Segment Information (Tables)

3 Months Ended

Mar. 31, 2022

Summary of Financial Information for Company's Reportable Segments

Summarized financial information for the Company’s reportable segments is shown in the following table. The accounting policies of the segments are the same as those described in Note 1 of the Notes to Consolidated Financial Statements included in Item 8 of the 2021 Annual Report. Management evaluates the performance of its segments based on operating income, defined as operating revenues less operating costs. Income before income taxes, for the purpose of reconciling the operating income amount shown below to consolidated income before income taxes, is the sum of operating income, interest expense, gain (loss) on derivatives, gain on early extinguishment of debt and other income (loss). The “Other” column includes items

not related to the Company’s reportable segments, including real estate and corporate items. Corporate general and administrative costs, depreciation expense and taxes, other than income taxes, are allocated to the segments.


	Exploration and Production			Marketing		Other		Total

Three months ended March 31, 2022	(in millions)
Revenues from external customers	$	2,077		$	866	$	—	$	2,943
Intersegment revenues	(3)			1,889		—		1,886
Depreciation, depletion and amortization expense	274			1		—		275
Impairments	—			—		—		—
Operating income	1,278		(1)	21		—		1,299
Interest expense (2)	41			—		—		41
Loss on derivatives	(3,925)			—		(2)		(3,927)
Loss on extinguishment of debt	—			—		(2)		(2)
Other income, net	—			—		—		—
Provision for income taxes (2)	4			—		—		4
Assets	10,766		(3)	969		112		11,847
Capital investments (4)	544			—		—		544

Three months ended March 31, 2021
Revenues from external customers	$	719		$	353	$	—	$	1,072
Intersegment revenues	(14)			644		—		630
Depreciation, depletion and amortization expense	94			2		—		96

Operating income	295		(1)	6		—		301
Interest expense (2)	31			—		—		31
Loss on derivatives	(191)			—		—		(191)

Other income, net	1			—		—		1

Assets	4,741		(3)	396		110		5,247
Capital investments (4)	266			—		—		266

(1)Operating income (loss) for the E&P segment includes $6 million of restructuring charges for the three months ended 2021. The E&P segment operating income (loss) also includes $25 million and $1 million of merger-related expenses for the three months ended March 31, 2022 and 2021, respectively.

(2)Interest expense and provision (benefit) for income taxes by segment is an allocation of corporate amounts as they are incurred at the corporate level.

(3)E&P assets includes office, technology, water infrastructure, drilling rigs and other ancillary equipment not directly related to natural gas and oil properties.

(4)Capital investments include increases of $43 million and $38 million for the three months ended March 31, 2022 and 2021, respectively, relating to the change in accrued expenditures between periods.

The following table presents the breakout of other assets, which represent corporate assets not allocated to segments and assets for non-reportable segments at March 31, 2022 and 2021:


	As of March 31,
(in millions)	2022		2021
Cash and cash equivalents	$	21	$	4
Accounts receivable	1		—


Prepayments	6		6
Property, plant and equipment	10		15
Unamortized debt expense	9		11
Right-of-use lease assets	63		70
Non-qualified retirement plan	2		4

	$	112	$	110