Segment Information

9 Months Ended

Sep. 30, 2019

We have two reportable operating segments. Both of these segments are organized and managed based upon geographic location and the nature of the products and services offered.


•	United States (“U.S.”) – explores for, produces and markets crude oil and condensate, NGLs and natural gas in the United States


•	International (“Int’l”) – explores for, produces and markets crude oil and condensate, NGLs and natural gas outside of the United States as well as produces and markets products manufactured from natural gas, such as LNG and methanol, in Equatorial Guinea (“E.G.”)

Information regarding assets by segment is not presented because it is not reviewed by the chief operating decision maker (“CODM”). Segment income represents income which excludes certain items not allocated to our operating segments, net of income taxes. A portion of our corporate and operations general and administrative support costs are not allocated to the operating segments. These unallocated costs primarily consist of employment costs (including pension effects), professional services, facilities and other costs associated with corporate and operations support activities. Additionally, items which affect comparability such as: gains or losses on dispositions, certain property impairments, unrealized gains or losses on commodity derivative instruments, pension settlement losses or other items (as determined by the CODM) are not allocated to operating segments.



	Three Months Ended September 30, 2019
(In millions)	U.S.		Int’l		Not Allocated to Segments				Total
Revenues from contracts with customers	$	1,172	$	77	$	—			$	1,249
Net gain (loss) on commodity derivatives	14		—		33			^(b)	47
Income from equity method investments	—		21		—				21
Net gain on disposal of assets	—		—		22			^(c)	22
Other income	3		2		1				6
Less costs and expenses:
Production	147		16		—				163
Shipping, handling and other operating	137		1		—				138
Exploration	22		—		—				22
Depreciation, depletion and amortization	589		25		8				622
Taxes other than income	80		—		1				81
General and administrative	34		5		43				82
Net interest and other	—		—		64				64
Other net periodic benefit costs	—		—		(2		)		(2		)
Income tax provision	—		10		—				10
Segment income (loss)	$	180	$	43	$	(58	)		$	165
Capital expenditures^(a)	$	667	$	1	$	7			$	675


^(a)	Includes accruals.


^(b)	Unrealized gain on commodity derivative instruments (See Note 14).


^(c)	Primarily related to the sale of our U.K. business (See Note 5).



	Three Months Ended September 30, 2018
(In millions)	U.S.			Int’l			Not Allocated to Segments				Total
Revenues from contracts with customers	$	1,347		$	191		$	—			$	1,538
Net gain (loss) on commodity derivatives	(89		)	—			19			^(b)	(70		)
Income from equity method investments	—			64			—				64
Net gain on disposal of assets	—			—			16			^(c)	16
Other income	2			4			113			^(d)	119
Less costs and expenses:
Production	172			43			—				215
Shipping, handling and other operating	136			16			—				152
Exploration	55			1			—				56
Depreciation, depletion and amortization	571			49			6				626
Impairments	—			—			8			^(e)	8
Taxes other than income	86			—			—				86
General and administrative	37			7			57				101
Net interest and other	—			—			58				58
Other net periodic benefit costs	—			(3		)	11			^(f)	8
Income tax provision	2			30			71				103
Segment income (loss)	$	201		$	116		$	(63	)		$	254
Capital expenditures^(a)	$	691		$	6		$	7			$	704


^(a)	Includes accruals.


^(b)	Unrealized gain on commodity derivative instruments (See Note 14).


^(c)	Sales of certain non-core proved properties in our International and United States segments.


^(d)	Reduction of our asset retirement obligation in our International segment (See Note 12).


^(e)	Due to the anticipated sale of non-core property in our International segment (See Note 11).


^(f)	Includes pension settlement loss of $10 million (See Note 19).



	Nine Months Ended September 30, 2019
(In millions)	U.S.		Int’l			Not Allocated to Segments				Total
Revenues from contracts with customers	$	3,434	$	396		$	—			$	3,830
Net gain (loss) on commodity derivatives	41		—			(69		)	^(b)	(28		)
Income from equity method investments	—		63			—				63
Net gain on disposal of assets	—		—			56			^(c)	56
Other income	8		7			39			^(d)	54
Less costs and expenses:
Production	433		112			(2		)		543
Shipping, handling and other operating	424		24			14				462
Exploration	107		—			—				107
Depreciation, depletion and amortization	1,664		97			20				1,781
Impairments	—		—			24			^(e)	24
Taxes other than income	233		—			(1		)		232
General and administrative	94		20			149				263
Net interest and other	—		—			177				177
Other net periodic benefit costs	—		(3		)	(6		)		(9		)
Income tax provision (benefit)	1		16			(122		)	^(f)	(105		)
Segment income (loss)	$	527	$	200		$	(227	)		$	500
Capital expenditures^(a)	$	1,959	$	16		$	15			$	1,990


^(a)	Includes accruals.


^(b)	Unrealized loss on commodity derivative instruments (See Note 14).


^(c)	Primarily related to the sale of our working interest in the Droshky field (Gulf of Mexico) and the sale of our U.K. business (See Note 5).


^(d)	Primarily related to the indemnification of certain tax liabilities in connection with the 2010-2011 Federal Tax Audit (See Note 8).


^(e)	Primarily a result of anticipated sales of non-core proved properties in our International and United States segments (See Note 11).


^(f)	Primarily relates to the settlement of the 2010-2011 Federal Tax Audit (See Note 8).



	Nine Months Ended September 30, 2018
(In millions)	U.S.			Int’l			Not Allocated to Segments				Total
Revenue from contracts with customers	$	3,693		$	829		$	—			$	4,522
Net gain (loss) on commodity derivatives	(255		)	—			(69		)	^(b)	(324		)
Income from equity method investments	—			161			—				161
Net gain on disposal of assets	—			—			323			^(c)	323
Other income	7			7			121			^(d)	135
Less costs and expenses:
Production	476			162			(1		)		637
Shipping, handling and other operating	364			45			(1		)		408
Exploration	170			3			—				173
Depreciation, depletion and amortization	1,655			153			20				1,828
Impairments	—			—			50			^(e)	50
Taxes other than income	218			—			(3		)		215
General and administrative	108			25			173				306
Net interest and other	—			—			168				168
Other net periodic benefit costs	—			(7		)	18			^(f)	11
Income tax provision	5			226			84				315
Segment income (loss)	$	449		$	390		$	(133	)		$	706
Capital expenditures^(a)	$	1,943		$	28		$	17			$	1,988


^(a)	Includes accruals.


^(b)	Unrealized loss on commodity derivative instruments (See Note 14).


^(c)	Primarily related to the gain on sale of our Libya subsidiary (See Note 5).


^(d)	Reduction of our asset retirement obligation in our International segment (See Note 12).


^(e)	Due to the anticipated sales of certain non-core proved properties in our International and United States segments (See Note 11).

^(f)

Includes pension settlement loss of $16 million (See Note 19).