Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 21, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-13245 | ||
Entity Registrant Name | PIONEER NATURAL RESOURCES CO | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 75-2702753 | ||
Entity Address, Address Line One | 777 Hidden Ridge | ||
Entity Address, City or Town | Irving | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 75038 | ||
City Area Code | 972 | ||
Local Phone Number | 444-9001 | ||
Title of 12(b) Security | Common Stock, par value $.01 per share | ||
Trading Symbol | PXD | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 53,223,207,626 | ||
Entity Common Stock, Shares Outstanding | 235,004,153 | ||
Entity Central Index Key | 0001038357 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Documents Incorporated by Reference | Portions of the Definitive Proxy Statement for the Company's Annual Meeting of Shareholders to be held in May 2023 are incorporated into Part III of this Report. |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Auditor Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | Dallas, Texas |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 1,032 | $ 3,847 |
Restricted cash | 0 | 37 |
Accounts receivable, net | 1,853 | 1,685 |
Income Taxes Receivable | 164 | 1 |
Inventories | 424 | 369 |
Investment in affiliate | 172 | 135 |
Short-term investments, net | 0 | 58 |
Other | 81 | 41 |
Total current assets | 3,726 | 6,173 |
Oil and gas properties, using the successful efforts method of accounting: | ||
Proved properties | 38,465 | 34,454 |
Unproved properties | 6,008 | 6,063 |
Accumulated depletion, depreciation and amortization | (14,843) | (12,335) |
Total oil and gas properties, net | 29,630 | 28,182 |
Other property and equipment, net | 1,658 | 1,694 |
Operating lease right-of-use assets | 340 | 348 |
Goodwill | 243 | 243 |
Other assets | 143 | 171 |
Total assets | 35,740 | 36,811 |
Accounts payable: | ||
Trade | 2,487 | 2,380 |
Due to affiliates | 150 | 179 |
Interest payable | 33 | 53 |
Income taxes payable | 63 | 45 |
Current portion of long-term debt | 779 | 244 |
Derivatives | 44 | 538 |
Operating leases | 125 | 121 |
Other | 206 | 513 |
Total current liabilities | 3,887 | 4,073 |
Long-term debt | 4,125 | 6,688 |
Derivatives | 96 | 25 |
Deferred income taxes | 3,867 | 2,038 |
Operating leases | 236 | 243 |
Other liabilities | 988 | 907 |
Equity: | ||
Common stock, $.01 par value; 500,000,000 shares authorized; 244,703,342 and 244,144,444 shares issued as of December 31, 2022 and December 31, 2021, respectively | 2 | 2 |
Additional paid-in capital | 18,779 | 19,123 |
Treasury stock, at cost; 8,667,824 and 1,366,610 shares as of December 31, 2022 and December 31, 2021, respectively | (1,925) | (248) |
Retained earnings | 5,685 | 3,960 |
Total equity | 22,541 | 22,837 |
Commitments and contingencies | ||
Total Liabilities and Stockholders' Equity | $ 35,740 | $ 36,811 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 244,703,342 | 244,144,444 |
Treasury stock, shares (in shares) | 8,667,824 | 1,366,610 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues and other income: | |||
Revenue | $ 24,384 | $ 17,870 | $ 7,024 |
Interest and other income (loss), net | 119 | 23 | (67) |
Derivative loss, net | (315) | (2,183) | (281) |
Gain (loss) on disposition of assets, net | 106 | (1,067) | 9 |
Revenues | 24,294 | 14,643 | 6,685 |
Costs and expenses: | |||
Production and ad valorem taxes | 965 | 651 | 242 |
Depletion, depreciation and amortization | 2,530 | 2,498 | 1,639 |
Exploration and abandonments | 41 | 51 | 47 |
General and administrative | 334 | 292 | 244 |
Accretion of discount on asset retirement obligations | 15 | 7 | 9 |
Interest | 128 | 161 | 129 |
Other | 173 | 410 | 321 |
Total costs and expenses | 14,343 | 11,897 | 6,946 |
Income (loss) before income taxes | 9,951 | 2,746 | (261) |
Income tax benefit (provision) | (2,106) | (628) | 61 |
Net income (loss) attributable to common stockholders | $ 7,845 | $ 2,118 | $ (200) |
Net income (loss) per share attributable to common stockholders: | |||
Basic (usd per share) | $ 32.61 | $ 9.06 | $ (1.21) |
Diluted (usd per share) | $ 31.13 | $ 8.61 | $ (1.21) |
Weighted average shares outstanding: | |||
Basic weighted average shares outstanding (in shares) | 240 | 233 | 165 |
Diluted weighted average shares outstanding (in shares) | 252 | 246 | 165 |
Dividends declared (usd per share) | $ 25.44 | $ 6.83 | $ 2.20 |
Capped call proceeds | $ 103 | $ (202) | $ 230 |
Additional Paid-in Capital | |||
Weighted average shares outstanding: | |||
Capped call proceeds | 103 | (230) | 230 |
Oil and gas | |||
Revenues and other income: | |||
Revenue | 16,310 | 11,503 | 3,630 |
Costs and expenses: | |||
Costs and expenses | 1,922 | 1,267 | 682 |
Sales of purchased commodities | |||
Revenues and other income: | |||
Revenue | 8,074 | 6,367 | 3,394 |
Costs and expenses: | |||
Costs and expenses | $ 8,235 | $ 6,560 | $ 3,633 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Millions | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings |
Beginning balance (in shares) at Dec. 31, 2019 | 165,547 | ||||
Beginning balance at Dec. 31, 2019 | $ 12,136 | $ 2 | $ 9,161 | $ (1,069) | $ 4,042 |
Conversion premium | |||||
Equity component | 230 | 230 | |||
Capped call | (113) | (113) | |||
Issuance fees and deferred taxes | (25) | (25) | |||
Stock-based compensation: | |||||
Net income (loss) | (200) | ||||
Ending balance (in shares) at Dec. 31, 2020 | 164,477 | ||||
Ending balance at Dec. 31, 2020 | 11,569 | $ 2 | 9,323 | (1,234) | 3,478 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Dividends declared | (1,658) | (1,658) | |||
Conversion premium | |||||
Equity component | (202) | (230) | 28 | ||
Issuance fees and deferred taxes | 44 | 50 | (6) | ||
Exercise of stock options and employee stock purchases (in shares) | 134 | ||||
Exercise of stock options and employee stock purchases | 13 | (4) | 17 | ||
Purchases of treasury stock (in shares) | (1,517) | ||||
Purchases of treasury stock | (269) | (269) | |||
Shares issued or reissued for acquisition (in shares) | 78,842 | ||||
Shares issued or reissued for acquisitions | 11,116 | 9,878 | 1,238 | ||
Stock-based compensation: | |||||
Vested compensation awards, net or issued awards (in shares) | 842 | ||||
Vested compensation awards, net | 0 | ||||
Compensation costs included in net income (loss) | 73 | 73 | |||
Compensation costs included in net income associated with acquisitions | 33 | 33 | |||
Net income (loss) | 2,118 | 2,118 | |||
Ending balance (in shares) at Dec. 31, 2021 | 242,778 | ||||
Ending balance at Dec. 31, 2021 | 22,837 | $ 2 | 19,123 | (248) | 3,960 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Dividends declared | (6,120) | (6,120) | |||
Conversion premium | |||||
Conversion premium | (496) | (496) | |||
Equity component | 103 | 103 | |||
Issuance fees and deferred taxes | (26) | (26) | |||
Employee stock purchases (in shares) | 47 | ||||
Employee stock purchases | 7 | (3) | 10 | ||
Purchases of treasury stock (in shares) | (7,348) | ||||
Purchases of treasury stock | (1,687) | (1,687) | |||
Stock-based compensation: | |||||
Vested compensation awards, net or issued awards (in shares) | 559 | ||||
Vested compensation awards, net | 0 | ||||
Compensation costs included in net income (loss) | 78 | 78 | |||
Net income (loss) | 7,845 | 7,845 | |||
Ending balance (in shares) at Dec. 31, 2022 | 236,036 | ||||
Ending balance at Dec. 31, 2022 | $ 22,541 | $ 2 | $ 18,779 | $ (1,925) | $ 5,685 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||||||||||||||
Dividends declared (usd per share) | $ 5.71 | $ 8.57 | $ 7.38 | $ 3.78 | $ 3.64 | $ 2.07 | $ 0.56 | $ 0.56 | $ 0.55 | $ 0.55 | $ 0.55 | $ 0.55 | $ 25.44 | $ 6.83 | $ 2.20 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | ||||
Net income (loss) | $ 7,845 | $ 2,118 | $ (200) | $ (200) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Depletion, depreciation and amortization | 2,530 | 2,498 | 1,639 | |
Exploration expenses | 7 | 4 | 11 | |
Deferred income taxes | 1,807 | 583 | (52) | |
(Gain) loss on disposition of assets, net | (106) | 1,067 | (9) | |
Loss on early extinguishment of debt, net | 39 | 2 | 27 | |
Accretion of discount on asset retirement obligations | 15 | 7 | 9 | |
Interest expense | 10 | 10 | 34 | |
Derivative-related activity | (96) | (451) | 325 | |
Amortization of stock-based compensation | 78 | 106 | 72 | |
Investment valuation adjustments | (54) | (1) | 64 | |
South Texas contingent consideration valuation adjustment | 0 | 0 | 42 | |
South Texas deficiency fee obligation, net | (18) | (10) | 80 | |
Other | 144 | 150 | 115 | |
Changes in operating assets and liabilities, net of effects of acquisitions: | ||||
Accounts receivable | (171) | (607) | 309 | |
Income taxes receivable | (164) | (3) | (3) | |
Inventories | (59) | (125) | (20) | |
Other assets | (113) | (18) | 27 | |
Accounts payable | (274) | 1,059 | (179) | |
Interest payable | (20) | (53) | (19) | |
Income taxes payable | 18 | 41 | 1 | |
Other liabilities | (70) | (331) | (203) | |
Net cash provided by operating activities | 11,348 | 6,046 | 2,070 | |
Cash flows from investing activities: | ||||
Proceeds from disposition of assets | 367 | 3,244 | 60 | |
Proceeds from short-term investments | 1,100 | 0 | 0 | |
Purchases of short-term investments, net | (1,020) | 0 | 0 | |
Cash used in acquisitions, net of cash acquired | 0 | (826) | 0 | |
Additions to oil and gas properties | (3,920) | (3,156) | (1,589) | |
Additions to other assets and other property and equipment | (113) | (118) | (126) | |
Net cash used in investing activities | (3,586) | (856) | (1,655) | |
Cash flows from financing activities: | ||||
Proceeds from issuance of senior notes, net of discount | 0 | 3,247 | 1,091 | |
Proceeds from issuance of convertible senior notes | 0 | 0 | 1,323 | |
Purchase of derivatives related to issuance of convertible senior notes | 0 | 0 | (113) | |
Borrowings under credit facility | 0 | 650 | 800 | |
Repayment of credit facilities | 0 | (1,287) | (800) | |
Repayment of long-term debt | (2,576) | (3,371) | (1,198) | |
Proceeds from capped call on convertible notes | 103 | 0 | 0 | |
Payments of other liabilities | (192) | (164) | (173) | |
Payments of financing fees | 0 | (32) | (36) | |
Purchases of treasury stock | (1,687) | (269) | (176) | |
Exercise of stock options and employee stock purchases | 7 | 13 | 9 | |
Dividends paid | (6,269) | (1,594) | (346) | |
Net cash provided by (used in) financing activities | (10,614) | (2,807) | 381 | |
Net increase (decrease) in cash, cash equivalents and restricted cash | (2,852) | 2,383 | 796 | |
Cash, cash equivalents and restricted cash, beginning of period | 3,884 | 1,501 | 705 | |
Cash, cash equivalents and restricted cash, end of period | $ 1,032 | $ 3,884 | $ 1,501 | $ 705 |
Organization and Nature Of Oper
Organization and Nature Of Operations | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Operations | Organization and Nature of OperationsPioneer is a Delaware corporation whose common stock is listed and traded on the NYSE. The Company is a large independent oil and gas exploration and production company that explores for, develops and produces oil, NGLs and gas in the Midland Basin in West Texas. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of consolidation. The consolidated financial statements include the accounts of the Company and its wholly-owned and majority-owned subsidiaries since their acquisition or formation. All material intercompany balances and transactions have been eliminated. Use of estimates in the preparation of financial statements. Preparation of the Company's consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Depletion of oil and gas properties is determined using estimates of proved oil and gas reserves. There are numerous uncertainties inherent in the estimation of quantities of proved reserves and in the projection of future rates of production and the timing of development expenditures. Similarly, evaluations for impairment of proved and unproved oil and gas properties are subject to numerous uncertainties including, among others, estimates of future recoverable proved and risk-adjusted probable reserves, commodity price outlooks and prevailing market rates of other sources of income and costs. Actual results could differ from the estimates and assumptions utilized. Cash and cash equivalents. The Company's cash and cash equivalents include depository accounts held by banks and marketable securities (including commercial paper and time deposits) with original issuance maturities of 90 days or less. Restricted cash. The Company's restricted cash included funds held in escrow to cover deficiency fee payments in connection with the Company's 2019 sale of its Eagle Ford assets and other remaining assets in South Texas (the "South Texas Divestiture"). During the year ended December 31, 2022, the Company settled the remaining deficiency fee obligations related to the South Texas Divestiture utilizing the funds held in escrow. Interest income related to restricted cash is recorded in interest and other income in the consolidated statements of operations. Accounts receivable, net. The Company's net accounts receivable balance is primarily comprised of oil and gas sales receivables, joint interest receivables, accounts receivable due from affiliates and other receivables for which the Company does not require collateral security. The Company's share of oil and gas production is sold to various purchasers who must be prequalified under the Company's credit risk policies and procedures. The Company records allowances for doubtful accounts based on historical collection experience, current and future economic and market conditions, the length of time that the accounts receivables have been outstanding and the financial condition of its purchasers. T he Company's credit risk related to collecting accounts receivables is mitigated by using credit and other financial criteria to evaluate the credit standing of the entity obligated to make payment on the accounts receivable, and where appropriate, the Company obtains assurances of payment, such as a guarantee by the parent company of the counterparty, letters of credit or other credit support. The Company considers forward-looking information to estimate expected credit losses. The Company establishes allowances for bad debts equal to the estimable portions of accounts receivable for which failure to collect is expected to occur. The Company estimates uncollectible amounts for joint interest receivables based on the length of time that the accounts receivables have been outstanding, historical collection experience and current and future economic and market conditions. Allowances for doubtful accounts are recorded as reductions to the carrying values of the receivables included in the Company's consolidated balance sheets and are recorded in other expense in the consolidated statements of operations in the accounting periods during which failure to collect an estimable portion is determined to be probable. The Company's allowance for doubtful accounts totaled $10 million and $9 million as of December 31, 2022 and 2021, respectively. Inventories. The Company's inventories consist of materials, supplies and commodities. The Company's materials and supplies inventory is primarily comprised of oil and gas maintenance materials and repair parts, water, sand and other operating supplies. The materials and supplies inventory is primarily acquired for use in future drilling and production operations or repair operations and is carried at the lower of cost or net realizable value, on a weighted average cost basis. Valuation allowances for materials and supplies inventories are recorded as reductions to the carrying values of the materials and supplies inventories included in the Company's consolidated balance sheets and as charges in other expense in the consolidated statements of operations. Commodity inventories are carried at the lower of cost or market, on a first-in, first-out basis. The Company's commodity inventories consist of oil, NGL, gas and diesel volumes held in storage or as linefill in pipelines. Any valuation allowances of commodity inventories are recorded as reductions to the carrying values of the commodity inventories included in the Company's consolidated balance sheets and as charges to other expense in the consolidated statements of operations. The components of inventories are as follows: As of December 31, 2022 2021 (in millions) Materials and supplies $ 146 $ 99 Commodities 278 270 Total inventories $ 424 $ 369 Investment in affiliate. Based on the Company's ownership in ProPetro Holding Corp. ("ProPetro") and representation on the ProPetro board of directors, ProPetro is considered an affiliate and deemed to be a related party. The Company uses the fair value option to account for its equity method investment in ProPetro with any changes in fair value recorded in interest and other income (loss) in the consolidated statements of operations. The carrying value of the Company's investment in ProPetro is included in investment in affiliate in the consolidated balance sheets. See Note 4 , Note 12 and Note 15 for additional information. Short-term investments. During the year ended December 31, 2022, the Company's short-term investments included commercial paper investments that were carried at amortized cost and classified as held-to-maturity as the Company had the intent and ability to hold them until they matured. Commercial paper is included in cash and cash equivalents if it has maturity dates that are less than 90 days at the date of purchase; otherwise, investments are reflected in short-term investments in the consolidated balance sheets based on their maturity dates. As of December 31, 2022, all commercial paper investments held as short-term investments had matured. In October 2021, the Company completed the sale of approximately 20,000 net acres in western Glasscock County (the "Glasscock Divestiture") to Laredo Petroleum, Inc. ("Laredo") in exchange for $137 million in cash and 960 thousand shares of Laredo's common stock. During the year ended December 31, 2022, the Company sold the 960 thousand shares of Laredo common stock. The shares were treated as an investment in equity securities measured at fair value with changes in fair value recorded in interest and other income (loss) in the consolidated statements of operations. See Note 4 and Note 15 for additional information. Oil and gas properties. The Company utilizes the successful efforts method of accounting for its oil and gas properties. Under this method, all costs associated with productive wells and nonproductive development wells are capitalized while nonproductive exploration costs and geological and geophysical expenditures are expensed. Oil and gas leasehold acquisition costs are capitalized when incurred and included as unproved oil and gas properties in the consolidated balance sheets. The Company does not carry the costs of drilling an exploratory well as an asset in its consolidated balance sheets following the completion of drilling unless both of the following conditions are met: (i) the well has found a sufficient quantity of reserves to justify its completion as a producing well and (ii) the Company is making sufficient progress assessing the reserves and the economic and operating viability of the project. The Company's exploratory wells include extension wells that extend the limits of a known reservoir. Due to the capital intensive nature and the geographical location of certain projects, it may take an extended period of time to evaluate the future potential of an exploration project and the economics associated with making a determination on its commercial viability. In these instances, the project's feasibility is not contingent upon price improvements or advances in technology, but rather the Company's ongoing efforts and expenditures related to accurately predicting the hydrocarbon recoverability based on well information, gaining access to other companies' production data in the area, transportation or processing facilities, and/or getting partner approval to drill additional appraisal wells. These activities are ongoing and being pursued constantly. Consequently, the Company's assessment of suspended exploratory/extension well costs is continuous until a decision can be made that the project has found sufficient proved reserves to sanction the project or is determined to be noncommercial and is charged to exploration and abandonments expense. See Note 6 for additional information. As of December 31, 2022, the Company owned a participating interest in 10 gas processing plants, including the related gathering systems. The Company's ownership interests in the gas processing plants are primarily to accommodate handling the Company's gas production and thus are considered a component of the capital and operating costs of the respective fields that the plants service. The operators of the plants process the Company's and third-party gas volumes for a fee. The Company's share of revenues and expenses derived from volumes processed through the plants are reported as components of oil and gas production costs. Revenues generated from the plants for the years ended December 31, 2022, 2021 and 2020 were $274 million, $271 million and $178 million, respectively. Expenses attributable to the plants for the same respective periods were $27 million, $61 million and $76 million. The capitalized costs of the plants are included in proved oil and gas properties and are depleted using the unit-of-production method along with the other capitalized costs of the field that they service. The capitalized costs of proved properties are depleted using the unit-of-production method based on proved reserves. Costs of significant nonproducing properties, wells in the process of being drilled and in-process development projects are excluded from depletion until the related project is completed and proved reserves are established or, if unsuccessful, abandonments expense is recognized. Proceeds from the sales of individual properties and the capitalized costs of individual properties sold or abandoned are credited and charged, respectively, to accumulated depletion, depreciation and amortization, if doing so does not materially impact the depletion rate of its amortization base. Generally, no gain or loss is recorded until an entire amortization base is sold. However, gain or loss is recorded from the sale of less than an entire amortization base if the disposition is significant enough to materially impact the depletion rate of the remaining properties in the amortization base. Other property and equipment, net. Other property and equipment is recorded at cost. The carrying values of other property and equipment, net of accumulated depreciation, as of December 31, 2022 and 2021, respectively, are as follows: As of December 31, 2022 2021 (in millions) Land and buildings (a) $ 835 $ 889 Water infrastructure (b) 709 682 Information technology 55 56 Transport and field equipment (c) 25 29 Furniture and fixtures 21 24 Sand reserves 13 14 Total other property and equipment, net $ 1,658 $ 1,694 ____________________ (a) Includes land, buildings, any related improvements to land and buildings and a finance lease entered into by the Company for its corporate headquarters in Irving, Texas. See Note 10 for additional information. (b) Includes costs for water pipeline infrastructure and water supply wells. (c) Includes vehicles and aircraft. Other property and equipment is net of accumulated depreciation of $371 million and $313 million as of December 31, 2022 and 2021, respectively. Other property and equipment is depreciated over its estimated useful life on a straight-line basis when the asset is placed into service. Buildings are generally depreciated over 20 to 39 years. Water infrastructure is generally depreciated over three three Leases. The Company enters into operating leases for drilling rigs, storage tanks, equipment and buildings, and has one finance lease for its corporate headquarters in Irving, Texas. The Company recognizes lease expense on a straight-line basis over the lease term. Lease right-of-use assets and liabilities are initially recorded on the lease commencement date based on the present value of lease payments over the lease term. As most of the Company's lease contracts do not provide an implicit discount rate, the Company uses its incremental borrowing rate, which is determined based on information available at the commencement date of a lease. Leases may include renewal, purchase or termination options that can extend or shorten the term of the lease. The exercise of those options is at the Company's sole discretion and is evaluated at inception and throughout the contract to determine if a modification of the lease term is required. Leases with an initial term of 12 months or less are not recorded as a lease right-of-use asset and liability. See Note 10 for additional information. Impairment of long-lived assets. The Company performs assessments of its long-lived assets to be held and used, whenever events or circumstances indicate that the carrying value of those assets may not be recoverable. An impairment loss on proved oil and gas properties is indicated if the sum of the expected future cash flows, including cash flows from the Company's water services business that are used in the development of the assets, is less than the carrying amount of the assets, including the carrying value of the Company's water services business. In these circumstances, the Company recognizes an impairment charge for the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. Unproved oil and gas properties are periodically assessed for impairment on a project-by-project basis. These impairment assessments are affected by the results of current and planned exploration activities, commodity price outlooks, planned future property sales or expiration of all or a portion of such projects. If the Company's assessment determines that a project is not expected to be developed, the Company will recognize an impairment charge at that time. Impairment charges for unproved oil and gas properties are recorded in exploration and abandonments expense in the consolidated statements of operations. Whenever events or changes in circumstances indicate that the carrying amount of other long-lived assets, including the Company's operating lease right-of-use assets, may not be recoverable, an impairment assessment is performed and the Company recognizes an impairment charge for the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets determined using either a discounted future cash flow model or another appropriate fair value method. See Note 4 and Note 16 for additional information. Goodwill. Goodwill is assessed for impairment whenever it is more likely than not that events or circumstances indicate the carrying value of a reporting unit exceeds its fair value, but no less often than annually. An impairment charge is recorded for the amount by which the carrying amount exceeds the fair value of a reporting unit in the period it is determined to be impaired. The Company performed its annual quantitative assessment of goodwill during the third quarter of 2022 to determine whether it was more likely than not that the fair value of the Company's reporting unit was less than its carrying amount. See Note 4 for additional information. Capitalized interest. The Company capitalizes interest from external borrowings on expenditures for significant development projects (having an expected construction period of one year or longer) until such projects are ready for their intended use. Capitalized interest is added to the cost of the underlying asset and is amortized over the useful lives of the assets in the same manner as the underlying assets. Asset retirement obligations. The Company records a liability for the fair value of an asset retirement obligation in the period in which the associated asset is acquired or placed into service, if a reasonable estimate of fair value can be made. Fair value is determined using a present value approach, incorporating assumptions about estimated amounts and timing of settlements. Asset retirement obligations are generally capitalized as part of the carrying value of the long-lived asset to which it relates. Conditional asset retirement obligations that meet the definition of liabilities are recorded when incurred and when fair value can be reasonably estimated. The Company includes the current and noncurrent portions of asset retirement obligations in other current liabilities and other liabilities, respectively, in the consolidated balance sheets and expenditures are included as cash used in operating activities in the consolidated statements of cash flows. See Note 9 for additional information. Treasury stock. Treasury stock purchases are recorded at cost. Upon reissuance, the cost of treasury shares held is reduced by the average purchase price per share of the aggregate treasury shares held. Revenue recognition. The Company recognizes revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Oil sales . The Company recognizes oil sales revenue when (i) control/custody transfers to the purchaser and (ii) the agreed-upon index price, net of any price differentials, is fixed and determinable. Any costs incurred prior to the transfer of control to the customer, such as gathering and transportation costs, are recognized as oil and gas production costs. NGL and gas sales . Under the majority of the Company's gas processing contracts, gas is delivered to a midstream processing entity and the Company elects to take residue gas and NGLs in-kind at the tailgate of the gas processing plant. The Company recognizes revenue when the products are delivered (custody transfer) to the ultimate third-party purchaser at a contractually agreed-upon delivery point at a specified index price, with gathering and processing fees recognized as oil and gas production costs. For NGL and gas products that the Company does not take in-kind, the Company recognizes revenue when the products are delivered to the midstream gathering or processing entity at a specified index price, net of downstream gathering and processing fees. Net sales of purchased commodities. The Company enters into pipeline capacity commitments in order to secure available oil, NGL and gas transportation capacity from the Company's areas of production and to secure diesel supply from the Gulf Coast. The Company also enters into purchase commitments to secure sand supply for the Company's operations in the Midland Basin. The Company enters into purchase transactions with third parties and separate sale transactions with third parties to diversify a portion of the Company's oil and gas sales to (i) Gulf Coast refineries, (ii) Gulf Coast and West Coast gas markets and (iii) international oil markets, and to satisfy unused gas pipeline capacity commitments. The Company periodically sells diesel and sand to unaffiliated third parties in the Permian Basin if it has supply in excess of its operational needs. Revenues and expenses from these transactions are generally presented on a gross basis in sales of purchased commodities and purchased commodities expense in the accompanying consolidated statements of operations as the Company acts as a principal in the transaction by assuming both the risks and rewards of ownership, including credit risk, of the commodities purchased and the responsibility to deliver the commodities sold. In conjunction with the Company's downstream sales, the Company also enters into pipeline capacity and storage commitments in order to secure available oil and gas transportation capacity from the Company's areas of production to downstream sales points and storage capacity at downstream sales points. The transportation and storage costs associated with these transactions are included in purchased commodities expense. See Note 14 for additional information. Derivatives. All of the Company's derivatives are accounted for as non-hedge derivatives and are recorded at estimated fair value in the consolidated balance sheets. All changes in the fair values of its derivative contracts are recorded as gains or losses in the earnings of the periods in which they occur. The Company periodically enters into commodity price derivative positions, including oil production derivatives, NGL production derivatives and gas production derivatives. From time to time, the Company enters into contracts that contain embedded derivatives. These contracts are reviewed when they are entered into in order to identify and account for the derivative components. The Company's marketing derivatives, derivatives related to exercised conversion options on convertible senior notes and a derivative associated with contingent consideration were deemed derivatives embedded in host contracts. The Company enters into derivatives under master netting arrangements, which, in an event of default, allows the Company to offset payables to and receivables from the defaulting counterparty. The Company classifies the fair value amounts of derivative assets and liabilities executed under master netting arrangements as net current or noncurrent other assets or net current or noncurrent derivative liabilities, whichever the case may be, by instrument type and counterparty. The Company enters into International Swap Dealers Association Master Agreements ("ISDA Agreements") with its commodity price derivative counterparties. The terms of the ISDA Agreements provide the Company and the counterparties with rights of set off upon the occurrence of defined acts of default by either the Company or a counterparty to a derivative, whereby the party not in default may set off all derivative liabilities owed to the defaulting party against all derivative asset receivables from the defaulting party. See Note 4 and Note 5 for additional information. Income taxes. The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes and net operating loss and tax credit carryforwards. The amount of deferred taxes on these temporary differences is determined using the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, as applicable, based on tax rates and laws in the respective tax jurisdiction enacted as of the balance sheet date. The Company reviews its deferred tax assets for recoverability and establishes a valuation allowance based on projected future taxable income, applicable tax strategies and the expected timing of the reversals of existing temporary differences. A valuation allowance is provided when it is more likely than not (likelihood of greater than 50 percent) that some portion or all of the deferred tax assets will not be realized. