Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 10, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-1513 | ||
Entity Registrant Name | Marathon Oil Corporation | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 25-0996816 | ||
Entity Address, Address Line One | 990 Town and Country Boulevard, | ||
Entity Address, City or Town | Houston, | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77024-2217 | ||
City Area Code | (713) | ||
Local Phone Number | 629-6600 | ||
Title of 12(b) Security | Common Stock, par value $1.00 | ||
Trading Symbol | MRO | ||
Security Exchange Name | NYSE | ||
Entity Well Known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 15,437 | ||
Entity Common Stock, Shares Outstanding | 629,654,204 | ||
Documents Incorporated by Reference | Portions of the registrant’s proxy statement relating to its 2023 Annual Meeting of Stockholders, to be filed with the Securities and Exchange Commission pursuant to Regulation 14A under the Securities Exchange Act of 1934, are incorporated by reference to the extent set forth in Part III, Items 10-14 of this report. | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2022 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000101778 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 238 |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Houston, Texas |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues and other income: | |||
Revenues from contracts with customers | $ 7,540 | $ 5,601 | $ 3,097 |
Net gain (loss) on commodity derivatives | (114) | (383) | 116 |
Income (loss) from equity method investments | 613 | 253 | (161) |
Net gain (loss) on disposal of assets | (38) | (19) | 9 |
Other income | 35 | 15 | 25 |
Total revenues and other income | 8,036 | 5,467 | 3,086 |
Costs and expenses: | |||
Production | 690 | 534 | 555 |
Shipping, handling and other operating | 733 | 727 | 596 |
Exploration | 110 | 136 | 181 |
Depreciation, depletion and amortization | 1,753 | 2,066 | 2,316 |
Impairments | 7 | 60 | 144 |
Taxes other than income | 484 | 345 | 200 |
General and administrative | 308 | 291 | 274 |
Total costs and expenses | 4,085 | 4,159 | 4,266 |
Income (loss) from operations | 3,951 | 1,308 | (1,180) |
Net interest and other | (188) | (188) | (256) |
Other net periodic benefit (costs) credits | 16 | 5 | (1) |
Loss on early extinguishment of debt | 0 | (121) | (28) |
Income (loss) before income taxes | 3,779 | 1,004 | (1,465) |
Provision (benefit) for income taxes | 167 | 58 | (14) |
Net income (loss) | $ 3,612 | $ 946 | $ (1,451) |
Earnings Per Share [Abstract] | |||
Basic (in dollars per share) | $ 5.27 | $ 1.20 | $ (1.83) |
Diluted (in dollars per share) | $ 5.26 | $ 1.20 | $ (1.83) |
Weighted average common shares outstanding: | |||
Basic (in shares) | 685 | 787 | 792 |
Diluted (in shares) | 687 | 788 | 792 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 3,612 | $ 946 | $ (1,451) |
Other comprehensive income (loss), net of tax | |||
Change in actuarial gain (loss) and other for postretirement and postemployment plans | 3 | 14 | (30) |
Change in derivative hedges unrecognized gain (loss) | 22 | 23 | (2) |
Reclassification of de-designated forward interest rate swaps | 0 | (28) | 0 |
Other | (1) | 0 | 0 |
Other comprehensive income (loss) | 24 | 9 | (32) |
Comprehensive income (loss) | $ 3,636 | $ 955 | $ (1,483) |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 334 | $ 580 |
Receivables, net | 1,146 | 1,142 |
Inventories | 125 | 77 |
Other current assets | 66 | 22 |
Total current assets | 1,671 | 1,821 |
Equity method investments | 577 | 450 |
Property, plant and equipment, less accumulated depreciation, depletion and amortization of $23,876 and $22,412 | 17,377 | 14,499 |
Other noncurrent assets | 315 | 224 |
Total assets | 19,940 | 16,994 |
Current liabilities: | ||
Accounts payable | 1,279 | 1,110 |
Payroll and benefits payable | 90 | 74 |
Accrued taxes | 171 | 157 |
Other current liabilities | 364 | 260 |
Long-term debt due within one year | 402 | 36 |
Total current liabilities | 2,306 | 1,637 |
Long-term debt | 5,521 | 3,978 |
Deferred tax liabilities | 167 | 136 |
Defined benefit postretirement plan obligations | 100 | 137 |
Asset retirement obligations | 295 | 288 |
Deferred credits and other liabilities | 154 | 132 |
Total liabilities | 8,543 | 6,308 |
Commitments and contingencies (Note 25) | ||
Stockholders’ Equity | ||
Preferred stock – no shares issued or outstanding (no par value, 26 million shares authorized) | 0 | 0 |
Common stock: | ||
Issued – 937 million shares (par value $1 per share, 1.925 billion shares authorized at December 31, 2022 and December 31, 2021) | 937 | 937 |
Held in treasury, at cost – 304 million shares and 194 million shares | (7,512) | (4,825) |
Additional paid-in capital | 7,203 | 7,221 |
Retained earnings | 10,663 | 7,271 |
Accumulated other comprehensive income | 106 | 82 |
Total stockholders’ equity | 11,397 | 10,686 |
Total liabilities and stockholders’ equity | $ 19,940 | $ 16,994 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Property, plant and equipment, accumulated depreciation | $ 23,876 | $ 22,412 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Preferred stock, no par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 26,000,000 | 26,000,000 |
Common stock, shares issued (in shares) | 937,000,000 | 937,000,000 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 1,925,000,000 | 1,925,000,000 |
Held in treasury, shares (in shares) | 304,000,000 | 194,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating activities: | |||
Net income (loss) | $ 3,612 | $ 946 | $ (1,451) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation, depletion and amortization | 1,753 | 2,066 | 2,316 |
Impairments | 7 | 60 | 144 |
Exploratory dry well costs and unproved property impairments | 101 | 125 | 159 |
Net (gain) loss on disposal of assets | 38 | 19 | (9) |
Loss on early extinguishment of debt | 0 | 121 | 28 |
Deferred income taxes | (17) | (27) | (22) |
Unrealized (gain) loss on derivative instruments, net | (18) | (16) | 27 |
Pension and other post retirement benefits, net | (35) | (31) | (43) |
Stock-based compensation | 38 | 40 | 57 |
Equity method investments, net | (139) | (76) | 210 |
Changes in: | |||
Current receivables | 9 | (389) | 367 |
Inventories | (45) | (1) | (4) |
Current accounts payable and accrued liabilities | 101 | 369 | (381) |
Other current assets and liabilities | (47) | 46 | 75 |
All other operating, net | 70 | (13) | 0 |
Net cash provided by operating activities | 5,428 | 3,239 | 1,473 |
Investing activities: | |||
Additions to property, plant and equipment | (1,450) | (1,046) | (1,343) |
Additions to other assets | 0 | 0 | 15 |
Acquisitions, net of cash acquired | (3,177) | (47) | (1) |
Disposal of assets, net of cash transferred to the buyer | 11 | 22 | 18 |
Equity method investments - return of capital | 12 | 61 | 7 |
All other investing, net | (1) | 0 | 1 |
Net cash used in investing activities | (4,605) | (1,010) | (1,303) |
Financing activities: | |||
Borrowings | 1,500 | 0 | 400 |
Proceeds from revolving credit facility | 450 | 0 | 0 |
Debt repayments | (35) | (1,400) | (500) |
Debt extinguishment costs | 0 | (117) | (27) |
Shares repurchased under buyback programs | (2,754) | (724) | (85) |
Dividends paid | (220) | (141) | (64) |
Purchases of shares for tax withholding obligations | (22) | (10) | (7) |
All other financing, net | 12 | 1 | (3) |
Net cash used in financing activities | (1,069) | (2,391) | (286) |
Net increase (decrease) in cash and cash equivalents | (246) | (162) | (116) |
Cash and cash equivalents at beginning of period | 580 | 742 | 858 |
Cash and cash equivalents at end of period | $ 334 | $ 580 | $ 742 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity - USD ($) $ in Millions | Total | Cumulative-effect adjustment | Preferred Stock | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Retained Earnings Cumulative-effect adjustment | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance at Dec. 31, 2019 | $ 12,153 | $ (12) | $ 0 | $ 937 | $ (4,089) | $ 7,207 | $ 7,993 | $ (12) | $ 105 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Shares repurchased under buyback programs | (85) | (85) | |||||||
Stock-based compensation | 52 | 85 | (33) | ||||||
Net income (loss) | (1,451) | (1,451) | |||||||
Other comprehensive income (loss) | (32) | (32) | |||||||
Dividends paid | (64) | (64) | |||||||
Ending Balance at Dec. 31, 2020 | 10,561 | $ 0 | $ 937 | $ (4,089) | 7,174 | 6,466 | 73 | ||
Beginning Balance - Preferred Stock (in shares) at Dec. 31, 2019 | 0 | ||||||||
Beginning Balance - Common Stock (in shares) at Dec. 31, 2019 | 937,000,000 | ||||||||
Beginning Balance - Treasury Stock (in shares) at Dec. 31, 2019 | 141,000,000 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Shares issued - stock based compensation (in shares) | (2,000,000) | ||||||||
Shares repurchased (in shares) | 9,000,000 | ||||||||
Ending Balance - Preferred Stock (in shares) at Dec. 31, 2020 | 0 | ||||||||
Ending Balance - Common Stock (in shares) at Dec. 31, 2020 | 937,000,000 | ||||||||
Ending Balance - Treasury Stock (in shares) at Dec. 31, 2020 | 148,000,000 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Shares repurchased under buyback programs | (724) | $ (724) | |||||||
Stock-based compensation | 35 | (12) | 47 | ||||||
Net income (loss) | 946 | 946 | |||||||
Other comprehensive income (loss) | 9 | 9 | |||||||
Dividends paid | (141) | (141) | |||||||
Ending Balance at Dec. 31, 2021 | $ 10,686 | $ 0 | $ 937 | $ (4,825) | 7,221 | 7,271 | 82 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Shares issued - stock based compensation (in shares) | 0 | ||||||||
Shares repurchased (in shares) | 46,000,000 | ||||||||
Ending Balance - Preferred Stock (in shares) at Dec. 31, 2021 | 0 | 0 | |||||||
Ending Balance - Common Stock (in shares) at Dec. 31, 2021 | 937,000,000 | ||||||||
Ending Balance - Treasury Stock (in shares) at Dec. 31, 2021 | 194,000,000 | 194,000,000 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Shares repurchased under buyback programs | $ (2,754) | $ (2,754) | |||||||
Stock-based compensation | 49 | 67 | (18) | ||||||
Net income (loss) | 3,612 | 3,612 | |||||||
Other comprehensive income (loss) | 24 | 24 | |||||||
Dividends paid | (220) | (220) | |||||||
Ending Balance at Dec. 31, 2022 | $ 11,397 | $ 0 | $ 937 | $ (7,512) | $ 7,203 | $ 10,663 | $ 106 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Shares issued - stock based compensation (in shares) | (3,000,000) | ||||||||
Shares repurchased (in shares) | 113,000,000 | ||||||||
Ending Balance - Preferred Stock (in shares) at Dec. 31, 2022 | 0 | 0 | |||||||
Ending Balance - Common Stock (in shares) at Dec. 31, 2022 | 937,000,000 | ||||||||
Ending Balance - Treasury Stock (in shares) at Dec. 31, 2022 | 304,000,000 | 304,000,000 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders’ Equity (Parentheticals) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends paid (in dollars per share) | $ 0.32 | $ 0.18 | $ 0.08 |
Summary of Principal Accounting
Summary of Principal Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Principal Accounting Policies | Summary of Principal Accounting Policies We are an independent exploration and production company engaged in exploration, production and marketing of crude oil and condensate, NGLs and natural gas; as well as production and marketing of products manufactured from natural gas, such as LNG and methanol, in E.G. Basis of presentation and principles applied in consolidation – These consolidated financial statements, including notes, have been prepared in accordance with U.S. GAAP. These consolidated financial statements include the accounts of our controlled subsidiaries. Investments in unincorporated joint ventures and undivided interests in certain operating assets are consolidated on a pro rata basis. Equity method investments – Investments in entities over which we have significant influence, but not control, are accounted for using the equity method of accounting. This includes entities in which we hold majority ownership but the minority stockholders have substantive participating rights in the investee. Income from equity method investments represents our proportionate share of net income generated by the equity method investees and is reflected in revenues and other income in our consolidated statements of income. Equity method investments are included as noncurrent assets on the consolidated balance sheet. Equity method investments are assessed for impairment whenever changes in the facts and circumstances indicate a loss in value may have occurred. When a loss is deemed to have occurred and is other than temporary, the carrying value of the equity method investment is written down to fair value, and the amount of the write-down is included in income. Use of estimates – The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the respective reporting periods. Estimated quantities of crude oil and condensate, NGLs and natural gas reserves is a significant estimate that requires judgment. All of the reserve data included in this Form 10-K are estimates. Reservoir engineering is a subjective process of estimating underground accumulations of crude oil and condensate, NGLs and natural gas. There are numerous uncertainties inherent in estimating quantities of proved crude oil and condensate, NGLs and natural gas reserves. The accuracy of any reserves estimate is a function of the quality of available data and of engineering and geological interpretation and judgment. As a result, reserve estimates may be different from the quantities of crude oil and condensate, NGLs and natural gas that are ultimately recovered. See unaudited Supplementary Data – Supplementary Information on Oil and Gas Producing Activities for further detail. Other items subject to estimates and assumptions include the carrying amounts of property, plant and equipment, asset retirement obligations, goodwill, valuation of assets and liabilities in a business combination, valuation of derivative instruments and valuation allowances for deferred income tax assets, as well as other items recognized at fair value. Although we believe these estimates are reasonable, actual results could differ from these estimates. Foreign currency transactions – The U.S. dollar is the functional currency of our foreign operating subsidiaries. Foreign currency transaction gains and losses are included in net income. Revenue recognition – Revenues associated with the sales of crude oil and condensate, NGLs and natural gas are recognized when our performance obligation is satisfied, which typically occurs at the point where control transfers to the customer based on contract terms. Revenue is measured as the amount the company expects to receive in exchange for transferring commodities to the customer. Our hydrocarbon sales are typically based on prevailing market-based prices and may include quality or location differential adjustments. Payment is generally due within 30 days of delivery. We typically incur shipping and handling costs prior to control transferring to the customer and account for these activities as fulfillment costs. These costs are reflected in shipping, handling and other operating expense in our consolidated statement of income. Our U.S. production of crude oil and condensate, NGLs and natural gas is generally sold immediately and transported to market. In our international segment, liquid hydrocarbon production may be stored as inventory and sold at a later time. Cash and cash equivalents – Cash and cash equivalents include cash on hand and on deposit and investments in highly liquid debt instruments with original maturities of three months or less. Accounts receivable – The majority of our receivables are from purchasers of commodities or joint interest owners in properties we operate, both of which are recorded at estimated or invoiced amounts and do not bear interest. We often have the ability to withhold future revenue disbursements to recover any non-payment of joint interest billings. We conduct credit reviews of commodity purchasers prior to making commodity sales to new customers or increasing credit for existing customers. Based on these reviews, we may require a standby letter of credit or a financial guarantee. We routinely assess the collectability of receivable balances to determine if the amount of the reserve for credit losses is sufficient. Inventories – Crude oil and natural gas are recorded at weighted average cost and carried at the lower of cost or net realizable value. Supplies and other items consist principally of tubular goods and equipment, which are valued at weighted average cost and reviewed periodically for obsol escence or impairment when market conditions indicate . We may enter into a contract to sell a particular quantity and quality of crude oil at a specified location and date to a particular counterparty, and simultaneously agree to buy a particular quantity and quality of the same commodity at a specified location on the same or another specified date from the same counterparty. We account for such matching buy/sell arrangements as exchanges of inventory. Derivative instruments – We may use derivatives to manage a portion of our exposure to commodity price risk, commodity locational risk and interest rate risk. All derivative instruments are recorded at fair value. Commodity derivatives and interest rate swaps are reflected on our consolidated balance sheet on a net basis by counterparty, as they are governed by master netting agreements. Cash flows related to derivatives used to manage commodity price risk and interest rate risk are classified in operating activities. Our derivative instruments contain no significant contingent credit features. Cash flow hedges – We may use interest rate derivative instruments to manage the risk of interest rate changes during the period prior to anticipated borrowings as well as to stabilize future lease payments on our Houston office and designate them as cash flow hedges. Derivative instruments designated as cash flow hedges are linked to specific assets and liabilities or to specific firm commitments or forecasted transactions. The changes in the fair value of a qualifying cash flow hedge are recorded in other comprehensive income until the hedged transaction affects earnings and are then reclassified into net income. Ineffective portions of a cash flow hedge are no longer measured or disclosed separately. However, if it is determined that the likelihood of the original forecasted transaction occurring is no longer probable, or the cash flow hedge is no longer expected to be highly effective, subsequent changes in fair value of the derivatives instrument are recorded in net income. Derivatives not designated as hedges – Derivatives that are not designated as hedges may include commodity derivatives used primarily to manage price and locational risks on the forecasted sale of crude oil, NGLs and natural gas that we produce. Changes in the fair value of derivatives not designated as hedges are recognized immediately in net income. Concentrations of credit risk – All of our financial instruments, including derivatives, involve elements of credit and market risk. The most significant portion of our credit risk relates to nonperformance by counterparties. The counterparties to our financial instruments consist primarily of major financial institutions and companies within the energy industry. To manage counterparty risk associated with financial instruments, we select and monitor counterparties based on our assessment of their financial strength and on credit ratings, if available. Additionally, we limit the level of exposure with any single counterparty. Fair value transfer – We recognize transfers between levels of the fair value hierarchy as of the end of the reporting period. Property, plant and equipment – We use the successful efforts method of accounting for oil and gas producing activities. Property acquisition costs – Costs to acquire mineral interests in oil and natural gas properties, to drill exploratory wells in progress and those that find proved reserves and to drill development wells are capitalized. Costs to drill exploratory wells that do not find proved reserves, geological and geophysical costs and costs of carrying and retaining unproved properties are expensed. Costs incurred for exploratory wells that find reserves but cannot yet be classified as proved are capitalized if (1) the well has found a sufficient quantity of reserves to justify its completion as a producing well and (2) we are making sufficient progress assessing the reserves and the economic and operating viability of the project. The status of suspended exploratory well costs is monitored continuously and reviewed at least quarterly. Depreciation, depletion and amortization – Capitalized costs to acquire oil and natural gas properties are depreciated and depleted on a units-of-production basis based on estimated proved reserves. Capitalized costs of exploratory wells and development costs are depreciated and depleted on a units-of-production basis based on estimated proved developed reserves. Support equipment and other property, plant and equipment related to oil and gas producing activities, as well as property, plant and equipment unrelated to oil and gas producing activities, are recorded at cost and depreciated on a straight-line basis over the estimated useful lives of the assets. The table below summarizes these assets by type, useful life and the net asset balance as of the periods presented. December 31, Type of Asset Range of Useful Lives 2022 2021 (In millions) Office furniture, equipment and computer hardware 4 to 15 years $ 36 $ 41 Pipelines 5 to 40 years $ 13 $ 10 Plants, facilities and infrastructure 3 to 40 years $ 1,510 $ 1,496 Impairments – We evaluate our oil and gas producing properties, including capitalized costs of exploratory wells and development costs, for impairment of value whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the sum of the expected undiscounted future cash flows from the use of the asset and its eventual disposition is less than the carrying amount of the asset, an impairment loss is recognized based on the fair value of the asset. Oil and gas producing properties are reviewed for impairment on a field-by-field basis or, in certain instances, by logical grouping of assets if there is significant shared infrastructure or contractual terms that cause economic interdependency amongst separate, discrete fields. Oil and gas producing properties deemed to be impaired are written down to their fair value, as determined by discounted future net cash flows or, if available, comparable market value. We evaluate our unproved property investment and record impairment based on time or geologic factors. Information such as drilling results, reservoir performance, seismic interpretation, lease expiration dates or future plans to develop acreage is also considered. When unproved property investments are deemed to be impaired, this amount is reported in exploration expenses in our consolidated statements of income. Acquisitions – We account for acquisitions that qualify as business combinations by applying the acquisition method. Under this method of accounting, the identifiable assets acquired and liabilities assumed are recognized and measured at their estimated fair values at the date of acquisition. Any excess of the purchase price over the fair values of the identifiable assets acquired and liabilities assumed is recorded as goodwill. Transaction costs related to business combinations are expensed as incurred in our consolidated statements of income. Dispositions – When property, plant and equipment depreciated on an individual basis is sold or otherwise disposed of, any gains or losses are reflected in net gain (loss) on disposal of assets in our consolidated statements of income. Gains on the disposal of property, plant and equipment are recognized when earned, which is generally at the time the disposal transaction closes. If a loss on disposal is expected, such loss is recognized either when the asset is classified as held for sale based on estimated fair value less cost to sell, or when there is a current expectation that, more likely than not, the asset will be sold significantly before the end of its previously estimated useful life measured using a probability weighted income approach considering the anticipated sales price if the asset is sold and a held-for-use model if the asset is retained. Proceeds from the disposal of a portion of property, plant and equipment depreciated on a group basis are credited to accumulated depreciation, depletion and amortization with no immediate effect on net income until net book value is reduced to zero. Goodwill – Goodwill represents the excess of the purchase price over the estimated fair value of the net assets acquired in the acquisition of a business. In 2020, our goodwill was fully impaired as we concluded the fair value was below carrying value. Environmental costs – We provide for remediation costs and penalties when the responsibility to remediate is probable and the amount of associated costs can be reasonably estimated. The timing of remediation accruals coincides with completion of a feasibility study or the commitment to a formal plan of action. Remediation liabilities are accrued based on estimates of known environmental exposure and are discounted when the estimated amounts are reasonably fixed or reliably determinable. Environmental expenditures are capitalized only if the costs mitigate or prevent future contamination or if the costs improve the environmental safety or efficiency of the existing assets. Asset retirement obligations – The fair value of asset retirement obligations is recognized in the period in which the obligations are incurred if a reasonable estimate of fair value can be made. Our asset retirement obligations primarily relate to the abandonment of oil and gas producing facilities. Asset retirement obligations for such facilities include costs to dismantle and relocate or dispose of production platforms, gathering systems, wells and related structures and restoration costs of land, including those leased. Estimates of these costs are developed for each property based on the type of production facilities and equipment, reservoir characteristics, depth of the reservoir, market demand for equipment, currently available procedures and consultations with construction and engineering professionals. Inflation rates and credit-adjusted-risk-free interest rates are used to estimate the fair value of asset retirement obligations. Depreciation of capitalized asset retirement costs and accretion of asset retirement obligations are recorded over time. Depreciation is generally determined on a units-of-production basis based on estimated proved developed reserves for oil and gas production facilities, while accretion of the liability occurs over the useful lives of the assets. Income taxes – Deferred tax assets and liabilities, measured at enacted tax rates, are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their tax bases as reported in our filings with the respective taxing authorities. We routinely assess the realizability of our deferred tax assets based on several interrelated factors and reduce such assets by a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized. These factors include whether we are in a cumulative loss position in recent years, our reversal of temporary differences, and our expectation to generate sufficient future taxable income. We use the liability method in determining our provision and liabilities for our income taxes, under which current and deferred tax liabilities and assets are recorded in accordance with enacted tax laws and rates. Stock-based compensation arrangements – The fair value of stock options is estimated on the date of grant using the Black-Scholes option pricing model. The model employs various assumptions, based on management’s best estimates at the time of grant, which impact the calculation of fair value and ultimately, the amount of expense that is recognized over the life of the stock option award. Of the required assumptions, the expected volatility of our stock price and the stock price in relation to the strike price have the most significant impact on the fair value calculation. We have utilized historical data and analyzed current information which reasonably support these assumptions. The fair value of our restricted stock awards, restricted stock units and director restricted stock units is determined based on the market value of our common stock on the date of grant. Restricted stock awards, restricted stock units and director restricted stock units are removed from Treasury Stock at grant, vesting and distribution, respectively. The fair value of our cash-settled stock-based performance units is estimated using the Monte Carlo simulation method. Since these awards are settled in cash at the end of a defined performance period, they are classified as a liability and are re-measured quarterly until settlement. The fair value of our free cash flow cash-settled stock-based performance units is estimated by multiplying (i) the number of units granted, (ii) the vesting percentage with (iii) our common stock’s closing price plus accumulated dividend equivalents per share of our common stock. These performance units have a banking feature and only the unbanked portion of the fair value will be estimated. Once a banking level has been achieved, the banked units will have their value determined based on the average of the daily closing price of our common stock during the final 30 calendar days ending on the last trading day of the quarter that the banking was achieved. At the end of the performance period, any unbanked portion of the benefit will have their value determined based on the average of the daily closing price of our common stock during the final 30 calendar days ending on the last trading day of the performance period. Since these awards are settled in cash at the end of a defined performance period, they are classified as a liability and are re-measured quarterly until settlement. The fair value of our stock-settled stock-based performance units is estimated using the Monte Carlo simulation method at grant date only. Since these awards are settled in stock, they are classified as equity. |
New Accounting Standards
New Accounting Standards | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Standards | New Accounting Standards In November 2022, we adopted Accounting Standards Update (“ASU”) 2020-04 and 2021-01, which provide optional expedients and exceptions to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued. The ASUs were effective upon issuance and could be applied prospectively through December 31, 2022. During the fourth quarter, we amended our finance lease on our Houston office and the related interest rate swaps used to hedge variations in associated cash flows to replace LIBOR with 1-Month Term SOFR. As the modifications met the criteria for the optional expedients and exceptions, we did not remeasure our finance lease obligation and there were no changes to hedge accounting for the related interest rate swaps. Consequently, the adoption of the ASUs did not have a material impact on our consolidated financial statements. There are no issued but pending ASUs expected to have a material impact on our consolidated financial statements. |
Income (loss) and Dividends per
