Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 29, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
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 $1.00 | |
Trading Symbol | MRO | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 677,583,502 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
Amendment Flag | false | |
Entity Central Index Key | 0000101778 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues and other income: | ||||
Revenues from contracts with customers | $ 2,168 | $ 1,254 | $ 3,929 | $ 2,431 |
Net gain (loss) on commodity derivatives | (27) | (166) | (170) | (319) |
Income from equity method investments | 152 | 49 | 279 | 93 |
Net gain (loss) on disposal of assets | (1) | 1 | (1) | 1 |
Other income | 11 | 5 | 19 | 8 |
Total revenues and other income | 2,303 | 1,143 | 4,056 | 2,214 |
Costs and expenses: | ||||
Production | 164 | 126 | 316 | 247 |
Shipping, handling and other operating | 191 | 167 | 376 | 319 |
Exploration | 8 | 25 | 19 | 46 |
Depreciation, depletion and amortization | 436 | 532 | 859 | 1,028 |
Impairments | 2 | 46 | 2 | 47 |
Taxes other than income | 140 | 74 | 244 | 148 |
General and administrative | 68 | 68 | 141 | 157 |
Total costs and expenses | 1,009 | 1,038 | 1,957 | 1,992 |
Income from operations | 1,294 | 105 | 2,099 | 222 |
Net interest and other | (54) | (59) | (76) | (72) |
Other net periodic benefit (costs) credits | 5 | (1) | 9 | 2 |
Loss on early extinguishment of debt | 0 | (19) | 0 | (19) |
Income before income taxes | 1,245 | 26 | 2,032 | 133 |
Provision (benefit) for income taxes | 279 | 10 | (238) | 20 |
Net income | $ 966 | $ 16 | $ 2,270 | $ 113 |
Net income per share: | ||||
Basic (in dollars per share) | $ 1.37 | $ 0.02 | $ 3.17 | $ 0.14 |
Diluted (in dollars per share) | $ 1.37 | $ 0.02 | $ 3.16 | $ 0.14 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 703 | 789 | 717 | 790 |
Diluted (in shares) | 705 | 789 | 719 | 791 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 966 | $ 16 | $ 2,270 | $ 113 |
Other comprehensive income (loss), net of tax | ||||
Change in actuarial gain (loss) and other for postretirement and postemployment plans | 1 | 16 | (3) | 13 |
Change in derivative hedges unrecognized gain (loss) | 4 | (21) | 16 | 19 |
Reclassification of de-designated forward interest rate swaps | 0 | (30) | 0 | (28) |
Other | (1) | 0 | (1) | 0 |
Other comprehensive income (loss) | 4 | (35) | 12 | 4 |
Comprehensive income (loss) | $ 970 | $ (19) | $ 2,282 | $ 117 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 1,162 | $ 580 |
Receivables, net | 1,512 | 1,142 |
Inventories | 93 | 77 |
Other current assets | 41 | 22 |
Total current assets | 2,808 | 1,821 |
Equity method investments | 528 | 450 |
Property, plant and equipment, net of accumulated depreciation, depletion and amortization of $23,116 and $22,412 | 14,357 | 14,499 |
Deferred tax assets | 325 | 0 |
Other noncurrent assets | 268 | 224 |
Total assets | 18,286 | 16,994 |
Current liabilities: | ||
Accounts payable | 1,523 | 1,110 |
Payroll and benefits payable | 50 | 74 |
Accrued taxes | 143 | 157 |
Other current liabilities | 388 | 260 |
Long-term debt due within one year | 273 | 36 |
Total current liabilities | 2,377 | 1,637 |
Long-term debt | 3,709 | 3,978 |
Deferred tax liabilities | 146 | 136 |
Defined benefit postretirement plan obligations | 124 | 137 |
Asset retirement obligations | 278 | 288 |
Deferred credits and other liabilities | 120 | 132 |
Total liabilities | 6,754 | 6,308 |
Commitments and contingencies | ||
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 June 30, 2022 and December 31, 2021) | 937 | 937 |
Held in treasury, at cost – 248 million shares and 194 million shares | (6,118) | (4,825) |
Additional paid-in capital | 7,186 | 7,221 |
Retained earnings | 9,433 | 7,271 |
Accumulated other comprehensive income | 94 | 82 |
Total stockholders’ equity | 11,532 | 10,686 |
Total liabilities and stockholders’ equity | $ 18,286 | $ 16,994 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Property, plant and equipment, accumulated depreciation | $ 23,116 | $ 22,412 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 26,000,000 | 26,000,000 |
Common stock, shares issued (in shares) | 937,000,000 | 937,000,000 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 1,925,000,000 | 1,925,000,000 |
Held in treasury, shares (in shares) | 248,000,000 | 194,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Operating activities: | ||
Net income | $ 2,270 | $ 113 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 859 | 1,028 |
Impairments | 2 | 47 |
Exploratory dry well costs and unproved property impairments | 14 | 39 |
Net (gain) loss on disposal of assets | 1 | (1) |
Loss on early extinguishment of debt | 0 | 19 |
Deferred income taxes | (319) | (7) |
Unrealized loss on derivative instruments, net | 71 | 157 |
Pension and other post retirement benefits, net | (16) | (14) |
Stock-based compensation | 18 | 17 |
Equity method investments, net | (85) | (17) |
Changes in: | ||
Current receivables | (376) | (253) |
Inventories | (16) | (2) |
Current accounts payable and accrued liabilities | 278 | 121 |
Other current assets and liabilities | (7) | 73 |
All other operating, net | 51 | (43) |
Net cash provided by operating activities | 2,745 | 1,277 |
Investing activities: | ||
Additions to property, plant and equipment | (687) | (483) |
Acquisitions, net of cash acquired | 2 | 0 |
Disposal of assets, net of cash transferred to the buyer | 4 | 15 |
Equity method investments - return of capital | 7 | 6 |
All other investing, net | 0 | (1) |
Net cash used in investing activities | (674) | (463) |
Financing activities: | ||
Debt repayment | (32) | (500) |
Debt extinguishment costs | 0 | (19) |
Shares repurchased under buyback programs | (1,352) | 0 |
Dividends paid | (108) | (55) |
Purchases of shares for tax withholding obligations | (21) | (9) |
All other financing, net | 24 | (3) |
Net cash used in financing activities | (1,489) | (586) |
Net increase in cash and cash equivalents | 582 | 228 |
Cash and cash equivalents at beginning of period | 580 | 742 |
Cash and cash equivalents at end of period | $ 1,162 | $ 970 |
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 (Loss) |
Beginning balance at Dec. 31, 2020 | $ 10,561 | $ 0 | $ 937 | $ (4,089) | $ 7,174 | $ 6,466 | $ 73 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock-based compensation | (3) | (24) | 21 | ||||
Net income (loss) | 97 | 97 | |||||
Other comprehensive income (loss) | 39 | 39 | |||||
Dividends paid | (23) | (23) | |||||
Ending balance at Mar. 31, 2021 | 10,671 | 0 | 937 | (4,113) | 7,195 | 6,540 | 112 |
Beginning balance at Dec. 31, 2020 | 10,561 | 0 | 937 | (4,089) | 7,174 | 6,466 | 73 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 113 | ||||||
Other comprehensive income (loss) | 4 | ||||||
Ending balance at Jun. 30, 2021 | 10,634 | 0 | 937 | (4,105) | 7,201 | 6,524 | 77 |
Beginning balance at Mar. 31, 2021 | 10,671 | 0 | 937 | (4,113) | 7,195 | 6,540 | 112 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock-based compensation | 14 | 8 | 6 | ||||
Net income (loss) | 16 | 16 | |||||
Other comprehensive income (loss) | (35) | (35) | |||||
Dividends paid | (32) | (32) | |||||
Ending balance at Jun. 30, 2021 | 10,634 | 0 | 937 | (4,105) | 7,201 | 6,524 | 77 |
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 (loss) | 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, 2021 | 10,686 | 0 | 937 | (4,825) | 7,221 | 7,271 | 82 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 2,270 | ||||||
Other comprehensive income (loss) | 12 | ||||||
Ending balance at Jun. 30, 2022 | 11,532 | 0 | 937 | (6,118) | 7,186 | 9,433 | 94 |
Beginning balance at Mar. 31, 2022 | 11,366 | 0 | 937 | (5,362) | 7,178 | 8,523 | 90 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Shares repurchased under buyback programs | (760) | (760) | |||||
Stock-based compensation | 12 | 4 | 8 | ||||
Net income (loss) | 966 | 966 | |||||
Other comprehensive income (loss) | 4 | 4 | |||||
Dividends paid | (56) | (56) | |||||
Ending balance at Jun. 30, 2022 | $ 11,532 | $ 0 | $ 937 | $ (6,118) | $ 7,186 | $ 9,433 | $ 94 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Dividends paid (in dollars per share) | $ 0.08 | $ 0.07 | $ 0.04 | $ 0.03 | $ 0.15 | $ 0.07 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2022 | |
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 2021 Annual Report on Form 10-K. The results of operations for the second quarter and first six months of 2022 are not necessarily indicative of the results to be expected for the full year. |
Accounting Standards
Accounting Standards | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Accounting Standards | Accounting StandardsNo accounting standards were adopted in the second quarter or first six months of 2022 that had a material impact on our consolidated financial statements. |
Income and Dividends per Common
Income and Dividends per Common Share | 6 Months Ended |
Jun. 30, 2022 | |
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 2 million of stock options for the three and six months ended June 30, 2022 and 4 million and 5 million of stock options for the three and six months ended June 30, 2021, respectively, that were antidilutive. Three Months Ended June 30, Six Months Ended June 30, (In millions, except per share data) 2022 2021 2022 2021 Net income $ 966 $ 16 $ 2,270 $ 113 Weighted average common shares outstanding 703 789 717 790 Effect of dilutive securities 2 — 2 1 Weighted average common shares, diluted 705 789 719 791 Net income per share: Basic $ 1.37 $ 0.02 $ 3.17 $ 0.14 Diluted $ 1.37 $ 0.02 $ 3.16 $ 0.14 Dividends per share $ 0.08 $ 0.04 $ 0.15 $ 0.07 |
Revenues
Revenues | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues The majority of our revenues are derived from the sale of crude oil and condensate, NGLs and natural gas under spot and term agreements with our customers in the United States and Equatorial Guinea. As of June 30, 2022 and December 31, 2021, receivables from contracts with customers, included in receivables, net were $1.3 billion and $961 million, respectively. The following tables present our revenues from contracts with customers disaggregated by product type and geographic areas for the three and six months ended June 30: United States Three Months Ended June 30, 2022 (In millions) Eagle Ford Bakken Oklahoma Northern Delaware Other U.S. Total Crude oil and condensate $ 544 $ 749 $ 138 $ 100 $ 42 $ 1,573 Natural gas liquids 55 92 69 15 8 239 Natural gas 56 46 95 21 10 228 Other 1 — — — 48 49 Revenues from contracts with customers $ 656 $ 887 $ 302 $ 136 $ 108 $ 2,089 Three Months Ended June 30, 2021 (In millions) Eagle Ford Bakken Oklahoma Northern Delaware Other U.S. Total Crude oil and condensate $ 353 $ 411 $ 71 $ 77 $ 24 $ 936 Natural gas liquids 33 48 37 11 2 131 Natural gas 29 17 41 5 (1) 91 Other 2 — — — 29 31 Revenues from contracts with customers $ 417 $ 476 $ 149 $ 93 $ 54 $ 1,189 Six Months Ended June 30, 2022 (In millions) Eagle Ford Bakken Oklahoma Northern Delaware Other U.S. Total Crude oil and condensate $ 1,003 $ 1,401 $ 237 $ 188 $ 85 $ 2,914 Natural gas liquids 99 181 128 30 17 455 Natural gas 89 89 151 33 17 379 Other 3 — — — 52 55 Revenues from contracts with customers $ 1,194 $ 1,671 $ 516 $ 251 $ 171 $ 3,803 Six Months Ended June 30, 2021 (In millions) Eagle Ford Bakken Oklahoma Northern Delaware Other U.S. Total Crude oil and condensate $ 612 $ 783 $ 132 $ 154 $ 46 $ 1,727 Natural gas liquids 59 89 74 20 5 247 Natural gas 76 42 150 30 8 306 Other 4 — — — 37 41 Revenues from contracts with customers $ 751 $ 914 $ 356 $ 204 $ 96 $ 2,321 International (E.G.) Three Months Ended June 30, Six Months Ended June 30, (In millions) 2022 2021 2022 2021 Crude oil and condensate $ 71 $ 58 $ 111 $ 95 Natural gas liquids — 1 1 2 Natural gas 7 5 12 12 Other 1 1 2 1 Revenues from contracts with customers $ 79 $ 65 $ 126 $ 110 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We have two reportable operating segments. Both of these segments are organized and managed based upon geographic location and the nature of the products and services offered. • United States (“U.S.”) – explores for, produces and markets crude oil and condensate, NGLs and natural gas in the United States • International (“Int’l”) – 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, goodwill and equity method investments, changes in our valuation allowance, unrealized gains or losses on commodity and interest rate derivative instruments, effects of pension settlements and curtailments or other items (as determined by the chief operating decision maker (“CODM”)) are not allocated to operating segments. Three Months Ended June 30, 2022 (In millions) U.S. Int’l Not Allocated to Segments Total Revenues from contracts with customers $ 2,089 $ 79 $ — $ 2,168 Net gain (loss) on commodity derivatives (70) — 43 (b) (27) Income from equity method investments — 152 — 152 Net loss on