Cover
Cover | 6 Months Ended |
Jun. 30, 2024 shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 2024 |
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 |
Entity Address, Address Line Two | 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 | 67,876,933 |
Entity Central Index Key | 0001609253 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2024 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 1,031 | $ 496 |
Trade receivables | 175 | 216 |
Inventories | 56 | 72 |
Assets held for sale | 13 | 13 |
Receivable from affiliate | 61 | 19 |
Other current assets, net | 103 | 113 |
Total current assets | 1,439 | 929 |
PROPERTY, PLANT AND EQUIPMENT | 3,548 | 3,437 |
Accumulated depreciation, depletion and amortization | (775) | (667) |
Total property, plant and equipment, net | 2,773 | 2,770 |
INVESTMENT IN UNCONSOLIDATED SUBSIDIARY | 17 | 19 |
DEFERRED INCOME TAXES | 139 | 132 |
OTHER NONCURRENT ASSETS | 122 | 148 |
TOTAL ASSETS | 4,490 | 3,998 |
CURRENT LIABILITIES | ||
Accounts payable | 248 | 245 |
Liabilities associated with assets held for sale | 5 | 5 |
Accrued liabilities | 340 | 366 |
Total current liabilities | 593 | 616 |
NONCURRENT LIABILITIES | ||
Long-term debt, net | 1,161 | 540 |
Asset retirement obligations | 436 | 422 |
Other long-term liabilities | 248 | 201 |
STOCKHOLDERS' EQUITY | ||
Preferred stock (20,000,000 shares authorized at $0.01 par value) no shares outstanding at June 30, 2024 and December 31, 2023 | 0 | 0 |
Common stock (200,000,000 shares authorized at $0.01 par value) (84,510,451 and 83,557,800 shares issued; 67,876,933 and 68,693,885 shares outstanding at June 30, 2024 and December 31, 2023) | 1 | 1 |
Treasury stock (16,633,518 shares held at cost at June 30, 2024 and 14,863,915 shares held at cost at December 31, 2023) | (697) | (604) |
Additional paid-in capital | 1,302 | 1,329 |
Retained earnings | 1,374 | 1,419 |
Accumulated other comprehensive income | 72 | 74 |
Total stockholders' equity | 2,052 | 2,219 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 4,490 | $ 3,998 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
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) | 84,510,451 | 83,557,800 |
Common stock, outstanding shares (in shares) | 67,876,933 | 68,693,885 |
Treasury stock (in shares) | 16,633,518 | 14,863,915 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
REVENUES | ||||
Oil, natural gas and NGL sales | $ 412 | $ 447 | $ 841 | $ 1,162 |
Net gain (loss) from commodity derivatives | 5 | 31 | (66) | 73 |
Total operating revenues | 514 | 591 | 968 | 1,615 |
OPERATING EXPENSES | ||||
Operating costs | 156 | 186 | 332 | 440 |
General and administrative expenses | 63 | 71 | 120 | 136 |
Depreciation, depletion and amortization | 53 | 56 | 106 | 114 |
Asset impairments | 13 | 0 | 13 | 3 |
Taxes other than on income | 39 | 42 | 77 | 84 |
Exploration expense | 0 | 1 | 1 | 2 |
Accretion expense | 13 | 11 | 25 | 23 |
Carbon management business expenses | 15 | 8 | 23 | 13 |
Other operating expenses, net | 51 | 13 | 88 | 21 |
Total operating expenses | 477 | 444 | 941 | 1,082 |
Gain on asset divestitures | 1 | 0 | 7 | 7 |
OPERATING INCOME | 38 | 147 | 34 | 540 |
NON-OPERATING (EXPENSES) INCOME | ||||
Interest and debt expense | (17) | (14) | (30) | (28) |
Loss from investment in unconsolidated subsidiary | (4) | (1) | (7) | (3) |
Other non-operating (loss) income | (6) | 3 | (5) | 2 |
INCOME (LOSS) BEFORE INCOME TAXES | 11 | 135 | (8) | 511 |
Income tax (provision) benefit | (3) | (38) | 6 | (113) |
NET INCOME (LOSS) | $ 8 | $ 97 | $ (2) | $ 398 |
Net income (loss) per share | ||||
Basic (in dollars per share) | $ 0.12 | $ 1.39 | $ (0.03) | $ 5.65 |
Diluted (in dollars per share) | $ 0.11 | $ 1.35 | $ (0.03) | $ 5.47 |
Weighted-average common shares outstanding | ||||
Basic (in shares) | 68.1 | 69.7 | 68.6 | 70.5 |
Diluted (in shares) | 70 | 71.9 | 68.6 | 72.7 |
Revenue from marketing of purchased commodities | ||||
REVENUES | ||||
Revenue not from contract with customer | $ 51 | $ 72 | $ 125 | $ 259 |
OPERATING EXPENSES | ||||
Costs of sales | 43 | 27 | 97 | 151 |
Electricity sales | ||||
REVENUES | ||||
Revenue not from contract with customer | 36 | 34 | 51 | 102 |
Interest and other revenue | ||||
REVENUES | ||||
Revenue not from contract with customer | 10 | 7 | 17 | 19 |
Electricity generation expenses | ||||
OPERATING EXPENSES | ||||
Costs of sales | 14 | 13 | 22 | 62 |
Transportation costs | ||||
OPERATING EXPENSES | ||||
Costs of sales | $ 17 | $ 16 | $ 37 | $ 33 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income (loss) | $ 8 | $ 97 | $ (2) | $ 398 | |
Amortization of prior service cost credit included in net periodic benefit cost, net of tax(a) | [1] | 0 | 0 | (2) | 0 |
Comprehensive income (loss) | $ 8 | $ 97 | $ (4) | $ 398 | |
[1] (a) Tax effects of the amortization of the prior service cost credit was insignificant for the three and six months ended June 30, 2024. |
Condensed Consolidated Statem_3
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, 2022 | $ 1,864 | $ 1 | $ (461) | $ 1,305 | $ 938 | $ 81 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 398 | 398 | ||||
Share-based compensation | 14 | 14 | ||||
Repurchases of common stock | (123) | (123) | ||||
Cash dividend | (41) | (41) | ||||
Shares cancelled for taxes | (2) | (2) | ||||
Ending balance at Jun. 30, 2023 | 2,110 | 1 | (584) | 1,317 | 1,295 | 81 |
Beginning balance at Mar. 31, 2023 | 2,092 | 1 | (520) | 1,311 | 1,219 | 81 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 97 | 97 | ||||
Share-based compensation | 7 | 7 | ||||
Repurchases of common stock | (64) | (64) | ||||
Cash dividend | (21) | (21) | ||||
Shares cancelled for taxes | (1) | (1) | ||||
Ending balance at Jun. 30, 2023 | 2,110 | 1 | (584) | 1,317 | 1,295 | 81 |
Beginning balance at Dec. 31, 2023 | 2,219 | 1 | (604) | 1,329 | 1,419 | 74 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (2) | (2) | ||||
Share-based compensation | 14 | 14 | ||||
Repurchases of common stock | (93) | (93) | ||||
Cash dividend | (43) | (43) | ||||
Shares cancelled for taxes | (42) | (42) | ||||
Other comprehensive income, net of tax | (2) | (2) | ||||
Other | 1 | 1 | ||||
Ending balance at Jun. 30, 2024 | 2,052 | 1 | (697) | 1,302 | 1,374 | 72 |
Beginning balance at Mar. 31, 2024 | 2,093 | 1 | (662) | 1,295 | 1,387 | 72 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 8 | 8 | ||||
Share-based compensation | 7 | 7 | ||||
Repurchases of common stock | (35) | (35) | ||||
Cash dividend | (21) | (21) | ||||
Shares cancelled for taxes | (1) | (1) | ||||
Other | 1 | 1 | ||||
Ending balance at Jun. 30, 2024 | $ 2,052 | $ 1 | $ (697) | $ 1,302 | $ 1,374 | $ 72 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Dividends declared, common stock (in dollars per share) | $ 0.31 | $ 0.31 | $ 0.2825 | $ 0.2825 | $ 0.31 | $ 0.2825 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
CASH FLOW FROM OPERATING ACTIVITIES | ||||
Net income (loss) | $ 8 | $ 97 | $ (2) | $ 398 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Depreciation, depletion and amortization | 53 | 56 | 106 | 114 |
Deferred income tax provision (benefit) | 3 | 9 | (6) | 56 |
Asset impairments | 13 | 0 | 13 | 3 |
Net (gain) loss from commodity derivatives | (4) | (31) | 68 | (73) |
Net payments on settled commodity derivatives | (10) | (63) | (24) | (128) |
Gain on asset divestitures | (1) | 0 | (7) | (7) |
Other non-cash charges to income, net | 46 | 30 | 52 | 51 |
Changes in operating assets and liabilities, net | (11) | 10 | (16) | 4 |
Net cash provided by operating activities | 97 | 108 | 184 | 418 |
CASH FLOW FROM INVESTING ACTIVITIES | ||||
Capital investments | (34) | (39) | (88) | (86) |
Changes in accrued capital investments | 6 | (2) | 2 | (15) |
Proceeds from asset divestitures, net | 2 | 0 | 12 | 0 |
Acquisitions | (6) | (1) | (6) | (1) |
Other, net | (1) | (2) | (2) | (3) |
Net cash used in investing activities | (33) | (44) | (82) | (105) |
CASH FLOW FROM FINANCING ACTIVITIES | ||||
Proceeds from Revolving Credit Facility | 30 | 0 | ||
Proceeds from 2029 Senior Notes, net | 590 | 0 | ||
Repurchases of common stock | (35) | (64) | (93) | (123) |
Common stock dividends | (22) | (20) | (43) | (40) |
Payments on equity-settled awards | 0 | 0 | (4) | 0 |
Issuance of common stock | 2 | 0 | 3 | 1 |
Bridge loan commitments | 0 | 0 | (5) | 0 |
Debt amendment costs | 0 | (8) | (3) | (8) |
Shares cancelled for taxes | (1) | (1) | (42) | (2) |
Net cash provided by (used in) financing activities | 564 | (93) | 433 | (172) |
Increase (decrease) in cash and cash equivalents | 628 | (29) | 535 | 141 |
Cash and cash equivalents—beginning of period | 403 | 477 | 496 | 307 |
Cash and cash equivalents—end of period | $ 1,031 | $ 448 | $ 1,031 | $ 448 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2024 | |
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 are committed to environmental stewardship while safely providing local, responsibly sourced energy. We are also focused on maximizing the value of our land, mineral ownership, and energy expertise for decarbonization by developing carbon capture and storage (CCS) and other emissions-reducing projects. 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 as of the date presented. On July 1, 2024, we closed on transactions contemplated by the definitive agreement and plan of merger (Merger Agreement) to obtain all of the ownership interests in Aera Energy, LLC (Aera) with an effective date of January 1, 2024 (Aera Merger). As such, the accompanying unaudited financial statements do not contain the results of Aera for the periods indicated. 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, our investment in an unconsolidated subsidiary ( Carbon TerraVault JV HoldCo, LLC) was initially recognized at cost and then is adjusted for our proportionate share of income or loss in addition to 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, 2023 (2023 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 for the fair value of our debt. Certain prior period balances related to natural gas liquid (NGL) marketing activities have been reclassified to conform to our 2024 presentation. For the six months ended June 30, 2023, we reclassified $3 million related to NGL storage activities from other revenue to revenue from marketing of purchased commodities on our condensed consolidated statement of operations. |
INVESTMENT IN UNCONSOLIDATED SU
INVESTMENT IN UNCONSOLIDATED SUBSIDIARY AND RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2024 | |
