Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 28, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
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 $1.00 | |
Trading Symbol | MRO | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 617,604,314 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2023 | |
Amendment Flag | false | |
Entity Central Index Key | 0000101778 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues and other income: | ||
Revenues from contracts with customers | $ 1,567 | $ 1,761 |
Net gain (loss) on commodity derivatives | 15 | (143) |
Income from equity method investments | 80 | 127 |
Net gain on disposal of assets | 5 | 0 |
Other income | 13 | 8 |
Total revenues and other income | 1,680 | 1,753 |
Costs and expenses: | ||
Production | 201 | 152 |
Shipping, handling and other operating | 162 | 185 |
Exploration | 15 | 11 |
Depreciation, depletion and amortization | 520 | 423 |
Taxes other than income | 95 | 104 |
General and administrative | 82 | 73 |
Total costs and expenses | 1,075 | 948 |
Income from operations | 605 | 805 |
Net interest and other | (82) | (22) |
Other net periodic benefit credits | 3 | 4 |
Income before income taxes | 526 | 787 |
Provision (benefit) for income taxes | 109 | (517) |
Net income | $ 417 | $ 1,304 |
Net income per share: | ||
Basic (in dollars per share) | $ 0.66 | $ 1.79 |
Diluted (in dollars per share) | $ 0.66 | $ 1.78 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 628 | 730 |
Diluted (in shares) | 629 | 732 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 417 | $ 1,304 |
Other comprehensive income, net of tax | ||
Change in actuarial gain (loss) and other for postretirement and postemployment plans | (5) | (4) |
Change in derivative hedges unrecognized gain | (2) | 12 |
Other comprehensive income (loss) | (7) | 8 |
Comprehensive income | $ 410 | $ 1,312 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 178 | $ 334 |
Receivables, net | 1,215 | 1,146 |
Inventories | 136 | 125 |
Other current assets | 77 | 66 |
Total current assets | 1,606 | 1,671 |
Equity method investments | 657 | 577 |
Property, plant and equipment, net of accumulated depreciation, depletion and amortization of $24,346 and $23,876 | 17,463 | 17,377 |
Other noncurrent assets | 286 | 315 |
Total assets | 20,012 | 19,940 |
Current liabilities: | ||
Accounts payable | 1,480 | 1,279 |
Payroll and benefits payable | 41 | 90 |
Accrued taxes | 176 | 171 |
Other current liabilities | 318 | 364 |
Long-term debt due within one year | 131 | 402 |
Total current liabilities | 2,146 | 2,306 |
Long-term debt | 5,723 | 5,521 |
Deferred tax liabilities | 209 | 167 |
Defined benefit postretirement plan obligations | 99 | 100 |
Asset retirement obligations | 296 | 295 |
Deferred credits and other liabilities | 151 | 154 |
Total liabilities | 8,624 | 8,543 |
Commitments and contingencies (Note 21) | ||
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 March 31, 2023 and December 31, 2022) | 937 | 937 |
Held in treasury, at cost – 315 million shares and 304 million shares | (7,814) | (7,512) |
Additional paid-in capital | 7,149 | 7,203 |
Retained earnings | 11,017 | 10,663 |
Accumulated other comprehensive income | 99 | 106 |
Total stockholders’ equity | 11,388 | 11,397 |
Total liabilities and stockholders’ equity | $ 20,012 | $ 19,940 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Property, plant and equipment, accumulated depreciation | $ 24,346 | $ 23,876 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 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) | 315,000,000 | 304,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating activities: | ||
Net income | $ 417 | $ 1,304 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 520 | 423 |
Exploratory dry well costs and unproved property impairments | 14 | 8 |
Net gain on disposal of assets | (5) | 0 |
Deferred income taxes | 85 | (548) |
Unrealized (gain) loss on derivative instruments, net | (2) | 114 |
Pension and other post retirement benefits, net | (7) | (9) |
Stock-based compensation | 10 | 9 |
Equity method investments, net | (80) | (79) |
Changes in: | ||
Current receivables | (86) | (307) |
Inventories | (12) | (2) |
Current accounts payable and accrued liabilities | 30 | 101 |
Other current assets and liabilities | (9) | (5) |
All other operating, net | (10) | 58 |
Net cash provided by operating activities | 865 | 1,067 |
Investing activities: | ||
Additions to property, plant and equipment | (532) | (332) |
Acquisitions, net of cash acquired | 11 | 0 |
Disposal of assets, net of cash transferred to the buyer | (1) | 2 |
Equity method investments - return of capital | 0 | 7 |
Net cash used in investing activities | (522) | (323) |
Financing activities: | ||
Proceeds from revolving credit facility | 175 | 0 |
Repayments of revolving credit facility | (175) | 0 |
Debt repayment | (70) | 0 |
Shares repurchased under buyback programs | (334) | (592) |
Dividends paid | (63) | (52) |
Purchases of shares for tax withholding obligations | (30) | (21) |
All other financing, net | (2) | 22 |
Net cash used in financing activities | (499) | (643) |
Net increase (decrease) in cash and cash equivalents | (156) | 101 |
Cash and cash equivalents at beginning of period | 334 | 580 |
Cash and cash equivalents at end of period | $ 178 | $ 681 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Millions | Total | Preferred Stock | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income |
Beginning balance at Dec. 31, 2021 | $ 10,686 | $ 0 | $ 937 | $ (4,825) | $ 7,221 | $ 7,271 | $ 82 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Shares repurchased under buyback programs | (592) | (592) | |||||
Stock-based compensation | 12 | 55 | (43) | ||||
Net income | 1,304 | 1,304 | |||||
Other comprehensive income (loss) | 8 | 8 | |||||
Dividends paid | (52) | (52) | |||||
Ending balance at Mar. 31, 2022 | 11,366 | 0 | 937 | (5,362) | 7,178 | 8,523 | 90 |
Beginning balance at Dec. 31, 2022 | 11,397 | 0 | 937 | (7,512) | 7,203 | 10,663 | 106 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Shares repurchased under buyback programs | (334) | (334) | |||||
Excise tax on shares repurchased | (3) | (3) | |||||
Stock-based compensation | (19) | 35 | (54) | ||||
Net income | 417 | 417 | |||||
Other comprehensive income (loss) | (7) | (7) | |||||
Dividends paid | (63) | (63) | |||||
Ending balance at Mar. 31, 2023 | $ 11,388 | $ 0 | $ 937 | $ (7,814) | $ 7,149 | $ 11,017 | $ 99 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends paid (in dollars per share) | $ 0.10 | $ 0.07 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation These consolidated financial statements are unaudited; however, in the opinion of management, these statements reflect all adjustments necessary for a fair statement of the results for the periods reported. All such adjustments are of a normal recurring nature unless disclosed otherwise. These consolidated financial statements, including notes, have been prepared in accordance with the applicable rules of the SEC and do not include all of the information and disclosures required by U.S. GAAP for complete financial statements. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2022 Annual Report on Form 10-K. The results of operations for the first quarter of 2023 are not necessarily indicative of the results to be expected for the full year. |
Accounting Standards
Accounting Standards | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Accounting Standards | Accounting Standards Accounting Standards Updates Adopted No accounting standards were adopted in the first quarter of 2023 that had a material impact on our consolidated financial statements. Accounting Standards Updates Not Yet Adopted There were no issued but pending accounting standards expected to have a material impact on our consolidated financial statements. |
Income and Dividends per Common
Income and Dividends per Common Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Income and Dividends per Common Share | Income and Dividends per Common Share Basic income per share is based on the weighted average number of common shares outstanding. Diluted income per share assumes exercise of stock options in all periods, provided the effect is not antidilutive. The per share calculations below exclude 1 million and 2 million of antidilutive stock options for the three months ended March 31, 2023 and 2022, respectively. Three Months Ended March 31, (In millions, except per share data) 2023 2022 Net income $ 417 $ 1,304 Weighted average common shares outstanding 628 730 Effect of dilutive securities 1 2 Weighted average common shares, diluted 629 732 Net income per share: Basic $ 0.66 $ 1.79 Diluted $ 0.66 $ 1.78 Dividends per share $ 0.10 $ 0.07 |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2023 | |