Income (loss) and Dividends per Common Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Income (loss) and Dividends per Common Share | Income (loss) and Dividends per Common Share Basic income (loss) per share is based on the weighted average number of common shares outstanding. Diluted income (loss) per share assumes exercise of stock options in all periods, provided the effect is not antidilutive. The per share calculations below exclude 2 million, 4 million and 7 million stock options for 2022, 2021 and 2020 that were antidilutive. Year Ended December 31, (In millions, except per share data) 2022 2021 2020 Net income (loss) $ 3,612 $ 946 $ (1,451) Weighted average common shares outstanding 685 787 792 Effect of dilutive securities 2 1 — Weighted average common shares, diluted 687 788 792 Net income (loss) per share: Basic $ 5.27 $ 1.20 $ (1.83) Diluted $ 5.26 $ 1.20 $ (1.83) Dividends per share $ 0.32 $ 0.18 $ 0.08 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions On November 2, 2022, we executed a definitive purchase agreement to acquire the assets and certain related liabilities of Ensign Natural Resources (“Ensign”) in the Eagle Ford resource play in Texas and the transaction was closed on December 27, 2022 (“the closing date”) for cash consideration of $3.0 billion, which was subject to customary closing adjustments. The assets acquired primarily consisted of approximately 130,000 net proved and unproved acres, with an average 97% working interest, and approximately 700 existing wells. We funded the acquisition using a combination of cash on hand and borrowings under our new Term Loan Facility and Revolving Credit Facility. See Note 17 for further information related to the Term Loan Facility and Revolving Credit Facility. The transaction was accounted for as a business combination. Our results of operations for the year ended December 31, 2022 include Ensign’s result of operations from the closing date through December 31, 2022. Revenue and net income attributable to Ensign during this period were immaterial. For the year ended December 31, 2022, transaction costs related to the acquisition were $18 million. These costs were associated with advisory, legal, consulting and financing services and were primarily recorded to general and administrative expense within our consolidated statement of operations. The transaction was accounted for under the acquisition method, which requires that the assets acquired and liabilities assumed be recognized at their fair values as of the closing date. Fair values assigned to the assets acquired and liabilities assumed as of the closing date were as follows: (In millions) December 27, 2022 Assets: Inventories $ 4 Total current assets acquired 4 Property, plant and equipment 3,159 Total assets acquired $ 3,163 Liabilities: Other current liabilities $ 36 Total current liabilities assumed 36 Asset retirement obligations 41 Other noncurrent liabilities 58 Total liabilities assumed 135 Net assets acquired $ 3,028 The fair values of assets acquired and liabilities assumed were measured primarily using an income approach, specifically utilizing a discounted cash flow analysis. The estimated fair values were based on significant inputs not observable in the market, and therefore represent Level 3 measurements. Significant inputs included the expected future production volumes (including proved reserves), estimated realized commodity prices and assumptions regarding the amount and timing of future operating and development costs, and discount rate. The following table summarizes the unaudited pro forma condensed financial information of the Company as if the business combination had occurred on January 1, 2021. Year Ended December 31, (In millions) 2022 2021 Revenues $ 9,116 $ 5,757 Net income $ 3,974 $ 941 The pro forma earnings include adjustments to depreciation expense associated with the recognition of the fair value of assets acquired, additional interest expense as a result of incurring new debt, and incremental income tax expense. The pro forma financial information does not include any cost savings or other synergies from the acquisition or any estimated costs that have been incurred to integrate the assets. The pro forma information is not intended to reflect the actual results of operations that would have occurred if the business combination had been completed at the beginning of fiscal year 2021 and is not intended to be a projection of our financial results of operations for any future periods. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues The majority of our revenues are derived from the sale of crude oil and condensate, NGLs and natural gas under spot and term agreements with our customers in the U.S. and E.G.. As of December 31, 2022 and December 31, 2021, receivables from contracts with customers, included in receivables, less reserves for credit losses were $903 million and $961 million, respectively. The following tables present our revenues from contracts with customers disaggregated by product type and geographic areas. United States Year Ended December 31, 2022 (In millions) Eagle Ford Bakken Oklahoma Permian Other U.S. Total Crude oil and condensate $ 2,004 $ 2,508 $ 423 $ 456 $ 161 $ 5,552 Natural gas liquids 183 310 231 62 28 814 Natural gas 188 197 321 70 33 809 Other 7 — — — 86 93 Revenues from contracts with customers $ 2,382 $ 3,015 $ 975 $ 588 $ 308 $ 7,268 Year Ended December 31, 2021 (In millions) Eagle Ford Bakken Oklahoma Permian Other U.S. Total Crude oil and condensate $ 1,435 $ 1,777 $ 299 $ 314 $ 100 $ 3,925 Natural gas liquids 161 239 189 47 17 653 Natural gas 159 119 280 55 19 632 Other 8 — — — 116 124 Revenues from contracts with customers $ 1,763 $ 2,135 $ 768 $ 416 $ 252 $ 5,334 Year Ended December 31, 2020 (In millions) Eagle Ford Bakken Oklahoma Permian Other U.S. Total Crude oil and condensate $ 830 $ 984 $ 235 $ 204 $ 69 $ 2,322 Natural gas liquids 74 54 89 20 6 243 Natural gas 86 34 127 18 10 275 Other 6 — — — 78 84 Revenues from contracts with customers $ 996 $ 1,072 $ 451 $ 242 $ 163 $ 2,924 International (E.G.) Year Ended December 31, (In millions) 2022 2021 2020 Crude oil and condensate $ 244 $ 240 $ 140 Natural gas liquids 2 2 4 Natural gas 22 23 29 Other 4 2 — Revenues from contracts with customers $ 272 $ 267 $ 173 Customers and their respective affiliates who accounted for 10% or more of our total commodity sales were as follows: December 31, 2022 2021 2020 Percentage of Total Commodity Sales Marathon Petroleum Corporation 22 % 17 % 13 % Valero Marketing and Supply 12 % 10 % N/A Trafigura Groupe Pte. Ltd. 10 % N/A N/A Koch Resources LLC N/A N/A 12 % The pricing in our hydrocarbon sales agreements is variable, determined using various published benchmarks that are adjusted for negotiated quality and location differentials. As a result, revenue collected under our agreements with customers is highly dependent on the market conditions and may fluctuate considerably as the hydrocarbon market prices rise or fall. Typically, our customers pay us monthly, within a short period of time after we deliver the hydrocarbon products. As such, we do not have any financing element associated with our contracts. Our experience with returns or refunds is negligible, as product specifications are standardized for the industry and are typically measured when transferred to a common carrier or midstream entity, and other contractual mechanisms (e.g., price adjustments) are used when products do not meet those specifications. In limited cases, we may also collect advance payments from customers as stipulated in our agreements; payments in excess of recognized revenue are recorded as contract liabilities on our consolidated balance sheet. Under our hydrocarbon sales agreements, the entire consideration amount is variable either due to pricing and/or volumes. We recognize revenue in the amount of variable consideration allocated to distinct units of hydrocarbons transferred to a customer. Such allocation reflects the amount of total consideration we expect to collect for completed deliveries of hydrocarbons and the terms of variable payments relate specifically to our efforts to satisfy the performance obligations under these contracts. Our performance obligations under our hydrocarbon sales agreements are to deliver either the entire production from the dedicated wells or specified contractual volumes of hydrocarbons. We often serve as the operator for jointly owned oil and gas properties. As part of this role, we perform activities to explore, develop and produce oil and gas properties in accordance with the joint operating arrangements. Other working interest owners reimburse us for costs incurred based on our agreements. We determined that these activities are not performed as part of customer relationships and such reimbursements will continue to not be recorded as revenues within the scope of the revenue accounting standard. In addition, we commonly market the share of production belonging to other working interest owners as the operator of jointly owned oil and gas properties. We concluded that those marketing activities are carried out as part of the collaborative arrangement. Therefore, we act as a principal only in regard to the sale of our share of production and recognize revenue for the volumes associated with our net production. Crude oil and condensate For the crude sales agreements, we satisfy our performance obligations and recognize revenue once customers take control of the crude at the designated delivery points, which include pipelines, trucks or vessels. Natural gas and NGLs When selling natural gas and NGLs, we engage midstream entities to process our production stream by separating natural gas from the NGLs. Frequently, these midstream entities also purchase our natural gas and NGLs under the same agreements. In these situations, we determined the performance obligation is complete and satisfied at the tailgate of the processing plant when the natural gas and NGLs become identifiable and measurable products. We determined the plant tailgate is the location where control is transferred to midstream entities, and they are entitled to significant risks and rewards of ownership of the natural gas and NGLs. The amounts due to midstream entities for gathering and processing services are recognized as shipping and handling cost, since we make those payments in exchange for distinct services. Under some of our natural gas processing agreements, we have an option to take the processed natural gas and NGLs in-kind and sell to customers other than the processing company. In those circumstances, our performance obligations are complete after delivering the processed hydrocarbons to the customer at the designated delivery points, which may be the tailgate of the processing plant or an alternative delivery point requested by the customer. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We have two reportable operating segments. Both of these segments are organized and managed based upon geographic location and the nature of the products and services offered. • United States (“U.S.”) – explores for, produces and markets crude oil and condensate, NGLs and natural gas in the United States; and • International (“Int’l”) – explores for, produces and markets crude oil and condensate, NGLs and natural gas outside of the United States as well as produces and markets products manufactured from natural gas, such as LNG and methanol, in E.G. Segment income represents income that excludes certain items not allocated to our operating segments, net of income taxes. A portion of our corporate and operations general and administrative support costs are not allocated to the operating segments. These unallocated costs primarily consist of employment costs (including pension effects), professional services, facilities and other costs associated with corporate and operations support activities. Additionally, items which affect comparability such as: gains or losses on dispositions, impairments of proved and certain unproved properties, goodwill, equity method investments, changes in our valuation allowance, unrealized gains or losses on commodity and interest rate derivative instruments, effects of pension settlements and curtailments, expensed transaction costs for business combinations or other items (as determined by the chief operating decision maker (CODM)) are not allocated to operating segments. Year Ended December 31, 2022 (In millions) U.S. Int’l Not Allocated to Segments Total Revenues from contracts with customers $ 7,268 $ 272 $ — $ 7,540 Net gain (loss) on commodity derivatives (132) — 18 (b) (114) Income from equity method investments — 613 — 613 Net loss on disposal of assets — — (38) (c) (38) Other income 19 7 9 35 Less costs and expenses: Production 625 65 — 690 Shipping, handling and other operating 665 18 50 733 Exploration 36 — 74 (d) 110 Depreciation, depletion and amortization 1,675 60 18 1,753 Impairments — — 7 7 Taxes other than income 475 — 9 484 General and administrative 131 13 164 308 Net interest and other — — 188 (e) 188 Other net periodic benefit credit — — (16) (16) Income tax provision (benefit) 808 151 (792) (f) 167 Segment income $ 2,740 $ 585 $ 287 $ 3,612 Total assets $ 18,429 $ 1,157 $ 354 $ 19,940 Capital expenditures (a) $ 1,463 $ 2 $ 15 $ 1,480 (a) Includes accruals and excludes acquisitions. (b) Unrealized gain on commodity derivative instruments (See Note 15 ). (c) Includes $39 million in losses resulting from exchanges of unproved acreage in the Permian. (d) Includes dry well costs and unproved property impairments of $48 million for Louisiana exploration leases and $25 million for Permian exploration leases (See Note 10 and Note 11 ). (e) Includes a $17 million gain on our 2025 interest rate swaps (See Note 15 ). (f) Includes a $685 million benefit related to the partial release of our valuation allowance (See Note 7 ). Year Ended December 31, 2021 (In millions) U.S. Int’l Not Allocated to Segments Total Revenues from contracts with customers $ 5,334 $ 267 $ — $ 5,601 Net gain (loss) on commodity derivatives (399) — 16 (b) (383) Income from equity method investments — 253 — 253 Net loss on disposal of assets — — (19) (c) (19) Other income 7 4 4 15 Less costs and expenses: Production 480 54 — 534 Shipping, handling and other operating 686 16 25 727 Exploration 65 — 71 (d) 136 Depreciation, depletion and amortization 1,972 68 26 2,066 Impairments — — 60 (e) 60 Taxes other than income 346 — (1) 345 General and administrative 107 13 171 (f) 291 Net interest and other — — 188 (g) 188 Other net periodic benefit credit — — (5) (5) Loss on early extinguishment of debt — — 121 (h) 121 Income tax provision (benefit) 9 56 (7) 58 Segment income (loss) $ 1,277 $ 317 $ (648) $ 946 Total assets $ 15,339 $ 994 $ 661 $ 16,994 Capital expenditures (a) $ 1,018 $ — $ 14 $ 1,032 (a) Includes accruals and excludes acquisitions. (b) Unrealized gain on commodity derivative instruments (See Note 15 ). (c) Includes a $20 million loss associated with a previously divested non-core conventional asset, a $12 million pre-tax loss associated with a reduction in our ownership interest in EG LNG (See Note 23 ) and an $8 million gain on various well bore assignments in Permian and Bakken. (d) Includes unproved property impairments of $20 million for Louisiana exploration leases and $16 million related to the disposition of a lease in Permian. (See Note 11 ). Also includes $28 million of expense associated with drilled and uncompleted wells, primarily in Permian, due to a change in our plan of development. (e) Includes impairments of $24 million for central facilities in Eagle Ford (See Note 11 ), $5 million for proved properties in Permian (See Note 11 ) and $30 million associated with decommissioning costs for non-producing long-lived assets in GOM (See Note 11 , Note 12 , and Note 25 ) (f) Includes $13 million associated with the termination of an aircraft lease agreement and $12 million arising from severance expenses associated with a workforce reduction. (g) Includes a $28 million gain on our 2022 interest rate swaps and a $27 million gain on our 2025 interest rate swaps (See Note 15 ). (h) Represents costs related to a make-whole provision premium and the write off of unamortized discount and issuance costs in regards to the redemption of the 2022 Notes in April 2021 and 2025 Notes in September 2021 (See Note 17 ). Year Ended December 31, 2020 (In millions) U.S. Int’l Not Allocated to Segments Total Revenues from contracts with customers $ 2,924 $ 173 $ — $ 3,097 Net gain (loss) on commodity derivatives 143 — (27) (b) 116 Income (loss) from equity method investments — 10 (171) (c) (161) Net gain on disposal of assets — — 9 9 Other income 15 7 3 25 Less costs and expenses: Production 494 59 2 555 Shipping, handling and other operating 534 8 54 596 Exploration 97 — 84 (d) 181 Depreciation, depletion and amortization 2,211 82 23 2,316 Impairments — — 144 (e) 144 Taxes other than income 193 — 7 200 General and administrative 115 14 145 (f) 274 Net interest and other — — 256 256 Other net periodic benefit cost — — 1 (g) 1 Loss on early extinguishment of debt — — 28 28 Income tax benefit (9) (3) (2) (14) Segment income (loss) $ (553) $ 30 $ (928) $ (1,451) Total assets $ 16,063 $ 1,081 $ 812 $ 17,956 Capital expenditures (a) $ 1,137 $ 1 $ 13 $ 1,151 (a) Includes accruals and excludes acquisitions. (b) Unrealized loss on commodity derivative instruments (See Note 15 ). (c) Partial impairment of investment in equity method investee (See Note 23 ). (d) Primarily related to unproved property impairments of non-core acreage in our United States segment. (e) Includes the full impairment of the International reporting unit goodwill of $95 million (See Note 14 ) and proved property impairments of $49 million related to a damaged well in our United States segment. (f) Includes severance expenses associated with workforce reductions of $17 million. (g) Includes pension settlement loss of $30 million and pension curtailment gain of $17 million (See Note 19 ). The following summarizes our balances of property, plant and equipment and equity method investments as of: December 31, (In millions) 2022 2021 United States $ 17,088 $ 14,152 Equatorial Guinea 866 797 Total long-lived assets $ 17,954 $ 14,949 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income (loss) before income taxes were: Year Ended December 31, (In millions) 2022 2021 2020 United States $ 3,037 $ 637 $ (1,319) Foreign 742 367 (146) Total $ 3,779 $ 1,004 $ (1,465) Income tax provisions (benefits) were: Year Ended December 31, 2022 2021 2020 (In millions) Current Deferred Total Current Deferred Total Current Deferred Total Federal $ — $ (46) $ (46) $ — $ — $ — $ (5) $ — $ (5) State and local 12 52 64 4 1 5 (2) (8) (10) Foreign 172 (23) 149 81 (28) 53 15 (14) 1 Total $ 184 $ (17) $ 167 $ 85 $ (27) $ 58 $ 8 $ (22) $ (14) A reconciliation of the federal statutory income tax rate applied to income (loss) before income taxes to the provision (benefit) for income taxes follows: Year Ended December 31, (In millions) 2022 2021 2020 Total pre-tax income (loss) $ 3,779 $ 1,004 $ (1,465) Total income tax provision (benefit) $ 167 $ 58 $ (14) Effective income tax rate 4 % 6 % 1 % Income taxes at the statutory tax rate $ 793 $ 211 $ (308) Adjustments to valuation allowances (691) (166) 239 Effects of foreign operations 2 (13) 23 State income taxes, net of federal benefit 62 23 6 Tax law change — (2) — Other federal tax effects 1 5 26 Income tax provision (benefit) $ 167 $ 58 $ (14) The effective income tax rate is influenced by a variety of factors including the geographic and functional sources of income and the relative magnitude of these sources of income. The difference between the total provision and the sum of the amounts allocated to segments is reported in the “Not Allocated to Segments” column of the tables in Note 6 . Adjustments to valuation allowances – From December 31, 2016 until the first quarter of 2022, we maintained a full valuation allowance on our net federal deferred tax assets. In the first quarter of 2022, as a result of significant increases in commodity prices, corresponding increases in projections of our future taxable income, and the absence of objective negative evidence such as a cumulative loss in recent years, we determined we had sufficient positive evidence to release a majority of the federal valuation allowance, which resulted in a non-cash deferred tax benefit of $685 million. We retained a partial valuation allowance on certain U.S. deferred tax assets primarily as a result of volatility in commodity prices impacting assessed likelihood of future realizability. We continue to reassess whether the balance of the valuation allowance is appropriate on a quarterly basis and, given the totality of the facts and circumstances, will adjust the valuation allowance in future periods if the evidence supports it. Effects of foreign operations – The effects of foreign operations increased and decreased our tax provision in 2022 and 2021, respectively, largely due to the income mix within E.G. The income mix between equity method investees and subsidiaries within E.G. can cause the effective tax rate in E.G. to differ from the U.S. statutory tax rate. The effects of foreign operations increased our tax provision in 2020 largely due to book losses in foreign jurisdictions with no corresponding tax benefits. Other federal tax effects – In 2020, the increase to other federal tax effects is largely related to non-deductible goodwill impairment. Deferred tax assets and liabilities resulted from the following: Year Ended December 31, (In millions) 2022 2021 Deferred tax assets: Employee benefits $ 56 $ 66 Operating loss carryforwards 1,189 1,541 Foreign tax credits 602 611 Other 65 52 Subtotal 1,912 2,270 Valuation allowance (89) (780) Total deferred tax assets 1,823 1,490 Deferred tax liabilities: Property, plant and equipment 1,850 1,544 Other 100 82 Total deferred tax liabilities 1,950 1,626 Net deferred tax liabilities $ 127 $ 136 Operating loss carryforwards – At December 31, 2022, we have a gross deferred tax asset related to our operating loss carryforwards of $1.2 billion. U.S. operating loss carryforwards consist of $5.2 billion ($1.1 billion deferred tax asset) which can be carried forward indefinitely. Foreign operating loss carryforwards include $1 million that begin to expire in 2023. State operating loss carryforwards include $2.4 billion ($120 million deferred tax asset) that begin to expire in 2023. Foreign tax credits – At December 31, 2022, we reflect foreign tax credits of $602 million, which will expire in years 2023 through 2026. Valuation allowances – At December 31, 2022, we reflect a partial valuation allowance in our consolidated balance sheet of $89 million against our net deferred tax assets in various jurisdictions in which we operate. The decrease in valuation allowance is primarily due to the $685 million valuation allowance release on a portion of our federal and state net deferred tax assets in the first quarter of 2022. Property, plant and equipment – At December 31, 2022, we reflected a deferred tax liability of $1.9 billion. The increase primarily relates to current year activity in the U.S. Net deferred tax assets and liabilities were classified in the consolidated balance sheets as follows: December 31, (In millions) 2022 2021 Assets: Other noncurrent assets $ 40 $ — Liabilities: Noncurrent deferred tax liabilities 167 136 Net deferred tax liabilities $ 127 $ 136 We are routinely undergoing examinations in the jurisdictions in which we operate. As of December 31, 2022, our income tax returns remain subject to examination in the following major tax jurisdictions for the tax years indicated: United States (a) 2016 - 2021 Equatorial Guinea 2007 - 2021 (a) Includes federal and state jurisdictions. The following table summarizes the activity in unrecognized tax benefits: (In millions) 2022 2021 2020 Beginning balance $ 10 $ 8 $ 13 Additions for tax positions of prior years 1 2 — Reductions for tax positions of prior years — — (5) Settlements (11) — — Ending balance $ — $ 10 $ 8 Interest and penalties are recorded as part of the tax provision and were immaterial for the years ended December 31, 2022, 2021 and 2020. As of December 31, 2022, 2021 and 2020, we had no significant accrued interest or penalties related to income taxes. On August 16, 2022, the President signed the IRA into law. The IRA enacted various income tax provisions including a 15% corporate book minimum tax and created and extended certain tax-related energy incentives. The tax provisions of the IRA which may apply to us are generally effective in 2023 or later and therefore tax impacts to us in 2022 were immaterial. The U.S. Treasury is expected to publish further guidance and regulations that will be relevant to scoping considerations and the calculation of minimum income tax liabilities. As we receive further guidance, we will continue to evaluate and assess the impact the IRA may have to our cash flows and financial results in future periods. |
Credit Losses
Credit Losses | 12 Months Ended |
Dec. 31, 2022 | |
Credit Loss [Abstract] | |
Credit Losses | Credit Losses The majority of our receivables are from purchasers of commodities or joint interest owners in properties we operate, both of which are recorded at estimated or invoiced amounts and do not bear interest. The majority of these receivables have payment terms of 30 days or less. At the end of each reporting period, we assess the collectability of our receivables and estimate the expected credit losses using historical data, current market conditions and reasonable and supportable forecasts of future economic conditions and other data as deemed appropriate. We are exposed to credit losses through the receivables generated from sales of crude oil, NGLs and natural gas to our customers. When dealing with the commodity purchasers, we conduct a credit review to assess each counterparty’s ability to pay. The credit review considers our expected billing exposure, timing for payment and the counterparty’s established credit rating with the rating agencies or our internal assessment of the counterparty’s creditworthiness based on our analysis of their financial statements. Our evaluation also considers contract terms and other factors, such as country and/or political risk. A credit limit is established for each counterparty based on the outcome of this review. We may require a bank letter of credit or a prepayment to mitigate credit risk. We monitor our ongoing credit exposure through active review of counterparty balances against contract terms and due dates. The expected credit losses related to receivables with the commodity purchasers were determined using the weighted average probability of default method. We also collect revenues from our non-operated joint properties where other oil and gas exploration and production companies operate the properties and market our share of production and remit payments to us. The current expected credit losses related to these receivables were determined using the loss rate method applied to aging pools. We are exposed to credit losses from joint interest billings to other joint interest owners for properties we operate. For this group of receivables, the expected credit losses are determined using the loss rate method applied to aging pools. Our counterparties in this group include numerous large, mid-size and small oil and gas exploration and production companies. Although we may have the ability to withhold future revenue disbursements to recover any non-payment of joint interest billings or require a prepayment of future costs through cash calls, our credit loss exposure with this group is more significant due to inherent ownership or billing adjustments. Also, some of our counterparties may experience liquidity problems and may not be able to meet their financial obligations to us. Changes in the reserve for credit losses balance for the year were as follows: December 31, (In millions) 2022 2021 Beginning balance as of January 1 $ 15 $ 22 Current period provision (3) 3 Current period write offs (2) (5) Recoveries of amounts previously reserved — (5) Ending balance as of December 31 $ 10 $ 15 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Crude oil and natural gas liquids are recorded at weighted average cost and carried at the lower of cost or net realizable value. Supplies and other items consist principally of tubular goods and equipment which are valued at weighted average cost and reviewed periodically for obsol escence or impairment when market conditions indicate. December 31, (In millions) 2022 2021 Crude oil and natural gas liquids $ 15 $ 8 Supplies and other items 110 69 Inventories $ 125 $ 77 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment December 31, (In millions) 2022 2021 United States $ 17,034 $ 14,097 International 288 347 Not allocated to segments 55 55 Net property, plant and equipment $ 17,377 $ 14,499 Changes in our capitalized exploratory well costs were as follows: December 31, (In millions) 2022 2021 2020 Beginning balance as of January 1 $ 162 $ 210 $ 278 Additions 78 50 97 Charges to expense (30) (30) (1) Transfers to development (96) (68) (164) Ending balance as of December 31 $ 114 $ 162 $ 210 As of December 31, 2022 and 2021, we had $20 million and $80 million, respectively, of exploratory well costs capitalized greater than one year related to suspended wells. Management believes these wells exhibit sufficient quantities of hydrocarbons to justify potential development. The majority of the suspended wells require completion activities and installation of infrastructure in order to classify the reserves as proved. The decrease during the year ended December 31, 2022 included a $46 million reduction in suspended well costs as we resumed drilling or completion activities and brought previously suspended wells to sales. Additionally, we recorded $14 million of expense associated with drilled and uncompleted exploratory wells, primarily in Louisiana Austin Chalk. |
Impairments
Impairments | 12 Months Ended |
Dec. 31, 2022 | |
Impairments and Exploration Expenses [Abstract] | |