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 BGTF Sierra Aggregator LLC (Brookfield) for the further development of a carbon management business in California (Carbon TerraVault JV). 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 variable interest entity (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 installments with the last two installments subject to the achievement of certain milestones. We achieved the milestone for the second installment in March 2024. The third installment will be sized based on permitted storage capacity. Brookfield contributed the first $46 million installment of their initial investment to the Carbon TerraVault JV in 2022 and the second $46 million installment in April 2024. The remaining balance of the initial installment plus the second installment may, at our sole discretion, be distributed to us or used to satisfy future capital contributions, among other items. Because the parties have certain put and call rights (repurchase features) with respect to the 26R reservoir if certain milestones are not met, the first and second installment of the initial investment by Brookfield is reflected as a contingent liability included in other long-term liabilities on our condensed consolidated balance sheets. The contingent liability was $102 million and $52 million at June 30, 2024 and December 31, 2023 , respectively, inclusive of interest. The tables below present the summarized financial information related to our equity method investment in the Carbon TerraVault JV (and do not include amounts we have incurred related to development of our carbon management business, Carbon TerraVault), along with related party transactions for the periods presented. June 30, December 31, 2024 2023 (in millions) Investment in unconsolidated subsidiary (a) $ 17 $ 19 Receivable from affiliate (b) $ 61 $ 19 Other long-term liabilities - Contingent liability (related to Carbon TerraVault JV put and call rights) $ 102 $ 52 (a) Reflects our investment less losses allocated to us of $7 million and $9 million for the six months ended June 30, 2024 and the year ended December 31, 2023 , respectively. (b) The amount of Brookfield's contributions available to us and amounts due to us under the MSA (described further below) are reported as receivable from affiliate. At June 30, 2024 , the amount of $61 million includes the remaining $58 million of Brookfield's first and second installments of their initial investment which is available to us and $3 million related to the MSA and vendor reimbursements. At December 31, 2023 , the amount of $19 million includes $17 million remaining of Brookfield's initial contribution available to us and $2 million related to the MSA and vendor reimbursements. Three months ended Six months ended 2024 2023 2024 2023 (in millions) (in millions) Loss from investment in unconsolidated subsidiary $ 4 $ 1 $ 7 $ 3 General and administrative expenses (a) $ 3 $ 2 $ 5 $ 3 (a) General and administrative expenses on our condensed consolidated statements of operations have been reduced by this amount which we have invoiced to the Carbon TerraVault JV under the MSA for back-office operational and commercial services. We are also performing well abandonment work at our Elk Hills field as part of the permitting process for injection of CO 2 at the 26R reservoir. During the three and six months ended June 30, 2024, we performed abandonment work and sought reimbursement in the amounts of $5 million and $9 million, respectively, from the Carbon TerraVault JV. During the three and six months ended June 30, 2023, we performed abandonment work and sought reimbursement in the amounts of $1 million and $2 million, respectively, from the Carbon TerraVault JV. The Carbon TerraVault JV has an option to participate in certain projects that involve the capture, transportation and storage of CO 2 in California. This option expires upon the earlier of (1) August 2027, (2) when a final investment decision has been approved by the Carbon TerraVault JV for storage projects representing in excess of 5 million metric tons per annum (MMTPA) in the aggregate, or (3) when Brookfield has made contributions to the joint venture in excess of $500 million (unless Brookfield elects to increase its commitment). 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. |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT As of June 30, 2024 and December 31, 2023, our long-term debt consisted of the following: June 30, December 31, 2024 2023 Interest Rate Maturity (in millions) Revolving Credit Facility $ 30 $ — SOFR plus 2.50%-3.50% ABR plus 1.50%-2.50% (a) July 31, 2027 (b) 2026 Senior Notes 545 545 7.125% February 1, 2026 2029 Senior Notes 600 — 8.250% June 15, 2029 Principal amount $ 1,175 $ 545 Unamortized debt discount and debt issuance costs (14) (5) Long-term debt, net $ 1,161 $ 540 (a) 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 a 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% . (b) The Revolving Credit Facility is subject to a springing maturity to August 4, 2025 if any of our 2026 Senior Notes are outstanding on that date. On April 26, 2023, we entered into an Amended and Restated Credit Agreement (Revolving Credit Facility) with Citibank, N.A., as administrative agent, and certain other lenders, which amended and restated in its entirety the prior credit agreement dated October 27, 2020. As of June 30, 2024, our Revolving Credit Facility consisted of a senior revolving loan facility with an aggregate commitment of $630 million. Our Revolving Credit Facility also included a sub-limit of $250 million for the issuance of letters of credit. As of June 30, 2024, $130 million letters of credit were issued to support ordinary course marketing, insurance, regulatory and other matters. As of June 30, 2024, we had $470 million of availability on our Revolving Credit Facility after taking into account a draw of $30 million and $130 million in letters of credit outstanding. The borrowing base is redetermined semi-annually and the next determination will be on or about October 1, 2024. In February 2024, in connection with the Aera Merger, we entered into a second amendment to our Revolving Credit Facility to, among other things, permit the incurrence of indebtedness under a bridge loan facility. We did not utilize a bridge loan facility in connection with the Aera Merger and wrote-off $6 million of bridge loan and commitment fees during the three months ended June 30, 2024 included in other non-operating (loss) income on our condensed consolidated statement of operations. In March 2024, we entered into a third amendment to our Revolving Credit Facility. This amendment facilitated certain matters with respect to the Aera Merger, including the postponement of the regular spring borrowing base redetermination until the fall of 2024 and certain other amendments. On July 1, 2024, we entered into a fourth amendment to our Revolving Credit Facility. This amendment increased the aggregate revolving commitments available under the Revolving Credit Facility from $630 million to $1.1 billion. The amount we are able to borrow under our Revolving Credit Facility is limited to the amount of these commitments. This amendment also increased the borrowing base from $1.2 billion to $1.5 billion, among other matters. For a discussion of the Aera Merger, see Note 13 Subsequent Events. 2029 Senior Notes On June 5, 2024, we completed an offering of $600 million in aggregate principal amount of 8.25% senior notes due 2029 (2029 Senior Notes). The terms of the 2029 Senior Notes are governed by the Indenture, dated as of June 5, 2024, by and among us, the guarantors and Wilmington Trust, National Association, as trustee (2029 Senior Notes Indenture). The net proceeds of $590 million, after $10 million of debt discount and issuance costs, were used along with available cash to repay all of Aera's outstanding debt at closing of the Aera Merger. See Note 13 Subsequent Events for more information on the closing of the Aera Merger. Security – Our 2029 Senior Notes are general unsecured obligations which are guaranteed on a senior unsecured basis by all of our existing subsidiaries that guarantee our obligations under the Revolving Credit Facility and our existing 2026 Senior Notes. Redemption – We may redeem the 2029 Senior Notes at any time on or after June 15, 2026 at the redemption prices of (i) 104.125% during the twelve-month period beginning on June 15, 2026, (ii) 102.063% during the twelve-month period beginning on June 15, 2027 and (iii) 100% after June 15, 2028 and before the maturity date. Prior to June 15, 2026, we may redeem up to 35% of the aggregate principal amount of the 2029 Senior Notes with an amount of cash not greater than the net cash proceeds from certain equity offerings at the redemption price of 108.250%. In addition, before June 15, 2026, we may redeem some or all of the 2029 Senior Notes at a redemption price equal to 100% of the aggregate principal amount of the 2029 Senior Notes redeemed, plus the applicable premium as specified in the 2029 Senior Notes Indenture and accrued and unpaid interest, if any, to, but excluding, the redemption date. In addition, our 2029 Senior Notes were subject to a special mandatory redemption in certain circumstances if the Aera Merger did not close. As of June 30, 2024, it was not probable that this redemption feature would be triggered and it is no longer effective. Other Covenants – Our 2029 Senior Notes include covenants that, among other things, restrict our ability to incur additional indebtedness, issue preferred stock, grant liens, make asset sales and investments, repay existing indebtedness, make subsidiary distributions, and enter into transactions that would result in fundamental changes. Events of Default and Change of Control – Our 2029 Senior Notes provide for certain triggering events, including upon a change of control, as defined in the indenture, that would require us to repurchase all or any part of the 2029 Senior Notes at a price equal to 101% of the aggregate principal amount plus accrued and unpaid interest. Fair Value We estimate that the fair value of our variable rate debt approximates its carrying value because the interest rate approximates current market rates. As shown in the table below, we estimate fair value of our fixed rate Senior Notes based on known prices from market transactions (using Level 1 inputs on the fair value hierarchy). June 30, December 31, 2024 2023 (in millions) Variable rate debt $ 30 $ — Fixed rate debt 2026 Senior Notes 547 554 2029 Senior Notes 612 — Fair Value of Long-Term Debt $ 1,189 $ 554 Other As of June 30, 2024, we were in compliance with all financial and other debt covenants under our Revolving Credit Facility, 2026 Senior Notes and 2029 Senior Notes. For more information on our 2026 Senior Notes, see Part II, Item 8 – Financial Statements and Supplementary Data, Note 4 Debt |
LAWSUITS, CLAIMS, COMMITMENTS A
LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2024 | |
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 we determine it is probable that a liability has been incurred and the liability can be reasonably estimated. Reserve balances for these items at June 30, 2024 and December 31, 2023 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. In October 2020, Signal Hill Services, Inc. defaulted on its decommissioning obligations associated with two offshore platforms. The Bureau of Safety and Environmental Enforcement (BSEE) determined that former lessees, including our former parent, Occidental Petroleum Corporation (Oxy) with a 37.5% share, are responsible for accrued decommissioning obligations associated with these offshore platforms. Oxy sold its interest in the platforms approximately 30 years ago and it is our understanding that Oxy has not had any connection to the operations since that time and was challenging BSEE's order. Oxy notified us of the claim under the indemnification provisions of the Separation and Distribution Agreement between us and Oxy. In September 2021, we accepted the indemnification claim from Oxy and are challenging the order from BSEE. In March 2024, we entered into a cost sharing agreement with former lessees to share in ongoing maintenance costs during the pendency of the challenge to the BSEE order. We estimate our ongoing share of maintenance costs for the platforms could be approximately $5 million per year. Due to the preliminary stage of the process, no cost estimates to abandon the offshore platforms have been determined. |
DERIVATIVES