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 United States and Equatorial Guinea. As of March 31, 2023 and December 31, 2022, receivables from contracts with customers, included in receivables, less reserves for credit losses, were $943 million and $875 million, respectively. The following tables present our revenues from contracts with customers disaggregated by product type and geographic areas for the three months ended March 31: United States Three Months Ended March 31, 2023 (In millions) Eagle Ford Bakken Oklahoma Permian Other U.S. Total Crude oil and condensate $ 495 $ 431 $ 78 $ 170 $ 11 $ 1,185 Natural gas liquids 71 37 39 22 — 169 Natural gas 56 35 36 11 1 139 Other 2 — — — 8 10 Revenues from contracts with customers $ 624 $ 503 $ 153 $ 203 $ 20 $ 1,503 Three Months Ended March 31, 2022 (In millions) Eagle Ford Bakken Oklahoma Permian Other U.S. Total Crude oil and condensate $ 459 $ 652 $ 99 $ 88 $ 43 $ 1,341 Natural gas liquids 44 89 59 15 9 216 Natural gas 33 43 56 12 7 151 Other 2 — — — 4 6 Revenues from contracts with customers $ 538 $ 784 $ 214 $ 115 $ 63 $ 1,714 International (E.G.) Three Months Ended March 31, (In millions) 2023 2022 Crude oil and condensate $ 57 $ 40 Natural gas liquids 1 1 Natural gas 5 5 Other 1 1 Revenues from contracts with customers $ 64 $ 47 |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2023 | |
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 Equatorial Guinea (“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, dry wells, 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. Three Months Ended March 31, 2023 (In millions) U.S. Int’l Not Allocated to Segments Total Revenues from contracts with customers $ 1,503 $ 64 $ — $ 1,567 Net gain on commodity derivatives 13 — 2 (b) 15 Income from equity method investments — 80 — 80 Net gain on disposal of assets — — 5 5 Other income 11 1 1 13 Less costs and expenses: Production 178 23 — 201 Shipping, handling and other operating 159 3 — 162 Exploration 5 — 10 (c) 15 Depreciation, depletion and amortization 505 12 3 520 Taxes other than income 97 — (2) 95 General and administrative 35 3 44 82 Net interest and other — — 82 82 Other net periodic benefit costs — — (3) (3) Income tax provision (benefit) 123 15 (29) 109 Segment income (loss) $ 425 $ 89 $ (97) $ 417 Total assets $ 18,696 $ 1,148 $ 168 $ 20,012 Capital expenditures (a) $ 597 $ 2 $ 2 $ 601 (a) Includes accruals and excludes acquisitions. (b) Unrealized gain on commodity derivative instruments (See Note 12 ). (c) Includes $10 million of dry well expense associated with wells in Permian (See Note 9 ). Three Months Ended March 31, 2022 (In millions) U.S. Int’l Not Allocated to Segments Total Revenues from contracts with customers $ 1,714 $ 47 $ — $ 1,761 Net loss on commodity derivatives (29) — (114) (b) (143) Income from equity method investments — 127 — 127 Other income 4 2 2 8 Less costs and expenses: Production 141 11 — 152 Shipping, handling and other operating 150 9 26 185 Exploration 11 — — 11 Depreciation, depletion and amortization 404 15 4 423 Taxes other than income 99 — 5 104 General and administrative 30 3 40 73 Net interest and other — — 22 (c) 22 Other net periodic benefit costs — — (4) (4) Income tax provision (benefit) 193 23 (733) (d) (517) Segment income $ 661 $ 115 $ 528 $ 1,304 Total assets $ 15,684 $ 1,102 $ 1,195 $ 17,981 Capital expenditures (a) $ 346 $ (1) $ 3 $ 348 (a) Includes accruals. (b) Unrealized loss on commodity derivative instruments (See Note 12 ). (c) Includes a $17 million gain on 2025 interest rate swaps (See Note 12 ). (d) Includes a $685 million benefit related to the partial release of our valuation allowance (See Note 6 ). |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Effective Tax Rate 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 5 . For the three months ended March 31, 2023 and 2022, our effective income tax rates were as follows: Three Months Ended March 31, 2023 2022 Effective income tax rate 21 % (66) % • 2022 — Our effective income tax rate was different from our U.S. statutory tax rate of 21% for the three months ended March 31, 2022, due to the release of the valuation allowance on certain U.S. and state deferred tax assets resulting in a non-cash deferred tax benefit of $685 million. In August 2022, the President signed the Inflation Reduction Act of 2022 (“IRA”) into law. The IRA enacted various income tax provisions, including a 15% corporate book minimum tax. The corporate book minimum tax, which became effective on January 1, 2023, applies to corporations with an average annual adjusted financial statement income that exceeds $1 billion for the preceding three years. Under current law and guidance, we do not anticipate being subject to the corporate book minimum tax in 2023. 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 this guidance is issued, we will continue to evaluate and assess the impact the IRA may have on our current and future period income taxes. We have made an accounting policy election to consider the effects of the corporate book minimum tax on the realizability of our deferred tax assets, carryforwards and tax credits as a period cost when they arise. |
Credit Losses
Credit Losses | 3 Months Ended |
Mar. 31, 2023 | |
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, reasonable and supportable forecasts of future economic conditions and other data as deemed appropriate. Changes in the allowance for credit losses were as follows: (In millions) March 31, 2023 December 31, 2022 Beginning balance as of January 1 $ 10 $ 15 Current period provision 2 (3) Current period write offs — (2) Recoveries of amounts previously reserved (1) — Ending balance $ 11 $ 10 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2023 | |
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 obsolescence or impairment when market conditions indicate. (In millions) March 31, 2023 December 31, 2022 Crude oil and natural gas liquids $ 14 $ 15 Supplies and other items 122 110 Inventories $ 136 $ 125 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment (In millions) March 31, 2023 December 31, 2022 United States $ 17,130 $ 17,034 International 279 288 Corporate 54 55 Net property, plant and equipment $ 17,463 $ 17,377 |
Asset Retirement Obligations
Asset Retirement Obligations | 3 Months Ended |
Mar. 31, 2023 | |
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: March 31, (In millions) 2023 2022 Beginning balance as of January 1 $ 340 $ 316 Incurred liabilities, including acquisitions 1 7 Settled liabilities, including dispositions (9) (3) Accretion expense (included in depreciation, depletion and amortization) 4 4 Revisions of estimates 5 — Ending balance as of March 31, total $ 341 $ 324 Ending balance as of March 31, short-term $ 45 $ 28 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases Lessee Balance sheet information related to right-of-use (“ROU”) assets and lease liabilities was as follows: (In millions) Balance Sheet Location: March 31, 2023 December 31, 2022 ROU assets: Operating leases Other noncurrent assets $ 143 $ 123 Finance leases Other noncurrent assets 22 24 Total ROU assets $ 165 $ 147 Lease liabilities: Current liabilities Operating leases Other current liabilities $ 99 $ 94 Finance leases Other current liabilities 6 6 Noncurrent liabilities Operating leases Deferred credits and other liabilities 46 32 Finance leases Deferred credits and other liabilities 16 18 Total lease liabilities $ 167 $ 150 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. 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. For the three months ended March 31, 2023, we have made cash lease payments totaling approximately $5 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. Lessor Our wholly owned subsidiary, Marathon E.G. Production Limited, is a lessor for residential housing in E.G., which is occupied by EGHoldings, a related party equity method investee – see Note 20 . 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 $ 5 2024 6 2025 6 2026 6 2027 6 Thereafter 42 Total undiscounted cash flows $ 71 |
Leases | Leases Lessee Balance sheet information related to right-of-use (“ROU”) assets and lease liabilities was as follows: (In millions) Balance Sheet Location: March 31, 2023 December 31, 2022 ROU assets: Operating leases Other noncurrent assets $ 143 $ 123 Finance leases Other noncurrent assets 22 24 Total ROU assets $ 165 $ 147 Lease liabilities: Current liabilities Operating leases Other current liabilities $ 99 $ 94 Finance leases Other current liabilities 6 6 Noncurrent liabilities Operating leases Deferred credits and other liabilities 46 32 Finance leases Deferred credits and other liabilities 16 18 Total lease liabilities $ 167 $ 150 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. 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. For the three months ended March 31, 2023, we have made cash lease payments totaling approximately $5 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. Lessor Our wholly owned subsidiary, Marathon E.G. Production Limited, is a lessor for residential housing in E.G., which is occupied by EGHoldings, a related party equity method investee – see Note 20 . 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 $ 5 2024 6 2025 6 2026 6 2027 6 Thereafter 42 Total undiscounted cash flows $ 71 |