disposal of assets — — (1) (1) Other income 2 2 7 11 Less costs and expenses: Production 150 14 — 164 Shipping, handling and other operating 187 1 3 191 Exploration 8 — — 8 Depreciation, depletion and amortization 415 16 5 436 Impairments — — 2 2 Taxes other than income 139 — 1 140 General and administrative 27 3 38 68 Net interest and other — — 54 54 Other net periodic benefit costs — — (5) (5) Income tax provision (benefit) 249 39 (9) 279 Segment income (loss) $ 846 $ 160 $ (40) $ 966 Total assets $ 15,757 $ 1,059 $ 1,470 $ 18,286 Capital expenditures (a) $ 372 $ 1 $ 2 $ 375 (a) Includes accruals. (b) Unrealized gain on commodity derivative instruments (See Note 13 ). Three Months Ended June 30, 2021 (In millions) U.S. Int’l Not Allocated to Segments Total Revenues from contracts with customers $ 1,189 $ 65 $ — $ 1,254 Net gain (loss) on commodity derivatives (91) — (75) (b) (166) Income (loss) from equity method investments — 49 — 49 Net gain on disposal of assets — — 1 1 Other income 3 2 — 5 Less costs and expenses: Production 113 13 — 126 Shipping, handling and other operating 153 2 12 167 Exploration 18 — 7 25 Depreciation, depletion and amortization 506 18 8 532 Impairments — — 46 (c) 46 Taxes other than income 76 — (2) 74 General and administrative 27 4 37 68 Net interest and other — — 59 (d) 59 Other net periodic benefit costs — — 1 1 Loss on early extinguishment of debt — — 19 (e) 19 Income tax provision (benefit) 1 11 (2) 10 Segment income (loss) $ 207 $ 68 $ (259) $ 16 Total assets $ 15,747 $ 1,047 $ 1,006 $ 17,800 Capital expenditures (a) $ 284 $ 2 $ 3 $ 289 (a) Includes accruals. (b) Unrealized loss on commodity derivative instruments (See Note 13 ). (c) Includes impairments of $24 million associated with central facilities in Eagle Ford (See Note 10 ) and $22 million associated with decommissioning costs for non-producing long-lived assets in the Gulf of Mexico (‘GOM’) (See Note 10 , Note 11 and Note 22 ). (d) Includes a $22 million loss on 2022 interest rate swaps and a $31 million gain on 2025 interest rate swaps, neither of which were designated as cash flow hedges as of June 30, 2021 (See Note 13 ). (e) Represents costs related to a make-whole provision premium and the write off of unamortized discount and issuance costs related to the redemption of the 2022 Notes in April 2021. Six Months Ended June 30, 2022 (In millions) U.S. Int’l Not Allocated to Segments Total Revenues from contracts with customers $ 3,803 $ 126 $ — $ 3,929 Net loss on commodity derivatives (99) — (71) (b) (170) Income from equity method investments — 279 — 279 Net loss on disposal of assets — — (1) (1) Other income 6 4 9 19 Less costs and expenses: Production 291 25 — 316 Shipping, handling and other operating 337 10 29 376 Exploration 19 — — 19 Depreciation, depletion and amortization 819 31 9 859 Impairments — — 2 2 Taxes other than income 238 — 6 244 General and administrative 57 6 78 141 Net interest and other — — 76 (c) 76 Other net periodic benefit credit — — (9) (9) Income tax provision (benefit) 442 62 (742) (d) (238) Segment income $ 1,507 $ 275 $ 488 $ 2,270 Total assets $ 15,757 $ 1,059 $ 1,470 $ 18,286 Capital expenditures (a) $ 718 $ — $ 5 $ 723 (a) Includes accruals. (b) Unrealized loss on commodity derivative instruments (See Note 14 ). (c) Includes a $17 million gain on 2025 interest rate swaps (See Note 13 ). (d) Includes a $685 million benefit related to the partial release of our valuation allowance (See Note 6 ). Six Months Ended June 30, 2021 (In millions) U.S. Int’l Not Allocated to Segments Total Revenue from contracts with customers $ 2,321 $ 110 $ — $ 2,431 Net gain on commodity derivatives (162) — (157) (b) (319) Loss from equity method investments — 93 — 93 Net gain on disposal of assets — — 1 1 Other income 4 3 1 8 Less costs and expenses: Production 224 23 — 247 Shipping, handling and other operating 297 6 16 319 Exploration 39 — 7 46 Depreciation, depletion and amortization 978 37 13 1,028 Impairments — — 47 (c) 47 Taxes other than income 150 — (2) 148 General and administrative 50 6 101 (d) 157 Net interest and other — — 72 (e) 72 Other net periodic benefit credit — — (2) (2) Loss on early extinguishment of debt — — 19 (f) 19 Income tax provision (benefit) 6 16 (2) 20 Segment income (loss) $ 419 $ 118 $ (424) $ 113 Total assets $ 15,747 $ 1,047 $ 1,006 $ 17,800 Capital expenditures (a) $ 467 $ 2 $ 4 $ 473 (a) Includes accruals. (b) Unrealized loss on commodity derivative instruments (See Note 14 ). (c) Includes second quarter 2021 impairments of $24 million associated with central facilities in Eagle Ford (See Note 10 ) and $22 million associated with decommissioning costs for non-producing long-lived assets in GOM (See Note 10 , Note 11 and Note 22 ). (d) Includes $13 million associated with the termination of an aircraft lease agreement and $12 million arising from severance expenses associated with a workforce reduction. (e) Includes a $19 million gain on 2022 interest rate swaps and a $31 million gain on 2025 interest rate swaps, neither of which were designated as cash flow hedges as of June 30, 2021 (See Note 13 ). (f) Represents costs related to a make-whole provision premium and the write off of unamortized discount and issuance costs related to the redemption of the 2022 Notes in April 2021. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
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 and six months ended June 30, 2022 and 2021, our effective income tax rates were as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Effective income tax rate 22 % 38 % (12) % 15 % • 2022 — Our effective income tax rate was different from our U.S. statutory tax rate of 21% for the six months ended June 30, 2022, due to the first quarter 2022 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. As we previously disclosed in our 2021 Form 10-K, we maintained a full valuation allowance on our net federal deferred tax assets and would continue to do so until there exists sufficient positive evidence to support a reversal of the allowance. In the first quarter, as a result of significant increases in commodity prices, corresponding increases in projections of our future taxable income, and the absence of objective negative evidence such as a cumulative loss in recent years, we determined we have sufficient positive evidence to release a majority of the federal valuation allowance. We retained a partial valuation allowance on certain U.S. deferred tax assets primarily as a result of volatility in commodity prices impacting assessed likelihood of future realizability. • 2021 — Our effective income tax rate was different from our U.S. statutory tax rate of 21% for the three and six months ended June 30, 2021, as a result of the valuation allowance on net federal deferred tax assets in the U.S. which was in place at the time. In addition, the income mix of our U.S. and E.G. operations, including the income mix within E.G. between equity method investees and subsidiaries, contributed to the difference. |
Credit Losses
Credit Losses | 6 Months Ended |
Jun. 30, 2022 | |
Credit Loss [Abstract] | |
Credit Losses | Credit Losses The majority of our receivables are from purchasers of commodities or joint interest owners in properties we operate, both of which are recorded at estimated or invoiced amounts and do not bear interest. The majority of these receivables have payment terms of 30 days or less. At the end of each reporting period, we assess the collectability of our receivables and estimate the expected credit losses using historical data, current market conditions, reasonable and supportable forecasts of future economic conditions and other data as deemed appropriate. Changes in the allowance for doubtful accounts balance were as follows: (In millions) June 30, 2022 December 31, 2021 Beginning balance as of January 1 $ 15 $ 22 Current period provision (2) 3 Current period write offs — (5) Recoveries of amounts previously reserved — (5) Ending balance $ 13 $ 15 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Crude oil and natural gas are recorded at weighted average cost and carried at the lower of cost or net realizable value. Supplies and other items consist principally of tubular goods and equipment which are valued at weighted average cost and reviewed periodically for obsolescence or impairment when market conditions indicate. (In millions) June 30, 2022 December 31, 2021 Crude oil and natural gas $ 15 $ 8 Supplies and other items 78 69 Inventories $ 93 $ 77 |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment (In millions) June 30, 2022 December 31, 2021 United States $ 13,989 $ 14,097 International 315 347 Corporate 53 55 Net property, plant and equipment $ 14,357 $ 14,499 As of June 30, 2022 and December 31, 2021, we had $34 million and $80 million , respectively, of e |
Impairments
Impairments | 6 Months Ended |
Jun. 30, 2022 | |
Impairment Expense [Abstract] | |
Impairments | Impairments The following table summarizes impairment charges of proved properties and their corresponding fair values. Three Months Ended June 30, 2022 2021 (In millions) Fair Value Impairment Fair Value Impairment Long-lived assets held for use $ — $ — $ — $ 24 Asset retirement costs of long-lived assets $ — $ 2 $ — $ 22 Six Months Ended June 30, 2022 2021 (In millions) Fair Value Impairment Fair Value Impairment Long-lived assets held for use $ — $ — $ — $ 25 Asset retirement costs of long-lived assets $ — $ 2 $ — $ 22 • 2021 — During the second quarter of 2021, we recorded an impairment expense of $24 million associated with two central facilities located in Eagle Ford. Decommissioning activities commenced during the quarter, which included the re-routing of existing wells. We also recognized an incremental $22 million of impairment expense associated with an increase in the estimated future decommissioning costs of certain non-producing wells, pipelines and production facilities for previously divested offshore assets located in the Gulf of Mexico. In a prior reporting period, we recorded a $7 million liability in our consolidated balance sheet associated with these assets, thereby increasing the total recognized asset retirement obligation to $29 million as of June 30, 2021. See Note 11 and Note 22 for further information. The combined effects of these items were recorded within the Impairments line item within our consolidated statements of income. |
Asset Retirement Obligations
Asset Retirement Obligations | 6 Months Ended |
Jun. 30, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Asset Retirement Obligations Asset retirement obligations primarily consist of estimated costs to remove, dismantle and restore land or seabed at the end of oil and gas production operations. Changes in asset retirement obligations were as follows: June 30, (In millions) 2022 2021 Beginning balance as of January 1 $ 316 $ 254 Incurred liabilities, including acquisitions 8 6 Settled liabilities, including dispositions (3) (2) Accretion expense (included in depreciation, depletion and amortization) 7 6 Revisions of estimates (5) 32 Ending balance as of June 30, total $ 323 $ 296 Ending balance as of June 30, short-term $ 46 $ 24 • 2021 — In the second quarter of 2021, we had a revision of estimate of $29 million related to anticipated costs for decommissioning certain wells, pipelines and production facilities for previously divested offshore non-producing long-lived assets located in the Gulf of Mexico. As of June 30, 2021, $14 million of this revision of estimate was classified as short-term. See Note 22 for further information. During the quarter, we recognized $22 million of impairment expense associated with these non-producing long-lived assets within our consolidated statements of income. See Note 10 for further information. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2022 | |
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: June 30, 2022 December 31, 2021 ROU assets: Operating leases Other noncurrent assets $ 119 $ 59 Finance leases Other noncurrent assets 26 28 Total ROU assets $ 145 $ 87 Lease liabilities: Current liabilities Operating leases Other current liabilities $ 78 $ 40 Finance leases Other current liabilities 6 6 Noncurrent liabilities Operating leases Deferred credits and other liabilities 45 23 Finance leases Deferred credits and other liabilities 20 24 Total lease liabilities $ 149 $ 93 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 six months ended June 30, 2022, our cash lease payments were approximately $2 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 21 . 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 2022 $ 3 2023 6 2024 6 2025 6 2026 6 Thereafter 48 Total undiscounted cash flows $ 75 |
