Cover
Cover | 3 Months Ended |
Mar. 31, 2023 shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2023 |
Document Transition Report | false |
Entity File Number | 001-36478 |
Entity Registrant Name | California Resources Corp |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 46-5670947 |
Entity Address, Address Line One | 1 World Trade Center, Suite 1500 |
Entity Address, City or Town | Long Beach |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 90831 |
City Area Code | 888 |
Local Phone Number | 848-4754 |
Title of 12(b) Security | Common Stock |
Trading Symbol | CRC |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Bankruptcy Proceedings, Reporting Current | true |
Entity Common Stock, Shares Outstanding | 70,549,158 |
Entity Central Index Key | 0001609253 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 477 | $ 307 |
Trade receivables | 249 | 326 |
Inventories | 64 | 60 |
Assets held for sale | 13 | 5 |
Receivable from affiliate | 30 | 33 |
Other current assets, net | 139 | 133 |
Total current assets | 972 | 864 |
PROPERTY, PLANT AND EQUIPMENT | 3,266 | 3,228 |
Accumulated depreciation, depletion and amortization | (502) | (442) |
Total property, plant and equipment, net | 2,764 | 2,786 |
INVESTMENT IN UNCONSOLIDATED SUBSIDIARY | 14 | 13 |
DEFERRED TAX ASSET | 117 | 164 |
OTHER NONCURRENT ASSETS | 133 | 140 |
TOTAL ASSETS | 4,000 | 3,967 |
CURRENT LIABILITIES | ||
Accounts payable | 260 | 345 |
Liabilities associated with assets held for sale | 5 | 5 |
Fair value of derivative contracts | 154 | 246 |
Accrued liabilities | 298 | 298 |
Total current liabilities | 717 | 894 |
NONCURRENT LIABILITIES | ||
Long-term debt, net | 592 | 592 |
Asset retirement obligations | 424 | 432 |
Other long-term liabilities | 175 | 185 |
STOCKHOLDERS' EQUITY | ||
Preferred stock (20,000,000 shares authorized at $0.01 par value) no shares outstanding at March 31, 2023 and December 31, 2022 | 0 | 0 |
Common stock (200,000,000 shares authorized at $0.01 par value) (83,429,182 and 83,406,002 shares issued; 70,549,158 and 71,949,742 shares outstanding at March 31, 2023 and December 31, 2022) | 1 | 1 |
Treasury stock (12,880,024 shares held at cost at March 31, 2023 and 11,456,260 shares held at cost at December 31, 2022) | (520) | (461) |
Additional paid-in capital | 1,311 | 1,305 |
Retained earnings | 1,219 | 938 |
Accumulated other comprehensive income | 81 | 81 |
Total stockholders' equity | 2,092 | 1,864 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 4,000 | $ 3,967 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, authorized shares (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, outstanding shares (in shares) | 0 | 0 |
Common stock, authorized shares (in shares) | 200,000,000 | 200,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, issued shares (in shares) | 83,429,182 | 83,406,002 |
Common stock, outstanding shares (in shares) | 70,549,158 | 71,949,742 |
Treasury stock (in shares) | 12,880,024 | 11,456,260 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
REVENUES | ||
Oil, natural gas and NGL sales | $ 715 | $ 628 |
Net gain (loss) from commodity derivatives | 42 | (562) |
Total operating revenues | 1,024 | 153 |
OPERATING EXPENSES | ||
Operating costs | 254 | 182 |
General and administrative expenses | 65 | 48 |
Depreciation, depletion and amortization | 58 | 49 |
Asset impairment | 3 | 0 |
Taxes other than on income | 42 | 34 |
Exploration expense | 1 | 1 |
Accretion expense | 12 | 11 |
Other operating expenses, net | 13 | 14 |
Total operating expenses | 638 | 396 |
Net gain on asset divestitures | 7 | 54 |
OPERATING INCOME (LOSS) | 393 | (189) |
NON-OPERATING (EXPENSES) INCOME | ||
Interest and debt expense | (14) | (13) |
Loss from investment in unconsolidated subsidiary | (2) | 0 |
Other non-operating (expense) income | (1) | 1 |
INCOME (LOSS) BEFORE INCOME TAXES | 376 | (201) |
Income tax (provision) benefit | (75) | 26 |
NET INCOME (LOSS) | $ 301 | $ (175) |
Net income (loss) per share | ||
Basic (in dollars per share) | $ 4.22 | $ (2.23) |
Diluted (in dollars per share) | $ 4.09 | $ (2.23) |
Weighted-average common shares outstanding | ||
Basic (in shares) | 71.3 | 78.5 |
Diluted (in shares) | 73.5 | 78.5 |
Sales of purchased natural gas | ||
REVENUES | ||
Revenue not from contract with customer | $ 184 | $ 32 |
OPERATING EXPENSES | ||
Costs of sales | 124 | 21 |
Electricity sales | ||
REVENUES | ||
Revenue not from contract with customer | 68 | 34 |
Other revenue | ||
REVENUES | ||
Revenue not from contract with customer | 15 | 21 |
Electricity generation expenses | ||
OPERATING EXPENSES | ||
Costs of sales | 49 | 24 |
Transportation costs | ||
OPERATING EXPENSES | ||
Costs of sales | $ 17 | $ 12 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income |
Beginning balance at Dec. 31, 2021 | $ 1,688 | $ 1 | $ (148) | $ 1,288 | $ 475 | $ 72 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (175) | (175) | ||||
Share-based compensation | 5 | 5 | ||||
Repurchases of common stock | (71) | (71) | ||||
Cash dividend | (14) | (14) | ||||
Ending balance at Mar. 31, 2022 | 1,433 | 1 | (219) | 1,293 | 286 | 72 |
Beginning balance at Dec. 31, 2022 | 1,864 | 1 | (461) | 1,305 | 938 | 81 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | 301 | 301 | ||||
Share-based compensation | 7 | 7 | ||||
Repurchases of common stock | (59) | (59) | ||||
Cash dividend | (20) | (20) | ||||
Shares cancelled for taxes | (1) | (1) | ||||
Ending balance at Mar. 31, 2023 | $ 2,092 | $ 1 | $ (520) | $ 1,311 | $ 1,219 | $ 81 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | ||
Feb. 23, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared, common stock (in dollars per share) | $ 0.2825 | $ 0.2825 | $ 0.17 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
CASH FLOW FROM OPERATING ACTIVITIES | ||
Net income (loss) | $ 301 | $ (175) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 58 | 49 |
Deferred income tax provision (benefit) | 47 | (33) |
Asset impairment | 3 | 0 |
Net (gain) loss from commodity derivatives | (42) | 562 |
Net payments on settled commodity derivatives | (65) | (181) |
Net gain on asset divestitures | (7) | (54) |
Other non-cash charges to income, net | 21 | 8 |
Changes in operating assets and liabilities, net | (6) | (16) |
Net cash provided by operating activities | 310 | 160 |
CASH FLOW FROM INVESTING ACTIVITIES | ||
Capital investments | (47) | (99) |
Changes in accrued capital investments | (13) | 3 |
Proceeds from asset divestitures, net | 0 | 60 |
Acquisitions | 0 | (17) |
Other | (1) | 0 |
Net cash used in investing activities | (61) | (53) |
CASH FLOW FROM FINANCING ACTIVITIES | ||
Repurchases of common stock | (59) | (71) |
Common stock dividends | (20) | (13) |
Issuance of common stock | 1 | 0 |
Shares cancelled for taxes | (1) | 0 |
Net cash used in financing activities | (79) | (84) |
Increase in cash and cash equivalents | 170 | 23 |
Cash and cash equivalents—beginning of period | 307 | 305 |
Cash and cash equivalents—end of period | $ 477 | $ 328 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION We are an independent energy and carbon management company committed to energy transition. We produce some of the lowest carbon intensity oil in the United States and are focused on maximizing the value of our land, minerals and technical resources for decarbonization efforts. We are in the early stages of developing several carbon capture and storage (CCS) projects in California and other emissions reducing projects. Our subsidiary Carbon TerraVault is expected to build, install, operate and maintain CO 2 capture equipment, transportation assets and storage facilities in California. In August 2022, Carbon TerraVault entered into a joint venture with BGTF Sierra Aggregator LLC (Brookfield) to pursue certain of these opportunities (Carbon TerraVault JV) . See Note 2 Investment in Unconsolidated Subsidiary and Related Party Transactions for more information on the Carbon TerraVault JV. Separately, we are evaluating the feasibility of a carbon capture system to be located at our Elk Hills power plant. Except when the context otherwise requires or where otherwise indicated, all references to ‘‘CRC,’’ the ‘‘Company,’’ ‘‘we,’’ ‘‘us’’ and ‘‘our’’ refer to California Resources Corporation and its subsidiaries. In the opinion of our management, the accompanying unaudited financial statements contain all adjustments necessary to fairly present our financial position, results of operations, comprehensive income, equity and cash flows for all periods presented. We have eliminated all significant intercompany transactions and accounts. We account for our share of oil and natural gas producing activities, in which we have a direct working interest, by reporting our proportionate share of assets, liabilities, revenues, costs and cash flows within the relevant lines on our condensed consolidated financial statements. In applying the equity method of accounting for variable interest entities that we do not control, the investment is initially recognized at cost and then adjusted for our proportionate share of income or loss, contributions and distributions. We have prepared this report in accordance with generally accepted accounting principles (GAAP) in the United States and the rules and regulations of the U.S. Securities and Exchange Commission applicable to interim financial information which permit the omission of certain disclosures to the extent they have not changed materially since the latest annual financial statements. We believe our disclosures are adequate to make the information presented not misleading. The preparation of financial statements in conformity with GAAP requires management to select appropriate accounting policies and make informed estimates and judgments regarding certain types of financial statement balances and disclosures. Actual results could differ. Management believes that these estimates and judgments provide a reasonable basis for the fair presentation of our condensed consolidated financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto in our Annual Report on Form 10-K for the year ended December 31, 2022 (2022 Annual Report). The carrying amounts of cash, cash equivalents and on-balance sheet financial instruments, other than debt, approximate fair value. Refer to Note 3 Debt |