DERIVATIVES | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES We continue to 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 also enter into natural gas swaps for the purpose of hedging our fuel consumption at one of our steamfloods as well as swaps for natural gas purchases and sales related to our marketing activities. We did not have any derivative instruments designated as accounting hedges as of and for the three and six months ended June 30, 2024 and 2023. Unless otherwise indicated, we use the term "hedge" to describe derivative instruments that are designed to implement our hedging strategy. Summary of Derivative Contracts We held the following Brent-based contracts as of June 30, 2024: Q3 Q4 Q1 Q2 2H Sold Calls Barrels per day 30,000 29,000 30,000 30,000 29,500 Weighted-average price per barrel $ 90.07 $ 90.07 $ 87.08 $ 87.08 $ 87.11 Purchased Puts Barrels per day 30,000 29,000 30,000 30,000 29,500 Weighted-average price per barrel $ 65.17 $ 65.17 $ 61.67 $ 61.67 $ 61.69 Swaps Barrels per day 8,875 8,875 5,250 3,500 3,250 Weighted-average price per barrel $ 80.10 $ 79.94 $ 76.27 $ 72.50 $ 72.50 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. • Purchased puts – we receive settlement payments for prices below 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. At June 30, 2024, we also held the following swaps to hedge purchased natural gas used in our operations as shown in the table below. Q3 Q4 Swaps: MMBtu per day 10,000 10,000 Weighted-average price per MMBtu $ 5.65 $ 5.65 We also have a limited number of derivative contracts related to our natural gas marketing activities that are intended to lock in locational price spreads. These derivative contracts are not significant to our results of operations or financial statements taken as a whole. Fair Value of Derivatives Derivative instruments not designated as hedging instruments are required to be recorded on the balance sheet at fair value. We report gains and losses on our derivative contracts which hedge commodity price risk related to our oil production and our marketing activities in operating revenue on our consolidated statements of operations as shown in the table below: Three months ended Six months ended 2024 2023 2024 2023 (in millions) (in millions) Non-cash commodity derivative gain (loss) $ 11 $ 94 $ (48) $ 201 Settlements and premiums (6) (63) (18) (128) Net gain (loss) from commodity derivatives $ 5 $ 31 $ (66) $ 73 We report gains and losses on our derivative contracts for purchased natural gas used to generate steam for our steamflood operations as a component of operating expense on our consolidated statement of operations. For the three and six months ended June 30, 2024, we recognized a net loss of $1 million (which includes a non-cash gain of $3 million and $4 million of settlement payments) and a net loss of $2 million (which includes a non-cash gain of $4 million and $6 million of settlement payments) in other operating expenses, net on our consolidated statement of operations. We did not have derivative contracts related to purchased natural gas for our marketing activities during the three and six months ended June 30, 2023. 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. The following tables present the fair values of our outstanding commodity derivatives as of June 30, 2024 and December 31, 2023: June 30, 2024 Classification Gross Amounts at Fair Value Netting Net Fair Value (in millions) Other current assets, net $ 13 $ (13) $ — Other noncurrent assets 15 (15) — Current liabilities (41) 13 (28) Noncurrent liabilities (25) 15 (10) $ (38) $ — $ (38) December 31, 2023 Classification Gross Amounts at Fair Value Netting Net Fair Value (in millions) Other current assets, net $ 39 $ (18) $ 21 Other noncurrent assets 38 (32) 6 Current liabilities (26) 18 (8) Noncurrent liabilities (34) 32 (2) $ 17 $ — $ 17 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The following table presents the components of our total income tax provision: Three months ended Six months ended 2024 2023 2024 2023 (in millions) (in millions) Income (loss) before income taxes $ 11 $ 135 $ (8) $ 511 Current income tax provision — 29 — 57 Deferred income tax provision (benefit) 3 9 (6) 56 Total income tax provision (benefit) $ 3 $ 38 $ (6) $ 113 Our annual effective tax rate of 27% differed from the U.S. federal statutory tax rate of 21% for the three months ended June 30, 2024 primarily due to state taxes. Our annual effective tax rate of 75% differed from the U.S. federal statutory rate of 21% for the six months ended June 30, 2024 primarily due to the settlement of stock-based compensation awards in the first quarter of 2024 at a share price which exceeded the grant date value used to recognize compensation expense for financial accounting. This difference resulted in a tax benefit and had the effect of increasing our effective tax rate for the six months ended June 30, 2024. Our annual effective tax rate of 28% differed from the U.S. federal statutory tax rate of 21% for the three and six months ended June 30, 2023 primarily due to state taxes. During the six months ended June 30, 2023 we recognized a tax benefit for the release of a valuation allowance, which was recognized in 2022. See Part II, Item 8 – Financial Statements and Supplementary Data, Note 7 Income Taxes in our 2023 Annual Report for additional information. |
DIVESTITURES, ACQUISITIONS AND
DIVESTITURES, ACQUISITIONS AND ASSETS HELD FOR SALE | 6 Months Ended |
Jun. 30, 2024 | |
Acquisitions And Divestitures [Abstract] | |
DIVESTITURES, ACQUISITIONS AND ASSETS HELD FOR SALE | DIVESTITURES, ACQUISITIONS AND ASSETS HELD FOR SALE Divestitures Fort Apache in Huntington Beach In March 2024, we sold our 0.9-acre Fort Apache real estate property in Huntington Beach, California for purchase price of $10 million and recognized a $6 million gain. Other During the three and six months ended June 30, 2024, we sold non-core assets recognizing a $1 million gain. During the six months ended June 30, 2023, we sold a non-producing asset in exchange for the assumption of liabilities, recognizing a $7 million gain related to the liability reduction. Acquisitions In the three and six months ended June 30, 2024, we acquired land for our carbon management business for approximately $6 million. In the three and six months ended June 30, 2023, we acquired land for our carbon management business for approximately $1 million. Assets Held for Sale Ventura Basin Transactions During 2021 and 2022, we entered into transactions to sell our Ventura basin assets. The transaction contemplates multiple closings that are subject to customary closing conditions. The transfer of the remaining assets in the Ventura basin was approved in June 2024 by the State Lands Commission. We expect to close on the sale of these assets in the second half of 2024. 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 June 30, 2024 and December 31, 2023. See Part II, Item 8 – Financial Statements and Supplementary Data, Note 8 Divestitures and Acquisitions in our 2023 Annual Report for additional information on the Ventura basin transactions. Other |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY Share Repurchase Program Our Board of Directors has authorized a Share Repurchase Program to acquire up to $1.35 billion of our common stock through December 31, 2025. The repurchases may be effected from time-to-time through open market purchases, privately negotiated transactions, Rule 10b5-1 plans, accelerated stock repurchases, derivative contracts or otherwise in compliance with Rule 10b-18, subject to market conditions. The Share Repurchase Program does not obligate us to repurchase any dollar amount or number of shares and our Board of Directors may modify, suspend or discontinue authorization of the program at any time. The following is a summary of our share repurchases, which are held as treasury stock, for the periods presented: Total Number of Shares Purchased Total Value of Shares Purchased Average Price Paid per Share (number of shares) (in millions) ($ per share) Three months ended June 30, 2023 1,618,746 $ 64 $ 39.12 Three months ended June 30, 2024 703,839 $ 35 $ 49.71 Six months ended June 30, 2023 3,042,510 $ 123 $ 40.12 Six months ended June 30, 2024 1,769,603 $ 93 $ 51.85 Inception of Program (May 2021) through June 30, 2024 16,633,518 $ 697 $ 41.74 Note: The total value of shares purchased includes approximately $1 million in both the six months ended June 30, 2024 and 2023 related to excise taxes on share repurchases, which was effective beginning on January 1, 2023. Commissions paid on share repurchases were not significant in all periods presented. Dividends Our Board of Directors declared the following cash dividends for each of the periods presented. Total Dividend Rate Per Share (in millions) ($ per share) 2024 Three months ended March 31, 2024 $ 21 $ 0.31 Three months ended June 30, 2024 22 $ 0.31 Six months ended June 30, 2024 $ 43 2023 Three months ended March 31, 2023 $ 20 $ 0.2825 Three months ended June 30, 2023 20 $ 0.2825 Six months ended June 30, 2023 $ 40 In addition to dividends on our common stock shown in the table above, we paid $4 million on equity-settled stock-based compensation awards in the six months ended June 30, 2024 . 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 13 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 2024. As of June 30, 2024, we had outstanding warrants exercisable into 4,119,144 shares of our common stock (subject to adjustments pursuant to the terms of the warrants). During the three and six months ended June 30, 2024, we issued 34,474 and 53,325 shares of our common stock in exchange for warrants. During the three and six months ended June 30, 2023, we issued an insignificant number of shares of our common stock in exchange for warrants. See Part II, Item 8 – Financial Statements and Supplementary Data, Note 10 Stockholders' Equity in our 2023 Annual Report for additional information on the terms of our warrants. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2024 | |
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 and six months ended June 30, 2024 and 2023. 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 and six months ended June 30, 2024 and 2023: Three months ended Six months ended 2024 2023 2024 2023 (in millions, except per-share amounts) Numerator for Basic and Diluted EPS Net income (loss) $ 8 $ 97 $ (2) $ 398 Denominator for Basic EPS Weighted-average shares 68.1 69.7 68.6 70.5 Potential common shares, if dilutive: Warrants 1.2 0.5 — 0.5 Restricted stock units 0.4 0.9 — 0.9 Performance stock units 0.3 0.8 — 0.8 Denominator for Diluted EPS Weighted-average shares 70.0 71.9 68.6 72.7 EPS Basic $ 0.12 $ 1.39 $ (0.03) $ 5.65 Diluted $ 0.11 $ 1.35 $ (0.03) $ 5.47 The following table presents potentially dilutive weighted-average common shares which were excluded from the denominator for diluted EPS in periods of losses: Three months ended Six months ended 2024 2023 2024 2023 (in millions) Shares issuable upon exercise of warrants — — 4.2 — Shares issuable upon settlement of RSUs — — 0.8 — Shares issuable upon settlement of PSUs — — 1.0 — Total antidilutive shares — — 6.0 — |
SUPPLEMENTAL ACCOUNT BALANCES
SUPPLEMENTAL ACCOUNT BALANCES | 6 Months Ended |
Jun. 30, 2024 | |
SUPPLEMENTAL INFORMATION [Abstract] | |
SUPPLEMENTAL ACCOUNT BALANCES | SUPPLEMENTAL ACCOUNT BALANCES Restricted cash — Cash and cash equivalents at June 30, 2024 included an insignificant amount that was restricted under oil and natural gas liens in favor of one of our suppliers. We had no restricted cash at December 31, 2023. Revenues — 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 Six months ended 2024 2023 2024 2023 (in millions) (in millions) Oil $ 353 $ 362 $ 701 $ 752 Natural gas 14 43 46 306 NGLs 45 42 94 104 Oil, natural gas and NGL sales $ 412 $ 447 $ 841 $ 1,162 From time-to-time, we enter into transactions for third-party production, which we report as revenue from marketing of purchased commodities on our condensed consolidated statements of operations. Revenues from marketing of purchased commodities primarily results from the storage or transportation of natural gas to take advantage of differences in pricing or location, or in the quality of products other than natural gas. The following table provides disaggregated revenue for sales to customers related to our marketing activities: Three months ended Six months ended 2024 2023 2024 2023 (in millions) Oil $ 28 $ — $ 48 $ — Natural gas 23 72 71 256 NGLs — — 6 3 Revenue from marketing of purchased commodities $ 51 $ 72 $ 125 $ 259 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: June 30, December 31, 2024 2023 (in millions) Materials and supplies $ 54 $ 68 Finished goods 2 4 Inventories $ 56 $ 72 In the three and six months ended June 30, 2024, we recorded an impairment of excess and obsolete materials and supplies of $13 million. The impairment related to the write-down of obsolete materials and supplies to fair value using Level 3 inputs in the fair value hierarchy. Other current assets, net — Other current assets, net include the following: June 30, December 31, 2024 2023 (in millions) Net amounts due from joint interest partners (a) $ 48 $ 43 Fair value of commodity derivative contracts — 21 Prepaid expenses 16 19 Greenhouse