Leases | Leases Lessee Balance sheet information related to right-of-use (“ROU”) assets and lease liabilities was as follows: (In millions) Balance Sheet Location: June 30, 2022 December 31, 2021 ROU assets: Operating leases Other noncurrent assets $ 119 $ 59 Finance leases Other noncurrent assets 26 28 Total ROU assets $ 145 $ 87 Lease liabilities: Current liabilities Operating leases Other current liabilities $ 78 $ 40 Finance leases Other current liabilities 6 6 Noncurrent liabilities Operating leases Deferred credits and other liabilities 45 23 Finance leases Deferred credits and other liabilities 20 24 Total lease liabilities $ 149 $ 93 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 six months ended June 30, 2022, our cash lease payments were approximately $2 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 21 . 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 2022 $ 3 2023 6 2024 6 2025 6 2026 6 Thereafter 48 Total undiscounted cash flows $ 75 |
Leases | Leases Lessee Balance sheet information related to right-of-use (“ROU”) assets and lease liabilities was as follows: (In millions) Balance Sheet Location: June 30, 2022 December 31, 2021 ROU assets: Operating leases Other noncurrent assets $ 119 $ 59 Finance leases Other noncurrent assets 26 28 Total ROU assets $ 145 $ 87 Lease liabilities: Current liabilities Operating leases Other current liabilities $ 78 $ 40 Finance leases Other current liabilities 6 6 Noncurrent liabilities Operating leases Deferred credits and other liabilities 45 23 Finance leases Deferred credits and other liabilities 20 24 Total lease liabilities $ 149 $ 93 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 six months ended June 30, 2022, our cash lease payments were approximately $2 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 21 . 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 2022 $ 3 2023 6 2024 6 2025 6 2026 6 Thereafter 48 Total undiscounted cash flows $ 75 |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives For further information regarding the fair value measurement of derivative instruments, see Note 14 . All of our commodity 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 derivative instruments and the reported net amounts along with where they appear on the consolidated balance sheets. June 30, 2022 (In millions) Asset Liability Net Asset (Liability) Balance Sheet Location Not Designated as Hedges Commodity $ 2 $ 2 $ — Other current assets Commodity 4 83 (79) Other current liabilities Total Not Designated as Hedges $ 6 $ 85 $ (79) Cash Flow Hedges Interest Rate $ 4 $ — $ 4 Other current assets Interest Rate 12 — 12 Other noncurrent assets Total Designated Hedges $ 16 $ — $ 16 Total $ 22 $ 85 $ (63) December 31, 2021 (In millions) Asset Liability Net Asset (Liability) Balance Sheet Location Not Designated as Hedges Commodity 1 8 (7) Other current liabilities Interest Rate 27 — 27 Other noncurrent assets Total Not Designated as Hedges $ 28 $ 8 $ 20 Cash Flow Hedges Interest Rate $ — $ 3 $ (3) Other current liabilities Interest Rate — 2 (2) Deferred credits and other liabilities Total Designated Hedges $ — $ 5 $ (5) Total $ 28 $ 13 $ 15 Derivatives Not Designated as Hedges Commodity Derivatives We have entered into multiple crude oil and natural gas derivatives indexed to the respective indices as noted in the table below, related to a portion of our forecasted U.S. sales through 2023. These derivatives consist of three-way collars, two-way collars and NYMEX roll basis swaps. 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 NYMEX WTI price plus the difference between the floor and the sold put price. The following table sets forth outstanding derivative contracts as of June 30, 2022, and the weighted average prices for those contracts: 2022 2023 Third Quarter Fourth Quarter First Quarter Crude Oil NYMEX WTI Three-Way Collars Volume (Bbls/day) 30,000 30,000 Weighted average price per Bbl: Ceiling $ 97.52 $ 97.52 Floor $ 56.67 $ 56.67 Sold put $ 46.67 $ 46.67 NYMEX Roll Basis Swaps Volume (Bbls/day) 60,000 60,000 Weighted average price per Bbl $ 0.67 $ 0.67 Natural Gas Henry Hub (“HH”) Two-Way Collars Volume (MMBtu/day) 50,000 50,000 Weighted average price per MMBtu: Ceiling $ 19.28 $ 19.28 Floor $ 5.00 $ 5.00 Henry Hub Three-Way Collars Volume (MMBtu/day) 100,000 100,000 Weighted average price per MMBtu: Ceiling $ 7.13 $ 7.13 Floor $ 3.88 $ 3.88 Sold Put $ 2.88 $ 2.88 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 June 30, Six Months Ended June 30, (In millions) 2022 2021 2022 2021 Unrealized gain (loss) on derivative instruments, net $ 43 $ (75) $ (71) $ (157) Realized gain (loss) on derivative instruments, net (a) $ (70) $ (91) $ (99) $ (162) (a) During the second quarter and first six months of 2022, net cash paid for settled derivative positions was $61 million and $89 million, respectively. During the second quarter and first six months of 2021, net cash paid for settled derivative positions was $84 million and $95 million, respectively. 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 the $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 six months ended June 30, 2022, we recorded a cumulative $17 million gain within net interest for these swaps. During the second quarter of 2021, we de-designated $25 million of the $320 million Houston office cash flow hedges (discussed further in the Derivatives Designated as Cash Flow Hedges section below), as the construction cost budget estimate was reduced. These interest rate swap contracts began to settle in January 2022. On June 10, 2022, we closed the $25 million de-designated hedges, which resulted in cash proceeds of approximately $2 million. As of June 30, 2022, the remaining open interest rate swaps for the Houston office (with a notional amount of $295 million) are still classified as cash flow hedges. The following table presents, by maturity date, information about our de-designated forward starting interest rate swap agreements. These positions were fully liquidated as of June 30, 2022. June 30, 2022 December 31, 2021 Maturity Date Aggregate Notional Amount (in millions) Weighted Average, LIBOR Aggregate Notional Amount (in millions) Weighted Average, LIBOR June 1, 2025 $ — — % $ 350 0.95 % September 9, 2026 $ — — % $ 25 1.45 % Derivatives Designated as Cash Flow Hedges During 2019, we entered into forward starting interest rate swaps with a total notional amount of $320 million to hedge variations in cash flows related to the 1-month LIBOR component of future lease payments of our future Houston office. During the second quarter of 2021, we de-designated $25 million of these hedges as the construction cost budget estimate associated with the project was reduced (see discussion in preceding section). The notional amount of open interest rate swaps for the Houston office is $295 million. The Houston office lease commenced in September 2021, however our first cash lease payment for February 2022 rent was paid in March. The first settlement date for the interest rate swaps was in January 2022. The last swap will mature in September 2026. During the second quarter and first six months of 2022, net cash paid for the settled interest rate swap positions was $1 million and $2 million, respectively. As of June 30, 2022, we expect to reclassify $5 million from accumulated other comprehensive income into the income statement over the next twelve months. See Note 12 for further details regarding the lease of the Houston office. The following table presents, by maturity date, information about our interest rate swap agreements, including the fixed weighted average LIBOR. June 30, 2022 December 31, 2021 Maturity Date Aggregate Notional Amount (in millions) Weighted Average, LIBOR Aggregate Notional Amount (in millions) Weighted Average, LIBOR September 9, 2026 $ 295 1.52 % $ 295 1.52 % |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair Values – Recurring The following tables present assets and liabilities accounted for at fair value on a recurring basis as of June 30, 2022 and December 31, 2021 by hierarchy level. June 30, 2022 (In millions) Level 1 Level 2 Level 3 Total Derivative instruments, assets Interest rate - designated as cash flow hedges — 16 — 16 Derivative instruments, assets $ — $ 16 $ — $ 16 Derivative instruments, liabilities Commodity (a) $ (23) $ (56) $ — $ (79) Derivative instruments, liabilities $ (23) $ (56) $ — $ (79) Total $ (23) $ (40) $ — $ (63) December 31, 2021 (In millions) Level 1 Level 2 Level 3 Total Derivative instruments, assets Interest rate - not designated as cash flow hedges $ — $ 27 $ — $ 27 Derivative instruments, assets $ — $ 27 $ — $ 27 Derivative instruments, liabilities Commodity (a) $ (2) $ (5) $ — $ (7) Interest rate - designated as cash flow hedges — (5) — (5) Derivative instruments, liabilities $ (2) $ (10) $ — $ (12) Total $ (2) $ 17 $ — $ 15 (a) Commodity derivative instruments are recorded on a net basis in our consolidated balance sheet. See Note 13 . Commodity derivatives include three-way collars, two-way collars and NYMEX roll basis swaps. These instruments are measured at fair value using either a Black-Scholes or a modified Black-Scholes Model. For commodity swaps, inputs to the models include only commodity prices and interest rates and are categorized as Level 1 because all assumptions and inputs are observable in active markets throughout the term of the instruments. 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 13 for detail on the forward starting interest rate swaps. Fair Values – Nonrecurring See Note 10 for detail on our fair values related to impairments. Fair Values – Financial Instruments Our current assets and liabilities include financial instruments, the most significant of which are receivables, the current portion of our long-term debt and payables. We believe the carrying values of our receivables and payables approximate fair value. Our fair value assessment incorporates a variety of considerations, including (1) the short-term duration of the instruments, (2) our credit rating and (3) our historical incurrence of and expected future insignificant bad debt expense, which includes an evaluation of counterparty credit risk. The following table summarizes financial instruments, excluding receivables, payables and derivative financial instruments, and their reported fair values by individual balance sheet line item at June 30, 2022 and December 31, 2021. June 30, 2022 December 31, 2021 (In millions) Fair Value Carrying Amount Fair Value Carrying Amount Financial assets Current assets $ — $ — $ 11 $ 10 Other noncurrent assets 10 28 12 27 Total financial assets $ 10 $ 28 $ 23 $ 37 Financial liabilities Current liabilities $ 110 $ 166 $ 99 $ 136 Long-term debt, including current portion (a) 3,996 4,000 4,705 4,033 Deferred credits and other liabilities 16 15 46 46 Total financial liabilities $ 4,122 $ 4,181 $ 4,850 $ 4,215 (a) Excludes debt issuance costs. Fair values of our financial assets included in other noncurrent assets, and of our financial liabilities included in other current liabilities and deferred credits and other liabilities, are measured using an income approach and most inputs are internally generated, which results in a Level 3 classification. Estimated future cash flows are discounted using a rate deemed appropriate to obtain the fair value. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Revolving Credit Facility As of June 30, 2022, we had no borrowings against our $3.1 billion unsecured revolving credit facility (“Credit Facility”). On July 28, 2022, we executed the seventh amendment to our Credit Facility. The primary changes to the Credit Facility effected by this amendment were to (i) extend the maturity date of the Credit Facility by three years to July 28, 2027, (ii) decrease the size of the Credit Facility from $3.1 billion to $2.5 billion, (iii) replace the LIBOR interest rate benchmark with the secured overnight financing rate (“SOFR”) and (iv) implement certain revisions to the Pricing Schedule. The Credit Facility includes a covenant requiring our total debt to total capitalization ratio not to exceed 65% as of the last day of each fiscal quarter. In the event of a default, the lenders holding more than half of the commitments may terminate the commitments under the Credit Facility and require the immediate repayment of all outstanding borrowings and the cash collateralization of all outstanding letters of credit under the Credit Facility. As of June 30, 2022, we were in compliance with this covenant with a ratio of 19%. Debt Redemption In May 2022, we redeemed the $32 million 9.375% Senior Notes on the maturity date. Long-term debt At June 30, 2022, we had $4.0 billion of total long-term debt outstanding, which includes $273 million of long-term debt due within one year. Included in long-term debt due within one year is $200 million in 2.0% Bonds which feature a mandatory purchase on April 1, 2023. We currently intend to retire our outstanding long-term debt as it matures. Refer to our 2021 Annual Report on Form 10-K for a listing of our long-term debt maturities. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity During the first six months of 2022, we repurchased approximately $1.4 billion of shares of our common stock pursuant to the share repurchase program. On May 4, 2022, our Board of Directors increased our remaining share repurchase program to $2.5 billion. The total remaining share repurchase authorization was approximately $2.0 billion at June 30, 2022. 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 six months of 2022 we repurchased $21 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 $282 million of shares of our common stock through August 3, 2022. |