Leases | Leases Lessee Balance sheet information related to right-of-use (“ROU”) assets and lease liabilities was as follows: (In millions) Balance Sheet Location: March 31, 2023 December 31, 2022 ROU assets: Operating leases Other noncurrent assets $ 143 $ 123 Finance leases Other noncurrent assets 22 24 Total ROU assets $ 165 $ 147 Lease liabilities: Current liabilities Operating leases Other current liabilities $ 99 $ 94 Finance leases Other current liabilities 6 6 Noncurrent liabilities Operating leases Deferred credits and other liabilities 46 32 Finance leases Deferred credits and other liabilities 16 18 Total lease liabilities $ 167 $ 150 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. 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. For the three months ended March 31, 2023, we have made cash lease payments totaling approximately $5 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. Lessor Our wholly owned subsidiary, Marathon E.G. Production Limited, is a lessor for residential housing in E.G., which is occupied by EGHoldings, a related party equity method investee – see Note 20 . 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 $ 5 2024 6 2025 6 2026 6 2027 6 Thereafter 42 Total undiscounted cash flows $ 71 |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2023 | |
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. For further information regarding the fair value measurement of derivative instruments, see Note 13 . 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. March 31, 2023 (In millions) Asset Liability Net Asset (Liability) Balance Sheet Location Not Designated as Hedges Commodity $ 12 $ — $ 12 Other current assets Total Not Designated as Hedges $ 12 $ — $ 12 Cash Flow Hedges Interest Rate $ 9 $ — $ 9 Other current assets Interest Rate 11 — 11 Other noncurrent assets Total Designated Hedges $ 20 $ — $ 20 Total $ 32 $ — $ 32 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 Derivatives Not Designated as Hedges Commodity Derivatives We have entered into 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 are three-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. These natural gas derivatives were not designated as hedges. The following table sets forth outstanding derivative contracts as of March 31, 2023, and the weighted average prices for those contracts: 2023 Second Quarter Third Quarter Fourth Quarter Natural Gas Henry Hub Three-Way Collars Volume (MMBtu/day) 50,000 50,000 50,000 Weighted average price per MMBtu: Ceiling $ 11.14 $ 11.14 $ 11.14 Floor $ 4.00 $ 4.00 $ 4.00 Sold Put $ 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. Three Months Ended March 31, (In millions) 2023 2022 Unrealized gain (loss) on derivative instruments, net $ 2 $ (114) Realized gain (loss) on derivative instruments, net (a) $ 13 $ (29) (a) During the first quarter of 2023, net cash received for settled derivative positions was $10 million. During the first quarter of 2022, net cash paid for settled derivative positions was $28 million. 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”). In September 2021, we fully redeemed these 2025 Notes. In March 2022, we closed these positions and settled the interest rate swaps for proceeds of $44 million. During the three months ended March 31, 2022, we recorded a cumulative $17 million gain within net interest and other within our consolidated statements of income related to these swaps. Derivatives Designated as Cash Flow Hedges During 2019, we entered into forward starting interest rate swaps with a maturity date of September 9, 2026 to hedge variations in cash flows related to the interest rate component of future lease payments of our Houston office. As of March 31, 2023 and December 31, 2022, the notional amount of open interest rate swaps for the Houston office was $295 million. The weighted average secured overnight financing rate (“SOFR”) for the swaps was 1.43% as of both March 31, 2023 and December 31, 2022. 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. During the three months ended March 31, 2023, net cash received for the settled interest rate swap positions was $2 million. As of March 31, 2023, we expect to reclassify a $9 million gain from accumulated other comprehensive income into our consolidated statements of income over the next twelve months. See Note 11 for further details regarding Houston office lease. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 and December 31, 2022 by hierarchy level. March 31, 2023 (In millions) Level 1 Level 2 Level 3 Total Derivative instruments, assets Commodity (a) $ — $ 12 $ — $ 12 Interest rate - designated as cash flow hedges $ — $ 20 $ — $ 20 Derivative instruments, assets $ — $ 32 $ — $ 32 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 (a) Commodity derivative instruments are recorded on a net basis in our consolidated balance sheet. See Note 12 . As of March 31, 2023, our commodity derivatives include three-way collars. These instruments are measured at fair value using either a Black-Scholes or a modified Black-Scholes Model. For three-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 12 for details on the forward starting interest rate swaps. 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 March 31, 2023 and December 31, 2022. March 31, 2023 December 31, 2022 (In millions) Fair Value Carrying Amount Fair Value Carrying Amount Financial assets Other noncurrent assets 10 28 10 28 Total financial assets $ 10 $ 28 $ 10 $ 28 Financial liabilities Other current liabilities $ 132 $ 197 $ 140 $ 204 Long-term debt, including current portion (a) 5,789 5,878 5,806 5,948 Deferred credits and other liabilities 61 60 73 73 Total financial liabilities $ 5,982 $ 6,135 $ 6,019 $ 6,225 (a) Excludes debt issuance costs. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt 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 in December 2022. Borrowings under the Term Loan Facility can be prepaid without penalty. As of March 31, 2023, we had $1.5 billion in borrowings under our Term Loan Facility and the weighted average interest rate on borrowings under the Term Loan Facility was 6.36%. 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 March 31, 2023, we were in compliance with this covenant with a ratio of 26%. Revolving Credit Facility As of March 31, 2023, we had net borrowings of $450 million against our $2.5 billion unsecured Revolving Credit Facility. The weighted average interest rate on borrowings under the Revolving Credit Facility was 6.20%. The Revolving 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 Revolving Credit Facility and require the immediate repayment of all outstanding borrowings and the cash collateralization of all outstanding letters of credit under the Revolving Credit Facility. As of March 31, 2023, we were in compliance with this covenant with a ratio of 26%. Debt Redemption In March 2023, we redeemed the $70 million 8.5% Senior Notes on the maturity date. Long-term debt At March 31, 2023, we had $5.9 billion of total long-term debt outstanding, which includes $131 million of long-term debt due within one year. Refer to our 2022 Annual Report on Form 10-K for a listing of our long-term debt maturities. Debt Remarketing On April 3, 2023, we closed a $200 million remarketing to investors of sub-series 2017A-1 bonds that are part of the $1 billion St. John the Baptist Parish, State of Louisiana revenue refunding bonds Series 2017. The bonds are subject to an interest rate of 4.05% and a mandatory purchase date of July 1, 2026. At March 31, 2023, these bonds were included in long-term debt on the consolidated balance sheet. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ EquityOur Board of Directors has authorized a share repurchase program. During the first three months of 2023, we repurchased approximately 13 million shares of our common stock pursuant to the share repurchase program at a cost of $334 million. Our remaining share repurchase authorization was approximately $2.1 billion at March 31, 2023. Purchases under the 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 first three months of 2023 we repurchased $30 million 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.Subsequent to the quarter, we repurchased approximately $110 million of shares of our common stock through May 3, 2023. |
Incentive Based Compensation