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities, based upon the technical merits of the position. If all or a portion of the unrecognized tax benefit is sustained upon examination by the taxing authorities, the tax benefit will be recognized as a reduction to the Company's deferred tax liability and will affect the Company's effective tax rate in the period it is recognized. See Note 17 for additional information. The Company records any tax-related interest charges as interest expense and any tax-related penalties as other expense in the consolidated statements of operations. Stock-based compensation. Stock-based compensation expense for restricted stock awards and units ("Equity Awards") and performance units ("Performance Awards") expected to be settled in the Company's common stock are measured at the grant date or modification date, as applicable, using the fair value of the award, and is recorded, net of estimated forfeitures, on a straight line basis over the requisite service period of the respective award. The fair value of Equity Awards are determined on the grant date or modification date, as applicable, using the prior day's closing share price. The fair value of Performance Awards are determined using a Monte Carlo simulation model. The Company has no program, plan or practice to coordinate the timing of grants of stock-based compensation with the release of material nonpublic information. Equity Awards and Performance Awards are net settled by withholding shares of the Company's common stock to satisfy income tax withholding payments due upon vesting. Remaining vested shares are remitted to individual employee brokerage accounts. Shares to be delivered upon vesting of Equity Awards and Performance Awards are made available from authorized, but unissued, shares. Restricted stock units expected to be settled in cash on their vesting dates, rather than in common stock ("Liability Awards"), are included in accounts payable – due to affiliates in the consolidated balance sheets. The fair value of Liability Awards on the grant date is determined using the prior day's closing share price. The Company recognizes the value of Liability Awards on a straight line basis over the requisite service period of the award. Liability Awards are recorded at fair value as of each balance sheet date using the closing share price on the balance sheet date. Changes in the fair value of Liability Awards are recorded as increases or decreases to stock-based compensation expense. Equity Awards, Performance Awards and Liability Awards participate in dividends during their vesting periods and generally vest over three years. See Note 8 for additional information. Net income (loss) per share. The Company's basic net income per share attributable to common stockholders is computed as (i) net income attributable to common stockholders, (ii) less participating share-based basic earnings (iii) divided by weighted average basic shares outstanding. The Company's diluted net income per share attributable to common stockholders is computed as (i) basic net income attributable to common stockholders, (ii) plus the reallocation of participating earnings, if any, (iii) plus the after-tax interest expense associated with the Company's convertible senior notes that are assumed to be converted into shares (iv) divided by weighted average diluted shares outstanding, which assumes the Company's convertible senior notes were converted into shares of the Company's common stock at the beginning of the reporting period. Diluted net income per share attributable to common stockholders is calculated under both the two-class method and the treasury stock method and the more dilutive of the two calculations is presented. During periods in which the Company realizes a net loss attributable to common stockholders, securities or other contracts to issue common stock would be dilutive to loss per share; therefore, conversion into common stock is assumed not to occur. See Note 18 for additional information. Segments. Based upon how the Company is organized and managed, the Company has one reportable operating segment, which is oil and gas development, exploration and production. The Company considers its water services business and sales of purchased commodities as ancillary to its oil and gas development, exploration and producing activities and manages them to support such activities. In addition, the Company has a single, company-wide management team that allocates capital resources to maximize profitability and measures financial performance as a single enterprise. Adoption of new accounting standards. There have not been any new standards issued that the Company considers material to its accounting or disclosures. |
Acquisitions and Divestiture Ac
Acquisitions and Divestiture Activities | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Acquisitions and Divestiture Activities | Acquisition and Divestiture Activities Acquisitions. The Company regularly seeks to acquire or trade for acreage that complements its operations, provides exploration and development opportunities, increases the lateral length of future horizontal wells and provides superior returns on investment. DoublePoint acquisition . On May 4, 2021, the Company acquired Double Eagle III Midco 1 LLC ("DoublePoint") pursuant to a definitive membership interest purchase agreement dated April 1, 2021 (the "DoublePoint Acquisition") in exchange for 27 million shares of Pioneer common stock and $1.0 billion of cash. The Pioneer stock consideration transferred had a fair value of $4.2 billion. Parsley acquisition. On January 12, 2021, the Company acquired Parsley Energy, Inc., a Delaware corporation that previously traded on the NYSE under the symbol "PE" ("Parsley"), pursuant to the Agreement and Plan of Merger, dated as of October 20, 2020, among Pioneer, certain of its subsidiaries, Parsley and Parsley Energy, LLC (the "Parsley Acquisition"). As part of the Parsley Acquisition, each eligible share of Parsley Class A common stock and each membership interest unit of Parsley Energy, LLC were automatically converted into the right to receive 0.1252 (the "Exchange Ratio") shares of Pioneer common stock. As a result, the Company issued 52 million shares of Pioneer common stock upon the consummation of the Parsley Acquisition, representing total stock consideration transferred of $6.9 billion. Both the Parsley Acquisition and the DoublePoint Acquisition were accounted for using the acquisition method under ASC Topic 805, Business Combinations, which requires all assets acquired and liabilities assumed to be recorded at fair value at the acquisition date. Other acquisitions. During 2022, 2021 and 2020, consideration transferred to acquire primarily undeveloped acreage for future exploration activities in the Spraberry/Wolfcamp field of the Midland Basin totaled $193 million, $58 million and $14 million, respectively. Divestitures. The Company regularly reviews its asset base to identify nonstrategic assets, the disposition of which would increase capital resources available for other activities, create organizational and operational efficiencies and further the Company's objective of maintaining a strong balance sheet to ensure financial flexibility. • During the year ended December 31, 2022, the Company divested certain undeveloped acres and producing wells in the Midland Basin for (i) cash proceeds of $164 million and (ii) ownership interests in certain Midland Basin undeveloped acres and producing wells valued at $8 million. The Company recorded a gain on these sales of $110 million, which is reflected in net gain (loss) on disposition • In February 2022, the Company completed the sale of its equity interest in certain gas gathering and processing systems in northern Martin County for cash proceeds of $125 million (the "Martin County Gas Processing Divestiture"). The sale was treated as a recovery of investment from a partial sale of proved property resulting in no gain or loss being recognized. • In December 2021, the Company completed the sale of its assets in the Delaware Basin (the "Delaware Divestiture") to Continental Resources, Inc. for cash proceeds of $3.0 billion, after normal closing adjustments. The Company recognized a loss of $1.1 billion, which is reflected in net gain (loss) on disposition of assets in the consolidated statements of operations for the year ended December 31, 2021. The Company's Delaware Basin assets were acquired as part of the Parsley Acquisition. • In October 2021, the Company completed the sale of 20 thousand net acres in western Glasscock County to Laredo in exchange for $137 million in cash and 960 thousand shares of Laredo's common stock, representing total consideration transferred of $206 million, after normal closing adjustments. The Company recognized a gain of $1 million, which is reflected in net gain (loss) on disposition of assets in the consolidated statements of operations for the year ended December 31, 2021. • In March 2021, the Company sold its well services business to a third party for (i) net cash proceeds of $20 million and (ii) up to $4 million of additional cash proceeds to be earned through March 2024. The Company recorded a gain on the sale of $9 million, which is reflected in net gain (loss) on disposition of assets in the consolidated statements of operations. • In May 2020, the Company completed the sale of certain vertical wells and approximately 1,500 undeveloped acres in Upton County of the Permian Basin for net cash proceeds of $6 million. The Company recorded a gain of $6 million associated with the sale. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company determines fair value based on the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are based upon inputs that market participants use in pricing an asset or liability, which are characterized according to a hierarchy that prioritizes those inputs based on the degree to which they are observable. Observable inputs represent market data obtained from independent sources, whereas unobservable inputs reflect a company's own market assumptions, which are used if observable inputs are not reasonably available without undue cost and effort. The fair value input hierarchy level to which an asset or liability measurement in its entirety falls is determined based on the lowest level input that is significant to the measurement in its entirety. The three input levels of the fair value hierarchy are as follows: • Level 1 – quoted prices for identical assets or liabilities in active markets. • Level 2 – quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g. interest rates) and inputs derived principally from or corroborated by observable market data by correlation or other means. • Level 3 – unobservable inputs for the asset or liability, typically reflecting management's estimate of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques, including discounted cash flow models. Assets and liabilities measured at fair value on a recurring basis. Assets and liabilities measured at fair value on a recurring basis are as follows: As of December 31, 2022 Fair Value Measurements Quoted Prices in Significant Other Significant Total (in millions) Assets: Investment in affiliate $ 172 $ — $ — $ 172 Deferred compensation plan assets 65 — — 65 Conversion option derivatives — 1 — 1 $ 237 $ 1 $ — $ 238 Liabilities: Marketing derivatives $ — $ — $ 140 $ 140 As of December 31, 2021 Fair Value Measurements Quoted Prices in Significant Other Significant Total (in millions) Assets: Investment in affiliate $ 135 $ — $ — $ 135 Deferred compensation plan assets 74 — — 74 Short-term investments 58 — — 58 $ 267 $ — $ — $ 267 Liabilities: Commodity price derivatives (a) $ — $ 486 $ — $ 486 Marketing derivatives — — 77 77 $ — $ 486 $ 77 $ 563 ______________________ (a) Includes $328 million as of December 31, 2021 of liabilities recorded in the fourth quarter of 2021 related to entering into equal and offsetting oil and gas commodity derivative trades that had the net effect of eliminating future fair value changes to certain of the Company's 2022 derivative obligations. Investment in affiliate . The Company elected the fair value option for measuring its equity method investment in ProPetro. The fair value of the Company's investment in ProPetro common stock is determined using Level 1 inputs based on observable prices on a major exchange. See Note 12 and Note 15 for additional information. Deferred compensation plan assets. The Company's deferred compensation plan assets include investments in equity and mutual fund securities that are actively traded on major exchanges. The fair value of these investments is determined using Level 1 inputs based on observable prices on major exchanges. Short-term investments. In October 2021, the Company received 960 thousand shares of Laredo as partial consideration for its Glasscock Divestiture. The shares were treated as an investment in equity securities measured at fair value. The fair value of the Company's investment in Laredo common stock was determined using Level 1 inputs based on observable prices on a major exchange. During the year ended December 31, 2022, the Company sold all 960 thousand shares of Laredo common stock. See Note 3 and Note 15 for additional information. Conversion option derivatives. In May 2020, the Company issued $1.3 billion principal amount of convertible senior notes due 2025 (the "Convertible Notes"). Certain holders of the Convertible Notes exercised their conversion option during the year ended December 31, 2022. Per the terms of the notes indenture, the Company elected to settle the conversions in cash, with settlement occurring 25 trading days from the notice of conversion (the "Settlement Period"). The Company's election to settle an exercised conversion option in cash results in a forward contract during the Settlement Period that is accounted for as a derivative instrument not designated as a hedge. The change in fair value of the conversion option derivatives during the Settlement Period is primarily determined based on Level 2 inputs related to the daily volumetric weighted average prices ("VWAP") of the Company's common stock during the Settlement Period. See Note 5 , Note 7 and Note 19 for additional information. Commodity price derivatives. The asset and liability measurements for the Company's commodity price derivative contracts are determined using Level 2 inputs. The Company utilizes discounted cash flow and option-pricing models for valuing its commodity price derivatives. The values attributable to the Company's commodity price derivatives were determined based on inputs that include (i) the contracted notional volumes, (ii) independent active market price quotes, (iii) the applicable estimated credit-adjusted risk-free rate yield curve and (iv) the implied rate of volatility inherent in the collar contracts, which is based on active and independent market-quoted volatility factors. The Company's commodity price derivatives represent oil basis swap contracts as of December 31, 2022 and oil and gas swap contracts, collar contracts and basis swap contracts as of December 31, 2021. Commodity price derivative assets and liabilities recorded in the consolidated balance sheets were less than $1 million as of December 31, 2022. See Note 5 for additional information. Marketing derivatives. The Company's marketing derivatives reflect long-term marketing contracts whereby the Company agreed to purchase and simultaneously sell barrels of oil at an oil terminal in Midland, Texas. The price the Company pays to purchase the oil volumes under the purchase contract is based on a Midland oil price and the price the Company receives for the oil volumes sold is the WASP that the non-affiliated counterparty receives for selling oil through a Gulf Coast storage and export facility at prices that are highly correlated with Brent oil prices during the same month of the purchase. Based on the form of the long-term marketing contracts, the Company accounts for the contracts as derivative instruments not designated as hedges. The asset and liability measurements for the long-term marketing contracts are determined using both Level 2 and 3 inputs. The Company utilizes a discounted cash flow model for valuing the marketing derivatives. The values attributable to the Company's marketing derivatives are determined based on Level 2 inputs that include (i) the contracted notional volumes, (ii) independent active market price quotes, (iii) the applicable estimated credit-adjusted risk-free rate yield curve and (iv) stated contractual rates. The Level 3 inputs attributable to the Company's marketing derivatives include the historical monthly differential between Brent oil prices and the corresponding WASP of the counterparty to the marketing derivatives ("WASP Differential Deduction") and, to a lesser extent, an estimated annual cost inflation rate. The average WASP Differential Deduction used in the fair value determination as of December 31, 2022 and 2021 was $1.67 per barrel and $2.19 per barrel, respectively. The WASP Differential Deduction and the estimated annual cost inflation rate reflects management's best estimate of future results utilizing historical performance, but these estimates are not observable inputs by a market participant and contain a high degree of uncertainty. The Company experiences mark-to-market fluctuations in the fair value of its marketing derivatives based on changes in the WASP Differential Deduction if it deviates from historical levels. For example, a 10 percent increase or decrease in the WASP Differential Deduction would impact the fair value of the Company's marketing derivatives recorded by $28 million as of December 31, 2022. See Note 5 for additional information. Assets and liabilities measured at fair value on a nonrecurring basis. Certain assets and liabilities are measured at fair value on a nonrecurring basis. These assets and liabilities are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances. These assets and liabilities can include inventories, proved and unproved oil and gas properties, assets acquired and liabilities assumed in business combinations, goodwill and other long-lived assets that are written down to fair value when they are determined to be impaired or held for sale. Proved oil and gas properties. The Company performs assessments of its proved oil and gas properties, which are accounted for under the successful efforts method of accounting, whenever events or circumstances indicate that the carrying value of those assets may not be recoverable. An impairment loss is indicated if the sum of the expected future cash flows, including cash flows from the Company's water services business that are used in the development of the assets, is less than the carrying amount of the assets, including the carrying value of the water services business. In these circumstances, the Company recognizes an impairment charge for the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. Based on management's commodity price outlooks as December 31, 2022, which represent long-term commodity price outlooks that are internally developed based on third party future commodity price estimates as of the measurement date ("Management's Price Outlook"), the Company determined events and circumstances did not indicate that the carrying value of the Company's proved properties were not recoverable. Unproved oil and gas properties. Unproved oil and gas properties are periodically assessed for impairment on a project-by-project basis. These impairment assessments are affected by the results of current and planned exploration activities, commodity price outlooks, planned future property sales or expiration of all or a portion of such projects. If the Company's assessment determines that a project is not expected to be developed, the Company will recognize an impairment charge at that time. Impairment charges for unproved oil and gas properties are recorded in exploration and abandonments expense in the consolidated statements of operations. During the years ended December 31, 2022, 2021 and 2020, the Company recorded noncash impairment charges of $7 million, $4 million and $11 million, respectively, to exploration and abandonments expense in the consolidated statements of operations. Other long-lived assets. The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If such assets are considered to be impaired, the impairment charge is measured as the amount by which the carrying amount of the asset exceeds its estimated fair value. As a result of the Company's impairment assessments of other long-lived assets, the Company recorded $23 million of noncash impairment charges to other expense in the consolidated statements of operations. See Note 16 for additional information. Goodwill . Goodwill is assessed for impairment whenever it is more likely than not that events or circumstances indicate the carrying value of a reporting unit exceeds its fair value, but no less often than annually. An impairment charge is recorded for the amount by which the carrying amount exceeds the fair value of a reporting unit in the period it is determined to be impaired. Based on the Company's annual assessment of the fair value of goodwill as of July 1, 2022, the Company determined that its goodwill was not impaired. As of December 31, 2022, there were no material changes in events or circumstances that would warrant a reassessment for impairment. Financial instruments not carried at fair value. Carrying values and fair values of financial instruments that are not carried at fair value in the consolidated balance sheets are as follows: As of December 31, 2022 As of December 31, 2021 Carrying Fair Carrying Fair (in millions) Assets: Cash and cash equivalents (a) $ 1,032 $ 1,032 $ 3,847 $ 3,847 Restricted cash (a) (b) $ — $ — $ 37 $ 37 Liabilities: Current portion of long-term debt: Convertible senior notes (c) $ 29 $ 69 $ — $ — Senior notes (c) $ 750 $ 738 $ 244 $ 247 Long-term debt: Convertible senior notes (c) $ 925 $ 2,184 $ 1,307 $ 2,359 Senior notes (c) $ 3,200 $ 2,696 $ 5,381 $ 5,390 ______________________ (a) Fair value approximates carrying value due to the short-term nature of the instruments. (b) Represents funds in escrow for use in deficiency fee payments associated with the Company's South Texas Divestiture. See Note 2 and Note 11 for additional information. (c) Fair value is determined using Level 2 inputs. The Company's senior notes are quoted, but not actively traded on major exchanges; therefore, fair value is based on periodic values as quoted on major exchanges. See Note 7 for additional information. The Company has other financial instruments consisting primarily of receivables, payables, prepaid expenses and other current assets and liabilities that approximate fair value due to the nature of the instrument and their relatively short maturities. Non-financial assets and liabilities initially measured at fair value include assets acquired and liabilities assumed in business combinations, goodwill and asset retirement obligations. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company's derivatives are accounted for as non-hedge derivatives and all changes in the fair values of its derivative contracts are recognized as gains or losses in the earnings of the periods in which they occur. The Company uses credit and other financial criteria to evaluate the credit standing of, and to select, counterparties to its derivative instruments. Although the Company does not obtain collateral or otherwise secure the fair value of its derivative instruments, associated credit risk is mitigated by the Company's credit risk policies and procedures. See Note 2 for additional information. Commodity derivatives. As of December 31, 2022, the Company has outstanding oil derivative contracts with JP Morgan Chase for three thousand Bbls per day of Brent/WTI basis swaps for January 2024 through December 2024. The basis swap contracts fix the basis differential between the WTI index price (the price at which the Company buys Midland Basin oil for transport to the Gulf Coast) and the Brent index price (the price at which a portion of the Midland Basin purchased oil is sold in the Gulf Coast market) at a weighted average differential of $4.33 in order to reduce the Company's basis risk. Marketing derivatives. The Company uses marketing derivatives to diversify its oil pricing to Gulf Coast and international markets. As of December 31, 2022, the Company's marketing derivatives reflect long-term marketing contracts entered into with Occidental Energy Marketing, Inc. ("Oxy") whereby the Company agreed to purchase and simultaneously sell barrels of oil at an oil terminal in Midland, Texas. In October 2019, the Company agreed to purchase and simultaneously sell 50 thousand barrels of oil per day beginning January 1, 2021 and ending December 31, 2026. In April 2022, the Company agreed to purchase and simultaneously sell (i) 40 thousand barrels of oil per day beginning May 1, 2022 and ending April 30, 2027 and (ii) 30 thousand barrels of oil per day beginning August 1, 2022 and ending July 31, 2027. The price the Company pays to purchase the oil volumes under the purchase contracts is based on a Midland WTI price and the price the Company receives for the oil volumes sold is the WASP that Oxy receives for selling oil through a Gulf Coast storage and export facility at prices that are highly correlated with Brent oil prices during the same month of the purchase. Based on the form of the long-term marketing contracts, the Company accounts for the contracts as derivative instruments not designated as hedges. See Note 4 for additional information. Conversion option derivatives . The Company's conversion option derivatives represent the change in the cash settlement obligation that occurs during the Settlement Period related to conversion options exercised by certain holders of the Convertible Notes. For the year ended December 31, 2022, the conversion options attributable to $390 million of the principal amount of the Convertible Notes were exercised by the holders of the notes, of which $29 million remains in the Settlement Period as of December 31, 2022. See Note 4 and Note 7 for additional information. Fair value. The fair value of derivative financial instruments not designated as hedging instruments are as follows: As of December 31, 2022 Type Consolidated Fair Gross Amounts Net Fair Value (in millions) Assets: Conversion option derivatives Other - current $ 1 $ — $ 1 Liabilities: Marketing derivatives Derivatives - current $ 44 $ — $ 44 Marketing derivatives Derivatives - noncurrent $ 96 $ — $ 96 As of December 31, 2021 Type Consolidated Fair Gross Amounts Net Fair Value (in millions) Liabilities: Commodity price derivatives Derivatives - current $ 486 $ — $ 486 Marketing derivatives Derivatives - current $ 52 $ — $ 52 Marketing derivatives Derivatives - noncurrent $ 25 $ — $ 25 Gains and losses recorded to net derivative loss in the consolidated statements of operations related to derivative financial instruments not designated as hedging instruments are as follows: Year Ended December 31, 2022 2021 2020 (in millions) Commodity price derivatives: Noncash derivative gain (loss), net $ 158 $ 437 $ (213) Cash receipts (payments/deferred obligations) on settled derivatives, net (a) (358) (2,595) 66 Total commodity derivative loss, net (200) (2,158) (147) Marketing derivatives: Noncash derivative gain (loss), net (63) 14 (112) Cash payments on settled derivatives, net (66) (39) — Total marketing derivative loss, net (129) (25) (112) Conversion option derivatives: Noncash derivative gain, net 1 — — Cash receipts on settled derivatives, net 13 — — Total conversion option derivative gain, net 14 — — Interest rate derivatives: Cash payments on settled derivatives, net — — (22) Derivative loss, net $ (315) $ (2,183) $ (281) _____________________ (a) The year ended December 31, 2021 includes $521 million of losses attributable to the early settlement of certain 2022 oil and gas commodity derivatives primarily related to (i) the termination of certain of its 2022 oil and gas commodity derivative positions and (ii) entering into equal and offsetting oil and gas commodity derivative trades, which had the net effect of eliminating future fair value changes to certain of its 2022 derivative positions. |