Incentive Based Compensation
Incentive Based Compensation | 6 Months Ended |
Jun. 30, 2022 | |
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 six months of 2022: 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, 2021 4,274,304 $ 22.13 5,888,242 $ 10.98 Granted — $ — 1,428,041 $ 22.89 Exercised/Vested (1,842,093) $ 14.41 (2,738,788) $ 12.01 Canceled (167,906) $ 34.55 (104,351) $ 13.49 Outstanding at June 30, 2022 2,264,305 $ 27.48 4,473,144 $ 14.09 Stock-based performance unit awards During the first six months of 2022, we granted 167,043 stock-based performance units to eligible officers, which are settled in shares. The grant date fair value per unit was $34.07. During the first six months of 2022, we also granted 167,043 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 $22.63 as of June 30, 2022. |
Defined Benefit Postretirement
Defined Benefit Postretirement Plans | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, Pension Benefits Other Benefits (In millions) 2022 2021 2022 2021 Service cost $ 3 $ 4 $ — $ — Interest cost 2 2 1 1 Expected return on plan assets (3) (2) — — Amortization: – prior service credit (1) (1) (4) (4) – actuarial loss 1 1 — — Net settlement loss (a) — 5 — — Net periodic benefit costs (credits) (b) $ 2 $ 9 $ (3) $ (3) Six Months Ended June 30, Pension Benefits Other Benefits (In millions) 2022 2021 2022 2021 Service cost $ 7 $ 8 $ — $ — Interest cost 4 4 1 1 Expected return on plan assets (5) (4) — — Amortization: – prior service credit (3) (3) (8) (8) – actuarial loss 1 3 1 1 Net settlement loss (a) — 5 — — Net periodic benefit costs (credits) (b) $ 4 $ 13 $ (6) $ (6) (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. During the first six months of 2022, we made contributions of $9 million to our funded pension plan. We also made a payment of $5 million related to our other postretirement benefit plans. We expect to contribute an additional $8 million in contributions to our funded pension plan this year. |
Reclassifications Out of Accumu
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | Reclassifications Out of Accumulated Other Comprehensive Income (Loss) The following table presents a summary of amounts reclassified from accumulated other comprehensive income (loss): Three Months Ended June 30, Six Months Ended June 30, (In millions) 2022 2021 2022 2021 Income Statement Line Postretirement and postemployment plans Amortization of prior service credit $ 5 $ 5 $ 11 $ 11 Other net periodic benefit costs Amortization of actuarial loss (1) (1) (2) (4) Other net periodic benefit costs Net settlement loss — (5) — (5) Other net periodic benefit costs Interest rate swaps Reclassification of de-designated forward interest rate swaps — (30) — (28) Net interest and other (1) — (2) — Provision (benefit) for income taxes Total reclassifications of (income) expense, net of tax (a) $ 3 $ (31) $ 7 $ (26) Net income (loss) |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Six Months Ended June 30, (In millions) 2022 2021 Included in operating activities: Interest paid $ 99 $ 123 Income taxes paid to (received from) taxing authorities, net of refunds $ 93 $ 9 Noncash investing activities: Increase in asset retirement costs $ 3 $ 38 Other noncash investing activities include accrued capital expenditures for the six months ended June 30, 2022 and 2021 of $116 million and $85 million, respectively. |
Equity Method Investments
Equity Method Investments | 6 Months Ended |
Jun. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investments During the periods ended June 30, 2022 and December 31, 2021 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 June 30, 2022 June 30, 2022 December 31, 2021 EGHoldings (a) 56% $ 226 $ 148 Alba Plant LLC (b) 52% 166 154 AMPCO (c) 45% 136 148 Total $ 528 $ 450 (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 June 30, Six Months Ended June 30, (In millions) 2022 2021 2022 2021 Income data: Revenues and other income $ 459 $ 246 $ 833 $ 481 Income (loss) from operations 306 111 535 207 Net income (loss) $ 272 $ 85 $ 476 $ 157 Revenues from related parties were $7 million and $15 million for the three and six months ended June 30, 2022, respectively, $8 million and $16 million for the three and six months ended June 30, 2021, respectively, with the majority related to EGHoldings in all 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. Dividends and return of capital received by us totaled $146 million and $200 million for the three and six months ended June 30, 2022, respectively, and $50 million and $81 million for the three and six months ended June 30, 2021, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies 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. The agreements to process the third-party Alen Unit gas required the execution of third-party guarantees by Marathon Oil Corporation in favor of the Alen Unit’s owners. Two separate guarantees were executed during the second quarter of 2020; one for a maximum of approximately $91 million pertaining to the payment obligations of Equatorial Guinea LNG Operations, S.A. and another for a maximum of $25 million pertaining to the payment obligations of Alba Plant LLC. Payment by us would be required if any of those entities fails to honor its payment obligations pursuant to the relevant agreements with the owners of the Alen Unit. Certain owners of the Alen Unit, or their affiliates, are also direct or indirect shareholders in Equatorial Guinea LNG Operations, S.A. and Alba Plant LLC. Each guarantee expires no later than December 31, 2027. We measured these guarantees at fair value using the net present value of premium payments we expect to receive from our investees. Our liability for these guarantees was approximately $4 million as of June 30, 2022. Each of Equatorial Guinea LNG Operations, S.A. and Equatorial Guinea LNG Train 1, S.A. provided us with a pledge of its receivables as recourse against any payments we may make under the guaranty of Equatorial Guinea LNG Operations, S.A.’s performance. 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 June 30, 2022, we have a $145 million current liability in suspended royalty and working interest revenue, including interest, of which $133 million was included within accounts payable and $12 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 $25 million for capital and expenses. The United States Department of the Interior (“DOI”) has addressed the United States’ position with respect to this dispute several times over the past five years with conflicting opinions. In January 2017, the DOI issued an opinion that the Disputed Land is held in trust for the Three Affiliated Tribes, then in June 2018 and May 2020 the DOI issued opinions concluding that the State of North Dakota held title to the Disputed Land. Most recently, on February 4, 2022, the DOI issued an opinion (“M-Opinion”) concluding the DOI’s position that the Disputed Land is held in trust for the Three Affiliated Tribes. While the M-Opinion is binding on all agencies within the DOI, it is not legally binding on third parties, including Marathon Oil, or a court. Depending on the ultimate outcome of this title dispute, the Three Affiliated Tribes could challenge the validity of certain of our leases relating to a portion of the disputed land, and if such challenge were successful it could result in operational delays and additional costs to us. Given the uncertainty in matters such as these, we are unable to predict the ultimate outcome of this matter at this time; however, we believe the resolution of this matter will not have a material adverse effect on our consolidated financial position, results of operations or cash flows. We are a defendant in a number of legal and administrative proceedings arising in the ordinary course of business including, but not limited to, royalty claims, contract claims, tax disputes and environmental claims. While the ultimate outcome and impact to us cannot be predicted with certainty, we believe the resolution of these proceedings will not have a material adverse effect on our consolidated financial position, results of operations or cash flows. In addition, we may also be subject to retained liabilities with respect to certain divested assets by operation of law. For example, we are exposed to the risk that owners and/or operators of assets purchased from us become unable to satisfy plugging or abandonment obligations that attach to those assets. In that event, due to operation of law, we may be required to assume plugging or abandonment obligations for those assets. Although we have established reserves for such liabilities, we could be required to accrue additional amounts in the future and these amounts could be material. Marathon Oil has been named in various lawsuits alleging royalty underpayments in our domestic operations. We intend to vigorously defend ourselves against such claims. For instance, Marathon Oil has been named in a lawsuit alleging improper royalty deductions in certain of our Oklahoma operations, and plaintiffs have sought class certification, which the court has so far denied. We have accrued for potential liabilities associated with these lawsuits based on currently available information; however, actual losses may exceed our accruals or we could be required to accrue additional amounts in the future. In January 2020, we received a Notice of Violation from the EPA related to the Clean Air Act. We are actively negotiating a draft consent decree with the EPA containing certain proposed injunctive terms relating to this enforcement action. 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. 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 that any penalties, mitigation costs or corrective actions that may result from this matter will not have a material adverse effect on our consolidated financial position, results of operations or cash flows. 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 June 30, 2022, 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. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
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 2021 Annual Report on Form 10-K. The results of operations for the second quarter and first six months of 2022 are not necessarily indicative of the results to be expected for the full year. |
Income and Dividends per Comm_2
Income and Dividends per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Income (Loss) Per Share, Basic and Diluted | The per share calculations below exclude 2 million of stock options for the three and six months ended June 30, 2022 and 4 million and 5 million of stock options for the three and six months ended June 30, 2021, respectively, that were antidilutive. Three Months Ended June 30, Six Months Ended June 30, (In millions, except per share data) 2022 2021 2022 2021 Net income $ 966 $ 16 $ 2,270 $ 113 Weighted average common shares outstanding 703 789 717 790 Effect of dilutive securities 2 — 2 1 Weighted average common shares, diluted 705 789 719 791 Net income per share: Basic $ 1.37 $ 0.02 $ 3.17 $ 0.14 Diluted $ 1.37 $ 0.02 $ 3.16 $ 0.14 Dividends per share $ 0.08 $ 0.04 $ 0.15 $ 0.07 |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables present our revenues from contracts with customers disaggregated by product type and geographic areas for the three and six months ended June 30: United States Three Months Ended June 30, 2022 (In millions) Eagle Ford Bakken Oklahoma Northern Delaware Other U.S. Total Crude oil and condensate $ 544 $ 749 $ 138 $ 100 $ 42 $ 1,573 Natural gas liquids 55 92 69 15 8 239 Natural gas 56 46 95 21 10 228 Other 1 — — — 48 49 Revenues from contracts with customers $ 656 $ 887 $ 302 $ 136 $ 108 $ 2,089 Three Months Ended June 30, 2021 (In millions) Eagle Ford Bakken Oklahoma Northern Delaware Other U.S. Total Crude oil and condensate $ 353 $ 411 $ 71 $ 77 $ 24 $ 936 Natural gas liquids 33 48 37 11 2 131 Natural gas 29 17 41 5 (1) 91 Other 2 — — — 29 31 Revenues from contracts with customers $ 417 $ 476 $ 149 $ 93 $ 54 $ 1,189 Six Months Ended June 30, 2022 (In millions) Eagle Ford Bakken Oklahoma Northern Delaware Other U.S. Total Crude oil and condensate $ 1,003 $ 1,401 $ 237 $ 188 $ 85 $ 2,914 Natural gas liquids 99 181 128 30 17 455 Natural gas 89 89 151 33 17 379 Other 3 — — — 52 55 Revenues from contracts with customers $ 1,194 $ 1,671 $ 516 $ 251 $ 171 $ 3,803 Six Months Ended June 30, 2021 (In millions) Eagle Ford Bakken Oklahoma Northern