COVER PAGE
COVER PAGE - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 25, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-08246 | |
Entity Registrant Name | Southwestern Energy Company | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 71-0205415 | |
Entity Address, Address Line One | 10000 Energy Drive | |
Entity Address, City or Town | Spring | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77389 | |
City Area Code | 832 | |
Local Phone Number | 796-1000 | |
Title of 12(b) Security | Common Stock, Par Value $0.01 | |
Trading Symbol | SWN | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,101,267,771 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000007332 | |
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating Revenues: | ||
Total operating revenues | $ 2,118 | $ 2,943 |
Operating Costs and Expenses: | ||
Operating expenses | 418 | 381 |
General and administrative expenses | 46 | 44 |
Merger-related expenses | 0 | 25 |
Depreciation, depletion and amortization | 313 | 275 |
Taxes, other than income taxes | 68 | 57 |
Total operating costs and expense | 1,512 | 1,644 |
Operating Income | 606 | 1,299 |
Interest Expense: | ||
Interest on debt | 63 | 68 |
Other interest charges | 3 | 3 |
Interest capitalized | (30) | (30) |
Total interest expense | 36 | 41 |
Gain (Loss) on Derivatives | 1,401 | (3,927) |
Loss on Early Extinguishment of Debt | (19) | (2) |
Other Loss, Net | (1) | 0 |
Income (Loss) Before Income Taxes | 1,951 | (2,671) |
Provision for Income Taxes: | ||
Current | 0 | 4 |
Deferred | 12 | 0 |
Total provision (benefit) from income taxes | 12 | 4 |
Net Income (Loss) | $ 1,939 | $ (2,675) |
Earnings (Loss) Per Common Share: | ||
Basic (in dollars per share) | $ 1.76 | $ (2.40) |
Diluted (in dollars per share) | $ 1.76 | $ (2.40) |
Weighted Average Common Shares Outstanding: | ||
Basic (in shares) | 1,100,278,261 | 1,114,610,964 |
Diluted (in shares) | 1,102,396,636 | 1,114,610,964 |
Gas sales | ||
Operating Revenues: | ||
Total operating revenues | $ 1,145 | $ 1,692 |
Oil sales | ||
Operating Revenues: | ||
Total operating revenues | 95 | 111 |
NGL sales | ||
Operating Revenues: | ||
Total operating revenues | 201 | 272 |
Marketing | ||
Operating Revenues: | ||
Total operating revenues | 679 | 866 |
Other | ||
Operating Revenues: | ||
Total operating revenues | (2) | 2 |
Marketing purchases | ||
Operating Costs and Expenses: | ||
Marketing purchases | $ 667 | $ 862 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 1,939 | $ (2,675) | |
Change in value of pension and other postretirement liabilities: | |||
Amortization of prior service cost and net gain, including gain on settlements and curtailments included in net periodic pension cost | [1] | 1 | 0 |
Net actuarial loss incurred in period | (2) | 0 | |
Net tax loss attributable to pension termination | (14) | 0 | |
Total change in value of pension and postretirement liabilities | (15) | 0 | |
Comprehensive income (loss) | $ 1,924 | $ (2,675) | |
[1]Settlement adjustment was less than $1 million for the three months ended March 31, 2022. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 3 | $ 50 |
Accounts receivable, net | 667 | 1,401 |
Derivative assets | 463 | 145 |
Other current assets | 66 | 68 |
Total current assets | 1,199 | 1,664 |
Natural gas and oil properties, using the full cost method, including $2,185 million as of March 31, 2023 and $2,217 million as of December 31, 2022 excluded from amortization | 36,430 | 35,763 |
Other | 532 | 527 |
Less: Accumulated depreciation, depletion and amortization | (25,704) | (25,387) |
Total property and equipment, net | 11,258 | 10,903 |
Operating lease assets | 175 | 177 |
Long-term derivative assets | 201 | 72 |
Deferred tax assets | 0 | 0 |
Other long-term assets | 104 | 110 |
Total long-term assets | 480 | 359 |
TOTAL ASSETS | 12,937 | 12,926 |
Current liabilities: | ||
Accounts payable | 1,549 | 1,835 |
Taxes payable | 109 | 136 |
Interest payable | 27 | 86 |
Derivative liabilities | 409 | 1,317 |
Current operating lease liabilities | 43 | 42 |
Other current liabilities | 29 | 65 |
Total current liabilities | 2,166 | 3,481 |
Long-term debt | 3,935 | 4,392 |
Long-term operating lease liabilities | 128 | 133 |
Long-term derivative liabilities | 208 | 378 |
Other long-term liabilities | 246 | 218 |
Total long-term liabilities | 4,517 | 5,121 |
Commitments and contingencies (Note 11) | ||
Equity: | ||
Common stock, $0.01 par value; 2,500,000,000 shares authorized; issued 1,162,882,464 shares as of March 31, 2023 and 1,161,545,588 shares as of December 31, 2022 | 12 | 12 |
Additional paid-in capital | 7,178 | 7,172 |
Accumulated deficit | (600) | (2,539) |
Accumulated other comprehensive income (loss) | (9) | 6 |
Common stock in treasury, 61,614,693 shares as of March 31, 2023 and December 31, 2022 | (327) | (327) |
Total equity | 6,254 | 4,324 |
TOTAL LIABILITIES AND EQUITY | $ 12,937 | $ 12,926 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Natural gas and oil properties, using the full cost method, costs excluded from amortization | $ 2,185 | $ 2,217 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 2,500,000,000 | 2,500,000,000 |
Common stock, shares issued (in shares) | 1,162,882,464 | 1,161,545,588 |
Treasury stock, shares (in shares) | 61,614,693 | 61,614,693 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash Flows From Operating Activities: | ||
Net income (loss) | $ 1,939 | $ (2,675) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 313 | 275 |
Amortization of debt issuance costs | 2 | 2 |
Deferred income taxes | 12 | 0 |
(Gain) loss on derivatives, unsettled | (1,524) | 3,232 |
Stock-based compensation | 1 | 1 |
Loss on early extinguishment of debt | 19 | 2 |
Other | 2 | (1) |
Change in assets and liabilities, excluding impact from acquisitions: | ||
Accounts receivable | 734 | 89 |
Accounts payable | (257) | 126 |
Taxes payable | (27) | (13) |
Interest payable | (33) | (16) |
Inventories | (14) | 4 |
Other assets and liabilities | (30) | (54) |
Net cash provided by operating activities | 1,137 | 972 |
Cash Flows From Investing Activities: | ||
Capital investments | (670) | (500) |
Net cash used in investing activities | (670) | (500) |
Cash Flows From Financing Activities: | ||
Payments on current portion of long-term debt | 0 | (202) |
Payments on long-term debt | (437) | (21) |
Payments on revolving credit facility | (1,357) | (2,803) |
Borrowings under revolving credit facility | 1,317 | 2,517 |
Change in bank drafts outstanding | (33) | 34 |
Cash paid for tax withholding | (4) | (4) |
Net cash used in financing activities | (514) | (479) |
Decrease in cash and cash equivalents | (47) | (7) |
Cash and cash equivalents at beginning of year | 50 | 28 |
Cash and cash equivalents at end of period | $ 3 | $ 21 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Common Stock in Treasury |
Beginning balance (in shares) at Dec. 31, 2021 | 1,158,672,666 | |||||
Beginning balance at Dec. 31, 2021 | $ 2,547 | $ 12 | $ 7,150 | $ (4,388) | $ (25) | $ (202) |
Beginning balance treasury stock (in share) at Dec. 31, 2021 | 44,353,224 | |||||
Comprehensive income (loss): | ||||||
Net income (loss) | (2,675) | (2,675) | ||||
Comprehensive income (loss) | (2,675) | |||||
Stock-based compensation | 1 | 1 | ||||
Performance units vested (in shares) | 2,499,860 | |||||
Performance units vested | 12 | 12 | ||||
Tax withholding - stock compensation (in shares) | (721,070) | |||||
Tax withholding – stock compensation | (4) | (4) | ||||
Ending balance (in shares) at Mar. 31, 2022 | 1,160,451,456 | |||||
Ending balance at Mar. 31, 2022 | (119) | $ 12 | 7,159 | (7,063) | (25) | $ (202) |
Ending balance treasury stock (in share) at Mar. 31, 2022 | 44,353,224 | |||||
Beginning balance (in shares) at Dec. 31, 2022 | 1,161,545,588 | |||||
Beginning balance at Dec. 31, 2022 | $ 4,324 | $ 12 | 7,172 | (2,539) | 6 | $ (327) |
Beginning balance treasury stock (in share) at Dec. 31, 2022 | 61,614,693 | 61,614,693 | ||||
Comprehensive income (loss): | ||||||
Net income (loss) | $ 1,939 | 1,939 | ||||
Other comprehensive loss | (15) | (15) | ||||
Comprehensive income (loss) | 1,924 | |||||
Stock-based compensation | 2 | 2 | ||||
Restricted units vested (in shares) | 1,999,039 | |||||
Restricted units vested | 8 | 8 | ||||
Tax withholding - stock compensation (in shares) | (662,163) | |||||
Tax withholding – stock compensation | (4) | (4) | ||||
Ending balance (in shares) at Mar. 31, 2023 | 1,162,882,464 | |||||
Ending balance at Mar. 31, 2023 | $ 6,254 | $ 12 | $ 7,178 | $ (600) | $ (9) | $ (327) |
Ending balance treasury stock (in share) at Mar. 31, 2023 | 61,614,693 | 61,614,693 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION Nature of Operations Southwestern Energy Company (including its subsidiaries, collectively “Southwestern” or the “Company”) is an independent energy company engaged in natural gas, oil and NGLs development, exploration and production (“E&P”). The Company is also focused on creating and capturing additional value through its marketing business (“Marketing”). Southwestern conducts most of its business through subsidiaries and operates principally in two segments: E&P and Marketing. E&P. Southwestern’s primary business is the development and production of natural gas as well as associated NGLs and oil, with ongoing operations focused on unconventional natural gas and oil reservoirs located in Pennsylvania, West Virginia, Ohio and Louisiana. The Company’s operations in Pennsylvania, West Virginia and Ohio, herein referred to as “Appalachia,” are primarily focused on the Marcellus Shale, the Utica and the Upper Devonian unconventional natural gas and liquids reservoirs. The Company’s operations in Louisiana, herein referred to as “Haynesville,” are primarily focused on the Haynesville and Bossier natural gas reservoirs (“Haynesville and Bossier Shales”). The Company also operates drilling rigs and provides certain oilfield products and services, principally serving the Company’s E&P operations through vertical integration. Marketing. Southwestern’s marketing activities capture opportunities that arise through the marketing and transportation of natural gas, oil and NGLs primarily produced in its E&P operations. Basis of Presentation The accompanying consolidated financial statements were prepared using accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission. Certain information relating to the Company’s organization and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been appropriately condensed or omitted in this Quarterly Report. Principles of Consolidation The consolidated financial statements contained in this report include all normal and recurring material adjustments that, in the opinion of management, are necessary for a fair statement of the financial position, results of operations and cash flows for the interim periods presented herein. It is recommended that these consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 (“2022 Annual Report”). The Company’s significant accounting policies, which have been reviewed and approved by the Audit Committee of the Company’s board of directors (the “Board”), are summarized in Note 1 in the Notes to the Consolidated Financial Statements included in the Company’s 2022 Annual Report. |
ACQUISITIONS
ACQUISITIONS | 3 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS | ACQUISITIONS GEP Haynesville, LLC Merger On November 3, 2021, Southwestern entered into an Agreement and Plan of Merger with Mustang Acquisition Company, LLC (“Mustang”), GEP Haynesville, LLC (“GEPH”) and GEPH Unitholder Rep, LLC (the “GEPH Merger Agreement”). Pursuant to the terms of the GEPH Merger Agreement, GEPH merged with and into Mustang, a subsidiary of Southwestern, and became a wholly-owned subsidiary of Southwestern (the “GEPH Merger”). The GEPH Merger closed on December 31, 2021 and expanded the Company’s operations in the Haynesville. Indigo Natural Resources Merger On June 1, 2021, Southwestern entered into an Agreement and Plan of Merger with Ikon Acquisition Company, LLC (“Ikon”), Indigo Natural Resources LLC (“Indigo”) and Ibis Unitholder Representative LLC (the “Indigo Merger Agreement”). Pursuant to the terms of the Indigo Merger Agreement, Indigo merged with and into Ikon, a subsidiary of Southwestern, and became a wholly-owned subsidiary of Southwestern (the “Indigo Merger”). On August 27, 2021, Southwestern’s stockholders voted to approve the Indigo Merger and the transaction closed on September 1, 2021. The Indigo Merger established Southwestern’s natural gas operations in the Haynesville and Bossier Shales. Merger-Related Expenses The Company did not incur merger-related expenses during 2023. The following table summarizes the merger-related expenses incurred during the three months ended March 31, 2022: For the three months ended March 31, 2022 (in millions) Indigo Merger GEPH Merger Total Transition services $ — $ 18 $ 18 Professional fees (bank, legal, consulting) — 1 1 Contract buyouts, terminations and transfers — 2 2 Due diligence and environmental 1 — 1 Employee-related — 1 1 Other — 2 2 Total merger-related expenses $ 1 $ 24 $ 25 |
REVENUE RECOGNITION
REVENUE RECOGNITION | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION Revenues from Contracts with Customers Natural gas and liquids. Natural gas, oil and NGL sales are recognized when control of the product is transferred to the customer at a designated delivery point. The pricing provisions of the Company’s contracts are primarily tied to a market index with certain adjustments based on factors such as delivery, quality of the product and prevailing supply and demand conditions in the geographic areas in which the Company operates. Under the Company’s sales contracts, the delivery of each unit of natural gas, oil and NGLs represents a separate performance obligation, and revenue is recognized at the point in time when the performance obligations are fulfilled. There is no significant financing component to the Company’s revenues as payment terms are typically within 30 to 60 days of control transfer. Furthermore, consideration from a customer corresponds directly with the value to the customer of the Company’s performance completed to date. As a result, the Company recognizes revenue in the amount for which the Company has a right to invoice and has not disclosed information regarding its remaining performance obligations. The Company records revenue from its natural gas and liquids production in the amount of its net revenue interest in sales from its properties. Accordingly, natural gas and liquid sales are not recognized for deliveries in excess of the Company’s net revenue interest, while natural gas and liquid sales are recognized for any under-delivered volumes. Marketing. The Company, through its marketing affiliate, generally markets natural gas, oil and NGLs for its affiliated E&P companies as well as other joint owners who choose to market with the Company. In addition, the Company markets some products purchased from third parties. Marketing revenues for natural gas, oil and NGL sales are recognized when control of the product is transferred to the customer at a designated delivery point. The pricing provisions of the Company’s contracts are primarily tied to market indices with certain adjustments based on factors such as delivery, quality of the product and prevailing supply and demand conditions. Under the Company’s marketing contracts, the delivery of each unit of natural gas, oil and NGLs represents a separate performance obligation, and revenue is recognized at the point in time when the performance obligations are fulfilled. Customers are invoiced and revenues are recorded each month as natural gas, oil and NGLs are delivered, and payment terms are typically within 30 to 60 days of control transfer. Furthermore, consideration from a customer corresponds directly with the value to the customer of the Company’s performance completed to date. As a result, the Company recognizes revenue in the amount for which the Company has a right to invoice and has not disclosed information regarding its remaining performance obligations. Disaggregation of Revenues The Company presents a disaggregation of E&P revenues by product on the consolidated statements of operations net of intersegment revenues. The following table reconciles operating revenues as presented on the consolidated statements of operations to the operating revenues by segment: (in millions) E&P Marketing Intersegment Total Three months ended March 31, 2023 Gas sales $ 1,136 $ — $ 9 $ 1,145 Oil sales 94 — 1 95 NGL sales 201 — — 201 Marketing — 2,041 (1,362) 679 Other (1) (2) — — (2) Total $ 1,429 $ 2,041 $ (1,352) $ 2,118 (in millions) Three months ended March 31, 2022 Gas sales $ 1,690 $ — $ 2 $ 1,692 Oil sales 110 — 1 111 NGL sales 272 — — 272 Marketing — 2,755 (1,889) 866 Other (2) 2 — — 2 Total $ 2,074 $ 2,755 $ (1,886) $ 2,943 (1) For the three months ended March 31, 2023, other E&P revenues consists primarily of losses on purchaser imbalances associated with natural gas and certain NGLs. (2) For the three months ended March 31, 2022, other E&P revenues consists primarily of gains on purchaser imbalances associated with natural gas and certain NGLs. Associated E&P revenues are also disaggregated for analysis on a geographic basis by the core areas in which the Company operates, which are primarily Appalachia and Haynesville. For the three months (in millions) 2023 2022 Appalachia $ 923 $ 1,321 Haynesville 506 753 Total $ 1,429 $ 2,074 Receivables from Contracts with Customers The following table reconciles the Company’s receivables from contracts with customers to consolidated accounts receivable as presented on the consolidated balance sheet: (in millions) March 31, 2023 December 31, 2022 Receivables from contracts with customers $ 567 $ 1,313 Other accounts receivable 100 88 Total accounts receivable $ 667 $ 1,401 Amounts recognized against the Company’s allowance for doubtful accounts related to receivables arising from contracts with customers were immaterial for both the three months ended March 31, 2023 and year ended December 31, 2022. The Company has no contract assets or contract liabilities associated with its revenues from contracts with customers. |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 3 Months Ended |
Mar. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS The following table presents a summary of cash and cash equivalents as of March 31, 2023 and December 31, 2022: (in millions) March 31, 2023 December 31, 2022 Cash $ 2 $ 49 Marketable securities (1) 1 1 Total $ 3 $ 50 (1) Typically consists of government stable value money market funds. |
NATURAL GAS AND OIL PROPERTIES
NATURAL GAS AND OIL PROPERTIES | 3 Months Ended |
Mar. 31, 2023 | |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | |
NATURAL GAS AND OIL PROPERTIES | NATURAL GAS AND OIL PROPERTIES The Company utilizes the full cost method of accounting for costs related to the development, exploration and acquisition of natural gas and oil properties. Under this method, all such costs (productive and nonproductive), including salaries, benefits and other internal costs directly attributable to these activities, are capitalized on a country-by-country basis and amortized over the estimated lives of the properties using the units-of-production method. These capitalized costs are subject to a ceiling test that limits such pooled costs, net of applicable deferred taxes, to the aggregate of the present value of future net revenues attributable to proved natural gas, oil and NGL reserves discounted at 10% (standardized measure). Any costs in excess of the ceiling are written off as a non-cash expense. The expense may not be reversed in future periods, even though higher natural gas, oil and NGL prices may subsequently increase the ceiling. Companies using the full cost method are required to use the average quoted price from the first day of each month from the previous 12 months, including the impact of derivatives designated for hedge accounting, to calculate the ceiling value of their reserves. The Company had no hedge positions that were designated for hedge accounting as of March 31, 2023. Prices used to calculate the ceiling value of reserves were as follows: March 31, 2023 March 31, 2022 Natural gas (per MMBtu) $ 5.96 $ 4.09 Oil (per Bbl) $ 90.97 $ 75.39 NGLs (per Bbl) $ 30.69 $ 32.75 Using the average quoted prices above, adjusted for market differentials, the Company’s net book value of its United States natural gas and oil properties did not exceed the ceiling amount at March 31, 2023. Decreases in market prices as well as changes in production rates, levels of reserves, evaluation of costs excluded from amortization, future development costs and production costs could result in future non-cash ceiling test impairments to the Company’s natural gas and oil properties. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the reportable period. The diluted earnings per share calculation adds to the weighted average number of common shares outstanding: the incremental shares that would have been outstanding assuming the exercise of dilutive stock options, the vesting of unvested restricted shares of common stock, restricted stock units and performance units. An antidilutive impact is an increase in earnings per share or a reduction in net loss per share resulting from the conversion, exercise or contingent issuance of certain securities. The following table presents the computation of earnings per share for the three months ended March 31, 2023 and 2022: For the three months ended March 31, (in millions, except share/per share amounts) 2023 2022 Net income (loss) $ 1,939 $ (2,675) Number of common shares: Weighted average outstanding 1,100,278,261 1,114,610,964 Issued upon assumed exercise of outstanding stock options — — Effect of issuance of non-vested restricted common stock 790,131 — Effect of issuance of non-vested restricted units 1,328,244 — Effect of issuance of non-vested performance units — — Weighted average and potential dilutive outstanding 1,102,396,636 1,114,610,964 Earnings (loss) per common share Basic $ 1.76 $ (2.40) Diluted $ 1.76 $ (2.40) The following table presents the common stock shares equivalent excluded from the calculation of diluted earnings per share for the three months ended March 31, 2023 and 2022, as they would have had an antidilutive effect: For the three months ended March 31, 2023 2022 Unexercised stock options 866,318 2,948,488 Unvested restricted common stock — 1,436,920 Restricted units 1,914,812 2,528,005 Performance units 326,088 1,917,579 Total 3,107,218 8,830,992 |
