Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | May 01, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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 $0.10 per share | |
Trading Symbol | CTRA | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 744,232,925 | |
Entity Central Index Key | 0000858470 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets | ||
Cash and cash equivalents | $ 1,289 | $ 956 |
Restricted cash | 9 | 9 |
Short-term investments | 250 | 0 |
Accounts receivable, net | 878 | 843 |
Income taxes receivable | 0 | 51 |
Inventories | 52 | 59 |
Derivative instruments | 62 | 85 |
Other current assets | 10 | 12 |
Total current assets | 2,550 | 2,015 |
Properties and equipment, net (Successful efforts method) | 17,959 | 17,933 |
Other assets | 444 | 467 |
Total assets | 20,953 | 20,415 |
Current liabilities | ||
Accounts payable | 788 | 803 |
Current portion of long-term debt | 575 | 575 |
Accrued liabilities | 280 | 261 |
Income taxes payable | 49 | 0 |
Interest payable | 17 | 21 |
Total current liabilities | 1,709 | 1,660 |
Long-term debt | 2,076 | 1,586 |
Deferred income taxes | 3,391 | 3,413 |
Asset retirement obligations | 283 | 280 |
Other liabilities | 397 | 429 |
Total liabilities | 7,856 | 7,368 |
Commitments and contingencies (Note 7) | ||
Cimarex redeemable preferred stock | 8 | 8 |
Stockholders’ equity | ||
Authorized — 1,800 shares of $0.10 par value in 2024 and 2023 Issued — 753 shares and 751 shares in 2024 and 2023, respectively | 75 | 75 |
Additional paid-in capital | 7,445 | 7,587 |
Retained earnings | 5,558 | 5,366 |
Accumulated other comprehensive income | 11 | 11 |
Total stockholders' equity | 13,089 | 13,039 |
Total liabilities and stockholders' equity | $ 20,953 | $ 20,415 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
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) | 745,000,000 | 751,000,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
OPERATING REVENUES | ||
Operating revenues | $ 1,433 | $ 1,639 |
Gain on derivative instruments | 0 | 138 |
Total operating revenues | 1,433 | 1,777 |
OPERATING EXPENSES | ||
Direct operations | 156 | 134 |
Gathering, processing and transportation | 250 | 236 |
Taxes other than income | 74 | 86 |
Exploration | 5 | 4 |
Depreciation, depletion and amortization | 432 | 369 |
General and administrative | 75 | 76 |
Total operating expenses | 992 | 905 |
(Loss) gain on sale of assets | (1) | 5 |
INCOME FROM OPERATIONS | 440 | 877 |
Interest expense | 19 | 17 |
Interest income | (16) | (12) |
Income before income taxes | 437 | 872 |
Income tax expense | 85 | 195 |
NET INCOME | $ 352 | $ 677 |
Earnings per share | ||
Basic (in dollars per share) | $ 0.47 | $ 0.88 |
Diluted (in dollars per share) | $ 0.47 | $ 0.88 |
Weighted-average common shares outstanding | ||
Basic (in shares) | 750 | 764 |
Diluted (in shares) | 755 | 768 |
Natural gas | ||
OPERATING REVENUES | ||
Operating revenues | $ 538 | $ 822 |
Oil | ||
OPERATING REVENUES | ||
Operating revenues | 701 | 615 |
NGL | ||
OPERATING REVENUES | ||
Operating revenues | 173 | 177 |
Other | ||
OPERATING REVENUES | ||
Operating revenues | $ 21 | $ 25 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 352 | $ 677 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation, depletion and amortization | 432 | 369 |
Deferred income tax expense | (22) | 23 |
Loss (gain) on sale of assets | 1 | (5) |
Gain on derivative instruments | 0 | (138) |
Net cash received in settlement of derivative instruments | 26 | 100 |
Amortization of debt premium, discount and debt issuance costs | (4) | (4) |
Stock-based compensation and other | 12 | 17 |
Changes in assets and liabilities: | ||
Accounts receivable, net | (35) | 446 |
Income taxes | 100 | 170 |
Inventories | 7 | 7 |
Other current assets | 2 | 1 |
Accounts payable and accrued liabilities | (4) | (198) |
Interest payable | (4) | (6) |
Other assets and liabilities | (7) | 35 |
