Cover
Cover | 3 Months Ended |
Mar. 31, 2023 shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Transition Report | false |
Entity Registrant Name | ConocoPhillips |
Document Period End Date | Mar. 31, 2023 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q1 |
Current Fiscal Year End Date | --12-31 |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 01-0562944 |
Entity Address, Address Line One | 925 N. Eldridge Parkway |
Entity Address, City or Town | Houston |
Entity Address, State or Province | TX |
Entity Address, Postal Zip Code | 77079 |
City Area Code | 281 |
Local Phone Number | 293-1000 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 1,210,058,689 |
Entity Central Index Key | 0001163165 |
Amendment Flag | false |
Entity File Number | 001-32395 |
Common Stock, $.01 Par Value | |
Entity Listings [Line Items] | |
Title of 12(b) Security | Common Stock, $.01 Par Value |
Trading Symbol | COP |
Security Exchange Name | NYSE |
7% Debentures due 2029 | |
Entity Listings [Line Items] | |
Title of 12(b) Security | 7% Debentures due 2029 |
Trading Symbol | CUSIP—718507BK1 |
Security Exchange Name | NYSE |
Consolidated Income Statement
Consolidated Income Statement - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues and Other Income | ||
Sales and other operating revenues | $ 14,811 | $ 17,762 |
Equity in earnings of affiliates | 499 | 426 |
Gain on dispositions | 93 | 817 |
Other income | 114 | 286 |
Total Revenues and Other Income | 15,517 | 19,291 |
Costs and Expenses | ||
Purchased commodities | 6,138 | 6,751 |
Production and operating expenses | 1,779 | 1,581 |
Selling, general and administrative expenses | 159 | 187 |
Exploration expenses | 138 | 69 |
Depreciation, depletion and amortization | 1,942 | 1,823 |
Impairments | 1 | 2 |
Taxes other than income taxes | 576 | 814 |
Accretion on discounted liabilities | 68 | 61 |
Interest and debt expense | 188 | 217 |
Foreign currency transaction (gain) loss | (44) | 24 |
Other expenses | 10 | (136) |
Total Costs and Expenses | 10,955 | 11,393 |
Income before income taxes | 4,562 | 7,898 |
Income tax provision | 1,642 | 2,139 |
Net Income | $ 2,920 | $ 5,759 |
Net Income Per Share of Common Stock (dollars) | ||
Basic (in dollars per share) | $ 2.38 | $ 4.41 |
Diluted (in dollars per share) | $ 2.38 | $ 4.39 |
Average Common Shares Outstanding (in thousands) | ||
Basic (in shares) | 1,220,228 | 1,301,930 |
Diluted (in shares) | 1,223,355 | 1,307,404 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 2,920 | $ 5,759 |
Defined benefit plans | ||
Reclassification adjustment for amortization of prior service credit included in net income | (9) | (10) |
Net change | (9) | (10) |
Reclassification adjustment for amortization of net actuarial losses included in net income | 23 | 16 |
Net change | 23 | 16 |
Income taxes on defined benefit plans | (3) | (2) |
Defined benefit plans, net of tax | 11 | 4 |
Unrealized holding gain (loss) on securities | 6 | (4) |
Reclassification adjustment for gain included in net income | (1) | 0 |
Income taxes on unrealized holding gain (loss) on securities | (1) | 1 |
Unrealized holding gain (loss) on securities, net of tax | 4 | (3) |
Foreign currency translation adjustments, net of tax | (42) | 141 |
Other Comprehensive Income (Loss), Net of Tax | (27) | 142 |
Comprehensive Income | $ 2,893 | $ 5,901 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 6,974 | $ 6,458 |
Short-term investments | 1,635 | 2,785 |
Accounts and notes receivable (net of allowance of $3 and $2, respectively) | 5,280 | 7,075 |
Accounts and notes receivable—related parties | 16 | 13 |
Inventories | 1,258 | 1,219 |
Prepaid expenses and other current assets | 953 | 1,199 |
Total Current Assets | 16,116 | 18,749 |
Investments and long-term receivables | 8,197 | 8,225 |
Net properties, plants and equipment (net of accumulated DD&A of $67,691 and $66,630, respectively) | 65,090 | 64,866 |
Other assets | 2,038 | 1,989 |
Total Assets | 91,441 | 93,829 |
Liabilities | ||
Accounts payable | 5,078 | 6,113 |
Accounts payable—related parties | 22 | 50 |
Short-term debt | 1,317 | 417 |
Accrued income and other taxes | 2,847 | 3,193 |
Employee benefit obligations | 420 | 728 |
Other accruals | 1,869 | 2,346 |
Total Current Liabilities | 11,553 | 12,847 |
Long-term debt | 15,266 | 16,226 |
Asset retirement obligations and accrued environmental costs | 6,324 | 6,401 |
Deferred income taxes | 7,927 | 7,726 |
Employee benefit obligations | 1,007 | 1,074 |
Other liabilities and deferred credits | 1,581 | 1,552 |
Total Liabilities | 43,658 | 45,826 |
Equity | ||
Par value | 21 | 21 |
Capital in excess of par | 61,100 | 61,142 |
Treasury stock (at cost: 2023—892,452,137 shares; 2022—877,029,062 shares) | (61,904) | (60,189) |
Accumulated other comprehensive loss | (6,027) | (6,000) |
Retained earnings | 54,593 | 53,029 |
Total Equity | 47,783 | 48,003 |
Total Liabilities and Equity | $ 91,441 | $ 93,829 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for accounts and notes receivable | $ 3 | $ 2 |
Accumulated depreciation, depletion and amortization | $ 67,691 | $ 66,630 |
Common stock, shares authorized (in shares) | 2,500,000,000 | 2,500,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued (in shares) | 2,102,510,826 | 2,100,885,134 |
Treasury stock, shares (in shares) | 892,452,137 | 877,029,062 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Cash Flows From Operating Activities | |||
Net Income | $ 2,920 | $ 5,759 | |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation, depletion and amortization | 1,942 | 1,823 | |
Impairments | 1 | 2 | |
Dry hole costs and leasehold impairments | 68 | 7 | |
Accretion on discounted liabilities | 68 | 61 | |
Deferred taxes | 324 | 373 | |
Undistributed equity earnings | 491 | 220 | |
Gain on dispositions | (93) | (817) | |
Gain on investment in Cenovus Energy | 0 | (251) | |
Other | (35) | (152) | |
Working capital adjustments | |||
Decrease (increase) in accounts and notes receivable | 1,701 | (1,535) | |
Decrease (increase) in inventories | (45) | 27 | |
Decrease in prepaid expenses and other current assets | 255 | 58 | |
Decrease in accounts payable | (1,266) | (204) | |
Decrease in taxes and other accruals | (928) | (303) | |
Net Cash Provided by Operating Activities | 5,403 | 5,068 | |
Cash Flows From Investing Activities | |||
Capital expenditures and investments | (2,897) | (3,161) | |
Working capital changes associated with investing activities | 208 | 363 | |
Acquisition of businesses, net of cash acquired | 0 | 37 | |
Proceeds from asset dispositions | 188 | 2,332 | |
Net (purchase) sale of investments | 1,065 | (263) | |
Collection of advances/loans—related parties | 0 | 55 | |
Other | (12) | 26 | |
Net Cash Used in Investing Activities | (1,448) | (611) | |
Cash Flows From Financing Activities | |||
Issuance of debt | 0 | 2,897 | |
Repayment of debt | (43) | (3,964) | |
Issuance of company common stock | (97) | 271 | |
Repurchase of company common stock | (1,700) | (1,425) | |
Dividends paid | (1,488) | (864) | |
Other | 2 | (52) | |
Net Cash Used in Financing Activities | (3,326) | (3,137) | |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash | (104) | 21 | |
Net Change in Cash, Cash Equivalents and Restricted Cash | 525 | 1,341 | |
Cash, cash equivalents and restricted cash at beginning of period | 6,694 | [1] | 5,398 |
Cash, Cash Equivalents and Restricted Cash at End of Period | $ 7,219 | [2] | $ 6,739 |
[1]Restricted cash of $236 million is included in the " Other assets Other assets |
Consolidated Statement of Cas_2
Consolidated Statement of Cash Flows (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Cash Flows [Abstract] | ||
Restricted cash | $ 245 | $ 236 |
Restricted Cash, Statement of Financial Position [Extensible Enumeration] | Other Assets, Noncurrent | Other Assets, Noncurrent |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 1—Basis of Presentation The interim-period financial information presented in the financial statements included in this report is unaudited and, in the opinion of management, includes all known accruals and adjustments necessary for a fair presentation of the consolidated financial position of ConocoPhillips, its results of operations and cash flows for such periods. All such adjustments are of a normal and recurring nature unless otherwise disclosed. Certain notes and other information have been condensed or omitted from the interim financial statements included in this report. Therefore, these financial statements should be read in conjunction with the consolidated financial statements and notes included in our 2022 Annual Report on Form 10-K. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 2—Inventories Millions of Dollars March 31 December 31 Crude oil and natural gas $ 666 641 Materials and supplies 592 578 Total Inventories $ 1,258 1,219 Inventories valued on the LIFO basis $ 445 396 |
Investments and Long-Term Recei
Investments and Long-Term Receivables | 3 Months Ended |
Mar. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments and Long-Term Receivables | Note 3—Investments and Long-Term Receivables Australia Pacific LNG Pty Ltd (APLNG) In 2012, APLNG executed an $8.5 billion project finance facility that became non-recourse following financial completion in 2017. The facility is currently composed of a financing agreement with the Export-Import Bank of the United States, a commercial bank facility and two United States Private Placement note facilities. APLNG principal and interest payments commenced in March 2017 and are scheduled to occur bi-annually until September 2030. At March 31, 2023, a balance of $4.9 billion was outstanding on these facilities. See Note . At March 31, 2023, the carrying value of our equity method investment in APLNG was approximately $5.8 billion. This balance is included in the “Investments and long-term receivables” line on our consolidated balance sheet. Port Arthur Liquefaction Holdings, LLC (PALNG) In March 2023, we acquired a 30 percent direct equity investment in PALNG, a joint venture for the development of a large-scale LNG facility for the first phase of the Port Arthur LNG project ("Phase 1"). Sempra PALNG Holdings, LLC owns the remaining 70 percent interest in the joint venture. At March 31, 2023, the carrying value of our equity method investment in PALNG was approximately $0.4 billion. This balance is included in the “Investments and long-term receivables” line on our consolidated balance sheet and is reported in our Corporate and Other segment. |
Investment in Cenovus Energy
Investment in Cenovus Energy | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment in Cenovus Energy | Note 4—Investment in Cenovus Energy During the first quarter of 2022, we sold our remaining 91 million common shares of Cenovus Energy (CVE), recognizing proceeds of $1.4 billion and a net gain of $251 million. The gain was recognized within " Other income” on our consolidated income statement. Proceeds related to the sale of our CVE shares were included within "Cash Flows From Investing Activities" on our consolidated statement of cash flows. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Note 5—Debt Our debt balance at March 31, 2023 was $16.6 billion compared with $16.6 billion at December 31, 2022. Our revolving credit facility provides a total borrowing capacity of $5.5 billion with an expiration date of February 2027. Our revolving credit facility may be used for direct bank borrowings, the issuance of letters of credit totaling up to $500 million, or as support for our commercial paper program. The revolving credit facility is broadly syndicated among financial institutions and does not contain any material adverse change provisions or any covenants requiring maintenance of specified financial ratios or credit ratings. The facility agreement contains a cross-default provision relating to the failure to pay principal or interest on other debt obligations of $200 million or more by ConocoPhillips, or any of its consolidated subsidiaries. The amount of the facility is not subject to redetermination prior to its expiration date. Credit facility borrowings may bear interest at a margin above the Secured Overnight Financing Rate (SOFR). The facility agreement calls for commitment fees on available, but unused, amounts. The facility agreement also contains early termination rights if our current directors or their approved successors cease to be a majority of the Board of Directors. The revolving credit facility supports our ability to issue up to $5.5 billion of commercial paper. Commercial paper is generally limited to maturities of 90 days and is included in short-term debt on our consolidated balance sheet. With no commercial paper outstanding and no direct borrowings or letters of credit, we had access to $5.5 billion in available borrowing capacity under our revolving credit facility at March 31, 2023. At December 31, 2022, we had no commercial paper outstanding and no direct borrowings or letters of credit issued. We do not have any ratings triggers on any of our corporate debt that would cause an automatic default, and thereby impact our access to liquidity upon downgrade of our credit ratings. If our credit ratings are downgraded from their current levels, it could increase the cost of corporate debt available to us and restrict our access to the commercial paper markets. If our credit ratings were to deteriorate to a level prohibiting us from accessing the commercial paper market, we would still be able to access funds under our revolving credit facility. At March 31, 2023, we had $283 million of certain variable rate demand bonds (VRDBs) outstanding with maturities ranging through 2035. The VRDBs are redeemable at the option of the bondholders on any business day. If they are ever redeemed, we have the ability and intent to refinance on a long-term basis, therefore, the VRDBs are included in the “Long-term debt” line on our consolidated balance sheet. |
