Segment Information (Tables)

6 Months Ended

Jun. 30, 2023

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 2022 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, 2023	(in millions)
Revenues from external customers	$	794		$	475	$	—	$	1,269
Intersegment revenues	(17)			756		—		739
Depreciation, depletion and amortization expense	326			2		—		328

Operating income (loss)	(70)			13		—		(57)
Interest expense (1)	34			—		—		34
Gain on derivatives	317			—		—		317


Benefit for income taxes (1)	(5)			—		—		(5)
Assets	12,413		(2)	438		150		13,001
Capital investments (3)	593			—		2		595

Three months ended June 30, 2022
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		(4)	11		—		2,131
Interest expense (1)	48			—		—		48
Loss on derivatives	(879)			—		—		(879)
Loss on early extinguishment of debt	—			—		(4)		(4)
Other loss, net	—			(1)		—		(1)
Provision from income taxes (1)	26			—		—		26
Assets	11,115		(2)	1,664		153		12,932
Capital investments (3)	585			—		—		585


	Exploration and Production			Marketing		Other		Total

Six months ended June 30, 2023	(in millions)
Revenues from external customers	$	2,233		$	1,154	$	—	$	3,387
Intersegment revenues	(27)			2,118		—		2,091
Depreciation, depletion and amortization expense	638			3		—		641

Operating income	508			41		—		549
Interest expense (1)	70			—		—		70
Gain on derivatives	1,718			—		—		1,718
Loss on extinguishment of debt	—			—		(19)		(19)
Other loss, net	(1)			—		—		(1)
Provision for income taxes (1)	7			—		—		7
Assets	12,413		(2)	438		150		13,001
Capital investments (3)	1,257			—		3		1,260

Six months ended June 30, 2022
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		(4)	32		—		3,430
Interest expense (1)	89			—		—		89
Loss on derivatives	(4,804)			—		(2)		(4,806)
Loss on early extinguishment of debt	—			—		(6)		(6)
Other loss, net	—			(1)		—		(1)
Provision from income taxes (1)	30			—		—		30
Assets	11,115		(2)	1,664		153		12,932
Capital investments (3)	1,129			—		—		1,129

(1)Interest expense and provision (benefit) for income taxes by segment is an allocation of corporate amounts as they are incurred at the corporate level.

(2)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.

(3)Capital investments include a decrease of $22 million and an increase of $34 million for the three months ended June 30, 2023 and June 30, 2022, respectively, and a decrease of $28 million and an increase of $77 million for the six months ended June 30, 2023 and June 30, 2022, respectively, relating to the change in accrued expenditures between periods.

(4)The E&P segment operating income includes $2 million and $27 million of merger-related expenses related to the Indigo and GEPH Mergers for the three and six months ended June 30, 2022, respectively.

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, 2023 and 2022:


	As of June 30,
(in millions)	2023			2022
Cash and cash equivalents	$	25		$	50
Accounts receivable	1			1


Prepayments	11			11
Property, plant and equipment	21			9
Unamortized debt expense	17			19
Right-of-use lease assets	53			60
Non-qualified retirement plan	3			3

Other long-term assets	19		(1)	—
	$	150		$	153

(1)Consists primarily of residual assets associated with the Company’s pension plan. See Note 13 for discussion on the Company’s pension plan.