SEGMENT INFORMATION (Tables)

9 Months Ended

Sep. 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 September 30, 2023	(in millions)
Revenues from external customers	$	890		$	553	$	—	$	1,443
Intersegment revenues	(17)			826		—		809
Depreciation, depletion and amortization expense	337			1		—		338

Operating income (loss)	(18)			25		—		7
Interest expense (1)	36			—		—		36
Gain on derivatives	93			—		—		93

Other income, net	1			—		1		2
Provision for income taxes (1)	21			—		—		21
Assets	12,350		(2)	483		140		12,973
Capital investments (3)	452			—		2		454

Three months ended September 30, 2022
Revenues from external customers	$	3,243		$	1,298	$	—	$	4,541
Intersegment revenues	4			3,138		—		3,142
Depreciation, depletion and amortization expense	297			1		—		298

Operating income	2,386			28		—		2,414
Interest expense (1)	50			—		—		50
Loss on derivatives	(1,903)			—		—		(1,903)


Provision for income taxes (1)	11			—		—		11
Assets	11,359		(2)	1,633		112		13,104
Capital investments (3)	540			—		3		543


	Exploration and Production			Marketing		Other		Total

Nine months ended September 30, 2023	(in millions)
Revenues from external customers	$	3,123		$	1,707	$	—	$	4,830
Intersegment revenues	(44)			2,944		—		2,900
Depreciation, depletion and amortization expense	975			4		—		979

Operating income	490			66		—		556
Interest expense (1)	106			—		—		106
Gain on derivatives	1,811			—		—		1,811
Loss on extinguishment of debt	—			—		(19)		(19)
Other income, net	—			—		1		1
Provision for income taxes (1)	28			—		—		28
Assets	12,350		(2)	483		140		12,973
Capital investments (3)	1,709			—		5		1,714

Nine months ended September 30, 2022
Revenues from external customers	$	8,251		$	3,371	$	—	$	11,622
Intersegment revenues	(1)			7,843		—		7,842
Depreciation, depletion and amortization expense	857			4		—		861

Operating income	5,784		(4)	60		—		5,844
Interest expense (1)	139			—		—		139
Loss on derivatives	(6,707)			—		(2)		(6,709)
Loss on early extinguishment of debt	—			—		(6)		(6)
Other loss, net	—			(1)		—		(1)
Provision for income taxes (1)	41			—		—		41
Assets	11,359		(2)	1,633		112		13,104
Capital investments (3)	1,669			—		3		1,672

(1)Interest expense and provision 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 decreases of $94 million and $33 million for the three months ended September 30, 2023 and September 30, 2022, respectively, and a decrease of $122 million and an increase of $44 million for the nine months ended September 30, 2023 and September 30, 2022, respectively, relating to the change in accrued expenditures between periods.

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

The following table presents the breakout of other assets, which represent corporate assets not allocated to segments and assets for non-reportable segments as of September 30, 2023 and 2022:


	As of September 30,
(in millions)	2023			2022
Cash and cash equivalents	$	26		$	11
Accounts receivable	1			1


Prepayments	10			8
Other current assets	2			—
Property, plant and equipment	21			10
Unamortized debt expense	16			21
Right-of-use lease assets	51			58
Non-qualified retirement plan	3			3

Other long-term assets	10		(1)	—
	$	140		$	112

(1)Consists primarily of costs associated with the development of the Company’s enterprise resource technology.