gas allowances 12 12 Income tax receivable 8 — Other 19 18 Other current assets, net $ 103 $ 113 (a) Included in the June 30, 2024 and December 31, 2023 net amounts due from joint interest partners are allowances of $3 million. Other noncurrent assets — Other noncurrent assets include the following: June 30, December 31, 2024 2023 (in millions) Operating lease right-of-use assets $ 83 $ 73 Deferred financing costs - Revolving Credit Facility 12 11 Emission reduction credits 11 11 Prepaid power plant maintenance 2 34 Fair value of commodity derivative contracts — 6 Deposits and other 14 13 Other noncurrent assets $ 122 $ 148 Accrued liabilities — Accrued liabilities include the following: June 30, December 31, 2024 2023 (in millions) Employee-related costs $ 69 $ 82 Taxes other than on income 36 35 Asset retirement obligations 77 99 Interest 21 18 Operating lease liability 19 15 Fair value of derivative contracts 28 8 Premiums due on commodity derivative contracts 13 21 Liability for settlement payments on commodity derivative contracts 2 8 Amounts due under production-sharing contracts 16 5 Signal Hill maintenance 2 12 Income taxes payable — 18 Other 57 45 Accrued liabilities $ 340 $ 366 Other long-term liabilities — Other long-term liabilities includes the following: June 30, December 31, 2024 2023 (in millions) Compensation-related liabilities $ 35 $ 38 Postretirement benefit plan 33 36 Operating lease liability 55 55 Fair value of commodity derivative contracts 10 2 Premiums due on commodity derivative contracts 7 10 Contingent liability (related to Carbon TerraVault JV put and call rights) 102 52 Other 6 8 Other long-term liabilities $ 248 $ 201 General and administrative expenses — The table below shows G&A expenses for our exploration and production business (including unallocated corporate overhead and other) separately from our carbon management business. The amounts shown for our carbon management business are net of amounts invoiced by us under the MSA with the Carbon TerraVault JV. See Note 2 Investment in Unconsolidated Subsidiary and Related Party Transactions for more information on the Carbon TerraVault JV. Three months ended Six months ended 2024 2023 2024 2023 (in millions) (in millions) Exploration and production, corporate and other $ 60 $ 68 $ 115 $ 130 Carbon management business 3 3 5 6 Total general and administrative expenses $ 63 $ 71 $ 120 $ 136 |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 6 Months Ended |
Jun. 30, 2024 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION Supplemental disclosures to our condensed consolidated statements of cash flows, excluding leases and ARO, are presented below: Three months ended Six months ended 2024 2023 2024 2023 (in millions) (in millions) Supplemental Cash Flow Information Interest paid, net of amount capitalized $ (1) $ 1 $ 19 $ 22 Income taxes paid $ 4 $ 51 $ 26 $ 51 Interest income $ 8 $ 6 $ 14 $ 9 Supplemental Disclosure of Non-cash Investing and Financing Activities Contribution to the Carbon TerraVault JV $ 5 $ 2 $ 5 $ 4 Issuance of shares for stock-based compensation awards $ 1 $ 2 $ 88 $ 2 Dividends accrued for stock-based compensation awards $ — $ 1 $ 1 $ 2 Excise tax on share repurchases $ — $ — $ 1 $ 1 |
CONDENSED CONSOLIDATING FINANCI
CONDENSED CONSOLIDATING FINANCIAL INFORMATION | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
CONDENSED CONSOLIDATING FINANCIAL INFORMATION | CONDENSED CONSOLIDATING FINANCIAL INFORMATION We have designated certain of our subsidiaries as Unrestricted Subsidiaries under the indenture governing our 2026 Senior Notes (2026 Senior Notes Indenture) and 2029 Senior Notes (2029 Senior Notes Indenture). Unrestricted Subsidiaries (as defined in the 2026 Senior Notes Indenture and 2029 Senior Notes Indenture) are subject to fewer restrictions under the indentures. We are required under the 2026 Senior Notes Indenture and 2029 Senior Notes Indenture to present the financial condition and results of operations of CRC and its Restricted Subsidiaries (as defined in the 2026 Senior Notes Indenture and 2029 Senior Notes Indenture) separate from the financial condition and results of operations of its Unrestricted Subsidiaries. The following condensed consolidating balance sheets as of June 30, 2024 and December 31, 2023 and the condensed consolidating statements of operations for the three and six months ended June 30, 2024 and 2023, as applicable, reflect the condensed consolidating financial information of CRC (Parent), our combined Unrestricted Subsidiaries, our combined Restricted Subsidiaries and the elimination entries necessary to arrive at the information for the Company on a consolidated basis. The financial information may not necessarily be indicative of the financial condition and results of operations had the Unrestricted Subsidiaries operated as independent entities. Condensed Consolidating Balance Sheets As of June 30, 2024 and December 31, 2023 As of June 30, 2024 Parent Combined Unrestricted Subsidiaries Combined Restricted Subsidiaries Eliminations Consolidated (in millions) Total current assets $ 1,055 $ 61 $ 323 $ — $ 1,439 Total property, plant and equipment, net 13 21 2,739 — 2,773 Investments in consolidated subsidiaries 2,461 (28) 1,361 (3,794) — Deferred tax asset 139 — — — 139 Investment in unconsolidated subsidiary — 17 — — 17 Other assets 14 49 59 — 122 TOTAL ASSETS $ 3,682 $ 120 $ 4,482 $ (3,794) $ 4,490 Total current liabilities 117 15 461 — $ 593 Long-term debt 1,161 — — — 1,161 Asset retirement obligations — — 436 — 436 Other long-term liabilities 72 126 50 — 248 Amounts due to (from) affiliates 280 44 (324) — — Total equity 2,052 (65) 3,859 (3,794) 2,052 TOTAL LIABILITIES AND EQUITY $ 3,682 $ 120 $ 4,482 $ (3,794) $ 4,490 As of December 31, 2023 Parent Combined Unrestricted Subsidiaries Combined Restricted Subsidiaries Eliminations Consolidated (in millions) Total current assets $ 511 $ 20 $ 398 $ — $ 929 Total property, plant and equipment, net 14 12 2,744 — 2,770 Investments in consolidated subsidiaries 2,311 (11) 1,347 (3,647) — Deferred tax asset 132 — — — 132 Investment in unconsolidated subsidiary — 19 — — 19 Other assets 12 36 100 — 148 TOTAL ASSETS $ 2,980 $ 76 $ 4,589 $ (3,647) $ 3,998 Total current liabilities 142 13 461 — $ 616 Long-term debt 540 — — — 540 Asset retirement obligations — — 422 — 422 Other long-term liabilities 79 73 49 — 201 Total equity 2,219 (10) 3,657 (3,647) 2,219 TOTAL LIABILITIES AND EQUITY $ 2,980 $ 76 $ 4,589 $ (3,647) $ 3,998 Condensed Consolidating Statement of Operations For the three and six months ended June 30, 2024 and 2023 Three months ended June 30, 2024 Parent Combined Unrestricted Subsidiaries Combined Restricted Subsidiaries Eliminations Consolidated (in millions) Total operating revenues $ 7 $ — $ 513 $ (6) $ 514 Total costs and other 77 18 388 (6) 477 Gain on asset divestitures — — 1 — 1 Non-operating income (loss) (21) (7) 1 — (27) INCOME (LOSS) BEFORE INCOME TAXES (91) (25) 127 — 11 Income tax benefit (3) — — — (3) NET INCOME (LOSS) $ (94) $ (25) $ 127 $ — $ 8 Three months ended June 30, 2023 Parent Combined Unrestricted Subsidiaries Combined Restricted Subsidiaries Eliminations Consolidated (in millions) Total operating revenues $ 5 $ — $ 586 $ — $ 591 Total costs and other 62 11 371 — 444 Non-operating (loss) income (11) (2) 1 — (12) (LOSS) INCOME BEFORE INCOME TAXES (68) (13) 216 — 135 Income tax provision (38) — — — (38) NET (LOSS) INCOME $ (106) $ (13) $ 216 $ — $ 97 Six months ended June 30, 2024 Parent Combined Unrestricted Subsidiaries Combined Restricted Subsidiaries Eliminations Consolidated (in millions) Total operating revenues $ 13 $ — $ 971 $ (16) $ 968 Total costs and other 136 28 793 (16) 941 Gain on asset divestitures — — 7 — 7 Non-operating (loss) income (34) (11) 3 — (42) (LOSS) INCOME BEFORE INCOME TAXES (157) (39) 188 — (8) Income tax provision 6 — — — 6 NET (LOSS) INCOME $ (151) $ (39) $ 188 $ — $ (2) Six months ended June 30, 2023 Parent Combined Unrestricted Subsidiaries Combined Restricted Subsidiaries Eliminations Consolidated (in millions) Total operating revenues $ 9 $ — $ 1,606 $ — $ 1,615 Total costs and other 112 19 951 — 1,082 Gain on asset divestitures — — 7 — 7 Non-operating (loss) income (27) (5) 3 — (29) (LOSS) INCOME BEFORE INCOME TAXES (130) (24) 665 — 511 Income tax provision (113) — — — (113) NET (LOSS) INCOME $ (243) $ (24) $ 665 $ — $ 398 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Aera Merger On July 1, 2024, we obtained all of the ownership interests in Aera. Aera is a leading operator of mature fields in California, primarily in the San Joaquin and Ventura basins, with high oil-weighted production. In connection with the closing of the Aera Merger, we issued 21,315,707 shares of common stock to the Aera owners and paid $990 million in connection with the extinguishment of Aera's outstanding indebtedness using the proceeds from the issuance of the 2029 Senior Notes and cash on hand. For more information on the 2029 Senior Notes and an amendment to our Revolving Credit Facility entered into at the closing of the Aera Merger, refer to Note 3 Debt. As of July 1, 2024, immediately following closing of the Aera Merger, our existing stockholders prior to the Aera Merger owned approximately 76% of CRC and the previous owners of Aera owned approximately 24% of CRC. In the three and six months ended June 30, 2024, we recognized $13 million and $26 million, respectively, of transaction and integration costs related to the Aera Merger which are included in other operating expenses, net on our condensed consolidated statement of operations. In July 2024, we recognized additional transaction costs of $27 million which were conditioned upon closing. We expect the Aera Merger to be accounted for as a business combination using the acquisition method of accounting in accordance with Accounting Standards Codification Topic 805, Business Combinations (ASC 805). Due to the proximity of the acquisition date to the filing of the Quarterly Report on Form 10-Q for the period ended June 30, 2024, the initial accounting for the Aera Merger is incomplete, and therefore we are unable to disclose certain information required by ASC 805, including the provisional amounts recognized as of the acquisition date for fair value of consideration transferred, each major class of assets acquired and liabilities assumed, and goodwill, if any, due to the ongoing status of the valuation. Dividend On August 2, 2024, our Board of Directors increased the cash dividend policy to anticipate a total annual dividend of $1.55 , payable to shareholders in quarterly increments of $0.3875 per share of common stock. The actual declaration of future cash dividends, and the establishment of record and payment dates, is subject to final determination by our Board of Directors each quarter after reviewing our financial performance and position. On August 5, 2024 , our Board of Directors declared a quarterly cash dividend of $0.3875 per share of common stock. The dividend is payable to shareholders of record at the close of business on August 30, 2024 and is expected to be paid on September 16, 2024 . |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net income (loss) | $ 8 | $ 97 | $ (2) | $ 398 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 6 Months Ended |
Jun. 30, 2024 shares | Jun. 30, 2024 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Francisco J. Leon [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On June 6 2024, Francisco J. Leon, our Chief Executive Officer and President, entered into a 10b5-1 trading arrangement intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). The trading arrangement will be in effect from September 5, 2024 to February 28, 2025. An aggregate of up to 35,000 shares may be sold pursuant to this trading arrangement. | |
Name | Francisco J. Leon | |
Title | Chief Executive Officer and President | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | June 6 2024 | |
Expiration Date | February 28, 2025 | |
Arrangement Duration | 176 days | |
Aggregate Available | 35,000 | 35,000 |
