Coterra Energy (CTRA) 10-Q 3 Aug 22 2022 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2022	Aug. 02, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
Document Transition Report	false
Entity File Number	1-10447
Entity Registrant Name	COTERRA ENERGY INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	04-3072771
Entity Address, Address Line One	Three Memorial City Plaza
Entity Address, Address Line Two	840 Gessner Road,
Entity Address, Address Line Three	Suite 1400,
Entity Address, City or Town	Houston,
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77024
City Area Code	281
Local Phone Number	589-4600
Title of 12(b) Security	Common Stock, par value $0.10 per share
Trading Symbol	CTRA
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		795,595,177
Entity Central Index Key	0000858470
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Current assets
Cash and cash equivalents	$ 1,059	$ 1,036
Restricted cash	10	10
Accounts receivable, net	1,525	1,037
Income taxes receivable	170	0
Inventories	46	39
Other current assets	22	14
Total current assets	2,832	2,136
Properties and equipment, net (Successful efforts method)	17,407	17,375
Other assets	408	389
Total assets	20,647	19,900
Current liabilities
Accounts payable	1,044	747
Current portion of long-term debt	124	0
Accrued liabilities	206	260
Income taxes payable	0	29
Interest payable	26	25
Derivative instruments	170	159
Total current liabilities	1,570	1,220
Long-term debt, net	2,981	3,125
Deferred income taxes	3,203	3,101
Asset retirement obligations	265	259
Other liabilities	426	407
Total liabilities	8,445	8,112
Commitments and contingencies
Cimarex redeemable preferred stock	11	50
Common stock:
Common stock	89	89
Additional paid-in capital	10,976	10,911
Retained earnings	3,460	2,563
Accumulated other comprehensive income	5	1
Treasury stock	(2,339)	(1,826)
Total stockholders' equity	12,191	11,738
Total liabilities and stockholders' equity	$ 20,647	$ 19,900

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Common stock, shares authorized (in shares)	1,800,000,000	1,800,000,000
Common stock, par value (in dollars per share)	$ 0.10	$ 0.10
Common stock, issued (in shares)	894,493,926	892,612,010
Treasury stock (in shares)	98,725,561	79,082,385

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
OPERATING REVENUES
Operating revenues	$ 2,638	$ 412	$ 4,708	$ 885
Loss on derivative instruments	(66)	(88)	(457)	(101)
Total operating revenues	2,572	324	4,251	784
OPERATING EXPENSES
Direct operations	116	16	216	33
Transportation, processing and gathering	238	133	471	270
Taxes other than income	98	4	174	9
Exploration	7	2	13	5
Depreciation, depletion and amortization	414	92	774	186
General and administrative	87	23	194	52
Total operating expenses	960	270	1,842	555
Loss on sale of assets	(3)	0	(1)	0
INCOME FROM OPERATIONS	1,609	54	2,408	229
Interest expense, net	21	13	42	25
Income before income taxes	1,588	41	2,366	204
Income tax expense	359	11	529	48
NET INCOME	$ 1,229	$ 30	$ 1,837	$ 156
Earnings per share
Basic (in dollars per share)	$ 1.53	$ 0.08	$ 2.28	$ 0.39
Diluted (in dollars per share)	$ 1.52	$ 0.08	$ 2.27	$ 0.39
Weighted-average common shares outstanding
Basic (in shares)	803	400	806	399
Weighted-average shares - diluted (in shares)	808	403	809	402
Natural gas
OPERATING REVENUES
Operating revenues	$ 1,468	$ 412	$ 2,579	$ 885
Oil
OPERATING REVENUES
Operating revenues	876	0	1,575	0
NGL
OPERATING REVENUES
Operating revenues	280	0	525	0
Other
OPERATING REVENUES
Operating revenues	$ 14	$ 0	$ 29	$ 0

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 1,837	$ 156
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation, depletion and amortization	774	186
Deferred income tax expense	101	15
Loss on sale of assets	1	0
Loss on derivative instruments	457	101
Net cash (paid) received in settlement of derivative instruments	(464)	3
Amortization of premium and debt issuance costs	(19)	1
Stock-based compensation and other	38	14
Changes in assets and liabilities:
Accounts receivable, net	(489)	32
Income taxes	(200)	(16)
Inventories	(9)	(2)
Other current assets	(6)	(3)
Accounts payable and accrued liabilities	147	(12)
Interest payable	1	(3)
Other assets and liabilities	32	(3)
Net cash provided by operating activities	2,201	469
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(745)	(274)
Proceeds from sale of assets	4	0
Net cash used in investing activities	(741)	(274)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of debt	0	(88)
Repayments of finance leases	(3)	0
Treasury stock repurchases	(487)	0
Dividends paid	(940)	(84)
Cash received for stock option exercises	10	0
Cash paid for conversion of redeemable preferred stock	(10)	0
Tax withholdings on vesting of stock awards	(7)	(6)
Net cash used in financing activities	(1,437)	(178)
Net increase in cash, cash equivalents and restricted cash	23	17
Cash, cash equivalents and restricted cash, beginning of period	1,046	152
Cash, cash equivalents and restricted cash, end of period	$ 1,069	$ 169

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Millions, $ in Millions	Total	Common Stock	Treasury Shares	Paid-In Capital	Accumulated Other Comprehensive Income	Retained Earnings
Beginning balance (in shares) at Dec. 31, 2020		478
Beginning balance (in shares) at Dec. 31, 2020			79
Balance at beginning of period at Dec. 31, 2020	$ 2,216	$ 48	$ (1,823)	$ 1,804	$ 2	$ 2,185
Increase (Decrease) in Stockholders' Equity
Net income	126					126
Stock amortization and vesting	4			4
Common stock cash dividends	(40)					(40)
Ending balance (in shares) at Mar. 31, 2021		478
Ending balance (in shares) at Mar. 31, 2021			79
Balance at end of period at Mar. 31, 2021	2,306	$ 48	$ (1,823)	1,808	2	2,271
Beginning balance (in shares) at Dec. 31, 2020		478
Beginning balance (in shares) at Dec. 31, 2020			79
Balance at beginning of period at Dec. 31, 2020	2,216	$ 48	$ (1,823)	1,804	2	2,185
Increase (Decrease) in Stockholders' Equity
Net income	156
Ending balance (in shares) at Jun. 30, 2021		478
Ending balance (in shares) at Jun. 30, 2021			79
Balance at end of period at Jun. 30, 2021	2,300	$ 48	$ (1,823)	1,816	2	2,257
Beginning balance (in shares) at Dec. 31, 2020		478
Beginning balance (in shares) at Dec. 31, 2020			79
Balance at beginning of period at Dec. 31, 2020	2,216	$ 48	$ (1,823)	1,804	2	2,185
Increase (Decrease) in Stockholders' Equity
Treasury stock repurchases	(27)
Ending balance (in shares) at Dec. 31, 2021		893
Ending balance (in shares) at Dec. 31, 2021			79
Balance at end of period at Dec. 31, 2021	11,738	$ 89	$ (1,826)	10,911	1	2,563
Beginning balance (in shares) at Mar. 31, 2021		478
Beginning balance (in shares) at Mar. 31, 2021			79
Balance at beginning of period at Mar. 31, 2021	2,306	$ 48	$ (1,823)	1,808	2	2,271
Increase (Decrease) in Stockholders' Equity
Net income	30					30
Stock amortization and vesting	8			8
Common stock cash dividends	(44)					(44)
Ending balance (in shares) at Jun. 30, 2021		478
Ending balance (in shares) at Jun. 30, 2021			79
Balance at end of period at Jun. 30, 2021	2,300	$ 48	$ (1,823)	1,816	2	2,257
Beginning balance (in shares) at Dec. 31, 2021		893
Beginning balance (in shares) at Dec. 31, 2021			79
Balance at beginning of period at Dec. 31, 2021	11,738	$ 89	$ (1,826)	10,911	1	2,563
Increase (Decrease) in Stockholders' Equity
Net income	608					608
Exercise of stock options	6			6
Stock amortization and vesting	$ 10			10
Treasury stock repurchases (in shares)	8
Treasury stock repurchases	$ (192)
Common stock cash dividends	(455)					(455)
Preferred stock dividends	(1)					(1)
Other comprehensive income	4				4
Ending balance (in shares) at Mar. 31, 2022		893
Ending balance (in shares) at Mar. 31, 2022			87
Balance at end of period at Mar. 31, 2022	11,718	$ 89	$ (2,018)	10,927	5	2,715
Beginning balance (in shares) at Dec. 31, 2021		893
Beginning balance (in shares) at Dec. 31, 2021			79
Balance at beginning of period at Dec. 31, 2021	11,738	$ 89	$ (1,826)	10,911	1	2,563
Increase (Decrease) in Stockholders' Equity
Net income	$ 1,837
Treasury stock repurchases (in shares)	20
Treasury stock repurchases	$ (513)
Ending balance (in shares) at Jun. 30, 2022		894
Ending balance (in shares) at Jun. 30, 2022			99
Balance at end of period at Jun. 30, 2022	12,191	$ 89	$ (2,339)	10,976	5	3,460
Beginning balance (in shares) at Mar. 31, 2022		893
Beginning balance (in shares) at Mar. 31, 2022			87
Balance at beginning of period at Mar. 31, 2022	11,718	$ 89	$ (2,018)	10,927	5	2,715
Increase (Decrease) in Stockholders' Equity
Net income	1,229					1,229
Exercise of stock options	3			3
Stock amortization and vesting	18			18
Conversion of Cimarex redeemable preferred stock (in shares)		1
Conversion of Cimarex redeemable preferred stock	28			28
Treasury stock repurchases (in shares)			12
Treasury stock repurchases	(321)		$ (321)
Common stock cash dividends	(484)					(484)
Other comprehensive income	0
Ending balance (in shares) at Jun. 30, 2022		894
Ending balance (in shares) at Jun. 30, 2022			99
Balance at end of period at Jun. 30, 2022	$ 12,191	$ 89	$ (2,339)	$ 10,976	$ 5	$ 3,460

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical)	3 Months Ended
	Mar. 31, 2022 $ / shares
Statement of Stockholders' Equity [Abstract]
Cash dividends, per share (in dollars per share)	$ 0.56
Preferred stock, dividends (in dollars per share)	$ 20.3125

Financial Statement Presentatio

Financial Statement Presentation	6 Months Ended
	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Financial Statement Presentation	Financial Statement Presentation During interim periods, Coterra Energy Inc. (the “Company”) follows the same accounting policies disclosed in its Annual Report on Form 10-K for the year ended December 31, 2021 (the “Form 10-K”) filed with the Securities and Exchange Commission (“SEC”), except for any new accounting pronouncements adopted during the period. The interim condensed consolidated financial statements should be read in conjunction with the notes to the consolidated financial statements and information presented in the Form 10-K. In management’s opinion, the accompanying interim condensed consolidated financial statements contain all material adjustments, consisting only of normal recurring adjustments, necessary for a fair statement. The results for any interim period are not necessarily indicative of the results that may be expected for the entire year. Certain reclassifications have been made to prior year statements to conform with the current year presentation. These reclassifications have no impact on previously reported stockholders' equity, net income or cash flows.