DERIVATIVES AND RISK MANAGEMENT
DERIVATIVES AND RISK MANAGEMENT | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND RISK MANAGEMENT | DERIVATIVES AND RISK MANAGEMENT The Company is exposed to volatility in market prices and basis differentials for natural gas, oil and NGLs which impacts the predictability of its cash flows related to the sale of those commodities. These risks are managed by the Company’s use of certain derivative financial instruments. As of March 31, 2023 and March 31, 2022, the Company’s derivative financial instruments consisted of fixed price swaps, two-way costless collars, three-way costless collars, basis swaps, options (calls and puts), index swaps and interest rate swaps. A description of the Company’s derivative financial instruments is provided below: Fixed price swaps If the Company sells a fixed price swap, the Company receives a fixed price for the contract, and pays a floating market price to the counterparty. If the Company purchases a fixed price swap, the Company receives a floating market price for the contract and pays a fixed price to the counterparty. Two-way costless collars Arrangements that contain a fixed floor price (“purchased put option”) and a fixed ceiling price (“sold call option”) based on an index price which, in aggregate, have no net cost. At the contract settlement date, (1) if the index price is higher than the ceiling price, the Company pays the counterparty the difference between the index price and ceiling price, (2) if the index price is between the floor and ceiling prices, no payments are due from either party, and (3) if the index price is below the floor price, the Company will receive the difference between the floor price and the index price. Three-way costless collars Arrangements that contain a purchased put option, a sold call option and a sold put option based on an index price that, in aggregate, have no net cost. At the contract settlement date, (1) if the index price is higher than the sold call strike price, the Company pays the counterparty the difference between the index price and sold call strike price, (2) if the index price is between the purchased put strike price and the sold call strike price, no payments are due from either party, (3) if the index price is between the sold put strike price and the purchased put strike price, the Company will receive the difference between the purchased put strike price and the index price, and (4) if the index price is below the sold put strike price, the Company will receive the difference between the purchased put strike price and the sold put strike price. Basis swaps Arrangements that guarantee a price differential for natural gas from a specified delivery point. If the Company sells a basis swap, the Company receives a payment from the counterparty if the price differential is greater than the stated terms of the contract and pays the counterparty if the price differential is less than the stated terms of the contract. If the Company purchases a basis swap, the Company pays the counterparty if the price differential is greater than the stated terms of the contract and receives a payment from the counterparty if the price differential is less than the stated terms of the contract. Options (Calls and Puts) The Company purchases and sells options in exchange for premiums. If the Company purchases a call option, the Company receives from the counterparty the excess (if any) of the market price over the strike price of the call option at the time of settlement, but if the market price is below the call’s strike price, no payment is due from either party. If the Company sells a call option, the Company pays the counterparty the excess (if any) of the market price over the strike price of the call option at the time of settlement, but if the market price is below the call’s strike price, no payment is due from either party. If the Company purchases a put option, the Company receives from the counterparty the excess (if any) of the strike price over the market price of the put option at the time of settlement, but if the market price is above the put’s strike price, no payment is due from either party. If the Company sells a put option, the Company pays the counterparty the excess (if any) of the strike price over the market price of the put option at the time of settlement, but if the market price is above the put’s strike price, no payment is due from either party. Index swaps Natural gas index swaps are used to manage the Company’s exposure to volatility in daily cash market pricing. When the Company sells an index swap, the Company pays an amount equal to the average of the daily index price for a given month at a specified location and receives a first of month index price based on the same location. Interest rate swaps Interest rate swaps are used to fix or float interest rates on existing or anticipated indebtedness. The purpose of these instruments is to manage the Company’s existing or anticipated exposure to unfavorable interest rate changes. The Company contracts with counterparties for its derivative instruments that it believes are creditworthy at the time the transactions are entered into, and the Company actively monitors the credit ratings and credit default swap rates of these counterparties where applicable. However, there can be no assurance that a counterparty will be able to meet its obligations to the Company. The Company presents its derivatives position on a gross basis and does not net the asset and liability positions. The following tables provide information about the Company’s financial instruments that are sensitive to changes in commodity prices and that are used to protect the Company’s exposure. None of the financial instruments below are designated for hedge accounting treatment. The tables present the notional amount, the weighted average contract prices and the fair value by expected maturity dates as of March 31, 2023: Financial Protection on Production Weighted Average Price per MMBtu Volume (Bcf) Swaps Sold Puts Purchased Puts Sold Calls Basis Differential Fair Value at March 31, 2023 (in millions) Natural Gas 2023 Fixed price swaps 453 $ 3.15 $ — $ — $ — $ — $ 169 Two-way costless collars 116 — — 2.86 3.21 — 30 Three-way costless collars 145 — 2.07 2.49 2.91 — (31) Total 714 $ 168 2024 Fixed price swaps 528 $ 3.54 $ — $ — $ — $ — $ (42) Two-way costless collars 44 — — 3.07 3.53 — (15) Three-way costless collars 11 — 2.25 2.80 3.54 — (8) Total 583 $ (65) 2025 Three-way costless collars 99 $ — $ 2.50 $ 3.75 $ 5.69 $ — $ (8) Basis Swaps 2023 220 $ — $ — $ — $ — $ (0.63) $ (26) 2024 46 — — — — (0.71) 5 2025 9 — — — — (0.64) 2 Total 275 $ (19) Volume (MBbls) Weighted Average Strike Price per Bbl Fair Value at March 31, 2023 (in millions) Swaps Sold Puts Purchased Puts Sold Calls Oil 2023 Fixed price swaps 999 $ 62.61 $ — $ — $ — $ (11) Two-way costless collars 294 — — 70.00 80.58 — Three-way costless collars 926 — 34.09 45.68 56.07 (18) Total 2,219 $ (29) 2024 Fixed price swaps 1,571 $ 71.06 $ — $ — $ — $ — Two-way costless collars 146 — — 70.00 78.25 — Total 1,717 $ — 2025 Fixed price swaps 41 $ 77.66 $ — $ — $ — $ — Ethane 2023 Fixed price swaps 5,570 $ 11.51 $ — $ — $ — $ 12 2024 Fixed price swaps 1,305 $ 10.81 $ — $ — $ — $ 1 Propane 2023 Fixed price swaps 3,592 $ 36.31 $ — $ — $ — $ 9 2024 Fixed price swaps 1,094 $ 35.70 $ — $ — $ — $ 2 Normal Butane 2023 Fixed price swaps 591 $ 40.96 $ — $ — $ — $ 1 2024 Fixed price swaps 329 $ 40.74 $ — $ — $ — $ 1 Natural Gasoline 2023 Fixed price swaps 512 $ 63.74 $ — $ — $ — $ — 2024 Fixed price swaps 329 $ 64.37 $ — $ — $ — $ 1 Other Derivative Contracts Volume (Bcf) Weighted Average Strike Price per MMBtu Fair Value at March 31, 2023 (in millions) Call Options – Natural Gas (Net) 2023 36 $ 2.95 $ (16) 2024 9 3.00 (11) Total 45 $ (27) Volume (MBbls) Weighted Average Strike Price per Bbl Fair Value at March 31, 2023 (in millions) Put Options – Oil (Net) 2023 127 $ 73.50 $ — At March 31, 2023, the net fair value of the Company’s financial instruments was a $46 million asset, which included net reduction of the asset of $1 million related to non-performance risk. See Note 9 for additional details regarding the Company’s fair value measurements of its derivatives position. As of March 31, 2023, the Company had no positions designated for hedge accounting treatment. Gains and losses on derivatives that are not designated for hedge accounting treatment, or do not meet hedge accounting requirements, are recorded as a component of gain (loss) on derivatives on the consolidated statements of operations. Accordingly, the gain (loss) on derivatives component of the statement of operations reflects the gains and losses on both settled and unsettled derivatives. Only the settled gains and losses are included in the Company’s realized commodity price calculations. The balance sheet classification of the assets and liabilities related to derivative financial instruments are summarized below as of March 31, 2023 and December 31, 2022: Derivative Assets Fair Value (in millions) Balance Sheet Classification March 31, 2023 December 31, 2022 Derivatives not designated as hedging instruments: Fixed price swaps – natural gas Derivative assets $ 227 $ — Fixed price swaps – oil Derivative assets 1 — Fixed price swaps – ethane Derivative assets 12 4 Fixed price swaps – propane Derivative assets 11 9 Fixed price swaps – normal butane Derivative assets 1 1 Fixed price swaps – natural gasoline Derivative assets 1 1 Two-way costless collars – natural gas Derivative assets 137 47 Two-way costless collars – oil Derivative assets 2 — Three-way costless collars – natural gas Derivative assets 51 18 Three-way costless collars – oil Derivative assets — 1 Basis swaps – natural gas Derivative assets 15 64 Put options – natural gas Derivative assets 6 — Fixed price swaps – natural gas Other long-term assets 105 28 Fixed price swaps – oil Other long-term assets 2 1 Fixed price swaps – ethane Other long-term assets 1 1 Fixed price swaps – propane Other long-term assets 1 1 Fixed price swaps – normal butane Other long-term assets 1 — Fixed price swaps – natural gasoline Other long-term assets 1 — Two-way costless collars – natural gas Other long-term assets 16 18 Two-way costless collars – oil Other long-term assets 1 — Three-way costless collars – natural gas Other long-term assets 66 3 Basis swaps – natural gas Other long-term assets 9 17 Put options – natural gas Other long-term assets — 4 Total derivative assets $ 667 $ 218 Derivative Liabilities Fair Value (in millions) Balance Sheet Classification March 31, 2023 December 31, 2022 Derivatives not designated as hedging instruments: Fixed price swaps – natural gas Derivative liabilities $ 97 $ 581 Fixed price swaps – oil Derivative liabilities 14 20 Fixed price swaps – ethane Derivative liabilities — 1 Fixed price swaps – propane Derivative liabilities 1 — Fixed price swaps – natural gasoline Derivative liabilities 1 1 Two-way costless collars – natural gas Derivative liabilities 112 235 Two-way costless collars – oil Derivative liabilities 2 — Three-way costless collars – natural gas Derivative liabilities 91 311 Three-way costless collars – oil Derivative liabilities 18 31 Basis swaps – natural gas Derivative liabilities 41 69 Call options – natural gas Derivative liabilities 27 70 Put options – natural gas Derivative liabilities 6 — Fixed price swaps – natural gas Long-term derivative liabilities 108 281 Fixed price swaps – oil Long-term derivative liabilities — 4 Two-way costless collars – natural gas Long-term derivative liabilities 26 56 Two-way costless collars – oil Long-term derivative liabilities 1 — Three-way costless collars – natural gas Long-term derivative liabilities 73 20 Basis swap – natural gas Long-term derivative liabilities 2 1 Call options – natural gas Long-term derivative liabilities — 18 Total derivative liabilities $ 620 $ 1,699 Net Derivative Position March 31, 2023 December 31, 2022 (in millions) Net current derivative asset (liability) $ 54 $ (1,174) Net long-term derivative liabilities (7) (307) Non-performance risk adjustment (1) 3 Net total derivative asset (liability) $ 46 $ (1,478) The following tables summarize the before-tax effect of the Company’s derivative instruments on the consolidated statements of operations for the three months ended March 31, 2023 and 2022: Unsettled Gain (Loss) on Derivatives Recognized in Earnings Consolidated Statement of Operations Classification of Gain (Loss) on Derivatives, Unsettled For the three months ended March 31, Derivative Instrument 2023 2022 (in millions) Fixed price swaps – natural gas Gain (Loss) on Derivatives $ 961 $ (1,853) Fixed price swaps – oil Gain (Loss) on Derivatives 12 (53) Fixed price swaps – ethane Gain (Loss) on Derivatives 9 (21) Fixed price swaps – propane Gain (Loss) on Derivatives 1 (49) Fixed price swaps – normal butane Gain (Loss) on Derivatives 1 (20) Fixed price swaps – natural gasoline Gain (Loss) on Derivatives 1 (28) Two-way costless collars – natural gas Gain (Loss) on Derivatives 241 (342) Two-way costless collars – ethane Gain (Loss) on Derivatives — 1 Three-way costless collars – natural gas Gain (Loss) on Derivatives 263 (724) Three-way costless collars – oil Gain (Loss) on Derivatives 12 (33) Three-way costless collars – propane Gain (Loss) on Derivatives — (2) Basis swaps – natural gas Gain (Loss) on Derivatives (30) 36 Call options – natural gas Gain (Loss) on Derivatives 61 (149) Put options – natural gas Gain (Loss) on Derivatives (4) — Purchased fixed price swap – natural gas storage Gain (Loss) on Derivatives — 1 Fixed price swap – natural gas storage Gain (Loss) on Derivatives — 1 Interest rate swaps Gain (Loss) on Derivatives — (2) Total gain (loss) on unsettled derivatives $ 1,528 $ (3,237) Settled Gain (Loss) on Derivatives Recognized in Earnings (1) Consolidated Statement of Operations Classification of Gain (Loss) on Derivatives, Settled For the three months ended March 31, Derivative Instrument 2023 2022 (in millions) Fixed price swaps – natural gas Gain (Loss) on Derivatives $ (45) $ (297) Fixed price swaps – oil Gain (Loss) on Derivatives (4) (33) Fixed price swaps – ethane Gain (Loss) on Derivatives 1 (8) Fixed price swaps – propane Gain (Loss) on Derivatives 1 (41) Fixed price swaps – normal butane Gain (Loss) on Derivatives — (14) Fixed price swaps – natural gasoline Gain (Loss) on Derivatives — (19) Two-way costless collars – natural gas Gain (Loss) on Derivatives — (104) Two-way costless collars – ethane Gain (Loss) on Derivatives — (1) Three-way costless collars – natural gas Gain (Loss) on Derivatives (33) (121) Three-way costless collars – oil Gain (Loss) on Derivatives (7) (13) Three-way costless collars – propane Gain (Loss) on Derivatives — (2) Basis swaps – natural gas Gain (Loss) on Derivatives (29) 1 Index swaps – natural gas Gain (Loss) on Derivatives — (1) Call options – natural gas Gain (Loss) on Derivatives (7) (39) Fixed price swaps – natural gas storage Gain (Loss) on Derivatives — (3) Total loss on settled derivatives $ (123) $ (695) Total gain (loss) on derivatives $ 1,401 (1) $ (3,927) (1) The Company calculates gain (loss) on derivatives, settled, as the summation of gains and losses on positions that settled within the period. Total gain (loss) on derivatives includes non-performance risk adjustments of $4 million in losses and $5 million in gains for three months ended March 31, 2023 and March 31, 2022, respectively. Total Gain (Loss) on Derivatives Recognized in Earnings For the three months ended March 31, 2023 2022 (in millions) Total gain (loss) on unsettled derivatives $ 1,528 $ (3,237) Total loss on settled derivatives (123) (695) Non-performance risk adjustment (4) 5 Total gain (loss) on derivatives $ 1,401 $ (3,927) |
RECLASSIFICATIONS FROM ACCUMULA
RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 3 Months Ended |
Mar. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following tables detail the components of accumulated other comprehensive income for the three months ended March 31, 2023: (in millions) Pension and Other Postretirement Foreign Currency Total Beginning balance December 31, 2022 $ 20 $ (14) $ 6 Other comprehensive income before reclassifications 1 — 1 Amounts reclassified from other comprehensive income (1) (16) — (16) Net current-period other comprehensive loss (15) — (15) Ending balance March 31, 2023 $ 5 $ (14) $ (9) |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Assets and liabilities measured at fair value on a recurring basis The carrying amounts and estimated fair values of the Company’s financial instruments as of March 31, 2023 and December 31, 2022 were as follows: March 31, 2023 December 31, 2022 (in millions) Carrying Fair Carrying Fair Cash and cash equivalents $ 3 $ 3 $ 50 $ 50 2022 revolving credit facility due April 2027 210 210 250 250 Senior notes (1) 3,743 3,524 4,164 3,847 Derivative instruments, net 46 46 (1,478) (1,478) (1) Excludes unamortized debt issuance costs and debt discounts. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value. As presented in the tables below, this hierarchy consists of three broad levels: Level 1 valuations - Consist of unadjusted quoted prices in active markets for identical assets and liabilities and have the highest priority. Level 2 valuations - Consist of quoted market information for the calculation of fair market value. Level 3 valuations - Consist of internal estimates and have the lowest priority. The carrying values of cash and cash equivalents, including marketable securities, accounts receivable, other current assets, accounts payable and other current liabilities on the consolidated balance sheets approximate fair value because of their short-term nature. For debt and derivative instruments, the following methods and assumptions were used to estimate fair value: Debt: The fair values of the Company’s senior notes are based on the market value of the Company’s publicly traded debt as determined based on the market prices of the Company’s senior notes. The fair values of the Company’s senior notes are considered to be a Level 1 measurement as these are actively traded in the market. The carrying value of the borrowings under the Company’s 2022 credit facility (as defined in Note 10 below), to the extent utilized, approximates fair value because the interest rates are variable and reflective of market rates. The Company considers the fair value of its 2022 credit facility to be a Level 1 measurement on the fair value hierarchy. Derivative Instruments: The Company measures the fair value of its derivative instruments based upon a pricing model that utilizes market-based inputs, including, but not limited to, the contractual price of the underlying position, current market prices, natural gas and liquids forward curves, discount rates for a similar duration of each outstanding position, volatility factors and non-performance risk. Non-performance risk considers the effect of the Company’s credit standing on the fair value of derivative liabilities and the effect of counterparty credit standing on the fair value of derivative assets. Both inputs to the model are based on published credit default swap rates and the duration of each outstanding derivative position. The Company’s net derivative position was a net asset as of March 31, 2023 and a net liability as of December 31, 2022. As of March 31, 2023 and December 31, 2022, the impact of the non-performance risk on the fair value of the Company’s net derivative position resulted in a reduction to the net asset of $1 million and a reduction to the net liability of $3 million, respectively. The Company has classified its derivative instruments into levels depending upon the data utilized to determine their fair values. The Company’s fixed price swaps (Level 2) are estimated using third-party discounted cash flow calculations using the New York Mercantile Exchange (“NYMEX”) futures index for natural gas and oil derivatives and Oil Price Information Service (“OPIS”) for ethane and propane derivatives. The Company utilizes discounted cash flow models for valuing its interest rate derivatives (Level 2). The net derivative values attributable to the Company’s interest rate derivative contracts as of March 31, 2023 and December 31, 2022 are based on (i) the contracted notional amounts, (ii) active market-quoted yield curves and (iii) the applicable credit-adjusted risk-free rate yield curve. The Company had no interest rate swaps as of March 31, 2023 or December 31, 2022. The Company’s call and put options, two-way costless collars and three-way costless collars (Level 2) are valued using the Black-Scholes model, an industry standard option valuation model that takes into account inputs such as contract terms, including maturity, and market parameters, including assumptions of the NYMEX and OPIS futures index, interest rates, volatility and credit worthiness. Inputs to the Black-Scholes model, including the volatility input, are obtained from a third-party pricing source, with independent verification of the most significant inputs on a monthly basis. An increase (decrease) in volatility would result in an increase (decrease) in fair value measurement, respectively. The Company’s basis swaps (Level 2) are estimated using third-party calculations based upon forward commodity price curves. Assets and liabilities measured at fair value on a recurring basis are summarized below: March 31, 2023 Fair Value Measurements Using: (in millions) Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets (Liabilities) at Fair Value Assets Fixed price swaps $ — $ 364 $ — $ 364 Two-way costless collars — 156 — 156 Three-way costless collars — 117 — 117 Basis swaps — 24 — 24 Put options — 6 — 6 Liabilities Fixed price swaps — (221) — (221) Two-way costless collars — (141) — (141) Three-way costless collars — (182) — (182) Basis swaps — (43) — (43) Call options — (27) — (27) Put options — (6) — (6) Total (1) $ — $ 47 $ — $ 47 (1) Excludes a net reduction to the asset fair value of $1 million related to estimated non-performance risk. December 31, 2022 Fair Value Measurements Using: (in millions) Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets (Liabilities) at Fair Value Assets Fixed price swaps $ — $ 46 $ — $ 46 Two-way costless collars — 65 — 65 Three-way costless collars — 22 — 22 Basis swaps — 81 — 81 Purchase Put - Natural Gas — 4 — 4 Liabilities Fixed price swaps — (888) — (888) Two-way costless collars — (291) — (291) Three-way costless collars — (362) — (362) Basis swaps — (70) — (70) Call options — (88) — (88) Total (1) $ — $ (1,481) $ — $ (1,481) (1) Excludes a net reduction to the liability fair value of $3 million related to estimated non-performance risk. See Note 1 3 |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT The components of debt as of March 31, 2023 and December 31, 2022 consisted of the following: March 31, 2023 (in millions) Debt Instrument Unamortized Issuance Expense Unamortized Debt Premium/Discount Total Long-term debt: Variable rate (6.69% at March 31, 2023) 2022 revolving credit facility due April 2027 $ 210 $ — (1) $ — $ 210 4.95% Senior Notes due January 2025 (2) 389 (1) — 388 8.375% Senior Notes due September 2028 304 (3) — 301 5.375% Senior Notes due February 2029 700 (5) 21 716 5.375% Senior Notes due March 2030 1,200 (15) — 1,185 4.75% Senior Notes due February 2032 1,150 (15) — 1,135 Total long-term debt $ 3,953 $ (39) $ 21 $ 3,935 Total debt $ 3,953 $ (39) $ 21 $ 3,935 December 31, 2022 (in millions) Debt Instrument Unamortized Issuance Expense Unamortized Debt Premium/Discount Total Long-term debt: Variable rate (6.15% at December 31, 2022) 2022 revolving credit facility, due April 2027 $ 250 $ — (1) $ — $ 250 4.95% Senior Notes due January 2025 (2) 389 (1) — 388 7.75% Senior Notes due October 2027 421 (3) — 418 8.375% Senior Notes due September 2028 304 (3) — 301 5.375% Senior Notes due February 2029 700 (5) 22 717 5.375% Senior Notes due March 2030 1,200 (16) — 1,184 4.75% Senior Notes due February 2032 1,150 (16) — 1,134 Total long-term debt $ 4,414 $ (44) $ 22 $ 4,392 Total debt $ 4,414 $ (44) $ 22 $ 4,392 (1) At March 31, 2023 and December 31, 2022, unamortized issuance expense of $18 million and $19 million, respectively, associated with the 2022 credit facility (as defined below) was classified as other long-term assets on the consolidated balance sheets. (2) Effective in July 2018, the interest rate was 6.20% for the 2025 Notes, reflecting a net downgrade in the Company’s bond ratings since the initial offering. On April 7, 2020, S&P downgraded the Company’s bond rating to BB-, which had the effect of increasing the interest rate on the 2025 Notes to 6.45% following the July 23, 2020 interest payment date. The first coupon payment to the bondholders at the higher interest rate was paid in January 2021. On September 1, 2021, S&P upgraded the Company’s bond rating to BB, and on January 6, 2022, S&P further upgraded the Company’s bond rating to BB+, which decreased the interest rate on the 2025 Notes to 5.95% beginning with coupon payments paid after January 2022. On May 31, 2022, Moody’s upgraded the Company’s bond rating to Ba1, which decreased the interest rate on the 2025 Notes from 5.95% to 5.70% for coupon payments paid after July 2022. The following is a summary of scheduled debt maturities by year as of March 31, 2023: (in millions) 2023 $ — 2024 — 2025 389 2026 — 2027 210 Thereafter 3,354 $ 3,953 Credit Facilities 2022 Credit Facility On April 8, 2022, the Company entered into an Amended and Restated Credit Agreement that replaces its previous credit facility with a group of banks, that as amended, has a maturity date of April 2027 (the “2022 credit facility”). As of March 31, 2023, the 2022 credit facility has an aggregate maximum revolving credit amount and borrowing base of $3.5 billion and elected five-year revolving commitments of $2.0 billion (the “Five-Year Tranche”) and elected short-term commitments of $500 million (the “Short-Term Tranche”). The borrowing base is subject to redetermination at least twice a year, which typically occurs in April and October, and is secured by substantially all of the assets owned by the Company and its subsidiaries. On April 5, 2023, the Company’s borrowing base was reaffirmed at $3.5 billion and both the Five-Year Tranche and Short-Term Tranche were reaffirmed at $2.0 billion and $500 million, respectively. The Five-Year Tranche and Short-Term Tranche have maturity dates of April 8, 2027 and April 30, 2023, respectively. Effective August 4, 2022, the Company elected to temporarily increase commitments under the 2022 credit facility by $500 million under the Short-Term Tranche as a temporary working capital liquidity resource. As of March 31, 2023, the Company had no borrowings under the Short-Term Tranche and the short-term commitments will expire on April 30, 2023. The Company may utilize the 2022 credit facility in the form of loans and letters of credit. Loans under the Five-Year Tranche of the 2022 credit facility are subject to varying rates of interest based on whether the loan is a Secured Overnight Financing Rate (“SOFR”) loan or an alternate base rate loan. Term SOFR loans bear interest at term SOFR plus an applicable rate ranging from 1.75% to 2.75% based on the Company’s utilization of the Five-Year Tranche of the 2022 credit facility, plus a 0.10% credit spread adjustment. Base rate loans bear interest at a base rate per year equal to the greatest of: (i) the prime rate; (ii) the federal funds effective rate plus 0.50%; and (iii) the adjusted term SOFR rate for a one-month interest period plus 1.00%, plus an applicable margin ranging from 0.75% to 1.75%, depending on the percentage of the commitments utilized. Commitment fees on unused commitment amounts under the Five-Year Tranche of the 2022 credit facility range between 0.375% to 0.50%, depending on the percentage of the commitments utilized. The 2022 credit facility contains customary representations and warranties and covenants including, among others, the following: • A prohibition against incurring debt, subject to permitted exceptions; • A restriction on creating liens on assets, subject to permitted exceptions; • Restrictions on mergers and asset dispositions; • Restrictions on use of proceeds, investments, declaring dividends, repurchasing junior debt, transactions with affiliates, or change of principal business; and • Maintenance of the following financial covenants, commencing with the fiscal quarter ended March 31, 2022: 1. Minimum current ratio of not less than 1.00 to 1.00, whereby current ratio is defined as the Company’s consolidated current assets (including unused commitments under the credit agreement, but excluding non-cash derivative assets) to consolidated current liabilities (excluding non-cash derivative obligations and current maturities of long-term debt). 2. Maximum total net leverage ratio of not greater than, with respect to the prior four fiscal quarters ending on or after March 31, 2022, 4.00 to 1.00. Total net leverage ratio is defined as total debt less cash on hand (up to the lesser of 10% of credit limit or $150 million) divided by consolidated EBITDAX for the last four consecutive quarters. EBITDAX, as defined in the credit agreement governing the Company’s 2022 credit facility, excludes the effects of interest expense, depreciation, depletion and amortization, income tax, any non-cash impacts from impairments, certain non-cash hedging activities, stock-based compensation expense, non-cash gains or losses on asset sales, unamortized issuance cost, unamortized debt discount and certain restructuring costs. The 2022 credit facility contains customary events of default that include, among other things, the failure to comply with the financial covenants described above, non-payment of principal, interest or fees, violation of covenants, inaccuracy of representations and warranties, bankruptcy and insolvency events, material judgments and cross-defaults to material indebtedness. If an event of default occurs and is continuing, all amounts outstanding under the 2022 credit facility may become immediately due and payable. As of March 31, 2023, the Company was in compliance with all of the covenants of the credit agreement in all material respects. Currently, each United States domestic subsidiary of the Company for which the Company owns 100% of its equity guarantees the 2022 credit facility. Pursuant to requirements under the indentures governing its senior notes, each subsidiary that becomes a guarantor of the 2022 credit facility also must become a guarantor of each of the Company’s senior notes. Certain features of the facility depend on whether Southwestern has obtained any of the following ratings: • An unsecured long-term debt credit rating (an “Index Debt Rating”) of BBB- or higher with S&P; • An Index Debt Rating of Baa3 or higher with Moody’s; or • An Index Debt Rating of BBB- or higher with Fitch (each of the foregoing an “Investment Grade Rating”). Upon receiving one Investment Grade Rating from either S&P or Moody’s and delivering a certification to the administrative agent (the period beginning at such time, an “Interim Investment Grade Period”), amongst other changes, the following occurs: • The Guarantors may be released from their guarantees; • The collateral under the facility will be released; • The facility will no longer be subject to a borrowing base; and • Certain title and collateral-related covenants will no longer be applicable. During the Interim Investment Grade Period, the Company will be required to maintain compliance with the existing financial covenants as well as a PV-9 coverage ratio of the net present value, discounted at 9% per annum, of the estimated future net revenues expected in the proved reserves to the Company’s total indebtedness as of such date of not less than 1.50 to 1.00 (“PV-9 Coverage Ratio”). In addition, during an Interim Investment Grade Period or Investment Grade Period (as defined below), term SOFR loans will bear interest at term SOFR plus an applicable rate ranging from 1.25% to 1.875%, depending on the Company’s Index Debt Rating (as defined in the 2022 credit facility), plus an additional 0.10% credit spread adjustment. Base rate loans will bear interest at the base rate described above plus an applicable rate ranging from 0.25% to 0.875%, depending on the Company’s Index Debt Rating. During an Interim Investment Grade Period or Investment Grade Period (defined below), the commitment fee on unused commitment amounts under the facility will range from 0.15% to 0.275%, depending on the Company’s Index Debt Rating. The Interim Investment Grade Period will end, and the facility will revert to its characteristics prior to the Interim Investment Grade Period, including being guaranteed by the Guarantors, being secured by collateral and being subject to a borrowing base, having applicable margins and commitment fee determined based on percentage of commitments utilized, as well as limited to compliance with the leverage ratio and current ratio financial covenants but not the PV-9 Coverage Ratio if both of the following are achieved during the Interim Investment Grade Period: • An Index Debt Rating from Moody’s that is Ba2 or lower; and • An Index Debt Rating from S&P that is BB or lower. Upon receiving two Investment Grade Ratings from S&P, Moody’s, or Fitch (such period following, an “Investment Grade Period”), certain restrictive covenants fall away or become more permissive. Upon Investment Grade Period, the leverage ratio and current ratio financial covenants and PV-9 Coverage Ratio will no longer be effective, and the Company will be required to maintain compliance with a total indebtedness to capitalization ratio, which is the ratio of the Company’s total indebtedness to the sum of total indebtedness plus stockholders’ equity, not to exceed 65%. As of March 31, 2023, the Company had $89 million in letters of credit and $210 million in borrowings outstanding under the 2022 credit facility. The Company currently does not anticipate being required to supply a materially greater amount of letters of credit under its existing contracts. Senior Notes In January 2015, the Company completed a public offering of $1.0 billion aggregate principal amount of its 4.95% Senior Notes due 2025 (the “2025 Notes”). The interest rate on the 2025 Notes is determined based upon the public bond ratings from Moody’s and S&P. Downgrades on the 2025 Notes from either rating agency increase interest costs by 25 basis points per downgrade level and upgrades decrease interest costs by 25 basis points per upgrade level, up to the stated coupon rate, on the following semi-annual bond interest payment. Effective in July 2018, the interest rate for the 2025 Notes was 6.20%, reflecting a net downgrade in the Company’s bond ratings since their issuance. On April 7, 2020, S&P downgraded the Company’s bond rating to BB-, which had the effect of increasing the interest rate on the 2025 Notes to 6.45% following the July 23, 2020 interest payment due date. The first coupon payment to the 2025 Notes bondholders at the higher interest rate was paid in January 2021. On September 1, 2021, S&P upgraded the Company’s bond rating to BB, and on January 6, 2022, S&P further upgraded the Company’s bond rating to BB+, which decreased the interest rate on the 2025 Notes to 5.95% beginning with coupon payments paid after January 2022. On May 31, 2022, Moody’s upgraded the Company’s bond rating to Ba1, which decreased the interest rate on the 2025 Notes from 5.95% to 5.70% for coupon payments paid after July 2022. In the first quarter of 2022, the Company redeemed the remaining outstanding principal balance of $201 million of its 4.10% Senior Notes due 2022, $5 million of its 8.375% Senior Notes due 2028 and $15 million of its 7.75% Senior Notes due 2027 for a total of $223 million, and recognized a $2 million loss on debt extinguishment. On February 26, 2023, the Company redeemed all of its outstanding 7.75% Senior Notes due 2027 (the “2027 Notes”) at a redemption price equal to 103.875% of the outstanding principal amount plus accrued interest of $13 million for a total payment of $450 million. The Company recognized a $19 million loss on the extinguishment of debt, which included the write-off of $3 million in related unamortized debt discounts and debt issuance costs. The Company funded the redemption of the 2027 Notes using approximately $316 million of cash on hand and approximately $134 million of borrowings under the 2022 credit facility. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Operating Commitments and Contingencies As of March 31, 2023, the Company’s contractual obligations for demand and similar charges under firm transportation and gathering agreements to guarantee access capacity on natural gas and liquids pipelines and gathering systems totaled approximately $10 billion, $1.3 billion of which related to access capacity on future pipeline and gathering infrastructure projects that still require the granting of regulatory approvals and additional construction efforts. The Company also had guarantee obligations of up to $853 million of that total amount. As of March 31, 2023, future payments under non-cancelable firm transportation and gathering agreements were as follows: Payments Due by Period (in millions) Total Less than 1 1 to 3 Years 3 to 5 Years 5 to 8 Years More than 8 Infrastructure currently in service $ 8,703 $ 1,045 $ 1,892 $ 1,692 $ 1,833 $ 2,241 Pending regulatory approval and/or construction (1) 1,302 38 218 262 368 416 Total transportation charges $ 10,005 $ 1,083 $ 2,110 $ 1,954 $ 2,201 $ 2,657 (1) Based on estimated in-service dates as of March 31, 2023. Environmental Risk The Company is subject to laws and regulations relating to the protection of the environment. Environmental and cleanup related costs of a non-capital nature are accrued when it is both probable that a liability has been incurred and when the amount can be reasonably estimated. Management believes any future remediation or other compliance related costs will not have a material effect on the financial position, results of operations or cash flows of the Company. Litigation The Company is subject to various litigation, claims and proceedings, most of which have arisen in the ordinary course of business, such as for alleged breaches of contract, miscalculation of royalties, employment matters, traffic accidents, pollution, contamination, encroachment on others’ property or nuisance. The Company accrues for litigation, claims and proceedings when a liability is both probable and the amount can be reasonably estimated. As of March 31, 2023, the Company does not currently have any material amounts accrued related to litigation matters, including the case discussed below. For any matters not accrued for, it is not possible at this time to estimate the amount of any additional loss, or range of loss, that is reasonably possible, but, based on the nature of the claims, management believes that current litigation, claims and proceedings, individually or in aggregate and after taking into account insurance, are not likely to have a material adverse impact on the Company’s financial position, results of operations or cash flows, for the period in which the effect of that outcome becomes reasonably estimable. Many of these matters are in early stages, so the allegations and the damage theories have not been fully developed, and are all subject to inherent uncertainties; therefore, management’s view may change in the future. Bryant Litigation As discussed in Note 2 , on September 1, 2021, the Company completed its merger with Indigo, resulting in the assumption of Indigo’s existing litigation. On June 12, 2018, a collection of 51 individuals and entities filed a lawsuit against fifteen oil and gas company defendants, including Indigo, in Louisiana state court claiming damages arising out of current and historical development and production activity on certain acreage located in DeSoto Parish, Louisiana. The plaintiffs, who claim to own the properties at issue, assert that Indigo’s actions and the actions of other current operators conducting development and production activity, combined with the improper plugging and abandoning of legacy wells by former operators, have caused environmental contamination to their properties. Among other things, the plaintiffs contend that the defendants’ conduct resulted in the migration of natural gas, along with oilfield contaminants, into the Carrizo-Wilcox aquifer system underlying certain portions of DeSoto Parish. The plaintiffs assert claims based in tort, breach of contract and for violations of the Louisiana Civil and Mineral Codes, and they seek injunctive relief and monetary damages in an unspecified amount, including punitive damages. On September 13, 2018, Indigo filed a variety of exceptions in response to the plaintiffs’ petition in this matter. Since the initial filing, supplemental petitions have been filed joining additional individuals and entities as plaintiffs in the matter. On September 29, 2020, plaintiffs filed their fourth supplemental and amending petition in response to the court’s order ruling that plaintiffs’ claims were improperly vague and failed to identify with reasonable specificity the defendants’ allegedly wrongful conduct. Indigo and the majority of the other defendants filed several exceptions to plaintiffs’ fourth amended petition challenging the sufficiency of plaintiffs’ allegations and seeking dismissal of certain claims. On February 18, 2021, plaintiffs filed a fifth supplemental and amending petition, which seeks to augment the claims of select plaintiffs. On October 11, 2021, a sixth supplemental petition was filed which seeks to add the Company as a party to the litigation which the Company has opposed. Plaintiffs later filed seventh and eighth supplemental petitions naming additional defendants. Fact discovery for the case is ongoing. The presence of natural gas in a localized area of the Carrizo-Wilcox aquifer system in DeSoto Parish is currently the subject of a regulatory investigation by the Louisiana Office of Conservation (“Conservation”), and the Company is cooperating and coordinating with Conservation in that investigation. The Conservation matter number is EMER18-003. The Company does not currently expect this matter to have a material impact on its financial position, results of operations, cash flows or liquidity. Indemnifications The Company has provided certain indemnifications to various third parties, including in relation to asset and entity dispositions, securities offerings and other financings. In the case of asset dispositions, these indemnifications typically relate to disputes, litigation or tax matters existing at the date of disposition. The Company likewise obtains indemnification for future matters when it sells assets, although there is no assurance the buyer will be capable of performing those obligations. In the case of equity offerings, these indemnifications typically relate to claims asserted against underwriters in connection with an offering. No material liabilities have been recognized in connection with these indemnifications. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Expense (Benefit), Continuing Operations [Abstract] | |
