Segment Information (Tables)

9 Months Ended

Sep. 30, 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 (loss). 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

	(in millions)
Three months ended September 30, 2020
Revenues from external customers	$	308		$	219	$	—		$	527
Intersegment revenues	(10)			276		—			266
Depreciation, depletion and amortization expense	68			2		—			70
Impairments	361			—		—			361
Operating loss	(379)		(1)	(2)		—			(381)
Interest expense (2)	22			—		—			22
Loss on derivatives	(192)			—		—			(192)

Other income, net	2			—		—			2

Assets	3,705		(3)	240		212		(4)	4,157
Capital investments (5)	223			—		—			223

Three months ended September 30, 2019
Revenues from external customers	$	357		$	279	$	—		$	636
Intersegment revenues	(9)			313		—			304
Depreciation, depletion and amortization expense	123			2		—			125
Impairments	—			2		—			2
Operating loss	(21)		(1)	(8)		—			(29)
Interest expense (2)	17			—		—			17
Gain on derivatives	100			—		—			100
Gain on early extinguishment of debt	—			—		7			7
Other income (loss), net	(4)			—		2			(2)
Provision for income taxes (2)	10			—		—			10
Assets	6,099		(3)	272		227		(4)	6,598
Capital investments (5)	239			—		1			240


	E&P			Marketing		Other			Total

Nine months ended September 30, 2020	(in millions)
Revenues from external customers	$	884		$	645	$	—		$	1,529
Intersegment revenues	(31)			787		—			756
Depreciation, depletion and amortization expense	260			7		—			267
Impairments	2,495			—		—			2,495
Operating loss	(2,613)		(1)	(14)		—			(2,627)
Interest expense (2)	63			—		—			63
Gain on derivatives	38			—		—			38
Gain on early extinguishment of debt	—			—		35			35
Other income, net	2			—		1			3
Provision for income taxes (2)	406			—		—			406
Assets	3,705		(3)	240		212		(4)	4,157
Capital investments (5)	705			—		—			705

Nine months ended September 30, 2019
Revenues from external customers	$	1,288		$	1,005	$	—		$	2,293
Intersegment revenues	(27)			1,154		—			1,127
Depreciation, depletion and amortization expense	345			7		—			352
Impairments	6			2		—			8
Operating income (loss)	219		(1)	(13)		—			206
Interest expense (2)	46			—		—			46
Gain on derivatives	220			—		—			220
Gain on early extinguishment of debt	—			—		7			7
Other income (loss), net	(8)			—		1			(7)
Benefit from income taxes (2)	(401)			—		—			(401)
Assets	6,099		(3)	272		227		(4)	6,598
Capital investments (5)	931			—		2			933

(1)Operating income (loss) for the E&P segment includes $4 million of restructuring charges for the three months ended September 30, 2019 and $12 million and $9 million of restructuring charges for the nine months ended September 30, 2020 and 2019, respectively. The E&P segment operating income (loss) also includes $3 million for the three and nine months ended September 30, 2020 related to acquisition-related charges.

(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. E&P assets 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 September 30, 2020 and 2019, other assets included approximately $95 million and $29 million, respectively, in cash and cash equivalents, $74 million and $84 million in right-of-use lease assets, respectively, $18 million and $31 million, respectively, in property, plant and equipment, $10 million and $9 million, respectively, in unamortized debt expense, $5 million and $7 million, respectively, in a non-qualified retirement plan and $3 million and $7 million in prepayments, respectively. Additionally, the September 30, 2019 other asset balance includes $61 million in income taxes receivable and the September 30, 2020 other asset balance includes $7 million in account receivable assets.

(5)Capital investments include decreases of $7 million and $53 million for the three months ended September 30, 2020 and 2019, respectively, and increases of $1 million and $52 million for the nine months ended September 30, 2020 and 2019, respectively, relating to the change in accrued expenditures between years.