INVESTMENT IN UNCONSOLIDATED SU
INVESTMENT IN UNCONSOLIDATED SUBSIDIARY AND RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENT IN UNCONSOLIDATED SUBSIDIARY AND RELATED PARTY TRANSACTIONS | INVESTMENT IN UNCONSOLIDATED SUBSIDIARY AND RELATED PARTY TRANSACTIONS In August 2022, our wholly-owned subsidiary Carbon TerraVault I, LLC entered into a joint venture with Brookfield for the further development of a carbon management business in California. We hold a 51% interest in the Carbon TerraVault JV and Brookfield holds a 49% interest. We determined that the Carbon TerraVault JV is a VIE; however, we share decision-making power with Brookfield on all matters that most significantly impact the economic performance of the joint venture. Therefore, we account for our investment in the Carbon TerraVault JV under the equity method of accounting. Transactions between us and the Carbon TerraVault JV are related party transactions. Brookfield has committed an initial $500 million to invest in CCS projects that are jointly approved through the Carbon TerraVault JV. As part of the formation of the Carbon TerraVault JV, we contributed rights to inject CO 2 into the 26R reservoir in our Elk Hills field for permanent CO 2 storage (26R reservoir) and Brookfield committed to make an initial investment of $137 million, payable in three equal installments with the last two installments subject to the achievement of certain milestones. Brookfield contributed the first $46 million installment of their initial investment to the Carbon TerraVault JV in 2022. This amount may, at our sole discretion, be distributed to us or used to satisfy future capital contributions, among other items. During 2022, $12 million was distributed to us (and used to pay transaction costs related to the formation of the joint venture) and $2 million was used to satisfy a capital call. During 2023, $2 million was used to satisfy a capital call. The remaining amount of the initial contribution by Brookfield available to us was reported as a receivable from affiliate on our condensed consolidated balance sheet. Because the parties have certain put and call rights (repurchase features) with respect to the 26R reservoir if certain milestones are not met, the initial investment by Brookfield is reflected as a contingent liability in other long-term liabilities on our condensed consolidated balance. We entered into a Management Services Agreement (MSA) with the Carbon TerraVault JV whereby we provide administrative, operational and commercial services under a cost-plus arrangement. Services may be supplemented by using third parties and payments to us under the MSA are limited to the amount in an approved budget. The MSA may be terminated by mutual agreement of the parties, among other events. The tables below present the summarized financial information related to our equity method investment and related party transactions for the periods presented. March 31, December 31, 2023 2022 (in millions) Investment in unconsolidated subsidiary (a) $ 14 $ 13 Receivable from affiliate (b) $ 30 $ 33 Property, plant and equipment (c) $ 1 $ — Contingent liability related to Carbon TerraVault JV put and call rights (d) $ 49 $ 48 (a) Reflects our investment less losses allocated to us of $2 million and $1 million for the three months ended March 31, 2023 and the year ended December 31, 2022, respectively. (b) At March 31, 2023, the amount of $30 million includes $29 million which may be distributed to us or used to satisfy future capital calls and $1 million related to the MSA and vendor reimbursements. At December 31, 2022, the amount of $33 million includes $32 million which may be distributed to us or used to satisfy future capital calls and $1 million related to the MSA and vendor reimbursements. (c) This amount includes the reimbursement for plugging and abandonment activities at the 26R reservoir. (d) These amounts were included in other long-term liabilities on our condensed consolidated balance sheet. Our obligation includes $3 million and $2 million of accrued interest at March 31, 2023 and December 31, 2022, respectively, that we would be required to pay should Brookfield exercise its put right. Three months ended March 31, 2023 2022 (in millions) Loss from investment in unconsolidated subsidiary $ (2) $ — General and administrative expense (a) $ 1 $ — (a) Includes amounts recognized by us under the MSA for administrative, operational and commercial services. The Carbon TerraVault JV has an option to participate in certain projects that involve the capture, transportation and storage of CO 2 |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT As of March 31, 2023 and December 31, 2022, our long-term debt consisted of the following: March 31, December 31, 2023 2022 Interest Rate Maturity (in millions) Revolving Credit Facility $ — $ — SOFR plus 3%-4% ABR plus 2%-3% April 29, 2024 Senior Notes 600 600 7.125% February 1, 2026 Principal amount $ 600 $ 600 Unamortized debt issuance costs (8) (8) Long-term debt, net $ 592 $ 592 On October 27, 2020, we entered into a Credit Agreement with Citibank, N.A., as administrative agent, and certain other lenders. As of March 31, 2023, this credit agreement consisted of a senior revolving loan facility (Revolving Credit Facility) with an aggregate commitment of $602 million. Our Revolving Credit Facility also included a sub-limit of $200 million for the issuance of letters of credit as of March 31, 2023. Letters of credit were issued to support ordinary course marketing, insurance, regulatory and other matters. The borrowing base is redetermined semi-annually and was reaffirmed at $1.2 billion on April 26, 2023. The borrowing base takes into account the estimated value of our proved reserves, total indebtedness and other relevant factors consistent with customary reserves-based lending criteria. The amount we are able to borrow under our Revolving Credit Facility is limited to the amount of the commitment described above. At March 31, 2023, we were in compliance with all financial and other debt covenants under our Revolving Credit Facility and Senior Notes. For more information on our Senior Notes, see Part II, Item 8 – Financial Statements and Supplementary Data, Note 4 Debt in our 2022 Annual Report. See Note 14 Subsequent Events for information regarding a recent amendment to our Revolving Credit Facility. Fair Value |
LAWSUITS, CLAIMS, COMMITMENTS A
LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES | LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES We are involved, in the normal course of business, in lawsuits, environmental and other claims and other contingencies that seek, among other things, compensation for alleged personal injury, breach of contract, property damage or other losses, punitive damages, civil penalties, or injunctive or declaratory relief. We accrue reserves for currently outstanding lawsuits, claims and proceedings when it is probable that a liability has been incurred and the liability can be reasonably estimated. Reserve balances for these items at March 31, 2023 and December 31, 2022 were not material to our condensed consolidated balance sheets as of such dates. We also evaluate the amount of reasonably possible losses that we could incur as a result of these matters. We believe that reasonably possible losses that we could incur in excess of reserves cannot be accurately determined. |
DERIVATIVES
