Segment Information (Tables)

3 Months Ended

Mar. 31, 2023

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 2022 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, 2023	(in millions)
Revenues from external customers	$	1,439		$	679	$	—	$	2,118
Intersegment revenues	(10)			1,362		—		1,352
Depreciation, depletion and amortization expense	312			1		—		313

Operating income	578			28		—		606
Interest expense (1)	36			—		—		36
Gain on derivatives	1,401			—		—		1,401
Loss on extinguishment of debt	—			—		(19)		(19)
Other loss, net	(1)			—		—		(1)
Provision for income taxes (1)	12			—		—		12
Assets	12,260		(2)	552		125		12,937
Capital investments (3)	664			—		1		665

Three months ended March 31, 2022
Revenues from external customers	$	2,077		$	866	$	—	$	2,943
Intersegment revenues	(3)			1,889		—		1,886
Depreciation, depletion and amortization expense	274			1		—		275

Operating income	1,278		(4)	21		—		1,299
Interest expense (1)	41			—		—		41
Loss on derivatives	(3,925)			—		(2)		(3,927)
Loss on early extinguishment of debt	—			—		(2)		(2)
Other income, net	—			—		—		—
Provision from income taxes (1)	4			—		—		4
Assets	10,766		(2)	969		112		11,847
Capital investments (3)	544			—		—		544

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

(2)E&P assets includes office, technology, water infrastructure, drilling rigs and other ancillary equipment not directly related to natural gas and oil properties. This also includes deferred tax assets which are an allocation of corporate amounts as they are incurred at the corporate level.

(3)Capital investments include a decrease of $6 million and an increase of $43 million for the three months ended March 31, 2023 and March 31, 2022, respectively, relating to the change in accrued expenditures between periods.

(4)The E&P segment operating income includes $25 million of merger-related expenses related to the Indigo and GEPH Mergers for the three months ended March 31, 2022.

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, 2023 and 2022:


	As of March 31,
(in millions)	2023			2022
Cash and cash equivalents	$	3		$	21
Accounts receivable	1			1


Prepayments	12			6
Property, plant and equipment	19			10
Unamortized debt expense	18			9
Right-of-use lease assets	55			63
Non-qualified retirement plan	2			2

Long-term assets	15		(1)	—
	$	125		$	112

(1)Consists primarily of residual assets associated with the Company’s pension plan. See Note 13 for discussion on the Company’s pension plan.