Acquisitions

Acquisitions	6 Months Ended
	Jun. 30, 2022
Business Combination and Asset Acquisition [Abstract]
Acquisitions	Acquisitions Cimarex Energy Co. On October 1, 2021, the Company completed a merger transaction (the “Merger”) with Cimarex Energy Co. (“Cimarex”). Cimarex is an oil and gas exploration and production company with operations in Texas, New Mexico and Oklahoma. Purchase Price Allocation The transaction was accounted for using the acquisition method of accounting. Under the acquisition method of accounting, the assets, liabilities and mezzanine equity of Cimarex and its subsidiaries were recorded at their respective fair values as of the effective date of the Merger. The purchase price allocation was based on preliminary estimates and assumptions, which are subject to change for up to one year after October 1, 2021, the effective date of the Merger, as the Company finalizes the valuations of the assets acquired, liabilities assumed and the related tax balances as of the effective date of the Merger. Determining the fair value of the assets and liabilities of Cimarex requires judgment and certain assumptions to be made. The most significant fair value estimates related to the valuation of Cimarex's oil and gas properties and certain other fixed assets, long-term debt and derivative instruments. Oil and gas properties and certain fixed assets were valued using an income and market approach utilizing Level 3 inputs including internally generated production and development data and estimated price and cost estimates. Long-term debt was valued using a market approach utilizing Level 1 inputs including observable market prices on the underlying debt instruments. Derivative liabilities were based on Level 3 inputs consistent with the Company’s other commodity derivative instruments. There were no adjustments to the purchase price allocation during the six months ended June 30, 2022. Unaudited Pro Forma Financial Information The results of Cimarex’s operations have been included in the Company’s consolidated financial statements since October 1, 2021, the effective date of the Merger. The following supplemental pro forma information for the six months ended June 30, 2021 has been prepared to give effect to the Merger as if it had occurred on January 1, 2021. The information below reflects pro forma adjustments based on available information and certain assumptions that management believes are factual and supportable. The pro forma results of operations do not include any cost savings or other synergies that may result from the acquisition or any estimated costs that have been or will be incurred by Coterra to integrate the Cimarex assets. The pro forma information is not necessarily indicative of the results that might have occurred had the transaction actually taken place on January 1, 2021 and is not intended to be a projection of future results. Future results may vary significantly from the results reflected in the following pro forma information because of normal production declines, changes in commodity prices, future acquisitions and divestitures, future development and exploration activities and other factors. (In millions, except per share amounts) Six Months Ended Pro forma revenue $ 1,802 Pro forma net income 71 Pro forma basic earnings per share $ 0.09 Pro forma diluted earnings per share $ 0.09

Properties and Equipment, Net

Properties and Equipment, Net	6 Months Ended
	Jun. 30, 2022
Property, Plant and Equipment [Abstract]
Properties and Equipment, Net	Properties and Equipment, Net Properties and equipment, net are comprised of the following: (In millions) June 30, December 31, Proved oil and gas properties $ 16,102 $ 15,340 Unproved oil and gas properties 5,292 5,316 Gathering and pipeline systems 423 395 Land, buildings and other equipment 144 140 Finance lease right-of-use asset 24 20 21,985 21,211 Accumulated depreciation, depletion and amortization (4,578) (3,836) $ 17,407 $ 17,375 Capitalized Exploratory Well Costs As of June 30, 2022, the Company did not have any projects with exploratory well costs capitalized for a period of greater than one year after drilling.

Debt and Credit Agreements

Debt and Credit Agreements	6 Months Ended
	Jun. 30, 2022
Debt Disclosure [Abstract]
Debt and Credit Agreements	Debt and Credit Agreements The Company’s debt and credit agreements consisted of the following: (In millions) June 30, December 31, 6.51% weighted-average private placement senior notes (1) $ 37 $ 37 5.58% weighted-average private placement senior notes (2) 87 87 3.65% weighted-average private placement senior notes 825 825 4.375% senior notes due June 1, 2024 750 750 3.90% senior notes due May 15, 2027 750 750 4.375% senior notes due March 15, 2029 500 500 Revolving credit facility — — Net premium (discount) 164 185 Unamortized debt issuance costs (8) (9) $ 3,105 $ 3,125 ________________________________________________________ (1) Includes $37 million of current portion of long-term debt at June 30, 2022. (2) Includes $87 million of current portion of long-term debt at June 30, 2022. At June 30, 2022, the Company was in compliance with all financial and other covenants for both its revolving credit facility and senior notes. Subsequent event. In August 2022, the Company repurchased $37 million principal amount of its 6.51% weighted-average senior notes for approximately $38 million and $87 million principal amount of its 5.58% weighted-average senior notes for approximately $92 million. Revolving Credit Agreement

Derivative Instruments

Derivative Instruments	6 Months Ended
	Jun. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments	Derivative Instruments As of June 30, 2022, the Company had the following outstanding financial commodity derivatives: 2022 2023 Natural Gas Third Quarter Fourth Quarter First Quarter Second Quarter Third Quarter Fourth Quarter Waha swaps (1) Volume (Mmbtu) 4,600,000 1,550,000 — — — — Weighted average price $ 4.77 $ 4.77 $ — $ — $ — $ — Waha gas collars (1) Volume (Mmbtu) 2,760,000 1,840,000 8,100,000 8,190,000 8,280,000 8,280,000 Weighted average floor $ 2.47 $ 2.50 $ 3.03 $ 3.03 $ 3.03 $ 3.03 Weighted average ceiling $ 3.00 $ 3.12 $ 5.39 $ 5.39 $ 5.39 $ 5.39 NYMEX collars Volume (Mmbtu) 60,720,000 57,670,000 31,500,000 4,550,000 4,600,000 1,550,000 Weighted average floor $ 4.07 $ 4.15 $ 4.46 $ 4.50 $ 4.50 $ 4.50 Weighted average ceiling $ 5.64 $ 6.58 $ 8.37 $ 8.39 $ 8.39 $ 8.39 El Paso Permian gas collars (2) Volume (Mmbtu) 1,840,000 1,840,000 — — — — Weighted average floor $ 2.50 $ 2.50 $ — $ — $ — $ — Weighted average ceiling $ 3.15 $ 3.15 $ — $ — $ — $ — PEPL gas collars (3) Volume (Mmbtu) 1,840,000 1,840,000 — — — — Weighted average floor $ 2.60 $ 2.60 $ — $ — $ — $ — Weighted average ceiling $ 3.27 $ 3.27 $ — $ — $ — $ — Leidy basis swaps (4) Volume (Mmbtu) 4,600,000 1,550,000 — — — — Weighted average price $ (1.50) $ (1.50) $ — $ — $ — $ — ________________________________________________________ (1) The index price is Waha West Texas Natural Gas Index (“Waha”) as quoted in Platt’s Inside FERC. (2) The index price is El Paso Natural Gas Company, Permian Basin Index (“Perm EP”) as quoted in Platt’s Inside FERC. (3) The index price is Panhandle Eastern Pipe Line, Tex/OK Mid-Continent Index (“PEPL”) as quoted in Platt’s Inside FERC. (4) The index price is Transco, Leidy Line receipts (“Leidy”) as quoted in Platt’s Inside FERC. 2022 2023 Oil Third Quarter Fourth Quarter First Quarter Second Quarter WTI oil collars Volume (Mbbl) 2,116 2,116 1,350 1,365 Weighted average floor $ 56.78 $ 67.65 $ 70.00 $ 70.00 Weighted average ceiling $ 72.81 $ 112.50 $ 116.03 $ 116.03 WTI Midland oil basis swaps (1) Volume (Mbbl) 1,840 2,116 1,350 1,365 Weighted average differential $ 0.34 $ 0.46 $ 0.63 $ 0.63 WTI oil roll differential swaps Volume (Mbbl) 644 — — — Weighted average price $ 0.10 $ — $ — $ — ________________________________________________________ (1) The index price is WTI Midland as quoted by Argus Americas Crude. Effect of Derivative Instruments on the Condensed Consolidated Balance Sheet Fair Values of Derivative Instruments Derivative Assets Derivative Liabilities (In millions) Balance Sheet Location June 30, December 31, June 30, December 31, Commodity contracts Other current assets (current) $ 9 $ 7 $ — $ — Commodity contracts Derivative instruments (current) — — 170 159 Commodity contracts Other assets (non-current) 16 — — — $ 25 $ 7 $ 170 $ 159 Offsetting of Derivative Assets and Liabilities in the Condensed Consolidated Balance Sheet (In millions) June 30, December 31, Derivative assets Gross amounts of recognized assets $ 56 $ 27 Gross amounts offset in the condensed consolidated balance sheet (31) (20) Net amounts of assets presented in the condensed consolidated balance sheet 25 7 Gross amounts of financial instruments not offset in the condensed consolidated balance sheet — — Net amount $ 25 $ 7 Derivative liabilities Gross amounts of recognized liabilities $ 201 $ 179 Gross amounts offset in the condensed consolidated balance sheet (31) (20) Net amounts of liabilities presented in the condensed consolidated balance sheet 170 159 Gross amounts of financial instruments not offset in the condensed consolidated balance sheet 48 35 Net amount $ 218 $ 194 Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations Three Months Ended Six Months Ended (In millions) 2022 2021 2022 2021 Cash (paid) received on settlement of derivative instruments Gas contracts $ (161) $ — $ (203) $ 3 Oil contracts (132) — (261) — Non-cash gain (loss) on derivative instruments Gas Contracts 133 (88) (49) (104) Oil Contracts 94 — 56 — $ (66) $ (88) $ (457) $ (101)