Changes in Equity
Changes in Equity | 3 Months Ended |
Mar. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Changes in Equity | Note 6—Changes in Equity Millions of Dollars Common Stock Par Value Capital in Excess of Par Treasury Stock Accum. Other Comprehensive Income (Loss) Retained Earnings Total For the three months ended March 31, 2023 Balances at December 31, 2022 $ 21 61,142 (60,189) (6,000) 53,029 48,003 Net income 2,920 2,920 Other comprehensive loss (27) (27) Dividends declared Ordinary ($0.51 per common share) (625) (625) Variable return of cash ($0.60 per common share) (731) (731) Repurchase of company common stock (1,700) (1,700) Excise tax on share repurchases (15) (15) Distributed under benefit plans (42) (42) Other — Balances at March 31, 2023 $ 21 61,100 (61,904) (6,027) 54,593 47,783 Millions of Dollars Common Stock Par Value Capital in Excess of Par Treasury Stock Accum. Other Comprehensive Income (Loss) Retained Earnings Total For the three months ended March 31, 2022 Balances at December 31, 2021 $ 21 60,581 (50,920) (4,950) 40,674 45,406 Net income 5,759 5,759 Other comprehensive income 142 142 Dividends declared Ordinary ($0.46 per common share) (603) (603) Variable return of cash ($0.30 per common share) (390) (390) Repurchase of company common stock (1,425) (1,425) Distributed under benefit plans 326 326 Other 1 2 3 Balances at March 31, 2022 $ 21 60,907 (52,344) (4,808) 45,442 49,218 |
Guarantees
Guarantees | 3 Months Ended |
Mar. 31, 2023 | |
Guarantees [Abstract] | |
Guarantees | Note 7—Guarantees At March 31, 2023, we were liable for certain contingent obligations under various contractual arrangements as described below. We recognize a liability, at inception, for the fair value of our obligation as a guarantor for newly issued or modified guarantees. Unless the carrying amount of the liability is noted below, we have not recognized a liability because the fair value of the obligation is immaterial. In addition, unless otherwise stated, we are not currently performing with any significance under the guarantee and expect future performance to be either immaterial or have only a remote chance of occurrence. APLNG Guarantees At March 31, 2023, we had outstanding multiple guarantees in connection with our 47.5 percent ownership interest in APLNG. The following is a description of the guarantees with values calculated utilizing March 2023 exchange rates: • During the third quarter of 2016, we issued a guarantee to facilitate the withdrawal of our pro-rata portion of the funds in a project finance reserve account. We estimate the remaining term of this guarantee to be eight years. Our maximum exposure under this guarantee is approximately $210 million and may become payable if an enforcement action is commenced by the project finance lenders against APLNG. At March 31, 2023, the carrying value of this guarantee was approximately $14 million. • In conjunction with our original purchase of an ownership interest in APLNG from Origin Energy Limited in October 2008, we agreed to reimburse Origin Energy Limited for our share of the existing contingent liability arising under guarantees of an existing obligation of APLNG to deliver natural gas under several sales agreements. The final guarantee expires in the fourth quarter of 2041. Our maximum potential liability for future payments, or cost of volume delivery, under these guarantees is estimated to be $760 million ($1.3 billion in the event of intentional or reckless breach) and would become payable if APLNG fails to meet its obligations under these agreements and the obligations cannot otherwise be mitigated. Future payments are considered unlikely, as the payments, or cost of volume delivery, would only be triggered if APLNG does not have enough natural gas to meet these sales commitments and if the co-venturers do not make necessary equity contributions into APLNG. • We have guaranteed the performance of APLNG with regard to certain other contracts executed in connection with the project’s continued development. The guarantees have remaining terms of 14 to 23 years or the life of the venture. Our maximum potential amount of future payments related to these guarantees is approximately $390 million and would become payable if APLNG does not perform. At March 31, 2023, the carrying value of these guarantees was approximately $29 million. Qatar Liquefied Gas Company Limited (8) (QG8) Guarantee We have guaranteed our portion of certain fiscal and other joint venture obligations as a shareholder in QG8. This guarantee has an approximate 30-year term with no maximum limit. At March 31, 2023, the carrying value of this guarantee was approximately $7 million. Other Guarantees We have other guarantees with maximum future potential payment amounts totaling approximately $600 million, which consist primarily of guarantees of the residual value of leased office buildings and guarantees of the residual value of corporate aircraft. These guarantees have remaining terms of two Indemnifications Over the years, we have entered into agreements to sell ownership interests in certain legal entities, joint ventures and assets that gave rise to qualifying indemnifications. These agreements include indemnifications for taxes and environmental liabilities. The carrying amount recorded for these indemnification obligations at March 31, 2023 was approximately $20 million. Those related to environmental issues have terms that are generally indefinite, and the maximum amounts of future payments are generally unlimited. Although it is reasonably possible future payments may exceed amounts recorded, due to the nature of the indemnifications, it is not possible to make a reasonable estimate of the maximum potential amount of future payments. See Note for additional information about environmental liabilities. |
Contingencies and Commitments
Contingencies and Commitments | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Commitments | Note 8—Contingencies and Commitments A number of lawsuits involving a variety of claims arising in the ordinary course of business have been filed against ConocoPhillips. We also may be required to remove or mitigate the effects on the environment of the placement, storage, disposal or release of certain chemical, mineral and petroleum substances at various active and inactive sites. We regularly assess the need for accounting recognition or disclosure of these contingencies. In the case of all known contingencies (other than those related to income taxes), we accrue a liability when the loss is probable and the amount is reasonably estimable. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the low end of the range is accrued. We do not reduce these liabilities for potential insurance or third-party recoveries. We accrue receivables for insurance or other third-party recoveries when applicable. With respect to income tax-related contingencies, we use a cumulative probability-weighted loss accrual in cases where sustaining a tax position is less than certain. Based on currently available information, we believe it is remote that future costs related to known contingent liability exposures will exceed current accruals by an amount that would have a material adverse impact on our consolidated financial statements. As we learn new facts concerning contingencies, we reassess our position both with respect to accrued liabilities and other potential exposures. Estimates particularly sensitive to future changes include contingent liabilities recorded for environmental remediation, tax and legal matters. Estimated future environmental remediation costs are subject to change due to such factors as the uncertain magnitude of cleanup costs, the unknown time and extent of such remedial actions that may be required, and the determination of our liability in proportion to that of other responsible parties. Estimated future costs related to tax and legal matters are subject to change as events evolve and as additional information becomes available during the administrative and litigation processes. Environmental We are subject to international, federal, state and local environmental laws and regulations and record accruals for environmental liabilities based on management’s best estimates. These estimates are based on currently available facts, existing technology, and presently enacted laws and regulations, taking into account stakeholder and business considerations. When measuring environmental liabilities, we also consider our prior experience in remediation of contaminated sites, other companies’ cleanup experience, and data released by the U.S. EPA or other organizations. We consider unasserted claims in our determination of environmental liabilities, and we accrue them in the period they are both probable and reasonably estimable. Although liability of those potentially responsible for environmental remediation costs is generally joint and several for federal sites and frequently so for other sites, we are usually only one of many companies cited at a particular site. Due to the joint and several liabilities, we could be responsible for all cleanup costs related to any site at which we have been designated as a potentially responsible party. We have been successful to date in sharing cleanup costs with other financially sound companies. Many of the sites at which we are potentially responsible are still under investigation by the EPA or the agency concerned. Prior to actual cleanup, those potentially responsible normally assess the site conditions, apportion responsibility and determine the appropriate remediation. In some instances, we may have no liability or may attain a settlement of liability. Where it appears that other potentially responsible parties may be financially unable to bear their proportional share, we consider this inability in estimating our potential liability, and we adjust our accruals accordingly. As a result of various acquisitions in the past, we assumed certain environmental obligations. Some of these environmental obligations are mitigated by indemnifications made by others for our benefit, and some of the indemnifications are subject to dollar limits and time limits. We are currently participating in environmental assessments and cleanups at numerous CERCLA and other comparable state and international sites. After an assessment of environmental exposures for cleanup and other costs, we make accruals on an undiscounted basis (except those acquired in a purchase business combination, which we record on a discounted basis) for planned investigation and remediation activities for sites where it is probable future costs will be incurred and these costs can be reasonably estimated. We have not reduced these accruals for possible insurance recoveries. For remediation activities in the U.S. and Canada, our balance sheet included a total environmental accrual of $182 million at both March 31, 2023 and December 31, 2022. We expect to incur a substantial amount of these expenditures within the next 30 years. In the future, we may be involved in additional environmental assessments, cleanups and proceedings. Litigation and Other Contingencies We are subject to various lawsuits and claims including, but not limited to, matters involving oil and gas royalty and severance tax payments, gas measurement and valuation methods, contract disputes, environmental damages, climate change, personal injury, and property damage. Our primary exposures for such matters relate to alleged royalty and tax underpayments on certain federal, state and privately owned properties, claims of alleged environmental contamination and damages from historic operations, and climate change. We will continue to defend ourselves vigorously in these matters. Our legal organization applies its knowledge, experience and professional judgment to the specific characteristics of our cases, employing a litigation management process to manage and monitor the legal proceedings against us. Our process facilitates the early evaluation and quantification of potential exposures in individual cases. This process also enables us to track those cases that have been scheduled for trial and/or mediation. Based on professional judgment and experience in using these litigation management tools and available information about current developments in all our cases, our legal organization regularly assesses the adequacy of current accruals and determines if adjustment of existing accruals, or establishment of new accruals, is required. We have contingent liabilities resulting from throughput agreements with pipeline and processing companies not associated with financing arrangements. Under these agreements, we may be required to provide any such company with additional funds through advances and penalties for fees related to throughput capacity not utilized. In addition, at March 31, 2023, we had performance obligations secured by letters of credit of $329 million (issued as direct bank letters of credit) related to various purchase commitments for materials, supplies, commercial activities and services incident to the ordinary conduct of business. In 2007, ConocoPhillips was unable to reach agreement with