Net cash provided by operating activities | 856 | 1,494 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Capital expenditures for drilling, completion and other fixed asset additions | (457) | (483) |
Capital expenditures for leasehold and property acquisitions | (1) | (1) |
Purchases of short-term investments | (250) | 0 |
Proceeds from sale of assets | 0 | 5 |
Net cash used in investing activities | (708) | (479) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from issuance of debt | 499 | 0 |
Repayments of finance leases | (1) | (2) |
Common stock repurchases | (150) | (268) |
Dividends paid | (158) | (436) |
Cash paid for conversion of redeemable preferred stock | 0 | (1) |
Tax withholding on vesting of stock awards | 0 | (1) |
Capitalized debt issuance costs | (5) | (7) |
Net cash provided by (used in) financing activities | 185 | (715) |
Net increase in cash, cash equivalents and restricted cash | 333 | 300 |
Cash, cash equivalents and restricted cash, beginning of period | 965 | 683 |
Cash, cash equivalents and restricted cash, end of period | $ 1,298 | $ 983 |
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, 2022 | 768 | |||||
Beginning balance (in shares) at Dec. 31, 2022 | 0 | |||||
Balance at beginning of period at Dec. 31, 2022 | $ 12,659 | $ 77 | $ 0 | $ 7,933 | $ 13 | $ 4,636 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 677 | 677 | ||||
Stock amortization and vesting | 13 | 13 | ||||
Conversion of Cimarex redeemable preferred stock | 3 | 3 | ||||
Common stock repurchases (in shares) | 11 | |||||
Common stock repurchases | (271) | $ (271) | ||||
Common stock retirements (in shares) | (11) | (11) | ||||
Common stock retirements | 0 | $ (1) | $ (271) | (270) | ||
Common stock cash dividends | (438) | (438) | ||||
Ending balance (in shares) at Mar. 31, 2023 | 757 | |||||
Ending balance (in shares) at Mar. 31, 2023 | 0 | |||||
Balance at end of period at Mar. 31, 2023 | 12,643 | $ 76 | $ 0 | 7,679 | 13 | 4,875 |
Beginning balance (in shares) at Dec. 31, 2023 | 751 | |||||
Beginning balance (in shares) at Dec. 31, 2023 | 0 | |||||
Balance at beginning of period at Dec. 31, 2023 | 13,039 | $ 75 | $ 0 | 7,587 | 11 | 5,366 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 352 | |||||
Stock amortization and vesting | 15 | 15 | ||||
Common stock repurchases (in shares) | 6 | |||||
Common stock repurchases | (157) | $ (157) | ||||
Common stock retirements (in shares) | (6) | (6) | ||||
Common stock retirements | 0 | $ 0 | $ (157) | (157) | ||
Common stock cash dividends | (160) | (160) | ||||
Ending balance (in shares) at Mar. 31, 2024 | 745 | |||||
Ending balance (in shares) at Mar. 31, 2024 | 0 | |||||
Balance at end of period at Mar. 31, 2024 | $ 13,089 | $ 75 | $ 0 | $ 7,445 | $ 11 | $ 5,558 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 1 Months Ended | 3 Months Ended | |||
Feb. 29, 2024 | Feb. 28, 2023 | Oct. 31, 2021 | Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | |||||
Cash dividends, per share (in dollars per share) | $ 0.21 | $ 0.20 | $ 0.15 | $ 0.21 | $ 0.57 |
Financial Statement Presentatio
Financial Statement Presentation | 3 Months Ended |
Mar. 31, 2024 | |
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, 2023 (the “Form 10-K”) filed with the SEC, except for any new accounting pronouncements adopted during the period. The interim condensed consolidated financial statements are unaudited and 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. From time to time, we make certain reclassifications 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. Significant Accounting Policies Short-term Investments |
Properties and Equipment, Net