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The Company follows the authoritative guidance for measuring fair value of assets and liabilities in its financial statements. For further information regarding the fair value hierarchy, refer to Note 1 of the Notes to the Consolidated Financial Statements in the Form 10-K. Financial Assets and Liabilities The following fair value hierarchy table presents information about the Company’s financial assets and liabilities measured at fair value on a recurring basis: (In millions) Quoted Prices in Significant Other Significant Balance at Assets Deferred compensation plan $ 41 $ — $ — $ 41 Derivative instruments — — 56 56 $ 41 $ — $ 56 $ 97 Liabilities Deferred compensation plan $ 54 $ — $ — $ 54 Derivative instruments — — 201 201 $ 54 $ — $ 201 $ 255 (In millions) Quoted Prices in Significant Other Significant Balance at Assets Deferred compensation plan $ 47 $ — $ — $ 47 Derivative instruments — — 27 27 $ 47 $ — $ 27 $ 74 Liabilities Deferred compensation plan $ 56 $ — $ — $ 56 Derivative instruments — — 179 179 $ 56 $ — $ 179 $ 235 The Company's investments associated with its deferred compensation plan consist of mutual funds and deferred shares of the Company's common stock that are publicly traded and for which market prices are readily available. The derivative instruments were measured based on quotes from the Company's counterparties or internal models. Such quotes and models have been derived using an income approach that considers various inputs, including current market and contractual prices for the underlying instruments, quoted forward commodity prices, basis differentials, volatility factors and interest rates for a similar length of time as the derivative contract term as applicable. Estimates are derived from or verified using relevant NYMEX futures contracts and/or are compared to multiple quotes obtained from counterparties. The determination of the fair values presented above also incorporates a credit adjustment for non-performance risk. The Company measured the non-performance risk of its counterparties by reviewing credit default swap spreads for the various financial institutions with which it has derivative transactions while non-performance risk of the Company is evaluated using market credit spreads provided by several of the Company's banks. The Company has not incurred any losses related to non-performance risk of its counterparties and does not anticipate any material impact on its financial results due to non-performance by third parties. The most significant unobservable inputs relative to the Company's Level 3 derivative contracts are basis differentials and volatility factors. An increase (decrease) in these unobservable inputs would result in an increase (decrease) in fair value, respectively. The Company does not have access to the specific assumptions used in its counterparties’ valuation models. Consequently, additional disclosures regarding significant Level 3 unobservable inputs were not provided. The following table sets forth a reconciliation of changes in the fair value of financial assets and liabilities classified as Level 3 in the fair value hierarchy: Six Months Ended (In millions) 2022 2021 Balance at beginning of period $ (152) $ 24 Total gain (loss) included in earnings (450) (78) Settlement (gain) loss 457 (4) Transfers in and/or out of Level 3 — — Balance at end of period $ (145) $ (58) Change in unrealized gains (losses) relating to assets and liabilities still held at the end of the period $ (112) $ (64) Non-Financial Assets and Liabilities The Company discloses or recognizes its non-financial assets and liabilities, such as impairments or acquisitions, at fair value on a nonrecurring basis. As none of the Company’s other non-financial assets and liabilities were measured at fair value as of June 30, 2022, additional disclosures were not required. The estimated fair value of the Company’s asset retirement obligations at inception is determined by utilizing the income approach by applying a credit-adjusted risk-free rate, which takes into account the Company’s credit risk, the time value of money, and the current economic state to the undiscounted expected abandonment cash flows. Given the unobservable nature of the inputs, the measurement of the asset retirement obligations was classified as Level 3 in the fair value hierarchy. Fair Value of Other Financial Instruments The estimated fair value of other financial instruments is the amount at which the instruments could be exchanged currently between willing parties. The carrying amounts reported in the Condensed Consolidated Balance Sheet for cash and cash equivalents and restricted cash approximate fair value, due to the short-term maturities of these instruments. Cash and cash equivalents and restricted cash are classified as Level 1 in the fair value hierarchy and the remaining financial instruments are classified as Level 2. The fair value of the Company’s 4.375% senior notes due June 1, 2024, 3.90% senior notes due May 15, 2027 and 4.375% senior notes due March 15, 2029 is based on quoted market prices, which is classified as Level 1 in the fair value hierarchy. The Company uses available market data and valuation methodologies to estimate the fair value of its private placement senior notes. The fair value of the private placement senior notes is the estimated amount the Company would have to pay a third party to assume the debt, including a credit spread for the difference between the issue rate and the period end market rate. The credit spread is the Company’s default or repayment risk. The credit spread (premium or discount) is determined by comparing the Company’s senior notes and revolving credit facility to new issuances (secured and unsecured) and secondary trades of similar size and credit statistics for both public and private debt. The fair value of the private placement senior notes is based on interest rates currently available to the Company. The Company’s private placement senior notes are valued using an income approach and are classified as Level 3 in the fair value hierarchy. The carrying amount and estimated fair value of debt is as follows: June 30, 2022 December 31, 2021 (In millions) Carrying Estimated Fair Carrying Estimated Fair Long-term debt $ 3,105 $ 2,887 $ 3,125 $ 3,163 Current maturities (124) (127) — — Long-term debt, excluding current maturities $ 2,981 $ 2,760 $ 3,125 $ 3,163

Asset Retirement Obligations

Asset Retirement Obligations	6 Months Ended
	Jun. 30, 2022
Asset Retirement Obligation Disclosure [Abstract]
Asset Retirement Obligations	Asset Retirement Obligations Activity related to the Company’s asset retirement obligations is as follows: (In millions) Six Months Ended Balance at beginning of period $ 263 Liabilities incurred 6 Liabilities settled (2) Liabilities divested (3) Accretion expense 5 Balance at end of period 269 Less: current asset retirement obligations (4) Noncurrent asset retirement obligations $ 265

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Contractual Obligations The Company has various contractual obligations in the normal course of its operations. There have been no material changes to the Company’s contractual obligations described under “Transportation, Processing and Gathering Agreements” and “Lease Commitments” as disclosed in Note 8 of the Notes to Consolidated Financial Statements in the Form 10-K, except as discussed below. Lease Commitments Subsequent Event. On July 7, 2022, the Company commenced a lease for an electric hydraulic fracturing fleet. The Company expects to record an operating lease liability and right-of-use asset of between $145 million and $155 million during the third quarter of 2022 related to this lease. Legal Matters Pennsylvania Office of Attorney General Matter On June 16, 2020, the Office of Attorney General of the Commonwealth of Pennsylvania informed the Company that it will pursue certain misdemeanor and felony charges in a Susquehanna County Magisterial District Court against the Company related to alleged violations of the Pennsylvania Clean Streams Law, which prohibits discharge of industrial wastes. The Company is vigorously defending itself against such charges; however, the proceedings could result in fines or penalties against the Company. At this time, it is not possible to estimate the amount of any fines or penalties, or the range of such fines or penalties, that are reasonably possible in this case. Securities Litigation In October 2020, a class action lawsuit styled Delaware County Emp. Ret. Sys. v. Cabot Oil and Gas Corp., et. al. (U.S. District Court, Middle District of Pennsylvania), was filed against the Company, Dan O. Dinges, its then Chief Executive Officer, and Scott C. Schroeder, its Chief Financial Officer, alleging that the Company made misleading statements in its periodic filings with the SEC in violation of Section 10(b) and Section 20 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The plaintiffs allege misstatements in the Company’s public filings and disclosures over a number of years relating to its potential liability for alleged environmental violations in Pennsylvania. The plaintiffs allege that such misstatements caused a decline in the price of the Company’s common stock when it disclosed in its Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2019 two notices of violations from the Pennsylvania Department of Environmental Protection and an additional decline when it disclosed on June 15, 2020 the criminal charges brought by the Office of the Attorney General of the Commonwealth of Pennsylvania related to alleged violations of the Pennsylvania Clean Streams Law, which prohibits discharge of industrial wastes. The court appointed Delaware County Employees Retirement System to represent the purported class on February 3, 2021. In April 2021, the complaint was amended to include Phillip L. Stalnaker, the Company’s then Senior Vice President of Operations, as a defendant. The plaintiffs seek monetary damages, interest and attorney’s fees. Also in October 2020, a stockholder derivative action styled Ezell v. Dinges, et. al. (U.S. District Court, Middle District of Pennsylvania) was filed against the Company, Messrs. Dinges and Schroeder and the Board of Directors of the Company serving at that time, for alleged securities violations under Section 10(b) and Section 21D of the Exchange Act arising from the same alleged misleading statements that form the basis of the class action lawsuit described above. In addition to the Exchange Act claims, the derivative actions also allege claims based on breaches of fiduciary duty and statutory contribution theories. In December 2020, the Ezell case was consolidated with a second derivative case filed in the U.S. District Court, Middle District of Pennsylvania with similar allegations. In January 2021, a third derivative case was filed in the U.S. District Court, Middle District of Pennsylvania with substantially similar allegations and it too was consolidated with the Ezell case in February 2021. On February 25, 2021, the Company filed a motion to transfer the class action lawsuit to the U.S. District Court for the Southern District of Texas, in Houston, Texas, where its headquarters are located. On June 11, 2021, the Company filed a motion to dismiss the class action lawsuit on the basis that the plaintiffs’ allegations do not meet the requirements for pleading a claim under Section 10(b) or Section 20 of the Exchange Act. On June 22, 2021, the motion to transfer the class action lawsuit to the Southern District of Texas was granted. Pursuant to the prior agreement of the parties, the consolidated derivative case discussed in the preceding paragraph was also transferred to the Southern District of Texas on July 12, 2021. Subsequently, an additional stockholder derivative action styled Treppel Family Trust U/A 08/18/18 Lawrence A. Treppel and Geri D. Treppel for the benefit of Geri D. Treppel and Larry A. Treppel v. Dinges, et al. (U.S. District Court, Southern District of Texas, Houston Division), asserting substantially similar Delaware common law claims as in the existing derivative cases, was filed in the Southern District of Texas and consolidated with the existing consolidated derivative cases. On January 12, 2022, the U.S. District Court for the Southern District of Texas granted the Company’s motion to dismiss the class action lawsuit but allowed the plaintiffs to file an amended complaint. The class action plaintiffs filed their amended complaint on February 11, 2022. The Company filed a motion to dismiss the amended class action complaint on March 10, 2022. The motion to dismiss is fully briefed and is pending for decision. On April 1, 2022, the U.S. District Court for the Southern District of Texas granted the Company’s motion to dismiss the consolidated derivative case but allowed the plaintiffs to file an amended complaint. The derivative plaintiffs filed their third amended complaint on May 16, 2022. The Company filed its motion to dismiss on June 10, 2022. The Company intends to vigorously defend the class action and derivative lawsuits. In November 2020, the Company received a stockholder demand for inspection of books and records under Section 220 of the General Corporation Law of the State of Delaware (“Section 220 Demand”). The Section 220 Demand seeks broad categories of documents reviewed by the Board of Directors and minutes of meetings of the Board of Directors pertaining to alleged environmental violations in Pennsylvania, as well as documents relating to any board of directors conflicts of interest, dating from January 1, 2015 to the present. The Company also received three other similar requests from other stockholders in February and June 2021. On May 17, 2021, the Company was served with a complaint filed in the Court of Chancery of the State of Delaware by the stockholder making the February 2021 Section 220 Demand to compel the production of books and records requested. After making an agreed books and records production, the Section 220 complaint was voluntarily dismissed effective September 21, 2021. The Company also provided substantially the same books and records production in response to the other three Section 220 requests described above. It is possible that one or more additional stockholder suits could be filed pertaining to the subject matter of the Section 220 Demands and the class and derivative actions described above. Other Legal Matters The Company is a defendant in various other legal proceedings arising in the normal course of business. All known liabilities are accrued when management determines they are probable based on its best estimate of the potential loss. While the outcome and impact of these legal proceedings on the Company cannot be predicted with certainty, management believes that the resolution of these proceedings will not have a material effect on the Company’s financial position, results of operations or cash flows. Contingency Reserves When deemed necessary, the Company establishes reserves for certain legal proceedings. The establishment of a reserve is based on an estimation process that includes the advice of legal counsel and subjective judgment of management. While management believes these reserves to be adequate, it is reasonably possible that the Company could incur additional losses with respect to those matters for which reserves have been established. The Company believes that any such amount above the