respect to the empresa mixta structure mandated by the Venezuelan government’s Nationalization Decree. As a result, Venezuela’s national oil company, Petróleos de Venezuela, S.A. (PDVSA), or its affiliates, directly assumed control over ConocoPhillips’ interests in the Petrozuata and Hamaca heavy oil ventures and the offshore Corocoro development project. In response to this expropriation, ConocoPhillips initiated international arbitration on November 2, 2007, with the ICSID. On September 3, 2013, an ICSID arbitration tribunal ("Tribunal") held that Venezuela unlawfully expropriated ConocoPhillips’ significant oil investments in June 2007. On January 17, 2017, the Tribunal reconfirmed the decision that the expropriation was unlawful. In March 2019, the Tribunal unanimously ordered the government of Venezuela to pay ConocoPhillips approximately $8.7 billion in compensation for the government’s unlawful expropriation of the company’s investments in Venezuela in 2007. On August 29, 2019, the Tribunal issued a decision rectifying the award and reducing it by approximately $227 million. The award now stands at $8.5 billion plus interest. The government of Venezuela sought annulment of the award, which automatically stayed enforcement of the award. On September 29, 2021, the ICSID annulment committee lifted the stay of enforcement of the award. The annulment proceedings are underway. In 2014, ConocoPhillips filed a separate and independent arbitration under the rules of the ICC against PDVSA under the contracts that had established the Petrozuata and Hamaca projects. The ICC Tribunal issued an award in April 2018, finding that PDVSA owed ConocoPhillips approximately $2 billion under their agreements in connection with the expropriation of the projects and other pre-expropriation fiscal measures. In August 2018, ConocoPhillips entered into a settlement with PDVSA to recover the full amount of this ICC award, plus interest through the payment period, including initial payments totaling approximately $500 million within a period of 90 days from the time of signing the settlement agreement. The balance of the settlement is to be paid quarterly over a period of four and a half years. Per the settlement, PDVSA recognized the ICC award as a judgment in various jurisdictions, and ConocoPhillips agreed to suspend its legal enforcement actions. ConocoPhillips sent notices of default to PDVSA on October 14 and November 12, 2019, and to date PDVSA has failed to cure its breach. As a result, ConocoPhillips has resumed legal enforcement actions. To date, ConocoPhillips has received approximately $775 million in connection with the ICC award. ConocoPhillips has ensured that the settlement and any actions taken in enforcement thereof meet all appropriate U.S. regulatory requirements, including those related to any applicable sanctions imposed by the U.S. against Venezuela. In 2016, ConocoPhillips filed a separate and independent arbitration under the rules of the ICC against PDVSA under the contracts that had established the Corocoro Project. On August 2, 2019, the ICC Tribunal awarded ConocoPhillips approximately $33 million plus interest under the Corocoro contracts. ConocoPhillips is seeking recognition and enforcement of the award in various jurisdictions. ConocoPhillips has ensured that all the actions related to the award meet all appropriate U.S. regulatory requirements, including those related to any applicable sanctions imposed by the U.S. against Venezuela. Beginning in 2017, governmental and other entities in several states/territories in the U.S. have filed lawsuits against oil and gas companies, including ConocoPhillips, seeking compensatory damages and equitable relief to abate alleged climate change impacts. Additional lawsuits with similar allegations are expected to be filed. The amounts claimed by plaintiffs are unspecified and the legal and factual issues are unprecedented, therefore, there is significant uncertainty about the scope of the claims and alleged damages and any potential impact on the Company’s financial condition. ConocoPhillips believes these lawsuits are factually and legally meritless and are an inappropriate vehicle to address the challenges associated with climate change and will vigorously defend against such lawsuits. Several Louisiana parishes and the State of Louisiana have filed 43 lawsuits under Louisiana’s State and Local Coastal Resources Management Act (SLCRMA) against oil and gas companies, including ConocoPhillips, seeking compensatory damages for contamination and erosion of the Louisiana coastline allegedly caused by historical oil and gas operations. ConocoPhillips entities are defendants in 22 of the lawsuits and will vigorously defend against them. On October 17, 2022, the Fifth Circuit affirmed remand of lead cases to state court and the subsequent request for rehearing was denied. On February 27, 2023, the Supreme Court denied a certiorari petition from the defendants regarding the Fifth Circuit ruling. Accordingly, the federal district courts have issued remands to state court. Because Plaintiffs’ SLCRMA theories are unprecedented, there is uncertainty about these claims (both as to scope and damages) and we continue to evaluate our exposure in these lawsuits. In October 2020, the Bureau of Safety and Environmental Enforcement (BSEE) ordered the prior owners of Outer Continental Shelf (OCS) Lease P-0166, including ConocoPhillips, to decommission the lease facilities, including two offshore platforms located near Carpinteria, California. This order was sent after the current owner of OCS Lease P-0166 relinquished the lease and abandoned the lease platforms and facilities. BSEE’s order to ConocoPhillips is premised on its connection to Phillips Petroleum Company, a legacy company of ConocoPhillips, which held a historical 25 percent interest in this lease and operated these facilities but sold its interest approximately 30 years ago. ConocoPhillips continues to evaluate its exposure in this matter. On May 10, 2021, ConocoPhillips filed arbitration under the rules of the Singapore International Arbitration Centre (SIAC) against Santos KOTN Pty Ltd. and Santos Limited for their failure to timely pay the $200 million bonus due upon final investment decision of the Barossa development project under the sale and purchase agreement for the sale of our Australia-West asset and operations. The matter was resolved in April 2023 to our satisfaction. In July 2021, a federal securities class action was filed against Concho, certain of Concho’s officers, and ConocoPhillips as Concho’s successor in the United States District Court for the Southern District of Texas. On October 21, 2021, the court issued an order appointing Utah Retirement Systems and the Construction Laborers Pension Trust for Southern California as lead plaintiffs (Lead Plaintiffs). On January 7, 2022, the Lead Plaintiffs filed their consolidated complaint alleging that Concho made materially false and misleading statements regarding its business and operations in violation of the federal securities laws and seeking unspecified damages, attorneys’ fees, costs, equitable/injunctive relief, and such other relief that may be deemed appropriate. On February 23, 2023, a Magistrate Judge issued a Memorandum and Recommendation (R&R) recommending the defendants’ Motion to Dismiss be denied. The defendants have filed objections to the R&R. We believe the allegations in the action are without merit and are vigorously defending this litigation. ConocoPhillips is involved in pending disputes with commercial counterparties relating to the propriety of its force majeure notices following Winter Storm Uri in 2021. We believe these claims are without merit and are vigorously defending them. Long-Term Unconditional Purchase Obligations and Commitments, Including Throughput and Take-or-Pay Agreements We have certain throughput agreements and take-or-pay agreements in support of financing arrangements. The agreements typically provide for natural gas or crude oil transport and LNG purchase commitments. The fixed and determinable portion of estimated payments under these various agreements are: 2023—$7 million; 2024—$7 million; 2025—$7 million; 2026—$7 million; 2027—$7 million; and 2028 and after—$11 billion. Generally, variable components of these obligations include commodity futures prices and inflation rates. Purchases of LNG under these commitments are expected to be offset in the same or approximately same periods by cash received from the related sales transactions. |
Derivative and Financial Instru
Derivative and Financial Instruments | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative and Financial Instruments | Note 9—Derivative and Financial Instruments We use futures, forwards, swaps and options in various markets to meet our customer needs, capture market opportunities and manage foreign exchange currency risk. Commodity Derivative Instruments Our commodity business primarily consists of natural gas, crude oil, bitumen, LNG and NGLs. Commodity derivative instruments are held at fair value on our consolidated balance sheet. Where these balances have the right of setoff, they are presented on a net basis. Related cash flows are recorded as operating activities on our consolidated statement of cash flows. On our consolidated income statement, gains and losses are recognized either on a gross basis if directly related to our physical business or a net basis if held for trading. Gains and losses related to contracts that meet and are designated with the NPNS exception are recognized upon settlement. We generally apply this exception to eligible crude contracts and certain gas contracts. We do not apply hedge accounting for our commodity derivatives. The following table presents the gross fair values of our commodity derivatives, excluding collateral, and the line items where they appear on our consolidated balance sheet: Millions of Dollars March 31 December 31 Assets Prepaid expenses and other current assets $ 983 1,795 Other assets 235 242 Liabilities Other accruals 969 1,800 Other liabilities and deferred credits 198 210 The gains (losses) from commodity derivatives incurred, and the line items where they appear on our consolidated income statement were: Millions of Dollars Three Months Ended March 31 2023 2022 Sales and other operating revenues $ 28 (407) Other income 1 1 Purchased commodities (72) 401 The table below summarizes our net exposures resulting from outstanding commodity derivative contracts: Open Position March 31 December 31 Commodity Natural gas and power (billions of cubic feet equivalent) Fixed price (16) (14) Basis (39) (8) Financial Instruments We invest in financial instruments with maturities based on our cash forecasts for the various accounts and currency pools we manage. The types of financial instruments in which we currently invest include: • Time deposits: Interest bearing deposits placed with financial institutions for a predetermined amount of time. • Demand deposits: Interest bearing deposits placed with financial institutions. Deposited funds can be withdrawn without notice. • Commercial paper: Unsecured promissory notes issued by a corporation, commercial bank or government agency purchased at a discount, reaching par value at maturity. • U.S. government or government agency obligations: Securities issued by the U.S. government or U.S. government agencies. • Foreign government obligations: Securities issued by foreign governments. • Corporate bonds: Unsecured debt securities issued by corporations. • Asset-backed securities: Collateralized debt securities. The following investments are carried on our consolidated balance sheet at cost, plus accrued interest, and the table reflects remaining maturities at March 31, 2023, and December 31, 2022: Millions of Dollars Carrying Amount Cash and Cash Equivalents Short-Term Investments March 31 December 31 March 31 December 31 Cash $ 676 593 Demand Deposits 1,174 1,638 Time Deposits 1 to 90 days 4,257 4,116 985 1,288 91 to 180 days 16 883 Within one year 91 11 U.S. Government Obligations 1 to 90 days 754 14 — — $ 6,861 6,361 1,092 2,182 The following investments in debt securities classified as available for sale are carried at fair value on our consolidated balance sheet at March 31, 2023, and December 31, 2022: Millions of Dollars Carrying Amount Cash and Cash Equivalents Short-Term Investments Investments and Long-Term March 31 December 31 March 31 December 31 March 31 December 31 Major Security Type Corporate Bonds $ — — 307 323 391 309 Commercial Paper 101 97 136 156 U.S. Government Obligations 12 — 87 115 96 63 U.S. Government Agency Obligations 13 8 7 5 Foreign Government Obligations — — 7 7 Asset-backed Securities — 1 111 138 $ 113 97 543 603 612 522 Cash and Cash Equivalents and Short-Term Investments have remaining maturities within one year. Investments and Long-Term Receivables have remaining maturities greater than one year through five years. The following table summarizes the amortized cost basis and fair value of investments in debt securities classified as available for sale: Millions of Dollars Amortized Cost Basis Fair Value March 31 December 31 March 31 December 31 Major Security Type Corporate Bonds $ 705 641 698 632 Commercial Paper 237 253 237 253 U.S. Government Obligations 197 181 195 178 U.S. Government Agency Obligations 20 13 20 13 Foreign Government Obligations 7 7 7 7 Asset-backed Securities 112 139 111 139 $ 1,278 1,234 1,268 1,222 As of March 31, 2023 and December 31, 2022, total unrealized losses for debt securities