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Supplemental Disclosures About Natural Gas, Oil and NGL Producing Activities (unaudited) (Tables)

12 Months Ended

Dec. 31, 2023

Capitalized costs related to our natural gas, oil and NGL producing activities are summarized as follows:


	Successor
	December 31, 2023		December 31, 2022
Natural gas and oil properties:
Proved	$	11,468	$	11,096
Unproved	1,806		2,022
Total	13,274		13,118
Less accumulated depreciation, depletion and amortization	(3,584)		(2,373)
Net capitalized costs	$	9,690	$	10,745

Schedule of exploration expense and cost incurred

Costs incurred in natural gas and oil property acquisition, exploration and development, including capitalized interest and asset retirement costs, are summarized as follows:


	Successor						Predecessor
	Year Ended December 31, 2023		Year Ended December 31, 2022		Period from February 10, 2021 through December 31, 2021		Period from January 1, 2021 through February 9, 2021
Acquisition of properties(a):
Proved properties	$	10	$	2,321	$	2,183	$	—
Unproved properties	52		795		1,121		—
Exploratory costs	15		15		31		—
Development costs	1,721		1,918		717		58
Costs incurred	$	1,798	$	5,049	$	4,052	$	58

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(a) Includes $2.31 billion and $0.79 billion of proved and unproved property acquisitions, respectively, related to our Marcellus Acquisition in 2022. Includes $2.18 billion and $1.10 billion of proved and unproved property acquisitions, respectively, related to our Vine Acquisition in 2021.

Schedule of revenues and expenses

The following table includes revenues and expenses associated directly with our natural gas, oil and NGL producing activities for the periods presented. It does not include any derivative activity, interest costs or indirect general and administrative costs and, therefore, is not necessarily indicative of the contribution to consolidated net operating results of our natural gas, oil and NGL operations.


	Successor						Predecessor
	Year Ended December 31, 2023		Year Ended December 31, 2022		Period from February 10, 2021 through December 31, 2021		Period from January 1, 2021 through February 9, 2021
Natural gas, oil and NGL sales	$	3,547	$	9,892	$	4,401	$	398
Production expenses	(356)		(475)		(297)		(32)
Gathering, processing and transportation expenses	(853)		(1,059)		(780)		(102)
Severance and ad valorem taxes	(167)		(242)		(158)		(18)
Exploration	(27)		(23)		(7)		(2)
Depletion and depreciation	(1,478)		(1,703)		(882)		(64)
Accretion of asset retirement obligations	(16)		(17)		(11)		(1)
Imputed income tax provision(a)	(152)		(1,440)		(535)		(42)
Results of operations from natural gas, oil and NGL producing activities	$	498	$	4,933	$	1,731	$	137

___________________________________________

(a) The imputed income tax provision is hypothetical (at the statutory tax rate) and determined without regard to our deduction for general and administrative expenses, interest costs and other income tax credits and deductions, nor whether the hypothetical tax provision (benefit) will be payable (receivable).

Schedule of changes in estimated reserves

Presented below is a summary of changes in estimated proved reserves for the periods presented:


	Natural Gas	Oil	NGL	Total
	(Bcf)	(MMBbl)	(MMBbl)	(Bcfe)
December 31, 2023
Proved reserves, beginning of period (Successor)	11,369	198.4	73.9	13,002
Extensions, discoveries and other additions	415	—	—	415
Revisions of previous estimates	(325)	—	—	(325)
Production	(1,266)	(7.7)	(3.8)	(1,335)
Sale of reserves-in-place	(563)	(190.7)	(70.1)	(2,127)
Purchase of reserves-in-place	58	—	—	58
Proved reserves, end of period (Successor)	9,688	—	—	9,688
Proved developed reserves:
Beginning of period (Successor)	7,385	157.2	58.9	8,681
End of period (Successor)	6,363	—	—	6,363
Proved undeveloped reserves:
Beginning of period (Successor)	3,984	41.2	15.0	4,321
End of period(a) (Successor)	3,325	—	—	3,325

