Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Components of Income Tax Provision (Benefit)

The provision (benefit) for income taxes consisted of:

	2022		2021		2020
	(In millions)
United States
Federal
Current	$	—	$	—	$	(4)
Deferred taxes and other accruals	22		12		6
State	5		3		(1)
	27		15		1
Foreign
Current (a)	789		478		48
Deferred taxes and other accruals	283		107		(60)
	1,072		585		(12)
Provision (Benefit) For Income Taxes	$	1,099	$	600	$	(11)

(a)Primarily comprised of Libya and Guyana in 2022 and Libya in 2021 and 2020.

Components of Income (Loss) Before Income Taxes

Income (loss) before income taxes consisted of the following:

	2022		2021		2020
	(In millions)
United States (a)	$	569	$	143	$	(1,509)
Foreign	2,977		1,347		(1,341)
Income (Loss) Before Income Taxes	$	3,546	$	1,490	$	(2,850)

(a)Includes substantially all of our interest expense, corporate expense and the results of commodity hedging activities.

Reconciliation of Effective Income Tax Rate

The difference between our effective income tax rate and the U.S. statutory rate is reconciled below:

	2022		2021		2020
U.S. statutory rate	21.0	%	21.0	%	21.0	%
Effect of foreign operations (a)	16.5		28.0		12.1
State income taxes, net of federal income tax	0.1		0.2		0.1
Valuation allowance on current year operations	(4.8)		(5.3)		(36.5)
Noncontrolling interests in Midstream	(1.6)		(4.0)		1.7
Credits	—		—		2.0
Equity and executive compensation	(0.2)		0.4		(0.1)
Other	—		—		0.1
Total	31.0	%	40.3	%	0.4	%

(a)The variance in effective income tax rates attributable to the effect of foreign operations is primarily driven by Libya.

Components of Deferred Tax Assets & Liabilities

The components of deferred tax liabilities and deferred tax assets at December 31, were as follows:

	2022		2021
	(In millions)
Deferred Tax Liabilities
Property, plant and equipment and investments	$	(1,742)	$	(1,712)
Other	(99)		(38)
Total Deferred Tax Liabilities	(1,841)		(1,750)
Deferred Tax Assets
Net operating loss carryforwards	4,226		4,323
Tax credit carryforwards	98		89
Property, plant and equipment and investments	233		258
Accrued compensation, deferred credits and other liabilities	85		71
Asset retirement obligations	279		258
Other	293		277
Total Deferred Tax Assets	5,214		5,276
Valuation allowances (a)	(3,658)		(3,838)
Total deferred tax assets, net of valuation allowances	1,556		1,438
Net Deferred Tax Assets (Liabilities)	$	(285)	$	(312)

(a)In 2022, the valuation allowance decreased by $180 million (2021: decrease of $1,553 million; 2020: increase of $657 million).

In the Consolidated Balance Sheet, deferred tax assets and liabilities are netted by taxing jurisdiction and are recorded at December 31, as follows:

	2022		2021
	(In millions)
Deferred income taxes (long-term asset)	$	133	$	71
Deferred income taxes (long-term liability)	(418)		(383)
Net Deferred Tax Assets (Liabilities)	$	(285)	$	(312)

Reconciliation of Unrecognized Tax Benefits

Below is a reconciliation of the gross beginning and ending amounts of unrecognized tax benefits:

	2022		2021		2020
	(In millions)
Balance at January 1	$	133	$	166	$	168
Additions based on tax positions taken in the current year	17		12		2
Additions based on tax positions of prior years	—		3		1
Reductions based on tax positions of prior years	(30)		(48)		(2)
Reductions due to settlements with taxing authorities	—		—		(1)
Reductions due to lapses in statutes of limitation	—		—		(2)
Balance at December 31	$	120	$	133	$	166