classified as available for sale with net losses were $11 million and $12 million, respectively. No allowance for credit losses has been recorded on investments in debt securities which are in an unrealized loss position. For the three-month periods ended March 31, 2023 and March 31, 2022, proceeds from sales and redemptions of investments in debt securities classified as available for sale were $300 million and $115 million, respectively. Gross realized gains and losses included in earnings from those sales and redemptions were negligible. The cost of securities sold and redeemed is determined using the specific identification method. Credit Risk Financial instruments potentially exposed to concentrations of credit risk consist primarily of cash equivalents, short-term investments, long-term investments in debt securities, OTC derivative contracts and trade receivables. Our cash equivalents and short-term investments are placed in high-quality commercial paper, government money market funds, U.S. government and government agency obligations, time deposits with major international banks and financial institutions, high-quality corporate bonds, foreign government obligations and asset-backed securities. Our long-term investments in debt securities are placed in high-quality corporate bonds, asset-backed securities, U.S. government and government agency obligations, and foreign government obligations. The credit risk from our OTC derivative contracts, such as forwards, swaps and options, derives from the counterparty to the transaction. Individual counterparty exposure is managed within predetermined credit limits and includes the use of cash-call margins when appropriate, thereby reducing the risk of significant nonperformance. We also use futures, swaps and option contracts that have a negligible credit risk because these trades are cleared primarily with an exchange clearinghouse and subject to mandatory margin requirements until settled; however, we are exposed to the credit risk of those exchange brokers for receivables arising from daily margin cash calls, as well as for cash deposited to meet initial margin requirements. Our trade receivables result primarily from our oil and gas operations and reflect a broad national and international customer base, which limits our exposure to concentrations of credit risk. The majority of these receivables have payment terms of 30 days or less, and we continually monitor this exposure and the creditworthiness of the counterparties. We may require collateral to limit the exposure to loss including letters of credit, prepayments and surety bonds, as well as master netting arrangements to mitigate credit risk with counterparties that both buy from and sell to us, as these agreements permit the amounts owed by us or owed to others to be offset against amounts due to us. Certain of our derivative instruments contain provisions that require us to post collateral if the derivative exposure exceeds a threshold amount. We have contracts with fixed threshold amounts and other contracts with variable threshold amounts that are contingent on our credit rating. The variable threshold amounts typically decline for lower credit ratings, while both the variable and fixed threshold amounts typically revert to zero if we fall below investment grade. Cash is the primary collateral in all contracts; however, many also permit us to post letters of credit as collateral, such as transactions administered through the New York Mercantile Exchange. The aggregate fair value of all derivative instruments with such credit risk-related contingent features that were in a liability position at March 31, 2023 and December 31, 2022, was $166 million and $333 million, respectively. For these instruments, no collateral was posted at March 31, 2023 and $42 million of collateral was posted at December 31, 2022. If our credit rating had been downgraded below investment grade at March 31, 2023, we would have been required to post $140 million of additional collateral, either with cash or letters of credit. |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Note 10—Fair Value Measurement We carry a portion of our assets and liabilities at fair value that are measured at the reporting date using an exit price (i.e., the price that would be received to sell an asset or paid to transfer a liability) and disclosed according to the quality of valuation inputs under the fair value hierarchy. The classification of an asset or liability is based on the lowest level of input significant to its fair value. Those that are initially classified as Level 3 are subsequently reported as Level 2 when the fair value derived from unobservable inputs is inconsequential to the overall fair value, or if corroborated market data becomes available. Assets and liabilities initially reported as Level 2 are subsequently reported as Level 3 if corroborated market data is no longer available. There were no material transfers into or out of Level 3 during the three-month period ended March 31, 2023, nor during the year ended December 31, 2022. Recurring Fair Value Measurement Financial assets and liabilities reported at fair value on a recurring basis include our investments in debt securities classified as available for sale and commodity derivatives. • Level 1 derivative assets and liabilities primarily represent exchange-traded futures and options that are valued using unadjusted prices available from the underlying exchange. Level 1 also includes our investments in U.S. government obligations classified as available for sale debt securities, which are valued using exchange prices. • Level 2 derivative assets and liabilities primarily represent OTC swaps, options and forward purchase and sale contracts that are valued using adjusted exchange prices, prices provided by brokers or pricing service companies that are all corroborated by market data. Level 2 also includes our investments in debt securities classified as available for sale including investments in corporate bonds, commercial paper, asset-backed securities, U.S. government agency obligations and foreign government obligations that are valued using pricing provided by brokers or pricing service companies that are corroborated with market data. • Level 3 derivative assets and liabilities consist of OTC swaps, options and forward purchase and sale contracts where a significant portion of fair value is calculated from underlying market data that is not readily available. The derived value uses industry standard methodologies that may consider the historical relationships among various commodities, modeled market prices, time value, volatility factors and other relevant economic measures. The use of these inputs results in management’s best estimate of fair value. Level 3 activity was not material for all periods presented. The following table summarizes the fair value hierarchy for gross financial assets and liabilities (i.e., unadjusted where the right of setoff exists for commodity derivatives accounted for at fair value on a recurring basis): Millions of Dollars March 31, 2023 December 31, 2022 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Investments in debt securities $ 195 1,073 — 1,268 178 1,044 — 1,222 Commodity derivatives 640 464 114 1,218 958 951 128 2,037 Total assets $ 835 1,537 114 2,486 1,136 1,995 128 3,259 Liabilities Commodity derivatives $ 663 485 19 1,167 906 843 261 2,010 Total liabilities $ 663 485 19 1,167 906 843 261 2,010 The following table summarizes those commodity derivative balances subject to the right of setoff as presented on our consolidated balance sheet. We have elected to offset the recognized fair value amounts for multiple derivative instruments executed with the same counterparty in our financial statements when a legal right of setoff exists. Millions of Dollars Amounts Subject to Right of Setoff Gross Amounts Recognized Amounts Not Subject to Right of Setoff Gross Amounts Gross Amounts Offset Net Amounts Presented Cash Collateral Net Amounts March 31, 2023 Assets $ 1,218 30 1,188 726 462 — 462 Liabilities 1,167 24 1,143 726 417 35 382 December 31, 2022 Assets $ 2,037 39 1,998 1,176 822 37 785 Liabilities 2,010 20 1,990 1,176 814 52 762 At March 31, 2023 and December 31, 2022, we did not present any amounts gross on our consolidated balance sheet where we had the right of setoff. Reported Fair Values of Financial Instruments We used the following methods and assumptions to estimate the fair value of financial instruments: • Cash and cash equivalents and short-term investments: The carrying amount reported on the balance sheet approximates fair value. For those investments classified as available for sale debt securities, the carrying amount reported on the balance sheet is fair value. • Accounts and notes receivable (including long-term and related parties): The carrying amount reported on the balance sheet approximates fair value. • Investments in debt securities classified as available for sale: The fair value of investments in debt securities categorized as Level 1 in the fair value hierarchy is measured using exchange prices. The fair value of investments in debt securities categorized as Level 2 in the fair value hierarchy is measured using pricing provided by brokers or pricing service companies that are corroborated with market data. See Note . • Accounts payable (including related parties) and floating-rate debt: The carrying amount of accounts payable and floating-rate debt reported on the balance sheet approximates fair value. • Fixed-rate debt: The estimated fair value of fixed-rate debt is measured using prices available from a pricing service that is corroborated by market data; therefore, these liabilities are categorized as Level 2 in the fair value hierarchy. • Commercial paper: The carrying amount of our commercial paper instruments approximates fair value and is reported on the balance sheet as short-term debt. The following table summarizes the net fair value of financial instruments (i.e., adjusted where the right of setoff exists for commodity derivatives): Millions of Dollars Carrying Amount Fair Value March 31 December 31 March 31 December 31 Financial assets Commodity derivatives 492 824 492 824 Investments in debt securities 1,268 1,222 1,268 1,222 Financial liabilities Total debt, excluding finance leases 15,316 15,323 15,914 15,545 Commodity derivatives 406 782 406 782 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Note 11—Accumulated Other Comprehensive Loss Accumulated other comprehensive loss in the equity section of our consolidated balance sheet includes: Millions of Dollars Defined Benefit Plans Net Unrealized Loss on Securities Foreign Currency Translation Accumulated Other Comprehensive Loss December 31, 2022 $ (448) (11) (5,541) (6,000) Other comprehensive income (loss) 11 4 (42) (27) March 31, 2023 $ (437) (7) (5,583) (6,027) The following table summarizes reclassifications out of accumulated other comprehensive loss and into net income: Millions of Dollars Three Months Ended March 31 2023 2022 Defined benefit plans $ 11 4 The above amounts are included in the computation of net periodic benefit cost and are presented net of tax expense of $3 million and $2 million for the three-month periods ended March 31, 2023 and March 31, 2022, respectively. See Note . |
Cash Flow Information
Cash Flow Information | 3 Months Ended |
Mar. 31, 2023 | |
Supplemental Cash Flow Information [Abstract] | |
Cash Flow Information | Note 12—Cash Flow Information Millions of Dollars Three Months Ended March 31 2023 2022 Cash Payments Interest $ 209 287 Income taxes 1,062 1,640 Net Sales (Purchases) of Investments Short-term investments purchased $ (269) (521) Short-term investments sold 1,513 306 Long-term investments purchased (210) (66) Long-term investments sold 31 18 $ 1,065 (263) |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Note 13—Employee Benefit Plans Pension and Postretirement Plans Millions of Dollars Pension Benefits Other Benefits 2023 2022 2023 2022 U.S. Int'l. U.S. Int'l. Components of Net Periodic Benefit Cost Three Months Ended March 31 Service cost $ 13 10 16 13 — — Interest cost 19 28 12 21 1 1 Expected return on plan assets (15) (37) (13) (34) Amortization of prior service credit — — — — (9) (10) Recognized net actuarial loss 3 17 6 2 (1) — Settlements 4 — 4 — Net periodic benefit cost $ 24 18 25 2 (9) (9) The components of net periodic benefit cost, other than the service cost component, are included in the "Other expenses" line of our consolidated income statement. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 14—Related Party Transactions Our related parties primarily include equity method investments and certain trusts for the benefit of employees. Millions of Dollars Three Months Ended March 31 2023 2022 Significant Transactions with Equity Affiliates Operating revenues and other income $ 21 22 Operating expenses and selling, general and administrative expenses 78 46 |
Sales and Other Operating Reven
