10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 10-Q

(Mark One)
☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the Quarterly Period Ended	September 30, 2021

OR

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from _____ to _____

Commission file number 1-1513

Marathon Oil Corporation

(Exact name of registrant as specified in its charter)

Delaware	25-0996816
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

990 Town and Country Boulevard, Houston, Texas  

77024-2217

(Address of principal executive offices)

(713) 629-6600

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $1.00	MRO	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.       Yes þ No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes þ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	þ	Accelerated filer		o	Non-accelerated filer		o
Smaller reporting company		☐	Emerging growth company			☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o    

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ☐ No þ  

There were 778,536,897 shares of Marathon Oil Corporation common stock outstanding as of October 29, 2021.

MARATHON OIL CORPORATION

Unless the context otherwise indicates, references to “Marathon Oil,” “we,” “our,” or “us” in this Form 10-Q are references to Marathon Oil Corporation, including its wholly owned and majority-owned subsidiaries, and its ownership interests in equity method investees (corporate entities, partnerships, limited liability companies and other ventures over which Marathon Oil exerts significant influence by virtue of its ownership interest).

For certain industry specific terms used in this Form 10-Q, please see “Definitions” in our 2020 Annual Report on Form 10-K.

	Table of Contents
		Page
Part I - FINANCIAL INFORMATION
Item 1.	Financial Statements:
	Consolidated Statements of Income (Unaudited)	2
	Consolidated Statements of Comprehensive Income (Unaudited)	3
	Consolidated Balance Sheets (Unaudited)	4
	Consolidated Statements of Cash Flows (Unaudited)	5
	Consolidated Statements of Stockholders' Equity (Unaudited)	6
	Notes to Consolidated Financial Statements (Unaudited)	8
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	29
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	44
Item 4.	Controls and Procedures	44
Part II - OTHER INFORMATION
Item 1.	Legal Proceedings	45
Item 1A.	Risk Factors	45
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	45
Item 6.	Exhibits	45
	Signatures	46

1

Part I – FINANCIAL INFORMATION

Item 1. Financial Statements

MARATHON OIL CORPORATION

Consolidated Statements of Income (Unaudited)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions, except per share data)	2021		2020		2021		2020
Revenues and other income:
Revenues from contracts with customers	$	1,438	$	761	$	3,869	$	2,275
Net gain (loss) on commodity derivatives	(79)		(1)		(398)		131
Income (loss) from equity method investments	86		(10)		179		(174)
Net gain on disposal of assets	7		1		8		8
Other income	1		3		9		16
Total revenues and other income	1,453		754		3,667		2,256
Costs and expenses:
Production	131		129		378		418
Shipping, handling and other operating	219		183		538		432
Exploration	63		27		109		81
Depreciation, depletion and amortization	522		554		1,550		1,795
Impairments	13		1		60		98
Taxes other than income	88		49		236		145
General and administrative	70		53		227		217
Total costs and expenses	1,106		996		3,098		3,186
Income (loss) from operations	347		(242)		569		(930)
Net interest and other	(57)		(62)		(129)		(195)
Other net periodic benefit (costs) credits	—		(6)		2		1
Loss on early extinguishment of debt	(102)		—		(121)		—
Income (loss) before income taxes	188		(310)		321		(1,124)
Provision (benefit) for income taxes	4		7		24		(11)
Net income (loss)	$	184	$	(317)	$	297	$	(1,113)
Net income (loss) per share:
Basic	$	0.23	$	(0.40)	$	0.38	$	(1.41)
Diluted	$	0.23	$	(0.40)	$	0.38	$	(1.41)
Weighted average common shares outstanding:
Basic	789		790		791		792
Diluted	789		790		791		792

 The accompanying notes are an integral part of these consolidated financial statements.

2

MARATHON OIL CORPORATION

Consolidated Statements of Comprehensive Income (Unaudited)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions)	2021		2020		2021		2020
Net income (loss)	$	184	$	(317)	$	297	$	(1,113)
Other comprehensive income (loss), net of tax
Change in actuarial gain (loss) and other for postretirement and postemployment plans	4		9		17		(33)
Change in derivative hedges unrecognized gain (loss)	1		11		20		(15)
Reclassification of de-designated forward interest rate swaps	—		—		(28)		—
Other comprehensive income (loss)	5		20		9		(48)
Comprehensive income (loss)	$	189	$	(297)	$	306	$	(1,161)

 The accompanying notes are an integral part of these consolidated financial statements.

3

MARATHON OIL CORPORATION

Consolidated Balance Sheets (Unaudited)

	September 30,		December 31,
(In millions, except par value and share amounts)	2021		2020
Assets
Current assets:
Cash and cash equivalents	$	485	$	742
Receivables, less reserve of $19 and $22	1,068		747
Inventories	77		76
Other current assets	25		47
Total current assets	1,655		1,612
Equity method investments	489		447
Property, plant and equipment, less accumulated depreciation, depletion and amortization of $21,914 and $20,358	14,734		15,638
Other noncurrent assets	283		259
Total assets	$	17,161	$	17,956
Liabilities
Current liabilities:
Accounts payable	$	1,028	$	837
Payroll and benefits payable	64		57
Accrued taxes	131		72
Other current liabilities	417		247
Long-term debt due within one year	36		—
Total current liabilities	1,676		1,213
Long-term debt	3,977		5,404
Deferred tax liabilities	132		163
Defined benefit postretirement plan obligations	137		180
Asset retirement obligations	286		241
Deferred credits and other liabilities	157		194
Total liabilities	6,365		7,395
Commitments and contingencies
Stockholders’ Equity
Preferred stock – no shares issued or outstanding (no par value, 26 million shares authorized)	$	—	$	—
Common stock:
Issued – 937 million shares (par value $1 per share, 1.925 billion shares authorized at September 30, 2021 and December 31, 2020)	937		937
Held in treasury, at cost – 148 million shares	(4,105)		(4,089)
Additional paid-in capital	7,213		7,174
Retained earnings	6,669		6,466
Accumulated other comprehensive income	82		73
Total stockholders’ equity	10,796		10,561
Total liabilities and stockholders’ equity	$	17,161	$	17,956

 The accompanying notes are an integral part of these consolidated financial statements.

4

MARATHON OIL CORPORATION

Consolidated Statements of Cash Flows (Unaudited)

	Nine Months Ended
	September 30,
(In millions)	2021		2020
Increase (decrease) in cash and cash equivalents
Operating activities:
Net income (loss)	$	297	$	(1,113)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization	1,550		1,795
Impairments	60		98
Exploratory dry well costs and unproved property impairments	101		63
Net gain on disposal of assets	(8)		(8)
Loss on early extinguishment of debt	121		—
Deferred income taxes	(32)		(2)
Unrealized (gain) loss on derivative instruments, net	130		(39)
Pension and other post retirement benefits, net	(25)		(35)
Stock-based compensation	29		43
Equity method investments, net	(57)		189
Changes in:
Current receivables	(313)		467
Inventories	(1)		(5)
Current accounts payable and accrued liabilities	228		(478)
Other current assets and liabilities	66		83
All other operating, net	(53)		(3)
Net cash provided by operating activities	2,093		1,055
Investing activities:
Additions to property, plant and equipment	(772)		(1,090)
Additions to other assets	—		15
Acquisitions, net of cash acquired	—		(1)
Disposal of assets, net of cash transferred to the buyer	29		9
Equity method investments - return of capital	15		7
All other investing, net	—		—
Net cash used in investing activities	(728)		(1,060)
Financing activities:
Borrowings	—		400
Debt repayment	(1,400)		—
Debt extinguishment costs	(117)		—
Purchases of common stock	(10)		(92)
Dividends paid	(94)		(40)
All other financing, net	(1)		(2)
Net cash provided by (used in) financing activities	(1,622)		266
Net increase (decrease) in cash and cash equivalents	(257)		261
Cash and cash equivalents at beginning of period	742		858
Cash and cash equivalents at end of period	$	485	$	1,119

The accompanying notes are an integral part of these consolidated financial statements.

5

MARATHON OIL CORPORATION

Consolidated Statements of Stockholders’ Equity (Unaudited)

	Total Equity of Marathon Oil Stockholders
(In millions)	Preferred Stock		Common Stock		Treasury Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Equity
Nine Months Ended September 30, 2020
December 31, 2019 Balance	$	—	$	937	$	(4,089)	$	7,207	$	7,993	$	105	$	12,153
Cumulative-effect adjustment	—		—		—		—		(12)		—		(12)
Shares issued - stock-based compensation	—		—		121		(83)		—		—		38
Shares repurchased	—		—		(91)		—		—		—		(91)
Stock-based compensation	—		—		—		(22)		—		—		(22)
Net income (loss)	—		—		—		—		(46)		—		(46)
Other comprehensive income (loss)	—		—		—		—		—		(22)		(22)
Dividends paid (per share amount of $0.05)	—		—		—		—		(40)		—		(40)
March 31, 2020 Balance	$	—	$	937	$	(4,059)	$	7,102	$	7,895	$	83	$	11,958
Shares issued - stock-based compensation	—		—		(28)		20		—		—		(8)
Stock-based compensation	—		—		—		21		—		—		21
Net income (loss)	—		—		—		—		(750)		—		(750)
Other comprehensive loss	—		—		—		—		—		(46)		(46)
June 30, 2020 Balance	$	—	$	937	$	(4,087)	$	7,143	$	7,145	$	37	$	11,175
Shares issued - stock-based compensation	—		—		(2)		2		—		—		—
Stock-based compensation	—		—		—		14		—		—		14
Net income (loss)	—		—		—		—		(317)		—		(317)
Other comprehensive income	—		—		—		—		—		20		20
September 30, 2020 Balance	$	—	$	937	$	(4,089)	$	7,159	$	6,828	$	57	$	10,892

The accompanying notes are an integral part of these consolidated financial statements.

6

MARATHON OIL CORPORATION

Consolidated Statements of Stockholders’ Equity (Unaudited)

	Total Equity of Marathon Oil Stockholders
(In millions)	Preferred Stock		Common Stock		Treasury Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Equity
Nine Months Ended September 30, 2021
December 31, 2020 Balance	$	—	$	937	$	(4,089)	$	7,174	$	6,466	$	73	$	10,561
Shares issued - stock based compensation	—		—		(15)		10		—		—		(5)
Shares repurchased	—		—		(9)		—		—		—		(9)
Stock-based compensation	—		—		—		11		—		—		11
Net income (loss)	—		—		—		—		97		—		97
Other comprehensive income (loss)	—		—		—		—		—		39		39
Dividends paid (per share amount of $0.03)	—		—		—		—		(23)		—		(23)
March 31, 2021 Balance	$	—	$	937	$	(4,113)	$	7,195	$	6,540	$	112	$	10,671
Shares issued - stock based compensation	—		—		8		1		—		—		9
Stock-based compensation	—		—		—		5		—		—		5
Net income (loss)	—		—		—		—		16		—		16
Other comprehensive income (loss)	—		—		—		—		—		(35)		(35)
Dividends paid (per share amount of $0.04)	—		—		—		—		(32)		—		(32)
June 30, 2021 Balance	$	—	$	937	$	(4,105)	$	7,201	$	6,524	$	77	$	10,634
Shares issued - stock based compensation	—		—		—		1		—		—		1
Shares repurchased	—		—		—		—		—		—		—
Stock-based compensation	—		—		—		11		—		—		11
Net income (loss)	—		—		—		—		184		—		184
Other comprehensive income (loss)	—		—		—		—		—		5		5
Dividends paid (per share amount of $0.05)	—		—		—		—		(39)		—		(39)
September 30, 2021 Balance	$	—	$	937	$	(4,105)	$	7,213	$	6,669	$	82	$	10,796

The accompanying notes are an integral part of these consolidated financial statements.

7

MARATHON OIL CORPORATION

Notes to Consolidated Financial Statements (Unaudited)

1.    Basis of Presentation

These consolidated financial statements are unaudited; however, in the opinion of management, these statements reflect all adjustments necessary for a fair statement of the results for the periods reported. All such adjustments are of a normal recurring nature unless disclosed otherwise. These consolidated financial statements, including notes, have been prepared in accordance with the applicable rules of the SEC and do not include all of the information and disclosures required by U.S. GAAP for complete financial statements.

These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2020 Annual Report on Form 10-K. The results of operations for the third quarter and first nine months of 2021 are not necessarily indicative of the results to be expected for the full year.

2.    Accounting Standards

No accounting standards were adopted in the third quarter or first nine months of 2021 that had a material impact on our consolidated financial statements.

3.    Income (loss) and Dividends per Common Share

Basic income (loss) per share is based on the weighted average number of common shares outstanding. Diluted income (loss) per share assumes exercise of stock options in all periods, provided the effect is not antidilutive. The per share calculations below exclude 4 million of stock options for each of the three and nine months ended September 30, 2021 and 6 million of stock options for each of the three and nine months ended September 30, 2020 that were antidilutive.

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions, except per share data)	2021		2020		2021		2020
Net income (loss)	$	184	$	(317)	$	297	$	(1,113)
Weighted average common shares outstanding	789		790		791		792
Effect of dilutive securities	—		—		—		—
Weighted average common shares, diluted	789		790		791		792
Net income (loss) per share:
Basic	$	0.23	$	(0.40)	$	0.38	$	(1.41)
Diluted	$	0.23	$	(0.40)	$	0.38	$	(1.41)
Dividends per share	$	0.05	$	—	$	0.12	$	0.05

4.    Revenues

The majority of our revenues are derived from the sale of crude oil and condensate, NGLs and natural gas under spot and term agreements with our customers in the United States and Equatorial Guinea.

As of September 30, 2021 and December 31, 2020, receivables from contracts with customers, included in receivables, less reserves were $900 million and $572 million, respectively.

The following tables present our revenues from contracts with customers disaggregated by product type and geographic areas for the three and nine months ended September 30:

8

MARATHON OIL CORPORATION

Notes to Consolidated Financial Statements (Unaudited)

United States

	Three Months Ended September 30, 2021
(In millions)	Eagle Ford		Bakken		Oklahoma		Northern Delaware		Other U.S.		Total
Crude oil and condensate	$	391	$	425	$	74	$	75	$	19	$	984
Natural gas liquids	50		63		53		12		5		183
Natural gas	38		29		62		12		3		144
Other	2		—		—		—		62		64
Revenues from contracts with customers	$	481	$	517	$	189	$	99	$	89	$	1,375

	Three Months Ended September 30, 2020
(In millions)	Eagle Ford		Bakken		Oklahoma		Northern Delaware		Other U.S.		Total
Crude oil and condensate	$	190	$	230	$	65	$	53	$	14	$	552
Natural gas liquids	22		15		28		7		1		73
Natural gas	18		9		33		6		3		69
Other	1		—		—		—		27		28
Revenues from contracts with customers	$	231	$	254	$	126	$	66	$	45	$	722

	Nine Months Ended September 30, 2021
(In millions)	Eagle Ford		Bakken		Oklahoma		Northern Delaware		Other U.S.		Total
Crude oil and condensate	$	1,003	$	1,208	$	206	$	229	$	65	$	2,711
Natural gas liquids	109		152		127		32		10		430
Natural gas	114		71		212		42		11		450
Other	6		—		—		—		99		105
Revenues from contracts with customers	$	1,232	$	1,431	$	545	$	303	$	185	$	3,696

	Nine Months Ended September 30, 2020
(In millions)	Eagle Ford		Bakken		Oklahoma		Northern Delaware		Other U.S.		Total
Crude oil and condensate	$	639	$	707	$	181	$	160	$	54	$	1,741
Natural gas liquids	53		28		62		14		4		161
Natural gas	62		22		86		13		7		190
Other	4		—		—		—		58		62
Revenues from contracts with customers	$	758	$	757	$	329	$	187	$	123	$	2,154

International (E.G.)

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2021		2020		2021		2020
Crude oil and condensate	$	56	$	31	$	151	$	96
Natural gas liquids	—		1		2		3
Natural gas	6		7		18		22
Other	1		—		2		—
Revenues from contracts with customers	$	63	$	39	$	173	$	121

9

MARATHON OIL CORPORATION

Notes to Consolidated Financial Statements (Unaudited)

5.    Segment Information

    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.”)

    Segment income represents income that 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, impairments of proved and certain unproved properties, goodwill, and equity method investments, unrealized gains or losses on commodity and interest rate derivative instruments, effects of pension settlements and curtailments or other items (as determined by the chief operating decision maker (“CODM”)) are not allocated to operating segments.

	Three Months Ended September 30, 2021
(In millions)	U.S.		Int’l		Not Allocated to Segments			Total
Revenues from contracts with customers	$	1,375	$	63	$	—		$	1,438
Net gain (loss) on commodity derivatives	(106)		—		27		(b)	(79)
Income (loss) from equity method investments	—		86		—			86
Net gain on disposal of assets	—		—		7			7
Other income	—		—		1			1
Less costs and expenses:
Production	119		12		—			131
Shipping, handling and other operating	209		7		3			219
Exploration	15		—		48		(c)	63
Depreciation, depletion and amortization	499		17		6			522
Impairments	—		—		13		(d)	13
Taxes other than income	88		—		—			88
General and administrative	29		3		38			70
Net interest and other	—		—		57		(e)	57
Other net periodic benefit costs	—		—		—			—
Loss on early extinguishment of debt	—		—		102		(f)	102
Income tax provision (benefit)	5		17		(18)			4
Segment income (loss)	$	305	$	93	$	(214)		$	184
Total assets	$	15,528	$	1,071	$	562		$	17,161
Capital expenditures(a)	$	303	$	2	$	3		$	308

(a)Includes accruals.

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

(c)Includes unproved property impairments of $20 million for Louisiana exploration leases and $16 million related to the disposition of a Permian lease. Also includes $12 million of dry well costs associated with drilled and uncompleted wells, primarily in Permian (See Note 9).

(d)Includes impairments of $5 million for proved properties in Permian (See Note 10) and $8 million associated with decommissioning costs for non-producing long-lived assets in GOM (See Note 10, Note 11, and Note 23).

(e)Includes a $5 million gain on 2022 interest rate swaps and a $3 million gain on 2025 interest rate swaps (See Note 14).

(f)Represents costs related to a make-whole provision premium and the write off of issuance costs related to the redemption of the 2025 Notes in September 2021 (See Note 16).

10

MARATHON OIL CORPORATION

Notes to Consolidated Financial Statements (Unaudited)

	Three Months Ended September 30, 2020
(In millions)	U.S.		Int’l		Not Allocated to Segments			Total
Revenues from contracts with customers	$	722	$	39	$	—		$	761
Net gain (loss) on commodity derivatives	35		—		(36)		(b)	(1)
Income (loss) from equity method investments	—		8		(18)			(10)
Net gain on disposal of assets	—		—		1			1
Other income	1		1		1			3
Less costs and expenses:
Production	118		11		—			129
Shipping, handling and other operating	154		1		28			183
Exploration	21		—		6			27
Depreciation, depletion and amortization	530		19		5			554
Impairments	—		—		1			1
Taxes other than income	48		—		1			49
General and administrative	25		3		25			53
Net interest and other	—		—		62			62
Other net periodic benefit costs	—		—		6		(c)	6
Income tax provision (benefit)	(3)		6		4			7
Segment income (loss)	$	(135)	$	8	$	(190)		$	(317)
Total assets	$	16,396	$	1,104	$	1,163		$	18,663
Capital expenditures(a)	$	176	$	—	$	1		$	177

(a)Includes accruals.

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

(c)Includes pension settlement loss of $9 million (See Note 19).

11

MARATHON OIL CORPORATION

Notes to Consolidated Financial Statements (Unaudited)

	Nine Months Ended September 30, 2021
(In millions)	U.S.		Int’l		Not Allocated to Segments			Total
Revenues from contracts with customers	$	3,696	$	173	$	—		$	3,869
Net loss on commodity derivatives	(268)		—		(130)		(b)	(398)
Income (loss) from equity method investments	—		179		—			179
Net gain on disposal of assets	—		—		8			8
Other income	4		3		2			9
Less costs and expenses:
Production	343		35		—			378
Shipping, handling and other operating	506		13		19			538
Exploration	54		—		55		(c)	109
Depreciation, depletion and amortization	1,477		54		19			1,550
Impairments	—		—		60		(d)	60
Taxes other than income	238		—		(2)			236
General and administrative	79		9		139		(e)	227
Net interest and other	—		—		129		(f)	129
Other net periodic benefit credit	—		—		(2)			(2)
Loss on early extinguishment of debt	—		—		121		(g)	121
Income tax provision (benefit)	11		33		(20)			24
Segment income (loss)	$	724	$	211	$	(638)		$	297
Total assets	$	15,528	$	1,071	$	562		$	17,161
Capital expenditures(a)	$	770	$	4	$	7		$	781

(a)Includes accruals.

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

(c)Includes unproved property impairments of $20 million for Louisiana exploration leases and $16 million related to the disposition of a lease in Permian. Also includes $12 million of dry well costs associated with drilled and uncompleted wells, primarily in Permian (See Note 9).

(d)Includes impairments of $24 million for central facilities in Eagle Ford (See Note 10), $5 million for proved properties in Permian (See Note 10), and $30 million associated with decommissioning costs for non-producing long-lived assets in GOM (See Note 10, Note 11, and Note 23).

(e)Includes $13 million associated with the termination of an aircraft lease agreement and $12 million arising from severance expenses associated with a workforce reduction.

(f)Includes a $24 million gain on 2022 interest rate swaps and a $34 million gain on 2025 interest rate swaps (See Note 14).

(g)Represents costs related to a make-whole provision premium and the write off of unamortized discount and issuance costs in regards to the redemption of the 2022 Notes in April 2021 and 2025 Notes in September 2021 (See Note 16).

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MARATHON OIL CORPORATION

Notes to Consolidated Financial Statements (Unaudited)

	Nine Months Ended September 30, 2020
(In millions)	U.S.		Int’l		Not Allocated to Segments			Total
Revenue from contracts with customers	$	2,154	$	121	$	—		$	2,275
Net gain on commodity derivatives	92		—		39		(b)	131
Loss from equity method investments	—		(4)		(170)		(c)	(174)
Net gain on disposal of assets	—		—		8			8
Other income	8		5		3			16
Less costs and expenses:
Production	375		43		—			418
Shipping, handling and other operating	385		5		42			432
Exploration	75		—		6			81
Depreciation, depletion and amortization	1,716		62		17			1,795
Impairments	—		—		98		(d)	98
Taxes other than income	144		—		1			145
General and administrative	89		10		118		(e)	217
Net interest and other	—		—		195			195
Other net periodic benefit credit	—		—		(1)		(f)	(1)
Income tax provision (benefit)	(10)		1		(2)			(11)
Segment income (loss)	$	(520)	$	1	$	(594)		$	(1,113)
Total assets	$	16,396	$	1,104	$	1,163		$	18,663
Capital expenditures(a)	$	874	$	—	$	10		$	884

(a)Includes accruals.

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

(c)Partial impairment of investment in equity method investee (See Note 22).

(d)Includes the full impairment of the International reporting unit goodwill of $95 million (See Note 13).

(e)Includes severance expenses associated with workforce reductions of $15 million.

(f)Includes pension settlement loss of $25 million and pension curtailment gain of $17 million (See Note 19).

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MARATHON OIL CORPORATION

Notes to Consolidated Financial Statements (Unaudited)

6.    Income Taxes

Effective Tax Rate

The effective income tax rate is influenced by a variety of factors including the geographic and functional sources of income and the relative magnitude of these sources of income. The difference between the total provision and the sum of the amounts allocated to segments is reported in the “Not Allocated to Segments” column of the tables in Note 5.

For the three and nine months ended September 30, 2021 and 2020, our effective income tax rates were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Effective income tax rate	2	%	(2)	%	7	%	1	%

Our effective income tax rate was different from our U.S. statutory tax rate of 21% for the three and nine months ended September 30, 2021 and 2020 as a result of the income mix of our U.S. and E.G. operations, including the income mix within E.G. between equity method investees and subsidiaries. At September 30, 2021, we have a full valuation allowance on net federal deferred tax assets in the U.S., which results in no federal deferred tax expense or benefit on current year U.S. activity. We intend to continue a full valuation allowance on these deferred tax assets until there is sufficient evidence to support the reversal of all or some portion of the allowance. However, if current commodity prices are sustained and absent any additional objective negative evidence, we expect it is reasonably possible that sufficient positive evidence will exist within the next 12 months to adjust our current valuation allowance position. Exact timing and amount of the adjustment to the valuation allowance is unknown as this time.

7.    Credit Losses

    The majority of our receivables are from purchasers of commodities or joint interest owners in properties we operate, both of which are recorded at estimated or invoiced amounts and do not bear interest. The majority of these receivables have payment terms of 30 days or less. At the end of each reporting period, we assess the collectability of our receivables and estimate the expected credit losses using historical data, current market conditions, reasonable and supportable forecasts of future economic conditions and other data as deemed appropriate.

Changes in the allowance for doubtful accounts balance were as follows:    

(In millions)	September 30, 2021		December 31, 2020
Beginning balance as of January 1	$	22	$	11
Cumulative-effect adjustment	—		12
Current period provision(a)	1		22
Current period write offs	(1)		(13)
Recoveries of amounts previously reserved	(3)		(10)
Ending balance	$	19	$	22

(a)As of December 31, 2020, the current period provision consisted of $10 million in joint interest receivables and $12 million in trade receivables.

8.    Inventories

    Crude oil and natural gas are recorded at weighted average cost and carried at the lower of cost or net realizable value. Supplies and other items consist principally of tubular goods and equipment which are valued at weighted average cost and reviewed periodically for obsolescence or impairment when market conditions indicate.

(In millions)	September 30, 2021		December 31, 2020
Crude oil and natural gas	$	13	$	10
Supplies and other items	64		66
Inventories	$	77	$	76

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MARATHON OIL CORPORATION

Notes to Consolidated Financial Statements (Unaudited)

9.    Property, Plant and Equipment

(In millions)	September 30, 2021		December 31, 2020
United States	$	14,317	$	15,156
International	364		414
Corporate	53		68
Net property, plant and equipment	$	14,734	$	15,638

As of September 30, 2021 and December 31, 2020, we had $125 million and $98 million, respectively, of exploratory well costs capitalized greater than one year related to suspended wells. Management believes these wells exhibit sufficient quantities of hydrocarbons to justify potential development. The vast majority of the suspended wells require completion activities and installation of infrastructure in order to classify the reserves as proved. During the third quarter of 2021, we recorded $12 million of dry well costs associated with drilled and uncompleted exploratory wells, primarily in the Permian.

10.    Impairments

    The following table summarizes impairment charges of proved properties, goodwill and equity method investments and their corresponding fair values.

	Three Months Ended September 30,
	2021				2020
(In millions)	Fair Value		Impairment		Fair Value		Impairment
Long-lived assets held for use	$	—	$	5	$	—	$	1
Asset retirement costs of long-lived assets	—		8		—		—
Equity method investment	$	—	$	—	$	23	$	18

	Nine Months Ended September 30,
	2021				2020
(In millions)	Fair Value		Impairment		Fair Value		Impairment
Long-lived assets held for use	$	—	$	30	$	—	$	3
Asset retirement costs of long-lived assets	—		30		—		—
Goodwill	—		—		—		95
Equity method investment	$	—	$	—	$	119	$	170

•2021 – During the second quarter of 2021, we recorded an impairment expense of $24 million associated with two central facilities located in Eagle Ford. Decommissioning activities commenced during the second quarter, which included the re-routing of existing wells. During the third quarter of 2021, we recorded an impairment expense of $5 million associated with our interests in outside operated conventional assets located in New Mexico.

During the nine months ended September 30, 2021, we also recognized an incremental $30 million of impairment expense associated with an increase in the estimated future decommissioning costs of certain non-producing wells, pipelines and production facilities for previously divested offshore assets located in the Gulf of Mexico. In a prior reporting period, we recorded a $7 million liability in our consolidated balance sheet associated with these assets, thereby increasing the total recognized asset retirement obligation to $37 million as of September 30, 2021. See Note 11 and Note 23 for further information.

The combined effects of these items were recorded within the Impairments line item within our consolidated statements of income.

•2020 – Impairments for the nine months ended September 30, 2020 include charges recognized for our equity method investments of $170 million. During the second and third quarters of 2020, the continuation of the depressed commodity prices, along with a reduction of our long-term price forecasts of a gas index in which one of our equity method investees transacts, caused us to perform a review of one of our equity method investments. Our review concluded that a loss of our investment value in one of our equity method investees was other than temporary and we recorded impairments of $152

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MARATHON OIL CORPORATION

Notes to Consolidated Financial Statements (Unaudited)

million in the second quarter of 2020 and an additional $18 million in the third quarter of 2020.

The impairments of our equity method investments were recognized in income (loss) from equity method investments in our consolidated statements of income. Additionally, the impairments caused us to incur a basis differential between the net book value of our investment and the amount of our underlying share of equity in the investee’s net assets. This differential is being accreted into income over the remaining useful life of the investee’s primary assets.

Impairments for the first nine months of 2020 also included $95 million of goodwill impairment in the International reporting unit. See Note 13 for further information.

11.    Asset Retirement Obligations

Asset retirement obligations primarily consist of estimated costs to remove, dismantle and restore land or seabed at the end of oil and gas production operations. Changes in asset retirement obligations were as follows:

	September 30,
(In millions)	2021		2020
Beginning balance as of January 1	$	254	$	255
Incurred liabilities, including acquisitions	9		3
Settled liabilities, including dispositions	(3)		(11)
Accretion expense (included in depreciation, depletion and amortization)	9		9
Revisions of estimates	40		(8)
Ending balance as of September 30, total	$	309	$	248
Ending balance as of September 30, short-term	$	23	$	12

In the first nine months of 2021, we had revisions of estimates totaling $37 million related to anticipated costs for decommissioning certain wells, pipelines and production facilities for previously divested offshore non-producing long-lived assets located in the Gulf of Mexico. As of September 30, 2021, $14 million of these Gulf of Mexico related revisions of estimates were classified as short-term. See Note 23 for further information. Of the $37 million, approximately $30 million was recognized as impairment expense during the nine months ended September 30, 2021. See Note 10 for further information.

