Revenues and Segment Information

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

REVENUES AND SEGMENT INFORMATION

9.    REVENUES AND SEGMENT INFORMATION

Revenue from Contracts with Customers

Disaggregation of Revenue

Revenue is presented in the table below under “Segment Information” disaggregated by product because this is the level of disaggregation that management has determined to be beneficial to users of our financial statements.

Contract Balances

Contract balances were as follows (in millions):

	June 30, 2023		December 31, 2022
Receivables from contracts with customers, included in receivables, net	$	5,878	$	7,189
Contract liabilities, included in accrued expenses	85		129

During the six months ended June 30, 2023 and 2022, we recognized as revenue $123 million and $72 million that was included in contract liabilities as of December 31, 2022 and 2021, respectively. Revenue recognized related to contract liabilities during the three months ended June 30, 2023 and 2022 was not material.

Remaining Performance Obligations

We have spot and term contracts with customers, the majority of which are spot contracts with no remaining performance obligations. We do not disclose remaining performance obligations for contracts that have terms of one year or less. The transaction price for our remaining term contracts includes a fixed component and variable consideration (i.e., a commodity price), both of which are allocated entirely to a wholly unsatisfied promise to transfer a distinct good that forms part of a single performance obligation. The fixed component is not material and the variable consideration is highly uncertain. Therefore, as of June 30, 2023, we have not disclosed the aggregate amount of the transaction price allocated to our remaining performance obligations.

Segment Information

We have three reportable segments — Refining, Renewable Diesel, and Ethanol. Each segment is a strategic business unit that offers different products and services by employing unique technologies and marketing strategies and whose operations and operating performance are managed and evaluated separately. Operating performance is measured based on the operating income generated by the segment, which includes revenues and expenses that are directly attributable to the management of the respective segment. Intersegment sales are generally derived from transactions made at prevailing market rates. The following is a description of each segment’s business operations.

•The Refining segment includes the operations of our petroleum refineries, the associated activities to market our refined petroleum products, and the logistics assets that support our refining operations. The principal products manufactured by our refineries and sold by this segment include gasolines and blendstocks, distillates, and other products.

•The Renewable Diesel segment represents the operations of DGD, a consolidated joint venture as discussed in Note 6, and the associated activities to market renewable diesel and renewable naphtha. The principal products manufactured by DGD and sold by this segment are renewable diesel and renewable naphtha. This segment sells some renewable diesel to the Refining segment, which is then sold to that segment’s customers.

•The Ethanol segment includes the operations of our ethanol plants and the associated activities to market our ethanol and co-products. The principal products manufactured by our ethanol plants are ethanol and distillers grains. This segment sells some ethanol to the Refining segment for blending into gasoline, which is sold to that segment’s customers as a finished gasoline product.

Operations that are not included in any of the reportable segments are included in the corporate category.

The following tables reflect information about our operating income by reportable segment (in millions):

	Refining		Renewable Diesel		Ethanol		Corporate and Eliminations		Total
Three months ended June 30, 2023
Revenues:
Revenues from external customers	$	31,996	$	1,296	$	1,217	$	—	$	34,509
Intersegment revenues	(3)		950		257		(1,204)		—
Total revenues	31,993		2,246		1,474		(1,204)		34,509
Cost of sales:
Cost of materials and other (a)	27,773		1,643		1,199		(1,185)		29,430
Operating expenses (excluding depreciation and amortization expense reflected below)	1,205		104		128		3		1,440
Depreciation and amortization expense	582		59		19		(2)		658
Total cost of sales	29,560		1,806		1,346		(1,184)		31,528
Other operating expenses	1		—		1		—		2
General and administrative expenses (excluding depreciation and amortization expense reflected below)	—		—		—		209		209
Depreciation and amortization expense	—		—		—		11		11
Operating income by segment	$	2,432	$	440	$	127	$	(240)	$	2,759
Three months ended June 30, 2022
Revenues:
Revenues from external customers	$	49,495	$	855	$	1,291	$	—	$	51,641
Intersegment revenues	11		596		201		(808)		—
Total revenues	49,506		1,451		1,492		(808)		51,641
Cost of sales:
Cost of materials and other (a)	41,313		1,213		1,226		(806)		42,946
Operating expenses (excluding depreciation and amortization expense reflected below)	1,402		58		167		(1)		1,626
Depreciation and amortization expense	565		28		(3)		—		590
Total cost of sales	43,280		1,299		1,390		(807)		45,162
Other operating expenses	14		—		1		—		15
General and administrative expenses (excluding depreciation and amortization expense reflected below)	—		—		—		233		233
Depreciation and amortization expense	—		—		—		12		12
Operating income by segment	$	6,212	$	152	$	101	$	(246)	$	6,219