Sales and Other Operating Revenues | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Sales and Other Operating Revenues | Note 15—Sales and Other Operating Revenues Revenue from Contracts with Customers The following table provides further disaggregation of our consolidated sales and other operating revenues: Millions of Dollars Three Months Ended March 31 2023 2022 Revenue from contracts with customers $ 11,964 14,506 Revenue from contracts outside the scope of ASC Topic 606 Physical contracts meeting the definition of a derivative 3,127 3,140 Financial derivative contracts (280) 116 Consolidated sales and other operating revenues $ 14,811 17,762 Revenues from contracts outside the scope of ASC Topic 606 relate primarily to physical gas contracts at market prices, which qualify as derivatives accounted for under ASC Topic 815, “Derivatives and Hedging,” and for which we have not elected NPNS. There is no significant difference in contractual terms or the policy for recognition of revenue from these contracts and those within the scope of ASC Topic 606. The following disaggregation of revenues is provided in conjunction with Note —Segment Disclosures and Related Information: Millions of Dollars Three Months Ended March 31 2023 2022 Revenue from Contracts Outside the Scope of ASC Topic 606 by Segment Lower 48 $ 2,508 2,444 Canada 567 560 Europe, Middle East and North Africa 52 136 Physical contracts meeting the definition of a derivative $ 3,127 3,140 Millions of Dollars Three Months Ended March 31 2023 2022 Revenue from Contracts Outside the Scope of ASC Topic 606 by Product Crude oil $ 47 219 Natural gas 2,725 2,773 Other 355 148 Physical contracts meeting the definition of a derivative $ 3,127 3,140 Practical Expedients Typically, our commodity sales contracts are less than 12 months in duration; however, in certain specific cases may extend longer, which may be out to the end of field life. We have long-term commodity sales contracts which use prevailing market prices at the time of delivery, and under these contracts, the market-based variable consideration for each performance obligation (i.e., delivery of commodity) is allocated to each wholly unsatisfied performance obligation within the contract. Accordingly, we have applied the practical expedient allowed in ASC Topic 606 and do not disclose the aggregate amount of the transaction price allocated to performance obligations or when we expect to recognize revenues that are unsatisfied (or partially unsatisfied) as of the end of the reporting period. Receivables and Contract Liabilities Receivables from Contracts with Customers At March 31, 2023, the “Accounts and notes receivable” line on our consolidated balance sheet included trade receivables of $4,176 million compared with $5,241 million at December 31, 2022, and included both contracts with customers within the scope of ASC Topic 606 and those that are outside the scope of ASC Topic 606. We typically receive payment within 30 days or less (depending on the terms of the invoice) once delivery is made. Revenues that are outside the scope of ASC Topic 606 relate primarily to physical gas sales contracts at market prices for which we do not elect NPNS and are therefore accounted for as a derivative under ASC Topic 815. There is little distinction in the nature of the customer or credit quality of trade receivables associated with gas sold under contracts for which NPNS has not been elected compared to trade receivables where NPNS has been elected. Contract Liabilities from Contracts with Customers We have entered into certain agreements under which we license our proprietary technology, including the Optimized Cascade® process technology, to customers to maximize the efficiency of LNG plants. These agreements typically provide for milestone payments to be made during and after the construction phases of the LNG plant. The payments are not directly related to our performance obligations under the contract and are recorded as deferred revenue to be recognized when the customer is able to benefit from their right to use the applicable licensed technology. No revenue was recognized during the three-month period ended March 31, 2023. We expect to recognize the outstanding contract liabilities of $19 million as of March 31, 2023, as revenue during 2026. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 16—Earnings Per Share The following table presents the calculation of net income available to common shareholders and basic and diluted EPS. For the periods presented in the table below, diluted EPS calculated under the two-class method was more dilutive. Millions of Dollars Three Months Ended 2023 2022 Basic earnings per share Net Income $ 2,920 5,759 Less: Dividends and undistributed earnings allocated to participating securities 11 15 Net Income available to common shareholders $ 2,909 $5,744 Average common shares outstanding (in Millions) 1,220 1,302 Net Income Per Share of Common Stock $ 2.38 4.41 Diluted earnings per share Net Income available to common shareholders $ 2,909 5,744 Average common shares outstanding (in Millions) 1,220 1,302 Add: Dilutive impact of options and unvested non-participating RSU/PSUs (in Millions) 3 5 Average diluted shares outstanding (in Millions) 1,223 1,307 Net Income Per Share of Common Stock $ 2.38 4.39 |
Segment Disclosures and Related
Segment Disclosures and Related Information | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Disclosures and Related Information | Note 17—Segment Disclosures and Related Information We explore for, produce, transport and market crude oil, bitumen, natural gas, LNG and NGLs on a worldwide basis. We manage our operations through six operating segments, which are primarily defined by geographic region: Alaska; Lower 48; Canada; Europe, Middle East and North Africa; Asia Pacific; and Other International. Corporate and Other represents income and costs not directly associated with an operating segment, such as most interest income and expense; premiums on early retirement of debt; consolidating tax adjustments; corporate overhead and certain technology activities, including licensing revenues; and unrealized holding gains or losses on equity securities. All cash and cash equivalents and short-term investments are included in Corporate and Other. We evaluate performance and allocate resources based on net income (loss). Intersegment sales are at prices that approximate market. Analysis of Results by Operating Segment Millions of Dollars Three Months Ended March 31 2023 2022 Sales and Other Operating Revenues Alaska $ 1,735 1,918 Lower 48 10,049 11,557 Intersegment eliminations (4) (7) Lower 48 10,045 11,550 Canada 1,183 1,520 Intersegment eliminations (340) (651) Canada 843 869 Europe, Middle East and North Africa 1,702 2,589 Asia Pacific 464 750 Other International — — Corporate and Other 22 86 Consolidated sales and other operating revenues $ 14,811 17,762 Sales and Other Operating Revenues by Geographic Location (1) United States $ 11,802 13,553 Canada 843 869 China 202 273 Indonesia — 159 Libya 370 431 Malaysia 261 318 Norway 651 932 United Kingdom 681 1,226 Other foreign countries 1 1 Worldwide consolidated $ 14,811 17,762 Sales and Other Operating Revenues by Product Crude oil $ 8,904 9,870 Natural gas 4,412 5,998 Natural gas liquids 695 879 Other (2) 800 1,015 Consolidated sales and other operating revenues by product $ 14,811 17,762 (1) Sales and other operating revenues are attributable to countries based on the location of the selling operation. (2) Includes LNG and bitumen. Millions of Dollars Three Months Ended March 31 2023 2022 Net Income (Loss) Alaska $ 416 584 Lower 48 1,852 2,790 Canada 6 291 Europe, Middle East and North Africa 365 412 Asia Pacific 522 1,136 Other International 1 — Corporate and Other (242) 546 Consolidated net income $ 2,920 5,759 Millions of Dollars March 31 December 31 Total Assets Alaska $ 15,327 15,126 Lower 48 41,847 42,950 Canada 6,827 6,971 Europe, Middle East and North Africa 7,743 8,263 Asia Pacific 9,066 9,511 Other International 1 — Corporate and Other 10,630 11,008 Consolidated total assets $ 91,441 93,829 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 18—Income Taxes Our effective tax rate for the three-month periods ended March 31, 2023 and 2022 was 36.0 percent and 27.1 percent , respectively. The change in our effective tax rate for the first quarter of 2023 is primarily due to the release of tax reserves in the first quarter of 2022, as described below, and a shift in our mix of income among our tax jurisdictions. In the first quarter of 2022, the IRS closed the 2017 audit of our U.S. federal income tax return. As a result, we recognized federal and state tax benefits totaling $515 million relating to the recovery of outside tax basis previously offset by a full reserve. The Company has ongoing income tax audits in a number of jurisdictions. The government agents in charge of these audits regularly request additional time to complete audits, which we generally grant, and conversely occasionally close audits unpredictably. Within the next twelve months, we may have audit periods close that could significantly impact our total unrecognized tax benefits. The amount of such change is not estimable but could be significant when compared with our total unrecognized tax benefits. |
Basis of Presentation (Policy)
Basis of Presentation (Policy) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The interim-period financial information presented in the financial statements included in this report is unaudited and, in the opinion of management, includes all known accruals and adjustments necessary for a fair presentation of the consolidated financial position of ConocoPhillips, its results of operations and cash flows for such periods. All such adjustments are of a normal and recurring nature unless otherwise disclosed. Certain notes and other information have been condensed or omitted from the interim financial statements included in this report. Therefore, these financial statements should be read in conjunction with the consolidated financial statements and notes included in our 2022 Annual Report on Form 10-K. |
Practical Expedients | Practical Expedients Typically, our commodity sales contracts are less than 12 months in duration; however, in certain specific cases may extend longer, which may be out to the end of field life. We have long-term commodity sales contracts which use prevailing market prices at the time of delivery, and under these contracts, the market-based variable consideration for each performance obligation (i.e., delivery of commodity) is allocated to each wholly unsatisfied performance obligation within the contract. Accordingly, we have applied the practical expedient allowed in ASC Topic 606 and do not disclose the aggregate amount of the transaction price allocated to performance obligations or when we expect to recognize revenues that are unsatisfied (or partially unsatisfied) as of the end of the reporting period. |
Receivables and Contract Liabilities | Receivables and Contract Liabilities Receivables from Contracts with Customers At March 31, 2023, the “Accounts and notes receivable” line on our consolidated balance sheet included trade receivables of $4,176 million compared with $5,241 million at December 31, 2022, and included both contracts with customers within the scope of ASC Topic 606 and those that are outside the scope of ASC Topic 606. We typically receive payment within 30 days or less (depending on the terms of the invoice) once delivery is made. Revenues that are outside the scope of ASC Topic 606 relate primarily to physical gas sales contracts at market prices for which we do not elect NPNS and are therefore accounted for as a derivative under ASC Topic 815. There is little distinction in the nature of the customer or credit quality of trade receivables associated with gas sold under contracts for which NPNS has not been elected compared to trade receivables where NPNS has been elected. Contract Liabilities from Contracts with Customers |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Millions of Dollars March 31 December 31 Crude oil and natural gas $ 666 641 Materials and supplies 592 578 Total Inventories $ 1,258 1,219 Inventories valued on the LIFO basis $ 445 396 |
Changes in Equity (Tables)
Changes in Equity (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Changes in Equity | Millions of Dollars Common Stock Par Value Capital in Excess of Par Treasury Stock Accum. Other Comprehensive Income (Loss) Retained Earnings Total For the three months ended March 31, 2023 Balances at December 31, 2022 $ 21 61,142 (60,189) (6,000) 53,029 48,003 Net income 2,920 2,920 Other comprehensive loss (27) (27) Dividends declared Ordinary ($0.51 per common share) (625) (625) Variable return of cash ($0.60 per common share) (731) (731) Repurchase of company common stock (1,700) (1,700) Excise tax on share repurchases (15) (15) Distributed under benefit plans (42) (42) Other — Balances at March 31, 2023 $ 21 61,100 (61,904) (6,027) 54,593 47,783 Millions of Dollars Common Stock Par Value Capital in Excess of Par Treasury Stock Accum. Other Comprehensive Income (Loss) Retained Earnings Total For the three months ended March 31, 2022 Balances at December 31, 2021 $ 21 60,581 (50,920) (4,950) 40,674 45,406 Net income 5,759 5,759 Other comprehensive income 142 142 Dividends declared Ordinary ($0.46 per common share) (603) (603) Variable return of cash ($0.30 per common share) (390) (390) Repurchase of company common stock (1,425) (1,425) Distributed under benefit plans 326 326 Other 1 2 3 Balances at March 31, 2022 $ 21 60,907 (52,344) (4,808) 45,442 49,218 |
Derivative and Financial Inst_2
Derivative and Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Balance Sheet Location and Fair Value Amounts of Derivatives | The following table presents the gross fair values of our commodity derivatives, excluding collateral, and the line items where they appear on our consolidated balance sheet: Millions of Dollars March 31 December 31 Assets Prepaid expenses and other current assets $ 983 1,795 Other assets 235 242 Liabilities Other accruals 969 1,800 Other liabilities and deferred credits 198 210 |
