Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 30, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 1-5153 | |
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 $1.00 | |
Trading Symbol | MRO | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 564,035,502 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2024 | |
Amendment Flag | false | |
Entity Central Index Key | 0000101778 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues and other income: | ||
Revenues from contracts with customers | $ 1,538 | $ 1,567 |
Net gain (loss) on commodity derivatives | (24) | 15 |
Income from equity method investments | 39 | 80 |
Net gain on disposal of assets | 0 | 5 |
Other income (expense) | (2) | 13 |
Total revenues and other income | 1,551 | 1,680 |
Costs and expenses: | ||
Production | 221 | 201 |
Shipping, handling and other operating, including related party of $15 and $0 | 169 | 162 |
Exploration | 7 | 15 |
Depreciation, depletion and amortization | 524 | 520 |
Taxes other than income | 96 | 95 |
General and administrative | 86 | 82 |
Total costs and expenses | 1,103 | 1,075 |
Income from operations | 448 | 605 |
Net interest and other | (69) | (82) |
Other net periodic benefit credits | 3 | 3 |
Income before income taxes | 382 | 526 |
Provision for income taxes | 85 | 109 |
Net income | $ 297 | $ 417 |
Net income per share: | ||
Basic (in dollars per share) | $ 0.52 | $ 0.66 |
Diluted (in dollars per share) | $ 0.52 | $ 0.66 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 576 | 628 |
Diluted (in shares) | 576 | 629 |
Consolidated Statements of In_2
Consolidated Statements of Income (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Shipping, handling and other operating, including related party | $ 169 | $ 162 |
Related Party | ||
Shipping, handling and other operating, including related party | $ 15 | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 297 | $ 417 |
Other comprehensive loss, net of tax | ||
Change in actuarial gain and other for postretirement and postemployment plans | (4) | (5) |
Change in derivative hedges unrecognized gain | 2 | (2) |
Other comprehensive loss | (2) | (7) |
Comprehensive income | $ 295 | $ 410 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 49 | $ 155 |
Receivables, net | 1,276 | 1,152 |
Inventories | 179 | 186 |
Other current assets | 53 | 76 |
Total current assets | 1,557 | 1,569 |
Equity method investments | 472 | 433 |
Property, plant and equipment, net of accumulated depreciation, depletion and amortization of $26,420 and $25,914 | 17,303 | 17,213 |
Other noncurrent assets | 336 | 360 |
Total assets | 19,668 | 19,575 |
Current liabilities: | ||
Accounts payable | 1,514 | 1,364 |
Commercial paper | 450 | 450 |
Payroll and benefits payable | 40 | 70 |
Accrued taxes | 135 | 126 |
Other current liabilities | 310 | 312 |
Long-term debt due within one year | 400 | 1,600 |
Total current liabilities | 2,849 | 3,922 |
Long-term debt | 4,578 | 3,378 |
Deferred tax liabilities | 462 | 419 |
Defined benefit postretirement plan obligations | 93 | 93 |
Asset retirement obligations | 329 | 326 |
Deferred credits and other liabilities | 213 | 232 |
Total liabilities | 8,524 | 8,370 |
Commitments and contingencies (Note 17) | ||
Stockholders’ Equity | ||
Preferred stock – no shares issued or outstanding (no par value, 26 million shares authorized) | 0 | 0 |
Common stock: | ||
Issued – 937 million shares (par value $1 per share, 1.925 billion shares authorized at March 31, 2024 and December 31, 2023) | 937 | 937 |
Held in treasury, at cost – 369 million shares and 360 million shares | (9,201) | (8,952) |
Additional paid-in capital | 7,129 | 7,172 |
Retained earnings | 12,199 | 11,966 |
Accumulated other comprehensive income | 80 | 82 |
Total stockholders’ equity | 11,144 | 11,205 |
Total liabilities and stockholders’ equity | $ 19,668 | $ 19,575 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Property, plant and equipment, accumulated depreciation | $ 26,420 | $ 25,914 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Preferred stock, shares authorized (in shares) | 26,000,000 | 26,000,000 |
Common stock, shares issued (in shares) | 937,000,000 | 937,000,000 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 1,925,000,000 | 1,925,000,000 |
Held in treasury, shares (in shares) | 369,000,000 | 360,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating activities: | ||
Net income | $ 297 | $ 417 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 524 | 520 |
Exploratory dry well costs and unproved property impairments | 6 | 14 |
Net gain on disposal of assets | 0 | (5) |
Deferred income taxes | 43 | 85 |
Unrealized (gain) loss on derivative instruments, net | 24 | (2) |
Pension and other post retirement benefits, net | (3) | (7) |
Stock-based compensation | 11 | 10 |
Equity method investments, net | (39) | (80) |
Changes in: | ||
Current receivables | (120) | (86) |
Inventories | 6 | (12) |
Current accounts payable and accrued liabilities | 12 | 30 |
Other current assets and liabilities | (2) | (9) |
All other operating, net | (2) | (10) |
Net cash provided by operating activities | 757 | 865 |
Investing activities: | ||
Capital expenditures | (603) | (601) |
Change in capital accrual | 117 | 69 |
Acquisitions, net of cash acquired | (4) | 11 |
Disposal of assets, net of cash transferred to the buyer | 0 | (1) |
All other investing, net | 1 | 0 |
Net cash used in investing activities | (489) | (522) |
Financing activities: | ||
Borrowings | 1,200 | 0 |
Debt repayments | (1,200) | (70) |
Proceeds from revolving credit facility | 50 | 175 |
Repayments of revolving credit facility | (43) | (175) |
Shares repurchased under buyback programs | (285) | (334) |
Dividends paid | (64) | (63) |
Withholding tax on stock-based incentive awards | (18) | (30) |
All other financing, net | (14) | (2) |
Net cash used in financing activities | (374) | (499) |
Net decrease in cash and cash equivalents | (106) | (156) |
Cash and cash equivalents at beginning of period | 155 | 334 |
Cash and cash equivalents at end of period | $ 49 | $ 178 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Millions | Total | Preferred Stock | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income |
Beginning balance at Dec. 31, 2022 | $ 11,397 | $ 0 | $ 937 | $ (7,512) | $ 7,203 | $ 10,663 | $ 106 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Shares repurchased under buyback programs | (334) | (334) | |||||
Excise tax on shares repurchased | (3) | (3) | |||||
Stock-based compensation | (19) | 35 | (54) | ||||
Net income | 417 | 417 | |||||
Other comprehensive loss | (7) | (7) | |||||
Dividends paid | (63) | (63) | |||||
Ending balance at Mar. 31, 2023 | 11,388 | 0 | 937 | (7,814) | 7,149 | 11,017 | 99 |
Beginning balance at Dec. 31, 2023 | 11,205 | 0 | 937 | (8,952) | 7,172 | 11,966 | 82 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Shares repurchased under buyback programs | (285) | (285) | |||||
Excise tax on shares repurchased | (2) | (2) | |||||
Stock-based compensation | (5) | 38 | (43) | ||||
Net income | 297 | 297 | |||||
Other comprehensive loss | (2) | (2) | |||||
Dividends paid | (64) | (64) | |||||
Ending balance at Mar. 31, 2024 | $ 11,144 | $ 0 | $ 937 | $ (9,201) | $ 7,129 | $ 12,199 | $ 80 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends paid (in dollars per share) | $ 0.11 | $ 0.10 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2024 | |
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 2023 Annual Report on Form 10-K. The results of operations for the first quarter of 2024 are not necessarily indicative of the results to be expected for the full year. |
Accounting Standards
Accounting Standards | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Accounting Standards | Accounting Standards Accounting Standards Updates Adopted No accounting standards were adopted in the first quarter of 2024 that had a material impact on our consolidated financial statements. Accounting Standards Updates Not Yet Adopted There were no issued but pending accounting standards expected to have a material impact on our consolidated financial statements. |
Income and Dividends per Common
Income and Dividends per Common Share | 3 Months Ended |
Mar. 31, 2024 | |
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 and performance units in all periods, provided the effect is not antidilutive. The per share calculations below exclude 1 million of antidilutive stock options and performance units for both the three months ended March 31, 2024 and 2023: Three Months Ended March 31, (In millions, except per share data) 2024 2023 Net income $ 297 $ 417 Weighted average common shares outstanding 576 628 Effect of dilutive securities — 1 Weighted average common shares, diluted 576 629 Net income per share: Basic $ 0.52 $ 0.66 Diluted $ 0.52 $ 0.66 Dividends per share $ 0.11 $ 0.10 |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2024 | |