INCOME TAXES | INCOME TAXES The Company’s effective tax rate was approximately 1% and 0% for the three months ended March 31, 2023 and 2022, respectively, primarily as a result of the partial release of valuation allowances against the Company’s U.S. deferred tax assets in the first quarter of 2023. A valuation allowance for deferred tax assets, including net operating losses (“NOLs”), is recognized when it is more likely than not that some or all of the benefit from the deferred tax assets will not be realized. To assess that likelihood, the Company uses estimates and judgment regarding future taxable income and considers the tax consequences in the jurisdiction where such taxable income is generated, to determine whether a valuation allowance is required. Such evidence can include current financial position, results of operations, both actual and forecasted, the reversal of deferred tax liabilities and tax planning strategies as well as the current and forecasted business economics of the oil and gas industry. For the year ended December 31, 2022, the Company maintained a full valuation allowance against its deferred tax assets based on its conclusion, considering all available evidence (both positive and negative), that it was more likely than not that the deferred tax assets would not be realized. A significant item of objective negative evidence considered was the cumulative pre-tax loss incurred over the three-year period ended December 31, 2022, primarily due to impairments of proved oil and gas properties recognized in 2020. As of the first quarter of 2023, the Company has sustained a three-year cumulative level of profitability. Based on this factor and other positive evidence such as forecasted income, the Company concluded that $523 million of its federal and state deferred tax assets were more likely than not to be realized and plan to release this portion of the valuation allowance in 2023. Accordingly, during the three months ended March 31, 2023, the Company recognized $451 million of deferred income tax expense related to recording its tax provision which was partially offset by $439 million of tax benefit attributable to the release of the valuation allowance. The remaining valuation allowance will be released during subsequent quarters during 2023. The Company expects to keep a valuation allowance of $66 million related to NOLs in jurisdictions in which it no longer operates and against the portion of its federal and state deferred tax assets such as capital losses and interest carryovers, which may expire before being fully utilized due to the application of the limitations under Section 382 and the ordering in which such attributes may be applied. Due to the issuance of common stock associated with the Indigo Merger, the Company incurred a cumulative ownership change and as such, the Company’s NOLs prior to the acquisition are subject to an annual limitation under Internal Revenue Code Section 382 of approximately $48 million. The ownership changes and resulting annual limitation will result in the expiration of NOLs or other tax attributes otherwise available. At March 31, 2023, the Company had approximately $4 billion of federal NOL carryovers, of which approximately $3 billion expire between 2035 and 2037 and $1 billion have an indefinite carryforward life. The Company currently estimates that approximately $2 billion of these federal NOLs will expire before they are able to be used and accordingly, no value has been ascribed to these NOLs on the Company’s balance sheet. If a subsequent ownership change were to occur as a result of future transactions in the Company’s common stock, the Company’s use of remaining U.S. tax attributes may be further limited. The Inflation Reduction Act of 2022 (the “IRA”) was enacted on August 16, 2022 and may impact how the U.S. taxes certain large corporations. The IRA imposes a 15% alternative minimum tax on the “adjusted financial statement income” of certain large corporations (generally, corporations reporting at least $1 billion average adjusted pre-tax net income on their consolidated financial statements) for tax years beginning after December 31, 2022. The Company does not expect to be impacted by this alternative minimum tax during 2023. The Company will continue to monitor updates to the IRA and the impact it will have on the Company’s consolidated financial statements. |
PENSION PLAN AND OTHER POSTRETI
PENSION PLAN AND OTHER POSTRETIREMENT BENEFITS | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
PENSION PLAN AND OTHER POSTRETIREMENT BENEFITS | PENSION PLAN AND OTHER POSTRETIREMENT BENEFITS Prior to January 1, 2021, substantially all of the Company’s employees were covered by the defined benefit pension plan, a cash balance plan that provided benefits based upon a fixed percentage of an employee’s annual compensation (the “Plan”). As part of an ongoing effort to reduce costs, the Company elected to freeze the Plan effective January 1, 2021. Employees that were participants in the Plan prior to January 1, 2021 continued to receive the interest component of the Plan but no longer received the service component. On September 13, 2021, the Compensation Committee of the Board approved terminating the Plan, effective December 31, 2021. This decision, among other benefits, will provide Plan participants quicker access to, and greater flexibility in, the management of participants’ respective benefits due under the Plan. The Company commenced the Plan termination process, and, on April 6, 2022, the Internal Revenue Service issued a favorable determination letter, concurring that the Plan met all of the qualification requirements under the Internal Revenue Code. In December 2022, the Company distributed approximately 40% of the Plan’s assets to participants in the form of lump sum payments in connection with a limited distribution window provided to all active and former employee participants as part of the Plan termination process. In March 2023, the Company entered into a group annuity contract with a qualified insurance company relating to the Plan. Under the group annuity contract, the Company purchased an irrevocable nonparticipating single premium group annuity contract from the insurer and transferred to the insurer the future benefit obligations and annuity administration for remaining retirees and beneficiaries under the Plan. Upon issuance of the group annuity contract, the pension benefit obligations and annuity administration for the remaining participants was irrevocably transferred from the Plan to the insurer. By transferring these obligations through the payment to the insurer in March 2023, the Company has no remaining obligations under the Plan or any other U.S. tax-qualified defined benefit pension plan. The purchase of the group annuity contract was funded directly by the assets of the Plan. The Company recognized a pre-tax non-cash pension settlement charge of approximately $2 million during the three months ended March 31, 2023 as a result of the settlement of the Plan. As of March 31, 2023, the Company had residual Plan assets of $13 million. The Company has not transferred the residual Plan assets to a qualified replacement plan as of March 31, 2023 as the reconciliation process with the insurance company is ongoing. The postretirement benefit plan provides contributory health care and life insurance benefits. Employees become eligible for these benefits if they meet age and service requirements. Generally, the benefits paid are a stated percentage of medical expenses reduced by deductibles and other coverages. Substantially all of the Company’s employees continue to be covered by the postretirement benefit plans. The Company accounts for its defined benefit pension and other postretirement plans by recognizing the funded status of each defined pension benefit plan and other postretirement benefit plan on the Company’s balance sheet. In the event a plan is overfunded, the Company recognizes an asset. Conversely, if a plan is underfunded, the Company recognizes a liability. Net periodic pension costs include the following components for the three months ended March 31, 2023 and 2022: Consolidated Statements of For the three months ended March 31, (in millions) 2023 2022 Service cost General and administrative expenses $ — $ — Interest cost Other Income (Loss), Net — 1 Expected return on plan assets Other Income (Loss), Net (1) — Amortization of prior service cost Other Income (Loss), Net — — Settlement loss Other Income (Loss), Net 2 — Net periodic benefit cost $ 1 $ 1 The Company’s other postretirement benefit plan had a net periodic benefit cost of less than $1 million for both the three months ended March 31, 2023 and 2022. The Company did not make any contributions to the Plan during 2023 and does not expect to do so throughout the completion of the Plan termination process. The Company recognized residual pension assets of $13 million and net pension assets of $15 million related to its pension benefits as of March 31, 2023 and December 31, 2022, respectively. The Company recognized liabilities of $10 million and $9 million related to its other postretirement benefits as of March 31, 2023 and December 31, 2022, respectively. The Company maintains a non-qualified deferred compensation supplemental retirement savings plan (“Non-Qualified Plan”) for certain key employees who may elect to defer and contribute a portion of their compensation, as permitted by the Non-Qualified Plan. Shares of the Company’s common stock purchased under the terms of the Non-Qualified Plan are included in treasury stock and totaled 1,455 shares at March 31, 2023 and 1,743 shares at December 31, 2022. |
LONG-TERM INCENTIVE COMPENSATIO
LONG-TERM INCENTIVE COMPENSATION | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
LONG-TERM INCENTIVE COMPENSATION | LONG-TERM INCENTIVE COMPENSATION The Company’s long-term incentive compensation plans consist of a combination of stock-based awards that derive their value directly or indirectly from the Company’s common stock price, and cash-based awards that are fixed in amount but subject to meeting annual performance thresholds. Stock-Based Compensation The Company’s stock-based compensation is classified as either equity awards or liability awards in accordance with GAAP. The fair value of an equity-classified award is determined at the grant date and is amortized to general and administrative expense on a straight-line basis over the vesting period of the award. A portion of this general and administrative expense is capitalized into natural gas and oil properties, included in property and equipment. The fair value of a liability-classified award is determined on a quarterly basis beginning at the grant date until final vesting. Changes in the fair value of liability-classified awards are recorded to general and administrative expense and capitalized expense over the vesting period of the award. Generally, stock options granted to employees and directors vest ratably over three years from the grant date and expire 10 years from the date of grant. However, the Company has not granted stock options since 2017. The Company issues shares of restricted stock and restricted stock units to employees and directors which generally vest over three years. Restricted stock, restricted stock units and stock options granted under the Southwestern Energy Company 2022 Incentive Plan (the “2022 Plan”) immediately vest upon death, disability or retirement (subject to a minimum of three years of service). To the extent no provision is made in connection with a “change in control” (as defined in the 2022 Plan) for the assumption of awards previously granted under the 2022 Plan or there is no substitution of such awards for new awards, then (i) outstanding time-based awards will become fully vested, and (ii) each outstanding performance-based award will vest with respect to the number of shares of common stock underlying such award or the amount of cash underlying the award eligible to vest based on performance during the performance period that includes the date of the change in control, prorated for the number of days which have elapsed during the performance period prior to the change in control. To the extent an award is assumed or substituted in connection with the change in control, if a participant is terminated by the Company without “cause” or the participant resigns for “good reason” (each as defined in the 2022 Plan) within 12 months following a change in control, then (i) each time-based award will become fully vested, and (ii) each outstanding performance-based award will vest based on performance during the performance period that includes the date of the change in control, prorated for the number of days which have elapsed during the performance period prior to such termination. The Company issues performance unit awards to employees which historically have vested at or over three years. The performance units granted in 2021, 2022 and 2023 cliff-vest at the end of three years. The Company recognized the following amounts in total related to long-term incentive compensation costs for the three months ended March 31, 2023 and 2022: For the three months ended March 31, (in millions) 2023 2022 Long-term incentive compensation – expensed $ 4 $ 11 Long-term incentive compensation – capitalized $ 3 $ 7 Equity-Classified Awards The Company recognized the following amounts in employee equity-classified stock-based compensation costs for the three months ended March 31, 2023 and 2022: For the three months ended March 31, (in millions) 2023 2022 Equity-classified awards – expensed $ 1 $ 1 Equity-classified awards – capitalized $ 1 $ — Equity-Classified Stock Options The following table summarizes equity-classified stock option activity for the three months ended March 31, 2023 and provides information for options outstanding and options exercisable as of March 31, 2023: Number Weighted Average (in thousands) Outstanding at December 31, 2022 997 $ 8.59 Granted — $ — Exercised — $ — Forfeited or expired (177) $ 8.60 Outstanding at March 31, 2023 820 $ 8.59 Exercisable at March 31, 2023 820 $ 8.59 Equity-Classified Restricted Stock As of March 31, 2023, there was less than $1 million of total unrecognized compensation cost related to the Company’s unvested equity-classified restricted stock grants. This cost is expected to be recognized over a weighted-average period of 0.7 years. The following table summarizes equity-classified restricted stock activity for the three months ended March 31, 2023 and provides information for unvested shares as of March 31, 2023: Number Weighted Average (in thousands) Unvested shares at December 31, 2022 211 $ 5.81 Granted — $ — Vested (70) $ 5.15 Forfeited — $ — Unvested shares at March 31, 2023 141 $ 6.14 Equity-Classified Restricted Stock Units As of March 31, 2023, there was $11 million of total unrecognized compensation cost related to the Company’s unvested equity-classified restricted stock units. This cost is expected to be recognized over a weighted-average period of 1.9 years. The following table summarizes equity-classified restricted stock units for the three months ended March 31, 2023 and provides information for unvested units as of March 31, 2023. Number Weighted Average (in thousands) Unvested units at December 31, 2022 1,645 $ 4.44 Granted 1,539 $ 4.83 Vested (545) $ 4.45 Forfeited — $ — Unvested units at March 31, 2023 2,639 $ 4.67 Equity-Classified Performance Units In each year beginning with 2018, the Company granted performance units that vest at the end of, or over, a three-year period and are payable in either cash or shares. The performance units granted from 2020 through 2021 were accounted for as liability-classified awards as further described below. In 2022 and 2023, two types of performance units were granted. The first type of awards were liability-classified given the awards are payable only in cash as prescribed under the compensation agreements. The second type of awards granted during 2022 and 2023 have been accounted for as equity-classified awards given the intention to settle these awards in stock. The equity-classified awards were recognized at their fair value as of the grant date and are amortized throughout the vesting period. The 2022 and 2023 performance unit awards include a market condition based on relative TSR (as defined below). The fair values of the market conditions were calculated by Monte Carlo models as of the grant date. As of March 31, 2023, there was $8 million of total unrecognized compensation costs related to the Company’s unvested equity-classified performance units. This cost is expected to be recognized over a weighted-average period of 2.5 years. Number Weighted Average (in thousands) Unvested units at December 31, 2022 817 $ 6.04 Granted 940 $ 6.12 Vested — $ — Forfeited — $ — Unvested units at March 31, 2023 1,757 $ 6.08 Liability-Classified Awards The Company recognized the following amounts in employee liability-classified stock-based compensation costs for the three months ended March 31, 2023: For the three months ended March 31, (in millions) 2023 2022 Liability-classified stock-based compensation cost – expensed $ 1 $ 8 Liability-classified stock-based compensation cost – capitalized $ — $ 6 Liability-Classified Restricted Stock Units In the first quarter of each year beginning with 2018, the Company granted restricted stock units that vest over a period of four years and are payable in either cash or shares at the option of the Compensation Committee of the Company’s Board. The liability-classified awards granted in 2021 vest over a period of three years. The Company has accounted for these as liability-classified awards, and accordingly changes in the market value of the instruments will be recorded to general and administrative expense and capitalized expense over the vesting period of the award. As of March 31, 2023, there was $5 million of total unrecognized compensation cost related to liability-classified restricted stock units that is expected to be recognized over a weighted-average period of 0.9 years. The amount of unrecognized compensation cost for liability-classified awards will fluctuate over time as they are marked to market. Number Weighted Average (in thousands) Unvested units at December 31, 2022 3,950 $ 4.81 Granted — $ — Vested (2,206) $ 4.84 Forfeited (3) $ 5.57 Unvested units at March 31, 2023 1,741 $ 3.69 Liability-Classified Performance Units In each year beginning with 2018, the Company granted performance units that vest at the end of, or over, a three-year period and are payable in either cash or shares. The performance units granted in 2020 vest over a three-year period and are payable in cash as prescribed under the compensation agreements and have been accounted for as liability-classified awards. The Company granted two types of performance units in 2021 that vest over a three-year period. One type is payable in cash as prescribed under the compensation agreements and the other type is payable in either cash or stock at the option of the Compensation Committee of the Company’s Board. Both award types have been accounted for as liability-classified awards. The Company granted two types of performance units in 2022 and 2023 that vest over a three-year period. For both 2022 and 2023, one type of award is payable in cash as prescribed under the compensation agreements and has been liability-classified while the other type is equity-classified as further discussed above. Changes in the fair market value of the instruments for liability-classified awards will be recorded to general and administrative expense and capitalized expense over the vesting period of the awards. The performance units granted in 2020 include a performance condition based on return on average capital employed and a market condition based on relative total shareholder return (“TSR”). In 2021, of the two types of performance units granted, the first type of award includes a performance condition based on return on capital employed and a performance condition based on reinvestment rate, and the second type of award includes one market condition based on relative TSR. The liability-classified performance units granted in 2022 and 2023 include performance conditions based on return on capital employed and reinvestment rate. The fair values of all market conditions discussed above are calculated by Monte Carlo models on a quarterly basis. As of March 31, 2023, there was $9 million of total unrecognized compensation cost related to liability-classified performance units. This cost is expected to be recognized over a weighted-average period of 2.4 years. The amount of unrecognized compensation cost for liability-classified awards will fluctuate over time as they are marked to market. The final value of the performance unit awards is contingent upon the Company’s actual performance against these performance measures. Number Weighted Average (in thousands) Unvested units at December 31, 2022 10,982 $ 2.25 Granted 5,136 $ 4.83 Vested (1) (3,966) $ 6.13 Forfeited — $ — Unvested units at March 31, 2023 12,152 $ 1.09 Cash-Based Compensation The Company recognized the following amounts in performance cash award compensation costs for the three months ended March 31, 2023 and 2022: For the three months ended March 31, (in millions) 2023 2022 Performance cash awards – expensed $ 2 $ 2 Performance cash awards – capitalized $ 2 $ 1 Performance Cash Awards From 2020 through 2022 the Company granted performance cash awards that vest over a four-year period and are payable in cash on an annual basis. In 2023, the Company granted performance cash awards that vest over a three-year period and are payable in cash on an annual basis. The value of each unit of the award equals one dollar. The Company recognizes the cost of these awards as general and administrative expense and capitalized expense over the vesting period of the awards. The performance cash awards granted from 2020 through 2023 include a performance condition determined annually by the Company. For all years, the performance measure is a targeted discretionary cash flow amount. If the Company, in its sole discretion, determines that the threshold was not met, the amount for that vesting period will not vest and will be cancelled. As of March 31, 2023, there was $52 million of total unrecognized compensation cost related to performance cash awards. This cost is expected to be recognized over a weighted-average period of 2.6 years. The final value of the performance cash awards is contingent upon the Company’s actual performance against these performance measures. Number Weighted Average Fair Value (in thousands) Unvested units at December 31, 2022 39,994 $ 1.00 Granted 27,493 $ 1.00 Vested (12,896) $ 1.00 Forfeited (577) $ 1.00 Unvested units at March 31, 2023 54,014 $ 1.00 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company’s reportable business segments have been identified based on the differences in products or services provided. The Company’s E&P segment is comprised of gas and oil properties which are managed as a whole rather than through discrete operating segments. Operational information for the Company’s E&P segment is tracked by geographic area; however, financial performance and allocation of resources are assessed at the segment level without regard to geographic area. Revenues for the E&P segment are derived from the production and sale of natural gas and liquids. The Marketing segment generates revenue through the marketing of both Company and third-party produced natural gas and liquids volumes. Summarized financial information for the Company’s reportable segments is shown in the following table. The accounting policies of the segments are the same as those described in Note 1 of the Notes to Consolidated Financial Statements included in Item 8 of the 2022 Annual Report. Management evaluates the performance of its segments based on operating income, defined as operating revenues less operating costs. Income before income taxes, for the purpose of reconciling the operating income amount shown below to consolidated income before income taxes, is the sum of operating income, interest expense, gain (loss) on derivatives, gain on early extinguishment of debt and other income (loss). The “Other” column includes items not related to the Company’s reportable segments, including real estate and corporate items. Corporate general and administrative costs, depreciation expense and taxes, other than income taxes, are allocated to the segments. Exploration and Production Marketing Other Total Three months ended March 31, 2023 (in millions) Revenues from external customers $ 1,439 $ 679 $ — $ 2,118 Intersegment revenues (10) 1,362 — 1,352 Depreciation, depletion and amortization expense 312 1 — 313 Operating income 578 28 — 606 Interest expense (1) 36 — — 36 Gain on derivatives 1,401 — — 1,401 Loss on extinguishment of debt — — (19) (19) Other loss, net (1) — — (1) Provision for income taxes (1) 12 — — 12 Assets 12,260 (2) 552 125 12,937 Capital investments (3) 664 — 1 665 Three months ended March 31, 2022 Revenues from external customers $ 2,077 $ 866 $ — $ 2,943 Intersegment revenues (3) 1,889 — 1,886 Depreciation, depletion and amortization expense 274 1 — 275 Operating income 1,278 (4) 21 — 1,299 Interest expense (1) 41 — — 41 Loss on derivatives (3,925) — (2) (3,927) Loss on early extinguishment of debt — — (2) (2) Other income, net — — — — Provision from income taxes (1) 4 — — 4 Assets 10,766 (2) 969 112 11,847 Capital investments (3) 544 — — 544 (1) Interest expense and provision (benefit) for income taxes by segment is an allocation of corporate amounts as they are incurred at the corporate level. (2) E&P assets includes office, technology, water infrastructure, drilling rigs and other ancillary equipment not directly related to natural gas and oil properties. This also includes deferred tax assets which are an allocation of corporate amounts as they are incurred at the corporate level. (3) Capital investments include a decrease of $6 million and an increase of $43 million for the three months ended March 31, 2023 and March 31, 2022, respectively, relating to the change in accrued expenditures between periods. (4) The E&P segment operating income includes $25 million of merger-related expenses related to the Indigo and GEPH Mergers for the three months ended March 31, 2022. The following table presents the breakout of other assets, which represent corporate assets not allocated to segments and assets for non-reportable segments at March 31, 2023 and 2022: As of March 31, (in millions) 2023 2022 Cash and cash equivalents $ 3 $ 21 Accounts receivable 1 1 Prepayments 12 6 Property, plant and equipment 19 10 Unamortized debt expense 18 9 Right-of-use lease assets 55 63 Non-qualified retirement plan 2 2 Long-term assets 15 (1) — $ 125 $ 112 (1) Consists primarily of residual assets associated with the Company’s pension plan. See Note 13 |