12. Leases

Lessee

Balance sheet information related to right-of-use (‘ROU’) assets and lease liabilities was as follows:

(In millions)	Balance Sheet Location:	September 30, 2021		December 31, 2020
ROU assets:
Operating leases	Other noncurrent assets	$	74	$	133
Finance leases	Other noncurrent assets	35		—
Total ROU assets		$	109	$	133
Lease liabilities:
Current liabilities
Operating leases	Other current liabilities	$	44	$	70
Finance leases	Other current liabilities	5		—
Noncurrent liabilities
Operating leases	Deferred credits and other liabilities	34		67
Finance leases	Deferred credits and other liabilities	30		—
Total Lease liabilities		$	113	$	137

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MARATHON OIL CORPORATION

Notes to Consolidated Financial Statements (Unaudited)

Operating Leases

We enter into various lease agreements to support our operations including drilling rigs, well fracturing equipment, compressors, buildings, aircraft, vessels, vehicles and miscellaneous field equipment. We primarily act as a lessee in these transactions and the majority of our existing leases are classified as either short-term or long-term operating leases.

Finance Leases

In 2018, we signed an agreement with an owner/lessor to construct and lease a new build-to-suit office building in Houston, Texas. As of September 30, 2021, we estimate that project costs total approximately $302 million, including land acquisition and construction costs. The initial lease term is five years and commenced in late September 2021 after the new Houston office was ready for occupancy. In the third quarter of 2021, we recorded a $32 million ROU asset and corresponding lease liability associated with the building, which was classified as a finance lease. At the end of the initial lease term, we can negotiate to extend the lease term for an additional five years, subject to the approval of the participants; purchase the property subject to certain terms and conditions; or remarket the property to an unrelated third party. The lease contains a residual value guarantee of 100% of the total acquisition and construction costs. The weighted-average remaining lease term is five years and the discount rate is 2.25%.

Lessor

Our wholly owned subsidiary, Marathon E.G. Production Limited, is a lessor for residential housing in E.G., which is occupied by EGHoldings, a related party equity method investee – see Note 22. The lease was classified as an operating lease and expires in 2024, with a lessee option to extend through 2034. Lease payments are fixed for the entire duration of the agreement at approximately $6 million per year. Our lease income is reported in other income in our consolidated statements of income for all periods presented. The undiscounted cash flows to be received under this lease agreement are summarized below.

(In millions)	Operating Lease Future Cash Receipts
2021	$	2
2022	6
2023	6
2024	6
2025	6
Thereafter	56
Total undiscounted cash flows	$	82

13.  Goodwill

Goodwill is tested for impairment on an annual basis, or between annual tests when events or changes in circumstances indicate the fair value of a reporting unit with goodwill may have been reduced below its carrying value. During the first quarter of 2020, a global pandemic caused a substantial deterioration in the worldwide demand of hydrocarbons. The commensurate decline in our market capitalization indicated that it was more likely than not that the fair value of the International reporting unit was less than its carrying value.

We estimated the fair value of our International reporting unit using a combination of market and income approaches. The market approach referenced observable inputs specific to us and our industry, such as the price of our common equity, our enterprise value and valuation multiples of us and peers from the investor analyst community. The income approach utilized discounted cash flows, which were based on forecasted assumptions. These valuation methodologies represent Level 3 fair value measurements. Based on the results, we concluded our goodwill was fully impaired, and recorded an impairment of $95 million in the consolidated statements of income for the first quarter of 2020. This represented the entirety of our goodwill on our consolidated balance sheet.

14.  Derivatives

For further information regarding the fair value measurement of derivative instruments, see Note 15. All of our commodity derivatives are subject to enforceable master netting arrangements or similar agreements under which we report net amounts.

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MARATHON OIL CORPORATION

Notes to Consolidated Financial Statements (Unaudited)

The following tables present the gross fair values of derivative instruments and the reported net amounts along with where they appear on the consolidated balance sheets.

	September 30, 2021
(In millions)	Asset		Liability		Net Asset (Liability)		Balance Sheet Location
Not Designated as Hedges
Commodity	$	—	$	152	$	(152)	Other current liabilities
Commodity	—		1		(1)		Deferred credits and other liabilities
Interest Rate	70		—		70		Other noncurrent assets
Interest Rate	—		1		(1)		Deferred credits and other liabilities
Total Not Designated as Hedges	$	70	$	154	$	(84)
Cash Flow Hedges
Interest Rate	$	—	$	3	$	(3)	Other current liabilities
Interest Rate	—		5		(5)		Deferred credits and other liabilities
Total Designated Hedges	$	—	$	8	$	(8)
Total	$	70	$	162	$	(92)

	December 31, 2020
(In millions)	Asset		Liability		Net Asset (Liability)		Balance Sheet Location
Not Designated as Hedges
Commodity	$	3	$	1	$	2	Other current assets
Commodity	7		32		(25)		Other current liabilities
Interest Rate	10		—		10		Other noncurrent assets
Total Not Designated as Hedges	$	20	$	33	$	(13)
Cash Flow Hedges
Interest Rate	$	19	$	—	$	19	Other noncurrent assets
Interest Rate	—		16		(16)		Deferred credits and other liabilities
Total Designated Hedges	$	19	$	16	$	3
Total	$	39	$	49	$	(10)

Derivatives Not Designated as Hedges

Commodity Derivatives

We have entered into multiple crude oil, natural gas and NGL derivatives indexed to the respective indices as noted in the table below, related to a portion of our forecasted U.S. sales through 2022. These derivatives consist of three-way collars, two-way collars, fixed price swaps and NYMEX roll basis swaps. Three-way collars consist of a sold call (ceiling), a purchased put (floor) and a sold put. The ceiling price is the maximum we will receive for the contract volumes; the floor is the minimum price we will receive, unless the market price falls below the sold put strike price. In this case, we receive the NYMEX WTI price plus the difference between the floor and the sold put price. Two-way collars only consist of a sold call (ceiling) and a purchased put (floor).

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MARATHON OIL CORPORATION

Notes to Consolidated Financial Statements (Unaudited)

The following table sets forth outstanding derivative contracts as of September 30, 2021, and the weighted average prices for those contracts:

	2021		2022
	Fourth Quarter		First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Crude Oil
NYMEX WTI Three-Way Collars
Volume (Bbls/day)	40,000		30,000		30,000		10,000		10,000
Weighted average price per Bbl:
Ceiling	$	78.05	$	89.12	$	89.12	$	88.44	$	88.44
Floor	$	50.00	$	50.00	$	50.00	$	50.00	$	50.00
Sold put	$	40.00	$	40.00	$	40.00	$	40.00	$	40.00
NYMEX WTI Two-Way Collars
Volume (Bbls/day)	40,000		—		—		—		—
Weighted average price per Bbl:
Ceiling	$	58.92	$	—	$	—	$	—	$	—
Floor	$	39.25	$	—	$	—	$	—	$	—
NYMEX Roll Basis Swaps
Volume (Bbls/day)	40,000		45,000		45,000		45,000		45,000
Weighted average price per Bbl	$	1.15	$	0.56	$	0.56	$	0.56	$	0.56
Natural Gas
Henry Hub (“HH”) Two-Way Collars
Volume (MMBtu/day)	200,000		—		—		—		—
Weighted average price per MMBtu:
Ceiling	$	3.05	$	—	$	—	$	—	$	—
Floor	$	2.50	$	—	$	—	$	—	$	—
HH Three-Way Collars
Volume (MMBtu/day)	—		50,000		—		—		—
Weighted average price per MMBtu:
Ceiling	$	—	$	5.14	$	—	$	—	$	—
Floor	$	—	$	3.60	$	—	$	—	$	—
Sold Put	$	—	$	2.60	$	—	$	—	$	—
HH Fixed Price Swaps
Volume (MMBtu/day)	50,000		—		—		—		—
Weighted average price per MMBtu	$	2.88	$	—	$	—	$	—	$	—
NGL
Fixed Price Ethane Swaps (a)
Volume (Bbls/day)	5,000		—		—		—		—
Weighted average price per Bbl	$	10.92	$	—	$	—	$	—	$	—
Fixed Price Propane Swaps (b)
Volume (Bbls/day)	5,000		—		—		—		—
Weighted average price per Bbl	$	23.19	$	—	$	—	$	—	$	—

(a)The fixed price ethane swap is priced at OPIS Mont Belvieu Purity Ethane.

(b)The fixed price propane swap is priced at OPIS Mont Belvieu Non-TET Propane.

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MARATHON OIL CORPORATION

Notes to Consolidated Financial Statements (Unaudited)

The unrealized and realized gain (loss) impact of our commodity derivative instruments appears in the table below and is reflected in net gain (loss) on commodity derivatives in the consolidated statements of income.

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2021		2020		2021		2020
Unrealized gain (loss) on derivative instruments, net	$	27	$	(36)	$	(130)	$	39
Realized gain (loss) on derivative instruments, net(a)	$	(106)	$	35	$	(268)	$	92

(a)During the third quarter and first nine months of 2021, net cash paid for settled derivative positions was $108 million and $203 million, respectively. During the third quarter and first nine months of 2020, net cash settled derivative positions was $15 million paid and $76 million received, respectively.

Interest Rate Swaps

During 2020, we entered into forward starting interest rate swaps to hedge the variations in cash flows related to fluctuations in the London Interbank Offered Rate (“LIBOR”) benchmark interest rate related to forecasted interest payments of a future debt issuance in 2022. Each respective derivative contract can be tied to an anticipated underlying dollar notional amount. During the third quarter of 2020, we de-designated these forward starting interest rate swaps previously designated as cash flow hedges. In the first quarter of 2021, the net deferred loss of $2 million in accumulated other comprehensive income related to these de-designated forward starting interest rate swaps was reclassified from accumulated other comprehensive income into earnings as an adjustment to net interest, as we fully redeemed the remainder of our outstanding 2022 notes in April 2021. We recorded a $5 million mark-to-market gain and a $24 million mark-to-market gain within net interest to reflect the change in value of these interest rate swaps during the three and nine months ended September 30, 2021, respectively.

During 2020, we entered into forward starting interest rate swaps with a notional amount of $350 million to hedge variations in cash flows arising from fluctuations in the LIBOR benchmark interest rate related to forecasted interest payments of a future debt issuance in 2025. The expected proceeds of the future debt issuance were intended to refinance the $900 million 3.85% Senior Notes due 2025 (“2025 Notes”). During the second quarter of 2021, we de-designated these forward starting interest rate swaps previously designated as cash flow hedges because we no longer planned to refinance the 2025 Notes. In the second quarter of 2021, we reclassified the $31 million cumulative gain related to these hedges from accumulated other comprehensive income into earnings as an adjustment to net interest. In September 2021, we fully redeemed these 2025 Notes. See Note 16 for further details. We recorded a $3 million mark-to-market gain and a $34 million mark-to-market gain within net interest to reflect the change in value of these interest rate swaps during the three and nine months ended September 30, 2021.

In addition, during the second quarter of 2021, we de-designated $25 million of the $320 million Houston office cash flow hedges (discussed further in the Derivatives Designated as Cash Flow Hedges section below), as the construction cost budget estimate was reduced. The $1 million loss of these de-designated cash flow hedges as of June 30, 2021 was reclassified from accumulated other comprehensive income into earnings as an adjustment to net interest. The mark-to-market activity within net interest to reflect the change in value of these interest rate swaps during the three and nine months ended September 30, 2021 was immaterial.

The following table presents, by maturity date, information about our de-designated forward starting interest rate swap agreements, including the rate. We have the discretion to liquidate the positions should we choose.

	September 30, 2021				December 31, 2020
Maturity Date	Aggregate Notional Amount (in millions)		Weighted Average, LIBOR		Aggregate Notional Amount (in millions)		Weighted Average, LIBOR
November 1, 2022	$	500	0.99	%	$	500	0.99	%
June 1, 2025	$	350	0.95	%	N/A		N/A
September 9, 2026	$	25	1.45	%	N/A		N/A

20

MARATHON OIL CORPORATION

Notes to Consolidated Financial Statements (Unaudited)

Derivatives Designated as Cash Flow Hedges

During 2019, we entered into forward starting interest rate swaps with a total notional amount of $320 million to hedge variations in cash flows related to the 1-month LIBOR component of future lease payments of our future Houston office. Although lease commencement began in September 2021, our first cash lease payment will be February 2022 and the first settlement date for the interest rate swap will be in January 2022. During the second quarter of 2021, we de-designated $25 million of these hedges as the construction cost budget estimate associated with the project was reduced. The last swap will mature in September 2026. As of September 30, 2021, we expect to reclassify $3 million from accumulated other comprehensive income into the income statement over the next twelve months. See Note 12 for further details regarding the lease of the new Houston office.

The following table presents, by maturity date, information about our interest rate swap agreements, including the weighted average LIBOR-based, fixed rate.

	September 30, 2021				December 31, 2020
Maturity Date	Aggregate Notional Amount (in millions)		Weighted Average, LIBOR		Aggregate Notional Amount (in millions)		Weighted Average, LIBOR
June 1, 2025	N/A		N/A		$	350	0.95	%
September 9, 2026	$	295	1.52	%	$	320	1.51	%

15.    Fair Value Measurements

Fair Values – Recurring

The following tables present assets and liabilities accounted for at fair value on a recurring basis as of September 30, 2021 and December 31, 2020 by hierarchy level.

	September 30, 2021
(In millions)	Level 1		Level 2		Level 3		Total
Derivative instruments, assets
Interest rate - not designated as cash flow hedges	$	—	$	69	$	—	$	69
Derivative instruments, assets	$	—	$	69	$	—	$	69
Derivative instruments, liabilities
Commodity(a)	$	(32)	$	(121)	$	—	$	(153)
Interest rate - designated as cash flow hedges	—		(8)		—		(8)
Derivative instruments, liabilities	$	(32)	$	(129)	$	—	$	(161)
Total	$	(32)	$	(60)	$	—	$	(92)

	December 31, 2020
(In millions)	Level 1		Level 2		Level 3		Total
Derivative instruments, assets
Interest rate - not designated as cash flow hedges	$	—	$	10	$	—	$	10
Interest rate - designated as cash flow hedges	—		19		—		19
Derivative instruments, assets	$	—	$	29	$	—	$	29
Derivative instruments, liabilities
Commodity(a)	$	—	$	(23)	$	—	$	(23)
Interest rate - designated as cash flow hedges	—		(16)		—		(16)
Derivative instruments, liabilities	$	—	$	(39)	$	—	$	(39)
Total	$	—	$	(10)	$	—	$	(10)

(a)Commodity derivative instruments are recorded on a net basis in our consolidated balance sheet. See Note 14.

Commodity derivatives include three-way collars, two-way collars, fixed price swaps, basis swaps and NYMEX roll basis swaps. These instruments are measured at fair value using either a Black-Scholes or a modified Black-Scholes Model. For

21

MARATHON OIL CORPORATION

Notes to Consolidated Financial Statements (Unaudited)

swaps, inputs to the models include only commodity prices and interest rates and are categorized as Level 1 because all assumptions and inputs are observable in active markets throughout the term of the instruments. For three-way collars and two-way collars, inputs to the models include commodity prices and implied volatility and are categorized as Level 2 because predominantly all assumptions and inputs are observable in active markets throughout the term of the instruments.

The forward starting interest rate swaps are measured at fair value with a market approach using actionable broker quotes, which are Level 2 inputs. See Note 14 for detail on the forward starting interest rate swaps.

Fair Value Estimates – Goodwill

See Note 13 for detail information relating to goodwill.

Fair Values – Nonrecurring

See Note 10 for detail on our fair values related to impairments.

Fair Values – Financial Instruments

Our current assets and liabilities include financial instruments, the most significant of which are receivables, the current portion of our long-term debt and payables. We believe the carrying values of our receivables and payables approximate fair value. Our fair value assessment incorporates a variety of considerations, including (1) the short-term duration of the instruments, (2) our credit rating and (3) our historical incurrence of and expected future insignificant bad debt expense, which includes an evaluation of counterparty credit risk.

The following table summarizes financial instruments, excluding receivables, payables and derivative financial instruments, and their reported fair values by individual balance sheet line item at September 30, 2021 and December 31, 2020.

	September 30, 2021				December 31, 2020
(In millions)	Fair Value		Carrying Amount		Fair Value		Carrying Amount
Financial assets
Current assets	$	13	$	12	$	4	$	4
Other noncurrent assets	12		27		24		37
Total financial assets	$	25	$	39	$	28	$	41
Financial liabilities
Current liabilities	$	95	$	128	$	72	$	103
Long-term debt, including current portion(a)	4,729		4,033		6,077		5,431
Deferred credits and other liabilities	51		50		82		76
Total financial liabilities	$	4,875	$	4,211	$	6,231	$	5,610

(a)Excludes debt issuance costs.

Fair values of our financial assets included in other noncurrent assets, and of our financial liabilities included in other current liabilities and deferred credits and other liabilities, are measured using an income approach and most inputs are internally generated, which results in a Level 3 classification. Estimated future cash flows are discounted using a rate deemed appropriate to obtain the fair value.

All of our long-term debt instruments are publicly traded. A market approach, based upon quotes from major financial institutions, which are Level 2 inputs, is used to measure the fair value of our debt.

16.    Debt

Revolving Credit Facility

On June 21, 2021, we executed the sixth amendment to our unsecured revolving credit facility (“Credit Facility”). The primary changes resulting from this amendment are (i) increasing the size of the Credit Facility from $3.0 billion to $3.1 billion, (ii) extending the maturity of the commitments of certain consenting lenders from May 28, 2023 to June 21, 2024 (with the remaining commitment of a single non-consenting lender to mature on May 28, 2023, at which time the size of the Credit Facility will be reduced to $3.0 billion) and (iii) including certain other provisions and revisions, including provisions to

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MARATHON OIL CORPORATION

Notes to Consolidated Financial Statements (Unaudited)

provide for the eventual replacement of LIBOR as a benchmark interest rate. As of September 30, 2021, we had no borrowings against our Credit Facility.

The Credit Facility includes a covenant requiring our total debt to total capitalization ratio not to exceed 65% as of the last day of each fiscal quarter. In the event of a default, the lenders holding more than half of the commitments may terminate the commitments under the Credit Facility and require the immediate repayment of all outstanding borrowings and the cash collateralization of all outstanding letters of credit under the Credit Facility. As of September 30, 2021, we were in compliance with this covenant with a ratio of 20%.

Debt Redemption

On March 30, 2021, we sent an irrevocable notice of redemption to the trustee to fully redeem our outstanding $500 million 2.8% Senior Notes due 2022 (“2022 Notes”). The 2022 Notes were redeemed on April 29, 2021 and as a result of the settlement, we incurred $19 million in costs related to a make-whole provision premium and the write off of unamortized discount and issuance costs.

On August 4, 2021, we sent an irrevocable notice of redemption to the trustee to fully redeem our outstanding $900 million 3.85% Senior Notes due 2025 (“2025 Notes”). The 2025 Notes were redeemed on September 7, 2021 and as a result of the redemption, we incurred $102 million in costs related to the make-whole provision premium and the write off of unamortized discount and issuance costs.

Long-term debt

At September 30, 2021, we had $4.0 billion of total long-term debt outstanding. We currently intend to retire our outstanding long-term debt as it matures. Refer to our 2020 Annual Report on Form 10-K for a listing of our long-term debt maturities.

17.    Stockholders’ Equity

No share repurchases were made under our share repurchases program during the nine months ended September 30, 2021. We did repurchase $10 million of shares during the nine months ended September 30, 2021 related to our tax withholding obligation associated with the vesting of employee restricted stock awards. The total remaining share repurchase authorization was $1.3 billion at September 30, 2021. Purchases under the program are made at our discretion and may be in either open market transactions, including block purchases, or in privately negotiated transactions using cash on hand, cash generated from operations, or proceeds from potential asset sales. This program may be changed based upon our financial condition or changes in market conditions and is subject to termination prior to completion.

Subsequent to the quarter, we resumed our share repurchase program and repurchased approximately $200 million of shares of our common stock through November 3, 2021. Effective November 3, 2021, our Board of Directors increased our remaining share repurchase program authorization from $1.1 billion to $2.5 billion.

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MARATHON OIL CORPORATION

Notes to Consolidated Financial Statements (Unaudited)

18.    Incentive Based Compensation

Stock options, restricted stock and restricted stock units

The following table presents a summary of activity for the first nine months of 2021: 

	Stock Options			Restricted Stock & Units
	Number of Shares	Weighted Average Exercise Price		Number of Shares & Units	Weighted Average Grant Date Fair Value
Outstanding at December 31, 2020	6,014,255	$	21.00	7,851,754	$	11.72
Granted	—	$	—	2,306,479	$	11.21
Exercised/Vested	(384,889)	$	7.34	(2,992,724)	$	12.78
Canceled(a)	(1,137,109)	$	23.10	(1,037,911)	$	11.78
Outstanding at September 30, 2021	4,492,257	$	21.64	6,127,598	$	11.00

(a)Included in canceled are forfeitures related to workforce reductions.

Stock-based performance unit awards

During the first nine months of 2021, we granted 307,473 stock-based performance units to eligible officers, which are settled in shares. The grant date fair value per unit was $18.07, as calculated using a Monte Carlo valuation model. At the grant date, each unit represents the value of one share of our common stock. These units are settled in shares, and the number of shares of our common stock to be paid is based on the vesting percentage, which can be from zero to 200% based on performance achieved during the performance period and as determined by the Compensation Committee of the Board of Directors (“Compensation Committee”). The performance goals are tied to our total shareholder return (“TSR”) as compared to TSR for a group including peer companies, the S&P Energy Index and the S&P 500 Index, which is determined by the Compensation Committee. Also, dividend equivalents accrue during the performance period and would be paid in cash following the end of the performance period based on the amount of dividends credited on shares of our common stock over the performance period multiplied by the number of units that vest.

During the first nine months of 2021, we introduced a new type of stock-based performance unit award under the Marathon Oil Corporation 2019 Incentive Compensation Plan and granted 307,473 units to eligible officers, which are settled in cash. At the grant date for these new stock-based performance units, each unit represents the value of one share of our common stock. The benefit amount to be paid is based on the product of (i) the number of units granted, (ii) the vesting percentage, and (iii) the average daily closing price of our common stock during the final 30 calendar days ending on the last trading day of the performance period, subject to the banking feature described below. The vesting percentage can range from zero to 200%, which is based on performance achieved over a two-year performance period. The performance metric is a predetermined amount of cumulative free cash flow, as defined by the award agreement, generated by the Company over the performance period. The units have a banking feature whereby the stock price valuation and vesting percentage are fixed at no less than 50%, and then again at 100%, if achieved during the performance period. Once those milestones are reached, the vesting percentage will not fall below those banked percentage amounts even if cumulative free cash flow subsequently declines during the performance period, subject to the Compensation Committee’s discretion as described below. The third quarter fair value per unit was $27.52, as calculated by multiplying the estimated vesting percentage by our common stock’s closing stock price on September 30, 2021. Also, dividend equivalents accrue during the performance period and would be paid in cash following the end of the performance period based on the amount of dividends credited on shares of our common stock over the performance period multiplied by the number of units that vest. As set forth in the award agreement terms, the Compensation Committee retains discretion to reduce the vesting percentage and any bank values and determine free cash flow achievement for these awards.

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MARATHON OIL CORPORATION

Notes to Consolidated Financial Statements (Unaudited)

19.    Defined Benefit Postretirement Plans

The following summarizes the components of net periodic benefit costs (credits):

	Three Months Ended September 30,
	Pension Benefits				Other Benefits
(In millions)	2021		2020		2021		2020
Service cost	$	4	$	4	$	—	$	—
Interest cost	2		2		—		1
Expected return on plan assets	(2)		(2)		—		—
Amortization:
– prior service credit	(1)		(1)		(4)		(4)
– actuarial loss	1		2		1		—
Net settlement loss(a)	3		9		—		—
Net periodic benefit costs (credits)(b)	$	7	$	14	$	(3)	$	(3)

	Nine Months Ended September 30,
	Pension Benefits				Other Benefits
(In millions)	2021		2020		2021		2020
Service cost	$	12	$	14	$	—	$	—
Interest cost	6		7		1		2
Expected return on plan assets	(6)		(7)		—		—
Amortization:
– prior service credit	(4)		(5)		(12)		(13)
– actuarial loss	4		7		2		1
Net settlement loss(a)	8		25		—		—
Net curtailment gain(c)	—		(3)		—		(14)
Net periodic benefit costs (credits)(b)	$	20	$	38	$	(9)	$	(24)

(a)Settlements are recognized as they occur, once it is probable that lump sum payments from a plan for a given year will exceed the plan’s total service and interest cost for that year.

(b)Net periodic benefit costs (credits) reflects a calculated market-related value of plan assets which recognizes changes in fair value over three years.

(c)Related to workforce reductions, which reduced the future expected years of service for employees participating in the plans..

    During the first nine months of 2021, we made contributions of $20 million to our funded pension plan. During the first nine months of 2021, we also made payments of $9 million and $7 million related to unfunded pension plans and other postretirement benefit plans. We expect to contribute an additional $2 million in contributions to our funded pension plan this year.

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MARATHON OIL CORPORATION

Notes to Consolidated Financial Statements (Unaudited)

20.    Reclassifications Out of Accumulated Other Comprehensive Income (Loss)

The following table presents a summary of amounts reclassified from accumulated other comprehensive income (loss):

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2021		2020		2021		2020		Income Statement Line
Postretirement and postemployment plans
Amortization of prior service credit	$	5	$	5	$	16	$	18	Other net periodic benefit costs
Amortization of actuarial loss	(2)		(2)		(6)		(8)		Other net periodic benefit costs
Net settlement loss	(3)		(9)		(8)		(25)		Other net periodic benefit costs
Net curtailment gain	—		—		—		17		Other net periodic benefit costs
Interest rate swaps
Reclassification of de-designated forward interest rate swaps	—		—		(28)		—		Net interest and other
Total reclassifications of (income) expense, net of tax (a)	$	—	$	(6)	$	(26)	$	2	Net income (loss)

(a)During 2021 and 2020 we had a full valuation allowance on net federal deferred tax assets in the U.S. and as such, there is no tax impact to our postretirement and postemployment plans.

21.    Supplemental Cash Flow Information

	Nine Months Ended September 30,
(In millions)	2021		2020
Included in operating activities:
Interest paid, net of amounts capitalized	$	185	$	175
Income taxes paid to (received from) taxing authorities, net of refunds (a)	$	8	$	(50)
Noncash investing activities:
Increase (decrease) in asset retirement costs	$	49	$	(5)

(a)The nine months ended September 30, 2021 and 2020 includes $1 million and $94 million, respectively, related to tax refunds.

    Other noncash investing activities include accrued capital expenditures for the nine months ended September 30, 2021 and 2020 of $104 million and $81 million, respectively.

22.    Equity Method Investments

During the periods ended September 30, 2021 and December 31, 2020 our equity method investees were considered related parties. Our investment in our equity method investees are summarized in the following table:

(In millions)	Ownership as of September 30, 2021	September 30, 2021		December 31, 2020
EGHoldings (a)	60%	$	181	$	113
Alba Plant LLC (b)	52%	166		168
AMPCO (c)	45%	142		166
Total		$	489	$	447

(a)EGHoldings is engaged in LNG production activity.

(b)Alba Plant LLC processes LPG.

(c)AMPCO is engaged in methanol production activity.

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MARATHON OIL CORPORATION

Notes to Consolidated Financial Statements (Unaudited)

Summarized financial information for equity method investees is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2021		2020		2021		2020
Income data:
Revenues and other income	$	325	$	140	$	806	$	423
Income (loss) from operations	188		19		395		(21)
Net income (loss)	$	155	$	12	$	312	$	(27)

Revenues from related parties were $8 million and $24 million for the three and nine months ended September 30, 2021, respectively, and $9 million and $29 million for the three and nine months ended 2020, respectively, with the majority related to EGHoldings in all periods.

Current receivables from related parties at September 30, 2021 and December 31, 2020 were $18 million and $24 million, respectively, with the majority related to EGHoldings in both periods. Payables to related parties at September 30, 2021 were $6 million, with the majority related to EGHoldings and $13 million at December 31, 2020, with the majority related to Alba Plant LLC.

23.    Commitments and Contingencies

In the second quarter of 2019, Marathon E.G. Production Limited (“MEGPL”), a consolidated and wholly owned subsidiary, signed a series of agreements to process third-party Alen Unit gas through existing infrastructure located in Punta Europa, E.G. Our equity method investee, Alba Plant LLC, is also a party to some of the agreements. These agreements require (subject to certain limitations) MEGPL to indemnify the owners of the Alen Unit against injury to Alba Plant LLC’s personnel and damage to or loss of Alba Plant LLC’s automobiles, as well as third party claims caused by Alba Plant LLC and certain environmental liabilities arising from certain hydrocarbons in the custody of Alba Plant LLC. At this time, we cannot reasonably estimate this obligation as we do not have any history of prior indemnification claims or environmental discharge or contamination. Therefore, we have not recorded a liability with respect to these indemnities since the amount of potential future payments under these indemnification clauses is not determinable.

The agreements to process the third-party Alen Unit gas required the execution of third-party guarantees by Marathon Oil Corporation in favor of the Alen Unit’s owners. Two separate guarantees were executed during the second quarter of 2020; one for a maximum of approximately $91 million pertaining to the payment obligations of Equatorial Guinea LNG Operations, S.A. and another for a maximum of $25 million pertaining to the payment obligations of Alba Plant LLC. Payment by us would be required if any of those entities fails to honor its payment obligations pursuant to the relevant agreements with the owners of the Alen Unit. Certain owners of the Alen Unit, or their affiliates, are also direct or indirect shareholders in Equatorial Guinea LNG Operations, S.A. and Alba Plant LLC. Each guarantee expires no later than December 31, 2027. We measured these guarantees at fair value using the net present value of premium payments we expect to receive from our investees. Our liability for these guarantees was approximately $4 million as of September 30, 2021, with a corresponding receivable from our investees. Each of Equatorial Guinea LNG Operations, S.A. and Equatorial Guinea LNG Train 1, S.A. provided us with a pledge of its receivables as recourse against any payments we may make under the guaranty of Equatorial Guinea LNG Operations, S.A.’s performance.

Various groups, including the State of North Dakota and three Indian tribes represented by the Bureau of Indian Affairs, have been involved in a dispute regarding the ownership of certain lands underlying the Missouri River and Little Missouri River. As a result, as of September 30, 2021, we have a $126 million current liability in suspended royalty and working interest revenue, including interest, of which $115 million was included within accounts payable and $11 million related to accrued interest and was included within other current liabilities on our consolidated balance sheet. Additionally, we have a long-term receivable of $24 million for capital and expenses.