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue Recognition Disaggregation of Revenue The following table presents revenues from contracts with customers disaggregated by product: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2022 2021 2022 2021 Natural gas $ 1,468 $ 412 $ 2,579 $ 885 Oil 876 — 1,575 — NGL 280 — 525 — Other 14 — 29 — $ 2,638 $ 412 $ 4,708 $ 885 All of the Company’s revenues from contracts with customers represent products transferred at a point in time as control is transferred to the customer and generated in the United States of America. Transaction Price Allocated to Remaining Performance Obligations A significant number of the Company’s product sales contracts are short-term in nature, with a contract term of one year or less. For those contracts, the Company has utilized the practical expedient exempting the Company from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less. As of June 30, 2022, the Company had $7.5 billion of unsatisfied performance obligations related to natural gas sales that have a fixed pricing component and a contract term greater than one year. The Company expects to recognize these obligations over periods ranging from two Contract Balances

Capital Stock

Capital Stock	6 Months Ended
	Jun. 30, 2022
Equity [Abstract]
Capital Stock	Capital Stock Dividends Common Stock In February 2022, the Company’s Board of Directors approved an increase in the quarterly base dividend on the Company’s common stock from $0.125 to $0.15 per share. The following table summarizes the dividends the Company has paid on its common stock during the six months ended June 30, 2022 and 2021: Rate per share Fixed Variable Total Total Dividends Paid 2022: First quarter $ 0.15 $ 0.41 $ 0.56 $ 455 Second quarter 0.15 0.45 0.60 484 Total year-to-date $ 0.30 $ 0.86 $ 1.16 $ 939 2021: First quarter $ 0.10 $ — $ 0.10 $ 40 Second quarter 0.11 — 0.11 44 Total year-to-date $ 0.21 $ — $ 0.21 $ 84 Subsequent Event . In August 2022, the Company’s Board of Directors approved the quarterly base dividend of $0.15 per share and a variable dividend of $0.50 per share, resulting in a base-plus-variable dividend of $0.65 per share on the Company’s common stock. Treasury Stock In February 2022, the Company’s Board of Directors terminated the previously authorized share repurchase program and authorized a new share repurchase program. This new share repurchase program authorizes the Company to purchase up to $1.25 billion of the Company’s common stock in the open market or in negotiated transactions. During the six months ended June 30, 2022, the Company repurchased 20 million shares for $513 million under the new share repurchase program, including repurchases of $27 million that were purchased prior to June 30, 2022 and settled in July 2022. As of June 30, 2022, 99 million shares were held as treasury stock, with $737 million remaining under the Company’s current share repurchase program. Cimarex Redeemable Preferred Stock In May 2022, the holders of 21,900 shares of Cimarex redeemable preferred stock elected to convert their Cimarex redeemable preferred stock into Coterra common stock and cash. As a result of the conversion, the holders received 809,846 shares of Coterra common stock and $10 million in cash according to the terms of the Certificate of Designations for the Cimarex redeemable preferred stock. The book value of the converted shares was $39 million, and upon conversion the excess of carrying value over cash paid was credited to additional paid-in capital. There was no gain or loss recognized on the transaction because it was completed in accordance with the original terms of the Certificate of Designations for the Cimarex redeemable preferred stock. At June 30, 2022, there were 6,125 shares of Cimarex redeemable preferred stock outstanding with a carrying value of $11 million.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation General The Company grants certain stock-based compensation awards, including restricted stock awards, restricted stock units, performance share awards and stock options. Stock-based compensation expense associated with these awards was $21 million and $4 million in the second quarter of 2022 and 2021, respectively, and $44 million and $16 million for the six months ended June 30, 2022 and 2021, respectively. Stock-based compensation expense is included in general and administrative expense in the Condensed Consolidated Statement of Operations. Refer to Note 13 of the Notes to the Consolidated Financial Statements in the Form 10-K for further description of the various types of stock-based compensation awards and the applicable award terms. Restricted Stock Units - Employees During the six months ended June 30, 2022, the Company granted 1,494,205 restricted stock units to employees of the Company with a weighted average grant date value of $23.98 per unit. The fair value of restricted stock unit grants is based on the closing stock price on the grant date. Restricted stock units generally vest either at the end of a three-year service period or on a graded or graduated vesting basis at each anniversary date over a three-year service period. The Company used an annual forfeiture rate assumption of zero to five percent for purposes of recognizing stock-based compensation expense for its restricted stock units. Restricted Stock Units - Non-Employees Directors In June 2022, the Company granted 45,472 restricted stock units, with a weighted-average grant date value of $35.19 per unit, to the Company’s non-employee directors. The fair value of these units is measured based on the closing stock price on grant date. These units will vest in April 2023 and the Company will recognize compensation expense ratably over the vesting period. Performance Share Awards The performance period for the awards granted by the Company during the six months ended June 30, 2022 commenced on February 1, 2022 and ends on January 31, 2025. The Company used an annual forfeiture rate assumption of zero percent for purposes of recognizing stock-based compensation expense for its performance share awards. Performance Share Awards Based on Market Conditions These awards have both an equity and liability component, with the right to receive up to the first 100 percent of the award in shares of common stock and the right to receive up to an additional 100 percent of the value of the award in excess of the equity component in cash. The equity portion of these awards is valued on the grant date and is not marked to market, while the liability portion of the awards is valued as of the end of each reporting period on a mark-to-market basis. The Company calculates the fair value of the equity and liability portions of the awards using a Monte Carlo simulation model. TSR Performance Share Awards . During the six months ended June 30, 2022, the Company granted 1,161,599 performance share awards (the “TSR Performance Share Awards”) which are earned, or not earned, based on the comparative performance of the Company’s common stock measured against a predetermined group of companies in the Company’s peer group and certain industry-related indices over a three-year performance period. The 2022 TSR Performance Share Awards include a feature that will reduce the potential cash component of the award if the actual performance is negative over the three-year period and the base calculation indicates an above-target payout. The following assumptions were used to determine the grant date fair value of the equity component on February 28, 2022 and the period-end fair value of the liability component of the TSR Performance Share Awards: Grant Date June 30, Fair value per performance share award $ 17.89 $ 14.04 Assumptions: Stock price volatility 42.3 % 46.2 % Risk-free rate of return 1.60 % 2.94 %

Earnings per Common Share

Earnings per Common Share	6 Months Ended
	Jun. 30, 2022
Earnings Per Share [Abstract]
Earnings per Common Share	Earnings per Common ShareBasic earnings per share (“EPS”) is computed by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted EPS is similarly calculated, except that the common shares outstanding for the period is increased using the treasury stock method to reflect the potential dilution that could occur if outstanding stock awards were vested at the end of the applicable period. Anti-dilutive shares represent potentially dilutive securities that are excluded from the computation of diluted income or loss per share as their impact would be anti-dilutive. The following is a calculation of basic and diluted earnings per share: Three Months Ended Six Months Ended (In millions, except per share amounts) 2022 2021 2022 2021 Income (Numerator) Net income $ 1,229 $ 30 $ 1,837 $ 156 Less: dividends attributable to participating securities (1) — (3) — Less: Cimarex redeemable preferred stock dividends — — (1) — Net income available to common stockholders $ 1,228 $ 30 $ 1,833 $ 156 Shares (Denominator) Weighted-average shares - Basic 803 400 806 399 Dilution effect of stock awards at end of period 5 3 3 3 Weighted-average shares - Diluted 808 403 809 402 Earnings per share: Basic $ 1.53 $ 0.08 $ 2.28 $ 0.39 Diluted $ 1.52 $ 0.08 $ 2.27 $ 0.39 The following is a calculation of weighted-average shares excluded from diluted EPS due to anti-dilutive effect: Three Months Ended Six Months Ended (In millions) 2022 2021 2022 2021 Weighted-average stock awards excluded from diluted EPS due to the anti-dilutive effect calculated using the treasury stock method — — 1 1

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2022
Related Party Transactions [Abstract]
Related Party Transactions	Related Party TransactionsFrom time to time, Helmerich & Payne, Inc. (“H&P”) provides contract drilling services to the Company. The Company incurred drilling costs of approximately $2 million and $5 million related to these services during the three and six months ended June 30, 2022, respectively.Hans Helmerich, a director of the Company, is the Chairman of the Board of Directors of H&P.