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | NEW ACCOUNTING PRONOUNCEMENTS New Accounting Standards Implemented in this Report None. |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
New Accounting Standards Implemented in this Report and New Accounting Standards Not Yet Adopted in this Report | New Accounting Standards Implemented in this Report None. |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Acquisition Related Costs | The following table summarizes the merger-related expenses incurred during the three months ended March 31, 2022: For the three months ended March 31, 2022 (in millions) Indigo Merger GEPH Merger Total Transition services $ — $ 18 $ 18 Professional fees (bank, legal, consulting) — 1 1 Contract buyouts, terminations and transfers — 2 2 Due diligence and environmental 1 — 1 Employee-related — 1 1 Other — 2 2 Total merger-related expenses $ 1 $ 24 $ 25 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue by Segment | The following table reconciles operating revenues as presented on the consolidated statements of operations to the operating revenues by segment: (in millions) E&P Marketing Intersegment Total Three months ended March 31, 2023 Gas sales $ 1,136 $ — $ 9 $ 1,145 Oil sales 94 — 1 95 NGL sales 201 — — 201 Marketing — 2,041 (1,362) 679 Other (1) (2) — — (2) Total $ 1,429 $ 2,041 $ (1,352) $ 2,118 (in millions) Three months ended March 31, 2022 Gas sales $ 1,690 $ — $ 2 $ 1,692 Oil sales 110 — 1 111 NGL sales 272 — — 272 Marketing — 2,755 (1,889) 866 Other (2) 2 — — 2 Total $ 2,074 $ 2,755 $ (1,886) $ 2,943 (1) For the three months ended March 31, 2023, other E&P revenues consists primarily of losses on purchaser imbalances associated with natural gas and certain NGLs. (2) For the three months ended March 31, 2022, other E&P revenues consists primarily of gains on purchaser imbalances associated with natural gas and certain NGLs. |
Disaggregation of Revenue on Geographic Basis | Associated E&P revenues are also disaggregated for analysis on a geographic basis by the core areas in which the Company operates, which are primarily Appalachia and Haynesville. For the three months (in millions) 2023 2022 Appalachia $ 923 $ 1,321 Haynesville 506 753 Total $ 1,429 $ 2,074 |
Reconciliation of Accounts Receivable | The following table reconciles the Company’s receivables from contracts with customers to consolidated accounts receivable as presented on the consolidated balance sheet: (in millions) March 31, 2023 December 31, 2022 Receivables from contracts with customers $ 567 $ 1,313 Other accounts receivable 100 88 Total accounts receivable $ 667 $ 1,401 |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Summary of Cash and Cash Equivalents | The following table presents a summary of cash and cash equivalents as of March 31, 2023 and December 31, 2022: (in millions) March 31, 2023 December 31, 2022 Cash $ 2 $ 49 Marketable securities (1) 1 1 Total $ 3 $ 50 (1) Typically consists of government stable value money market funds. |
Natural Gas and Oil Properties
Natural Gas and Oil Properties (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | |
Oil and Gas Exploration and Production Industries Disclosures | Prices used to calculate the ceiling value of reserves were as follows: March 31, 2023 March 31, 2022 Natural gas (per MMBtu) $ 5.96 $ 4.09 Oil (per Bbl) $ 90.97 $ 75.39 NGLs (per Bbl) $ 30.69 $ 32.75 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following table presents the computation of earnings per share for the three months ended March 31, 2023 and 2022: For the three months ended March 31, (in millions, except share/per share amounts) 2023 2022 Net income (loss) $ 1,939 $ (2,675) Number of common shares: Weighted average outstanding 1,100,278,261 1,114,610,964 Issued upon assumed exercise of outstanding stock options — — Effect of issuance of non-vested restricted common stock 790,131 — Effect of issuance of non-vested restricted units 1,328,244 — Effect of issuance of non-vested performance units — — Weighted average and potential dilutive outstanding 1,102,396,636 1,114,610,964 Earnings (loss) per common share Basic $ 1.76 $ (2.40) Diluted $ 1.76 $ (2.40) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table presents the common stock shares equivalent excluded from the calculation of diluted earnings per share for the three months ended March 31, 2023 and 2022, as they would have had an antidilutive effect: For the three months ended March 31, 2023 2022 Unexercised stock options 866,318 2,948,488 Unvested restricted common stock — 1,436,920 Restricted units 1,914,812 2,528,005 Performance units 326,088 1,917,579 Total 3,107,218 8,830,992 |
Derivatives and Risk Manageme_2
Derivatives and Risk Management (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments Notional Amount, Weighted Average Contract Prices and Fair Value | The following tables provide information about the Company’s financial instruments that are sensitive to changes in commodity prices and that are used to protect the Company’s exposure. None of the financial instruments below are designated for hedge accounting treatment. The tables present the notional amount, the weighted average contract prices and the fair value by expected maturity dates as of March 31, 2023: Financial Protection on Production Weighted Average Price per MMBtu Volume (Bcf) Swaps Sold Puts Purchased Puts Sold Calls Basis Differential Fair Value at March 31, 2023 (in millions) Natural Gas 2023 Fixed price swaps 453 $ 3.15 $ — $ — $ — $ — $ 169 Two-way costless collars 116 — — 2.86 3.21 — 30 Three-way costless collars 145 — 2.07 2.49 2.91 — (31) Total 714 $ 168 2024 Fixed price swaps 528 $ 3.54 $ — $ — $ — $ — $ (42) Two-way costless collars 44 — — 3.07 3.53 — (15) Three-way costless collars 11 — 2.25 2.80 3.54 — (8) Total 583 $ (65) 2025 Three-way costless collars 99 $ — $ 2.50 $ 3.75 $ 5.69 $ — $ (8) Basis Swaps 2023 220 $ — $ — $ — $ — $ (0.63) $ (26) 2024 46 — — — — (0.71) 5 2025 9 — — — — (0.64) 2 Total 275 $ (19) Volume (MBbls) Weighted Average Strike Price per Bbl Fair Value at March 31, 2023 (in millions) Swaps Sold Puts Purchased Puts Sold Calls Oil 2023 Fixed price swaps 999 $ 62.61 $ — $ — $ — $ (11) Two-way costless collars 294 — — 70.00 80.58 — Three-way costless collars 926 — 34.09 45.68 56.07 (18) Total 2,219 $ (29) 2024 Fixed price swaps 1,571 $ 71.06 $ — $ — $ — $ — Two-way costless collars 146 — — 70.00 78.25 — Total 1,717 $ — 2025 Fixed price swaps 41 $ 77.66 $ — $ — $ — $ — Ethane 2023 Fixed price swaps 5,570 $ 11.51 $ — $ — $ — $ 12 2024 Fixed price swaps 1,305 $ 10.81 $ — $ — $ — $ 1 Propane 2023 Fixed price swaps 3,592 $ 36.31 $ — $ — $ — $ 9 2024 Fixed price swaps 1,094 $ 35.70 $ — $ — $ — $ 2 Normal Butane 2023 Fixed price swaps 591 $ 40.96 $ — $ — $ — $ 1 2024 Fixed price swaps 329 $ 40.74 $ — $ — $ — $ 1 Natural Gasoline 2023 Fixed price swaps 512 $ 63.74 $ — $ — $ — $ — 2024 Fixed price swaps 329 $ 64.37 $ — $ — $ — $ 1 Other Derivative Contracts Volume (Bcf) Weighted Average Strike Price per MMBtu Fair Value at March 31, 2023 (in millions) Call Options – Natural Gas (Net) 2023 36 $ 2.95 $ (16) 2024 9 3.00 (11) Total 45 $ (27) Volume (MBbls) Weighted Average Strike Price per Bbl Fair Value at March 31, 2023 (in millions) Put Options – Oil (Net) 2023 127 $ 73.50 $ — |
Balance Sheet Classification of Derivative Financial Instruments | The balance sheet classification of the assets and liabilities related to derivative financial instruments are summarized below as of March 31, 2023 and December 31, 2022: Derivative Assets Fair Value (in millions) Balance Sheet Classification March 31, 2023 December 31, 2022 Derivatives not designated as hedging instruments: Fixed price swaps – natural gas Derivative assets $ 227 $ — Fixed price swaps – oil Derivative assets 1 — Fixed price swaps – ethane Derivative assets 12 4 Fixed price swaps – propane Derivative assets 11 9 Fixed price swaps – normal butane Derivative assets 1 1 Fixed price swaps – natural gasoline Derivative assets 1 1 Two-way costless collars – natural gas Derivative assets 137 47 Two-way costless collars – oil Derivative assets 2 — Three-way costless collars – natural gas Derivative assets 51 18 Three-way costless collars – oil Derivative assets — 1 Basis swaps – natural gas Derivative assets 15 64 Put options – natural gas Derivative assets 6 — Fixed price swaps – natural gas Other long-term assets 105 28 Fixed price swaps – oil Other long-term assets 2 1 Fixed price swaps – ethane Other long-term assets 1 1 Fixed price swaps – propane Other long-term assets 1 1 Fixed price swaps – normal butane Other long-term assets 1 — Fixed price swaps – natural gasoline Other long-term assets 1 — Two-way costless collars – natural gas Other long-term assets 16 18 Two-way costless collars – oil Other long-term assets 1 — Three-way costless collars – natural gas Other long-term assets 66 3 Basis swaps – natural gas Other long-term assets 9 17 Put options – natural gas Other long-term assets — 4 Total derivative assets $ 667 $ 218 Derivative Liabilities Fair Value (in millions) Balance Sheet Classification March 31, 2023 December 31, 2022 Derivatives not designated as hedging instruments: Fixed price swaps – natural gas Derivative liabilities $ 97 $ 581 Fixed price swaps – oil Derivative liabilities 14 20 Fixed price swaps – ethane Derivative liabilities — 1 Fixed price swaps – propane Derivative liabilities 1 — Fixed price swaps – natural gasoline Derivative liabilities 1 1 Two-way costless collars – natural gas Derivative liabilities 112 235 Two-way costless collars – oil Derivative liabilities 2 — Three-way costless collars – natural gas Derivative liabilities 91 311 Three-way costless collars – oil Derivative liabilities 18 31 Basis swaps – natural gas Derivative liabilities 41 69 Call options – natural gas Derivative liabilities 27 70 Put options – natural gas Derivative liabilities 6 — Fixed price swaps – natural gas Long-term derivative liabilities 108 281 Fixed price swaps – oil Long-term derivative liabilities — 4 Two-way costless collars – natural gas Long-term derivative liabilities 26 56 Two-way costless collars – oil Long-term derivative liabilities 1 — Three-way costless collars – natural gas Long-term derivative liabilities 73 20 Basis swap – natural gas Long-term derivative liabilities 2 1 Call options – natural gas Long-term derivative liabilities — 18 Total derivative liabilities $ 620 $ 1,699 Net Derivative Position March 31, 2023 December 31, 2022 (in millions) Net current derivative asset (liability) $ 54 $ (1,174) Net long-term derivative liabilities (7) (307) Non-performance risk adjustment (1) 3 Net total derivative asset (liability) $ 46 $ (1,478) |
Summary of Before Tax Effect of Fair Value Hedges not Designated for Hedge Accounting | The following tables summarize the before-tax effect of the Company’s derivative instruments on the consolidated statements of operations for the three months ended March 31, 2023 and 2022: Unsettled Gain (Loss) on Derivatives Recognized in Earnings Consolidated Statement of Operations Classification of Gain (Loss) on Derivatives, Unsettled For the three months ended March 31, Derivative Instrument 2023 2022 (in millions) Fixed price swaps – natural gas Gain (Loss) on Derivatives $ 961 $ (1,853) Fixed price swaps – oil Gain (Loss) on Derivatives 12 (53) Fixed price swaps – ethane Gain (Loss) on Derivatives 9 (21) Fixed price swaps – propane Gain (Loss) on Derivatives 1 (49) Fixed price swaps – normal butane Gain (Loss) on Derivatives 1 (20) Fixed price swaps – natural gasoline Gain (Loss) on Derivatives 1 (28) Two-way costless collars – natural gas Gain (Loss) on Derivatives 241 (342) Two-way costless collars – ethane Gain (Loss) on Derivatives — 1 Three-way costless collars – natural gas Gain (Loss) on Derivatives 263 (724) Three-way costless collars – oil Gain (Loss) on Derivatives 12 (33) Three-way costless collars – propane Gain (Loss) on Derivatives — (2) Basis swaps – natural gas Gain (Loss) on Derivatives (30) 36 Call options – natural gas Gain (Loss) on Derivatives 61 (149) Put options – natural gas Gain (Loss) on Derivatives (4) — Purchased fixed price swap – natural gas storage Gain (Loss) on Derivatives — 1 Fixed price swap – natural gas storage Gain (Loss) on Derivatives — 1 Interest rate swaps Gain (Loss) on Derivatives — (2) Total gain (loss) on unsettled derivatives $ 1,528 $ (3,237) Settled Gain (Loss) on Derivatives Recognized in Earnings (1) Consolidated Statement of Operations Classification of Gain (Loss) on Derivatives, Settled For the three months ended March 31, Derivative Instrument 2023 2022 (in millions) Fixed price swaps – natural gas Gain (Loss) on Derivatives $ (45) $ (297) Fixed price swaps – oil Gain (Loss) on Derivatives (4) (33) Fixed price swaps – ethane Gain (Loss) on Derivatives 1 (8) Fixed price swaps – propane Gain (Loss) on Derivatives 1 (41) Fixed price swaps – normal butane Gain (Loss) on Derivatives — (14) Fixed price swaps – natural gasoline Gain (Loss) on Derivatives — (19) Two-way costless collars – natural gas Gain (Loss) on Derivatives — (104) Two-way costless collars – ethane Gain (Loss) on Derivatives — (1) Three-way costless collars – natural gas Gain (Loss) on Derivatives (33) (121) Three-way costless collars – oil Gain (Loss) on Derivatives (7) (13) Three-way costless collars – propane Gain (Loss) on Derivatives — (2) Basis swaps – natural gas Gain (Loss) on Derivatives (29) 1 Index swaps – natural gas Gain (Loss) on Derivatives — (1) Call options – natural gas Gain (Loss) on Derivatives (7) (39) Fixed price swaps – natural gas storage Gain (Loss) on Derivatives — (3) Total loss on settled derivatives $ (123) $ (695) Total gain (loss) on derivatives $ 1,401 (1) $ (3,927) (1) The Company calculates gain (loss) on derivatives, settled, as the summation of gains and losses on positions that settled within the period. Total gain (loss) on derivatives includes non-performance risk adjustments of $4 million in losses and $5 million in gains for three months ended March 31, 2023 and March 31, 2022, respectively. Total Gain (Loss) on Derivatives Recognized in Earnings For the three months ended March 31, 2023 2022 (in millions) Total gain (loss) on unsettled derivatives $ 1,528 $ (3,237) Total loss on settled derivatives (123) (695) Non-performance risk adjustment (4) 5 Total gain (loss) on derivatives $ 1,401 $ (3,927) |
Reclassifications from Accumu_2
Reclassifications from Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | The following tables detail the components of accumulated other comprehensive income for the three months ended March 31, 2023: (in millions) Pension and Other Postretirement Foreign Currency Total Beginning balance December 31, 2022 $ 20 $ (14) $ 6 Other comprehensive income before reclassifications 1 — 1 Amounts reclassified from other comprehensive income (1) (16) — (16) Net current-period other comprehensive loss (15) — (15) Ending balance March 31, 2023 $ 5 $ (14) $ (9) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Carrying Amount and Estimated Fair Values of Financial Instruments | The carrying amounts and estimated fair values of the Company’s financial instruments as of March 31, 2023 and December 31, 2022 were as follows: March 31, 2023 December 31, 2022 (in millions) Carrying Fair Carrying Fair Cash and cash equivalents $ 3 $ 3 $ 50 $ 50 2022 revolving credit facility due April 2027 210 210 250 250 Senior notes (1) 3,743 3,524 4,164 3,847 Derivative instruments, net 46 46 (1,478) (1,478) (1) Excludes unamortized debt issuance costs and debt discounts. |
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below: March 31, 2023 Fair Value Measurements Using: (in millions) Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets (Liabilities) at Fair Value Assets Fixed price swaps $ — $ 364 $ — $ 364 Two-way costless collars — 156 — 156 Three-way costless collars — 117 — 117 Basis swaps — 24 — 24 Put options — 6 — 6 Liabilities Fixed price swaps — (221) — (221) Two-way costless collars — (141) — (141) Three-way costless collars — (182) — (182) Basis swaps — (43) — (43) Call options — (27) — (27) Put options — (6) — (6) Total (1) $ — $ 47 $ — $ 47 (1) Excludes a net reduction to the asset fair value of $1 million related to estimated non-performance risk. December 31, 2022 Fair Value Measurements Using: (in millions) Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets (Liabilities) at Fair Value Assets Fixed price swaps $ — $ 46 $ — $ 46 Two-way costless collars — 65 — 65 Three-way costless collars — 22 — 22 Basis swaps — 81 — 81 Purchase Put - Natural Gas — 4 — 4 Liabilities Fixed price swaps — (888) — (888) Two-way costless collars — (291) — (291) Three-way costless collars — (362) — (362) Basis swaps — (70) — (70) Call options — (88) — (88) Total (1) $ — $ (1,481) $ — $ (1,481) (1) Excludes a net reduction to the liability fair value of $3 million related to estimated non-performance risk. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Components of Debt | The components of debt as of March 31, 2023 and December 31, 2022 consisted of the following: March 31, 2023 (in millions) Debt Instrument Unamortized Issuance Expense Unamortized Debt Premium/Discount Total Long-term debt: Variable rate (6.69% at March 31, 2023) 2022 revolving credit facility due April 2027 $ 210 $ — (1) $ — $ 210 4.95% Senior Notes due January 2025 (2) 389 (1) — 388 8.375% Senior Notes due September 2028 304 (3) — 301 5.375% Senior Notes due February 2029 700 (5) 21 716 5.375% Senior Notes due March 2030 1,200 (15) — 1,185 4.75% Senior Notes due February 2032 1,150 (15) — 1,135 Total long-term debt $ 3,953 $ (39) $ 21 $ 3,935 Total debt $ 3,953 $ (39) $ 21 $ 3,935 December 31, 2022 (in millions) Debt Instrument Unamortized Issuance Expense Unamortized Debt Premium/Discount Total Long-term debt: Variable rate (6.15% at December 31, 2022) 2022 revolving credit facility, due April 2027 $ 250 $ — (1) $ — $ 250 4.95% Senior Notes due January 2025 (2) 389 (1) — 388 7.75% Senior Notes due October 2027 421 (3) — 418 8.375% Senior Notes due September 2028 304 (3) — 301 5.375% Senior Notes due February 2029 700 (5) 22 717 5.375% Senior Notes due March 2030 1,200 (16) — 1,184 4.75% Senior Notes due February 2032 1,150 (16) — 1,134 Total long-term debt $ 4,414 $ (44) $ 22 $ 4,392 Total debt $ 4,414 $ (44) $ 22 $ 4,392 (1) At March 31, 2023 and December 31, 2022, unamortized issuance expense of $18 million and $19 million, respectively, associated with the 2022 credit facility (as defined below) was classified as other long-term assets on the consolidated balance sheets. (2) Effective in July 2018, the interest rate was 6.20% for the 2025 Notes, reflecting a net downgrade in the Company’s bond ratings since the initial offering. On April 7, 2020, S&P downgraded the Company’s bond rating to BB-, which had the effect of increasing the interest rate on the 2025 Notes to 6.45% following the July 23, 2020 interest payment date. The first coupon payment to the bondholders at the higher interest rate was paid in January 2021. On September 1, 2021, S&P upgraded the Company’s bond rating to BB, and on January 6, 2022, S&P further upgraded the Company’s bond rating to BB+, which decreased the interest rate on the 2025 Notes to 5.95% beginning with coupon payments paid after January 2022. On May 31, 2022, Moody’s upgraded the Company’s bond rating to Ba1, which decreased the interest rate on the 2025 Notes from 5.95% to 5.70% for coupon payments paid after July 2022. |