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, including LNG, under spot and term agreements with our customers in the United States and Equatorial Guinea. As of March 31, 2024 and December 31, 2023, receivables from contracts with customers, included in receivables, less reserves for credit losses, were $972 million and $886 million, respectively. The following tables present our revenues from contracts with customers disaggregated by product type and geographic areas for the three months ended March 31: United States Three Months Ended March 31, 2024 (In millions) Eagle Ford Bakken Permian Oklahoma Other U.S. Total Crude oil and condensate $ 439 $ 465 $ 199 $ 65 $ 12 $ 1,180 NGLs 58 41 20 32 — 151 Natural gas 33 16 7 29 1 86 Other 1 — — — 4 5 Revenues from contracts with customers $ 531 $ 522 $ 226 $ 126 $ 17 $ 1,422 Three Months Ended March 31, 2023 (In millions) Eagle Ford Bakken Permian Oklahoma Other U.S. Total Crude oil and condensate $ 495 $ 431 $ 170 $ 78 $ 11 $ 1,185 NGLs 71 37 22 39 — 169 Natural gas 56 35 11 36 1 139 Other 2 — — — 8 10 Revenues from contracts with customers $ 624 $ 503 $ 203 $ 153 $ 20 $ 1,503 International (E.G.) Three Months Ended March 31, (In millions) 2024 2023 Crude oil and condensate $ 61 $ 57 NGLs 1 1 Natural gas, sold as gas 2 5 Natural gas, sold as LNG 51 — Natural gas, total 53 5 Other 1 1 Revenues from contracts with customers $ 116 $ 64 |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We have two reportable operating segments. Both of these segments are organized and managed based upon geographic location and the nature of the products and services offered. • United States (“U.S.”) – explores for, produces and markets crude oil and condensate, NGLs and natural gas in the United States; and • International (“Int’l”) – explores for, produces and markets crude oil and condensate, NGLs and natural gas outside of the United States as well as produces and markets products manufactured from natural gas, such as LNG and methanol, in Equatorial Guinea (“E.G.”) Segment income represents income that excludes certain items not allocated to our operating segments, net of income taxes. A portion of our corporate and operations general and administrative support costs are not allocated to the operating segments. These unallocated costs primarily consist of employment costs (including pension effects), professional services, facilities and other costs associated with corporate and operations support activities. Additionally, items which affect comparability such as: gains or losses on dispositions, impairments of proved and certain unproved properties, dry wells, changes in our valuation allowance, unrealized gains or losses on commodity and interest rate derivative instruments, effects of pension settlements and curtailments, expensed transaction costs for business combinations or other items (as determined by the chief operating decision maker (“CODM”)) are not allocated to operating segments. Three Months Ended March 31, 2024 (In millions) U.S. Int’l Not Allocated to Segments Total Revenues from contracts with customers $ 1,422 $ 116 $ — $ 1,538 Net loss on commodity derivatives — — (24) (b) (24) Income from equity method investments — 39 — 39 Other income (expense) (4) 1 1 (2) Less costs and expenses: Production 201 20 — 221 Shipping, handling and other operating, including related party 149 17 3 169 Exploration 7 — — 7 Depreciation, depletion and amortization 500 10 14 524 Taxes other than income 96 — — 96 General and administrative 38 3 45 86 Net interest and other — — 69 69 Other net periodic benefit costs — — (3) (3) Income tax provision (benefit) 93 24 (32) 85 Segment income (loss) $ 334 $ 82 $ (119) $ 297 Total assets $ 18,629 $ 918 $ 121 $ 19,668 Capital expenditures (a) $ 598 $ 1 $ 4 $ 603 (a) Includes accruals and excludes acquisitions. (b) Unrealized loss on commodity derivative instruments (See Note 8 ). Three Months Ended March 31, 2023 (In millions) U.S. Int’l Not Allocated to Segments Total Revenues from contracts with customers $ 1,503 $ 64 $ — $ 1,567 Net gain on commodity derivatives 13 — 2 (b) 15 Income from equity method investments — 80 — 80 Net gain on disposal of assets — — 5 5 Other income 11 1 1 13 Less costs and expenses: Production 178 23 — 201 Shipping, handling and other operating, including related party 159 3 — 162 Exploration 5 — 10 (c) 15 Depreciation, depletion and amortization 505 12 3 520 Taxes other than income 97 — (2) 95 General and administrative 35 3 44 82 Net interest and other — — 82 82 Other net periodic benefit costs — — (3) (3) Income tax provision (benefit) 123 15 (29) 109 Segment income (loss) $ 425 $ 89 $ (97) $ 417 Total assets $ 18,696 $ 1,148 $ 168 $ 20,012 Capital expenditures (a) $ 597 $ 2 $ 2 $ 601 (a) Includes accruals and excludes acquisitions. (b) Unrealized gain on commodity derivative instruments (See Note 8 ). (c) Includes $10 million of dry well expense associated with wells in Permian. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Effective Tax Rate The effective income tax rate is influenced by a variety of factors including the geographic and functional sources of income and the relative magnitude of these sources of income. The difference between the total provision and the sum of the amounts allocated to segments is reported in the “Not Allocated to Segments” column of the tables in Note 5 . For the three months ended March 31, 2024 and 2023, our effective income tax rates were as follows: Three Months Ended March 31, 2024 2023 Effective income tax rate 22 % 21 % In August 2022, the President signed the Inflation Reduction Act of 2022 (“IRA”) into law. The IRA enacted various income tax provisions, including a 15% corporate book minimum tax. The corporate book minimum tax, which became effective on January 1, 2023, applies to corporations with an average annual adjusted financial statement income that exceeds $1 billion for the preceding three years. Under current law and guidance, we are subject to the corporate book minimum tax in 2024. The U.S. Department of the Treasury and the IRS are expected to release further regulations and interpretive guidance implementing the legislation contained in the IRA. As this guidance is issued, we will continue to evaluate and assess the impact the IRA may have on our current and future period income taxes. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt Term Loan Facility In November 2022, we entered into a term credit agreement, which provides for a two-year $1.5 billion term loan facility (“Term Loan Facility”) and we borrowed the full amount thereunder in December 2022. During the fourth quarter of 2023, we repaid $300 million of outstanding borrowings. On March 28, 2024, we fully repaid the $1.2 billion outstanding balance under our Term Loan Facility by utilizing the net proceeds received from the senior notes issued during the first quarter of 2024 (see Debt Issuance below). Revolving Credit Facility We have an unsecured revolving credit facility (“Revolving Credit Facility”) with a borrowing capacity of $2.6 billion. We have the option to increase the commitment amount by up to an additional $939 million, subject to the consent of any increasing lenders. The Revolving Credit Facility matures on July 28, 2027. At March 31, 2024, we had an immaterial outstanding balance under our Revolving Credit Facility. The Revolving Credit Facility includes a covenant requiring our total debt to total capitalization ratio not to exceed 65% as of the last day of each fiscal quarter. In the event of a default, the lenders holding more than half of the commitments may terminate the commitments under the Revolving Credit Facility and require the immediate repayment of all outstanding borrowings and the cash collateralization of all outstanding letters of credit under the Revolving Credit Facility. As of March 31, 2024, we were in compliance with this covenant with a ratio of 25%. Commercial Paper Program Pursuant to our commercial paper program, we may issue unsecured notes in a maximum aggregate face amount of $2.5 billion outstanding at any time, with maturities up to 365 days from the date of issuance. Our $2.5 billion commercial paper program is backed by our $2.6 billion Revolving Credit Facility. We utilize our commercial paper program to fund various short-term working capital requirements. As of March 31, 2024, we had $450 million of outstanding commercial paper maturing at various dates with a weighted average interest rate of 5.90%. Debt issuance On March 28, 2024, we completed a public offering of $1.2 billion aggregate principal amount of unsecured senior notes consisting of $600 million aggregate principal amount of 5.30% senior notes due April 1, 2029 (“2029 Notes”) and $600 million aggregate principal amount of 5.70% senior notes due April 1, 2034 (“2034 Notes”). Interest on the senior notes is payable semi-annually beginning October 1, 2024. We may redeem some or all of the senior notes at any time at the applicable redemption price, plus accrued interest, if any. Net proceeds received totaled $1.2 billion. Debt issuance costs of $12 million were recorded as deferred financing costs within long-term debt in our consolidated balance sheets and are being amortized to interest expense in our consolidated statement of income over the term of each note. The net proceeds, together with cash on hand, were used to repay $1.2 billion of outstanding borrowings under our Term Loan Facility. Debt redemption In March 2023, we redeemed the $70 million 8.5% Senior Notes in connection with their maturity date. Long-term debt At March 31, 2024, we had $5.0 billion of total long-term debt outstanding. Long-term debt due within one year consists of $200 million 2.10% of sub-series 2017A-2 bonds and $200 million 2.125% of sub-series 2017B-1 bonds, both of which feature a mandatory put on July 1, 2024. Refer to