PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2024

Property, Plant and Equipment [Abstract]

Property and equipment includes the following:


	December 31,
	2024		2023
	(In millions)
Oil and natural gas properties:
Subject to depletion	$	59,574	$	33,771
Not subject to depletion	22,666		8,659
Gross oil and natural gas properties	82,240		42,430
Accumulated depletion	(11,083)		(8,333)
Accumulated impairment	(7,954)		(7,954)
Oil and natural gas properties, net	63,203		26,143
Other property, equipment and land	1,440		673
Accumulated depreciation, amortization, accretion and impairment	(171)		(142)
Total property and equipment, net	$	64,472	$	26,674

Balance of costs not subject to depletion:
Incurred in 2024	$	15,793
Incurred in 2023	1,205
Incurred in 2022	660


Prior	5,008
Total not subject to depletion	$	22,666

Capitalized internal costs were approximately $90 million, $66 million and $58 million for the years ended December 31, 2024, 2023 and 2022, respectively. Costs associated with unevaluated properties are excluded from the full cost pool until the Company has made a determination as to the existence of proved reserves. Although the evaluation process has not been completed on our unevaluated properties, the Company currently estimates these costs will be added to the amortization base within fifteen years.

Under the full cost method of accounting, the Company is required to perform a ceiling test each quarter which determines a limit, or ceiling, on the book value of proved oil and natural gas properties. No impairment expense was recorded for the years ended December 31, 2024, 2023 and 2022.

In addition to commodity prices, the Company’s production rates, levels of proved reserves, future development costs, transfers of unevaluated properties and other factors will determine its actual ceiling test calculation and impairment analysis in future periods. If the trailing 12-month commodity prices decline as compared to the commodity prices used in prior quarters, the Company may have material write downs in subsequent quarters. Given the rate of change impacting the oil and natural gas industry described above, it is possible that circumstances requiring additional impairment testing will occur in future interim periods, which could result in potentially material impairment charges being recorded.

At December 31, 2024, there were $60 million in exploration and development costs and $473 million in capitalized interest that are not subject to depletion. At December 31, 2023, there were $77 million in exploration and development costs and $337 million in capitalized interest costs that were not subject to depletion.