Schedule of Maturities of Long-term Debt | The following is a summary of scheduled debt maturities by year as of March 31, 2023: (in millions) 2023 $ — 2024 — 2025 389 2026 — 2027 210 Thereafter 3,354 $ 3,953 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Obligation under Transportation Agreements | As of March 31, 2023, future payments under non-cancelable firm transportation and gathering agreements were as follows: Payments Due by Period (in millions) Total Less than 1 1 to 3 Years 3 to 5 Years 5 to 8 Years More than 8 Infrastructure currently in service $ 8,703 $ 1,045 $ 1,892 $ 1,692 $ 1,833 $ 2,241 Pending regulatory approval and/or construction (1) 1,302 38 218 262 368 416 Total transportation charges $ 10,005 $ 1,083 $ 2,110 $ 1,954 $ 2,201 $ 2,657 (1) Based on estimated in-service dates as of March 31, 2023. |
Pension Plan and Other Postre_2
Pension Plan and Other Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefit Costs | Net periodic pension costs include the following components for the three months ended March 31, 2023 and 2022: Consolidated Statements of For the three months ended March 31, (in millions) 2023 2022 Service cost General and administrative expenses $ — $ — Interest cost Other Income (Loss), Net — 1 Expected return on plan assets Other Income (Loss), Net (1) — Amortization of prior service cost Other Income (Loss), Net — — Settlement loss Other Income (Loss), Net 2 — Net periodic benefit cost $ 1 $ 1 |
Long-term Incentive Compensat_2
Long-term Incentive Compensation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Schedule of Stock-Based Compensation Costs | The Company recognized the following amounts in total related to long-term incentive compensation costs for the three months ended March 31, 2023 and 2022: For the three months ended March 31, (in millions) 2023 2022 Long-term incentive compensation – expensed $ 4 $ 11 Long-term incentive compensation – capitalized $ 3 $ 7 |
Schedule of Equity-Classified Stock-Based Compensation Costs | The Company recognized the following amounts in employee equity-classified stock-based compensation costs for the three months ended March 31, 2023 and 2022: For the three months ended March 31, (in millions) 2023 2022 Equity-classified awards – expensed $ 1 $ 1 Equity-classified awards – capitalized $ 1 $ — |
Summary of Equity-Classified Stock Option Activity | The following table summarizes equity-classified stock option activity for the three months ended March 31, 2023 and provides information for options outstanding and options exercisable as of March 31, 2023: Number Weighted Average (in thousands) Outstanding at December 31, 2022 997 $ 8.59 Granted — $ — Exercised — $ — Forfeited or expired (177) $ 8.60 Outstanding at March 31, 2023 820 $ 8.59 Exercisable at March 31, 2023 820 $ 8.59 |
Summary of Equity-Classified Restricted Stock Activity | The following table summarizes equity-classified restricted stock activity for the three months ended March 31, 2023 and provides information for unvested shares as of March 31, 2023: Number Weighted Average (in thousands) Unvested shares at December 31, 2022 211 $ 5.81 Granted — $ — Vested (70) $ 5.15 Forfeited — $ — Unvested shares at March 31, 2023 141 $ 6.14 |
Summary of Equity-Classified Restricted and Performance Stock Units Activity | The following table summarizes equity-classified restricted stock units for the three months ended March 31, 2023 and provides information for unvested units as of March 31, 2023. Number Weighted Average (in thousands) Unvested units at December 31, 2022 1,645 $ 4.44 Granted 1,539 $ 4.83 Vested (545) $ 4.45 Forfeited — $ — Unvested units at March 31, 2023 2,639 $ 4.67 Number Weighted Average (in thousands) Unvested units at December 31, 2022 817 $ 6.04 Granted 940 $ 6.12 Vested — $ — Forfeited — $ — Unvested units at March 31, 2023 1,757 $ 6.08 |
Schedule of Liability-Classified Stock-Based Compensation Costs | The Company recognized the following amounts in employee liability-classified stock-based compensation costs for the three months ended March 31, 2023: For the three months ended March 31, (in millions) 2023 2022 Liability-classified stock-based compensation cost – expensed $ 1 $ 8 Liability-classified stock-based compensation cost – capitalized $ — $ 6 |
Summary of Liability-Classified Restricted Stock Unit Activity | Number Weighted Average (in thousands) Unvested units at December 31, 2022 3,950 $ 4.81 Granted — $ — Vested (2,206) $ 4.84 Forfeited (3) $ 5.57 Unvested units at March 31, 2023 1,741 $ 3.69 |
Summary of Liability-Classified Performance Unit Activity | Number Weighted Average (in thousands) Unvested units at December 31, 2022 10,982 $ 2.25 Granted 5,136 $ 4.83 Vested (1) (3,966) $ 6.13 Forfeited — $ — Unvested units at March 31, 2023 12,152 $ 1.09 |
Schedule of Performance Cash Award Compensation Costs | The Company recognized the following amounts in performance cash award compensation costs for the three months ended March 31, 2023 and 2022: For the three months ended March 31, (in millions) 2023 2022 Performance cash awards – expensed $ 2 $ 2 Performance cash awards – capitalized $ 2 $ 1 |
Summary of Performance Cash Awards Activity | Number Weighted Average Fair Value (in thousands) Unvested units at December 31, 2022 39,994 $ 1.00 Granted 27,493 $ 1.00 Vested (12,896) $ 1.00 Forfeited (577) $ 1.00 Unvested units at March 31, 2023 54,014 $ 1.00 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Summary of Financial Information for Company's Reportable Segments | Summarized financial information for the Company’s reportable segments is shown in the following table. The accounting policies of the segments are the same as those described in Note 1 of the Notes to Consolidated Financial Statements included in Item 8 of the 2022 Annual Report. Management evaluates the performance of its segments based on operating income, defined as operating revenues less operating costs. Income before income taxes, for the purpose of reconciling the operating income amount shown below to consolidated income before income taxes, is the sum of operating income, interest expense, gain (loss) on derivatives, gain on early extinguishment of debt and other income (loss). The “Other” column includes items not related to the Company’s reportable segments, including real estate and corporate items. Corporate general and administrative costs, depreciation expense and taxes, other than income taxes, are allocated to the segments. Exploration and Production Marketing Other Total Three months ended March 31, 2023 (in millions) Revenues from external customers $ 1,439 $ 679 $ — $ 2,118 Intersegment revenues (10) 1,362 — 1,352 Depreciation, depletion and amortization expense 312 1 — 313 Operating income 578 28 — 606 Interest expense (1) 36 — — 36 Gain on derivatives 1,401 — — 1,401 Loss on extinguishment of debt — — (19) (19) Other loss, net (1) — — (1) Provision for income taxes (1) 12 — — 12 Assets 12,260 (2) 552 125 12,937 Capital investments (3) 664 — 1 665 Three months ended March 31, 2022 Revenues from external customers $ 2,077 $ 866 $ — $ 2,943 Intersegment revenues (3) 1,889 — 1,886 Depreciation, depletion and amortization expense 274 1 — 275 Operating income 1,278 (4) 21 — 1,299 Interest expense (1) 41 — — 41 Loss on derivatives (3,925) — (2) (3,927) Loss on early extinguishment of debt — — (2) (2) Other income, net — — — — Provision from income taxes (1) 4 — — 4 Assets 10,766 (2) 969 112 11,847 Capital investments (3) 544 — — 544 (1) Interest expense and provision (benefit) for income taxes by segment is an allocation of corporate amounts as they are incurred at the corporate level. (2) E&P assets includes office, technology, water infrastructure, drilling rigs and other ancillary equipment not directly related to natural gas and oil properties. This also includes deferred tax assets which are an allocation of corporate amounts as they are incurred at the corporate level. (3) Capital investments include a decrease of $6 million and an increase of $43 million for the three months ended March 31, 2023 and March 31, 2022, respectively, relating to the change in accrued expenditures between periods. (4) The E&P segment operating income includes $25 million of merger-related expenses related to the Indigo and GEPH Mergers for the three months ended March 31, 2022. The following table presents the breakout of other assets, which represent corporate assets not allocated to segments and assets for non-reportable segments at March 31, 2023 and 2022: As of March 31, (in millions) 2023 2022 Cash and cash equivalents $ 3 $ 21 Accounts receivable 1 1 Prepayments 12 6 Property, plant and equipment 19 10 Unamortized debt expense 18 9 Right-of-use lease assets 55 63 Non-qualified retirement plan 2 2 Long-term assets 15 (1) — $ 125 $ 112 (1) Consists primarily of residual assets associated with the Company’s pension plan. See Note 13 |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2023 segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of segments | 2 |
Acquisitions (Schedule of Merge
Acquisitions (Schedule of Merger Related Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Business Acquisition [Line Items] | ||
Transition services | $ 18 | |
Professional fees (bank, legal, consulting) | 1 | |
Contract buyouts, terminations and transfers | 2 | |
Due diligence and environmental | 1 | |
Employee-related | 1 | |
Other | 2 | |
Merger-related expenses | $ 0 | 25 |
Indigo Merger | ||
Business Acquisition [Line Items] | ||
Transition services | 0 | |
Professional fees (bank, legal, consulting) | 0 | |
Contract buyouts, terminations and transfers | 0 | |
Due diligence and environmental | 1 | |
Employee-related | 0 | |
Other | 0 | |
Merger-related expenses | 1 | |
GEPH Merger | ||
Business Acquisition [Line Items] | ||
Transition services | 18 | |
Professional fees (bank, legal, consulting) | 1 | |
Contract buyouts, terminations and transfers | 2 | |
Due diligence and environmental | 0 | |
Employee-related | 1 | |
Other | 2 | |
Merger-related expenses | $ 24 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Disaggregation of Revenue [Line Items] | |
Contract asset associated with revenues from contracts with customers | $ 0 |
Contract liability associated with revenues from contracts with customers | $ 0 |
Minimum | NGL sales | |
Disaggregation of Revenue [Line Items] | |
Payment terms | 30 days |
Minimum | Marketing | |
Disaggregation of Revenue [Line Items] | |
Payment terms | 30 days |
Maximum | NGL sales | |
Disaggregation of Revenue [Line Items] | |
Payment terms | 60 days |
Maximum | Marketing | |
Disaggregation of Revenue [Line Items] | |
Payment terms | 60 days |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregation of Revenue by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | $ 2,118 | $ 2,943 |
E&P | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 1,439 | 2,077 |
Marketing | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 679 | 866 |
Operating Segments | E&P | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 1,429 | 2,074 |
Operating Segments | Marketing | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 2,041 | 2,755 |
Intersegment Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 1,352 | 1,886 |
Intersegment Revenues | E&P | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | (10) | (3) |
Intersegment Revenues | Marketing | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 1,362 | 1,889 |
Gas sales | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 1,145 | 1,692 |
Gas sales | Operating Segments | E&P | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 1,136 | 1,690 |
Gas sales | Operating Segments | Marketing | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 0 | 0 |
Gas sales | Intersegment Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | (9) | (2) |
Oil sales | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 95 | 111 |
Oil sales | Operating Segments | E&P | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 94 | 110 |
Oil sales | Operating Segments | Marketing | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 0 | 0 |
Oil sales | Intersegment Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | (1) | (1) |
NGL sales | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 201 | 272 |
NGL sales | Operating Segments | E&P | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 201 | 272 |
NGL sales | Operating Segments | Marketing | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 0 | 0 |
NGL sales | Intersegment Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 0 | 0 |
Marketing | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 679 | 866 |
Marketing | Operating Segments | E&P | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 0 | 0 |
Marketing | Operating Segments | Marketing | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 2,041 | 2,755 |
Marketing | Intersegment Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 1,362 | 1,889 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | (2) | 2 |
Other | Operating Segments | E&P | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | (2) | 2 |
Other | Operating Segments | Marketing | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 0 | 0 |
Other | Intersegment Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | $ 0 | $ 0 |
Revenue Recognition (Disaggre_2
Revenue Recognition (Disaggregation of Revenue on Geographic Basis) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | $ 2,118 | $ 2,943 |
E&P | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 1,439 | 2,077 |
Operating Segments | E&P | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 1,429 | 2,074 |
Operating Segments | E&P | Appalachia | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 923 | 1,321 |
Operating Segments | E&P | Haynesville | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | $ 506 | $ 753 |
Revenue Recognition (Reconcilia
Revenue Recognition (Reconciliation of Accounts Receivable) (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Receivables from contracts with customers | $ 567 | $ 1,313 |
Other accounts receivable | 100 | 88 |
Total accounts receivable | $ 667 | $ 1,401 |
Cash and Cash Equivalents (Summ
Cash and Cash Equivalents (Summary of Cash and Cash Equivalents) (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Cash and Cash Equivalents [Abstract] | ||
Cash | $ 2 | $ 49 |
Marketable securities | 1 | 1 |
Total | $ 3 | $ 50 |
Natural Gas and Oil Propertie_2
Natural Gas and Oil Properties (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2023 hedgePosition | |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | |
Natural gas, oil and NGL reserves discount | 10% |
Period of time needed to calculate ceiling value of reserves | 12 months |
Number of hedge positions designated for hedge accounting | 0 |
Natural Gas and Oil Propertie_3
Natural Gas and Oil Properties (Oil and Gas Exploration and Production Industries Disclosures) (Details) | 3 Months Ended | |
Mar. 31, 2023 $ / bbl $ / MMBTU | Mar. 31, 2022 $ / bbl $ / MMBTU | |
Natural Gas | ||
Natural Gas and Oil Properties [Line Items] | ||
Full cost ceiling test, price per MMBtu (in dollars per MMBtu) | $ / MMBTU | 5.96 | 4.09 |
Oil | ||
Natural Gas and Oil Properties [Line Items] | ||
Full cost ceiling test, price per barrel (in dollars per bbl) | 90.97 | 75.39 |
NGL | ||
Natural Gas and Oil Properties [Line Items] | ||
Full cost ceiling test, price per barrel (in dollars per bbl) | 30.69 | 32.75 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net income (loss) | $ 1,939 | $ (2,675) |
Number of common shares: | ||
Weighted average outstanding (in shares) | 1,100,278,261 | 1,114,610,964 |
Weighted average and potential dilutive outstanding (in shares) | 1,102,396,636 | 1,114,610,964 |
Earnings (loss) per common share | ||
Basic (in dollars per share) | $ 1.76 | $ (2.40) |
Diluted (in dollars per share) | $ 1.76 | $ (2.40) |
Stock options | ||
Number of common shares: | ||
Issued upon assumed exercise of outstanding stock options (in shares) | 0 | 0 |
Restricted Common Stock | ||
Number of common shares: | ||
Effect of issuance of non-vested restricted common stock and units (in shares) | 790,131 | 0 |
Restricted units | ||
Number of common shares: | ||
Effect of issuance of non-vested restricted common stock and units (in shares) | 1,328,244 | 0 |
Performance units | ||
Number of common shares: | ||
Effect of issuance of non-vested performance units (in shares) | 0 | 0 |
Earnings Per Share (Schedule _2
Earnings Per Share (Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share) (Details) - shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 3,107,218 | 8,830,992 |
Unexercised stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 866,318 | 2,948,488 |
Unvested restricted common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 1,436,920 |
Restricted units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1,914,812 | 2,528,005 |
Performance units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 326,088 | 1,917,579 |
Derivatives and Risk Manageme_3
Derivatives and Risk Management (Schedule of Derivative Instruments Notional Amount, Weighted Average Contract Prices and Fair Value) (Details) - Not Designated as Hedging Instrument bbl in Thousands, Mcf in Millions, MBbls in Millions, $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) $ / bbl $ / MMBTU $ / barrel Mcf bbl MBbls | |
Financial protection on production- 2023 | Natural Gas | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | Mcf | 714 |
Fair value | $ 168 |
Financial protection on production- 2023 | Oil | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | bbl | 2,219 |
Fair value | $ (29) |
Fixed Price Swaps - 2023 | Natural Gas | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | Mcf | 453 |
Weighted average price (in dollars per MMBtu, Bbl) | $ / MMBTU | 3.15 |
Fair value | $ 169 |
Fixed Price Swaps - 2023 | Oil | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | bbl | 999 |
Weighted average price (in dollars per MMBtu, Bbl) | $ / bbl | 62.61 |
Fair value | $ (11) |
Fixed Price Swaps - 2023 | Ethane | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | bbl | 5,570 |
Weighted average price (in dollars per MMBtu, Bbl) | $ / bbl | 11.51 |
Fair value | $ 12 |
Fixed Price Swaps - 2023 | Propane | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | bbl | 3,592 |
Weighted average price (in dollars per MMBtu, Bbl) | $ / bbl | 36.31 |
Fair value | $ 9 |
Fixed Price Swaps - 2023 | Normal Butane | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | bbl | 591 |
Weighted average price (in dollars per MMBtu, Bbl) | $ / bbl | 40.96 |
Fair value | $ 1 |
Fixed Price Swaps - 2023 | Natural Gasoline | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | bbl | 512 |
Weighted average price (in dollars per MMBtu, Bbl) | $ / bbl | 63.74 |
Fair value | $ 0 |
Two Way Costless Collars - 2023 | Natural Gas | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | Mcf | 116 |
Fair value | $ 30 |
Two Way Costless Collars - 2023 | Oil | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | bbl | 294 |
Fair value | $ 0 |
Two Way Costless Collars - 2023 Sold Calls | Natural Gas | |
Derivative [Line Items] | |
Cap price (in dollars per MMBtu, Bbl) | $ / MMBTU | 3.21 |
Two Way Costless Collars - 2023 Sold Calls | Oil | |
Derivative [Line Items] | |
Cap price (in dollars per MMBtu, Bbl) | $ / bbl | 80.58 |
Three Way Costless Collars - 2023 | Natural Gas | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | Mcf | 145 |
Fair value | $ (31) |
Three Way Costless Collars - 2023 | Oil | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | bbl | 926 |
Fair value | $ (18) |
Three Way Costless Collars - 2023 Sold Calls | Natural Gas | |
Derivative [Line Items] | |
Cap price (in dollars per MMBtu, Bbl) | $ / MMBTU | 2.91 |
Three Way Costless Collars - 2023 Sold Calls | Oil | |
Derivative [Line Items] | |
Cap price (in dollars per MMBtu, Bbl) | $ / bbl | 56.07 |
Financial protection on production - 2024 | Natural Gas | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | Mcf | 583 |
Fair value | $ (65) |
Financial protection on production - 2024 | Oil | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | bbl | 1,717 |
Fair value | $ 0 |
Fixed Price Swaps - 2024 | Natural Gas | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | Mcf | 528 |
Weighted average price (in dollars per MMBtu, Bbl) | $ / MMBTU | 3.54 |
Fair value | $ (42) |
Fixed Price Swaps - 2024 | Oil | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | bbl | 1,571 |
Weighted average price (in dollars per MMBtu, Bbl) | $ / bbl | 71.06 |
Fair value | $ 0 |
Fixed Price Swaps - 2024 | Ethane | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | bbl | 1,305 |
Weighted average price (in dollars per MMBtu, Bbl) | $ / bbl | 10.81 |
Fair value | $ 1 |
Fixed Price Swaps - 2024 | Propane | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | bbl | 1,094 |
Weighted average price (in dollars per MMBtu, Bbl) | $ / bbl | 35.70 |
Fair value | $ 2 |
Fixed Price Swaps - 2024 | Normal Butane | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | bbl | 329 |
Weighted average price (in dollars per MMBtu, Bbl) | $ / bbl | 40.74 |
Fair value | $ 1 |
Fixed Price Swaps - 2024 | Natural Gasoline | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | bbl | 329 |
Weighted average price (in dollars per MMBtu, Bbl) | $ / bbl | 64.37 |
Fair value | $ 1 |
Two Way Costless Collars - 2024 | Natural Gas | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | Mcf | 44 |
Fair value | $ (15) |
Two Way Costless Collars - 2024 | Oil | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | bbl | 146 |
Fair value | $ 0 |
Two Way Costless Collars - 2024 Sold Calls | Natural Gas | |
Derivative [Line Items] | |
Cap price (in dollars per MMBtu, Bbl) | $ / MMBTU | 3.53 |
Two Way Costless Collars - 2024 Sold Calls | Oil | |
Derivative [Line Items] | |
Cap price (in dollars per MMBtu, Bbl) | $ / bbl | 78.25 |
Three Way Costless Collars - 2024 | Natural Gas | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | Mcf | 11 |
Fair value | $ (8) |
Three Way Costless Collars - 2024 Sold Calls | Natural Gas | |
Derivative [Line Items] | |
Cap price (in dollars per MMBtu, Bbl) | $ / MMBTU | 3.54 |
Fixed Price Swaps - 2025 | Oil | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | bbl | 41 |
Weighted average price (in dollars per MMBtu, Bbl) | $ / bbl | 77.66 |
Fair value | $ 0 |
Three Way Costless Collars - 2025 | Natural Gas | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | Mcf | 99 |