our 2023 Annual Report on Form 10-K for a listing of our long-term debt maturities. |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives We may use derivatives to manage a portion of our exposure to commodity price risk, commodity locational risk and interest rate risk. For further information regarding the fair value measurement of derivative instruments, see Note 9 . All of our commodity derivatives and interest rate derivatives are subject to enforceable master netting arrangements or similar agreements under which we report net amounts. The following tables present the gross fair values of our open derivative instruments and the reported net amounts along with their locations in our consolidated balance sheets: March 31, 2024 (In millions) Asset Liability Net Asset Balance Sheet Location Not Designated as Hedges Commodity $ 1 $ 1 $ — Other current assets Total Not Designated as Hedges $ 1 $ 1 $ — Cash Flow Hedges Interest Rate $ 9 $ — $ 9 Other current assets Interest Rate 10 — 10 Other noncurrent assets Total Designated Hedges $ 19 $ — $ 19 Total $ 20 $ 1 $ 19 December 31, 2023 (In millions) Asset Liability Net Asset Balance Sheet Location Not Designated as Hedges Commodity $ 24 $ — $ 24 Other current assets Total Not Designated as Hedges $ 24 $ — $ 24 Cash Flow Hedges Interest Rate $ 9 $ — $ 9 Other current assets Interest Rate 9 — 9 Other noncurrent assets Total Designated Hedges $ 18 $ — $ 18 Total $ 42 $ — $ 42 Derivatives Not Designated as Hedges Commodity Derivatives We have entered into crude oil derivatives indexed to their respective indices as noted in the table below, related to a portion of our forecasted U.S. sales through 2024. These derivatives are three-way collars. Three-way collars consist of a sold call (ceiling), a purchased put (floor) and a sold put. The ceiling price is the maximum we will receive for the contract volumes; the floor is the minimum price we will receive, unless the market price falls below the sold put strike price. In this case, we receive the NYMEX WTI price plus the difference between the floor and the sold put price. These crude oil derivatives were not designated as hedges. The following table sets forth outstanding derivative contracts as of March 31, 2024, and the weighted average prices for those contracts: 2024 Second Quarter Third Quarter Fourth Quarter Crude Oil NYMEX WTI Three-Way Collars Volume (Bbls/day) 60,000 40,000 40,000 Weighted average price per Bbl: Ceiling $ 97.44 $ 96.12 $ 96.12 Floor $ 65.83 $ 65.00 $ 65.00 Sold put $ 50.83 $ 50.00 $ 50.00 The following table sets forth outstanding derivative contracts as of April 30, 2024, with their weighted average prices, and is inclusive of activities that occurred subsequent to March 31, 2024: 2024 2025 Second Quarter Third Quarter Fourth Quarter First Quarter Second Quarter Third Quarter Fourth Quarter Crude Oil NYMEX WTI Three-Way Collars Volume (Bbls/day) 60,000 50,000 50,000 — — — — Weighted average price per Bbl: Ceiling $ 97.44 $ 95.95 $ 95.95 $ — $ — $ — $ — Floor $ 65.83 $ 65.00 $ 65.00 $ — $ — $ — $ — Sold put $ 50.83 $ 50.00 $ 50.00 $ — $ — $ — $ — Natural Gas Henry Hub Two-Way Collars Volume (MMBtu/day) — — — 100,000 100,000 100,000 100,000 Weighted average price per MMBtu: Ceiling $ — $ — $ — $ 5.77 $ 5.77 $ 5.77 $ 5.77 Floor $ — $ — $ — $ 2.50 $ 2.50 $ 2.50 $ 2.50 The unrealized gain (loss) and realized gain impact of our commodity derivative instruments appears in the table below and is reflected in net gain (loss) on commodity derivatives in the consolidated statements of income: Three Months Ended March 31, (In millions) 2024 2023 Unrealized gain (loss) on derivative instruments, net $ (24) $ 2 Realized gain on derivative instruments, net (a) $ — $ 13 (a) During the first quarter of 2024, we had no settled derivative positions. During the first quarter of 2023, net cash received for settled derivative positions was $10 million. Derivatives Designated as Cash Flow Hedges During 2019, we entered into forward starting interest rate swaps with a maturity date of September 9, 2026 to hedge variations in cash flows related to the interest rate component of future lease payments of our Houston office. As of March 31, 2024 and December 31, 2023, the notional amount of open interest rate swaps for the Houston office was $295 million. The weighted average secured overnight financing rate (“SOFR”) for the swaps was 1.43% as of both March 31, 2024 and December 31, 2023. During the three months ended March 31, 2024, net cash received for the settled interest rate swap positions was $3 million. As of March 31, 2024, we expect to reclassify a $10 million gain from accumulated other comprehensive income into our consolidated statements of income over the next twelve months. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair Values – Recurring The following tables present assets and liabilities accounted for at fair value on a recurring basis as of March 31, 2024 and December 31, 2023 by hierarchy level: March 31, 2024 (In millions) Level 1 Level 2 Level 3 Total Derivative instruments, assets Commodity (a) $ — $ 1 $ — $ 1 Interest rate - designated as cash flow hedges — 19 — 19 Derivative instruments, assets $ — $ 20 $ — $ 20 Derivative instruments, liabilities Commodity (a) $ — $ (1) $ — $ (1) Derivative instruments, liabilities $ — $ (1) $ — $ (1) Total $ — $ 19 $ — $ 19 December 31, 2023 (In millions) Level 1 Level 2 Level 3 Total Derivative instruments, assets Commodity (a) $ — $ 24 $ — $ 24 Interest rate - designated as cash flow hedges — 18 — 18 Derivative instruments, assets $ — $ 42 $ — $ 42 (a) Derivative instruments are recorded on a net basis in our consolidated balance sheet. See Note 8 . As of March 31, 2024, our commodity derivatives include three-way collars. These instruments are measured at fair value using either a Black-Scholes or a modified Black-Scholes Model. For three-way collars, inputs to the models include commodity prices and implied volatility and are categorized as Level 2 because predominantly all assumptions and inputs are observable in active markets throughout the term of the instruments. The forward starting interest rate swaps are measured at fair value with a market approach using actionable broker quotes, which are Level 2 inputs. See Note 8 for details on the forward starting interest rate swaps. Fair Values – Financial Instruments Our current assets and liabilities include financial instruments, the most significant of which are receivables, commercial paper borrowings, the current portion of our long-term debt and payables. We believe the carrying values of our receivables, commercial paper borrowings 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, commercial paper borrowings, payables and derivative financial instruments, and their reported fair values by individual balance sheet line item at March 31, 2024 and December 31, 2023: March 31, 2024 December 31, 2023 (In millions) Fair Value Carrying Amount Fair Value Carrying Amount Financial assets Other noncurrent assets $ 9 $ 29 $ 9 $ 27 Total financial assets $ 9 $ 29 $ 9 $ 27 Financial liabilities Other current liabilities $ 80 $ 127 $ 80 $ 126 Long-term debt, including current portion (a) 4,987 5,003 4,961 4,997 Deferred credits and other liabilities 70 72 70 71 Total financial liabilities $ 5,137 $ 5,202 $ 5,111 $ 5,194 (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. |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment (In millions) March 31, 2024 December 31, 2023 United States $ 17,004 $ 16,905 International 243 252 Corporate 56 56 Net property, plant and equipment $ 17,303 $ 17,213 As of March 31, 2024 and December 31, 2023, we had no exploratory well costs capitalized greater than one year related to suspended wells. |
Asset Retirement Obligations
Asset Retirement Obligations | 3 Months Ended |
Mar. 31, 2024 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Asset Retirement Obligations Asset retirement obligations primarily consist of estimated costs to remove, dismantle and restore land or seabed at the end of oil and gas production operations. Changes in asset retirement obligations were as follows: March 31, (In millions) 2024 2023 Beginning balance as of January 1 $ 340 $ 340 Incurred liabilities, including acquisitions 2 1 Settled liabilities, including dispositions (2) (9) Accretion expense (included in depreciation, depletion and amortization) 4 4 Revisions of estimates 2 5 Ending balance as of March 31, total $ 346 $ 341 Ending balance as of March 31, short-term $ 17 $ 45 |
Equity Method Investments
Equity Method Investments | 3 Months Ended |