In January 2020, we received a Notice of Violation from the EPA related to the Clean Air Act. The enforcement action will likely result in monetary sanctions yet-to-be specified and corrective actions, which may increase our development costs, operating costs or both. Given the uncertainty in matters such as these, we are unable to predict the ultimate outcome of this matter at this time. However, we believe that any penalties, mitigation costs or corrective actions that may result from this matter will not have a material adverse effect on our consolidated financial position, results of operations or cash flows.

We are a defendant in a number of legal and administrative proceedings arising in the ordinary course of business including, but not limited to, royalty claims, contract claims, tax disputes and environmental claims. While the ultimate

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MARATHON OIL CORPORATION

Notes to Consolidated Financial Statements (Unaudited)

outcome and impact to us cannot be predicted with certainty, we believe the resolution of these proceedings will not have a material adverse effect on our consolidated financial position, results of operations or cash flows. In addition, we may also be subject to retained liabilities with respect to certain divested assets by operation of law. For example, recent historical declines in commodity prices created an environment where there is an increased risk that owners and/or operators of assets purchased from us may no longer be able to satisfy plugging or abandonment obligations that attach to those assets. In that event, due to operation of law, we may be required to assume plugging or abandonment obligations for those assets. Although we have established reserves for such liabilities, we could be required to accrue additional amounts in the future and these amounts could be material. For instance, as the result of the declaration of bankruptcy by a third party that is the indirect successor in title to certain offshore assets that we previously divested, in the first nine months of 2021 we increased our existing reserve to $37 million related to the anticipated cost to decommission certain wells, pipelines and production facilities. We no longer own these assets nor are they related to our current operations.

Marathon Oil has been named in various lawsuits alleging royalty underpayments in our domestic operations, and plaintiffs in some of these lawsuits are seeking class certification. We intend to vigorously defend ourselves against such claims. Although we have accrued for potential liabilities associated with these lawsuits, those accruals are based on currently available information and involve elements of judgment and significant uncertainties. Accordingly, actual losses may exceed our accruals or we could be required to accrue additional amounts in the future and these amounts could be material.

We have incurred and will continue to incur capital, operating and maintenance, and remediation expenditures as a result of environmental laws and regulations. If these expenditures, as with all costs, are not ultimately offset by the prices we receive for our products and services, our operating results will be adversely affected. We believe that substantially all of our competitors must comply with similar environmental laws and regulations. However, the specific impact on each competitor may vary depending on a number of factors, including the age and location of its operating facilities, marketing areas and production processes. These laws generally provide for control of pollutants released into the environment and require responsible parties to undertake remediation of hazardous waste disposal sites. Penalties may be imposed for noncompliance.

At September 30, 2021, accrued liabilities for remediation relating to environmental laws and regulations were not material. It is not presently possible to estimate the ultimate amount of all remediation cost that might be incurred or the penalties that may be imposed.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the preceding consolidated financial statements and notes in Item 1.

Executive Overview

We are an independent exploration and production company based in Houston, Texas. Our strategy is to deliver competitive and improving corporate level returns by focusing our capital investment in our lower cost, higher margin U.S. resource plays (Eagle Ford in Texas, Bakken in North Dakota, STACK and SCOOP in Oklahoma and Northern Delaware in New Mexico). Our reinvestment rate and capital allocation framework prioritizes free cash flow generation across a wide range of commodity prices to make available significant cash flow for investor-friendly purposes, including return of capital to shareholders and balance sheet enhancement. Keeping our workforce safe, minimizing our environmental impact, strong corporate governance and protecting our balance sheet are foundational to the execution of our strategy.

Throughout the COVID-19 pandemic, we leveraged our emergency response protocols and business continuity plans to help manage our operations and workforce. Our workforce worked remotely for a significant period of time since the pandemic began. We implemented a process for a phased return of employees to the office last year and, during April 2021, the majority of our corporate workforce returned to the office. Working remotely did not significantly impact our ability to maintain operations, allowed our field offices to operate without any disruption and did not cause us to incur significant additional expenses.

Key highlights include the following:

Maintained focus on balance sheet and liquidity

•At the end of the third quarter 2021, we had approximately $3.6 billion of liquidity, comprised of an undrawn $3.1 billion revolving credit facility and $485 million in cash. We remain investment grade at all three primary rating agencies, with Moody’s and Fitch recently upgrading their rating outlooks to stable and positive, respectively.

•In the first nine months of 2021, we generated $2.1 billion of cash provided by operating activities, which substantially funded $1.4 billion of total debt redemption, $772 million of additions to property, plant and equipment and dividends of $94 million.

•We continued our capital discipline through the third quarter as we are within our full-year capital budget of $1.0 billion.

•Consistent with our strategy to enhance the balance sheet, in September 2021, we fully redeemed our outstanding $900 million 3.85% Senior Notes due 2025. See Note 16 to the consolidated financial statements and Liquidity and Capital Resources for further information.

Financial and operational results

•In the third quarter of 2021, U.S. net sales volumes decreased by 5% to 281 mboed, including a 3% reduction in U.S. crude oil net sales volumes compared to the same quarter last year as a result of overall lower drilling and completion activities and natural decline.

•Our net income per share was $0.23 in the third quarter of 2021 as compared to a net loss per share of $0.40 in the

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same period last year. Included in our financial results for the current quarter:

◦Revenues from contracts with customers increased $677 million compared to the same quarter last year. We experienced significant increases in realized prices for crude oil and condensate, NGLs and natural gas.

◦Net loss on commodity derivatives of $79 million, as compared to a net loss of $1 million in 2020. The increase in derivative losses were a direct result of higher commodity prices.

◦Income from equity method investments of $86 million, an increase of $96 million from the same period in 2020. Our equity method investees realized higher prices in the current quarter whereas the same period in 2020 had lower realized prices and an impairment of $18 million.

◦A loss on the early redemption of debt totaling $102 million, which primarily represents the premium payment for the early redemption.

Compensation and ESG Highlights and Initiatives

•CEO and Board of Director total compensation reduced by approximately 25% with Board compensation mix shifted more toward equity and CEO mix further aligned with broader industry norms.

•Short-term incentive scorecard for compensation updated to focus on safety, environmental performance, capital efficiency, capital discipline/free cash flow generation and financial/balance sheet strength.

•Added a 2021 GHG emissions intensity target to short-term incentive scorecard.

•Adopted a medium-term goal for GHG emissions intensity reduction by 2025.

•Continued Board of Director refreshment with two Directors added during the first quarter of 2021, reflecting commitment to refreshment, independence, and diversity.

Outlook

Capital Budget

In February 2021, we announced a 2021 capital budget of $1.0 billion, which is effectively a maintenance capital budget. Our maintenance-level capital budget has allowed us to keep total company oil production in 2021 consistent with our fourth quarter 2020 exit rate. Our 2021 capital budget is consistent with our capital allocation framework that prioritizes corporate returns and free cash flow generation over production growth and we expect that strategy to drive our 2022 capital budget.

The 2021 capital budget is weighted towards the four U.S. resource plays with approximately 90% allocated to the Eagle Ford and Bakken.

Operations

    The following table presents a summary of our sales volumes for each of our segments. Refer to Results of Operations for a price-volume analysis for each of the segments.

	Three Months Ended September 30,				Nine Months Ended September 30,
Net Sales Volumes	2021	2020	Increase (Decrease)		2021	2020	Increase (Decrease)
United States (mboed)	281	297	(5)	%	280	314	(11)	%
International (mboed)	61	71	(14)	%	64	79	(19)	%
Total (mboed)	342	368	(7)	%	344	393	(12)	%

United States

Net sales volumes in the segment were lower in the third quarter of 2021 and the first nine months of 2021 as compared to their respective 2020 periods due to lower capital investment, timing of wells to sales, natural decline and midstream downtime. The decrease in capital investment is a direct result of the demand contraction, beginning in 2020, related to the global pandemic.

We continue to expect that our planned pace of drilling and completions activity during the remainder of the year will enable us to meet our 2021 production guidance as noted in the preceding Outlook section.

The following tables provide additional details regarding net sales volumes, sales mix and operational drilling activity for our significant operations within this segment:

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	Three Months Ended September 30,				Nine Months Ended September 30,
Net Sales Volumes	2021	2020	Increase (Decrease)		2021	2020	Increase (Decrease)
Equivalent Barrels (mboed)
Eagle Ford	95	91	4	%	88	104	(15)	%
Bakken	103	98	5	%	107	103	4	%
Oklahoma	55	73	(25)	%	54	69	(22)	%
Northern Delaware	21	27	(22)	%	24	29	(17)	%
Other United States	7	8	(13)	%	7	9	(22)	%
Total United States	281	297	(5)	%	280	314	(11)	%

	Three Months Ended September 30, 2021
Sales Mix - U.S. Resource Plays	Eagle Ford		Bakken		Oklahoma		Northern Delaware		Total
Crude oil and condensate	64	%	65	%	21	%	54	%	55	%
Natural gas liquids	19	%	22	%	34	%	22	%	23	%
Natural gas	17	%	13	%	45	%	24	%	22	%

	Three Months Ended September 30,		Nine Months Ended September 30,
Drilling Activity - U.S. Resource Plays	2021	2020	2021	2020
Gross Operated
Eagle Ford:
Wells drilled to total depth	23	17	76	58
Wells brought to sales	29	9	99	67
Bakken:
Wells drilled to total depth	16	6	55	41
Wells brought to sales	27	8	46	41
Oklahoma:
Wells drilled to total depth	—	—	—	9
Wells brought to sales	4	—	4	13
Northern Delaware:
Wells drilled to total depth	—	—	—	15
Wells brought to sales	3	1	3	13

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International

Net sales volumes were lower in the third quarter of 2021 and the first nine months of 2021 as compared to their respective 2020 periods primarily due to natural decline. The following table provides details regarding net sales volumes for our operations within this segment:

	Three Months Ended September 30,				Nine Months Ended September 30,
Net Sales Volumes	2021	2020	Increase (Decrease)		2021	2020	Increase (Decrease)
Equivalent Barrels (mboed)
Equatorial Guinea	61	71	(14)	%	64	79	(19)	%
Equity Method Investees
LNG (mtd)	3,119	3,960	(21)	%	3,186	4,551	(30)	%
Methanol (mtd)	1,218	1,065	14	%	1,137	996	14	%
Condensate and LPG (boed)	9,537	9,340	2	%	9,382	10,288	(9)	%

Market Conditions

Commodity prices are the most significant factor impacting our revenues, profitability, operating cash flows, the amount of capital we invest in our business, redemption of our debt, payment of dividends and funding of share repurchases. Commodity prices declined substantially in the first half of 2020 resulting from demand contraction related to the global pandemic and increased supply following the OPEC decision to increase production. A revised OPEC deal to reduce production was agreed in the early second quarter of 2020 and prices partially recovered through the end of the year. Beginning in December 2020 and continuing through the first nine months of 2021, commodity prices continued to increase due to rising oil demand as COVID-19 vaccination rates and global economic activity increased. Higher commodity prices were also supported by ongoing OPEC petroleum supply limitations and weather events in 2021 that disrupted production. We continue to expect commodity price volatility given the global dynamics of supply and demand that exist in the market. Refer to Item 1A. Risk Factors in our 2020 Annual Report on Form 10-K for further discussion on how declines in commodity prices could impact us.    

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United States

    The following table presents our average price realizations and the related benchmarks for crude oil and condensate, NGLs and natural gas for the third quarter and first nine months of 2021 and 2020.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021		2020		Increase (Decrease)		2021		2020		Increase (Decrease)
Average Price Realizations(a)
Crude oil and condensate (per bbl)(b)	$	69.40	$	37.78	84	%	$	63.16	$	34.82	81	%
Natural gas liquids (per bbl)	30.68		11.80		160	%	26.50		9.77		171	%
Natural gas (per mcf)(c)	4.17		1.78		134	%	4.35		1.61		170	%
Benchmarks
WTI crude oil average of daily prices (per bbl)	$	70.52	$	40.92	72	%	$	65.04	$	38.21	70	%
Magellan East Houston (“MEH”) crude oil average of daily prices (per bbl)	71.64		41.59		72	%	66.03		38.93		70	%
Mont Belvieu NGLs (per bbl)(d)	32.27		15.87		103	%	27.08		13.77		97	%
Henry Hub natural gas settlement date average (per mmbtu)	4.01		1.98		103	%	3.18		1.88		69	%

(a)Excludes gains or losses on commodity derivative instruments.

(b)Inclusion of realized gains (losses) on crude oil derivative instruments would have decreased average price realizations by $4.00 per bbl and increased average price realizations by $2.24 per bbl for the third quarter 2021 and 2020, respectively. Inclusion of realized gain (losses) on crude oil derivative instruments would have decreased average price realizations by $4.72 per bbl and increased average price realizations by $1.74 per bbl for the first nine months of 2021 and 2020, respectively.

(c)Inclusion of realized gains (losses) on natural gas derivative instruments would have decreased average price realizations by $1.08 per mcf for the third quarter 2021 and would have minimal impact on average price realizations for the other periods presented.

(d)Bloomberg Finance LLP: Y-grade Mix NGL of 55% ethane, 25% propane, 5% butane, 8% isobutane and 7% natural gasoline.

Crude oil and condensate – Price realizations may differ from benchmarks due to the quality and location of the product.

Natural gas liquids – The majority of our sales volumes are sold at reference to Mont Belvieu prices.

Natural gas – A significant portion of our volumes are sold at bid-week prices, or first-of-month indices relative to our producing areas.

International (E.G.)    

The following table presents our average price realizations and the related benchmark for crude oil for the third quarter and first nine months of 2021 and 2020.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021		2020		Increase (Decrease)		2021		2020		Increase (Decrease)
Average Price Realizations
Crude oil and condensate (per bbl)	$	56.36	$	30.28	86	%	$	51.54	$	26.05	98	%
Natural gas liquids (per bbl)	1.00		1.00		—	%	1.00		1.00		—	%
Natural gas (per mcf)	0.24		0.24		—	%	0.24		0.24		—	%
Benchmark
Brent (Europe) crude oil (per bbl)(a)	$	73.47	$	42.96	71	%	$	67.71	$	40.92	65	%

(a)Average of monthly prices obtained from the United States Energy Information Agency website.

Crude oil and condensate – Alba field liquids production is primarily condensate. MEGPL and Marathon E.G. International Limited generally sell their share of condensate in relation to the Brent crude benchmark. Alba Plant LLC processes the rich hydrocarbon gas which is supplied by the Alba field under a fixed-price long term contract. Alba Plant LLC extracts NGLs and secondary condensate which is then sold by Alba Plant LLC at market prices, with our share of the revenue reflected in income from equity method investments on the consolidated statements of income. Alba Plant LLC delivers the processed dry natural gas to the Alba Unit Parties for distribution and sale to AMPCO and EG LNG.

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Natural gas liquids – Wet gas is sold to Alba Plant LLC at a fixed-price long term contract resulting in realized prices not tracking market price. Alba Plant LLC extracts and keeps NGLs, which are sold at market price, with our share of income from Alba Plant LLC being reflected in the income from equity method investments on the consolidated statements of income.

Natural gas – Dry natural gas, processed by Alba Plant LLC on behalf of the Alba Unit Parties is sold by the Alba field to EG LNG and AMPCO at fixed-price long term contracts resulting in realized prices not tracking market price. We derive additional value from the equity investment in our downstream gas processing units EG LNG and AMPCO. EG LNG sells LNG on a market-based long-term contract and AMPCO markets methanol at market prices.

Results of Operations

Three Months Ended September 30, 2021 vs. Three Months Ended September 30, 2020

Revenues from contracts with customers are presented by segment in the table below:

	Three Months Ended September 30,
(In millions)	2021		2020
Revenues from contracts with customers
United States	$	1,375	$	722
International	63		39
Segment revenues from contracts with customers	$	1,438	$	761

Below is a price/volume analysis for each segment. Refer to the preceding Operations and Market Conditions sections for additional detail related to our net sales volumes and average price realizations.

			Increase (Decrease) Related to
(In millions)	Three Months Ended September 30, 2020		Price Realizations		Net Sales Volumes		Three Months Ended September 30, 2021
United States Price/Volume Analysis
Crude oil and condensate	$	552	$	448	$	(16)	$	984
Natural gas liquids	73		113		(3)		183
Natural gas	69		83		(8)		144
Other sales	28						64
Total	$	722					$	1,375
International Price/Volume Analysis
Crude oil and condensate	$	31	$	26	$	(1)	$	56
Natural gas liquids	1		—		(1)		—
Natural gas	7		—		(1)		6
Other sales	—						1
Total	$	39					$	63

Net gain (loss) on commodity derivatives in the third quarter of 2021, was a loss of $79 million, compared to a net loss of $1 million for the same period in 2020. We have multiple crude oil, natural gas and NGL derivative contracts that settle against various indices. We record commodity derivative gains/losses as the index pricing and forward curves change each period. See Note 14 to the consolidated financial statements for further information.

Income from equity method investments increased $96 million in third quarter of 2021 primarily due to higher price realizations coupled with an impairment of $18 million to an investment in an equity method investee in third quarter of 2020. See Note 10 to the consolidated financial statements for more detail.

Production expenses increased $2 million in the third quarter of 2021 versus the same period in 2020. Our U.S. and International segments production expense rate increased due to lower sales volumes from natural decline.

The following table provides production expense and production expense rates (expense per boe) for each segment:

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	Three Months Ended September 30,
($ in millions; rate in $ per boe)	2021		2020		Increase (Decrease)		2021		2020		Increase (Decrease)
Production Expense and Rate	Expense						Rate
United States	$	119	$	118	1	%	$	4.59	$	4.32	6	%
International	$	12	$	11	9	%	$	2.17	$	1.76	23	%

Shipping, handling and other operating increased $36 million in the third quarter of 2021 versus the same period in 2020. As disclosed in our Form 10-K, certain of our processing arrangements with midstream entities are percentage-of-proceeds contracts. We classify the proceeds retained by the midstream companies as shipping and handling cost. The increase in shipping and handling costs of these percentage-of-proceeds contracts coincides with the increase in realized natural gas liquids prices. In addition, higher marketing costs contributed to the increase due to more volumes purchased for resale to satisfy transportation commitments. This was partially offset by higher legal expenses in third quarter of 2020.

Exploration expenses include unproved property impairments, dry well costs, geological and geophysical and other costs. The increase in unproved property impairments were primarily driven by our decision not to drill certain leases related to resource exploration in the third quarter of 2021. The dry well costs includes the write-off of suspended costs associated with drilled and uncompleted wells primarily in Permian in the third quarter of 2021.

The following table summarizes the components of exploration expenses:

	Three Months Ended September 30,
(In millions)	2021		2020		Increase (Decrease)
Exploration Expenses
Unproved property impairments	$	48	$	23	109	%
Dry well costs	14		—		—	%
Geological and geophysical	—		2		(100)	%
Other	1		2		(50)	%
Total exploration expenses	$	63	$	27	133	%

Depreciation, depletion and amortization decreased $32 million in the third quarter of 2021 primarily as a result of lower sales volumes. Our segments apply the units-of-production method to the majority of their assets, including capitalized asset retirement costs; therefore volumes have an impact on DD&A expense.

The DD&A rate (expense per boe) is impacted by field-level changes in reserves, capitalized costs and sales volume mix between fields. The following table provides DD&A expense and DD&A expense rates for each segment:

	Three Months Ended September 30,
($ in millions; rate in $ per boe)	2021		2020		Increase (Decrease)		2021		2020		Increase (Decrease)
DD&A Expense and Rate	Expense						Rate
United States	$	499	$	530	(6)	%	$	19.29	$	19.39	(1)	%
International	$	17	$	19	(11)	%	$	3.12	$	2.89	8	%

Impairments increased $12 million in the third quarter of 2021 primarily due to an $8 million impairment related to an increase in the estimated future decommissioning costs of certain non-producing wells, pipelines and production facilities and a $5 million impairment associated with our interests in outside operated conventional assets located in New Mexico. See Note 10, Note 11, and Note 23 to the consolidated financial statements for more detail.

Taxes other than income include production, severance and ad valorem taxes, primarily in the U.S., which tend to increase or decrease in relation to revenue and sales volumes. Taxes other than income increased $39 million primarily due to higher price realizations in the U.S. segment in the third quarter of 2021.

General and administrative expenses increased $17 million in the third quarter of 2021 as a result of increases in accruals for variable employee compensation plans, commensurate with our improved financial performance.

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Loss on early extinguishment of debt increased $102 million due to make-whole call provisions paid upon redemption of $900 million in senior unsecured notes in the third quarter of 2021. See Note 16 to the consolidated financial statements for further detail.

Provision (benefit) for income taxes reflects an effective income tax rate of 2% in the third quarter of 2021, as compared to an effective income tax rate of (2)% in the same period in 2020. See Note 6 to the consolidated financial statements for a more detailed discussion concerning the rate changes.

Segment Income

Segment income represents income that 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, impairments of proved and certain unproved properties, goodwill and equity method investments, unrealized gains or losses on commodity and interest rate derivative instruments, effects of pension settlements and curtailments or other items (as determined by the CODM) are not allocated to operating segments.

The following table reconciles segment income (loss) to net income (loss):

	Three Months Ended September 30,
(In millions)	2021		2020
United States	$	305	$	(135)
International	93		8
Segment income (loss)	398		(127)
Items not allocated to segments, net of income taxes	(214)		(190)
Net income (loss)	$	184	$	(317)

United States segment income (loss) in the third quarter of 2021 was $305 million of income versus a $135 million loss for the same period in 2020. The increase in income was primarily due to higher price realizations and lower DD&A expenses. These favorable changes were partially offset by higher realized losses on commodity derivatives, production taxes and shipping and handling in the third quarter of 2021.

International segment income (loss) in the third quarter of 2021 was $93 million of income versus $8 million of income for the same period in 2020, primarily due to higher price realizations that yielded positive effects on both consolidated operations and our equity method investees in the third quarter of 2021.

Results of Operations

Nine Months Ended September 30, 2021 vs. Nine Months Ended September 30, 2020

Revenues from contracts with customers are presented by segment in the table below:

	Nine Months Ended September 30,
(In millions)	2021		2020
Revenues from contracts with customers
United States	$	3,696	$	2,154
International	173		121
Segment revenues from contracts with customers	$	3,869	$	2,275

Below is a price/volume analysis for each segment. Refer to Operations and Market Conditions for additional detail related to our net sales volumes and average price realizations.

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			Increase (Decrease) Related to
(In millions)	Nine Months Ended September 30, 2020		Price Realizations		Net Sales Volumes		Nine Months Ended September 30, 2021
United States Price/Volume Analysis
Crude oil and condensate	$	1,741	$	1,216	$	(246)	$	2,711
Natural gas liquids	161		272		(3)		430
Natural gas	190		283		(23)		450
Other sales	62						105
Total	$	2,154					$	3,696
International Price/Volume Analysis
Crude oil and condensate	$	96	$	75	$	(20)	$	151
Natural gas liquids	3		—		(1)		2
Natural gas	22		—		(4)		18
Other sales	—						2
Total	$	121					$	173

Net gain (loss) on commodity derivatives in the first nine months of 2021 was a loss of $398 million, compared to a net gain of $131 million for the same period in 2020. We have multiple crude oil, natural gas and NGL derivative contracts that settle against various indices. We record commodity derivative gains/losses as the index pricing and forward curves change each period. See Note 14 to the consolidated financial statements for further information.

Income (loss) from equity method investments increased $353 million for the first nine months of 2021. We recognized impairments of $170 million related to an investment in an equity method investee in the first nine months of 2020. Additionally, we experienced higher price realizations in the first nine months of 2021.

Production expenses for the first nine months of 2021 decreased by $40 million compared to the same period in 2020, primarily as a result of the U.S. segment’s lower operational costs and continued cost management, specifically staffing and contract labor.

The following table provides production expense and production expense rates for each segment:

	Nine Months Ended September 30,
($ in millions; rate in $ per boe)	2021		2020		Increase (Decrease)		2021		2020		Increase (Decrease)
Production Expense and Rate	Expense						Rate
United States	$	343	$	375	(9)	%	$	4.49	$	4.36	3	%
International	$	35	$	43	(19)	%	$	2.00	$	2.00	—	%

Shipping, handling and other operating expenses increased $106 million in the first nine months of 2021 from the comparable 2020 period. As disclosed in our Form 10-K, certain of our processing arrangements with midstream entities are percentage-of-proceeds contracts. We classify the proceeds retained by the midstream companies as shipping and handling cost. The increase in shipping and handling costs of these percentage-of-proceeds contracts coincides with the increase in realized natural gas liquids prices. In addition, higher marketing costs contributed to the increase due to more volumes purchased for resale to satisfy transportation commitments. This was partially offset by higher legal expenses in the first nine months of 2020.

Exploration expenses include unproved property impairments, dry well costs, geological and geophysical and other costs. The increase in unproved property impairments were primarily driven by our decision not to drill certain leases related to resource exploration in the third quarter of 2021. The dry well costs include the write-off of suspended costs associated with drilled and uncompleted wells primarily in Permian in the third quarter of 2021.

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The following table summarizes the components of exploration expenses:

	Nine Months Ended September 30,
(In millions)	2021		2020		Increase (Decrease)
Exploration Expenses
Unproved property impairments	$	85	$	62	37	%
Dry well costs	16		1		1,500	%
Geological and geophysical	3		6		(50)	%
Other	5		12		(58)	%
Total exploration expenses	$	109	$	81	35	%

Depreciation, depletion and amortization decreased $245 million in the first nine months of 2021 from the comparable 2020 period, primarily as a result of lower sales volumes in our U.S. and International segments. Our segments apply the units-of-production method to the majority of their assets, including capitalized asset retirement costs; therefore volumes have an impact on DD&A expense.

The DD&A rate (expense per boe) is impacted by field-level changes in reserves, capitalized costs and sales volume mix between fields. The following table provides DD&A expense and DD&A expense rates for each segment:

	Nine Months Ended September 30,
($ in millions; rate in $ per boe)	2021		2020		Increase (Decrease)		2021		2020		Increase (Decrease)
DD&A Expense and Rate	Expense						Rate
United States	$	1,477	$	1,716	(14)	%	$	19.33	$	19.91	(3)	%
International	$	54	$	62	(13)	%	$	3.10	$	2.87	8	%

Impairments decreased $38 million in the first nine months of 2021. In 2020, we impaired goodwill for $95 million related to our International reporting unit in the first quarter of 2020. Impairments in 2021 consisted of a $30 million impairment related to an increase in the estimated future decommissioning costs of certain non-producing wells, pipelines and production facilities for previously divested offshore assets located in the Gulf of Mexico and a $24 million impairment as we decommissioned certain Eagle Ford central facilities. See Note 10, Note 11, and Note 23 to the consolidated financial statements for discussion of the impairments in further detail.

Taxes other than income include production, severance and ad valorem taxes, primarily in the U.S., which tend to increase or decrease in relation to revenue and sales volumes. Taxes other than income increased $91 million primarily due to higher price realizations in the U.S. segment in the first nine months of 2021.

Net interest and other decreased $66 million in the first nine months of 2021 versus the same period in 2020, primarily as a result of $57 million mark-to-market gains on forward starting interest rate swaps in the first nine months of 2021. See Note 14 to the consolidated financial statements for further detail discussion of the interest rate swaps in the consolidated financial statements.

General and administrative expenses increased $10 million in the first nine months of 2021 versus the same period in 2020, primarily as a result of a $13 million expense associated with the termination of an aircraft lease agreement during the first quarter of 2021.

Loss on early extinguishment of debt increased $121 million due to make-whole call provisions paid upon redemption of our $500 million 2022 Notes in the second quarter of 2021 and our $900 million 2025 Notes in the third quarter of 2021. See Note 16 to the consolidated financial statements for further detail.

Provision (benefit) for income taxes reflects an effective income tax rate of 7% in the first nine months of 2021, as compared to an effective income tax rate of 1% in the same period in 2020. See Note 6 to the consolidated financial statements for a more detailed discussion concerning the rate changes.

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Segment Income

Segment income represents income that 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, impairments of proved and certain unproved properties, goodwill and equity method investments, unrealized gains or losses on commodity and interest rate derivative instruments, effects of pension settlements and curtailments or other items (as determined by the CODM) are not allocated to operating segments.

The following table reconciles segment income (loss) to net income (loss):

	Nine Months Ended September 30,
(In millions)	2021		2020
United States	$	724	$	(520)
International	211		1
Segment income (loss)	935		(519)
Items not allocated to segments, net of income taxes	(638)		(594)
Net income (loss)	$	297	$	(1,113)

United States segment income (loss) for the first nine months of 2021 was $724 million of income versus a $520 million loss for the same period in 2020. This increase was primarily due to higher price realizations and lower DD&A expenses. These favorable changes were partially offset by lower sales volumes, realized losses on commodity derivatives (as compared to realized gains in the prior period), higher shipping and handling costs and production taxes in the first nine months of 2021.

International segment income (loss) for the first nine months of 2021 was $211 million of income versus $1 million of income for the same period in 2020, primarily due to higher price realizations in E.G. in the first nine months of 2021.

Critical Accounting Estimates 

There have been no material changes or developments in the evaluation of the accounting estimates and the underlying assumptions or methodologies pertaining to our Critical Accounting Estimates disclosed in our Form 10-K for the year ended December 31, 2020.

Accounting Standards Not Yet Adopted

See Note 2 to the consolidated financial statements.

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Cash Flows

    Commodity prices are the most significant factor impacting our revenues, profitability, operating cash flows, the amount of capital we invest in our business, principal debt repayments, payment of dividends and funding of share repurchases. As commodity prices increased during the first nine months of 2021, we generated positive cash flow from operations. We continue to expect volatility in commodity prices and that could impact how much cash flow from operations we generate. The following table presents sources and uses of cash and cash equivalents:

	Nine Months Ended September 30,
(In millions)	2021		2020
Sources of cash and cash equivalents
Operating activities	$	2,093	$	1,055
Borrowings	—		400
Disposal of assets, net of cash transferred to the buyer	29		9
Other	15		7
Total sources of cash and cash equivalents	$	2,137	$	1,471
Uses of cash and cash equivalents
Additions to property, plant and equipment	$	(772)	$	(1,090)
Additions to other assets	—		15
Debt repayment	(1,400)		—
Debt extinguishment costs	(117)		—
Purchases of common stock	(10)		(92)
Dividends paid	(94)		(40)
Other	(1)		(3)
Total uses of cash and cash equivalents	$	(2,394)	$	(1,210)

Cash flows generated from operating activities in the first nine months of 2021 were 98% higher compared to the same period in 2020, primarily as a result of higher realized commodity prices. These were partially offset by net realized losses on commodity derivatives (compared to realized gains in the prior period), lower production volumes, and increased working capital usage.