Restructuring Costs

Restructuring Costs	6 Months Ended
	Jun. 30, 2022
Restructuring and Related Activities [Abstract]
Restructuring Costs	Restructuring Costs In connection with the Merger, the Company incurred certain merger-related restructuring costs that are primarily related to workforce reductions and the associated employee severance benefits that were triggered by the Merger. The Company recognized $33 million of restructuring expenses during 2022 related to the accrual of employee-related severance and termination benefits associated with the expected termination of certain Cimarex employees. The following table summarizes the Company’s restructuring liabilities: (In millions) Six Months Ended June 30, 2022 Balance at beginning of period $ 43 Additions to merger-related restructuring costs 33 Payments of merger-related restructuring costs (7) Balance at end of period $ 69

Additional Balance Sheet Inform

Additional Balance Sheet Information	6 Months Ended
	Jun. 30, 2022
Balance Sheet Related Disclosures [Abstract]
Additional Balance Sheet Information	Additional Balance Sheet Information Certain balance sheet amounts are comprised of the following: (In millions) June 30, December 31, Accounts receivable, net Trade accounts $ 1,413 $ 922 Joint interest accounts 93 83 Other accounts 22 34 1,528 1,039 Allowance for credit losses (3) (2) $ 1,525 $ 1,037 Other assets Deferred compensation plan $ 41 $ 47 Debt issuance costs 4 5 Operating lease right-of-use assets 295 317 Derivative instruments 16 — Other accounts 52 20 $ 408 $ 389 Accounts payable Trade accounts $ 62 $ 94 Royalty and other owners 511 315 Accrued transportation 92 96 Accrued capital costs 167 88 Taxes other than income 78 60 Accrued lease operating costs 31 29 Other accounts 103 65 $ 1,044 $ 747 Accrued liabilities Employee benefits $ 78 $ 124 Taxes other than income 21 13 Operating lease liabilities 73 69 Financing lease liabilities 6 14 Other accounts 28 40 $ 206 $ 260 Other liabilities Deferred compensation plan $ 54 $ 56 Postretirement benefits 28 33 Operating lease liabilities 222 248 Financing lease liabilities 14 7 Other accounts 108 63 $ 426 $ 407

Financial Statement Presentat_2

Financial Statement Presentation (Policies)	6 Months Ended
	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Accounting	During interim periods, Coterra Energy Inc. (the “Company”) follows the same accounting policies disclosed in its Annual Report on Form 10-K for the year ended December 31, 2021 (the “Form 10-K”) filed with the Securities and Exchange Commission (“SEC”), except for any new accounting pronouncements adopted during the period. The interim condensed consolidated financial statements should be read in conjunction with the notes to the consolidated financial statements and information presented in the Form 10-K. In management’s opinion, the accompanying interim condensed consolidated financial statements contain all material adjustments, consisting only of normal recurring adjustments, necessary for a fair statement. The results for any interim period are not necessarily indicative of the results that may be expected for the entire year.
Reclassifications	Certain reclassifications have been made to prior year statements to conform with the current year presentation. These reclassifications have no impact on previously reported stockholders' equity, net income or cash flows.

Acquisitions (Tables)

Acquisitions (Tables)	6 Months Ended
	Jun. 30, 2022
Business Combination and Asset Acquisition [Abstract]
Pro forma financial information	The pro forma information is not necessarily indicative of the results that might have occurred had the transaction actually taken place on January 1, 2021 and is not intended to be a projection of future results. Future results may vary significantly from the results reflected in the following pro forma information because of normal production declines, changes in commodity prices, future acquisitions and divestitures, future development and exploration activities and other factors. (In millions, except per share amounts) Six Months Ended Pro forma revenue $ 1,802 Pro forma net income 71 Pro forma basic earnings per share $ 0.09 Pro forma diluted earnings per share $ 0.09

Properties and Equipment, Net (

Properties and Equipment, Net (Tables)	6 Months Ended
	Jun. 30, 2022
Property, Plant and Equipment [Abstract]
Schedule of properties and equipment, net	Properties and equipment, net are comprised of the following: (In millions) June 30, December 31, Proved oil and gas properties $ 16,102 $ 15,340 Unproved oil and gas properties 5,292 5,316 Gathering and pipeline systems 423 395 Land, buildings and other equipment 144 140 Finance lease right-of-use asset 24 20 21,985 21,211 Accumulated depreciation, depletion and amortization (4,578) (3,836) $ 17,407 $ 17,375

Debt and Credit Agreements (Tab

Debt and Credit Agreements (Tables)	6 Months Ended
	Jun. 30, 2022
Debt Disclosure [Abstract]
Schedule of debt and credit agreement components	The Company’s debt and credit agreements consisted of the following: (In millions) June 30, December 31, 6.51% weighted-average private placement senior notes (1) $ 37 $ 37 5.58% weighted-average private placement senior notes (2) 87 87 3.65% weighted-average private placement senior notes 825 825 4.375% senior notes due June 1, 2024 750 750 3.90% senior notes due May 15, 2027 750 750 4.375% senior notes due March 15, 2029 500 500 Revolving credit facility — — Net premium (discount) 164 185 Unamortized debt issuance costs (8) (9) $ 3,105 $ 3,125 ________________________________________________________ (1) Includes $37 million of current portion of long-term debt at June 30, 2022. (2) Includes $87 million of current portion of long-term debt at June 30, 2022.

Derivative Instruments (Tables)

Derivative Instruments (Tables)	6 Months Ended
	Jun. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of outstanding commodity derivatives	As of June 30, 2022, the Company had the following outstanding financial commodity derivatives: 2022 2023 Natural Gas Third Quarter Fourth Quarter First Quarter Second Quarter Third Quarter Fourth Quarter Waha swaps (1) Volume (Mmbtu) 4,600,000 1,550,000 — — — — Weighted average price $ 4.77 $ 4.77 $ — $ — $ — $ — Waha gas collars (1) Volume (Mmbtu) 2,760,000 1,840,000 8,100,000 8,190,000 8,280,000 8,280,000 Weighted average floor $ 2.47 $ 2.50 $ 3.03 $ 3.03 $ 3.03 $ 3.03 Weighted average ceiling $ 3.00 $ 3.12 $ 5.39 $ 5.39 $ 5.39 $ 5.39 NYMEX collars Volume (Mmbtu) 60,720,000 57,670,000 31,500,000 4,550,000 4,600,000 1,550,000 Weighted average floor $ 4.07 $ 4.15 $ 4.46 $ 4.50 $ 4.50 $ 4.50 Weighted average ceiling $ 5.64 $ 6.58 $ 8.37 $ 8.39 $ 8.39 $ 8.39 El Paso Permian gas collars (2) Volume (Mmbtu) 1,840,000 1,840,000 — — — — Weighted average floor $ 2.50 $ 2.50 $ — $ — $ — $ — Weighted average ceiling $ 3.15 $ 3.15 $ — $ — $ — $ — PEPL gas collars (3) Volume (Mmbtu) 1,840,000 1,840,000 — — — — Weighted average floor $ 2.60 $ 2.60 $ — $ — $ — $ — Weighted average ceiling $ 3.27 $ 3.27 $ — $ — $ — $ — Leidy basis swaps (4) Volume (Mmbtu) 4,600,000 1,550,000 — — — — Weighted average price $ (1.50) $ (1.50) $ — $ — $ — $ — ________________________________________________________ (1) The index price is Waha West Texas Natural Gas Index (“Waha”) as quoted in Platt’s Inside FERC. (2) The index price is El Paso Natural Gas Company, Permian Basin Index (“Perm EP”) as quoted in Platt’s Inside FERC. (3) The index price is Panhandle Eastern Pipe Line, Tex/OK Mid-Continent Index (“PEPL”) as quoted in Platt’s Inside FERC. (4) The index price is Transco, Leidy Line receipts (“Leidy”) as quoted in Platt’s Inside FERC. 2022 2023 Oil Third Quarter Fourth Quarter First Quarter Second Quarter WTI oil collars Volume (Mbbl) 2,116 2,116 1,350 1,365 Weighted average floor $ 56.78 $ 67.65 $ 70.00 $ 70.00 Weighted average ceiling $ 72.81 $ 112.50 $ 116.03 $ 116.03 WTI Midland oil basis swaps (1) Volume (Mbbl) 1,840 2,116 1,350 1,365 Weighted average differential $ 0.34 $ 0.46 $ 0.63 $ 0.63 WTI oil roll differential swaps Volume (Mbbl) 644 — — — Weighted average price $ 0.10 $ — $ — $ — ________________________________________________________ (1) The index price is WTI Midland as quoted by Argus Americas Crude.
Schedule of effect of derivative instruments on the condensed consolidated balance sheet	Effect of Derivative Instruments on the Condensed Consolidated Balance Sheet Fair Values of Derivative Instruments Derivative Assets Derivative Liabilities (In millions) Balance Sheet Location June 30, December 31, June 30, December 31, Commodity contracts Other current assets (current) $ 9 $ 7 $ — $ — Commodity contracts Derivative instruments (current) — — 170 159 Commodity contracts Other assets (non-current) 16 — — — $ 25 $ 7 $ 170 $ 159
Schedule of offsetting of derivative liabilities in the condensed consolidated balance sheet	Offsetting of Derivative Assets and Liabilities in the Condensed Consolidated Balance Sheet (In millions) June 30, December 31, Derivative assets Gross amounts of recognized assets $ 56 $ 27 Gross amounts offset in the condensed consolidated balance sheet (31) (20) Net amounts of assets presented in the condensed consolidated balance sheet 25 7 Gross amounts of financial instruments not offset in the condensed consolidated balance sheet — — Net amount $ 25 $ 7 Derivative liabilities Gross amounts of recognized liabilities $ 201 $ 179 Gross amounts offset in the condensed consolidated balance sheet (31) (20) Net amounts of liabilities presented in the condensed consolidated balance sheet 170 159 Gross amounts of financial instruments not offset in the condensed consolidated balance sheet 48 35 Net amount $ 218 $ 194
Schedule of offsetting of derivative assets in the condensed consolidated balance sheet	Offsetting of Derivative Assets and Liabilities in the Condensed Consolidated Balance Sheet (In millions) June 30, December 31, Derivative assets Gross amounts of recognized assets $ 56 $ 27 Gross amounts offset in the condensed consolidated balance sheet (31) (20) Net amounts of assets presented in the condensed consolidated balance sheet 25 7 Gross amounts of financial instruments not offset in the condensed consolidated balance sheet — — Net amount $ 25 $ 7 Derivative liabilities Gross amounts of recognized liabilities $ 201 $ 179 Gross amounts offset in the condensed consolidated balance sheet (31) (20) Net amounts of liabilities presented in the condensed consolidated balance sheet 170 159 Gross amounts of financial instruments not offset in the condensed consolidated balance sheet 48 35 Net amount $ 218 $ 194
Schedule of effect of derivatives on the condensed consolidated statement of operations	Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations Three Months Ended Six Months Ended (In millions) 2022 2021 2022 2021 Cash (paid) received on settlement of derivative instruments Gas contracts $ (161) $ — $ (203) $ 3 Oil contracts (132) — (261) — Non-cash gain (loss) on derivative instruments Gas Contracts 133 (88) (49) (104) Oil Contracts 94 — 56 — $ (66) $ (88) $ (457) $ (101)

