Commitments

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments

Note Q – Commitments

The Company has operating, production handling and transportation service agreements for oil and/or natural gas operations in the U.S. and Western Canada.  The U.S. Onshore and Gulf of Mexico transportation contracts require minimum monthly payments through 2045, while the Western Canada processing contracts call for minimum monthly payments through 2051.  In the U.S. and Western Canada, future required minimum annual payments for the next five years are $221.4 million in 2022, $168.1 million in 2023, $114.4 million in 2024, $89.8 million in 2025 and $82.4 million in 2026.  Under certain circumstances, the Company is required to pay additional amounts depending on the actual hydrocarbon quantities processed under the agreement.  Total costs incurred under these service arrangements were $151.8 million in 2021, $107.6 million in 2020, and $117.7 million in 2019.

Commitments for capital expenditures were approximately $520.1 million at December 31, 2021, including $392.4 million for costs to develop deepwater U.S. Gulf of Mexico fields including fields acquired as part of the MP GOM and LLOG transactions, $84.7 million for Canada, $24.9 million for Other Foreign, and $18.1 million for work at Eagle Ford Shale.