Incentive Based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Incentive Based Compensation | Incentive Based Compensation Stock options, restricted stock and restricted stock units The following table presents a summary of activity for the first three months of 2023: Stock Options Restricted Stock & Units Number of Shares Weighted Average Exercise Price Number of Shares & Units Weighted Average Grant Date Fair Value Outstanding at December 31, 2022 1,678,524 $ 28.86 4,651,196 $ 14.89 Granted — $ — 1,832,506 $ 25.79 Exercised/Vested (10,417) $ 10.47 (2,597,783) $ 11.99 Canceled (39,110) $ 33.10 (76,806) $ 18.38 Outstanding at March 31, 2023 1,628,997 $ 28.88 3,809,113 $ 22.04 Stock-based performance unit awards During the first three months of 2023, we granted 222,464 stock-based performance units to eligible officers, which are settled in shares. The grant date fair value per unit was $32.97. During the first three months of 2023, we stock settled the units related to the 2020 grant. At March 31, 2023, there were 686,266 outstanding stock-based performance units to be settled in shares to officers. During the first three months of 2023, we also granted 222,464 stock-based performance units to eligible officers, which are settled in cash. At the grant date for these performance units, each unit represents the value of one share of our common stock. The fair value of each cash-settled performance unit was $24.06 as of March 31, 2023. During the first three months of 2023, we also cash settled the units related to the 2021 grant. At March 31, 2023, there were 389,507 units outstanding of the stock-based performance unit awards to be settled in cash to officers. |
Defined Benefit Postretirement
Defined Benefit Postretirement Plans | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Defined Benefit Postretirement Plans | Defined Benefit Postretirement Plans The following summarizes the components of net periodic benefit costs (credits): Three Months Ended March 31, Pension Benefits Other Benefits (In millions) 2023 2022 2023 2022 Service cost $ 3 $ 4 $ — $ — Interest cost 3 2 1 — Expected return on plan assets (2) (2) — — Amortization: – prior service credit (2) (2) (4) (4) – actuarial loss — — — 1 Net settlement loss (a) 1 — — — Net periodic benefit costs (credits) (b) $ 3 $ 2 $ (3) $ (3) (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 cost for that year. (b) Net periodic benefit costs (credits) reflects a calculated market-related value of plan assets which recognizes changes in fair value over three years. |
Reclassifications Out of Accumu
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2023 | |
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): Three Months Ended March 31, (In millions) 2023 2022 Income Statement Line Postretirement and postemployment plans Amortization of prior service credit $ 6 $ 6 Other net periodic benefit credits Amortization of actuarial loss — (1) Other net periodic benefit credits Net settlement loss (1) — Other net periodic benefit credits Income taxes (1) (1) Provision (benefit) for income taxes Total reclassifications of (income) expense, net of tax $ 4 $ 4 Net income |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Three Months Ended March 31, (In millions) 2023 2022 Included in operating activities: Interest paid (a) $ 85 $ 54 Income taxes paid, net of refunds $ 6 $ 12 Noncash investing activities: Increase in asset retirement costs $ 6 $ 7 (a) The increase in the three months ended March 31, 2023 compared to the same period in 2022 was primarily related to interest paid on borrowings under the Term Loan Facility and Revolving Credit Facility. |
Equity Method Investments
Equity Method Investments | 3 Months Ended |
Mar. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investments During the periods ended March 31, 2023 and December 31, 2022 our equity method investees were considered related parties. Our investment in our equity method investees are summarized in the following table: (In millions) Ownership as of March 31, 2023 March 31, 2023 December 31, 2022 EGHoldings (a) 56% $ 333 $ 287 Alba Plant LLC (b) 52% 176 155 AMPCO (c) 45% 148 135 Total $ 657 $ 577 (a) EGHoldings is engaged in LNG production activity. (b) Alba Plant LLC processes LPG. (c) AMPCO is engaged in methanol production activity. Summarized, 100% combined financial information for equity method investees is as follows: Three Months Ended March 31, (In millions) 2023 2022 Income data: Revenues and other income $ 306 $ 374 Income from operations 159 229 Net income $ 134 $ 204 Revenues from related parties were $6 million and $8 million for the three months ended March 31, 2023 and 2022, respectively, with the majority related to EGHoldings in both periods. 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. Our equity investees did not distribute dividends or return of capital during the three months ended March 31, 2023. Dividends and return of capital received by us during the three months ended March 31, 2022 totaled $54 million. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023, we have a $164 million current liability in suspended royalty and working interest revenue, including interest, of which $145 million was included within accounts payable and $19 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 latest 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 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 was reached, and in the first quarter of 2023 such settlement was approved by the court and paid. We have received Notice 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 projects 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. The Company received NOV’s from the EPA relating to alleged Clean Air Act violations following flyovers conducted in 2020 and 2022 over certain of the Company’s oil and gas facilities in New Mexico. The notices involve 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 these matters, 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 March 31, 2023, 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 cost that might be incurred or the penalties that may be imposed. In the second quarter of 2019, Marathon E.G. Production Limited (“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. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | These consolidated financial statements are unaudited; however, in the opinion of management, these statements reflect all adjustments necessary for a fair statement of the results for the periods reported. All such adjustments are of a normal recurring nature unless disclosed otherwise. These consolidated financial statements, including notes, have been prepared in accordance with the applicable rules of the SEC and do not include all of the information and disclosures required by U.S. GAAP for complete financial statements. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2022 Annual Report on Form 10-K. The results of operations for the first quarter of 2023 are not necessarily indicative of the results to be expected for the full year. |
Accounting Standards Updates Adopted and Not Yet Adopted | Accounting Standards Updates Adopted No accounting standards were adopted in the first quarter of 2023 that had a material impact on our consolidated financial statements. Accounting Standards Updates Not Yet Adopted There were no issued but pending accounting standards expected to have a material impact on our consolidated financial statements. |
Income and Dividends per Comm_2
Income and Dividends per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Income (Loss) Per Share, Basic and Diluted | The per share calculations below exclude 1 million and 2 million of antidilutive stock options for the three months ended March 31, 2023 and 2022, respectively. Three Months Ended March 31, (In millions, except per share data) 2023 2022 Net income $ 417 $ 1,304 Weighted average common shares outstanding 628 730 Effect of dilutive securities 1 2 Weighted average common shares, diluted 629 732 Net income per share: Basic $ 0.66 $ 1.79 Diluted $ 0.66 $ 1.78 Dividends per share $ 0.10 $ 0.07 |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 for the three months ended March 31: United States Three Months Ended March 31, 2023 (In millions) Eagle Ford Bakken Oklahoma Permian Other U.S. Total Crude oil and condensate $ 495 $ 431 $ 78 $ 170 $ 11 $ 1,185 Natural gas liquids 71 37 39 22 — 169 Natural gas 56 35 36 11 1 139 Other 2 — — — 8 10 Revenues from contracts with customers $ 624 $ 503 $ 153 $ 203 $ 20 $ 1,503 Three Months Ended March 31, 2022 (In millions) Eagle Ford Bakken Oklahoma Permian Other U.S. Total Crude oil and condensate $ 459 $ 652 $ 99 $ 88 $ 43 $ 1,341 Natural gas liquids 44 89 59 15 9 216 Natural gas 33 43 56 12 7 151 Other 2 — — — 4 6 Revenues from contracts with customers $ 538 $ 784 $ 214 $ 115 $ 63 $ 1,714 International (E.G.) Three Months Ended March 31, (In millions) 2023 2022 Crude oil and condensate $ 57 $ 40 Natural gas liquids 1 1 Natural gas 5 5 Other 1 1 Revenues from contracts with