Segment Information (Tables)

9 Months Ended

Sep. 30, 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 September 30, 2022	(in millions)
Revenues from external customers	$	3,243		$	1,298	$	—	$	4,541
Intersegment revenues	4			3,138		—		3,142
Depreciation, depletion and amortization expense	297			1		—		298

Operating income	2,386		(1)	28		—		2,414
Interest expense (2)	50			—		—		50
Loss on derivatives	(1,903)			—		—		(1,903)


Provision for income taxes (2)	11			—		—		11
Assets	11,359		(3)	1,633		112		13,104
Capital investments (4)	540			—		3		543

Three months ended September 30, 2021
Revenues from external customers	$	1,179		$	419	$	—	$	1,598
Intersegment revenues	(14)			947		—		933
Depreciation, depletion and amortization expense	136			2		—		138
Impairments	6			—		—		6
Operating income	628		(1)	8		—		636
Interest expense (2)	34			—		—		34
Loss on derivatives	(2,398)			—		(1)		(2,399)
Loss on early extinguishment of debt	—			—		(59)		(59)
Other loss, net	(1)			—				(1)

Assets	8,572		(3)	546		123		9,241
Capital investments (4)	291			—		—		291


	Exploration and Production			Marketing		Other		Total

Nine months ended September 30, 2022	(in millions)
Revenues from external customers	$	8,251		$	3,371	$	—	$	11,622
Intersegment revenues	(1)			7,843		—		7,842
Depreciation, depletion and amortization expense	857			4		—		861

Operating income	5,784		(1)	60		—		5,844
Interest expense (2)	139			—		—		139
Loss on derivatives	(6,707)			—		(2)		(6,709)
Loss on extinguishment of debt	—			—		(6)		(6)
Other loss, net	—			(1)		—		(1)
Provision for income taxes (2)	41			—		—		41
Assets	11,359		(3)	1,633		112		13,104
Capital investments (4)	1,669			—		3		1,672

Nine months ended September 30, 2021
Revenues from external customers	$	2,616		$	1,104	$	—	$	3,720
Intersegment revenues	(42)			2,242		—		2,200
Depreciation, depletion and amortization expense	327			7		—		334
Impairments	6			—		—		6
Operating income	1,209		(1)	21		—		1,230
Interest expense (2)	95			—		—		95
Loss on derivatives	(3,461)			—		—		(3,461)
Loss on early extinguishment of debt	—			—		(59)		(59)
Other loss, net	(1)			—		—		(1)
Benefit from income taxes (2)	—			—		—		—
Assets	8,572		(3)	546		123		9,241
Capital investments (4)	816			—		—		816

(1)Operating income for the E&P segment includes $7 million of restructuring charges for the nine months ended September 30, 2021. The E&P segment operating income also includes $35 million of merger-related expenses for the three months ended September 30, 2021, and $27 million and $39 million for the nine months ended September 30, 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 a decrease of $33 million for the three months ended September 30, 2022 and an increase of $34 million for the three months ended September 30, 2021 and increases of $44 million and $63 million for the nine months ended September 30, 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 September 30, 2022 and 2021:


	As of September 30,
(in millions)	2022		2021
Cash and cash equivalents	$	11	$	12
Accounts receivable	1		4


Prepayments	8		13
Property, plant and equipment	10		12
Unamortized debt expense	21		10
Right-of-use lease assets	58		67
Non-qualified retirement plan	3		4
Long-term hedging asset (interest rate swaps)	—		1
	$	112	$	123