Leases (Tables)

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Balance Sheet Information Related to Operating & Finance Leases

Operating and finance lease obligations at December 31 included in the Consolidated Balance Sheet were as follows:

	Operating Leases				Finance Leases
	2022		2021		2022		2021
	(In millions)
Right-of-use assets — net (a)	$	570	$	352	$	126	$	144
Lease obligations:
Current	$	200	$	70	$	21	$	19
Long-term	469		394		179		200
Total lease obligations	$	669	$	464	$	200	$	219

(a)At December 31, 2022, finance lease ROU assets had a cost of $212 million (2021: $212 million) and accumulated amortization of $86 million (2021: $68 million).

Maturity Profile of Lease Obligations

Maturities of lease obligations at December 31, 2022 were as follows:

	Operating Leases		Finance Leases
	(In millions)
2023	$	225	$	36
2024	133		36
2025	98		36
2026	83		31
2027	45		22
Remaining years	185		122
Total lease payments (a)	769		283
Less: Imputed interest	(100)		(83)
Total lease obligations	$	669	$	200

(a)Excludes lease payments of $153 million under an agreement to lease a deepwater drilling rig to be used in the Gulf of Mexico. The agreement was executed prior to December 31, 2022, but lease commencement will not occur until 2023.

Term & Rate Information Related to Operating & Finance Leases

The following information relates to the operating and finance leases at December 31:

	Operating Leases		Finance Leases
	2022	2021	2022	2021
Weighted average remaining lease term	6.8 years	9.9 years	10.8 years	11.8 years
Range of remaining lease terms	0.3 - 13.5 years	0.1 - 14.5 years	10.8 years	11.8 years
Weighted average discount rate	4.5%	4.1%	7.9%	7.9%

Components of Lease Costs

The components of lease costs were as follows:

	2022		2021		2020
	(In millions)
Operating lease cost	$	114	$	88	$	200
Finance lease cost:
Amortization of leased assets	18		24		31
Interest on lease obligations	18		18		20
Short-term lease cost (a)	311		137		199
Variable lease cost (b)	33		21		38
Sublease income (c)	(18)		(17)		(15)
Total lease cost	$	476	$	271	$	473

(a)Short-term lease cost is primarily attributable to equipment used in global exploration, development, production, and crude oil marketing activities.  Future short-term lease costs will vary based on activity levels of our operated assets. In 2022, short-term lease cost included drilling rigs and offshore support vessels used for an exploration well and abandonment activity in the Gulf of Mexico and workover rigs for maintenance activities in the Bakken.

(b)Variable lease costs for drilling rigs result from differences in the minimum rate and the actual usage of the ROU asset during the lease period.  Variable lease costs for logistical assets result from differences in stated monthly rates and total charges reflecting the actual usage of the ROU asset during the lease period.  Variable lease costs for our office leases represent common area maintenance charges which have not been separated from lease components.

(c)We sublease certain of our office space to third parties under our head lease.

Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases were as follows:

	Operating Leases						Finance Leases
	2022		2021		2020		2022		2021		2020
	(In millions)
Cash paid for amounts included in the measurement of lease obligations:
Operating cash flows (a)	$	126	$	87	$	218	$	18	$	18	$	20
Financing cash flows (a)	—		—		—		19		18		17
Noncash transactions:
Leased assets recognized for new lease obligations incurred (b)	294		12		51		—		—		—
Changes in leased assets and lease obligations due to lease modifications (c)	16		29		123		—		—		—

(a)Amounts represent gross lease payments before any recovery from partners.

(b)In 2022, primarily related to new leases for drilling rigs in the Bakken and in North Malay Basin.

(c)In 2020, primarily related to negotiated extensions of an office lease and offshore drilling rig leases.