customers $ 64 $ 47 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Three Months Ended March 31, 2023 (In millions) U.S. Int’l Not Allocated to Segments Total Revenues from contracts with customers $ 1,503 $ 64 $ — $ 1,567 Net gain on commodity derivatives 13 — 2 (b) 15 Income from equity method investments — 80 — 80 Net gain on disposal of assets — — 5 5 Other income 11 1 1 13 Less costs and expenses: Production 178 23 — 201 Shipping, handling and other operating 159 3 — 162 Exploration 5 — 10 (c) 15 Depreciation, depletion and amortization 505 12 3 520 Taxes other than income 97 — (2) 95 General and administrative 35 3 44 82 Net interest and other — — 82 82 Other net periodic benefit costs — — (3) (3) Income tax provision (benefit) 123 15 (29) 109 Segment income (loss) $ 425 $ 89 $ (97) $ 417 Total assets $ 18,696 $ 1,148 $ 168 $ 20,012 Capital expenditures (a) $ 597 $ 2 $ 2 $ 601 (a) Includes accruals and excludes acquisitions. (b) Unrealized gain on commodity derivative instruments (See Note 12 ). (c) Includes $10 million of dry well expense associated with wells in Permian (See Note 9 ). Three Months Ended March 31, 2022 (In millions) U.S. Int’l Not Allocated to Segments Total Revenues from contracts with customers $ 1,714 $ 47 $ — $ 1,761 Net loss on commodity derivatives (29) — (114) (b) (143) Income from equity method investments — 127 — 127 Other income 4 2 2 8 Less costs and expenses: Production 141 11 — 152 Shipping, handling and other operating 150 9 26 185 Exploration 11 — — 11 Depreciation, depletion and amortization 404 15 4 423 Taxes other than income 99 — 5 104 General and administrative 30 3 40 73 Net interest and other — — 22 (c) 22 Other net periodic benefit costs — — (4) (4) Income tax provision (benefit) 193 23 (733) (d) (517) Segment income $ 661 $ 115 $ 528 $ 1,304 Total assets $ 15,684 $ 1,102 $ 1,195 $ 17,981 Capital expenditures (a) $ 346 $ (1) $ 3 $ 348 (a) Includes accruals. (b) Unrealized loss on commodity derivative instruments (See Note 12 ). (c) Includes a $17 million gain on 2025 interest rate swaps (See Note 12 ). (d) Includes a $685 million benefit related to the partial release of our valuation allowance (See Note 6 ). |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | For the three months ended March 31, 2023 and 2022, our effective income tax rates were as follows: Three Months Ended March 31, 2023 2022 Effective income tax rate 21 % (66) % |
Credit Losses (Tables)
Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Credit Loss [Abstract] | |
Schedule of Allowance for Doubtful Accounts Balance | Changes in the allowance for credit losses were as follows: (In millions) March 31, 2023 December 31, 2022 Beginning balance as of January 1 $ 10 $ 15 Current period provision 2 (3) Current period write offs — (2) Recoveries of amounts previously reserved (1) — Ending balance $ 11 $ 10 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | (In millions) March 31, 2023 December 31, 2022 Crude oil and natural gas liquids $ 14 $ 15 Supplies and other items 122 110 Inventories $ 136 $ 125 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | (In millions) March 31, 2023 December 31, 2022 United States $ 17,130 $ 17,034 International 279 288 Corporate 54 55 Net property, plant and equipment $ 17,463 $ 17,377 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Changes in 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: March 31, (In millions) 2023 2022 Beginning balance as of January 1 $ 340 $ 316 Incurred liabilities, including acquisitions 1 7 Settled liabilities, including dispositions (9) (3) Accretion expense (included in depreciation, depletion and amortization) 4 4 Revisions of estimates 5 — Ending balance as of March 31, total $ 341 $ 324 Ending balance as of March 31, short-term $ 45 $ 28 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information | Balance sheet information related to right-of-use (“ROU”) assets and lease liabilities was as follows: (In millions) Balance Sheet Location: March 31, 2023 December 31, 2022 ROU assets: Operating leases Other noncurrent assets $ 143 $ 123 Finance leases Other noncurrent assets 22 24 Total ROU assets $ 165 $ 147 Lease liabilities: Current liabilities Operating leases Other current liabilities $ 99 $ 94 Finance leases Other current liabilities 6 6 Noncurrent liabilities Operating leases Deferred credits and other liabilities 46 32 Finance leases Deferred credits and other liabilities 16 18 Total lease liabilities $ 167 $ 150 |
Schedule of 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 $ 5 2024 6 2025 6 2026 6 2027 6 Thereafter 42 Total undiscounted cash flows $ 71 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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. March 31, 2023 (In millions) Asset Liability Net Asset (Liability) Balance Sheet Location Not Designated as Hedges Commodity $ 12 $ — $ 12 Other current assets Total Not Designated as Hedges $ 12 $ — $ 12 Cash Flow Hedges Interest Rate $ 9 $ — $ 9 Other current assets Interest Rate 11 — 11 Other noncurrent assets Total Designated Hedges $ 20 $ — $ 20 Total $ 32 $ — $ 32 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 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. Three Months Ended March 31, (In millions) 2023 2022 Unrealized gain (loss) on derivative instruments, net $ 2 $ (114) Realized gain (loss) on derivative instruments, net (a) $ 13 $ (29) (a) During the first quarter of 2023, net cash received for settled derivative positions was $10 million. During the first quarter of 2022, net cash paid for settled derivative positions was $28 million. |
Schedule of Notional Amounts of Outstanding Derivative Positions | The following table sets forth outstanding derivative contracts as of March 31, 2023, and the weighted average prices for those contracts: 2023 Second Quarter Third Quarter Fourth Quarter Natural Gas Henry Hub Three-Way Collars Volume (MMBtu/day) 50,000 50,000 50,000 Weighted average price per MMBtu: Ceiling $ 11.14 $ 11.14 $ 11.14 Floor $ 4.00 $ 4.00 $ 4.00 Sold Put $ 2.50 $ 2.50 $ 2.50 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 and December 31, 2022 by hierarchy level. March 31, 2023 (In millions) Level 1 Level 2 Level 3 Total Derivative instruments, assets Commodity (a) $ — $ 12 $ — $ 12 Interest rate - designated as cash flow hedges $ — $ 20 $ — $ 20 Derivative instruments, assets $ — $ 32 $ — $ 32 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 (a) Commodity derivative instruments are recorded on a net basis in our consolidated balance sheet. See Note 12 |
Schedule of 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 March 31, 2023 and December 31, 2022. March 31, 2023 December 31, 2022 (In millions) Fair Value Carrying Amount Fair Value Carrying Amount Financial assets Other noncurrent assets 10 28 10 28 Total financial assets $ 10 $ 28 $ 10 $ 28 Financial liabilities Other current liabilities $ 132 $ 197 $ 140 $ 204 Long-term debt, including current portion (a) 5,789 5,878 5,806 5,948 Deferred credits and other liabilities 61 60 73 73 Total financial liabilities $ 5,982 $ 6,135 $ 6,019 $ 6,225 (a) Excludes debt issuance costs. |
Incentive Based Compensation (T
Incentive Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Options, Restricted Stock Awards and Restricted Stock Units Activity | The following table presents a summary of activity for the first three months of 2023: Stock Options Restricted Stock & Units Number of Shares Weighted Average Exercise Price Number of Shares & Units Weighted Average Grant Date Fair Value Outstanding at December 31, 2022 1,678,524 $ 28.86 4,651,196 $ 14.89 Granted — $ — 1,832,506 $ 25.79 Exercised/Vested (10,417) $ 10.47 (2,597,783) $ 11.99 Canceled (39,110) $ 33.10 (76,806) $ 18.38 Outstanding at March 31, 2023 1,628,997 $ 28.88 3,809,113 $ 22.04 |
Defined Benefit Postretiremen_2
Defined Benefit Postretirement Plans (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Benefit Costs (Credits) | The following summarizes the components of net periodic benefit costs (credits): Three Months Ended March 31, Pension Benefits Other Benefits (In millions) 2023 2022 2023 2022 Service cost $ 3 $ 4 $ — $ — Interest cost 3 2 1 — Expected return on plan assets (2) (2) — — Amortization: – prior service credit (2) (2) (4) (4) – actuarial loss — — — 1 Net settlement loss (a) 1 — — — Net periodic benefit costs (credits) (b) $ 3 $ 2 $ (3) $ (3) (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 cost for that year. (b) Net periodic benefit costs (credits) reflects a calculated market-related value of plan assets which recognizes changes in fair value over three years. |
Reclassifications Out of Accu_2