Exploratory Well and Project Co
Exploratory Well and Project Costs | 12 Months Ended |
Dec. 31, 2022 | |
Extractive Industries [Abstract] | |
Exploratory Well and Project Costs | Exploratory Well and Project Costs The Company capitalizes exploratory well and project costs until a determination is made that the well or project has either found proved reserves, is impaired or is sold. The Company's capitalized exploratory well and project costs are included in proved properties in the consolidated balance sheets. If the exploratory well or project is determined to be impaired, the impaired costs are recorded in exploration and abandonments expense in the consolidated statements of operations. The changes in capitalized exploratory well and project costs are as follows: Year Ended December 31, 2022 2021 2020 (in millions) Beginning capitalized exploratory well and project costs $ 632 $ 498 $ 660 Additions to exploratory well and project costs pending the determination of proved reserves 3,341 2,935 1,163 Additions to capitalized exploratory well and project costs from acquisitions — 235 — Reclassifications due to determination of proved reserves (3,139) (2,973) (1,325) Disposition of assets — (63) — Ending capitalized exploratory well and project costs $ 834 $ 632 $ 498 Aging of capitalized exploratory costs and the number of projects for which exploratory well costs have been capitalized for a period of one year or less or more than one year, based on the date drilling was completed, are as follows: Year Ended December 31, 2022 2021 2020 (in millions, except well counts) One year or less $ 834 $ 621 $ 495 More than one year — 11 3 $ 834 $ 632 $ 498 Number of projects with exploratory well costs that have been suspended for a period greater than one year (a) — 3 1 ______________________ (a) The three exploratory wells that were suspended for a period greater than one year as of December 31, 2021 were completed during the first quarter of 2022. The one exploratory well that was suspended for a period greater than one year as of December 31, 2020 was completed in 2021. |
Long-term Debt and Interest Exp
Long-term Debt and Interest Expense | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-term Debt and Interest Expense | Long-term Debt and Interest Expense The components of long-term debt, including the effects of issuance costs and net discounts, are as follows: As of December 31, 2022 As of December 31, 2021 (in millions) Outstanding debt principal balances: 3.950% senior notes due 2022 $ — $ 244 0.550% senior notes due 2023 750 750 0.750% senior callable notes due 2024 — 750 0.250% convertible senior notes due 2025 962 1,323 1.125% senior notes due 2026 750 750 4.450% senior notes due 2026 — 500 5.625% senior notes due 2027 — 179 7.200% senior notes due 2028 241 241 4.125% senior notes due 2028 138 138 1.900% senior notes due 2030 1,100 1,100 2.150% senior notes due 2031 1,000 1,000 4,941 6,975 Issuance costs and discounts, net (37) (43) Total debt 4,904 6,932 Less current portion of long-term debt 779 244 Long-term debt $ 4,125 $ 6,688 Credit facility. The Company maintains a revolving corporate credit facility (the "Credit Facility") with a syndicate of financial institutions ("Syndicate") and has aggregate loan commitments of $2.0 billion. The Credit Facility has a maturity date of January 12, 2026. As of December 31, 2022, the Company had no outstanding borrowings under the Credit Facility. The Credit Facility requires the maintenance of a ratio of total debt to book capitalization, subject to certain adjustments, not to exceed 0.65 to 1.0. As of December 31, 2022, the Company was in compliance with its debt covenants. Borrowings under the Credit Facility may be in the form of revolving loans or swing line loans. Revolving loans represent loans made ratably by the Syndicate in accordance with their respective commitments under the Credit Facility and bear interest, at the option of the Company, based on (a) a rate per annum equal to the higher of the prime rate announced from time to time by Wells Fargo Bank, National Association or the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System during the last preceding business day plus 0.5 percent plus a defined alternate base rate spread margin, which is currently 0.25 percent based upon the Company's debt rating or (b) a base Eurodollar rate, plus a margin (the "Applicable Margin"), which is currently 1.25 percent and is also determined by the Company's debt rating. Swing line loans represent loans made by a subset of the lenders in the Syndicate and may not exceed $150 million. Swing line loans under the Credit Facility bear interest at a rate per annum equal to the "ASK" rate for federal funds periodically published by the Dow Jones Market Service plus the Applicable Margin. Letters of credit outstanding under the Credit Facility are subject to a per annum fee, representing the Applicable Margin plus 0.125 percent. The Company also pays commitment fees on undrawn amounts under the Credit Facility that are determined by the Company's debt rating (currently 0.15 percent). Borrowings under the Credit Facility are general unsecured obligations. Assumption of DoublePoint notes and payoff of DoublePoint credit facility. In connection with the completion of the DoublePoint Acquisition, the Company assumed DoublePoint's outstanding senior notes of $650 million in aggregate principal amount of 7.75% senior notes due 2025 (with a fair value of $735 million) and DoublePoint's credit facility with an outstanding balance of $240 million. The Company repaid and terminated the DoublePoint credit facility agreement on May 4, 2021. Assumption of Parsley notes and payoff of Parsley credit facility. In connection with the completion of the Parsley Acquisition, the Company assumed Parsley's outstanding senior notes (the "Parsley Notes") of $2.7 billion in aggregate principal amount (with a fair value of $2.8 billion) and Parsley's credit facility with an outstanding balance of $397 million. The Company's senior notes are structurally subordinated to the outstanding Parsley Notes. The Company repaid and terminated the Parsley credit facility agreement on January 12, 2021. Senior notes. In September 2022, the Company delivered an irrevocable notice of call to the holders of its outstanding 5.625% senior notes due 2027. The 5.625% senior notes due 2027, with a debt principal balance of $179 million, were repaid in October 2022. The Company recorded an $8 million net gain on early extinguishment of debt to other expense associated with the debt repayment. See Note 16 for additional information. In February 2022, the Company paid $1.3 billion to redeem its outstanding 0.750% Senior Notes due 2024 and 4.450% Senior Notes due 2026, having aggregate principal amounts of $750 million and $500 million, respectively. The Company recorded a $47 million loss on early extinguishment of debt to other expense associated with the early redemptions. See Note 16 for additional information. In May 2021, the Company issued $750 million of 0.550% senior notes that will mature May 15, 2023 (the "May 2021 Senior Notes Offering"). The Company received proceeds, net of $4 million of issuance costs and discounts, of $746 million. Interest on the notes is payable on May 15 and November 15 of each year. The Company used $731 million of the proceeds from the May 2021 Senior Notes Offering to redeem DoublePoint's 7.750% senior notes due 2025. Associated with the redemption, the Company recorded a $3 million gain on the early extinguishment of debt to other expense. See Note 16 for additional information. In January 2021, the Company issued $750 million of 0.750% senior callable notes that will mature January 15, 2024, $750 million of 1.125% senior notes that will mature January 15, 2026 and $1.0 billion of 2.150% senior notes that will mature January 15, 2031 (the "January 2021 Senior Notes Offering"). The Company received proceeds, net of $24 million of issuance costs and discounts, of $2.5 billion. Interest on each of the notes is payable on January 15 and July 15 of each year. The Company used the proceeds from the January 2021 Senior Notes Offering to pay (i) $1.6 billion to redeem Parsley's 5.250% senior notes due 2025, Parsley's 5.375% senior notes due 2025 and Jagged Peak's 5.875% senior notes due 2026 (assumed by Parsley in a prior acquisition) and (ii) $852 million to purchase a portion of Parsley's 5.625% senior notes due 2027 and Parsley's 4.125% senior notes due 2028 pursuant to a cash tender offer. In connection with the tender offers, the Company also obtained the requisite consents from holders of Parsley's 5.625% senior notes due 2027 and Parsley's 4.125% senior notes due 2028 to amend the indentures pursuant to which the notes were issued to, among other things, (i) eliminate substantially all of the restrictive covenants and related provisions and certain events of default contained in each indenture and (ii) shorten the minimum notice requirement for optional redemptions to three days. Associated with the redemption and tenders, the Company recognized a $5 million loss on the early extinguishment of debt to other expense. See Note 16 for additional information. The Company's 3.950% senior notes and 3.450% senior notes, with debt principal balances of $244 million and $140 million, respectively, matured and were repaid in July 2022 and January 2021, respectively. The Company funded the repayments with cash on hand. The Company's 0.550% senior notes, with a debt principal balance of $750 million, will mature in May 2023. The 0.550% senior notes are recorded in the current portion of long-term debt in the consolidated balance sheets as of December 31, 2022. The Company's senior notes are general unsecured obligations ranking equally in right of payment with all other senior unsecured indebtedness of the Company and are senior in right of payment to all existing and future subordinated indebtedness of the Company. The Company is a holding company that conducts all of its operations through subsidiaries; consequently, the senior notes are structurally subordinated to all obligations of its subsidiaries. Interest on the Company's senior notes is payable semiannually. Convertible senior notes. The Convertible Notes bear a fixed interest rate of 0.250% per year, with interest payable on May 15 and November 15 of each year. The Convertible Notes will mature on May 15, 2025, unless earlier redeemed, repurchased or converted. The Convertible Notes are unsecured obligations ranking equally in right of payment with all other senior unsecured indebtedness of the Company. The Convertible Notes are convertible into shares of the Company's common stock at an adjusted conversion rate of 10.2823 shares of the Company's common stock per $1,000 principal amount of the Convertible Notes (subject to further adjustment pursuant to the terms of the notes indenture, the "Conversion Rate"), which represents an adjusted conversion price of $97.25 per share (subject to adjustment pursuant to the terms of the notes indenture, the "Conversion Price"). Upon conversion, the Convertible Notes will be settled in cash, shares of the Company's common stock or a combination thereof, at the Company's election. Holders of the Convertible Notes may convert their notes at their option prior to February 15, 2025 under the following circumstances: • during the quarter following any quarter during which the last reported sales price of the Company's common stock for at least 20 of the last 30 consecutive trading days of such quarter exceeds 130 percent of the Conversion Price; • during the five-business day period following any five consecutive trading day period when the trading price of the Convertible Notes is less than 98 percent of the product of the last reported sales price of the Company's common stock and the Conversion Rate; • upon notice of redemption by the Company; or • upon the occurrence of specified corporate events, including certain consolidations or mergers. On or after February 15, 2025, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their notes at any time. The Company may not redeem the Convertible Notes prior to May 20, 2023, and after such date, may redeem the Convertible Notes only if the last reported sale price of the Company's common stock has been at least 130 percent of the Conversion Price for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which the Company provides the notice of redemption. The redemption price is equal to 100 percent of the principal amount of the Convertible Notes to be redeemed, plus accrued and unpaid interest. In connection with the issuance of the Convertible Notes, the Company entered into privately negotiated capped call transactions with certain financial institution counterparties (the "Capped Call"), the purpose of which was to reduce the potential dilution to the Company's common stock upon conversion of the Convertible Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of such converted notes, with such reduction and offset subject to a capped price. The Capped Call transactions have an adjusted strike price of $97.25 per share of common stock and an adjusted capped price of $138.40 per share of common stock. The net cost of $113 million incurred to purchase the Capped Call transactions was recorded as a reduction to additional paid-in capital in the consolidated balance sheets. As of December 31, 2022, the Convertible Notes had an outstanding principal balance of $962 million and unamortized issuance costs of $8 million. The effective annual interest rate on the Convertible Notes is 0.6 percent. Interest expense recognized on the Convertible Notes is as follows: Year Ended December 31, 2022 2021 2020 (in millions) Contractual coupon interest $ 3 $ 3 $ 2 Amortization of issuance discount (a) — — 28 Amortization of capitalized loan fees 4 5 2 $ 7 $ 8 $ 32 ______________________ (a) Upon adoption of ASU 2020-06, the Company no longer amortizes the issuance discount associated with the Convertible Notes to interest expense over the life of the Convertible Notes. Convertible Note conversions. During the last 30 consecutive trading days of the fourth quarter of 2021 and every quarter of 2022, the last reported sale price of the Company's common stock exceeded 130 percent of the Conversion Price for at least 20 trading days, causing the Convertible Notes to become convertible at the option of the holders from January 1, 2022 through March 31, 2023. During the year ended December 31, 2022, certain holders of the Convertible Notes exercised their conversion option resulting in the Company recognizing the following cash receipts and cash payments associated with the conversions: Year Ended December 31, 2022 2021 (in millions) Cash payments: Principal repayments $ 361 $ — Conversion premiums 496 — Cash payments $ 857 $ — Cash receipts: Capped Call proceeds $ 103 $ — Conversion option derivative receipts, net 13 — Cash receipts, net $ 116 $ — The Company recorded the conversion premiums paid, Capped Call proceeds and $26 million of associated issuance fees and deferred taxes attributable to the principal amount of the Convertible Notes converted in additional paid-in-capital. As of December 31, 2022, $29 million of the principal amount of the Convertible Notes remains in the Settlement Period. These Convertible Notes are recorded in the current portion of long-term debt in the consolidated balance sheets as of December 31, 2022. The current portion of Convertible Notes will be cash settled at the end of their respective Settlement Periods during the first quarter of 2023. See Note 4 , Note 5 and Note 19 for additional information. Principal payments scheduled to be made on the Company's long-term debt are as follows (in millions): 2023 $ 779 2024 $ — 2025 $ 933 2026 $ 750 2027 $ — Thereafter $ 2,479 Interest expense activity is as follows: Year Ended December 31, 2022 2021 2020 (in millions) Cash payments for interest $ 138 $ 136 $ 119 Amortization of issuance discounts (premiums), net (2) (4) 29 Amortization of capitalized loan fees 12 14 5 Net changes in accruals (20) 17 (19) Interest incurred 128 163 134 Less capitalized interest — (2) (5) $ 128 $ 161 $ 129 |
Incentive Plans
Incentive Plans | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Incentive Plans | Incentive Plans Deferred compensation retirement plan. The Company's deferred compensation retirement plan allows for qualified officers and certain key employees of the Company to contribute up to 50 percent of their base salary and 100 percent of their annual bonus. The Company provides a matching contribution of 100 percent of the officer's and key employee's contribution limited up to the first 10 percent of their salary. The Company's matching contribution vests immediately. A trust fund has been established by the Company to accumulate the contributions made under this retirement plan. The Company match for the deferred compensation plan is as follows: Year Ended December 31, 2022 2021 2020 (in millions) Deferred compensation plan $ 2 $ 2 $ 1 401(k) plan. The Pioneer Natural Resources USA, Inc. ("Pioneer USA," a wholly-owned subsidiary of the Company) 401(k) and Matching Plan (the "401(k) Plan") is a defined contribution plan established under the Internal Revenue Code Section 401. All regular full-time and part-time employees of Pioneer USA are eligible to participate in the 401(k) Plan on the first day of the month following their date of hire. Participants may contribute up to 80 percent of their annual base salary into the 401(k) Plan. Matching contributions are made to the 401(k) Plan in cash by Pioneer USA in amounts equal to 200 percent of a participant's contributions to the 401(k) Plan that are not in excess of five percent of the participant's annual base salary (the "Matching Contribution"). Each participant's account is credited with the participant's contributions, Matching Contribution and allocations of the Matching Contribution's earnings. Participants are fully vested in their account balances except for Matching Contributions and their proportionate share of 401(k) Plan earnings attributable to Matching Contributions, which proportionately vest over a four-year period that begins on the participant's date of hire. Eligible employees are automatically enrolled in the 401(k) Plan at a contribution rate of five percent of the employee's annual base salary, unless the employee opts out of participation or makes an alternate election within 30 days of becoming eligible for participation. The Company match for the 401(k) Plan is as follows: Year Ended December 31, 2022 2021 2020 (in millions) 401(k) Plan $ 21 $ 17 $ 18 Long-Term Incentive Plan. The Company's Amended and Restated 2006 Long-Term Incentive Plan ("LTIP") provides for the granting of various forms of awards, including stock options, stock appreciation rights, performance units, restricted stock and restricted stock units to directors, officers and employees of the Company. In connection with the Parsley Acquisition, the Company assumed all rights and obligations under the Amended and Restated Parsley Energy, Inc. 2014 Long-Term Incentive Plan (the "2014 Parsley Plan") and the Jagged Peak Energy Inc. 2017 Long-Term Incentive Plan, and together with the 2014 Parsley Plan, (the "Parsley Plans"). The awards outstanding under the Parsley Plans were assumed by the Company and were automatically converted into an award with the right to receive a number of shares of Pioneer common stock that is equal to the product of the number of shares of Parsley common stock subject to such award under the Parsley Plans as of the acquisition date and the Exchange Ratio (0.1252). Shares available for future grant pursuant to awards under the LTIP are as follows: As of December 31, 2022 Approved and authorized awards 12,600,000 2014 Parsley Plan awards available to the LTIP (a) 879,575 Awards issued under plan (9,376,230) 4,103,345 ______________________ (a) Under NYSE rules, the Company added the shares that were available under the 2014 Parsley Plan to the LTIP. These shares can only be used for grants to employees who were not employed or engaged by Pioneer or any of its subsidiaries immediately before the Parsley Acquisition and such awards may only be granted through May 22, 2024, the date that the 2014 Parsley Plan would have otherwise expired. Employee Stock Purchase Plan. The Company's Employee Stock Purchase Plan ("ESPP") allows eligible employees to annually purchase the Company's common stock at a discounted price. Officers of the Company are not eligible to participate in the ESPP. Employee contributions to the ESPP are limited to $21,250 during the eight-month offering period (January 1 to August 31). Participants in the ESPP purchase the Company's common stock at a price that is 15 percent below the closing sales price of the Company's common stock on either the first day or the last day of each offering period, whichever closing sales price is lower. Shares available for future issuance under the ESPP are as follows: As of December 31, 2022 Approved and authorized shares 2,500,000 Shares issued (1,213,133) 1,286,867 Stock-based compensation expense and the associated income tax benefit for awards issued under both the LTIP and ESPP are as follows: Year Ended December 31, 2022 2021 2020 (in millions) Equity Awards $ 44 $ 44 $ 49 Liability Awards (a) 21 17 12 Restricted stock and performance units - Parsley awards (b) — 33 — Performance Awards 32 27 21 ESPP 2 2 2 $ 99 $ 123 $ 84 Capitalized stock-based compensation expense $ 18 $ 17 $ 15 Income tax benefit $ 8 $ 14 $ 7 ______________________ (a) Liability Awards are expected to be settled on their vesting date in cash. As of December 31, 2022 and December 31, 2021, accounts payable – due to affiliates included $6 million and $9 million, respectively, of liabilities attributable to Liability Awards. (b) Represents the accelerated vesting of Parsley restricted stock equity awards and performance units upon completion of the Parsley Acquisition, which was recorded to other expense in the consolidated statements of operations. As of December 31, 2022, there is $91 million of unrecognized stock-based compensation expense related to unvested stock-based compensation awards of which $20 million is attributable to stock-based awards that are expected to be settled on their vesting date in cash, rather than in common stock. The unrecognized compensation expense will be recognized on a straight-line basis over the remaining vesting periods of the awards, which is a period of less than three years on a weighted average basis. Restricted stock awards. The Company routinely awards Equity Awards and Liability Awards as compensation to directors, officers and employees of the Company. Year Ended December 31, 2022 2021 2020 (in millions, except per share data) Equity Awards granted: Weighted average grant-date fair value per share $ 223.05 $ 141.82 $ 108.24 Equity Awards vested: Grant-date fair value $ 62 $ 50 $ 59 Total fair value at vesting $ 109 $ 51 $ 47 Liability Awards vested: Cash paid $ 24 $ 14 $ 16 Performance Awards. Each year, at its discretion, the Company's Board of Directors (the "Board") awards performance units to the Company's officers under the LTIP. The number of shares of common stock to be issued is determined by comparing the Company's total shareholder return to the total shareholder return of a predetermined group of peer companies over the performance period. The Performance Awards vest over a service period of approximately three years. The grant-date fair value of Performance Awards is recorded as stock-based compensation expense ratably over the service period. Year Ended December 31, 2022 2021 2020 (in millions, except per share data) Performance Awards granted: Weighted average grant-date fair value per share $ 331.58 $ 165.32 $ 184.06 Performance Awards vested: Grant-date fair value $ 26 $ 13 $ 10 Total fair value at vesting $ 30 $ 14 $ 5 The fair value of Performance Awards is determined using a Monte Carlo simulation model that utilizes multiple input variables to determine the probability of satisfying the market condition stipulated in the award grant and calculates the fair value of the award. Expected volatilities utilized in the model were estimated using a historical period consistent with the performance period of approximately three years. The risk-free interest rate was based on the United States Treasury rate for a term commensurate with the expected life of the grant. Assumptions used to estimate the fair value of Performance Awards granted in each of the following years are as follows: 2022 2021 2020 Risk-free interest rate 1.37% 0.18% 0.68% Range of volatilities 25% - 105% 25% - 104% 31% - 45% Activity for Equity Awards, Liability Awards, Performance Awards and stock options is as follows: Year Ended December 31, 2022 Equity Awards Liability Awards Performance Awards Stock Options Number of Shares Weighted Number of shares Number of units (a) Weighted Number of shares Beginning awards 741,892 $ 131.83 182,278 304,686 $ 173.39 6,039 Awards granted 249,765 $ 223.05 49,748 114,066 $ 331.58 — Awards forfeited (50,793) $ 151.54 (12,829) (6,226) $ 244.11 — Awards vested (b) (c) (459,571) $ 134.60 (99,502) (144,523) $ 182.95 — Options exercised — $ — — — $ — (6,039) Ending awards 481,293 $ 174.44 119,695 268,003 $ 233.92 — ______________________ (a) Amount reflects the number of performance units initially granted. The actual payout of shares upon vesting may be between zero and 250 percent of the performance units included in this table depending upon the total shareholder return ranking of the Company compared to peer companies at the vesting date. (b) Per the terms of award agreements and elections, the issuance of common stock may be deferred for certain Equity Awards that vest during the period. (c) For Performance Awards, the awards vested reflects the number of performance units that vested upon retirement or departure of eligible officers or when the performance period of the award ended. Awards that vest upon retirement or departure of eligible officers are not transferred to the officer until the original performance period of the award lapses. Of the 144,523 units that vested, 13,718 are associated with eligible officer retirements and departures during the year ended December 31, 2022 that will be issued in future years when the original performance period ends. On December 31, 2022, the performance period ended on 132,163 Performance Awards that earned 0.99 shares for each vested award resulting in 130,855 aggregate shares of common stock being issued on January 3, 2023. Of the 132,163 Performance Awards that lapsed, 1,358 units were associated with Performance Awards that vested in prior years upon retirement or departure of eligible officers. |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2022 | |
Asset Retirement Obligation [Abstract] | |