Properties and Equipment, Net | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Properties and Equipment, Net | Properties and Equipment, Net Properties and equipment, net are comprised of the following: (In millions) March 31, December 31, Proved oil and gas properties $ 20,136 $ 19,582 Unproved oil and gas properties 4,486 4,617 Gathering and pipeline systems 552 527 Land, buildings and other equipment 223 216 Finance lease right-of-use asset 26 25 25,423 24,967 Accumulated DD&A (7,464) (7,034) $ 17,959 $ 17,933 Capitalized Exploratory Well Costs As of and for the three months ended March 31, 2024, 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 | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt and Credit Agreements | Debt and Credit Agreements The following table includes a summary of the Company’s long-term debt. (In millions) March 31, December 31, 3.65% weighted-average private placement senior notes (1) $ 825 $ 825 3.90% senior notes due May 15, 2027 750 750 4.375% senior notes due March 15, 2029 500 500 5.60% senior notes due March 15, 2034 500 — Revolving credit agreement — — Total 2,575 2,075 Unamortized debt premium 85 90 Unamortized debt discount (1) — Unamortized debt issuance costs (8) (4) Total debt 2,651 2,161 Less: current portion of long-term debt 575 575 Long-term debt $ 2,076 $ 1,586 _______________________________________________________________________________ (1) The 3.65% weighted-average senior notes have bullet maturities of $575 million and $250 million due in September 2024 and 2026, respectively. As of March 31, 2024, the Company was in compliance with all financial covenants for its revolving credit agreement and its 3.65% weighted-average private placement senior notes (the “private placement senior notes”). As of March 31, 2024, the Company had no borrowings outstanding under its revolving credit agreement and unused commitments of $1.5 billion. 5.60% Senior Notes due March 15, 2034 On March 13, 2024, the Company issued $500 million aggregate principal amount of 5.60% senior notes due 2034 (the “2034 senior notes”). The 2034 senior notes will mature on March 15, 2034, and interest on such notes is payable semi-annually. The 2034 senior notes are general, unsecured obligations of the Company. Under the terms of the indenture governing the 2034 senior notes, the Company may redeem all or any portion of the 2034 senior notes on any date at a price equal to the principal amount thereof, plus applicable redemption prices described in the governing indenture. The Company is also subject to various covenants and events of default customarily found in such debt instruments. The 2034 senior notes were issued at a discount of $1 million, and the Company incurred approximately $5 million of debt issuance costs that were capitalized and will be amortized over the term of such notes. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments As of March 31, 2024, the Company had the following outstanding financial commodity derivatives: 2024 2025 Natural Gas Second Quarter Third Quarter Fourth Quarter First Quarter Second Quarter Third Quarter Fourth Quarter NYMEX collars Volume (MMBtu) 44,590,000 45,080,000 16,690,000 9,000,000 9,100,000 9,200,000 9,200,000 Weighted average floor ($/MMBtu) $ 2.70 $ 2.75 $ 2.75 $ 3.25 $ 3.25 $ 3.25 $ 3.25 Weighted average ceiling ($/MMBtu) $ 3.87 $ 3.94 $ 4.23 $ 4.79 $ 4.79 $ 4.79 $ 4.79 2024 Oil Second Quarter Third Quarter Fourth Quarter WTI oil collars Volume (MBbl) 3,185 2,760 2,760 Weighted average floor ($/Bbl) $ 67.57 $ 65.00 $ 65.00 Weighted average ceiling ($/Bbl) $ 90.47 $ 87.17 $ 87.17 WTI Midland oil basis swaps Volume (MBbl) 3,185 2,760 2,760 Weighted average differential ($/Bbl) $ 1.15 $ 1.14 $ 1.14 In April 2024, the Company entered into the following financial commodity derivatives: 2024 2025 Oil Third Quarter Fourth Quarter First Quarter Second Quarter WTI oil collars Volume (MBbl) 460 460 900 910 Weighted average floor ($/Bbl) $ 65.00 $ 65.00 $ 65.00 $ 65.00 Weighted average ceiling ($/Bbl) $ 86.02 $ 86.02 $ 84.21 $ 84.21 Effect of Derivative Instruments on the Condensed Consolidated Balance Sheet Fair Values of Derivative Instruments Derivative Assets Derivative Liabilities (In millions) Balance Sheet Location March 31, December 31, March 31, December 31, Commodity contracts Derivative instruments (current) $ 62 $ 85 $ — $ — Commodity contracts Accrued liabilities (current) — — 2 — Commodity contracts Other