investment in affiliate valuation adjustment | $ (5) | $ (53) |
Deferred compensation plan asset valuation adjustment | 3 | (1) |
Derivative [Line Items] | ||
Derivative gain (loss), net | (122) | (44) |
0.250% convertible senior notes due 2025 | Convertible debt | ||
Derivative [Line Items] | ||
Noncash derivative loss | (3) | 0 |
Cash receipts (payments) on settled derivatives, net | (4) | 7 |
Derivative gain (loss), net | (7) | 7 |
Marketing derivatives | ||
Derivative [Line Items] | ||
Noncash derivative loss | (95) | (36) |
Cash receipts (payments) on settled derivatives, net | (20) | (15) |
Derivative gain (loss), net | $ (115) | $ (51) |
Exploratory Well and Project Costs - Schedule of Capitalized Exploratory Well And Project Activity (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Increase (Decrease) in Capitalized Exploratory Well Costs that are Pending Determination of Proved Reserves [Roll Forward] | |
Beginning capitalized exploratory well and project costs | $ 784 |
Additions to exploratory well and project costs pending the determination of proved reserves | 775 |
Reclassifications due to determination of proved reserves | (728) |
Ending capitalized exploratory well and project costs | $ 831 |
Exploratory Well and Project Costs - Aging of Capitalized Exploratory Costs (Details) $ in Millions |
Mar. 31, 2024
USD ($)
Well
|
Dec. 31, 2023
USD ($)
Well
|
---|---|---|
Capitalized Exploratory Well Costs [Abstract] | ||
One year or less | $ 831 | $ 784 |
More than one year | 0 | 0 |
Total capitalized exploratory well costs | $ 831 | $ 784 |
Number of projects with exploratory well costs that have been suspended for a period greater than one year | Well | 0 | 0 |
Debt and Interest Expense - Convertible Notes (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Derivative [Line Items] | ||
Principal repayments | $ 292 | $ 580 |
0.250% convertible senior notes due 2025 | Convertible debt | ||
Derivative [Line Items] | ||
Principal repayments | 77 | 92 |
Conversion premiums | 110 | 138 |
Cash receipts (payments) on settled derivatives, net | (4) | 7 |
Cash payments, net | 191 | 230 |
Capped Call proceeds | 23 | 31 |
Cash receipts, net | $ 23 | $ 38 |
Incentive Plans - Schedule of Compensation Expense for Each Type of Incentive Award (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 26 | $ 26 | |
Capitalized share-based compensation expense | 5 | 4 | |
Equity Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 19 | 13 | |
Liability Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 4 | 3 | |
Amount of liabilities attributable to liability awards included in accounts payable | 8 | $ 5 | |
Performance Awards (a) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 2 | 9 | |
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 1 | $ 1 |
Incentive Plans - Narrative (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized share-based compensation expense | $ | $ 103 |
Vesting period | 3 years |
Liability Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized share-based compensation expense | $ | $ 17 |
Units granted (in shares) | shares | 2,657 |
Performance Awards (a) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Units granted (in shares) | shares | 0 |
Asset Retirement Obligations (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Beginning asset retirement obligations | $ 459 | |
Additions | 2 | |
Liabilities settled | (24) | |
Accretion of discount | 5 | $ 4 |
Ending asset retirement obligations | 442 | |
Less current portion of asset retirement obligations | 90 | |
Asset retirement obligations, long-term | $ 352 |
Related Party Transactions (Details) - USD ($) shares in Millions, $ in Millions |
1 Months Ended | 3 Months Ended | |
---|---|---|---|
Dec. 31, 2018 |
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Related Party Transaction [Line Items] | |||
Right to designate director, ownership percent | 5.00% | ||
Pressure pumping related service charges | $ 0 | $ (42) | |
ProPetro | ProPetro | |||
Related Party Transaction [Line Items] | |||
Percent ownership | 15.00% | ||
ProPetro | Pressure pumping assets | Sale of assets | |||
Related Party Transaction [Line Items] | |||
Shares received (in shares) | 16.6 | ||
Short-term receivables | $ 110 |
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 4,903 | $ 4,597 |
Oil sales | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 2,683 | 2,444 |
NGL sales | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 429 | 412 |
Gas sales | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 175 | 310 |
Total oil and gas revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 3,287 | 3,166 |
Sales of purchased oil | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 1,613 | 1,429 |
Sales of purchased gas | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 3 | 2 |
Total sales of purchased commodities | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 1,616 | $ 1,431 |
Revenue Recognition - Narrative (Details) - USD ($) $ in Billions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable balance representing amounts due or billable | $ 1.7 | $ 1.5 |
Other Expense - Schedule of Components of Other Expense (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Other Income and Expenses [Abstract] | ||
ExxonMobil merger-related costs (a) | $ 9 | $ 0 |
Unoccupied facilities expense (b) | 8 | 9 |
Legal and environmental contingencies | 2 | 16 |
Impairment of long-lived assets | 0 | 11 |
Other | 5 | 5 |
Total other expense | $ 24 | $ 41 |
Income Taxes - Schedule of Income Tax Provision (Expense) and Effective Tax Rate (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Income Tax Disclosure [Abstract] | ||
Current tax provision | $ 238 | $ 225 |
Deferred tax provision | 71 | 110 |
Income tax provision | $ 309 | $ 335 |
Effective tax rate | 22.00% | 22.00% |
Net Income (Loss) Per Share and Stockholders' Equity - Reconciliation of Earnings Attributable to Common Stockholders, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Earnings Per Share [Abstract] | ||
Net income attributable to common shareholders | $ 1,095 | $ 1,222 |
Participating share-based earnings | (2) | (3) |
Basic net income attributable to common shareholders | 1,093 | 1,219 |
Adjustment to after-tax interest expense to reflect the dilutive impact attributable to Convertible Notes | 0 | 1 |
Diluted net income attributable to common shareholders | $ 1,093 | $ 1,220 |
Basic weighted average shares outstanding (in shares) | 234 | 235 |
Convertible Notes dilution (in shares) | 5 | 9 |
Diluted weighted average shares outstanding (in shares) | 239 | 244 |
Basic (usd per share) | $ 4.68 | $ 5.19 |
Diluted (usd per share) | $ 4.57 | $ 5.00 |
Net Income (Loss) Per Share and Stockholders' Equity - Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Earnings Per Share [Abstract] | ||
Common stock, dividends, per share, declared, base (usd per share) | $ 1.25 | $ 1.10 |
Common stock, dividends, per share, declared (usd per share) | 1.31 | 4.48 |
Dividends declared (usd per share) | $ 2.56 | $ 5.58 |
Dividends, common stock, cash | $ 603 | $ 1,314 |
Net Income (Loss) Per Share and Stockholders' Equity - Narrative (Details) - Common stock repurchase program - USD ($) shares in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Apr. 27, 2023 |
Feb. 28, 2022 |
|
Equity, Class of Treasury Stock [Line Items] | ||||
Authorized amount | $ 4,000,000,000 | $ 4,000,000,000 | ||
Purchases of treasury stock (in shares) | 0.0 | 500.0 | ||
Stock repurchased during period (in shares) | 2.4 |
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