Impairments | Impairments The following table summarizes impairment charges of proved properties, asset retirement costs, goodwill and equity method investments and their corresponding fair values. The fair values of the impairments discussed below were estimated using inputs that represent Level 3 measurements. 2022 2021 2020 (In millions) Fair Value Impairment Fair Value Impairment Fair Value Impairment Proved properties $ — $ — $ — $ 30 $ — $ 49 Asset retirement costs of long-lived assets — 7 — 30 — — Goodwill — — — — — 95 Equity method investment $ — $ — $ — $ — $ 119 $ 171 • 2022 Impairments Unproved properties – During the year ended December 31, 2022, we recognized impairments of $25 million of unproved property leases in Louisiana Austin Chalk. The impairments resulted from a combination of factors including timing of lease expiration dates, our assessment of risk and resource, and the decision not to develop the acreage. We also recognized impairments of $17 million for unproved property leases in Permian as a result of acreage exchanges. The combined effects of the unproved property impairments were recorded within exploration expense of our consolidated statements of income. • 2021 Impairments Proved properties – During the year ended December 31, 2021, we recorded an impairment expense of $5 million associated with our interest in outside operated conventional assets located in New Mexico. Additionally, we recorded an impairment expense of $24 million associated with two central facilities located in Eagle Ford. Decommissioning activities associated with these central facilities included the re-routing of existing wells. The combined effects of proved property impairments were recorded within impairment expense of our consolidated statements of income. Unproved properties – During the year ended December 31, 2021, we recognized unproved property impairments of $20 million for Louisiana exploration leases and $16 million related to the disposition of a Permian lease. The combined effects of the unproved property impairments were recorded within exploration expense of our consolidated statements of income. Asset retirement costs of long-lived assets – During the year ended December 31, 2021, we recognized an incremental $30 million of impairment expense associated with an increase in the estimated future decommissioning costs of certain non-producing wells, pipelines and production facilities for previously divested offshore assets located in the Gulf of Mexico. See Note 12 for further information. This cost was recorded within impairment expense of our consolidated statements of income. • 2020 Impairments Proved properties – During the year ended December 31, 2020, we recognized impairment expenses totaling $49 million of long-lived assets held for use resulted from a damaged, unsalvageable well and related equipment in the Louisiana Austin Chalk. The related fair value was measured based on the salvage value. The combined effects of proved property impairments were recorded within impairment expense of our consolidated statements of income. Unproved properties – During the year ended December 31, 2020, we impaired $78 million of unproved property leases in Louisiana Austin Chalk in our United States segment. The impairment resulted from a combination of factors including our geological assessment, seismic information, timing of lease expiration dates and decisions not to develop acreage deemed non-core. This cost was recorded within exploration expense of our consolidated statements of income. Goodwill – During the year ended December 31, 2020, we impaired the entire balance of $95 million goodwill in the International reporting unit. See Note 14 for further information. This amount is reflected within impairment expense of our consolidated statements of income. Equity method investment – During the year ended December 31, 2020, we recognized $171 million charges for our equity method investments. During the second and third quarters of 2020, the continuation of the depressed commodity prices, along with a reduction of our long-term price forecasts of a gas index in which one of our equity method investees transacts, caused us to perform a review of one of our equity method investments. Our review concluded that a loss of our investment value in one was other than temporary, and we recorded an impairment as the result. Our remaining investments in equity method investees did not experience losses in value that would trigger impairment review. The impairments of our equity method investments were recognized in income (loss) from equity method investments in our consolidated statements of income. We estimated the fair value of our equity method investment using an income approach, specifically utilizing a discounted cash flow analysis. The estimated fair value was based on significant inputs not observable in the market, such as the amount of gas processed by the plant, future commodity prices, forecasted operating expenses, discount rate and estimated cash returned to shareholders. The impairments caused us to incur a basis differential between the net book value of our investment and the amount of our underlying share of equity in the investee’s net assets. See Note 23 for further information related to the basis differential. |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Asset Retirement Obligations Asset retirement obligations primarily consist of estimated costs to remove, dismantle and restore land or seabed at the end of oil and gas production operations. Changes in asset retirement obligations were as follows: December 31, (In millions) 2022 2021 Beginning balance as of January 1 $ 316 $ 254 Incurred liabilities, including acquisitions 55 14 Settled liabilities, including dispositions (20) (6) Accretion expense (included in depreciation, depletion and amortization) 14 12 Revisions of estimates (25) 42 Ending balance as of December 31 $ 340 $ 316 Ending balance as of December 31, short-term $ 45 $ 28 • 2022 — During the year ended December 31, 2022, we incurred a liability of $41 million as a result of our acquisition of the Eagle Ford assets of Ensign Natural Resources. See Note 4 for further information regarding the acquisition. • 2021 — During the year ended December 31, 2021, we had revisions of estimates totaling $37 million related to anticipated costs for decommissioning certain wells, pipelines and production facilities for previously divested offshore non-producing long-lived assets located in the Gulf of Mexico. As of December 31, 2021, $14 million of these Gulf of Mexico related revisions of estimates were classified as short-term. See Note 25 for further information. Of the $37 million, approximately $30 million was recognized as impairment expense within our consolidated statements of income during the year ended December 31, 2021. See Note 1 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases Lessee Operating Leases We enter into various lease agreements to support our operations including drilling rigs, well fracturing equipment, compressors, buildings, vessels, vehicles and miscellaneous field equipment. We primarily act as a lessee in these transactions and the majority of our existing leases are classified as either short-term or long-term operating leases. The majority of the drilling rig agreements and all our fracturing equipment agreements are classified as short-term leases based on the noncancellable period for which we have the right to use the equipment and assessment of options present in each agreement. We also incur variable lease costs under these agreements primarily related to chemicals and sand used in fracturing operations or various additional on-demand equipment and labor. The lease costs associated with the drilling rigs and fracturing equipment are primarily capitalized as part of the well costs. Our existing long-term leases are comprised of compressors, drilling rigs, vessels, vehicles and miscellaneous field equipment. Our lease agreements may require both fixed and variable payments; none of the variable payments are rate or index-based, therefore only fixed payments were considered for recognizing lease liabilities and right-of-use (‘ROU’) assets related to long-term leases. Also, based on our election not to separate the lease and nonlease components, fixed payments related to equipment, crew and other nonlease components are included in the initial measurement of lease liabilities and ROU assets for all asset classes, except for vessels. For vessels, the contractual consideration was allocated between lease and nonlease components based on estimates provided by service providers. Our leased assets may be used in joint oil and gas operations with other working interest owners. We recognize lease liabilities and ROU assets only when we are the signatory to a contract as an operator of joint properties. Such lease liabilities and ROU assets are determined based on gross contractual obligations. As we use the leased assets for joint operations, we have the contractual right to recover the other working interest owners’ share of lease costs. As a result, our lease costs are presented on a net basis, reduced for any costs recoverable from other working interest owners. Finance Leases In 2018, we signed an agreement with an owner/lessor to construct and lease a new build-to-suit office building in Houston, Texas. The initial lease term is five years and commenced in late September 2021 after the new Houston office was ready for occupancy. In March 2022, we made our first cash lease payment. During the year ended December 31, 2022, we have made cash lease payments totaling approximately $11 million. At the end of the initial lease term, we can negotiate to extend the lease term for an additional five years, subject to the approval of the participants; purchase the property subject to certain terms and conditions; or remarket the property to an unrelated third party. The lease contains a residual value guarantee of 100% of the total acquisition and construction costs. Balance Sheet Information Balance sheet information related to ROU assets and lease liabilities was as follows: December 31, (In millions) 2022 2021 ROU assets: Balance Sheet Location: Operating leases Other noncurrent assets $ 123 $ 59 Finance leases Other noncurrent assets 24 28 Total ROU assets $ 147 $ 87 Lease liabilities: Current liabilities Operating leases Other current liabilities $ 94 $ 40 Finance leases Other current liabilities 6 6 Noncurrent liabilities Operating leases Deferred credits and other liabilities 32 23 Finance leases Deferred credits and other liabilities 18 24 Total lease liabilities $ 150 $ 93 Statements of Income Information The table below presents our net lease costs for the years ended December 31, 2022, 2021 and 2020. December 31, (In millions) 2022 2021 2020 Operating lease costs: Short-term lease costs (a) $ 164 $ 121 $ 170 Long-term lease costs (b) 74 64 75 Variable lease costs (c) 37 33 23 Finance lease costs: Amortization of ROU assets 4 3 — Total lease costs $ 279 $ 221 $ 268 Other information: Cash paid for amounts included in the measurement of operating lease liabilities $ 90 $ 73 $ 100 ROU assets obtained in exchange for new operating lease liabilities (d) 117 15 46 ROU assets obtained in exchange for new finance lease liabilities (e) — 28 — Changes to ROU assets resulting from modifications or cancellations of operating leases $ 40 $ (13) $ (68) (a) Represents our net share of lease costs arising from leases of less than one year but longer than one month that were not included in the lease liability. (b) Represents our net share of the ROU asset amortization and the interest expense. (c) Represents our net share of variable lease payments that were not included in the lease liability. (d) Represents the cumulative value of operating lease ROU assets recognized at lease inception and is amortized as the ROU asset is utilized. (e) Represents the cumulative value of finance lease ROU assets recognized at lease inception and is amortized as the ROU asset is utilized. Annual Lease Maturities The remaining annual undiscounted cash flows associated with long-term leases and the reconciliation of these cash flows to the lease liabilities recognized on the consolidated balance sheet is summarized below. (In millions) Operating Lease Obligations Finance Lease Obligations Total Lease Obligations 2023 $ 101 $ 7 $ 108 2024 20 7 27 2025 6 6 12 2026 2 5 7 2027 — — — Thereafter — — — Total undiscounted lease payments $ 129 $ 25 $ 154 Less: amount representing interest 3 1 4 Total lease liabilities $ 126 $ 24 $ 150 Less: current portion of lease liability as of December 31, 2022 94 6 100 Long-term lease liability as of December 31, 2022 $ 32 $ 18 $ 50 Other Information We use our periodic incremental borrowing rate to discount future contractual payments to their present values. For our operating leases, the weighted average lease term is two years, and the discount rate is 5% as of December 31, 2022. For our finance leases, the weighted-average remaining lease term is four years, and the discount rate is 2% as of December 31, 2022. Lessor Our wholly owned subsidiary, MEGPL, is a lessor for residential housing in Equatorial Guinea, which is occupied by EG Holdings, a related party equity method investee – see Note 23 . The lease was classified as an operating lease and expires in 2024, with a lessee option to extend through 2034. Lease payments are fixed for the entire duration of the agreement at approximately $6 million per year. Our lease income is reported in other income in our consolidated statements of income for all periods presented. The undiscounted cash flows to be received under this lease agreement are summarized below. (In millions) Operating Lease Future Cash Receipts 2023 $ 6 2024 6 2025 6 2026 6 2027 6 Thereafter 42 Total undiscounted cash flows $ 72 |
Leases | Leases Lessee Operating Leases We enter into various lease agreements to support our operations including drilling rigs, well fracturing equipment, compressors, buildings, vessels, vehicles and miscellaneous field equipment. We primarily act as a lessee in these transactions and the majority of our existing leases are classified as either short-term or long-term operating leases. The majority of the drilling rig agreements and all our fracturing equipment agreements are classified as short-term leases based on the noncancellable period for which we have the right to use the equipment and assessment of options present in each agreement. We also incur variable lease costs under these agreements primarily related to chemicals and sand used in fracturing operations or various additional on-demand equipment and labor. The lease costs associated with the drilling rigs and fracturing equipment are primarily capitalized as part of the well costs. Our existing long-term leases are comprised of compressors, drilling rigs, vessels, vehicles and miscellaneous field equipment. Our lease agreements may require both fixed and variable payments; none of the variable payments are rate or index-based, therefore only fixed payments were considered for recognizing lease liabilities and right-of-use (‘ROU’) assets related to long-term leases. Also, based on our election not to separate the lease and nonlease components, fixed payments related to equipment, crew and other nonlease components are included in the initial measurement of lease liabilities and ROU assets for all asset classes, except for vessels. For vessels, the contractual consideration was allocated between lease and nonlease components based on estimates provided by service providers. Our leased assets may be used in joint oil and gas operations with other working interest owners. We recognize lease liabilities and ROU assets only when we are the signatory to a contract as an operator of joint properties. Such lease liabilities and ROU assets are determined based on gross contractual obligations. As we use the leased assets for joint operations, we have the contractual right to recover the other working interest owners’ share of lease costs. As a result, our lease costs are presented on a net basis, reduced for any costs recoverable from other working interest owners. Finance Leases In 2018, we signed an agreement with an owner/lessor to construct and lease a new build-to-suit office building in Houston, Texas. The initial lease term is five years and commenced in late September 2021 after the new Houston office was ready for occupancy. In March 2022, we made our first cash lease payment. During the year ended December 31, 2022, we have made cash lease payments totaling approximately $11 million. At the end of the initial lease term, we can negotiate to extend the lease term for an additional five years, subject to the approval of the participants; purchase the property subject to certain terms and conditions; or remarket the property to an unrelated third party. The lease contains a residual value guarantee of 100% of the total acquisition and construction costs. Balance Sheet Information Balance sheet information related to ROU assets and lease liabilities was as follows: December 31, (In millions) 2022 2021 ROU assets: Balance Sheet Location: Operating leases Other noncurrent assets $ 123 $ 59 Finance leases Other noncurrent assets 24 28 Total ROU assets $ 147 $ 87 Lease liabilities: Current liabilities Operating leases Other current liabilities $ 94 $ 40 Finance leases Other current liabilities 6 6 Noncurrent liabilities Operating leases Deferred credits and other liabilities 32 23 Finance leases Deferred credits and other liabilities 18 24 Total lease liabilities $ 150 $ 93 Statements of Income Information The table below presents our net lease costs for the years ended December 31, 2022, 2021 and 2020. December 31, (In millions) 2022 2021 2020 Operating lease costs: Short-term lease costs (a) $ 164 $ 121 $ 170 Long-term lease costs (b) 74 64 75 Variable lease costs (c) 37 33 23 Finance lease costs: Amortization of ROU assets 4 3 — Total lease costs $ 279 $ 221 $ 268 Other information: Cash paid for amounts included in the measurement of operating lease liabilities $ 90 $ 73 $ 100 ROU assets obtained in exchange for new operating lease liabilities (d) 117 15 46 ROU assets obtained in exchange for new finance lease liabilities (e) — 28 — Changes to ROU assets resulting from modifications or cancellations of operating leases $ 40 $ (13) $ (68) (a) Represents our net share of lease costs arising from leases of less than one year but longer than one month that were not included in the lease liability. (b) Represents our net share of the ROU asset amortization and the interest expense. (c) Represents our net share of variable lease payments that were not included in the lease liability. (d) Represents the cumulative value of operating lease ROU assets recognized at lease inception and is amortized as the ROU asset is utilized. (e) Represents the cumulative value of finance lease ROU assets recognized at lease inception and is amortized as the ROU asset is utilized. Annual Lease Maturities The remaining annual undiscounted cash flows associated with long-term leases and the reconciliation of these cash flows to the lease liabilities recognized on the consolidated balance sheet is summarized below. (In millions) Operating Lease Obligations Finance Lease Obligations Total Lease Obligations 2023 $ 101 $ 7 $ 108 2024 20 7 27 2025 6 6 12 2026 2 5 7 2027 — — — Thereafter — — — Total undiscounted lease payments $ 129 $ 25 $ 154 Less: amount representing interest 3 1 4 Total lease liabilities $ 126 $ 24 $ 150 Less: current portion of lease liability as of December 31, 2022 94 6 100 Long-term lease liability as of December 31, 2022 $ 32 $ 18 $ 50 Other Information We use our periodic incremental borrowing rate to discount future contractual payments to their present values. For our operating leases, the weighted average lease term is two years, and the discount rate is 5% as of December 31, 2022. For our finance leases, the weighted-average remaining lease term is four years, and the discount rate is 2% as of December 31, 2022. Lessor Our wholly owned subsidiary, MEGPL, is a lessor for residential housing in Equatorial Guinea, which is occupied by EG Holdings, a related party equity method investee – see Note 23 . The lease was classified as an operating lease and expires in 2024, with a lessee option to extend through 2034. Lease payments are fixed for the entire duration of the agreement at approximately $6 million per year. Our lease income is reported in other income in our consolidated statements of income for all periods presented. The undiscounted cash flows to be received under this lease agreement are summarized below. (In millions) Operating Lease Future Cash Receipts 2023 $ 6 2024 6 2025 6 2026 6 2027 6 Thereafter 42 Total undiscounted cash flows $ 72 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Goodwill is tested for impairment on an annual basis, or between annual tests when events or changes in circumstances indicate the fair value may have been reduced below its carrying value. During the first quarter of 2020, a global pandemic caused a substantial deterioration in the worldwide demand of hydrocarbons. The commensurate decline in our market capitalization during the first quarter indicated that it was more likely than not that the fair value of the International reporting unit was less than its carrying value. We estimated the fair value of our International reporting unit using a combination of market and income approaches. The market approach referenced observable inputs specific to us and our industry, such as the price of our common equity, our enterprise value and valuation multiples of us and peers from the investor analyst community. The income approach utilized discounted cash flows, which were based on forecasted assumptions. These valuation methodologies represent Level 3 fair value measurements. Based on the results, we concluded our goodwill was fully impaired, and recorded an impairment of $95 million in the consolidated statements of income for the first quarter of 2020. This represented the entirety of our goodwill on our consolidated balance sheet. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives We may use derivatives to manage a portion of our exposure to commodity price risk, commodity locational risk and interest rate risk. See Note 1 for discussion of the types of derivatives we may use and the underlying reasons. See Note 16 for further information regarding the fair value measurement of derivative instruments. All of our commodity derivatives and interest rate derivatives are subject to enforceable master netting arrangements or similar agreements under which we report net amounts. The following tables present the gross fair values of our open derivative instruments and the reported net amounts along with their locations in our consolidated balance sheets. December 31, 2022 (In millions) Asset Liability Net Asset (Liability) Balance Sheet Location Not Designated as Hedges Commodity $ 10 $ — $ 10 Other current assets Total Not Designated as Hedges $ 10 $ — $ 10 Cash Flow Hedges Interest Rate $ 9 $ — $ 9 Other current assets Interest Rate 15 — 15 Other noncurrent assets Total Designated Hedges $ 24 $ — $ 24 Total $ 34 $ — $ 34 December 31, 2021 (In millions) Asset Liability Net Asset (Liability) Balance Sheet Location Not Designated as Hedges Commodity $ 1 $ 8 $ (7) Other current liabilities Interest Rate 27 — 27 Other noncurrent assets Total Not Designated as Hedges $ 28 $ 8 $ 20 Cash Flow Hedges Interest Rate $ — $ 3 $ (3) Other current liabilities Interest Rate — 2 (2) Deferred credits and other liabilities Total Designated Hedges $ — $ 5 $ (5) Total $ 28 $ 13 $ 15 Derivatives Not Designated as Hedges Commodity Derivatives We have entered into multiple natural gas derivatives indexed to Henry Hub as noted in the table below, related to a portion of our forecasted U.S. sales through 2023. These derivatives consist of three-way collars and two-way collars. Three-way collars consist of a sold call (ceiling), a purchased put (floor) and a sold put. The ceiling price is the maximum we will receive for the contract volumes; the floor is the minimum price we will receive, unless the market price falls below the sold put strike price. In this case, we receive the Henry Hub price plus the difference between the floor and the sold put price. Two-way collars only consist of a sold call (ceiling) and a purchased put (floor). These natural gas derivatives were not designated as hedges. The following table sets forth outstanding derivative contracts as of December 31, 2022 and the weighted average prices for those contracts: 2023 First Quarter Second Quarter Third Quarter Fourth Quarter Natural Gas Henry Hub Two-Way Collars Volume (MMBtu/day) 50,000 — — — Weighted average price per MMBtu: Ceiling $ 19.28 $ — $ — $ — Floor $ 5.00 $ — $ — $ — Henry Hub Three-Way Collars Volume (MMBtu/day) 50,000 50,000 50,000 50,000 Weighted average price per MMBtu: Ceiling $ 11.14 $ 11.14 $ 11.14 $ 11.14 Floor $ 4.00 $ 4.00 $ 4.00 $ 4.00 Sold Put $ 2.50 $ 2.50 $ 2.50 $ 2.50 The unrealized and realized gain (loss) impact of our commodity derivative instruments appears in the table below and is reflected in net gain (loss) on commodity derivatives in the consolidated statements of income. Year Ended December 31, (In millions) 2022 2021 2020 Unrealized gain (loss) on derivative instruments, net $ 18 $ 16 $ (27) Realized gain (loss) on derivative instruments, net (a) $ (132) $ (399) $ 143 (a) During the years ended 2022 and 2021, net cash paid for settled derivative positions was $153 million and $356 million. During the year ended 2020, net cash received for settled derivative positions was $123 million. Interest Rate Swaps During 2020, we entered into forward starting interest rate swaps with a notional amount of $500 million to hedge the variations in cash flows related to fluctuations in the LIBOR benchmark interest rate related to forecasted interest payments of a future d ebt issuance in 2022. Each respective derivative contract can be tied to an anticipated underlying dollar notional amount. During the third quarter of 2020, we de-designated these forward starting interest rate swaps previously designated as cash flow hedges. In the first quarter of 2021, the net deferred loss of $2 million in accumulated other comprehensive income related to these de-designated forward starting interest rate swaps was reclassified from accumulated other comprehensive income into earnings as an adjustment to net interest and other within our consolidated statements of income , as we fully redeemed the remainder of our outstanding 2022 Notes in April 2021. We closed the positions and settled the interest rate swaps in November 2021. During the year ended December 31, 2021, we recorded a $28 million mark-to-market gain to net interest and other within our consolidated statements of income to reflect the change in value of these interest rate swaps. During 2020, we entered into forward starting interest rate swaps with a notional amount of $350 million to hedge variations in cash flows arising from fluctuations in the LIBOR benchmark interest rate related to forecasted interest payments of a future debt issuance in 2025. The expected proceeds of the future debt issuance were intended to refinance our $900 million 3.85% Senior Notes due 2025 (“2025 Notes”). During the second quarter of 2021, we de-designated these forward interest rate swaps previously designated as cash flow hedges because we no longer planned to refinance the 2025 Notes and reclassified the $31 million cumulative gain related to these hedges from accumulated other comprehensive income into earnings as an adjustment to net interest and other within our consolidated statements of income. In September 2021, we fully redeemed these 2025 Notes. During the year ended December 31, 2021, we recorded a total of $27 million mark-to-market net gain to net interest and other within our consolidated statements of income related to these swaps . In March 2022, we closed these positions and settled the interest rate swaps for proceeds of $44 million. During the year ended December 31, 2022, we recorded a cumulative $17 million gain within net interest and other within our consolidated statements of income related to these swaps. During the second quarter of 2021, we de-designated $25 million of the $320 million Houston office cash flow hedges (discussed further in the Derivatives Designated as Cash Flow Hedges section below), as the construction cost budget estimate was reduced. These interest rate swap contracts began to settle in January 2022. During the second quarter of 2022, we closed the $25 million de-designated hedges, which resulted in cash proceeds of approximately $2 million. As of December 31, 2022, the remaining open interest rate swaps for the Houston office (with a notional amount of $295 million) are still classified as cash flow hedges. The following table presents, by maturity date, information about our de-designated forward starting interest rate swap agreements. These positions were fully liquidated as of December 31, 2022. December 31, 2022 December 31, 2021 Maturity Date Aggregate Notional Amount (in millions) Weighted Average, LIBOR Aggregate Notional Amount (in millions) Weighted Average, LIBOR June 1, 2025 $ — — % $ 350 0.95 % September 9, 2026 $ — — % $ 25 1.45 % Derivatives Designated as Cash Flow Hedges During 2019, we entered into forward starting interest rate swaps with a total notional amount of $320 million to hedge variations in cash flows related to the 1-month LIBOR component of future lease payments of our Houston office. During the second quarter of 2021, we de-designated $25 million of these hedges as the construction cost budget estimate associated with the project was reduced. During the fourth quarter of 2022, we amended our Houston office lease and forward starting interest rate swaps to transfer from LIBOR to SOFR (See Note 2 for further details). As of December 31, 2022, the notional amount of open interest rate swaps for the Houston office is $295 million. The Houston office lease commenced in September 2021, however, our first cash lease payment for February 2022 rent was paid in March 2022. The first settlement date for the interest rate swaps was in January 2022. The last swap will mature in September 2026. During the year ended December 31, 2022, the net cash received/paid for the settled interest rate swap positions was immaterial. As of December 31, 2022, we expect to reclassify $10 million gain from accumulated other comprehensive income into the income statement over the next twelve months. See Note 13 for further details regarding Houston office lease. The following table presents, by maturity date, information about our interest rate swap agreements, including the fixed weighted average interest rate. December 31, 2022 December 31, 2021 Maturity Date Aggregate Notional Amount (in millions) Weighted Average, SOFR Aggregate Notional Amount (in millions) Weighted Average, LIBOR September 9, 2026 $ 295 1.43 % $ 295 1.52 % |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair Values – Recurring The following tables present assets and liabilities accounted for at fair value on a recurring basis as of December 31, 2022 and 2021 by hierarchy level. December 31, 2022 (In millions) Level 1 Level 2 Level 3 Total Derivative instruments, assets Commodity (a) $ — $ 10 $ — $ 10 Interest rate - designated as cash flow hedges — 24 — 24 Derivative instruments, assets $ — $ 34 $ — $ 34 December 31, 2021 (In millions) Level 1 Level 2 Level 3 Total Derivative instruments, assets Interest rate - not designated as cash flow hedges $ — $ 27 $ — $ 27 Derivative instruments, assets $ — $ 27 $ — $ 27 Derivative instruments, liabilities Commodity (a) $ (2) $ (5) $ — $ (7) Interest rate - designated as cash flow hedges — (5) — (5) Derivative instruments, liabilities $ (2) $ (10) $ — $ (12) Total $ (2) $ 17 $ — $ 15 (a) Derivative instruments are recorded on a net basis in our consolidated balance sheet (See Note 15 ). As of December 31, 2022, our commodity derivatives include three-way collars and two-way collars. These instruments are measured at fair value using either a Black-Scholes or a modified Black-Scholes Model. For three-way collars and two-way collars, inputs to the models include commodity prices and implied volatility and are categorized as Level 2 because predominantly all assumptions and inputs are observable in active markets throughout the term of the instruments. The forward starting interest rate swaps are measured at fair value with a market approach using actionable broker quotes, which are Level 2 inputs. See Note 15 for details on the forward starting interest swaps. Fair Values – Goodwill See Note 14 for detail information relating to goodwill. Fair Values – Nonrecurring See Note 11 for detail on our fair values related to impairments. Fair Values – Financial Instruments Our current assets and liabilities include financial instruments, the most significant of which are receivables, the current portion of our long-term debt and payables. We believe the carrying values of our receivables and payables approximate fair value. Our fair value assessment incorporates a variety of considerations, including (1) the short-term duration of the instruments, (2) our credit rating and (3) our historical incurrence of and expected future insignificant bad debt expense, which includes an evaluation of counterparty credit risk. The following table summarizes financial instruments, excluding receivables, payables and derivative financial instruments, and their reported fair values by individual balance sheet line item at December 31, 2022 and 2021. December 31, 2022 2021 (In millions) Fair Carrying Fair Carrying Financial assets Current assets $ — $ — $ 11 $ 10 Other noncurrent assets 10 28 12 27 Total financial assets $ 10 $ 28 $ 23 $ 37 Financial liabilities Other current liabilities (a) $ 140 $ 204 $ 99 $ 136 Long-term debt, including current portion (b) 5,806 5,948 4,705 4,033 Deferred credits and other liabilities (c) 73 73 46 46 Total financial liabilities $ 6,019 $ 6,225 $ 4,850 $ 4,215 (a) Included in the fair value and the carrying value of other current liabilities at December 31, 2022 are $31 million of current liabilities assumed as a part of our acquisition of the Eagle Ford assets of Ensign Natural Resources during the fourth quarter of 2022. See Note 4 for details on the acquisition. (b) Excludes debt issuance costs. (c) Included in the fair value and the carrying value of deferred credits and other liabilities at December 31, 2022 are $58 million of noncurrent liabilities assumed as a part of our acquisition of the Eagle Ford assets of Ensign Natural Resources during the fourth quarter of 2022. See Note 4 for details on the acquisition. Fair values of our financial assets included in other noncurrent assets, and of our financial liabilities included in other current liabilities and deferred credits and other liabilities, are measured using an income approach and most inputs are internally generated, which results in a Level 3 classification. Estimated future cash flows are discounted using a rate deemed appropriate to obtain the fair value. Our fixed rate debt instruments are publicly traded. The fair value of our fixed rate debt is measured using a market approach, based upon quotes from major financial institutions, which are Level 2 inputs. Our floating rate debt is non-public and consists of borrowings under our Term Loan Facility and Revolving Credit Facility. The fair value of our floating rate debt approximates the carrying value and is estimated based on observable market-based inputs including interest rates and credit spreads, which results in a Level 2 classification. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt Our long-term debt consists of the following: December 31, (In millions) 2022 2021 Term Loan Facility due 2024 $ 1,500 $ — Revolving Credit Facility due 2027 450 — Senior unsecured notes: 9.375% notes due 2022 — 32 Series A notes due 2022 — 3 8.500% notes due 2023 (a) 70 70 8.125% notes due 2023 (a) 131 131 4.400% notes due 2027 (b) 1,000 1,000 6.800% notes due 2032 (b) 550 550 6.600% notes due 2037 (b) 750 750 5.200% notes due 2045 (b) 500 500 Bonds: (c) 2.00% bonds due 2037 200 200 2.10% bonds due 2037 200 200 2.20% bonds due 2037 200 200 2.125% bonds due 2037 200 200 2.375% bonds due 2037 200 200 Total debt $ 5,951 $ 4,036 Unamortized discount (3) (3) Unamortized debt issuance cost (25) (19) Total debt, net $ 5,923 $ 4,014 (a) In the event of a change in control, as defined in the related agreements, debt obligations totaling $201 million at December 31, 2022 may be declared immediately due and payable. (b) These notes contain a make-whole provision allowing us to repay the debt at a premium to market price. (c) Mandatory purchase dates for these bonds: April 1, 2023 for the 2.00% bonds; July 1, 2024 for the 2.10% bonds and 2.125% bonds; July 1, 2026 for the 2.20% bonds and 2.375% bonds. Subsequent to the various mandatory purchase dates, we will also have the right to convert and remarket these bonds any time up to the 2037 maturity date. Term Loan Facility In November 2022, we entered into a term credit agreement, which provides for a two-year $1.5 billion term loan facility (“Term Loan Facility”) and we borrowed the full amount thereunder on December 27, 2022. Borrowings under the Term Loan Facility can be prepaid without penalty and generally bear interest at term SOFR plus 10 basis points plus an applicable margin of 175 basis points. The applicable margin varies based on our credit ratings. The interest rate on borrowings under the Term Loan Facility was 6.17% as of December 31, 2022. The Term Loan Facility includes a covenant requiring our total debt to total capitalization ratio not to exceed 65% as of the last day of each fiscal quarter. In the event of a default, the lenders holding more than half of the commitments may terminate all of the commitments under the Term Loan Facility and require the immediate repayment of all outstanding borrowings under the Term Loan Facility. As of December 31, 2022, we were in compliance with this covenant with a ratio of 26%. Revolving Credit Facility On July 28, 2022, we executed the seventh amendment to our unsecured revolving credit facility (“Credit Facility”). The primary changes to the Credit Facility effected by this amendment were to (i) extend the maturity date of the Credit Facility by three years to July 28, 2027, (ii) decrease the size of the Credit Facility from $3.1 billion to $2.5 billion, (iii) replace the LIBOR interest rate benchmark with SOFR and (iv) implement certain revisions to the Pricing Schedule. The Credit Facility includes a covenant requiring our total debt to total capitalization ratio not to exceed 65% as of the last day of each fiscal quarter. In the event of a default, the lenders holding more than half of the commitments may terminate the commitments under the Credit Facility and require the immediate repayment of all outstanding borrowings and the cash collateralization of all outstanding letters of credit under the Credit Facility. As of December 31, 2022, we were in compliance with this covenant with a ratio of 26%. During the fourth quarter of 2022, we had $450 million in borrowings under the Credit Facility. As of December 31, 2022, $2.1 billion was available for borrowing under the Credit Facility. The interest rate on borrowings under the Credit Facility was 5.92% as of December 31, 2022. Debt redemption In May 2022, we redeemed the $32 million 9.375% Senior Notes on the maturity date. In September 2021, we redeemed our outstanding $900 million 3.85% Senior Notes due 2025. We incurred $102 million in costs related to the make-whole provision premium and the write off of unamortized discount and issuance costs. In April 2021, we redeemed our outstanding $500 million 2.8% Senior Notes due 2022. We incurred $19 million in costs related to a make-whole provision premium and the write off of unamortized discount and issuance costs. Long-term debt maturity As of December 31, 2022, maturities of long-term debt over the next five years, excluding interest to be accrued, as of were as follows: (In millions) 2023 $ 402 2024 1,900 2025 — 2026 400 2027 1,450 Thereafter 1,799 Total long-term debt, including current portion $ 5,951 |