The following table shows capital expenditures by segment and reconciles to additions to property, plant and equipment as presented in the consolidated statements of cash flows:

	Nine Months Ended September 30,
(In millions)	2021		2020
United States	$	770	$	874
International	4		—
Corporate	7		10
Total capital expenditures	781		884
Change in capital expenditure accrual	(9)		206
Total use of cash and cash equivalents for property, plant and equipment	$	772	$	1,090

The decline in our capital expenditures for the U.S. segment in the first nine months of 2021 compared to the same period in 2020 was caused by lower drilling and completions activities across all four of our resource plays.

Liquidity and Capital Resources

Available Liquidity

Our main sources of liquidity are cash and cash equivalents, internally generated cash flow from operations, sales of non-core assets, capital market transactions and our revolving Credit Facility. At September 30, 2021, we had approximately $3.6 billion of liquidity consisting of $485 million in cash and cash equivalents and $3.1 billion available under our revolving Credit Facility.

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Our working capital requirements are supported by our cash and cash equivalents and our Credit Facility. We may draw on our revolving Credit Facility to meet short-term cash requirements or issue debt or equity securities through the shelf registration statement discussed below as part of our longer-term liquidity and capital management program. Because of the alternatives available to us as discussed above, we believe that our short-term and long-term liquidity are adequate to fund not only our current operations, but also our near-term and long-term funding requirements including our capital spending programs, defined benefit plan contributions, repayment of debt maturities, dividends and other amounts that may ultimately be paid in connection with contingencies. General economic conditions, commodity prices, and financial, business and other factors, including the global pandemic, could affect our operations and our ability to access the capital markets.

We continue to be rated investment grade at all three primary credit rating agencies. A downgrade in our credit ratings could increase our future cost of financing or limit our ability to access capital and could result in additional credit support requirements. We do not have any triggers on any of our corporate debt that would cause an event of default in the case of a downgrade of our credit ratings. See Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2020 for a discussion of how a downgrade in our credit ratings could affect us.

On October 27, 2021, our Board of Directors approved a dividend of $0.06 per share payable December 10, 2021 to stockholders of record at the close of business on November 17, 2021.

Capital Resources

Credit Arrangements and Borrowings

In June 2021, we executed the sixth amendment to our unsecured Credit Facility. The primary changes resulting from this amendment are (i) increasing the size of the Credit Facility from $3.0 billion to $3.1 billion, (ii) extending the maturity of the commitments of certain consenting lenders from May 2023 to June 2024 (with the remaining commitment of a single non-consenting lender to mature on May 28, 2023, at which time the size of the Credit Facility will be reduced to $3.0 billion) and (iii) including certain other provisions and revisions, including provisions to provide for the eventual replacement of LIBOR as a benchmark interest rate. See Note 16 to the consolidated financial statements for further information.

At September 30, 2021, we had no borrowings against our Credit Facility and $4.0 billion of total long-term debt outstanding. In April 2021, we fully redeemed our outstanding $500 million 2.8% Senior Notes due 2022 and the redemption reduced annual cash interest expense by $14 million. As a result of the redemption, we incurred $19 million in costs related to a make-whole provision premium and the write off of unamortized discount and issuance costs in the second quarter of 2021. In September 2021, we fully redeemed our outstanding $900 million 3.85% 2025 Notes and the redemption reduced annual cash interest expense by approximately $35 million. As a result of the redemption, we incurred $102 million in costs related to a make-whole provision premium and the write off of unamortized discount and issuance costs in the third quarter of 2021. Our next significant long-term debt maturity is in the amount of $1.0 billion due 2027. Refer to our 2020 Annual Report on Form 10-K for a listing of our long-term debt maturities.

In 2018, we signed an agreement with an owner/lessor to construct and lease a new build-to-suit office building in Houston, Texas. The lease commenced in September 2021, and as of September 30, 2021, we estimate that project costs total approximately $302 million, including land acquisition and construction costs. See Note 12 to the consolidated financial statements for further information.

Shelf Registration

We have a universal shelf registration statement filed with the SEC under which we, as a “well-known seasoned issuer” for purposes of SEC rules, have the ability to issue and sell an indeterminate amount of various types of debt and equity securities. 

Debt-To-Capital Ratio

The Credit Facility includes a covenant requiring that our total debt to total capitalization ratio not exceed 65% as of the last day of the fiscal quarter. Our ratio was 20% and 26% at September 30, 2021 and December 31, 2020.

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Capital Requirements

Share Repurchase Program

No share repurchases were made under our share repurchases program during the nine months ended September 30, 2021. We did repurchase $10 million of shares during the nine months ended September 30, 2021 related to our tax withholding obligation associated with the vesting of employee restricted stock awards. Subsequent to the quarter, we resumed our share repurchase program and repurchased approximately $200 million of shares of our common stock through November 3, 2021. Effective November 3, 2021, our Board of Directors increased our remaining share repurchase program authorization from $1.1 billion to $2.5 billion.

Contractual Cash Obligations

As of September 30, 2021, material decreases to our contractual cash obligations compared to December 31, 2020 include the redemption of our $500 million 2.8% Senior Notes due 2022 and $900 million 3.85% Senior Notes due 2025. See Note 16 to the consolidated financial statements for further information. Additionally, we had a material increase to our contractual cash obligations compared to December 31, 2020 associated with the increased guaranteed residual value of our Houston office building. See Note 12 to the consolidated financial statements for further information.

Other than the items set forth above, there are no additional material changes to our consolidated cash obligations to make future payments under existing contracts, as disclosed in our 2020 Annual Report on Form 10-K.

Environmental Matters and Other Contingencies

We have incurred and will continue to incur capital, operating and maintenance and remediation expenditures as a result of environmental laws and regulations. If these expenditures, as with all costs, are not ultimately offset by the prices we receive for our products and services, our operating results will be adversely affected. We believe that substantially all of our competitors must comply with similar environmental laws and regulations. However, the specific impact on each competitor may vary depending on a number of factors, including the age and location of its operating facilities, marketing areas and production processes. These laws generally provide for control of pollutants released into the environment and require responsible parties to undertake remediation of hazardous waste disposal sites. Penalties may be imposed for noncompliance.

Other than the items set forth in Part II - Item 1. Legal Proceedings, there have been no significant changes to the environmental, health and safety matters under Item 1. Business or Item 3. Legal Proceedings in our 2020 Annual Report on Form 10-K. See Note 23 to the consolidated financial statements for a description of other contingencies.

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Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”). All statements, other than statements of historical fact, including without limitation statements regarding our future performance, business strategy, reserve estimates, asset quality, production guidance, drilling plans, capital plans, future debt retirement, cost and expense estimates, asset acquisitions and dispositions, tax allowances, future financial position and other plans and objectives for future cash flow from operations, are forward-looking statements. Words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “intend,” “may,” “outlook,” “plan,” “positioned,” “project,” “seek,” “should,” “target,” “will,” “would” or similar words may be used to identify forward-looking statements; however, the absence of these words does not mean that the statements are not forward-looking. While we believe our assumptions concerning future events are reasonable, a number of factors could cause results to differ materially from those projected, including, but not limited to:

•conditions in the oil and gas industry, including supply and demand levels for crude oil and condensate, NGLs and natural gas and the resulting impact on price;

•changes in expected reserve or production levels;

•changes in political and economic conditions in the U.S. and E.G., including changes in foreign currency exchange rates, interest rates, and inflation rates;

•actions taken by the members of OPEC and Russia affecting the production and pricing of crude oil; and other global and domestic political, economic or diplomatic developments;

•risks related to our hedging activities;

•voluntary and involuntary volume curtailments;

•delays or cancellations of certain drilling activities;

•liability or corrective actions resulting from litigation or other proceedings and investigations;

•capital available for exploration and development;

•the inability of any party to satisfy closing conditions or delays in execution with respect to our asset acquisitions and dispositions;

•drilling and operating risks;

•lack of, or disruption in, access to storage capacity, pipelines or other transportation methods;

•well production timing;

•availability of drilling rigs, materials and labor, including the costs associated therewith;

•difficulty in obtaining necessary approvals and permits;

•non-performance by third parties of their contractual or legal obligations, including due to bankruptcy;

•changes in our credit ratings;

•hazards such as weather conditions, a health pandemic (including COVID-19), acts of war or terrorist acts and the governmental or military response thereto;

•shortages of key personnel, including employees, contractors and subcontractors;

•security threats, including cybersecurity threats and disruptions to our business and operations from breaches of our information technology systems, or breaches of the information technology systems, facilities and infrastructure of third parties with which we transact business;

•changes in safety, health, environmental, tax and other regulations or requirements or initiatives including those addressing the impact of global climate change, air emissions or water management;

•other geological, operating and economic considerations; and

•the risk factors, forward-looking statements and challenges and uncertainties described in our 2020 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other filings with the SEC.

All forward-looking statements included in this report are based on information available to us on the date of this report. Except as required by law, we undertake no obligation to revise or update any forward-looking statements as a result of new information, future events or otherwise.

43

Item 3. Quantitative and Qualitative Disclosures About Market Risk

    We are exposed to market risks in the normal course of business including commodity price risk and interest rate risk. We employ various strategies, including the use of financial derivatives to manage the risks related to commodity price fluctuations. See Note 14 and Note 15 to the consolidated financial statements for detail relating to our open commodity derivative positions, including underlying notional quantities, how they are reported in our consolidated financial statements and how their fair values are measured.

Commodity Price Risk

As of September 30, 2021, we had various open commodity derivatives. Based on the September 30, 2021 published NYMEX WTI, natural gas and natural gas liquids futures prices, a hypothetical 10% change (per bbl for crude oil, per MMbtu for gas and per bbl for NGL) would change the fair values of our commodity derivative positions to the following:

(In millions)	Fair Value at September 30, 2021		Hypothetical Price Increase of 10%		Hypothetical Price Decrease of 10%
Derivative asset (liability) - Crude Oil	$	(81)	$	(135)	$	(41)
Derivative asset (liability) - Natural Gas	(51)		(63)		(41)
Derivative asset (liability) - NGL	(21)		(24)		(17)
Total	$	(153)	$	(222)	$	(99)

Interest Rate Risk

At September 30, 2021, our portfolio of current and long-term debt is comprised of fixed-rate instruments with an outstanding balance of $4.0 billion. Our sensitivity to interest rate movements and corresponding changes in the fair value of our fixed-rate debt portfolio affects our results of operations and cash flows only when we elect to repurchase or otherwise retire fixed-rate debt at prices different than carrying value.

At September 30, 2021, we had forward starting interest rate swap agreements with a total notional amount of $295 million designated as cash flow hedges and $875 million not designated as hedges. We utilize cash flow hedges to manage our exposure to interest rate movements by utilizing interest rate swap agreements to hedge variations in cash flows related to the 1-month LIBOR component of future lease payments on our new Houston office. A hypothetical 10% change in interest rates would change the fair values of our cash flow hedge and de-designated cash flow hedge positions to the following as of September 30, 2021:

(In millions)	Fair Value at September 30, 2021		Hypothetical Interest Rate Increase of 10%		Hypothetical Interest Rate Decrease of 10%
Interest rate asset (liability) - designated as cash flow hedges	$	(8)	$	(7)	$	(9)
Interest rate asset (liability) - not designated as cash flow hedges	69		81		52
Total	$	61	$	74	$	43

Item 4. Controls and Procedures

An evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) was carried out under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer. As of the end of the period covered by this Report based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the design and operation of these disclosure controls and procedures were effective as of September 30, 2021.  

During the first nine months of 2021, there were no changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

44

Part II – OTHER INFORMATION

Item 1. Legal Proceedings

In January 2020, we received a Notice of Violation from the EPA related to the Clean Air Act. The enforcement action will likely result in monetary sanctions yet-to-be specified and corrective actions, which may increase our development costs, operating costs or both. Given the uncertainty in matters such as these, we are unable to predict the ultimate outcome of this matter at this time. However, we believe that any penalties, mitigation costs or corrective actions that may result from this matter will not have a material adverse effect on our consolidated financial position, results of operations or cash flows.

Marathon Oil has been named in various lawsuits alleging royalty underpayments in our domestic operations, and plaintiffs in some of these lawsuits are seeking class certification. We intend to vigorously defend ourselves against such claims. Although we have accrued for potential liabilities associated with these lawsuits, those accruals are based on currently available information and involve elements of judgment and significant uncertainties. Accordingly, actual losses may exceed our accruals or we could be required to accrue additional amounts in the future and these amounts could be material.

Other than the items set forth above, there have been no significant changes to Item 3. Legal Proceedings in our 2020 Annual Report on Form 10-K. See Note 23 to the consolidated financial statements included in Part I, Item I for a description of such legal and administrative proceedings and Item 3. Legal Proceedings in our 2020 Annual Report on Form 10-K.

Item 1A. Risk Factors

We are subject to various risks and uncertainties in the course of our business. In addition to the other information set forth in this Quarterly Report on Form 10-Q, the reader should carefully consider the factors discussed in Item 1A. Risk Factors in our 2020 Annual Report on Form 10-K. There have been no material changes to the risk factors from those listed in Item 1A. Risk Factors in our 2020 Annual Report on Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The following table provides information about purchases by Marathon Oil and its affiliated purchaser, during the quarter ended September 30, 2021 of equity securities that are registered by Marathon Oil pursuant to Section 12 of the Securities Exchange Act of 1934:

Period	Total Number of Shares Purchased(a)	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(b)	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs(b)
07/01/2021 - 07/31/2021	25,352	$	12.04	—	$	1,320,335,751
08/01/2021 - 08/31/2021	—	$	—	—	$	1,320,335,751
09/01/2021 - 09/30/2021	—	$	—	—	$	1,320,335,751
Total	25,352	$	12.04	—

(a)25,352 shares of restricted stock were delivered by employees to Marathon Oil, upon vesting, to satisfy tax withholding requirements.

(b)Refer to our 2020 Annual Report on Form 10-K for historical share repurchase program authorizations and repurchase activity. Purchases under the program are made at our discretion and may be in either open market transactions, including block purchases, or in privately negotiated transactions using cash on hand, cash generated from operations, or proceeds from potential asset sales. This program may be changed based upon our financial condition or changes in market conditions and is subject to termination prior to completion. Shares repurchased as of September 30, 2021 were held as treasury stock.

Item 6.  Exhibits

The information required by this Item 6 is set forth in the Exhibit Index accompanying this Form 10-Q.

45

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

November 4, 2021		MARATHON OIL CORPORATION
	By:	/s/ Gary E. Wilson
		Gary E. Wilson
		Vice President, Controller and Chief Accounting Officer
		(Duly Authorized Officer)

46

Exhibit Index

		Incorporated by Reference (File No. 001-05153, unless otherwise indicated)
Exhibit Number	Exhibit Description	Form	Exhibit	Filing Date
3.1	Restated Certificate of Incorporation of Marathon Oil Corporation	8-K	3.1	6/1/2018
3.2	Marathon Oil Corporation By-laws (amended and restated as of February 24, 2016)	10-Q	3.2	8/4/2016
3.3	Specimen of Common Stock Certificate	10-K	3.3	2/28/2014
4.1	Indenture, dated as of February 26, 2002, between Marathon Oil Corporation and The Bank of New York Trust Company, N.A., successor in interest to JPMorgan Chase Bank as Trustee, relating to senior debt securities of Marathon Oil Corporation. Pursuant to CFR 229.601(b)(4)(iii), instruments with respect to long-term debt issues have been omitted where the amount of securities authorized under such instruments does not exceed 10% of the total consolidated assets of Marathon Oil. Marathon Oil hereby agrees to furnish a copy of any such instrument to the SEC upon its request	10-K	4.2	2/28/2014
31.1*	Certification of President and Chief Executive Officer pursuant to Rule 13(a)-14 and 15(d)-14 under the Securities Exchange Act of 1934
31.2*	Certification of Executive Vice President and Chief Financial Officer pursuant to Rule 13(a)-14 and 15(d)-14 under the Securities Exchange Act of 1934
32.1*	Certification of President and Chief Executive Officer pursuant to 18 U.S.C. Section 1350
32.2*	Certification of Executive Vice President and Chief Financial Officer pursuant to 18 U.S.C. Section 1350
101.INS*	XBRL Instance Document - the XBRL Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH*	XBRL Taxonomy Extension Schema
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase
101.DEF*	XBRL Taxonomy Extension Definition Linkbase
101.LAB*	XBRL Taxonomy Extension Label Linkbase
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase
104*	Cover Page Interactive Data File, formatted in iXBRL and contained in Exhibit 101
*	Filed herewith.
†	Management contract or compensatory plan or arrangement.

EX-31.1

Exhibit 31.1 

MARATHON OIL CORPORATION

CERTIFICATION PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Lee M. Tillman, certify that: 

1.I have reviewed this report on Form 10-K of Marathon Oil Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	November 4, 2021	/s/ Lee M. Tillman
		Lee M. Tillman
		Chairman, President and Chief Executive Officer

EX-31.2

Exhibit 31.2 

MARATHON OIL CORPORATION 

CERTIFICATION PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002 

I, Dane E. Whitehead, certify that:

1.I have reviewed this report on Form 10-K of Marathon Oil Corporation;

1.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

2.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

3.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

4.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	November 4, 2021	/s/ Dane E. Whitehead
		Dane E. Whitehead
		Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

    In connection with the Quarterly Report of Marathon Oil Corporation (the “Company”) on Form 10-Q for the period ending September 30, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Lee M. Tillman, Chairman, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

November 4, 2021	/s/ Lee M. Tillman
	Lee M. Tillman
	Chairman, President and Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

    In connection with the Quarterly Report of Marathon Oil Corporation (the “Company”) on Form 10-Q for the period ending September 30, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Dane E. Whitehead, Executive Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

November 4, 2021	/s/ Dane E. Whitehead
	Dane E. Whitehead
	Executive Vice President and Chief Financial Officer

XML

Cover - shares	9 Months Ended
	Sep. 30, 2021	Oct. 29, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
Document Transition Report	false
Entity File Number	1-1513
Entity Registrant Name (tagged on cover)	Marathon Oil Corporation
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	25-0996816
Entity Address, Address Line One	990 Town and Country Boulevard,
Entity Address, City or Town	Houston,
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77024-2217
City Area Code	(713)
Local Phone Number	629-6600
Title of 12(b) Security	Common Stock, par value $1.00
Trading Symbol	MRO
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		778,536,897
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2021
Amendment Flag	false
Entity Central Index Key	0000101778
Current Fiscal Year End Date	--12-31

XML

Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenues and other income:
Revenues from contracts with customers	$ 1,438	$ 761	$ 3,869	$ 2,275
Net gain (loss) on commodity derivatives	(79)	(1)	(398)	131
Income (loss) from equity method investments	86	(10)	179	(174)
Net gain on disposal of assets	7	1	8	8
Other income	1	3	9	16
Total revenues and other income	1,453	754	3,667	2,256
Costs and expenses:
Production	131	129	378	418
Shipping, handling and other operating	219	183	538	432
Exploration	63	27	109	81
Depreciation, depletion and amortization	522	554	1,550	1,795
Impairments	13	1	60	98
Taxes other than income	88	49	236	145
General and administrative	70	53	227	217
Total costs and expenses	1,106	996	3,098	3,186
Income (loss) from operations	347	(242)	569	(930)
Net interest and other	(57)	(62)	(129)	(195)
Other net periodic benefit (costs) credits	0	(6)	2	1
Loss on early extinguishment of debt	(102)	0	(121)	0
Income (loss) before income taxes	188	(310)	321	(1,124)
Provision (benefit) for income taxes	4	7	24	(11)
Net income (loss)	$ 184	$ (317)	$ 297	$ (1,113)
Net income (loss) per share:
Basic (in dollars per share)	$ 0.23	$ (0.40)	$ 0.38	$ (1.41)
Diluted (in dollars per share)	$ 0.23	$ (0.40)	$ 0.38	$ (1.41)
Weighted average common shares outstanding:
Basic (in shares)	789	790	791	792
Diluted (in shares)	789	790	791	792

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 184	$ (317)	$ 297	$ (1,113)
Other comprehensive income (loss), net of tax
Change in actuarial gain (loss) and other for postretirement and postemployment plans	4	9	17	(33)
Change in derivative hedges unrecognized gain (loss)	1	11	20	(15)
Reclassification of de-designated forward interest rate swaps	0	0	(28)	0
Other comprehensive income (loss)	5	20	9	(48)
Comprehensive income (loss)	$ 189	$ (297)	$ 306	$ (1,161)

XML

Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 485	$ 742
Receivables, less reserve of $19 and $22	1,068	747
Inventories	77	76
Other current assets	25	47
Total current assets	1,655	1,612
Equity method investments	489	447
Property, plant and equipment, less accumulated depreciation, depletion and amortization of $21,914 and $20,358	14,734	15,638
Other noncurrent assets	283	259
Total assets	17,161	17,956
Current liabilities:
Accounts payable	1,028	837
Payroll and benefits payable	64	57
Accrued taxes	131	72
Other current liabilities	417	247
Long-term debt due within one year	36	0
Total current liabilities	1,676	1,213
Long-term debt	3,977	5,404
Deferred tax liabilities	132	163
Defined benefit postretirement plan obligations	137	180
Asset retirement obligations	286	241
Deferred credits and other liabilities	157	194
Total liabilities	6,365	7,395
Commitments and contingencies
Stockholders’ Equity
Preferred stock – no shares issued or outstanding (no par value, 26 million shares authorized)	0	0
Common stock:
Issued – 937 million shares (par value $1 per share, 1.925 billion shares authorized at September 30, 2021 and December 31, 2020)	937	937
Held in treasury, at cost – 148 million shares	(4,105)	(4,089)
Additional paid-in capital	7,213	7,174
Retained earnings	6,669	6,466
Accumulated other comprehensive income	82	73
Total stockholders’ equity	10,796	10,561
Total liabilities and stockholders’ equity	$ 17,161	$ 17,956

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Receivables reserve	$ 19	$ 22
Property, plant and equipment, accumulated depreciation	$ 21,914	$ 20,358
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Preferred stock, par value (in dollars per share)	$ 0	$ 0
Preferred stock, shares authorized (in shares)	26,000,000	26,000,000
Common stock, shares issued (in shares)	937,000,000	937,000,000
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, shares authorized (in shares)	1,925,000,000	1,925,000,000
Held in treasury, shares (in shares)	148,000,000	148,000,000

XML

Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Operating activities:
Net income (loss)	$ 297	$ (1,113)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization	1,550	1,795
Impairments	60	98
Exploratory dry well costs and unproved property impairments	101	63
Net gain on disposal of assets	(8)	(8)
Loss on early extinguishment of debt	121	0
Deferred income taxes	(32)	(2)
Unrealized (gain) loss on derivative instruments, net	130	(39)
Pension and other post retirement benefits, net	(25)	(35)
Stock-based compensation	29	43
Equity method investments, net	(57)	189
Changes in:
Current receivables	(313)	467
Inventories	(1)	(5)
Current accounts payable and accrued liabilities	228	(478)
Other current assets and liabilities	66	83
All other operating, net	(53)	(3)
Net cash provided by operating activities	2,093	1,055
Investing activities:
Additions to property, plant and equipment	(772)	(1,090)
Additions to other assets	0	15
Acquisitions, net of cash acquired	0	(1)
Disposal of assets, net of cash transferred to the buyer	29	9
Equity method investments - return of capital	15	7
All other investing, net	0	0
Net cash used in investing activities	(728)	(1,060)
Financing activities:
Borrowings	0	400
Debt repayment	(1,400)	0
Debt extinguishment costs	(117)	0
Purchases of common stock	(10)	(92)
Dividends paid	(94)	(40)
All other financing, net	(1)	(2)
Net cash provided by (used in) financing activities	(1,622)	266
Net increase (decrease) in cash and cash equivalents	(257)	261
Cash and cash equivalents at beginning of period	742	858
Cash and cash equivalents at end of period	$ 485	$ 1,119

XML

Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions	Total	Cumulative Effect, Period of Adoption, Adjustment	Preferred Stock	Common Stock	Treasury Stock	Additional Paid-in Capital	Retained Earnings	Retained Earnings Cumulative Effect, Period of Adoption, Adjustment	Accumulated Other Comprehensive Income (Loss)
Beginning balance at Dec. 31, 2019	$ 12,153	$ (12)	$ 0	$ 937	$ (4,089)	$ 7,207	$ 7,993	$ (12)	$ 105
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued - stock-based compensation	38				121	(83)
Shares repurchased	(91)				(91)
Stock-based compensation	(22)					(22)
Net income (loss)	(46)						(46)
Other comprehensive income (loss)	(22)								(22)
Dividends paid	(40)						(40)
Ending balance at Mar. 31, 2020	11,958		0	937	(4,059)	7,102	7,895		83
Beginning balance at Dec. 31, 2019	12,153	$ (12)	0	937	(4,089)	7,207	7,993	$ (12)	105
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(1,113)
Other comprehensive income (loss)	(48)
Ending balance at Sep. 30, 2020	10,892		0	937	(4,089)	7,159	6,828		57
Beginning balance at Mar. 31, 2020	11,958		0	937	(4,059)	7,102	7,895		83
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued - stock-based compensation	(8)				(28)	20
Stock-based compensation	21					21
Net income (loss)	(750)						(750)
Other comprehensive income (loss)	(46)								(46)
Ending balance at Jun. 30, 2020	11,175		0	937	(4,087)	7,143	7,145		37
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued - stock-based compensation	0				(2)	2
Stock-based compensation	14					14
Net income (loss)	(317)						(317)
Other comprehensive income (loss)	20								20
Ending balance at Sep. 30, 2020	10,892		0	937	(4,089)	7,159	6,828		57
Beginning balance at Dec. 31, 2020	10,561		0	937	(4,089)	7,174	6,466		73
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued - stock-based compensation	(5)				(15)	10
Shares repurchased	(9)				(9)
Stock-based compensation	11					11
Net income (loss)	97						97
Other comprehensive income (loss)	39								39
Dividends paid	(23)						(23)
Ending balance at Mar. 31, 2021	10,671		0	937	(4,113)	7,195	6,540		112
Beginning balance at Dec. 31, 2020	10,561		0	937	(4,089)	7,174	6,466		73
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	297
Other comprehensive income (loss)	9
Ending balance at Sep. 30, 2021	10,796		0	937	(4,105)	7,213	6,669		82
Beginning balance at Mar. 31, 2021	10,671		0	937	(4,113)	7,195	6,540		112
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued - stock-based compensation	9				8	1
Stock-based compensation	5					5
Net income (loss)	16						16
Other comprehensive income (loss)	(35)								(35)
Dividends paid	(32)						(32)
Ending balance at Jun. 30, 2021	10,634		0	937	(4,105)	7,201	6,524		77
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued - stock-based compensation	1				0	1
Shares repurchased	0				0
Stock-based compensation	11					11
Net income (loss)	184						184
Other comprehensive income (loss)	5								5
Dividends paid	(39)						(39)
Ending balance at Sep. 30, 2021	$ 10,796		$ 0	$ 937	$ (4,105)	$ 7,213	$ 6,669		$ 82

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Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares	3 Months Ended					9 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Stockholders' Equity [Abstract]
Dividends paid (in dollars per share)	$ 0.05	$ 0.04	$ 0.03	$ 0	$ 0.05	$ 0.12	$ 0.05

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Basis of Presentation

9 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

These consolidated financial statements are unaudited; however, in the opinion of management, these statements reflect all adjustments necessary for a fair statement of the results for the periods reported. All such adjustments are of a normal recurring nature unless disclosed otherwise. These consolidated financial statements, including notes, have been prepared in accordance with the applicable rules of the SEC and do not include all of the information and disclosures required by U.S. GAAP for complete financial statements.

These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2020 Annual Report on Form 10-K. The results of operations for the third quarter and first nine months of 2021 are not necessarily indicative of the results to be expected for the full year.

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Accounting Standards	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Accounting Standards	Accounting StandardsNo accounting standards were adopted in the third quarter or first nine months of 2021 that had a material impact on our consolidated financial statements.

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Income (loss) and Dividends per Common Share

9 Months Ended

Sep. 30, 2021

Earnings Per Share [Abstract]

Income (loss) and Dividends per Common Share

Income (loss) and Dividends per Common Share

Basic income (loss) per share is based on the weighted average number of common shares outstanding. Diluted income (loss) per share assumes exercise of stock options in all periods, provided the effect is not antidilutive. The per share calculations below exclude 4 million of stock options for each of the three and nine months ended September 30, 2021 and 6 million of stock options for each of the three and nine months ended September 30, 2020 that were antidilutive.

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions, except per share data)	2021		2020		2021		2020
Net income (loss)	$	184	$	(317)	$	297	$	(1,113)
Weighted average common shares outstanding	789		790		791		792
Effect of dilutive securities	—		—		—		—
Weighted average common shares, diluted	789		790		791		792
Net income (loss) per share:
Basic	$	0.23	$	(0.40)	$	0.38	$	(1.41)
Diluted	$	0.23	$	(0.40)	$	0.38	$	(1.41)
Dividends per share	$	0.05	$	—	$	0.12	$	0.05

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Revenues

9 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

Revenues

Revenues

The majority of our revenues are derived from the sale of crude oil and condensate, NGLs and natural gas under spot and term agreements with our customers in the United States and Equatorial Guinea.

As of September 30, 2021 and December 31, 2020, receivables from contracts with customers, included in receivables, less reserves were $900 million and $572 million, respectively.