Noelle M. Repetti [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On June 13, 2024, Noelle M. Repetti, our Senior Vice President and Controller, entered into a 10b5-1 trading arrangement intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). The trading arrangement will be in effect from September 12, 2024 to February 28, 2025. An aggregate of up to 18,770 shares may be sold pursuant to this trading arrangement. | |
Name | Noelle M. Repetti | |
Title | Senior Vice President and Controller | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | June 13, 2024 | |
Expiration Date | February 28, 2025 | |
Arrangement Duration | 169 days | |
Aggregate Available | 18,770 | 18,770 |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
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 are committed to environmental stewardship while safely providing local, responsibly sourced energy. We are also focused on maximizing the value of our land, mineral ownership, and energy expertise for decarbonization by developing carbon capture and storage (CCS) and other emissions-reducing projects. 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 as of the date presented. On July 1, 2024, we closed on transactions contemplated by the definitive agreement and plan of merger (Merger Agreement) to obtain all of the ownership interests in Aera Energy, LLC (Aera) with an effective date of January 1, 2024 (Aera Merger). As such, the accompanying unaudited financial statements do not contain the results of Aera for the periods indicated. 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, our investment in an unconsolidated subsidiary ( Carbon TerraVault JV HoldCo, LLC) was initially recognized at cost and then is adjusted for our proportionate share of income or loss in addition to 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, 2023 (2023 Annual Report). |
INVESTMENT IN UNCONSOLIDATED _2
INVESTMENT IN UNCONSOLIDATED SUBSIDIARY AND RELATED PARTY TRANSACTIONS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 in the Carbon TerraVault JV (and do not include amounts we have incurred related to development of our carbon management business, Carbon TerraVault), along with related party transactions for the periods presented. June 30, December 31, 2024 2023 (in millions) Investment in unconsolidated subsidiary (a) $ 17 $ 19 Receivable from affiliate (b) $ 61 $ 19 Other long-term liabilities - Contingent liability (related to Carbon TerraVault JV put and call rights) $ 102 $ 52 (a) Reflects our investment less losses allocated to us of $7 million and $9 million for the six months ended June 30, 2024 and the year ended December 31, 2023 , respectively. (b) The amount of Brookfield's contributions available to us and amounts due to us under the MSA (described further below) are reported as receivable from affiliate. At June 30, 2024 , the amount of $61 million includes the remaining $58 million of Brookfield's first and second installments of their initial investment which is available to us and $3 million related to the MSA and vendor reimbursements. At December 31, 2023 , the amount of $19 million includes $17 million remaining of Brookfield's initial contribution available to us and $2 million related to the MSA and vendor reimbursements. Three months ended Six months ended 2024 2023 2024 2023 (in millions) (in millions) Loss from investment in unconsolidated subsidiary $ 4 $ 1 $ 7 $ 3 General and administrative expenses (a) $ 3 $ 2 $ 5 $ 3 (a) |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | As of June 30, 2024 and December 31, 2023, our long-term debt consisted of the following: June 30, December 31, 2024 2023 Interest Rate Maturity (in millions) Revolving Credit Facility $ 30 $ — SOFR plus 2.50%-3.50% ABR plus 1.50%-2.50% (a) July 31, 2027 (b) 2026 Senior Notes 545 545 7.125% February 1, 2026 2029 Senior Notes 600 — 8.250% June 15, 2029 Principal amount $ 1,175 $ 545 Unamortized debt discount and debt issuance costs (14) (5) Long-term debt, net $ 1,161 $ 540 (a) 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 a 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% . (b) The Revolving Credit Facility is subject to a springing maturity to August 4, 2025 if any of our 2026 Senior Notes are outstanding on that date. June 30, December 31, 2024 2023 (in millions) Variable rate debt $ 30 $ — Fixed rate debt 2026 Senior Notes 547 554 2029 Senior Notes 612 — Fair Value of Long-Term Debt $ 1,189 $ 554 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Open Derivative Contracts | We held the following Brent-based contracts as of June 30, 2024: Q3 Q4 Q1 Q2 2H Sold Calls Barrels per day 30,000 29,000 30,000 30,000 29,500 Weighted-average price per barrel $ 90.07 $ 90.07 $ 87.08 $ 87.08 $ 87.11 Purchased Puts Barrels per day 30,000 29,000 30,000 30,000 29,500 Weighted-average price per barrel $ 65.17 $ 65.17 $ 61.67 $ 61.67 $ 61.69 Swaps Barrels per day 8,875 8,875 5,250 3,500 3,250 Weighted-average price per barrel $ 80.10 $ 79.94 $ 76.27 $ 72.50 $ 72.50 At June 30, 2024, we also held the following swaps to hedge purchased natural gas used in our operations as shown in the table below. Q3 Q4 Swaps: MMBtu per day 10,000 10,000 Weighted-average price per MMBtu $ 5.65 $ 5.65 Three months ended Six months ended 2024 2023 2024 2023 (in millions) (in millions) Non-cash commodity derivative gain (loss) $ 11 $ 94 $ (48) $ 201 Settlements and premiums (6) (63) (18) (128) Net gain (loss) from commodity derivatives $ 5 $ 31 $ (66) $ 73 |
Schedule of Fair Value of Derivatives | The following tables present the fair values of our outstanding commodity derivatives as of June 30, 2024 and December 31, 2023: June 30, 2024 Classification Gross Amounts at Fair Value Netting Net Fair Value (in millions) Other current assets, net $ 13 $ (13) $ — Other noncurrent assets 15 (15) — Current liabilities (41) 13 (28) Noncurrent liabilities (25) 15 (10) $ (38) $ — $ (38) December 31, 2023 Classification Gross Amounts at Fair Value Netting Net Fair Value (in millions) Other current assets, net $ 39 $ (18) $ 21 Other noncurrent assets 38 (32) 6 Current liabilities (26) 18 (8) Noncurrent liabilities (34) 32 (2) $ 17 $ — $ 17 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 presents the components of our total income tax provision: Three months ended Six months ended 2024 2023 2024 2023 (in millions) (in millions) Income (loss) before income taxes $ 11 $ 135 $ (8) $ 511 Current income tax provision — 29 — 57 Deferred income tax provision (benefit) 3 9 (6) 56 Total income tax provision (benefit) $ 3 $ 38 $ (6) $ 113 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Schedule of Shares Repurchased | The following is a summary of our share repurchases, which are held as treasury stock, for the periods presented: Total Number of Shares Purchased Total Value of Shares Purchased Average Price Paid per Share (number of shares) (in millions) ($ per share) Three months ended June 30, 2023 1,618,746 $ 64 $ 39.12 Three months ended June 30, 2024 703,839 $ 35 $ 49.71 Six months ended June 30, 2023 3,042,510 $ 123 $ 40.12 Six months ended June 30, 2024 1,769,603 $ 93 $ 51.85 Inception of Program (May 2021) through June 30, 2024 16,633,518 $ 697 $ 41.74 |
Schedule of Dividends Declared | Our Board of Directors declared the following cash dividends for each of the periods presented. Total Dividend Rate Per Share (in millions) ($ per share) 2024 Three months ended March 31, 2024 $ 21 $ 0.31 Three months ended June 30, 2024 22 $ 0.31 Six months ended June 30, 2024 $ 43 2023 Three months ended March 31, 2023 $ 20 $ 0.2825 Three months ended June 30, 2023 20 $ 0.2825 Six months ended June 30, 2023 $ 40 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 and six months ended June 30, 2024 and 2023: Three months ended Six months ended 2024 2023 2024 2023 (in millions, except per-share amounts) Numerator for Basic and Diluted EPS Net income (loss) $ 8 $ 97 $ (2) $ 398 Denominator for Basic EPS Weighted-average shares 68.1 69.7 68.6 70.5 Potential common shares, if dilutive: Warrants 1.2 0.5 — 0.5 Restricted stock units 0.4 0.9 — 0.9 Performance stock units 0.3 0.8 — 0.8 Denominator for Diluted EPS Weighted-average shares 70.0 71.9 68.6 72.7 EPS Basic $ 0.12 $ 1.39 $ (0.03) $ 5.65 Diluted $ 0.11 $ 1.35 $ (0.03) $ 5.47 |
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 periods of losses: Three months ended Six months ended 2024 2023 2024 2023 (in millions) Shares issuable upon exercise of warrants — — 4.2 — Shares issuable upon settlement of RSUs — — 0.8 — Shares issuable upon settlement of PSUs — — 1.0 — Total antidilutive shares — — 6.0 — |
SUPPLEMENTAL ACCOUNT BALANCES (
SUPPLEMENTAL ACCOUNT BALANCES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
SUPPLEMENTAL INFORMATION [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 Six months ended 2024 2023 2024 2023 (in millions) (in millions) Oil $ 353 $ 362 $ 701 $ 752 Natural gas 14 43 46 306 NGLs 45 42 94 104 Oil, natural gas and NGL sales $ 412 $ 447 $ 841 $ 1,162 From time-to-time, we enter into transactions for third-party production, which we report as revenue from marketing of purchased commodities on our condensed consolidated statements of operations. Revenues from marketing of purchased commodities primarily results from the storage or transportation of natural gas to take advantage of differences in pricing or location, or in the quality of products other than natural gas. The following table provides disaggregated revenue for sales to customers related to our marketing activities: Three months ended Six months ended 2024 2023 2024 2023 (in millions) Oil $ 28 $ — $ 48 $ — Natural gas 23 72 71 256 NGLs — — 6 3 Revenue from marketing of purchased commodities $ 51 $ 72 $ 125 $ 259 |
Schedule of Inventories | Inventories, by category, are as follows: June 30, December 31, 2024 2023 (in millions) Materials and supplies $ 54 $ 68 Finished goods 2 4 Inventories $ 56 $ 72 |
Schedule of Other Current Assets, Net | Other current assets, net include the following: June 30, December 31, 2024 2023 (in millions) Net amounts due from joint interest partners (a) $ 48 $ 43 Fair value of commodity derivative contracts — 21 Prepaid expenses 16 19 Greenhouse gas allowances 12 12 Income tax receivable 8 — Other 19 18 Other current assets, net $ 103 $ 113 (a) Included in the June 30, 2024 and December 31, 2023 net amounts due from joint interest partners are allowances of $3 million. |
Schedule of Other Noncurrent Assets | Other noncurrent assets include the following: June 30, December 31, 2024 2023 (in millions) Operating lease right-of-use assets $ 83 $ 73 Deferred financing costs - Revolving Credit Facility 12 11 Emission reduction credits 11 11 Prepaid power plant maintenance 2 34 Fair value of commodity derivative contracts — 6 Deposits and other 14 13 Other noncurrent assets $ 122 $ 148 |
Schedule of Accrued Liabilities | Accrued liabilities include the following: June 30, December 31, 2024 2023 (in millions) Employee-related costs $ 69 $ 82 Taxes other than on income 36 35 Asset retirement obligations 77 99 Interest 21 18 Operating lease liability 19 15 Fair value of derivative contracts 28 8 Premiums due on commodity derivative contracts 13 21 Liability for settlement payments on commodity derivative contracts 2 8 Amounts due under production-sharing contracts 16 5 Signal Hill maintenance 2 12 Income taxes payable — 18 Other 57 45 Accrued liabilities $ 340 $ 366 |
Schedule of Other Long-term Liabilities | Other long-term liabilities includes the following: June 30, December 31, 2024 2023 (in millions) Compensation-related liabilities $ 35 $ 38 Postretirement benefit plan 33 36 Operating lease liability 55 55 Fair value of commodity derivative contracts 10 2 Premiums due on commodity derivative contracts 7 10 Contingent liability (related to Carbon TerraVault JV put and call rights) 102 52 Other 6 8 Other long-term liabilities $ 248 $ 201 |