Schedule of Income Statement Location and Gain (Loss) Amounts of Derivatives | The gains (losses) from commodity derivatives incurred, and the line items where they appear on our consolidated income statement were: Millions of Dollars Three Months Ended March 31 2023 2022 Sales and other operating revenues $ 28 (407) Other income 1 1 Purchased commodities (72) 401 |
Schedule of Net Exposures from Outstanding Commodity Derivative Contracts | The table below summarizes our net exposures resulting from outstanding commodity derivative contracts: Open Position March 31 December 31 Commodity Natural gas and power (billions of cubic feet equivalent) Fixed price (16) (14) Basis (39) (8) |
Schedule of Net Carrying Amount of Held to Maturity Investments | The following investments are carried on our consolidated balance sheet at cost, plus accrued interest, and the table reflects remaining maturities at March 31, 2023, and December 31, 2022: Millions of Dollars Carrying Amount Cash and Cash Equivalents Short-Term Investments March 31 December 31 March 31 December 31 Cash $ 676 593 Demand Deposits 1,174 1,638 Time Deposits 1 to 90 days 4,257 4,116 985 1,288 91 to 180 days 16 883 Within one year 91 11 U.S. Government Obligations 1 to 90 days 754 14 — — $ 6,861 6,361 1,092 2,182 |
Schedule of Debt Securities Carried at Fair Value | The following investments in debt securities classified as available for sale are carried at fair value on our consolidated balance sheet at March 31, 2023, and December 31, 2022: Millions of Dollars Carrying Amount Cash and Cash Equivalents Short-Term Investments Investments and Long-Term March 31 December 31 March 31 December 31 March 31 December 31 Major Security Type Corporate Bonds $ — — 307 323 391 309 Commercial Paper 101 97 136 156 U.S. Government Obligations 12 — 87 115 96 63 U.S. Government Agency Obligations 13 8 7 5 Foreign Government Obligations — — 7 7 Asset-backed Securities — 1 111 138 $ 113 97 543 603 612 522 The following table summarizes the amortized cost basis and fair value of investments in debt securities classified as available for sale: Millions of Dollars Amortized Cost Basis Fair Value March 31 December 31 March 31 December 31 Major Security Type Corporate Bonds $ 705 641 698 632 Commercial Paper 237 253 237 253 U.S. Government Obligations 197 181 195 178 U.S. Government Agency Obligations 20 13 20 13 Foreign Government Obligations 7 7 7 7 Asset-backed Securities 112 139 111 139 $ 1,278 1,234 1,268 1,222 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Hierarchy for Gross Financial Assets and Liabilities | The following table summarizes the fair value hierarchy for gross financial assets and liabilities (i.e., unadjusted where the right of setoff exists for commodity derivatives accounted for at fair value on a recurring basis): Millions of Dollars March 31, 2023 December 31, 2022 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Investments in debt securities $ 195 1,073 — 1,268 178 1,044 — 1,222 Commodity derivatives 640 464 114 1,218 958 951 128 2,037 Total assets $ 835 1,537 114 2,486 1,136 1,995 128 3,259 Liabilities Commodity derivatives $ 663 485 19 1,167 906 843 261 2,010 Total liabilities $ 663 485 19 1,167 906 843 261 2,010 |
Schedule of Commodity Derivative Balances Subject to Right of Setoff | The following table summarizes those commodity derivative balances subject to the right of setoff as presented on our consolidated balance sheet. We have elected to offset the recognized fair value amounts for multiple derivative instruments executed with the same counterparty in our financial statements when a legal right of setoff exists. Millions of Dollars Amounts Subject to Right of Setoff Gross Amounts Recognized Amounts Not Subject to Right of Setoff Gross Amounts Gross Amounts Offset Net Amounts Presented Cash Collateral Net Amounts March 31, 2023 Assets $ 1,218 30 1,188 726 462 — 462 Liabilities 1,167 24 1,143 726 417 35 382 December 31, 2022 Assets $ 2,037 39 1,998 1,176 822 37 785 Liabilities 2,010 20 1,990 1,176 814 52 762 |
Schedule of Net Fair Value of Financial Instruments | The following table summarizes the net fair value of financial instruments (i.e., adjusted where the right of setoff exists for commodity derivatives): Millions of Dollars Carrying Amount Fair Value March 31 December 31 March 31 December 31 Financial assets Commodity derivatives 492 824 492 824 Investments in debt securities 1,268 1,222 1,268 1,222 Financial liabilities Total debt, excluding finance leases 15,316 15,323 15,914 15,545 Commodity derivatives 406 782 406 782 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive Loss in the Equity Section of the Balance Sheet | Accumulated other comprehensive loss in the equity section of our consolidated balance sheet includes: Millions of Dollars Defined Benefit Plans Net Unrealized Loss on Securities Foreign Currency Translation Accumulated Other Comprehensive Loss December 31, 2022 $ (448) (11) (5,541) (6,000) Other comprehensive income (loss) 11 4 (42) (27) March 31, 2023 $ (437) (7) (5,583) (6,027) |
Schedule of Items Reclassified out of Accumulated Other Comprehensive Income (Loss) | The following table summarizes reclassifications out of accumulated other comprehensive loss and into net income: Millions of Dollars Three Months Ended March 31 2023 2022 Defined benefit plans $ 11 4 The above amounts are included in the computation of net periodic benefit cost and are presented net of tax expense of $3 million and $2 million for the three-month periods ended March 31, 2023 and March 31, 2022, respectively. See Note . |
Cash Flow Information (Tables)
Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow Information | Millions of Dollars Three Months Ended March 31 2023 2022 Cash Payments Interest $ 209 287 Income taxes 1,062 1,640 Net Sales (Purchases) of Investments Short-term investments purchased $ (269) (521) Short-term investments sold 1,513 306 Long-term investments purchased (210) (66) Long-term investments sold 31 18 $ 1,065 (263) |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Periodic Benefit Cost | Millions of Dollars Pension Benefits Other Benefits 2023 2022 2023 2022 U.S. Int'l. U.S. Int'l. Components of Net Periodic Benefit Cost Three Months Ended March 31 Service cost $ 13 10 16 13 — — Interest cost 19 28 12 21 1 1 Expected return on plan assets (15) (37) (13) (34) Amortization of prior service credit — — — — (9) (10) Recognized net actuarial loss 3 17 6 2 (1) — Settlements 4 — 4 — Net periodic benefit cost $ 24 18 25 2 (9) (9) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Significant Transactions with Related Parties | Millions of Dollars Three Months Ended March 31 2023 2022 Significant Transactions with Equity Affiliates Operating revenues and other income $ 21 22 Operating expenses and selling, general and administrative expenses 78 46 |
Sales and Other Operating Rev_2
Sales and Other Operating Revenues (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table provides further disaggregation of our consolidated sales and other operating revenues: Millions of Dollars Three Months Ended March 31 2023 2022 Revenue from contracts with customers $ 11,964 14,506 Revenue from contracts outside the scope of ASC Topic 606 Physical contracts meeting the definition of a derivative 3,127 3,140 Financial derivative contracts (280) 116 Consolidated sales and other operating revenues $ 14,811 17,762 Note —Segment Disclosures and Related Information: Millions of Dollars Three Months Ended March 31 2023 2022 Revenue from Contracts Outside the Scope of ASC Topic 606 by Segment Lower 48 $ 2,508 2,444 Canada 567 560 Europe, Middle East and North Africa 52 136 Physical contracts meeting the definition of a derivative $ 3,127 3,140 Millions of Dollars Three Months Ended March 31 2023 2022 Revenue from Contracts Outside the Scope of ASC Topic 606 by Product Crude oil $ 47 219 Natural gas 2,725 2,773 Other 355 148 Physical contracts meeting the definition of a derivative $ 3,127 3,140 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share, Basic and Diluted | The following table presents the calculation of net income available to common shareholders and basic and diluted EPS. For the periods presented in the table below, diluted EPS calculated under the two-class method was more dilutive. Millions of Dollars Three Months Ended 2023 2022 Basic earnings per share Net Income $ 2,920 5,759 Less: Dividends and undistributed earnings allocated to participating securities 11 15 Net Income available to common shareholders $ 2,909 $5,744 Average common shares outstanding (in Millions) 1,220 1,302 Net Income Per Share of Common Stock $ 2.38 4.41 Diluted earnings per share Net Income available to common shareholders $ 2,909 5,744 Average common shares outstanding (in Millions) 1,220 1,302 Add: Dilutive impact of options and unvested non-participating RSU/PSUs (in Millions) 3 5 Average diluted shares outstanding (in Millions) 1,223 1,307 Net Income Per Share of Common Stock $ 2.38 4.39 |
Segment Disclosures and Relat_2
Segment Disclosures and Related Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Operating Segment Reporting | Millions of Dollars Three Months Ended March 31 2023 2022 Sales and Other Operating Revenues Alaska $ 1,735 1,918 Lower 48 10,049 11,557 Intersegment eliminations (4) (7) Lower 48 10,045 11,550 Canada 1,183 1,520 Intersegment eliminations (340) (651) Canada 843 869 Europe, Middle East and North Africa 1,702 2,589 Asia Pacific 464 750 Other International — — Corporate and Other 22 86 Consolidated sales and other operating revenues $ 14,811 17,762 Sales and Other Operating Revenues by Geographic Location (1) United States $ 11,802 13,553 Canada 843 869 China 202 273 Indonesia — 159 Libya 370 431 Malaysia 261 318 Norway 651 932 United Kingdom 681 1,226 Other foreign countries 1 1 Worldwide consolidated $ 14,811 17,762 Sales and Other Operating Revenues by Product Crude oil $ 8,904 9,870 Natural gas 4,412 5,998 Natural gas liquids 695 879 Other (2) 800 1,015 Consolidated sales and other operating revenues by product $ 14,811 17,762 (1) Sales and other operating revenues are attributable to countries based on the location of the selling operation. (2) Includes LNG and bitumen. Millions of Dollars Three Months Ended March 31 2023 2022 Net Income (Loss) Alaska $ 416 584 Lower 48 1,852 2,790 Canada 6 291 Europe, Middle East and North Africa 365 412 Asia Pacific 522 1,136 Other International 1 — Corporate and Other (242) 546 Consolidated net income $ 2,920 5,759 Millions of Dollars March 31 December 31 Total Assets Alaska $ 15,327 15,126 Lower 48 41,847 42,950 Canada 6,827 6,971 Europe, Middle East and North Africa 7,743 8,263 Asia Pacific 9,066 9,511 Other International 1 — Corporate and Other 10,630 11,008 Consolidated total assets $ 91,441 93,829 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Crude oil and natural gas | $ 666 | $ 641 |
Materials and supplies | 592 | 578 |
Total Inventories | 1,258 | 1,219 |
Inventories valued on the LIFO basis | $ 445 | $ 396 |
Investments and Long-Term Rec_2
Investments and Long-Term Receivables - Narrative (Details) - USD ($) $ in Billions | Mar. 31, 2023 | Dec. 31, 2017 |
APLNG | ||
Schedule of Equity Method Investments [Line Items] | ||
Project finance facility, maximum borrowing capacity | $ 8.5 | |
Line of credit facility value outstanding | $ 4.9 | |
Equity method investment | $ 5.8 | |
Equity method investment, ownership percentage | 47.50% | |
PALNG | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment | $ 0.4 | |
Equity method investment, ownership percentage | 30% | |
PALNG | Sempra | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 70% |
Investment in Cenovus Energy -
Investment in Cenovus Energy - Narrative (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Debt and Equity Securities, FV-NI [Line Items] | ||
Gain on investment in Cenovus Energy | $ 0 | $ 251 |
Cenovus Energy Inc | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Gain on investment in Cenovus Energy | $ 251 | |
Common Stock | Cenovus Energy Inc | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity securities, shares sold (in shares) | 91 | |
Proceeds received from sale of equity securities | $ 1,400 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Total debt | $ 16,600 | $ 16,600 |
Variable Rate Debt Bonds | ||
Debt Instrument [Line Items] | ||
Debt at face value | 283 | |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Project finance facility, maximum borrowing capacity | 5,500 | |
Minimum limit of debt for cross default provision | 200 | |
Letter of Credit | Maximum | ||
Debt Instrument [Line Items] | ||
Line of credit facility, capacity available for specific purpose other than for trade purchases | $ 500 |
Changes in Equity (Details)
Changes in Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | $ 48,003 | $ 45,406 |
Net Income | 2,920 | 5,759 |
Other comprehensive income (loss) | (27) | 142 |
Dividends declared, ordinary | (625) | (603) |
Dividends declared, variable return of cash | (731) | (390) |
Repurchase of company common stock | (1,700) | (1,425) |
Excise tax on share repurchases | (15) | |
Distributed under benefit plans | (42) | 326 |
Other | 0 | 3 |
Ending Balance | $ 47,783 | $ 49,218 |
Dividends declared, ordinary (in dollars per share) | $ 0.51 | $ 0.46 |
Dividends declared, variable return of cash (in dollars per share) | $ 0.60 | $ 0.30 |
Par Value | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | $ 21 | $ 21 |
Ending Balance | 21 | 21 |