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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): Three Months Ended March 31, (In millions) 2023 2022 Income Statement Line Postretirement and postemployment plans Amortization of prior service credit $ 6 $ 6 Other net periodic benefit credits Amortization of actuarial loss — (1) Other net periodic benefit credits Net settlement loss (1) — Other net periodic benefit credits Income taxes (1) (1) Provision (benefit) for income taxes Total reclassifications of (income) expense, net of tax $ 4 $ 4 Net income |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flow Information | Three Months Ended March 31, (In millions) 2023 2022 Included in operating activities: Interest paid (a) $ 85 $ 54 Income taxes paid, net of refunds $ 6 $ 12 Noncash investing activities: Increase in asset retirement costs $ 6 $ 7 (a) The increase in the three months ended March 31, 2023 compared to the same period in 2022 was primarily related to interest paid on borrowings under the Term Loan Facility and Revolving Credit Facility. |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | During the periods ended March 31, 2023 and December 31, 2022 our equity method investees were considered related parties. Our investment in our equity method investees are summarized in the following table: (In millions) Ownership as of March 31, 2023 March 31, 2023 December 31, 2022 EGHoldings (a) 56% $ 333 $ 287 Alba Plant LLC (b) 52% 176 155 AMPCO (c) 45% 148 135 Total $ 657 $ 577 (a) EGHoldings is engaged in LNG production activity. (b) Alba Plant LLC processes LPG. (c) AMPCO is engaged in methanol production activity. Summarized, 100% combined financial information for equity method investees is as follows: Three Months Ended March 31, (In millions) 2023 2022 Income data: Revenues and other income $ 306 $ 374 Income from operations 159 229 Net income $ 134 $ 204 |
Income and Dividends per Comm_3
Income and Dividends per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1 | 2 |
Net income | $ 417 | $ 1,304 |
Weighted average common shares outstanding (in shares) | 628 | 730 |
Effect of dilutive securities (in shares) | 1 | 2 |
Weighted average common shares, diluted (in shares) | 629 | 732 |
Net income per share: | ||
Basic (in dollars per share) | $ 0.66 | $ 1.79 |
Diluted (in dollars per share) | 0.66 | 1.78 |
Dividends per share (in dollars per share) | $ 0.10 | $ 0.07 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Receivables from contract with customer | $ 943 | $ 875 |
Revenues - Revenues from Contra
Revenues - Revenues from Contracts with Customers by Product Type and Geographic Areas (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | $ 1,567 | $ 1,761 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 1,503 | 1,714 |
United States | Eagle Ford | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 624 | 538 |
United States | Bakken | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 503 | 784 |
United States | Oklahoma | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 153 | 214 |
United States | Permian | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 203 | 115 |
United States | Other U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 20 | 63 |
United States | Crude oil and condensate | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 1,185 | 1,341 |
United States | Crude oil and condensate | Eagle Ford | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 495 | 459 |
United States | Crude oil and condensate | Bakken | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 431 | 652 |
United States | Crude oil and condensate | Oklahoma | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 78 | 99 |
United States | Crude oil and condensate | Permian | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 170 | 88 |
United States | Crude oil and condensate | Other U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 11 | 43 |
United States | Natural gas liquids | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 169 | 216 |
United States | Natural gas liquids | Eagle Ford | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 71 | 44 |
United States | Natural gas liquids | Bakken | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 37 | 89 |
United States | Natural gas liquids | Oklahoma | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 39 | 59 |
United States | Natural gas liquids | Permian | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 22 | 15 |
United States | Natural gas liquids | Other U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 9 |
United States | Natural gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 139 | 151 |
United States | Natural gas | Eagle Ford | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 56 | 33 |
United States | Natural gas | Bakken | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 35 | 43 |
United States | Natural gas | Oklahoma | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 36 | 56 |
United States | Natural gas | Permian | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 11 | 12 |
United States | Natural gas | Other U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 1 | 7 |
United States | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 10 | 6 |
United States | Other | Eagle Ford | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 2 | 2 |
United States | Other | Bakken | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
United States | Other | Oklahoma | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
United States | Other | Permian | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
United States | Other | Other U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 8 | 4 |
International | International, Equatorial Guinea (E.G.) | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 64 | 47 |
International | Crude oil and condensate | International, Equatorial Guinea (E.G.) | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 57 | 40 |
International | Natural gas liquids | International, Equatorial Guinea (E.G.) | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 1 | 1 |
International | Natural gas | International, Equatorial Guinea (E.G.) | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 5 | 5 |
International | Other | International, Equatorial Guinea (E.G.) | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | $ 1 | $ 1 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 USD ($) segment | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Segment Reporting [Abstract] | |||
Number of reportable segments | segment | 2 | ||
Number of operating segments | segment | 2 | ||
Segment Reporting Information [Line Items] | |||
Revenues from contracts with customers | $ 1,567 | $ 1,761 | |
Net gain (loss) on commodity derivatives | 15 | (143) | |
Income from equity method investments | 80 | 127 | |
Net gain on disposal of assets | 5 | 0 | |
Other income | 13 | 8 | |
Less costs and expenses: | |||
Production | 201 | 152 | |
Shipping, handling and other operating | 162 | 185 | |
Exploration | 15 | 11 | |
Depreciation, depletion and amortization | 520 | 423 | |
Taxes other than income | 95 | 104 | |
General and administrative | 82 | 73 | |
Net interest and other | 82 | 22 | |
Other net periodic benefit costs | (3) | (4) | |
Income tax provision (benefit) | 109 | (517) | |
Net income | 417 | 1,304 | |
Total assets | 20,012 | 17,981 | $ 19,940 |
Capital expenditures | 601 | 348 | |
Valuation allowance released | 685 | ||
Permian Basin | |||
Less costs and expenses: | |||
Dry well cost | $ 10 | ||
Interest Rate Contract, Maturing June 1, 2025 | Cash Flow Hedges | |||
Less costs and expenses: | |||
Gain on interest rate swap | 17 | ||
Not Allocated to Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | |
Net gain (loss) on commodity derivatives | 2 | (114) | |
Income from equity method investments | 0 | 0 | |
Net gain on disposal of assets | 5 | ||
Other income | 1 | 2 | |
Less costs and expenses: | |||
Production | 0 | 0 | |
Shipping, handling and other operating | 0 | 26 | |
Exploration | 10 | 0 | |
Depreciation, depletion and amortization | 3 | 4 | |
Taxes other than income | (2) | 5 | |
General and administrative | 44 | 40 | |
Net interest and other | 82 | 22 | |
Other net periodic benefit costs | (3) | (4) | |
Income tax provision (benefit) | (29) | (733) | |
Net income | (97) | 528 | |
Total assets | 168 | 1,195 | |
Capital expenditures | 2 | 3 | |
U.S. | |||
Segment Reporting Information [Line Items] | |||
Revenues from contracts with customers | 1,503 | 1,714 | |
U.S. | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues from contracts with customers | 1,503 | 1,714 | |
Net gain (loss) on commodity derivatives | 13 | (29) | |
Income from equity method investments | 0 | 0 | |
Net gain on disposal of assets | 0 | ||
Other income | 11 | 4 | |
Less costs and expenses: | |||
Production | 178 | 141 | |
Shipping, handling and other operating | 159 | 150 | |
Exploration | 5 | 11 | |
Depreciation, depletion and amortization | 505 | 404 | |
Taxes other than income | 97 | 99 | |
General and administrative | 35 | 30 | |