The following tables present our revenues from contracts with customers disaggregated by product type and geographic areas for the three and nine months ended September 30:

United States

	Three Months Ended September 30, 2021
(In millions)	Eagle Ford		Bakken		Oklahoma		Northern Delaware		Other U.S.		Total
Crude oil and condensate	$	391	$	425	$	74	$	75	$	19	$	984
Natural gas liquids	50		63		53		12		5		183
Natural gas	38		29		62		12		3		144
Other	2		—		—		—		62		64
Revenues from contracts with customers	$	481	$	517	$	189	$	99	$	89	$	1,375

	Three Months Ended September 30, 2020
(In millions)	Eagle Ford		Bakken		Oklahoma		Northern Delaware		Other U.S.		Total
Crude oil and condensate	$	190	$	230	$	65	$	53	$	14	$	552
Natural gas liquids	22		15		28		7		1		73
Natural gas	18		9		33		6		3		69
Other	1		—		—		—		27		28
Revenues from contracts with customers	$	231	$	254	$	126	$	66	$	45	$	722

	Nine Months Ended September 30, 2021
(In millions)	Eagle Ford		Bakken		Oklahoma		Northern Delaware		Other U.S.		Total
Crude oil and condensate	$	1,003	$	1,208	$	206	$	229	$	65	$	2,711
Natural gas liquids	109		152		127		32		10		430
Natural gas	114		71		212		42		11		450
Other	6		—		—		—		99		105
Revenues from contracts with customers	$	1,232	$	1,431	$	545	$	303	$	185	$	3,696

	Nine Months Ended September 30, 2020
(In millions)	Eagle Ford		Bakken		Oklahoma		Northern Delaware		Other U.S.		Total
Crude oil and condensate	$	639	$	707	$	181	$	160	$	54	$	1,741
Natural gas liquids	53		28		62		14		4		161
Natural gas	62		22		86		13		7		190
Other	4		—		—		—		58		62
Revenues from contracts with customers	$	758	$	757	$	329	$	187	$	123	$	2,154

International (E.G.)

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2021		2020		2021		2020
Crude oil and condensate	$	56	$	31	$	151	$	96
Natural gas liquids	—		1		2		3
Natural gas	6		7		18		22
Other	1		—		2		—
Revenues from contracts with customers	$	63	$	39	$	173	$	121

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Segment Information

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Segment Information

Segment Information

    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.”)

    Segment income represents income that 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, impairments of proved and certain unproved properties, goodwill, and equity method investments, unrealized gains or losses on commodity and interest rate derivative instruments, effects of pension settlements and curtailments or other items (as determined by the chief operating decision maker (“CODM”)) are not allocated to operating segments.

	Three Months Ended September 30, 2021
(In millions)	U.S.		Int’l		Not Allocated to Segments			Total
Revenues from contracts with customers	$	1,375	$	63	$	—		$	1,438
Net gain (loss) on commodity derivatives	(106)		—		27		(b)	(79)
Income (loss) from equity method investments	—		86		—			86
Net gain on disposal of assets	—		—		7			7
Other income	—		—		1			1
Less costs and expenses:
Production	119		12		—			131
Shipping, handling and other operating	209		7		3			219
Exploration	15		—		48		(c)	63
Depreciation, depletion and amortization	499		17		6			522
Impairments	—		—		13		(d)	13
Taxes other than income	88		—		—			88
General and administrative	29		3		38			70
Net interest and other	—		—		57		(e)	57
Other net periodic benefit costs	—		—		—			—
Loss on early extinguishment of debt	—		—		102		(f)	102
Income tax provision (benefit)	5		17		(18)			4
Segment income (loss)	$	305	$	93	$	(214)		$	184
Total assets	$	15,528	$	1,071	$	562		$	17,161
Capital expenditures(a)	$	303	$	2	$	3		$	308

(a)Includes accruals.

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

(c)Includes unproved property impairments of $20 million for Louisiana exploration leases and $16 million related to the disposition of a Permian lease. Also includes $12 million of dry well costs associated with drilled and uncompleted wells, primarily in Permian (See Note 9).

(d)Includes impairments of $5 million for proved properties in Permian (See Note 10) and $8 million associated with decommissioning costs for non-producing long-lived assets in GOM (See Note 10, Note 11, and Note 23).

(e)Includes a $5 million gain on 2022 interest rate swaps and a $3 million gain on 2025 interest rate swaps (See Note 14).

(f)Represents costs related to a make-whole provision premium and the write off of issuance costs related to the redemption of the 2025 Notes in September 2021 (See Note 16).

	Three Months Ended September 30, 2020
(In millions)	U.S.		Int’l		Not Allocated to Segments			Total
Revenues from contracts with customers	$	722	$	39	$	—		$	761
Net gain (loss) on commodity derivatives	35		—		(36)		(b)	(1)
Income (loss) from equity method investments	—		8		(18)			(10)
Net gain on disposal of assets	—		—		1			1
Other income	1		1		1			3
Less costs and expenses:
Production	118		11		—			129
Shipping, handling and other operating	154		1		28			183
Exploration	21		—		6			27
Depreciation, depletion and amortization	530		19		5			554
Impairments	—		—		1			1
Taxes other than income	48		—		1			49
General and administrative	25		3		25			53
Net interest and other	—		—		62			62
Other net periodic benefit costs	—		—		6		(c)	6
Income tax provision (benefit)	(3)		6		4			7
Segment income (loss)	$	(135)	$	8	$	(190)		$	(317)
Total assets	$	16,396	$	1,104	$	1,163		$	18,663
Capital expenditures(a)	$	176	$	—	$	1		$	177

(a)Includes accruals.

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

(c)Includes pension settlement loss of $9 million (See Note 19).

	Nine Months Ended September 30, 2021
(In millions)	U.S.		Int’l		Not Allocated to Segments			Total
Revenues from contracts with customers	$	3,696	$	173	$	—		$	3,869
Net loss on commodity derivatives	(268)		—		(130)		(b)	(398)
Income (loss) from equity method investments	—		179		—			179
Net gain on disposal of assets	—		—		8			8
Other income	4		3		2			9
Less costs and expenses:
Production	343		35		—			378
Shipping, handling and other operating	506		13		19			538
Exploration	54		—		55		(c)	109
Depreciation, depletion and amortization	1,477		54		19			1,550
Impairments	—		—		60		(d)	60
Taxes other than income	238		—		(2)			236
General and administrative	79		9		139		(e)	227
Net interest and other	—		—		129		(f)	129
Other net periodic benefit credit	—		—		(2)			(2)
Loss on early extinguishment of debt	—		—		121		(g)	121
Income tax provision (benefit)	11		33		(20)			24
Segment income (loss)	$	724	$	211	$	(638)		$	297
Total assets	$	15,528	$	1,071	$	562		$	17,161
Capital expenditures(a)	$	770	$	4	$	7		$	781

(a)Includes accruals.

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

(c)Includes unproved property impairments of $20 million for Louisiana exploration leases and $16 million related to the disposition of a lease in Permian. Also includes $12 million of dry well costs associated with drilled and uncompleted wells, primarily in Permian (See Note 9).

(d)Includes impairments of $24 million for central facilities in Eagle Ford (See Note 10), $5 million for proved properties in Permian (See Note 10), and $30 million associated with decommissioning costs for non-producing long-lived assets in GOM (See Note 10, Note 11, and Note 23).

(e)Includes $13 million associated with the termination of an aircraft lease agreement and $12 million arising from severance expenses associated with a workforce reduction.

(f)Includes a $24 million gain on 2022 interest rate swaps and a $34 million gain on 2025 interest rate swaps (See Note 14).

(g)Represents costs related to a make-whole provision premium and the write off of unamortized discount and issuance costs in regards to the redemption of the 2022 Notes in April 2021 and 2025 Notes in September 2021 (See Note 16).

	Nine Months Ended September 30, 2020
(In millions)	U.S.		Int’l		Not Allocated to Segments			Total
Revenue from contracts with customers	$	2,154	$	121	$	—		$	2,275
Net gain on commodity derivatives	92		—		39		(b)	131
Loss from equity method investments	—		(4)		(170)		(c)	(174)
Net gain on disposal of assets	—		—		8			8
Other income	8		5		3			16
Less costs and expenses:
Production	375		43		—			418
Shipping, handling and other operating	385		5		42			432
Exploration	75		—		6			81
Depreciation, depletion and amortization	1,716		62		17			1,795
Impairments	—		—		98		(d)	98
Taxes other than income	144		—		1			145
General and administrative	89		10		118		(e)	217
Net interest and other	—		—		195			195
Other net periodic benefit credit	—		—		(1)		(f)	(1)
Income tax provision (benefit)	(10)		1		(2)			(11)
Segment income (loss)	$	(520)	$	1	$	(594)		$	(1,113)
Total assets	$	16,396	$	1,104	$	1,163		$	18,663
Capital expenditures(a)	$	874	$	—	$	10		$	884

(a)Includes accruals.

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

(c)Partial impairment of investment in equity method investee (See Note 22).

(d)Includes the full impairment of the International reporting unit goodwill of $95 million (See Note 13).

(e)Includes severance expenses associated with workforce reductions of $15 million.

(f)Includes pension settlement loss of $25 million and pension curtailment gain of $17 million (See Note 19).

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Income Taxes

9 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Effective Tax Rate

The effective income tax rate is influenced by a variety of factors including the geographic and functional sources of income and the relative magnitude of these sources of income. The difference between the total provision and the sum of the amounts allocated to segments is reported in the “Not Allocated to Segments” column of the tables in Note 5.

For the three and nine months ended September 30, 2021 and 2020, our effective income tax rates were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Effective income tax rate	2	%	(2)	%	7	%	1	%

Our effective income tax rate was different from our U.S. statutory tax rate of 21% for the three and nine months ended September 30, 2021 and 2020 as a result of the income mix of our U.S. and E.G. operations, including the income mix within E.G. between equity method investees and subsidiaries. At September 30, 2021, we have a full valuation allowance on net federal deferred tax assets in the U.S., which results in no federal deferred tax expense or benefit on current year U.S. activity. We intend to continue a full valuation allowance on these deferred tax assets until there is sufficient evidence to support the reversal of all or some portion of the allowance. However, if current commodity prices are sustained and absent any additional objective negative evidence, we expect it is reasonably possible that sufficient positive evidence will exist within the next 12 months to adjust our current valuation allowance position. Exact timing and amount of the adjustment to the valuation allowance is unknown as this time.

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Credit Losses

9 Months Ended

Sep. 30, 2021

Credit Loss [Abstract]

Credit Losses

Credit Losses

    The majority of our receivables are from purchasers of commodities or joint interest owners in properties we operate, both of which are recorded at estimated or invoiced amounts and do not bear interest. The majority of these receivables have payment terms of 30 days or less. At the end of each reporting period, we assess the collectability of our receivables and estimate the expected credit losses using historical data, current market conditions, reasonable and supportable forecasts of future economic conditions and other data as deemed appropriate.

Changes in the allowance for doubtful accounts balance were as follows:    

(In millions)	September 30, 2021		December 31, 2020
Beginning balance as of January 1	$	22	$	11
Cumulative-effect adjustment	—		12
Current period provision(a)	1		22
Current period write offs	(1)		(13)
Recoveries of amounts previously reserved	(3)		(10)
Ending balance	$	19	$	22

(a)As of December 31, 2020, the current period provision consisted of $10 million in joint interest receivables and $12 million in trade receivables.

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Inventories

9 Months Ended

Sep. 30, 2021

Inventory Disclosure [Abstract]

Inventories

Inventories

    Crude oil and natural gas are recorded at weighted average cost and carried at the lower of cost or net realizable value. Supplies and other items consist principally of tubular goods and equipment which are valued at weighted average cost and reviewed periodically for obsolescence or impairment when market conditions indicate.

(In millions)	September 30, 2021		December 31, 2020
Crude oil and natural gas	$	13	$	10
Supplies and other items	64		66
Inventories	$	77	$	76

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Property, Plant and Equipment

9 Months Ended

Sep. 30, 2021

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, Plant and Equipment

(In millions)	September 30, 2021		December 31, 2020
United States	$	14,317	$	15,156
International	364		414
Corporate	53		68
Net property, plant and equipment	$	14,734	$	15,638

As of September 30, 2021 and December 31, 2020, we had $125 million and $98 million, respectively, of exploratory well costs capitalized greater than one year related to suspended wells. Management believes these wells exhibit sufficient quantities of hydrocarbons to justify potential development. The vast majority of the suspended wells require completion activities and installation of infrastructure in order to classify the reserves as proved. During the third quarter of 2021, we recorded $12 million of dry well costs associated with drilled and uncompleted exploratory wells, primarily in the Permian.

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Impairments

9 Months Ended

Sep. 30, 2021

Impairment Expense [Abstract]

Impairments

Impairments

    The following table summarizes impairment charges of proved properties, goodwill and equity method investments and their corresponding fair values.

	Three Months Ended September 30,
	2021				2020
(In millions)	Fair Value		Impairment		Fair Value		Impairment
Long-lived assets held for use	$	—	$	5	$	—	$	1
Asset retirement costs of long-lived assets	—		8		—		—
Equity method investment	$	—	$	—	$	23	$	18

	Nine Months Ended September 30,
	2021				2020
(In millions)	Fair Value		Impairment		Fair Value		Impairment
Long-lived assets held for use	$	—	$	30	$	—	$	3
Asset retirement costs of long-lived assets	—		30		—		—
Goodwill	—		—		—		95
Equity method investment	$	—	$	—	$	119	$	170

•2021 – During the second quarter of 2021, we recorded an impairment expense of $24 million associated with two central facilities located in Eagle Ford. Decommissioning activities commenced during the second quarter, which included the re-routing of existing wells. During the third quarter of 2021, we recorded an impairment expense of $5 million associated with our interests in outside operated conventional assets located in New Mexico.

During the nine months ended September 30, 2021, we also recognized an incremental $30 million of impairment expense associated with an increase in the estimated future decommissioning costs of certain non-producing wells, pipelines and production facilities for previously divested offshore assets located in the Gulf of Mexico. In a prior reporting period, we recorded a $7 million liability in our consolidated balance sheet associated with these assets, thereby increasing the total recognized asset retirement obligation to $37 million as of September 30, 2021. See Note 11 and Note 23 for further information.

The combined effects of these items were recorded within the Impairments line item within our consolidated statements of income.

•2020 – Impairments for the nine months ended September 30, 2020 include charges recognized for our equity method investments of $170 million. During the second and third quarters of 2020, the continuation of the depressed commodity prices, along with a reduction of our long-term price forecasts of a gas index in which one of our equity method investees transacts, caused us to perform a review of one of our equity method investments. Our review concluded that a loss of our investment value in one of our equity method investees was other than temporary and we recorded impairments of $152

million in the second quarter of 2020 and an additional $18 million in the third quarter of 2020.

The impairments of our equity method investments were recognized in income (loss) from equity method investments in our consolidated statements of income. Additionally, the impairments caused us to incur a basis differential between the net book value of our investment and the amount of our underlying share of equity in the investee’s net assets. This differential is being accreted into income over the remaining useful life of the investee’s primary assets.

Impairments for the first nine months of 2020 also included $95 million of goodwill impairment in the International reporting unit. See Note 13 for further information

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Asset Retirement Obligations

9 Months Ended

Sep. 30, 2021

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligations

Asset Retirement Obligations

Asset retirement obligations primarily consist of estimated costs to remove, dismantle and restore land or seabed at the end of oil and gas production operations. Changes in asset retirement obligations were as follows:

	September 30,
(In millions)	2021		2020
Beginning balance as of January 1	$	254	$	255
Incurred liabilities, including acquisitions	9		3
Settled liabilities, including dispositions	(3)		(11)
Accretion expense (included in depreciation, depletion and amortization)	9		9
Revisions of estimates	40		(8)
Ending balance as of September 30, total	$	309	$	248
Ending balance as of September 30, short-term	$	23	$	12

In the first nine months of 2021, we had revisions of estimates totaling $37 million related to anticipated costs for decommissioning certain wells, pipelines and production facilities for previously divested offshore non-producing long-lived assets located in the Gulf of Mexico. As of September 30, 2021, $14 million of these Gulf of Mexico related revisions of estimates were classified as short-term. See Note 23 for further information. Of the $37 million, approximately $30 million was recognized as impairment expense during the nine months ended September 30, 2021. See Note 10 for further information.

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Leases

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Leases

Leases

Lessee

Balance sheet information related to right-of-use (‘ROU’) assets and lease liabilities was as follows:

(In millions)	Balance Sheet Location:	September 30, 2021		December 31, 2020
ROU assets:
Operating leases	Other noncurrent assets	$	74	$	133
Finance leases	Other noncurrent assets	35		—
Total ROU assets		$	109	$	133
Lease liabilities:
Current liabilities
Operating leases	Other current liabilities	$	44	$	70
Finance leases	Other current liabilities	5		—
Noncurrent liabilities
Operating leases	Deferred credits and other liabilities	34		67
Finance leases	Deferred credits and other liabilities	30		—
Total Lease liabilities		$	113	$	137

Operating Leases

We enter into various lease agreements to support our operations including drilling rigs, well fracturing equipment, compressors, buildings, aircraft, vessels, vehicles and miscellaneous field equipment. We primarily act as a lessee in these transactions and the majority of our existing leases are classified as either short-term or long-term operating leases.

Finance Leases

In 2018, we signed an agreement with an owner/lessor to construct and lease a new build-to-suit office building in Houston, Texas. As of September 30, 2021, we estimate that project costs total approximately $302 million, including land acquisition and construction costs. The initial lease term is five years and commenced in late September 2021 after the new Houston office was ready for occupancy. In the third quarter of 2021, we recorded a $32 million ROU asset and corresponding lease liability associated with the building, which was classified as a finance lease. At the end of the initial lease term, we can negotiate to extend the lease term for an additional five years, subject to the approval of the participants; purchase the property subject to certain terms and conditions; or remarket the property to an unrelated third party. The lease contains a residual value guarantee of 100% of the total acquisition and construction costs. The weighted-average remaining lease term is five years and the discount rate is 2.25%.

Lessor

Our wholly owned subsidiary, Marathon E.G. Production Limited, is a lessor for residential housing in E.G., which is occupied by EGHoldings, a related party equity method investee – see Note 22. The lease was classified as an operating lease and expires in 2024, with a lessee option to extend through 2034. Lease payments are fixed for the entire duration of the agreement at approximately $6 million per year. Our lease income is reported in other income in our consolidated statements of income for all periods presented. The undiscounted cash flows to be received under this lease agreement are summarized below.

(In millions)	Operating Lease Future Cash Receipts
2021	$	2
2022	6
2023	6
2024	6
2025	6
Thereafter	56
Total undiscounted cash flows	$	82

Leases

Leases

Lessee

Balance sheet information related to right-of-use (‘ROU’) assets and lease liabilities was as follows:

(In millions)	Balance Sheet Location:	September 30, 2021		December 31, 2020
ROU assets:
Operating leases	Other noncurrent assets	$	74	$	133
Finance leases	Other noncurrent assets	35		—
Total ROU assets		$	109	$	133
Lease liabilities:
Current liabilities
Operating leases	Other current liabilities	$	44	$	70
Finance leases	Other current liabilities	5		—
Noncurrent liabilities
Operating leases	Deferred credits and other liabilities	34		67
Finance leases	Deferred credits and other liabilities	30		—
Total Lease liabilities		$	113	$	137

Operating Leases

We enter into various lease agreements to support our operations including drilling rigs, well fracturing equipment, compressors, buildings, aircraft, vessels, vehicles and miscellaneous field equipment. We primarily act as a lessee in these transactions and the majority of our existing leases are classified as either short-term or long-term operating leases.

Finance Leases

In 2018, we signed an agreement with an owner/lessor to construct and lease a new build-to-suit office building in Houston, Texas. As of September 30, 2021, we estimate that project costs total approximately $302 million, including land acquisition and construction costs. The initial lease term is five years and commenced in late September 2021 after the new Houston office was ready for occupancy. In the third quarter of 2021, we recorded a $32 million ROU asset and corresponding lease liability associated with the building, which was classified as a finance lease. At the end of the initial lease term, we can negotiate to extend the lease term for an additional five years, subject to the approval of the participants; purchase the property subject to certain terms and conditions; or remarket the property to an unrelated third party. The lease contains a residual value guarantee of 100% of the total acquisition and construction costs. The weighted-average remaining lease term is five years and the discount rate is 2.25%.

Lessor

Our wholly owned subsidiary, Marathon E.G. Production Limited, is a lessor for residential housing in E.G., which is occupied by EGHoldings, a related party equity method investee – see Note 22. The lease was classified as an operating lease and expires in 2024, with a lessee option to extend through 2034. Lease payments are fixed for the entire duration of the agreement at approximately $6 million per year. Our lease income is reported in other income in our consolidated statements of income for all periods presented. The undiscounted cash flows to be received under this lease agreement are summarized below.

(In millions)	Operating Lease Future Cash Receipts
2021	$	2
2022	6
2023	6
2024	6
2025	6
Thereafter	56
Total undiscounted cash flows	$	82

Leases

Leases

Lessee

Balance sheet information related to right-of-use (‘ROU’) assets and lease liabilities was as follows:

(In millions)	Balance Sheet Location:	September 30, 2021		December 31, 2020
ROU assets:
Operating leases	Other noncurrent assets	$	74	$	133
Finance leases	Other noncurrent assets	35		—
Total ROU assets		$	109	$	133
Lease liabilities:
Current liabilities
Operating leases	Other current liabilities	$	44	$	70
Finance leases	Other current liabilities	5		—
Noncurrent liabilities
Operating leases	Deferred credits and other liabilities	34		67
Finance leases	Deferred credits and other liabilities	30		—
Total Lease liabilities		$	113	$	137

Operating Leases

We enter into various lease agreements to support our operations including drilling rigs, well fracturing equipment, compressors, buildings, aircraft, vessels, vehicles and miscellaneous field equipment. We primarily act as a lessee in these transactions and the majority of our existing leases are classified as either short-term or long-term operating leases.

Finance Leases

In 2018, we signed an agreement with an owner/lessor to construct and lease a new build-to-suit office building in Houston, Texas. As of September 30, 2021, we estimate that project costs total approximately $302 million, including land acquisition and construction costs. The initial lease term is five years and commenced in late September 2021 after the new Houston office was ready for occupancy. In the third quarter of 2021, we recorded a $32 million ROU asset and corresponding lease liability associated with the building, which was classified as a finance lease. At the end of the initial lease term, we can negotiate to extend the lease term for an additional five years, subject to the approval of the participants; purchase the property subject to certain terms and conditions; or remarket the property to an unrelated third party. The lease contains a residual value guarantee of 100% of the total acquisition and construction costs. The weighted-average remaining lease term is five years and the discount rate is 2.25%.

Lessor

Our wholly owned subsidiary, Marathon E.G. Production Limited, is a lessor for residential housing in E.G., which is occupied by EGHoldings, a related party equity method investee – see Note 22. The lease was classified as an operating lease and expires in 2024, with a lessee option to extend through 2034. Lease payments are fixed for the entire duration of the agreement at approximately $6 million per year. Our lease income is reported in other income in our consolidated statements of income for all periods presented. The undiscounted cash flows to be received under this lease agreement are summarized below.

(In millions)	Operating Lease Future Cash Receipts
2021	$	2
2022	6
2023	6
2024	6
2025	6
Thereafter	56
Total undiscounted cash flows	$	82

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Goodwill

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Goodwill

Goodwill is tested for impairment on an annual basis, or between annual tests when events or changes in circumstances indicate the fair value of a reporting unit with goodwill may have been reduced below its carrying value. During the first quarter of 2020, a global pandemic caused a substantial deterioration in the worldwide demand of hydrocarbons. The commensurate decline in our market capitalization indicated that it was more likely than not that the fair value of the International reporting unit was less than its carrying value.

We estimated the fair value of our International reporting unit using a combination of market and income approaches. The market approach referenced observable inputs specific to us and our industry, such as the price of our common equity, our enterprise value and valuation multiples of us and peers from the investor analyst community. The income approach utilized discounted cash flows, which were based on forecasted assumptions. These valuation methodologies represent Level 3 fair value measurements. Based on the results, we concluded our goodwill was fully impaired, and recorded an impairment of $95 million in the consolidated statements of income for the first quarter of 2020. This represented the entirety of our goodwill on our consolidated balance sheet.

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Derivatives

9 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

DerivativesFor further information regarding the fair value measurement of derivative instruments, see Note 15. All of our commodity derivatives are subject to enforceable master netting arrangements or similar agreements under which we report net amounts.

The following tables present the gross fair values of derivative instruments and the reported net amounts along with where they appear on the consolidated balance sheets.

	September 30, 2021
(In millions)	Asset		Liability		Net Asset (Liability)		Balance Sheet Location
Not Designated as Hedges
Commodity	$	—	$	152	$	(152)	Other current liabilities
Commodity	—		1		(1)		Deferred credits and other liabilities
Interest Rate	70		—		70		Other noncurrent assets
Interest Rate	—		1		(1)		Deferred credits and other liabilities
Total Not Designated as Hedges	$	70	$	154	$	(84)
Cash Flow Hedges
Interest Rate	$	—	$	3	$	(3)	Other current liabilities
Interest Rate	—		5		(5)		Deferred credits and other liabilities
Total Designated Hedges	$	—	$	8	$	(8)
Total	$	70	$	162	$	(92)

	December 31, 2020
(In millions)	Asset		Liability		Net Asset (Liability)		Balance Sheet Location
Not Designated as Hedges
Commodity	$	3	$	1	$	2	Other current assets
Commodity	7		32		(25)		Other current liabilities
Interest Rate	10		—		10		Other noncurrent assets
Total Not Designated as Hedges	$	20	$	33	$	(13)
Cash Flow Hedges
Interest Rate	$	19	$	—	$	19	Other noncurrent assets
Interest Rate	—		16		(16)		Deferred credits and other liabilities
Total Designated Hedges	$	19	$	16	$	3
Total	$	39	$	49	$	(10)

Derivatives Not Designated as Hedges

Commodity Derivatives

We have entered into multiple crude oil, natural gas and NGL derivatives indexed to the respective indices as noted in the table below, related to a portion of our forecasted U.S. sales through 2022. These derivatives consist of three-way collars, two-way collars, fixed price swaps and NYMEX roll basis swaps. Three-way collars consist of a sold call (ceiling), a purchased put (floor) and a sold put. The ceiling price is the maximum we will receive for the contract volumes; the floor is the minimum price we will receive, unless the market price falls below the sold put strike price. In this case, we receive the NYMEX WTI price plus the difference between the floor and the sold put price. Two-way collars only consist of a sold call (ceiling) and a purchased put (floor).

The following table sets forth outstanding derivative contracts as of September 30, 2021, and the weighted average prices for those contracts:

	2021		2022
	Fourth Quarter		First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Crude Oil
NYMEX WTI Three-Way Collars
Volume (Bbls/day)	40,000		30,000		30,000		10,000		10,000
Weighted average price per Bbl:
Ceiling	$	78.05	$	89.12	$	89.12	$	88.44	$	88.44
Floor	$	50.00	$	50.00	$	50.00	$	50.00	$	50.00
Sold put	$	40.00	$	40.00	$	40.00	$	40.00	$	40.00
NYMEX WTI Two-Way Collars
Volume (Bbls/day)	40,000		—		—		—		—
Weighted average price per Bbl:
Ceiling	$	58.92	$	—	$	—	$	—	$	—
Floor	$	39.25	$	—	$	—	$	—	$	—
NYMEX Roll Basis Swaps
Volume (Bbls/day)	40,000		45,000		45,000		45,000		45,000
Weighted average price per Bbl	$	1.15	$	0.56	$	0.56	$	0.56	$	0.56
Natural Gas
Henry Hub (“HH”) Two-Way Collars
Volume (MMBtu/day)	200,000		—		—		—		—
Weighted average price per MMBtu:
Ceiling	$	3.05	$	—	$	—	$	—	$	—
Floor	$	2.50	$	—	$	—	$	—	$	—
HH Three-Way Collars
Volume (MMBtu/day)	—		50,000		—		—		—
Weighted average price per MMBtu:
Ceiling	$	—	$	5.14	$	—	$	—	$	—
Floor	$	—	$	3.60	$	—	$	—	$	—
Sold Put	$	—	$	2.60	$	—	$	—	$	—
HH Fixed Price Swaps
Volume (MMBtu/day)	50,000		—		—		—		—
Weighted average price per MMBtu	$	2.88	$	—	$	—	$	—	$	—
NGL
Fixed Price Ethane Swaps (a)
Volume (Bbls/day)	5,000		—		—		—		—
Weighted average price per Bbl	$	10.92	$	—	$	—	$	—	$	—
Fixed Price Propane Swaps (b)
Volume (Bbls/day)	5,000		—		—		—		—
Weighted average price per Bbl	$	23.19	$	—	$	—	$	—	$	—

(a)The fixed price ethane swap is priced at OPIS Mont Belvieu Purity Ethane.

(b)The fixed price propane swap is priced at OPIS Mont Belvieu Non-TET Propane.

The unrealized and realized gain (loss) impact of our commodity derivative instruments appears in the table below and is reflected in net gain (loss) on commodity derivatives in the consolidated statements of income.

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2021		2020		2021		2020
Unrealized gain (loss) on derivative instruments, net	$	27	$	(36)	$	(130)	$	39
Realized gain (loss) on derivative instruments, net(a)	$	(106)	$	35	$	(268)	$	92

(a)During the third quarter and first nine months of 2021, net cash paid for settled derivative positions was $108 million and $203 million, respectively. During the third quarter and first nine months of 2020, net cash settled derivative positions was $15 million paid and $76 million received, respectively.

Interest Rate Swaps

During 2020, we entered into forward starting interest rate swaps to hedge the variations in cash flows related to fluctuations in the London Interbank Offered Rate (“LIBOR”) benchmark interest rate related to forecasted interest payments of a future debt issuance in 2022. Each respective derivative contract can be tied to an anticipated underlying dollar notional amount. During the third quarter of 2020, we de-designated these forward starting interest rate swaps previously designated as cash flow hedges. In the first quarter of 2021, the net deferred loss of $2 million in accumulated other comprehensive income related to these de-designated forward starting interest rate swaps was reclassified from accumulated other comprehensive income into earnings as an adjustment to net interest, as we fully redeemed the remainder of our outstanding 2022 notes in April 2021. We recorded a $5 million mark-to-market gain and a $24 million mark-to-market gain within net interest to reflect the change in value of these interest rate swaps during the three and nine months ended September 30, 2021, respectively.

During 2020, we entered into forward starting interest rate swaps with a notional amount of $350 million to hedge variations in cash flows arising from fluctuations in the LIBOR benchmark interest rate related to forecasted interest payments of a future debt issuance in 2025. The expected proceeds of the future debt issuance were intended to refinance the $900 million 3.85% Senior Notes due 2025 (“2025 Notes”). During the second quarter of 2021, we de-designated these forward starting interest rate swaps previously designated as cash flow hedges because we no longer planned to refinance the 2025 Notes. In the second quarter of 2021, we reclassified the $31 million cumulative gain related to these hedges from accumulated other comprehensive income into earnings as an adjustment to net interest. In September 2021, we fully redeemed these 2025 Notes. See Note 16 for further details. We recorded a $3 million mark-to-market gain and a $34 million mark-to-market gain within net interest to reflect the change in value of these interest rate swaps during the three and nine months ended September 30, 2021.