Delaware Other U.S. Total Crude oil and condensate $ 612 $ 783 $ 132 $ 154 $ 46 $ 1,727 Natural gas liquids 59 89 74 20 5 247 Natural gas 76 42 150 30 8 306 Other 4 — — — 37 41 Revenues from contracts with customers $ 751 $ 914 $ 356 $ 204 $ 96 $ 2,321 International (E.G.) Three Months Ended June 30, Six Months Ended June 30, (In millions) 2022 2021 2022 2021 Crude oil and condensate $ 71 $ 58 $ 111 $ 95 Natural gas liquids — 1 1 2 Natural gas 7 5 12 12 Other 1 1 2 1 Revenues from contracts with customers $ 79 $ 65 $ 126 $ 110 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Three Months Ended June 30, 2022 (In millions) U.S. Int’l Not Allocated to Segments Total Revenues from contracts with customers $ 2,089 $ 79 $ — $ 2,168 Net gain (loss) on commodity derivatives (70) — 43 (b) (27) Income from equity method investments — 152 — 152 Net loss on disposal of assets — — (1) (1) Other income 2 2 7 11 Less costs and expenses: Production 150 14 — 164 Shipping, handling and other operating 187 1 3 191 Exploration 8 — — 8 Depreciation, depletion and amortization 415 16 5 436 Impairments — — 2 2 Taxes other than income 139 — 1 140 General and administrative 27 3 38 68 Net interest and other — — 54 54 Other net periodic benefit costs — — (5) (5) Income tax provision (benefit) 249 39 (9) 279 Segment income (loss) $ 846 $ 160 $ (40) $ 966 Total assets $ 15,757 $ 1,059 $ 1,470 $ 18,286 Capital expenditures (a) $ 372 $ 1 $ 2 $ 375 (a) Includes accruals. (b) Unrealized gain on commodity derivative instruments (See Note 13 ). Three Months Ended June 30, 2021 (In millions) U.S. Int’l Not Allocated to Segments Total Revenues from contracts with customers $ 1,189 $ 65 $ — $ 1,254 Net gain (loss) on commodity derivatives (91) — (75) (b) (166) Income (loss) from equity method investments — 49 — 49 Net gain on disposal of assets — — 1 1 Other income 3 2 — 5 Less costs and expenses: Production 113 13 — 126 Shipping, handling and other operating 153 2 12 167 Exploration 18 — 7 25 Depreciation, depletion and amortization 506 18 8 532 Impairments — — 46 (c) 46 Taxes other than income 76 — (2) 74 General and administrative 27 4 37 68 Net interest and other — — 59 (d) 59 Other net periodic benefit costs — — 1 1 Loss on early extinguishment of debt — — 19 (e) 19 Income tax provision (benefit) 1 11 (2) 10 Segment income (loss) $ 207 $ 68 $ (259) $ 16 Total assets $ 15,747 $ 1,047 $ 1,006 $ 17,800 Capital expenditures (a) $ 284 $ 2 $ 3 $ 289 (a) Includes accruals. (b) Unrealized loss on commodity derivative instruments (See Note 13 ). (c) Includes impairments of $24 million associated with central facilities in Eagle Ford (See Note 10 ) and $22 million associated with decommissioning costs for non-producing long-lived assets in the Gulf of Mexico (‘GOM’) (See Note 10 , Note 11 and Note 22 ). (d) Includes a $22 million loss on 2022 interest rate swaps and a $31 million gain on 2025 interest rate swaps, neither of which were designated as cash flow hedges as of June 30, 2021 (See Note 13 ). Six Months Ended June 30, 2022 (In millions) U.S. Int’l Not Allocated to Segments Total Revenues from contracts with customers $ 3,803 $ 126 $ — $ 3,929 Net loss on commodity derivatives (99) — (71) (b) (170) Income from equity method investments — 279 — 279 Net loss on disposal of assets — — (1) (1) Other income 6 4 9 19 Less costs and expenses: Production 291 25 — 316 Shipping, handling and other operating 337 10 29 376 Exploration 19 — — 19 Depreciation, depletion and amortization 819 31 9 859 Impairments — — 2 2 Taxes other than income 238 — 6 244 General and administrative 57 6 78 141 Net interest and other — — 76 (c) 76 Other net periodic benefit credit — — (9) (9) Income tax provision (benefit) 442 62 (742) (d) (238) Segment income $ 1,507 $ 275 $ 488 $ 2,270 Total assets $ 15,757 $ 1,059 $ 1,470 $ 18,286 Capital expenditures (a) $ 718 $ — $ 5 $ 723 (a) Includes accruals. (b) Unrealized loss on commodity derivative instruments (See Note 14 ). (c) Includes a $17 million gain on 2025 interest rate swaps (See Note 13 ). (d) Includes a $685 million benefit related to the partial release of our valuation allowance (See Note 6 ). Six Months Ended June 30, 2021 (In millions) U.S. Int’l Not Allocated to Segments Total Revenue from contracts with customers $ 2,321 $ 110 $ — $ 2,431 Net gain on commodity derivatives (162) — (157) (b) (319) Loss from equity method investments — 93 — 93 Net gain on disposal of assets — — 1 1 Other income 4 3 1 8 Less costs and expenses: Production 224 23 — 247 Shipping, handling and other operating 297 6 16 319 Exploration 39 — 7 46 Depreciation, depletion and amortization 978 37 13 1,028 Impairments — — 47 (c) 47 Taxes other than income 150 — (2) 148 General and administrative 50 6 101 (d) 157 Net interest and other — — 72 (e) 72 Other net periodic benefit credit — — (2) (2) Loss on early extinguishment of debt — — 19 (f) 19 Income tax provision (benefit) 6 16 (2) 20 Segment income (loss) $ 419 $ 118 $ (424) $ 113 Total assets $ 15,747 $ 1,047 $ 1,006 $ 17,800 Capital expenditures (a) $ 467 $ 2 $ 4 $ 473 (a) Includes accruals. (b) Unrealized loss on commodity derivative instruments (See Note 14 ). (c) Includes second quarter 2021 impairments of $24 million associated with central facilities in Eagle Ford (See Note 10 ) and $22 million associated with decommissioning costs for non-producing long-lived assets in GOM (See Note 10 , Note 11 and Note 22 ). (d) Includes $13 million associated with the termination of an aircraft lease agreement and $12 million arising from severance expenses associated with a workforce reduction. (e) Includes a $19 million gain on 2022 interest rate swaps and a $31 million gain on 2025 interest rate swaps, neither of which were designated as cash flow hedges as of June 30, 2021 (See Note 13 ). (f) Represents costs related to a make-whole provision premium and the write off of unamortized discount and issuance costs related to the redemption of the 2022 Notes in April 2021. |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | For the three and six months ended June 30, 2022 and 2021, our effective income tax rates were as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Effective income tax rate 22 % 38 % (12) % 15 % |
Credit Losses (Tables)
Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Credit Loss [Abstract] | |
Accounts Receivable, Allowance for Credit Loss | Changes in the allowance for doubtful accounts balance were as follows: (In millions) June 30, 2022 December 31, 2021 Beginning balance as of January 1 $ 15 $ 22 Current period provision (2) 3 Current period write offs — (5) Recoveries of amounts previously reserved — (5) Ending balance $ 13 $ 15 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | (In millions) June 30, 2022 December 31, 2021 Crude oil and natural gas $ 15 $ 8 Supplies and other items 78 69 Inventories $ 93 $ 77 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | (In millions) June 30, 2022 December 31, 2021 United States $ 13,989 $ 14,097 International 315 347 Corporate 53 55 Net property, plant and equipment $ 14,357 $ 14,499 |
Impairments (Tables)
Impairments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Impairment Expense [Abstract] | |
Summary of Impaired Assets | The following table summarizes impairment charges of proved properties and their corresponding fair values. Three Months Ended June 30, 2022 2021 (In millions) Fair Value Impairment Fair Value Impairment Long-lived assets held for use $ — $ — $ — $ 24 Asset retirement costs of long-lived assets $ — $ 2 $ — $ 22 Six Months Ended June 30, 2022 2021 (In millions) Fair Value Impairment Fair Value Impairment Long-lived assets held for use $ — $ — $ — $ 25 Asset retirement costs of long-lived assets $ — $ 2 $ — $ 22 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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: June 30, (In millions) 2022 2021 Beginning balance as of January 1 $ 316 $ 254 Incurred liabilities, including acquisitions 8 6 Settled liabilities, including dispositions (3) (2) Accretion expense (included in depreciation, depletion and amortization) 7 6 Revisions of estimates (5) 32 Ending balance as of June 30, total $ 323 $ 296 Ending balance as of June 30, short-term $ 46 $ 24 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
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: June 30, 2022 December 31, 2021 ROU assets: Operating leases Other noncurrent assets $ 119 $ 59 Finance leases Other noncurrent assets 26 28 Total ROU assets $ 145 $ 87 Lease liabilities: Current liabilities Operating leases Other current liabilities $ 78 $ 40 Finance leases Other current liabilities 6 6 Noncurrent liabilities Operating leases Deferred credits and other liabilities 45 23 Finance leases Deferred credits and other liabilities 20 24 Total lease liabilities $ 149 $ 93 |
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 2022 $ 3 2023 6 2024 6 2025 6 2026 6 Thereafter 48 Total undiscounted cash flows $ 75 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in the Consolidated Balance Sheets | The following tables present the gross fair values of derivative instruments and the reported net amounts along with where they appear on the consolidated balance sheets. June 30, 2022 (In millions) Asset Liability Net Asset (Liability) Balance Sheet Location Not Designated as Hedges Commodity $ 2 $ 2 $ — Other current assets Commodity 4 83 (79) Other current liabilities Total Not Designated as Hedges $ 6 $ 85 $ (79) Cash Flow Hedges Interest Rate $ 4 $ — $ 4 Other current assets Interest Rate 12 — 12 Other noncurrent assets Total Designated Hedges $ 16 $ — $ 16 Total $ 22 $ 85 $ (63) December 31, 2021 (In millions) Asset Liability Net Asset (Liability) Balance Sheet Location Not Designated as Hedges Commodity 1 8 (7) Other current liabilities Interest Rate 27 — 27 Other noncurrent assets Total Not Designated as Hedges $ 28 $ 8 $ 20 Cash Flow Hedges Interest Rate $ — $ 3 $ (3) Other current liabilities Interest Rate — 2 (2) Deferred credits and other liabilities Total Designated Hedges $ — $ 5 $ (5) Total $ 28 $ 13 $ 15 The unrealized and realized gain (loss) impact of our commodity derivative instruments appears in the table below and is reflected in net gain (loss) on commodity derivatives in the consolidated statements of income. Three Months Ended June 30, Six Months Ended June 30, (In millions) 2022 2021 2022 2021 Unrealized gain (loss) on derivative instruments, net $ 43 $ (75) $ (71) $ (157) Realized gain (loss) on derivative instruments, net (a) $ (70) $ (91) $ (99) $ (162) (a) During the second quarter and first six months of 2022, net cash paid for settled derivative positions was $61 million and $89 million, respectively. During the second quarter and first six months of 2021, net cash paid for settled derivative positions was $84 million and $95 million, respectively. |
Schedule of Notional Amounts of Outstanding Derivative Positions | The following table sets forth outstanding derivative contracts as of June 30, 2022, and the weighted average prices for those contracts: 2022 2023 Third Quarter Fourth Quarter First Quarter Crude Oil NYMEX WTI Three-Way Collars Volume (Bbls/day) 30,000 30,000 Weighted average price per Bbl: Ceiling $ 97.52 $ 97.52 Floor $ 56.67 $ 56.67 Sold put $ 46.67 $ 46.67 NYMEX Roll Basis Swaps Volume (Bbls/day) 60,000 60,000 Weighted average price per Bbl $ 0.67 $ 0.67 Natural Gas Henry Hub (“HH”) Two-Way Collars Volume (MMBtu/day) 50,000 50,000 Weighted average price per MMBtu: Ceiling $ 19.28 $ 19.28 Floor $ 5.00 $ 5.00 Henry Hub Three-Way Collars Volume (MMBtu/day) 100,000 100,000 Weighted average price per MMBtu: Ceiling $ 7.13 $ 7.13 Floor $ 3.88 $ 3.88 Sold Put $ 2.88 $ 2.88 |
Schedule of Interest Rate Swap Agreement | The following table presents, by maturity date, information about our de-designated forward starting interest rate swap agreements. These positions were fully liquidated as of June 30, 2022. June 30, 2022 December 31, 2021 Maturity Date Aggregate Notional Amount (in millions) Weighted Average, LIBOR Aggregate Notional Amount (in millions) Weighted Average, LIBOR June 1, 2025 $ — — % $ 350 0.95 % September 9, 2026 $ — — % $ 25 1.45 % The following table presents, by maturity date, information about our interest rate swap agreements, including the fixed weighted average LIBOR. June 30, 2022 December 31, 2021 Maturity Date Aggregate Notional Amount (in millions) Weighted Average, LIBOR Aggregate Notional Amount (in millions) Weighted Average, LIBOR September 9, 2026 $ 295 1.52 % $ 295 1.52 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present assets and liabilities accounted for at fair value on a recurring basis as of June 30, 2022 and December 31, 2021 by hierarchy level. June 30, 2022 (In millions) Level 1 Level 2 Level 3 Total Derivative instruments, assets Interest rate - designated as cash flow hedges — 16 — 16 Derivative instruments, assets $ — $ 16 $ — $ 16 Derivative instruments, liabilities Commodity (a) $ (23) $ (56) $ — $ (79) Derivative instruments, liabilities $ (23) $ (56) $ — $ (79) Total $ (23) $ (40) $ — $ (63) December 31, 2021 (In millions) Level 1 Level 2 Level 3 Total Derivative instruments, assets Interest rate - not designated as cash flow hedges $ — $ 27 $ — $ 27 Derivative instruments, assets $ — $ 27 $ — $ 27 Derivative instruments, liabilities Commodity (a) $ (2) $ (5) $ — $ (7) Interest rate - designated as cash flow hedges — (5) — (5) Derivative instruments, liabilities $ (2) $ (10) $ — $ (12) Total $ (2) $ 17 $ — $ 15 (a) Commodity derivative instruments are recorded on a net basis in our consolidated balance sheet. See Note 13 |