Incentive Based Compensation
Incentive Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Incentive Based Compensation | Incentive Based Compensation Description of stock-based compensation plans – The Marathon Oil Corporation 2019 Incentive Compensation Plan (the “2019 Plan”) was approved by our stockholders in May 2019 and authorizes the Compensation Committee of the Board of Directors to grant stock options, stock appreciation rights (“SARs”), stock awards (including restricted stock and restricted stock unit awards), performance unit awards and cash awards to employees. The 2019 Plan also allows us to provide equity compensation to our non-employee directors. No more than 27.9 million shares of our common stock may be issued under the 2019 Plan. In connection with the granting of an award under the 2019 Plan, the number of shares available for issuance under the 2019 Plan will be reduced by one share for each share of our common stock in respect of which the award is granted, except the awards that by their terms do not permit settlement in shares of our common stock will not reduce the number of shares of common stock available for issuance under the 2019 Plan. Shares subject to awards under the 2019 Plan that are forfeited, terminated or expire unexercised become available for future grants. In addition, the number of shares of our common stock reserved for issuance under the 2019 Plan will not be increased by shares tendered to satisfy the purchase price of an award, exchanged for other awards or withheld to satisfy tax withholding obligations. Shares issued as a result of awards granted under the 2019 Plan are generally funded out of common stock held in treasury, except to the extent there are insufficient treasury shares, in which case new common shares are issued. After approval of the 2019 Plan, no new grants were or will be made from any prior plans. Any awards previously granted under any prior plans shall continue to be exercisable in accordance with their original terms and conditions. Stock-based awards under the plans Stock options – We last granted stock options under the 2019 Plan in 2020. Our stock options represent the right to purchase shares of our common stock at its fair market value on the date of grant. In general, our stock options vest ratably over a three-year period and have a maximum term of ten years from the date they are granted. SARs – At December 31, 2022, there are no SARs outstanding. Restricted stock – We last granted restricted stock under the 2019 Plan in 2020. The restricted stock awards granted to officers generally vest three years from the date of grant, contingent on the recipient’s continued employment. We also grant restricted stock to certain non-officer employees based on their performance within certain guidelines and for retention purposes. The restricted stock awards to non-officers generally vest ratably over a three-year period from the date of grant, contingent on the recipient’s continued employment. Prior to vesting, all restricted stock recipients have the right to vote such stock and receive dividends thereon. The non-vested shares of restricted stock are not transferable and are held by our transfer agent. Stock-based performance unit awards – We grant stock-based performance units to officers under the 2019 Plan. During 2022, we granted 167,043 stock-based performance units to eligible officers, which are settled in shares. The grant date fair value per unit was $34.07, as calculated using a Monte Carlo valuation model. At the grant date, each unit represents the value of one share of our common stock. These units are settled in shares, and the number of shares of our common stock to be paid is based on the vesting percentage, which can be from 0% to 200% based on performance achieved during the performance period and as determined by the Compensation Committee of the Board of Directors (“Compensation Committee”). The performance goals are tied to our total shareholder return (“TSR”) as compared to TSR for a group, which is determined by the Compensation Committee and includes peer companies, the S&P Energy Index and the S&P 500 Index. Also, dividend equivalents accrue during the performance period and will be paid in cash following the end of the performance period based on the amount of dividends credited on shares of our common stock over the performance period multiplied by the number of units that vest. During 2022, we granted 167,043 stock-based performance unit awards to eligible officers, which are settled in cash. At the grant date for these stock-based performance units, each unit represents the value of one share of our common stock. The benefit amount to be paid is based on the product of (i) the number of units granted, (ii) the vesting percentage and (iii) the average daily closing price of our common stock during the final 30 calendar days ending on the last trading day of the performance period, subject to the banking feature described below. The vesting percentage can range from 0% to 200%, which is based on performance achieved over a two-year performance period. The performance metric is a predetermined amount of cumulative free cash flow, as defined by the award agreement, generated by the Company over the performance period. The units have a banking feature whereby the stock price valuation and vesting percentage are fixed at no less than 50%, and then again at 100%, if achieved during the performance period. Once those milestones are reached, the vesting percentage will not fall below those banked percentage amounts even if cumulative free cash flow subsequently declines during the performance period, subject to the Compensation Committee’s discretion as described below. Dividend equivalents accrue during the performance period and will be paid in cash following the end of the performance period based on the amounts of dividends credited on shares of our common stock over the performance period multiplied by the number of units that vest. As of December 31, 2022, the fair value of each cash-settled performance unit was $26.83. As set forth in the award agreement terms, the Compensation Committee retains discretion to reduce the vesting percentage and any bank values and determine free cash flow achievement for these awards. Restricted stock units – We maintain an equity compensation program for our non-employee directors. All non-employee directors receive annual grants of common stock units. For units granted between 2012 and 2020, common shares will generally vest following completion of board service or three years from the date of grant, whichever is earlier. For units granted in 2021 and forward, common shares will generally vest following completion of board services or one year from the date of grant, whichever is earlier. However, for any units granted in 2017 or later, our non-employee directors may elect to defer settlement of their common stock units until after they cease serving on the Board. Under the 2019 Plan, we also grant restricted stock units to officers, which, depending on grant agreement terms, generally vest three years from the date of the grant or vest ratably over a three-year period and restricted stock units to certain non-officer employees, which generally vest ratably over a three-year period. Both awards are contingent on the recipient’s continued employment. Grants of restricted stock units to these non-officer employees are generally based on their performance and for retention purposes. Common shares will be issued for these restricted stock units after vesting. Prior to vesting, recipients of restricted stock units typically receive dividend equivalent payments, but they may not vote. Total stock-based compensation expense – Total employee stock-based compensation expense was $50 million, $43 million and $55 million in 2022, 2021 and 2020. The total related income tax benefit was $11 million for 2022. Due to the full valuation allowance on our net federal deferred tax assets in 2021 and 2020, we did not recognize a tax benefit in the consolidated statements of income during those years. Cash received upon exercise of stock option awards was $32 million in 2022, $5 million in 2021, and $1 million in 2020. The total related income tax benefit was $7 million for 2022. Due to the full valuation allowance on our net federal deferred tax assets in 2021 and 2020, there were no tax benefits recognized for deductions for stock awards settled during those years. Stock option awards – During 2020, we granted stock option awards to officer employees. The weighted average grant date fair value of these awards was based on the following weighted average Black-Scholes assumptions: 2020 Exercise price per share $ 10.47 Expected annual dividend yield 1.9 % Expected life in years 6.14 Expected volatility 44 % Risk-free interest rate 1.5 % Weighted average grant date fair value of stock option awards granted $ 3.82 The following is a summary of stock option award activity in 2022. Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in millions) Outstanding at beginning of year 4,274,304 $ 22.13 Granted — $ — Exercised/Vested (2,176,680) $ 14.73 Canceled (419,100) $ 33.56 Outstanding at end of year 1,678,524 $ 28.86 2 years $ 5 Exercisable at end of year 1,389,461 $ 32.69 1 year $ — Expected to vest 289,063 $ 10.47 7 years $ 5 The intrinsic value of stock option awards exercised was $23 million in 2022, $3 million in 2021, and immaterial in 2020. As of December 31, 2022, unrecognized compensation cost related to stock option awards was immaterial. Restricted stock awards and restricted stock units – The following is a summary of restricted stock and restricted stock unit award activity in 2022. Awards Weighted Average Grant Date Fair Value Unvested at beginning of year 5,888,242 $ 10.98 Granted 1,848,387 $ 22.81 Vested (2,863,779) $ 11.99 Canceled (221,654) $ 14.61 Unvested at end of year 4,651,196 $ 14.89 The vesting date fair value of restricted stock awards and restricted stock units which vested during 2022, 2021 and 2020 was $34 million, $39 million and $49 million. The weighted average grant date fair value of restricted stock awards was $14.89, $10.98 and $11.72 for awards unvested at December 31, 2022, 2021 and 2020. As of December 31, 2022, there was $35 million of unrecognized compensation cost related to restricted stock awards and restricted stock units, which is expected to be recognized over a weighted average period of 1 year. Stock-based performance unit awards – During 2022, 2021 and 2020, we granted 167,043, 307,473 and 1,038,676 stock-based performance unit awards to be settled in shares to officers. At December 31, 2022, there were 1,230,274 units outstanding. During 2022 and 2021, we also granted 167,043 and 307,473 stock-based performance unit awards to be settled in cash to officers. At December 31, 2022, there were 463,802 units outstanding. Total stock-based performance unit awards expense was $18 million, $11 million and $5 million in 2022, 2021 and 2020. The key assumptions used in the Monte Carlo simulation to determine the grant date fair value of stock-based performance units granted in 2022, 2021 and 2020 were: 2022 2021 2020 Valuation date stock price $ 22.89 $ 11.20 $ 10.47 Expected annual dividend yield 1.2 % 1.1 % 1.9 % Expected volatility 73 % 71 % 39 % Risk-free interest rate 1.4 % 0.3 % 1.4 % Fair value of stock-based performance units outstanding $ 34.07 $ 18.07 $ 10.55 |
Defined Benefit Postretirement
Defined Benefit Postretirement Plans and Defined Contribution Plan | 12 Months Ended |
Dec. 31, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Defined Benefit Postretirement Plans and Defined Contribution Plan | Defined Benefit Postretirement Plans and Defined Contribution Plan We have noncontributory defined benefit pension plans covering substantially all domestic employees. Benefits under these plans are based on plan provisions specific to each plan. We also have plans for other postretirement benefits covering our U.S. employees. Health care benefits are provided up to age 65 through comprehensive hospital, surgical and major medical benefit provisions subject to various cost-sharing features. Life insurance benefits are provided to certain retiree beneficiaries. These other postretirement benefits are not funded in advance. Employees hired after 2016 are not eligible for any postretirement health care or life insurance benefits. Obligations and funded status – The following summarizes the obligations and funded status for our defined benefit pension and other postretirement plans. Pension Benefits Other Benefits 2022 2021 2022 2021 (In millions) U.S. U.S. U.S. U.S. Accumulated benefit obligation $ 214 $ 260 $ 53 $ 73 Change in pension benefit obligations: Beginning balance $ 269 $ 308 $ 73 $ 80 Service cost 14 16 — — Interest cost 7 7 2 2 Actuarial (gain) loss (46) (15) (11) 1 Settlements paid (21) (43) — — Benefits paid (5) (4) (11) (10) Ending balance $ 218 $ 269 $ 53 $ 73 Change in fair value of plan assets: Beginning balance $ 192 $ 194 $ — $ — Actual return on plan assets (27) 13 — — Employer contributions 22 32 11 10 Settlements paid (21) (43) — — Benefits paid (5) (4) (11) (10) Ending balance $ 161 $ 192 $ — $ — Funded status of plans at December 31 $ (57) $ (77) $ (53) $ (73) Amounts recognized in the consolidated balance sheets: Current liabilities $ (3) $ (3) $ (8) $ (10) Noncurrent liabilities (54) (74) (45) (63) Accrued benefit cost $ (57) $ (77) $ (53) $ (73) Pretax amounts in accumulated other comprehensive loss: Net loss $ 24 $ 37 $ 11 $ 23 Prior service credit (8) (13) (65) (81) In 2022, the pension plans and the postretirement plans experienced a net actuarial gain. Both pension and postretirement plans experienced an increase in discount rate used to measure the plans, which decreased their respective benefit obligations and was the primary source of the actuarial gain. Components of net periodic benefit costs and other comprehensive (income) loss – The following summarizes the net periodic benefit costs and the amounts recognized as other comprehensive (income) loss for our defined benefit pension and other postretirement plans. Pension Benefits Other Benefits Year Ended December 31, Year Ended December 31, 2022 2021 2020 2022 2021 2020 (In millions) U.S. U.S. U.S. U.S. U.S. U.S. Components of net periodic benefit costs: Service cost $ 14 $ 16 $ 19 $ — $ — $ 1 Interest cost 7 7 9 2 2 2 Expected return on plan assets (8) (8) (11) — — — Amortization: - prior service credit (6) (6) (6) (16) (16) (18) - actuarial loss 2 5 9 2 2 2 Net settlement loss (a) 2 9 30 — — — Net curtailment gain (b) — — (3) — — (14) Net periodic benefit cost (credit) (c) $ 11 $ 23 $ 47 $ (12) $ (12) $ (27) Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss (pretax): Actuarial loss (gain) $ (10) $ (21) $ 27 $ (10) $ 1 $ 4 Settlement loss and amortization of actuarial gain (loss) (4) (14) (40) (2) (2) (2) Curtailment gain and amortization of prior service credit (cost) 6 6 10 16 16 32 Total recognized in other comprehensive (income) loss $ (8) $ (29) $ (3) $ 4 $ 15 $ 34 Total recognized in net periodic benefit cost and other comprehensive (income) loss $ 3 $ (6) $ 44 $ (8) $ 3 $ 7 (a) Settlements are recognized as they occur, once it is probable that lump sum payments from a plan for a given year will exceed the plan’s total service and interest costs for that year. (b) Related to workforce reductions, which reduced the future expected years of service for employees participating in the plans. (c) Net periodic benefit costs (credits) reflects a calculated market-related value of plan assets, which recognizes changes in fair value over three years. Plan assumptions – The following summarizes the assumptions used to determine the benefit obligations at December 31, and net periodic benefit cost for the defined benefit pension and other postretirement plans for 2022, 2021 and 2020. Pension Benefits Other Benefits 2022 2021 2020 2022 2021 2020 U.S. U.S. U.S. U.S. U.S. U.S. Weighted average assumptions used to determine benefit obligation: Discount rate 5.20 % 2.83 % 2.52 % 5.07 % 2.48 % 2.02 % Rate of compensation increase (a) 5.00 % 0.50 % 0.50 % 5.00 % 0.50 % 0.50 % Cash balance interest crediting 4.20 % 3.00 % 3.00 % — % — % — % Weighted average assumptions used to determine net periodic benefit cost: Discount rate 4.02 % 2.77 % 2.90 % 2.48 % 2.02 % 2.63 % Expected long-term return on plan assets 5.75 % 5.75 % 6.00 % — % — % — % Rate of compensation increase (b) 5.00 % 0.50 % 4.50 % 5.00 % 0.50 % 4.50 % Cash balance interest crediting 3.60 % 3.00 % 3.00 % — % — % — % (a) The assumed rate of compensation increase is 5.50% for the year 2023 and 4.50% for future years. (b) The assumed rate of compensation increase is 4.50% for future years. Expected long-term return on plan assets – The expected long-term return on plan assets assumption for our pension plan is determined based on an internally developed asset rate-of-return modeling tool, which utilizes underlying assumptions based on actual and forward-looking expected market returns by asset category and inflation and takes into account our pension plan’s asset allocation. The expected return for each asset category is then weighted based on the actual and targeted asset allocation to develop the overall expected long-term return on plan assets assumption. Assumed weighted average health care cost trend rates – The pre-65 retiree medical coverage subsidy was frozen as of January 1, 2019, and the ability for retirees to opt in and out of this coverage, as well as pre-65 retiree dental and vision coverage, was also eliminated. Retirees must enroll in connection with retirement for such coverage, or they lose eligibility. Annual costs associated with the pre-65 retiree medical coverage were immaterial for all periods presented. Plan investment policies and strategies – The investment policies for our pension plan assets reflect the funded status of the plan and expectations regarding our future ability to make further contributions. Long-term investment goals are to: (1) manage the assets in accordance with applicable legal requirements; (2) produce investment returns which meet or exceed the rates of return achievable in the capital markets while maintaining the risk parameters set by the plan’s investment committees and protecting the assets from any erosion of purchasing power; and (3) position the portfolios with a long-term risk/return orientation. Investment performance and risk is measured and monitored on an ongoing basis through quarterly investment meetings and periodic asset and liability studies. Pension plan – The plan’s current targeted asset allocation is comprised of 47% equity securities and 53% other fixed income securities. Over time, as the plan’s funded ratio (as defined by the investment policy) improves, in order to reduce volatility in returns and to better match the plan’s liabilities, the allocation to equity securities will decrease while the amount allocated to fixed income securities will increase. The plan’s assets are managed by a third-party investment manager. Fair value measurements – Plan assets are measured at fair value. The following provides a description of the valuation techniques employed for each major plan asset class at December 31, 2022 and 2021. Cash and cash equivalents – Cash and cash equivalents are valued using a market approach and are considered Level 1. Equity securities – Investments in common stock are valued using a market approach at the closing price reported in an active market and are therefore considered Level 1. Private equity investments include interests in limited partnerships which are valued based on the sum of the estimated fair values of the investments held by each partnership, determined using a combination of market, income and cost approaches, plus working capital, adjusted for liabilities, currency translation and estimated performance incentives. These private equity investments are considered Level 3. Other – Other investments are comprised of an unallocated annuity contract, two limited liability companies and real estate. All are considered Level 3, as significant inputs to determine fair value are unobservable. Commingled funds – The investment in the commingled funds are valued using the net asset value of units held as a practical expedient. The commingled funds consist of equity and fixed income portfolios with underlying investments held in U.S. and non-U.S. securities. The following tables present the fair values of our defined benefit pension plan’s assets, by level within the fair value hierarchy, as of December 31, 2022 and 2021. December 31, 2022 (In millions) Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 8 $ — $ — $ 8 Equity securities: Common stock 22 — — 22 Private equity — — 5 5 Other — — 10 10 Total investments, at fair value 30 — 15 45 Commingled funds (b) — — — 116 Total investments $ 30 $ — $ 15 $ 161 December 31, 2021 (In millions) Level 1 Level 2 Level 3 Total Cash and cash equivalents (a) $ (1) $ — $ — $ (1) Equity securities: Common stock 28 — — 28 Private equity — — 7 7 Other — — 16 16 Total investments, at fair value 27 — 23 50 Commingled funds (b) — — — 142 Total investments $ 27 $ — $ 23 $ 192 (a) The negative cash balance was due to the timing of when investment trades occur and when they settle. (b) After the adoption of the FASB update for the fair value hierarchy, we separately report the investments for which fair value was measured using the net asset value per share as a practical expedient. Amounts presented in this table are intended to reconcile the fair value hierarchy to the pension plan assets. The activity during the year ended December 31, 2022 and 2021, for the assets using Level 3 fair value measurements was immaterial. Cash flows Estimated future benefit payments – The following gross benefit payments, which were estimated based on actuarial assumptions applied at December 31, 2022 and reflect expected future services, as appropriate, are to be paid in the years indicated. (In millions) Pension Benefits Other Benefits 2023 $ 25 $ 8 2024 24 7 2025 23 6 2026 21 6 2027 21 5 2028 through 2032 $ 100 $ 19 Contributions to defined benefit plans – We expect to make contributions to the funded pension plan of up to $12 million in 2023. Cash contributions to be paid from our general assets for the unfunded portion of our pension and postretirement plans are expected to be approximately $3 million and $8 million in 2023. |
Reclassifications Out of Accumu
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | Reclassifications Out of Accumulated Other Comprehensive Income (Loss) The following table presents a summary of amounts reclassified from accumulated other comprehensive income (loss): Year Ended December 31, (In millions) 2022 2021 Income Statement Line Postretirement and postemployment plans Amortization of prior service credit $ 22 $ 22 Other net periodic benefit (costs) credits Amortization of actuarial loss (4) (7) Other net periodic benefit (costs) credits Net settlement loss (2) (9) Other net periodic benefit (costs) credits Interest rate swaps Reclassification of de-designated forward interest rate swaps — (28) Net interest and other (3) — Provision (benefit) for income taxes Total reclassifications of (income) expense, net of tax (a) $ 13 $ (22) Net income (loss) |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Year Ended December 31, (In millions) 2022 2021 2020 Included in operating activities: Interest paid $ 197 $ 231 $ 251 Income taxes paid (received), net of refunds (a) 173 24 (51) Noncash investing activities: Increase in asset retirement costs $ 30 $ 56 $ — (a) 2022, 2021 and 2020 includes $1 million, $2 million and $94 million, respectively, related to tax refunds. Other noncash investing activities include accrued capital expenditures for the years December 31, 2022, 2021 and 2020 of $111 million, $81 million and $95 million, respectively. Additionally, we assumed certain liabilities related to our acquisition of Ensign Natural Resources’ assets in the Eagle Ford in December 2022. See Note 4 |
Other Items
Other Items | 12 Months Ended |
Dec. 31, 2022 | |
Interest and Other Income [Abstract] | |
Other Items | Other Items Net interest and other Year Ended December 31, (In millions) 2022 2021 2020 Interest: Interest income $ 15 $ 1 $ 5 Interest expense (227) (257) (279) Gain on interest rate swaps 19 54 12 Total interest (193) (202) (262) Other: Other 5 14 6 Net interest and other $ (188) $ (188) $ (256) |
Equity Method Investments