DERIVATIVES | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES We maintain a commodity hedging program primarily focused on crude oil to help protect our cash flows, margins and capital program from the volatility of commodity prices. We did not have any derivative instruments designated as accounting hedges as of and for the three months ended March 31, 2023 and 2022. Unless otherwise indicated, we use the term "hedge" to describe derivative instruments that are designed to achieve our hedging requirements and program goals. From time to time, we may enter into derivative contracts on natural gas to either protect our cash flows from commodity price movements or optimize margins for our marketing and trading activities. Summary of open derivative contracts — We held the following Brent-based crude oil contracts as of March 31, 2023: Q2 Q3 Q4 1H 2H Sold Calls Barrels per day 17,837 17,363 5,747 2,000 4,000 Weighted-average price per barrel $ 60.00 $ 57.06 $ 57.06 $ 90.53 $ 90.53 Swaps Barrels per day 19,475 17,697 27,094 3,500 1,000 Weighted-average price per barrel $ 70.48 $ 69.27 $ 70.73 $ 78.79 $ 77.20 Net Purchased Puts (a) Barrels per day 17,837 17,363 5,747 5,467 4,000 Weighted-average price per barrel $ 76.25 $ 76.25 $ 76.25 $ 71.80 $ 66.25 (a) Purchased puts and sold puts with the same strike price have been presented on a net basis. The outcomes of the derivative positions are as follows: • Sold calls – we make settlement payments for prices above the indicated weighted-average price per barrel. • Swaps – we make settlement payments for prices above the indicated weighted-average price per barrel and receive settlement payments for prices below the indicated weighted-average price per barrel. • Net purchased puts – we receive settlement payments for prices below the indicated weighted-average price per barrel. We use combinations of these positions to increase the efficacy of our hedging program and, subject to certain conditions, meet the requirements of our Revolving Credit Facility. The majority of our derivative positions for the remainder of 2023 were entered into subsequent to our emergence from bankruptcy to comply with the hedging requirements of our Revolving Credit Facility that were applicable at the time. Fair value of derivatives — The following tables present the fair values on a recurring basis (at gross and net) of our outstanding commodity derivatives as of March 31, 2023 and December 31, 2022: March 31, 2023 Classification Gross Amounts at Fair Value Netting Net Fair Value Assets (in millions) Other current assets - Fair value of derivative contracts $ 48 $ (8) $ 40 Other noncurrent assets - Fair value of derivative contracts 10 (7) 3 Liabilities Current - Fair value of derivative contracts (a) (162) 8 (154) Noncurrent - Fair value of derivative contracts (7) 7 — $ (111) $ — $ (111) (a) In addition to our Brent based derivative contracts, we held swaps as of March 31, 2023 for offsetting notional volumes of natural gas to secure a margin for future physical sales of natural gas related to our marketing and trading activities. The fair value of these natural gas hedges was $15 million included in current liabilities at March 31, 2023. December 31, 2022 Classification Gross Amounts at Fair Value Netting Net Fair Value Assets (in millions) Other current assets - Fair value of derivative contracts $ 51 $ (12) $ 39 Other noncurrent assets - Fair value of derivative contracts 7 — 7 Liabilities Current - Fair value of derivative contracts (a) (258) 12 (246) Noncurrent - Fair value of derivative contracts — — — $ (200) $ — $ (200) (a) In addition to our Brent based derivative contracts, we held swaps as of December 31, 2022 for offsetting notional volumes of natural gas to secure a margin for future physical sales of natural gas related to our marketing and trading activities. The fair value of these natural gas hedges was $4 million included in current liabilities at December 31, 2022. Our derivative contracts are measured at fair value using industry-standard models with various inputs, including quoted forward prices, and are classified as Level 2 in the required fair value hierarchy for the periods presented. We recognized fair value changes on derivative instruments each reporting period in net gain (loss) from commodity derivatives on our condensed consolidated statements of operations for the three months ended March 31, 2023 and 2022. The changes in fair value result from the relationship between our existing positions, volatility, time to expiration, contract prices and the associated forward curves. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The following table present the components of our total income tax provision and a reconciliation of the U.S. federal statutory rate to our effective tax rate: Three months ended March 31, 2023 2022 (in millions) Net income (loss) before income taxes $ 376 $ (201) Current income tax provision 28 7 Deferred income tax provision (benefit) 47 (33) Total income tax provision (benefit) $ 75 $ (26) Three months ended March 31, 2023 2022 U.S. federal statutory tax rate 21 % 21 % State income taxes, net 7 7 Change in the valuation allowance (8) (15) Effective tax rate 20 % 13 % |
DIVESTITURES AND ACQUISITIONS
DIVESTITURES AND ACQUISITIONS | 3 Months Ended |
Mar. 31, 2023 | |
Acquisitions And Divestitures [Abstract] | |
DIVESTITURES AND ACQUISITIONS | DIVESTITURES AND ACQUISITIONS Divestitures Ventura Basin Transactions In the three months ended March 31, 2022, we recorded a gain of $6 million related to the sale of certain Ventura basin assets. The closing of the sale of our remaining assets in the Ventura basin is subject to final approval from the State Lands Commission, which we expect to receive in the second half of 2023. These remaining assets, consisting of property, plant and equipment and associated asset retirement obligations, are classified as held for sale on our condensed consolidated balance sheets at March 31, 2023 and December 31, 2022. See Part II, Item 8 – Financial Statements and Supplementary Data, Note 3 Divestitures and Acquisitions in our 2022 Annual Report for additional information on the Ventura basin transactions. Lost Hills Transaction During the three months ended March 31, 2022, we sold our 50% non-operated working interest in certain horizons within our Lost Hills field, located in the San Joaquin basin, recognizing a gain of $49 million. We retained an option to capture, transport and store 100% of the CO 2 from steam generators across the Lost Hills field for future carbon management projects. We also retained 100% of the deep rights and related seismic data. Other During the three months ended March 31, 2023, we sold a non-core asset in exchange for the assumption of plugging and abandonment liabilities recognizing a $7 million gain. During the three months ended March 31, 2022, we sold non-core assets recognizing a $1 million loss. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY Share Repurchase Program Our Board of Directors has authorized a Share Repurchase Program to acquire up to $1.1 billion of our common stock through June 30, 2024. The repurchases may be effected from time-to-time through open market purchases, privately negotiated transactions, Rule 10b5-1 plans, accelerated stock repurchases, derivative contracts or otherwise in compliance with Rule 10b-18, subject to market conditions. The Share Repurchase Program does not obligate us to repurchase any dollar amount or number of shares and our Board of Directors may modify, suspend, or discontinue authorization of the program at any time. The following is a summary of our share repurchases, held as treasury stock for the periods presented: Total Number of Shares Purchased Dollar Value of Shares Purchased Average Price Paid per Share (number of shares) (in millions) ($ per share) Three months ended March 31, 2022 1,668,456 $ 71 $ 42.52 Three months ended March 31, 2023 1,423,764 $ 59 $ 41.25 Inception of Program (May 2021) through March 31, 2023 12,880,024 $ 519 $ 40.31 Note: The dollar value of shares purchased does not include commissions and excise taxes on share repurchases. Dividends On February 23, 2023, our Board of Directors declared a quarterly cash dividend of $0.2825 per share of common stock and amounted to $20 million in the aggregate. The dividend was payable to shareholders of record at the close of business on March 6, 2023 and was paid on March 16, 2023. Future cash dividends, and the establishment of record and payment dates, are subject to final determination by our Board of Directors each quarter after reviewing our financial performance and position. See Note 14 Subsequent Events for information on future cash dividends. Warrants In October 2020, we reserved an aggregate 4,384,182 shares of our common stock for warrants which are exercisable at $36 per share through October 26, 2024. As of March 31, 2023, we had outstanding warrants exercisable into 4,295,321 shares of our common stock (subject to adjustments pursuant to the terms of the warrants). During the three months ended March 31, 2023 and 2022, we issued an insignificant amount of shares of our common stock in exchange for warrants. See Part II, Item 8 – Financial Statements and Supplementary Data, Note 11 Stockholders' Equity in our 2022 Annual Report for additional information on the terms of our warrants. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic and diluted earnings per share (EPS) were calculated using the treasury stock method for the three months ended March 31, 2023 and 2022. Our restricted stock unit (RSU) and performance stock unit (PSU) awards are not considered participating securities since the dividend rights on unvested shares are forfeitable. For basic EPS, the weighted-average number of common shares outstanding excludes shares underlying our equity-settled awards and warrants. For diluted EPS, the basic shares outstanding are adjusted by adding potential common shares, if dilutive. The following table presents the calculation of basic and diluted EPS, for the three months ended March 31, 2023 and 2022: Three months ended March 31, 2023 2022 (in millions, except per-share amounts) Numerator for Basic and Diluted EPS Net income (loss) $ 301 $ (175) Denominator for Basic EPS Weighted-average shares 71.3 78.5 Potential Common Shares, if dilutive: Warrants 0.5 — Restricted Stock Units 0.9 — Performance Stock Units 0.8 — Denominator for Diluted EPS Weighted-average shares 73.5 78.5 EPS Basic $ 4.22 $ (2.23) Diluted $ 4.09 $ (2.23) The following table presents potentially dilutive weighted-average common shares which were excluded from the denominator for diluted EPS in the periods presented: Three months ended March 31, 2023 2022 (in millions) Shares issuable upon exercise of warrants — 4.3 Shares issuable upon settlement of RSUs — 1.1 Shares issuable upon settlement of PSUs — 1.0 Total antidilutive shares — 6.4 |
PENSION AND POSTRETIREMENT BENE
PENSION AND POSTRETIREMENT BENEFIT PLANS | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
PENSION AND POSTRETIREMENT BENEFIT PLANS | PENSION AND POSTRETIREMENT BENEFIT PLANS The following table sets forth the components of the net periodic benefit costs for our defined benefit pension and postretirement benefit plans for the three months ended March 31, 2023 and 2022: Three months ended March 31, Three months ended March 31, 2023 2022 Pension Postretirement Pension Postretirement (in millions) (in millions) Service cost - benefits earned during the period $ — $ — $ — $ 1 Amortization of prior service cost credit — (1) — (1) Net periodic benefit costs $ — $ (1) $ — $ — |
REVENUE
REVENUE | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE We derive most of our revenue from sales of oil, natural gas and NGLs, with the remaining revenue primarily generated from sales of electricity and marketing activities related to storage and managing excess pipeline capacity. The following table provides disaggregated revenue for sales of produced oil, natural gas and NGLs to customers: Three months ended March 31, 2023 2022 (in millions) Oil $ 390 $ 486 Natural gas 263 80 NGLs 62 62 Oil, natural gas and NGL sales $ 715 $ 628 |
SUPPLEMENTAL ACCOUNT BALANCES
SUPPLEMENTAL ACCOUNT BALANCES | 3 Months Ended |
Mar. 31, 2023 | |
SUPPLEMENTAL INFORMATION [Abstract] | |
SUPPLEMENTAL ACCOUNT BALANCES | SUPPLEMENTAL ACCOUNT BALANCES Inventories — Materials and supplies, which primarily consist of well equipment and tubular goods used in our oil and natural gas operations, are valued at weighted-average cost and are reviewed periodically for obsolescence. Finished goods include produced oil and NGLs in storage, which are valued at the lower of cost or net realizable value. Inventories, by category, are as follows: March 31, December 31, 2023 2022 (in millions) Materials and supplies $ 61 $ 56 Finished goods 3 4 Inventories $ 64 $ 60 Other current assets, net — Other current assets, net includes the following: March 31, December 31, 2023 2022 (in millions) Net amounts due from joint interest partners (a) $ 39 $ 39 Fair value of derivative contracts 40 39 Prepaid expenses 16 17 Greenhouse gas allowances 19 — Natural gas margin deposits 16 16 Income tax receivable — 10 Other 9 12 Other current assets, net $ 139 $ 133 (a) Included in the March 31, 2023 and December 31, 2022 net amounts due from joint interest partners are allowances of $1 million. Other noncurrent assets — Other noncurrent assets includes the following: March 31, December 31, 2023 2022 (in millions) Operating lease right-of-use assets $ 68 $ 73 Deferred financing costs - Revolving Credit Facility 5 6 Emission reduction credits 11 11 Prepaid power plant maintenance 29 28 Fair value of derivative contracts 3 7 Deposits and other 17 15 Other noncurrent assets $ 133 $ 140 Accrued liabilities — Accrued liabilities includes the following: March 31, December 31, 2023 2022 (in millions) Accrued employee-related costs $ 40 $ 49 Accrued taxes other than on income 38 32 Asset retirement obligations 62 59 Accrued interest 9 19 Operating lease liability 14 18 Premiums due on derivative contracts 49 58 Liability for settlement payments on derivative contracts 23 33 Amounts due under production-sharing contracts 7 — Income taxes payable 19 1 Other 37 29 Accrued liabilities $ 298 $ 298 Other long-term liabilities — Other long-term liabilities includes the following: March 31, December 31, 2023 2022 (in millions) Compensation-related liabilities $ 38 $ 36 Postretirement and pension benefit plans 31 33 Operating lease liability 50 52 Premiums due on derivative contracts — 8 Contingent liability related to Carbon TerraVault JV put and call rights 49 48 Other 7 8 Other long-term liabilities $ 175 $ 185 General and administrative expenses — The table below shows G&A expenses for our exploration and production business (in addition to unallocated corporate overhead and other) separately from our carbon management business. The amounts shown for our carbon management business are net of amounts reimbursable to us under the MSA with the Carbon TerraVault JV. Three months ended March 31, 2023 2022 (in millions) Exploration and production, corporate and other $ 62 $ 47 Carbon management business 3 1 Total general and administrative expenses $ 65 $ 48 Other operating expenses, net — The table below shows other operating expenses, net for our exploration and production business (in addition to unallocated corporate overhead and other) separately from our carbon management business. Carbon management expenses includes lease cost for sequestration easements, advocacy, and other startup related costs. Three months ended March 31, 2023 2022 (in millions) Exploration and production, corporate and other $ 9 $ 14 Carbon management business 4 — Total other operating expenses, net $ 13 $ 14 |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 3 Months Ended |
Mar. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION We did not make U.S. federal or state income tax payments during the three months ended March 31, 2023 or the three months ended March 31, 2022. Interest paid, net of capitalized amounts was $21 million and $22 million for the three months ended March 31, 2023 and 2022, respectively. Non-cash investing activities in the three months ended March 31, 2023 included $2 million related to a capital call for the Carbon TerraVault JV. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Amendment to our Revolving Credit Facility On April 26, 2023, we amended our existing Revolving Credit Facility. The amended Revolving Credit Facility provides for an initial aggregate commitment of $592 million and a borrowing base of $1.2 billion. The amendments included, among other things: • extending the maturity date to July 31, 2027 (subject to a springing maturity to August 4, 2025 if any of our Senior Notes are outstanding on that date); • increasing our ability to make certain restricted payments (such as dividends and share repurchases) and certain investments (including in our carbon management business); • releasing liens on certain assets securing the loans made under the Revolving Credit Facility, including our Elk Hills power plant; • permitting us to designate the entities that hold certain of our assets, including our Elk Hills power plant, as unrestricted subsidiaries subject to meeting certain conditions; • extending the period for which we can enter into hedges on our production from 48 months to 60 months; and • increasing our capacity to issue letters of credit from $200 million to $250 million. We also amended the interest rates and fees we pay under our Revolving Credit Facility. At our election, borrowings under the amended Revolving Credit Facility may be alternate base rate (ABR) loans or term SOFR loans, plus an applicable margin. ABR loans bear interest at a rate equal to the highest of (i) the federal funds effective rate plus 0.50%, (ii) the administrative agent prime rate and (iii) the one-month SOFR rate plus 1%. Term SOFR loans bear interest at term SOFR, plus an additional 10 basis points per annum credit spread adjustment. The applicable margin is adjusted based on the commitment utilization percentage and will vary from (i) in the case of ABR loans, 1.50% to 2.50% and (ii) in the case of term SOFR loans, 2.50% to 3.50%. We also pay customary fees and expenses. Interest is payable quarterly for ABR loans and at the end of the applicable interest period for term SOFR loans, but not less than quarterly. We also pay a commitment fee on unused capacity ranging from 37.5 to 50 basis points per annum, depending on the percentage of the commitment utilized. Dividends On April 28, 2023, our Board of Directors declared a quarterly cash dividend of $0.2825 per share of common stock. The dividend is payable to shareholders of record at the close of business on June 1, 2023 and is expected to be paid on June 16, 2023. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | We are an independent energy and carbon management company committed to energy transition. We produce some of the lowest carbon intensity oil in the United States and are focused on maximizing the value of our land, minerals and technical resources for decarbonization efforts. We are in the early stages of developing several carbon capture and storage (CCS) projects in California and other emissions reducing projects. Our subsidiary Carbon TerraVault is expected to build, install, operate and maintain CO 2 capture equipment, transportation assets and storage facilities in California. In August 2022, Carbon TerraVault entered into a joint venture with BGTF Sierra Aggregator LLC (Brookfield) to pursue certain of these opportunities (Carbon TerraVault JV) . See Note 2 Investment in Unconsolidated Subsidiary and Related Party Transactions for more information on the Carbon TerraVault JV. Separately, we are evaluating the feasibility of a carbon capture system to be located at our Elk Hills power plant. Except when the context otherwise requires or where otherwise indicated, all references to ‘‘CRC,’’ the ‘‘Company,’’ ‘‘we,’’ ‘‘us’’ and ‘‘our’’ refer to California Resources Corporation and its subsidiaries. In the opinion of our management, the accompanying unaudited financial statements contain all adjustments necessary to fairly present our financial position, results of operations, comprehensive income, equity and cash flows for all periods presented. We have eliminated all significant intercompany transactions and accounts. We account for our share of oil and natural gas producing activities, in which we have a direct working interest, by reporting our proportionate share of assets, liabilities, revenues, costs and cash flows within the relevant lines on our condensed consolidated financial statements. In applying the equity method of accounting for variable interest entities that we do not control, the investment is initially recognized at cost and then adjusted for our proportionate share of income or loss, contributions and distributions. We have prepared this report in accordance with generally accepted accounting principles (GAAP) in the United States and the rules and regulations of the U.S. Securities and Exchange Commission applicable to interim financial information which permit the omission of certain disclosures to the extent they have not changed materially since the latest annual financial statements. We believe our disclosures are adequate to make the information presented not misleading. The preparation of financial statements in conformity with GAAP requires management to select appropriate accounting policies and make informed estimates and judgments regarding certain types of financial statement balances and disclosures. Actual results could differ. Management believes that these estimates and judgments provide a reasonable basis for the fair presentation of our condensed consolidated financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto in our Annual Report on Form 10-K for the year ended December 31, 2022 (2022 Annual Report). The carrying amounts of cash, cash equivalents and on-balance sheet financial instruments, other than debt, approximate fair value. Refer to Note 3 Debt |
INVESTMENT IN UNCONSOLIDATED _2
INVESTMENT IN UNCONSOLIDATED SUBSIDIARY AND RELATED PARTY TRANSACTIONS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investment Unconsolidated Subsidiary | The tables below present the summarized financial information related to our equity method investment and related party transactions for the periods presented. March 31, December 31, 2023 2022 (in millions) Investment in unconsolidated subsidiary (a) $ 14 $ 13 Receivable from affiliate (b) $ 30 $ 33 Property, plant and equipment (c) $ 1 $ — Contingent liability related to Carbon TerraVault JV put and call rights (d) $ 49 $ 48 (a) Reflects our investment less losses allocated to us of $2 million and $1 million for the three months ended March 31, 2023 and the year ended December 31, 2022, respectively. (b) At March 31, 2023, the amount of $30 million includes $29 million which may be distributed to us or used to satisfy future capital calls and $1 million related to the MSA and vendor reimbursements. At December 31, 2022, the amount of $33 million includes $32 million which may be distributed to us or used to satisfy future capital calls and $1 million related to the MSA and vendor reimbursements. (c) This amount includes the reimbursement for plugging and abandonment activities at the 26R reservoir. (d) These amounts were included in other long-term liabilities on our condensed consolidated balance sheet. Our obligation includes $3 million and $2 million of accrued interest at March 31, 2023 and December 31, 2022, respectively, that we would be required to pay should Brookfield exercise its put right. Three months ended March 31, 2023 2022 (in millions) Loss from investment in unconsolidated subsidiary $ (2) $ — General and administrative expense (a) $ 1 $ — |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | As of March 31, 2023 and December 31, 2022, our long-term debt consisted of the following: March 31, December 31, 2023 2022 Interest Rate Maturity (in millions) Revolving Credit Facility $ — $ — SOFR plus 3%-4% ABR plus 2%-3% April 29, 2024 Senior Notes 600 600 7.125% February 1, 2026 Principal amount $ 600 $ 600 Unamortized debt issuance costs (8) (8) Long-term debt, net $ 592 $ 592 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Open Derivative Contracts | We held the following Brent-based crude oil contracts as of March 31, 2023: Q2 Q3 Q4 1H 2H Sold Calls Barrels per day 17,837 17,363 5,747 2,000 4,000 Weighted-average price per barrel $ 60.00 $ 57.06 $ 57.06 $ 90.53 $ 90.53 Swaps Barrels per day 19,475 17,697 27,094 3,500 1,000 Weighted-average price per barrel $ 70.48 $ 69.27 $ 70.73 $ 78.79 $ 77.20 Net Purchased Puts (a) Barrels per day 17,837 17,363 5,747 5,467 4,000 Weighted-average price per barrel $ 76.25 $ 76.25 $ 76.25 $ 71.80 $ 66.25 |
Summary of Fair Value of Derivatives | The following tables present the fair values on a recurring basis (at gross and net) of our outstanding commodity derivatives as of March 31, 2023 and December 31, 2022: March 31, 2023 Classification Gross Amounts at Fair Value Netting Net Fair Value Assets (in millions) Other current assets - Fair value of derivative contracts $ 48 $ (8) $ 40 Other noncurrent assets - Fair value of derivative contracts 10 (7) 3 Liabilities Current - Fair value of derivative contracts (a) (162) 8 (154) Noncurrent - Fair value of derivative contracts (7) 7 — $ (111) $ — $ (111) (a) In addition to our Brent based derivative contracts, we held swaps as of March 31, 2023 for offsetting notional volumes of natural gas to secure a margin for future physical sales of natural gas related to our marketing and trading activities. The fair value of these natural gas hedges was $15 million included in current liabilities at March 31, 2023. December 31, 2022 Classification Gross Amounts at Fair Value Netting Net Fair Value Assets (in millions) Other current assets - Fair value of derivative contracts $ 51 $ (12) $ 39 Other noncurrent assets - Fair value of derivative contracts 7 — 7 Liabilities Current - Fair value of derivative contracts (a) (258) 12 (246) Noncurrent - Fair value of derivative contracts — — — $ (200) $ — $ (200) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of differences between the U.S. federal income tax rate and the company's effective tax rate | The following table present the components of our total income tax provision and a reconciliation of the U.S. federal statutory rate to our effective tax rate: Three months ended March 31, 2023 2022 (in millions) Net income (loss) before income taxes $ 376 $ (201) Current income tax provision 28 7 Deferred income tax provision (benefit) 47 (33) Total income tax provision (benefit) $ 75 $ (26) Three months ended March 31, 2023 2022 U.S. federal statutory tax rate 21 % 21 % State income taxes, net 7 7 Change in the valuation allowance (8) (15) Effective tax rate 20 % 13 % |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Schedule Of Shares Repurchased | The following is a summary of our share repurchases, held as treasury stock for the periods presented: Total Number of Shares Purchased Dollar Value of Shares Purchased Average Price Paid per Share (number of shares) (in millions) ($ per share) Three months ended March 31, 2022 1,668,456 $ 71 $ 42.52 Three months ended March 31, 2023 1,423,764 $ 59 $ 41.25 Inception of Program (May 2021) through March 31, 2023 12,880,024 $ 519 $ 40.31 Note: The dollar value of shares purchased does not include commissions and excise taxes on share repurchases. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted EPS | The following table presents the calculation of basic and diluted EPS, for the three months ended March 31, 2023 and 2022: Three months ended March 31, 2023 2022 (in millions, except per-share amounts) Numerator for Basic and Diluted EPS Net income (loss) $ 301 $ (175) Denominator for Basic EPS Weighted-average shares 71.3 78.5 Potential Common Shares, if dilutive: Warrants 0.5 — Restricted Stock Units 0.9 — Performance Stock Units 0.8 — Denominator for Diluted EPS Weighted-average shares 73.5 78.5 EPS Basic $ 4.22 $ (2.23) Diluted $ 4.09 $ (2.23) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table presents potentially dilutive weighted-average common shares which were excluded from the denominator for diluted EPS in the periods presented: Three months ended March 31, 2023 2022 (in millions) Shares issuable upon exercise of warrants — 4.3 Shares issuable upon settlement of RSUs — 1.1 Shares issuable upon settlement of PSUs — 1.0 Total antidilutive shares — 6.4 |