Schedule of General and Administrative Expenses | The table below shows G&A expenses for our exploration and production business (including unallocated corporate overhead and other) separately from our carbon management business. The amounts shown for our carbon management business are net of amounts invoiced by us under the MSA with the Carbon TerraVault JV. See Note 2 Investment in Unconsolidated Subsidiary and Related Party Transactions for more information on the Carbon TerraVault JV. Three months ended Six months ended 2024 2023 2024 2023 (in millions) (in millions) Exploration and production, corporate and other $ 60 $ 68 $ 115 $ 130 Carbon management business 3 3 5 6 Total general and administrative expenses $ 63 $ 71 $ 120 $ 136 |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | Supplemental disclosures to our condensed consolidated statements of cash flows, excluding leases and ARO, are presented below: Three months ended Six months ended 2024 2023 2024 2023 (in millions) (in millions) Supplemental Cash Flow Information Interest paid, net of amount capitalized $ (1) $ 1 $ 19 $ 22 Income taxes paid $ 4 $ 51 $ 26 $ 51 Interest income $ 8 $ 6 $ 14 $ 9 Supplemental Disclosure of Non-cash Investing and Financing Activities Contribution to the Carbon TerraVault JV $ 5 $ 2 $ 5 $ 4 Issuance of shares for stock-based compensation awards $ 1 $ 2 $ 88 $ 2 Dividends accrued for stock-based compensation awards $ — $ 1 $ 1 $ 2 Excise tax on share repurchases $ — $ — $ 1 $ 1 |
CONDENSED CONSOLIDATING FINAN_2
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Condensed Financial Statements | The financial information may not necessarily be indicative of the financial condition and results of operations had the Unrestricted Subsidiaries operated as independent entities. Condensed Consolidating Balance Sheets As of June 30, 2024 and December 31, 2023 As of June 30, 2024 Parent Combined Unrestricted Subsidiaries Combined Restricted Subsidiaries Eliminations Consolidated (in millions) Total current assets $ 1,055 $ 61 $ 323 $ — $ 1,439 Total property, plant and equipment, net 13 21 2,739 — 2,773 Investments in consolidated subsidiaries 2,461 (28) 1,361 (3,794) — Deferred tax asset 139 — — — 139 Investment in unconsolidated subsidiary — 17 — — 17 Other assets 14 49 59 — 122 TOTAL ASSETS $ 3,682 $ 120 $ 4,482 $ (3,794) $ 4,490 Total current liabilities 117 15 461 — $ 593 Long-term debt 1,161 — — — 1,161 Asset retirement obligations — — 436 — 436 Other long-term liabilities 72 126 50 — 248 Amounts due to (from) affiliates 280 44 (324) — — Total equity 2,052 (65) 3,859 (3,794) 2,052 TOTAL LIABILITIES AND EQUITY $ 3,682 $ 120 $ 4,482 $ (3,794) $ 4,490 As of December 31, 2023 Parent Combined Unrestricted Subsidiaries Combined Restricted Subsidiaries Eliminations Consolidated (in millions) Total current assets $ 511 $ 20 $ 398 $ — $ 929 Total property, plant and equipment, net 14 12 2,744 — 2,770 Investments in consolidated subsidiaries 2,311 (11) 1,347 (3,647) — Deferred tax asset 132 — — — 132 Investment in unconsolidated subsidiary — 19 — — 19 Other assets 12 36 100 — 148 TOTAL ASSETS $ 2,980 $ 76 $ 4,589 $ (3,647) $ 3,998 Total current liabilities 142 13 461 — $ 616 Long-term debt 540 — — — 540 Asset retirement obligations — — 422 — 422 Other long-term liabilities 79 73 49 — 201 Total equity 2,219 (10) 3,657 (3,647) 2,219 TOTAL LIABILITIES AND EQUITY $ 2,980 $ 76 $ 4,589 $ (3,647) $ 3,998 Condensed Consolidating Statement of Operations For the three and six months ended June 30, 2024 and 2023 Three months ended June 30, 2024 Parent Combined Unrestricted Subsidiaries Combined Restricted Subsidiaries Eliminations Consolidated (in millions) Total operating revenues $ 7 $ — $ 513 $ (6) $ 514 Total costs and other 77 18 388 (6) 477 Gain on asset divestitures — — 1 — 1 Non-operating income (loss) (21) (7) 1 — (27) INCOME (LOSS) BEFORE INCOME TAXES (91) (25) 127 — 11 Income tax benefit (3) — — — (3) NET INCOME (LOSS) $ (94) $ (25) $ 127 $ — $ 8 Three months ended June 30, 2023 Parent Combined Unrestricted Subsidiaries Combined Restricted Subsidiaries Eliminations Consolidated (in millions) Total operating revenues $ 5 $ — $ 586 $ — $ 591 Total costs and other 62 11 371 — 444 Non-operating (loss) income (11) (2) 1 — (12) (LOSS) INCOME BEFORE INCOME TAXES (68) (13) 216 — 135 Income tax provision (38) — — — (38) NET (LOSS) INCOME $ (106) $ (13) $ 216 $ — $ 97 Six months ended June 30, 2024 Parent Combined Unrestricted Subsidiaries Combined Restricted Subsidiaries Eliminations Consolidated (in millions) Total operating revenues $ 13 $ — $ 971 $ (16) $ 968 Total costs and other 136 28 793 (16) 941 Gain on asset divestitures — — 7 — 7 Non-operating (loss) income (34) (11) 3 — (42) (LOSS) INCOME BEFORE INCOME TAXES (157) (39) 188 — (8) Income tax provision 6 — — — 6 NET (LOSS) INCOME $ (151) $ (39) $ 188 $ — $ (2) Six months ended June 30, 2023 Parent Combined Unrestricted Subsidiaries Combined Restricted Subsidiaries Eliminations Consolidated (in millions) Total operating revenues $ 9 $ — $ 1,606 $ — $ 1,615 Total costs and other 112 19 951 — 1,082 Gain on asset divestitures — — 7 — 7 Non-operating (loss) income (27) (5) 3 — (29) (LOSS) INCOME BEFORE INCOME TAXES (130) (24) 665 — 511 Income tax provision (113) — — — (113) NET (LOSS) INCOME $ (243) $ (24) $ 665 $ — $ 398 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Interest and other revenue | ||||
Reclassification [Line Items] | ||||
Revenue not from contract with customer | $ 10 | $ 7 | $ 17 | $ 19 |
Revenue from marketing of purchased commodities | ||||
Reclassification [Line Items] | ||||
Revenue not from contract with customer | $ 51 | $ 72 | $ 125 | 259 |
Revenue from marketing of purchased commodities | Reclassification adjustment | ||||
Reclassification [Line Items] | ||||
Revenue not from contract with customer | $ 3 |
INVESTMENT IN UNCONSOLIDATED _3
INVESTMENT IN UNCONSOLIDATED SUBSIDIARY AND RELATED PARTY TRANSACTIONS - Narrative (Details) MT in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Apr. 30, 2024 USD ($) | Aug. 31, 2022 USD ($) installment MT | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||||||
Contingent liability (related to Carbon TerraVault JV put and call rights) | $ 248 | $ 248 | $ 201 | |||||
Carbon TerraVault JV | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Interest in joint venture | 51% | |||||||
Carbon TerraVault JV | Related Party | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Contingent liability (related to Carbon TerraVault JV put and call rights) | 102 | 102 | $ 52 | |||||
Carbon TerraVault JV | 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 | $ 46 | ||||||
Metric tons of carbon per annum | MT | 5 | |||||||
Elk Hills | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Reimbursement for abandonment work | $ 5 | $ 1 | $ 9 | $ 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 | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Schedule of Equity Method Investments [Line Items] | |||||
Investment in unconsolidated subsidiary | $ 17 | $ 17 | $ 19 | ||
Receivable from affiliate | 61 | 61 | 19 | ||
Other long-term liabilities | 248 | 248 | 201 | ||
Loss from investment in unconsolidated subsidiary | 4 | $ 1 | 7 | $ 3 | |
Carbon TerraVault JV | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investment in unconsolidated subsidiary | 17 | 17 | 19 | ||
Loss from investment in unconsolidated subsidiary | 4 | $ 1 | 7 | $ 3 | 9 |
Carbon TerraVault JV | Related Party | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Receivable from affiliate | 61 | 61 | 19 | ||
Other long-term liabilities | 102 | 102 | 52 | ||
Carbon TerraVault JV | Management Services Agreement | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments, distributed to satisfy future capital calls | 58 | 58 | 17 | ||
Carbon TerraVault JV | Management Services Agreement | Related Party | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Receivable from affiliate | $ 3 | $ 3 | $ 2 |
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 | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Schedule of Equity Method Investments [Line Items] | |||||
Loss from investment in unconsolidated subsidiary | $ 4 | $ 1 | $ 7 | $ 3 | |
Carbon TerraVault JV | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Loss from investment in unconsolidated subsidiary | 4 | 1 | 7 | 3 | $ 9 |
General and administrative expense | $ 3 | $ 2 | $ 5 | $ 3 |
DEBT - Long-Term Debt (Details)
DEBT - Long-Term Debt (Details) - USD ($) $ in Millions | Apr. 26, 2023 | Jun. 30, 2024 | Jun. 05, 2024 | Dec. 31, 2023 |
Debt | ||||
Principal amount | $ 1,175 | $ 545 | ||
Unamortized debt discount and debt issuance costs | (14) | (5) | ||
Long-term debt, net | 1,161 | 540 | ||
Senior Notes (Unsecured) | 2026 Senior Notes | ||||
Debt | ||||
Principal amount | $ 545 | 545 | ||
Interest rate | 7.125% | |||
Senior Notes (Unsecured) | 2029 Senior Notes | ||||
Debt | ||||
Principal amount | $ 600 | 0 | ||
Interest rate | 8.25% | 8.25% | ||
Revolving Credit Facility | Line of Credit | ||||
Debt | ||||
Principal amount | $ 30 | $ 0 | ||
Revolving Credit Facility | Line of Credit | Federal Funds Rate | ||||
Debt | ||||
Interest rate added to variable rate basis | 0.50% | |||
Revolving Credit Facility | Line of Credit | SOFR | ||||
Debt | ||||
Interest rate added to variable rate basis | 1% | |||
Revolving Credit Facility | Line of Credit | SOFR | Minimum | ||||
Debt | ||||
Interest rate added to variable rate basis | 2.50% | |||
Revolving Credit Facility | Line of Credit | SOFR | Maximum | ||||
Debt | ||||
Interest rate added to variable rate basis | 3.50% | |||
Revolving Credit Facility | Line of Credit | Credit Spread Adjustment | ||||
Debt | ||||
Interest rate added to variable rate basis | 0.10% | |||
Revolving Credit Facility | Line of Credit | ABR Applicable Margin | Minimum | ||||
Debt | ||||
Interest rate added to variable rate basis | 1.50% | |||
Revolving Credit Facility | Line of Credit | ABR Applicable Margin | Maximum | ||||
Debt | ||||
Interest rate added to variable rate basis | 2.50% |
DEBT - Revolving Credit Facilit
DEBT - Revolving Credit Facility (Details) - Line of Credit - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2024 | Jul. 01, 2024 | |
Revolving Credit Facility | |||
Debt instrument | |||
Line of credit facility, maximum borrowing capacity | $ 630,000,000 | $ 630,000,000 | |
Line of credit facility, remaining borrowing capacity | 470,000,000 | 470,000,000 | |
Proceeds from long-term lines of credit | 30,000,000 | ||
Line of credit facility commitment fee amount, writeoff | 6,000,000 | ||
Borrowing base | 1,200,000,000 | 1,200,000,000 | |
Revolving Credit Facility | Subsequent Event | |||
Debt instrument | |||
Aggregate commitment | $ 1,100,000,000 | ||
Borrowing base | $ 1,500,000,000 | ||
Letters of Credit | |||
Debt instrument | |||
Line of credit facility, maximum borrowing capacity | 250,000,000 | 250,000,000 | |
Letters of credit issued | $ (130,000,000) | $ (130,000,000) |
DEBT - Senior Notes (Details)
DEBT - Senior Notes (Details) - 2029 Senior Notes - Senior Notes (Unsecured) - USD ($) $ in Millions | Jun. 05, 2024 | Jun. 30, 2024 |
Debt instrument | ||
Initial investment amount | $ 600 | |
Debt instrument, interest rate, stated percentage | 8.25% | 8.25% |
Proceeds from issuance of debt | $ 590 | |
Debt issuance costs | $ 10 | |
Debt instrument, redemption price, percentage of principal amount redeemed | 35% | |
Period Beginning On June 2026 | ||
Debt instrument | ||
Percentage of principal amount at which notes can be redeemed prior to their maturity date | 104.125% | |
Period Beginning On June 2027 | ||
Debt instrument | ||
Percentage of principal amount at which notes can be redeemed prior to their maturity date | 102.063% | |
Period Beginning On June 2028 | ||
Debt instrument | ||
Percentage of principal amount at which notes can be redeemed prior to their maturity date | 100% | |
Prior to June 2026 One | ||
Debt instrument | ||
Percentage of principal amount at which notes can be redeemed prior to their maturity date | 108.25% | |
Prior to June 2026 Two | ||
Debt instrument | ||
Percentage of principal amount at which notes can be redeemed prior to their maturity date | 100% | |
Events of Default and Change of Control | ||
Debt instrument | ||
Percentage of principal amount at which notes can be redeemed prior to their maturity date | 101% |
DEBT - Fair Value (Details)