Equity Method Investments | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investments During 2022, 2021 and 2020 our equity method investees were considered related parties. Our investment in our equity method investees are summarized in the following table: Ownership as of December 31, (In millions) December 31, 2022 2022 2021 EGHoldings (a) 56% $ 287 $ 148 Alba Plant LLC (b) 52% 155 154 AMPCO (c) 45% 135 148 Total $ 577 $ 450 (a) EGHoldings is engaged in LNG production activity. (b) Alba Plant LLC processes LPG. (c) AMPCO is engaged in methanol production activity. In accordance with agreements related to the processing of third-party Alen Unit gas at EGLNG, additional equity was issued to an equity partner, which is an E.G. government entity, during the fourth quarter of 2021, thereby reducing our ownership interest in EGHoldings from 60% to 56%. As a result, for the year ended December 31, 2021, we recorded a $12 million pre-tax loss, which was reflected in Net gain (loss) on disposal of assets in our consolidated statements of income. During the year ended December 31, 2020, we recorded impairments of $171 million to an investment in an equity method investee, which was reflected in Income (loss) from equity method investments in our consolidated statements of income. The impairments caused us to incur a basis differential of $140 million between the net book value of our investment and the amount of our underlying share of equity in the investee’s net assets. As of December 31, 2022 and 2021, the amount of this basis differential was $88 million and $112 million, respectively, which includes the effects of accretion in both periods. The basis differential is being accreted into income over the remaining useful life of the investee’s primary assets. During 2022 and 2021, we accreted $24 million and $22 million, respectively, into Income (loss) from equity method investments in our consolidated statements of income. See Note 1 for further information on the equity method investee impairment. Summarized, 100% combined financial information for equity method investees is as follows: (In millions) 2022 2021 2020 Income data – year: Revenues and other income $ 1,745 $ 1,095 $ 586 Income from operations 1,164 537 16 Net income (loss) 1,068 440 (3) Balance sheet data – December 31: Current assets $ 842 $ 556 Noncurrent assets 698 822 Current liabilities 269 247 Noncurrent liabilities 188 231 Revenues from related parties were $28 million, $30 million and $38 million in 2022, 2021 and 2020, respectively, with the majority related to EGHoldings in all years. Cash received from equity investees is classified as dividends or return of capital on the Consolidated Statements of Cash Flows. Dividends from equity method investees are reflected in the Operating activities section in Equity Method Investments, net while return of capital is reflected in the Investing activities section. Dividends and return of capital received by us during the years ended December 31, 2022, 2021 and 2020 totaled $486 million, $238 million, and $56 million, respectively. Current receivables from related parties at December 31, 2022 were $36 million, which primarily related to Alba Plant LLC and EGHoldings. Current receivables from related parties at December 31, 2021 were $23 million, with the majority related to EGHoldings. Payables to related parties were $20 million at December 31, 2022 and 2021, with the majority related to Alba Plant LLC in both periods. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity In November 2022, our Board of Directors increased our remaining share repurchase program authorization to $2.5 billion. During 2022, we repurchased 113 million shares of our common stock pursuant to the share repurchase program at a cost of $2.8 billion. The total remaining share repurchase authorization was approximately $2.5 billion at December 31, 2022. During 2021, we repurchased 46 million shares of our common stock pursuant to the share repurchase program at a cost of $724 million. During 2020, we repurchased approximately 9 million of shares of our common stock pursuant to the share repurchase program at a cost of $85 million. Purchases under our share repurchase program are made at our discretion and may be in either open market transactions, including block purchases, or in privately negotiated transactions using cash on hand, cash generated from operations or proceeds from potential asset sales. This program may be changed based upon our financial condition or changes in market conditions and is subject to termination prior to completion. Additionally, during the year ended December 31, 2022, 2021 and 2020, we repurchased $22 million, $10 million, and $7 million, respectively, of shares related to our tax withholding obligation associated with the vesting of employee restricted stock awards and restricted stock units; these repurchases do not impact our share repurchase program authorization. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Various groups, including the State of North Dakota and three Indian tribes (the “Three Affiliated Tribes”) represented by the Bureau of Indian Affairs, have been involved in a dispute regarding the ownership of certain lands underlying the Missouri River and Little Missouri River (the “Disputed Land”) from which we currently produce. As a result, as of December 31, 2022, we have a $159 million current liability in suspended royalty and working interest revenue, including interest, of which $142 million was included within accounts payable and $17 million related to accrued interest and was included within other current liabilities on our consolidated balance sheet. Additionally, we have a long-term receivable of $26 million for capital and expenses. The United States Department of the Interior (“DOI”) has addressed the United States’ position with respect to this dispute several times over the past five years with conflicting opinions. In January 2017, the DOI issued an opinion that the Disputed Land is held in trust for the Three Affiliated Tribes, then in June 2018 and May 2020 the DOI issued opinions concluding that the State of North Dakota held title to the Disputed Land. Most recently, on February 4, 2022, the DOI issued an opinion (“M-Opinion”) concluding the DOI’s position that the Disputed Land is held in trust for the Three Affiliated Tribes. While the M-Opinion is binding on all agencies within the DOI, it is not legally binding on third parties, including Marathon Oil, or a court. Depending on the ultimate outcome of this title dispute, the Three Affiliated Tribes could challenge the validity of certain of our leases relating to a portion of the Disputed Land, and if such challenge were successful it could result in operational delays and additional costs to us. Given the uncertainty in matters such as these, we are unable to predict the ultimate outcome of this matter at this time; however, we believe the resolution of this matter will not have a material adverse effect on our consolidated financial position, results of operations or cash flows. We are a defendant in a number of legal and administrative proceedings arising in the ordinary course of business including, but not limited to, royalty claims, contract claims, tax disputes and environmental claims. While the ultimate outcome and impact to us cannot be predicted with certainty, we believe the resolution of these proceedings will not have a material adverse effect on our consolidated financial position, results of operations or cash flows. In addition, we may also be subject to retained liabilities with respect to certain divested assets by operation of law. For example, we are exposed to the risk that owners and/or operators of assets purchased from us become unable to satisfy plugging or abandonment obligations that attach to those assets. In that event, due to operation of law, we may be required to assume plugging or abandonment obligations for those assets. Although we have established reserves for such liabilities, we could be required to accrue additional amounts in the future and these amounts could be material. Marathon Oil has been named in various lawsuits alleging royalty underpayments in our domestic operations. We intend to vigorously defend ourselves against such claims. For instance, Marathon Oil was named in a lawsuit alleging improper royalty deductions in certain of our Oklahoma operations, and after plaintiffs lost their attempt to certify a class action, a settlement in principle was reached, subject to court approval. We have accrued for potential liabilities associated with these lawsuits based on currently available information; however, actual losses may exceed our accruals or we could be required to accrue additional amounts in the future. In January 2020, we received Notices of Violation (“NOV”)’s from the EPA related to allegations of violations of the Clean Air Act relating to our operations on the Fort Berthold Indian Reservation between 2015 and 2019. We are actively negotiating a draft consent decree with the EPA and Department of Justice containing certain proposed injunctive terms relating to this enforcement action. Resolution of the enforcement action will likely include monetary sanctions and implementation of both environmental mitigation projects and injunctive terms, which would increase both our development costs and operating costs. We maintain an accrual for estimated future costs related to this matter regarding actions required to retrofit or replace existing equipment, which we expect to incur over multiple years. Our accrual does not include possible monetary sanctions or costs associated with mitigation projections as we are unable to estimate those amounts. Through the date of this filing, there exists substantial uncertainty as to the ultimate result of this matter and it is reasonably possible the result could be materially different from our accrual. In July 2022, we received a NOV from the EPA relating to alleged Clean Air Act violations following flyovers conducted in 2020 over certain of our oil and gas facilities in New Mexico. The notice involves alleged emission and permitting violations. We initiated discussions with the EPA to resolve these matters. As we are still investigating these allegations, we are unable to estimate the potential loss associated with this matter, however, it is reasonably possible that the resolution may result in a fine or penalty in excess of $300,000. We have incurred and will continue to incur capital, operating and maintenance and remediation expenditures as a result of environmental laws and regulations. If these expenditures, as with all costs, are not ultimately offset by the prices we receive for our products and services, our operating results will be adversely affected. We believe that substantially all of our competitors must comply with similar environmental laws and regulations. However, the specific impact on each competitor may vary depending on a number of factors, including the age and location of its operating facilities, marketing areas and production processes. These laws generally provide for control of pollutants released into the environment and require responsible parties to undertake remediation of hazardous waste disposal sites. Penalties may be imposed for noncompliance. At December 31, 2022 and 2021, accrued liabilities for remediation relating to environmental laws and regulations were not material. It is not presently possible to estimate the ultimate amount of all remediation costs that might be incurred or the penalties that may be imposed. Guarantees – Over the years, we have sold various assets in the normal course of our business. Certain of the related agreements contain performance and general guarantees, including guarantees regarding inaccuracies in representations, warranties, covenants and agreements and environmental and general indemnifications that require us to perform upon the occurrence of a triggering event or condition. These guarantees and indemnifications are part of the normal course of selling assets. We are typically not able to calculate the maximum potential amount of future payments that could be made under such contractual provisions because of the variability inherent in the guarantees and indemnities. Most often, the nature of the guarantees and indemnities is such that there is no appropriate method for quantifying the exposure because the underlying triggering event has little or no precedent upon which we could base a reasonable prediction of the outcome. In the second quarter of 2019, MEGPL, a consolidated and wholly owned subsidiary, signed a series of agreements to process third-party Alen Unit gas through existing infrastructure located in Punta Europa, E.G. Our equity method investee, Alba Plant LLC, is also a party to some of the agreements. These agreements require (subject to certain limitations) MEGPL to indemnify the owners of the Alen Unit against injury to Alba Plant LLC’s personnel and damage to or loss of Alba Plant LLC’s automobiles, as well as third party claims caused by Alba Plant LLC and certain environmental liabilities arising from certain hydrocarbons in the custody of Alba Plant LLC. At this time, we cannot reasonably estimate this obligation as we do not have any history of prior indemnification claims or environmental discharge or contamination. Therefore, we have not recorded a liability with respect to these indemnities since the amount of potential future payments under these indemnification clauses is not determinable. The agreements to process the third-party Alen Unit gas required the execution of third-party guarantees by Marathon Oil Corporation in favor of the Alen Unit’s owners. Two separate guarantees were executed during the second quarter of 2020; one for a maximum of approximately $91 million pertaining to the payment obligations of Equatorial Guinea LNG Operations, S.A. and another for a maximum of $25 million pertaining to the payment obligations of Alba Plant LLC. Payment by us would be required if any of those entities fails to honor its payment obligations pursuant to the relevant agreements with the owners of the Alen Unit. Certain owners of the Alen Unit, or their affiliates, are also direct or indirect shareholders in Equatorial Guinea LNG Operations, S.A. and Alba Plant LLC. Each guarantee expires no later than December 31, 2027. We measured these guarantees at fair value using the net present value of premium payments we expect to receive from our investees. Our liability for these guarantees was approximately $4 million as of December 31, 2022. Each of Equatorial Guinea LNG Operations, S.A. and Equatorial Guinea LNG Train 1, S.A. provided us with a pledge of its receivables as recourse against any payments we may make under the guaranty of Equatorial Guinea LNG Operations, S.A.’s performance. |
Summary of Principal Accounti_2
Summary of Principal Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of presentation and principles applied in consolidation | Basis of presentation and principles applied in consolidation – These consolidated financial statements, including notes, have been prepared in accordance with U.S. GAAP. These consolidated financial statements include the accounts of our controlled subsidiaries. Investments in unincorporated joint ventures and undivided interests in certain operating assets are consolidated on a pro rata basis. |
Equity method investments | Equity method investments – Investments in entities over which we have significant influence, but not control, are accounted for using the equity method of accounting. This includes entities in which we hold majority ownership but the minority stockholders have substantive participating rights in the investee. Income from equity method investments represents our proportionate share of net income generated by the equity method investees and is reflected in revenues and other income in our consolidated statements of income. Equity method investments are included as noncurrent assets on the consolidated balance sheet. |
Use of estimates | Use of estimates – The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the respective reporting periods. Estimated quantities of crude oil and condensate, NGLs and natural gas reserves is a significant estimate that requires judgment. All of the reserve data included in this Form 10-K are estimates. Reservoir engineering is a subjective process of estimating underground accumulations of crude oil and condensate, NGLs and natural gas. There are numerous uncertainties inherent in estimating quantities of proved crude oil and condensate, NGLs and natural gas reserves. The accuracy of any reserves estimate is a function of the quality of available data and of engineering and geological interpretation and judgment. As a result, reserve estimates may be different from the quantities of crude oil and condensate, NGLs and natural gas that are ultimately recovered. See unaudited Supplementary Data – Supplementary Information on Oil and Gas Producing Activities for further detail. Other items subject to estimates and assumptions include the carrying amounts of property, plant and equipment, asset retirement obligations, goodwill, valuation of assets and liabilities in a business combination, valuation of derivative instruments and valuation allowances for deferred income tax assets, as well as other items recognized at fair value. Although we believe these estimates are reasonable, actual results could differ from these estimates. |
Foreign currency transactions | Foreign currency transactions – The U.S. dollar is the functional currency of our foreign operating subsidiaries. Foreign currency transaction gains and losses are included in net income. |
Revenue recognition | Revenue recognition – Revenues associated with the sales of crude oil and condensate, NGLs and natural gas are recognized when our performance obligation is satisfied, which typically occurs at the point where control transfers to the customer based on contract terms. Revenue is measured as the amount the company expects to receive in exchange for transferring commodities to the customer. Our hydrocarbon sales are typically based on prevailing market-based prices and may include quality or location differential adjustments. Payment is generally due within 30 days of delivery. We typically incur shipping and handling costs prior to control transferring to the customer and account for these activities as fulfillment costs. These costs are reflected in shipping, handling and other operating expense in our consolidated statement of income. Our U.S. production of crude oil and condensate, NGLs and natural gas is generally sold immediately and transported to market. In our international segment, liquid hydrocarbon production may be stored as inventory and sold at a later time. |
Cash and cash equivalents | Cash and cash equivalents – Cash and cash equivalents include cash on hand and on deposit and investments in highly liquid debt instruments with original maturities of three months or less. |
Accounts receivable | Accounts receivable – The majority of our receivables are from purchasers of commodities or joint interest owners in properties we operate, both of which are recorded at estimated or invoiced amounts and do not bear interest. We often have the ability to withhold future revenue disbursements to recover any non-payment of joint interest billings. We conduct credit reviews of commodity purchasers prior to making commodity sales to new customers or increasing credit for existing customers. Based on these reviews, we may require a standby letter of credit or a financial guarantee. We routinely assess the collectability of receivable balances to determine if the amount of the reserve for credit losses is sufficient. |
Inventories | Inventories – Crude oil and natural gas are recorded at weighted average cost and carried at the lower of cost or net realizable value. Supplies and other items consist principally of tubular goods and equipment, which are valued at weighted average cost and reviewed periodically for obsol escence or impairment when market conditions indicate . We may enter into a contract to sell a particular quantity and quality of crude oil at a specified location and date to a particular counterparty, and simultaneously agree to buy a particular quantity and quality of the same commodity at a specified location on the same or another specified date from the same counterparty. We account for such matching buy/sell arrangements as exchanges of inventory. |
Derivative instruments | Derivative instruments – We may use derivatives to manage a portion of our exposure to commodity price risk, commodity locational risk and interest rate risk. All derivative instruments are recorded at fair value. Commodity derivatives and interest rate swaps are reflected on our consolidated balance sheet on a net basis by counterparty, as they are governed by master netting agreements. Cash flows related to derivatives used to manage commodity price risk and interest rate risk are classified in operating activities. Our derivative instruments contain no significant contingent credit features. |
Cash flow hedges | Cash flow hedges – We may use interest rate derivative instruments to manage the risk of interest rate changes during the period prior to anticipated borrowings as well as to stabilize future lease payments on our Houston office and designate them as cash flow hedges. Derivative instruments designated as cash flow hedges are linked to specific assets and liabilities or to specific firm commitments or forecasted transactions. The changes in the fair value of a qualifying cash flow hedge are recorded in other comprehensive income until the hedged transaction affects earnings and are then reclassified into net income. Ineffective portions of a cash flow hedge are no longer measured or disclosed separately. However, if it is determined that the likelihood of the original forecasted transaction occurring is no longer probable, or the cash flow hedge is no longer expected to be highly effective, subsequent changes in fair value of the derivatives instrument are recorded in net income. |
Derivatives not designated as hedges | Derivatives not designated as hedges – Derivatives that are not designated as hedges may include commodity derivatives used primarily to manage price and locational risks on the forecasted sale of crude oil, NGLs and natural gas that we produce. Changes in the fair value of derivatives not designated as hedges are recognized immediately in net income |
Concentrations of credit risk | Concentrations of credit risk – All of our financial instruments, including derivatives, involve elements of credit and market risk. The most significant portion of our credit risk relates to nonperformance by counterparties. The counterparties to our financial instruments consist primarily of major financial institutions and companies within the energy industry. To manage counterparty risk associated with financial instruments, we select and monitor counterparties based on our assessment of their financial strength and on credit ratings, if available. Additionally, we limit the level of exposure with any single counterparty. |
Fair value transfer | Fair value transfer – We recognize transfers between levels of the fair value hierarchy as of the end of the reporting period. |
Property, plant and equipment | Property, plant and equipment – We use the successful efforts method of accounting for oil and gas producing activities. |
Property acquisition costs | Property acquisition costs – Costs to acquire mineral interests in oil and natural gas properties, to drill exploratory wells in progress and those that find proved reserves and to drill development wells are capitalized. Costs to drill exploratory wells that do not find proved reserves, geological and geophysical costs and costs of carrying and retaining unproved properties are expensed. Costs incurred for exploratory wells that find reserves but cannot yet be classified as proved are capitalized if (1) the well has found a sufficient quantity of reserves to justify its completion as a producing well and (2) we are making sufficient progress assessing the reserves and the economic and operating viability of the project. The status of suspended exploratory well costs is monitored continuously and reviewed at least quarterly. |
Depreciation, depletion and amortization | Depreciation, depletion and amortization – Capitalized costs to acquire oil and natural gas properties are depreciated and depleted on a units-of-production basis based on estimated proved reserves. Capitalized costs of exploratory wells and development costs are depreciated and depleted on a units-of-production basis based on estimated proved developed reserves. Support equipment and other property, plant and equipment related to oil and gas producing activities, as well as property, plant and equipment unrelated to oil and gas producing activities, are recorded at cost and depreciated on a straight-line basis over the estimated useful lives of the assets. The table below summarizes these assets by type, useful life and the net asset balance as of the periods presented. December 31, Type of Asset Range of Useful Lives 2022 2021 (In millions) Office furniture, equipment and computer hardware 4 to 15 years $ 36 $ 41 Pipelines 5 to 40 years $ 13 $ 10 Plants, facilities and infrastructure 3 to 40 years $ 1,510 $ 1,496 |
Impairments and Dispositions | Impairments – We evaluate our oil and gas producing properties, including capitalized costs of exploratory wells and development costs, for impairment of value whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the sum of the expected undiscounted future cash flows from the use of the asset and its eventual disposition is less than the carrying amount of the asset, an impairment loss is recognized based on the fair value of the asset. Oil and gas producing properties are reviewed for impairment on a field-by-field basis or, in certain instances, by logical grouping of assets if there is significant shared infrastructure or contractual terms that cause economic interdependency amongst separate, discrete fields. Oil and gas producing properties deemed to be impaired are written down to their fair value, as determined by discounted future net cash flows or, if available, comparable market value. We evaluate our unproved property investment and record impairment based on time or geologic factors. Information such as drilling results, reservoir performance, seismic interpretation, lease expiration dates or future plans to develop acreage is also considered. When unproved property investments are deemed to be impaired, this amount is reported in exploration expenses in our consolidated statements of income. Dispositions – When property, plant and equipment depreciated on an individual basis is sold or otherwise disposed of, any gains or losses are reflected in net gain (loss) on disposal of assets in our consolidated statements of income. Gains on the disposal of property, plant and equipment are recognized when earned, which is generally at the time the disposal transaction closes. If a loss on disposal is expected, such loss is recognized either when the asset is classified as held for sale based on estimated fair value less cost to sell, or when there is a current expectation that, more likely than not, the asset will be sold significantly before the end of its previously estimated useful life measured using a probability weighted income approach considering the anticipated sales price if the asset is sold and a held-for-use model if the asset is retained. Proceeds from the disposal of a portion of property, plant and equipment depreciated on a group basis are credited to accumulated depreciation, depletion and amortization with no immediate effect on net income until net book value is reduced to zero. |
Acquisitions | Acquisitions – We account for acquisitions that qualify as business combinations by applying the acquisition method. Under this method of accounting, the identifiable assets acquired and liabilities assumed are recognized and measured at their estimated fair values at the date of acquisition. Any excess of the purchase price over the fair values of the identifiable assets acquired and liabilities assumed is recorded as goodwill. Transaction costs related to business combinations are expensed as incurred in our consolidated statements of income. |
Goodwill | Goodwill – Goodwill represents the excess of the purchase price over the estimated fair value of the net assets acquired in the acquisition of a business. In 2020, our goodwill was fully impaired as we concluded the fair value was below carrying value. |
Environmental costs | Environmental costs – We provide for remediation costs and penalties when the responsibility to remediate is probable and the amount of associated costs can be reasonably estimated. The timing of remediation accruals coincides with completion of a feasibility study or the commitment to a formal plan of action. Remediation liabilities are accrued based on estimates of known environmental exposure and are discounted when the estimated amounts are reasonably fixed or reliably determinable. Environmental expenditures are capitalized only if the costs mitigate or prevent future contamination or if the costs improve the environmental safety or efficiency of the existing assets. |
Asset retirement obligations | Asset retirement obligations – The fair value of asset retirement obligations is recognized in the period in which the obligations are incurred if a reasonable estimate of fair value can be made. Our asset retirement obligations primarily relate to the abandonment of oil and gas producing facilities. Asset retirement obligations for such facilities include costs to dismantle and relocate or dispose of production platforms, gathering systems, wells and related structures and restoration costs of land, including those leased. Estimates of these costs are developed for each property based on the type of production facilities and equipment, reservoir characteristics, depth of the reservoir, market demand for equipment, currently available procedures and consultations with construction and engineering professionals. |
Income taxes | Income taxes – Deferred tax assets and liabilities, measured at enacted tax rates, are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their tax bases as reported in our filings with the respective taxing authorities. We routinely assess the realizability of our deferred tax assets based on several interrelated factors and reduce such assets by a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized. These factors include whether we are in a cumulative loss position in recent years, our reversal of temporary differences, and our expectation to generate sufficient future taxable income. We use the liability method in determining our provision and liabilities for our income taxes, under which current and deferred tax liabilities and assets are recorded in accordance with enacted tax laws and rates. |
Stock-based compensation arrangements | Stock-based compensation arrangements – The fair value of stock options is estimated on the date of grant using the Black-Scholes option pricing model. The model employs various assumptions, based on management’s best estimates at the time of grant, which impact the calculation of fair value and ultimately, the amount of expense that is recognized over the life of the stock option award. Of the required assumptions, the expected volatility of our stock price and the stock price in relation to the strike price have the most significant impact on the fair value calculation. We have utilized historical data and analyzed current information which reasonably support these assumptions. The fair value of our restricted stock awards, restricted stock units and director restricted stock units is determined based on the market value of our common stock on the date of grant. Restricted stock awards, restricted stock units and director restricted stock units are removed from Treasury Stock at grant, vesting and distribution, respectively. The fair value of our cash-settled stock-based performance units is estimated using the Monte Carlo simulation method. Since these awards are settled in cash at the end of a defined performance period, they are classified as a liability and are re-measured quarterly until settlement. The fair value of our free cash flow cash-settled stock-based performance units is estimated by multiplying (i) the number of units granted, (ii) the vesting percentage with (iii) our common stock’s closing price plus accumulated dividend equivalents per share of our common stock. These performance units have a banking feature and only the unbanked portion of the fair value will be estimated. Once a banking level has been achieved, the banked units will have their value determined based on the average of the daily closing price of our common stock during the final 30 calendar days ending on the last trading day of the quarter that the banking was achieved. At the end of the performance period, any unbanked portion of the benefit will have their value determined based on the average of the daily closing price of our common stock during the final 30 calendar days ending on the last trading day of the performance period. Since these awards are settled in cash at the end of a defined performance period, they are classified as a liability and are re-measured quarterly until settlement. The fair value of our stock-settled stock-based performance units is estimated using the Monte Carlo simulation method at grant date only. Since these awards are settled in stock, they are classified as equity. |
Accounting Standards Updates Adopted and Not Yet Adopted | In November 2022, we adopted Accounting Standards Update (“ASU”) 2020-04 and 2021-01, which provide optional expedients and exceptions to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued. The ASUs were effective upon issuance and could be applied prospectively through December 31, 2022. During the fourth quarter, we amended our finance lease on our Houston office and the related interest rate swaps used to hedge variations in associated cash flows to replace LIBOR with 1-Month Term SOFR. As the modifications met the criteria for the optional expedients and exceptions, we did not remeasure our finance lease obligation and there were no changes to hedge accounting for the related interest rate swaps. Consequently, the adoption of the ASUs did not have a material impact on our consolidated financial statements. There are no issued but pending ASUs expected to have a material impact on our consolidated financial statements. |
Summary of Principal Accounti_3
Summary of Principal Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Property Plant and Equipment | The table below summarizes these assets by type, useful life and the net asset balance as of the periods presented. December 31, Type of Asset Range of Useful Lives 2022 2021 (In millions) Office furniture, equipment and computer hardware 4 to 15 years $ 36 $ 41 Pipelines 5 to 40 years $ 13 $ 10 Plants, facilities and infrastructure 3 to 40 years $ 1,510 $ 1,496 December 31, (In millions) 2022 2021 United States $ 17,034 $ 14,097 International 288 347 Not allocated to segments 55 55 Net property, plant and equipment $ 17,377 $ 14,499 |
Income (loss) and Dividends p_2
Income (loss) and Dividends per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Income (Loss) Per Share, Basic and Diluted | The per share calculations below exclude 2 million, 4 million and 7 million stock options for 2022, 2021 and 2020 that were antidilutive. Year Ended December 31, (In millions, except per share data) 2022 2021 2020 Net income (loss) $ 3,612 $ 946 $ (1,451) Weighted average common shares outstanding 685 787 792 Effect of dilutive securities 2 1 — Weighted average common shares, diluted 687 788 792 Net income (loss) per share: Basic $ 5.27 $ 1.20 $ (1.83) Diluted $ 5.26 $ 1.20 $ (1.83) Dividends per share $ 0.32 $ 0.18 $ 0.08 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | Fair values assigned to the assets acquired and liabilities assumed as of the closing date were as follows: (In millions) December 27, 2022 Assets: Inventories $ 4 Total current assets acquired 4 Property, plant and equipment 3,159 Total assets acquired $ 3,163 Liabilities: Other current liabilities $ 36 Total current liabilities assumed 36 Asset retirement obligations 41 Other noncurrent liabilities 58 Total liabilities assumed 135 Net assets acquired $ 3,028 |
Schedule of Pro Forma Information | The following table summarizes the unaudited pro forma condensed financial information of the Company as if the business combination had occurred on January 1, 2021. Year Ended December 31, (In millions) 2022 2021 Revenues $ 9,116 $ 5,757 Net income $ 3,974 $ 941 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables present our revenues from contracts with customers disaggregated by product type and geographic areas. United States Year Ended December 31, 2022 (In millions) Eagle Ford Bakken Oklahoma Permian Other U.S. Total Crude oil and condensate $ 2,004 $ 2,508 $ 423 $ 456 $ 161 $ 5,552 Natural gas liquids 183 310 231 62 28 814 Natural gas 188 197 321 70 33 809 Other 7 — — — 86 93 Revenues from contracts with customers $ 2,382 $ 3,015 $ 975 $ 588 $ 308 $ 7,268 Year Ended December 31, 2021 (In millions) Eagle Ford Bakken Oklahoma Permian Other U.S. Total Crude oil and condensate $ 1,435 $ 1,777 $ 299 $ 314 $ 100 $ 3,925 Natural gas liquids 161 239 189 47 17 653 Natural gas 159 119 280 55 19 632 Other 8 — — — 116 124 Revenues from contracts with customers $ 1,763 $ 2,135 $ 768 $ 416 $ 252 $ 5,334 Year Ended December 31, 2020 (In millions) Eagle Ford Bakken Oklahoma Permian Other U.S. Total Crude oil and condensate $ 830 $ 984 $ 235 $ 204 $ 69 $ 2,322 Natural gas liquids 74 54 89 20 6 243 Natural gas 86 34 127 18 10 275 Other 6 — — — 78 84 Revenues from contracts with customers $ 996 $ 1,072 $ 451 $ 242 $ 163 $ 2,924 International (E.G.) Year Ended December 31, (In millions) 2022 2021 2020 Crude oil and condensate $ 244 $ 240 $ 140 Natural gas liquids 2 2 4 Natural gas 22 23 29 Other 4 2 — Revenues from contracts with customers $ 272 $ 267 $ 173 |
