SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2022

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. The Company’s E&P segment is comprised of gas and oil properties which are managed as a whole rather than through discrete operating segments. Operational information for the Company’s E&P segment is tracked by geographic area; however, financial performance and allocation of resources are assessed at the segment level without regard to geographic area. 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 2021 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.

	Exploration and Production			Marketing		Other		Total
Three months ended June 30, 2022	(in millions)
Revenues from external customers	$	2,931		$	1,207	$	—	$	4,138
Intersegment revenues	(2)			2,816		—		2,814
Depreciation, depletion and amortization expense	286			2		—		288
Operating income	2,120		(1)	11		—		2,131
Interest expense (2)	48			—		—		48
Loss on derivatives	(879)			—		—		(879)
Loss on extinguishment of debt	—			—		(4)		(4)
Other loss, net	—			(1)		—		(1)
Provision for income taxes (2)	26			—		—		26
Assets	11,115		(3)	1,664		153		12,932
Capital investments (4)	585			—		—		585
Three months ended June 30, 2021
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

	Exploration and Production			Marketing		Other		Total
Six months ended June 30, 2022	(in millions)
Revenues from external customers	$	5,008		$	2,073	$	—	$	7,081
Intersegment revenues	(5)			4,705		—		4,700
Depreciation, depletion and amortization expense	560			3		—		563
Operating income	3,398		(1)	32		—		3,430
Interest expense (2)	89			—		—		89
Loss on derivatives	(4,804)			—		(2)		(4,806)
Loss on extinguishment of debt	—			—		(6)		(6)
Other income, net	—			(1)		—		(1)
Provision for income taxes (2)	30			—		—		30
Assets	11,115		(3)	1,664		153		12,932
Capital investments (4)	1,129			—		—		1,129
Six months ended June 30, 2021
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

(1)Operating income for the E&P segment includes $1 million and $7 million of restructuring charges for the three and six months ended June 30, 2021, respectively. The E&P segment operating income also includes $2 million and $3 million of merger-related expenses for the three months ended June 30, 2022 and 2021, respectively, and $27 million and $4 million for the six months ended June 30, 2022 and 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 an increase of $34 million for the three months ended June 30, 2022 and a decrease of $9 million for the three months ended June 30, 2021 and increases of $77 million and $29 million for the six months ended June 30, 2022 and 2021, 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 June 30, 2022 and 2021:

	As of June 30,
(in millions)	2022		2021
Cash and cash equivalents	$	50	$	2
Accounts receivable	1		3
Prepayments	11		15
Property, plant and equipment	9		14
Unamortized debt expense	19		11
Right-of-use lease assets	60		67
Non-qualified retirement plan	3		4
	$	153	$	116