Segment Information (Tables)

12 Months Ended

Dec. 31, 2023

Summary of Information by Business Segment

The following table presents selected segment information for the periods indicated (in thousands):


	Upstream		All Other(1)			Total
Revenues from External Customers:
Year Ended December 31, 2023	$	1,457,886	$	—		$	1,457,886
Year Ended December 31, 2022		1,651,980		—			1,651,980
Year Ended December 31, 2021		1,244,540		—			1,244,540
Equity in the Net Income (Loss) of Investees Accounted for by the Equity Method:
Year Ended December 31, 2023	$	120	$	(12,228	)	$	(12,108	)
Year Ended December 31, 2022		101		(1,166	)		(1,065	)
Year Ended December 31, 2021		—		—			—
Adjusted EBITDA:
Year Ended December 31, 2023	$	979,729	$	(22,883	)	$	956,846
Year Ended December 31, 2022	$	859,840	$	(12,786	)		847,054
Year Ended December 31, 2021		615,798		(4,782	)		611,016
Segment Expenditures:
Year Ended December 31, 2023	$	733,669	$	40,961		$	774,630
Year Ended December 31, 2022		452,674		2,778			455,452
Year Ended December 31, 2021		338,822		—			338,822

(1)

The CCS Segment is included in the “All Other” category. The CCS Segment is an emerging business in the start-up phase of operations and the business that does not currently generate any revenues. The CCS Segment’s business activities are conducted through both wholly owned subsidiaries and equity method investments with industry partners. Equity method investments is a business strategy that enables us to achieve favorable economies of scale relative to the level of investment and business risk assumed.

Schedule of Reconciliation of Reportable Segment Information to the Company's Consolidated Totals

The following table presents the reconciliations of Adjusted EBITDA to the Company’s consolidated totals (in thousands):


	Year Ended December 31,
	2023			2022			2021
Adjusted EBITDA:
Total for reportable segments	$	979,729		$	859,840		$	615,798
All other		(22,883	)		(12,786	)		(4,782	)
Unallocated corporate general and administrative expense		(6,128	)		(5,280	)		(4,542	)
Interest expense		(173,145	)		(125,498	)		(133,138	)
Depreciation, depletion and amortization		(663,534	)		(414,630	)		(395,994	)
Accretion expense		(86,152	)		(55,995	)		(58,129	)
Write-down of oil and natural gas properties		—			—			(18,123	)
Transaction and other (income) expenses(1)		33,295			34,513			(5,886	)
Decommissioning obligations(2)		(11,879	)		(31,558	)		(21,055	)
Derivative fair value gain (loss) (3)		80,928			(272,191	)		(419,077	)
Net cash (received) paid on settled derivative instruments (3)		9,457			425,559			290,164
Gain (loss) on extinguishment of debt		—			(1,569	)		(13,225	)
Non-cash write-down of other well equipment		—			—			(5,606	)
Non-cash equity-based compensation expense		(12,953	)		(15,953	)		(10,992	)
Income (loss) before income taxes	$	126,735		$	384,452		$	(184,587	)

(1)

Transaction expenses includes $40.4 million and $9.0 million in costs related to the EnVen Acquisition, inclusive of $25.3 million and nil in severance expense for the years ended December 31, 2023 and 2022, respectively. See further discussion in Note 3 — Acquisition and Divestitures and Note 10 — Employee Benefits Plans and Share-Based Compensation. Other income (expense) includes other miscellaneous income and expenses that the Company does not view as a meaningful indicator of its operating performance. For the year ended December 31, 2023, the amount includes a $66.2 million gain on the Mexico Divestiture. See further discussion in Note 3 — Acquisitions and Divestitures. The amount includes a gain on the funding of the capital carry of the Company’s investment in Bayou Bend by Chevron of $8.6 million and $1.4 million for the year ended December 31, 2023 and 2022, respectively. Additionally, it includes a $13.9 million gain on the partial sale of its investment in Bayou Bend to Chevron for the year ended December 31, 2022. See further discussion in Note 7 — Equity Method Investments. For the year ended December 31, 2022, the amount includes $27.5 million gain as a result of the settlement agreement to resolve previously pending litigation that was filed in October 2017 that is further discussed in Note 14 — Commitments and Contingencies.

(2)

Estimated decommissioning obligations were a result of working interest partners or counterparties of divestiture transactions that were unable to perform the required abandonment obligations due to bankruptcy or insolvency. See Note 14 — Commitments and Contingencies for additional information on decommissioning obligations.

(3)

The adjustments for the derivative fair value (gains) losses and net cash receipts (payments) on settled commodity derivative instruments have the effect of adjusting net loss for changes in the fair value of derivative instruments, which are recognized at the end of each accounting period because the Company does not designate commodity derivative instruments as accounting hedges. This results in reflecting commodity derivative gains and losses within Adjusted EBITDA on an unrealized basis during the period the derivatives settled.

Reconciliation of Reportable Segment Expenditures

The following table presents the reconciliation of Segment Expenditures to the Company’s consolidated totals (in thousands):


	Year Ended December 31,
	2023			2022			2021
Segment Expenditures:
Total reportable segments	$	733,669		$	452,674		$	338,822
All other		40,961			2,778			—
Change in capital expenditures included in accounts payable and accrued liabilities		(9,199	)		(60,011	)		28,258
Plugging & abandonment		(86,615	)		(69,596	)		(67,988	)
Decommissioning obligations settled		(50,584	)		(1,625	)		—
Investment in CCS intangibles and equity method investees		(40,946	)		(2,778	)		—
Other deferred payments		(1,545	)		—			(7,921	)
Insurance recovery proceeds		2,802			—			—
Non-cash well equipment transfers		(27,731	)		(6	)		1,086
Other		622			1,728			1,074
Exploration, development and other capital expenditures	$	561,434		$	323,164		$	293,331