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2022
Fair Value Disclosures [Abstract]
Financial assets and liabilities measured at fair value on a recurring basis	The following fair value hierarchy table presents information about the Company’s financial assets and liabilities measured at fair value on a recurring basis: (In millions) Quoted Prices in Significant Other Significant Balance at Assets Deferred compensation plan $ 41 $ — $ — $ 41 Derivative instruments — — 56 56 $ 41 $ — $ 56 $ 97 Liabilities Deferred compensation plan $ 54 $ — $ — $ 54 Derivative instruments — — 201 201 $ 54 $ — $ 201 $ 255 (In millions) Quoted Prices in Significant Other Significant Balance at Assets Deferred compensation plan $ 47 $ — $ — $ 47 Derivative instruments — — 27 27 $ 47 $ — $ 27 $ 74 Liabilities Deferred compensation plan $ 56 $ — $ — $ 56 Derivative instruments — — 179 179 $ 56 $ — $ 179 $ 235
Reconciliation of changes in the fair value of financial assets and liabilities classified as level 3	The following table sets forth a reconciliation of changes in the fair value of financial assets and liabilities classified as Level 3 in the fair value hierarchy: Six Months Ended (In millions) 2022 2021 Balance at beginning of period $ (152) $ 24 Total gain (loss) included in earnings (450) (78) Settlement (gain) loss 457 (4) Transfers in and/or out of Level 3 — — Balance at end of period $ (145) $ (58) Change in unrealized gains (losses) relating to assets and liabilities still held at the end of the period $ (112) $ (64)
Carrying amounts and fair values of debt	The carrying amount and estimated fair value of debt is as follows: June 30, 2022 December 31, 2021 (In millions) Carrying Estimated Fair Carrying Estimated Fair Long-term debt $ 3,105 $ 2,887 $ 3,125 $ 3,163 Current maturities (124) (127) — — Long-term debt, excluding current maturities $ 2,981 $ 2,760 $ 3,125 $ 3,163

Asset Retirement Obligations (T

Asset Retirement Obligations (Tables)	6 Months Ended
	Jun. 30, 2022
Asset Retirement Obligation Disclosure [Abstract]
Activity related to asset retirement obligations	Activity related to the Company’s asset retirement obligations is as follows: (In millions) Six Months Ended Balance at beginning of period $ 263 Liabilities incurred 6 Liabilities settled (2) Liabilities divested (3) Accretion expense 5 Balance at end of period 269 Less: current asset retirement obligations (4) Noncurrent asset retirement obligations $ 265

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
Disaggregation of revenue	The following table presents revenues from contracts with customers disaggregated by product: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2022 2021 2022 2021 Natural gas $ 1,468 $ 412 $ 2,579 $ 885 Oil 876 — 1,575 — NGL 280 — 525 — Other 14 — 29 — $ 2,638 $ 412 $ 4,708 $ 885

Capital Stock (Tables)

Capital Stock (Tables)	6 Months Ended
	Jun. 30, 2022
Equity [Abstract]
Schedule of Stock by Class	The following table summarizes the dividends the Company has paid on its common stock during the six months ended June 30, 2022 and 2021: Rate per share Fixed Variable Total Total Dividends Paid 2022: First quarter $ 0.15 $ 0.41 $ 0.56 $ 455 Second quarter 0.15 0.45 0.60 484 Total year-to-date $ 0.30 $ 0.86 $ 1.16 $ 939 2021: First quarter $ 0.10 $ — $ 0.10 $ 40 Second quarter 0.11 — 0.11 44 Total year-to-date $ 0.21 $ — $ 0.21 $ 84

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]
Assumptions to determine the grant date fair value of the equity component and the period-end fair value of the liability	The following assumptions were used to determine the grant date fair value of the equity component on February 28, 2022 and the period-end fair value of the liability component of the TSR Performance Share Awards: Grant Date June 30, Fair value per performance share award $ 17.89 $ 14.04 Assumptions: Stock price volatility 42.3 % 46.2 % Risk-free rate of return 1.60 % 2.94 %

Earnings per Common Share (Tabl

Earnings per Common Share (Tables)	6 Months Ended
	Jun. 30, 2022
Earnings Per Share [Abstract]
Calculation of basic and diluted weighted-average shares outstanding	The following is a calculation of basic and diluted earnings per share: Three Months Ended Six Months Ended (In millions, except per share amounts) 2022 2021 2022 2021 Income (Numerator) Net income $ 1,229 $ 30 $ 1,837 $ 156 Less: dividends attributable to participating securities (1) — (3) — Less: Cimarex redeemable preferred stock dividends — — (1) — Net income available to common stockholders $ 1,228 $ 30 $ 1,833 $ 156 Shares (Denominator) Weighted-average shares - Basic 803 400 806 399 Dilution effect of stock awards at end of period 5 3 3 3 Weighted-average shares - Diluted 808 403 809 402 Earnings per share: Basic $ 1.53 $ 0.08 $ 2.28 $ 0.39 Diluted $ 1.52 $ 0.08 $ 2.27 $ 0.39
Calculation of weighted-average shares excluded from diluted EPS due to the anti-dilutive effect	The following is a calculation of weighted-average shares excluded from diluted EPS due to anti-dilutive effect: Three Months Ended Six Months Ended (In millions) 2022 2021 2022 2021 Weighted-average stock awards excluded from diluted EPS due to the anti-dilutive effect calculated using the treasury stock method — — 1 1

Restructuring Costs (Tables)

Restructuring Costs (Tables)	6 Months Ended
	Jun. 30, 2022
Restructuring and Related Activities [Abstract]
Restructuring and related costs	The following table summarizes the Company’s restructuring liabilities: (In millions) Six Months Ended June 30, 2022 Balance at beginning of period $ 43 Additions to merger-related restructuring costs 33 Payments of merger-related restructuring costs (7) Balance at end of period $ 69

Additional Balance Sheet Info_2

Additional Balance Sheet Information (Tables)	6 Months Ended
	Jun. 30, 2022
Balance Sheet Related Disclosures [Abstract]
Additional balance sheet information	Certain balance sheet amounts are comprised of the following: (In millions) June 30, December 31, Accounts receivable, net Trade accounts $ 1,413 $ 922 Joint interest accounts 93 83 Other accounts 22 34 1,528 1,039 Allowance for credit losses (3) (2) $ 1,525 $ 1,037 Other assets Deferred compensation plan $ 41 $ 47 Debt issuance costs 4 5 Operating lease right-of-use assets 295 317 Derivative instruments 16 — Other accounts 52 20 $ 408 $ 389 Accounts payable Trade accounts $ 62 $ 94 Royalty and other owners 511 315 Accrued transportation 92 96 Accrued capital costs 167 88 Taxes other than income 78 60 Accrued lease operating costs 31 29 Other accounts 103 65 $ 1,044 $ 747 Accrued liabilities Employee benefits $ 78 $ 124 Taxes other than income 21 13 Operating lease liabilities 73 69 Financing lease liabilities 6 14 Other accounts 28 40 $ 206 $ 260 Other liabilities Deferred compensation plan $ 54 $ 56 Postretirement benefits 28 33 Operating lease liabilities 222 248 Financing lease liabilities 14 7 Other accounts 108 63 $ 426 $ 407

Acquisitions - Pro Forma (Detai

Acquisitions - Pro Forma (Details) - Cimarex $ / shares in Units, $ in Millions	6 Months Ended
	Jun. 30, 2021 USD ($) $ / shares
Business Acquisition [Line Items]
Pro forma revenue | $	$ 1,802
Pro forma net income | $	$ 71
Pro forma basic earnings per share (in dollars per share) | $ / shares	$ 0.09
Pro forma diluted earnings per share (in dollars per share) | $ / shares	$ 0.09