Capital in Excess of Par | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | 61,142 | 60,581 |
Distributed under benefit plans | (42) | 326 |
Ending Balance | 61,100 | 60,907 |
Treasury Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | (60,189) | (50,920) |
Repurchase of company common stock | (1,700) | (1,425) |
Excise tax on share repurchases | (15) | |
Other | 1 | |
Ending Balance | (61,904) | (52,344) |
Accum. Other Comprehensive Income (Loss) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | (6,000) | (4,950) |
Other comprehensive income (loss) | (27) | 142 |
Ending Balance | (6,027) | (4,808) |
Retained Earnings | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | 53,029 | 40,674 |
Net Income | 2,920 | 5,759 |
Dividends declared, ordinary | (625) | (603) |
Dividends declared, variable return of cash | (731) | (390) |
Other | 2 | |
Ending Balance | $ 54,593 | $ 45,442 |
Guarantees - Narrative (Details
Guarantees - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
APLNG | |
Guarantor Obligations [Line Items] | |
Ownership percentage in equity investment | 47.50% |
Finance Reserve Guarantee | APLNG | |
Guarantor Obligations [Line Items] | |
Guarantor obligations, remaining term | 8 years |
Maximum potential amount of future payments | $ 210 |
Guarantor obligations, current carrying value | 14 |
Max Potential Future Payments Reckless Breach | APLNG | |
Guarantor Obligations [Line Items] | |
Maximum potential amount of future payments | 1,300 |
Max Potential Future Payments Pro-rata Share | APLNG | |
Guarantor Obligations [Line Items] | |
Maximum potential amount of future payments | 760 |
Continued Development | APLNG | |
Guarantor Obligations [Line Items] | |
Maximum potential amount of future payments | 390 |
Guarantor obligations, current carrying value | $ 29 |
Continued Development | APLNG | Minimum | |
Guarantor Obligations [Line Items] | |
Guarantor obligations, term | 14 years |
Continued Development | APLNG | Maximum | |
Guarantor Obligations [Line Items] | |
Guarantor obligations, term | 23 years |
Other Guarantees | |
Guarantor Obligations [Line Items] | |
Maximum potential amount of future payments | $ 600 |
Guarantor obligations, current carrying value | $ 0 |
Other Guarantees | Minimum | |
Guarantor Obligations [Line Items] | |
Guarantor obligations, term | 2 years |
Other Guarantees | Maximum | |
Guarantor Obligations [Line Items] | |
Guarantor obligations, term | 4 years |
Joint Venture Obligation Guarantee | Qatar Liquefied Gas Company Limited Eight | |
Guarantor Obligations [Line Items] | |
Guarantor obligations, current carrying value | $ 7 |
Guarantor Obligations, Term | 30 years |
Indemnifications | |
Guarantor Obligations [Line Items] | |
Guarantor obligations, current carrying value | $ 20 |
Contingencies and Commitments -
Contingencies and Commitments - Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
May 10, 2021 USD ($) | Aug. 02, 2019 USD ($) | Mar. 31, 2019 USD ($) | Aug. 31, 2018 USD ($) | Apr. 30, 2018 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2017 lawsuit | Dec. 31, 2022 USD ($) | Aug. 29, 2019 USD ($) | |
Loss Contingencies [Line Items] | |||||||||
Total environmental accrual included in balance sheet | $ 182 | $ 182 | |||||||
Performance obligations secured by letters of credit | 329 | ||||||||
Long-term unconditional purchase obligations and commitments, year one | 7 | ||||||||
Long-term unconditional purchase obligations and commitments, year two | 7 | ||||||||
Long-term unconditional purchase obligations and commitments, year three | 7 | ||||||||
Long-term unconditional purchase obligations and commitments, year four | 7 | ||||||||
Long-term unconditional purchase obligations and commitments, year five | 7 | ||||||||
Long-term unconditional purchase obligations and commitments, after year five | $ 11,000 | ||||||||
Several Louisiana Parishes and the State of Louisiana Against Oil and Gas Companies | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss contingency, new claims filed, number | lawsuit | 43 | ||||||||
Several Louisiana Parishes and the State of Louisiana Against Oil and Gas Companies | ConocoPhillips Entities | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss contingency, new claims filed, number | lawsuit | 22 | ||||||||
Outer Continental Shelf Lease | Phillips Petroleum Company | |||||||||
Loss Contingencies [Line Items] | |||||||||
Ownership percentage in equity investment | 25% | ||||||||
Sale of interest, duration | 30 years | ||||||||
ConocoPhillips v Santos KOTN Pty Ltd and Santos Limited re Barossa Development Project | Performance Guarantee | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss contingency, damages sought, value | $ 200 | ||||||||
Venezuela | ConocoPhillips Versus Petroleos de Venezuela ICISD | |||||||||
Loss Contingencies [Line Items] | |||||||||
Litigation settlement, amount awarded from other party | $ 8,700 | ||||||||
Litigation award reduction | $ 227 | ||||||||
Litigation settlement amount awarded from other party revised | $ 8,500 | ||||||||
Venezuela | ConocoPhillips vs Petroleos De Venezuela ICC | |||||||||
Loss Contingencies [Line Items] | |||||||||
Litigation settlement, amount awarded from other party | $ 33 | $ 500 | $ 2,000 | ||||||
Proceeds from legal settlements | $ 775 | ||||||||
US and Canada | Cleanup Remediation Activities | |||||||||
Loss Contingencies [Line Items] | |||||||||
Environmental loss contingencies, term | 30 years |
Derivative and Financial Inst_3
Derivative and Financial Instruments - Schedule of Balance Sheet Location and Fair Value Amounts of Derivatives (Details) - Commodity Contract - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Commodity derivative assets | $ 983 | $ 1,795 |
Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Commodity derivative assets | 235 | 242 |
Other accruals | ||
Derivatives, Fair Value [Line Items] | ||
Commodity derivative liabilities | 969 | 1,800 |
Other liabilities and deferred credits | ||
Derivatives, Fair Value [Line Items] | ||
Commodity derivative liabilities | $ 198 | $ 210 |
Derivative and Financial Inst_4
Derivative and Financial Instruments - Schedule of Income Statement Location and Gain (Loss) Amounts of Derivatives (Details) - Commodity Contract - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Sales and other operating revenues | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) from commodity derivatives | $ 28 | $ (407) |
Other income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) from commodity derivatives | 1 | 1 |
Purchased commodities | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) from commodity derivatives | $ (72) | $ 401 |
Derivative and Financial Inst_5
Derivative and Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Derivative [Line Items] | |||
Debt securities, available-for-sale, unrealized loss | $ 11 | $ 12 | |
Debt securities, available-for-sale, allowance for credit loss | 0 | 0 | |
Proceeds from sales and redemptions of investments in debt securities classified as available for sale | 300 | $ 115 | |
Derivative, net liability position, aggregate fair value | 166 | 333 | |
Collateral already posted, aggregate fair value | 0 | $ 42 | |
In event of downgrade below investment grade | |||
Derivative [Line Items] | |||
Additional collateral, aggregate fair value | $ 140 | ||
Minimum | |||
Derivative [Line Items] | |||
Investments and long-term receivables, remaining maturity | 1 year | ||
Maximum | |||
Derivative [Line Items] | |||
Investments and long-term receivables, remaining maturity | 5 years | ||
Accounts Receivable | Maximum | |||
Derivative [Line Items] | |||
Credit derivative, term | 30 days |
Derivative and Financial Inst_6
Derivative and Financial Instruments - Schedule of Net Exposures from Outstanding Commodity Derivative Contracts (Details) - Short - Commodity Contract - Bcf | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Natural Gas and Power, Fixed Price | ||
Trading Activity, Gains and Losses, Net [Line Items] | ||
Commodity derivatives - volumetric material net exposures | 16 | 14 |
Natural Gas and Power, Basis | ||
Trading Activity, Gains and Losses, Net [Line Items] | ||
Commodity derivatives - volumetric material net exposures | 39 | 8 |
Derivative and Financial Inst_7
Derivative and Financial Instruments - Schedule of Net Carrying Amount of Held to Maturity Investments (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Cash and cash equivalents, carried at cost plus accrued interest | $ 6,861 | $ 6,361 |
Short-term investments, carried at cost plus accrued interest | 1,092 | 2,182 |
Cash | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Cash and cash equivalents, carried at cost plus accrued interest | 676 | 593 |
Demand Deposits | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Cash and cash equivalents, carried at cost plus accrued interest | 1,174 | 1,638 |
Time Deposits | 1 to 90 days | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Cash and cash equivalents, carried at cost plus accrued interest | 4,257 | 4,116 |
Short-term investments, carried at cost plus accrued interest | 985 | 1,288 |
Time Deposits | 91 to 180 days | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Short-term investments, carried at cost plus accrued interest | 16 | 883 |
Time Deposits | Within one year | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Short-term investments, carried at cost plus accrued interest | 91 | 11 |
U.S. Government Obligations | 1 to 90 days | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Cash and cash equivalents, carried at cost plus accrued interest | 754 | 14 |
Short-term investments, carried at cost plus accrued interest | $ 0 | $ 0 |
Derivative and Financial Inst_8
Derivative and Financial Instruments - Schedule of Debt Securities Carried at Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Cash and Cash Equivalents | $ 6,974 | $ 6,458 |
Short-Term Investments | 1,635 | 2,785 |
Investments and Long-Term Receivables | 8,197 | 8,225 |
Within one year | Reported Value Measurement | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cash and Cash Equivalents | 113 | 97 |
Short-Term Investments | 543 | 603 |
Within one year | Reported Value Measurement | Corporate Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cash and Cash Equivalents | 0 | 0 |
Short-Term Investments | 307 | 323 |
Within one year | Reported Value Measurement | Commercial Paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cash and Cash Equivalents | 101 | 97 |
Short-Term Investments | 136 | 156 |
Within one year | Reported Value Measurement | U.S. Government Obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cash and Cash Equivalents | 12 | 0 |
Short-Term Investments | 87 | 115 |
Within one year | Reported Value Measurement | U.S. Government Agency Obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Short-Term Investments | 13 | 8 |
Within one year | Reported Value Measurement | Foreign Government Obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Short-Term Investments | 0 | 0 |
Within one year | Reported Value Measurement | Asset-backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Short-Term Investments | 0 | 1 |
Investments and Long-Term Receivables | Reported Value Measurement | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments and Long-Term Receivables | 612 | 522 |
Investments and Long-Term Receivables | Reported Value Measurement | Corporate Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments and Long-Term Receivables | 391 | 309 |
Investments and Long-Term Receivables | Reported Value Measurement | U.S. Government Obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments and Long-Term Receivables | 96 | 63 |
Investments and Long-Term Receivables | Reported Value Measurement | U.S. Government Agency Obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments and Long-Term Receivables | 7 | 5 |
Investments and Long-Term Receivables | Reported Value Measurement | Foreign Government Obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments and Long-Term Receivables | 7 | 7 |
Investments and Long-Term Receivables | Reported Value Measurement | Asset-backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Investments and Long-Term Receivables | $ 111 | $ 138 |
Derivative and Financial Inst_9
Derivative and Financial Instruments - Schedule of Amortized Cost Basis and Fair Value of Investments in Debt Securities Classified as Available for Sale (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | $ 1,278 | $ 1,234 |
Fair Value | 1,268 | 1,222 |
Corporate Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | 705 | 641 |
Fair Value | 698 | 632 |
Commercial Paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | 237 | 253 |
Fair Value | 237 | 253 |
U.S. Government Obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | 197 | 181 |
Fair Value | 195 | 178 |
U.S. Government Agency Obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | 20 | 13 |
Fair Value | 20 | 13 |
Foreign Government Obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | 7 | 7 |
Fair Value | 7 | 7 |
Asset-backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | 112 | 139 |
Fair Value | $ 111 | $ 139 |
Fair Value Measurement - Schedu
Fair Value Measurement - Schedule of Fair Value Hierarchy for Gross Financial Assets and Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodity derivatives | $ 1,218 | $ 2,037 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in debt securities | 1,268 | 1,222 |
Commodity derivatives | 1,218 | 2,037 |
Total assets | 2,486 | 3,259 |
Commodity derivatives | 1,167 | 2,010 |