Net interest and other | 0 | 0 | |
Other net periodic benefit costs | 0 | 0 | |
Income tax provision (benefit) | 123 | 193 | |
Net income | 425 | 661 | |
Total assets | 18,696 | 15,684 | |
Capital expenditures | 597 | 346 | |
Int’l | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues from contracts with customers | 64 | 47 | |
Net gain (loss) on commodity derivatives | 0 | 0 | |
Income from equity method investments | 80 | 127 | |
Net gain on disposal of assets | 0 | ||
Other income | 1 | 2 | |
Less costs and expenses: | |||
Production | 23 | 11 | |
Shipping, handling and other operating | 3 | 9 | |
Exploration | 0 | 0 | |
Depreciation, depletion and amortization | 12 | 15 | |
Taxes other than income | 0 | 0 | |
General and administrative | 3 | 3 | |
Net interest and other | 0 | 0 | |
Other net periodic benefit costs | 0 | 0 | |
Income tax provision (benefit) | 15 | 23 | |
Net income | 89 | 115 | |
Total assets | 1,148 | 1,102 | |
Capital expenditures | $ 2 | $ (1) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 21% | (66.00%) |
Valuation allowance released | $ 685 |
Credit Losses (Details)
Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance as of January 1 | $ 10 | $ 15 |
Current period provision | 2 | (3) |
Current period write offs | 0 | (2) |
Recoveries of amounts previously reserved | (1) | 0 |
Ending balance | $ 11 | $ 10 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Crude oil and natural gas liquids | $ 14 | $ 15 |
Supplies and other items | 122 | 110 |
Inventories | $ 136 | $ 125 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Mar. 31, 2023 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | $ 17,377 | $ 17,463 |
Exploratory well costs capitalized greater than one year after completion of drilling | 20 | 10 |
Permian Basin | ||
Property, Plant and Equipment [Line Items] | ||
Dry well cost | 10 | |
Operating Segments | United States | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | 17,034 | 17,130 |
Operating Segments | International | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | 288 | 279 |
Corporate | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | $ 55 | $ 54 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Beginning balance as of January 1 | $ 340 | $ 316 |
Incurred liabilities, including acquisitions | 1 | 7 |
Settled liabilities, including dispositions | (9) | (3) |
Accretion expense (included in depreciation, depletion and amortization) | 4 | 4 |
Revisions of estimates | 5 | 0 |
Ending balance as of March 31, total | 341 | 324 |
Ending balance as of March 31, short-term | $ 45 | $ 28 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
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 | $ 143 | $ 123 |
Finance leases | 22 | 24 |
Total ROU assets | 165 | 147 |
Current liabilities: | ||
Operating leases | 99 | 94 |
Finance leases | 6 | 6 |
Noncurrent liabilities | ||
Operating leases | 46 | 32 |
Finance leases | 16 | 18 |
Total lease liabilities | $ 167 | $ 150 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Leases [Abstract] | |
Term of contract | 5 years |
Cash lease payments | $ 5 |
Finance lease extension term | 5 years |
Residual value guarantee | 100% |
Annual payments to be received | $ 6 |
Leases - Lease Payments to be R
Leases - Lease Payments to be Received (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Leases [Abstract] | |
2023 | $ 5 |
2024 | 6 |
2025 | 6 |
2026 | 6 |
2027 | 6 |
Thereafter | 42 |
Total undiscounted cash flows | $ 71 |
Derivatives - Balance Sheet Com
Derivatives - Balance Sheet Components (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Asset | $ 32 | $ 34 |
Liability | 0 | 0 |
Net Asset (Liability) | 32 | 34 |
Not Designated as Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Asset | 12 | 10 |
Liability | 0 | 0 |
Net Asset (Liability) | 12 | 10 |
Cash Flow Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Asset | 20 | 24 |
Liability | 0 | 0 |
Net Asset (Liability) | 20 | 24 |
Commodity | Other current assets | Not Designated as Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Asset | 12 | 10 |
Liability | 0 | 0 |
Net Asset (Liability) | 12 | 10 |
Interest Rate | Other current assets | Cash Flow Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Asset | 9 | 9 |
Liability | 0 | 0 |
Net Asset (Liability) | 9 | 9 |
Interest Rate | Other noncurrent assets | Cash Flow Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Asset | 11 | 15 |
Liability | 0 | 0 |
Net Asset (Liability) | $ 11 | $ 15 |
Derivatives - Outstanding Deriv
Derivatives - Outstanding Derivative Contracts (Details) - Not Designated as Hedges | Mar. 31, 2023 MMBbls / d $ / bbl |
Three-Way Collars - Natural Gas 2023, Second Quarter | |
Derivative [Line Items] | |
Volume (MMBtu/day) | MMBbls / d | 50,000 |
Weighted average price per MMBtu, ceiling | 11.14 |
Weighted average price per MMBtu, floor | 4 |
Weighted average price per MMBtu:, sold put | 2.50 |
Three-Way Collars - Natural Gas 2023, Third Quarter | |
Derivative [Line Items] | |
Volume (MMBtu/day) | MMBbls / d | 50,000 |
Weighted average price per MMBtu, ceiling | 11.14 |
Weighted average price per MMBtu, floor | 4 |
Weighted average price per MMBtu:, sold put | 2.50 |
Three-Way Collars - Natural Gas 2023, Fourth Quarter | |
Derivative [Line Items] | |
Volume (MMBtu/day) | MMBbls / d | 50,000 |
Weighted average price per MMBtu, ceiling | 11.14 |
Weighted average price per MMBtu, floor | 4 |
Weighted average price per MMBtu:, sold put | 2.50 |
Derivatives - Schedule of Mark-
Derivatives - Schedule of Mark-to-market Impact and Commodity Derivative Settlements (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net settlements of derivative instruments | $ 10 | $ 28 |
Commodity | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized gain (loss) on derivative instruments, net | 2 | (114) |
Realized gain (loss) on derivative instruments, net | $ 13 | $ (29) |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Long-term debt | $ 5,900,000,000 | ||||
Net settlements of derivative instruments | 10,000,000 | $ 28,000,000 | |||
Senior Unsecured Notes, 3.850%, Due 2025 | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Long-term debt | $ 900,000,000 | ||||
Interest rate | 3.85% | ||||
Interest Rate Contract, Maturing June 1, 2025 | Cash Flow Hedges | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Proceeds from hedge settlement | $ 44,000,000 | ||||
Gain on interest rate swap | $ 17,000,000 | ||||
Interest Rate Contract, Maturing September 9, 2026 | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Proceeds from hedge settlement | 2,000,000 | ||||
Amount expected to be reclassified within 12 months | 9,000,000 | ||||
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 | ||||
Weighted average interest rate, SOFR | 1.43% | 1.43% |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Recurring (Details) - Recurring - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | $ 32 | $ 34 |
Commodity | Not Designated as Hedges | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 12 | 10 |
Interest Rate | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 20 | 24 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 0 | 0 |
Level 1 | Commodity | Not Designated as Hedges | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 0 | 0 |
Level 1 | Interest Rate | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 32 | 34 |
Level 2 | Commodity | Not Designated as Hedges | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 12 | 10 |
Level 2 | Interest Rate | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 20 | 24 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 0 | 0 |
Level 3 | Commodity | Not Designated as Hedges | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 0 | 0 |
Level 3 | Interest Rate | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | $ 0 | $ 0 |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value | ||
Financial assets | ||
Other noncurrent assets | $ 10 | $ 10 |
Total financial assets | 10 | 10 |
Financial liabilities | ||
Other current liabilities | 132 | 140 |
Long-term debt, including current portion | 5,789 | 5,806 |
Deferred credits and other liabilities | 61 | 73 |
Total financial liabilities | 5,982 | 6,019 |
Carrying Amount | ||
Financial assets | ||
Other noncurrent assets | 28 | 28 |
Total financial assets | 28 | 28 |
Financial liabilities | ||
Other current liabilities | 197 | 204 |
Long-term debt, including current portion | 5,878 | 5,948 |
Deferred credits and other liabilities | 60 | 73 |
Total financial liabilities | $ 6,135 | $ 6,225 |
Debt - Term Loan Facility (Deta
Debt - Term Loan Facility (Details) - Term Loan Facility - Line of Credit - USD ($) $ in Billions | 1 Months Ended | |
Nov. 30, 2022 | Mar. 31, 2023 | |
Debt Instrument [Line Items] | ||
Debt term | 2 years | |
Maximum borrowing capacity | $ 1.5 | |
Line of credit | $ 1.5 | |
Effective interest rate | 6.36% | |