December 31, 2022
Proved reserves, beginning of period (Successor)	7,824	209.7	82.0	9,573
Extensions, discoveries and other additions	60	2.1	1.5	82
Revisions of previous estimates	1,989	22.5	5.0	2,155
Production	(1,308)	(19.4)	(6.0)	(1,461)
Sale of reserves-in-place	(122)	(16.5)	(8.6)	(273)
Purchase of reserves-in-place	2,926	—	—	2,926
Proved reserves, end of period (Successor)	11,369	198.4	73.9	13,002
Proved developed reserves:
Beginning of period (Successor)	4,246	165.7	61.7	5,610
End of period (Successor)	7,385	157.2	58.9	8,681
Proved undeveloped reserves:
Beginning of period (Successor)	3,578	44.0	20.3	3,963
End of period(a) (Successor)	3,984	41.2	15.0	4,321


	Natural Gas	Oil	NGL	Total
	(Bcf)	(MMBbl)	(MMBbl)	(Bcfe)


December 31, 2021
Proved reserves, beginning of period (Predecessor)	3,530	161.3	52.0	4,809
Extensions, discoveries and other additions	1,744	41.0	16.9	2,091
Revisions of previous estimates	1,522	33.3	21.1	1,848
Production	(807)	(25.9)	(8.0)	(1,010)
Sale of reserves-in-place	—	—	—	—
Purchase of reserves-in-place	1,835	—	—	1,835
Proved reserves, end of period (Successor)	7,824	209.7	82.0	9,573
Proved developed reserves:
Beginning of period (Predecessor)	3,196	158.1	51.4	4,452
End of period (Successor)	4,246	165.7	61.7	5,610
Proved undeveloped reserves:
Beginning of period (Predecessor)	334	3.2	0.6	357
End of period(a) (Successor)	3,578	44.0	20.3	3,963

___________________________________________

(a) As of December 31, 2023, 2022 and 2021, there were no PUDs that had remained undeveloped for five years or more.

Schedule of future net cash flows relating to proved natural gas, oil and NGL reserves based on the standardized measure

The following summary sets forth our future net cash flows relating to proved natural gas, oil and NGL reserves based on the standardized measure:


	Years Ended December 31,
	2023			2022			2021
Future cash inflows	$	14,659	(a)	$	76,626	(b)	$	33,700	(c)
Future production costs	(3,326)			(10,177)			(6,735)
Future development costs	(2,779)		(d)	(5,343)		(e)	(3,687)		(f)
Future income tax provisions	(174)			(10,440)			(2,254)
Future net cash flows	8,380			50,666			21,024
Less effect of a 10% discount factor	(3,903)			(24,361)			(8,737)
Standardized measure of discounted future net cash flows	$	4,477		$	26,305		$	12,287

___________________________________________

(a) Calculated using prices of $2.64 per Mcf of natural gas, before basis differential adjustments.

(b) Calculated using prices of $6.36 per Mcf of natural gas, $93.67 per Bbl of oil and $43.58 per Bbl of NGL, before basis differential adjustments.

(c) Calculated using prices of $3.60 per Mcf of natural gas, $66.56 per Bbl of oil and $35.81 per Bbl of NGL, before basis differential adjustments.

(d) Included approximately $730 million of future plugging and abandonment costs as of December 31, 2023.

(e) Included approximately $979 million of future plugging and abandonment costs as of December 31, 2022.

(f) Included approximately $846 million of future plugging and abandonment costs as of December 31, 2021.

Sources of change in standardized measure of discounted future net cash flow

The principal sources of change in the standardized measure of discounted future net cash flows are as follows:


	Years Ended December 31,
	2023		2022		2021
Standardized measure, beginning of period(a)	$	26,305	$	12,287	$	3,086
Sales of natural gas and oil produced, net of production costs and gathering, processing and transportation(b)	(2,171)		(8,116)		(3,414)
Net changes in prices and production costs	(23,535)		14,256		6,674
Extensions and discoveries, net of production and development costs	182		251		2,834
Changes in estimated future development costs	346		(1,512)		(459)
Previously estimated development costs incurred during the period	818		690		130
Revisions of previous quantity estimates	(205)		6,697		2,034
Purchase of reserves-in-place	77		7,047		2,807
Sales of reserves-in-place	(7,158)		(402)		—
Accretion of discount	3,270		1,371		309
Net change in income taxes	6,301		(4,972)		(1,423)
Changes in production rates and other	247		(1,292)		(291)
Standardized measure, end of period(a)	$	4,477	$	26,305	$	12,287

___________________________________________

(a) The impact of cash flow hedges has not been included in any of the periods presented.

(b) Excludes gains and losses on derivatives. Production costs includes severance and ad valorem taxes.

- 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.

+ References + Details

- 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.

+ References + Details