Fair value | $ (8) |
Three Way Costless Collars - 2025 Sold Calls | Natural Gas | |
Derivative [Line Items] | |
Cap price (in dollars per MMBtu, Bbl) | $ / MMBTU | 5.69 |
Basis Swaps | Natural Gas | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | Mcf | 275 |
Fair value | $ (19) |
Basis Swap - 2023 | Natural Gas | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | Mcf | 220 |
Basis differential per MMBtu | $ / MMBTU | (0.63) |
Fair value | $ (26) |
Basis Swap - 2024 | Natural Gas | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | Mcf | 46 |
Basis differential per MMBtu | $ / MMBTU | (0.71) |
Fair value | $ 5 |
Basis Swap - 2025 | Natural Gas | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | Mcf | 9 |
Basis differential per MMBtu | $ / MMBTU | (0.64) |
Fair value | $ 2 |
Call options | Natural Gas | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | Mcf | 45 |
Fair value | $ (27) |
Call Options - 2023 | Natural Gas | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | Mcf | 36 |
Cap price (in dollars per MMBtu, Bbl) | $ / MMBTU | 2.95 |
Fair value | $ (16) |
Call Options - 2024 | Natural Gas | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | Mcf | 9 |
Cap price (in dollars per MMBtu, Bbl) | $ / MMBTU | 3 |
Fair value | $ (11) |
Put Options - 2023 | Oil | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | MBbls | 127 |
Cap price (in dollars per MMBtu, Bbl) | $ / barrel | 73.50 |
Fair value | $ 0 |
Sold Puts | Three Way Costless Collars - 2023 Sold Puts | Natural Gas | |
Derivative [Line Items] | |
Floor price (in dollars per MMBtu, Bbl) | $ / MMBTU | 2.07 |
Sold Puts | Three Way Costless Collars - 2023 Sold Puts | Oil | |
Derivative [Line Items] | |
Floor price (in dollars per MMBtu, Bbl) | $ / bbl | 34.09 |
Sold Puts | Three Way Costless Collars - 2024 Sold Puts | Natural Gas | |
Derivative [Line Items] | |
Floor price (in dollars per MMBtu, Bbl) | $ / MMBTU | 2.25 |
Sold Puts | Three Way Costless Collars - 2025 Sold Puts | Natural Gas | |
Derivative [Line Items] | |
Floor price (in dollars per MMBtu, Bbl) | $ / MMBTU | 2.50 |
Purchased Puts | Two Way Costless Collars - 2023 Purchased Puts | Natural Gas | |
Derivative [Line Items] | |
Floor price (in dollars per MMBtu, Bbl) | $ / MMBTU | 2.86 |
Purchased Puts | Two Way Costless Collars - 2023 Purchased Puts | Oil | |
Derivative [Line Items] | |
Floor price (in dollars per MMBtu, Bbl) | $ / bbl | 70 |
Purchased Puts | Three Way Costless Collars - 2023 Purchased Puts | Natural Gas | |
Derivative [Line Items] | |
Floor price (in dollars per MMBtu, Bbl) | $ / MMBTU | 2.49 |
Purchased Puts | Three Way Costless Collars - 2023 Purchased Puts | Oil | |
Derivative [Line Items] | |
Floor price (in dollars per MMBtu, Bbl) | $ / bbl | 45.68 |
Purchased Puts | Two Way Costless Collars - 2024 Purchased Puts | Natural Gas | |
Derivative [Line Items] | |
Floor price (in dollars per MMBtu, Bbl) | $ / MMBTU | 3.07 |
Purchased Puts | Two Way Costless Collars - 2024 Purchased Puts | Oil | |
Derivative [Line Items] | |
Floor price (in dollars per MMBtu, Bbl) | $ / bbl | 70 |
Purchased Puts | Three Way Costless Collars - 2024 Purchased Puts | Natural Gas | |
Derivative [Line Items] | |
Floor price (in dollars per MMBtu, Bbl) | $ / MMBTU | 2.80 |
Purchased Puts | Three Way Costless Collars - 2025 Purchased Puts | Natural Gas | |
Derivative [Line Items] | |
Floor price (in dollars per MMBtu, Bbl) | $ / MMBTU | 3.75 |
Derivatives and Risk Manageme_4
Derivatives and Risk Management (Narrative) (Details) - Not Designated as Hedging Instrument $ in Millions | Mar. 31, 2023 USD ($) |
Derivative [Line Items] | |
Fair value of net derivative asset position decrease | $ 1 |
Commodities | |
Derivative [Line Items] | |
Derivative asset | $ 46 |
Derivatives and Risk Manageme_5
Derivatives and Risk Management (Balance Sheet Classification of Derivative Financial Instruments) (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Net current derivative asset (liability) | $ 54 | $ (1,174) |
Net long-term derivative liabilities | (7) | (307) |
Non-performance risk adjustment | (1) | 3 |
Derivative instruments, net | 46 | (1,478) |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 667 | 218 |
Derivative liabilities | 620 | 1,699 |
Natural Gas | Not Designated as Hedging Instrument | Fixed price swaps | Derivative assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 227 | 0 |
Natural Gas | Not Designated as Hedging Instrument | Fixed price swaps | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 105 | 28 |
Natural Gas | Not Designated as Hedging Instrument | Fixed price swaps | Derivative liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 97 | 581 |
Natural Gas | Not Designated as Hedging Instrument | Fixed price swaps | Long-term derivative liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 108 | 281 |
Natural Gas | Not Designated as Hedging Instrument | Two-way costless collars | Derivative assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 137 | 47 |
Natural Gas | Not Designated as Hedging Instrument | Two-way costless collars | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 16 | 18 |
Natural Gas | Not Designated as Hedging Instrument | Two-way costless collars | Derivative liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 112 | 235 |
Natural Gas | Not Designated as Hedging Instrument | Two-way costless collars | Long-term derivative liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 26 | 56 |
Natural Gas | Not Designated as Hedging Instrument | Three-way costless collars | Derivative assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 51 | 18 |
Natural Gas | Not Designated as Hedging Instrument | Three-way costless collars | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 66 | 3 |
Natural Gas | Not Designated as Hedging Instrument | Three-way costless collars | Derivative liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 91 | 311 |
Natural Gas | Not Designated as Hedging Instrument | Three-way costless collars | Long-term derivative liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 73 | 20 |
Natural Gas | Not Designated as Hedging Instrument | Basis swaps | Derivative assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 15 | 64 |
Natural Gas | Not Designated as Hedging Instrument | Basis swaps | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 9 | 17 |
Natural Gas | Not Designated as Hedging Instrument | Basis swaps | Derivative liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 41 | 69 |
Natural Gas | Not Designated as Hedging Instrument | Basis swaps | Long-term derivative liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 2 | 1 |
Natural Gas | Not Designated as Hedging Instrument | Put options | Derivative assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 6 | 0 |
Natural Gas | Not Designated as Hedging Instrument | Put options | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 4 |
Natural Gas | Not Designated as Hedging Instrument | Put options | Derivative liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 6 | 0 |
Natural Gas | Not Designated as Hedging Instrument | Call options | Derivative liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 27 | 70 |
Natural Gas | Not Designated as Hedging Instrument | Call options | Long-term derivative liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 0 | 18 |
Oil | Not Designated as Hedging Instrument | Fixed price swaps | Derivative assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 1 | 0 |
Oil | Not Designated as Hedging Instrument | Fixed price swaps | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 2 | 1 |
Oil | Not Designated as Hedging Instrument | Fixed price swaps | Derivative liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 14 | 20 |
Oil | Not Designated as Hedging Instrument | Fixed price swaps | Long-term derivative liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 0 | 4 |
Oil | Not Designated as Hedging Instrument | Two-way costless collars | Derivative assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 2 | 0 |
Oil | Not Designated as Hedging Instrument | Two-way costless collars | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 1 | 0 |
Oil | Not Designated as Hedging Instrument | Two-way costless collars | Derivative liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 2 | 0 |
Oil | Not Designated as Hedging Instrument | Two-way costless collars | Long-term derivative liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 1 | 0 |
Oil | Not Designated as Hedging Instrument | Three-way costless collars | Derivative assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 1 |
Oil | Not Designated as Hedging Instrument | Three-way costless collars | Derivative liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 18 | 31 |
Ethane | Not Designated as Hedging Instrument | Fixed price swaps | Derivative assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 12 | 4 |
Ethane | Not Designated as Hedging Instrument | Fixed price swaps | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 1 | 1 |
Ethane | Not Designated as Hedging Instrument | Fixed price swaps | Derivative liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 0 | 1 |
Propane | Not Designated as Hedging Instrument | Fixed price swaps | Derivative assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 11 | 9 |
Propane | Not Designated as Hedging Instrument | Fixed price swaps | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 1 | 1 |
Propane | Not Designated as Hedging Instrument | Fixed price swaps | Derivative liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 1 | 0 |
Normal Butane | Not Designated as Hedging Instrument | Fixed price swaps | Derivative assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 1 | 1 |
Normal Butane | Not Designated as Hedging Instrument | Fixed price swaps | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 1 | 0 |
Natural Gasoline | Not Designated as Hedging Instrument | Fixed price swaps | Derivative assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 1 | 1 |
Natural Gasoline | Not Designated as Hedging Instrument | Fixed price swaps | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 1 | 0 |
Natural Gasoline | Not Designated as Hedging Instrument | Fixed price swaps | Derivative liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ 1 | $ 1 |
Derivatives and Risk Manageme_6
Derivatives and Risk Management (Summary of Before Tax Effect of Fair Value Hedges not Designated for Hedge Accounting) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gain (loss) on unsettled derivatives | $ 1,528 | $ (3,237) |
Total loss on settled derivatives | (123) | (695) |
Non-performance risk adjustment | (4) | 5 |
Total gain (loss) on derivatives | 1,401 | (3,927) |
Fixed price swaps | Natural Gas | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gain (loss) on unsettled derivatives | 961 | (1,853) |
Total loss on settled derivatives | (45) | (297) |
Fixed price swaps | Oil | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gain (loss) on unsettled derivatives | 12 | (53) |
Total loss on settled derivatives | (4) | (33) |
Fixed price swaps | Ethane | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gain (loss) on unsettled derivatives | 9 | (21) |
Total loss on settled derivatives | 1 | (8) |
Fixed price swaps | Propane | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gain (loss) on unsettled derivatives | 1 | (49) |
Total loss on settled derivatives | 1 | (41) |
Fixed price swaps | Normal Butane | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gain (loss) on unsettled derivatives | 1 | (20) |
Total loss on settled derivatives | 0 | (14) |
Fixed price swaps | Natural Gasoline | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gain (loss) on unsettled derivatives | 1 | (28) |
Total loss on settled derivatives | 0 | (19) |
Two-way costless collars | Natural Gas | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gain (loss) on unsettled derivatives | 241 | (342) |
Total loss on settled derivatives | 0 | (104) |
Two-way costless collars | Ethane | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gain (loss) on unsettled derivatives | 0 | 1 |
Total loss on settled derivatives | 0 | (1) |
Three-way costless collars | Natural Gas | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gain (loss) on unsettled derivatives | 263 | (724) |
Total loss on settled derivatives | (33) | (121) |
Three-way costless collars | Oil | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gain (loss) on unsettled derivatives | 12 | (33) |
Total loss on settled derivatives | (7) | (13) |
Three-way costless collars | Propane | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gain (loss) on unsettled derivatives | 0 | (2) |
Total loss on settled derivatives | 0 | (2) |
Basis swaps | Natural Gas | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gain (loss) on unsettled derivatives | (30) | 36 |
Total loss on settled derivatives | (29) | 1 |
Index swap | Natural Gas | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total loss on settled derivatives | 0 | (1) |
Call options | Natural Gas | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gain (loss) on unsettled derivatives | 61 | (149) |
Total loss on settled derivatives | (7) | (39) |
Put options | Natural Gas | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gain (loss) on unsettled derivatives | (4) | 0 |
Purchased fixed price swaps | Natural Gas Storage | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gain (loss) on unsettled derivatives | 0 | 1 |
Fixed price swaps – storage | Natural Gas Storage | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gain (loss) on unsettled derivatives | 0 | 1 |
Total loss on settled derivatives | 0 | (3) |
Interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gain (loss) on unsettled derivatives | $ 0 | $ (2) |
Reclassifications from Accumu_3
Reclassifications from Accumulated Other Comprehensive Income (Loss) (Components of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 4,324 | $ 2,547 |
Ending balance | 6,254 | (119) |
Net actuarial loss incurred in period | 2 | 0 |
Net tax loss attributable to pension termination | 14 | 0 |
Total | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 6 | (25) |
Other comprehensive income before reclassifications | 1 | |
Amounts reclassified from other comprehensive income | (16) | |
Net current-period other comprehensive loss | (15) | |
Ending balance | (9) | $ (25) |
Pension and Other Postretirement | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 20 | |
Other comprehensive income before reclassifications | 1 | |
Amounts reclassified from other comprehensive income | (16) | |
Net current-period other comprehensive loss | (15) | |
Ending balance | 5 | |
Foreign Currency | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (14) | |
Other comprehensive income before reclassifications | 0 | |
Amounts reclassified from other comprehensive income | 0 | |
Net current-period other comprehensive loss | 0 | |
Ending balance | $ (14) |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Amount and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, net | $ 46 | $ (1,478) |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 3 | 50 |
Derivative instruments, net | 46 | (1,478) |
Carrying Amount | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior notes | 3,743 | 4,164 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 3 | 50 |
Derivative instruments, net | 46 | (1,478) |
Fair Value | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior notes | 3,524 | 3,847 |
2022 revolving credit facility due April 2027 | Carrying Amount | Long-term debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
2022 revolving credit facility due April 2027 | 210 | 250 |
2022 revolving credit facility due April 2027 | Fair Value | Long-term debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
2022 revolving credit facility due April 2027 | $ 210 | $ 250 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - Not Designated as Hedging Instrument - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of net derivative asset position decrease | $ 1 | |
Fair value of net derivative liability position decrease | $ 3 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 47 | $ (1,481) |
Not Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of net derivative asset position decrease | 1 | |
Fair value of net derivative liability position decrease | 3 | |
Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 47 | (1,481) |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Fixed price swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 364 | 46 |
Derivative liabilities | (221) | (888) |
Fixed price swaps | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fixed price swaps | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 364 | 46 |
Derivative liabilities | (221) | (888) |
Fixed price swaps | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liabilities | 0 | 0 |
Two-way costless collars | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 156 | 65 |
Derivative liabilities | (141) | (291) |
Two-way costless collars | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liabilities | 0 | 0 |
Two-way costless collars | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 156 | 65 |
Derivative liabilities | (141) | (291) |
Two-way costless collars | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liabilities | 0 | 0 |
Three-way costless collars | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 117 | 22 |
Derivative liabilities | (182) | (362) |
Three-way costless collars | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liabilities | 0 | 0 |
Three-way costless collars | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 117 | 22 |
Derivative liabilities | (182) | (362) |
Three-way costless collars | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liabilities | 0 | 0 |
Basis swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 24 | 81 |
Derivative liabilities | (43) | (70) |
Basis swaps | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liabilities | 0 | 0 |
Basis swaps | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 24 | 81 |
Derivative liabilities | (43) | (70) |
Basis swaps | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Derivative liabilities | 0 | 0 |
Put options | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 6 | |
Derivative liabilities | (6) | |
Put options | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | |
Derivative liabilities | 0 | |
Put options | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 6 | |
Derivative liabilities | (6) | |
Put options | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | |
Derivative liabilities | 0 | |
Call options | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | (27) | (88) |
Call options | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Call options | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | (27) | (88) |
Call options | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | $ 0 | 0 |
Purchase Put - Natural Gas | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 4 | |
Purchase Put - Natural Gas | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | |
Purchase Put - Natural Gas | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 4 | |
Purchase Put - Natural Gas | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | $ 0 |
Debt (Components of Debt) (Deta
Debt (Components of Debt) (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Feb. 26, 2023 | Dec. 31, 2022 | May 31, 2022 | Mar. 31, 2022 | Jan. 06, 2022 | Apr. 07, 2020 | Jul. 31, 2018 | Jan. 31, 2015 |
Debt Instrument [Line Items] | |||||||||
Total debt | $ 3,953 | $ 4,414 | |||||||
Unamortized Issuance Expense | (39) | (44) | |||||||
Unamortized Debt Premium/Discount | 21 | 22 | |||||||
Total long-term debt | 3,935 | 4,392 | |||||||
Total debt | 3,935 | 4,392 | |||||||
Long-term debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, excluding current maturities, gross | 3,953 | 4,414 | |||||||
Unamortized Issuance Expense | (39) | (44) | |||||||
Unamortized Debt Premium/Discount | 21 | 22 | |||||||
Total long-term debt | 3,935 | 4,392 | |||||||
Senior Notes | 4.95% Senior Notes due January 2025 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, excluding current maturities, gross | 389 | 389 | |||||||
Unamortized Issuance Expense | (1) | (1) | |||||||
Unamortized Debt Premium/Discount | 0 | 0 | |||||||
Total long-term debt | $ 388 | $ 388 | |||||||
Stated interest rate | 4.95% | 4.95% | 5.70% | 5.95% | 6.45% | 6.20% | 4.95% | ||
Senior Notes | 7.75% Senior Notes due October 2027 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, excluding current maturities, gross | $ 421 | ||||||||
Unamortized Issuance Expense | (3) | ||||||||
Unamortized Debt Premium/Discount | 0 | ||||||||
Total long-term debt | $ 418 | ||||||||
Stated interest rate | 7.75% | 7.75% | 7.75% | ||||||
Senior Notes | 8.375% Senior Notes due September 2028 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, excluding current maturities, gross | $ 304 | $ 304 | |||||||
Unamortized Issuance Expense | (3) | (3) | |||||||
Unamortized Debt Premium/Discount | 0 | 0 | |||||||
Total long-term debt | $ 301 | $ 301 | |||||||
Stated interest rate | 8.375% | 8.375% | 8.375% | ||||||
Senior Notes | 5.375% Senior Notes due February 2029 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, excluding current maturities, gross | $ 700 | $ 700 | |||||||
Unamortized Issuance Expense | (5) | (5) | |||||||
Unamortized Debt Premium/Discount | 21 | 22 | |||||||
Total long-term debt | $ 716 | $ 717 | |||||||
Stated interest rate | 5.375% | 5.375% | |||||||
Senior Notes | 5.375% Senior Notes due March 2030 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, excluding current maturities, gross | $ 1,200 | $ 1,200 | |||||||
Unamortized Issuance Expense | (15) | (16) | |||||||
Unamortized Debt Premium/Discount | 0 | 0 | |||||||
Total long-term debt | $ 1,185 | $ 1,184 | |||||||
Stated interest rate | 5.375% | 5.375% | |||||||
Senior Notes | 4.75% Senior Notes due February 2032 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, excluding current maturities, gross | $ 1,150 | $ 1,150 | |||||||
Unamortized Issuance Expense | (15) | (16) | |||||||
Unamortized Debt Premium/Discount | 0 | 0 | |||||||
Total long-term debt | $ 1,135 | $ 1,134 | |||||||
Stated interest rate | 4.75% | 4.75% | |||||||
Line of Credit | 2022 Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit facility, variable interest rate | 6.69% | 6.15% | |||||||