Asset Retirement Obligations | Asset Retirement ObligationsThe Company's asset retirement obligations primarily relate to the future plugging and abandonment of wells and related facilities. Market risk premiums associated with asset retirement obligations are estimated to represent a component of the Company's credit-adjusted risk-free rate that is utilized in the calculations of asset retirement obligations. Asset retirement obligations activity is as follows: Year Ended December 31, 2022 2021 (in millions) Beginning asset retirement obligations $ 354 $ 282 Liabilities assumed in Parsley Acquisition — 73 Liabilities assumed in DoublePoint Acquisition — 37 New wells placed on production 8 10 Changes in estimates (a) 162 7 Dispositions — (24) Liabilities settled (62) (38) Accretion of discount 15 7 Ending asset retirement obligations 477 354 Less current portion of asset retirement obligations (82) (55) Asset retirement obligations, long-term $ 395 $ 299 _____________________ (a) Changes in estimates are determined based on several factors, including updating abandonment cost estimates using recent actual costs incurred to abandon wells, credit-adjusted risk-free discount rates, economic well life estimates and forecasted timing of abandoning wells. The change in estimate for the year ended December 31, 2022 is primarily due to an increase in abandonment cost estimates based on recent actual costs incurred to abandon wells. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases As of December 31, 2022, the Company has one finance lease for its corporate headquarters office building. The Company's operating leases, as of December 31, 2022, are comprised of drilling rigs, storage tanks, equipment and buildings. The Company's finance lease balances are as follows: As of December 31, Type Consolidated Balance Sheet Location 2022 2021 (in millions) Assets: Finance lease right-of-use asset Other property and equipment, net $ 472 $ 500 Liabilities: Finance lease liability, current Other liabilities - current $ 20 $ 18 Finance lease liability, noncurrent Other liabilities - noncurrent $ 501 $ 521 The components of lease costs, including amounts recoverable from joint operating partners, are as follows: Year Ended December 31, 2022 2021 2020 (in millions) Finance lease cost: Amortization of right-of-use asset $ 28 $ 28 $ 28 Interest on lease liability 16 16 17 Operating lease cost (a) 151 162 151 Short-term lease cost (b) 211 107 23 Variable lease cost (c) 40 59 27 $ 446 $ 372 $ 246 _____________________ (a) Represents straight-line lease costs associated with the Company's operating lease right-of-use assets. (b) Represents costs associated with short-term leases (those with a contractual term of 12 months or less) that are not included in the consolidated balance sheets. (c) Variable lease costs are primarily comprised of the non-lease service component of drilling rig commitments above the minimum required payments. Both the minimum required payments and the non-lease service component of the drilling rig commitments are capitalized as additions to oil and gas properties. The Company subleases to third parties certain office space related to leases acquired by the Company through the Parsley Acquisition. The subleases are classified as operating leases and the Company recognizes sublease income on a straight-line basis over the sublease term. During the years ended December 31, 2022 and 2021, the Company recorded $20 million and $4 million, respectively, to other income in the consolidated statement of operations associated with the subleases. The Company did not recognize sublease income during the year ended December 31, 2020. See Note 15 for additional information. Cash flow information related to leases is as follows: Year Ended December 31, 2022 2021 2020 (in millions) Operating cash flows: Cash payments for operating, short-term and variable leases $ 200 $ 131 $ 83 Cash payments for interest on finance lease $ 16 $ 16 $ 17 Investing cash flows: Cash payments for operating, short-term and variable leases (a) $ 208 $ 191 $ 130 Financing cash flows: Cash payments for principal on finance lease $ 18 $ 17 $ 16 _____________________ (a) Represents costs associated with drilling operations that are capitalized as additions to oil and gas properties. The changes in lease liabilities are as follows: Year Ended December 31, 2022 Year Ended December 31, 2021 Operating Finance Operating Finance (in millions) Beginning lease liabilities $ 364 $ 539 $ 210 $ 556 Liabilities assumed in exchange for new right-of-use assets (a) 149 — 100 — Liabilities assumed in the Parsley Acquisition — — 201 — Liabilities assumed in the DoublePoint Acquisition — — 2 — Contract modifications (b) (6) — 2 — Liabilities settled (153) (18) (158) (17) Accretion of discount on operating leases (c) 7 — 7 — Ending lease liabilities (d) $ 361 $ 521 $ 364 $ 539 ______________________ (a) Represents noncash leasing activity. The weighted-average discount rate used to determine the present value of future operating lease payments was 2.5 percent and 1.8 percent for the year ended December 31, 2022 and 2021, respectively. The Company used a 3.0 percent discount rate to determine the present value of its future finance lease payments for its corporate headquarters office building that commenced in 2019. (b) Represents changes in lease liabilities due to modifications of original contract terms. (c) Represents imputed interest on discounted future cash payments of operating leases. (d) As of December 31, 2022, the weighted-average remaining lease term of the Company's operating and finance leases is five six Maturities of lease liabilities are as follows: As of December 31, 2022 Operating Finance (in millions) 2023 $ 132 $ 35 2024 93 35 2025 42 36 2026 20 36 2027 20 37 Thereafter 78 491 Total lease payments 385 670 Less present value discount (24) (149) Present value of lease liabilities $ 361 $ 521 |
Leases | Leases As of December 31, 2022, the Company has one finance lease for its corporate headquarters office building. The Company's operating leases, as of December 31, 2022, are comprised of drilling rigs, storage tanks, equipment and buildings. The Company's finance lease balances are as follows: As of December 31, Type Consolidated Balance Sheet Location 2022 2021 (in millions) Assets: Finance lease right-of-use asset Other property and equipment, net $ 472 $ 500 Liabilities: Finance lease liability, current Other liabilities - current $ 20 $ 18 Finance lease liability, noncurrent Other liabilities - noncurrent $ 501 $ 521 The components of lease costs, including amounts recoverable from joint operating partners, are as follows: Year Ended December 31, 2022 2021 2020 (in millions) Finance lease cost: Amortization of right-of-use asset $ 28 $ 28 $ 28 Interest on lease liability 16 16 17 Operating lease cost (a) 151 162 151 Short-term lease cost (b) 211 107 23 Variable lease cost (c) 40 59 27 $ 446 $ 372 $ 246 _____________________ (a) Represents straight-line lease costs associated with the Company's operating lease right-of-use assets. (b) Represents costs associated with short-term leases (those with a contractual term of 12 months or less) that are not included in the consolidated balance sheets. (c) Variable lease costs are primarily comprised of the non-lease service component of drilling rig commitments above the minimum required payments. Both the minimum required payments and the non-lease service component of the drilling rig commitments are capitalized as additions to oil and gas properties. The Company subleases to third parties certain office space related to leases acquired by the Company through the Parsley Acquisition. The subleases are classified as operating leases and the Company recognizes sublease income on a straight-line basis over the sublease term. During the years ended December 31, 2022 and 2021, the Company recorded $20 million and $4 million, respectively, to other income in the consolidated statement of operations associated with the subleases. The Company did not recognize sublease income during the year ended December 31, 2020. See Note 15 for additional information. Cash flow information related to leases is as follows: Year Ended December 31, 2022 2021 2020 (in millions) Operating cash flows: Cash payments for operating, short-term and variable leases $ 200 $ 131 $ 83 Cash payments for interest on finance lease $ 16 $ 16 $ 17 Investing cash flows: Cash payments for operating, short-term and variable leases (a) $ 208 $ 191 $ 130 Financing cash flows: Cash payments for principal on finance lease $ 18 $ 17 $ 16 _____________________ (a) Represents costs associated with drilling operations that are capitalized as additions to oil and gas properties. The changes in lease liabilities are as follows: Year Ended December 31, 2022 Year Ended December 31, 2021 Operating Finance Operating Finance (in millions) Beginning lease liabilities $ 364 $ 539 $ 210 $ 556 Liabilities assumed in exchange for new right-of-use assets (a) 149 — 100 — Liabilities assumed in the Parsley Acquisition — — 201 — Liabilities assumed in the DoublePoint Acquisition — — 2 — Contract modifications (b) (6) — 2 — Liabilities settled (153) (18) (158) (17) Accretion of discount on operating leases (c) 7 — 7 — Ending lease liabilities (d) $ 361 $ 521 $ 364 $ 539 ______________________ (a) Represents noncash leasing activity. The weighted-average discount rate used to determine the present value of future operating lease payments was 2.5 percent and 1.8 percent for the year ended December 31, 2022 and 2021, respectively. The Company used a 3.0 percent discount rate to determine the present value of its future finance lease payments for its corporate headquarters office building that commenced in 2019. (b) Represents changes in lease liabilities due to modifications of original contract terms. (c) Represents imputed interest on discounted future cash payments of operating leases. (d) As of December 31, 2022, the weighted-average remaining lease term of the Company's operating and finance leases is five six Maturities of lease liabilities are as follows: As of December 31, 2022 Operating Finance (in millions) 2023 $ 132 $ 35 2024 93 35 2025 42 36 2026 20 36 2027 20 37 Thereafter 78 491 Total lease payments 385 670 Less present value discount (24) (149) Present value of lease liabilities $ 361 $ 521 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Severance agreements. As of December 31, 2022, the Company has entered into severance and change in control agreements with certain of its officers and key employees. Indemnifications. The Company has agreed to indemnify its directors and certain of its officers, employees and agents with respect to claims and damages arising from acts or omissions taken in such capacity, as well as with respect to certain litigation. Legal actions. The Company is party to various proceedings and claims incidental to its business. While many of these matters involve inherent uncertainty, the Company believes that the amount of the liability, if any, ultimately incurred with respect to these proceedings and claims will not have a material adverse effect on the Company's consolidated financial position as a whole or on its liquidity, capital resources or future annual results of operations. The Company records reserves for contingencies when information available indicates that a loss is probable and the amount of the loss can be reasonably estimated. Significant judgement is required in making these estimates and the Company's final liabilities may ultimately be materially different. Environmental. Environmental expenditures that relate to an existing condition caused by past operations and that have no future economic benefits are expensed. Environmental expenditures that extend the life of the related property or mitigate or prevent future environmental contamination are capitalized. Liabilities for expenditures that will not qualify for capitalization are recorded when environmental assessment and/or remediation is probable and the costs can be reasonably estimated. Such liabilities are undiscounted unless the timing of cash payments for the liability is fixed or reliably determinable. Environmental liabilities normally involve estimates that are subject to revision until settlement or remediation occurs. Obligations following divestitures. In connection with its divestiture transactions, the Company may retain certain liabilities and provide the purchaser certain indemnifications, subject to defined limitations, which may apply to identified pre-closing matters, including matters of litigation, environmental contingencies, royalties and income taxes. The Company does not recognize a liability if the fair value of the divestiture obligation is immaterial or the likelihood of making payments for the retained obligation is remote. South Texas Divestiture. In conjunction with the South Texas Divestiture, the Company transferred its long-term midstream agreements and associated minimum volume commitments ("MVCs") to the buyer. However, the Company retained the obligation to pay 100 percent of any deficiency fees associated with the MVCs from January 2019 through July 2022. During the years ended December 31, 2022 and 2021, the Company paid $173 million and $147 million, respectively, related to the MVCs deficiency fees. The buyer was required to reimburse the Company for 18 percent of the deficiency fees paid by the Company from January 2019 through July 2022 in installments beginning in 2023 through 2025. During the year ended December 31, 2022, the Company received the deficiency fee reimbursements of $89 million due to a change in control of the buyer, which resulted in the acceleration of the deficiency fee installments. Firm purchase, gathering, processing, transportation, fractionation, storage and service commitments. From time to time, the Company enters into, and as of December 31, 2022 was a party to, take-or-pay agreements, which include contractual commitments (i) to purchase sand, water and diesel for use in the Company's drilling and completion operations, (ii) with midstream service companies and pipeline carriers for future gathering, processing, transportation, fractionation and storage and (iii) with oilfield services companies that provide drilling, pressure pumping and water disposal services. These commitments are normal and customary for the Company's business activities. Minimum firm commitments for the next five years are as follows: As of December 31, 2022 (in millions) 2023 $ 844 2024 $ 791 2025 $ 787 2026 $ 609 2027 $ 626 Oil and gas delivery and purchase commitments. The Company has contracts that require delivery or purchases of fixed volumes of oil and gas. The Company intends to fulfill its short-term and long-term delivery obligations with the Company's production or from purchases of third party volumes. Delivery and purchase commitments for oil and gas are as follows: As of December 31, 2022 Delivery Purchase Oil Gas Oil (Bbls per day) (MMBtu per day) (Bbls per day) 2023 130,000 428,356 90,000 2024 122,459 408,880 90,000 2025 74,795 345,000 90,000 2026 50,000 223,630 90,000 2027 39,521 129,932 90,000 Thereafter — 101,472 11,230 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions In December 2018, the Company completed the sale of its pressure pumping assets to ProPetro in exchange for 16.6 million shares of ProPetro common stock and $110 million of cash that was received during the first quarter of 2019. ProPetro is considered a related party as the shares received represent 14 percent of ProPetro's outstanding common stock. In addition to the sale of equipment and related facilities, the Company entered into a long-term agreement with ProPetro for it to provide pressure pumping and related services that ended on December 31, 2022. During 2022, the Company entered into two new agreements with ProPetro for pressure pumping services, with one agreement ending in August 2023 and the other ending in August 2024. Under the two new ProPetro agreements, the Company has the right to terminate with 90-days written notice without penalty. Phillip A. Gobe, a nonemployee member of the Board, was appointed by the board of directors of ProPetro to serve as its Executive Chairman in October 2019 and Chief Executive Officer in March 2020, and served as Chief Executive Officer and Chairman of the board of directors of ProPetro through August 31, 2021, at which point he continued as ProPetro's Executive Chairman. In March 2022, Mr. Gobe transitioned to non-executive Chairman of the board of directors of ProPetro. Mark S. Berg, the Company's Executive Vice President, Corporate Operations, serves as a member of the ProPetro board of directors under the Company's right to designate a director to the board of directors of ProPetro so long as the Company owns five percent or more of ProPetro's outstanding common stock. Based on the Company's ownership in ProPetro and representation on the ProPetro board of directors, ProPetro is considered an affiliate and deemed to be a related party. Transactions for ProPetro pressure pumping related services were capitalized in oil and gas properties or charged to other expense as incurred. ProPetro pressure pumping related service charges are as follows: Year Ended December 31, 2022 2021 2020 (in millions) Pressure pumping related service charges $ 342 $ 406 $ 238 As of December 31, 2022 As of December 31, 2021 (in millions) Accounts payable - due to affiliate $ 44 $ 66 The Company discloses ProPetro's summarized financial information on a one-quarter lag as it enables the Company to report its quarterly results independent from the timing of when ProPetro reports its results. Summarized financial information for ProPetro is as follows: Nine Months Ended Year Ended December 31, 2021 2020 (in millions) Revenue - service revenue $ 931 $ 875 $ 789 Cost of services (exclusive of depreciation and amortization) $ 640 $ 662 $ 584 Net loss $ (11) $ (54) $ (107) |
Major Customers
Major Customers | 12 Months Ended |
Dec. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
Major Customers | Major Customers Purchasers of the Company's oil, NGL and gas production that individually accounted for 10 percent or more of the Company's oil and gas revenues in at least one of the three years ended December 31, 2022 are as follows: Year Ended December 31, 2022 2021 2020 Energy Transfer Crude Marketing LLC 23 % 20 % 36 % Shell Trading US Company 14 % 13 % 2 % Occidental Energy Marketing Inc. 12 % 10 % 18 % Plains Marketing L.P. 10 % 9 % 14 % The loss of any of these major purchasers, which primarily purchase the Company's oil production, could have a material adverse effect on the ability of the Company to produce and sell its oil production. Purchasers of the Company's purchased commodities that individually accounted for 10 percent or more of the Company's sales of purchased commodities in at least one of the three years ended December 31, 2022 are as follows: Year Ended December 31, 2022 2021 2020 Occidental Energy Marketing Inc. 14 % 27 % 28 % The loss of the above major purchaser of purchased commodities would not be expected to have a material adverse effect on the ability of the Company to sell commodities it purchases from third parties. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Disaggregated revenue from contracts with purchasers. Revenues on sales of oil, NGLs, gas and purchased oil, gas, diesel and sand are recognized when control of the product is transferred to the purchaser and payment can be reasonably assured. Sales prices for oil, NGLs, gas, diesel and sand are negotiated based on factors normally considered in the industry, such as an index or spot price, distance from the well to the pipeline or market, commodity quality and prevailing supply and demand conditions. Accordingly, the prices received by the Company for oil, NGLs, gas, diesel and sand generally fluctuate similar to changes in the relevant market index prices. Disaggregated revenue from contracts with purchasers by product type is as follows: Year Ended December 31, 2022 2021 2020 (in millions) Oil sales $ 12,289 $ 8,808 $ 2,871 NGL sales 2,204 1,707 490 Gas sales 1,817 988 269 Total oil and gas revenues 16,310 11,503 3,630 Sales of purchased oil 7,992 6,247 3,359 Sales of purchased gas 80 62 24 Sales of purchased diesel — 58 11 Sales of purchased sand 2 — — Total sales of purchased commodities 8,074 6,367 3,394 $ 24,384 $ 17,870 $ 7,024 Performance obligations and contract balances. The majority of the Company's product sale commitments are short-term in nature with a contract term of one year or less. The Company typically satisfies its performance obligations upon transfer of control as described above in Disaggregated revenue from contracts with purchasers and records the related revenue in the month production is delivered to the purchaser. Settlement statements for sales of oil, NGLs, gas and sales of purchased oil and gas may not be received for 30 to 60 days after the date the volumes are delivered, and as a result, the Company is required to estimate the amount of volumes delivered to the purchaser and the price that will be received for the sale of the product. The Company records the differences between estimates and the actual amounts received for product sales in the month that payment is received from the purchaser. The Company records revenues from the sale of purchased diesel and sand upon delivery to the purchaser. As of December 31, 2022 and December 31, 2021, the accounts receivable balance representing amounts due or billable under the terms of contracts with purchasers is $1.8 billion and $1.6 billion, respectively. |
Interest and Other Income (Loss
Interest and Other Income (Loss), Net | 12 Months Ended |
Dec. 31, 2022 | |
Interest and Other Income [Abstract] | |
Interest and Other Income (Loss), Net | Interest and Other Income (Loss), Net The components of interest and other income (loss) are as follows: Year Ended December 31, 2022 2021 2020 (in millions) Investment in affiliate valuation adjustment ( Note 4 ) $ 37 $ 12 $ (64) Interest income 36 1 5 Sublease income ( Note 10 ) 20 4 — Investment in Laredo valuation adjustment ( Note 4 ) 17 (11) — Contingent consideration valuation adjustment ( Note 5 ) — — (42) Deferred compensation plan income (loss), net ( Note 4 ) (7) 10 7 Other 16 7 27 $ 119 $ 23 $ (67) |
Other Expense
Other Expense | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Other Expense | Other Expense The components of other expense are as follows: Year Ended December 31, 2022 2021 2020 (in millions) Loss on early extinguishment of debt, net ( Note 7 ) $ 39 $ 2 $ 27 Unoccupied facility expense (a) 35 38 (1) Termination and idle drilling and frac equipment charges (b) 25 10 80 Legal and environmental contingencies ( Note 11 ) 23 17 12 Impairment of long-lived assets (c) ( Note 4 ) 23 — — Transportation commitment charges (d) 10 22 16 Restructuring charges (e) — 2 79 Parsley Acquisition transaction costs (f) — 211 10 DoublePoint Acquisition transaction costs (g) — 33 — Winter Storm Uri gas commitments (h) — 80 — Vertical integration services income (i) (7) (6) (2) South Texas deficiency fee obligation, net (j) (18) (10) 80 Other 43 11 20 $ 173 $ 410 $ 321 ____________________ (a) Primarily represents facilities expense associated with certain acquired Parsley offices that are no longer occupied by the Company. (b) Includes idle frac equipment fees, frac reservation fees and drilling rig early termination charges. (c) Impairments of long-lived assets in 2022 primarily represents a decrease in fair value of an unoccupied field office and certain operating lease right-of-use assets to their estimated fair values. (d) Primarily represents firm transportation charges on excess pipeline capacity commitments. (e) Primarily represents the Company's 2020 corporate restructuring to reduce its staffing levels to correspond with a planned reduction in future activity levels. (f) Represents costs associated with the Parsley Acquisition, which includes $90 million of employee-related costs and $121 million of transaction-related fees during the year ended December 31, 2021. See Note 3 for additional information. (g) Represents transaction costs associated with the DoublePoint Acquisition. See Note 3 for additional information. (h) Represents costs related to the Company's fulfillment of certain firm gas commitments during Winter Storm Uri in February 2021. (i) Represents net margins (attributable to third party working interest owners) that result from Company-provided vertically integrated services, which are ancillary to and supportive of the Company's oil and gas joint operating activities, and do not represent intercompany transactions. The components of the vertical integration services net margins are as follows: Year Ended December 31, 2022 2021 2020 (in millions) Gross revenues $ 34 $ 40 $ 42 Gross costs and expenses $ 27 $ 34 $ 40 (j) Represents changes to the Company's forecasted MVCs deficiency fee obligation and related receivable associated with the South Texas Divestiture. See Note 11 for additional information. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThe Company and its eligible subsidiaries file a consolidated U.S. federal income tax return. Certain subsidiaries are not eligible to be included in the consolidated U.S. federal income tax return and separate provisions for income taxes have been determined for these entities or groups of entities. The tax returns and the amount of taxable income or loss are subject to examination by U.S. federal, state, local and foreign taxing authorities. The Company continually assesses both positive and negative evidence to determine whether it is more likely than not that deferred tax assets can be realized prior to their expiration. Pioneer monitors Company-specific, oil and gas industry and worldwide economic factors and based on that information, along with other data, reassesses the likelihood that the Company's net operating loss carryforwards ("NOLs") and other deferred tax attributes in the U.S. federal, state, local and foreign tax jurisdictions will be utilized prior to their expiration. DoublePoint Acquisition. During the year ended December 31, 2021, the Company purchased all the membership interests of DoublePoint, a disregarded entity for federal income tax purposes. As a result, for tax purposes, the Company recorded the cost basis in the assets acquired equal to its purchase price (i.e. stepped-up basis). Parsley Acquisition. For federal income tax purposes, the Parsley Acquisition qualified as a tax-free merger whereby the Company acquired carryover tax basis in Parsley's assets and liabilities. During the year ended December 31, 2021, the Company recorded a deferred tax liability of $133 million associated with the acquired assets. Included in the deferred tax liability are deferred tax asset attributes acquired from Parsley, which primarily consisted of NOLs of $2.3 billion that are subject to an annual limitation under Internal Revenue Code Section 382. As of December 31, 2022, $1.2 billion of the acquired NOLs have been realized. The Company believes it is more likely than not that the remaining acquired NOLs will be utilized before they expire. Offsetting the deferred tax asset attributes are deferred tax liability attributes, primarily related to the cost basis in oil and gas properties for tax purposes being less than the recorded book amounts. Enactment of the Inflation Reduction Act of 2022. On August 16, 2022, President Biden signed into law the Inflation Reduction Act of 2022 (the "IRA"), which includes, among other things, a corporate alternative minimum tax (the "CAMT"). Under the CAMT, a 15 percent minimum tax will be imposed on certain adjusted financial statement income of "applicable corporations," which is effective for tax years beginning after December 31, 2022. The CAMT generally treats a corporation as an "applicable corporation" in any taxable year in which the "average annual adjusted financial statement income" of the corporation and certain of its subsidiaries and affiliates for a three-taxable-year period ending prior to such taxable year exceeds $1 billion. The IRA also establishes a one percent excise tax on stock repurchases made by publicly traded U.S. corporations. The excise tax is effective for any stock repurchases after December 31, 2022. The IRA did not impact the Company's current year tax provision or the Company's consolidated financial statements, but the new provisions could impact future periods. Enactment of the Consolidated Appropriations Act, 2021. On December 27, 2020, President Trump signed into law the Consolidated Appropriations Act, 2021 (the "Act"). The Act includes many tax provisions, including the extension of various expiring provisions, extensions and expansions of certain earlier pandemic tax relief provisions, among other things. The Act did not have a material impact on the Company's tax provisions or the Company's consolidated financial statements. Enactment of the Coronavirus Aid, Relief and Economic Security Act. On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief and Economic Security Act ("CARES Act"). The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. The CARES Act did not have a material impact on the Company's tax provisions or the Company's consolidated financial statements. Uncertain tax positions . The Company had state unrecognized tax benefits ("UTBs") for the 2013 tax year and for the tax years of 2015 through 2018 resulting from research and experimental expenditures related to horizontal drilling and completion innovations. In July 2022, the Company and the state taxing authorities effectively settled the uncertain tax positions for all years. As of December 31, 2022, the Company no longer has any UTBs. Unrecognized tax benefit activity is as follows: Year Ended December 31, 2022 2021 2020 (in millions) Beginning unrecognized tax benefits $ 27 $ — $ 39 Current year additions — 27 — Effectively settled tax positions (27) — (39) Ending unrecognized tax benefits $ — $ 27 $ — Other tax matters. Net tax refunds (payments) related to filed tax returns are as follows: Year Ended December 31, 2022 2021 2020 (in millions) Tax refunds (payments), net (a) $ (445) $ (1) $ 13 ____________________ (a) Represents state tax payments of $21 million, $3 million and $3 million for the years ended December 31, 2022, 2021 and 2020, respectively, U.S. net federal tax payments of $424 million for the year ended December 31, 2022 and U.S. federal tax refunds of $2 million and $16 million for the years ended December 31, 2021 and 2020, respectively. The Company files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. As of December 31, 2022, there are no proposed adjustments in any jurisdiction that would have a significant effect on the Company's future results of operations or financial position. The earliest open years in the Company's key jurisdictions are as follows: U.S. federal 2021 Various U.S. states 2014 Income tax benefit (provision) is as follows: Year Ended December 31, 2022 2021 2020 (in millions) Current: U.S. federal $ (260) $ (1) $ 12 U.S. state (39) (44) (3) Current income tax benefit (provision) (299) (45) 9 Deferred: U.S. federal (1,788) (585) 55 U.S. state (19) 2 (3) Deferred income tax benefit (provision) (1,807) (583) 52 Income tax benefit (provision) $ (2,106) $ (628) $ 61 The effective tax rate for income (loss) is reconciled to the United States federal statutory rate as follows: Year Ended December 31, 2022 2021 2020 (in millions, except percentages) Income (loss) before income taxes $ 9,951 $ 2,746 $ (261) Federal statutory income tax rate 21 % 21 % 21 % Benefit (provision) for federal income taxes at the statutory rate (2,090) (577) 55 State income tax provision (net of federal tax) (45) (33) (5) Transaction costs — (6) — Other 29 (12) 11 Income tax benefit (provision) $ (2,106) $ (628) $ 61 Effective tax rate 21 % 23 % 23 % Significant components of deferred tax assets and deferred tax liabilities are as follows: As of December 31, 2022 2021 (in millions) Deferred tax assets: Net operating loss carryforward (a) $ 225 $ 1,263 Credit carryforwards — 110 Lease deferred tax assets 190 196 Asset retirement obligations 104 77 Net deferred hedge losses 33 167 Incentive plans 25 27 Convertible debt 2 17 South Texas Divestiture — 41 Other 54 60 Deferred tax assets 633 1,958 Deferred tax liabilities: Oil and gas properties, principally due to differences in basis, depletion and the deduction of intangible drilling costs for tax purposes (4,186) (3,664) Other property and equipment, principally due to the deduction of bonus depreciation for tax purposes (233) (235) Lease deferred tax liabilities (72) (76) South Texas Divestiture — (18) Other (9) (3) Deferred tax liabilities (4,500) (3,996) Net deferred tax liability $ (3,867) $ (2,038) ____________________ (a) Net operating loss carryforwards as of December 31, 2022 consist of $1.1 billion of U.S. federal NOLs that can be carried forward indefinitely. Additionally, the net operating loss carryforwards consist of $177 million of Colorado NOLs that begin to expire in 2027, all of which have a fully offsetting valuation allowance. |
Net Income(Loss) Per Share and
