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SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Proved Developed and Undeveloped Oil and Gas Reserve Quantities

The following tables illustrate the Company's net proved reserves, including changes, and proved developed and proved undeveloped reserves for the periods indicated, as estimated by the Company's engineering staff. All reserves are located within the continental U.S.


	Oil (Mbbl)	Natural Gas (Bcf)	NGLs (Mbbl)	Total (MBOE)
December 31, 2018	120	11,604	—	1,934,136
Revision of prior estimates(1)	(48)	48	—	7,834
Extensions, discoveries and other additions(2)	—	2,116	—	352,731
Production	—	(865)	—	(144,229)

Sales of reserves in place	(50)	—	—	(50)
December 31, 2019	22	12,903	—	2,150,422
Revision of prior estimates(3)	(3)	(347)	—	(57,808)
Extensions, discoveries and other additions(2)	—	1,974	—	328,976
Production	(4)	(858)	—	(142,954)


December 31, 2020	15	13,672	—	2,278,636
Revision of prior estimates(4)	10,837	(538)	16,797	(61,967)
Extensions, discoveries and other additions(2)	2,633	973	6,100	170,988
Production	(8,150)	(911)	(7,104)	(167,113)
Purchases of reserves in place(5)	184,094	1,699	204,822	672,038

December 31, 2021	189,429	14,895	220,615	2,892,582
Proved Developed Reserves
December 31, 2018	107	7,402	—	1,233,790
December 31, 2019	22	8,056	—	1,342,589
December 31, 2020	15	8,608	—	1,434,714
December 31, 2021	153,010	10,691	193,598	2,128,439
Proved Undeveloped Reserves
December 31, 2018	13	4,202	—	700,346
December 31, 2019	—	4,847	—	807,833
December 31, 2020	—	5,064	—	843,922
December 31, 2021	36,419	4,204	27,017	764,143

_______________________________________________________________________________

(1)The net upward revision of 8 MMBOE was primarily due to a net upward performance revision of 11 MMBOE, partially offset by a downward revision of 3 MMBOE associated with PUD reclassifications as a result of the five-year limitation. The net upward performance revision of 11 MMBOE was primarily due to an upward revision of 69 MMBOE associated with the Company's PUD reserves due to performance revisions and the drilling of longer lateral length wells, partially offset by a downward performance revision of 58 MMBOE related to certain proved developed producing properties.

(2)Extensions, discoveries and other additions were primarily related to drilling activity in the Dimock field located in northeast Pennsylvania. The Company added 152 MMBOE, 329 MMBOE and 353 MMBOE of proved reserves in this field in 2021, 2020 and 2019, respectively.

(3)The net downward revision of 58 MMBOE was primarily due to a net downward performance revision of 41 MMBOE and a downward revision of 11 MMBOE associated with PUD reclassifications as a result of the five-year limitation. The net downward performance revision of 41 MMBOE was primarily due to a downward performance revision of 61 MMBOE related to certain proved developed producing properties, partially offset by an upward revision of 21 MMBOE associated with the Company’s PUD reserves due to performance revisions and the drilling of longer lateral length wells.

(4)The net downward revision of 62 MMBOE was primarily related to 97 MMBOE downward performance revision coupled with a 6 MMBOE downward revision associated with PUD reclassifications as a result of the 5 year rule

which was partially offset by a 42 MMBOE positive pricing and cost revision. The net downward performance revision of 97 MMBOE, was primarily due to 57 MMBOE performance revision related to certain proved developed reserves and a 40 MMBOE downward performance revision associate with proved undeveloped reserves.

(5)Purchases of reserves in place were primarily related to the acquisition of Cimarex’s oil and gas properties in connection with the Merger. The reserves are primarily related to the Wolfcamp Shale in the Permian Basin and Woodford Shale in the Anadarko Basin.

