SEGMENT INFORMATION (Tables)

6 Months Ended

Jun. 30, 2024

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 2023 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		Total Reportable Segments		Other		Total

Three months ended June 30, 2024	(in millions)
Revenues from external customers	$	659		$	424	$	1,083	$	—	$	1,083
Intersegment revenues	(17)			633		616		—		616
Depreciation, depletion and amortization expense	224			2		226		—		226
Impairments	631			—		631		—		631
Operating income (loss)	(715)			6		(709)		—		(709)
Interest expense (1)	37			—		37		—		37
Loss on derivatives	(35)			—		(35)		—		(35)

Other loss, net	(3)			—		(3)		—		(3)
Benefit for income taxes (1)	(176)			—		(176)		—		(176)
Assets	9,253		(2)	452		9,705		145		9,850
Capital investments (3)	429			—		429		1		430

Three months ended June 30, 2023
Revenues from external customers	$	794		$	475	$	1,269	$	—	$	1,269
Intersegment revenues	(17)			756		739		—		739
Depreciation, depletion and amortization expense	326			2		328		—		328

Operating income (loss)	(70)			13		(57)		—		(57)
Interest expense (1)	34			—		34		—		34
Gain on derivatives	317			—		317		—		317


Provision for income taxes (1)	(5)			—		(5)		—		(5)
Assets	12,413		(2)	438		12,851		150		13,001
Capital investments (3)	593			—		593		2		595


	Exploration and Production			Marketing		Total Reportable Segments		Other		Total

Six months ended June 30, 2024	(in millions)
Revenues from external customers	$	1,497		$	1,003	$	2,500	$	—	$	2,500
Intersegment revenues	(31)			1,431		1,400		—		1,400
Depreciation, depletion and amortization expense	485			3		488		—		488
Impairments	2,724			—		2,724		—		2,724
Operating income (loss)	(2,776)			10		(2,766)		—		(2,766)
Interest expense (1)	72			—		72		—		72
Gain on derivatives	91			—		91		—		91

Other loss, net	(2)			—		(2)		—		(2)
Benefit for income taxes (1)	(606)			—		(606)		—		(606)
Assets	9,253		(2)	452		9,705		145		9,850
Capital investments (4)	966			—		966		2		968

Six months ended June 30, 2023
Revenues from external customers	$	2,233		$	1,154	$	3,387	$	—	$	3,387
Intersegment revenues	(27)			2,118		2,091		—		2,091
Depreciation, depletion and amortization expense	638			3		641		—		641

Operating income (loss)	508			41		549		—		549
Interest expense (1)	70			—		70		—		70
Gain on derivatives	1,718			—		1,718		—		1,718
Loss on early extinguishment of debt	—			—		—		(19)		(19)
Other loss, net	(1)			—		(1)		—		(1)
Provision for income taxes (1)	7			—		7		—		7
Assets	12,413		(2)	438		12,851		150		13,001
Capital investments (4)	1,257			—		1,257		3		1,260

(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 decreases of $31 million and $22 million for the three months ended June 30, 2024 and June 30, 2023, respectively, and decreases of $17 million and $28 million for the six months ended June 30, 2024 and June 30, 2023, 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 as of June 30, 2024 and 2023:


	As of June 30,
(in millions)	2024		2023
Cash and cash equivalents	$	15	$	25
Accounts receivable	—		1


Prepayments	15		11

Property, plant and equipment	24		21
Unamortized debt expense	13		17
Right-of-use lease assets	48		53
Non-qualified retirement plan	3		3

Long-term deferred tax asset	2		—
Other long-term assets (1)	25		19
	$	145	$	150

(1)Consists primarily of costs associated with the development of the Company’s enterprise resource technology as of June 30, 2024 and residual assets associated with the Company’s pension plan as of June 30, 2023, respectively.