Net Income(Loss) Per Share and Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share and Stockholders' Equity | Net Income (Loss) Per Share and Stockholders' Equity Net income (loss) per share. The components of basic and diluted net income (loss) per share attributable to common stockholders are as follows: Year Ended December 31, 2022 2021 2020 (in millions, except per share data) Net income (loss) attributable to common stockholders $ 7,845 $ 2,118 $ (200) Participating share-based earnings (a) (15) (5) — Basic net income (loss) attributable to common stockholders 7,830 2,113 (200) Adjustment to after-tax interest expense to reflect the dilutive impact attributable to Convertible Notes 6 6 — Diluted net income (loss) attributable to common stockholders $ 7,836 $ 2,119 $ (200) Basic weighted average shares outstanding 240 233 165 Contingently issuable stock-based compensation — 1 — Convertible Notes (b) 12 12 — Diluted weighted average shares outstanding 252 246 165 Net income (loss) per share attributable to common stockholders: Basic $ 32.61 $ 9.06 $ (1.21) Diluted $ 31.13 $ 8.61 $ (1.21) ______________________ (a) Unvested Equity Awards represent participating securities because they participate in non-forfeitable dividends with the common equity owners of the Company. Participating share-based earnings represent the distributed and undistributed earnings of the Company attributable to the participating securities. Unvested Equity Awards do not participate in undistributed net losses as they are not contractually obligated to do so. The dilutive effect of the reallocation of participating share-based earnings to diluted net income attributable to common stockholders was negligible. (b) Diluted weighted average common shares outstanding includes the dilutive effect had the Company's Convertible Notes been converted as of the beginning of the years ended December 31, 2022 and 2021, respectively. If converted by the holder, the Company may settle in cash, shares of the Company's common stock or a combination thereof, at the Company's election. See Note 7 for additional information. Stockholders' equity. The Company's return of capital strategies include a base and variable dividend policy and a stock repurchase program. The Board, at its sole discretion, may change its dividend policy and/or the Company's stock repurchase program based on the Company's outlook for commodity prices, liquidity, debt levels, capital resources, quarterly operating cash flows or other factors. Dividends declared by the Board and stock repurchased during the period are presented in the Company's consolidated statements of equity as dividends declared and purchases of treasury stock, respectively. Dividends paid and stock repurchased during the period are presented as cash used in financing activities in the Company's consolidated statements of cash flows. Dividends that are declared and have not been paid, if any, are included in other current liabilities in the consolidated balance sheets. Stock repurchases are included as treasury stock in the consolidated balance sheets. Dividends. Base and variable dividends declared by the Board are as follows: Base Variable Total Total (per share) (per share) (per share) (in millions) 2022: First quarter $ 0.78 $ 3.00 $ 3.78 $ 922 Second quarter 0.78 6.60 7.38 1,788 Third quarter 1.10 7.47 8.57 2,053 Fourth quarter 1.10 4.61 5.71 1,357 $ 3.76 $ 21.68 $ 25.44 $ 6,120 2021: First quarter $ 0.56 $ — $ 0.56 $ 122 Second quarter 0.56 — 0.56 138 Third quarter 0.56 1.51 2.07 508 Fourth quarter 0.62 3.02 3.64 890 $ 2.30 $ 4.53 $ 6.83 $ 1,658 2020: First quarter $ 0.55 $ — $ 0.55 $ 91 Second quarter 0.55 — 0.55 91 Third quarter 0.55 — 0.55 91 Fourth quarter 0.55 — 0.55 91 $ 2.20 $ — $ 2.20 $ 364 The Company can provide no assurance that dividends will be authorized or declared in the future or as to the amount of any future dividends. See Note 19 for additional information. Stock repurchase program . In February 2022, the Board authorized a $4 billion common stock repurchase program. This authorization replaced the previously authorized $2 billion common stock repurchase program, which had $841 million remaining at the time it was replaced. Under this stock repurchase program, the Company may repurchase shares in accordance with applicable securities laws or pursuant to a trading plan meeting the requirements of Rule 10b5-1 under the Securities Act of 1934, which would permit the Company to repurchase shares at times that may otherwise be prohibited under the Company's insider trading policy. Expenditures to acquire shares under the stock repurchase programs are as follows: Year Ended December 31, 2022 2021 2020 (in millions) Shares repurchased (a) $ 1,649 $ 250 $ 160 ______________________ (a) During the year ended December 31, 2022, 7.2 million shares were repurchased under the stock repurchase program, as compared to 1.4 million and 1.5 million shares repurchased during the years ended December 31, 2021 and 2020, respectively. As of December 31, 2022, $2.4 billion remained available for use to repurchase shares under the Company's common stock repurchase program. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Dividends. On February 22, 2023, the Board declared a quarterly base dividend of $1.10 per share and a quarterly variable dividend of $4.48 per share on the Company's outstanding common stock, payable March 17, 2023 to shareholders of record at the close of business on March 6, 2023. Share repurchases. Subsequent to December 31, 2022, pursuant to a Rule 10b5-1 plan, the Company repurchased 1.2 million shares for $250 million under its stock repurchase program. Convertible Note conversions. Subsequent to December 31, 2022, the Company settled certain conversion options that were exercised by the holders of the Company's Convertible Notes prior to December 31, 2022. The Company settled the conversion options in cash, resulting in total cash payments of $69 million, of which $29 million was a repayment of the Convertible Notes principal balance. Additionally, subsequent to December 31, 2022, certain holders of the Company's Convertible Notes exercised their conversion options attributable to $69 million of the Convertible Notes' principal balance. The Company received Capped Call proceeds of $17 million subsequent to December 31, 2022 associated with conversion options. See Note 7 for additional information. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Principles of consolidation | Principles of consolidation. The consolidated financial statements include the accounts of the Company and its wholly-owned and majority-owned subsidiaries since their acquisition or formation. All material intercompany balances and transactions have been eliminated. |
Use of estimates in the preparation of financial statements | Use of estimates in the preparation of financial statements. Preparation of the Company's consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Depletion of oil and gas properties is determined using estimates of proved oil and gas reserves. There are numerous uncertainties inherent in the estimation of quantities of proved reserves and in the projection of future rates of production and the timing of development expenditures. Similarly, evaluations for impairment of proved and unproved oil and gas properties are subject to numerous uncertainties including, among others, estimates of future recoverable proved and risk-adjusted probable reserves, commodity price outlooks and prevailing market rates of other sources of income and costs. Actual results could differ from the estimates and assumptions utilized. |
Cash and cash equivalents and restricted cash | Cash and cash equivalents. The Company's cash and cash equivalents include depository accounts held by banks and marketable securities (including commercial paper and time deposits) with original issuance maturities of 90 days or less. Restricted cash. The Company's restricted cash included funds held in escrow to cover deficiency fee payments in connection with the Company's 2019 sale of its Eagle Ford assets and other remaining assets in South Texas (the "South Texas Divestiture"). During the year ended December 31, 2022, the Company settled the remaining deficiency fee obligations related to the South Texas Divestiture utilizing the funds held in escrow. Interest income related to restricted cash is recorded in interest and other income in the consolidated statements of operations. |
Accounts receivable, net | Accounts receivable, net. The Company's net accounts receivable balance is primarily comprised of oil and gas sales receivables, joint interest receivables, accounts receivable due from affiliates and other receivables for which the Company does not require collateral security. The Company's share of oil and gas production is sold to various purchasers who must be prequalified under the Company's credit risk policies and procedures. The Company records allowances for doubtful accounts based on historical collection experience, current and future economic and market conditions, the length of time that the accounts receivables have been outstanding and the financial condition of its purchasers. T he Company's credit risk related to collecting accounts receivables is mitigated by using credit and other financial criteria to evaluate the credit standing of the entity obligated to make payment on the accounts receivable, and where appropriate, the Company obtains assurances of payment, such as a guarantee by the parent company of the counterparty, letters of credit or other credit support. |
Inventories | Inventories. The Company's inventories consist of materials, supplies and commodities. The Company's materials and supplies inventory is primarily comprised of oil and gas maintenance materials and repair parts, water, sand and other operating supplies. The materials and supplies inventory is primarily acquired for use in future drilling and production operations or repair operations and is carried at the lower of cost or net realizable value, on a weighted average cost basis. Valuation allowances for materials and supplies inventories are recorded as reductions to the carrying values of the materials and supplies inventories included in the Company's consolidated balance sheets and as charges in other expense in the consolidated statements of operations. Commodity inventories are carried at the lower of cost or market, on a first-in, first-out basis. The Company's commodity inventories consist of oil, NGL, gas and diesel volumes held in storage or as linefill in pipelines. Any valuation allowances of commodity inventories are recorded as reductions to the carrying values of the commodity inventories included in the Company's consolidated balance sheets and as charges to other expense in the consolidated statements of operations. |
Investments in affiliate and short-term investments | Investment in affiliate. Based on the Company's ownership in ProPetro Holding Corp. ("ProPetro") and representation on the ProPetro board of directors, ProPetro is considered an affiliate and deemed to be a related party. The Company uses the fair value option to account for its equity method investment in ProPetro with any changes in fair value recorded in interest and other income (loss) in the consolidated statements of operations. The carrying value of the Company's investment in ProPetro is included in investment in affiliate in the consolidated balance sheets. See Note 4 , Note 12 and Note 15 for additional information. Short-term investments. During the year ended December 31, 2022, the Company's short-term investments included commercial paper investments that were carried at amortized cost and classified as held-to-maturity as the Company had the intent and ability to hold them until they matured. Commercial paper is included in cash and cash equivalents if it has maturity dates that are less than 90 days at the date of purchase; otherwise, investments are reflected in short-term investments in the consolidated balance sheets based on their maturity dates. As of December 31, 2022, all commercial paper investments held as short-term investments had matured. |
Oil and gas properties | Oil and gas properties. The Company utilizes the successful efforts method of accounting for its oil and gas properties. Under this method, all costs associated with productive wells and nonproductive development wells are capitalized while nonproductive exploration costs and geological and geophysical expenditures are expensed. Oil and gas leasehold acquisition costs are capitalized when incurred and included as unproved oil and gas properties in the consolidated balance sheets. The Company does not carry the costs of drilling an exploratory well as an asset in its consolidated balance sheets following the completion of drilling unless both of the following conditions are met: (i) the well has found a sufficient quantity of reserves to justify its completion as a producing well and (ii) the Company is making sufficient progress assessing the reserves and the economic and operating viability of the project. The Company's exploratory wells include extension wells that extend the limits of a known reservoir. Due to the capital intensive nature and the geographical location of certain projects, it may take an extended period of time to evaluate the future potential of an exploration project and the economics associated with making a determination on its commercial viability. In these instances, the project's feasibility is not contingent upon price improvements or advances in technology, but rather the Company's ongoing efforts and expenditures related to accurately predicting the hydrocarbon recoverability based on well information, gaining access to other companies' production data in the area, transportation or processing facilities, and/or getting partner approval to drill additional appraisal wells. These activities are ongoing and being pursued constantly. Consequently, the Company's assessment of suspended exploratory/extension well costs is continuous until a decision can be made that the project has found sufficient proved reserves to sanction the project or is determined to be noncommercial and is charged to exploration and abandonments expense. See Note 6 for additional information. As of December 31, 2022, the Company owned a participating interest in 10 gas processing plants, including the related gathering systems. The Company's ownership interests in the gas processing plants are primarily to accommodate handling the Company's gas production and thus are considered a component of the capital and operating costs of the respective fields that the plants service. The operators of the plants process the Company's and third-party gas volumes for a fee. The Company's share of revenues and expenses derived from volumes processed through the plants are reported as components of oil and gas production costs. Revenues generated from the plants for the years ended December 31, 2022, 2021 and 2020 were $274 million, $271 million and $178 million, respectively. Expenses attributable to the plants for the same respective periods were $27 million, $61 million and $76 million. The capitalized costs of the plants are included in proved oil and gas properties and are depleted using the unit-of-production method along with the other capitalized costs of the field that they service. The capitalized costs of proved properties are depleted using the unit-of-production method based on proved reserves. Costs of significant nonproducing properties, wells in the process of being drilled and in-process development projects are excluded from depletion until the related project is completed and proved reserves are established or, if unsuccessful, abandonments expense is recognized. Proceeds from the sales of individual properties and the capitalized costs of individual properties sold or abandoned are credited and charged, respectively, to accumulated depletion, depreciation and amortization, if doing so does not materially impact the depletion rate of its amortization base. Generally, no gain or loss is recorded until an entire amortization base is sold. However, gain or loss is recorded from the sale of less than an entire amortization base if the disposition is significant enough to materially impact the depletion rate of the remaining properties in the amortization base. |
Other property and equipment, net | Other property and equipment, net. Other property and equipment is recorded at cost. The carrying values of other property and equipment, net of accumulated depreciation, as of December 31, 2022 and 2021, respectively, are as follows: As of December 31, 2022 2021 (in millions) Land and buildings (a) $ 835 $ 889 Water infrastructure (b) 709 682 Information technology 55 56 Transport and field equipment (c) 25 29 Furniture and fixtures 21 24 Sand reserves 13 14 Total other property and equipment, net $ 1,658 $ 1,694 ____________________ (a) Includes land, buildings, any related improvements to land and buildings and a finance lease entered into by the Company for its corporate headquarters in Irving, Texas. See Note 10 for additional information. (b) Includes costs for water pipeline infrastructure and water supply wells. (c) Includes vehicles and aircraft. Other property and equipment is net of accumulated depreciation of $371 million and $313 million as of December 31, 2022 and 2021, respectively. Other property and equipment is depreciated over its estimated useful life on a straight-line basis when the asset is placed into service. Buildings are generally depreciated over 20 to 39 years. Water infrastructure is generally depreciated over three three |
Leases | Leases. The Company enters into operating leases for drilling rigs, storage tanks, equipment and buildings, and has one finance lease for its corporate headquarters in Irving, Texas. The Company recognizes lease expense on a straight-line basis over the lease term. Lease right-of-use assets and liabilities are initially recorded on the lease commencement date based on the present value of lease payments over the lease term. As most of the Company's lease contracts do not provide an implicit discount rate, the Company uses its incremental borrowing rate, which is determined based on information available at the commencement date of a lease. Leases may include renewal, purchase or termination options that can extend or shorten the term of the lease. The exercise of those options is at the Company's sole discretion and is evaluated at inception and throughout |
Impairment of long-lived assets | Impairment of long-lived assets. The Company performs assessments of its long-lived assets to be held and used, whenever events or circumstances indicate that the carrying value of those assets may not be recoverable. An impairment loss on proved oil and gas properties is indicated if the sum of the expected future cash flows, including cash flows from the Company's water services business that are used in the development of the assets, is less than the carrying amount of the assets, including the carrying value of the Company's water services business. In these circumstances, the Company recognizes an impairment charge for the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. Unproved oil and gas properties are periodically assessed for impairment on a project-by-project basis. These impairment assessments are affected by the results of current and planned exploration activities, commodity price outlooks, planned future property sales or expiration of all or a portion of such projects. If the Company's assessment determines that a project is not expected to be developed, the Company will recognize an impairment charge at that time. Impairment charges for unproved oil and gas properties are recorded in exploration and abandonments expense in the consolidated statements of operations. Whenever events or changes in circumstances indicate that the carrying amount of other long-lived assets, including the Company's operating lease right-of-use assets, may not be recoverable, an impairment assessment is performed and the Company recognizes an impairment charge for the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets determined using either a discounted future cash flow model or another appropriate fair value method. |
Goodwill | Goodwill. Goodwill is assessed for impairment whenever it is more likely than not that events or circumstances indicate the carrying value of a reporting unit exceeds its fair value, but no less often than annually. An impairment charge is recorded for the amount by which the carrying amount exceeds the fair value of a reporting unit in the period it is determined to be impaired. |
Capitalized interest | Capitalized interest. The Company capitalizes interest from external borrowings on expenditures for significant development projects (having an expected construction period of one year or longer) until such projects are ready for their intended use. Capitalized interest is added to the cost of the underlying asset and is amortized over the useful lives of the assets in the same manner as the underlying assets. |
Asset retirement obligations | Asset retirement obligations. The Company records a liability for the fair value of an asset retirement obligation in the period in which the associated asset is acquired or placed into service, if a reasonable estimate of fair value can be made. Fair value is determined using a present value approach, incorporating assumptions about estimated amounts and timing of settlements. Asset retirement obligations are generally capitalized as part of the carrying value of the long-lived asset to which it relates. Conditional asset retirement obligations that meet the definition of liabilities are recorded when incurred and when fair value can be reasonably estimated. |
Treasury stock | Treasury stock. Treasury stock purchases are recorded at cost. Upon reissuance, the cost of treasury shares held is reduced by the average purchase price per share of the aggregate treasury shares held. |
Revenue recognition | Revenue recognition. The Company recognizes revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Oil sales . The Company recognizes oil sales revenue when (i) control/custody transfers to the purchaser and (ii) the agreed-upon index price, net of any price differentials, is fixed and determinable. Any costs incurred prior to the transfer of control to the customer, such as gathering and transportation costs, are recognized as oil and gas production costs. NGL and gas sales . Under the majority of the Company's gas processing contracts, gas is delivered to a midstream processing entity and the Company elects to take residue gas and NGLs in-kind at the tailgate of the gas processing plant. The Company recognizes revenue when the products are delivered (custody transfer) to the ultimate third-party purchaser at a contractually agreed-upon delivery point at a specified index price, with gathering and processing fees recognized as oil and gas production costs. For NGL and gas products that the Company does not take in-kind, the Company recognizes revenue when the products are delivered to the midstream gathering or processing entity at a specified index price, net of downstream gathering and processing fees. |
Derivatives | Derivatives. All of the Company's derivatives are accounted for as non-hedge derivatives and are recorded at estimated fair value in the consolidated balance sheets. All changes in the fair values of its derivative contracts are recorded as gains or losses in the earnings of the periods in which they occur. The Company periodically enters into commodity price derivative positions, including oil production derivatives, NGL production derivatives and gas production derivatives. From time to time, the Company enters into contracts that contain embedded derivatives. These contracts are reviewed when they are entered into in order to identify and account for the derivative components. The Company's marketing derivatives, derivatives related to exercised conversion options on convertible senior notes and a derivative associated with contingent consideration were deemed derivatives embedded in host contracts. The Company enters into derivatives under master netting arrangements, which, in an event of default, allows the Company to offset payables to and receivables from the defaulting counterparty. The Company classifies the fair value amounts of derivative assets and liabilities executed under master netting arrangements as net current or noncurrent other assets or net current or noncurrent derivative liabilities, whichever the case may be, by instrument type and counterparty. |
Income taxes | Income taxes. The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes and net operating loss and tax credit carryforwards. The amount of deferred taxes on these temporary differences is determined using the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, as applicable, based on tax rates and laws in the respective tax jurisdiction enacted as of the balance sheet date. The Company reviews its deferred tax assets for recoverability and establishes a valuation allowance based on projected future taxable income, applicable tax strategies and the expected timing of the reversals of existing temporary differences. A valuation allowance is provided when it is more likely than not (likelihood of greater than 50 percent) that some portion or all of the deferred tax assets will not be realized. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities, based upon the technical merits of the position. If all or a portion of the unrecognized tax benefit is sustained upon examination by the taxing authorities, the tax benefit will be recognized as a reduction to the Company's deferred tax liability and will affect the Company's effective tax rate in the period it is recognized. See Note 17 for additional information. The Company records any tax-related interest charges as interest expense and any tax-related penalties as other expense in the consolidated statements of operations. |
Stock-based compensation | Stock-based compensation. Stock-based compensation expense for restricted stock awards and units ("Equity Awards") and performance units ("Performance Awards") expected to be settled in the Company's common stock are measured at the grant date or modification date, as applicable, using the fair value of the award, and is recorded, net of estimated forfeitures, on a straight line basis over the requisite service period of the respective award. The fair value of Equity Awards are determined on the grant date or modification date, as applicable, using the prior day's closing share price. The fair value of Performance Awards are determined using a Monte Carlo simulation model. The Company has no program, plan or practice to coordinate the timing of grants of stock-based compensation with the release of material nonpublic information. Equity Awards and Performance Awards are net settled by withholding shares of the Company's common stock to satisfy income tax withholding payments due upon vesting. Remaining vested shares are remitted to individual employee brokerage accounts. Shares to be delivered upon vesting of Equity Awards and Performance Awards are made available from authorized, but unissued, shares. Restricted stock units expected to be settled in cash on their vesting dates, rather than in common stock ("Liability Awards"), are included in accounts payable – due to affiliates in the consolidated balance sheets. The fair value of Liability Awards on the grant date is determined using the prior day's closing share price. The Company recognizes the value of Liability Awards on a straight line basis over the requisite service period of the award. Liability Awards are recorded at fair value as of each balance sheet date using the closing share price on the balance sheet date. Changes in the fair value of Liability Awards are recorded as increases or decreases to stock-based compensation expense. |
Net income (loss) per share | Net income (loss) per share. The Company's basic net income per share attributable to common stockholders is computed as (i) net income attributable to common stockholders, (ii) less participating share-based basic earnings (iii) divided by weighted average basic shares outstanding. The Company's diluted net income per share attributable to common stockholders is computed as (i) basic net income attributable to common stockholders, (ii) plus the reallocation of participating earnings, if any, (iii) plus the after-tax interest expense associated with the Company's convertible senior notes that are assumed to be converted into shares (iv) divided by weighted average diluted shares outstanding, which assumes the Company's convertible senior notes were converted into shares of the Company's common stock at the beginning of the reporting period. Diluted net income per share attributable to common stockholders is calculated under both the two-class method and the treasury stock method and the more dilutive of the two calculations is presented. During periods in which the Company realizes a net loss attributable to common stockholders, securities or other contracts to issue common stock would be dilutive to loss per share; therefore, conversion into common stock is assumed not to occur. |
Segments | Segments. Based upon how the Company is organized and managed, the Company has one reportable operating segment, which is oil and gas development, exploration and production. The Company considers its water services business and sales of purchased commodities as ancillary to its oil and gas development, exploration and producing activities and manages them to support such activities. In addition, the Company has a single, company-wide management team that allocates capital resources to maximize profitability and measures financial performance as a single enterprise. |
Adoption of new accounting standards | Adoption of new accounting standards. There have not been any new standards issued that the Company considers material to its accounting or disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of materials and supplies and commodity inventories | The components of inventories are as follows: As of December 31, 2022 2021 (in millions) Materials and supplies $ 146 $ 99 Commodities 278 270 Total inventories $ 424 $ 369 |