Mar. 31, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investments During the periods ended March 31, 2024 and December 31, 2023, our equity method investees were considered related parties. Our investment in our equity method investees are summarized in the following table: (In millions) Ownership as of March 31, 2024 March 31, 2024 December 31, 2023 EG LNG (a) 56% $ 132 $ 118 Alba Plant LLC (b) 52% 176 153 AMPCO (c) 45% 164 162 Total $ 472 $ 433 (a) EG LNG is engaged in LNG production activity. (b) Alba Plant LLC processes LPG. (c) AMPCO is engaged in methanol production activity. Summarized, 100% combined financial information for equity method investees is as follows: Three Months Ended March 31, (In millions) 2024 2023 Income data: Revenues and other income $ 211 $ 306 Income from operations 101 159 Net income $ 84 $ 134 Revenues from related parties were $2 million for the three months ended March 31, 2024, which primarily related to Alba Plant LLC and AMPCO. Revenues from related parties were $6 million for the three months ended March 31, 2023, with the majority related to EG LNG. As a result of the agreement that took effect on January 1, 2024, related party shipping, handling and other operating expense presented on the face of the consolidated statements of income represents compensation to EG LNG for liquefaction, storage and product handling services. Cash received from equity investees is classified as dividends or return of capital on the Consolidated Statements of Cash Flows. Dividends from equity method investees are reflected in the Operating activities section in Equity Method Investments, net while return of capital is reflected in the Investing activities section. Our equity investees did not distribute dividends or return of capital during the three months ended March 31, 2024 and 2023. Current receivables from related parties were $23 million and $24 million at March 31, 2024 and December 31, 2023, respectively, which primarily related to EG LNG and Alba Plant LLC in both periods. Payables to related parties were $24 million and $6 million at March 31, 2024 and December 31, 2023, respectively, with the majority related to EG LNG in both periods. Related Party Lease Transaction Our wholly owned subsidiary, MEGPL, is a lessor for residential housing in E.G., which is occupied by EG LNG. 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 2024 $ 5 2025 6 2026 6 2027 6 2028 6 Thereafter 35 Total undiscounted cash flows $ 64 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Our Board of Directors has authorized a share repurchase program. During the first three months of 2024, we repurchased 11 million shares of our common stock pursuant to the share repurchase program at a cost of $285 million. Our remaining share repurchase authorization was approximately $2.0 billion at March 31, 2024. Purchases under our repurchase program are made at our discretion and may be in either open market transactions, including block purchases, or in privately negotiated transactions using cash on hand, cash generated from operations or proceeds from potential asset sales. This program may be changed based upon our financial condition or changes in market conditions and is subject to termination prior to completion. Subsequent to the quarter, we repurchased approximately $110 million of shares of our common stock through May 1, 2024. |
Incentive Based Compensation
Incentive Based Compensation | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Incentive Based Compensation | Incentive Based Compensation Stock options and restricted stock units The following table presents a summary of activity for the first three months of 2024: 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, 2023 1,004,304 $ 31.38 3,514,405 $ 22.07 Granted — — 2,062,612 24.60 Exercised/Vested — — (1,663,913) 19.18 Canceled (499,545) 33.33 (45,300) 23.00 Outstanding at March 31, 2024 504,759 $ 29.44 3,867,804 $ 24.65 Stock-based performance unit awards During the first three months of 2024, we granted 248,572 stock-based performance units to eligible officers, which are settled in shares. The grant date fair value per unit was $28.21. During the first three months of 2024, we stock settled the units related to the 2021 grant. At March 31, 2024, there were 638,079 outstanding stock-based performance units to be settled in shares to officers. During the first three months of 2024, we also granted 248,572 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 $28.45 as of March 31, 2024. During the first three months of 2024, we also cash settled the units related to the 2022 grant. At March 31, 2024, there were 471,036 units outstanding of the stock-based performance unit awards to be settled in cash to officers. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Crude oil, NGLs and natural gas, including LNG, are recorded at weighted average cost and carried at the lower of cost or net realizable value. Supplies and other items consist principally of tubular goods and equipment which are valued at weighted average cost and reviewed periodically for obsolescence or impairment when market conditions indicate. (In millions) March 31, 2024 December 31, 2023 Crude oil, NGLs and natural gas, including LNG $ 12 $ 14 Supplies and other items 167 172 Inventories $ 179 $ 186 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2024 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Three Months Ended March 31, (In millions) 2024 2023 Included in operating activities: Interest paid $ 73 $ 85 Income taxes paid, net of refunds $ 8 $ 6 Noncash investing activities: Increase in asset retirement costs $ 4 $ 6 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Various groups, including the State of North Dakota and the Mandan, Hidatsa and Arikara Nation or MHA Nation, also known as the Three Affiliated Tribes of the Fort Berthold Indian Reservation (the “Three Affiliated Tribes”) represented by the Bureau of Indian Affairs (the “BIA”), have been involved in a dispute regarding the ownership of certain lands underlying the Missouri River and Little Missouri River (the “Disputed Land”) from which we currently produce. As a result, as of March 31, 2024, we have a $123 million current liability in suspended royalty and working interest revenue, including interest, of which $105 million was included within accounts payable and $18 million related to accrued interest was included within other current liabilities on our consolidated balance sheet. Additionally, we have a long-term receivable of $27 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 in recent 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 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, the State of North Dakota, or a court. 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. We have received Notices of Violation (“NOVs”) from the EPA related to alleged violations of the Clean Air Act with respect to our operations on the Fort Berthold Indian Reservation between 2015 and 2019. We continue to actively negotiate a draft consent decree with the EPA and Department of Justice. The resolution of the enforcement action will likely include monetary sanctions, for which we maintain an updated accrual as matters progress, and implementation of both environmental mitigation projects and injunctive terms, which would increase both our development costs and operating costs. There remains uncertainty as to the ultimate result of this matter and it is possible the result could be materially different from our expectations and our accrual. We have received NOVs from the EPA relating to alleged Clean Air Act violations following flyovers conducted in 2020 and 2022 over certain of our oil and gas facilities in New Mexico. The notices involve alleged emission and permitting violations. We initiated discussions with the EPA to resolve these matters. At this time, we are unable to estimate the potential loss associated with these matters, however, it is reasonably possible that resolution of these matters may result in a fine or penalty in excess of $300,000. We have incurred and will continue to incur capital, operating and maintenance and remediation expenditures as a result of environmental laws and regulations. If these expenditures, as with all costs, are not ultimately offset by the prices we receive for our products and services, our operating results will be adversely affected. We believe that substantially all of our competitors must comply with similar environmental laws and regulations. However, the specific impact on each competitor may vary depending on a number of factors, including the age and location of its operating facilities, marketing areas and production processes. These laws generally provide for control of pollutants released into the environment and require responsible parties to undertake remediation of hazardous waste disposal sites. Penalties may be imposed for noncompliance. At March 31, 2024, accrued liabilities for remediation relating to environmental laws and regulations were not material. It is not presently possible to estimate the ultimate amount of all remediation costs that might be incurred or the penalties that may be imposed. 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. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net income | $ 297 | $ 417 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
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 2023 Annual Report on Form 10-K. The results of operations for the first quarter of 2024 are not necessarily indicative of the results to be expected for the full year. |
Accounting Standards Updates Adopted and Not Yet Adopted | Accounting Standards Updates Adopted No accounting standards were adopted in the first quarter of 2024 that had a material impact on our consolidated financial statements. Accounting Standards Updates Not Yet Adopted There were no issued but pending accounting standards expected to have a material impact on our consolidated financial statements. |
Income and Dividends per Comm_2