Properties and Equipment, Net_2

Properties and Equipment, Net (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Finance lease right-of-use asset	$ 24	$ 20
Property, plant and equipment	21,985	21,211
Accumulated depreciation, depletion and amortization	(4,578)	(3,836)
Properties and equipment, net	$ 17,407	17,375
Costs capitalized period	1 year
Proved oil and gas properties
Property, Plant and Equipment [Line Items]
Properties and equipment, gross	$ 16,102	15,340
Unproved oil and gas properties
Property, Plant and Equipment [Line Items]
Properties and equipment, gross	5,292	5,316
Gathering and pipeline systems
Property, Plant and Equipment [Line Items]
Properties and equipment, gross	423	395
Land, buildings and other equipment
Property, Plant and Equipment [Line Items]
Properties and equipment, gross	$ 144	$ 140

Debt and Credit Agreements - Sc

Debt and Credit Agreements - Schedule of Debt (Details) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Net premium (discount)	$ 164,000,000	$ 185,000,000
Unamortized debt issuance costs	(8,000,000)	(9,000,000)
Long-term debt	3,105,000,000	3,125,000,000
Current portion of long-term debt	$ 124,000,000	0
6.51% weighted-average private placement senior notes
Debt Instrument [Line Items]
Weighted average interest rate	6.51%
Total debt	$ 37,000,000	37,000,000
Current portion of long-term debt	$ 37,000,000
5.58% weighted-average senior notes
Debt Instrument [Line Items]
Weighted average interest rate	5.58%
Total debt	$ 87,000,000	87,000,000
Current portion of long-term debt	$ 87,000,000
3.65% weighted-average private placement senior notes
Debt Instrument [Line Items]
Weighted average interest rate	3.65%
Total debt	$ 825,000,000	825,000,000
4.375% senior notes due June 1, 2024
Debt Instrument [Line Items]
Stated percentage	4.375%
Total debt	$ 750,000,000	750,000,000
3.90% senior notes due May 15, 2027
Debt Instrument [Line Items]
Stated percentage	3.90%
Total debt	$ 750,000,000	750,000,000
4.375% senior notes due March 15, 2029
Debt Instrument [Line Items]
Stated percentage	4.375%
Total debt	$ 500,000,000	500,000,000
Revolving credit facility
Debt Instrument [Line Items]
Total debt	$ 0	$ 0

Debt and Credit Agreements - Na

Debt and Credit Agreements - Narrative (Details) - USD ($)	1 Months Ended
	Aug. 31, 2022	Jun. 30, 2022	Dec. 31, 2021
6.51% weighted-average private placement senior notes
Debt Instrument [Line Items]
Weighted average interest rate		6.51%
Long-term debt		$ 37,000,000	$ 37,000,000
6.51% weighted-average private placement senior notes | Subsequent event
Debt Instrument [Line Items]
Repurchased principal amount	$ 37,000,000
Weighted average interest rate	6.51%
Payment for repurchase of debt	$ 38,000,000
5.58% weighted-average senior notes
Debt Instrument [Line Items]
Weighted average interest rate		5.58%
Long-term debt		$ 87,000,000	87,000,000
5.58% weighted-average senior notes | Subsequent event
Debt Instrument [Line Items]
Repurchased principal amount	$ 87,000,000
Weighted average interest rate	5.58%
Payment for repurchase of debt	$ 92,000,000
Revolving credit facility
Debt Instrument [Line Items]
Long-term debt		0	$ 0
Revolving credit facility
Debt Instrument [Line Items]
Remaining borrowing capacity		$ 1,500,000,000

Derivative Instruments - Outsta

Derivative Instruments - Outstanding Commodity Derivatives (Details) - Forecast	3 Months Ended
	Dec. 31, 2023 MMBTU $ / MMBTU	Sep. 30, 2023 MMBTU $ / MMBTU	Jun. 30, 2023 MMBTU MBoe $ / MBbls $ / MMBTU	Mar. 31, 2023 MBoe MMBTU $ / MMBTU $ / MBbls	Dec. 31, 2022 MMBTU MBoe $ / MBbls $ / MMBTU	Sep. 30, 2022 MBoe MMBTU $ / MMBTU $ / MBbls
Waha swaps
Derivative [Line Items]
Notional amount, energy | MMBTU	0	0	0	0	1,550,000	4,600,000
Floor, weighted-average (in dollars per Mmbtu/Bbl)	0	0	0	0	4.77	4.77
NYMEX collars
Derivative [Line Items]
Notional amount, energy | MMBTU	1,550,000	4,600,000	4,550,000	31,500,000	57,670,000	60,720,000
Floor, weighted-average (in dollars per Mmbtu/Bbl)	4.50	4.50	4.50	4.46	4.15	4.07
Ceiling, weighted-average (in dollars per Mmbtu/Bbl)	8.39	8.39	8.39	8.37	6.58	5.64
El Paso Permian gas collars
Derivative [Line Items]
Notional amount, energy | MMBTU	0	0	0	0	1,840,000	1,840,000
Floor, weighted-average (in dollars per Mmbtu/Bbl)	0	0	0	0	2.50	2.50
Ceiling, weighted-average (in dollars per Mmbtu/Bbl)	0	0	0	0	3.15	3.15
PEPL gas collars
Derivative [Line Items]
Notional amount, energy | MMBTU	0	0	0	0	1,840,000	1,840,000
Floor, weighted-average (in dollars per Mmbtu/Bbl)	0	0	0	0	2.60	2.60
Ceiling, weighted-average (in dollars per Mmbtu/Bbl)	0	0	0	0	3.27	3.27
Waha gas collars
Derivative [Line Items]
Notional amount, energy | MMBTU	8,280,000	8,280,000	8,190,000	8,100,000	1,840,000	2,760,000
Floor, weighted-average (in dollars per Mmbtu/Bbl)	3.03	3.03	3.03	3.03	2.50	2.47
Ceiling, weighted-average (in dollars per Mmbtu/Bbl)	5.39	5.39	5.39	5.39	3.12	3
Leidy basis swaps
Derivative [Line Items]
Notional amount, energy | MMBTU	0	0	0	0	1,550,000	4,600,000
Floor, weighted-average (in dollars per Mmbtu/Bbl)	0	0	0	0	(1.50)	(1.50)
WTI oil collars
Derivative [Line Items]
Notional amount, energy | MBoe			1,365	1,350	2,116	2,116
Floor, weighted-average (in dollars per Mmbtu/Bbl) | $ / MBbls			70	70	67.65	56.78
Ceiling, weighted-average (in dollars per Mmbtu/Bbl) | $ / MBbls			116.03	116.03	112.50	72.81
WTI oil basis swaps
Derivative [Line Items]
Notional amount, energy | MBoe			1,365	1,350	2,116	1,840
Differential price weighted average (in dollars per Mmbtu/Bbl) | $ / MBbls			0.63	0.63	0.46	0.34
WTI oil roll differential swaps
Derivative [Line Items]
Notional amount, energy | MBoe			0	0	0	644
Floor, weighted-average (in dollars per Mmbtu/Bbl) | $ / MBbls			0	0	0	0.10

Derivative Instruments - Effect

Derivative Instruments - Effect of Derivative Instruments on the Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Effect of derivative instruments on the Consolidated Balance Sheet
Derivative Assets	$ 25	$ 7
Derivatives Not Designated as Hedges | Commodity contracts
Effect of derivative instruments on the Consolidated Balance Sheet
Derivative Assets	25	7
Derivative Liabilities	170	159
Other current assets (current) | Derivatives Not Designated as Hedges | Commodity contracts
Effect of derivative instruments on the Consolidated Balance Sheet
Derivative Assets	9	7
Derivative Liabilities	0	0
Derivative instruments (current) | Derivatives Not Designated as Hedges | Commodity contracts
Effect of derivative instruments on the Consolidated Balance Sheet
Derivative Assets	0	0
Derivative Liabilities	170	159
Other assets (non-current) | Derivatives Not Designated as Hedges | Commodity contracts
Effect of derivative instruments on the Consolidated Balance Sheet
Derivative Assets	16	0
Derivative Liabilities	$ 0	$ 0

Derivative Instruments - Offset

Derivative Instruments - Offsetting of Derivative Assets and Liabilities in the Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Derivative assets
Gross amounts of recognized assets	$ 56	$ 27
Gross amounts offset in the condensed consolidated balance sheet	(31)	(20)
Net amounts of assets presented in the condensed consolidated balance sheet	25	7
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet	0	0
Net amount	25	7
Derivative liabilities
Gross amounts of recognized liabilities	201	179
Gross amounts offset in the condensed consolidated balance sheet	(31)	(20)
Net amounts of liabilities presented in the condensed consolidated balance sheet	170	159
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet	48	35
Net amount	$ 218	$ 194

Derivative Instruments - Effe_2

Derivative Instruments - Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Effect of derivative instruments on the Consolidated Balance Sheet
Total	$ (66)	$ (88)	$ (457)	$ (101)
Gas contracts
Effect of derivative instruments on the Consolidated Balance Sheet
Cash (paid) received on settlement of derivative instruments	(161)	0	(203)	3
Non-cash (loss) gain on derivative instruments	133	(88)	(49)	(104)
Oil contracts
Effect of derivative instruments on the Consolidated Balance Sheet
Cash (paid) received on settlement of derivative instruments	(132)	0	(261)	0
Non-cash (loss) gain on derivative instruments	$ 94	$ 0	$ 56	$ 0

Fair Value Measurements - Finan

Fair Value Measurements - Financial Assets and Liabilities, Recurring (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Assets
Deferred compensation plan	$ 41	$ 47
Derivative instruments	56	27
Liabilities
Deferred compensation plan	54	56
Recurring basis
Assets
Deferred compensation plan	41	47
Derivative instruments	56	27
Total assets	97	74
Liabilities
Deferred compensation plan	54	56
Derivative instruments	201	179
Total liabilities	255	235
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring basis
Assets
Deferred compensation plan	41	47
Derivative instruments	0	0
Total assets	41	47
Liabilities
Deferred compensation plan		56
Derivative instruments	0	0
Total liabilities	54	56
Significant Other Observable Inputs (Level 2) | Recurring basis
Assets
Deferred compensation plan	0	0
Derivative instruments	0	0
Total assets	0	0
Liabilities
Deferred compensation plan	0	0
Derivative instruments	0	0
Total liabilities	0	0
Significant Unobservable Inputs (Level 3) | Recurring basis
Assets
Deferred compensation plan	0	0
Derivative instruments	56	27
Total assets	56	27
Liabilities
Deferred compensation plan	0	0
Derivative instruments	201	179
Total liabilities	$ 201	$ 179