In addition, during the second quarter of 2021, we de-designated $25 million of the $320 million Houston office cash flow hedges (discussed further in the Derivatives Designated as Cash Flow Hedges section below), as the construction cost budget estimate was reduced. The $1 million loss of these de-designated cash flow hedges as of June 30, 2021 was reclassified from accumulated other comprehensive income into earnings as an adjustment to net interest. The mark-to-market activity within net interest to reflect the change in value of these interest rate swaps during the three and nine months ended September 30, 2021 was immaterial.

The following table presents, by maturity date, information about our de-designated forward starting interest rate swap agreements, including the rate. We have the discretion to liquidate the positions should we choose.

	September 30, 2021				December 31, 2020
Maturity Date	Aggregate Notional Amount (in millions)		Weighted Average, LIBOR		Aggregate Notional Amount (in millions)		Weighted Average, LIBOR
November 1, 2022	$	500	0.99	%	$	500	0.99	%
June 1, 2025	$	350	0.95	%	N/A		N/A
September 9, 2026	$	25	1.45	%	N/A		N/A

Derivatives Designated as Cash Flow Hedges

During 2019, we entered into forward starting interest rate swaps with a total notional amount of $320 million to hedge variations in cash flows related to the 1-month LIBOR component of future lease payments of our future Houston office. Although lease commencement began in September 2021, our first cash lease payment will be February 2022 and the first settlement date for the interest rate swap will be in January 2022. During the second quarter of 2021, we de-designated $25 million of these hedges as the construction cost budget estimate associated with the project was reduced. The last swap will mature in September 2026. As of September 30, 2021, we expect to reclassify $3 million from accumulated other comprehensive income into the income statement over the next twelve months. See Note 12 for further details regarding the lease of the new Houston office.

The following table presents, by maturity date, information about our interest rate swap agreements, including the weighted average LIBOR-based, fixed rate.

	September 30, 2021				December 31, 2020
Maturity Date	Aggregate Notional Amount (in millions)		Weighted Average, LIBOR		Aggregate Notional Amount (in millions)		Weighted Average, LIBOR
June 1, 2025	N/A		N/A		$	350	0.95	%
September 9, 2026	$	295	1.52	%	$	320	1.51	%

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Fair Value Measurements

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Fair Values – Recurring

The following tables present assets and liabilities accounted for at fair value on a recurring basis as of September 30, 2021 and December 31, 2020 by hierarchy level.

	September 30, 2021
(In millions)	Level 1		Level 2		Level 3		Total
Derivative instruments, assets
Interest rate - not designated as cash flow hedges	$	—	$	69	$	—	$	69
Derivative instruments, assets	$	—	$	69	$	—	$	69
Derivative instruments, liabilities
Commodity(a)	$	(32)	$	(121)	$	—	$	(153)
Interest rate - designated as cash flow hedges	—		(8)		—		(8)
Derivative instruments, liabilities	$	(32)	$	(129)	$	—	$	(161)
Total	$	(32)	$	(60)	$	—	$	(92)

	December 31, 2020
(In millions)	Level 1		Level 2		Level 3		Total
Derivative instruments, assets
Interest rate - not designated as cash flow hedges	$	—	$	10	$	—	$	10
Interest rate - designated as cash flow hedges	—		19		—		19
Derivative instruments, assets	$	—	$	29	$	—	$	29
Derivative instruments, liabilities
Commodity(a)	$	—	$	(23)	$	—	$	(23)
Interest rate - designated as cash flow hedges	—		(16)		—		(16)
Derivative instruments, liabilities	$	—	$	(39)	$	—	$	(39)
Total	$	—	$	(10)	$	—	$	(10)

(a)Commodity derivative instruments are recorded on a net basis in our consolidated balance sheet. See Note 14.

Commodity derivatives include three-way collars, two-way collars, fixed price swaps, basis swaps and NYMEX roll basis swaps. These instruments are measured at fair value using either a Black-Scholes or a modified Black-Scholes Model. For

swaps, inputs to the models include only commodity prices and interest rates and are categorized as Level 1 because all assumptions and inputs are observable in active markets throughout the term of the instruments. For three-way collars and two-way collars, inputs to the models include commodity prices and implied volatility and are categorized as Level 2 because predominantly all assumptions and inputs are observable in active markets throughout the term of the instruments.

The forward starting interest rate swaps are measured at fair value with a market approach using actionable broker quotes, which are Level 2 inputs. See Note 14 for detail on the forward starting interest rate swaps.

Fair Value Estimates – Goodwill

See Note 13 for detail information relating to goodwill.

Fair Values – Nonrecurring

See Note 10 for detail on our fair values related to impairments.

Fair Values – Financial Instruments

Our current assets and liabilities include financial instruments, the most significant of which are receivables, the current portion of our long-term debt and payables. We believe the carrying values of our receivables and payables approximate fair value. Our fair value assessment incorporates a variety of considerations, including (1) the short-term duration of the instruments, (2) our credit rating and (3) our historical incurrence of and expected future insignificant bad debt expense, which includes an evaluation of counterparty credit risk.

The following table summarizes financial instruments, excluding receivables, payables and derivative financial instruments, and their reported fair values by individual balance sheet line item at September 30, 2021 and December 31, 2020.

	September 30, 2021				December 31, 2020
(In millions)	Fair Value		Carrying Amount		Fair Value		Carrying Amount
Financial assets
Current assets	$	13	$	12	$	4	$	4
Other noncurrent assets	12		27		24		37
Total financial assets	$	25	$	39	$	28	$	41
Financial liabilities
Current liabilities	$	95	$	128	$	72	$	103
Long-term debt, including current portion(a)	4,729		4,033		6,077		5,431
Deferred credits and other liabilities	51		50		82		76
Total financial liabilities	$	4,875	$	4,211	$	6,231	$	5,610

(a)Excludes debt issuance costs.

Fair values of our financial assets included in other noncurrent assets, and of our financial liabilities included in other current liabilities and deferred credits and other liabilities, are measured using an income approach and most inputs are internally generated, which results in a Level 3 classification. Estimated future cash flows are discounted using a rate deemed appropriate to obtain the fair value.

All of our long-term debt instruments are publicly traded. A market approach, based upon quotes from major financial institutions, which are Level 2 inputs, is used to measure the fair value of our debt.

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Debt

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Debt

Debt

Revolving Credit Facility

On June 21, 2021, we executed the sixth amendment to our unsecured revolving credit facility (“Credit Facility”). The primary changes resulting from this amendment are (i) increasing the size of the Credit Facility from $3.0 billion to $3.1 billion, (ii) extending the maturity of the commitments of certain consenting lenders from May 28, 2023 to June 21, 2024 (with the remaining commitment of a single non-consenting lender to mature on May 28, 2023, at which time the size of the Credit Facility will be reduced to $3.0 billion) and (iii) including certain other provisions and revisions, including provisions to

provide for the eventual replacement of LIBOR as a benchmark interest rate. As of September 30, 2021, we had no borrowings against our Credit Facility.

The Credit Facility includes a covenant requiring our total debt to total capitalization ratio not to exceed 65% as of the last day of each fiscal quarter. In the event of a default, the lenders holding more than half of the commitments may terminate the commitments under the Credit Facility and require the immediate repayment of all outstanding borrowings and the cash collateralization of all outstanding letters of credit under the Credit Facility. As of September 30, 2021, we were in compliance with this covenant with a ratio of 20%.

Debt Redemption

On March 30, 2021, we sent an irrevocable notice of redemption to the trustee to fully redeem our outstanding $500 million 2.8% Senior Notes due 2022 (“2022 Notes”). The 2022 Notes were redeemed on April 29, 2021 and as a result of the settlement, we incurred $19 million in costs related to a make-whole provision premium and the write off of unamortized discount and issuance costs.

On August 4, 2021, we sent an irrevocable notice of redemption to the trustee to fully redeem our outstanding $900 million 3.85% Senior Notes due 2025 (“2025 Notes”). The 2025 Notes were redeemed on September 7, 2021 and as a result of the redemption, we incurred $102 million in costs related to the make-whole provision premium and the write off of unamortized discount and issuance costs.

Long-term debt

At September 30, 2021, we had $4.0 billion of total long-term debt outstanding. We currently intend to retire our outstanding long-term debt as it matures. Refer to our 2020 Annual Report on Form 10-K for a listing of our long-term debt maturities.

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Stockholders' Equity	9 Months Ended
	Sep. 30, 2021
Equity [Abstract]
Stockholders' Equity	Stockholders’ EquityNo share repurchases were made under our share repurchases program during the nine months ended September 30, 2021. We did repurchase $10 million of shares during the nine months ended September 30, 2021 related to our tax withholding obligation associated with the vesting of employee restricted stock awards. The total remaining share repurchase authorization was $1.3 billion at September 30, 2021. Purchases under the program are made at our discretion and may be in either open market transactions, including block purchases, or in privately negotiated transactions using cash on hand, cash generated from operations, or proceeds from potential asset sales. This program may be changed based upon our financial condition or changes in market conditions and is subject to termination prior to completion. Subsequent to the quarter, we resumed our share repurchase program and repurchased approximately $200 million of shares of our common stock through November 3, 2021. Effective November 3, 2021, our Board of Directors increased our remaining share repurchase program authorization from $1.1 billion to $2.5 billion.

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Incentive Based Compensation

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

Incentive Based Compensation

Incentive Based Compensation

Stock options, restricted stock and restricted stock units

The following table presents a summary of activity for the first nine months of 2021: 

	Stock Options			Restricted Stock & Units
	Number of Shares	Weighted Average Exercise Price		Number of Shares & Units	Weighted Average Grant Date Fair Value
Outstanding at December 31, 2020	6,014,255	$	21.00	7,851,754	$	11.72
Granted	—	$	—	2,306,479	$	11.21
Exercised/Vested	(384,889)	$	7.34	(2,992,724)	$	12.78
Canceled(a)	(1,137,109)	$	23.10	(1,037,911)	$	11.78
Outstanding at September 30, 2021	4,492,257	$	21.64	6,127,598	$	11.00

(a)Included in canceled are forfeitures related to workforce reductions.

Stock-based performance unit awards

During the first nine months of 2021, we granted 307,473 stock-based performance units to eligible officers, which are settled in shares. The grant date fair value per unit was $18.07, as calculated using a Monte Carlo valuation model. At the grant date, each unit represents the value of one share of our common stock. These units are settled in shares, and the number of shares of our common stock to be paid is based on the vesting percentage, which can be from zero to 200% based on performance achieved during the performance period and as determined by the Compensation Committee of the Board of Directors (“Compensation Committee”). The performance goals are tied to our total shareholder return (“TSR”) as compared to TSR for a group including peer companies, the S&P Energy Index and the S&P 500 Index, which is determined by the Compensation Committee. Also, dividend equivalents accrue during the performance period and would be paid in cash following the end of the performance period based on the amount of dividends credited on shares of our common stock over the performance period multiplied by the number of units that vest.

During the first nine months of 2021, we introduced a new type of stock-based performance unit award under the Marathon Oil Corporation 2019 Incentive Compensation Plan and granted 307,473 units to eligible officers, which are settled in cash. At the grant date for these new stock-based performance units, each unit represents the value of one share of our common stock. The benefit amount to be paid is based on the product of (i) the number of units granted, (ii) the vesting percentage, and (iii) the average daily closing price of our common stock during the final 30 calendar days ending on the last trading day of the performance period, subject to the banking feature described below. The vesting percentage can range from zero to 200%, which is based on performance achieved over a two-year performance period. The performance metric is a predetermined amount of cumulative free cash flow, as defined by the award agreement, generated by the Company over the performance period. The units have a banking feature whereby the stock price valuation and vesting percentage are fixed at no less than 50%, and then again at 100%, if achieved during the performance period. Once those milestones are reached, the vesting percentage will not fall below those banked percentage amounts even if cumulative free cash flow subsequently declines during the performance period, subject to the Compensation Committee’s discretion as described below. The third quarter fair value per unit was $27.52, as calculated by multiplying the estimated vesting percentage by our common stock’s closing stock price on September 30, 2021. Also, dividend equivalents accrue during the performance period and would be paid in cash following the end of the performance period based on the amount of dividends credited on shares of our common stock over the performance period multiplied by the number of units that vest. As set forth in the award agreement terms, the Compensation Committee retains discretion to reduce the vesting percentage and any bank values and determine free cash flow achievement for these awards.

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Defined Benefit Postretirement Plans

9 Months Ended

Sep. 30, 2021

Retirement Benefits [Abstract]

Defined Benefit Postretirement Plans

Defined Benefit Postretirement Plans

The following summarizes the components of net periodic benefit costs (credits):

	Three Months Ended September 30,
	Pension Benefits				Other Benefits
(In millions)	2021		2020		2021		2020
Service cost	$	4	$	4	$	—	$	—
Interest cost	2		2		—		1
Expected return on plan assets	(2)		(2)		—		—
Amortization:
– prior service credit	(1)		(1)		(4)		(4)
– actuarial loss	1		2		1		—
Net settlement loss(a)	3		9		—		—
Net periodic benefit costs (credits)(b)	$	7	$	14	$	(3)	$	(3)

	Nine Months Ended September 30,
	Pension Benefits				Other Benefits
(In millions)	2021		2020		2021		2020
Service cost	$	12	$	14	$	—	$	—
Interest cost	6		7		1		2
Expected return on plan assets	(6)		(7)		—		—
Amortization:
– prior service credit	(4)		(5)		(12)		(13)
– actuarial loss	4		7		2		1
Net settlement loss(a)	8		25		—		—
Net curtailment gain(c)	—		(3)		—		(14)
Net periodic benefit costs (credits)(b)	$	20	$	38	$	(9)	$	(24)

(a)Settlements are recognized as they occur, once it is probable that lump sum payments from a plan for a given year will exceed the plan’s total service and interest cost for that year.

(b)Net periodic benefit costs (credits) reflects a calculated market-related value of plan assets which recognizes changes in fair value over three years.

(c)Related to workforce reductions, which reduced the future expected years of service for employees participating in the plans..

    During the first nine months of 2021, we made contributions of $20 million to our funded pension plan. During the first nine months of 2021, we also made payments of $9 million and $7 million related to unfunded pension plans and other postretirement benefit plans. We expect to contribute an additional $2 million in contributions to our funded pension plan this year.

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Reclassifications Out of Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

Reclassifications Out of Accumulated Other Comprehensive Income (Loss)

Reclassifications Out of Accumulated Other Comprehensive Income (Loss)

The following table presents a summary of amounts reclassified from accumulated other comprehensive income (loss):

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2021		2020		2021		2020		Income Statement Line
Postretirement and postemployment plans
Amortization of prior service credit	$	5	$	5	$	16	$	18	Other net periodic benefit costs
Amortization of actuarial loss	(2)		(2)		(6)		(8)		Other net periodic benefit costs
Net settlement loss	(3)		(9)		(8)		(25)		Other net periodic benefit costs
Net curtailment gain	—		—		—		17		Other net periodic benefit costs
Interest rate swaps
Reclassification of de-designated forward interest rate swaps	—		—		(28)		—		Net interest and other
Total reclassifications of (income) expense, net of tax (a)	$	—	$	(6)	$	(26)	$	2	Net income (loss)

(a)During 2021 and 2020 we had a full valuation allowance on net federal deferred tax assets in the U.S. and as such, there is no tax impact to our postretirement and postemployment plans.

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Supplemental Cash Flow Information

9 Months Ended

Sep. 30, 2021

Supplemental Cash Flow Elements [Abstract]

Supplemental Cash Flow Information

Supplemental Cash Flow Information

	Nine Months Ended September 30,
(In millions)	2021		2020
Included in operating activities:
Interest paid, net of amounts capitalized	$	185	$	175
Income taxes paid to (received from) taxing authorities, net of refunds (a)	$	8	$	(50)
Noncash investing activities:
Increase (decrease) in asset retirement costs	$	49	$	(5)

(a)The nine months ended September 30, 2021 and 2020 includes $1 million and $94 million, respectively, related to tax refunds.

    Other noncash investing activities include accrued capital expenditures for the nine months ended September 30, 2021 and 2020 of $104 million and $81 million, respectively.

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Equity Method Investments

9 Months Ended

Sep. 30, 2021

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments

Equity Method Investments

During the periods ended September 30, 2021 and December 31, 2020 our equity method investees were considered related parties. Our investment in our equity method investees are summarized in the following table:

(In millions)	Ownership as of September 30, 2021	September 30, 2021		December 31, 2020
EGHoldings (a)	60%	$	181	$	113
Alba Plant LLC (b)	52%	166		168
AMPCO (c)	45%	142		166
Total		$	489	$	447

(a)EGHoldings is engaged in LNG production activity.

(b)Alba Plant LLC processes LPG.

(c)AMPCO is engaged in methanol production activity.

Summarized financial information for equity method investees is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2021		2020		2021		2020
Income data:
Revenues and other income	$	325	$	140	$	806	$	423
Income (loss) from operations	188		19		395		(21)
Net income (loss)	$	155	$	12	$	312	$	(27)

Revenues from related parties were $8 million and $24 million for the three and nine months ended September 30, 2021, respectively, and $9 million and $29 million for the three and nine months ended 2020, respectively, with the majority related to EGHoldings in all periods.

Current receivables from related parties at September 30, 2021 and December 31, 2020 were $18 million and $24 million, respectively, with the majority related to EGHoldings in both periods. Payables to related parties at September 30, 2021 were $6 million, with the majority related to EGHoldings and $13 million at December 31, 2020, with the majority related to Alba Plant LLC.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

In the second quarter of 2019, Marathon E.G. Production Limited (“MEGPL”), a consolidated and wholly owned subsidiary, signed a series of agreements to process third-party Alen Unit gas through existing infrastructure located in Punta Europa, E.G. Our equity method investee, Alba Plant LLC, is also a party to some of the agreements. These agreements require (subject to certain limitations) MEGPL to indemnify the owners of the Alen Unit against injury to Alba Plant LLC’s personnel and damage to or loss of Alba Plant LLC’s automobiles, as well as third party claims caused by Alba Plant LLC and certain environmental liabilities arising from certain hydrocarbons in the custody of Alba Plant LLC. At this time, we cannot reasonably estimate this obligation as we do not have any history of prior indemnification claims or environmental discharge or contamination. Therefore, we have not recorded a liability with respect to these indemnities since the amount of potential future payments under these indemnification clauses is not determinable.

The agreements to process the third-party Alen Unit gas required the execution of third-party guarantees by Marathon Oil Corporation in favor of the Alen Unit’s owners. Two separate guarantees were executed during the second quarter of 2020; one for a maximum of approximately $91 million pertaining to the payment obligations of Equatorial Guinea LNG Operations, S.A. and another for a maximum of $25 million pertaining to the payment obligations of Alba Plant LLC. Payment by us would be required if any of those entities fails to honor its payment obligations pursuant to the relevant agreements with the owners of the Alen Unit. Certain owners of the Alen Unit, or their affiliates, are also direct or indirect shareholders in Equatorial Guinea LNG Operations, S.A. and Alba Plant LLC. Each guarantee expires no later than December 31, 2027. We measured these guarantees at fair value using the net present value of premium payments we expect to receive from our investees. Our liability for these guarantees was approximately $4 million as of September 30, 2021, with a corresponding receivable from our investees. Each of Equatorial Guinea LNG Operations, S.A. and Equatorial Guinea LNG Train 1, S.A. provided us with a pledge of its receivables as recourse against any payments we may make under the guaranty of Equatorial Guinea LNG Operations, S.A.’s performance.

Various groups, including the State of North Dakota and three Indian tribes represented by the Bureau of Indian Affairs, have been involved in a dispute regarding the ownership of certain lands underlying the Missouri River and Little Missouri River. As a result, as of September 30, 2021, we have a $126 million current liability in suspended royalty and working interest revenue, including interest, of which $115 million was included within accounts payable and $11 million related to accrued interest and was included within other current liabilities on our consolidated balance sheet. Additionally, we have a long-term receivable of $24 million for capital and expenses.

In January 2020, we received a Notice of Violation from the EPA related to the Clean Air Act. The enforcement action will likely result in monetary sanctions yet-to-be specified and corrective actions, which may increase our development costs, operating costs or both. Given the uncertainty in matters such as these, we are unable to predict the ultimate outcome of this matter at this time. However, we believe that any penalties, mitigation costs or corrective actions that may result from this matter will not have a material adverse effect on our consolidated financial position, results of operations or cash flows.

We are a defendant in a number of legal and administrative proceedings arising in the ordinary course of business including, but not limited to, royalty claims, contract claims, tax disputes and environmental claims. While the ultimate

outcome and impact to us cannot be predicted with certainty, we believe the resolution of these proceedings will not have a material adverse effect on our consolidated financial position, results of operations or cash flows. In addition, we may also be subject to retained liabilities with respect to certain divested assets by operation of law. For example, recent historical declines in commodity prices created an environment where there is an increased risk that owners and/or operators of assets purchased from us may no longer be able to satisfy plugging or abandonment obligations that attach to those assets. In that event, due to operation of law, we may be required to assume plugging or abandonment obligations for those assets. Although we have established reserves for such liabilities, we could be required to accrue additional amounts in the future and these amounts could be material. For instance, as the result of the declaration of bankruptcy by a third party that is the indirect successor in title to certain offshore assets that we previously divested, in the first nine months of 2021 we increased our existing reserve to $37 million related to the anticipated cost to decommission certain wells, pipelines and production facilities. We no longer own these assets nor are they related to our current operations.

Marathon Oil has been named in various lawsuits alleging royalty underpayments in our domestic operations, and plaintiffs in some of these lawsuits are seeking class certification. We intend to vigorously defend ourselves against such claims. Although we have accrued for potential liabilities associated with these lawsuits, those accruals are based on currently available information and involve elements of judgment and significant uncertainties. Accordingly, actual losses may exceed our accruals or we could be required to accrue additional amounts in the future and these amounts could be material.

We have incurred and will continue to incur capital, operating and maintenance, and remediation expenditures as a result of environmental laws and regulations. If these expenditures, as with all costs, are not ultimately offset by the prices we receive for our products and services, our operating results will be adversely affected. We believe that substantially all of our competitors must comply with similar environmental laws and regulations. However, the specific impact on each competitor may vary depending on a number of factors, including the age and location of its operating facilities, marketing areas and production processes. These laws generally provide for control of pollutants released into the environment and require responsible parties to undertake remediation of hazardous waste disposal sites. Penalties may be imposed for noncompliance.

At September 30, 2021, accrued liabilities for remediation relating to environmental laws and regulations were not material. It is not presently possible to estimate the ultimate amount of all remediation cost that might be incurred or the penalties that may be imposed.

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Basis of Presentation (Policies)

9 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

These consolidated financial statements are unaudited; however, in the opinion of management, these statements reflect all adjustments necessary for a fair statement of the results for the periods reported. All such adjustments are of a normal recurring nature unless disclosed otherwise. These consolidated financial statements, including notes, have been prepared in accordance with the applicable rules of the SEC and do not include all of the information and disclosures required by U.S. GAAP for complete financial statements.

These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2020 Annual Report on Form 10-K. The results of operations for the third quarter and first nine months of 2021 are not necessarily indicative of the results to be expected for the full year.

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Income (loss) and Dividends per Common Share (Tables)

9 Months Ended

Sep. 30, 2021

Earnings Per Share [Abstract]

Schedule of Income (Loss) Per Share, Basic and Diluted

The per share calculations below exclude 4 million of stock options for each of the three and nine months ended September 30, 2021 and 6 million of stock options for each of the three and nine months ended September 30, 2020 that were antidilutive.

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions, except per share data)	2021		2020		2021		2020
Net income (loss)	$	184	$	(317)	$	297	$	(1,113)
Weighted average common shares outstanding	789		790		791		792
Effect of dilutive securities	—		—		—		—
Weighted average common shares, diluted	789		790		791		792
Net income (loss) per share:
Basic	$	0.23	$	(0.40)	$	0.38	$	(1.41)
Diluted	$	0.23	$	(0.40)	$	0.38	$	(1.41)
Dividends per share	$	0.05	$	—	$	0.12	$	0.05

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Revenues (Tables)

9 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following tables present our revenues from contracts with customers disaggregated by product type and geographic areas for the three and nine months ended September 30:

United States

	Three Months Ended September 30, 2021
(In millions)	Eagle Ford		Bakken		Oklahoma		Northern Delaware		Other U.S.		Total
Crude oil and condensate	$	391	$	425	$	74	$	75	$	19	$	984
Natural gas liquids	50		63		53		12		5		183
Natural gas	38		29		62		12		3		144
Other	2		—		—		—		62		64
Revenues from contracts with customers	$	481	$	517	$	189	$	99	$	89	$	1,375

	Three Months Ended September 30, 2020
(In millions)	Eagle Ford		Bakken		Oklahoma		Northern Delaware		Other U.S.		Total
Crude oil and condensate	$	190	$	230	$	65	$	53	$	14	$	552
Natural gas liquids	22		15		28		7		1		73
Natural gas	18		9		33		6		3		69
Other	1		—		—		—		27		28
Revenues from contracts with customers	$	231	$	254	$	126	$	66	$	45	$	722

	Nine Months Ended September 30, 2021
(In millions)	Eagle Ford		Bakken		Oklahoma		Northern Delaware		Other U.S.		Total
Crude oil and condensate	$	1,003	$	1,208	$	206	$	229	$	65	$	2,711
Natural gas liquids	109		152		127		32		10		430
Natural gas	114		71		212		42		11		450
Other	6		—		—		—		99		105
Revenues from contracts with customers	$	1,232	$	1,431	$	545	$	303	$	185	$	3,696

	Nine Months Ended September 30, 2020
(In millions)	Eagle Ford		Bakken		Oklahoma		Northern Delaware		Other U.S.		Total
Crude oil and condensate	$	639	$	707	$	181	$	160	$	54	$	1,741
Natural gas liquids	53		28		62		14		4		161
Natural gas	62		22		86		13		7		190
Other	4		—		—		—		58		62
Revenues from contracts with customers	$	758	$	757	$	329	$	187	$	123	$	2,154

International (E.G.)

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2021		2020		2021		2020
Crude oil and condensate	$	56	$	31	$	151	$	96
Natural gas liquids	—		1		2		3
Natural gas	6		7		18		22
Other	1		—		2		—
Revenues from contracts with customers	$	63	$	39	$	173	$	121

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Segment Information (Tables)

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

	Three Months Ended September 30, 2021
(In millions)	U.S.		Int’l		Not Allocated to Segments			Total
Revenues from contracts with customers	$	1,375	$	63	$	—		$	1,438
Net gain (loss) on commodity derivatives	(106)		—		27		(b)	(79)
Income (loss) from equity method investments	—		86		—			86
Net gain on disposal of assets	—		—		7			7
Other income	—		—		1			1
Less costs and expenses:
Production	119		12		—			131
Shipping, handling and other operating	209		7		3			219
Exploration	15		—		48		(c)	63
Depreciation, depletion and amortization	499		17		6			522
Impairments	—		—		13		(d)	13
Taxes other than income	88		—		—			88
General and administrative	29		3		38			70
Net interest and other	—		—		57		(e)	57
Other net periodic benefit costs	—		—		—			—
Loss on early extinguishment of debt	—		—		102		(f)	102
Income tax provision (benefit)	5		17		(18)			4
Segment income (loss)	$	305	$	93	$	(214)		$	184
Total assets	$	15,528	$	1,071	$	562		$	17,161
Capital expenditures(a)	$	303	$	2	$	3		$	308

(a)Includes accruals.

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

(c)Includes unproved property impairments of $20 million for Louisiana exploration leases and $16 million related to the disposition of a Permian lease. Also includes $12 million of dry well costs associated with drilled and uncompleted wells, primarily in Permian (See Note 9).

(d)Includes impairments of $5 million for proved properties in Permian (See Note 10) and $8 million associated with decommissioning costs for non-producing long-lived assets in GOM (See Note 10, Note 11, and Note 23).

(e)Includes a $5 million gain on 2022 interest rate swaps and a $3 million gain on 2025 interest rate swaps (See Note 14).

(f)Represents costs related to a make-whole provision premium and the write off of issuance costs related to the redemption of the 2025 Notes in September 2021 (See Note 16).

	Three Months Ended September 30, 2020
(In millions)	U.S.		Int’l		Not Allocated to Segments			Total
Revenues from contracts with customers	$	722	$	39	$	—		$	761
Net gain (loss) on commodity derivatives	35		—		(36)		(b)	(1)
Income (loss) from equity method investments	—		8		(18)			(10)
Net gain on disposal of assets	—		—		1			1
Other income	1		1		1			3
Less costs and expenses:
Production	118		11		—			129
Shipping, handling and other operating	154		1		28			183
Exploration	21		—		6			27
Depreciation, depletion and amortization	530		19		5			554
Impairments	—		—		1			1
Taxes other than income	48		—		1			49
General and administrative	25		3		25			53
Net interest and other	—		—		62			62
Other net periodic benefit costs	—		—		6		(c)	6
Income tax provision (benefit)	(3)		6		4			7
Segment income (loss)	$	(135)	$	8	$	(190)		$	(317)
Total assets	$	16,396	$	1,104	$	1,163		$	18,663
Capital expenditures(a)	$	176	$	—	$	1		$	177

(a)Includes accruals.

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

(c)Includes pension settlement loss of $9 million (See Note 19).

	Nine Months Ended September 30, 2021
(In millions)	U.S.		Int’l		Not Allocated to Segments			Total
Revenues from contracts with customers	$	3,696	$	173	$	—		$	3,869
Net loss on commodity derivatives	(268)		—		(130)		(b)	(398)
Income (loss) from equity method investments	—		179		—			179
Net gain on disposal of assets	—		—		8			8
Other income	4		3		2			9
Less costs and expenses:
Production	343		35		—			378
Shipping, handling and other operating	506		13		19			538
Exploration	54		—		55		(c)	109
Depreciation, depletion and amortization	1,477		54		19			1,550
Impairments	—		—		60		(d)	60
Taxes other than income	238		—		(2)			236
General and administrative	79		9		139		(e)	227
Net interest and other	—		—		129		(f)	129
Other net periodic benefit credit	—		—		(2)			(2)
Loss on early extinguishment of debt	—		—		121		(g)	121
Income tax provision (benefit)	11		33		(20)			24
Segment income (loss)	$	724	$	211	$	(638)		$	297
Total assets	$	15,528	$	1,071	$	562		$	17,161
Capital expenditures(a)	$	770	$	4	$	7		$	781

(a)Includes accruals.