Schedules of Concentration of Risk | Customers and their respective affiliates who accounted for 10% or more of our total commodity sales were as follows: December 31, 2022 2021 2020 Percentage of Total Commodity Sales Marathon Petroleum Corporation 22 % 17 % 13 % Valero Marketing and Supply 12 % 10 % N/A Trafigura Groupe Pte. Ltd. 10 % N/A N/A Koch Resources LLC N/A N/A 12 % |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Year Ended December 31, 2022 (In millions) U.S. Int’l Not Allocated to Segments Total Revenues from contracts with customers $ 7,268 $ 272 $ — $ 7,540 Net gain (loss) on commodity derivatives (132) — 18 (b) (114) Income from equity method investments — 613 — 613 Net loss on disposal of assets — — (38) (c) (38) Other income 19 7 9 35 Less costs and expenses: Production 625 65 — 690 Shipping, handling and other operating 665 18 50 733 Exploration 36 — 74 (d) 110 Depreciation, depletion and amortization 1,675 60 18 1,753 Impairments — — 7 7 Taxes other than income 475 — 9 484 General and administrative 131 13 164 308 Net interest and other — — 188 (e) 188 Other net periodic benefit credit — — (16) (16) Income tax provision (benefit) 808 151 (792) (f) 167 Segment income $ 2,740 $ 585 $ 287 $ 3,612 Total assets $ 18,429 $ 1,157 $ 354 $ 19,940 Capital expenditures (a) $ 1,463 $ 2 $ 15 $ 1,480 (a) Includes accruals and excludes acquisitions. (b) Unrealized gain on commodity derivative instruments (See Note 15 ). (c) Includes $39 million in losses resulting from exchanges of unproved acreage in the Permian. (d) Includes dry well costs and unproved property impairments of $48 million for Louisiana exploration leases and $25 million for Permian exploration leases (See Note 10 and Note 11 ). (e) Includes a $17 million gain on our 2025 interest rate swaps (See Note 15 ). (f) Includes a $685 million benefit related to the partial release of our valuation allowance (See Note 7 ). Year Ended December 31, 2021 (In millions) U.S. Int’l Not Allocated to Segments Total Revenues from contracts with customers $ 5,334 $ 267 $ — $ 5,601 Net gain (loss) on commodity derivatives (399) — 16 (b) (383) Income from equity method investments — 253 — 253 Net loss on disposal of assets — — (19) (c) (19) Other income 7 4 4 15 Less costs and expenses: Production 480 54 — 534 Shipping, handling and other operating 686 16 25 727 Exploration 65 — 71 (d) 136 Depreciation, depletion and amortization 1,972 68 26 2,066 Impairments — — 60 (e) 60 Taxes other than income 346 — (1) 345 General and administrative 107 13 171 (f) 291 Net interest and other — — 188 (g) 188 Other net periodic benefit credit — — (5) (5) Loss on early extinguishment of debt — — 121 (h) 121 Income tax provision (benefit) 9 56 (7) 58 Segment income (loss) $ 1,277 $ 317 $ (648) $ 946 Total assets $ 15,339 $ 994 $ 661 $ 16,994 Capital expenditures (a) $ 1,018 $ — $ 14 $ 1,032 (a) Includes accruals and excludes acquisitions. (b) Unrealized gain on commodity derivative instruments (See Note 15 ). (c) Includes a $20 million loss associated with a previously divested non-core conventional asset, a $12 million pre-tax loss associated with a reduction in our ownership interest in EG LNG (See Note 23 ) and an $8 million gain on various well bore assignments in Permian and Bakken. (d) Includes unproved property impairments of $20 million for Louisiana exploration leases and $16 million related to the disposition of a lease in Permian. (See Note 11 ). Also includes $28 million of expense associated with drilled and uncompleted wells, primarily in Permian, due to a change in our plan of development. (e) Includes impairments of $24 million for central facilities in Eagle Ford (See Note 11 ), $5 million for proved properties in Permian (See Note 11 ) and $30 million associated with decommissioning costs for non-producing long-lived assets in GOM (See Note 11 , Note 12 , and Note 25 ) (f) Includes $13 million associated with the termination of an aircraft lease agreement and $12 million arising from severance expenses associated with a workforce reduction. (g) Includes a $28 million gain on our 2022 interest rate swaps and a $27 million gain on our 2025 interest rate swaps (See Note 15 ). (h) Represents costs related to a make-whole provision premium and the write off of unamortized discount and issuance costs in regards to the redemption of the 2022 Notes in April 2021 and 2025 Notes in September 2021 (See Note 17 ). Year Ended December 31, 2020 (In millions) U.S. Int’l Not Allocated to Segments Total Revenues from contracts with customers $ 2,924 $ 173 $ — $ 3,097 Net gain (loss) on commodity derivatives 143 — (27) (b) 116 Income (loss) from equity method investments — 10 (171) (c) (161) Net gain on disposal of assets — — 9 9 Other income 15 7 3 25 Less costs and expenses: Production 494 59 2 555 Shipping, handling and other operating 534 8 54 596 Exploration 97 — 84 (d) 181 Depreciation, depletion and amortization 2,211 82 23 2,316 Impairments — — 144 (e) 144 Taxes other than income 193 — 7 200 General and administrative 115 14 145 (f) 274 Net interest and other — — 256 256 Other net periodic benefit cost — — 1 (g) 1 Loss on early extinguishment of debt — — 28 28 Income tax benefit (9) (3) (2) (14) Segment income (loss) $ (553) $ 30 $ (928) $ (1,451) Total assets $ 16,063 $ 1,081 $ 812 $ 17,956 Capital expenditures (a) $ 1,137 $ 1 $ 13 $ 1,151 (a) Includes accruals and excludes acquisitions. (b) Unrealized loss on commodity derivative instruments (See Note 15 ). (c) Partial impairment of investment in equity method investee (See Note 23 ). (d) Primarily related to unproved property impairments of non-core acreage in our United States segment. (e) Includes the full impairment of the International reporting unit goodwill of $95 million (See Note 14 ) and proved property impairments of $49 million related to a damaged well in our United States segment. (f) Includes severance expenses associated with workforce reductions of $17 million. (g) Includes pension settlement loss of $30 million and pension curtailment gain of $17 million (See Note 19 ). |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country | The following summarizes our balances of property, plant and equipment and equity method investments as of: December 31, (In millions) 2022 2021 United States $ 17,088 $ 14,152 Equatorial Guinea 866 797 Total long-lived assets $ 17,954 $ 14,949 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Income (loss) before income taxes were: Year Ended December 31, (In millions) 2022 2021 2020 United States $ 3,037 $ 637 $ (1,319) Foreign 742 367 (146) Total $ 3,779 $ 1,004 $ (1,465) |
Schedule of Components of Income Tax Expense (Benefit) | Income tax provisions (benefits) were: Year Ended December 31, 2022 2021 2020 (In millions) Current Deferred Total Current Deferred Total Current Deferred Total Federal $ — $ (46) $ (46) $ — $ — $ — $ (5) $ — $ (5) State and local 12 52 64 4 1 5 (2) (8) (10) Foreign 172 (23) 149 81 (28) 53 15 (14) 1 Total $ 184 $ (17) $ 167 $ 85 $ (27) $ 58 $ 8 $ (22) $ (14) |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the federal statutory income tax rate applied to income (loss) before income taxes to the provision (benefit) for income taxes follows: Year Ended December 31, (In millions) 2022 2021 2020 Total pre-tax income (loss) $ 3,779 $ 1,004 $ (1,465) Total income tax provision (benefit) $ 167 $ 58 $ (14) Effective income tax rate 4 % 6 % 1 % Income taxes at the statutory tax rate $ 793 $ 211 $ (308) Adjustments to valuation allowances (691) (166) 239 Effects of foreign operations 2 (13) 23 State income taxes, net of federal benefit 62 23 6 Tax law change — (2) — Other federal tax effects 1 5 26 Income tax provision (benefit) $ 167 $ 58 $ (14) |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities resulted from the following: Year Ended December 31, (In millions) 2022 2021 Deferred tax assets: Employee benefits $ 56 $ 66 Operating loss carryforwards 1,189 1,541 Foreign tax credits 602 611 Other 65 52 Subtotal 1,912 2,270 Valuation allowance (89) (780) Total deferred tax assets 1,823 1,490 Deferred tax liabilities: Property, plant and equipment 1,850 1,544 Other 100 82 Total deferred tax liabilities 1,950 1,626 Net deferred tax liabilities $ 127 $ 136 |
Net Deferred Tax Assets Liabilities Table | Net deferred tax assets and liabilities were classified in the consolidated balance sheets as follows: December 31, (In millions) 2022 2021 Assets: Other noncurrent assets $ 40 $ — Liabilities: Noncurrent deferred tax liabilities 167 136 Net deferred tax liabilities $ 127 $ 136 |
Income Tax Returns Remaining Subject To Examination Table | As of December 31, 2022, our income tax returns remain subject to examination in the following major tax jurisdictions for the tax years indicated: United States (a) 2016 - 2021 Equatorial Guinea 2007 - 2021 (a) Includes federal and state jurisdictions. |
Summary Of Activity In Unrecognized Tax Benefits Table | The following table summarizes the activity in unrecognized tax benefits: (In millions) 2022 2021 2020 Beginning balance $ 10 $ 8 $ 13 Additions for tax positions of prior years 1 2 — Reductions for tax positions of prior years — — (5) Settlements (11) — — Ending balance $ — $ 10 $ 8 |
Credit Losses (Tables)
Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Credit Loss [Abstract] | |
Summary of Allowance for Doubtful Accounts Balance | Changes in the reserve for credit losses balance for the year were as follows: December 31, (In millions) 2022 2021 Beginning balance as of January 1 $ 15 $ 22 Current period provision (3) 3 Current period write offs (2) (5) Recoveries of amounts previously reserved — (5) Ending balance as of December 31 $ 10 $ 15 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | December 31, (In millions) 2022 2021 Crude oil and natural gas liquids $ 15 $ 8 Supplies and other items 110 69 Inventories $ 125 $ 77 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property Plant and Equipment | The table below summarizes these assets by type, useful life and the net asset balance as of the periods presented. December 31, Type of Asset Range of Useful Lives 2022 2021 (In millions) Office furniture, equipment and computer hardware 4 to 15 years $ 36 $ 41 Pipelines 5 to 40 years $ 13 $ 10 Plants, facilities and infrastructure 3 to 40 years $ 1,510 $ 1,496 December 31, (In millions) 2022 2021 United States $ 17,034 $ 14,097 International 288 347 Not allocated to segments 55 55 Net property, plant and equipment $ 17,377 $ 14,499 |
Schedule of Projects with Exploratory Well Costs Capitalized for More than One Year | Changes in our capitalized exploratory well costs were as follows: December 31, (In millions) 2022 2021 2020 Beginning balance as of January 1 $ 162 $ 210 $ 278 Additions 78 50 97 Charges to expense (30) (30) (1) Transfers to development (96) (68) (164) Ending balance as of December 31 $ 114 $ 162 $ 210 |
Impairments (Tables)
Impairments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Impairments and Exploration Expenses [Abstract] | |
Summary of Impaired Assets | The following table summarizes impairment charges of proved properties, asset retirement costs, goodwill and equity method investments and their corresponding fair values. The fair values of the impairments discussed below were estimated using inputs that represent Level 3 measurements. 2022 2021 2020 (In millions) Fair Value Impairment Fair Value Impairment Fair Value Impairment Proved properties $ — $ — $ — $ 30 $ — $ 49 Asset retirement costs of long-lived assets — 7 — 30 — — Goodwill — — — — — 95 Equity method investment $ — $ — $ — $ — $ 119 $ 171 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Change in Asset Retirement Obligation | Asset retirement obligations primarily consist of estimated costs to remove, dismantle and restore land or seabed at the end of oil and gas production operations. Changes in asset retirement obligations were as follows: December 31, (In millions) 2022 2021 Beginning balance as of January 1 $ 316 $ 254 Incurred liabilities, including acquisitions 55 14 Settled liabilities, including dispositions (20) (6) Accretion expense (included in depreciation, depletion and amortization) 14 12 Revisions of estimates (25) 42 Ending balance as of December 31 $ 340 $ 316 Ending balance as of December 31, short-term $ 45 $ 28 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information | Balance sheet information related to ROU assets and lease liabilities was as follows: December 31, (In millions) 2022 2021 ROU assets: Balance Sheet Location: Operating leases Other noncurrent assets $ 123 $ 59 Finance leases Other noncurrent assets 24 28 Total ROU assets $ 147 $ 87 Lease liabilities: Current liabilities Operating leases Other current liabilities $ 94 $ 40 Finance leases Other current liabilities 6 6 Noncurrent liabilities Operating leases Deferred credits and other liabilities 32 23 Finance leases Deferred credits and other liabilities 18 24 Total lease liabilities $ 150 $ 93 |
Lease Costs | The table below presents our net lease costs for the years ended December 31, 2022, 2021 and 2020. December 31, (In millions) 2022 2021 2020 Operating lease costs: Short-term lease costs (a) $ 164 $ 121 $ 170 Long-term lease costs (b) 74 64 75 Variable lease costs (c) 37 33 23 Finance lease costs: Amortization of ROU assets 4 3 — Total lease costs $ 279 $ 221 $ 268 Other information: Cash paid for amounts included in the measurement of operating lease liabilities $ 90 $ 73 $ 100 ROU assets obtained in exchange for new operating lease liabilities (d) 117 15 46 ROU assets obtained in exchange for new finance lease liabilities (e) — 28 — Changes to ROU assets resulting from modifications or cancellations of operating leases $ 40 $ (13) $ (68) (a) Represents our net share of lease costs arising from leases of less than one year but longer than one month that were not included in the lease liability. (b) Represents our net share of the ROU asset amortization and the interest expense. (c) Represents our net share of variable lease payments that were not included in the lease liability. (d) Represents the cumulative value of operating lease ROU assets recognized at lease inception and is amortized as the ROU asset is utilized. (e) Represents the cumulative value of finance lease ROU assets recognized at lease inception and is amortized as the ROU asset is utilized. |
Operating Lease, Maturity | The remaining annual undiscounted cash flows associated with long-term leases and the reconciliation of these cash flows to the lease liabilities recognized on the consolidated balance sheet is summarized below. (In millions) Operating Lease Obligations Finance Lease Obligations Total Lease Obligations 2023 $ 101 $ 7 $ 108 2024 20 7 27 2025 6 6 12 2026 2 5 7 2027 — — — Thereafter — — — Total undiscounted lease payments $ 129 $ 25 $ 154 Less: amount representing interest 3 1 4 Total lease liabilities $ 126 $ 24 $ 150 Less: current portion of lease liability as of December 31, 2022 94 6 100 Long-term lease liability as of December 31, 2022 $ 32 $ 18 $ 50 |
Operating Lease, Undiscounted Cash Flows to be Received | The undiscounted cash flows to be received under this lease agreement are summarized below. (In millions) Operating Lease Future Cash Receipts 2023 $ 6 2024 6 2025 6 2026 6 2027 6 Thereafter 42 Total undiscounted cash flows $ 72 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in the Consolidated Balance Sheets | The following tables present the gross fair values of our open derivative instruments and the reported net amounts along with their locations in our consolidated balance sheets. December 31, 2022 (In millions) Asset Liability Net Asset (Liability) Balance Sheet Location Not Designated as Hedges Commodity $ 10 $ — $ 10 Other current assets Total Not Designated as Hedges $ 10 $ — $ 10 Cash Flow Hedges Interest Rate $ 9 $ — $ 9 Other current assets Interest Rate 15 — 15 Other noncurrent assets Total Designated Hedges $ 24 $ — $ 24 Total $ 34 $ — $ 34 December 31, 2021 (In millions) Asset Liability Net Asset (Liability) Balance Sheet Location Not Designated as Hedges Commodity $ 1 $ 8 $ (7) Other current liabilities Interest Rate 27 — 27 Other noncurrent assets Total Not Designated as Hedges $ 28 $ 8 $ 20 Cash Flow Hedges Interest Rate $ — $ 3 $ (3) Other current liabilities Interest Rate — 2 (2) Deferred credits and other liabilities Total Designated Hedges $ — $ 5 $ (5) Total $ 28 $ 13 $ 15 The unrealized and realized gain (loss) impact of our commodity derivative instruments appears in the table below and is reflected in net gain (loss) on commodity derivatives in the consolidated statements of income. Year Ended December 31, (In millions) 2022 2021 2020 Unrealized gain (loss) on derivative instruments, net $ 18 $ 16 $ (27) Realized gain (loss) on derivative instruments, net (a) $ (132) $ (399) $ 143 (a) During the years ended 2022 and 2021, net cash paid for settled derivative positions was $153 million and $356 million. During the year ended 2020, net cash received for settled derivative positions was $123 million. |
Schedule of Notional Amounts of Outstanding Derivative Positions | The following table sets forth outstanding derivative contracts as of December 31, 2022 and the weighted average prices for those contracts: 2023 First Quarter Second Quarter Third Quarter Fourth Quarter Natural Gas Henry Hub Two-Way Collars Volume (MMBtu/day) 50,000 — — — Weighted average price per MMBtu: Ceiling $ 19.28 $ — $ — $ — Floor $ 5.00 $ — $ — $ — Henry Hub Three-Way Collars Volume (MMBtu/day) 50,000 50,000 50,000 50,000 Weighted average price per MMBtu: Ceiling $ 11.14 $ 11.14 $ 11.14 $ 11.14 Floor $ 4.00 $ 4.00 $ 4.00 $ 4.00 Sold Put $ 2.50 $ 2.50 $ 2.50 $ 2.50 |
Schedule of Interest Rate Derivatives | The following table presents, by maturity date, information about our de-designated forward starting interest rate swap agreements. These positions were fully liquidated as of December 31, 2022. December 31, 2022 December 31, 2021 Maturity Date Aggregate Notional Amount (in millions) Weighted Average, LIBOR Aggregate Notional Amount (in millions) Weighted Average, LIBOR June 1, 2025 $ — — % $ 350 0.95 % September 9, 2026 $ — — % $ 25 1.45 % The following table presents, by maturity date, information about our interest rate swap agreements, including the fixed weighted average interest rate. December 31, 2022 December 31, 2021 Maturity Date Aggregate Notional Amount (in millions) Weighted Average, SOFR Aggregate Notional Amount (in millions) Weighted Average, LIBOR September 9, 2026 $ 295 1.43 % $ 295 1.52 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present assets and liabilities accounted for at fair value on a recurring basis as of December 31, 2022 and 2021 by hierarchy level. December 31, 2022 (In millions) Level 1 Level 2 Level 3 Total Derivative instruments, assets Commodity (a) $ — $ 10 $ — $ 10 Interest rate - designated as cash flow hedges — 24 — 24 Derivative instruments, assets $ — $ 34 $ — $ 34 December 31, 2021 (In millions) Level 1 Level 2 Level 3 Total Derivative instruments, assets Interest rate - not designated as cash flow hedges $ — $ 27 $ — $ 27 Derivative instruments, assets $ — $ 27 $ — $ 27 Derivative instruments, liabilities Commodity (a) $ (2) $ (5) $ — $ (7) Interest rate - designated as cash flow hedges — (5) — (5) Derivative instruments, liabilities $ (2) $ (10) $ — $ (12) Total $ (2) $ 17 $ — $ 15 (a) Derivative instruments are recorded on a net basis in our consolidated balance sheet (See Note 15 ). |
Fair Value, by Balance Sheet Grouping | The following table summarizes financial instruments, excluding receivables, payables and derivative financial instruments, and their reported fair values by individual balance sheet line item at December 31, 2022 and 2021. December 31, 2022 2021 (In millions) Fair Carrying Fair Carrying Financial assets Current assets $ — $ — $ 11 $ 10 Other noncurrent assets 10 28 12 27 Total financial assets $ 10 $ 28 $ 23 $ 37 Financial liabilities Other current liabilities (a) $ 140 $ 204 $ 99 $ 136 Long-term debt, including current portion (b) 5,806 5,948 4,705 4,033 Deferred credits and other liabilities (c) 73 73 46 46 Total financial liabilities $ 6,019 $ 6,225 $ 4,850 $ 4,215 (a) Included in the fair value and the carrying value of other current liabilities at December 31, 2022 are $31 million of current liabilities assumed as a part of our acquisition of the Eagle Ford assets of Ensign Natural Resources during the fourth quarter of 2022. See Note 4 for details on the acquisition. (b) Excludes debt issuance costs. (c) Included in the fair value and the carrying value of deferred credits and other liabilities at December 31, 2022 are $58 million of noncurrent liabilities assumed as a part of our acquisition of the Eagle Ford assets of Ensign Natural Resources during the fourth quarter of 2022. See Note 4 for details on the acquisition. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Instrument Table | December 31, (In millions) 2022 2021 Term Loan Facility due 2024 $ 1,500 $ — Revolving Credit Facility due 2027 450 — Senior unsecured notes: 9.375% notes due 2022 — 32 Series A notes due 2022 — 3 8.500% notes due 2023 (a) 70 70 8.125% notes due 2023 (a) 131 131 4.400% notes due 2027 (b) 1,000 1,000 6.800% notes due 2032 (b) 550 550 6.600% notes due 2037 (b) 750 750 5.200% notes due 2045 (b) 500 500 Bonds: (c) 2.00% bonds due 2037 200 200 2.10% bonds due 2037 200 200 2.20% bonds due 2037 200 200 2.125% bonds due 2037 200 200 2.375% bonds due 2037 200 200 Total debt $ 5,951 $ 4,036 Unamortized discount (3) (3) Unamortized debt issuance cost (25) (19) Total debt, net $ 5,923 $ 4,014 (a) In the event of a change in control, as defined in the related agreements, debt obligations totaling $201 million at December 31, 2022 may be declared immediately due and payable. (b) These notes contain a make-whole provision allowing us to repay the debt at a premium to market price. |
Schedule of Long-Term Debt Maturities | As of December 31, 2022, maturities of long-term debt over the next five years, excluding interest to be accrued, as of were as follows: (In millions) 2023 $ 402 2024 1,900 2025 — 2026 400 2027 1,450 Thereafter 1,799 Total long-term debt, including current portion $ 5,951 |
Incentive Based Compensation (T
Incentive Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | The weighted average grant date fair value of these awards was based on the following weighted average Black-Scholes assumptions: 2020 Exercise price per share $ 10.47 Expected annual dividend yield 1.9 % Expected life in years 6.14 Expected volatility 44 % Risk-free interest rate 1.5 % Weighted average grant date fair value of stock option awards granted $ 3.82 |
Schedule of Share-based Compensation, Stock Options, Activity | The following is a summary of stock option award activity in 2022. Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in millions) Outstanding at beginning of year 4,274,304 $ 22.13 Granted — $ — Exercised/Vested (2,176,680) $ 14.73 Canceled (419,100) $ 33.56 Outstanding at end of year 1,678,524 $ 28.86 2 years $ 5 Exercisable at end of year 1,389,461 $ 32.69 1 year $ — Expected to vest 289,063 $ 10.47 7 years $ 5 |
Schedule of Nonvested Restricted Stock Units Activity | The following is a summary of restricted stock and restricted stock unit award activity in 2022. Awards Weighted Average Grant Date Fair Value Unvested at beginning of year 5,888,242 $ 10.98 Granted 1,848,387 $ 22.81 Vested (2,863,779) $ 11.99 Canceled (221,654) $ 14.61 Unvested at end of year 4,651,196 $ 14.89 |
Schedule of Performance Units, Valuation | The key assumptions used in the Monte Carlo simulation to determine the grant date fair value of stock-based performance units granted in 2022, 2021 and 2020 were: 2022 2021 2020 Valuation date stock price $ 22.89 $ 11.20 $ 10.47 Expected annual dividend yield 1.2 % 1.1 % 1.9 % Expected volatility 73 % 71 % 39 % Risk-free interest rate 1.4 % 0.3 % 1.4 % Fair value of stock-based performance units outstanding $ 34.07 $ 18.07 $ 10.55 |
Defined Benefit Postretiremen_2
Defined Benefit Postretirement Plans and Defined Contribution Plan (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | Obligations and funded status – The following summarizes the obligations and funded status for our defined benefit pension and other postretirement plans. Pension Benefits Other Benefits 2022 2021 2022 2021 (In millions) U.S. U.S. U.S. U.S. Accumulated benefit obligation $ 214 $ 260 $ 53 $ 73 Change in pension benefit obligations: Beginning balance $ 269 $ 308 $ 73 $ 80 Service cost 14 16 — — Interest cost 7 7 2 2 Actuarial (gain) loss (46) (15) (11) 1 Settlements paid (21) (43) — — Benefits paid (5) (4) (11) (10) Ending balance $ 218 $ 269 $ 53 $ 73 Change in fair value of plan assets: Beginning balance $ 192 $ 194 $ — $ — Actual return on plan assets (27) 13 — — Employer contributions 22 32 11 10 Settlements paid (21) (43) — — Benefits paid (5) (4) (11) (10) Ending balance $ 161 $ 192 $ — $ — Funded status of plans at December 31 $ (57) $ (77) $ (53) $ (73) Amounts recognized in the consolidated balance sheets: Current liabilities $ (3) $ (3) $ (8) $ (10) Noncurrent liabilities (54) (74) (45) (63) Accrued benefit cost $ (57) $ (77) $ (53) $ (73) Pretax amounts in accumulated other comprehensive loss: Net loss $ 24 $ 37 $ 11 $ 23 Prior service credit (8) (13) (65) (81) |
Schedule of Net Periodic Benefit Cost | Components of net periodic benefit costs and other comprehensive (income) loss – The following summarizes the net periodic benefit costs and the amounts recognized as other comprehensive (income) loss for our defined benefit pension and other postretirement plans. Pension Benefits Other Benefits Year Ended December 31, Year Ended December 31, 2022 2021 2020 2022 2021 2020 (In millions) U.S. U.S. U.S. U.S. U.S. U.S. Components of net periodic benefit costs: Service cost $ 14 $ 16 $ 19 $ — $ — $ 1 Interest cost 7 7 9 2 2 2 Expected return on plan assets (8) (8) (11) — — — Amortization: - prior service credit (6) (6) (6) (16) (16) (18) - actuarial loss 2 5 9 2 2 2 Net settlement loss (a) 2 9 30 — — — Net curtailment gain (b) — — (3) — — (14) Net periodic benefit cost (credit) (c) $ 11 $ 23 $ 47 $ (12) $ (12) $ (27) Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss (pretax): Actuarial loss (gain) $ (10) $ (21) $ 27 $ (10) $ 1 $ 4 Settlement loss and amortization of actuarial gain (loss) (4) (14) (40) (2) (2) (2) Curtailment gain and amortization of prior service credit (cost) 6 6 10 16 16 32 Total recognized in other comprehensive (income) loss $ (8) $ (29) $ (3) $ 4 $ 15 $ 34 Total recognized in net periodic benefit cost and other comprehensive (income) loss $ 3 $ (6) $ 44 $ (8) $ 3 $ 7 (a) Settlements are recognized as they occur, once it is probable that lump sum payments from a plan for a given year will exceed the plan’s total service and interest costs for that year. (b) Related to workforce reductions, which reduced the future expected years of service for employees participating in the plans. (c) Net periodic benefit costs (credits) reflects a calculated market-related value of plan assets, which recognizes changes in fair value over three years. |
Schedule of Assumptions Used | Plan assumptions – The following summarizes the assumptions used to determine the benefit obligations at December 31, and net periodic benefit cost for the defined benefit pension and other postretirement plans for 2022, 2021 and 2020. Pension Benefits Other Benefits 2022 2021 2020 2022 2021 2020 U.S. U.S. U.S. U.S. U.S. U.S. Weighted average assumptions used to determine benefit obligation: Discount rate 5.20 % 2.83 % 2.52 % 5.07 % 2.48 % 2.02 % Rate of compensation increase (a) 5.00 % 0.50 % 0.50 % 5.00 % 0.50 % 0.50 % Cash balance interest crediting 4.20 % 3.00 % 3.00 % — % — % — % Weighted average assumptions used to determine net periodic benefit cost: Discount rate 4.02 % 2.77 % 2.90 % 2.48 % 2.02 % 2.63 % Expected long-term return on plan assets 5.75 % 5.75 % 6.00 % — % — % — % Rate of compensation increase (b) 5.00 % 0.50 % 4.50 % 5.00 % 0.50 % 4.50 % Cash balance interest crediting 3.60 % 3.00 % 3.00 % — % — % — % (a) The assumed rate of compensation increase is 5.50% for the year 2023 and 4.50% for future years. (b) The assumed rate of compensation increase is 4.50% for future years. |
Schedule of Allocation of Plan Assets | The following tables present the fair values of our defined benefit pension plan’s assets, by level within the fair value hierarchy, as of December 31, 2022 and 2021. December 31, 2022 (In millions) Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 8 $ — $ — $ 8 Equity securities: Common stock 22 — — 22 Private equity — — 5 5 Other — — 10 10 Total investments, at fair value 30 — 15 45 Commingled funds (b) — — — 116 Total investments $ 30 $ — $ 15 $ 161 December 31, 2021 (In millions) Level 1 Level 2 Level 3 Total Cash and cash equivalents (a) $ (1) $ — $ — $ (1) Equity securities: Common stock 28 — — 28 Private equity — — 7 7 Other — — 16 16 Total investments, at fair value 27 — 23 50 Commingled funds (b) — — — 142 Total investments $ 27 $ — $ 23 $ 192 (a) The negative cash balance was due to the timing of when investment trades occur and when they settle. (b) After the adoption of the FASB update for the fair value hierarchy, we separately report the investments for which fair value was measured using the net asset value per share as a practical expedient. Amounts presented in this table are intended to reconcile the fair value hierarchy to the pension plan assets. |
Schedule of Expected Benefit Payments | Estimated future benefit payments – The following gross benefit payments, which were estimated based on actuarial assumptions applied at December 31, 2022 and reflect expected future services, as appropriate, are to be paid in the years indicated. (In millions) Pension Benefits Other Benefits 2023 $ 25 $ 8 2024 24 7 2025 23 6 2026 21 6 2027 21 5 2028 through 2032 $ 100 $ 19 |
Reclassifications Out of Accu_2
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Amounts Reclassified out of Accumulated Other Comprehensive Income (Loss) | The following table presents a summary of amounts reclassified from accumulated other comprehensive income (loss): Year Ended December 31, (In millions) 2022 2021 Income Statement Line Postretirement and postemployment plans Amortization of prior service credit $ 22 $ 22 Other net periodic benefit (costs) credits Amortization of actuarial loss (4) (7) Other net periodic benefit (costs) credits Net settlement loss (2) (9) Other net periodic benefit (costs) credits Interest rate swaps Reclassification of de-designated forward interest rate swaps — (28) Net interest and other (3) — Provision (benefit) for income taxes Total reclassifications of (income) expense, net of tax (a) $ 13 $ (22) Net income (loss) |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Supplemental Cash Flow Information | Year Ended December 31, (In millions) 2022 2021 2020 Included in operating activities: Interest paid $ 197 $ 231 $ 251 Income taxes paid (received), net of refunds (a) 173 24 (51) Noncash investing activities: Increase in asset retirement costs $ 30 $ 56 $ — (a) 2022, 2021 and 2020 includes $1 million, $2 million and $94 million, respectively, related to tax refunds. |
Other Items (Tables)
Other Items (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Interest and Other Income [Abstract] | |
Schedule of Net Interest And Other Financing Table | Net interest and other Year Ended December 31, (In millions) 2022 2021 2020 Interest: Interest income $ 15 $ 1 $ 5 Interest expense (227) (257) (279) Gain on interest rate swaps 19 54 12 Total interest (193) (202) (262) Other: Other 5 14 6 Net interest and other $ (188) $ (188) $ (256) |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | Ownership as of December 31, (In millions) December 31, 2022 2022 2021 EGHoldings (a) 56% $ 287 $ 148 Alba Plant LLC (b) 52% 155 154 AMPCO (c) 45% 135 148 Total $ 577 $ 450 (a) EGHoldings is engaged in LNG production activity. (b) Alba Plant LLC processes LPG. (c) AMPCO is engaged in methanol production activity. |
Income And Balance Sheet Information of Equity Investees Table | Summarized, 100% combined financial information for equity method investees is as follows: (In millions) 2022 2021 2020 Income data – year: Revenues and other income $ 1,745 $ 1,095 $ 586 Income from operations 1,164 537 16 Net income (loss) 1,068 440 (3) Balance sheet data – December 31: Current assets $ 842 $ 556 Noncurrent assets 698 822 Current liabilities 269 247 Noncurrent liabilities 188 231 |