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 June 30, 2022 and December 31, 2021. June 30, 2022 December 31, 2021 (In millions) Fair Value Carrying Amount Fair Value Carrying Amount Financial assets Current assets $ — $ — $ 11 $ 10 Other noncurrent assets 10 28 12 27 Total financial assets $ 10 $ 28 $ 23 $ 37 Financial liabilities Current liabilities $ 110 $ 166 $ 99 $ 136 Long-term debt, including current portion (a) 3,996 4,000 4,705 4,033 Deferred credits and other liabilities 16 15 46 46 Total financial liabilities $ 4,122 $ 4,181 $ 4,850 $ 4,215 |
Incentive Based Compensation (T
Incentive Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 six months of 2022: 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, 2021 4,274,304 $ 22.13 5,888,242 $ 10.98 Granted — $ — 1,428,041 $ 22.89 Exercised/Vested (1,842,093) $ 14.41 (2,738,788) $ 12.01 Canceled (167,906) $ 34.55 (104,351) $ 13.49 Outstanding at June 30, 2022 2,264,305 $ 27.48 4,473,144 $ 14.09 |
Defined Benefit Postretiremen_2
Defined Benefit Postretirement Plans (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Benefit Cost | The following summarizes the components of net periodic benefit costs (credits): Three Months Ended June 30, Pension Benefits Other Benefits (In millions) 2022 2021 2022 2021 Service cost $ 3 $ 4 $ — $ — Interest cost 2 2 1 1 Expected return on plan assets (3) (2) — — Amortization: – prior service credit (1) (1) (4) (4) – actuarial loss 1 1 — — Net settlement loss (a) — 5 — — Net periodic benefit costs (credits) (b) $ 2 $ 9 $ (3) $ (3) Six Months Ended June 30, Pension Benefits Other Benefits (In millions) 2022 2021 2022 2021 Service cost $ 7 $ 8 $ — $ — Interest cost 4 4 1 1 Expected return on plan assets (5) (4) — — Amortization: – prior service credit (3) (3) (8) (8) – actuarial loss 1 3 1 1 Net settlement loss (a) — 5 — — Net periodic benefit costs (credits) (b) $ 4 $ 13 $ (6) $ (6) (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) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Schedule of Amounts Reclassified out of Accumulated Other Comprehensive Income (Loss) | The following table presents a summary of amounts reclassified from accumulated other comprehensive income (loss): Three Months Ended June 30, Six Months Ended June 30, (In millions) 2022 2021 2022 2021 Income Statement Line Postretirement and postemployment plans Amortization of prior service credit $ 5 $ 5 $ 11 $ 11 Other net periodic benefit costs Amortization of actuarial loss (1) (1) (2) (4) Other net periodic benefit costs Net settlement loss — (5) — (5) Other net periodic benefit costs Interest rate swaps Reclassification of de-designated forward interest rate swaps — (30) — (28) Net interest and other (1) — (2) — Provision (benefit) for income taxes Total reclassifications of (income) expense, net of tax (a) $ 3 $ (31) $ 7 $ (26) Net income (loss) |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Six Months Ended June 30, (In millions) 2022 2021 Included in operating activities: Interest paid $ 99 $ 123 Income taxes paid to (received from) taxing authorities, net of refunds $ 93 $ 9 Noncash investing activities: Increase in asset retirement costs $ 3 $ 38 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | During the periods ended June 30, 2022 and December 31, 2021 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 June 30, 2022 June 30, 2022 December 31, 2021 EGHoldings (a) 56% $ 226 $ 148 Alba Plant LLC (b) 52% 166 154 AMPCO (c) 45% 136 148 Total $ 528 $ 450 (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 June 30, Six Months Ended June 30, (In millions) 2022 2021 2022 2021 Income data: Revenues and other income $ 459 $ 246 $ 833 $ 481 Income (loss) from operations 306 111 535 207 Net income (loss) $ 272 $ 85 $ 476 $ 157 |
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 | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share [Abstract] | ||||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2 | 4 | 2 | 5 | ||
Net income | $ 966 | $ 1,304 | $ 16 | $ 97 | $ 2,270 | $ 113 |
Weighted average common shares outstanding (in shares) | 703 | 789 | 717 | 790 | ||
Effect of dilutive securities (in shares) | 2 | 0 | 2 | 1 | ||
Weighted average common shares, diluted (in shares) | 705 | 789 | 719 | 791 | ||
Net income per share: | ||||||
Basic (in dollars per share) | $ 1.37 | $ 0.02 | $ 3.17 | $ 0.14 | ||
Diluted (in dollars per share) | 1.37 | 0.02 | 3.16 | 0.14 | ||
Dividends per share (in dollars per share) | $ 0.08 | $ 0.07 | $ 0.04 | $ 0.03 | $ 0.15 | $ 0.07 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Receivables from contract with customer | $ 1,300 | $ 961 |
Revenues - Revenues from Contra
Revenues - Revenues from Contracts with Customers by Product Type and Geographic Areas (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 2,168 | $ 1,254 | $ 3,929 | $ 2,431 |
United States E&P | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 2,089 | 1,189 | 3,803 | 2,321 |
United States E&P | Eagle Ford | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 656 | 417 | 1,194 | 751 |
United States E&P | Bakken | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 887 | 476 | 1,671 | 914 |
United States E&P | Oklahoma | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 302 | 149 | 516 | 356 |
United States E&P | Northern Delaware | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 136 | 93 | 251 | 204 |
United States E&P | Other U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 108 | 54 | 171 | 96 |
United States E&P | Crude oil and condensate | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 1,573 | 936 | 2,914 | 1,727 |
United States E&P | Crude oil and condensate | Eagle Ford | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 544 | 353 | 1,003 | 612 |
United States E&P | Crude oil and condensate | Bakken | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 749 | 411 | 1,401 | 783 |
United States E&P | Crude oil and condensate | Oklahoma | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 138 | 71 | 237 | 132 |
United States E&P | Crude oil and condensate | Northern Delaware | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 100 | 77 | 188 | 154 |
United States E&P | Crude oil and condensate | Other U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 42 | 24 | 85 | 46 |
United States E&P | Natural gas liquids | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 239 | 131 | 455 | 247 |
United States E&P | Natural gas liquids | Eagle Ford | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 55 | 33 | 99 | 59 |
United States E&P | Natural gas liquids | Bakken | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 92 | 48 | 181 | 89 |
United States E&P | Natural gas liquids | Oklahoma | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 69 | 37 | 128 | 74 |
United States E&P | Natural gas liquids | Northern Delaware | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 15 | 11 | 30 | 20 |
United States E&P | Natural gas liquids | Other U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 8 | 2 | 17 | 5 |
United States E&P | Natural gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 228 | 91 | 379 | 306 |
United States E&P | Natural gas | Eagle Ford | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 56 | 29 | 89 | 76 |
United States E&P | Natural gas | Bakken | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 46 | 17 | 89 | 42 |
United States E&P | Natural gas | Oklahoma | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 95 | 41 | 151 | 150 |
United States E&P | Natural gas | Northern Delaware | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 21 | 5 | 33 | 30 |
United States E&P | Natural gas | Other U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 10 | (1) | 17 | 8 |
United States E&P | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 49 | 31 | 55 | 41 |
United States E&P | Other | Eagle Ford | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 1 | 2 | 3 | 4 |
United States E&P | Other | Bakken | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
United States E&P | Other | Oklahoma | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
United States E&P | Other | Northern Delaware | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
United States E&P | Other | Other U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 48 | 29 | 52 | 37 |
International E&P | International, Equatorial Guinea (E.G.) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 79 | 65 | 126 | 110 |
International E&P | Crude oil and condensate | International, Equatorial Guinea (E.G.) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 71 | 58 | 111 | 95 |
International E&P | Natural gas liquids | International, Equatorial Guinea (E.G.) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 1 | 1 | 2 |
International E&P | Natural gas | International, Equatorial Guinea (E.G.) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 7 | 5 | 12 | 12 |
International E&P | Other | International, Equatorial Guinea (E.G.) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 1 | $ 1 | $ 2 | $ 1 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Jun. 30, 2022 USD ($) segment | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Segment Reporting Information [Line Items] | |||||||
Number of reportable segments | segment | 2 | ||||||
Number of operating segments | segment | 2 | ||||||
Revenues from contracts with customers | $ 2,168 | $ 1,254 | $ 3,929 | $ 2,431 | |||
Net gain (loss) on commodity derivatives | (27) | (166) | (170) | (319) | |||
Income from equity method investments | 152 | 49 | 279 | 93 | |||
Net loss on disposal of assets | (1) | 1 | (1) | 1 | |||
Other income | 11 | 5 | 19 | 8 | |||
Less costs and expenses: | |||||||
Production | 164 | 126 | 316 | 247 | |||
Shipping, handling and other operating | 191 | 167 | 376 | 319 | |||
Exploration | 8 | 25 | 19 | 46 | |||
Depreciation, depletion and amortization | 436 | 532 | 859 | 1,028 | |||
Impairments | 2 | 46 | 2 | 47 | |||
Taxes other than income | 140 | 74 | 244 | 148 | |||
General and administrative | 68 | 68 | 141 | 157 | |||
Net interest and other | 54 | 59 | 76 | 72 | |||
Other net periodic benefit costs | (5) | 1 | (9) | (2) | |||
Loss on early extinguishment of debt | 0 | 19 | 0 | 19 | |||
Income tax provision (benefit) | 279 | 10 | (238) | 20 | |||
Segment income (loss) | 966 | $ 1,304 | 16 | $ 97 | 2,270 | 113 | |
Total assets | 18,286 | 17,800 | 18,286 | 17,800 | $ 16,994 | ||
Capital expenditures | 375 | 289 | 723 | 473 | |||
Long-lived assets held for use impairment | 0 | 24 | 0 | 25 | |||
Impairments | 2 | 2 | 22 | ||||
Loss on lease termination | 13 | ||||||
Severance costs | 12 | ||||||
Valuation allowance released | 685 | ||||||
Eagle Ford | Central Facilities | |||||||
Less costs and expenses: | |||||||
Long-lived assets held for use impairment | 24 | 24 | |||||
Gulf of Mexico | |||||||
Less costs and expenses: | |||||||
Impairments | 22 | ||||||
Gulf of Mexico | Non Producing Property | |||||||
Less costs and expenses: | |||||||
Impairments | 22 | 22 | |||||
Interest Rate Contract, Maturing June 1, 2025 | Not Designated as Hedges | |||||||
Less costs and expenses: | |||||||
Gain on interest rate swap | 31 | 31 | |||||
Interest Rate Contract, Maturing June 1, 2025 | Cash Flow Hedges | |||||||
Less costs and expenses: | |||||||
Gain on interest rate swap | 17 | 17 | |||||
Interest Rate Contract, Maturing November 1, 2022 | Not Designated as Hedges | |||||||
Less costs and expenses: | |||||||
Loss on interest rate swap | 22 | ||||||
Gain on interest rate swap | 19 | ||||||
Not Allocated to Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 | |||
Net gain (loss) on commodity derivatives | 43 | (75) | (71) | (157) | |||
Income from equity method investments | 0 | 0 | 0 | 0 | |||
Net loss on disposal of assets | (1) | 1 | (1) | 1 | |||
Other income | 7 | 0 | 9 | 1 | |||
Less costs and expenses: | |||||||
Production | 0 | 0 | 0 | 0 | |||
Shipping, handling and other operating | 3 | 12 | 29 | 16 | |||
Exploration | 0 | 7 | 0 | 7 | |||
Depreciation, depletion and amortization | 5 | 8 | 9 | 13 | |||
Impairments | 2 | 46 | 2 | 47 | |||
Taxes other than income | 1 | (2) | 6 | (2) | |||
General and administrative | 38 | 37 | 78 | 101 | |||
Net interest and other | 54 | 59 | 76 | 72 | |||
Other net periodic benefit costs | (5) | 1 | (9) | (2) | |||