Line of Credit | 2022 Revolving Credit Facility | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, excluding current maturities, gross | $ 210 | $ 250 | |||||||
Unamortized Issuance Expense | 0 | 0 | |||||||
Unamortized Debt Premium/Discount | 0 | 0 | |||||||
Total long-term debt | 210 | 250 | |||||||
Other long-term assets | Line of Credit | 2022 Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Unamortized Issuance Expense | $ (18) | $ (19) |
Debt (Schedule of Debt Maturiti
Debt (Schedule of Debt Maturities) (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2023 | $ 0 | |
2024 | 0 | |
2025 | 389 | |
2026 | 0 | |
2027 | 210 | |
Thereafter | 3,354 | |
Total debt | $ 3,953 | $ 4,414 |
Debt (2022 Credit Facility - Na
Debt (2022 Credit Facility - Narrative) (Details) $ in Millions | 3 Months Ended | ||||
Aug. 04, 2022 USD ($) | Dec. 22, 2021 | Mar. 31, 2023 USD ($) | Apr. 05, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | |||||
Subsidiary ownership | 100% | ||||
Long-term debt | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, excluding current maturities, gross | $ 3,953 | $ 4,414 | |||
2022 Revolving Credit Facility | Minimum | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, unused capacity, commitment fee percentage | 0.375% | 0.15% | |||
2022 Revolving Credit Facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, unused capacity, commitment fee percentage | 0.50% | 0.275% | |||
Ratio of indebtedness to net capital | 0.65 | ||||
Revolving Credit Facility | 2022 Revolving Credit Facility | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 3,500 | ||||
Line of credit facility, increase, net | $ 500 | ||||
Minimum current ratio | 1 | ||||
Leverage ratio, percentage of credit limit | 10% | ||||
Leverage ratio, amount of credit limit | $ 150 | ||||
Letters of credit | 89 | ||||
Debt instrument, excluding current maturities, gross | $ 210 | $ 250 | |||
Revolving Credit Facility | 2022 Revolving Credit Facility | Line of Credit | Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Aggregate commitment | $ 3,500 | ||||
Revolving Credit Facility | 2022 Revolving Credit Facility | Line of Credit | On Or After March 31, 2022 | |||||
Debt Instrument [Line Items] | |||||
Leverage ratio | 4 | ||||
Revolving Credit Facility | 2022 Revolving Credit Facility | Line of Credit | Secured Overnight Financing Rate (SOFR) | |||||
Debt Instrument [Line Items] | |||||
Basis points | 0.10% | 0.10% | |||
Debt instrument, discount coverage ratio | 9% | ||||
Revolving Credit Facility | 2022 Revolving Credit Facility | Line of Credit | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Basis points | 1% | ||||
Revolving Credit Facility | 2022 Revolving Credit Facility | Line of Credit | Fed Funds Effective Rate Overnight Index Swap Rate | |||||
Debt Instrument [Line Items] | |||||
Basis points | 0.50% | ||||
Revolving Credit Facility | 2022 Revolving Credit Facility | Line of Credit | Minimum | Secured Overnight Financing Rate (SOFR) | |||||
Debt Instrument [Line Items] | |||||
Basis points | 1.75% | 1.25% | |||
Revolving Credit Facility | 2022 Revolving Credit Facility | Line of Credit | Minimum | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Basis points | 0.75% | 0.25% | |||
Revolving Credit Facility | 2022 Revolving Credit Facility | Line of Credit | Maximum | Secured Overnight Financing Rate (SOFR) | |||||
Debt Instrument [Line Items] | |||||
Basis points | 2.75% | 1.875% | |||
Revolving Credit Facility | 2022 Revolving Credit Facility | Line of Credit | Maximum | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Basis points | 1.75% | 0.875% | |||
Revolving Credit Facility | 2022 Revolving Credit Facility | Long-term debt | |||||
Debt Instrument [Line Items] | |||||
Minimum interest coverage ratio | 1.50 | ||||
Revolving Credit Facility | 2022 Revolving Credit Facility Five-Year Tranche | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, expiration period | 5 years | ||||
Aggregate commitment | $ 2,000 | ||||
Revolving Credit Facility | 2022 Revolving Credit Facility Five-Year Tranche | Line of Credit | Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Aggregate commitment | 2,000 | ||||
Revolving Credit Facility | 2022 Revolving Credit Facility Short-Term Tranche | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Aggregate commitment | $ 500 | ||||
Revolving Credit Facility | 2022 Revolving Credit Facility Short-Term Tranche | Line of Credit | Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Aggregate commitment | $ 500 |
Debt (Senior Notes - Narrative)
Debt (Senior Notes - Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |||||||
Feb. 26, 2023 | Jan. 31, 2015 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | May 31, 2022 | Jan. 06, 2022 | Apr. 07, 2020 | Jul. 31, 2018 | |
Debt Instrument [Line Items] | |||||||||
Loss on extinguishment of debt | $ 19 | $ 2 | |||||||
Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Repurchased amount | 223 | ||||||||
Loss on extinguishment of debt | $ 2 | ||||||||
Senior Notes | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Incremental increase in basis points resulting from downgrades | 0.25% | ||||||||
Incremental decrease in basis points resulting from upgrades | 0.25% | ||||||||
4.95% Senior Notes due January 2025 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior notes, noncurrent | $ 1,000 | ||||||||
Stated interest rate | 4.95% | 4.95% | 4.95% | 5.70% | 5.95% | 6.45% | 6.20% | ||
4.10% Senior Notes due March 2022 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 4.10% | ||||||||
Repurchased amount | $ 201 | ||||||||
8.375% Senior Notes due September 2028 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 8.375% | 8.375% | 8.375% | ||||||
Repurchased amount | $ 5 | ||||||||
7.75% Senior Notes due October 2027 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 7.75% | 7.75% | 7.75% | ||||||
Repurchased amount | $ 15 | ||||||||
Loss on extinguishment of debt | $ 19 | ||||||||
Debt instrument, redemption price, percentage of principal amount redeemed | 103.875% | ||||||||
Accrued interest | $ 13 | ||||||||
Repayments of senior debt | 450 | ||||||||
Write off of deferred debt issuance cost | 3 | ||||||||
7.75% Senior Notes due October 2027 | Senior Notes | Funded from Cash on Hand | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayments of senior debt | 316 | ||||||||
7.75% Senior Notes due October 2027 | Senior Notes | Funded from Debt Borrowings | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayments of senior debt | $ 134 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) $ in Millions | Jun. 12, 2018 company individual | Mar. 31, 2023 USD ($) |
Commitments And Contingencies [Line Items] | ||
Obligation under transportation agreements | $ 10,005 | |
Guarantee obligations relative to the firms transportation agreements and gathering project and services | 853 | |
Loss contingency, number of individuals and entities | individual | 51 | |
Loss contingency, number of defendants | company | 15 | |
Material liabilities recognized | 0 | |
Pending regulatory approval and/or construction | ||
Commitments And Contingencies [Line Items] | ||
Obligation under transportation agreements | $ 1,302 |
Commitments and Contingencies_3
Commitments and Contingencies (Schedule of Future Obligation under Transportation Agreements) (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Other Commitments [Line Items] | |
Total | $ 10,005 |
Less than 1 Year | 1,083 |
1 to 3 Years | 2,110 |
3 to 5 Years | 1,954 |
5 to 8 Years | 2,201 |
More than 8 Years | 2,657 |
Infrastructure currently in service | |
Other Commitments [Line Items] | |
Total | 8,703 |
Less than 1 Year | 1,045 |
1 to 3 Years | 1,892 |
3 to 5 Years | 1,692 |
5 to 8 Years | 1,833 |
More than 8 Years | 2,241 |
Pending regulatory approval and/or construction | |
Other Commitments [Line Items] | |
Total | 1,302 |
Less than 1 Year | 38 |
1 to 3 Years | 218 |
3 to 5 Years | 262 |
5 to 8 Years | 368 |
More than 8 Years | $ 416 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2023 | |
Income Taxes [Line Items] | |||
Effective tax rate | 1% | 0% | |
Deferred income tax expense (benefit), tax provision recorded, before offset of release of valuation allowance | $ 451 | ||
Tax benefit attributable to release of valuation allowance | 439 | ||
Valuation allowance related to operating loss | 66 | ||
Federal | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards subject to a section 382 limitation | 2,000 | ||
Operating loss carryforwards | 4,000 | ||
Deferred tax assets, operating loss carryforwards, subject to expiration | 3,000 | ||
Deferred tax assets, operating loss carryforwards, not subject to expiration | 1,000 | ||
Indigo Merger | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards subject to a section 382 limitation | $ 48 | ||
Forecast | |||
Income Taxes [Line Items] | |||
Decrease in valuation allowance | $ 523 |
Pension Plan and Other Postre_3
Pension Plan and Other Postretirement Benefits (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, lump sum payment distribution, percentage of pension assets | 40% | |||
Settlement loss | $ 2 | |||
Defined benefit plan, funded (unfunded) status of plan | $ 13 | 13 | ||
Other Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit cost | 1 | $ 1 | ||
Benefit obligation | 10 | $ 9 | 10 | |
Pension | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Settlement loss | 2 | 0 | ||
Defined benefit plan, funded (unfunded) status of plan | $ 13 | $ 15 | 13 | |
Net periodic benefit cost | $ 1 | $ 1 | ||
Non-Qualified Supplemental Employee Retirement Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Treasury stock acquired (in shares) | 1,455 | 1,743 |
Pension Plan and Other Postre_4
Pension Plan and Other Postretirement Benefits (Pension and Other Postretirement Benefit Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Settlement loss | $ 2 | |
Pension | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0 | $ 0 |
Interest cost | 0 | 1 |
Expected return on plan assets | (1) | 0 |
Amortization of prior service cost | 0 | 0 |
Settlement loss | 2 | 0 |
Net periodic benefit cost | $ 1 | $ 1 |
Long-term Incentive Compensat_3
Long-term Incentive Compensation (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Stock Based Compensation 2013 Plan | |||||||||||
Schedule of Share-based Compensation [Line Items] | |||||||||||
Service period | 3 years | ||||||||||
Unexercised stock options | |||||||||||
Schedule of Share-based Compensation [Line Items] | |||||||||||
Vesting period | 3 years | ||||||||||
Expiration period | 10 years | ||||||||||
Restricted stock | |||||||||||
Schedule of Share-based Compensation [Line Items] | |||||||||||
Vesting period | 3 years | ||||||||||
Equity-classified awards, unrecognized compensation cost | $ 1 | ||||||||||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition | 8 months 12 days | ||||||||||
Performance units | |||||||||||
Schedule of Share-based Compensation [Line Items] | |||||||||||
Vesting period | 3 years | 3 years | 3 years | 3 years | 3 years | 3 years | 3 years | 3 years | |||
Equity-classified awards, unrecognized compensation cost | $ 8 | ||||||||||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition | 2 years 6 months | ||||||||||
Equity-Classified Restricted Stock Units | |||||||||||
Schedule of Share-based Compensation [Line Items] | |||||||||||
Equity-classified awards, unrecognized compensation cost | $ 11 | ||||||||||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition | 1 year 10 months 24 days | ||||||||||
Liability-Classified Restricted Stock Units | |||||||||||
Schedule of Share-based Compensation [Line Items] | |||||||||||
Vesting period | 4 years | 4 years | 4 years | 4 years | 4 years | 4 years | 3 years | ||||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition | 10 months 24 days | ||||||||||
Liability classified awards, unrecognized compensation costs | $ 5 | ||||||||||
Liability-Classified Performance Units | |||||||||||
Schedule of Share-based Compensation [Line Items] | |||||||||||
Vesting period | 3 years | 3 years | 3 years | 3 years | 3 years | 3 years | |||||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition | 2 years 4 months 24 days | ||||||||||
Liability classified awards, unrecognized compensation costs | $ 9 | ||||||||||
Liability-classified performance units, vesting period | 3 years | 3 years | 3 years | 3 years | |||||||
Performance cash awards | |||||||||||
Schedule of Share-based Compensation [Line Items] | |||||||||||
Vesting period | 3 years | 4 years | 4 years | 4 years | |||||||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition | 2 years 7 months 6 days | ||||||||||
Liability classified awards, unrecognized compensation costs | $ 52 |
Long-term Incentive Compensat_4
Long-term Incentive Compensation (Schedule of Stock-Based Compensation Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | ||
Long-term incentive compensation – expensed | $ 4 | $ 11 |
Long-term incentive compensation – capitalized | $ 3 | $ 7 |
Long-term Incentive Compensat_5
Long-term Incentive Compensation (Schedule of Equity-Classified Stock-Based Compensation Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | ||
Equity-classified awards – expensed | $ 1 | $ 1 |
Equity-classified awards – capitalized | $ 1 | $ 0 |
Long-term Incentive Compensat_6
Long-term Incentive Compensation (Summary of Equity-Classified Stock Option Activity) (Details) - Stock options shares in Thousands | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Number of Options | |
Beginning balance (in shares) | shares | 997 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | 0 |
Forfeited or expired (in shares) | shares | (177) |
Ending balance (in shares) | shares | 820 |
Exercisable (in shares) | shares | 820 |
Weighted Average Exercise Price | |
Beginning balance (in dollars per share) | $ / shares | $ 8.59 |
Granted (in dollars per share) | $ / shares | 0 |
Exercised (in dollars per share) | $ / shares | 0 |
Forfeited or expired (in dollars per share) | $ / shares | 8.60 |
Ending balance (in dollars per share) | $ / shares | 8.59 |
Exercisable (in dollars per share) | $ / shares | $ 8.59 |
Long-term Incentive Compensat_7
Long-term Incentive Compensation (Summary of Equity-Classified Restricted Stock Activity) (Details) - Restricted stock shares in Thousands | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Number of Units | |
Beginning balance (in shares) | shares | 211 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | (70) |
Forfeited (in shares) | shares | 0 |
Ending balance (in shares) | shares | 141 |
Weighted Average Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 5.81 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 5.15 |
Forfeited (in dollars per share) | $ / shares | 0 |
Ending balance (in dollars per share) | $ / shares | $ 6.14 |
Long-term Incentive Compensat_8
Long-term Incentive Compensation (Summary of Equity-Classified Restricted and Performance Stock Units Activity) (Details) shares in Thousands | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Equity-Classified Restricted Stock Units | |
Number of Units | |
Beginning balance (in shares) | shares | 1,645 |
Granted (in shares) | shares | 1,539 |
Vested (in shares) | shares | (545) |
Forfeited (in shares) | shares | 0 |
Ending balance (in shares) | shares | 2,639 |
Weighted Average Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 4.44 |
Granted (in dollars per share) | $ / shares | 4.83 |
Vested (in dollars per share) | $ / shares | 4.45 |
Forfeited (in dollars per share) | $ / shares | 0 |
Ending balance (in dollars per share) | $ / shares | $ 4.67 |
Performance units | |
Number of Units | |
Beginning balance (in shares) | shares | 817 |
Granted (in shares) | shares | 940 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Ending balance (in shares) | shares | 1,757 |
Weighted Average Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 6.04 |
Granted (in dollars per share) | $ / shares | 6.12 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 0 |
Ending balance (in dollars per share) | $ / shares | $ 6.08 |
Long-term Incentive Compensat_9
Long-term Incentive Compensation (Schedule of Liability-Classified Stock-Based Compensation Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Long-term incentive compensation – expensed | $ 4 | $ 11 |
Long-term incentive compensation – capitalized | 3 | 7 |
Liability-Classified Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Long-term incentive compensation – expensed | 1 | 8 |
Long-term incentive compensation – capitalized | $ 0 | $ 6 |
Long-term Incentive Compensa_10
Long-term Incentive Compensation (Summary of Liability-Classified Restricted Stock Unit Activity) (Details) - Liability-Classified Restricted Stock Units shares in Thousands | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Number of Units | |
Beginning balance (in shares) | shares | 3,950 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | (2,206) |
Forfeited (in shares) | shares | (3) |
Ending balance (in shares) | shares | 1,741 |
Weighted Average Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 4.81 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 4.84 |
Forfeited (in dollars per share) | $ / shares | 5.57 |
Ending balance (in dollars per share) | $ / shares | $ 3.69 |
Long-term Incentive Compensa_11
Long-term Incentive Compensation (Summary of Liability-Classified Performance Units ) (Details) - Liability-Classified Performance Units shares in Thousands | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Number of Units | |
Beginning balance (in shares) | shares | 10,982 |
Granted (in shares) | shares | 5,136 |
Vested (in shares) | shares | (3,966) |
Forfeited (in shares) | shares | 0 |
Ending balance (in shares) | shares | 12,152 |
Weighted Average Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 2.25 |
Granted (in dollars per share) | $ / shares | 4.83 |
Vested (in dollars per share) | $ / shares | 6.13 |
Forfeited (in dollars per share) | $ / shares | 0 |
Ending balance (in dollars per share) | $ / shares | $ 1.09 |
Long-term Incentive Compensa_12
Long-term Incentive Compensation - Schedule of Performance Cash Award Compensation Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance cash awards – expensed | $ 4 | $ 11 |
Performance cash awards – capitalized | 3 | 7 |
Performance cash awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance cash awards – expensed | 2 | 2 |
Performance cash awards – capitalized | $ 2 | $ 1 |
Long-term Incentive Compensa_13
Long-term Incentive Compensation (Summary of Performance Cash Awards) (Details) - Performance cash awards shares in Thousands | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Number of Units | |
Beginning balance (in shares) | shares | 39,994 |
Granted (in shares) | shares | 27,493 |
Vested (in shares) | shares | (12,896) |
Forfeited (in shares) | shares | (577) |
Ending balance (in shares) | shares | 54,014 |
Weighted Average Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 1 |
Granted (in dollars per share) | $ / shares | 1 |
Vested (in dollars per share) | $ / shares | 1 |
Forfeited (in dollars per share) | $ / shares | 1 |
Ending balance (in dollars per share) | $ / shares | $ 1 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||
Total operating revenues | $ 2,118 | $ 2,943 | |
Depreciation, depletion and amortization expense | 313 | 275 | |
Operating income | 606 | 1,299 | |
Interest expense | 36 | 41 | |
Gain on derivatives | 1,401 | (3,927) | |
Loss on early extinguishment of debt | (19) | (2) | |
Other income, net | (1) | 0 | |
Provision from income taxes | 12 | 4 | |
Assets | 12,937 | 11,847 | $ 12,926 |
Capital investments | 665 | 544 | |
Increase (decrease) in accrued expenditures | (6) | 43 | |
Merger-related expenses | 0 | 25 | |
Intersegment Revenues | |||
Segment Reporting Information [Line Items] | |||
Total operating revenues | 1,352 | 1,886 | |
E&P | |||
Segment Reporting Information [Line Items] | |||
Total operating revenues | 1,439 | 2,077 | |
Depreciation, depletion and amortization expense | 312 | 274 | |
Operating income | 578 | 1,278 | |
Interest expense | 36 | 41 | |
Gain on derivatives | 1,401 | (3,925) | |
Loss on early extinguishment of debt | 0 | 0 | |
Other income, net | (1) | 0 | |
Provision from income taxes | 12 | 4 | |
Assets | 12,260 | 10,766 | |
Capital investments | 664 | 544 | |
Merger-related expenses | 25 | ||
E&P | Intersegment Revenues | |||
Segment Reporting Information [Line Items] | |||
Total operating revenues | (10) | (3) | |
Marketing | |||
Segment Reporting Information [Line Items] | |||
Total operating revenues | 679 | 866 | |
Depreciation, depletion and amortization expense | 1 | 1 | |
Operating income | 28 | 21 | |
Interest expense | 0 | 0 | |
Gain on derivatives | 0 | 0 | |
Loss on early extinguishment of debt | 0 | 0 | |
Other income, net | 0 | 0 | |
Provision from income taxes | 0 | 0 | |
Assets | 552 | 969 | |
Capital investments | 0 | 0 | |
Marketing | Intersegment Revenues | |||
Segment Reporting Information [Line Items] | |||
Total operating revenues | 1,362 | 1,889 | |
Other | |||
Segment Reporting Information [Line Items] | |||
Total operating revenues | 0 | 0 | |
Depreciation, depletion and amortization expense | 0 | 0 | |
Operating income | 0 | 0 | |
Interest expense | 0 | 0 | |
Gain on derivatives | 0 | (2) | |
Loss on early extinguishment of debt | (19) | (2) | |
Other income, net | 0 | 0 | |
Provision from income taxes | 0 | 0 | |
Assets | 125 | 112 | |
Capital investments | 1 | 0 | |
Other | Intersegment Revenues | |||
Segment Reporting Information [Line Items] | |||
Total operating revenues | $ 0 | $ 0 |
Segment Information (Schedule o
Segment Information (Schedule of Other Assets) (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 |
Segment Reporting Information [Line Items] | |||
Cash and cash equivalents | $ 3 | $ 50 | |
Accounts receivable | 667 | 1,401 | |
Property, plant and equipment | 11,258 | 10,903 | |
Unamortized debt expense | 39 | 44 | |
Right-of-use lease assets | 175 | 177 | |
Long-term assets | 480 | 359 | |
TOTAL ASSETS | 12,937 | $ 12,926 | $ 11,847 |
Other | |||
Segment Reporting Information [Line Items] | |||
Cash and cash equivalents | 3 | 21 | |
Accounts receivable | 1 | 1 | |
Prepayments | 12 | 6 | |
Property, plant and equipment | 19 | 10 | |
Unamortized debt expense | 18 | 9 | |
Right-of-use lease assets | 55 | 63 | |
Non-qualified retirement plan | 2 | 2 | |
Long-term assets | 15 | 0 | |
TOTAL ASSETS | $ 125 | $ 112 |