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

(c)Includes unproved property impairments of $20 million for Louisiana exploration leases and $16 million related to the disposition of a lease in Permian. Also includes $12 million of dry well costs associated with drilled and uncompleted wells, primarily in Permian (See Note 9).

(d)Includes impairments of $24 million for central facilities in Eagle Ford (See Note 10), $5 million for proved properties in Permian (See Note 10), and $30 million associated with decommissioning costs for non-producing long-lived assets in GOM (See Note 10, Note 11, and Note 23).

(e)Includes $13 million associated with the termination of an aircraft lease agreement and $12 million arising from severance expenses associated with a workforce reduction.

(f)Includes a $24 million gain on 2022 interest rate swaps and a $34 million gain on 2025 interest rate swaps (See Note 14).

(g)Represents costs related to a make-whole provision premium and the write off of unamortized discount and issuance costs in regards to the redemption of the 2022 Notes in April 2021 and 2025 Notes in September 2021 (See Note 16).

	Nine Months Ended September 30, 2020
(In millions)	U.S.		Int’l		Not Allocated to Segments			Total
Revenue from contracts with customers	$	2,154	$	121	$	—		$	2,275
Net gain on commodity derivatives	92		—		39		(b)	131
Loss from equity method investments	—		(4)		(170)		(c)	(174)
Net gain on disposal of assets	—		—		8			8
Other income	8		5		3			16
Less costs and expenses:
Production	375		43		—			418
Shipping, handling and other operating	385		5		42			432
Exploration	75		—		6			81
Depreciation, depletion and amortization	1,716		62		17			1,795
Impairments	—		—		98		(d)	98
Taxes other than income	144		—		1			145
General and administrative	89		10		118		(e)	217
Net interest and other	—		—		195			195
Other net periodic benefit credit	—		—		(1)		(f)	(1)
Income tax provision (benefit)	(10)		1		(2)			(11)
Segment income (loss)	$	(520)	$	1	$	(594)		$	(1,113)
Total assets	$	16,396	$	1,104	$	1,163		$	18,663
Capital expenditures(a)	$	874	$	—	$	10		$	884

(a)Includes accruals.

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

(c)Partial impairment of investment in equity method investee (See Note 22).

(d)Includes the full impairment of the International reporting unit goodwill of $95 million (See Note 13).

(e)Includes severance expenses associated with workforce reductions of $15 million.

(f)Includes pension settlement loss of $25 million and pension curtailment gain of $17 million (See Note 19).

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Income Taxes (Tables)

9 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Effective Income Tax Rate

For the three and nine months ended September 30, 2021 and 2020, our effective income tax rates were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Effective income tax rate	2	%	(2)	%	7	%	1	%

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Credit Losses (Tables)

9 Months Ended

Sep. 30, 2021

Credit Loss [Abstract]

Changes in Allowance For Doubtful Account Balance

Changes in the allowance for doubtful accounts balance were as follows:    

(In millions)	September 30, 2021		December 31, 2020
Beginning balance as of January 1	$	22	$	11
Cumulative-effect adjustment	—		12
Current period provision(a)	1		22
Current period write offs	(1)		(13)
Recoveries of amounts previously reserved	(3)		(10)
Ending balance	$	19	$	22

(a)As of December 31, 2020, the current period provision consisted of $10 million in joint interest receivables and $12 million in trade receivables.

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Inventories (Tables)

9 Months Ended

Sep. 30, 2021

Inventory Disclosure [Abstract]

Schedule of Inventory, Current

(In millions)	September 30, 2021		December 31, 2020
Crude oil and natural gas	$	13	$	10
Supplies and other items	64		66
Inventories	$	77	$	76

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Property, Plant and Equipment (Tables)

9 Months Ended

Sep. 30, 2021

Property, Plant and Equipment [Abstract]

Schedule of Property, Plant and Equipment

(In millions)	September 30, 2021		December 31, 2020
United States	$	14,317	$	15,156
International	364		414
Corporate	53		68
Net property, plant and equipment	$	14,734	$	15,638

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Impairments (Tables)

9 Months Ended

Sep. 30, 2021

Impairment Expense [Abstract]

Fair Value Measurements, Nonrecurring

The following table summarizes impairment charges of proved properties, goodwill and equity method investments and their corresponding fair values.

	Three Months Ended September 30,
	2021				2020
(In millions)	Fair Value		Impairment		Fair Value		Impairment
Long-lived assets held for use	$	—	$	5	$	—	$	1
Asset retirement costs of long-lived assets	—		8		—		—
Equity method investment	$	—	$	—	$	23	$	18

	Nine Months Ended September 30,
	2021				2020
(In millions)	Fair Value		Impairment		Fair Value		Impairment
Long-lived assets held for use	$	—	$	30	$	—	$	3
Asset retirement costs of long-lived assets	—		30		—		—
Goodwill	—		—		—		95
Equity method investment	$	—	$	—	$	119	$	170

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Asset Retirement Obligations (Tables)

9 Months Ended

Sep. 30, 2021

Asset Retirement Obligation Disclosure [Abstract]

Schedule of Changes in Asset Retirement Obligations

Asset retirement obligations primarily consist of estimated costs to remove, dismantle and restore land or seabed at the end of oil and gas production operations. Changes in asset retirement obligations were as follows:

	September 30,
(In millions)	2021		2020
Beginning balance as of January 1	$	254	$	255
Incurred liabilities, including acquisitions	9		3
Settled liabilities, including dispositions	(3)		(11)
Accretion expense (included in depreciation, depletion and amortization)	9		9
Revisions of estimates	40		(8)
Ending balance as of September 30, total	$	309	$	248
Ending balance as of September 30, short-term	$	23	$	12

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Leases (Tables)

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Supplemental Balance Sheet Information

Balance sheet information related to right-of-use (‘ROU’) assets and lease liabilities was as follows:

(In millions)	Balance Sheet Location:	September 30, 2021		December 31, 2020
ROU assets:
Operating leases	Other noncurrent assets	$	74	$	133
Finance leases	Other noncurrent assets	35		—
Total ROU assets		$	109	$	133
Lease liabilities:
Current liabilities
Operating leases	Other current liabilities	$	44	$	70
Finance leases	Other current liabilities	5		—
Noncurrent liabilities
Operating leases	Deferred credits and other liabilities	34		67
Finance leases	Deferred credits and other liabilities	30		—
Total Lease liabilities		$	113	$	137

Operating Lease, Undiscounted Cash Flows to be Received

The undiscounted cash flows to be received under this lease agreement are summarized below.

(In millions)	Operating Lease Future Cash Receipts
2021	$	2
2022	6
2023	6
2024	6
2025	6
Thereafter	56
Total undiscounted cash flows	$	82

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Derivatives (Tables)

9 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in the Consolidated Balance Sheets

The following tables present the gross fair values of derivative instruments and the reported net amounts along with where they appear on the consolidated balance sheets.

	September 30, 2021
(In millions)	Asset		Liability		Net Asset (Liability)		Balance Sheet Location
Not Designated as Hedges
Commodity	$	—	$	152	$	(152)	Other current liabilities
Commodity	—		1		(1)		Deferred credits and other liabilities
Interest Rate	70		—		70		Other noncurrent assets
Interest Rate	—		1		(1)		Deferred credits and other liabilities
Total Not Designated as Hedges	$	70	$	154	$	(84)
Cash Flow Hedges
Interest Rate	$	—	$	3	$	(3)	Other current liabilities
Interest Rate	—		5		(5)		Deferred credits and other liabilities
Total Designated Hedges	$	—	$	8	$	(8)
Total	$	70	$	162	$	(92)

	December 31, 2020
(In millions)	Asset		Liability		Net Asset (Liability)		Balance Sheet Location
Not Designated as Hedges
Commodity	$	3	$	1	$	2	Other current assets
Commodity	7		32		(25)		Other current liabilities
Interest Rate	10		—		10		Other noncurrent assets
Total Not Designated as Hedges	$	20	$	33	$	(13)
Cash Flow Hedges
Interest Rate	$	19	$	—	$	19	Other noncurrent assets
Interest Rate	—		16		(16)		Deferred credits and other liabilities
Total Designated Hedges	$	19	$	16	$	3
Total	$	39	$	49	$	(10)

The unrealized and realized gain (loss) impact of our commodity derivative instruments appears in the table below and is reflected in net gain (loss) on commodity derivatives in the consolidated statements of income.

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2021		2020		2021		2020
Unrealized gain (loss) on derivative instruments, net	$	27	$	(36)	$	(130)	$	39
Realized gain (loss) on derivative instruments, net(a)	$	(106)	$	35	$	(268)	$	92

(a)During the third quarter and first nine months of 2021, net cash paid for settled derivative positions was $108 million and $203 million, respectively. During the third quarter and first nine months of 2020, net cash settled derivative positions was $15 million paid and $76 million received, respectively.

Schedule of Notional Amounts of Outstanding Derivative Positions

The following table sets forth outstanding derivative contracts as of September 30, 2021, and the weighted average prices for those contracts:

	2021		2022
	Fourth Quarter		First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Crude Oil
NYMEX WTI Three-Way Collars
Volume (Bbls/day)	40,000		30,000		30,000		10,000		10,000
Weighted average price per Bbl:
Ceiling	$	78.05	$	89.12	$	89.12	$	88.44	$	88.44
Floor	$	50.00	$	50.00	$	50.00	$	50.00	$	50.00
Sold put	$	40.00	$	40.00	$	40.00	$	40.00	$	40.00
NYMEX WTI Two-Way Collars
Volume (Bbls/day)	40,000		—		—		—		—
Weighted average price per Bbl:
Ceiling	$	58.92	$	—	$	—	$	—	$	—
Floor	$	39.25	$	—	$	—	$	—	$	—
NYMEX Roll Basis Swaps
Volume (Bbls/day)	40,000		45,000		45,000		45,000		45,000
Weighted average price per Bbl	$	1.15	$	0.56	$	0.56	$	0.56	$	0.56
Natural Gas
Henry Hub (“HH”) Two-Way Collars
Volume (MMBtu/day)	200,000		—		—		—		—
Weighted average price per MMBtu:
Ceiling	$	3.05	$	—	$	—	$	—	$	—
Floor	$	2.50	$	—	$	—	$	—	$	—
HH Three-Way Collars
Volume (MMBtu/day)	—		50,000		—		—		—
Weighted average price per MMBtu:
Ceiling	$	—	$	5.14	$	—	$	—	$	—
Floor	$	—	$	3.60	$	—	$	—	$	—
Sold Put	$	—	$	2.60	$	—	$	—	$	—
HH Fixed Price Swaps
Volume (MMBtu/day)	50,000		—		—		—		—
Weighted average price per MMBtu	$	2.88	$	—	$	—	$	—	$	—
NGL
Fixed Price Ethane Swaps (a)
Volume (Bbls/day)	5,000		—		—		—		—
Weighted average price per Bbl	$	10.92	$	—	$	—	$	—	$	—
Fixed Price Propane Swaps (b)
Volume (Bbls/day)	5,000		—		—		—		—
Weighted average price per Bbl	$	23.19	$	—	$	—	$	—	$	—

(a)The fixed price ethane swap is priced at OPIS Mont Belvieu Purity Ethane.

(b)The fixed price propane swap is priced at OPIS Mont Belvieu Non-TET Propane.

Schedule of Interest Rate Swap Agreement

The following table presents, by maturity date, information about our de-designated forward starting interest rate swap agreements, including the rate. We have the discretion to liquidate the positions should we choose.

	September 30, 2021				December 31, 2020
Maturity Date	Aggregate Notional Amount (in millions)		Weighted Average, LIBOR		Aggregate Notional Amount (in millions)		Weighted Average, LIBOR
November 1, 2022	$	500	0.99	%	$	500	0.99	%
June 1, 2025	$	350	0.95	%	N/A		N/A
September 9, 2026	$	25	1.45	%	N/A		N/A

The following table presents, by maturity date, information about our interest rate swap agreements, including the weighted average LIBOR-based, fixed rate.

	September 30, 2021				December 31, 2020
Maturity Date	Aggregate Notional Amount (in millions)		Weighted Average, LIBOR		Aggregate Notional Amount (in millions)		Weighted Average, LIBOR
June 1, 2025	N/A		N/A		$	350	0.95	%
September 9, 2026	$	295	1.52	%	$	320	1.51	%

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables present assets and liabilities accounted for at fair value on a recurring basis as of September 30, 2021 and December 31, 2020 by hierarchy level.

	September 30, 2021
(In millions)	Level 1		Level 2		Level 3		Total
Derivative instruments, assets
Interest rate - not designated as cash flow hedges	$	—	$	69	$	—	$	69
Derivative instruments, assets	$	—	$	69	$	—	$	69
Derivative instruments, liabilities
Commodity(a)	$	(32)	$	(121)	$	—	$	(153)
Interest rate - designated as cash flow hedges	—		(8)		—		(8)
Derivative instruments, liabilities	$	(32)	$	(129)	$	—	$	(161)
Total	$	(32)	$	(60)	$	—	$	(92)

	December 31, 2020
(In millions)	Level 1		Level 2		Level 3		Total
Derivative instruments, assets
Interest rate - not designated as cash flow hedges	$	—	$	10	$	—	$	10
Interest rate - designated as cash flow hedges	—		19		—		19
Derivative instruments, assets	$	—	$	29	$	—	$	29
Derivative instruments, liabilities
Commodity(a)	$	—	$	(23)	$	—	$	(23)
Interest rate - designated as cash flow hedges	—		(16)		—		(16)
Derivative instruments, liabilities	$	—	$	(39)	$	—	$	(39)
Total	$	—	$	(10)	$	—	$	(10)

(a)Commodity derivative instruments are recorded on a net basis in our consolidated balance sheet. See Note 14.

Fair Value, by Balance Sheet Grouping

The following table summarizes financial instruments, excluding receivables, payables and derivative financial instruments, and their reported fair values by individual balance sheet line item at September 30, 2021 and December 31, 2020.

	September 30, 2021				December 31, 2020
(In millions)	Fair Value		Carrying Amount		Fair Value		Carrying Amount
Financial assets
Current assets	$	13	$	12	$	4	$	4
Other noncurrent assets	12		27		24		37
Total financial assets	$	25	$	39	$	28	$	41
Financial liabilities
Current liabilities	$	95	$	128	$	72	$	103
Long-term debt, including current portion(a)	4,729		4,033		6,077		5,431
Deferred credits and other liabilities	51		50		82		76
Total financial liabilities	$	4,875	$	4,211	$	6,231	$	5,610

(a)Excludes debt issuance costs.

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Incentive Based Compensation (Tables)

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

Schedule of Stock Options, Restricted Stock Awards and Restricted Stock Units Activity

The following table presents a summary of activity for the first nine months of 2021: 

	Stock Options			Restricted Stock & Units
	Number of Shares	Weighted Average Exercise Price		Number of Shares & Units	Weighted Average Grant Date Fair Value
Outstanding at December 31, 2020	6,014,255	$	21.00	7,851,754	$	11.72
Granted	—	$	—	2,306,479	$	11.21
Exercised/Vested	(384,889)	$	7.34	(2,992,724)	$	12.78
Canceled(a)	(1,137,109)	$	23.10	(1,037,911)	$	11.78
Outstanding at September 30, 2021	4,492,257	$	21.64	6,127,598	$	11.00

(a)Included in canceled are forfeitures related to workforce reductions.

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Defined Benefit Postretirement Plans (Tables)

9 Months Ended

Sep. 30, 2021

Retirement Benefits [Abstract]

Schedule of Net Periodic Benefit Cost

The following summarizes the components of net periodic benefit costs (credits):

	Three Months Ended September 30,
	Pension Benefits				Other Benefits
(In millions)	2021		2020		2021		2020
Service cost	$	4	$	4	$	—	$	—
Interest cost	2		2		—		1
Expected return on plan assets	(2)		(2)		—		—
Amortization:
– prior service credit	(1)		(1)		(4)		(4)
– actuarial loss	1		2		1		—
Net settlement loss(a)	3		9		—		—
Net periodic benefit costs (credits)(b)	$	7	$	14	$	(3)	$	(3)

	Nine Months Ended September 30,
	Pension Benefits				Other Benefits
(In millions)	2021		2020		2021		2020
Service cost	$	12	$	14	$	—	$	—
Interest cost	6		7		1		2
Expected return on plan assets	(6)		(7)		—		—
Amortization:
– prior service credit	(4)		(5)		(12)		(13)
– actuarial loss	4		7		2		1
Net settlement loss(a)	8		25		—		—
Net curtailment gain(c)	—		(3)		—		(14)
Net periodic benefit costs (credits)(b)	$	20	$	38	$	(9)	$	(24)

(a)Settlements are recognized as they occur, once it is probable that lump sum payments from a plan for a given year will exceed the plan’s total service and interest cost for that year.

(b)Net periodic benefit costs (credits) reflects a calculated market-related value of plan assets which recognizes changes in fair value over three years.

(c)Related to workforce reductions, which reduced the future expected years of service for employees participating in the plans..

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Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

Schedule of Amounts Reclassified out of Accumulated Other Comprehensive Income (Loss)

The following table presents a summary of amounts reclassified from accumulated other comprehensive income (loss):

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2021		2020		2021		2020		Income Statement Line
Postretirement and postemployment plans
Amortization of prior service credit	$	5	$	5	$	16	$	18	Other net periodic benefit costs
Amortization of actuarial loss	(2)		(2)		(6)		(8)		Other net periodic benefit costs
Net settlement loss	(3)		(9)		(8)		(25)		Other net periodic benefit costs
Net curtailment gain	—		—		—		17		Other net periodic benefit costs
Interest rate swaps
Reclassification of de-designated forward interest rate swaps	—		—		(28)		—		Net interest and other
Total reclassifications of (income) expense, net of tax (a)	$	—	$	(6)	$	(26)	$	2	Net income (loss)

(a)During 2021 and 2020 we had a full valuation allowance on net federal deferred tax assets in the U.S. and as such, there is no tax impact to our postretirement and postemployment plans.

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Supplemental Cash Flow Information (Tables)

9 Months Ended

Sep. 30, 2021

Supplemental Cash Flow Elements [Abstract]

Supplemental Cash Flow Information

	Nine Months Ended September 30,
(In millions)	2021		2020
Included in operating activities:
Interest paid, net of amounts capitalized	$	185	$	175
Income taxes paid to (received from) taxing authorities, net of refunds (a)	$	8	$	(50)
Noncash investing activities:
Increase (decrease) in asset retirement costs	$	49	$	(5)

(a)The nine months ended September 30, 2021 and 2020 includes $1 million and $94 million, respectively, related to tax refunds.

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Equity Method Investments (Tables)

9 Months Ended

Sep. 30, 2021

Equity Method Investments and Joint Ventures [Abstract]

Schedule of Equity Method Investments

During the periods ended September 30, 2021 and December 31, 2020 our equity method investees were considered related parties. Our investment in our equity method investees are summarized in the following table:

(In millions)	Ownership as of September 30, 2021	September 30, 2021		December 31, 2020
EGHoldings (a)	60%	$	181	$	113
Alba Plant LLC (b)	52%	166		168
AMPCO (c)	45%	142		166
Total		$	489	$	447

(a)EGHoldings is engaged in LNG production activity.

(b)Alba Plant LLC processes LPG.

(c)AMPCO is engaged in methanol production activity.

Summarized financial information for equity method investees is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2021		2020		2021		2020
Income data:
Revenues and other income	$	325	$	140	$	806	$	423
Income (loss) from operations	188		19		395		(21)
Net income (loss)	$	155	$	12	$	312	$	(27)

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Income (loss) and Dividends per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of earnings per share (in shares)	4			6			4	6
Net income (loss)	$ 184	$ 16	$ 97	$ (317)	$ (750)	$ (46)	$ 297	$ (1,113)
Weighted average common shares outstanding (in shares)	789			790			791	792
Effect of dilutive securities (in shares)	0			0			0	0
Weighted average common shares, diluted (in shares)	789			790			791	792
Net income (loss) per share:
Basic (in dollars per share)	$ 0.23			$ (0.40)			$ 0.38	$ (1.41)
Diluted (in dollars per share)	0.23			(0.40)			0.38	(1.41)
Dividends per share (in dollars per share)	$ 0.05	$ 0.04	$ 0.03	$ 0		$ 0.05	$ 0.12	$ 0.05

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Revenues - Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Receivables from contract with customer	$ 900	$ 572

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Revenues - Revenues from Contracts with Customers by Product Type and Geographic Areas (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	$ 1,438	$ 761	$ 3,869	$ 2,275
United States E&P
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	1,375	722	3,696	2,154
United States E&P | Eagle Ford
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	481	231	1,232	758
United States E&P | Bakken
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	517	254	1,431	757
United States E&P | Oklahoma
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	189	126	545	329
United States E&P | Northern Delaware
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	99	66	303	187
United States E&P | Other U.S.
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	89	45	185	123
United States E&P | Crude oil and condensate
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	984	552	2,711	1,741
United States E&P | Crude oil and condensate | Eagle Ford
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	391	190	1,003	639
United States E&P | Crude oil and condensate | Bakken
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	425	230	1,208	707
United States E&P | Crude oil and condensate | Oklahoma
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	74	65	206	181
United States E&P | Crude oil and condensate | Northern Delaware
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	75	53	229	160
United States E&P | Crude oil and condensate | Other U.S.
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	19	14	65	54
United States E&P | Natural gas liquids
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	183	73	430	161
United States E&P | Natural gas liquids | Eagle Ford
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	50	22	109	53
United States E&P | Natural gas liquids | Bakken
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	63	15	152	28
United States E&P | Natural gas liquids | Oklahoma
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	53	28	127	62
United States E&P | Natural gas liquids | Northern Delaware
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	12	7	32	14
United States E&P | Natural gas liquids | Other U.S.
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	5	1	10	4
United States E&P | Natural gas
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	144	69	450	190
United States E&P | Natural gas | Eagle Ford
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	38	18	114	62
United States E&P | Natural gas | Bakken
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	29	9	71	22
United States E&P | Natural gas | Oklahoma
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	62	33	212	86
United States E&P | Natural gas | Northern Delaware
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	12	6	42	13
United States E&P | Natural gas | Other U.S.
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	3	3	11	7
United States E&P | Other
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	64	28	105	62
United States E&P | Other | Eagle Ford
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	2	1	6	4
United States E&P | Other | Bakken
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
United States E&P | Other | Oklahoma
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
United States E&P | Other | Northern Delaware
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0	0
United States E&P | Other | Other U.S.
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	62	27	99	58
International E&P | International, Equatorial Guinea (E.G.)
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	63	39	173	121
International E&P | Crude oil and condensate | International, Equatorial Guinea (E.G.)
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	56	31	151	96
International E&P | Natural gas liquids | International, Equatorial Guinea (E.G.)
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	1	2	3
International E&P | Natural gas | International, Equatorial Guinea (E.G.)
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	6	7	18	22
International E&P | Other | International, Equatorial Guinea (E.G.)
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	$ 1	$ 0	$ 2	$ 0

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Segment Information (Details) $ in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2021 USD ($)	Jun. 30, 2021 USD ($)	Mar. 31, 2021 USD ($)	Sep. 30, 2020 USD ($)	Jun. 30, 2020 USD ($)	Mar. 31, 2020 USD ($)	Sep. 30, 2021 USD ($) segment	Sep. 30, 2020 USD ($)	Dec. 31, 2020 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment							2
Revenues from contracts with customers	$ 1,438			$ 761			$ 3,869	$ 2,275
Net gain (loss) on commodity derivatives	(79)			(1)			(398)	131
Income (loss) from equity method investments	86			(10)			179	(174)
Net gain on disposal of assets	7			1			8	8
Other income	1			3			9	16
Less costs and expenses:
Production	131			129			378	418
Shipping, handling and other operating	219			183			538	432
Exploration	63			27			109	81
Depreciation, depletion and amortization	522			554			1,550	1,795
Impairments	13			1			60	98
Taxes other than income	88			49			236	145
General and administrative	70			53			227	217
Net interest and other	57			62			129	195
Other net periodic benefit costs	0			6			(2)	(1)
Loss on early extinguishment of debt	102			0			121	0
Income tax provision (benefit)	4			7			24	(11)
Segment income (loss)	184	$ 16	$ 97	(317)	$ (750)	$ (46)	297	(1,113)
Total assets	17,161			18,663			17,161	18,663	$ 17,956
Capital expenditures	308			177			781	884
Long-lived assets held for use impairment	5	$ 24		1			30	3
Asset retirement costs of long-lived assets, impairment	8			0			30	0
Goodwill impairment loss						$ 95	0	95
Gulf of Mexico
Less costs and expenses:
Asset retirement costs of long-lived assets, impairment							30
Pension Plan
Less costs and expenses:
Other net periodic benefit costs	3			9			8	25
Pension curtailment gain							0	3
Not Allocated to Segments
Segment Reporting Information [Line Items]
Revenues from contracts with customers	0			0			0	0
Net gain (loss) on commodity derivatives	27			(36)			(130)	39
Income (loss) from equity method investments	0			(18)			0	(170)
Net gain on disposal of assets	7			1			8	8
Other income	1			1			2	3
Less costs and expenses:
Production	0			0			0	0
Shipping, handling and other operating	3			28			19	42
Exploration	48			6			55	6
Depreciation, depletion and amortization	6			5			19	17
Impairments	13			1			60	98
Taxes other than income	0			1			(2)	1
General and administrative	38			25			139	118
Net interest and other	57			62			129	195
Other net periodic benefit costs	0			6			(2)	(1)
Loss on early extinguishment of debt	102						121
Income tax provision (benefit)	(18)			4			(20)	(2)
Segment income (loss)	(214)			(190)			(638)	(594)
Total assets	562			1,163			562	1,163
Capital expenditures	3			1			7	10
Severance costs							12	15
Loss on lease termination							13
Not Allocated to Segments | Permian Basin
Less costs and expenses:
Dry well cost	12						12
Not Allocated to Segments | Eagle Ford
Less costs and expenses:
Long-lived assets held for use impairment							24
Not Allocated to Segments | Gulf of Mexico
Less costs and expenses:
Asset retirement costs of long-lived assets, impairment	8						30
Not Allocated to Segments | Interest Rate Contract, Maturing November 1, 2022 | Not Designated as Hedges
Less costs and expenses:
Loss on interest rate swap	5
Gain on interest rate swap							24
Not Allocated to Segments | Interest Rate Contract, Maturing June 1, 2025 | Not Designated as Hedges
Less costs and expenses:
Gain on interest rate swap	3						34
Not Allocated to Segments | Pension Plan
Less costs and expenses:
Pension settlement loss				9				25
Pension curtailment gain								17
Not Allocated to Segments | Unproved property impairments
Less costs and expenses:
Long-lived assets held for use impairment	20						20
Not Allocated to Segments | Lease | Permian Basin
Less costs and expenses:
Long-lived assets held for use impairment	16						16
Not Allocated to Segments | Proved Property | Permian Basin
Less costs and expenses:
Asset retirement costs of long-lived assets, impairment							5
United States E&P
Segment Reporting Information [Line Items]
Revenues from contracts with customers	1,375			722			3,696	2,154
United States E&P | Eagle Ford
Segment Reporting Information [Line Items]
Revenues from contracts with customers	481			231			1,232	758
United States E&P | Operating Segments
Segment Reporting Information [Line Items]
Revenues from contracts with customers	1,375			722			3,696	2,154
Net gain (loss) on commodity derivatives	(106)			35			(268)	92
Income (loss) from equity method investments	0			0			0	0
Net gain on disposal of assets	0			0			0	0
Other income	0			1			4	8
Less costs and expenses:
Production	119			118			343	375
Shipping, handling and other operating	209			154			506	385
Exploration	15			21			54	75
Depreciation, depletion and amortization	499			530			1,477	1,716
Impairments	0			0			0	0
Taxes other than income	88			48			238	144
General and administrative	29			25			79	89
Net interest and other	0			0			0	0
Other net periodic benefit costs	0			0			0	0
Loss on early extinguishment of debt	0						0
Income tax provision (benefit)	5			(3)			11	(10)
Segment income (loss)	305			(135)			724	(520)
Total assets	15,528			16,396			15,528	16,396
Capital expenditures	303			176			770	874
Int'l E&P | Operating Segments
Segment Reporting Information [Line Items]
Revenues from contracts with customers	63			39			173	121
Net gain (loss) on commodity derivatives	0			0			0	0
Income (loss) from equity method investments	86			8			179	(4)
Net gain on disposal of assets	0			0			0	0
Other income	0			1			3	5
Less costs and expenses:
Production	12			11			35	43
Shipping, handling and other operating	7			1			13	5
Exploration	0			0			0	0
Depreciation, depletion and amortization	17			19			54	62
Impairments	0			0			0	0
Taxes other than income	0			0			0	0
General and administrative	3			3			9	10
Net interest and other	0			0			0	0
Other net periodic benefit costs	0			0			0	0
Loss on early extinguishment of debt	0						0
Income tax provision (benefit)	17			6			33	1
Segment income (loss)	93			8			211	1
Total assets	1,071			1,104			1,071	1,104
Capital expenditures	$ 2			$ 0			$ 4	$ 0

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Income Taxes (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Effective income tax rate	2.00%	(2.00%)	7.00%	1.00%

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Credit Losses (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance as of January 1	$ 22	$ 11
Current period provision	1	22
Current period write offs	(1)	(13)
Recoveries of amounts previously reserved	(3)	(10)
Ending balance	19	22
Cumulative Effect, Period of Adoption, Adjustment
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance as of January 1	$ 0	12
Ending balance		0
Joint Interest Receivables
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Current period provision		10
Trade Receivables
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Current period provision		$ 12

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Inventories (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Crude oil and natural gas	$ 13	$ 10
Supplies and other items	64	66
Inventories	$ 77	$ 76

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Property, Plant and Equipment (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Property, plant and equipment, net	$ 14,734	$ 14,734	$ 15,638
Exploratory well costs capitalized greater than one year after completion of drilling	125	125	98
Operating Segments | United States
Property, Plant and Equipment [Line Items]
Property, plant and equipment, net	14,317	14,317	15,156
Operating Segments | International
Property, Plant and Equipment [Line Items]
Property, plant and equipment, net	364	364	414
Corporate
Property, Plant and Equipment [Line Items]
Property, plant and equipment, net	53	53	$ 68
Corporate | Permian Basin
Property, Plant and Equipment [Line Items]
Dry well cost	$ 12	$ 12