Schedule of other property and equipment, net | Other property and equipment, net. Other property and equipment is recorded at cost. The carrying values of other property and equipment, net of accumulated depreciation, as of December 31, 2022 and 2021, respectively, are as follows: As of December 31, 2022 2021 (in millions) Land and buildings (a) $ 835 $ 889 Water infrastructure (b) 709 682 Information technology 55 56 Transport and field equipment (c) 25 29 Furniture and fixtures 21 24 Sand reserves 13 14 Total other property and equipment, net $ 1,658 $ 1,694 ____________________ (a) Includes land, buildings, any related improvements to land and buildings and a finance lease entered into by the Company for its corporate headquarters in Irving, Texas. See Note 10 for additional information. (b) Includes costs for water pipeline infrastructure and water supply wells. (c) Includes vehicles and aircraft. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities measured at fair value on a recurring basis | Assets and liabilities measured at fair value on a recurring basis are as follows: As of December 31, 2022 Fair Value Measurements Quoted Prices in Significant Other Significant Total (in millions) Assets: Investment in affiliate $ 172 $ — $ — $ 172 Deferred compensation plan assets 65 — — 65 Conversion option derivatives — 1 — 1 $ 237 $ 1 $ — $ 238 Liabilities: Marketing derivatives $ — $ — $ 140 $ 140 As of December 31, 2021 Fair Value Measurements Quoted Prices in Significant Other Significant Total (in millions) Assets: Investment in affiliate $ 135 $ — $ — $ 135 Deferred compensation plan assets 74 — — 74 Short-term investments 58 — — 58 $ 267 $ — $ — $ 267 Liabilities: Commodity price derivatives (a) $ — $ 486 $ — $ 486 Marketing derivatives — — 77 77 $ — $ 486 $ 77 $ 563 ______________________ (a) Includes $328 million as of December 31, 2021 of liabilities recorded in the fourth quarter of 2021 related to entering into equal and offsetting oil and gas commodity derivative trades that had the net effect of eliminating future fair value changes to certain of the Company's 2022 derivative obligations. |
Schedule of carrying values and financial instruments not carried at fair value | Carrying values and fair values of financial instruments that are not carried at fair value in the consolidated balance sheets are as follows: As of December 31, 2022 As of December 31, 2021 Carrying Fair Carrying Fair (in millions) Assets: Cash and cash equivalents (a) $ 1,032 $ 1,032 $ 3,847 $ 3,847 Restricted cash (a) (b) $ — $ — $ 37 $ 37 Liabilities: Current portion of long-term debt: Convertible senior notes (c) $ 29 $ 69 $ — $ — Senior notes (c) $ 750 $ 738 $ 244 $ 247 Long-term debt: Convertible senior notes (c) $ 925 $ 2,184 $ 1,307 $ 2,359 Senior notes (c) $ 3,200 $ 2,696 $ 5,381 $ 5,390 ______________________ (a) Fair value approximates carrying value due to the short-term nature of the instruments. (b) Represents funds in escrow for use in deficiency fee payments associated with the Company's South Texas Divestiture. See Note 2 and Note 11 for additional information. (c) Fair value is determined using Level 2 inputs. The Company's senior notes are quoted, but not actively traded on major exchanges; therefore, fair value is based on periodic values as quoted on major exchanges. See Note 7 for additional information. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of offsetting asset and liability | The fair value of derivative financial instruments not designated as hedging instruments are as follows: As of December 31, 2022 Type Consolidated Fair Gross Amounts Net Fair Value (in millions) Assets: Conversion option derivatives Other - current $ 1 $ — $ 1 Liabilities: Marketing derivatives Derivatives - current $ 44 $ — $ 44 Marketing derivatives Derivatives - noncurrent $ 96 $ — $ 96 As of December 31, 2021 Type Consolidated Fair Gross Amounts Net Fair Value (in millions) Liabilities: Commodity price derivatives Derivatives - current $ 486 $ — $ 486 Marketing derivatives Derivatives - current $ 52 $ — $ 52 Marketing derivatives Derivatives - noncurrent $ 25 $ — $ 25 |
Schedule of derivative gains and losses recognized on statement of operations | Gains and losses recorded to net derivative loss in the consolidated statements of operations related to derivative financial instruments not designated as hedging instruments are as follows: Year Ended December 31, 2022 2021 2020 (in millions) Commodity price derivatives: Noncash derivative gain (loss), net $ 158 $ 437 $ (213) Cash receipts (payments/deferred obligations) on settled derivatives, net (a) (358) (2,595) 66 Total commodity derivative loss, net (200) (2,158) (147) Marketing derivatives: Noncash derivative gain (loss), net (63) 14 (112) Cash payments on settled derivatives, net (66) (39) — Total marketing derivative loss, net (129) (25) (112) Conversion option derivatives: Noncash derivative gain, net 1 — — Cash receipts on settled derivatives, net 13 — — Total conversion option derivative gain, net 14 — — Interest rate derivatives: Cash payments on settled derivatives, net — — (22) Derivative loss, net $ (315) $ (2,183) $ (281) _____________________ (a) The year ended December 31, 2021 includes $521 million of losses attributable to the early settlement of certain 2022 oil and gas commodity derivatives primarily related to (i) the termination of certain of its 2022 oil and gas commodity derivative positions and (ii) entering into equal and offsetting oil and gas commodity derivative trades, which had the net effect of eliminating future fair value changes to certain of its 2022 derivative positions. |
Exploratory Well and Project _2
Exploratory Well and Project Costs (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Extractive Industries [Abstract] | |
Schedule of capitalized exploratory well costs, roll forward | The changes in capitalized exploratory well and project costs are as follows: Year Ended December 31, 2022 2021 2020 (in millions) Beginning capitalized exploratory well and project costs $ 632 $ 498 $ 660 Additions to exploratory well and project costs pending the determination of proved reserves 3,341 2,935 1,163 Additions to capitalized exploratory well and project costs from acquisitions — 235 — Reclassifications due to determination of proved reserves (3,139) (2,973) (1,325) Disposition of assets — (63) — Ending capitalized exploratory well and project costs $ 834 $ 632 $ 498 |
Schedule of capitalized exploratory costs and the number of projects for which exploratory costs have been capitalized | Aging of capitalized exploratory costs and the number of projects for which exploratory well costs have been capitalized for a period of one year or less or more than one year, based on the date drilling was completed, are as follows: Year Ended December 31, 2022 2021 2020 (in millions, except well counts) One year or less $ 834 $ 621 $ 495 More than one year — 11 3 $ 834 $ 632 $ 498 Number of projects with exploratory well costs that have been suspended for a period greater than one year (a) — 3 1 ______________________ (a) The three exploratory wells that were suspended for a period greater than one year as of December 31, 2021 were completed during the first quarter of 2022. The one exploratory well that was suspended for a period greater than one year as of December 31, 2020 was completed in 2021. |
Long-term Debt and Interest E_2
Long-term Debt and Interest Expense (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of components of long-term debt | The components of long-term debt, including the effects of issuance costs and net discounts, are as follows: As of December 31, 2022 As of December 31, 2021 (in millions) Outstanding debt principal balances: 3.950% senior notes due 2022 $ — $ 244 0.550% senior notes due 2023 750 750 0.750% senior callable notes due 2024 — 750 0.250% convertible senior notes due 2025 962 1,323 1.125% senior notes due 2026 750 750 4.450% senior notes due 2026 — 500 5.625% senior notes due 2027 — 179 7.200% senior notes due 2028 241 241 4.125% senior notes due 2028 138 138 1.900% senior notes due 2030 1,100 1,100 2.150% senior notes due 2031 1,000 1,000 4,941 6,975 Issuance costs and discounts, net (37) (43) Total debt 4,904 6,932 Less current portion of long-term debt 779 244 Long-term debt $ 4,125 $ 6,688 |
Schedule of convertible notes | Interest expense recognized on the Convertible Notes is as follows: Year Ended December 31, 2022 2021 2020 (in millions) Contractual coupon interest $ 3 $ 3 $ 2 Amortization of issuance discount (a) — — 28 Amortization of capitalized loan fees 4 5 2 $ 7 $ 8 $ 32 ______________________ (a) Upon adoption of ASU 2020-06, the Company no longer amortizes the issuance discount associated with the Convertible Notes to interest expense over the life of the Convertible Notes. |
Schedule of derivative instruments | During the year ended December 31, 2022, certain holders of the Convertible Notes exercised their conversion option resulting in the Company recognizing the following cash receipts and cash payments associated with the conversions: Year Ended December 31, 2022 2021 (in millions) Cash payments: Principal repayments $ 361 $ — Conversion premiums 496 — Cash payments $ 857 $ — Cash receipts: Capped Call proceeds $ 103 $ — Conversion option derivative receipts, net 13 — Cash receipts, net $ 116 $ — |
Schedule of principal maturities of long-term debt | Principal payments scheduled to be made on the Company's long-term debt are as follows (in millions): 2023 $ 779 2024 $ — 2025 $ 933 2026 $ 750 2027 $ — Thereafter $ 2,479 |
Schedule of interest expense | Interest expense activity is as follows: Year Ended December 31, 2022 2021 2020 (in millions) Cash payments for interest $ 138 $ 136 $ 119 Amortization of issuance discounts (premiums), net (2) (4) 29 Amortization of capitalized loan fees 12 14 5 Net changes in accruals (20) 17 (19) Interest incurred 128 163 134 Less capitalized interest — (2) (5) $ 128 $ 161 $ 129 |
Incentive Plans (Tables)
Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of deferred compensation and 401(k) plan | The Company match for the deferred compensation plan is as follows: Year Ended December 31, 2022 2021 2020 (in millions) Deferred compensation plan $ 2 $ 2 $ 1 The Company match for the 401(k) Plan is as follows: Year Ended December 31, 2022 2021 2020 (in millions) 401(k) Plan $ 21 $ 17 $ 18 |
Schedule of number of LTIP shares available for issuance | Shares available for future grant pursuant to awards under the LTIP are as follows: As of December 31, 2022 Approved and authorized awards 12,600,000 2014 Parsley Plan awards available to the LTIP (a) 879,575 Awards issued under plan (9,376,230) 4,103,345 ______________________ (a) Under NYSE rules, the Company added the shares that were available under the 2014 Parsley Plan to the LTIP. These shares can only be used for grants to employees who were not employed or engaged by Pioneer or any of its subsidiaries immediately before the Parsley Acquisition and such awards may only be granted through May 22, 2024, the date that the 2014 Parsley Plan would have otherwise expired. |
Schedule of number of ESPP shares available for issuance | Shares available for future issuance under the ESPP are as follows: As of December 31, 2022 Approved and authorized shares 2,500,000 Shares issued (1,213,133) 1,286,867 |
Schedule of stock-based compensation expense | Stock-based compensation expense and the associated income tax benefit for awards issued under both the LTIP and ESPP are as follows: Year Ended December 31, 2022 2021 2020 (in millions) Equity Awards $ 44 $ 44 $ 49 Liability Awards (a) 21 17 12 Restricted stock and performance units - Parsley awards (b) — 33 — Performance Awards 32 27 21 ESPP 2 2 2 $ 99 $ 123 $ 84 Capitalized stock-based compensation expense $ 18 $ 17 $ 15 Income tax benefit $ 8 $ 14 $ 7 ______________________ (a) Liability Awards are expected to be settled on their vesting date in cash. As of December 31, 2022 and December 31, 2021, accounts payable – due to affiliates included $6 million and $9 million, respectively, of liabilities attributable to Liability Awards. (b) Represents the accelerated vesting of Parsley restricted stock equity awards and performance units upon completion of the Parsley Acquisition, which was recorded to other expense in the consolidated statements of operations. |
Schedule of restricted stock award activity | Year Ended December 31, 2022 2021 2020 (in millions, except per share data) Equity Awards granted: Weighted average grant-date fair value per share $ 223.05 $ 141.82 $ 108.24 Equity Awards vested: Grant-date fair value $ 62 $ 50 $ 59 Total fair value at vesting $ 109 $ 51 $ 47 Liability Awards vested: Cash paid $ 24 $ 14 $ 16 |
Schedule of performance awards | The grant-date fair value of Performance Awards is recorded as stock-based compensation expense ratably over the service period. Year Ended December 31, 2022 2021 2020 (in millions, except per share data) Performance Awards granted: Weighted average grant-date fair value per share $ 331.58 $ 165.32 $ 184.06 Performance Awards vested: Grant-date fair value $ 26 $ 13 $ 10 Total fair value at vesting $ 30 $ 14 $ 5 |
Schedule of assumptions to estimate the fair value | Assumptions used to estimate the fair value of Performance Awards granted in each of the following years are as follows: 2022 2021 2020 Risk-free interest rate 1.37% 0.18% 0.68% Range of volatilities 25% - 105% 25% - 104% 31% - 45% |
Schedule of equity awards, liability awards, performance awards and stock options | Activity for Equity Awards, Liability Awards, Performance Awards and stock options is as follows: Year Ended December 31, 2022 Equity Awards Liability Awards Performance Awards Stock Options Number of Shares Weighted Number of shares Number of units (a) Weighted Number of shares Beginning awards 741,892 $ 131.83 182,278 304,686 $ 173.39 6,039 Awards granted 249,765 $ 223.05 49,748 114,066 $ 331.58 — Awards forfeited (50,793) $ 151.54 (12,829) (6,226) $ 244.11 — Awards vested (b) (c) (459,571) $ 134.60 (99,502) (144,523) $ 182.95 — Options exercised — $ — — — $ — (6,039) Ending awards 481,293 $ 174.44 119,695 268,003 $ 233.92 — ______________________ (a) Amount reflects the number of performance units initially granted. The actual payout of shares upon vesting may be between zero and 250 percent of the performance units included in this table depending upon the total shareholder return ranking of the Company compared to peer companies at the vesting date. (b) Per the terms of award agreements and elections, the issuance of common stock may be deferred for certain Equity Awards that vest during the period. (c) For Performance Awards, the awards vested reflects the number of performance units that vested upon retirement or departure of eligible officers or when the performance period of the award ended. Awards that vest upon retirement or departure of eligible officers are not transferred to the officer until the original performance period of the award lapses. Of the 144,523 units that vested, 13,718 are associated with eligible officer retirements and departures during the year ended December 31, 2022 that will be issued in future years when the original performance period ends. On December 31, 2022, the performance period ended on 132,163 Performance Awards that earned 0.99 shares for each vested award resulting in 130,855 aggregate shares of common stock being issued on January 3, 2023. Of the 132,163 Performance Awards that lapsed, 1,358 units were associated with Performance Awards that vested in prior years upon retirement or departure of eligible officers. |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Asset Retirement Obligation [Abstract] | |
Schedule of asset retirement obligations | Asset retirement obligations activity is as follows: Year Ended December 31, 2022 2021 (in millions) Beginning asset retirement obligations $ 354 $ 282 Liabilities assumed in Parsley Acquisition — 73 Liabilities assumed in DoublePoint Acquisition — 37 New wells placed on production 8 10 Changes in estimates (a) 162 7 Dispositions — (24) Liabilities settled (62) (38) Accretion of discount 15 7 Ending asset retirement obligations 477 354 Less current portion of asset retirement obligations (82) (55) Asset retirement obligations, long-term $ 395 $ 299 _____________________ (a) Changes in estimates are determined based on several factors, including updating abandonment cost estimates using recent actual costs incurred to abandon wells, credit-adjusted risk-free discount rates, economic well life estimates and forecasted timing of abandoning wells. The change in estimate for the year ended December 31, 2022 is primarily due to an increase in abandonment cost estimates based on recent actual costs incurred to abandon wells. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of assets and liabilities | The Company's finance lease balances are as follows: As of December 31, Type Consolidated Balance Sheet Location 2022 2021 (in millions) Assets: Finance lease right-of-use asset Other property and equipment, net $ 472 $ 500 Liabilities: Finance lease liability, current Other liabilities - current $ 20 $ 18 Finance lease liability, noncurrent Other liabilities - noncurrent $ 501 $ 521 |
Lease costs | The components of lease costs, including amounts recoverable from joint operating partners, are as follows: Year Ended December 31, 2022 2021 2020 (in millions) Finance lease cost: Amortization of right-of-use asset $ 28 $ 28 $ 28 Interest on lease liability 16 16 17 Operating lease cost (a) 151 162 151 Short-term lease cost (b) 211 107 23 Variable lease cost (c) 40 59 27 $ 446 $ 372 $ 246 _____________________ (a) Represents straight-line lease costs associated with the Company's operating lease right-of-use assets. (b) Represents costs associated with short-term leases (those with a contractual term of 12 months or less) that are not included in the consolidated balance sheets. (c) Variable lease costs are primarily comprised of the non-lease service component of drilling rig commitments above the minimum required payments. Both the minimum required payments and the non-lease service component of the drilling rig commitments are capitalized as additions to oil and gas properties. |
Schedule of lease cash flow information | Cash flow information related to leases is as follows: Year Ended December 31, 2022 2021 2020 (in millions) Operating cash flows: Cash payments for operating, short-term and variable leases $ 200 $ 131 $ 83 Cash payments for interest on finance lease $ 16 $ 16 $ 17 Investing cash flows: Cash payments for operating, short-term and variable leases (a) $ 208 $ 191 $ 130 Financing cash flows: Cash payments for principal on finance lease $ 18 $ 17 $ 16 _____________________ (a) Represents costs associated with drilling operations that are capitalized as additions to oil and gas properties. |
Schedule of changes in operating lease liabilities | The changes in lease liabilities are as follows: Year Ended December 31, 2022 Year Ended December 31, 2021 Operating Finance Operating Finance (in millions) Beginning lease liabilities $ 364 $ 539 $ 210 $ 556 Liabilities assumed in exchange for new right-of-use assets (a) 149 — 100 — Liabilities assumed in the Parsley Acquisition — — 201 — Liabilities assumed in the DoublePoint Acquisition — — 2 — Contract modifications (b) (6) — 2 — Liabilities settled (153) (18) (158) (17) Accretion of discount on operating leases (c) 7 — 7 — Ending lease liabilities (d) $ 361 $ 521 $ 364 $ 539 ______________________ (a) Represents noncash leasing activity. The weighted-average discount rate used to determine the present value of future operating lease payments was 2.5 percent and 1.8 percent for the year ended December 31, 2022 and 2021, respectively. The Company used a 3.0 percent discount rate to determine the present value of its future finance lease payments for its corporate headquarters office building that commenced in 2019. (b) Represents changes in lease liabilities due to modifications of original contract terms. (c) Represents imputed interest on discounted future cash payments of operating leases. (d) As of December 31, 2022, the weighted-average remaining lease term of the Company's operating and finance leases is five six |
Payment schedule for operating lease obligation | Maturities of lease liabilities are as follows: As of December 31, 2022 Operating Finance (in millions) 2023 $ 132 $ 35 2024 93 35 2025 42 36 2026 20 36 2027 20 37 Thereafter 78 491 Total lease payments 385 670 Less present value discount (24) (149) Present value of lease liabilities $ 361 $ 521 |
Payment schedule for finance lease obligation | Maturities of lease liabilities are as follows: As of December 31, 2022 Operating Finance (in millions) 2023 $ 132 $ 35 2024 93 35 2025 42 36 2026 20 36 2027 20 37 Thereafter 78 491 Total lease payments 385 670 Less present value discount (24) (149) Present value of lease liabilities $ 361 $ 521 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum drilling commitments | Minimum firm commitments for the next five years are as follows: As of December 31, 2022 (in millions) 2023 $ 844 2024 $ 791 2025 $ 787 2026 $ 609 2027 $ 626 |
Delivery and purchase commitments | Delivery and purchase commitments for oil and gas are as follows: As of December 31, 2022 Delivery Purchase Oil Gas Oil (Bbls per day) (MMBtu per day) (Bbls per day) 2023 130,000 428,356 90,000 2024 122,459 408,880 90,000 2025 74,795 345,000 90,000 2026 50,000 223,630 90,000 2027 39,521 129,932 90,000 Thereafter — 101,472 11,230 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions and balances | ProPetro pressure pumping related service charges are as follows: Year Ended December 31, 2022 2021 2020 (in millions) Pressure pumping related service charges $ 342 $ 406 $ 238 As of December 31, 2022 As of December 31, 2021 (in millions) Accounts payable - due to affiliate $ 44 $ 66 The Company discloses ProPetro's summarized financial information on a one-quarter lag as it enables the Company to report its quarterly results independent from the timing of when ProPetro reports its results. Summarized financial information for ProPetro is as follows: Nine Months Ended Year Ended December 31, 2021 2020 (in millions) Revenue - service revenue $ 931 $ 875 $ 789 Cost of services (exclusive of depreciation and amortization) $ 640 $ 662 $ 584 Net loss $ (11) $ (54) $ (107) |
Major Customers (Tables)
Major Customers (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
Schedule of revenue by major customer | Purchasers of the Company's oil, NGL and gas production that individually accounted for 10 percent or more of the Company's oil and gas revenues in at least one of the three years ended December 31, 2022 are as follows: Year Ended December 31, 2022 2021 2020 Energy Transfer Crude Marketing LLC 23 % 20 % 36 % Shell Trading US Company 14 % 13 % 2 % Occidental Energy Marketing Inc. 12 % 10 % 18 % Plains Marketing L.P. 10 % 9 % 14 % |
Schedule of sales of purchased oil, NGL and gas revenues | Purchasers of the Company's purchased commodities that individually accounted for 10 percent or more of the Company's sales of purchased commodities in at least one of the three years ended December 31, 2022 are as follows: Year Ended December 31, 2022 2021 2020 Occidental Energy Marketing Inc. 14 % 27 % 28 % |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | Disaggregated revenue from contracts with purchasers by product type is as follows: Year Ended December 31, 2022 2021 2020 (in millions) Oil sales $ 12,289 $ 8,808 $ 2,871 NGL sales 2,204 1,707 490 Gas sales 1,817 988 269 Total oil and gas revenues 16,310 11,503 3,630 Sales of purchased oil 7,992 6,247 3,359 Sales of purchased gas 80 62 24 Sales of purchased diesel — 58 11 Sales of purchased sand 2 — — Total sales of purchased commodities 8,074 6,367 3,394 $ 24,384 $ 17,870 $ 7,024 |
Interest and Other Income (Lo_2
Interest and Other Income (Loss), Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Interest and Other Income [Abstract] | |
Components of interest and other income (loss), net | The components of interest and other income (loss) are as follows: Year Ended December 31, 2022 2021 2020 (in millions) Investment in affiliate valuation adjustment ( Note 4 ) $ 37 $ 12 $ (64) Interest income 36 1 5 Sublease income ( Note 10 ) 20 4 — Investment in Laredo valuation adjustment ( Note 4 ) 17 (11) — Contingent consideration valuation adjustment ( Note 5 ) — — (42) Deferred compensation plan income (loss), net ( Note 4 ) (7) 10 7 Other 16 7 27 $ 119 $ 23 $ (67) |
Other Expense (Tables)
Other Expense (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Schedule of components of other expense | The components of other expense are as follows: Year Ended December 31, 2022 2021 2020 (in millions) Loss on early extinguishment of debt, net ( Note 7 ) $ 39 $ 2 $ 27 Unoccupied facility expense (a) 35 38 (1) Termination and idle drilling and frac equipment charges (b) 25 10 80 Legal and environmental contingencies ( Note 11 ) 23 17 12 Impairment of long-lived assets (c) ( Note 4 ) 23 — — Transportation commitment charges (d) 10 22 16 Restructuring charges (e) — 2 79 Parsley Acquisition transaction costs (f) — 211 10 DoublePoint Acquisition transaction costs (g) — 33 — Winter Storm Uri gas commitments (h) — 80 — Vertical integration services income (i) (7) (6) (2) South Texas deficiency fee obligation, net (j) (18) (10) 80 Other 43 11 20 $ 173 $ 410 $ 321 ____________________ (a) Primarily represents facilities expense associated with certain acquired Parsley offices that are no longer occupied by the Company. (b) Includes idle frac equipment fees, frac reservation fees and drilling rig early termination charges. (c) Impairments of long-lived assets in 2022 primarily represents a decrease in fair value of an unoccupied field office and certain operating lease right-of-use assets to their estimated fair values. (d) Primarily represents firm transportation charges on excess pipeline capacity commitments. (e) Primarily represents the Company's 2020 corporate restructuring to reduce its staffing levels to correspond with a planned reduction in future activity levels. (f) Represents costs associated with the Parsley Acquisition, which includes $90 million of employee-related costs and $121 million of transaction-related fees during the year ended December 31, 2021. See Note 3 for additional information. (g) Represents transaction costs associated with the DoublePoint Acquisition. See Note 3 for additional information. (h) Represents costs related to the Company's fulfillment of certain firm gas commitments during Winter Storm Uri in February 2021. Year Ended December 31, 2022 2021 2020 (in millions) Gross revenues $ 34 $ 40 $ 42 Gross costs and expenses $ 27 $ 34 $ 40 (j) Represents changes to the Company's forecasted MVCs deficiency fee obligation and related receivable associated with the South Texas Divestiture. See Note 11 for additional information. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of unrecognized tax benefits | Unrecognized tax benefit activity is as follows: Year Ended December 31, 2022 2021 2020 (in millions) Beginning unrecognized tax benefits $ 27 $ — $ 39 Current year additions — 27 — Effectively settled tax positions (27) — (39) Ending unrecognized tax benefits $ — $ 27 $ — |
Schedule of net tax refunds | Net tax refunds (payments) related to filed tax returns are as follows: Year Ended December 31, 2022 2021 2020 (in millions) Tax refunds (payments), net (a) $ (445) $ (1) $ 13 ____________________ (a) Represents state tax payments of $21 million, $3 million and $3 million for the years ended December 31, 2022, 2021 and 2020, respectively, U.S. net federal tax payments of $424 million for the year ended December 31, 2022 and U.S. federal tax refunds of $2 million and $16 million for the years ended December 31, 2021 and 2020, respectively. |
Summary of open tax years | The earliest open years in the Company's key jurisdictions are as follows: U.S. federal 2021 Various U.S. states 2014 |
Schedule of income tax (provision) benefit and effective tax rate | Income tax benefit (provision) is as follows: Year Ended December 31, 2022 2021 2020 (in millions) Current: U.S. federal $ (260) $ (1) $ 12 U.S. state (39) (44) (3) Current income tax benefit (provision) (299) (45) 9 Deferred: U.S. federal (1,788) (585) 55 U.S. state (19) 2 (3) Deferred income tax benefit (provision) (1,807) (583) 52 Income tax benefit (provision) $ (2,106) $ (628) $ 61 |
Reconciliation of federal statutory tax rate | The effective tax rate for income (loss) is reconciled to the United States federal statutory rate as follows: Year Ended December 31, 2022 2021 2020 (in millions, except percentages) Income (loss) before income taxes $ 9,951 $ 2,746 $ (261) Federal statutory income tax rate 21 % 21 % 21 % Benefit (provision) for federal income taxes at the statutory rate (2,090) (577) 55 State income tax provision (net of federal tax) (45) (33) (5) Transaction costs — (6) — Other 29 (12) 11 Income tax benefit (provision) $ (2,106) $ (628) $ 61 Effective tax rate 21 % 23 % 23 % |
Schedule of deferred tax assets and liabilities | Significant components of deferred tax assets and deferred tax liabilities are as follows: As of December 31, 2022 2021 (in millions) Deferred tax assets: Net operating loss carryforward (a) $ 225 $ 1,263 Credit carryforwards — 110 Lease deferred tax assets 190 196 Asset retirement obligations 104 77 Net deferred hedge losses 33 167 Incentive plans 25 27 Convertible debt 2 17 South Texas Divestiture — 41 Other 54 60 Deferred tax assets 633 1,958 Deferred tax liabilities: Oil and gas properties, principally due to differences in basis, depletion and the deduction of intangible drilling costs for tax purposes (4,186) (3,664) Other property and equipment, principally due to the deduction of bonus depreciation for tax purposes (233) (235) Lease deferred tax liabilities (72) (76) South Texas Divestiture — (18) Other (9) (3) Deferred tax liabilities (4,500) (3,996) Net deferred tax liability $ (3,867) $ (2,038) ____________________ (a) Net operating loss carryforwards as of December 31, 2022 consist of $1.1 billion of U.S. federal NOLs that can be carried forward indefinitely. Additionally, the net operating loss carryforwards consist of $177 million of Colorado NOLs that begin to expire in 2027, all of which have a fully offsetting valuation allowance. |
Net Income (Loss) Per Share and
Net Income (Loss) Per Share and Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Reconciliation of earnings attributable to common stockholders, basic and diluted | The components of basic and diluted net income (loss) per share attributable to common stockholders are as follows: Year Ended December 31, 2022 2021 2020 (in millions, except per share data) Net income (loss) attributable to common stockholders $ 7,845 $ 2,118 $ (200) Participating share-based earnings (a) (15) (5) — Basic net income (loss) attributable to common stockholders 7,830 2,113 (200) Adjustment to after-tax interest expense to reflect the dilutive impact attributable to Convertible Notes 6 6 — Diluted net income (loss) attributable to common stockholders $ 7,836 $ 2,119 $ (200) Basic weighted average shares outstanding 240 233 165 Contingently issuable stock-based compensation — 1 — Convertible Notes (b) 12 12 — Diluted weighted average shares outstanding 252 246 165 Net income (loss) per share attributable to common stockholders: Basic $ 32.61 $ 9.06 $ (1.21) Diluted $ 31.13 $ 8.61 $ (1.21) ______________________ (a) Unvested Equity Awards represent participating securities because they participate in non-forfeitable dividends with the common equity owners of the Company. Participating share-based earnings represent the distributed and undistributed earnings of the Company attributable to the participating securities. Unvested Equity Awards do not participate in undistributed net losses as they are not contractually obligated to do so. The dilutive effect of the reallocation of participating share-based earnings to diluted net income attributable to common stockholders was negligible. (b) Diluted weighted average common shares outstanding includes the dilutive effect had the Company's Convertible Notes been converted as of the beginning of the years ended December 31, 2022 and 2021, respectively. If converted by the holder, the Company may settle in cash, shares of the Company's common stock or a combination thereof, at the Company's election. See Note 7 for additional information. |