Income and Dividends per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Income (Loss) Per Share, Basic and Diluted | The per share calculations below exclude 1 million of antidilutive stock options and performance units for both the three months ended March 31, 2024 and 2023: Three Months Ended March 31, (In millions, except per share data) 2024 2023 Net income $ 297 $ 417 Weighted average common shares outstanding 576 628 Effect of dilutive securities — 1 Weighted average common shares, diluted 576 629 Net income per share: Basic $ 0.52 $ 0.66 Diluted $ 0.52 $ 0.66 Dividends per share $ 0.11 $ 0.10 |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following tables present our revenues from contracts with customers disaggregated by product type and geographic areas for the three months ended March 31: United States Three Months Ended March 31, 2024 (In millions) Eagle Ford Bakken Permian Oklahoma Other U.S. Total Crude oil and condensate $ 439 $ 465 $ 199 $ 65 $ 12 $ 1,180 NGLs 58 41 20 32 — 151 Natural gas 33 16 7 29 1 86 Other 1 — — — 4 5 Revenues from contracts with customers $ 531 $ 522 $ 226 $ 126 $ 17 $ 1,422 Three Months Ended March 31, 2023 (In millions) Eagle Ford Bakken Permian Oklahoma Other U.S. Total Crude oil and condensate $ 495 $ 431 $ 170 $ 78 $ 11 $ 1,185 NGLs 71 37 22 39 — 169 Natural gas 56 35 11 36 1 139 Other 2 — — — 8 10 Revenues from contracts with customers $ 624 $ 503 $ 203 $ 153 $ 20 $ 1,503 International (E.G.) Three Months Ended March 31, (In millions) 2024 2023 Crude oil and condensate $ 61 $ 57 NGLs 1 1 Natural gas, sold as gas 2 5 Natural gas, sold as LNG 51 — Natural gas, total 53 5 Other 1 1 Revenues from contracts with customers $ 116 $ 64 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Three Months Ended March 31, 2024 (In millions) U.S. Int’l Not Allocated to Segments Total Revenues from contracts with customers $ 1,422 $ 116 $ — $ 1,538 Net loss on commodity derivatives — — (24) (b) (24) Income from equity method investments — 39 — 39 Other income (expense) (4) 1 1 (2) Less costs and expenses: Production 201 20 — 221 Shipping, handling and other operating, including related party 149 17 3 169 Exploration 7 — — 7 Depreciation, depletion and amortization 500 10 14 524 Taxes other than income 96 — — 96 General and administrative 38 3 45 86 Net interest and other — — 69 69 Other net periodic benefit costs — — (3) (3) Income tax provision (benefit) 93 24 (32) 85 Segment income (loss) $ 334 $ 82 $ (119) $ 297 Total assets $ 18,629 $ 918 $ 121 $ 19,668 Capital expenditures (a) $ 598 $ 1 $ 4 $ 603 (a) Includes accruals and excludes acquisitions. (b) Unrealized loss on commodity derivative instruments (See Note 8 ). Three Months Ended March 31, 2023 (In millions) U.S. Int’l Not Allocated to Segments Total Revenues from contracts with customers $ 1,503 $ 64 $ — $ 1,567 Net gain on commodity derivatives 13 — 2 (b) 15 Income from equity method investments — 80 — 80 Net gain on disposal of assets — — 5 5 Other income 11 1 1 13 Less costs and expenses: Production 178 23 — 201 Shipping, handling and other operating, including related party 159 3 — 162 Exploration 5 — 10 (c) 15 Depreciation, depletion and amortization 505 12 3 520 Taxes other than income 97 — (2) 95 General and administrative 35 3 44 82 Net interest and other — — 82 82 Other net periodic benefit costs — — (3) (3) Income tax provision (benefit) 123 15 (29) 109 Segment income (loss) $ 425 $ 89 $ (97) $ 417 Total assets $ 18,696 $ 1,148 $ 168 $ 20,012 Capital expenditures (a) $ 597 $ 2 $ 2 $ 601 (a) Includes accruals and excludes acquisitions. (b) Unrealized gain on commodity derivative instruments (See Note 8 ). (c) Includes $10 million of dry well expense associated with wells in Permian. |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | For the three months ended March 31, 2024 and 2023, our effective income tax rates were as follows: Three Months Ended March 31, 2024 2023 Effective income tax rate 22 % 21 % |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in the Consolidated Balance Sheets | The following tables present the gross fair values of our open derivative instruments and the reported net amounts along with their locations in our consolidated balance sheets: March 31, 2024 (In millions) Asset Liability Net Asset Balance Sheet Location Not Designated as Hedges Commodity $ 1 $ 1 $ — Other current assets Total Not Designated as Hedges $ 1 $ 1 $ — Cash Flow Hedges Interest Rate $ 9 $ — $ 9 Other current assets Interest Rate 10 — 10 Other noncurrent assets Total Designated Hedges $ 19 $ — $ 19 Total $ 20 $ 1 $ 19 December 31, 2023 (In millions) Asset Liability Net Asset Balance Sheet Location Not Designated as Hedges Commodity $ 24 $ — $ 24 Other current assets Total Not Designated as Hedges $ 24 $ — $ 24 Cash Flow Hedges Interest Rate $ 9 $ — $ 9 Other current assets Interest Rate 9 — 9 Other noncurrent assets Total Designated Hedges $ 18 $ — $ 18 Total $ 42 $ — $ 42 The unrealized gain (loss) and realized gain impact of our commodity derivative instruments appears in the table below and is reflected in net gain (loss) on commodity derivatives in the consolidated statements of income: Three Months Ended March 31, (In millions) 2024 2023 Unrealized gain (loss) on derivative instruments, net $ (24) $ 2 Realized gain on derivative instruments, net (a) $ — $ 13 (a) During the first quarter of 2024, we had no settled derivative positions. During the first quarter of 2023, net cash received for settled derivative positions was $10 million. |
Schedule of Notional Amounts of Outstanding Derivative Positions | The following table sets forth outstanding derivative contracts as of March 31, 2024, and the weighted average prices for those contracts: 2024 Second Quarter Third Quarter Fourth Quarter Crude Oil NYMEX WTI Three-Way Collars Volume (Bbls/day) 60,000 40,000 40,000 Weighted average price per Bbl: Ceiling $ 97.44 $ 96.12 $ 96.12 Floor $ 65.83 $ 65.00 $ 65.00 Sold put $ 50.83 $ 50.00 $ 50.00 The following table sets forth outstanding derivative contracts as of April 30, 2024, with their weighted average prices, and is inclusive of activities that occurred subsequent to March 31, 2024: 2024 2025 Second Quarter Third Quarter Fourth Quarter First Quarter Second Quarter Third Quarter Fourth Quarter Crude Oil NYMEX WTI Three-Way Collars Volume (Bbls/day) 60,000 50,000 50,000 — — — — Weighted average price per Bbl: Ceiling $ 97.44 $ 95.95 $ 95.95 $ — $ — $ — $ — Floor $ 65.83 $ 65.00 $ 65.00 $ — $ — $ — $ — Sold put $ 50.83 $ 50.00 $ 50.00 $ — $ — $ — $ — Natural Gas Henry Hub Two-Way Collars Volume (MMBtu/day) — — — 100,000 100,000 100,000 100,000 Weighted average price per MMBtu: Ceiling $ — $ — $ — $ 5.77 $ 5.77 $ 5.77 $ 5.77 Floor $ — $ — $ — $ 2.50 $ 2.50 $ 2.50 $ 2.50 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present assets and liabilities accounted for at fair value on a recurring basis as of March 31, 2024 and December 31, 2023 by hierarchy level: March 31, 2024 (In millions) Level 1 Level 2 Level 3 Total Derivative instruments, assets Commodity (a) $ — $ 1 $ — $ 1 Interest rate - designated as cash flow hedges — 19 — 19 Derivative instruments, assets $ — $ 20 $ — $ 20 Derivative instruments, liabilities Commodity (a) $ — $ (1) $ — $ (1) Derivative instruments, liabilities $ — $ (1) $ — $ (1) Total $ — $ 19 $ — $ 19 December 31, 2023 (In millions) Level 1 Level 2 Level 3 Total Derivative instruments, assets Commodity (a) $ — $ 24 $ — $ 24 Interest rate - designated as cash flow hedges — 18 — 18 Derivative instruments, assets $ — $ 42 $ — $ 42 (a) Derivative instruments are recorded on a net basis in our consolidated balance sheet. See Note 8 |
Schedule of Fair Value, by Balance Sheet Grouping | The following table summarizes financial instruments, excluding receivables, commercial paper borrowings, payables and derivative financial instruments, and their reported fair values by individual balance sheet line item at March 31, 2024 and December 31, 2023: March 31, 2024 December 31, 2023 (In millions) Fair Value Carrying Amount Fair Value Carrying Amount Financial assets Other noncurrent assets $ 9 $ 29 $ 9 $ 27 Total financial assets $ 9 $ 29 $ 9 $ 27 Financial liabilities Other current liabilities $ 80 $ 127 $ 80 $ 126 Long-term debt, including current portion (a) 4,987 5,003 4,961 4,997 Deferred credits and other liabilities 70 72 70 71 Total financial liabilities $ 5,137 $ 5,202 $ 5,111 $ 5,194 (a) Excludes debt issuance costs. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | (In millions) March 31, 2024 December 31, 2023 United States $ 17,004 $ 16,905 International 243 252 Corporate 56 56 Net property, plant and equipment $ 17,303 $ 17,213 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Changes in Asset Retirement Obligations | Asset retirement obligations primarily consist of estimated costs to remove, dismantle and restore land or seabed at the end of oil and gas production operations. Changes in asset retirement obligations were as follows: March 31, (In millions) 2024 2023 Beginning balance as of January 1 $ 340 $ 340 Incurred liabilities, including acquisitions 2 1 Settled liabilities, including dispositions (2) (9) Accretion expense (included in depreciation, depletion and amortization) 4 4 Revisions of estimates 2 5 Ending balance as of March 31, total $ 346 $ 341 Ending balance as of March 31, short-term $ 17 $ 45 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | During the periods ended March 31, 2024 and December 31, 2023, our equity method investees were considered related parties. Our investment in our equity method investees are summarized in the following table: (In millions) Ownership as of March 31, 2024 March 31, 2024 December 31, 2023 EG LNG (a) 56% $ 132 $ 118 Alba Plant LLC (b) 52% 176 153 AMPCO (c) 45% 164 162 Total $ 472 $ 433 (a) EG LNG is engaged in LNG production activity. (b) Alba Plant LLC processes LPG. (c) AMPCO is engaged in methanol production activity. Summarized, 100% combined financial information for equity method investees is as follows: Three Months Ended March 31, (In millions) 2024 2023 Income data: Revenues and other income $ 211 $ 306 Income from operations 101 159 Net income $ 84 $ 134 |
