Segment Information (Tables)

9 Months Ended

Sep. 30, 2021

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 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 September 30, 2021	(in millions)
Revenues from external customers	$	1,179		$	419	$	—	$	1,598
Intersegment revenues	(14)			947		—		933
Depreciation, depletion and amortization expense	136			2		—		138
Impairments	6			—		—		6
Operating income	628		(1)	8		—		636
Interest expense (2)	34			—		—		34
Loss on derivatives	(2,398)			—		(1)		(2,399)
Loss on extinguishment of debt	—			—		(59)		(59)
Other loss, net	(1)			—		—		(1)

Assets	8,572		(3)	546		123		9,241
Capital investments (4)	291			—		—		291

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		4,157
Capital investments (4)	223			—		—		223


	E&P			Marketing		Other		Total

Nine months ended September 30, 2021	(in millions)
Revenues from external customers	$	2,616		$	1,104	$	—	$	3,720
Intersegment revenues	(42)			2,242		—		2,200
Depreciation, depletion and amortization expense	327			7		—		334
Impairments	6			—		—		6
Operating income	1,209		(1)	21		—		1,230
Interest expense (2)	95			—		—		95
Loss on derivatives	(3,461)			—		—		(3,461)
Loss on early extinguishment of debt	—			—		(59)		(59)
Other loss, net	(1)			—		—		(1)

Assets	8,572		(3)	546		123		9,241
Capital investments (4)	816			—		—		816

Nine months ended September 30, 2020
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
Benefit from income taxes (2)	406			—		—		406
Assets	3,705		(3)	240		212		4,157
Capital investments (4)	705			—		—		705

(1)Operating income (loss) for the E&P segment includes $7 million and $12 million of restructuring charges for the nine months ended September 30, 2021 and 2020, respectively. The E&P segment operating income (loss) also includes $35 million and $3 million for the three months ended September 30, 2021 and 2020, respectively, and $39 million and $3 million for the nine months ended September 30, 2021 and 2020, respectively, for merger-related expenses.

(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 includes an increase of $34 million and a decrease of $7 million for the three months ended September 30, 2021 and 2020, respectively, and increases of $63 million and $1 million for the nine months ended September 30, 2021 and 2020, respectively, relating to the change in accrued expenditures between periods.

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


	As of September 30,
(in millions)	2021		2020
Cash and cash equivalents	$	12	$	95
Accounts receivable	4		7


Prepayments	13		3
Property, plant and equipment	12		18
Unamortized debt expense	10		10
Right-of-use lease assets	67		74
Non-qualified retirement plan	4		5
Long-term hedging asset (interest rate swaps)	1		—
	$	123	$	212