SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

The Company’s reportable business segments have been identified based on the differences in products or services provided.  Revenues for the E&P segment are derived from the production and sale of natural gas and liquids.  The Marketing segment generates revenue through the marketing of both Company and third-party produced natural gas and liquids volumes.

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 2020 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
Three months ended June 30, 2021	(in millions)
Revenues from external customers	$	718		$	332	$	—	$	1,050
Intersegment revenues	(14)			651		—		637
Depreciation, depletion and amortization expense	97			3		—		100
Operating income	286		(1)	7		—		293
Interest expense (2)	30			—		—		30
Gain (loss) on derivatives	(872)			—		1		(871)
Other loss, net	(1)			—		—		(1)
Assets	4,870		(3)	408		116		5,394
Capital investments (4)	259			—		—		259
Three months ended June 30, 2020
Revenues from external customers	$	223		$	187	$	—	$	410
Intersegment revenues	(12)			202		—		190
Depreciation, depletion and amortization expense	81			3		—		84
Impairments	655			—		—		655
Operating loss	(748)		(1)	(8)		—		(756)
Interest expense (2)	22			—		—		22
Loss on derivatives	(109)			—		—		(109)
Gain on early extinguishment of debt	—			—		7		7
Other income (loss), net	(1)			—		1		—
Assets	4,185		(3)	208		162		4,555
Capital investments (4)	245			—		—		245

	E&P			Marketing		Other		Total
Six months ended June 30, 2021	(in millions)
Revenues from external customers	$	1,437		$	685	$	—	$	2,122
Intersegment revenues	(28)			1,295		—		1,267
Depreciation, depletion and amortization expense	191			5		—		196
Operating income	581		(1)	13		—		594
Interest expense (2)	61			—		—		61
Gain (loss) on derivatives	(1,063)			—		1		(1,062)
Assets	4,870		(3)	408		116		5,394
Capital investments (4)	525			—		—		525
Six months ended June 30, 2020
Revenues from external customers	$	576		$	426	$	—	$	1,002
Intersegment revenues	(21)			511		—		490
Depreciation, depletion and amortization expense	192			5		—		197
Impairments	2,134			—		—		2,134
Operating loss	(2,234)		(1)	(12)		—		(2,246)
Interest expense (2)	41			—		—		41
Gain on derivatives	230			—		—		230
Gain on early extinguishment of debt	—			—		35		35
Other income, net	—			—		1		1
Benefit from income taxes (2)	406			—		—		406
Assets	4,185		(3)	208		162		4,555
Capital investments (4)	482			—		—		482

(1)Operating income (loss) for the E&P segment includes $1 million and $2 million of restructuring charges for the three months ended June 30, 2021 and 2020, respectively, and $7 million and $12 million of restructuring charges for the six months ended June 30, 2021 and 2020, respectively. The E&P segment operating income (loss) also includes $3 million and $4 million of merger-related charges for the three and six months ended June 30, 2021, 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.

(4)Capital investments include a decrease of $9 million for the three months ended June 30, 2021, and increases of $29 million and $8 million for the six months ended June 30, 2021 and 2020, respectively, relating to the change in accrued expenditures between periods. There was no change in the capital accrual for the three months ended June 30, 2020.

The following table presents the breakout of other assets, which represent corporate assets not allocated to segments and assets for non-reportable segments at June 30, 2021 and 2020:

	As of June 30,
(in millions)	2021		2020
Cash and cash equivalents	$	2	$	10
Accounts receivable	3		—
Income taxes receivable	—		31
Prepayments	15		7
Property, plant and equipment	14		21
Unamortized debt expense	11		10
Right-of-use lease assets	67		77
Non-qualified retirement plan	4		5
Other	—		1
	$	116	$	162