Schedule of Operating Lease, Undiscounted Cash Flows to be Received | The undiscounted cash flows to be received under this lease agreement are summarized below: (In millions) Operating Lease Future Cash Receipts 2024 $ 5 2025 6 2026 6 2027 6 2028 6 Thereafter 35 Total undiscounted cash flows $ 64 |
Incentive Based Compensation (T
Incentive Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Options and Restricted Stock Units Activity | The following table presents a summary of activity for the first three months of 2024: 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, 2023 1,004,304 $ 31.38 3,514,405 $ 22.07 Granted — — 2,062,612 24.60 Exercised/Vested — — (1,663,913) 19.18 Canceled (499,545) 33.33 (45,300) 23.00 Outstanding at March 31, 2024 504,759 $ 29.44 3,867,804 $ 24.65 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | (In millions) March 31, 2024 December 31, 2023 Crude oil, NGLs and natural gas, including LNG $ 12 $ 14 Supplies and other items 167 172 Inventories $ 179 $ 186 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flow Information | Three Months Ended March 31, (In millions) 2024 2023 Included in operating activities: Interest paid $ 73 $ 85 Income taxes paid, net of refunds $ 8 $ 6 Noncash investing activities: Increase in asset retirement costs $ 4 $ 6 |
Income and Dividends per Comm_3
Income and Dividends per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1 | 1 |
Net income | $ 297 | $ 417 |
Weighted average common shares outstanding (in shares) | 576 | 628 |
Effect of dilutive securities (in shares) | 0 | 1 |
Weighted average common shares, diluted (in shares) | 576 | 629 |
Net income per share: | ||
Basic (in dollars per share) | $ 0.52 | $ 0.66 |
Diluted (in dollars per share) | 0.52 | 0.66 |
Dividends per share (in dollars per share) | $ 0.11 | $ 0.10 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Revenue from Contract with Customer [Abstract] | ||
Receivables from contract with customer | $ 972 | $ 886 |
Revenues - Revenues from Contra
Revenues - Revenues from Contracts with Customers by Product Type and Geographic Areas (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | $ 1,538 | $ 1,567 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 1,422 | 1,503 |
United States | Eagle Ford | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 531 | 624 |
United States | Bakken | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 522 | 503 |
United States | Permian | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 226 | 203 |
United States | Oklahoma | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 126 | 153 |
United States | Other U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 17 | 20 |
United States | Crude oil and condensate | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 1,180 | 1,185 |
United States | Crude oil and condensate | Eagle Ford | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 439 | 495 |
United States | Crude oil and condensate | Bakken | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 465 | 431 |
United States | Crude oil and condensate | Permian | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 199 | 170 |
United States | Crude oil and condensate | Oklahoma | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 65 | 78 |
United States | Crude oil and condensate | Other U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 12 | 11 |
United States | NGLs | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 151 | 169 |
United States | NGLs | Eagle Ford | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 58 | 71 |
United States | NGLs | Bakken | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 41 | 37 |
United States | NGLs | Permian | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 20 | 22 |
United States | NGLs | Oklahoma | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 32 | 39 |
United States | NGLs | Other U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
United States | Natural gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 86 | 139 |
United States | Natural gas | Eagle Ford | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 33 | 56 |
United States | Natural gas | Bakken | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 16 | 35 |
United States | Natural gas | Permian | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 7 | 11 |
United States | Natural gas | Oklahoma | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 29 | 36 |
United States | Natural gas | Other U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 1 | 1 |
United States | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 5 | 10 |
United States | Other | Eagle Ford | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 1 | 2 |
United States | Other | Bakken | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
United States | Other | Permian | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
United States | Other | Oklahoma | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 0 | 0 |
United States | Other | Other U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 4 | 8 |
International | International, Equatorial Guinea (E.G.) | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 116 | 64 |
International | Crude oil and condensate | International, Equatorial Guinea (E.G.) | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 61 | 57 |
International | NGLs | International, Equatorial Guinea (E.G.) | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 1 | 1 |
International | Natural gas | International, Equatorial Guinea (E.G.) | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 53 | 5 |
International | Natural gas, sold as gas | International, Equatorial Guinea (E.G.) | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 2 | 5 |
International | Natural gas, sold as LNG | International, Equatorial Guinea (E.G.) | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | 51 | 0 |
International | Other | International, Equatorial Guinea (E.G.) | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers | $ 1 | $ 1 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 USD ($) segment | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Segment Reporting [Abstract] | |||
Number of reportable segments | segment | 2 | ||
Number of operating segments | segment | 2 | ||
Segment Reporting Information [Line Items] | |||
Revenues from contracts with customers | $ 1,538 | $ 1,567 | |
Net (loss) gain on commodity derivatives | (24) | 15 | |
Income from equity method investments | 39 | 80 | |
Net gain on disposal of assets | 0 | 5 | |
Other income (expense) | (2) | 13 | |
Less costs and expenses: | |||
Production | 221 | 201 | |
Shipping, handling and other operating, including related party | 169 | 162 | |
Exploration | 7 | 15 | |
Depreciation, depletion and amortization | 524 | 520 | |
Taxes other than income | 96 | 95 | |
General and administrative | 86 | 82 | |
Net interest and other | 69 | 82 | |
Other net periodic benefit costs | (3) | (3) | |
Income tax provision (benefit) | 85 | 109 | |
Net income | 297 | 417 | |
Total assets | 19,668 | 20,012 | $ 19,575 |
Capital expenditures | 603 | 601 | |
Permian Basin | |||
Less costs and expenses: | |||
Dry well cost | 10 | ||
U.S. | |||
Segment Reporting Information [Line Items] | |||
Revenues from contracts with customers | 1,422 | 1,503 | |
Operating Segments | U.S. | |||
Segment Reporting Information [Line Items] | |||
Revenues from contracts with customers | 1,422 | 1,503 | |
Net (loss) gain on commodity derivatives | 0 | 13 | |
Income from equity method investments | 0 | 0 | |
Net gain on disposal of assets | 0 | ||
Other income (expense) | (4) | 11 | |
Less costs and expenses: | |||
Production | 201 | 178 | |
Shipping, handling and other operating, including related party | 149 | 159 | |
Exploration | 7 | 5 | |
Depreciation, depletion and amortization | 500 | 505 | |
Taxes other than income | 96 | 97 | |
General and administrative | 38 | 35 | |
Net interest and other | 0 | 0 | |
Other net periodic benefit costs | 0 | 0 | |
Income tax provision (benefit) | 93 | 123 | |
Net income | 334 | 425 | |
Total assets | 18,629 | 18,696 | |
Capital expenditures | 598 | 597 | |
Operating Segments | Int’l | |||
Segment Reporting Information [Line Items] | |||
Revenues from contracts with customers | 116 | 64 | |
Net (loss) gain on commodity derivatives | 0 | 0 | |
Income from equity method investments | 39 | 80 | |
Net gain on disposal of assets | 0 | ||
Other income (expense) | 1 | 1 | |
Less costs and expenses: | |||
Production | 20 | 23 | |
Shipping, handling and other operating, including related party | 17 | 3 | |
Exploration | 0 | 0 | |
Depreciation, depletion and amortization | 10 | 12 | |
Taxes other than income | 0 | 0 | |