Summary of Principal Accounti_4
Summary of Principal Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | $ 17,377 | $ 14,499 |
Number of calendar days for average daily closing price of common stock | 30 days | |
Office furniture, equipment and computer hardware | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | $ 36 | 41 |
Office furniture, equipment and computer hardware | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Range of Useful Lives | 4 years | |
Office furniture, equipment and computer hardware | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Range of Useful Lives | 15 years | |
Pipelines | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | $ 13 | 10 |
Pipelines | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Range of Useful Lives | 5 years | |
Pipelines | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Range of Useful Lives | 40 years | |
Plants, facilities and infrastructure | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | $ 1,510 | $ 1,496 |
Plants, facilities and infrastructure | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Range of Useful Lives | 3 years | |
Plants, facilities and infrastructure | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Range of Useful Lives | 40 years |
Income (loss) and Dividends p_3
Income (loss) and Dividends per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2 | 4 | 7 |
Net income (loss) | $ 3,612 | $ 946 | $ (1,451) |
Weighted average common shares outstanding (in shares) | 685 | 787 | 792 |
Effect of dilutive securities (in shares) | 2 | 1 | 0 |
Weighted average common shares, diluted (in shares) | 687 | 788 | 792 |
Net income (loss) per share: | |||
Basic (in dollars per share) | $ 5.27 | $ 1.20 | $ (1.83) |
Diluted (in dollars per share) | 5.26 | 1.20 | (1.83) |
Dividends paid (in dollars per share) | $ 0.32 | $ 0.18 | $ 0.08 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - Ensign Natural Resources a in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 27, 2022 USD ($) a well | Dec. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Business Acquisition [Line Items] | |||
Cash consideration | $ 3,000 | ||
Net proved and unproved acres | a | 130 | ||
Average working interest, percent | 97% | ||
Number of wells acquired | well | 700,000,000 | ||
Acquisition related costs | $ 18 | ||
Business combination, consideration transferred, increase in ownership interest | $ 135 |
Acquisitions - Assets Acquired
Acquisitions - Assets Acquired and Liabilities Assumed (Details) - Ensign Natural Resources - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 27, 2022 |
Assets: | ||
Inventories | $ 4 | |
Total current assets acquired | 4 | |
Property, plant and equipment | 3,159 | |
Total assets acquired | 3,163 | |
Liabilities: | ||
Other current liabilities | 36 | |
Total current liabilities assumed | $ 31 | 36 |
Asset retirement obligations | $ 41 | 41 |
Other noncurrent liabilities | 58 | |
Total liabilities assumed | 135 | |
Net assets acquired | $ 3,028 |
Acquisitions - Unaudited Pro Fo
Acquisitions - Unaudited Pro Forma (Details) - Ensign Natural Resources - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||
Revenues | $ 9,116 | $ 5,757 |
Net income | $ 3,974 | $ 941 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Receivables, net | $ 903 | $ 961 |
Revenues - Revenues from Contra
Revenues - Revenues from Contracts with Customers by Product Type and Geographic Areas (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | $ 7,540 | $ 5,601 | $ 3,097 |
U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 7,268 | 5,334 | 2,924 |
U.S. | Eagle Ford | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 2,382 | 1,763 | 996 |
U.S. | Bakken | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 3,015 | 2,135 | 1,072 |
U.S. | Oklahoma | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 975 | 768 | 451 |
U.S. | Permian | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 588 | 416 | 242 |
U.S. | Other U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 308 | 252 | 163 |
U.S. | Crude oil and condensate | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 5,552 | 3,925 | 2,322 |
U.S. | Crude oil and condensate | Eagle Ford | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 2,004 | 1,435 | 830 |
U.S. | Crude oil and condensate | Bakken | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 2,508 | 1,777 | 984 |
U.S. | Crude oil and condensate | Oklahoma | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 423 | 299 | 235 |
U.S. | Crude oil and condensate | Permian | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 456 | 314 | 204 |
U.S. | Crude oil and condensate | Other U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 161 | 100 | 69 |
U.S. | Natural gas liquids | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 814 | 653 | 243 |
U.S. | Natural gas liquids | Eagle Ford | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 183 | 161 | 74 |
U.S. | Natural gas liquids | Bakken | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 310 | 239 | 54 |
U.S. | Natural gas liquids | Oklahoma | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 231 | 189 | 89 |
U.S. | Natural gas liquids | Permian | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 62 | 47 | 20 |
U.S. | Natural gas liquids | Other U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 28 | 17 | 6 |
U.S. | Natural gas | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 809 | 632 | 275 |
U.S. | Natural gas | Eagle Ford | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 188 | 159 | 86 |
U.S. | Natural gas | Bakken | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 197 | 119 | 34 |
U.S. | Natural gas | Oklahoma | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 321 | 280 | 127 |
U.S. | Natural gas | Permian | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 70 | 55 | 18 |
U.S. | Natural gas | Other U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 33 | 19 | 10 |
U.S. | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 93 | 124 | 84 |
U.S. | Other | Eagle Ford | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 7 | 8 | 6 |
U.S. | Other | Bakken | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | 0 |
U.S. | Other | Oklahoma | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | 0 |
U.S. | Other | Permian | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | 0 |
U.S. | Other | Other U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 86 | 116 | 78 |
International | Equatorial Guinea | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 272 | 267 | 173 |
International | Crude oil and condensate | Equatorial Guinea | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 244 | 240 | 140 |
International | Natural gas liquids | Equatorial Guinea | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 2 | 2 | 4 |
International | Natural gas | Equatorial Guinea | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 22 | 23 | 29 |
International | Other | Equatorial Guinea | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | $ 4 | $ 2 | $ 0 |
Revenues - Customer Concentrati
Revenues - Customer Concentration Risk (Details) - Revenue Benchmark - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Marathon Petroleum Corporation | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 22% | 17% | 13% |
Valero Marketing and Supply | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 12% | 10% | |
Trafigura Groupe Pte. Ltd. | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10% | ||
Koch Resources LLC | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 12% |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2022 USD ($) | Mar. 31, 2020 USD ($) | Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | segment | 2 | ||||
Revenues from contracts with customers | $ 7,540 | $ 5,601 | $ 3,097 | ||
Net gain (loss) on commodity derivatives | (114) | (383) | 116 | ||
Income (loss) from equity method investments | 613 | 253 | (161) | ||
Net gain (loss) on disposal of assets | (38) | (19) | 9 | ||
Other income | 35 | 15 | 25 | ||
Production | 690 | 534 | 555 | ||
Shipping, handling and other operating | 733 | 727 | 596 | ||
Exploration | 110 | 136 | 181 | ||
Depreciation, depletion and amortization | $ 1,753 | $ 2,066 | $ 2,316 | ||
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration] | Impairments | Impairments | Impairments | ||
Impairments | $ 7 | $ 60 | $ 144 | ||
Taxes other than income | 484 | 345 | 200 | ||
General and administrative | 308 | 291 | 274 | ||
Net interest and other | 188 | 188 | 256 | ||
Other net periodic benefit costs (credits) | 16 | 5 | (1) | ||
Loss on early extinguishment of debt | 0 | 121 | 28 | ||
Income tax provision (benefit) | 167 | 58 | (14) | ||
Net income (loss) | 3,612 | 946 | (1,451) | ||
Total assets | 19,940 | 16,994 | 17,956 | ||
Capital expenditures | 1,480 | 1,032 | 1,151 | ||
Valuation allowance released | $ 685 | 685 | |||
Long-lived assets held for use impairment | 0 | 30 | 49 | ||
Loss on lease termination | 13 | ||||
Severance costs | 12 | 17 | |||
Goodwill, impairment loss | $ 95 | 0 | 0 | 95 | |
Pension Benefits | |||||
Segment Reporting Information [Line Items] | |||||
Other net periodic benefit costs (credits) | (30) | ||||
Net curtailment gain | 17 | ||||
Interest Rate Contract, Maturing November 1, 2022 | Not Designated as Hedges | |||||
Segment Reporting Information [Line Items] | |||||
Gain on interest rate swap | 28 | ||||
Interest Rate Contract, Maturing June 1, 2025 | Not Designated as Hedges | |||||
Segment Reporting Information [Line Items] | |||||
Gain on interest rate swap | 27 | ||||
Interest Rate Contract, Maturing June 1, 2025 | Cash Flow Hedges | |||||
Segment Reporting Information [Line Items] | |||||
Gain on interest rate swap | 17 | ||||
Permian | |||||
Segment Reporting Information [Line Items] | |||||
Exploration | 28 | ||||
Long-lived assets held for use impairment | 5 | ||||
Gulf Of Mexico | |||||
Segment Reporting Information [Line Items] | |||||
Asset retirement costs of long-lived assets, impairment | 30 | ||||
Impairments | 30 | ||||
Dry Well Costs and Unproved Property Impairments | LOUISIANA | |||||
Segment Reporting Information [Line Items] | |||||
Exploration | 48 | ||||
Dry Well Costs and Unproved Property Impairments | Permian | |||||
Segment Reporting Information [Line Items] | |||||
Exploration | 25 | ||||
Unproved Property Impairments | |||||
Segment Reporting Information [Line Items] | |||||
Exploration | 20 | ||||
Oil And Gas Lease | Permian | |||||
Segment Reporting Information [Line Items] | |||||
Exploration | 16 | ||||
Central Facilities | Eagle Ford | |||||
Segment Reporting Information [Line Items] | |||||
Long-lived assets held for use impairment | 24 | ||||
Non-Producing Property | Gulf Of Mexico | |||||
Segment Reporting Information [Line Items] | |||||
Asset retirement costs of long-lived assets, impairment | 30 | ||||
Impairments | 30 | ||||
Unproved Acreage | Permian | |||||
Segment Reporting Information [Line Items] | |||||
Net gain (loss) on disposal of assets | 39 | ||||
Non-Core Conventional Assets | |||||
Segment Reporting Information [Line Items] | |||||
Net gain (loss) on disposal of assets | (20) | ||||
Equity method investment | |||||
Segment Reporting Information [Line Items] | |||||
Net gain (loss) on disposal of assets | (12) | ||||
Well Bore Assignments | |||||
Segment Reporting Information [Line Items] | |||||
Net gain (loss) on disposal of assets | 8 | ||||
U.S. | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from contracts with customers | 7,268 | 5,334 | 2,924 | ||
U.S. | Permian | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from contracts with customers | 588 | 416 | 242 | ||
U.S. | Eagle Ford | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from contracts with customers | 2,382 | 1,763 | 996 | ||
Operating Segments | U.S. | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from contracts with customers | 7,268 | 5,334 | 2,924 | ||
Net gain (loss) on commodity derivatives | (132) | (399) | 143 | ||
Income (loss) from equity method investments | 0 | 0 | 0 | ||
Net gain (loss) on disposal of assets | 0 | 0 | 0 | ||
Other income | 19 | 7 | 15 | ||
Production | 625 | 480 | 494 | ||
Shipping, handling and other operating | 665 | 686 | 534 | ||
Exploration | 36 | 65 | 97 | ||
Depreciation, depletion and amortization | 1,675 | 1,972 | 2,211 | ||
Impairments | 0 | 0 | 0 | ||
Taxes other than income | 475 | 346 | 193 | ||
General and administrative | 131 | 107 | 115 | ||
Net interest and other | 0 | 0 | 0 | ||
Other net periodic benefit costs (credits) | 0 | 0 | 0 | ||
Loss on early extinguishment of debt | 0 | 0 | |||
Income tax provision (benefit) | 808 | 9 | (9) | ||
Net income (loss) | 2,740 | 1,277 | (553) | ||
Total assets | 18,429 | 15,339 | 16,063 | ||
Capital expenditures | 1,463 | 1,018 | 1,137 | ||
Operating Segments | Int’l | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from contracts with customers | 272 | 267 | 173 | ||
Net gain (loss) on commodity derivatives | 0 | 0 | 0 | ||
Income (loss) from equity method investments | 613 | 253 | 10 | ||
Net gain (loss) on disposal of assets | 0 | 0 | 0 | ||
Other income | 7 | 4 | 7 | ||
Production | 65 | 54 | 59 | ||
Shipping, handling and other operating | 18 | 16 | 8 | ||
Exploration | 0 | 0 | 0 | ||
Depreciation, depletion and amortization | 60 | 68 | 82 | ||
Impairments | 0 | 0 | 0 | ||
Taxes other than income | 0 | 0 | 0 | ||
General and administrative | 13 | 13 | 14 | ||
Net interest and other | 0 | 0 | 0 | ||
Other net periodic benefit costs (credits) | 0 | 0 | 0 | ||
Loss on early extinguishment of debt | 0 | 0 | |||
Income tax provision (benefit) | 151 | 56 | (3) | ||
Net income (loss) | 585 | 317 | 30 | ||
Total assets | 1,157 | 994 | 1,081 | ||
Capital expenditures | 2 | 0 | 1 | ||
Not Allocated to Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from contracts with customers | 0 | 0 | 0 | ||
Net gain (loss) on commodity derivatives | 18 | 16 | (27) | ||
Income (loss) from equity method investments | 0 | 0 | (171) | ||
Net gain (loss) on disposal of assets | (38) | (19) | 9 | ||
Other income | 9 | 4 | 3 | ||
Production | 0 | 0 | 2 | ||
Shipping, handling and other operating | 50 | 25 | 54 | ||
Exploration | 74 | 71 | 84 | ||
Depreciation, depletion and amortization | 18 | 26 | 23 | ||
Impairments | 7 | 60 | 144 | ||
Taxes other than income | 9 | (1) | 7 | ||
General and administrative | 164 | 171 | 145 | ||
Net interest and other | 188 | 188 | 256 | ||
Other net periodic benefit costs (credits) | 16 | 5 | (1) | ||
Loss on early extinguishment of debt | 121 | 28 | |||
Income tax provision (benefit) | (792) | (7) | (2) | ||
Net income (loss) | 287 | (648) | (928) | ||
Total assets | 354 | 661 | 812 | ||
Capital expenditures | $ 15 | $ 14 | $ 13 |
Segment Information - Geographi
Segment Information - Geographical (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Proved properties | $ 17,954 | $ 14,949 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Proved properties | 17,088 | 14,152 |
Equatorial Guinea | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Proved properties | $ 866 | $ 797 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income (Loss) Before Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 3,037 | $ 637 | $ (1,319) |
Foreign | 742 | 367 | (146) |
Income (loss) before income taxes | $ 3,779 | $ 1,004 | $ (1,465) |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Federal | |||
Current | $ 0 | $ 0 | $ (5) |
Deferred | (46) | 0 | 0 |
Total | (46) | 0 | (5) |
State and local | |||
Current | 12 | 4 | (2) |
Deferred | 52 | 1 | (8) |
Total | 64 | 5 | (10) |
Foreign | |||
Current | 172 | 81 | 15 |
Deferred | (23) | (28) | (14) |
Total | 149 | 53 | 1 |
Total | |||
Current | 184 | 85 | 8 |
Deferred | (17) | (27) | (22) |
Total income tax provision (benefit) | $ 167 | $ 58 | $ (14) |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income (loss) before income taxes | $ 3,779 | $ 1,004 | $ (1,465) |
Total income tax provision (benefit) | $ 167 | $ 58 | $ (14) |
Effective income tax rate | 4% | 6% | 1% |
Income taxes at the statutory tax rate | $ 793 | $ 211 | $ (308) |
Adjustments to valuation allowances | (691) | (166) | 239 |
Effects of foreign operations | 2 | (13) | 23 |
State income taxes, net of federal benefit | 62 | 23 | 6 |
Tax law change | 0 | (2) | 0 |
Other federal tax effects | $ 1 | $ 5 | $ 26 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Loss Carryforwards [Line Items] | |||
Valuation allowance released | $ 685 | $ 685 | |
Operating loss carryforwards | 1,189 | $ 1,541 | |
Foreign tax credits | 602 | 611 | |
Valuation allowance | 89 | 780 | |
Deferred tax liability, property, plant and equipment | 1,850 | $ 1,544 | |
United States | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 5,200 | ||
Operating loss carryforwards, subject to expiration | 1,100 | ||
Foreign | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards, subject to expiration | 1 | ||
State | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 2,400 | ||
Operating loss carryforwards, subject to expiration | $ 120 |
Income Taxes - Schedule of Net
Income Taxes - Schedule of Net Deferred Tax Asset/Liability (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Employee benefits | $ 56 | $ 66 |
Operating loss carryforwards | 1,189 | 1,541 |
Foreign tax credits | 602 | 611 |
Other | 65 | 52 |
Subtotal | 1,912 | 2,270 |
Valuation allowance | (89) | (780) |
Total deferred tax assets | 1,823 | 1,490 |
Deferred tax liabilities: | ||
Property, plant and equipment | 1,850 | 1,544 |
Other | 100 | 82 |
Total deferred tax liabilities | 1,950 | 1,626 |
Net deferred tax liabilities | $ 127 | $ 136 |
Income Taxes - Balance Sheet Cl
Income Taxes - Balance Sheet Classification (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Deferred tax assets | $ 40 | $ 0 |
Liabilities | ||
Noncurrent deferred tax liabilities | 167 | 136 |
Net deferred tax liabilities | $ 127 | $ 136 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Unrecognized Tax Benefit Rollforward [Abstract] | |||
Beginning balance | $ 10 | $ 8 | $ 13 |
Additions for tax positions of prior years | 1 | 2 | 0 |
Reductions for tax positions of prior years | 0 | 0 | (5) |
Settlements | (11) | 0 | 0 |
Ending balance | $ 0 | $ 10 | $ 8 |
Credit Losses (Details)
Credit Losses (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance as of January 1 | $ 15 | $ 22 |
Current period provision | (3) | 3 |
Current period write offs | (2) | (5) |
Recoveries of amounts previously reserved | 0 | (5) |
Ending balance as of December 31 | $ 10 | $ 15 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Crude oil and natural gas liquids | $ 15 | $ 8 |
Supplies and other items | 110 | 69 |
Inventories | $ 125 | $ 77 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property Plant and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 17,377 | $ 14,499 |
Not Allocated to Segments | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 55 | 55 |
U.S. | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 17,034 | 14,097 |
Int’l | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 288 | $ 347 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Increase (Decrease) in Capitalized Exploratory Well Costs that are Pending Determination of Proved Reserves [Roll Forward] | |||
Beginning balance as of January 1 | $ 162 | $ 210 | $ 278 |
Additions | 78 | 50 | 97 |
Charges to expense | (30) | (30) | (1) |
Transfers to development | (96) | (68) | (164) |
Ending balance as of December 31 | $ 114 | $ 162 | $ 210 |
Property, Plant and Equipment_3
Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2021 | |
Schedule Of Property Plant And Equipment By Segment [Line Items] | |||||
Amounts capitalized greater than one year after completion of drilling | $ 20 | $ 80 | |||
Exploratory well cost capitalized during the year, period increase (decrease) | (46) | $ 2 | $ 12 | $ 6 | |
Permian | |||||
Schedule Of Property Plant And Equipment By Segment [Line Items] | |||||
Dry well cost | $ 14 |
Impairments - Schedule of Impai
Impairments - Schedule of Impaired Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Proved properties, impairment | $ 0 | $ 30 | $ 49 | |
Asset retirement costs of long-lived assets, impairment | 7 | 30 | 0 | |
Goodwill, impairment loss | $ 95 | 0 | 0 | 95 |
Equity method investment, impairment | 0 | 0 | 171 | |
Fair Value | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Proved properties | 0 | 0 | 0 | |
Asset retirement costs of long-lived assets | 0 | 0 | 0 | |
Goodwill | 0 | 0 | 0 | |
Equity method investment | $ 0 | $ 0 | $ 119 |
Impairments - Narrative (Detail
Impairments - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) facility | Dec. 31, 2020 USD ($) | |
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Exploration | $ 110 | $ 136 | $ 181 | |
Long-lived assets held for use impairment | 0 | $ 30 | 49 | |
Number of impaired assets | facility | 2 | |||
Goodwill impairment | $ 95 | 0 | $ 0 | 95 |
Equity method investment, impairment | 0 | 0 | 171 | |
Permian | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Exploration | 28 | |||
Long-lived assets held for use impairment | 5 | |||
New Mexico | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Long-lived assets held for use impairment | 5 | |||
Gulf Of Mexico | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Impairments | 30 | |||
Unproved Property | LOUISIANA | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Exploration | 25 | 20 | $ 78 | |
Unproved Property | Permian | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Exploration | $ 17 | 16 | ||
Central Facilities | Eagle Ford | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Long-lived assets held for use impairment | 24 | |||
Oil And Gas Lease | Permian | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Exploration | 16 | |||
Non-Producing Property | Gulf Of Mexico | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Impairments | $ 30 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 27, 2022 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Beginning balance as of January 1 | $ 316 | $ 254 | |
Incurred liabilities, including acquisitions | 55 | 14 | |
Settled liabilities, including dispositions | (20) | (6) | |
Accretion expense (included in depreciation, depletion and amortization) | 14 | 12 | |
Revisions of estimates | (25) | 42 | |
Ending balance as of December 31 | 340 | 316 | |
Asset retirement obligation, current | 45 | 28 | |
Ensign Natural Resources | |||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Asset retirement obligations | $ 41 | $ 41 | |
Gulf Of Mexico | |||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Revisions of estimates | 37 | ||
Asset retirement obligation, current | 14 | ||
Impairments | $ 30 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2018 | |
Leases [Abstract] | ||
Term of contract | 5 years | |
Cash lease payment | $ 11 | |
Finance lease extension term | 5 years | |
Residual value guarantee | 100% | |
Weighted average lease term | 2 years | |
Discount rate | 5% | |
Finance lease, weighted-average remaining lease term | 4 years | |
Finance lease, discount rate | 2% | |
Annual payments to be received | $ 6 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other noncurrent assets | Other noncurrent assets |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other noncurrent assets | Other noncurrent assets |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Deferred credits and other liabilities | Deferred credits and other liabilities |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Deferred credits and other liabilities | Deferred credits and other liabilities |
ROU assets: | ||
Operating leases | $ 123 | $ 59 |
Finance leases | 24 | 28 |
Total ROU assets | 147 | 87 |
Lease liabilities: | ||
Operating leases | 94 | 40 |
Finance leases | 6 | 6 |
Operating leases | 32 | 23 |
Finance leases | 18 | 24 |
Total lease liabilities | $ 150 | $ 93 |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Short-term lease costs | $ 164 | $ 121 | $ 170 |
Long-term lease costs | 74 | 64 | 75 |
Variable lease costs | 37 | 33 | 23 |
Amortization of ROU assets | 4 | 3 | 0 |
Total lease costs | 279 | 221 | 268 |
Cash paid for amounts included in the measurement of operating lease liabilities | 90 | 73 | 100 |
ROU assets obtained in exchange for new operating lease liabilities | 117 | 15 | 46 |
ROU assets obtained in exchange for new finance lease liabilities | 0 | 28 | 0 |
Changes to ROU assets resulting from modifications or cancellations of operating leases | $ 40 | $ (13) | $ (68) |
Leases - Lease Maturity (Detail
Leases - Lease Maturity (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Lease Obligations | ||
2023 | $ 101 | |
2024 | 20 | |
2025 | 6 | |
2026 | 2 | |
2027 | 0 | |
Thereafter | 0 | |
Total undiscounted lease payments | 129 | |
Less: amount representing interest | 3 | |
Total lease liabilities | 126 | |
Less: current portion of lease liability as of December 31, 2022 | 94 | $ 40 |
Long-term lease liability as of December 31, 2022 | 32 | 23 |
Finance Lease Obligations | ||
2023 | 7 | |
2024 | 7 | |
2025 | 6 | |
2026 | 5 | |
2027 | 0 | |
Thereafter | 0 | |
Total undiscounted lease payments | 25 | |
Less: amount representing interest | 1 | |
Total lease liabilities | 24 | |
Less: current portion of lease liability as of December 31, 2022 | 6 | 6 |
Long-term lease liability as of December 31, 2022 | 18 | 24 |
Total Lease Obligations | ||
2023 | 108 | |
2024 | 27 | |
2025 | 12 | |
2026 | 7 | |
2027 | 0 | |
Thereafter | 0 | |
Total undiscounted lease payments | 154 | |
Less: amount representing interest | 4 | |
Total lease liabilities | 150 | $ 93 |
Less: current portion of lease liability as of December 31, 2022 | 100 | |
Long-term lease liability as of December 31, 2022 | $ 50 |
Leases - Lease Payments to be R
Leases - Lease Payments to be Received (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Leases [Abstract] | |
2023 | $ 6 |
2024 | 6 |
2025 | 6 |
2026 | 6 |
2027 | 6 |
Thereafter | 42 |
Total undiscounted cash flows | $ 72 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill impairment | $ 95 | $ 0 | $ 0 | $ 95 |
Derivatives - Balance Sheet Com
Derivatives - Balance Sheet Components (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Asset | $ 34 | $ 28 |
Liability | 0 | 13 |
Net Asset (Liability) | $ 34 | $ 15 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other current assets, Other noncurrent assets | Other noncurrent assets |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other current liabilities, Deferred credits and other liabilities | |
Not Designated as Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Asset | $ 10 | $ 28 |
Liability | 0 | 8 |
Net Asset (Liability) | 10 | 20 |
Not Designated as Hedges | Other current assets | Commodity | ||
Derivatives, Fair Value [Line Items] | ||
Asset | 10 | |
Liability | 0 | |
Net Asset (Liability) | 10 | |
Not Designated as Hedges | Other noncurrent assets | Interest Rate | ||
Derivatives, Fair Value [Line Items] | ||
Asset | 27 | |
Liability | 0 | |
Net Asset (Liability) | 27 | |
Not Designated as Hedges | Other current liabilities | Commodity | ||
Derivatives, Fair Value [Line Items] | ||
Asset | 1 | |
Liability | 8 | |
Net Asset (Liability) | (7) | |
Cash Flow Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Asset | 24 | 0 |
Liability | 0 | 5 |
Net Asset (Liability) | 24 | (5) |
Cash Flow Hedges | Other current assets | Interest Rate | ||
Derivatives, Fair Value [Line Items] | ||
Asset | 9 | |
Liability | 0 | |
Net Asset (Liability) | 9 | |
Cash Flow Hedges | Other noncurrent assets | Interest Rate | ||
Derivatives, Fair Value [Line Items] | ||
Asset | 15 | |
Liability | 0 | |
Net Asset (Liability) | $ 15 | |
Cash Flow Hedges | Other current liabilities | Interest Rate | ||
Derivatives, Fair Value [Line Items] | ||
Asset | 0 | |
Liability | 3 | |
Net Asset (Liability) | (3) | |
Cash Flow Hedges | Deferred credits and other liabilities | Interest Rate | ||
Derivatives, Fair Value [Line Items] | ||
Asset | 0 | |
Liability | 2 | |
Net Asset (Liability) | $ (2) |
Derivatives - Outstanding Deriv
Derivatives - Outstanding Derivative Contracts (Details) - Not Designated as Hedges | Dec. 31, 2022 MMBbls / d $ / bbl $ / MMBTU |
Two-Way Collars - Natural Gas 2023 Q1 | |
Derivative [Line Items] | |
Derivative, volume | MMBbls / d | 50,000 |
Derivative, ceiling | $ / MMBTU | 19.28 |
Derivative, floor | $ / MMBTU | 5 |
Two-Way Collars - Natural Gas 2023 Q2 | |
Derivative [Line Items] | |
Derivative, volume | MMBbls / d | 0 |
Derivative, ceiling | $ / MMBTU | 0 |
Derivative, floor | $ / MMBTU | 0 |
Two-Way Collars - Natural Gas 2023 Q3 | |
Derivative [Line Items] | |
Derivative, volume | MMBbls / d | 0 |
Derivative, ceiling | $ / MMBTU | 0 |
Derivative, floor | $ / MMBTU | 0 |
Two-Way Collars - Natural Gas 2023 Q4 | |
Derivative [Line Items] | |
Derivative, volume | MMBbls / d | 0 |
Derivative, ceiling | $ / MMBTU | 0 |
Derivative, floor | $ / MMBTU | 0 |
Three-Way Collars - Natural Gas 2023, First Quarter | |
Derivative [Line Items] | |
Derivative, volume | MMBbls / d | 50,000 |
Derivative, ceiling | 11.14 |
Derivative, floor | 4 |
Derivative, sold put | 2.50 |
Three-Way Collars - Natural Gas 2023, Second Quarter | |
Derivative [Line Items] | |
Derivative, volume | MMBbls / d | 50,000 |
Derivative, ceiling | 11.14 |
Derivative, floor | 4 |
Derivative, sold put | 2.50 |
Three-Way Collars - Natural Gas 2023, Third Quarter | |
Derivative [Line Items] | |
Derivative, volume | MMBbls / d | 50,000 |
Derivative, ceiling | 11.14 |
Derivative, floor | 4 |
Derivative, sold put | 2.50 |
Three-Way Collars - Natural Gas 2023, Fourth Quarter | |
Derivative [Line Items] | |
Derivative, volume | MMBbls / d | 50,000 |
Derivative, ceiling | 11.14 |
Derivative, floor | 4 |
Derivative, sold put | 2.50 |
Derivatives - Schedule of mark-
Derivatives - Schedule of mark-to-market impact and commodity derivative settlements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized gain (loss) on derivatives, net | $ 19 | $ 54 | $ 12 |
Net settlements of derivative instruments | 153 | 356 | 123 |
Commodity | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized gain (loss) on derivative instruments, net | 18 | 16 | (27) |
Realized gain (loss) on derivatives, net | $ (132) | $ (399) | $ 143 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Long-term debt | $ 5,923,000,000 | $ 4,014,000,000 | |||||||
Senior Unsecured Notes, 3.850%, Due 2025 | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Long-term debt | $ 900,000,000 | ||||||||
Debt instrument, interest rate | 3.85% | 3.85% | |||||||
Interest Rate Contract, Maturing June 1, 2025 | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Reclassification from AOCI | $ 31,000,000 | ||||||||
Interest Rate Contract, Maturing June 1, 2025 | Not Designated as Hedges | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Gain on interest rate swap | 27,000,000 | ||||||||
Interest Rate Contract, Maturing June 1, 2025 | Cash Flow Hedges | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Gain on interest rate swap | 17,000,000 | ||||||||
Proceeds for settlement of interest rate swaps | $ 44,000,000 | ||||||||
Interest Rate Contract, Maturing September 9, 2026 | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Amount expected to be reclassified within 12 months | 10,000,000 | ||||||||
Designated as Hedging Instrument | Interest Rate Contract, Maturing November 1, 2022 | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Derivative, notional amount | $ 500,000,000 | ||||||||
Designated as Hedging Instrument | Interest Rate Contract, Maturing June 1, 2025 | Cash Flow Hedges | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Derivative, notional amount | $ 350,000,000 | ||||||||
Designated as Hedging Instrument | Interest Rate Contract, Maturing September 9, 2026 | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Derivative, notional amount | 295,000,000 | 295,000,000 | |||||||
Designated as Hedging Instrument | Interest Rate Contract, Maturing September 9, 2026 | Cash Flow Hedges | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Derivative, notional amount | 320,000,000 | $ 320,000,000 | |||||||
Not Designated as Hedges | Interest Rate Contract, Maturing November 1, 2022 | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Net deferred loss of de-designated forward starting interest rate swaps | $ 2,000,000 | ||||||||
Gain on interest rate swap | 28,000,000 | ||||||||
Not Designated as Hedges | Interest Rate Contract, Maturing June 1, 2025 | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Derivative, notional amount | 0 | 350,000,000 | |||||||
Gain on interest rate swap | 27,000,000 | ||||||||
Not Designated as Hedges | Interest Rate Contract, Maturing September 9, 2026 | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Derivative, notional amount | $ 0 | $ 25,000,000 | |||||||
