Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Components of Income Tax Provision (Benefit)

The provision (benefit) for income taxes consisted of:

	2023		2022		2021
	(In millions)
United States
Federal
Current	$	—	$	—	$	—
Deferred taxes and other accruals	31		22		12
State	7		5		3
	38		27		15
Foreign
Current (a)	537		789		478
Deferred taxes and other accruals	158		283		107
	695		1,072		585
Provision (Benefit) For Income Taxes	$	733	$	1,099	$	600

(a)Primarily comprised of Guyana in 2023, Guyana and Libya in 2022, and Libya in 2021.

Components of Income (Loss) Before Income Taxes

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

	2023		2022		2021
	(In millions)
United States (a)	$	(191)	$	569	$	143
Foreign	2,662		2,977		1,347
Income (Loss) Before Income Taxes	$	2,471	$	3,546	$	1,490

(a)Includes substantially all of our interest expense, corporate expense, the results of commodity hedging activities, and amounts attributable to noncontrolling interests.

Reconciliation of Effective Income Tax Rate

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

	2023		2022		2021
U.S. statutory rate	21.0	%	21.0	%	21.0	%
Effect of foreign operations (a)	7.5		16.5		28.0
State income taxes, net of federal income tax	0.2		0.1		0.2
Valuation allowance on current year operations	4.5		(4.8)		(5.3)
Release of valuation allowance	(1.3)		—		—
Noncontrolling interests in Midstream	(2.0)		(1.6)		(4.0)
Equity and executive compensation	(0.2)		(0.2)		0.4
Total	29.7	%	31.0	%	40.3	%

(a)The variance in effective income tax rates attributable to the effect of foreign operations is primarily driven by Guyana in 2023 and Libya in 2022 and 2021.

Components of Deferred Tax Assets & Liabilities

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

	2023		2022
	(In millions)
Deferred Tax Liabilities
Property, plant and equipment and investments	$	(2,117)	$	(1,742)
Other	(108)		(99)
Total Deferred Tax Liabilities	(2,225)		(1,841)
Deferred Tax Assets
Net operating loss carryforwards	4,406		4,226
Tax credit carryforwards	109		98
Property, plant and equipment and investments	413		233
Accrued compensation, deferred credits and other liabilities	109		85
Asset retirement obligations	296		279
Other	256		293
Total Deferred Tax Assets	5,589		5,214
Valuation allowances (a)	(3,652)		(3,658)
Total deferred tax assets, net of valuation allowances	1,937		1,556
Net Deferred Tax Assets (Liabilities)	$	(288)	$	(285)

(a)In 2023, the valuation allowance decreased by $6 million (2022: decrease of $180 million; 2021: decrease of $1,553 million).

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

	2023		2022
	(In millions)
Deferred income taxes (long-term asset)	$	320	$	133
Deferred income taxes (long-term liability)	(608)		(418)
Net Deferred Tax Assets (Liabilities)	$	(288)	$	(285)

Reconciliation of Unrecognized Tax Benefits

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

	2023		2022		2021
	(In millions)
Balance at January 1	$	120	$	133	$	166
Additions based on tax positions taken in the current year	—		17		12
Additions based on tax positions of prior years	—		—		3
Reductions based on tax positions of prior years	(9)		(30)		(48)
Balance at December 31	$	111	$	120	$	133