Capitalized Costs Relating to Oil and Gas Producing Activities Disclosure

Capitalized costs relating to oil and gas producing activities and related accumulated depreciation, depletion and amortization were as follows:


	December 31,
(In millions)	2021		2020		2019
Aggregate capitalized costs relating to oil and gas producing activities	$	20,655	$	7,154	$	6,676
Aggregate accumulated depreciation, depletion and amortization	(3,775)		(3,149)		(2,861)
Net capitalized costs	$	16,880	$	4,005	$	3,815

Cost Incurred in Oil and Gas Property Acquisition, Exploration, and Development Activities Disclosure

Costs incurred in property acquisition, exploration and development activities were as follows:


	Year Ended December 31,
(In millions)	2021(1)		2020		2019
Property acquisition costs, proved	$	7,472	$	—	$	—
Property acquisition costs, unproved	5,386		6		6
Exploration costs	18		15		20
Development costs	688		547		761
Total costs	$	13,564	$	568	$	787

_______________________________________________________________________________

(1)These amounts include the fair value of the proved and unproved properties recorded in the purchase price allocation with respect to the Merger. The purchase was funded through the issuance of the Company’s common stock.

Oil and Gas, Average Sale Price and Production Cost

The average prices (adjusted for basis and quality differentials) related to proved reserves are as follows:


	Year Ended December 31,
	2021		2020		2019
Natural gas	$	2.93	$	1.64	$	2.35
Oil	$	65.40	$	32.53	$	55.80
NGLs	$	25.74	$	—	$	—

Standardized Measure of Discounted Future Cash Flows Relating to Proved Reserves Disclosure

Standardized Measure is as follows:


	Year Ended December 31,
(In millions)	2021		2020		2019
Future cash inflows	$	60,908	$	22,385	$	30,302
Future production costs	(18,241)		(10,784)		(10,039)
Future development costs(1)	(2,449)		(1,612)		(2,006)
Future income tax expenses	(8,535)		(2,176)		(4,043)
Future net cash flows	31,683		7,813		14,214
10% annual discount for estimated timing of cash flows	(18,399)		(4,751)		(8,353)
Standardized measure of discounted future net cash flows	$	13,284	$	3,062	$	5,861

______________________________________________________________________________

(1)Includes $390 million, $224 million and $213 million in plugging and abandonment costs for the years ended December 31, 2021, 2020 and 2019, respectively.

Schedule of Changes in Standardized Measure of Discounted Future Net Cash Flows

The following is an analysis of the changes in the Standardized Measure:


	Year Ended December 31,
(In millions)	2021		2020		2019
Beginning of year	$	3,062	$	5,861	$	6,483
Discoveries and extensions, net of related future costs	800		311		1,076
Net changes in prices and production costs	9,573		(4,326)		(1,510)
Accretion of discount	551		750		813
Revisions of previous quantity estimates	467		(108)		28
Timing and other	(161)		6		(192)
Changes in estimated future development costs	(103)		—		—
Development costs incurred	497		501		469
Sales and transfers, net of production costs	(2,801)		(746)		(1,317)
Sales of reserves in place	(1)		—		(1)
Purchases of reserves in place	6,477		—		—
Net change in income taxes	(5,077)		813		12
End of year	$	13,284	$	3,062	$	5,861

- Definition

Tabular disclosure of the net quantities of an enterprise's interests in proved developed and undeveloped reserves of (a) crude oil (including condensate and natural gas liquids), (b) natural gas (including coal bed methane), (c) synthetic oil, (d) synthetic gas, and (e) other nonrenewable natural resources that are intended to be upgraded during the period as of the beginning of the period, changes in quantities during the period, and as of the end of the period.

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- Definition

Tabular disclosure of the future net cash flows relating to proved oil and gas reserves and oil and gas subject to purchase under long-term agreements in which the enterprise participates in the operation of the properties on which the oil and gas is located or otherwise serves as the producer. This information is presented in aggregate and for each geographic area for which reserve quantities are disclosed.

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