DEBT - Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Debt instrument | ||
Variable rate debt | $ 30 | $ 0 |
Fair Value of Long-Term Debt | 1,189 | 554 |
2026 Senior Notes | ||
Debt instrument | ||
Fixed rate debt | 547 | 554 |
2029 Senior Notes | ||
Debt instrument | ||
Fixed rate debt | $ 612 | $ 0 |
LAWSUITS, CLAIMS, COMMITMENTS_2
LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES - Narrative (Details) $ in Millions | 1 Months Ended | |
Oct. 31, 2020 platform | Jun. 30, 2024 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||
Number of offshore platforms with decommissioning obligations defaulted | platform | 2 | |
Offshore platforms with decommissioning obligations defaulted percentage | 37.50% | |
Offshore platforms with decommissioning obligations defaulted period since interest sold | 30 years | |
Estimated share of maintenance costs | $ | $ 5 |
DERIVATIVES - Commodity Price R
DERIVATIVES - Commodity Price Risk (Details) - Not Designated as Hedging Instrument MMBTU in Thousands | 3 Months Ended |
Jun. 30, 2024 MMBTU $ / barrel $ / MMBTU bbl | |
Sold Calls - Crude Oil Q3 2024 | |
Derivatives | |
Barrels per day (in barrels) | bbl | 30,000 |
Weighted-average price per barrel (in dollars per barrel) | $ / barrel | 90.07 |
Sold Calls - Crude Oil Q4 2024 | |
Derivatives | |
Barrels per day (in barrels) | bbl | 29,000 |
Weighted-average price per barrel (in dollars per barrel) | $ / barrel | 90.07 |
Sold Calls - Crude Oil Q1 2025 | |
Derivatives | |
Barrels per day (in barrels) | bbl | 30,000 |
Weighted-average price per barrel (in dollars per barrel) | $ / barrel | 87.08 |
Sold Calls - Crude Oil Q2 2025 | |
Derivatives | |
Barrels per day (in barrels) | bbl | 30,000 |
Weighted-average price per barrel (in dollars per barrel) | $ / barrel | 87.08 |
Sold Calls - Crude Oil 2H 2025 | |
Derivatives | |
Barrels per day (in barrels) | bbl | 29,500 |
Weighted-average price per barrel (in dollars per barrel) | $ / barrel | 87.11 |
Purchased Puts - Crude Oil Q3 2024 | |
Derivatives | |
Barrels per day (in barrels) | bbl | 30,000 |
Weighted-average price per barrel (in dollars per barrel) | $ / barrel | 65.17 |
Purchased Puts - Crude Oil Q4 2024 | |
Derivatives | |
Barrels per day (in barrels) | bbl | 29,000 |
Weighted-average price per barrel (in dollars per barrel) | $ / barrel | 65.17 |
Purchased Puts - Crude Oil Q1 2025 | |
Derivatives | |
Barrels per day (in barrels) | bbl | 30,000 |
Weighted-average price per barrel (in dollars per barrel) | $ / barrel | 61.67 |
Purchased Puts - Crude Oil Q2 2025 | |
Derivatives | |
Barrels per day (in barrels) | bbl | 30,000 |
Weighted-average price per barrel (in dollars per barrel) | $ / barrel | 61.67 |
Purchased Puts - Crude Oil 2H 2025 | |
Derivatives | |
Barrels per day (in barrels) | bbl | 29,500 |
Weighted-average price per barrel (in dollars per barrel) | $ / barrel | 61.69 |
Swaps - Crude Oil Q3 2024 | |
Derivatives | |
Barrels per day (in barrels) | bbl | 8,875 |
Weighted-average price per barrel (in dollars per barrel) | $ / barrel | 80.10 |
Swaps - Crude Oil Q4 2024 | |
Derivatives | |
Barrels per day (in barrels) | bbl | 8,875 |
Weighted-average price per barrel (in dollars per barrel) | $ / barrel | 79.94 |
Swaps - Crude Oil Q1 2025 | |
Derivatives | |
Barrels per day (in barrels) | bbl | 5,250 |
Weighted-average price per barrel (in dollars per barrel) | $ / barrel | 76.27 |
Swaps - Crude Oil Q2 2025 | |
Derivatives | |
Barrels per day (in barrels) | bbl | 3,500 |
Weighted-average price per barrel (in dollars per barrel) | $ / barrel | 72.50 |
Swaps - Crude Oil 2H 2025 | |
Derivatives | |
Barrels per day (in barrels) | bbl | 3,250 |
Weighted-average price per barrel (in dollars per barrel) | $ / barrel | 72.50 |
Swap - Natural Gas Q3 2024 | |
Derivatives | |
MMBtu per day (in millions of BTU) | MMBTU | 10 |
Weighted-average price per MMBtu (in dollars per million of BTU) | $ / MMBTU | 5.65 |
Swap - Natural Gas Q4 2024 | |
Derivatives | |
MMBtu per day (in millions of BTU) | MMBTU | 10 |
Weighted-average price per MMBtu (in dollars per million of BTU) | $ / MMBTU | 5.65 |
DERIVATIVES - Schedule of Gain
DERIVATIVES - Schedule of Gain (Loss) On Derivative Contracts (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Non-cash commodity derivative gain (loss) | $ 11 | $ 94 | $ (48) | $ 201 |
Settlements and premiums | (6) | (63) | (18) | (128) |
Net gain (loss) from commodity derivatives | $ 5 | $ 31 | $ (66) | $ 73 |
DERIVATIVES - Narrative (Detail
DERIVATIVES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivatives | ||||
Non-cash commodity derivative loss | $ (11) | $ (94) | $ 48 | $ (201) |
Net gain (loss) from commodity derivatives | 5 | 31 | (66) | 73 |
Settlements and amortized premiums | 6 | $ 63 | 18 | $ 128 |
Natural Gas | ||||
Derivatives | ||||
Non-cash commodity derivative loss | 1 | 2 | ||
Net gain (loss) from commodity derivatives | 3 | 4 | ||
Settlements and amortized premiums | $ (4) | $ (6) |
DERIVATIVES - Fair Value (Detai
DERIVATIVES - Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value of Derivatives | ||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Total current liabilities | Total current liabilities |
Commodity Contracts | ||
Fair Value of Derivatives | ||
Total derivatives | $ 0 | $ 0 |
Commodity Contracts | Other current assets, net | ||
Fair Value of Derivatives | ||
Netting | (13) | (18) |
Commodity Contracts | Other noncurrent assets | ||
Fair Value of Derivatives | ||
Netting | (15) | (32) |
Commodity Contracts | Current liabilities | ||
Fair Value of Derivatives | ||
Netting | 13 | 18 |
Commodity Contracts | Noncurrent liabilities | ||
Fair Value of Derivatives | ||
Netting | 15 | 32 |
Gross Amounts at Fair Value | Commodity Contracts | ||
Fair Value of Derivatives | ||
Total derivatives | (38) | 17 |
Gross Amounts at Fair Value | Commodity Contracts | Other current assets, net | ||
Fair Value of Derivatives | ||
Gross Amounts at Fair Value | 13 | 39 |
Gross Amounts at Fair Value | Commodity Contracts | Other noncurrent assets | ||
Fair Value of Derivatives | ||
Gross Amounts at Fair Value | 15 | 38 |
Gross Amounts at Fair Value | Commodity Contracts | Current liabilities | ||
Fair Value of Derivatives | ||
Gross Amounts at Fair Value | (41) | (26) |
Gross Amounts at Fair Value | Commodity Contracts | Noncurrent liabilities | ||
Fair Value of Derivatives | ||
Gross Amounts at Fair Value | (25) | (34) |
Net Fair Value | Commodity Contracts | ||
Fair Value of Derivatives | ||
Total derivatives | (38) | 17 |
Net Fair Value | Commodity Contracts | Other current assets, net | ||
Fair Value of Derivatives | ||
Net Fair Value | 0 | 21 |
Net Fair Value | Commodity Contracts | Other noncurrent assets | ||
Fair Value of Derivatives | ||
Net Fair Value | 0 | 6 |
Net Fair Value | Commodity Contracts | Current liabilities | ||
Fair Value of Derivatives | ||
Net Fair Value | (28) | (8) |
Net Fair Value | Commodity Contracts | Noncurrent liabilities | ||
Fair Value of Derivatives | ||
Net Fair Value | $ (10) | $ (2) |
INCOME TAXES - Income Tax Provi
INCOME TAXES - Income Tax Provision (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Income (loss) before income taxes | $ 11 | $ 135 | $ (8) | $ 511 |
Current income tax provision | 0 | 29 | 0 | 57 |
Deferred income tax provision (benefit) | 3 | 9 | (6) | 56 |
Total income tax provision (benefit) | $ 3 | $ 38 | $ (6) | $ 113 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate reconciliation, annual, percent | 27% | 28% | 75% | 28% |
DIVESTITURES, ACQUISITIONS AN_2
DIVESTITURES, ACQUISITIONS AND ASSETS HELD FOR SALE - Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Mar. 31, 2024 USD ($) a | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Business Acquisition [Line Items] | |||||||
Proceeds from sale of assets | $ 2 | $ 0 | $ 12 | $ 0 | |||
Gain (loss) on disposition of assets | 1 | 0 | 7 | 7 | |||
Other Acquisitions | |||||||
Business Acquisition [Line Items] | |||||||
Business combination, consideration transferred | 6 | $ 1 | 6 | 1 | $ 17 | ||
Impairment recognized | $ 3 | ||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Fort Apache In Huntington Beach | |||||||
Business Acquisition [Line Items] | |||||||
Area of real estate property | a | 0.9 | ||||||
Proceeds from sale of assets | $ 10 | ||||||
Gain (loss) on disposition of assets | $ 6 | ||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Other Divestitures | |||||||
Business Acquisition [Line Items] | |||||||
Gain (loss) on disposition of assets | $ 1 | $ 1 | $ 7 |
STOCKHOLDERS' EQUITY - Narrativ
STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2024 | Oct. 31, 2020 | |
Equity [Abstract] | |||
Stock repurchase program authorized amount | $ 1,350 | $ 1,350 | |
Shares reserved for future issuance (in shares) | 4,384,182 | ||
Investment warrants, exercise price (in dollars per share) | $ 36 | ||
Warrant outstanding (in shares) | 4,119,144 | 4,119,144 | |
Shares issued in exchange for warrants (in shares) | 34,474 | 53,325 |
STOCKHOLDERS' EQUITY - Share Re
STOCKHOLDERS' EQUITY - Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 38 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | |
Equity [Abstract] | |||||
Share repurchase (in shares) | 703,839 | 1,618,746 | 1,769,603 | 3,042,510 | 16,633,518 |
Stock repurchase | $ 35 | $ 64 | $ 93 | $ 123 | $ 697 |
Average price (in dollar per share) | $ 49.71 | $ 39.12 | $ 51.85 | $ 40.12 | $ 41.74 |
Stock repurchase, excise tax | $ 1 | $ 1 |
STOCKHOLDERS' EQUITY - Dividend
STOCKHOLDERS' EQUITY - Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Equity [Abstract] | ||||||
Total Dividend | $ 22 | $ 21 | $ 20 | $ 20 | $ 43 | $ 40 |
Rate per share (in dollars per share) | $ 0.31 | $ 0.31 | $ 0.2825 | $ 0.2825 | $ 0.31 | $ 0.2825 |
EARNINGS PER SHARE - Calculatio
EARNINGS PER SHARE - Calculation of EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Numerator for Basic and Diluted EPS | ||||
Net income (loss) | $ 8 | $ 97 | $ (2) | $ 398 |
Denominator for Basic EPS | ||||
Weighted-average common shares outstanding — basic (in shares) | 68,100 | 69,700 | 68,600 | 70,500 |
Weighted-average common shares outstanding — diluted (in shares) | 70,000 | 71,900 | 68,600 | 72,700 |
EPS | ||||
Basic (in dollars per share) | $ 0.12 | $ 1.39 | $ (0.03) | $ 5.65 |
Diluted (in dollars per share) | $ 0.11 | $ 1.35 | $ (0.03) | $ 5.47 |
Warrants | ||||
Potential common shares, if dilutive: | ||||
Incremental common shares attributable to dilutive effect of share-based payment arrangements (in shares) | 1,200 | 500 | 0 | 500 |
Restricted stock units | ||||
Potential common shares, if dilutive: | ||||
Incremental common shares attributable to dilutive effect of share-based payment arrangements (in shares) | 400 | 900 | 0 | 900 |
Performance stock units | ||||
Potential common shares, if dilutive: | ||||
Incremental common shares attributable to dilutive effect of share-based payment arrangements (in shares) | 300 | 800 | 0 | 800 |
EARNINGS PER SHARE - Potentiall
EARNINGS PER SHARE - Potentially Dilutive Common Shares (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total antidilutive shares (in shares) | 0 | 0 | 6,000,000 | 0 |
Warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total antidilutive shares (in shares) | 0 | 0 | 4,200,000 | 0 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total antidilutive shares (in shares) | 0 | 0 | 800,000 | 0 |
Performance stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total antidilutive shares (in shares) | 0 | 0 | 1,000,000 | 0 |
SUPPLEMENTAL ACCOUNT BALANCES -
SUPPLEMENTAL ACCOUNT BALANCES - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of revenue | ||||
Oil, natural gas and NGL sales | $ 412 | $ 447 | $ 841 | $ 1,162 |
Oil | ||||
Disaggregation of revenue | ||||
Oil, natural gas and NGL sales | 353 | 362 | 701 | 752 |
Revenue not from contract with customer | 28 | 0 | 48 | 0 |
Natural gas | ||||
Disaggregation of revenue | ||||
Oil, natural gas and NGL sales | 14 | 43 | 46 | 306 |
Revenue not from contract with customer | 23 | 72 | 71 | 256 |
NGLs | ||||
Disaggregation of revenue | ||||
Oil, natural gas and NGL sales | 45 | 42 | 94 | 104 |
Revenue not from contract with customer | 0 | 0 | 6 | 3 |
