Segment Information

12 Months Ended

Dec. 31, 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.  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 (loss), interest expense, gain (loss) on derivatives, gain (loss) 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.

(in millions)	Exploration and Production			Marketing		Other		Total
2021
Revenues from external customers	$	4,701		$	1,966	$	—	$	6,667
Intersegment revenues	(61)			4,223		—		4,162
Depreciation, depletion and amortization expense	537			9		—		546
Impairments	6			—		—		6
Operating income	2,583		(1)	52		—		2,635
Interest expense (2)	136			—		—		136
Gain (loss) on derivatives	(2,437)			—		1		(2,436)
Loss on early extinguishment of debt	—			—		(93)		(93)
Other income, net	5			—		—		5
Provision for income taxes (2)	—			—		—		—
Assets	10,767		(3)	956		125		11,848
Capital investments (4)	1,107			—		1		1,108

(in millions)	Exploration and Production			Marketing			Other		Total
2020
Revenues from external customers	$	1,391		$	917		$	—	$	2,308
Intersegment revenues	(43)			1,228			—		1,185
Depreciation, depletion and amortization expense	348			9			—		357
Impairments	2,830			—			—		2,830
Operating loss	(2,864)		(5)	(7)			—		(2,871)
Interest expense (2)	94			—			—		94
Gain on derivatives	224			—			—		224
Gain on early extinguishment of debt	—			—			35		35
Other income, net	—			—			1		1
Provision for income taxes (2)	407			—			—		407
Assets	4,654		(3)	381			125		5,160
Capital investments (4)	899			—			—		899
2019
Revenues from external customers	$	1,740		$	1,298		$	—	$	3,038
Intersegment revenues	(37)			1,552			—		1,515
Depreciation, depletion and amortization expense	462			9			—		471
Impairments	13			3		(7)	—		16
Operating income (loss)	283		(6)	(13)			—		270
Interest expense (2)	65			—			—		65
Gain on derivatives	274			—			—		274
Gain on early extinguishment of debt	—			—			8		8
Other income (loss)	(9)			—			2		(7)
Benefit from income taxes (2)	(411)			—			—		(411)
Assets	6,235		(3)	314			168		6,717
Capital investments (4)	1,138			—			2		1,140

(1)Operating income for the E&P segment includes $7 million of restructuring charges and $76 million of acquisition-related charges for the year ended December 31, 2021.

(2)Interest expense and the provision (benefit) for income taxes by segment are 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. This also includes deferred tax assets which are an allocation of corporate amounts as they are incurred at the corporate level.

(4)Capital investments include an increase of $70 million for 2021, a decrease of $3 million for 2020 and an increase of $34 million for 2019 related to the change in accrued expenditures between years. 

(5)Operating income for the E&P segment includes $16 million of restructuring charges and $41 million of acquisition-related charges for the year ended December 31, 2020.

(6)Operating income for the E&P segment includes $11 million of restructuring charges for the year ended December 31, 2019.

(7)Marketing includes a $3 million non-cash impairment related to certain non-core midstream gathering assets at December 31, 2019.

The following table presents the breakout of other assets, which represent corporate assets not allocated to segments and assets for non-reportable segments for the years ended December 31, 2021, 2020 and 2019:

	For the years ended December 31,
(in millions)	2021		2020		2019
Cash and cash equivalents	$	28	$	13	$	5
Accounts receivable	—		1		—
Income taxes receivable	—		—		30
Prepayments	6		6		8
Property, plant and equipment	12		16		27
Unamortized debt expense	10		11		11
Right-of-use lease assets	65		72		80
Non-qualified retirement plan	4		6		7
	$	125	$	125	$	168

Included in intersegment revenues of the Marketing segment are $4.2 billion, $1.2 billion and $1.6 billion for 2021, 2020 and 2019, respectively, for marketing of the Company’s E&P sales.  Corporate assets include cash and cash equivalents, furniture and fixtures and other costs.  Corporate general and administrative costs, depreciation expense and taxes other than income are allocated to the segments.