PENSION AND POSTRETIREMENT BE_2
PENSION AND POSTRETIREMENT BENEFIT PLANS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Periodic Benefit Costs | The following table sets forth the components of the net periodic benefit costs for our defined benefit pension and postretirement benefit plans for the three months ended March 31, 2023 and 2022: Three months ended March 31, Three months ended March 31, 2023 2022 Pension Postretirement Pension Postretirement (in millions) (in millions) Service cost - benefits earned during the period $ — $ — $ — $ 1 Amortization of prior service cost credit — (1) — (1) Net periodic benefit costs $ — $ (1) $ — $ — |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregated Revenue | The following table provides disaggregated revenue for sales of produced oil, natural gas and NGLs to customers: Three months ended March 31, 2023 2022 (in millions) Oil $ 390 $ 486 Natural gas 263 80 NGLs 62 62 Oil, natural gas and NGL sales $ 715 $ 628 |
SUPPLEMENTAL ACCOUNT BALANCES (
SUPPLEMENTAL ACCOUNT BALANCES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
SUPPLEMENTAL INFORMATION [Abstract] | |
Schedule of Inventories | Inventories, by category, are as follows: March 31, December 31, 2023 2022 (in millions) Materials and supplies $ 61 $ 56 Finished goods 3 4 Inventories $ 64 $ 60 |
Schedule of Other Current Assets, Net | Other current assets, net includes the following: March 31, December 31, 2023 2022 (in millions) Net amounts due from joint interest partners (a) $ 39 $ 39 Fair value of derivative contracts 40 39 Prepaid expenses 16 17 Greenhouse gas allowances 19 — Natural gas margin deposits 16 16 Income tax receivable — 10 Other 9 12 Other current assets, net $ 139 $ 133 (a) Included in the March 31, 2023 and December 31, 2022 net amounts due from joint interest partners are allowances of $1 million. |
Schedule of Other Noncurrent Assets | Other noncurrent assets includes the following: March 31, December 31, 2023 2022 (in millions) Operating lease right-of-use assets $ 68 $ 73 Deferred financing costs - Revolving Credit Facility 5 6 Emission reduction credits 11 11 Prepaid power plant maintenance 29 28 Fair value of derivative contracts 3 7 Deposits and other 17 15 Other noncurrent assets $ 133 $ 140 |
Schedule of Accrued Liabilities | Accrued liabilities includes the following: March 31, December 31, 2023 2022 (in millions) Accrued employee-related costs $ 40 $ 49 Accrued taxes other than on income 38 32 Asset retirement obligations 62 59 Accrued interest 9 19 Operating lease liability 14 18 Premiums due on derivative contracts 49 58 Liability for settlement payments on derivative contracts 23 33 Amounts due under production-sharing contracts 7 — Income taxes payable 19 1 Other 37 29 Accrued liabilities $ 298 $ 298 |
Schedule of Other Long-term Liabilities | Other long-term liabilities includes the following: March 31, December 31, 2023 2022 (in millions) Compensation-related liabilities $ 38 $ 36 Postretirement and pension benefit plans 31 33 Operating lease liability 50 52 Premiums due on derivative contracts — 8 Contingent liability related to Carbon TerraVault JV put and call rights 49 48 Other 7 8 Other long-term liabilities $ 175 $ 185 |
Schedule of General and Administrative Expenses | The table below shows G&A expenses for our exploration and production business (in addition to unallocated corporate overhead and other) separately from our carbon management business. The amounts shown for our carbon management business are net of amounts reimbursable to us under the MSA with the Carbon TerraVault JV. Three months ended March 31, 2023 2022 (in millions) Exploration and production, corporate and other $ 62 $ 47 Carbon management business 3 1 Total general and administrative expenses $ 65 $ 48 |
Schedule of Other Expenses, Net | The table below shows other operating expenses, net for our exploration and production business (in addition to unallocated corporate overhead and other) separately from our carbon management business. Carbon management expenses includes lease cost for sequestration easements, advocacy, and other startup related costs. Three months ended March 31, 2023 2022 (in millions) Exploration and production, corporate and other $ 9 $ 14 Carbon management business 4 — Total other operating expenses, net $ 13 $ 14 |
INVESTMENT IN UNCONSOLIDATED _3
INVESTMENT IN UNCONSOLIDATED SUBSIDIARY AND RELATED PARTY TRANSACTIONS - Narrative (Details) - Carbon TerraVault JV MT in Millions, $ in Millions | 3 Months Ended | ||
Aug. 03, 2022 USD ($) installment MT | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||
Interest in joint venture | 51% | ||
Contribution from noncontrolling interest | $ 12 | ||
Brookfield | |||
Schedule of Equity Method Investments [Line Items] | |||
Interest in joint venture | 49% | ||
Committed amount | $ 500 | ||
Initial investment | $ 137 | ||
Number of installments | installment | 3 | ||
Number of installments subject to certain milestones | installment | 2 | ||
Contribution from noncontrolling interest | 46 | ||
Metric tons of carbon per annum | MT | 5 | ||
Brookfield | Calls | |||
Schedule of Equity Method Investments [Line Items] | |||
Contribution from noncontrolling interest | $ 2 | $ 2 |
INVESTMENT IN UNCONSOLIDATED _4
INVESTMENT IN UNCONSOLIDATED SUBSIDIARY AND RELATED PARTY TRANSACTIONS - Equity Method Investment Unconsolidated Subsidiary, Balance Sheet (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Schedule of Equity Method Investments [Line Items] | |||
Investment in unconsolidated subsidiary | $ 14 | $ 13 | |
Receivable from affiliate | 30 | 33 | |
Property, plant and equipment | 2,764 | 2,786 | |
Contingent liability related to Carbon TerraVault JV put and call rights | 49 | 48 | |
Loss from investment in unconsolidated subsidiary | 2 | $ 0 | |
Carbon TerraVault JV | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in unconsolidated subsidiary | 14 | 13 | |
Receivable from affiliate | 30 | 33 | |
Property, plant and equipment | 1 | 0 | |
Contingent liability related to Carbon TerraVault JV put and call rights | 49 | 48 | |
Loss from investment in unconsolidated subsidiary | 2 | $ 0 | 1 |
Equity method investments, distributed to satisfy future capital calls | 29 | ||
Carbon TerraVault JV | Brookfield | |||
Schedule of Equity Method Investments [Line Items] | |||
Accrued interest | 3 | 2 | |
Carbon TerraVault JV | Management Services Agreement | |||
Schedule of Equity Method Investments [Line Items] | |||
Receivable from affiliate | $ 1 | 1 | |
Equity method investments, distributed to satisfy future capital calls | $ 32 |
INVESTMENT IN UNCONSOLIDATED _5
INVESTMENT IN UNCONSOLIDATED SUBSIDIARY AND RELATED PARTY TRANSACTIONS - Equity Method Investment Unconsolidated Subsidiary, Income Statement (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Schedule of Equity Method Investments [Line Items] | |||
Loss from investment in unconsolidated subsidiary | $ (2) | $ 0 | |
Carbon TerraVault JV | |||
Schedule of Equity Method Investments [Line Items] | |||
Loss from investment in unconsolidated subsidiary | (2) | 0 | $ (1) |
General and administrative expense | $ 1 | $ 0 |
DEBT - Schedule of Long-Term De
DEBT - Schedule of Long-Term Debt (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Debt | ||
Principal amount | $ 600 | $ 600 |
Unamortized debt issuance costs | (8) | (8) |
Long-term debt, net | 592 | 592 |
Senior Notes (Unsecured) | ||
Debt | ||
Principal amount | $ 600 | 600 |
Interest rate | 7.125% | |
Revolving Credit Facility | Line of Credit | ||
Debt | ||
Principal amount | $ 0 | $ 0 |
Revolving Credit Facility | Line of Credit | SOFR | Minimum | ||
Debt | ||
Interest rate added to variable rate basis | 3% | |
Revolving Credit Facility | Line of Credit | SOFR | Maximum | ||
Debt | ||
Interest rate added to variable rate basis | 4% | |
Revolving Credit Facility | Line of Credit | Alternative Base Rate | Minimum | ||
Debt | ||
Interest rate added to variable rate basis | 2% | |
Revolving Credit Facility | Line of Credit | Alternative Base Rate | Maximum | ||
Debt | ||
Interest rate added to variable rate basis | 3% |