Fair Value Measurements - Recon

Fair Value Measurements - Reconciliation of Changes in Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Reconciliation of changes in the fair value of financial assets and liabilities classified as Level 3 in the fair value hierarchy
Balance at beginning of period	$ (152)	$ 24
Total gain (loss) included in earnings	(450)	(78)
Settlement (gain) loss	457	(4)
Transfers in and/or out of Level 3	0	0
Balance at end of period	(145)	(58)
Change in unrealized gains (losses) relating to assets and liabilities still held at the end of the period	$ (112)	$ (64)

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details)	6 Months Ended
	Jun. 30, 2022 impaired_asset_and_liability
Debt Instrument [Line Items]
Number of non-financial assets and liabilities impaired	0
4.375% senior notes due June 1, 2024
Debt Instrument [Line Items]
Stated percentage	4.375%
3.90% senior notes due May 15, 2027
Debt Instrument [Line Items]
Stated percentage	3.90%
4.375% senior notes due March 15, 2029
Debt Instrument [Line Items]
Stated percentage	4.375%

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value of Other Financial Instruments (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Fair value disclosures
Long-term debt	$ 3,105	$ 3,125
Current maturities	(124)	0
Long-term debt, excluding current maturities	2,981	3,125
Carrying Amount
Fair value disclosures
Long-term debt	3,105	3,125
Current maturities	(124)	0
Long-term debt, excluding current maturities	2,981	3,125
Estimated Fair Value
Fair value disclosures
Long-term debt	2,887	3,163
Current maturities	(127)	0
Long-term debt, excluding current maturities	$ 2,760	$ 3,163

Asset Retirement Obligations (D

Asset Retirement Obligations (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Asset Retirement Obligation
Balance at beginning of period	$ 263
Liabilities incurred	6
Liabilities settled	(2)
Liabilities divested	(3)
Accretion expense	5
Balance at end of period	269
Less: current asset retirement obligations	(4)
Noncurrent asset retirement obligations	$ 265	$ 259

Commitments and Contingencies (

Commitments and Contingencies (Details) - Subsequent event $ in Millions	Jul. 07, 2022 USD ($)
Other Commitments [Line Items]
Leases not yet commenced, liability	$ 145
Leases not yet commenced, ROUs	$ 155

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	$ 2,638	$ 412	$ 4,708	$ 885
Natural gas
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	1,468	412	2,579	885
Oil
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	876	0	1,575	0
NGL
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	280	0	525	0
Other
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	$ 14	$ 0	$ 29	$ 0

Revenue Recognition - Narrative

Revenue Recognition - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Contracts with customers	$ 1,400	$ 922
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01
Revenue from Contract with Customer [Abstract]
Unsatisfied performance obligations	$ 7,500
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | Minimum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unsatisfied performance obligations, expected period of satisfaction	2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | Maximum
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unsatisfied performance obligations, expected period of satisfaction	16 years

Capital Stock - Dividends Commo

Capital Stock - Dividends Common Stock (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended				6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Equity [Abstract]
Fixed (in dollars per share)	$ 0.15	$ 0.15	$ 0.11	$ 0.10	$ 0.30	$ 0.21
Variable (in dollars per share)	0.45	0.41	0	0	0.86	0
Total (in dollars per share)	$ 0.60	$ 0.56	$ 0.11	$ 0.10	$ 1.16	$ 0.21
Total Dividends Paid (In millions)	$ 484	$ 455	$ 44	$ 40	$ 939	$ 84

Capital Stock - Narrative (Deta

Capital Stock - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions		1 Months Ended		3 Months Ended				6 Months Ended	12 Months Ended
	Aug. 03, 2022	May 31, 2022	Feb. 28, 2022	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash dividends, per share (in dollars per share)			$ 0.15	$ 0.60	$ 0.56	$ 0.11	$ 0.10		$ 0.125
Stock repurchase program, authorized amount			$ 1,250
Stock repurchased during period (in shares)					8,000,000			20,000,000
Share repurchases				$ 321	$ 192			$ 513	$ 27
Treasury stock (in shares)				98,725,561				98,725,561	79,082,385
Stock repurchase program				$ 737				$ 737
Redeemable preferred stock outstanding (in shares)				6,125				6,125
Cimarex redeemable preferred stock				$ 11				$ 11	$ 50
Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued upon conversion (in shares)		809,846
Subsequent event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash dividends, per share (in dollars per share)	$ 0.15
Variable dividend payable (in dollars per share)	0.50
Dividend payable (in dollars per share)	$ 0.65
Redeemable Preferred Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Conversion of common stock (in shares)		21,900
Conversion of stock, amount		$ 39
Conversion stock, cash		$ 10

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions		1 Months Ended	3 Months Ended		6 Months Ended
	Feb. 28, 2022	Jun. 30, 2022	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Stock-based Compensation arrangements
Stock based compensation expense			$ 21	$ 4	$ 44	$ 16
Restricted Stock Units
Stock-based Compensation arrangements
Granted (in shares)		45,472
Granted (in dollars per share)		$ 35.19
Restricted Stock Units | Share-based Payment Arrangement, Employee
Stock-based Compensation arrangements
Granted (in shares)					1,494,205
Granted (in dollars per share)					$ 23.98
Service period					3 years
Restricted Stock Units | Share-based Payment Arrangement, Employee | Minimum
Stock-based Compensation arrangements
Award vesting period					3 years
Annual forfeiture rate assumption (as a percent)					0%
Restricted Stock Units | Share-based Payment Arrangement, Employee | Maximum
Stock-based Compensation arrangements
Annual forfeiture rate assumption (as a percent)					5%
Performance Share Awards
Stock-based Compensation arrangements
Annual forfeiture rate assumption (as a percent)					0%
Performance Shares Based on Market Conditions
Stock-based Compensation arrangements
Right to receive shares					100%
Right to receive an additional award in cash					100%
TSR Performance Share Awards
Stock-based Compensation arrangements
Granted (in shares)					1,161,599
Granted (in dollars per share)	$ 17.89				$ 14.04
Performance period					3 years

Stock-Based Compensation - Assu

Stock-Based Compensation - Assumptions for TSR Shares (Details) - TSR Performance Share Awards - $ / shares		6 Months Ended
	Feb. 28, 2022	Jun. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in dollars per share)	$ 17.89	$ 14.04
Stock price volatility	42.30%	46.20%
Risk-free rate of return	1.60%	2.94%

Earnings per Common Share - Sch

Earnings per Common Share - Schedule of EPS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended				6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Income (Numerator)
Net income	$ 1,229	$ 608	$ 30	$ 126	$ 1,837	$ 156
Less: dividends attributable to participating securities	(1)		0		(3)	0
Less: Cimarex redeemable preferred stock dividends	0		0		(1)	0
Net income available to common stockholders	$ 1,228		$ 30		$ 1,833	$ 156
Shares (Denominator)
Weighted-average shares - basic (in shares)	803		400		806	399
Dilution effect of stock awards at end of period (in shares)	5		3		3	3
Weighted-average shares - diluted (in shares)	808		403		809	402
Earnings per share
Basic (in dollars per share)	$ 1.53		$ 0.08		$ 2.28	$ 0.39
Diluted (in dollars per share)	$ 1.52		$ 0.08		$ 2.27	$ 0.39

Earnings per Common Share - Cal

Earnings per Common Share - Calculation of Weighted-Average Shares Excluded from Diluted EPS (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Treasury Stock Method
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares (in shares)	0	0	1	1

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022
Related Party Transactions [Abstract]
Related party transaction	$ 2	$ 5

Restructuring Costs - Narrative

Restructuring Costs - Narrative (Details) $ in Millions	6 Months Ended
	Jun. 30, 2022 USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 33
Employee Severance
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 33

Restructuring Costs - Restructu

Restructuring Costs - Restructuring Liabilities (Details) $ in Millions	6 Months Ended
	Jun. 30, 2022 USD ($)
Restructuring Reserve [Roll Forward]
Balance at beginning of period	$ 43
Additions to merger-related restructuring costs	33
Payments of merger-related restructuring costs	(7)
Balance at end of period	$ 69

Additional Balance Sheet Info_3

Additional Balance Sheet Information (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Accounts receivable, net
Trade accounts	$ 1,413	$ 922
Joint interest accounts	93	83
Other accounts	22	34
Accounts receivable, gross	1,528	1,039
Allowance for credit losses	(3)	(2)
Accounts receivable, net	1,525	1,037
Other assets
Deferred compensation plan	41	47
Debt issuance costs	4	5
Operating lease right-of-use assets	295	317
Derivative instruments	16	0
Other accounts	52	20
Other assets	408	389
Accounts payable
Trade accounts	62	94
Royalty and other owners	511	315
Accrued transportation	92	96
Accrued capital costs	167	88
Taxes other than income	78	60
Accrued lease operating costs	31	29
Other accounts	103	65
Accounts payable	1,044	747
Accrued liabilities
Employee benefits	78	124
Taxes other than income	21	13
Operating lease liabilities	73	69
Financing lease liabilities	6	14
Other accounts	28	40
Accrued liabilities	206	260
Other liabilities
Deferred compensation plan	54	56
Postretirement benefits	28	33
Operating lease liabilities	222	248
Financing lease liabilities	14	7
Other accounts	108	63
Other liabilities	$ 426	$ 407
Operating lease, right-of-use asset, statement of financial position [Extensible List]	Other assets	Other assets
Operating lease, liability, current, statement of financial position [Extensible List]	Accrued liabilities	Accrued liabilities
Finance lease, liability, current, statement of financial position [Extensible Enumeration]	Accrued liabilities	Accrued liabilities
Operating lease, liability, noncurrent, statement of financial position [Extensible List]	Other liabilities	Other liabilities
Finance lease, liability, noncurrent, statement of financial position [Extensible Enumeration]	Other liabilities	Other liabilities