Loss on early extinguishment of debt | 19 | 19 | |||||
Income tax provision (benefit) | (9) | (2) | (742) | (2) | |||
Segment income (loss) | (40) | (259) | 488 | (424) | |||
Total assets | 1,470 | 1,006 | 1,470 | 1,006 | |||
Capital expenditures | 2 | 3 | 5 | 4 | |||
United States E&P | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues from contracts with customers | 2,089 | 1,189 | 3,803 | 2,321 | |||
United States E&P | Eagle Ford | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues from contracts with customers | 656 | 417 | 1,194 | 751 | |||
United States E&P | Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues from contracts with customers | 2,089 | 1,189 | 3,803 | 2,321 | |||
Net gain (loss) on commodity derivatives | (70) | (91) | (99) | (162) | |||
Income from equity method investments | 0 | 0 | 0 | 0 | |||
Net loss on disposal of assets | 0 | 0 | 0 | 0 | |||
Other income | 2 | 3 | 6 | 4 | |||
Less costs and expenses: | |||||||
Production | 150 | 113 | 291 | 224 | |||
Shipping, handling and other operating | 187 | 153 | 337 | 297 | |||
Exploration | 8 | 18 | 19 | 39 | |||
Depreciation, depletion and amortization | 415 | 506 | 819 | 978 | |||
Impairments | 0 | 0 | 0 | 0 | |||
Taxes other than income | 139 | 76 | 238 | 150 | |||
General and administrative | 27 | 27 | 57 | 50 | |||
Net interest and other | 0 | 0 | 0 | 0 | |||
Other net periodic benefit costs | 0 | 0 | 0 | 0 | |||
Loss on early extinguishment of debt | 0 | 0 | |||||
Income tax provision (benefit) | 249 | 1 | 442 | 6 | |||
Segment income (loss) | 846 | 207 | 1,507 | 419 | |||
Total assets | 15,757 | 15,747 | 15,757 | 15,747 | |||
Capital expenditures | 372 | 284 | 718 | 467 | |||
Int'l E&P | Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues from contracts with customers | 79 | 65 | 126 | 110 | |||
Net gain (loss) on commodity derivatives | 0 | 0 | 0 | 0 | |||
Income from equity method investments | 152 | 49 | 279 | 93 | |||
Net loss on disposal of assets | 0 | 0 | 0 | 0 | |||
Other income | 2 | 2 | 4 | 3 | |||
Less costs and expenses: | |||||||
Production | 14 | 13 | 25 | 23 | |||
Shipping, handling and other operating | 1 | 2 | 10 | 6 | |||
Exploration | 0 | 0 | 0 | 0 | |||
Depreciation, depletion and amortization | 16 | 18 | 31 | 37 | |||
Impairments | 0 | 0 | 0 | 0 | |||
Taxes other than income | 0 | 0 | 0 | 0 | |||
General and administrative | 3 | 4 | 6 | 6 | |||
Net interest and other | 0 | 0 | 0 | 0 | |||
Other net periodic benefit costs | 0 | 0 | 0 | 0 | |||
Loss on early extinguishment of debt | 0 | 0 | |||||
Income tax provision (benefit) | 39 | 11 | 62 | 16 | |||
Segment income (loss) | 160 | 68 | 275 | 118 | |||
Total assets | 1,059 | 1,047 | 1,059 | 1,047 | |||
Capital expenditures | $ 1 | $ 2 | $ 0 | $ 2 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 22% | 38% | (12.00%) | 15% |
Valuation allowance released | $ 685 |
Credit Losses (Details)
Credit Losses (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance as of January 1 | $ 15 | $ 22 |
Current period provision | (2) | 3 |
Current period write offs | 0 | (5) |
Recoveries of amounts previously reserved | 0 | (5) |
Ending balance | $ 13 | $ 15 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Crude oil and natural gas | $ 15 | $ 8 |
Supplies and other items | 78 | 69 |
Inventories | $ 93 | $ 77 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | $ 14,357 | $ 14,499 |
Exploratory well costs capitalized greater than one year after completion of drilling | 34 | 80 |
Operating Segments | United States | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | 13,989 | 14,097 |
Operating Segments | International | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | 315 | 347 |
Corporate | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | $ 53 | $ 55 |
Impairments - Summary of Impair
Impairments - Summary of Impaired Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Long-lived assets held for use impairment | $ 0 | $ 24 | $ 0 | $ 25 |
Asset retirement costs of long-lived assets, impairment | 2 | 2 | 22 | |
Fair Value | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Long-lived assets held for use | 0 | 0 | 0 | 0 |
Asset retirement costs of long-lived assets | $ 0 | $ 0 | $ 0 | $ 0 |
Impairments - Narrative (Detail
Impairments - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) facility | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||
Long-lived assets held for use impairment | $ 0 | $ 24 | $ 0 | $ 25 | ||
Number of impaired assets | facility | 2 | |||||
Asset retirement costs of long-lived assets, impairment | 2 | 2 | 22 | |||
Asset retirement obligation | $ 323 | $ 296 | $ 323 | 296 | $ 316 | $ 254 |
Gulf of Mexico | ||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||
Asset retirement costs of long-lived assets, impairment | 22 | |||||
Asset retirement obligation | $ 29 | $ 29 | $ 7 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||
Beginning balance as of January 1 | $ 316 | $ 254 | ||
Incurred liabilities, including acquisitions | 8 | 6 | ||
Settled liabilities, including dispositions | (3) | (2) | ||
Accretion expense (included in depreciation, depletion and amortization) | 7 | 6 | ||
Revisions of estimates | (5) | 32 | ||
Ending balance as of June 30, total | $ 323 | $ 296 | 323 | 296 |
Asset retirement obligation, current | 46 | 24 | 46 | 24 |
Impairments | $ 2 | $ 2 | 22 | |
Gulf of Mexico | ||||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||
Beginning balance as of January 1 | 7 | |||
Ending balance as of June 30, total | 29 | 29 | ||
Asset retirement obligation, current | 14 | $ 14 | ||
Impairments | $ 22 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other noncurrent assets | Other noncurrent assets |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other noncurrent assets | Other noncurrent assets |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Deferred credits and other liabilities | Deferred credits and other liabilities |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Deferred credits and other liabilities | Deferred credits and other liabilities |
ROU assets: | ||
Operating leases | $ 119 | $ 59 |
Finance leases | 26 | 28 |
Total ROU assets | 145 | 87 |
Current liabilities: | ||
Operating leases | 78 | 40 |
Finance leases | 6 | 6 |
Liabilities, Noncurrent [Abstract] | ||
Operating leases | 45 | 23 |
Finance leases | 20 | 24 |
Total lease liabilities | $ 149 | $ 93 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Leases [Abstract] | |
Term of contract | 5 years |
Cash lease payments | $ 2 |
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 | Jun. 30, 2022 USD ($) |
Leases [Abstract] | |
2022 | $ 3 |
2023 | 6 |
2024 | 6 |
2025 | 6 |
2026 | 6 |
Thereafter | 48 |
Total undiscounted cash flows | $ 75 |
Derivatives - Balance Sheet Com
Derivatives - Balance Sheet Components (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Asset | $ 22 | $ 28 |
Liability | 85 | 13 |
Net Asset (Liability) | (63) | 15 |
Not Designated as Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Asset | 6 | 28 |
Liability | 85 | 8 |
Net Asset (Liability) | (79) | 20 |
Cash Flow Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Asset | 16 | 0 |
Liability | 0 | 5 |
Net Asset (Liability) | 16 | (5) |
Commodity | Other current assets | Not Designated as Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Asset | 2 | |
Liability | 2 | |
Net Asset (Liability) | 0 | |
Commodity | Other current liabilities | Not Designated as Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Asset | 4 | 1 |
Liability | 83 | 8 |
Net Asset (Liability) | (79) | (7) |
Interest Rate | Other current assets | Cash Flow Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Asset | 4 | |
Liability | 0 | |
Net Asset (Liability) | 4 | |
Interest Rate | Other current liabilities | Cash Flow Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Asset | 0 | |
Liability | 3 | |
Net Asset (Liability) | (3) | |
Interest Rate | Other noncurrent assets | Not Designated as Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Asset | 27 | |
Liability | 0 | |
Net Asset (Liability) | 27 | |
Interest Rate | Other noncurrent assets | Cash Flow Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Asset | 12 | |
Liability | 0 | |
Net Asset (Liability) | $ 12 | |
Interest Rate | Deferred credits and other liabilities | Cash Flow Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Asset | 0 | |
Liability | 2 | |
Net Asset (Liability) | $ (2) |
Derivatives - Outstanding Deriv
Derivatives - Outstanding Derivative Contracts (Details) - Not Designated as Hedges | Jun. 30, 2022 Bbls_per_day MMBTU_per_day $ / MMBTU $ / bbl |
Three-Way Collars - Crude Oil 2022, Third Quarter | |
Derivative [Line Items] | |
Derivative, volume | Bbls_per_day | 30,000 |
Derivative, ceiling | 97.52 |
Derivative, floor | 56.67 |
Derivative, sold put | 46.67 |
Three-Way Collars - Crude Oil 2022, Fourth Quarter | |
Derivative [Line Items] | |
Derivative, volume | Bbls_per_day | 30,000 |
Derivative, ceiling | 97.52 |
Derivative, floor | 56.67 |
Derivative, sold put | 46.67 |
Three-Way Collars - Crude Oil 2023, First Quarter | |
Derivative [Line Items] | |
Derivative, volume | Bbls_per_day | |
Derivative, ceiling | |
Derivative, floor | |
Derivative, sold put | |
NYMEX Roll Basis Swaps - Crude Oil 2022, Third Quarter | |
Derivative [Line Items] | |
Derivative, volume | Bbls_per_day | 60,000 |
NYMEX Roll Basis Swaps - Crude Oil 2022, Third Quarter | Short | |
Derivative [Line Items] | |
Derivative, weighted average price | 0.67 |
NYMEX Roll Basis Swaps - Crude Oil 2022, Fourth Quarter | |
Derivative [Line Items] | |
Derivative, volume | Bbls_per_day | 60,000 |
NYMEX Roll Basis Swaps - Crude Oil 2022, Fourth Quarter | Short | |
Derivative [Line Items] | |
Derivative, weighted average price | 0.67 |
NYMEX Roll Basis Swaps - Crude Oil 2023, First Quarter | |
Derivative [Line Items] | |
Derivative, volume | Bbls_per_day | |
NYMEX Roll Basis Swaps - Crude Oil 2023, First Quarter | Short | |
Derivative [Line Items] | |
Derivative, weighted average price | |
Two-Way Collars - Natural Gas 2022, Fourth Quarter | |
Derivative [Line Items] | |
Derivative, volume | MMBTU_per_day | 50,000 |
Derivative, ceiling | $ / MMBTU | 19.28 |
Derivative, floor | $ / MMBTU | 5 |
Two-Way Collars - Natural Gas 2023, First Quarter | |
Derivative [Line Items] | |
Derivative, volume | MMBTU_per_day | 50,000 |
Derivative, ceiling | $ / MMBTU | 19.28 |
Derivative, floor | $ / MMBTU | 5 |
Three-Way Collars - Natural Gas 2022, Third Quarter | |
Derivative [Line Items] | |
Derivative, volume | MMBTU_per_day | 100,000 |
Derivative, ceiling | $ / MMBTU | 7.13 |
Derivative, floor | $ / MMBTU | 3.88 |
Derivative, sold put | $ / MMBTU | 2.88 |
Three-Way Collars - Natural Gas 2022, Fourth Quarter | |
Derivative [Line Items] | |
Derivative, volume | MMBTU_per_day | 100,000 |
Derivative, ceiling | $ / MMBTU | 7.13 |
Derivative, floor | $ / MMBTU | 3.88 |
Derivative, sold put | $ / MMBTU | 2.88 |
Three-Way Collars - Natural Gas 2023, First Quarter | |
Derivative [Line Items] | |
Derivative, volume | MMBTU_per_day | |
Derivative, ceiling | |
Derivative, floor | |
Derivative, sold put |
Derivatives - Schedule of mark-
Derivatives - Schedule of mark-to-market impact and commodity derivative settlements (Details) - Commodity - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized gain (loss) on derivative instruments, net | $ 43 | $ (75) | $ (71) | $ (157) |
Realized gain (loss) on derivative instruments, net | (70) | (91) | (99) | (162) |
Net settlements of derivative instruments | $ 61 | $ 84 | $ 89 | $ 95 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
Jun. 10, 2022 | Mar. 31, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Senior Unsecured Note Due 2025 | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Long-term debt | $ 900,000,000 | $ 900,000,000 | |||||||
Interest rate | 3.85% | 3.85% | |||||||
Interest Rate Contract, Maturing June 1, 2025 | Cash Flow Hedges | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Gain on interest rate swap | $ 17,000,000 | $ 17,000,000 | |||||||
Interest Rate Swap | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Proceeds for settlement of interest rate swaps | $ 44,000,000 | ||||||||
Net settlements of derivative instruments | 1,000,000 | 2,000,000 | |||||||
Amount expected to be reclassified within 12 months | 5,000,000 | ||||||||
Not Designated as Hedges | Interest Rate Contract, Maturing June 1, 2025 | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Derivative, notional amount | 0 | 0 | $ 350,000,000 | ||||||
Gain on interest rate swap | $ 31,000,000 | $ 31,000,000 | |||||||
Not Designated as Hedges | Interest Rate Contract, Maturing September 9, 2026 | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Derivative, notional amount | 0 | 0 | 25,000,000 | ||||||
Not Designated as Hedges | Interest Rate Contract, Maturing September 9, 2026 | De-designated as cash flow hedge | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Derivative, notional amount | $ 25,000,000 | 25,000,000 | 25,000,000 | ||||||