Covenant, ratio of indebtedness to net capital, maximum | 0.65 | |
Ratio of indebtedness to net capital | 0.26 |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facility (Details) - Revolving Credit Facility | Mar. 31, 2023 USD ($) |
Line of Credit Facility [Line Items] | |
Line of credit, outstanding amount | $ 450,000,000 |
Maximum borrowing capacity | $ 2,500,000,000 |
Weighted average interest rate | 6.20% |
Covenant, ratio of indebtedness to net capital, maximum | 0.65 |
Ratio of indebtedness to net capital | 0.26 |
Debt - Debt Redemption (Details
Debt - Debt Redemption (Details) - Senior Unsecured Notes 8.5% Due2023 - Unsecured Debt $ in Millions | Mar. 31, 2023 USD ($) |
Debt Instrument [Line Items] | |
Long-term debt, gross | $ 70 |
Interest rate | 8.50% |
Debt - Long-Term Debt (Details)
Debt - Long-Term Debt (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
Long-term debt | $ 5,900 | |
Long-term debt due within one year | $ 131 | $ 402 |
Debt - Debt Remarketing (Detail
Debt - Debt Remarketing (Details) - St. John the Baptist Parish, State of Louisiana Revenue Bonds - USD ($) $ in Millions | Apr. 03, 2023 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Revenue refunding bond | $ 1,000 | |
Subsequent Event | ||
Debt Instrument [Line Items] | ||
Borrowings | $ 200 | |
Interest rate | 4.05% |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | |
May 03, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | |
Equity, Class of Treasury Stock [Line Items] | |||
Payments for repurchase of common stock | $ 334 | $ 592 | |
Purchases of shares for tax withholding obligations | 30 | 21 | |
Shares repurchased, value | $ 334 | $ 592 | |
Share Repurchase Program | |||
Equity, Class of Treasury Stock [Line Items] | |||
Shares repurchased (in shares) | 13 | ||
Payments for repurchase of common stock | $ 334 | ||
Stock repurchase program, remaining authorized repurchase amount | $ 2,100 | ||
Share Repurchase Program | Subsequent Event | |||
Equity, Class of Treasury Stock [Line Items] | |||
Shares repurchased, value | $ 110 |
Incentive Based Compensation -
Incentive Based Compensation - Stock Options, Restricted Stock Awards and Restricted Stock Units (Details) | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Number of Shares | |
Outstanding, beginning (in shares) | shares | 1,678,524 |
Granted (in shares) | shares | 0 |
Exercised/Vested (in shares) | shares | (10,417) |
Canceled (in shares) | shares | (39,110) |
Outstanding, ending (in shares) | shares | 1,628,997 |
Weighted Average Exercise Price | |
Outstanding, beginning (in dollars per share) | $ / shares | $ 28.86 |
Granted (in dollars per share) | $ / shares | 0 |
Exercised/Vested (in dollars per share) | $ / shares | 10.47 |
Canceled (in dollars per share) | $ / shares | 33.10 |
Outstanding, ending (in dollars per share) | $ / shares | $ 28.88 |
Restricted Stock & Units | |
Number of Shares & Units | |
Outstanding, beginning (in shares) | shares | 4,651,196 |
Granted (in shares) | shares | 1,832,506 |
Exercised/Vested (in shares) | shares | (2,597,783) |
Canceled (in shares) | shares | (76,806) |
Outstanding, ending (in shares) | shares | 3,809,113 |
Weighted Average Grant Date Fair Value | |
Outstanding, beginning (in dollars per share) | $ / shares | $ 14.89 |
Granted (in dollars per share) | $ / shares | 25.79 |
Exercised/Vested (in dollars per share) | $ / shares | 11.99 |
Canceled (in dollars per share) | $ / shares | 18.38 |
Outstanding, ending (in dollars per share) | $ / shares | $ 22.04 |
Incentive Based Compensation _2
Incentive Based Compensation - Narrative (Details) | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Performance Unit - Share Settlement | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 222,464 |
Grant date fair value (in dollars per share) | $ / shares | $ 32.97 |
Outstanding units (in shares) | 686,266 |
Performance Unit - Cash Settlement | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 222,464 |
Outstanding units (in shares) | 389,507 |
Unit conversion ratio (in shares) | 1 |
Fair value as of period end (in dollars per share) | $ / shares | $ 24.06 |
Defined Benefit Postretiremen_3
Defined Benefit Postretirement Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Amortization: | ||
Net settlement loss | $ (3) | $ (4) |
Estimated future contributions over the remainder of the current year | 10 | |
Funded Plan | ||
Amortization: | ||
Payment for pension benefits | 2 | |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 3 | 4 |
Interest cost | 3 | 2 |
Expected return on plan assets | (2) | (2) |
Amortization: | ||
– prior service credit | (2) | (2) |
– actuarial loss | 0 | 0 |
Net settlement loss | 1 | 0 |
Net periodic benefit costs (credits) | 3 | 2 |
Other Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0 | 0 |
Interest cost | 1 | 0 |
Expected return on plan assets | 0 | 0 |
Amortization: | ||
– prior service credit | (4) | (4) |
– actuarial loss | 0 | 1 |
Net settlement loss | 0 | 0 |
Net periodic benefit costs (credits) | (3) | $ (3) |
Unfunded Portion of Pension Plan | ||
Amortization: | ||
Payment for pension and other postretirement benefits | 3 | |
Unfunded Portion of Other Postretirement Benefits Plan | ||
Amortization: | ||
Payment for pension and other postretirement benefits | $ 2 |
Reclassifications Out of Accu_3
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other net periodic benefit credits | $ 3 | $ 4 |
Provision (benefit) for income taxes | 109 | (517) |
Net income | 417 | 1,304 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Total reclassifications of (income) expense, net of tax | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net income | 4 | 4 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Amortization of prior service credit | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other net periodic benefit credits | 6 | 6 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Amortization of actuarial loss | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other net periodic benefit credits | 0 | (1) |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Net settlement loss | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other net periodic benefit credits | (1) | 0 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Income taxes | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Provision (benefit) for income taxes | $ (1) | $ (1) |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Included in operating activities: | ||
Interest paid | $ 85 | $ 54 |
Income taxes paid, net of refunds | 6 | 12 |
Noncash investing activities: | ||
Increase in asset retirement costs | 6 | 7 |
Capital expenditures incurred but not yet paid | $ 180 | $ 96 |
Equity Method Investments - Sch
Equity Method Investments - Schedule of Equity Method Investments (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | $ 657 | $ 577 |
EG Holdings | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 56% | |
Equity method investments | $ 333 | 287 |
Alba Plant LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 52% | |
Equity method investments | $ 176 | 155 |
AMPCO | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 45% | |
Equity method investments | $ 148 | $ 135 |
Equity Method Investments - Sum
Equity Method Investments - Summarized Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Schedule of Equity Method Investments [Line Items] | ||
Revenues and other income | $ 1,680 | $ 1,753 |
Income from operations | 605 | 805 |
Net income | 417 | 1,304 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||
Schedule of Equity Method Investments [Line Items] | ||
Revenues and other income | 306 | 374 |
Income from operations | 159 | 229 |
Net income | $ 134 | $ 204 |
Equity Method Investments - Nar
Equity Method Investments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Revenue from related parties | $ 6 | $ 8 | |
Proceeds from equity method investment | $ 54 | ||
Due from related parties | 20 | $ 36 | |
Due to related parties | $ 18 | $ 20 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 guarantee | Mar. 31, 2023 USD ($) tribe | |
Loss Contingencies [Line Items] | ||
Number of affiliated tribes | tribe | 3 | |
Contingent royalty liability | $ 164,000 | |
Contingent capital and expense receivable, noncurrent | 26,000 | |
Expected penalty or fine (in excess of) | 300 | |
Number of guarantees executed | guarantee | 2 | |
Guarantees recorded | 4,000 | |
Performance of Equatorial Guinea LNG Operations, S.A. | ||
Loss Contingencies [Line Items] | ||
Guarantor obligations, maximum exposure | 91,000 | |
Performance of Alba Plant LLC. | ||
Loss Contingencies [Line Items] | ||
Guarantor obligations, maximum exposure | 25,000 | |
Accounts payable | ||
Loss Contingencies [Line Items] | ||
Contingent royalty liability | 145,000 | |
Other current liabilities | ||
Loss Contingencies [Line Items] | ||
Contingent royalty liability | $ 19,000 |