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See note (a) on page 20.

	Refining		Renewable Diesel		Ethanol		Corporate and Eliminations		Total
Six months ended June 30, 2023
Revenues:
Revenues from external customers	$	66,403	$	2,231	$	2,314	$	—	$	70,948
Intersegment revenues	—		1,695		480		(2,175)		—
Total revenues	66,403		3,926		2,794		(2,175)		70,948
Cost of sales:
Cost of materials and other (a)	56,283		2,974		2,330		(2,152)		59,435
Operating expenses (excluding depreciation and amortization expense reflected below)	2,466		190		258		3		2,917
Depreciation and amortization expense	1,154		117		39		(2)		1,308
Total cost of sales	59,903		3,281		2,627		(2,151)		63,660
Other operating expenses	11		—		1		—		12
General and administrative expenses (excluding depreciation and amortization expense reflected below)	—		—		—		453		453
Depreciation and amortization expense	—		—		—		21		21
Operating income by segment	$	6,489	$	645	$	166	$	(498)	$	6,802
Six months ended June 30, 2022
Revenues:
Revenues from external customers	$	86,308	$	1,450	$	2,425	$	—	$	90,183
Intersegment revenues	15		982		328		(1,325)		—
Total revenues	86,323		2,432		2,753		(1,325)		90,183
Cost of sales:
Cost of materials and other (a)	74,919		1,968		2,330		(1,322)		77,895
Operating expenses (excluding depreciation and amortization expense reflected below)	2,595		109		302		(1)		3,005
Depreciation and amortization expense	1,114		54		17		—		1,185
Total cost of sales	78,628		2,131		2,649		(1,323)		82,085
Other operating expenses	32		—		2		—		34
General and administrative expenses (excluding depreciation and amortization expense reflected below)	—		—		—		438		438
Depreciation and amortization expense	—		—		—		23		23
Operating income by segment	$	7,663	$	301	$	102	$	(463)	$	7,603

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(a)Cost of materials and other for our Renewable Diesel segment is net of the blender’s tax credit on qualified fuel mixtures of $388 million and $198 million for the three months ended June 30, 2023 and 2022, respectively, and $634 million and $354 million for the six months ended June 30, 2023 and 2022, respectively.

The following table provides a disaggregation of revenues from external customers for our principal products by reportable segment (in millions):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Refining:
Gasolines and blendstocks	$	15,229	$	20,604	$	30,277	$	36,164
Distillates	13,992		24,427		30,830		41,871
Other product revenues	2,775		4,464		5,296		8,273
Total Refining revenues	31,996		49,495		66,403		86,308
Renewable Diesel:
Renewable diesel	1,249		817		2,125		1,412
Renewable naphtha	47		38		106		38
Total Renewable Diesel revenues	1,296		855		2,231		1,450
Ethanol:
Ethanol	898		979		1,661		1,854
Distillers grains	319		312		653		571
Total Ethanol revenues	1,217		1,291		2,314		2,425
Revenues	$	34,509	$	51,641	$	70,948	$	90,183

Total assets by reportable segment were as follows (in millions):

	June 30, 2023		December 31, 2022
Refining	$	47,253	$	48,484
Renewable Diesel	5,524		5,217
Ethanol	1,499		1,551
Corporate and eliminations	6,391		5,730
Total assets	$	60,667	$	60,982