Segment Information (Tables)

3 Months Ended

Mar. 31, 2020

Summary of Financial Information for Company's Reportable Segments

Summarized financial information for the Company’s reportable segments is shown in the following table. The accounting policies of the segments are the same as those described in Note 1 of the Notes to Consolidated Financial Statements included in Item 8 of the 2019 Annual Report. Management evaluates the performance of its segments based on operating income, defined as operating revenues less operating costs. Income before income taxes, for the purpose of reconciling the operating income amount shown below to consolidated income before income taxes, is the sum of operating income, interest expense, gain (loss) on derivatives, gain on early extinguishment of debt and other income. The “Other” column includes items not related to the Company’s reportable segments, including real estate and corporate items. Corporate general and administrative costs, depreciation expense and taxes, other than income taxes, are allocated to the segments.


	E&P			Marketing		Other			Total

Three months ended March 31, 2020	(in millions)
Revenues from external customers	$	353		$	239	$	—		$	592
Intersegment revenues	(9)			309		—			300
Depreciation, depletion and amortization expense	111			2		—			113
Impairments	1,479			—		—			1,479
Operating income (loss)	(1,486)		⁽¹⁾	(4)		—			(1,490)
Interest expense⁽²⁾	19			—		—			19
Gain on derivatives	339			—		—			339
Gain on early extinguishment of debt	—			—		28			28
Other income, net	1			—		—			1
Provision for income taxes ⁽²⁾	406			—		—			406
Assets	4,900		⁽³⁾	214		161		⁽⁴⁾	5,275
Capital investments⁽⁵⁾	237			—		—			237

Three months ended March 31, 2019
Revenues from external customers	$	551		$	439	$	—		$	990
Intersegment revenues	(9)			502		—			493
Depreciation, depletion and amortization expense	110			2		—			112

Operating income	210		⁽¹⁾	3		—			213
Interest expense⁽²⁾	14			—		—			14
Loss on derivatives	(32)			—		—			(32)

Other income, net	1			—		—			1
Benefit from income taxes⁽²⁾	(426)			—		—			(426)
Assets	5,562		⁽³⁾	342		542		⁽⁴⁾	6,446
Capital investments⁽⁵⁾	325			—		—			325

(1)Operating income for the E&P segment includes $10 million and $3 million of restructuring charges for the three months ended March 31, 2020 and 2019, respectively.

(2)Interest expense and provision (benefit) for income taxes by segment is an allocation of corporate amounts as they are incurred at the corporate level.

(3)E&P assets includes office, technology, water infrastructure, drilling rigs and other ancillary equipment not directly related to natural gas and oil properties. For the three months ended March 31, 2019, this also includes deferred tax assets which are an allocation of corporate amounts as they are incurred at the corporate level.

(4)Other assets represent corporate assets not allocated to segments and assets for non-reportable segments. At March 31, 2020 and 2019, other assets included approximately $5 million and $366 million, respectively, in cash and cash equivalents, $32 million and $68 million, respectively, in income taxes receivable, $23 million and $56 million, respectively, in property, plant and equipment, $10 million and $10 million, respectively, in unamortized debt expense, $9 million and $10 million, respectively, in prepayments, $5 million and $7 million, respectively, in a non-qualified retirement plan and $77 million and $25 million in right-of-use lease assets, respectively.

(5)Capital investments include increases of $8 million and $66 million for the three months ended March 31, 2020 and 2019, respectively, relating to the change in accrued expenditures between years.