SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2024

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 2023 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		Total Reportable Segments		Other		Total
Three months ended March 31, 2024	(in millions)
Revenues from external customers	$	838		$	579	$	1,417	$	—	$	1,417
Intersegment revenues	(14)			798		784		—		784
Depreciation, depletion and amortization expense	261			1		262		—		262
Impairments	2,093			—		2,093		—		2,093
Operating income (loss)	(2,061)			4		(2,057)		—		(2,057)
Interest expense (1)	35			—		35		—		35
Gain on derivatives	126			—		126		—		126
Other income, net	1			—		1		—		1
Benefit for income taxes (1)	(430)			—		(430)		—		(430)
Assets	9,856		(2)	391		10,247		151		10,398
Capital investments (3)	537			—		537		1		538
Three months ended March 31, 2023
Revenues from external customers	$	1,439		$	679	$	2,118	$	—	$	2,118
Intersegment revenues	(10)			1,362		1,352		—		1,352
Depreciation, depletion and amortization expense	312			1		313		—		313
Operating income	578			28		606		—		606
Interest expense (1)	36			—		36		—		36
Gain on derivatives	1,401			—		1,401		—		1,401
Loss on early extinguishment of debt	—			—		—		(19)		(19)
Other loss, net	(1)			—		(1)		—		(1)
Provision for income taxes (1)	12			—		12		—		12
Assets	12,260		(2)	552		12,812		125		12,937
Capital investments (3)	664			—		664		1		665

(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 an increase of $14 million and a decrease $6 million for the three months ended March 31, 2024 and March 31, 2023, 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 as of March 31, 2024 and 2023:

	As of March 31,
(in millions)	2024		2023
Cash and cash equivalents	$	29	$	3
Accounts receivable	—		1
Prepayments	15		12
Other current assets	1		—
Property, plant and equipment	23		19
Unamortized debt expense	14		18
Right-of-use lease assets	47		55
Non-qualified retirement plan	2		2
Other long-term assets (1)	20		15
	$	151	$	125

(1)Consists primarily of costs associated with the development of the Company’s enterprise resource technology as of March 31, 2024 and residual assets associated with the Company’s pension plan as of March 31, 2023, respectively.