Total liabilities | 1,167 | 2,010 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in debt securities | 195 | 178 |
Commodity derivatives | 640 | 958 |
Total assets | 835 | 1,136 |
Commodity derivatives | 663 | 906 |
Total liabilities | 663 | 906 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in debt securities | 1,073 | 1,044 |
Commodity derivatives | 464 | 951 |
Total assets | 1,537 | 1,995 |
Commodity derivatives | 485 | 843 |
Total liabilities | 485 | 843 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in debt securities | 0 | 0 |
Commodity derivatives | 114 | 128 |
Total assets | 114 | 128 |
Commodity derivatives | 19 | 261 |
Total liabilities | $ 19 | $ 261 |
Fair Value Measurement - Sche_2
Fair Value Measurement - Schedule of Commodity Derivative Balances Subject to Right of Setoff (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Offsetting Derivative Assets [Abstract] | ||
Assets - gross amounts recognized | $ 1,218 | $ 2,037 |
Assets - amounts without right of setoff | 30 | 39 |
Assets - gross amounts | 1,188 | 1,998 |
Assets - gross amounts offset | 726 | 1,176 |
Assets - net amounts presented | 462 | 822 |
Assets - cash collateral | 0 | 37 |
Assets - net amounts | 462 | 785 |
Offsetting Derivative Liabilities [Abstract] | ||
Liabilities - gross amounts recognized | 1,167 | 2,010 |
Liabilities - amounts without right of setoff | 24 | 20 |
Liabilities - gross amounts recognized | 1,143 | 1,990 |
Liabilities - gross amounts offset | 726 | 1,176 |
Liabilities - net amounts presented | 417 | 814 |
Liabilities - cash collateral | 35 | 52 |
Liabilities - net amounts | $ 382 | $ 762 |
Fair Value Measurement - Sche_3
Fair Value Measurement - Schedule of Net Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Carrying Amount | ||
Financial Assets [Abstract] | ||
Investments in debt securities | $ 1,268 | $ 1,222 |
Financial Liabilities [Abstract] | ||
Total debt, excluding finance leases | 15,316 | 15,323 |
Carrying Amount | Commodity Contract | ||
Financial Assets [Abstract] | ||
Commodity derivatives | 492 | 824 |
Financial Liabilities [Abstract] | ||
Commodity derivatives | 406 | 782 |
Estimate of Fair Value Measurement | ||
Financial Assets [Abstract] | ||
Investments in debt securities | 1,268 | 1,222 |
Financial Liabilities [Abstract] | ||
Total debt, excluding finance leases | 15,914 | 15,545 |
Estimate of Fair Value Measurement | Commodity Contract | ||
Financial Assets [Abstract] | ||
Commodity derivatives | 492 | 824 |
Financial Liabilities [Abstract] | ||
Commodity derivatives | $ 406 | $ 782 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Components of Accumulated Other Comprehensive Loss in the Equity Section of the Balance Sheet (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ (6,000) | |
Other comprehensive income (loss) | (27) | $ 142 |
Ending balance | (6,027) | |
Defined Benefit Plans | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (448) | |
Other comprehensive income (loss) | 11 | |
Ending balance | (437) | |
Net Unrealized Loss on Securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (11) | |
Other comprehensive income (loss) | 4 | |
Ending balance | (7) | |
Foreign Currency Translation | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (5,541) | |
Other comprehensive income (loss) | (42) | |
Ending balance | $ (5,583) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Schedule of Items Reclassified out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Defined benefit plans | $ 11 | $ 4 |
Tax expense of defined benefit plans | $ 3 | $ 2 |
Cash Flow Information - Schedul
Cash Flow Information - Schedule of Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash Payments | ||
Interest | $ 209 | $ 287 |
Income taxes | 1,062 | 1,640 |
Net Sales (Purchases) of Investments | ||
Short-term investments purchased | (269) | (521) |
Short-term investments sold | 1,513 | 306 |
Long-term investments purchased | (210) | (66) |
Long-term investments sold | 31 | 18 |
Net (purchase) sale of investments | $ 1,065 | $ (263) |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Other Benefits | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Service cost | $ 0 | $ 0 |
Interest cost | 1 | 1 |
Expected return on plan assets | ||
Amortization of prior service credit | (9) | (10) |
Recognized net actuarial loss | (1) | 0 |
Settlements | ||
Net periodic benefit cost | (9) | (9) |
United States | Pension Benefits | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Service cost | 13 | 16 |
Interest cost | 19 | 12 |
Expected return on plan assets | (15) | (13) |
Amortization of prior service credit | 0 | 0 |
Recognized net actuarial loss | 3 | 6 |
Settlements | 4 | 4 |
Net periodic benefit cost | 24 | 25 |
Int'l. | Pension Benefits | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Service cost | 10 | 13 |
Interest cost | 28 | 21 |
Expected return on plan assets | (37) | (34) |
Amortization of prior service credit | 0 | 0 |
Recognized net actuarial loss | 17 | 2 |
Settlements | 0 | 0 |
Net periodic benefit cost | $ 18 | $ 2 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Significant Transactions with Related Parties (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Significant Transactions with Equity Affiliates | ||
Operating revenues and other income | $ 21 | $ 22 |
Operating expenses and selling, general and administrative expenses | $ 78 | $ 46 |
Sales and Other Operating Rev_3
Sales and Other Operating Revenues - Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue from contract | $ 11,964 | $ 14,506 |
Consolidated sales and other operating revenues | 14,811 | 17,762 |
Physical contracts meeting the definition of a derivative | ||
Revenue from contracts outside the scope of ASC Topic 606 | 3,127 | 3,140 |
Crude oil | ||
Revenue from contracts outside the scope of ASC Topic 606 | 47 | 219 |
Natural gas | ||
Revenue from contracts outside the scope of ASC Topic 606 | 2,725 | 2,773 |
Other | ||
Revenue from contracts outside the scope of ASC Topic 606 | 355 | 148 |
Financial derivative contracts | ||
Revenue from contracts outside the scope of ASC Topic 606 | (280) | 116 |
Lower 48 | Physical contracts meeting the definition of a derivative | ||
Revenue from contracts outside the scope of ASC Topic 606 | 2,508 | 2,444 |
Canada | Physical contracts meeting the definition of a derivative | ||
Revenue from contracts outside the scope of ASC Topic 606 | 567 | 560 |
Europe, Middle East and North Africa | Physical contracts meeting the definition of a derivative | ||
Revenue from contracts outside the scope of ASC Topic 606 | $ 52 | $ 136 |
Sales and Other Operating Rev_4
Sales and Other Operating Revenues - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, after allowance for credit loss | $ 4,176 | $ 5,241 |
Revenue recognized | 0 | |
Contract with customer, liability | $ 19 |
Earnings Per Share - Earnings P
Earnings Per Share - Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Basic earnings per share | ||
Net Income | $ 2,920 | $ 5,759 |
Less: Dividends and undistributed earnings allocated to participating securities | 11 | 15 |
Net Income available to common shareholders | $ 2,909 | $ 5,744 |
Average common shares outstanding (in shares) | 1,220,228 | 1,301,930 |
Net Income Per Share of Common Stock, Basic (in dollars per share) | $ 2.38 | $ 4.41 |
Diluted earnings per share | ||
Net Income available to common shareholders | $ 2,909 | $ 5,744 |
Add: Dilutive impact of options and unvested non-participating RSU/PSUs | 3,000 | 5,000 |
Average diluted shares outstanding (in shares) | 1,223,355 | 1,307,404 |
Net Income Per Share of Common Stock, Diluted (in dollars per share) | $ 2.38 | $ 4.39 |
Segment Disclosures and Relat_3
Segment Disclosures and Related Information - Narrative (Details) | 3 Months Ended |
Mar. 31, 2023 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 6 |
Segment Disclosures and Relat_4
Segment Disclosures and Related Information - Sales (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Consolidated sales and other operating revenues | $ 14,811 | $ 17,762 |
Lower 48 | ||
Segment Reporting Information [Line Items] | ||
Consolidated sales and other operating revenues | 10,049 | 11,557 |
Canada | ||
Segment Reporting Information [Line Items] | ||
Consolidated sales and other operating revenues | 1,183 | 1,520 |
Intersegment eliminations | Lower 48 | ||
Segment Reporting Information [Line Items] | ||
Consolidated sales and other operating revenues | (4) | (7) |
Intersegment eliminations | Canada | ||
Segment Reporting Information [Line Items] | ||
Consolidated sales and other operating revenues | (340) | (651) |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Consolidated sales and other operating revenues | 14,811 | 17,762 |
Operating Segments | Alaska | ||
Segment Reporting Information [Line Items] | ||
Consolidated sales and other operating revenues | 1,735 | 1,918 |
Operating Segments | Lower 48 | ||
Segment Reporting Information [Line Items] | ||
Consolidated sales and other operating revenues | 10,045 | 11,550 |
Operating Segments | Canada | ||
Segment Reporting Information [Line Items] | ||
Consolidated sales and other operating revenues | 843 | 869 |
Operating Segments | Europe, Middle East and North Africa | ||
Segment Reporting Information [Line Items] | ||
Consolidated sales and other operating revenues | 1,702 | 2,589 |
Operating Segments | Asia Pacific | ||
Segment Reporting Information [Line Items] | ||
Consolidated sales and other operating revenues | 464 | 750 |
Operating Segments | Other International | ||
Segment Reporting Information [Line Items] | ||
Consolidated sales and other operating revenues | 0 | 0 |
Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Consolidated sales and other operating revenues | 22 | 86 |
United States | ||
Segment Reporting Information [Line Items] | ||
Consolidated sales and other operating revenues | 11,802 | 13,553 |
Canada | ||
Segment Reporting Information [Line Items] | ||
Consolidated sales and other operating revenues | 843 | 869 |
China | ||
Segment Reporting Information [Line Items] | ||
Consolidated sales and other operating revenues | 202 | 273 |
Indonesia | ||
Segment Reporting Information [Line Items] | ||
Consolidated sales and other operating revenues | 0 | 159 |
Libya | ||
Segment Reporting Information [Line Items] | ||
Consolidated sales and other operating revenues | 370 | 431 |
Malaysia | ||
Segment Reporting Information [Line Items] | ||
Consolidated sales and other operating revenues | 261 | 318 |
Norway | ||
Segment Reporting Information [Line Items] | ||
Consolidated sales and other operating revenues | 651 | 932 |
United Kingdom | ||
Segment Reporting Information [Line Items] | ||
Consolidated sales and other operating revenues | 681 | 1,226 |
Other foreign countries | ||
Segment Reporting Information [Line Items] | ||
Consolidated sales and other operating revenues | 1 | 1 |
Natural gas | ||
Segment Reporting Information [Line Items] | ||
Consolidated sales and other operating revenues | 4,412 | 5,998 |
Natural gas liquids | ||
Segment Reporting Information [Line Items] | ||
Consolidated sales and other operating revenues | 695 | 879 |
Crude oil | ||
Segment Reporting Information [Line Items] | ||
Consolidated sales and other operating revenues | 8,904 | 9,870 |
Other | ||
Segment Reporting Information [Line Items] | ||
Consolidated sales and other operating revenues | $ 800 | $ 1,015 |
Segment Disclosures and Relat_5
Segment Disclosures and Related Information - Net Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Net Income (Loss) Attributable to Parent [Abstract] | ||
Consolidated net income | $ 2,920 | $ 5,759 |
Operating Segments | Alaska | ||
Net Income (Loss) Attributable to Parent [Abstract] | ||
Consolidated net income | 416 | 584 |
Operating Segments | Lower 48 | ||
Net Income (Loss) Attributable to Parent [Abstract] | ||
Consolidated net income | 1,852 | 2,790 |
Operating Segments | Canada | ||
Net Income (Loss) Attributable to Parent [Abstract] | ||
Consolidated net income | 6 | 291 |
Operating Segments | Europe, Middle East and North Africa | ||
Net Income (Loss) Attributable to Parent [Abstract] | ||
Consolidated net income | 365 | 412 |
Operating Segments | Asia Pacific | ||
Net Income (Loss) Attributable to Parent [Abstract] | ||
Consolidated net income | 522 | 1,136 |
Operating Segments | Other International | ||
Net Income (Loss) Attributable to Parent [Abstract] | ||
Consolidated net income | 1 | 0 |
Corporate and Other | ||
Net Income (Loss) Attributable to Parent [Abstract] | ||
Consolidated net income | $ (242) | $ 546 |
Segment Disclosures and Relat_6
Segment Disclosures and Related Information - Assets (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Total Assets | ||
Consolidated total assets | $ 91,441 | $ 93,829 |
Corporate and Other | ||
Total Assets | ||
Consolidated total assets | 10,630 | 11,008 |
Alaska | Operating Segments | ||
Total Assets | ||
Consolidated total assets | 15,327 | 15,126 |
Lower 48 | Operating Segments | ||
Total Assets | ||
Consolidated total assets | 41,847 | 42,950 |
Canada | Operating Segments | ||
Total Assets | ||
Consolidated total assets | 6,827 | 6,971 |
Europe, Middle East and North Africa | Operating Segments | ||
Total Assets | ||
Consolidated total assets | 7,743 | 8,263 |
Asia Pacific | Operating Segments | ||
Total Assets | ||
Consolidated total assets | 9,066 | 9,511 |
Other International | Operating Segments | ||
Total Assets | ||
Consolidated total assets | $ 1 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 36% | 27.10% |
Recognized federal and state tax benefit | $ 515 |