General and administrative | 3 | 3 | |
Net interest and other | 0 | 0 | |
Other net periodic benefit costs | 0 | 0 | |
Income tax provision (benefit) | 24 | 15 | |
Net income | 82 | 89 | |
Total assets | 918 | 1,148 | |
Capital expenditures | 1 | 2 | |
Not Allocated to Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues from contracts with customers | 0 | 0 | |
Net (loss) gain on commodity derivatives | (24) | 2 | |
Income from equity method investments | 0 | 0 | |
Net gain on disposal of assets | 5 | ||
Other income (expense) | 1 | 1 | |
Less costs and expenses: | |||
Production | 0 | 0 | |
Shipping, handling and other operating, including related party | 3 | 0 | |
Exploration | 0 | 10 | |
Depreciation, depletion and amortization | 14 | 3 | |
Taxes other than income | 0 | (2) | |
General and administrative | 45 | 44 | |
Net interest and other | 69 | 82 | |
Other net periodic benefit costs | (3) | (3) | |
Income tax provision (benefit) | (32) | (29) | |
Net income | (119) | (97) | |
Total assets | 121 | 168 | |
Capital expenditures | $ 4 | $ 2 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 22% | 21% |
Debt - Term Loan Facility (Deta
Debt - Term Loan Facility (Details) - Term Loan Facility - Line of Credit - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Mar. 28, 2024 | Nov. 30, 2022 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | |||
Debt term | 2 years | ||
Maximum borrowing capacity | $ 1,500 | ||
Repayments of line of credit | $ 1,200 | $ 300 |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facility (Details) - Revolving Credit Facility $ in Millions | Mar. 31, 2024 USD ($) |
Line of Credit Facility [Line Items] | |
Maximum borrowing capacity | $ 2,600 |
Optional limit increase | $ 939 |
Covenant, ratio of indebtedness to net capital, maximum | 0.65 |
Ratio of indebtedness to net capital | 0.25 |
Debt - Commercial Paper Program
Debt - Commercial Paper Program (Details) | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Commercial Paper | |
Line of Credit Facility [Line Items] | |
Maximum borrowing capacity | $ 2,500,000,000 |
Debt term | 365 days |
Line of credit, outstanding amount | $ 450,000,000 |
Weighted average interest rate | 5.90% |
Revolving Credit Facility | |
Line of Credit Facility [Line Items] | |
Maximum borrowing capacity | $ 2,600,000,000 |
Debt - Debt Issuance (Details)
Debt - Debt Issuance (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 28, 2024 | Dec. 31, 2023 | |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 1,200 | |
Net proceeds received | 1,200 | |
Debt issuance costs | 12 | |
2029 Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 600 | |
Interest rate | 5.30% | |
2034 Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 600 | |
Interest rate | 5.70% | |
Term Loan Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Repayments of line of credit | $ 1,200 | $ 300 |
Debt - Debt Redemption (Details
Debt - Debt Redemption (Details) - Senior Unsecured Notes 8.5% Due2023 - Unsecured Debt $ in Millions | Mar. 31, 2023 USD ($) |
Debt Instrument [Line Items] | |
Debt instrument outstanding amount | $ 70 |
Interest rate | 8.50% |
Debt - Long-Term Debt (Details)
Debt - Long-Term Debt (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 5,000 | |
Long-term debt due within one year | 400 | $ 1,600 |
2.10% bonds due 2037 | Bonds | ||
Debt Instrument [Line Items] | ||
Long-term debt due within one year | $ 200 | |
Interest rate | 2.10% | |
2.125% bonds due 2037 | Bonds | ||
Debt Instrument [Line Items] | ||
Long-term debt due within one year | $ 200 | |
Interest rate | 2.125% |
Derivatives - Balance Sheet Com
Derivatives - Balance Sheet Components (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Derivatives, Fair Value [Line Items] | ||
Asset | $ 20 | $ 42 |
Liability | 1 | 0 |
Net Asset | 19 | 42 |
Not Designated as Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Asset | 1 | 24 |
Liability | 1 | 0 |
Net Asset | 0 | 24 |
Not Designated as Hedges | Other current assets | Commodity | ||
Derivatives, Fair Value [Line Items] | ||
Asset | 1 | 24 |
Liability | 1 | 0 |
Net Asset | 0 | 24 |
Cash Flow Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Asset | 19 | 18 |
Liability | 0 | 0 |
Net Asset | 19 | 18 |
Cash Flow Hedges | Other current assets | Interest Rate | ||
Derivatives, Fair Value [Line Items] | ||
Asset | 9 | 9 |
Liability | 0 | 0 |
Net Asset | 9 | 9 |
Cash Flow Hedges | Other noncurrent assets | Interest Rate | ||
Derivatives, Fair Value [Line Items] | ||
Asset | 10 | 9 |
Liability | 0 | 0 |
Net Asset | $ 10 | $ 9 |
Derivatives - Outstanding Deriv
Derivatives - Outstanding Derivative Contracts (Details) - Not Designated as Hedges | Apr. 30, 2024 MMBTU bbl / h $ / bbl $ / MMBTU | Mar. 31, 2024 bbl / h $ / bbl |
Three-Way Collars - Crude Oil 2024, Second Quarter | ||
Derivative [Line Items] | ||
Derivative, volume | bbl / h | 60,000 | |
Derivative, ceiling | 97.44 | |
Derivative, floor | 65.83 | |
Derivative, sold put | 50.83 | |
Three-Way Collars - Crude Oil 2024, Second Quarter | Subsequent Event | ||
Derivative [Line Items] | ||
Derivative, volume | bbl / h | 60,000 | |
Derivative, ceiling | 97.44 | |
Derivative, floor | 65.83 | |
Derivative, sold put | 50.83 | |
Three-Way Collars - Crude Oil 2024, Third Quarter | ||
Derivative [Line Items] | ||
Derivative, volume | bbl / h | 40,000 | |
Derivative, ceiling | 96.12 | |
Derivative, floor | 65 | |
Derivative, sold put | 50 | |
Three-Way Collars - Crude Oil 2024, Third Quarter | Subsequent Event | ||
Derivative [Line Items] | ||
Derivative, volume | bbl / h | 50,000 | |
Derivative, ceiling | 95.95 | |
Derivative, floor | 65 | |
Derivative, sold put | 50 | |
Three-Way Collars - Crude Oil 2024, Fourth Quarter | ||
Derivative [Line Items] | ||
Derivative, volume | bbl / h | 40,000 | |
Derivative, ceiling | 96.12 | |
Derivative, floor | 65 | |
Derivative, sold put | 50 | |
Three-Way Collars - Crude Oil 2024, Fourth Quarter | Subsequent Event | ||
Derivative [Line Items] | ||
Derivative, volume | bbl / h | 50,000 | |
Derivative, ceiling | 95.95 | |
Derivative, floor | 65 | |
Derivative, sold put | 50 | |
Three-Way Collars - Crude Oil 2025, First Quarter | Subsequent Event | ||
Derivative [Line Items] | ||
Derivative, volume | bbl / h | 0 | |
Derivative, ceiling | 0 | |
Derivative, floor | 0 | |
Derivative, sold put | 0 | |
Three-Way Collars - Crude Oil 2025, Second Quarter | Subsequent Event | ||
Derivative [Line Items] | ||
Derivative, volume | bbl / h | 0 | |
Derivative, ceiling | 0 | |
Derivative, floor | 0 | |
Derivative, sold put | 0 | |
Three-Way Collars - Crude Oil 2025, Third Quarter | Subsequent Event | ||
Derivative [Line Items] | ||
Derivative, volume | bbl / h | 0 | |
Derivative, ceiling | 0 | |
Derivative, floor | 0 | |
Derivative, sold put | 0 | |
Three-Way Collars - Crude Oil 2025, Fourth Quarter | Subsequent Event | ||
Derivative [Line Items] | ||
Derivative, volume | bbl / h | 0 | |
Derivative, ceiling | 0 | |
Derivative, floor | 0 | |
Derivative, sold put | 0 | |
Two-Way Collars - Natural Gas 2024, Second Quarter | Subsequent Event | ||
Derivative [Line Items] | ||
Derivative, volume | MMBTU | 0 | |
Derivative, ceiling | $ / MMBTU | 0 | |
Derivative, floor | $ / MMBTU | 0 | |
Two-Way Collars - Natural Gas 2024, Third Quarter | Subsequent Event | ||
Derivative [Line Items] | ||
Derivative, volume | MMBTU | 0 | |
Derivative, ceiling | $ / MMBTU | 0 | |
Derivative, floor | $ / MMBTU | 0 | |
Two-Way Collars - Natural Gas 2024, Fourth Quarter | Subsequent Event | ||
Derivative [Line Items] | ||
Derivative, volume | MMBTU | 0 | |
Derivative, ceiling | $ / MMBTU | 0 | |
Derivative, floor | $ / MMBTU | 0 | |
Two-Way Collars - Natural Gas 2025, First Quarter | Subsequent Event | ||
Derivative [Line Items] | ||
Derivative, volume | MMBTU | 100,000 | |
Derivative, ceiling | $ / MMBTU | 5.77 | |
Derivative, floor | $ / MMBTU | 2.50 | |
Two-Way Collars - Natural Gas 2025, Second Quarter | Subsequent Event | ||
Derivative [Line Items] | ||
Derivative, volume | MMBTU | 100,000 | |
Derivative, ceiling | $ / MMBTU | 5.77 | |
Derivative, floor | $ / MMBTU | 2.50 | |
Two-Way Collars - Natural Gas 2025, Third Quarter | Subsequent Event | ||
Derivative [Line Items] | ||
Derivative, volume | MMBTU | 100,000 | |
Derivative, ceiling | $ / MMBTU | 5.77 | |
Derivative, floor | $ / MMBTU | 2.50 | |
Two-Way Collars - Natural Gas 2025, Fourth Quarter | Subsequent Event | ||
Derivative [Line Items] | ||
Derivative, volume | MMBTU | 100,000 | |
Derivative, ceiling | $ / MMBTU | 5.77 | |
Derivative, floor | $ / MMBTU | 2.50 |
Derivatives - Schedule of Mark-
Derivatives - Schedule of Mark-to-market Impact and Commodity Derivative Settlements (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Cash received (paid) for settled derivative positions, net | $ 10 | |
Commodity | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized gain (loss) on derivative instruments, net | $ (24) | 2 |
Realized gain on derivative instruments, net | $ 0 | $ 13 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) - Interest Rate Contract, Maturing September 9, 2026 - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Proceeds from hedge settlement | $ 3 | |
Amount expected to be reclassified within 12 months | 10 | |
Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, notional amount | $ 295 | $ 295 |