Revenue from marketing of purchased commodities | ||||
Disaggregation of revenue | ||||
Revenue not from contract with customer | $ 51 | $ 72 | $ 125 | $ 259 |
SUPPLEMENTAL ACCOUNT BALANCES_2
SUPPLEMENTAL ACCOUNT BALANCES - Inventories (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
SUPPLEMENTAL INFORMATION [Abstract] | |||||
Materials and supplies | $ 54 | $ 54 | $ 68 | ||
Finished goods | 2 | 2 | 4 | ||
Inventories | 56 | 56 | $ 72 | ||
Asset impairments | $ 13 | $ 0 | $ 13 | $ 3 |
SUPPLEMENTAL ACCOUNT BALANCES_3
SUPPLEMENTAL ACCOUNT BALANCES - Other Current Assets (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
SUPPLEMENTAL INFORMATION [Abstract] | ||
Net amounts due from joint interest partners | $ 48 | $ 43 |
Fair value of commodity derivative contracts | 0 | 21 |
Prepaid expenses | 16 | 19 |
Greenhouse gas allowances | 12 | 12 |
Income tax receivable | 8 | 0 |
Other | 19 | 18 |
Other current assets, net | 103 | 113 |
Due from joint interest partners, allowances | $ 3 | $ 3 |
SUPPLEMENTAL ACCOUNT BALANCES_4
SUPPLEMENTAL ACCOUNT BALANCES - Other Noncurrent Assets (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
SUPPLEMENTAL INFORMATION [Abstract] | ||
Operating lease right-of-use assets | $ 83 | $ 73 |
Deferred financing costs - Revolving Credit Facility | 12 | 11 |
Emission reduction credits | 11 | 11 |
Prepaid power plant maintenance | 2 | 34 |
Fair value of commodity derivative contracts | 0 | 6 |
Deposits and other | 14 | 13 |
Other noncurrent assets | $ 122 | $ 148 |
SUPPLEMENTAL ACCOUNT BALANCES_5
SUPPLEMENTAL ACCOUNT BALANCES - Accrued Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Accrued liabilities current [abstract] | ||
Employee-related costs | $ 69 | $ 82 |
Taxes other than on income | 36 | 35 |
Asset retirement obligations | 77 | 99 |
Interest | 21 | 18 |
Operating lease liability | 19 | 15 |
Fair value of derivative contracts | 28 | 8 |
Premiums due on commodity derivative contracts | 13 | 21 |
Liability for settlement payments on commodity derivative contracts | 2 | 8 |
Amounts due under production-sharing contracts | 16 | 5 |
Signal Hill maintenance | 2 | 12 |
Income taxes payable | 0 | 18 |
Other | 57 | 45 |
Accrued liabilities | $ 340 | $ 366 |
SUPPLEMENTAL ACCOUNT BALANCES_6
SUPPLEMENTAL ACCOUNT BALANCES - Other Long-Term Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
SUPPLEMENTAL INFORMATION [Abstract] | ||
Compensation-related liabilities | $ 35 | $ 38 |
Postretirement benefit plan | 33 | 36 |
Operating lease liability | 55 | 55 |
Fair value of commodity derivative contracts | 10 | 2 |
Premiums due on commodity derivative contracts | 7 | 10 |
Contingent liability (related to Carbon TerraVault JV put and call rights) | 102 | 52 |
Other | 6 | 8 |
Other long-term liabilities | $ 248 | $ 201 |
SUPPLEMENTAL ACCOUNT BALANCES_7
SUPPLEMENTAL ACCOUNT BALANCES - General and Administrative Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Supplemental Information [Line Items] | ||||
General and administrative expenses | $ 63 | $ 71 | $ 120 | $ 136 |
Exploration and production, corporate and other | ||||
Supplemental Information [Line Items] | ||||
General and administrative expenses | 60 | 68 | 115 | 130 |
Carbon management business | ||||
Supplemental Information [Line Items] | ||||
General and administrative expenses | $ 3 | $ 3 | $ 5 | $ 6 |
SUPPLEMENTAL ACCOUNT BALANCES_8
SUPPLEMENTAL ACCOUNT BALANCES - Other Operating Expenses, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Supplemental Information [Line Items] | ||||
General and administrative expenses | $ 63 | $ 71 | $ 120 | $ 136 |
Exploration and production, corporate and other | ||||
Supplemental Information [Line Items] | ||||
General and administrative expenses | 60 | 68 | 115 | 130 |
Carbon management business | ||||
Supplemental Information [Line Items] | ||||
General and administrative expenses | $ 3 | $ 3 | $ 5 | $ 6 |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Supplemental Cash Flow Elements [Abstract] | ||||
Interest incurred but not yet paid, net of amount capitalized | $ (1) | |||
Interest paid, net of amount capitalized | $ 1 | $ 19 | $ 22 | |
Income taxes paid | 4 | 51 | 26 | 51 |
Interest income | 8 | 6 | 14 | 9 |
Supplemental Disclosure of Non-cash Investing and Financing Activities [Abstract] | ||||
Contribution to the Carbon TerraVault JV | 5 | 2 | 5 | 4 |
Issuance of shares for stock-based compensation awards | 1 | 2 | 88 | 2 |
Dividends accrued for stock-based compensation awards | 0 | 1 | 1 | 2 |
Excise tax on share repurchases | $ 0 | $ 0 | $ 1 | $ 1 |
CONDENSED CONSOLIDATING FINAN_3
CONDENSED CONSOLIDATING FINANCIAL INFORMATION - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
ScheduleOfCondensedFinancialStatements [Line Items] | ||||||
Total current assets | $ 1,439 | $ 929 | ||||
Total property, plant and equipment, net | 2,773 | 2,770 | ||||
Investments in consolidated subsidiaries | 0 | 0 | ||||
Deferred tax asset | 139 | 132 | ||||
Investment in unconsolidated subsidiary | 17 | 19 | ||||
Other assets | 122 | 148 | ||||
TOTAL ASSETS | 4,490 | 3,998 | ||||
Total current liabilities | 593 | 616 | ||||
Long-term debt | 1,161 | 540 | ||||
Asset retirement obligations | 436 | 422 | ||||
Other long-term liabilities | 248 | 201 | ||||
Amounts due to (from) affiliates | 0 | |||||
Total equity | 2,052 | $ 2,093 | 2,219 | $ 2,110 | $ 2,092 | $ 1,864 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 4,490 | 3,998 | ||||
Eliminations | ||||||
ScheduleOfCondensedFinancialStatements [Line Items] | ||||||
Total current assets | 0 | 0 | ||||
Total property, plant and equipment, net | 0 | 0 | ||||
Investments in consolidated subsidiaries | (3,794) | (3,647) | ||||
Deferred tax asset | 0 | 0 | ||||
Investment in unconsolidated subsidiary | 0 | 0 | ||||
Other assets | 0 | 0 | ||||
TOTAL ASSETS | (3,794) | (3,647) | ||||
Total current liabilities | 0 | 0 | ||||
Long-term debt | 0 | 0 | ||||
Asset retirement obligations | 0 | 0 | ||||
Other long-term liabilities | 0 | 0 | ||||
Amounts due to (from) affiliates | 0 | |||||
Total equity | (3,794) | (3,647) | ||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | (3,794) | (3,647) | ||||
Parent | Reportable Legal Entities | ||||||
ScheduleOfCondensedFinancialStatements [Line Items] | ||||||
Total current assets | 1,055 | 511 | ||||
Total property, plant and equipment, net | 13 | 14 | ||||
Investments in consolidated subsidiaries | 2,461 | 2,311 | ||||
Deferred tax asset | 139 | 132 | ||||
Investment in unconsolidated subsidiary | 0 | 0 | ||||
Other assets | 14 | 12 | ||||
TOTAL ASSETS | 3,682 | 2,980 | ||||
Total current liabilities | 117 | 142 | ||||
Long-term debt | 1,161 | 540 | ||||
Asset retirement obligations | 0 | 0 | ||||
Other long-term liabilities | 72 | 79 | ||||
Amounts due to (from) affiliates | 280 | |||||
Total equity | 2,052 | 2,219 | ||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 3,682 | 2,980 | ||||
Combined Unrestricted Subsidiaries | Reportable Legal Entities | ||||||
ScheduleOfCondensedFinancialStatements [Line Items] | ||||||
Total current assets | 61 | 20 | ||||
Total property, plant and equipment, net | 21 | 12 | ||||
Investments in consolidated subsidiaries | (28) | (11) | ||||
Deferred tax asset | 0 | 0 | ||||
Investment in unconsolidated subsidiary | 17 | 19 | ||||
Other assets | 49 | 36 | ||||
TOTAL ASSETS | 120 | 76 | ||||
Total current liabilities | 15 | 13 | ||||
Long-term debt | 0 | 0 | ||||
Asset retirement obligations | 0 | 0 | ||||
Other long-term liabilities | 126 | 73 | ||||
Amounts due to (from) affiliates | 44 | |||||
Total equity | (65) | (10) | ||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 120 | 76 | ||||
Combined Restricted Subsidiaries | Reportable Legal Entities | ||||||
ScheduleOfCondensedFinancialStatements [Line Items] | ||||||
Total current assets | 323 | 398 | ||||
Total property, plant and equipment, net | 2,739 | 2,744 | ||||
Investments in consolidated subsidiaries | 1,361 | 1,347 | ||||
Deferred tax asset | 0 | 0 | ||||
Investment in unconsolidated subsidiary | 0 | 0 | ||||
Other assets | 59 | 100 | ||||
TOTAL ASSETS | 4,482 | 4,589 | ||||
Total current liabilities | 461 | 461 | ||||
Long-term debt | 0 | 0 | ||||
Asset retirement obligations | 436 | 422 | ||||
Other long-term liabilities | 50 | 49 | ||||
Amounts due to (from) affiliates | (324) | |||||
Total equity | 3,859 | 3,657 | ||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 4,482 | $ 4,589 |
CONDENSED CONSOLIDATING FINAN_4
CONDENSED CONSOLIDATING FINANCIAL INFORMATION - Condensed Consolidating Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
ScheduleOfCondensedFinancialStatements [Line Items] | ||||
Total operating revenues | $ 514 | $ 591 | $ 968 | $ 1,615 |
Total costs and other | 477 | 444 | 941 | 1,082 |
Gain on asset divestitures | 1 | 0 | 7 | 7 |
Non-operating income (loss) | (27) | (12) | (42) | (29) |
INCOME (LOSS) BEFORE INCOME TAXES | 11 | 135 | (8) | 511 |
Income tax provision | 3 | 38 | (6) | 113 |
NET INCOME (LOSS) | 8 | 97 | (2) | 398 |
Eliminations | ||||
ScheduleOfCondensedFinancialStatements [Line Items] | ||||
Total operating revenues | (6) | 0 | (16) | 0 |
Total costs and other | (6) | 0 | (16) | 0 |
Gain on asset divestitures | 0 | 0 | 0 | |
Non-operating income (loss) | 0 | 0 | 0 | 0 |
INCOME (LOSS) BEFORE INCOME TAXES | 0 | 0 | 0 | 0 |
Income tax provision | 0 | 0 | 0 | 0 |
NET INCOME (LOSS) | 0 | 0 | 0 | 0 |
Parent | Reportable Legal Entities | ||||
ScheduleOfCondensedFinancialStatements [Line Items] | ||||
Total operating revenues | 7 | 5 | 13 | 9 |
Total costs and other | 77 | 62 | 136 | 112 |
Gain on asset divestitures | 0 | 0 | 0 | |
Non-operating income (loss) | (21) | (11) | (34) | (27) |
INCOME (LOSS) BEFORE INCOME TAXES | (91) | (68) | (157) | (130) |
Income tax provision | 3 | 38 | (6) | 113 |
NET INCOME (LOSS) | (94) | (106) | (151) | (243) |
Combined Unrestricted Subsidiaries | Reportable Legal Entities | ||||
ScheduleOfCondensedFinancialStatements [Line Items] | ||||
Total operating revenues | 0 | 0 | 0 | 0 |
Total costs and other | 18 | 11 | 28 | 19 |
Gain on asset divestitures | 0 | 0 | 0 | |
Non-operating income (loss) | (7) | (2) | (11) | (5) |
INCOME (LOSS) BEFORE INCOME TAXES | (25) | (13) | (39) | (24) |
Income tax provision | 0 | 0 | 0 | 0 |
NET INCOME (LOSS) | (25) | (13) | (39) | (24) |
Combined Restricted Subsidiaries | Reportable Legal Entities | ||||
ScheduleOfCondensedFinancialStatements [Line Items] | ||||
Total operating revenues | 513 | 586 | 971 | 1,606 |
Total costs and other | 388 | 371 | 793 | 951 |
Gain on asset divestitures | 1 | 7 | 7 | |
Non-operating income (loss) | 1 | 1 | 3 | 3 |
INCOME (LOSS) BEFORE INCOME TAXES | 127 | 216 | 188 | 665 |
Income tax provision | 0 | 0 | 0 | 0 |
NET INCOME (LOSS) | $ 127 | $ 216 | $ 188 | $ 665 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
Aug. 05, 2024 | Aug. 02, 2024 | Jul. 01, 2024 | Jul. 31, 2024 | Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Subsequent Event [Line Items] | ||||||||||
Dividends declared, common stock (in dollars per share) | $ 0.31 | $ 0.31 | $ 0.2825 | $ 0.2825 | $ 0.31 | $ 0.2825 | ||||
Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Total annual dividend (in dollars per share) | $ 1.55 | |||||||||
Total quarterly dividend (in dollars per share) | $ 0.3875 | |||||||||
Dividends declared, common stock (in dollars per share) | $ 0.3875 | |||||||||
California Resources Corporation | Existing CRC Stockholders | Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Business acquisition, percentage of ownership before transaction | 76% | |||||||||
California Resources Corporation | Aera Energy, LLC | Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Business acquisition, percentage of ownership before transaction | 24% | |||||||||
Aera Energy, LLC | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Transaction and integration costs | $ 13 | $ 26 | ||||||||
Aera Energy, LLC | Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Common stock issued in connection with merger (in shares) | 21,315,707 | |||||||||
Payments to acquire businesses | $ 990 | |||||||||
Business combination, acquisition related costs | $ 27 |