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Impairments (Details) $ in Millions	3 Months Ended					9 Months Ended
	Sep. 30, 2021 USD ($)	Jun. 30, 2021 USD ($) facility	Sep. 30, 2020 USD ($)	Jun. 30, 2020 USD ($)	Mar. 31, 2020 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Impaired Long-Lived Assets Held and Used [Line Items]
Long-lived assets held for use impairment	$ 5	$ 24	$ 1			$ 30	$ 3
Asset retirement costs of long-lived assets, impairment	8		0			30	0
Goodwill impairment loss					$ 95	0	95
Equity method investment impairment	0		18	$ 152		0	170
Number of impaired facilities | facility		2
Asset retirement obligation	309		248			309	248	$ 254	$ 255
Gulf of Mexico
Impaired Long-Lived Assets Held and Used [Line Items]
Asset retirement costs of long-lived assets, impairment						30
Asset retirement obligation	37					37		$ 7
Fair Value
Impaired Long-Lived Assets Held and Used [Line Items]
Long-lived assets held for use	0		0			0	0
Asset retirement costs of long-lived assets	0		0			0	0
Goodwill	0		0			0	0
Equity method investment	$ 0		$ 23			$ 0	$ 119

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Asset Retirement Obligations (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Beginning balance as of January 1			$ 254	$ 255
Incurred liabilities, including acquisitions			9	3
Settled liabilities, including dispositions			(3)	(11)
Accretion expense (included in depreciation, depletion and amortization)			9	9
Revisions of estimates			40	(8)
Ending balance as of September 30, total	$ 309	$ 248	309	248
Asset retirement obligation, current	23	12	23	12
Impairments	8	$ 0	30	$ 0
Gulf of Mexico
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Beginning balance as of January 1			7
Revisions of estimates			37
Ending balance as of September 30, total	37		37
Asset retirement obligation, current	$ 14		14
Impairments			$ 30

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Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Leases [Abstract]
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other noncurrent assets	Other noncurrent assets
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other noncurrent assets	Other noncurrent assets
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Other current liabilities	Other current liabilities
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Other current liabilities	Other current liabilities
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]
ROU assets:
Operating leases	$ 74	$ 133
Finance leases	35	0
Total ROU assets	109	133
Lease liabilities:
Operating leases	44	70
Finance leases	5	0
Operating leases	34	67
Finance leases	30	0
Total Lease liabilities	$ 113	$ 137

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Leases - Narrative (Details) $ in Millions	9 Months Ended
	Sep. 30, 2021 USD ($)
Leases [Abstract]
Estimate total project costs	$ 302
Term of contract	5 years
Finance lease ROU asset	$ 32
Finance lease extension term	5 years
Residual value guarantee	100.00%
Weighted average remaining lease term	5 years
Weighted average discount rate, percent	2.25%
Annual payments to be received	$ 6

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Leases - Lease Payments to be Received (Details) $ in Millions	Sep. 30, 2021 USD ($)
Leases [Abstract]
2021	$ 2
2022	6
2023	6
2024	6
2025	6
Thereafter	56
Total undiscounted cash flows	$ 82

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Goodwill (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill impairment loss	$ 95	$ 0	$ 95

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Derivatives - Balance Sheet Components (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Derivatives, Fair Value [Line Items]
Asset	$ 70	$ 39
Liability	162	49
Net Asset (Liability)	(92)	(10)
Not Designated as Hedges
Derivatives, Fair Value [Line Items]
Asset	70	20
Liability	154	33
Net Asset (Liability)	(84)	(13)
Cash Flow Hedges
Derivatives, Fair Value [Line Items]
Asset	0	19
Liability	8	16
Net Asset (Liability)	(8)	3
Commodity | Other current liabilities | Not Designated as Hedges
Derivatives, Fair Value [Line Items]
Asset	0	7
Liability	152	32
Net Asset (Liability)	(152)	(25)
Commodity | Deferred credits and other liabilities | Not Designated as Hedges
Derivatives, Fair Value [Line Items]
Asset	0
Liability	1
Net Asset (Liability)	(1)
Commodity | Other current assets | Not Designated as Hedges
Derivatives, Fair Value [Line Items]
Asset		3
Liability		1
Net Asset (Liability)		2
Interest Rate | Other current liabilities | Cash Flow Hedges
Derivatives, Fair Value [Line Items]
Asset	0
Liability	3
Net Asset (Liability)	(3)
Interest Rate | Deferred credits and other liabilities | Not Designated as Hedges
Derivatives, Fair Value [Line Items]
Asset	0
Liability	1
Net Asset (Liability)	(1)
Interest Rate | Deferred credits and other liabilities | Cash Flow Hedges
Derivatives, Fair Value [Line Items]
Asset	0	0
Liability	5	16
Net Asset (Liability)	(5)	(16)
Interest Rate | Other noncurrent assets | Not Designated as Hedges
Derivatives, Fair Value [Line Items]
Asset	70	10
Liability	0	0
Net Asset (Liability)	$ 70	10
Interest Rate | Other noncurrent assets | Cash Flow Hedges
Derivatives, Fair Value [Line Items]
Asset		19
Liability		0
Net Asset (Liability)		$ 19

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Derivatives - Outstanding Derivative Contracts (Details) - Not Designated as Hedges	Sep. 30, 2021 MMBTU_per_day Bbls_per_day $ / bbl $ / MMBTU
Three-Way Collars - Crude Oil 2021 Q4
Derivative [Line Items]
Derivative, volume | Bbls_per_day	40,000
Derivative, ceiling	78.05
Derivative, floor	50.00
Derivative, sold put	40.00
Three-Way Collars - Crude Oil 2022, First Quarter
Derivative [Line Items]
Derivative, volume | Bbls_per_day	30,000
Derivative, ceiling	89.12
Derivative, floor	50.00
Derivative, sold put	40.00
Three-Way Collars - Crude Oil 2022, Second Quarter
Derivative [Line Items]
Derivative, volume | Bbls_per_day	30,000
Derivative, ceiling	89.12
Derivative, floor	50.00
Derivative, sold put	40.00
Three-Way Collars - Crude Oil 2022, Third Quarter
Derivative [Line Items]
Derivative, volume | Bbls_per_day	10,000
Derivative, ceiling	88.44
Derivative, floor	50.00
Derivative, sold put	40.00
Three-Way Collars - Crude Oil 2022, Fourth Quarter
Derivative [Line Items]
Derivative, volume | Bbls_per_day	10,000
Derivative, ceiling	88.44
Derivative, floor	50.00
Derivative, sold put	40.00
Two-Way Collars - Crude Oil 2021 Q4
Derivative [Line Items]
Derivative, volume | Bbls_per_day	40,000
Derivative, ceiling	58.92
Derivative, floor	39.25
Two-Way Collars - Crude Oil 2022, First Quarter
Derivative [Line Items]
Derivative, volume | Bbls_per_day	0
Derivative, ceiling	0
Derivative, floor	0
Two-Way Collars - Crude Oil 2022, Second Quarter
Derivative [Line Items]
Derivative, volume | Bbls_per_day	0
Derivative, ceiling	0
Derivative, floor	0
Two-Way Collars - Crude Oil 2022, Third Quarter
Derivative [Line Items]
Derivative, volume | Bbls_per_day	0
Derivative, ceiling	0
Derivative, floor	0
Two-Way Collars - Crude Oil 2022, Fourth Quarter
Derivative [Line Items]
Derivative, volume | Bbls_per_day	0
Derivative, ceiling	0
Derivative, floor	0
NYMEX Roll Basis Swaps - Crude Oil 2021 Q4
Derivative [Line Items]
Derivative, volume | Bbls_per_day	40,000
NYMEX Roll Basis Swaps - Crude Oil 2021 Q4 | Short
Derivative [Line Items]
Derivative, weighted average price	1.15
NYMEX Roll Basis Swaps - Crude Oil 2022, First Quarter
Derivative [Line Items]
Derivative, volume | Bbls_per_day	45,000
NYMEX Roll Basis Swaps - Crude Oil 2022, First Quarter | Short
Derivative [Line Items]
Derivative, weighted average price	0.56
NYMEX Roll Basis Swaps - Crude Oil 2022, Second Quarter
Derivative [Line Items]
Derivative, volume | Bbls_per_day	45,000
NYMEX Roll Basis Swaps - Crude Oil 2022, Second Quarter | Short
Derivative [Line Items]
Derivative, weighted average price	0.56
NYMEX Roll Basis Swaps - Crude Oil 2022, Third Quarter
Derivative [Line Items]
Derivative, volume | Bbls_per_day	45,000
NYMEX Roll Basis Swaps - Crude Oil 2022, Third Quarter | Short
Derivative [Line Items]
Derivative, weighted average price	0.56
NYMEX Roll Basis Swaps - Crude Oil 2022, Fourth Quarter
Derivative [Line Items]
Derivative, volume | Bbls_per_day	45,000
NYMEX Roll Basis Swaps - Crude Oil 2022, Fourth Quarter | Short
Derivative [Line Items]
Derivative, weighted average price	0.56
Two-Way Collars - Natural Gas 2021 Q4
Derivative [Line Items]
Derivative, volume | MMBTU_per_day	200,000
Derivative, ceiling | $ / MMBTU	3.05
Derivative, floor | $ / MMBTU	2.50
Two-Way Collars - Natural Gas 2022, First Quarter
Derivative [Line Items]
Derivative, volume | MMBTU_per_day	0
Derivative, ceiling | $ / MMBTU	0
Derivative, floor | $ / MMBTU	0
Two-Way Collars - Natural Gas 2022, Second Quarter
Derivative [Line Items]
Derivative, volume | MMBTU_per_day	0
Derivative, ceiling | $ / MMBTU	0
Derivative, floor | $ / MMBTU	0
Two-Way Collars - Natural Gas 2022, Third Quarter
Derivative [Line Items]
Derivative, volume | MMBTU_per_day	0
Derivative, ceiling | $ / MMBTU	0
Derivative, floor | $ / MMBTU	0
Two-Way Collars - Natural Gas 2022, Fourth Quarter
Derivative [Line Items]
Derivative, volume | MMBTU_per_day	0
Derivative, ceiling | $ / MMBTU	0
Derivative, floor | $ / MMBTU	0
Three-Way Collars - Natural Gas 2021 Q4
Derivative [Line Items]
Derivative, volume | MMBTU_per_day	0
Derivative, ceiling	0
Derivative, floor	0
Derivative, sold put	0
Three-Way Collars - Natural Gas 2022, First Quarter
Derivative [Line Items]
Derivative, volume | MMBTU_per_day	50,000
Derivative, ceiling	5.14
Derivative, floor	3.60
Derivative, sold put	2.60
Three-Way Collars - Natural Gas 2022, Second Quarter
Derivative [Line Items]
Derivative, volume | MMBTU_per_day	0
Derivative, ceiling	0
Derivative, floor	0
Derivative, sold put	0
Three-Way Collars - Natural Gas 2022, Third Quarter
Derivative [Line Items]
Derivative, volume | MMBTU_per_day	0
Derivative, ceiling	0
Derivative, floor	0
Derivative, sold put	0
Three-Way Collars - Natural Gas 2022, Fourth Quarter
Derivative [Line Items]
Derivative, volume | MMBTU_per_day	0
Derivative, ceiling	0
Derivative, floor	0
Derivative, sold put	0
Henry Hub Basis Swaps - Natural Gas 2021 Q4
Derivative [Line Items]
Derivative, volume | MMBTU_per_day	50,000
Henry Hub Basis Swaps - Natural Gas 2021 Q4 | Short
Derivative [Line Items]
Derivative, weighted average price | $ / MMBTU	2.88
Henry Hub Basis Swaps - Natural Gas 2022, First Quarter
Derivative [Line Items]
Derivative, volume | MMBTU_per_day	0
Henry Hub Basis Swaps - Natural Gas 2022, First Quarter | Short
Derivative [Line Items]
Derivative, weighted average price | $ / MMBTU	0
Henry Hub Basis Swaps - Natural Gas 2022, Second Quarter
Derivative [Line Items]
Derivative, volume | MMBTU_per_day	0
Henry Hub Basis Swaps - Natural Gas 2022, Second Quarter | Short
Derivative [Line Items]
Derivative, weighted average price | $ / MMBTU	0
Henry Hub Basis Swaps - Natural Gas 2022, Third Quarter
Derivative [Line Items]
Derivative, volume | MMBTU_per_day	0
Henry Hub Basis Swaps - Natural Gas 2022, Third Quarter | Short
Derivative [Line Items]
Derivative, weighted average price | $ / MMBTU	0
Henry Hub Basis Swaps - Natural Gas 2022, Fourth Quarter
Derivative [Line Items]
Derivative, volume | MMBTU_per_day	0
Henry Hub Basis Swaps - Natural Gas 2022, Fourth Quarter | Short
Derivative [Line Items]
Derivative, weighted average price | $ / MMBTU	0
Fixed Price Ethane Swaps - NGL 2021 Q4
Derivative [Line Items]
Derivative, volume | Bbls_per_day	5,000
Fixed Price Ethane Swaps - NGL 2021 Q4 | Short
Derivative [Line Items]
Derivative, weighted average price	10.92
Fixed Price Ethane Swaps - NGL 2022 First Quarter
Derivative [Line Items]
Derivative, volume | Bbls_per_day	0
Fixed Price Ethane Swaps - NGL 2022 First Quarter | Short
Derivative [Line Items]
Derivative, weighted average price	0
Fixed Price Ethane Swaps - NGL 2022 Second Quarter
Derivative [Line Items]
Derivative, volume | Bbls_per_day	0
Fixed Price Ethane Swaps - NGL 2022 Second Quarter | Short
Derivative [Line Items]
Derivative, weighted average price	0
Fixed Price Ethane Swaps - NGL 2022 Third Quarter
Derivative [Line Items]
Derivative, volume | Bbls_per_day	0
Fixed Price Ethane Swaps - NGL 2022 Third Quarter | Short
Derivative [Line Items]
Derivative, weighted average price	0
Fixed Price Ethane Swaps - NGL 2022 Fourth Quarter
Derivative [Line Items]
Derivative, volume | Bbls_per_day	0
Fixed Price Ethane Swaps - NGL 2022 Fourth Quarter | Short
Derivative [Line Items]
Derivative, weighted average price	0
Fixed Price Propane Swaps - NGL 2021 Q4
Derivative [Line Items]
Derivative, volume | Bbls_per_day	5,000
Fixed Price Propane Swaps - NGL 2021 Q4 | Short
Derivative [Line Items]
Derivative, weighted average price	23.19
Fixed Price Propane Swaps - NGL 2022, First Quarter
Derivative [Line Items]
Derivative, volume | Bbls_per_day	0
Fixed Price Propane Swaps - NGL 2022, First Quarter | Short
Derivative [Line Items]
Derivative, weighted average price	0
Fixed Price Propane Swaps - NGL 2022, Second Quarter
Derivative [Line Items]
Derivative, volume | Bbls_per_day	0
Fixed Price Propane Swaps - NGL 2022, Second Quarter | Short
Derivative [Line Items]
Derivative, weighted average price	0
Fixed Price Propane Swaps - NGL 2022, Third Quarter
Derivative [Line Items]
Derivative, volume | Bbls_per_day	0
Fixed Price Propane Swaps - NGL 2022, Third Quarter | Short
Derivative [Line Items]
Derivative, weighted average price	0
Fixed Price Propane Swaps - NGL 2022, Fourth Quarter
Derivative [Line Items]
Derivative, volume | Bbls_per_day	0
Fixed Price Propane Swaps - NGL 2022, Fourth Quarter | Short
Derivative [Line Items]
Derivative, weighted average price	0

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Derivatives - Schedule of mark-to-market impact and commodity derivative settlements (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Derivative Instruments, Gain (Loss) [Line Items]
Net settlements of derivative instruments	$ 108	$ 15	$ 203	$ 76
Commodity
Derivative Instruments, Gain (Loss) [Line Items]
Unrealized gain (loss) on derivative instruments, net	27	(36)	(130)	39
Realized gain (loss) on derivative instruments, net	$ (106)	$ 35	$ (268)	$ 92

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Derivatives - Narrative (Details) - USD ($) $ in Millions	3 Months Ended			9 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2021	Aug. 04, 2021	Dec. 31, 2020	Dec. 31, 2019
Senior Unsecured Note Due 2025
Derivative Instruments, Gain (Loss) [Line Items]
Long-term debt	$ 900			$ 900	$ 900
Interest rate	3.85%			3.85%	3.85%
Interest Rate Contract, Maturing November 1, 2022 | Not Designated as Hedges | Not Allocated to Segments
Derivative Instruments, Gain (Loss) [Line Items]
Loss on interest rate swap	$ 5
Gain on interest rate swap				$ 24
Interest Rate Contract, Maturing June 1, 2025
Derivative Instruments, Gain (Loss) [Line Items]
Reclassification from AOCI		$ 31
Interest Rate Contract, Maturing June 1, 2025 | Not Designated as Hedges | Not Allocated to Segments
Derivative Instruments, Gain (Loss) [Line Items]
Gain on interest rate swap	3			34
Interest Rate Contract, Maturing September 9, 2026
Derivative Instruments, Gain (Loss) [Line Items]
Reclassification from AOCI		(1)
Amount expected to be reclassified within 12 months				3
Not Designated as Hedges | Interest Rate
Derivative Instruments, Gain (Loss) [Line Items]
Reclassification of de-designated forward interest rate swaps			$ 2
Not Designated as Hedges | Interest Rate Contract, Maturing November 1, 2022
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, notional amount	500			500		$ 500
Not Designated as Hedges | Interest Rate Contract, Maturing June 1, 2025
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, notional amount	350			350
Not Designated as Hedges | Interest Rate Contract, Maturing September 9, 2026
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, notional amount	25			25
Not Designated as Hedges | Interest Rate Contract, Maturing September 9, 2026 | De-designated as cash flow hedge
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, notional amount		$ 25
Designated as Hedging Instrument | Interest Rate Contract, Maturing June 1, 2025
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, notional amount						350
Designated as Hedging Instrument | Interest Rate Contract, Maturing June 1, 2025 | Cash Flow Hedges
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, notional amount						350
Designated as Hedging Instrument | Interest Rate Contract, Maturing September 9, 2026
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, notional amount	$ 295			$ 295		$ 320
Designated as Hedging Instrument | Interest Rate Contract, Maturing September 9, 2026 | Cash Flow Hedges
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, notional amount							$ 320

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Derivatives - Schedule of Terminated Interest Rate Swap Agreements (Details) - Not Designated as Hedges - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Interest Rate Contract, Maturing November 1, 2022
Derivative [Line Items]
Derivative, notional amount	$ 500	$ 500
Weighted average interest rate, LIBOR	0.99%	0.99%
Interest Rate Contract, Maturing June 1, 2025
Derivative [Line Items]
Derivative, notional amount	$ 350
Weighted average interest rate, LIBOR	0.95%
Interest Rate Contract, Maturing September 9, 2026
Derivative [Line Items]
Derivative, notional amount	$ 25
Weighted average interest rate, LIBOR	1.45%

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Derivatives - Schedule of Interest Rate Swap Agreements (Details) - Designated as Hedging Instrument - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Interest Rate Contract, Maturing June 1, 2025
Derivative [Line Items]
Derivative, notional amount		$ 350
Weighted average interest rate, LIBOR		0.95%
Interest Rate Contract, Maturing September 9, 2026
Derivative [Line Items]
Derivative, notional amount	$ 295	$ 320
Weighted average interest rate, LIBOR	1.52%	1.51%

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Fair Value Measurements - Fair Values - Recurring (Details) - Recurring - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments, assets	$ 69	$ 29
Derivative instruments, liabilities	(161)	(39)
Total	(92)	(10)
Interest Rate | Not Designated as Hedges
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments, assets	69	10
Interest Rate | Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments, assets		19
Derivative instruments, liabilities	(8)	(16)
Commodity
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments, liabilities	(153)	(23)
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments, assets	0	0
Derivative instruments, liabilities	(32)	0
Total	(32)	0
Level 1 | Interest Rate | Not Designated as Hedges
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments, assets	0	0
Level 1 | Interest Rate | Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments, assets		0
Derivative instruments, liabilities	0	0
Level 1 | Commodity
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments, liabilities	(32)	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments, assets	69	29
Derivative instruments, liabilities	(129)	(39)
Total	(60)	(10)
Level 2 | Interest Rate | Not Designated as Hedges
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments, assets	69	10
Level 2 | Interest Rate | Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments, assets		19
Derivative instruments, liabilities	(8)	(16)
Level 2 | Commodity
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments, liabilities	(121)	(23)
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments, assets	0	0
Derivative instruments, liabilities	0	0
Total	0	0
Level 3 | Interest Rate | Not Designated as Hedges
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments, assets	0	0
Level 3 | Interest Rate | Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments, assets		0
Derivative instruments, liabilities	0	0
Level 3 | Commodity
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments, liabilities	$ 0	$ 0

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Fair Value Measurements - Fair Values - Financial Instruments (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Fair Value
Financial assets
Current assets	$ 13	$ 4
Other noncurrent assets	12	24
Total financial assets	25	28
Financial liabilities
Current liabilities	95	72
Long-term debt, including current portion	4,729	6,077
Deferred credits and other liabilities	51	82
Total financial liabilities	4,875	6,231
Carrying Amount
Financial assets
Current assets	12	4
Other noncurrent assets	27	37
Total financial assets	39	41
Financial liabilities
Current liabilities	128	103
Long-term debt, including current portion	4,033	5,431
Deferred credits and other liabilities	50	76
Total financial liabilities	$ 4,211	$ 5,610

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Debt - Revolving Credit Facility (Details) - Revolving Credit Facility	May 28, 2023 USD ($)	Sep. 30, 2021 USD ($)	Jun. 21, 2021 USD ($)	Jun. 20, 2021 USD ($)
Line of Credit Facility [Line Items]
Maximum borrowing capacity			$ 3,100,000,000	$ 3,000,000,000
Line of credit, outstanding amount		$ 0
Covenant, ratio of indebtedness to net capital, maximum		0.65
Ratio of indebtedness to net capital		0.20
Forecast
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 3,000,000,000

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Debt - Debt Redemption (Details) - USD ($) $ in Millions	Aug. 04, 2021	Mar. 30, 2021	Sep. 30, 2021
Senior Unsecured Note Due 2022
Debt Instrument [Line Items]
Long-term debt		$ 500
Interest rate		2.80%
Costs related to make-whole provision premium and write off of unamortized discount and issuance costs		$ 19
Senior Unsecured Note Due 2025
Debt Instrument [Line Items]
Long-term debt	$ 900		$ 900
Interest rate	3.85%		3.85%
Costs related to make-whole provision premium and write off of unamortized discount and issuance costs	$ 102

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Debt - Long-Term Debt (Details) $ in Billions	Sep. 30, 2021 USD ($)
Debt Disclosure [Abstract]
Outstanding debt	$ 4.0

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Stockholders' Equity (Details) - USD ($) $ in Millions		3 Months Ended			9 Months Ended
	Nov. 03, 2021	Sep. 30, 2021	Mar. 31, 2021	Mar. 31, 2020	Sep. 30, 2021
Equity, Class of Treasury Stock [Line Items]
Shares repurchased (in shares)					0
Value of stock repurchased for restricted stock award tax obligation					$ 10
Stock repurchase program, remaining authorized repurchase amount		$ 1,300			$ 1,300
Shares repurchased, value		$ 0	$ 9	$ 91
Subsequent Event
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, remaining authorized repurchase amount	$ 1,100
Shares repurchased, value	200
Stock repurchase program, authorized repurchase amount	$ 2,500

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Incentive Based Compensation - Stock Options, Restricted Stock Awards and Restricted Stock Units (Details)	9 Months Ended
	Sep. 30, 2021 $ / shares shares
Number of Shares
Outstanding, beginning (in shares) | shares	6,014,255
Granted (in shares) | shares	0
Exercised/Vested (in shares) | shares	(384,889)
Canceled (in shares) | shares	(1,137,109)
Outstanding, ending (in shares) | shares	4,492,257
Weighted Average Exercise Price
Outstanding, beginning (in dollars per share) | $ / shares	$ 21.00
Granted (in dollars per share) | $ / shares	0
Exercised/Vested (in dollars per share) | $ / shares	7.34
Canceled (in dollars per share) | $ / shares	23.10
Outstanding, ending (in dollars per share) | $ / shares	$ 21.64
Restricted Stock & Units
Number of Shares & Units
Outstanding, beginning (in shares) | shares	7,851,754
Granted (in shares) | shares	2,306,479
Exercised/Vested (in shares) | shares	(2,992,724)
Canceled (in shares) | shares	(1,037,911)
Outstanding, ending (in shares) | shares	6,127,598
Weighted Average Grant Date Fair Value
Outstanding, beginning (in dollars per share) | $ / shares	$ 11.72
Granted (in dollars per share) | $ / shares	11.21
Exercised/Vested (in dollars per share) | $ / shares	12.78
Canceled (in dollars per share) | $ / shares	11.78
Outstanding, ending (in dollars per share) | $ / shares	$ 11.00

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Incentive Based Compensation - Stock-based Performance Unit Awards (Details)	9 Months Ended
	Sep. 30, 2021 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance shares, payout determination, share price trading day duration	30 days
Performance period	2 years
Vesting Percentage, Lock Level One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage, banking feature lock threshold percentage	50.00%
Vesting Percentage, Lock Level Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage, banking feature lock threshold percentage	100.00%
Performance Unit - Share Settlement
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares) | shares	307,473
Grant date fair value (in dollars per share) | $ / shares	$ 18.07
Performance Unit - Share Settlement | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	0.00%
Performance Unit - Share Settlement | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	200.00%
Performance Shares | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	0.00%
Performance Shares | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	200.00%
Performance Unit - Cash Settlement
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares) | shares	307,473
Grant date fair value (in dollars per share) | $ / shares	$ 27.52

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Defined Benefit Postretirement Plans (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Amortization:
Net settlement loss	$ 0	$ 6	$ (2)	$ (1)
Estimated future contributions over the remainder of the current year	2		2
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	4	4	12	14
Interest cost	2	2	6	7
Expected return on plan assets	(2)	(2)	(6)	(7)
Amortization:
– prior service credit	(1)	(1)	(4)	(5)
– actuarial loss	1	2	4	7
Net settlement loss	3	9	8	25
Net curtailment gain			0	(3)
Net periodic benefit costs (credits)	7	14	20	38
Other Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	0	0	0	0
Interest cost	0	1	1	2
Expected return on plan assets	0	0	0	0
Amortization:
– prior service credit	(4)	(4)	(12)	(13)
– actuarial loss	1	0	2	1
Net settlement loss	0	0	0	0
Net curtailment gain			0	(14)
Net periodic benefit costs (credits)	$ (3)	$ (3)	(9)	$ (24)
Payment for other postretirement benefits			7
Funded Plan
Amortization:
Payment for pension benefits			20
Unfunded Plan
Amortization:
Payment for pension benefits			$ 9

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Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other net periodic benefit (costs) credits	$ 0			$ (6)			$ 2	$ 1
Net interest and other	(57)			(62)			(129)	(195)
Net income (loss)	184	$ 16	$ 97	(317)	$ (750)	$ (46)	297	(1,113)
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Amortization of prior service credit
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other net periodic benefit (costs) credits	5			5			16	18
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Amortization of actuarial loss
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other net periodic benefit (costs) credits	(2)			(2)			(6)	(8)
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Net settlement loss
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other net periodic benefit (costs) credits	(3)			(9)			(8)	(25)
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Net curtailment gain
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other net periodic benefit (costs) credits	0			0			0	17
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Reclassification of de-designated forward interest rate swaps
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net interest and other	0			0			(28)	0
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Total reclassifications of (income) expense, net of tax
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net income (loss)	$ 0			$ (6)			$ (26)	$ 2

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Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Included in operating activities:
Interest paid, net of amounts capitalized	$ 185	$ 175
Income taxes paid to (received from) taxing authorities, net of refunds	8	(50)
Noncash investing activities:
Increase (decrease) in asset retirement costs	49	(5)
Proceeds from income tax refunds	1	94
Capital expenditures incurred but not yet paid	$ 104	$ 81

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Equity Method Investments - Schedule of Equity Method Investments (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Schedule of Equity Method Investments [Line Items]
Equity method investments	$ 489	$ 447
EG Holdings
Schedule of Equity Method Investments [Line Items]
Ownership percentage	60.00%
Equity method investments	$ 181	113
Alba Plant LLC
Schedule of Equity Method Investments [Line Items]
Ownership percentage	52.00%
Equity method investments	$ 166	168
AMPCO
Schedule of Equity Method Investments [Line Items]
Ownership percentage	45.00%
Equity method investments	$ 142	$ 166

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Equity Method Investments - Summarized Financial Information (Details) - USD ($) $ in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020
Schedule of Equity Method Investments [Line Items]
Revenues and other income	$ 1,453			$ 754			$ 3,667	$ 2,256
Income (loss) from operations	347			(242)			569	(930)
Net income (loss)	184	$ 16	$ 97	(317)	$ (750)	$ (46)	297	(1,113)
Consolidated Equity Method Investments
Schedule of Equity Method Investments [Line Items]
Revenues and other income	325			140			806	423
Income (loss) from operations	188			19			395	(21)
Net income (loss)	$ 155			$ 12			$ 312	$ (27)

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Equity Method Investments - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Equity Method Investments and Joint Ventures [Abstract]
Revenue from related parties	$ 8	$ 9	$ 24	$ 29
Due from related parties	18		18		$ 24
Due to related parties	$ 6		$ 6		$ 13

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Commitments and Contingencies (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020	Dec. 31, 2019
Loss Contingencies [Line Items]
Guarantees recorded	$ 4
Contingent royalty liability	126
Contingent capital and expense receivable, noncurrent	24
Revisions of estimates	40	$ (8)
Asset retirement obligation	309	$ 248	$ 254	$ 255
Gulf of Mexico
Loss Contingencies [Line Items]
Revisions of estimates	37
Asset retirement obligation	37		$ 7
Accounts payable
Loss Contingencies [Line Items]
Contingent royalty liability	115
Other current liabilities
Loss Contingencies [Line Items]
Contingent royalty liability	11
Performance of Equatorial Guinea LNG Operations, S.A.
Loss Contingencies [Line Items]
Guarantor obligations, maximum exposure	91
Performance of Alba Plant LLC.
Loss Contingencies [Line Items]
Guarantor obligations, maximum exposure	$ 25