Weighted average interest rate, SOFR | 1.43% | 1.43% |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Recurring (Details) - Recurring - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | $ 20 | $ 42 |
Derivative instruments, liabilities | (1) | |
Total | 19 | |
Commodity | Not Designated as Hedges | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 1 | 24 |
Derivative instruments, liabilities | (1) | |
Interest rate - designated as cash flow hedges | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 19 | 18 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 0 | 0 |
Derivative instruments, liabilities | 0 | |
Total | 0 | |
Level 1 | Commodity | Not Designated as Hedges | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 0 | 0 |
Derivative instruments, liabilities | 0 | |
Level 1 | Interest rate - designated as cash flow hedges | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 20 | 42 |
Derivative instruments, liabilities | (1) | |
Total | 19 | |
Level 2 | Commodity | Not Designated as Hedges | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 1 | 24 |
Derivative instruments, liabilities | (1) | |
Level 2 | Interest rate - designated as cash flow hedges | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 19 | 18 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 0 | 0 |
Derivative instruments, liabilities | 0 | |
Total | 0 | |
Level 3 | Commodity | Not Designated as Hedges | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 0 | 0 |
Derivative instruments, liabilities | 0 | |
Level 3 | Interest rate - designated as cash flow hedges | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | $ 0 | $ 0 |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value | ||
Financial assets | ||
Other noncurrent assets | $ 9 | $ 9 |
Total financial assets | 9 | 9 |
Financial liabilities | ||
Other current liabilities | 80 | 80 |
Long-term debt, including current portion | 4,987 | 4,961 |
Deferred credits and other liabilities | 70 | 70 |
Total financial liabilities | 5,137 | 5,111 |
Carrying Amount | ||
Financial assets | ||
Other noncurrent assets | 29 | 27 |
Total financial assets | 29 | 27 |
Financial liabilities | ||
Other current liabilities | 127 | 126 |
Long-term debt, including current portion | 5,003 | 4,997 |
Deferred credits and other liabilities | 72 | 71 |
Total financial liabilities | $ 5,202 | $ 5,194 |
Property, Plant and Equipment -
Property, Plant and Equipment - Property, Plant and Equipment (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | $ 17,303 | $ 17,213 |
Operating Segments | United States | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | 17,004 | 16,905 |
Operating Segments | International | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | 243 | 252 |
Corporate | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | $ 56 | $ 56 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Narrative (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Abstract] | ||
Exploratory well costs capitalized greater than one year after completion of drilling | $ 0 | $ 0 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Beginning balance as of January 1 | $ 340 | $ 340 |
Incurred liabilities, including acquisitions | 2 | 1 |
Settled liabilities, including dispositions | (2) | (9) |
Accretion expense (included in depreciation, depletion and amortization) | 4 | 4 |
Revisions of estimates | 2 | 5 |
Ending balance as of March 31, total | 346 | 341 |
Asset retirement obligation, current | $ 17 | $ 45 |
Equity Method Investments - Sch
Equity Method Investments - Schedule of Equity Method Investments (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | $ 472 | $ 433 |
EG LNG | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 56% | |
Equity method investments | $ 132 | 118 |
Alba Plant LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 52% | |
Equity method investments | $ 176 | 153 |
AMPCO | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 45% | |
Equity method investments | $ 164 | $ 162 |
Equity Method Investments - S_2
Equity Method Investments - Schedule Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Schedule of Equity Method Investments [Line Items] | ||
Revenues and other income | $ 1,551 | $ 1,680 |
Income from operations | 448 | 605 |
Net income | 297 | 417 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||
Schedule of Equity Method Investments [Line Items] | ||
Revenues and other income | 211 | 306 |
Income from operations | 101 | 159 |
Net income | $ 84 | $ 134 |
Equity Method Investments - Nar
Equity Method Investments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Schedule of Equity Method Investments [Line Items] | |||
Revenues and other income | $ 1,551 | $ 1,680 | |
Receivables, net | 1,276 | $ 1,152 | |
Accounts payable | 1,514 | 1,364 | |
Annual payments to be received | 6 | ||
Related Party | |||
Schedule of Equity Method Investments [Line Items] | |||
Revenues and other income | 2 | $ 6 | |
Receivables, net | 23 | 24 | |
Accounts payable | $ 24 | $ 6 |
Equity Method Investments - S_3
Equity Method Investments - Schedule of Operating Lease, Undiscounted Cash Flows to be Received (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Equity Method Investments and Joint Ventures [Abstract] | |
2024 | $ 5 |
2025 | 6 |
2026 | 6 |
2027 | 6 |
2028 | 6 |
Thereafter | 35 |
Total undiscounted cash flows | $ 64 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | |
May 01, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | |
Equity, Class of Treasury Stock [Line Items] | |||
Payments for repurchase of common stock | $ 285 | $ 334 | |
Stock repurchase program, remaining authorized repurchase amount | $ 2,000 | ||
Share Repurchase Program | Subsequent Event | |||
Equity, Class of Treasury Stock [Line Items] | |||
Payments for repurchase of common stock | $ 110 | ||
Treasury Stock | |||
Equity, Class of Treasury Stock [Line Items] | |||
Shares repurchased (in shares) | 11 | ||
Payments for repurchase of common stock | $ 285 |
Incentive Based Compensation -
Incentive Based Compensation - Stock Options and Restricted Stock Units Activity (Details) | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Number of Shares | |
Outstanding, beginning (in shares) | shares | 1,004,304 |
Granted (in shares) | shares | 0 |
Exercised/Vested (in shares) | shares | 0 |
Canceled (in shares) | shares | (499,545) |
Outstanding, ending (in shares) | shares | 504,759 |
Weighted Average Exercise Price | |
Outstanding, beginning (in dollars per share) | $ / shares | $ 31.38 |
Granted (in dollars per share) | $ / shares | 0 |
Exercised/Vested (in dollars per share) | $ / shares | 0 |
Canceled (in dollars per share) | $ / shares | 33.33 |
Outstanding, ending (in dollars per share) | $ / shares | $ 29.44 |
Restricted Stock Units | |
Number of Shares & Units | |
Outstanding, beginning (in shares) | shares | 3,514,405 |
Granted (in shares) | shares | 2,062,612 |
Exercised/Vested (in shares) | shares | (1,663,913) |
Canceled (in shares) | shares | (45,300) |
Outstanding, ending (in shares) | shares | 3,867,804 |
Weighted Average Grant Date Fair Value | |
Outstanding, beginning (in dollars per share) | $ / shares | $ 22.07 |
Granted (in dollars per share) | $ / shares | 24.60 |
Exercised/Vested (in dollars per share) | $ / shares | 19.18 |
Canceled (in dollars per share) | $ / shares | 23 |
Outstanding, ending (in dollars per share) | $ / shares | $ 24.65 |
Incentive Based Compensation _2
Incentive Based Compensation - Narrative (Details) | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Performance Unit - Share Settlement | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 248,572 |
Grant date fair value (in dollars per share) | $ / shares | $ 28.21 |
Outstanding units (in shares) | 638,079 |
Performance Unit - Cash Settlement | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 248,572 |
Outstanding units (in shares) | 471,036 |
Unit conversion ratio (in shares) | 1 |
Fair value as of period end (in dollars per share) | $ / shares | $ 28.45 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Crude oil, NGLs and natural gas, including LNG | $ 12 | $ 14 |
Supplies and other items | 167 | 172 |
Inventories | $ 179 | $ 186 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Included in operating activities: | ||
Interest paid | $ 73 | $ 85 |
Income taxes paid, net of refunds | 8 | 6 |
Noncash investing activities: | ||
Increase in asset retirement costs | 4 | 6 |
Capital expenditures incurred but not yet paid | $ 203 | $ 180 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 3 Months Ended | |
Jun. 30, 2020 USD ($) guarantee | Mar. 31, 2024 USD ($) tribe | |
Loss Contingencies [Line Items] | ||
Number of affiliated tribes | tribe | 3 | |
Contingent royalty liability | $ 123,000,000 | |
Contingent capital and expense receivable, noncurrent | 27,000,000 | |
Expected penalty or fine (in excess of) | 300,000 | |
Number of guarantees executed | guarantee | 2 | |
Guarantor obligations, current carrying value | 4,000,000 | |
Performance of Equatorial Guinea LNG Operations, S.A. | ||
Loss Contingencies [Line Items] | ||
Guarantor obligations, maximum exposure | $ 91,000,000 | |
Performance of Alba Plant LLC. | ||
Loss Contingencies [Line Items] | ||
Guarantor obligations, maximum exposure | $ 25,000,000 | |
Accounts Payable | ||
Loss Contingencies [Line Items] | ||
Contingent royalty liability | 105,000,000 | |
Other current liabilities | ||
Loss Contingencies [Line Items] | ||
Contingent royalty liability | $ 18,000,000 |