Dividends Declared | Base and variable dividends declared by the Board are as follows: Base Variable Total Total (per share) (per share) (per share) (in millions) 2022: First quarter $ 0.78 $ 3.00 $ 3.78 $ 922 Second quarter 0.78 6.60 7.38 1,788 Third quarter 1.10 7.47 8.57 2,053 Fourth quarter 1.10 4.61 5.71 1,357 $ 3.76 $ 21.68 $ 25.44 $ 6,120 2021: First quarter $ 0.56 $ — $ 0.56 $ 122 Second quarter 0.56 — 0.56 138 Third quarter 0.56 1.51 2.07 508 Fourth quarter 0.62 3.02 3.64 890 $ 2.30 $ 4.53 $ 6.83 $ 1,658 2020: First quarter $ 0.55 $ — $ 0.55 $ 91 Second quarter 0.55 — 0.55 91 Third quarter 0.55 — 0.55 91 Fourth quarter 0.55 — 0.55 91 $ 2.20 $ — $ 2.20 $ 364 |
Class of Treasury Stock | Expenditures to acquire shares under the stock repurchase programs are as follows: Year Ended December 31, 2022 2021 2020 (in millions) Shares repurchased (a) $ 1,649 $ 250 $ 160 ______________________ (a) During the year ended December 31, 2022, 7.2 million shares were repurchased under the stock repurchase program, as compared to 1.4 million and 1.5 million shares repurchased during the years ended December 31, 2021 and 2020, respectively. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) shares in Thousands, a in Thousands, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2021 USD ($) shares | Dec. 31, 2022 USD ($) numberOfLeases gas_processing_plant segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Oct. 01, 2021 a | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Allowances for doubtful accounts | $ (10) | $ (9) | |||
Proceeds from disposition of assets | $ 367 | 3,244 | $ 60 | ||
Equity securities (in shares) | shares | 960 | ||||
Number of gas processing plants | gas_processing_plant | 10 | ||||
Revenue - service revenue | $ 24,384 | 17,870 | 7,024 | ||
Accumulated depreciation property, plant and equipment, other assets | $ (371) | (313) | |||
Number of finance leases | numberOfLeases | 1 | ||||
Stock-based compensation awards general vesting period | 3 years | ||||
Reportable operating segments | segment | 1 | ||||
Laredo Petroleum, Inc. | Sold | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Area of land | a | 20 | ||||
Proceeds from disposition of assets | $ 137 | ||||
Minimum | Buildings | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated useful life | 20 years | ||||
Minimum | Water infrastructure | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated useful life | 3 years | ||||
Minimum | Equipment, vehicles, furniture and fixtures and information technology | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated useful life | 3 years | ||||
Maximum | Buildings | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated useful life | 39 years | ||||
Maximum | Water infrastructure | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated useful life | 50 years | ||||
Maximum | Equipment, vehicles, furniture and fixtures and information technology | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated useful life | 10 years | ||||
Natural Gas, Gathering, Transportation, Marketing and Processing | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Revenue - service revenue | $ (274) | 271 | 178 | ||
Cost of services (exclusive of depreciation and amortization) | $ 27 | $ 61 | $ 76 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Inventory (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||
Materials and supplies | $ 146 | $ 99 |
Commodities | 278 | 270 |
Total inventories | $ 424 | $ 369 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Other Property Plant and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||
Accumulated depreciation property, plant and equipment, other assets | $ (371) | $ (313) |
Property, Plant and Equipment [Line Items] | ||
Other property and equipment, net | 1,658 | 1,694 |
Land and buildings | ||
Property, Plant and Equipment [Line Items] | ||
Other property and equipment, net | 835 | 889 |
Water infrastructure | ||
Property, Plant and Equipment [Line Items] | ||
Other property and equipment, net | 709 | 682 |
Information technology | ||
Property, Plant and Equipment [Line Items] | ||
Other property and equipment, net | 55 | 56 |
Transport and field equipment | ||
Property, Plant and Equipment [Line Items] | ||
Other property and equipment, net | 25 | 29 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Other property and equipment, net | 21 | 24 |
Sand reserves | ||
Property, Plant and Equipment [Line Items] | ||
Other property and equipment, net | $ 13 | $ 14 |
Acquisitions and Divestiture _2
Acquisitions and Divestiture Activities - Narrative (Acquisitions) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
May 04, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 12, 2021 | |
Business Acquisition [Line Items] | |||||
Shares issued or reissued for acquisitions | $ 11,116 | ||||
Payments for undeveloped acreage | $ 193 | $ 58 | $ 14 | ||
DoublePoint | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, equity interest Issued or issuable, number of shares (in shares) | 27,000,000 | ||||
Payments to acquire businesses, gross | $ 1,000 | ||||
Shares issued or reissued for acquisitions | $ 4,200 | ||||
Parsley | |||||
Business Acquisition [Line Items] | |||||
Exchange ratio | 0.1252 | ||||
Number of share issued from rights (in shares) | 52,000,000 | ||||
Net assets acquired | $ 6,900 |
Acquisitions and Divestiture _3
Acquisitions and Divestiture Activities - Narrative (Divestitures) (Details) shares in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Feb. 28, 2022 USD ($) | Dec. 31, 2021 USD ($) | Oct. 31, 2021 USD ($) shares | Mar. 31, 2021 USD ($) | May 31, 2020 USD ($) a | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Oct. 01, 2021 USD ($) a | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Proceeds from disposition of assets | $ 367,000,000 | $ 3,244,000,000 | $ 60,000,000 | |||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration] | Gain (loss) on disposition of assets, net | |||||||||
Midland Basin | Sold | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Proceeds from disposition of assets | $ 164,000,000 | |||||||||
Interest received in sale | 8,000,000 | |||||||||
Gain (loss) on sale | $ 110,000,000 | |||||||||
Martin County Gas Processing | Sold | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Proceeds from sale of equity method investments | $ 125,000,000 | |||||||||
Equity method investment, realized gain (loss) on disposal | $ 0 | |||||||||
Delaware Divestiture | Sold | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Proceeds from disposition of assets | $ 3,000,000,000 | |||||||||
Gain (loss) on sale | (1,100,000,000) | |||||||||
Laredo Petroleum, Inc. | Sold | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Proceeds from disposition of assets | $ 137,000,000 | |||||||||
Gain (loss) on sale | $ 1,000,000 | |||||||||
Area of land | a | 20,000 | |||||||||
Shares received (in shares) | shares | 960 | |||||||||
Total consideration | $ 206,000,000 | |||||||||
Wells Services Divestiture | Sold | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Proceeds from disposition of assets | $ 20,000,000 | |||||||||
Gain (loss) on sale | 9,000,000 | |||||||||
Additional contingent proceeds | $ 4,000,000 | |||||||||
Vertical Wells in Upton County | Sold | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Proceeds from disposition of assets | $ 6,000,000 | |||||||||
Gain (loss) on sale | $ 6,000,000 | |||||||||
Area of land | a | 1,500 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Investment in affiliate | $ 172 | $ 135 |
Deferred compensation plan assets | 65 | 74 |
Short-term investments | 58 | |
Assets, fair value disclosure | 238 | 267 |
Liabilities: | ||
Liabilities, fair value disclosure | 563 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Investment in affiliate | 172 | 135 |
Deferred compensation plan assets | 65 | 74 |
Short-term investments | 58 | |
Assets, fair value disclosure | 237 | 267 |
Liabilities: | ||
Liabilities, fair value disclosure | 0 | |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Investment in affiliate | 0 | 0 |
Deferred compensation plan assets | 0 | 0 |
Short-term investments | 0 | |
Assets, fair value disclosure | 1 | 0 |
Liabilities: | ||
Liabilities, fair value disclosure | 486 | |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Investment in affiliate | 0 | 0 |
Deferred compensation plan assets | 0 | 0 |
Short-term investments | 0 | |
Assets, fair value disclosure | 0 | 0 |
Liabilities: | ||
Liabilities, fair value disclosure | 77 | |
Conversion option derivatives | ||
Assets: | ||
Conversion option derivatives | 1 | |
Conversion option derivatives | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Conversion option derivatives | 0 | |
Conversion option derivatives | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Conversion option derivatives | 1 | |
Conversion option derivatives | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Conversion option derivatives | 0 | |
Marketing derivatives | ||
Liabilities: | ||
Derivative liabilities | 140 | 77 |
Marketing derivatives | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Marketing derivatives | Significant Other Observable Inputs (Level 2) | ||
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Marketing derivatives | Significant Unobservable Inputs (Level 3) | ||
Liabilities: | ||
Derivative liabilities | $ 140 | 77 |
Commodity derivatives | ||
Liabilities: | ||
Derivative liabilities | 486 | |
Commodity price and marketing derivatives related to equal and offsetting oil and gas commodity derivative trades | 328 | |
Commodity derivatives | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Liabilities: | ||
Derivative liabilities | 0 | |
Commodity derivatives | Significant Other Observable Inputs (Level 2) | ||
Liabilities: | ||
Derivative liabilities | 486 | |
Commodity derivatives | Significant Unobservable Inputs (Level 3) | ||
Liabilities: | ||
Derivative liabilities | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) shares in Thousands, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) d $ / bbl | Dec. 31, 2021 USD ($) $ / bbl | Dec. 31, 2020 USD ($) | Oct. 31, 2021 shares | May 01, 2020 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity Securities, FV-NI (in shares) | shares | 960 | ||||
Long-term debt | $ 4,941 | $ 6,975 | |||
Debt instrument, convertible, conversion settlement period after notice | d | 25 | ||||
Impairment of long-lived assets | $ 23 | 0 | $ 0 | ||
Commodity derivatives | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative assets (liabilities), at fair value, net | 1 | ||||
Unproved Properties | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impairment of oil and gas properties | 7 | 4 | $ 11 | ||
0.250% convertible senior notes due 2025 | Senior notes | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Long-term debt | $ 962 | $ 1,323 | $ 1,300 | ||
Marketing derivatives | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative, fair value input, WASP differential deduction | $ / bbl | 1.67 | 2.19 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Carrying Values and Financial Instruments Not Carried at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 1,032 | $ 3,847 |
Restricted cash | 0 | 37 |
Current portion of long-term debt | 779 | 244 |
Long-term debt | 4,125 | 6,688 |
Convertible debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Current portion of long-term debt | 29 | 0 |
Long-term debt | 925 | 1,307 |
Senior notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Current portion of long-term debt | 750 | |
Long-term debt | 3,200 | 5,381 |
Estimate of Fair Value Measurement | Convertible debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Current portion of long-term debt | 69 | 0 |
Long-term debt | 2,184 | 2,359 |
Estimate of Fair Value Measurement | Senior notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Current portion of long-term debt | 738 | 247 |
Long-term debt | 2,696 | 5,390 |
Cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, fair value | $ 1,032 | $ 3,847 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) MMBTU / d bblPerDay $ / MMBTU | Dec. 31, 2021 USD ($) | |
Derivative [Line Items] | ||
Long-term debt | $ | $ 4,941 | $ 6,975 |
0.250% convertible senior notes due 2025 | Convertible debt | ||
Derivative [Line Items] | ||
Long-term debt | $ | 390 | |
Principal repayments in progress | $ | $ 29 | |
Marketing Derivative, January 1, 2022 through December 31, 2026 | ||
Derivative [Line Items] | ||
Purchase contract, amount of barrel to be purchased and sold | bblPerDay | 50,000 | |
Marketing Derivative, May 1, 2022 through April 30, 2027 | ||
Derivative [Line Items] | ||
Purchase contract, amount of barrel to be purchased and sold | bblPerDay | 40,000 | |
Marketing Derivative, August 1, 2022 through July 31, 2027 | ||
Derivative [Line Items] | ||
Purchase contract, amount of barrel to be purchased and sold | bblPerDay | 30,000 | |
Oil contracts | Brent Basis Swap Contracts for January 2024 through December 2024 | ||
Derivative [Line Items] | ||
Volume, barrels per day | MMBTU / d | 3,000,000 | |
Oil contracts, price per bbl | Brent Basis Swap Contracts for January 2024 through December 2024 | ||
Derivative [Line Items] | ||
Price per Bbl in usd | $ / MMBTU | 4.33 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Derivative Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Liabilities: | ||
Net Fair Value Presented in the Consolidated Balance Sheet | $ 44 | $ 538 |
Derivatives | 96 | 25 |
Derivatives not designated as hedging instruments | Conversion option derivatives | ||
Assets: | ||
Fair Value | 1 | |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | |
Net Fair Value Presented in the Consolidated Balance Sheet | 1 | |
Derivatives not designated as hedging instruments | Marketing derivatives | ||
Liabilities: | ||
Fair Value | 44 | |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | |
Net Fair Value Presented in the Consolidated Balance Sheet | 44 | 52 |
Derivatives | 96 | 25 |
Derivatives not designated as hedging instruments | Marketing derivatives | Derivatives - current | ||
Liabilities: | ||
Fair Value | 52 | |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | |
Derivatives not designated as hedging instruments | Marketing derivatives | Derivatives - noncurrent | ||
Liabilities: | ||
Fair Value | 96 | 25 |
Gross Amounts Offset in the Consolidated Balance Sheet | $ 0 | 0 |
Derivatives not designated as hedging instruments | Commodity price derivatives | ||
Liabilities: | ||
Fair Value | 486 | |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | |
Net Fair Value Presented in the Consolidated Balance Sheet | $ 486 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Schedule of Derivative Obligations Under Terminated Hedge Arrangements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | |||
Noncash derivative gain (loss), net | $ 96 | $ 451 | $ (325) |
Derivative gain (loss), net | (315) | (2,183) | (281) |
0.250% convertible senior notes due 2025 | Convertible debt | |||
Derivative [Line Items] | |||
Noncash derivative gain (loss), net | 1 | 0 | 0 |
Cash receipts (payments/deferred obligations) on settled derivatives, net | 13 | 0 | |
Derivative gain (loss), net | 14 | 0 | 0 |
Commodity price derivatives | |||
Derivative [Line Items] | |||
Noncash derivative gain (loss), net | 158 | 437 | (213) |
Cash receipts (payments/deferred obligations) on settled derivatives, net | (358) | (2,595) | 66 |
Derivative gain (loss), net | (200) | (2,158) | (147) |
Marketing derivatives | |||
Derivative [Line Items] | |||
Noncash derivative gain (loss), net | (63) | 14 | (112) |
Cash receipts (payments/deferred obligations) on settled derivatives, net | (66) | (39) | |
Derivative gain (loss), net | $ (129) | (25) | (112) |
Interest rate derivatives | |||
Derivative [Line Items] | |||
Cash receipts (payments/deferred obligations) on settled derivatives, net | $ (22) | ||
Oil and gas contracts | |||
Derivative [Line Items] | |||
Gain (loss) on derivative, net | $ 521 |
Exploratory Well and Project _3
Exploratory Well and Project Costs - Schedule of Capitalized Exploratory Well And Project Activity (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Increase (Decrease) in Capitalized Exploratory Well Costs that are Pending Determination of Proved Reserves [Roll Forward] | |||
Beginning capitalized exploratory well and project costs | $ 632 | $ 498 | $ 660 |
Additions to exploratory well and project costs pending the determination of proved reserves | 3,341 | 2,935 | 1,163 |
Reclassifications due to determination of proved reserves | (3,139) | (2,973) | (1,325) |
Ending capitalized exploratory well and project costs | 834 | 632 | 498 |
Additions to capitalized exploratory well and project costs from acquisitions | 0 | 235 | 0 |
Disposition of assets | $ 0 | $ (63) | $ 0 |
Exploratory Well and Project _4
Exploratory Well and Project Costs - Aging of Capitalized Exploratory Costs (Details) $ in Millions | Dec. 31, 2022 USD ($) Well | Dec. 31, 2021 USD ($) Well | Dec. 31, 2020 USD ($) Well | Dec. 31, 2019 USD ($) |
Capitalized Exploratory Well Costs [Abstract] | ||||
One year or less | $ 834 | $ 621 | $ 495 | |
More than one year | 0 | 11 | 3 | |
Total | $ 834 | $ 632 | $ 498 | $ 660 |
Number of projects with exploratory well costs that have been suspended for a period greater than one year (a) | Well | 0 | 3 | 1 |
Long-term Debt and Interest E_3
Long-term Debt and Interest Expense - Schedule of Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Oct. 31, 2022 | Jul. 31, 2022 | Feb. 28, 2022 | Dec. 31, 2021 | May 31, 2021 | May 01, 2020 |
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 4,941 | $ 6,975 | |||||
Issuance costs and discounts, net | (37) | (43) | |||||
Total debt | 4,904 | 6,932 | |||||
Current portion of long-term debt | 779 | 244 | |||||
Long-term debt | 4,125 | 6,688 | |||||
Senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Current portion of long-term debt | 750 | ||||||
Long-term debt | $ 3,200 | 5,381 | |||||
3.950% senior notes due 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 3.95% | ||||||
3.950% senior notes due 2022 | Senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 0 | $ 244 | 244 | ||||
0.550% senior notes due 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 0.55% | ||||||
0.550% senior notes due 2023 | Senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 750 | 750 | $ 750 | ||||
0.750% senior callable notes due 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 0.75% | ||||||
0.750% senior callable notes due 2024 | Senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 0 | $ 750 | 750 | ||||
0.250% convertible senior notes due 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 0.25% | ||||||
Issuance costs and discounts, net | $ (8) | ||||||
0.250% convertible senior notes due 2025 | Senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 962 | 1,323 | $ 1,300 | ||||
1.125% senior notes due 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 1.125% | ||||||
1.125% senior notes due 2026 | Senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 750 | 750 | |||||
4.450% senior notes due 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 4.45% | ||||||
4.450% senior notes due 2026 | Senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 0 | $ 500 | 500 | ||||
5.625% senior notes due 2027 | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 5.625% | ||||||
5.625% senior notes due 2027 | Senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 0 | $ 179 | 179 | ||||
7.200% senior notes due 2028 | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 7.20% | ||||||
7.200% senior notes due 2028 | Senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 241 | 241 | |||||
4.125% senior notes due 2028 | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 4.125% | ||||||
4.125% senior notes due 2028 | Senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 138 | 138 | |||||
1.900% senior notes due 2030 | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 1.90% | ||||||
1.900% senior notes due 2030 | Senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 1,100 | 1,100 | |||||
2.150% senior notes due 2031 | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 2.15% | ||||||
2.150% senior notes due 2031 | Senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 1,000 | $ 1,000 |
Long-term Debt and Interest E_4
Long-term Debt and Interest Expense - Narrative (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
May 04, 2021 USD ($) | Jan. 12, 2021 USD ($) | Oct. 31, 2022 USD ($) | Feb. 28, 2022 USD ($) | May 31, 2021 USD ($) | May 31, 2020 USD ($) mMBtus_per_day Well day | Dec. 31, 2022 USD ($) day Well $ / shares | Dec. 31, 2022 USD ($) $ / shares Rate | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jul. 31, 2022 USD ($) | Jan. 31, 2021 USD ($) | May 01, 2020 USD ($) | |
Debt Instrument [Line Items] | |||||||||||||
Line of credit facility, maximum borrowing capacity | $ 2,000,000,000 | $ 2,000,000,000 | |||||||||||
Outstanding borrowings under the Credit Facility | 0 | 0 | |||||||||||
Long-term debt | $ 4,941,000,000 | 4,941,000,000 | $ 6,975,000,000 | ||||||||||
Gain (loss) on early extinguishment of debt, net | (39,000,000) | (2,000,000) | $ (27,000,000) | ||||||||||
Repayments of debt | $ 1,300,000,000 | 2,576,000,000 | 3,371,000,000 | 1,198,000,000 | |||||||||
Proceeds from issuance of senior notes, net of discount | $ 0 | 3,247,000,000 | $ 1,091,000,000 | ||||||||||
Cap price | $ / shares | $ 138.40 | $ 138.40 | |||||||||||
Net costs | $ 113,000,000 | ||||||||||||
Issuance costs and discounts | $ 37,000,000 | $ 37,000,000 | 43,000,000 | ||||||||||
DoublePoint | Estimate of Fair Value Measurement | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long term debt acquired in acquisition | $ 735,000,000 | ||||||||||||
Parsley | Estimate of Fair Value Measurement | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long term debt acquired in acquisition | $ 2,800,000,000 | ||||||||||||
Revolving Credit Agreement | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt to book capitalization ratio | 0.65 | 0.65 | |||||||||||
Revolving Credit Agreement | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt to book capitalization ratio | 1 | 1 | |||||||||||
Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Federal fund rate | Rate | 0.50% | ||||||||||||
Alternate base rate spread | Rate | 0.25% | ||||||||||||
Applicable margin | Rate | 1.25% | ||||||||||||
Letters of credit outstanding under the Credit Facility, interest percentage | Rate | 0.125% | ||||||||||||
Unused portion, fee percentage | Rate | 0.15% | ||||||||||||
7.750% senior notes due 2025 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayments of senior debt | 731,000,000 | ||||||||||||
5.625% senior notes due 2027 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated interest rate | 5.625% | 5.625% | |||||||||||
0.750% senior callable notes due 2024 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated interest rate | 0.75% | 0.75% | |||||||||||
4.450% senior notes due 2026 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated interest rate | 4.45% | 4.45% | |||||||||||
0.550% senior notes due 2023 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated interest rate | 0.55% | 0.55% | |||||||||||
1.125% senior notes due 2026 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated interest rate | 1.125% | 1.125% | |||||||||||
2.150% senior notes due 2031 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated interest rate | 2.15% | 2.15% | |||||||||||
5.250% senior notes due 2025, 5.375% senior notes due 2025 and 5.875% senior notes due 2026 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayments of senior debt | 1,600,000,000 | ||||||||||||
5.250% senior notes due 2025, 5.375% senior notes due 2025 and 5.875% senior notes due 2026 | Parsley | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Gain (loss) on early extinguishment of debt, net | (5,000,000) | ||||||||||||
5.250% due 2025 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated interest rate | 5.25% | 5.25% | |||||||||||
5.375% due 2025 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated interest rate | 5.375% | 5.375% | |||||||||||
5.875% due 2026 | Jagged Peak | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated interest rate | 5.875% | 5.875% | |||||||||||
5.625% senior notes due 2027 and 4.125% senior notes due 2028 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayments of senior debt | 852,000,000 | ||||||||||||
4.125% senior notes due 2028 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated interest rate | 4.125% | 4.125% | |||||||||||
3.950% senior notes due 2022 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated interest rate | 3.95% | 3.95% | |||||||||||
3.45% Senior Notes Due 2021 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated interest rate | 3.45% | 3.45% | |||||||||||
0.250% convertible senior notes due 2025 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated interest rate | 0.25% | 0.25% | |||||||||||
Issuance costs and discounts | $ 8,000,000 | $ 8,000,000 | |||||||||||
Swing Line Loans | Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum outstanding borrowings under the Credit Facility | 150,000,000 | ||||||||||||
Senior notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issuance costs, net | 4,000,000 | 24,000,000 | |||||||||||
Proceeds from issuance of senior notes, net of discount | 746,000,000 | 2,500,000,000 | |||||||||||
Senior notes | DoublePoint | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long term debt acquired in acquisition | $ 650,000,000 | ||||||||||||
Senior notes | Parsley | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long term debt acquired in acquisition | 2,700,000,000 | ||||||||||||
Senior notes | 7.750% senior notes due 2025 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated interest rate | 7.75% | ||||||||||||
Senior notes | 7.750% senior notes due 2025 | DoublePoint | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Gain (loss) on early extinguishment of debt, net | $ 3,000,000 | ||||||||||||
Senior notes | 5.625% senior notes due 2027 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt | $ 179,000,000 | 0 | 0 | 179,000,000 | |||||||||
Gain (loss) on early extinguishment of debt, net | $ 8,000,000 | ||||||||||||
Senior notes | 0.750% senior callable notes due 2024 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt | 750,000,000 | 0 | 0 | 750,000,000 | |||||||||
Senior notes | 4.450% senior notes due 2026 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt | $ 500,000,000 | 0 | 0 | 500,000,000 | |||||||||
Senior notes | 0.750% senior callable notes due 2024 and 4.450%senior notes due 2026 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Gain (loss) on early extinguishment of debt, net | (47,000,000) | ||||||||||||
Senior notes | 0.550% senior notes due 2023 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt | $ 750,000,000 | 750,000,000 | 750,000,000 | 750,000,000 | |||||||||
Senior notes | 1.125% senior notes due 2026 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt | 750,000,000 | 750,000,000 | 750,000,000 | ||||||||||
Senior notes | 2.150% senior notes due 2031 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | ||||||||||
Senior notes | 4.125% senior notes due 2028 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt | 138,000,000 | 138,000,000 | 138,000,000 | ||||||||||
Senior notes | 3.950% senior notes due 2022 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt | 0 | 0 | 244,000,000 | $ 244,000,000 | |||||||||
Senior notes | 3.45% Senior Notes Due 2021 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt | $ 140,000,000 | ||||||||||||
Senior notes | 0.250% convertible senior notes due 2025 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt | $ 962,000,000 | $ 962,000,000 | 1,323,000,000 | $ 1,300,000,000 | |||||||||
Initial conversion rate | 0.0102823 | ||||||||||||
Debt instrument, convertible, conversion price | $ / shares | $ 97.25 | $ 97.25 | |||||||||||
Debt instrument, convertible, threshold trading days | day | 20 | 20 | |||||||||||
Threshold consecutive trading days | Well | 30 | 30 | |||||||||||
Debt instrument, convertible, threshold percentage of conversion price | 130% | ||||||||||||
Debt instrument, convertible, threshold percentage of stock price trigger | 98% | ||||||||||||
Debt instrument, convertible, conversion ratio, percent | 100% | ||||||||||||
Effective interest rate | 0.60% | ||||||||||||
Senior notes | 0.250% convertible senior notes due 2025 | Debt Conversion Terms One | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, convertible, threshold trading days | mMBtus_per_day | 5 | ||||||||||||
Senior notes | 0.250% convertible senior notes due 2025 | Debt Conversion Terms Two | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Threshold consecutive trading days | mMBtus_per_day | 5 | ||||||||||||
Line of credit | DoublePoint | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long term debt acquired in acquisition | $ 240,000,000 | ||||||||||||
Line of credit | Parsley | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long term debt acquired in acquisition | $ 397,000,000 | ||||||||||||
Convertible debt | 0.250% convertible senior notes due 2025 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt | $ 390,000,000 | $ 390,000,000 | |||||||||||
Repayments of debt | 361,000,000 | $ 0 | |||||||||||
Issuance fees and deferred taxes | 26,000,000 | ||||||||||||
Principal repayments in progress | $ 29,000,000 |
Long-term Debt and Interest E_5
Long-term Debt and Interest Expense - Interest Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Amortization of issuance discounts (premiums), net | $ (2) | $ (4) | $ 29 |
Amortization of capitalized loan fees | 12 | 14 | 5 |
0.250% convertible senior notes due 2025 | |||
Debt Instrument [Line Items] | |||
Contractual coupon interest | 3 | 3 | 2 |
Amortization of issuance discounts (premiums), net | 0 | 0 | 28 |
Amortization of capitalized loan fees | 4 | 5 | 2 |
Total interest expense on convertible notes | $ 7 | $ 8 | $ 32 |
Long-term Debt and Interest E_6