DEBT - Narrative - Revolving Cr
DEBT - Narrative - Revolving Credit Facility (Details) - Line of Credit - USD ($) $ in Millions | Apr. 26, 2023 | Mar. 31, 2023 |
Revolving Credit Facility | ||
Debt instrument | ||
Line of credit facility, maximum borrowing capacity | $ 602 | |
Revolving Credit Facility | Subsequent Event | ||
Debt instrument | ||
Line of credit facility, maximum borrowing capacity | $ 592 | |
Borrowing base | 1,200 | |
Letters of Credit | ||
Debt instrument | ||
Line of credit facility, maximum borrowing capacity | $ 200 | |
Letters of Credit | Subsequent Event | ||
Debt instrument | ||
Line of credit facility, maximum borrowing capacity | $ 250 |
DEBT - Fair Value (Details)
DEBT - Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
Fair value of debt | $ 607 | $ 574 |
LAWSUITS, CLAIMS, COMMITMENTS_2
LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES (Details) | 1 Months Ended |
Oct. 31, 2020 platform | |
Commitments and Contingencies Disclosure [Abstract] | |
Number of offshore platforms with decommissioning obligations defaulted | 2 |
Offshore platforms with decommissioning obligations defaulted percentage | 37.50% |
Offshore platforms with decommissioning obligations defaulted period since interest sold | 30 years |
DERIVATIVES - Commodity Price R
DERIVATIVES - Commodity Price Risk (Details) - Crude Oil | Mar. 31, 2023 bbl / d $ / barrel |
Calls | Q2 2023 | |
Derivatives | |
Daily volume | bbl / d | 17,837 |
Weighted-average price (in dollars per barrel) | $ / barrel | 60 |
Calls | Q3 2023 | |
Derivatives | |
Daily volume | bbl / d | 17,363 |
Weighted-average price (in dollars per barrel) | $ / barrel | 57.06 |
Calls | Q4 2023 | |
Derivatives | |
Daily volume | bbl / d | 5,747 |
Weighted-average price (in dollars per barrel) | $ / barrel | 57.06 |
Calls | 1H 2024 | |
Derivatives | |
Daily volume | bbl / d | 2,000 |
Weighted-average price (in dollars per barrel) | $ / barrel | 90.53 |
Calls | 2H 2024 | |
Derivatives | |
Daily volume | bbl / d | 4,000 |
Weighted-average price (in dollars per barrel) | $ / barrel | 90.53 |
Swaps | Q2 2023 | |
Derivatives | |
Daily volume | bbl / d | 19,475 |
Weighted-average price (in dollars per barrel) | $ / barrel | 70.48 |
Swaps | Q3 2023 | |
Derivatives | |
Daily volume | bbl / d | 17,697 |
Weighted-average price (in dollars per barrel) | $ / barrel | 69.27 |
Swaps | Q4 2023 | |
Derivatives | |
Daily volume | bbl / d | 27,094 |
Weighted-average price (in dollars per barrel) | $ / barrel | 70.73 |
Swaps | 1H 2024 | |
Derivatives | |
Daily volume | bbl / d | 3,500 |
Weighted-average price (in dollars per barrel) | $ / barrel | 78.79 |
Swaps | 2H 2024 | |
Derivatives | |
Daily volume | bbl / d | 1,000 |
Weighted-average price (in dollars per barrel) | $ / barrel | 77.20 |
Puts | Purchased | Q2 2023 | |
Derivatives | |
Daily volume | bbl / d | 17,837 |
Weighted-average price (in dollars per barrel) | $ / barrel | 76.25 |
Puts | Purchased | Q3 2023 | |
Derivatives | |
Daily volume | bbl / d | 17,363 |
Weighted-average price (in dollars per barrel) | $ / barrel | 76.25 |
Puts | Purchased | Q4 2023 | |
Derivatives | |
Daily volume | bbl / d | 5,747 |
Weighted-average price (in dollars per barrel) | $ / barrel | 76.25 |
Puts | Purchased | 1H 2024 | |
Derivatives | |
Daily volume | bbl / d | 5,467 |
Weighted-average price (in dollars per barrel) | $ / barrel | 71.80 |
Puts | Purchased | 2H 2024 | |
Derivatives | |
Daily volume | bbl / d | 4,000 |
Weighted-average price (in dollars per barrel) | $ / barrel | 66.25 |
DERIVATIVES - Fair Value (Detai
DERIVATIVES - Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value of Derivatives | ||
Derivative instruments in hedges liabilities at fair value | $ 15 | $ 4 |
Commodity Contracts | ||
Fair Value of Derivatives | ||
Total derivatives | 0 | 0 |
Commodity Contracts | Other current assets - Fair value of derivative contracts | ||
Fair Value of Derivatives | ||
Netting | (8) | (12) |
Commodity Contracts | Other noncurrent assets - Fair value of derivative contracts | ||
Fair Value of Derivatives | ||
Netting | (7) | 0 |
Commodity Contracts | Current - Fair value of derivative contracts(a) | ||
Fair Value of Derivatives | ||
Netting | 8 | 12 |
Commodity Contracts | Noncurrent - Fair value of derivative contracts | ||
Fair Value of Derivatives | ||
Netting | 7 | 0 |
Gross Amounts at Fair Value | Commodity Contracts | ||
Fair Value of Derivatives | ||
Total derivatives | (111) | (200) |
Gross Amounts at Fair Value | Commodity Contracts | Other current assets - Fair value of derivative contracts | ||
Fair Value of Derivatives | ||
Gross Amounts at Fair Value | 48 | 51 |
Gross Amounts at Fair Value | Commodity Contracts | Other noncurrent assets - Fair value of derivative contracts | ||
Fair Value of Derivatives | ||
Gross Amounts at Fair Value | 10 | 7 |
Gross Amounts at Fair Value | Commodity Contracts | Current - Fair value of derivative contracts(a) | ||
Fair Value of Derivatives | ||
Gross Amounts at Fair Value | (162) | (258) |
Gross Amounts at Fair Value | Commodity Contracts | Noncurrent - Fair value of derivative contracts | ||
Fair Value of Derivatives | ||
Gross Amounts at Fair Value | (7) | 0 |
Net Fair Value | Commodity Contracts | ||
Fair Value of Derivatives | ||
Total derivatives | (111) | (200) |
Net Fair Value | Commodity Contracts | Other current assets - Fair value of derivative contracts | ||
Fair Value of Derivatives | ||
Net Fair Value | 40 | 39 |
Net Fair Value | Commodity Contracts | Other noncurrent assets - Fair value of derivative contracts | ||
Fair Value of Derivatives | ||
Net Fair Value | 3 | 7 |
Net Fair Value | Commodity Contracts | Current - Fair value of derivative contracts(a) | ||
Fair Value of Derivatives | ||
Net Fair Value | (154) | (246) |
Net Fair Value | Commodity Contracts | Noncurrent - Fair value of derivative contracts | ||
Fair Value of Derivatives | ||
Net Fair Value | $ 0 | $ 0 |
INCOME TAXES - Income Tax Expen
INCOME TAXES - Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Net income (loss) before income taxes | $ 376 | $ (201) |
Current income tax provision | 28 | 7 |
Deferred income tax provision (benefit) | 47 | (33) |
Total income tax provision (benefit) | $ 75 | $ (26) |
Total income tax expense (benefit) differs from the U.S. federal income tax rate to pre-tax income (loss) | ||
U.S. federal statutory tax rate | 21% | 21% |
State income taxes, net | 7% | 7% |
Change in the valuation allowance | (8.00%) | (15.00%) |
Effective tax rate | 20% | 13% |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) $ in Millions | Mar. 31, 2022 USD ($) |
Income Tax Disclosure [Abstract] | |
Deferred tax assets, valuation allowance | $ 35 |
DIVESTITURES AND ACQUISITIONS (
DIVESTITURES AND ACQUISITIONS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Business Acquisition [Line Items] | ||
Gain (loss) on disposition of business | $ 1 | |
Other Acquisitions | ||
Business Acquisition [Line Items] | ||
Business combination, consideration transferred | 17 | |
Impairment recognized | $ 3 | |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Ventura Basin | ||
Business Acquisition [Line Items] | ||
Gain on sale of assets | 6 | |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Lost Hills, San Joaquin Basin | ||
Business Acquisition [Line Items] | ||
Gain on sale of assets | $ 49 | |
Joint venture working interest acquired | 50% | |
Option retained to capture carbon emissions, percent | 100% | |
Percent of deep rights and related seismic data retained | 100% | |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Other Divestitures | ||
Business Acquisition [Line Items] | ||
Gain (loss) on disposition of business | $ (7) |
STOCKHOLDERS' EQUITY - Narrativ
STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||||
Mar. 16, 2023 | Feb. 23, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Oct. 31, 2020 | |
Equity [Abstract] | |||||
Stock repurchase program authorized amount | $ 1,100 | ||||
Dividends declared, common stock (in dollars per share) | $ 0.2825 | $ 0.2825 | $ 0.17 | ||
Dividends paid | $ 20 | ||||
Shares reserved for future issuance (in shares) | 4,384,182 | ||||
Investment warrants, exercise price (in dollars per share) | $ 36 | ||||
Warrant outstanding (in shares) | 4,295,321 |
STOCKHOLDERS' EQUITY - Summary
STOCKHOLDERS' EQUITY - Summary of Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 23 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | |
Equity [Abstract] | |||
Share repurchase (in shares) | 1,423,764 | 1,668,456 | 12,880,024 |
Stock repurchase | $ 59 | $ 71 | $ 519 |
Average price (in dollar per share) | $ 41.25 | $ 42.52 | $ 40.31 |
EARNINGS PER SHARE - Calculatio
EARNINGS PER SHARE - Calculation of EPS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator for Basic and Diluted EPS | ||
Net income (loss) | $ 301 | $ (175) |
Denominator for Basic EPS | ||
Weighted-average common shares outstanding — basic (in shares) | 71.3 | 78.5 |
Weighted-average common shares outstanding — diluted (in shares) | 73.5 | 78.5 |
EPS | ||
Basic (in dollars per share) | $ 4.22 | $ (2.23) |
Diluted (in dollars per share) | $ 4.09 | $ (2.23) |