Proceeds for settlement of interest rate swaps | $ 2,000,000 | ||||||||
Not Designated as Hedges | Interest Rate Contract, Maturing September 9, 2026 | Scenario, Adjustment | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Derivative, notional amount | $ 25,000,000 | $ 25,000,000 |
Derivatives - Schedule of Termi
Derivatives - Schedule of Terminated Interest Rate Swap Agreement (Details) - Not Designated as Hedges - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Interest Rate Contract, Maturing June 1, 2025 | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 0 | $ 350 |
Weighted average interest rate, LIBOR | 0% | 0.95% |
Interest Rate Contract, Maturing September 9, 2026 | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 0 | $ 25 |
Weighted average interest rate, LIBOR | 0% | 1.45% |
Derivatives - Schedule of Inter
Derivatives - Schedule of Interest Rate Swap Agreements (Details) - Interest Rate Contract, Maturing September 9, 2026 - Designated as Hedging Instrument - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Derivative, notional amount | $ 295 | $ 295 |
Weighted average interest rate, LIBOR | 1.43% | 1.52% |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring (Details) - Recurring - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | ||
Derivative instruments, assets | $ 34 | $ 27 |
Derivative instruments, liabilities | (12) | |
Total | 15 | |
Commodity | Not Designated as Hedges | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | ||
Derivative instruments, assets | 10 | |
Derivative instruments, liabilities | (7) | |
Interest Rate | Not Designated as Hedges | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | ||
Derivative instruments, assets | 27 | |
Interest Rate | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | ||
Derivative instruments, assets | 24 | |
Derivative instruments, liabilities | (5) | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | ||
Derivative instruments, assets | 0 | 0 |
Derivative instruments, liabilities | (2) | |
Total | (2) | |
Level 1 | Commodity | Not Designated as Hedges | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | ||
Derivative instruments, assets | 0 | |
Derivative instruments, liabilities | (2) | |
Level 1 | Interest Rate | Not Designated as Hedges | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | ||
Derivative instruments, assets | 0 | |
Level 1 | Interest Rate | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | ||
Derivative instruments, assets | 0 | |
Derivative instruments, liabilities | 0 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | ||
Derivative instruments, assets | 34 | 27 |
Derivative instruments, liabilities | (10) | |
Total | 17 | |
Level 2 | Commodity | Not Designated as Hedges | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | ||
Derivative instruments, assets | 10 | |
Derivative instruments, liabilities | (5) | |
Level 2 | Interest Rate | Not Designated as Hedges | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | ||
Derivative instruments, assets | 27 | |
Level 2 | Interest Rate | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | ||
Derivative instruments, assets | 24 | |
Derivative instruments, liabilities | (5) | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | ||
Derivative instruments, assets | 0 | 0 |
Derivative instruments, liabilities | 0 | |
Total | 0 | |
Level 3 | Commodity | Not Designated as Hedges | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | ||
Derivative instruments, assets | 0 | |
Derivative instruments, liabilities | 0 | |
Level 3 | Interest Rate | Not Designated as Hedges | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | ||
Derivative instruments, assets | 0 | |
Level 3 | Interest Rate | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | ||
Derivative instruments, assets | $ 0 | |
Derivative instruments, liabilities | $ 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Values, Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 27, 2022 | Dec. 31, 2021 |
Ensign Natural Resources | |||
Financial liabilities | |||
Current liabilities | $ 31 | $ 36 | |
Noncurrent liabilities | 58 | ||
Fair Value | |||
Financial assets | |||
Current assets | 0 | $ 11 | |
Other noncurrent assets | 10 | 12 | |
Total financial assets | 10 | 23 | |
Financial liabilities | |||
Other current liabilities | 140 | 99 | |
Long-term debt, including current portion | 5,806 | 4,705 | |
Deferred credits and other liabilities | 73 | 46 | |
Total financial liabilities | 6,019 | 4,850 | |
Carrying Amount | |||
Financial assets | |||
Current assets | 0 | 10 | |
Other noncurrent assets | 28 | 27 | |
Total financial assets | 28 | 37 | |
Financial liabilities | |||
Other current liabilities | 204 | 136 | |
Long-term debt, including current portion | 5,948 | 4,033 | |
Deferred credits and other liabilities | 73 | 46 | |
Total financial liabilities | $ 6,225 | $ 4,215 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2022 | May 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 5,951 | $ 4,036 | |
Unamortized discount | (3) | (3) | |
Unamortized debt issuance cost | (25) | (19) | |
Total debt, net | 5,923 | 4,014 | |
Debt immediately due if change in control | 201 | ||
Term Loan Facility due 2024 | Line of Credit | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 1,500 | 0 | |
Revolving Credit Facility due 2027 | Line of Credit | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 450 | 0 | |
Senior Unsecured Notes, 9.375%, Due 2022 | Senior Unsecured Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 9.375% | 9.375% | |
Long-term debt, gross | $ 0 | $ 32 | 32 |
Senior Unsecured Notes, Series A, Due 2022 | Senior Unsecured Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 0 | 3 | |
Senior Unsecured Notes, 8.500%, Due 2023 | Senior Unsecured Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 8.50% | ||
Long-term debt, gross | $ 70 | 70 | |
Senior Unsecured Notes, 8.125%, Due 2023 | Senior Unsecured Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 8.125% | ||
Long-term debt, gross | $ 131 | 131 | |
Senior Unsecured Notes, 4.400%, Due 2027 | Senior Unsecured Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 4.40% | ||
Long-term debt, gross | $ 1,000 | 1,000 | |
Senior Unsecured Notes, 6.800%, Due 2032 | Senior Unsecured Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 6.80% | ||
Long-term debt, gross | $ 550 | 550 | |
Senior Unsecured Notes, 6.600%, Due 2037 | Senior Unsecured Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 6.60% | ||
Long-term debt, gross | $ 750 | 750 | |
Senior Unsecured Notes, 5.200%, Due 2045 | Senior Unsecured Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 5.20% | ||
Long-term debt, gross | $ 500 | 500 | |
2.00% bonds due 2037 | Bonds | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 2% | ||
Long-term debt, gross | $ 200 | 200 | |
2.10% bonds due 2037 | Bonds | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 2.10% | ||
Long-term debt, gross | $ 200 | 200 | |
2.20% bonds due 2037 | Bonds | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 2.20% | ||
Long-term debt, gross | $ 200 | 200 | |
2.125% bonds due 2037 | Bonds | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 2.125% | ||
Long-term debt, gross | $ 200 | 200 | |
2.375% bonds due 2037 | Bonds | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 2.375% | ||
Long-term debt, gross | $ 200 | $ 200 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Jul. 28, 2022 | Nov. 30, 2022 | Sep. 30, 2021 | Apr. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jul. 27, 2022 | May 31, 2022 | |
Debt Instrument [Line Items] | ||||||||||
Proceeds from revolving credit facility | $ 450 | $ 0 | $ 0 | |||||||
Long-term debt, gross | $ 5,951 | $ 5,951 | 4,036 | |||||||
Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | $ 2,500 | $ 3,100 | ||||||||
Covenant, ratio of indebtedness to net capital, maximum | 65% | 65% | ||||||||
Ratio of indebtedness to net capital | 0.26 | 0.26 | ||||||||
Extended maturity | 3 years | |||||||||
Proceeds from revolving credit facility | $ 450 | |||||||||
Line of credit facility, remaining borrowing capacity | $ 2,100 | $ 2,100 | ||||||||
Interest rate at period end | 5.92% | 5.92% | ||||||||
Senior Unsecured Notes, 3.850%, Due 2025 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, interest rate | 3.85% | 3.85% | ||||||||
Line of Credit | Term Loan Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt term | 2 years | |||||||||
Maximum borrowing capacity | $ 1,500 | |||||||||
Effective interest rate | 6.17% | 6.17% | ||||||||
Covenant, ratio of indebtedness to net capital, maximum | 65% | 65% | ||||||||
Ratio of indebtedness to net capital | 0.26 | 0.26 | ||||||||
Line of Credit | Term Loan Facility | SOFR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 1,000% | |||||||||
Interest margin added to variable rate | 1.75% | |||||||||
Senior Unsecured Notes | Senior Unsecured Notes, 9.375%, Due 2022 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt, gross | $ 0 | $ 0 | $ 32 | $ 32 | ||||||
Debt instrument, interest rate | 9.375% | 9.375% | 9.375% | |||||||
Senior Unsecured Notes | Senior Unsecured Notes, 3.850%, Due 2025 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt, gross | $ 900 | |||||||||
Costs related to make-whole provision premium and write off of unamortized discount and issuance costs | $ 102 | |||||||||
Senior Unsecured Notes | Senior Unsecured Notes, 2.800%, Due 2022 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt, gross | $ 500 | |||||||||
Debt instrument, interest rate | 2.80% | |||||||||
Costs related to make-whole provision premium and write off of unamortized discount and issuance costs | $ 19 |
Debt - Maturity (Details)
Debt - Maturity (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2023 | $ 402 | |
2024 | 1,900 | |
2025 | 0 | |
2026 | 400 | |
2027 | 1,450 | |
Thereafter | 1,799 | |
Total long-term debt, including current portion | $ 5,951 | $ 4,036 |
Incentive Based Compensation -
Incentive Based Compensation - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized (in shares) | 27,900,000 | ||
Shares reduced for each shares of common stock granted (in shares) | 1 | ||
Performance period | 2 years | ||
Allocated stock-based compensation expense | $ 50,000,000 | $ 43,000,000 | $ 55,000,000 |
Tax benefit | 11,000,000 | 0 | 0 |
Proceeds from stock options exercised | 32,000,000 | 5,000,000 | 1,000,000 |
Tax benefit realized from exercise of stock options | $ 7,000,000 | 0 | 0 |
Share-based Payment Arrangement, Tranche One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage, banking feature lock threshold percentage | 50% | ||
Share-based Payment Arrangement, Tranche Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage, banking feature lock threshold percentage | 100% | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Maximum term | 10 years | ||
Stock options exercised, intrinsic value | $ 23,000,000 | $ 3,000,000 | $ 0 |
Stock Appreciation Rights (SARs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards other than options, outstanding (in shares) | 0 | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value (in dollars per share) | $ 14.89 | $ 10.98 | $ 11.72 |
Restricted Stock | Non Officer | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Restricted Stock | Officer | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Restricted Stock Units (RSUs) | Non Officer | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Restricted Stock Units (RSUs) | Non-Employee Director | Share-based Payment Arrangement, Tranche One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Restricted Stock Units (RSUs) | Non-Employee Director | Share-based Payment Arrangement, Tranche Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 1 year | ||
Restricted Stock Units (RSUs) | Officer | Share-based Payment Arrangement, Tranche One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Restricted Stock Units (RSUs) | Officer | Share-based Payment Arrangement, Tranche Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated stock-based compensation expense | $ 18,000,000 | $ 11,000,000 | $ 5,000,000 |
Weighted average grant date fair value (in dollars per share) | $ 34.07 | $ 18.07 | $ 10.55 |
Performance Unit - Share Settlement | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants in period (in shares) | 167,043 | ||
Granted (in dollars per share) | $ 34.07 | ||
Unit conversion ratio (in shares) | 1 | ||
Performance Unit - Share Settlement | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights, percentage | 0% | ||
Performance Unit - Share Settlement | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights, percentage | 200% | ||
Performance Unit - Share Settlement | Officer | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards other than options, outstanding (in shares) | 1,230,274 | ||
Grants in period (in shares) | 167,043 | 307,473 | 1,038,676 |
Performance Unit - Cash Settlement | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants in period (in shares) | 167,043 | ||
Unit conversion ratio (in shares) | 1 | ||
Performance shares, payout determination, share price trading day duration | 30 days | ||
Fair value as of period end (in dollars per share) | $ 26.83 | ||
Performance Unit - Cash Settlement | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights, percentage | 0% | ||
Performance Unit - Cash Settlement | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights, percentage | 200% | ||
Performance Unit - Cash Settlement | Officer | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards other than options, outstanding (in shares) | 463,802 | ||
Grants in period (in shares) | 167,043 | 307,473 | |
Restricted Stock Awards and Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants in period (in shares) | 1,848,387 | ||
Granted (in dollars per share) | $ 22.81 | ||
Vested in period, total fair value | $ 34,000,000 | $ 39,000,000 | $ 49,000,000 |
Weighted average grant date fair value (in dollars per share) | $ 14.89 | $ 10.98 | |
Unrecognized compensation costs | $ 35,000,000 | ||
Unrecognized compensation costs, period for recognition | 1 year |
Incentive Based Compensation _2
Incentive Based Compensation - Stock Option Award Assumptions (Details) - Stock Options - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise price per share (in dollars per share) | $ 0 | $ 10.47 |
Expected annual dividend yield | 1.90% | |
Expected life in years | 6 years 1 month 20 days | |
Expected volatility | 44% | |
Risk-free interest rate | 1.50% | |
Weighted average grant date fair value of stock option awards granted (in dollars per share) | $ 3.82 |
Incentive Based Compensation _3
Incentive Based Compensation - Stock Option Award Activity (Details) - Stock Options - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2020 | |
Number of Shares | ||
Beginning of year, stock option awards (in shares) | 4,274,304 | |
Granted, stock option awards (in shares) | 0 | |
Exercised, stock option awards (in shares) | (2,176,680) | |
Canceled, stock option awards (in shares) | (419,100) | |
End of year, stock option awards (in shares) | 1,678,524 | |
Exercisable at end of year, stock option awards (in shares) | 1,389,461 | |
Expected to vest, stock option awards (in shares) | 289,063 | |
Weighted Average Exercise Price | ||
Beginning of year, weighted average exercise price (in dollars per share) | $ 22.13 | |
Granted, weighted average exercise price (in dollars per share) | 0 | $ 10.47 |
Exercises, weighted average exercise price (in dollars per share) | 14.73 | |
Canceled, weighted average exercise price (in dollars per share) | 33.56 | |
End of year, weighted average exercise price (in dollars per share) | 28.86 | |
Exercisable at end of year, weighted average exercise price (in dollars per share) | 32.69 | |
Expected to vest, weighted average exercise price (in dollars per share) | $ 10.47 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract] | ||
Outstanding at end of year, Weighted Average Remaining Contractual Term | 2 years | |
Exercisable at end of year, Weighted Average Remaining Contractual Term | 1 year | |
Expected to vest, Weighted Average Remaining Contractual Term | 7 years | |
Outstanding at end of year, Average Intrinsic Value | $ 5 | |
Exercisable at end of year, Average Intrinsic Value | 0 | |
Expected to vest, Average Intrinsic Value | $ 5 |
Incentive Based Compensation _4
Incentive Based Compensation - Restricted Stock Awards and RSUs (Details) - Restricted Stock Awards and Restricted Stock Units | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Awards | |
Unvested at beginning of year (in shares) | shares | 5,888,242 |
Granted (in shares) | shares | 1,848,387 |
Vested (in shares) | shares | (2,863,779) |
Canceled (in shares) | shares | (221,654) |
Unvested at end of year (in shares) | shares | 4,651,196 |
Weighted Average Grant Date Fair Value | |
Unvested at beginning of year (in dollars per share) | $ / shares | $ 10.98 |
Granted (in dollars per share) | $ / shares | 22.81 |
Vested (in dollars per share) | $ / shares | 11.99 |
Canceled (in dollars per share) | $ / shares | 14.61 |
Unvested at end of year (in dollars per share) | $ / shares | $ 14.89 |
Incentive Based Compensation _5
Incentive Based Compensation - Performance Unit Awards (Details) - Performance Shares - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Valuation date stock price (in dollars per share) | $ 22.89 | $ 11.20 | $ 10.47 |
Expected annual dividend yield | 1.20% | 1.10% | 1.90% |
Expected volatility | 73% | 71% | 39% |
Risk-free interest rate | 1.40% | 0.30% | 1.40% |
Weighted average grant date fair value (in dollars per share) | $ 34.07 | $ 18.07 | $ 10.55 |
Defined Benefit Postretiremen_3
Defined Benefit Postretirement Plans and Defined Contribution Plan - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Assumed Health Care Cost Trend Rates [Line Items] | |||
Estimated future employer contributions in next year | $ 12 | ||
Employer discretionary contribution amount | 12 | $ 13 | $ 13 |
Unfunded Portion of Pension Plan | |||
Defined Benefit Plan Assumed Health Care Cost Trend Rates [Line Items] | |||
Estimated future employer contributions in next year | 3 | ||
Unfunded Portion of Other Postretirement Benefits Plan | |||
Defined Benefit Plan Assumed Health Care Cost Trend Rates [Line Items] | |||
Estimated future employer contributions in next year | $ 8 | ||
Equity Securities | |||
Defined Benefit Plan Assumed Health Care Cost Trend Rates [Line Items] | |||
Target allocation percentage | 47% | ||
Fixed Income Securities | |||
Defined Benefit Plan Assumed Health Care Cost Trend Rates [Line Items] | |||
Target allocation percentage | 53% |
Defined Benefit Postretiremen_4
Defined Benefit Postretirement Plans and Defined Contribution Plan - Obligations and Funded Status (Details) - U.S. - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pension Benefits | |||
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Abstract] | |||
Accumulated benefit obligation | $ 214 | $ 260 | |
Change in benefit obligations: | |||
Beginning balance | 269 | 308 | |
Service cost | 14 | 16 | $ 19 |
Interest cost | 7 | 7 | 9 |
Actuarial (gain) loss | (46) | (15) | |
Settlements paid | (21) | (43) | |
Benefits paid | (5) | (4) | |
Ending balance | 218 | 269 | 308 |
Change in fair value of plan assets: | |||
Beginning balance | 192 | 194 | |
Actual return on plan assets | (27) | 13 | |
Employer contributions | 22 | 32 | |
Settlements paid | (21) | (43) | |
Benefits paid | (5) | (4) | |
Ending balance | 161 | 192 | 194 |
Funded status of plans at December 31 | |||
Funded status of plans at December 31 | (57) | (77) | |
Amounts recognized in the consolidated balance sheets: | |||
Current liabilities | (3) | (3) | |
Noncurrent liabilities | (54) | (74) | |
Accrued benefit cost | (57) | (77) | |
Pretax amounts in accumulated other comprehensive loss: | |||
Net loss | 24 | 37 | |
Prior service credit | (8) | (13) | |
Other Benefits | |||
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Abstract] | |||
Accumulated benefit obligation | 53 | 73 | |
Change in benefit obligations: | |||
Beginning balance | 73 | 80 | |
Service cost | 0 | 0 | 1 |
Interest cost | 2 | 2 | 2 |
Actuarial (gain) loss | (11) | 1 | |
Settlements paid | 0 | 0 | |
Benefits paid | (11) | (10) | |
Ending balance | 53 | 73 | 80 |
Change in fair value of plan assets: | |||
Beginning balance | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 11 | 10 | |
Settlements paid | 0 | 0 | |
Benefits paid | (11) | (10) | |
Ending balance | 0 | 0 | $ 0 |
Funded status of plans at December 31 | |||
Funded status of plans at December 31 | (53) | (73) | |
Amounts recognized in the consolidated balance sheets: | |||
Current liabilities | (8) | (10) | |
Noncurrent liabilities | (45) | (63) | |
Accrued benefit cost | (53) | (73) | |
Pretax amounts in accumulated other comprehensive loss: | |||
Net loss | 11 | 23 | |
Prior service credit | $ (65) | $ (81) |
Defined Benefit Postretiremen_5
Defined Benefit Postretirement Plans and Defined Contribution Plan - Schedule of Net Periodic Benefit Cost and OCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Amortization: | |||
Net settlement loss | $ (16) | $ (5) | $ 1 |
Pension Benefits | |||
Amortization: | |||
Net settlement loss | 30 | ||
Net curtailment gain | (17) | ||
Pension Benefits | U.S. | |||
Components of net periodic benefit costs: | |||
Service cost | 14 | 16 | 19 |
Interest cost | 7 | 7 | 9 |
Expected return on plan assets | (8) | (8) | (11) |
Amortization: | |||
- prior service credit | (6) | (6) | (6) |
- actuarial loss | 2 | 5 | 9 |
Net settlement loss | 2 | 9 | 30 |
Net curtailment gain | 0 | 0 | (3) |
Net periodic benefit cost | 11 | 23 | 47 |
Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss (pretax): | |||
Actuarial loss (gain) | (10) | (21) | 27 |
Settlement loss and amortization of actuarial gain (loss) | (4) | (14) | (40) |
Curtailment gain and amortization of prior service credit (cost) | 6 | 6 | 10 |
Total recognized in other comprehensive (income) loss | (8) | (29) | (3) |
Total recognized in net periodic benefit cost and other comprehensive (income) loss | 3 | (6) | 44 |
Other Benefits | U.S. | |||
Components of net periodic benefit costs: | |||
Service cost | 0 | 0 | 1 |
Interest cost | 2 | 2 | 2 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization: | |||
- prior service credit | (16) | (16) | (18) |
- actuarial loss | 2 | 2 | 2 |
Net settlement loss | 0 | 0 | 0 |
Net curtailment gain | 0 | 0 | (14) |
Net periodic benefit cost | (12) | (12) | (27) |
Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss (pretax): | |||
Actuarial loss (gain) | (10) | 1 | 4 |
Settlement loss and amortization of actuarial gain (loss) | (2) | (2) | (2) |
Curtailment gain and amortization of prior service credit (cost) | 16 | 16 | 32 |
Total recognized in other comprehensive (income) loss | 4 | 15 | 34 |
Total recognized in net periodic benefit cost and other comprehensive (income) loss | $ (8) | $ 3 | $ 7 |
Defined Benefit Postretiremen_6
Defined Benefit Postretirement Plans and Defined Contribution Plan - Plan Assumptions (Details) - U.S. | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2024 | |
Pension Benefits | |||||
Weighted average assumptions used to determine benefit obligation: | |||||
Discount rate | 5.20% | 2.83% | 2.52% | ||
Rate of compensation increase | 5% | 0.50% | 0.50% | ||
Cash balance interest crediting | 4.20% | 3% | 3% | ||
Weighted average assumptions used to determine net periodic benefit cost: | |||||
Discount rate | 4.02% | 2.77% | 2.90% | ||
Expected long-term return on plan assets | 5.75% | 5.75% | 6% | ||
Rate of compensation increase | 5% | 0.50% | 4.50% | ||
Cash balance interest crediting | 3.60% | 3% | 3% | ||
Pension Benefits | Forecast | |||||
Weighted average assumptions used to determine benefit obligation: | |||||
Rate of compensation increase | 5.50% | 4.50% | |||
Weighted average assumptions used to determine net periodic benefit cost: | |||||
Rate of compensation increase | 4.50% | ||||
Other Benefits | |||||
Weighted average assumptions used to determine benefit obligation: | |||||
Discount rate | 5.07% | 2.48% | 2.02% | ||
Rate of compensation increase | 5% | 0.50% | 0.50% | ||
Cash balance interest crediting | 0% | 0% | 0% | ||
Weighted average assumptions used to determine net periodic benefit cost: | |||||
Discount rate | 2.48% | 2.02% | 2.63% | ||
Expected long-term return on plan assets | 0% | 0% | 0% | ||
Rate of compensation increase | 5% | 0.50% | 4.50% | ||
Cash balance interest crediting | 0% | 0% | 0% |
Defined Benefit Postretiremen_7
Defined Benefit Postretirement Plans and Defined Contribution Plan - Fair Value of Defined Benefit Pension Plan Assets (Details) - Recurring - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | $ 161 | $ 192 |
Plan assets before comingled funds | 45 | 50 |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 8 | (1) |
Common stock | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 22 | 28 |
Private equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 5 | 7 |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 10 | 16 |
Commingled funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 116 | 142 |
Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 30 | 27 |
Plan assets before comingled funds | 30 | 27 |
Level 1 | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 8 | (1) |
Level 1 | Common stock | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 22 | 28 |
Level 1 | Private equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 0 | 0 |
Level 1 | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 0 | 0 |
Level 1 | Commingled funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 0 | 0 |
Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 0 | 0 |
Plan assets before comingled funds | 0 | 0 |
Level 2 | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 0 | 0 |
Level 2 | Common stock | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 0 | 0 |
Level 2 | Private equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 0 | 0 |
Level 2 | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 0 | 0 |
Level 2 | Commingled funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 0 | 0 |
Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 15 | 23 |
Plan assets before comingled funds | 15 | 23 |
Level 3 | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 0 | 0 |
Level 3 | Common stock | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 0 | 0 |
Level 3 | Private equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 5 | 7 |
Level 3 | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | 10 | 16 |
Level 3 | Commingled funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets | $ 0 | $ 0 |
Defined Benefit Postretiremen_8
Defined Benefit Postretirement Plans and Defined Contribution Plan - Cash Flows (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Pension Benefits | |
Defined Benefit Plan Estimated Future Benefit Payments [Line Items] | |
2023 | $ 25 |
2024 | 24 |
2025 | 23 |
2026 | 21 |
2027 | 21 |
2028 through 2032 | 100 |
Other Benefits | |
Defined Benefit Plan Estimated Future Benefit Payments [Line Items] | |
2023 | 8 |
2024 | 7 |
2025 | 6 |
2026 | 6 |
2027 | 5 |
2028 through 2032 | $ 19 |
Reclassifications Out of Accu_3
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Other net periodic benefit (costs) credits | $ 16 | $ 5 | $ (1) |
Net interest and other | (188) | (188) | (256) |
Provision (benefit) for income taxes | 167 | 58 | (14) |
Net income (loss) | 3,612 | 946 | $ (1,451) |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income (Loss) | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Net income (loss) | 13 | (22) | |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of prior service credit | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Other net periodic benefit (costs) credits | 22 | 22 | |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of actuarial loss | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Other net periodic benefit (costs) credits | (4) | (7) | |
Reclassification out of Accumulated Other Comprehensive Income | Net settlement loss | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Other net periodic benefit (costs) credits | (2) | (9) | |
Reclassification out of Accumulated Other Comprehensive Income | Reclassification of de-designated forward interest rate swaps | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Net interest and other | 0 | (28) | |
Provision (benefit) for income taxes | $ (3) | $ 0 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating activities: | |||
Interest paid | $ 197 | $ 231 | $ 251 |
Income taxes paid (received), net of refunds | 173 | 24 | (51) |
Noncash investing activities: | |||
Increase in asset retirement costs | 30 | 56 | 0 |
Proceeds from tax refunds | 1 | 2 | 94 |
Capital expenditures incurred but not yet paid | $ 111 | $ 81 | $ 95 |
Other Items (Details)
Other Items (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net Interest and Other Financing [Abstract] | |||
Interest income | $ 15 | $ 1 | $ 5 |
Interest expense | (227) | (257) | (279) |
Gain on interest rate swaps | 19 | 54 | 12 |
Total interest | (193) | (202) | (262) |
Other | 5 | 14 | 6 |
Net interest and other | $ (188) | $ (188) | $ (256) |
Equity Method Investments - Sum
Equity Method Investments - Summary of Equity Method Investments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | $ 577 | $ 450 | |
EGHoldings | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 56% | 60% | |
Equity method investments | $ 287 | 148 | |
Alba Plant LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 52% | ||
Equity method investments | $ 155 | 154 | |
AMPCO | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 45% | ||
Equity method investments | $ 135 | $ 148 |
Equity Method Investments - Nar
Equity Method Investments - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2022 | |
Schedule of Equity Method Investments [Line Items] | ||||
Loss on equity method investments | $ 12 | |||
Equity method investment, impairment | $ 0 | 0 | $ 171 | |
Equity method investment, difference between carrying amount and underlying equity | 88 | 112 | 140 | |
Accretion of difference between carrying amount and underlying equity | 24 | 22 | ||
Revenue from related parties | 28 | 30 | 38 | |
Proceeds from equity method investment | 486 | 238 | $ 56 | |
Due from related parties | 36 | 23 | ||
Due to related parties | $ 20 | $ 20 | ||
EGHoldings | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 56% | 60% |
Equity Method Investments - S_2
Equity Method Investments - Summary of Financial Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||
Revenues and other income | $ 8,036 | $ 5,467 | $ 3,086 |
Income from operations | 3,951 | 1,308 | (1,180) |
Net income (loss) | 3,612 | 946 | (1,451) |
Current assets | 1,671 | 1,821 | |
Current liabilities | 2,306 | 1,637 | |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | |||
Schedule of Equity Method Investments [Line Items] | |||
Revenues and other income | 1,745 | 1,095 | 586 |
Income from operations | 1,164 | 537 | 16 |
Net income (loss) | 1,068 | 440 | (3) |
Current assets | 842 | 556 | |
Noncurrent assets | 698 | 822 | |
Current liabilities | 269 | 247 | |
Noncurrent liabilities | $ 188 | $ 231 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) shares in Millions, $ in Millions | 2 Months Ended | 12 Months Ended | |||
Feb. 15, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Nov. 30, 2022 | |
Class of Stock [Line Items] | |||||
Shares repurchased under buyback programs | $ 2,754 | $ 724 | $ 85 | ||
Purchase of shares for tax withholding obligations | $ 22 | $ 10 | $ 7 | ||
Treasury Stock | |||||
Class of Stock [Line Items] | |||||
Shares repurchased (in shares) | 113 | 46 | 9 | ||
Share Repurchase Program | |||||
Class of Stock [Line Items] | |||||
Remaining share repurchase program authorized amount | $ 2,500 | $ 2,500 | |||
Share Repurchase Program | Subsequent Event | |||||
Class of Stock [Line Items] | |||||
Shares repurchased (in shares) | 133 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 guarantee | Dec. 31, 2022 USD ($) tribe | |
Guarantor Obligations [Line Items] | ||
Number of affiliated tribes | tribe | 3 | |
Contingent royalty liability | $ 159,000 | |
Contingent capital and expense receivable, noncurrent | 26,000 | |
Expected penalty or fine (in excess of) | 300 | |
Number of guarantees executed | guarantee | 2 | |
Guarantor obligations, current carrying value | 4,000 | |
Performance of Equatorial Guinea LNG Operations, S.A. | ||
Guarantor Obligations [Line Items] | ||
Guarantor obligations, maximum amount | 91,000 | |
Performance of Alba Plant LLC. | ||
Guarantor Obligations [Line Items] | ||
Guarantor obligations, maximum amount | 25,000 | |
Accounts Payable | ||
Guarantor Obligations [Line Items] | ||
Contingent royalty liability | 142,000 | |
Other current liabilities | ||
Guarantor Obligations [Line Items] | ||
Contingent royalty liability | $ 17,000 |