Designated as Hedging Instrument | Cash Flow Hedges | De-designated as cash flow hedge | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Cash proceeds | $ 2,000,000 | ||||||||
Designated as Hedging Instrument | Interest Rate Contract, Maturing June 1, 2025 | Cash Flow Hedges | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Derivative, notional amount | $ 350,000,000 | ||||||||
Designated as Hedging Instrument | Interest Rate Contract, Maturing September 9, 2026 | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Derivative, notional amount | $ 295,000,000 | $ 295,000,000 | $ 295,000,000 | ||||||
Designated as Hedging Instrument | Interest Rate Contract, Maturing September 9, 2026 | Cash Flow Hedges | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Derivative, notional amount | $ 320,000,000 | $ 320,000,000 | $ 320,000,000 |
Derivatives - Schedule of Termi
Derivatives - Schedule of Terminated Interest Rate Swap Agreements (Details) - Not Designated as Hedges - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Interest Rate Contract, Maturing June 1, 2025 | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 0 | $ 350,000,000 |
Weighted average interest rate, LIBOR | 0% | 0.95% |
Interest Rate Contract, Maturing September 9, 2026 | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 0 | $ 25,000,000 |
Weighted average interest rate, LIBOR | 0% | 1.45% |
Derivatives - Schedule of Inter
Derivatives - Schedule of Interest Rate Swap Agreements (Details) - Interest Rate Contract, Maturing September 9, 2026 - Designated as Hedging Instrument - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Derivative, notional amount | $ 295,000,000 | $ 295,000,000 |
Weighted average interest rate, LIBOR | 1.52% | 1.52% |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Values - Recurring (Details) - Recurring - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | $ 16 | $ 27 |
Derivative instruments, liabilities | (79) | (12) |
Total | (63) | 15 |
Interest Rate | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 16 | |
Derivative instruments, liabilities | (5) | |
Interest Rate | Not Designated as Hedges | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 27 | |
Commodity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, liabilities | (79) | (7) |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 0 | 0 |
Derivative instruments, liabilities | (23) | (2) |
Total | (23) | (2) |
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 | |
Derivative instruments, liabilities | 0 | |
Level 1 | Interest Rate | Not Designated as Hedges | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 0 | |
Level 1 | Commodity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, liabilities | (23) | (2) |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 16 | 27 |
Derivative instruments, liabilities | (56) | (10) |
Total | (40) | 17 |
Level 2 | Interest Rate | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 16 | |
Derivative instruments, liabilities | (5) | |
Level 2 | Interest Rate | Not Designated as Hedges | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 27 | |
Level 2 | Commodity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, liabilities | (56) | (5) |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 0 | 0 |
Derivative instruments, liabilities | 0 | 0 |
Total | 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 | |
Derivative instruments, liabilities | 0 | |
Level 3 | Interest Rate | Not Designated as Hedges | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 0 | |
Level 3 | Commodity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, liabilities | $ 0 | $ 0 |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Values - Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value | ||
Financial assets | ||
Current assets | $ 0 | $ 11 |
Other noncurrent assets | 10 | 12 |
Total financial assets | 10 | 23 |
Financial liabilities | ||
Current liabilities | 110 | 99 |
Long-term debt, including current portion | 3,996 | 4,705 |
Deferred credits and other liabilities | 16 | 46 |
Total financial liabilities | 4,122 | 4,850 |
Carrying Amount | ||
Financial assets | ||
Current assets | 0 | 10 |
Other noncurrent assets | 28 | 27 |
Total financial assets | 28 | 37 |
Financial liabilities | ||
Current liabilities | 166 | 136 |
Long-term debt, including current portion | 4,000 | 4,033 |
Deferred credits and other liabilities | 15 | 46 |
Total financial liabilities | $ 4,181 | $ 4,215 |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facility (Details) - Revolving Credit Facility | Jul. 28, 2022 USD ($) | Jun. 30, 2022 USD ($) |
Line of Credit Facility [Line Items] | ||
Line of credit, outstanding amount | $ 0 | |
Maximum borrowing capacity | $ 3,100,000,000 | |
Covenant, ratio of indebtedness to net capital, maximum | 0.65 | |
Ratio of indebtedness to net capital | 0.19 | |
Subsequent Event | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 2,500,000,000 | |
Extended maturity | 3 years |
Debt - Debt Redemption (Details
Debt - Debt Redemption (Details) - Senior Unsecured Notes, 9.375%, Due 2022 - Unsecured Debt $ in Millions | May 31, 2022 USD ($) |
Debt Instrument [Line Items] | |
Long-term debt, gross | $ 32 |
Interest rate | 9.375% |
Debt - Long-Term Debt (Details)
Debt - Long-Term Debt (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Outstanding debt | $ 4,000 | |
Long-term debt due within one year | 273 | $ 36 |
Purchase On April 1, 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debt due within one year | $ 200 | |
Interest rate | 2% |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Aug. 03, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2022 | May 04, 2022 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Shares repurchased, value | $ 760 | $ 592 | |||
Stock repurchase program, authorized repurchase amount | $ 2,500 | ||||
Value of stock repurchased for restricted stock award tax obligation | $ 21 | ||||
Share Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Shares repurchased, value | 1,400 | ||||
Stock repurchase program, remaining authorized repurchase amount | $ 2,000 | $ 2,000 | |||
Share Repurchase Program | Subsequent Event | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Shares repurchased, value | $ 282 |
Incentive Based Compensation -
Incentive Based Compensation - Stock Options, Restricted Stock Awards and Restricted Stock Units (Details) | 6 Months Ended |
Jun. 30, 2022 $ / shares shares | |
Number of Shares | |
Outstanding, beginning (in shares) | shares | 4,274,304 |
Granted (in shares) | shares | 0 |
Exercised/Vested (in shares) | shares | (1,842,093) |
Canceled (in shares) | shares | (167,906) |
Outstanding, ending (in shares) | shares | 2,264,305 |
Weighted Average Exercise Price | |
Outstanding, beginning (in dollars per share) | $ / shares | $ 22.13 |
Granted (in dollars per share) | $ / shares | 0 |
Exercised/Vested (in dollars per share) | $ / shares | 14.41 |
Canceled (in dollars per share) | $ / shares | 34.55 |
Outstanding, ending (in dollars per share) | $ / shares | $ 27.48 |
Restricted Stock & Units | |
Number of Shares & Units | |
Outstanding, beginning (in shares) | shares | 5,888,242 |
Granted (in shares) | shares | 1,428,041 |
Exercised/Vested (in shares) | shares | (2,738,788) |
Canceled (in shares) | shares | (104,351) |
Outstanding, ending (in shares) | shares | 4,473,144 |
Weighted Average Grant Date Fair Value | |
Outstanding, beginning (in dollars per share) | $ / shares | $ 10.98 |
Granted (in dollars per share) | $ / shares | 22.89 |
Exercised/Vested (in dollars per share) | $ / shares | 12.01 |
Canceled (in dollars per share) | $ / shares | 13.49 |
Outstanding, ending (in dollars per share) | $ / shares | $ 14.09 |
Incentive Based Compensation _2
Incentive Based Compensation - Narrative (Details) | 6 Months Ended |
Jun. 30, 2022 $ / shares shares | |
Performance Unit - Share Settlement | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 167,043 |
Grant date fair value (in dollars per share) | $ / shares | $ 34.07 |
Performance Unit - Cash Settlement | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 167,043 |
Unit conversion ratio (in shares) | 1 |
Fair value as of period end (in dollars per share) | $ / shares | $ 22.63 |
Defined Benefit Postretiremen_3
Defined Benefit Postretirement Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Amortization: | ||||
Net settlement loss | $ (5) | $ 1 | $ (9) | $ (2) |
Estimated future contributions over the remainder of the current year | 8 | 8 | ||
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 3 | 4 | 7 | 8 |
Interest cost | 2 | 2 | 4 | 4 |
Expected return on plan assets | (3) | (2) | (5) | (4) |
Amortization: | ||||
– prior service credit | (1) | (1) | (3) | (3) |
– actuarial loss | 1 | 1 | 1 | 3 |
Net settlement loss | 0 | 5 | 0 | 5 |
Net periodic benefit costs (credits) | 2 | 9 | 4 | 13 |
Other Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 1 | 1 | 1 | 1 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization: | ||||
– prior service credit | (4) | (4) | (8) | (8) |
– actuarial loss | 0 | 0 | 1 | 1 |
Net settlement loss | 0 | 0 | 0 | 0 |
Net periodic benefit costs (credits) | $ (3) | $ (3) | (6) | $ (6) |
Payment for other postretirement benefits | 5 | |||
Funded Plan | ||||
Amortization: | ||||
Payment for pension benefits | $ 9 |
Reclassifications Out of Accu_3
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Other net periodic benefit (costs) credits | $ 5 | $ (1) | $ 9 | $ 2 | ||
Net interest and other | (54) | (59) | (76) | (72) | ||
Income tax provision (benefit) | 279 | 10 | (238) | 20 | ||
Net income | 966 | $ 1,304 | 16 | $ 97 | 2,270 | 113 |
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 (costs) credits | 5 | 5 | 11 | 11 | ||
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 (costs) credits | (1) | (1) | (2) | (4) | ||
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 (costs) credits | 0 | (5) | 0 | (5) | ||
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Reclassification of de-designated forward interest rate swaps | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Net interest and other | 0 | (30) | 0 | (28) | ||
Income tax provision (benefit) | (1) | 0 | (2) | 0 | ||
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 | $ 3 | $ (31) | $ 7 | $ (26) |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Included in operating activities: | ||
Interest paid | $ 99 | $ 123 |
Income taxes paid to (received from) taxing authorities, net of refunds | 93 | 9 |
Noncash investing activities: | ||
Increase in asset retirement costs | 3 | 38 |
Capital expenditures incurred but not yet paid | $ 116 | $ 85 |
Equity Method Investments - Sch
Equity Method Investments - Schedule of Equity Method Investments (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | $ 528 | $ 450 |
EG Holdings | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 56% | |
Equity method investments | $ 226 | 148 |
Alba Plant LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 52% | |
Equity method investments | $ 166 | 154 |
AMPCO | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 45% | |
Equity method investments | $ 136 | $ 148 |
Equity Method Investments - Sum
Equity Method Investments - Summarized Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Revenues and other income | $ 2,303 | $ 1,143 | $ 4,056 | $ 2,214 | ||
Income (loss) from operations | 1,294 | 105 | 2,099 | 222 | ||
Net income | 966 | $ 1,304 | 16 | $ 97 | 2,270 | 113 |
Consolidated Equity Method Investments | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Revenues and other income | 459 | 246 | 833 | 481 | ||
Income (loss) from operations | 306 | 111 | 535 | 207 | ||
Net income | $ 272 | $ 85 | $ 476 | $ 157 |
Equity Method Investments - Nar
Equity Method Investments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |||||
Revenue from related parties | $ 7 | $ 8 | $ 15 | $ 16 | |
Proceeds from equity method investment | 146 | $ 50 | 200 | $ 81 | |
Due from related parties | 28 | 28 | $ 23 | ||
Due to related parties | $ 6 | $ 6 | $ 20 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 3 Months Ended | |
Jun. 30, 2020 guarantee | Jun. 30, 2022 USD ($) tribe | |
Loss Contingencies [Line Items] | ||
Number of guarantees executed | guarantee | 2 | |
Guarantees recorded | $ 4 | |
Number of affiliated tribes | tribe | 3 | |
Contingent royalty liability | $ 145 | |
Contingent capital and expense receivable, noncurrent | 25 | |
Accounts payable | ||
Loss Contingencies [Line Items] | ||
Contingent royalty liability | 133 | |
Other current liabilities | ||
Loss Contingencies [Line Items] | ||
Contingent royalty liability | 12 | |
Performance of Equatorial Guinea LNG Operations, S.A. | ||
Loss Contingencies [Line Items] | ||
Guarantor obligations, maximum exposure | 91 | |
Performance of Alba Plant LLC. | ||
Loss Contingencies [Line Items] | ||
Guarantor obligations, maximum exposure | $ 25 |