Segment Information

12 Months Ended

Dec. 31, 2023

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 operations. 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. 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		Total Reportable Segments		Other		Total
2023
Revenues from external customers	$	4,167		$	2,355	$	6,522	$	—	$	6,522
Intersegment revenues	(58)			3,922		3,864		—		3,864
Depreciation, depletion and amortization expense	1,302			5		1,307		—		1,307
Impairments	1,710			—		1,710		—		1,710
Operating income (loss)	(1,061)			92		(969)		(5)		(974)
Interest expense (1)	142			—		142		—		142
Gain on derivatives	2,433			—		2,433		—		2,433
Loss on early extinguishment of debt	—			—		—		(19)		(19)
Other income, net	2			—		2		—		2
Benefit from income taxes (1)	(257)			—		(257)		—		(257)
Assets	11,253		(2)	591		11,844		147		11,991
Capital investments (3)	2,122			—		2,122		9		2,131

(in millions)	Exploration and Production			Marketing		Total Reportable Segments		Other		Total
2022
Revenues from external customers	$	10,583		$	4,419	$	15,002	$	—	$	15,002
Intersegment revenues	(6)			10,102		10,096		—		10,096
Depreciation, depletion and amortization expense	1,169			5		1,174		—		1,174
Operating income	7,253		(4)	101		7,354		—		7,354
Interest expense (1)	184			—		184		—		184
Loss on derivatives	(5,257)			—		(5,257)		(2)		(5,259)
Loss on early extinguishment of debt	—			—		—		(14)		(14)
Other income, net	3			—		3		—		3
Provision for income taxes (1)	51			—		51		—		51
Assets	11,473		(2)	1,274		12,747		179		12,926
Capital investments (3)	2,196			—		2,196		13		2,209
2021
Revenues from external customers	$	4,701		$	1,966	$	6,667	$	—	$	6,667
Intersegment revenues	(61)			4,223		4,162		—		4,162
Depreciation, depletion and amortization expense	537			9		546		—		546
Impairments	6			—		6		—		6
Operating income	2,583		(5)	52		2,635		—		2,635
Interest expense (1)	136			—		136		—		136
Gain (loss) on derivatives	(2,437)			—		(2,437)		1		(2,436)
Loss on early extinguishment of debt	—			—		—		(93)		(93)
Other income, net	5			—		5		—		5
Provision for income taxes (1)	—			—		—		—		—
Assets	10,767		(2)	956		11,723		125		11,848
Capital investments (3)	1,107			—		1,107		1		1,108

(1)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.

(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 $44 million for 2023, an increase of $88 million for 2022 and an increase of $70 million for 2021 related to the change in accrued expenditures between years. 

(4)Operating income for the E&P segment includes $27 million of acquisition-related charges for the year ended December 31, 2022.

(5)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.

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, 2023, 2022 and 2021:

	For the years ended December 31,
(in millions)	2023		2022		2021
Cash and cash equivalents	$	21	$	50	$	28
Accounts receivable	—		1		—
Prepayments	18		14		6
Other current assets	2		—		—
Property, plant and equipment	24		19		12
Unamortized debt expense	15		19		10
Right-of-use lease assets	49		57		65
Non-qualified retirement plan	3		3		4
Long term assets	15		16		—
	$	147	$	179	$	125

Included in intersegment revenues of the Marketing segment are $3.9 billion, $10.1 billion and $4.2 billion for 2023, 2022 and 2021, 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.