Warrants | ||
Potential Common Shares, if dilutive: | ||
Incremental common shares attributable to dilutive effect of share-based payment arrangements (in shares) | 0.5 | 0 |
Restricted Stock Units | ||
Potential Common Shares, if dilutive: | ||
Incremental common shares attributable to dilutive effect of share-based payment arrangements (in shares) | 0.9 | 0 |
Performance Stock Units | ||
Potential Common Shares, if dilutive: | ||
Incremental common shares attributable to dilutive effect of share-based payment arrangements (in shares) | 0.8 | 0 |
EARNINGS PER SHARE - Potentiall
EARNINGS PER SHARE - Potentially Dilutive Common Shares (Details) - shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total antidilutive shares | 0 | 6,400,000 |
Shares issuable upon exercise of warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total antidilutive shares | 0 | 4,300,000 |
Shares issuable upon settlement of RSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total antidilutive shares | 0 | 1,100,000 |
Shares issuable upon settlement of PSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total antidilutive shares | 0 | 1,000,000 |
PENSION AND POSTRETIREMENT BE_3
PENSION AND POSTRETIREMENT BENEFIT PLANS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Net periodic benefit costs: | ||
Employer contributions to pension plan | $ 1 | |
Pension Benefit | ||
Net periodic benefit costs: | ||
Service cost - benefits earned during the period | $ 0 | 0 |
Amortization of prior service cost credit | 0 | 0 |
Net periodic benefit costs | 0 | 0 |
Postretirement Benefit | ||
Net periodic benefit costs: | ||
Service cost - benefits earned during the period | 0 | 1 |
Amortization of prior service cost credit | (1) | (1) |
Net periodic benefit costs | $ (1) | $ 0 |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of revenue | ||
Oil, natural gas and NGL sales | $ 715 | $ 628 |
Oil | ||
Disaggregation of revenue | ||
Oil, natural gas and NGL sales | 390 | 486 |
Natural gas | ||
Disaggregation of revenue | ||
Oil, natural gas and NGL sales | 263 | 80 |
NGLs | ||
Disaggregation of revenue | ||
Oil, natural gas and NGL sales | $ 62 | $ 62 |
SUPPLEMENTAL ACCOUNT BALANCES -
SUPPLEMENTAL ACCOUNT BALANCES - Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Materials and supplies | $ 61 | $ 56 |
Finished goods | 3 | 4 |
Inventories | $ 64 | $ 60 |
SUPPLEMENTAL ACCOUNT BALANCES_2
SUPPLEMENTAL ACCOUNT BALANCES - Other Current Assets (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Other current assets | ||
Net amounts due from joint interest partners | $ 39 | $ 39 |
Fair value of derivative contracts | 40 | 39 |
Prepaid expenses | 16 | 17 |
Greenhouse gas allowances | 19 | 0 |
Natural gas margin deposits | 16 | 16 |
Income tax receivable | 0 | 10 |
Other | 9 | 12 |
Other current assets, net | 139 | 133 |
Due from joint interest partners, allowances | $ 1 | $ 1 |
SUPPLEMENTAL ACCOUNT BALANCES_3
SUPPLEMENTAL ACCOUNT BALANCES - Other Noncurrent Assets (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
SUPPLEMENTAL INFORMATION [Abstract] | ||
Operating lease right-of-use assets | $ 68 | $ 73 |
Deferred financing costs - Revolving Credit Facility | 5 | 6 |
Emission reduction credits | 11 | 11 |
Prepaid power plant maintenance | 29 | 28 |
Fair value of derivative contracts | 3 | 7 |
Deposits and other | 17 | 15 |
Other noncurrent assets | $ 133 | $ 140 |
SUPPLEMENTAL ACCOUNT BALANCES_4
SUPPLEMENTAL ACCOUNT BALANCES - Accrued Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Accrued liabilities current [abstract] | ||
Accrued employee-related costs | $ 40 | $ 49 |
Accrued taxes other than on income | 38 | 32 |
Asset retirement obligations | 62 | 59 |
Accrued interest | 9 | 19 |
Operating lease liability | 14 | 18 |
Premiums due on derivative contracts | 49 | 58 |
Liability for settlement payments on derivative contracts | 23 | 33 |
Amounts due under production-sharing contracts | 7 | 0 |
Income taxes payable | 19 | 1 |
Other | 37 | 29 |
Accrued liabilities | $ 298 | $ 298 |
SUPPLEMENTAL ACCOUNT BALANCES_5
SUPPLEMENTAL ACCOUNT BALANCES - Other Long-Term Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
SUPPLEMENTAL INFORMATION [Abstract] | ||
Compensation-related liabilities | $ 38 | $ 36 |
Postretirement and pension benefit plans | 31 | 33 |
Operating lease liability | 50 | 52 |
Premiums due on derivative contracts | 0 | 8 |
Contingent liability related to Carbon TerraVault JV put and call rights | 49 | 48 |
Other | 7 | 8 |
Other long-term liabilities | $ 175 | $ 185 |
SUPPLEMENTAL ACCOUNT BALANCES_6
SUPPLEMENTAL ACCOUNT BALANCES - General and Administrative Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Supplemental Information [Line Items] | ||
General and administrative expenses | $ 65 | $ 48 |
Exploration and production, corporate and other | ||
Supplemental Information [Line Items] | ||
General and administrative expenses | 62 | 47 |
Carbon management business | ||
Supplemental Information [Line Items] | ||
General and administrative expenses | $ 3 | $ 1 |
SUPPLEMENTAL ACCOUNT BALANCES_7
SUPPLEMENTAL ACCOUNT BALANCES - Other Operating Expenses, Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Supplemental Information [Line Items] | ||
Other operating expenses, net | $ 13 | $ 14 |
Exploration and production, corporate and other | ||
Supplemental Information [Line Items] | ||
Other operating expenses, net | 9 | 14 |
Carbon management business | ||
Supplemental Information [Line Items] | ||
Other operating expenses, net | $ 4 | $ 0 |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Supplemental Cash Flow Elements [Line Items] | ||
Taxes paid | $ 0 | $ 0 |
Interest paid, net of capitalized amounts | 21 | 22 |
Dividends accrued for stock-based compensation awards | $ 1 | |
Non-cash financing activities, excise tax to be paid | 1 | |
Carbon TerraVault JV | ||
Supplemental Cash Flow Elements [Line Items] | ||
Non-cash investing activities, capital call | $ 2 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||||
Apr. 28, 2023 | Apr. 26, 2023 | Feb. 23, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Subsequent Event [Line Items] | |||||
Dividends declared, common stock (in dollars per share) | $ 0.2825 | $ 0.2825 | $ 0.17 | ||
Subsequent Event | Quarterly Dividend | |||||
Subsequent Event [Line Items] | |||||
Dividends declared, common stock (in dollars per share) | $ 0.2825 | ||||
Revolving Credit Facility | Line of Credit | |||||
Subsequent Event [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 602 | ||||
Period to enter into hedges on production | 48 months | ||||
Revolving Credit Facility | Line of Credit | SOFR | Minimum | |||||
Subsequent Event [Line Items] | |||||
Interest rate added to variable rate basis | 3% | ||||
Revolving Credit Facility | Line of Credit | SOFR | Maximum | |||||
Subsequent Event [Line Items] | |||||
Interest rate added to variable rate basis | 4% | ||||
Revolving Credit Facility | Line of Credit | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 592 | ||||
Borrowing base | $ 1,200 | ||||
Period to enter into hedges on production | 60 months | ||||
Revolving Credit Facility | Line of Credit | Subsequent Event | Minimum | |||||
Subsequent Event [Line Items] | |||||
Line of credit facility, unused capacity, commitment fee percentage | 0.375% | ||||
Revolving Credit Facility | Line of Credit | Subsequent Event | Maximum | |||||
Subsequent Event [Line Items] | |||||
Line of credit facility, unused capacity, commitment fee percentage | 0.50% | ||||
Revolving Credit Facility | Line of Credit | Subsequent Event | Federal Funds Rate | |||||
Subsequent Event [Line Items] | |||||
Interest rate added to variable rate basis | 0.50% | ||||
Revolving Credit Facility | Line of Credit | Subsequent Event | SOFR | |||||
Subsequent Event [Line Items] | |||||
Interest rate added to variable rate basis | 1% | ||||
Revolving Credit Facility | Line of Credit | Subsequent Event | Credit Spread Adjustment | |||||
Subsequent Event [Line Items] | |||||
Interest rate added to variable rate basis | 0.10% | ||||
Revolving Credit Facility | Line of Credit | Subsequent Event | ABR Applicable Margin | Minimum | |||||
Subsequent Event [Line Items] | |||||
Interest rate added to variable rate basis | 1.50% | ||||
Revolving Credit Facility | Line of Credit | Subsequent Event | ABR Applicable Margin | Maximum | |||||
Subsequent Event [Line Items] | |||||
Interest rate added to variable rate basis | 2.50% | ||||
Revolving Credit Facility | Line of Credit | Subsequent Event | Term SOFR Loans, Applicable Margin | Minimum | |||||
Subsequent Event [Line Items] | |||||
Interest rate added to variable rate basis | 2.50% | ||||
Revolving Credit Facility | Line of Credit | Subsequent Event | Term SOFR Loans, Applicable Margin | Maximum | |||||
Subsequent Event [Line Items] | |||||
Interest rate added to variable rate basis | 3.50% | ||||
Letters of Credit | Line of Credit | |||||
Subsequent Event [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 200 | ||||
Letters of Credit | Line of Credit | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 250 |