Long-term Debt and Interest Expense - Convertible Notes (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | ||||
Principal repayments | $ 1,300 | $ 2,576 | $ 3,371 | $ 1,198 |
0.250% convertible senior notes due 2025 | Convertible debt | ||||
Derivative [Line Items] | ||||
Principal repayments | 361 | 0 | ||
Conversion premiums | 496 | 0 | ||
Cash payments | 857 | 0 | ||
Capped Call proceeds | 103 | 0 | ||
Conversion option derivative payments, net | 13 | 0 | ||
Cash receipts, net | $ 116 | $ 0 |
Long-term Debt and Interest E_7
Long-term Debt and Interest Expense - Principal Maturities Of Long-Term Debt (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 779 |
2024 | 0 |
2025 | 933 |
2026 | 750 |
2027 | 0 |
Thereafter | $ 2,479 |
Long-term Debt and Interest E_8
Long-term Debt and Interest Expense - Interest Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |||
Cash payments for interest | $ 138 | $ 136 | $ 119 |
Amortization of issuance discounts (premiums), net | (2) | (4) | 29 |
Amortization of capitalized loan fees | 12 | 14 | 5 |
Net changes in accruals | (20) | 17 | (19) |
Interest incurred | 128 | 163 | 134 |
Less capitalized interest | 0 | (2) | (5) |
Interest expense, total | $ 128 | $ 161 | $ 129 |
Incentive Plans - Narrative (De
Incentive Plans - Narrative (Details) | 7 Months Ended | 12 Months Ended | |
Jul. 31, 2022 Rate | Dec. 31, 2022 USD ($) Rate | Jan. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized share-based compensation expense | $ | $ 91,000,000 | ||
Remaining vesting period | 3 years | ||
401(k) Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Participants annual salary contributions, percentage | 80% | ||
Matching contributions percent | 200% | ||
Limit of employee's contribution of base salary, percent | 5% | ||
Matching contribution, vesting period in years | 4 years | ||
401(k) Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Limit of employee's contribution of base salary, percent | 5% | ||
Deferred compensation plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Matching contributions percent | 100% | ||
Deferred compensation plan | Base Salary | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Participants annual salary contributions, percentage | 50% | ||
Deferred compensation plan | Base Salary | Officer | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Limit of employee's contribution of base salary, percent | 10% | ||
Deferred compensation plan | Bonus | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Participants annual salary contributions, percentage | 100% | ||
Parsley | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exchange ratio | 0.1252 | ||
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee stock purchase plan contribution limit | $ | $ 21,250 | ||
ESPP offering period | 8 months | ||
Employee stock purchase plan participants purchase price percent | 15% | ||
Liability Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized share-based compensation expense | $ | $ 20,000,000 | ||
Performance Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Remaining vesting period | 3 years | ||
Expected volatility period | 3 years |
Incentive Plans - Schedule of D
Incentive Plans - Schedule of Deferred Compensation and 401(k) Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
401(k) Plan | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Deferred compensation arrangement with individual, compensation expense | $ 21 | $ 17 | $ 18 |
Deferred compensation plan | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Deferred compensation arrangement with individual, contributions by employer | $ 2 | $ 2 | $ 1 |
Incentive Plans - Schedule of N
Incentive Plans - Schedule of Number Of Shares Available Under The Company's Long Term Incentive Plan (Details) - Pioneer Long Term Incentive Plan - 2006 Long-Term Incentive Plan | 12 Months Ended |
Dec. 31, 2022 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Approved and authorized awards (in shares) | 12,600,000 |
Awards issued under plan (in shares) | (9,376,230) |
Awards available for future grant (in shares) | 4,103,345 |
Parsley | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Approved and authorized awards (in shares) | 879,575 |
Incentive Plans - Schedule Of E
Incentive Plans - Schedule Of Employee Stock Purchase Plan (Details) - ESPP | 12 Months Ended |
Dec. 31, 2022 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Approved and authorized shares (in shares) | 2,500,000 |
Shares issued (in shares) | (1,213,133) |
Shares available for future issuance (in shares) | 1,286,867 |
Incentive Plans - Schedule of C
Incentive Plans - Schedule of Compensation Expense for Each Type of Incentive Award (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 99 | $ 123 | $ 84 |
Capitalized stock-based compensation expense | 18 | 17 | 15 |
Income Tax Expense (Benefit) | (2,106) | (628) | 61 |
Equity Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 44 | 44 | 49 |
Liability Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 21 | 17 | 12 |
Amount of liabilities attributable to liability awards included in accounts payable | 6 | 9 | |
Restricted stock and performance units - Parsley awards (b) | Parsley | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 0 | 33 | 0 |
Performance Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 32 | 27 | 21 |
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 2 | 2 | 2 |
Income tax benefit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Income Tax Expense (Benefit) | $ 8 | $ 14 | $ 7 |
Incentive Plans - Schedule of R
Incentive Plans - Schedule of Restricted Stock Awards Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity Awards awarded: Weighted average grant-date fair value (usd per share) | $ 223.05 | $ 141.82 | $ 108.24 |
Grant date fair value of equity instruments other than options, vested in period | $ 62 | $ 50 | $ 59 |
Total fair value of equity instruments other than options, vested in period | 109 | 51 | 47 |
Liability Awards vested: Cash paid | 109 | 51 | 47 |
Liability Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value of equity instruments other than options, vested in period | 24 | 14 | 16 |
Liability Awards vested: Cash paid | $ 24 | $ 14 | $ 16 |
Incentive Plans - Schedule of P
Incentive Plans - Schedule of Performance Awards (Details) - Performance Awards - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards granted (usd per share) | $ 331.58 | $ 165.32 | $ 184.06 |
Grant date fair value of equity instruments other than options, vested in period | $ 26 | $ 13 | $ 10 |
Total fair value of equity instruments other than options, vested in period | $ 30 | $ 14 | $ 5 |
Incentive Plans - Schedule Of A
Incentive Plans - Schedule Of Assumptions To Estimate The Fair Value (Details) - Performance Awards | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.37% | 0.18% | 0.68% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Range of volatilities | 25% | 25% | 31% |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Range of volatilities | 105% | 104% | 45% |
Incentive Plans - Schedule Of_2
Incentive Plans - Schedule Of Equity Awards, Liability Awards, Performance Awards and Stock Options Activity (Details) - $ / shares | 12 Months Ended | |||
Jan. 03, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Beginning balance outstanding (in shares) | 741,892 | |||
Awards granted (in shares) | 249,765 | |||
Awards forfeited (in shares) | (50,793) | |||
Awards vested (in shares) | (459,571) | |||
Exercised (in shares) | 0 | |||
Ending balance outstanding (in shares) | 481,293 | 741,892 | ||
Weighted Average Grant- Date Fair Value | ||||
Beginning awards (usd per share) | $ 131.83 | |||
Awards granted (usd per share) | 223.05 | $ 141.82 | $ 108.24 | |
Awards forfeited (usd per share) | 151.54 | |||
Awards vested (usd per share) | 134.60 | |||
Ending outstanding (usd per share) | $ 174.44 | $ 131.83 | ||
Liability Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Beginning balance outstanding (in shares) | 182,278 | |||
Awards granted (in shares) | 49,748 | |||
Awards forfeited (in shares) | (12,829) | |||
Awards vested (in shares) | (99,502) | |||
Exercised (in shares) | 0 | |||
Ending balance outstanding (in shares) | 119,695 | 182,278 | ||
Performance Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Beginning balance outstanding (in shares) | 304,686 | |||
Awards granted (in shares) | 114,066 | |||
Awards forfeited (in shares) | (6,226) | |||
Awards vested (in shares) | (144,523) | |||
Exercised (in shares) | 0 | |||
Ending balance outstanding (in shares) | 268,003 | 304,686 | ||
Weighted Average Grant- Date Fair Value | ||||
Beginning awards (usd per share) | $ 173.39 | |||
Awards granted (usd per share) | 331.58 | $ 165.32 | $ 184.06 | |
Awards forfeited (usd per share) | 244.11 | |||
Awards vested (usd per share) | 182.95 | |||
Ending outstanding (usd per share) | $ 233.92 | $ 173.39 | ||
Stock Options | ||||
Performance percentage to reach maximum | 250% | |||
Number of shares earned for each vested award (in shares) | 0.99 | |||
Performance Awards | Subsequent event | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Awards granted (in shares) | 130,855 | |||
Performance Awards | Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Awards vested (in shares) | (13,718) | |||
Stock Options | ||||
Stock Options | ||||
Beginning balance outstanding (in shares) | 6,039 | |||
Awards granted (in shares) | 0 | |||
Awards forfeited (in shares) | 0 | |||
Awards vested (in shares) | 0 | |||
Options exercised (in shares) | (6,039) | |||
Ending balance outstanding (in shares) | 0 | 6,039 | ||
Performance Units Service Period Lapsed | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Awards vested (in shares) | (132,163) | |||
Performance Units Service Period Lapsed | Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Awards vested (in shares) | (1,358) |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Beginning asset retirement obligations | $ 354 | $ 282 | |
New wells placed on production | 8 | 10 | |
Changes in estimates (a) | 162 | 7 | |
Dispositions | 0 | (24) | |
Liabilities settled | (62) | (38) | |
Accretion of discount | 15 | 7 | $ 9 |
Ending asset retirement obligations | 477 | 354 | $ 282 |
Less current portion of asset retirement obligations | (82) | (55) | |
Asset retirement obligations, long-term | 395 | 299 | |
Parsley | |||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Liabilities assumed in acquisition | 0 | 73 | |
DoublePoint | |||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Liabilities assumed in acquisition | $ 0 | $ 37 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) numberOfLeases | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Leases [Abstract] | |||
Number of finance leases | numberOfLeases | 1 | ||
Sublease income (Note 10) | $ | $ 20,000,000 | $ 4,000,000 | $ 0 |
Leases - Schedule of Assets and
Leases - Schedule of Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2019 |
Leases [Abstract] | |||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other property and equipment, net | Other property and equipment, net | |
Finance lease right-of-use asset | $ 472 | $ 500 | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Current | Other Liabilities, Current | Other Liabilities, Current |
Finance lease liability, current | $ 20 | $ 18 | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities | Other liabilities |
Finance lease liability, noncurrent | $ 501 | $ 521 |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Amortization of right-of-use asset | $ 28 | $ 28 | $ 28 |
Finance Lease, Interest Expense | 16 | 16 | 17 |
Operating lease cost | 151 | 162 | 151 |
Short-term lease cost | 211 | 107 | 23 |
Variable lease cost | 40 | 59 | 27 |
Total lease costs | $ 446 | $ 372 | $ 246 |
Leases - Schedule of Lease Cash
Leases - Schedule of Lease Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating cash flows: | |||
Cash payments for operating, short-term and variable leases | $ 200 | $ 131 | $ 83 |
Finance Lease, Interest Expense | 16 | 16 | 17 |
Investing cash flows: | |||
Cash payments for operating, short-term and variable leases (a) | 208 | 191 | 130 |
Financing cash flows: | |||
Cash payments for principal on finance lease | $ 18 | $ 17 | $ 16 |
Leases - Schedule of Changes in
Leases - Schedule of Changes in Operating Lease Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Lease, Liability [Abstract] | |||
Lease liabilities, beginning balance | $ 364 | $ 210 | |
Liabilities assumed in exchange for new right-of-use assets (a) | 149 | 100 | |
Contract modifications (b) | (6) | 2 | |
Liabilities settled | (153) | (158) | |
Accretion of discount on operating leases (c) | 7 | 7 | |
Lease liabilities, ending balance | 361 | 364 | |
Finance Lease Liability [Abstract] | |||
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other property and equipment, net | ||
Lease liabilities, beginning balance | 539 | 556 | |
Liabilities assumed in exchange for new right-of-use assets (a) | 0 | 0 | |
Contract modifications (b) | 0 | 0 | |
Liabilities settled | (18) | (17) | |
Lease liabilities, ending balance | $ 521 | $ 539 | |
Operating lease, weighted average discount rate, percent | 2.50% | 1.80% | |
Finance lease, weighted average discount rate, percent | 3% | ||
Operating lease, weighted average remaining lease term | 5 years | 6 years | |
Finance lease, weighted average remaining lease term | 17 years | 18 years | |
Parsley | |||
Operating Lease, Liability [Abstract] | |||
Liabilities assumed in exchange for new right-of-use assets (a) | $ 0 | $ 201 | |
Finance Lease Liability [Abstract] | |||
Liabilities assumed in exchange for new right-of-use assets (a) | 0 | 0 | |
DoublePoint | |||
Operating Lease, Liability [Abstract] | |||
Liabilities assumed in exchange for new right-of-use assets (a) | 0 | 2 | |
Finance Lease Liability [Abstract] | |||
Liabilities assumed in exchange for new right-of-use assets (a) | $ 0 | $ 0 |
Leases - Payment Schedule for O
Leases - Payment Schedule for Operating Lease Obligations (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Operating lease, liability | |||
2023 | $ 132 | ||
2024 | 93 | ||
2025 | 42 | ||
2026 | 20 | ||
2027 | 20 | ||
Thereafter | 78 | ||
Total lease payments | 385 | ||
Less present value discount | (24) | ||
Present value of lease liabilities | 361 | $ 364 | $ 210 |
Finance lease, liability | |||
2023 | 35 | ||
2024 | 35 | ||
2025 | 36 | ||
2026 | 36 | ||
2027 | 37 | ||
Thereafter | 491 | ||
Total lease payments | 670 | ||
Less present value discount | (149) | ||
Present value of lease liabilities | $ 521 | $ 539 | $ 556 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - South Texas Divestiture - USD ($) $ in Millions | 36 Months Ended | 43 Months Ended | ||
Dec. 31, 2025 | Jul. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Loss Contingencies [Line Items] | ||||
Loss contingency, obligation, percentage | 10,000% | |||
Deficiency fee liability | $ 173 | $ 147 | ||
Guarantor obligations, reimbursement | $ 89 | |||
Forecast | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, buyer recovery, percentage | 18% |
Commitments And Contingencies_2
Commitments And Contingencies - Schedule of Minimum Commitments (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2023 | $ 844 |
2024 | 791 |
2025 | 787 |
2026 | 609 |
2027 | $ 626 |
Commitments And Contingencies_3
Commitments And Contingencies - Schedule of Delivery and Purchase Commitments (Details) | Dec. 31, 2022 mMBtus_per_day bblPerDay |
Oil | |
2023 | 130,000 |
2024 | 122,459 |
2025 | 74,795 |
2026 | 50,000 |
2027 | 39,521 |
Thereafter | 0 |
Gas | |
2023 | mMBtus_per_day | 428,356 |
2024 | mMBtus_per_day | 408,880 |
2025 | mMBtus_per_day | 345,000 |
2026 | mMBtus_per_day | 223,630 |
2027 | mMBtus_per_day | 129,932 |
Thereafter | mMBtus_per_day | 101,472 |
Water | |
2023 | 90,000 |
2024 | 90,000 |
2025 | 90,000 |
2026 | 90,000 |
2027 | 90,000 |
Thereafter | 11,230 |
Related Party Transactions (Det
Related Party Transactions (Details) shares in Millions, $ in Millions | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Oct. 19, 2020 | Dec. 31, 2018 shares | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) agreement | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Mar. 31, 2019 USD ($) | |
Related Party Transaction [Line Items] | |||||||
Ownership threshold for right to designate director | 5% | ||||||
Pressure pumping related service charges | $ (342) | $ (406) | $ (238) | ||||
Accounts payable - due to affiliate | 44 | 66 | |||||
Revenue - service revenue | 24,384 | 17,870 | 7,024 | ||||
Income (loss) before income taxes | $ 9,951 | 2,746 | (261) | ||||
ProPetro | |||||||
Related Party Transaction [Line Items] | |||||||
Number of agreements | agreement | 2 | ||||||
Right to terminate notice period | 90 days | ||||||
Revenue - service revenue | $ 931 | 875 | 789 | ||||
Cost of services (exclusive of depreciation and amortization) | 640 | 662 | 584 | ||||
Income (loss) before income taxes | $ (11) | $ (54) | $ (107) | ||||
ProPetro | ProPetro | |||||||
Related Party Transaction [Line Items] | |||||||
Percent ownership | 14% | ||||||
ProPetro | Pressure pumping assets | Sale of assets | |||||||
Related Party Transaction [Line Items] | |||||||
Shares received (in shares) | shares | 16.6 | ||||||
Short-term receivables | $ 110 |
Major Customers - Consolidated
Major Customers - Consolidated Oil, NGL And Gas Revenues (Details) - Customer concentration - Revenue Benchmark | 12 Months Ended | ||
Dec. 31, 2022 Rate | Dec. 31, 2021 Rate | Dec. 31, 2020 Rate | |
Energy Transfer Crude Marketing LLC | |||
Concentration Risk [Line Items] | |||
Concentration risk percent | 23% | 20% | 36% |
Shell Trading US Company | |||
Concentration Risk [Line Items] | |||
Concentration risk percent | 14% | 13% | 2% |
Occidental Energy Marketing Inc. | |||
Concentration Risk [Line Items] | |||
Concentration risk percent | 12% | 10% | 18% |
Plains Marketing L.P. | |||
Concentration Risk [Line Items] | |||
Concentration risk percent | 10% | 9% | 14% |
Major Customers - Sales of Purc
Major Customers - Sales of Purchased Oil and Gas (Details) | 12 Months Ended | ||
Dec. 31, 2022 Rate | Dec. 31, 2021 Rate | Dec. 31, 2020 Rate | |
Occidental Energy Marketing Inc. | Customer concentration | Sales of Purchased Commodities | |||
Concentration Risk [Line Items] | |||
Concentration risk percent | 14% | 27% | 28% |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Revenue - service revenue | $ 24,384 | $ 17,870 | $ 7,024 |
Oil sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenue - service revenue | 12,289 | 8,808 | 2,871 |
NGL sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenue - service revenue | 2,204 | 1,707 | 490 |
Gas sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenue - service revenue | 1,817 | 988 | 269 |
Total oil and gas revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenue - service revenue | 16,310 | 11,503 | 3,630 |
Sales of purchased oil | |||
Disaggregation of Revenue [Line Items] | |||
Revenue - service revenue | 7,992 | 6,247 | 3,359 |
Sales of purchased gas | |||
Disaggregation of Revenue [Line Items] | |||
Revenue - service revenue | 80 | 62 | 24 |
Sales of purchased diesel | |||
Disaggregation of Revenue [Line Items] | |||
Revenue - service revenue | 0 | 58 | 11 |
Sales of purchased sand | |||
Disaggregation of Revenue [Line Items] | |||
Revenue - service revenue | 2 | 0 | 0 |
Total sales of purchased commodities | |||
Disaggregation of Revenue [Line Items] | |||
Revenue - service revenue | $ 8,074 | $ 6,367 | $ 3,394 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable balance representing amounts due or billable | $ 1,800 | $ 1,600 |
Interest and Other Income (Lo_3
Interest and Other Income (Loss), Net - Components of Interest and Other Income (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest and Other Income [Abstract] | |||
Investment in affiliate valuation adjustment (Note 4) | $ 37,000,000 | $ 12,000,000 | $ (64,000,000) |
Interest income | 36,000,000 | 1,000,000 | 5,000,000 |
Sublease income (Note 10) | 20,000,000 | 4,000,000 | 0 |
Investment in Laredo valuation adjustment (Note 4) | 17,000,000 | (11,000,000) | 0 |
Contingent consideration valuation adjustment (Note 5) | 0 | 0 | (42,000,000) |
Deferred compensation plan income (loss), net (Note 4) | (7,000,000) | 10,000,000 | 7,000,000 |
Other | 16,000,000 | 7,000,000 | 27,000,000 |
Interest and other income (loss), net | $ 119,000,000 | $ 23,000,000 | $ (67,000,000) |
Other Expense - Schedule of Com
Other Expense - Schedule of Components of Other Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||
Loss on early extinguishment of debt, net (Note 7) | $ 39 | $ 2 | $ 27 |
Unoccupied facility expense (a) | 35 | 38 | (1) |
Termination and idle drilling and frac equipment charges (b) | 25 | 10 | 80 |
Legal and environmental contingencies (Note 11) | 23 | 17 | 12 |
Impairment of long-lived assets | 23 | 0 | 0 |
Transportation commitment charges (d) | 10 | 22 | 16 |
Restructuring charges (e) | 0 | 2 | 79 |
Parsley Acquisition transaction costs (f) | 0 | 211 | 10 |
DoublePoint Acquisition transaction costs (g) | 0 | 33 | 0 |
Winter Storm Uri gas commitments (h) | 0 | 80 | 0 |
Vertical integration services income (i) | (7) | (6) | (2) |
South Texas deficiency fee obligation, net (j) | (18) | (10) | 80 |
Other | 43 | 11 | 20 |
Total other expense | 173 | 410 | 321 |
Gross revenues included in third party loss from vertical integration services | 34 | 40 | 42 |
Gross expenses included in third party loss from vertical integration services | $ 27 | 34 | $ 40 |
Parsley | Employee related costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Parsley Acquisition transaction costs (f) | 90 | ||
Parsley | Transaction related fees | |||
Restructuring Cost and Reserve [Line Items] | |||
Parsley Acquisition transaction costs (f) | $ 121 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 12, 2021 |
Valuation Allowance [Line Items] | |||
Deferred tax assets, operating loss carryforwards | $ 225 | $ 1,263 | |
Parsley | |||
Valuation Allowance [Line Items] | |||
Deferred tax liability | $ 133 | ||
Deferred tax assets, operating loss carryforwards | $ 2,300 | ||
Deferred tax assets, operating loss carryforwards, realized | $ 1,200 |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning unrecognized tax benefits | $ 27 | $ 0 | $ 39 |
Current year additions | 0 | 27 | 0 |
Effectively settled tax positions | (27) | 0 | (39) |
Ending unrecognized tax benefits | $ 0 | $ 27 | $ 0 |
Income Taxes - Schedule Of Net
Income Taxes - Schedule Of Net Tax Refunds (Payments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | |||
Tax refunds (payments), net (a) | $ (445) | $ (1) | $ 13 |
State and Local Jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Tax refunds (payments), net (a) | (21) | (3) | (3) |
UNITED STATES | |||
Operating Loss Carryforwards [Line Items] | |||
Tax refunds (payments), net (a) | $ (424) | $ 2 | $ 16 |
Income Taxes - Summary Of Open
Income Taxes - Summary Of Open Tax Years, By Jurisdiction (Details) | 12 Months Ended |
Dec. 31, 2022 | |
UNITED STATES | |
Income Tax Contingency [Line Items] | |
Open tax years, by jurisdiction | 2021 |
Various U.S. states | |
Income Tax Contingency [Line Items] | |
Open tax years, by jurisdiction | 2014 |
Income Taxes - Income Tax (Prov
Income Taxes - Income Tax (Provision) Benefit Attributable To Income From Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | |||
U.S. federal | $ (260) | $ (1) | $ 12 |
U.S. state | (39) | (44) | (3) |
Current income tax benefit (provision) | (299) | (45) | 9 |
Deferred: | |||
U.S. federal | (1,788) | (585) | 55 |
U.S. state | (19) | 2 | (3) |
Deferred income tax benefit (provision) | (1,807) | (583) | 52 |
Income tax benefit (provision) | $ (2,106) | $ (628) | $ 61 |
Income Taxes - Schedule Of Effe
Income Taxes - Schedule Of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income (loss) before income taxes | $ 9,951 | $ 2,746 | $ (261) | |
Federal statutory income tax rate | 21% | 21% | 21% | |
Benefit (provision) for federal income taxes at the statutory rate | $ (2,090) | $ (577) | $ 55 | |
State income tax provision (net of federal tax) | (45) | (33) | (5) | |
Transaction costs | 0 | (6) | 0 | |
Other | 29 | (12) | 11 | |
Income tax benefit (provision) | $ (2,106) | $ (628) | $ 61 | |
Effective tax rate | 21% | 23% | 23% |
Income Taxes - Schedule Of Defe
Income Taxes - Schedule Of Deferred Tax Assets And Deferred Tax Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Valuation Allowance [Line Items] | ||
Net operating loss carryforward (a) | $ 225 | $ 1,263 |
Credit carryforwards | 0 | 110 |
Lease deferred tax assets | 190 | 196 |
Asset retirement obligations | 104 | 77 |
Net deferred hedge losses | 33 | 167 |
Incentive plans | 25 | 27 |
Convertible debt | 2 | 17 |
South Texas Divestiture | 0 | 41 |
Other | 54 | 60 |
Deferred tax assets | 633 | 1,958 |
Oil and gas properties, principally due to differences in basis, depletion and the deduction of intangible drilling costs for tax purposes | (4,186) | (3,664) |
Other property and equipment, principally due to the deduction of bonus depreciation for tax purposes | (233) | (235) |
Lease deferred tax liabilities | (72) | (76) |
South Texas Divestiture | 0 | (18) |
Other | (9) | (3) |
Deferred tax liabilities | (4,500) | (3,996) |
Net deferred tax liability | (3,867) | $ (2,038) |
Domestic Tax Authority | ||
Valuation Allowance [Line Items] | ||
Net operating loss carryforward (a) | 1,100 | |
COLORADO | ||
Valuation Allowance [Line Items] | ||
Net operating loss carryforward (a) | $ 177 |
Net Income (Loss) Per Share a_2
Net Income (Loss) Per Share and Stockholders' Equity - Reconciliation of Earnings Attributable to Common Stockholders, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Net income (loss) attributable to common stockholders | $ 7,845 | $ 2,118 | $ (200) |
Participating share-based earnings | (15) | (5) | 0 |
Net Income (Loss) Available to Common Stockholders, Basic, Total | 7,830 | 2,113 | (200) |
Adjustment to after-tax interest expense to reflect the dilutive impact attributable to Convertible Notes | 6 | 6 | 0 |
Net Income (Loss) Attributable to Parent, Diluted, Total | $ 7,836 | $ 2,119 | $ (200) |
Basic weighted average shares outstanding (in shares) | 240 | 233 | 165 |
Contingently issuable stock-based compensation (in shares) | 0 | 1 | 0 |
Convertible Notes dilution (in shares) | 12 | 12 | 0 |
Diluted weighted average shares outstanding (in shares) | 252 | 246 | 165 |
Basic (usd per share) | $ 32.61 | $ 9.06 | $ (1.21) |
Diluted (usd per share) | $ 31.13 | $ 8.61 | $ (1.21) |
Net Income (Loss) Per Share a_3
Net Income (Loss) Per Share and Stockholders' Equity - Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||||||||||||||
Common stock, dividends, per share, declared, base (usd per share) | $ 1.10 | $ 1.10 | $ 0.78 | $ 0.78 | $ 0.62 | $ 0.56 | $ 0.56 | $ 0.56 | $ 0.55 | $ 0.55 | $ 0.55 | $ 0.55 | $ 3.76 | $ 2.30 | $ 2.20 |
Common stock, dividends, per share, declared (usd per share) | 4.61 | 7.47 | 6.60 | 3 | 3.02 | 1.51 | 0 | 0 | 0 | 0 | 0 | 0 | 21.68 | 4.53 | 0 |
Dividends declared (usd per share) | $ 5.71 | $ 8.57 | $ 7.38 | $ 3.78 | $ 3.64 | $ 2.07 | $ 0.56 | $ 0.56 | $ 0.55 | $ 0.55 | $ 0.55 | $ 0.55 | $ 25.44 | $ 6.83 | $ 2.20 |
Dividends, common stock, cash | $ 1,357 | $ 2,053 | $ 1,788 | $ 922 | $ 890 | $ 508 | $ 138 | $ 122 | $ 91 | $ 91 | $ 91 | $ 91 | $ 6,120 | $ 1,658 | $ 364 |
Net Income (Loss) Per Share a_4
Net Income (Loss) Per Share and Stockholders' Equity - Narrative (Details) - Common stock repurchase program - USD ($) shares in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Feb. 28, 2022 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Authorized amount | $ 4,000,000,000 | $ 2,000,000,000 | ||
Remaining authorized amount | $ 2,400,000,000 | $ 841,000,000 | ||
Purchases of treasury stock (in shares) | 1,649 | 250 | 160 | |
Stock repurchased during period (in shares) | 7.2 | 1.4 | 1.5 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||
Mar. 06, 2023 | Feb. 22, 2023 | Feb. 28, 2022 | Feb. 23, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Subsequent Event [Line Items] | |||||||||||||||||||
Dividends declared (usd per share) | $ 5.71 | $ 8.57 | $ 7.38 | $ 3.78 | $ 3.64 | $ 2.07 | $ 0.56 | $ 0.56 | $ 0.55 | $ 0.55 | $ 0.55 | $ 0.55 | $ 25.44 | $ 6.83 | $ 2.20 | ||||
Repayments of debt | $ 1,300 | $ 2,576 | $ 3,371 | $ 1,198 | |||||||||||||||
Subsequent event | |||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||
Quarterly base dividend declared (usd per share) | $ 1.10 | ||||||||||||||||||
Dividends declared (usd per share) | $ 4.48 | ||||||||||||||||||
Subsequent event | 2022 Stock repurchase program | |||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||
Stock repurchased during period (in shares) | 1,200,000 | ||||||||||||||||||
Stock repurchased during period (in US dollars) | $ 250 | ||||||||||||||||||
Subsequent event | Convertible debt | |||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||
Repayment of long term debt and payment of early conversion premium | 69 | ||||||||||||||||||
Repayments of debt | 29 | ||||||||||||||||||
Repayments of debt, exercised by shareholders | 69 | ||||||||||||||||||
Capped Call proceeds | $ 17 |
Uncategorized Items - pxd-20221
Label | Element | Value |
Stock Issued During Period, Value, Stock Options Exercised | us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised | $ 9,000,000 |
Stock Issued Or Vested During Period Value Stock Awards | pxd_StockIssuedOrVestedDuringPeriodValueStockAwards | 0 |
Treasury Stock, Value, Acquired, Cost Method | us-gaap_TreasuryStockValueAcquiredCostMethod | 176,000,000 |
APIC, Share-Based Payment Arrangement, Increase for Cost Recognition | us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue | 72,000,000 |
Dividends, Cash | us-gaap_DividendsCash | 364,000,000 |
Retained Earnings [Member] | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | (200,000,000) |
Dividends, Cash | us-gaap_DividendsCash | $ 364,000,000 |
Common Stock [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period | us-gaap_StockIssuedDuringPeriodSharesStockOptionsExercised | 98,000 |
Stock Issued Or Vested During Period Shares Stock Awards | pxd_StockIssuedOrVestedDuringPeriodSharesStockAwards | 466,000 |
Treasury Stock, Shares, Acquired | us-gaap_TreasuryStockSharesAcquired | 1,634,000 |
Additional Paid-in Capital [Member] | ||
Stock Issued During Period, Value, Stock Options Exercised | us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised | $ (2,000,000) |
APIC, Share-Based Payment Arrangement, Increase for Cost Recognition | us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue | 72,000,000 |
Treasury Stock [Member] | ||
Stock Issued During Period, Value, Stock Options Exercised | us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised | 11,000,000 |
Treasury Stock, Value, Acquired, Cost Method | us-gaap_TreasuryStockValueAcquiredCostMethod | $ 176,000,000 |