assets (non-current) 6 7 — — $ 68 $ 92 $ 2 $ — Offsetting of Derivative Assets and Liabilities in the Condensed Consolidated Balance Sheet (In millions) March 31, December 31, Derivative assets Gross amounts of recognized assets $ 74 $ 93 Gross amounts offset in the condensed consolidated balance sheet (6) (1) Net amounts of assets presented in the condensed consolidated balance sheet 68 92 Gross amounts of financial instruments not offset in the condensed consolidated balance sheet — 1 Net amount $ 68 $ 93 Derivative liabilities Gross amounts of recognized liabilities $ 8 $ 1 Gross amounts offset in the condensed consolidated balance sheet (6) (1) Net amounts of liabilities presented in the condensed consolidated balance sheet 2 — Gross amounts of financial instruments not offset in the condensed consolidated balance sheet — — Net amount $ 2 $ — Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations Three Months Ended (In millions) 2024 2023 Cash received (paid) on settlement of derivative instruments Gas contracts $ 27 $ 99 Oil contracts (1) 1 Non-cash gain (loss) on derivative instruments Gas contracts 7 42 Oil contracts (33) (4) $ — $ 138 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
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 $ 35 $ — $ — $ 35 Derivative instruments — — 74 74 $ 35 $ — $ 74 $ 109 Liabilities Deferred compensation plan $ 35 $ — $ — $ 35 Derivative instruments — — 8 8 $ 35 $ — $ 8 $ 43 (In millions) Quoted Prices in Significant Other Significant Balance at Assets Deferred compensation plan $ 33 $ — $ — $ 33 Derivative instruments — — 93 93 $ 33 $ — $ 93 $ 126 Liabilities Deferred compensation plan $ 33 $ — $ — $ 33 Derivative instruments — — 1 1 $ 33 $ — $ 1 $ 34 The Company’s investments associated with its deferred compensation plans consist of mutual funds 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, are compared to multiple quotes obtained from counterparties, or a combination of the foregoing. 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 contracts while non-performance risk of the Company is evaluated using credit default swap spreads for various similarly rated companies in the same sector as the Company. 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: Three Months Ended (In millions) 2024 2023 Balance at beginning of period $ 92 $ 146 Total gain (loss) included in earnings — 138 Settlement (gain) loss (26) (100) Transfers in and/or out of Level 3 — — Balance at end of period $ 66 $ 184 Change in unrealized gains (losses) relating to assets and liabilities still held at the end of the period $ (1) $ 95 Non-Financial Assets and Liabilities The Company discloses or recognizes its non-financial assets and liabilities, such as impairments of oil and gas properties 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 March 31, 2024, 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 considers 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. The carrying amounts reported in the Condensed Consolidated Balance Sheet for short-term investments approximate fair value, due to market yields being unchanged from stated yields. 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 3.90% senior notes due May 15, 2027, 4.375% senior notes due March 15, 2029 and 2034 senior notes is based on quoted market prices, which is classified as Level 1 in the fair value hierarchy. The fair value of the Company’s private placement senior notes is based on third-party quotes, which are derived from credit spreads for the difference between the issue rate and the period end market rate and other unobservable inputs. The Company’s private placement senior notes are valued using a market approach and are classified as Level 3 in the fair value hierarchy. The carrying amount and estimated fair value of debt are as follows: March 31, 2024 December 31, 2023 (In millions) Carrying Estimated Fair Carrying Estimated Fair Total debt $ 2,651 $ 2,508 $ 2,161 $ 2,015 Current maturities (575) (568) (575) (565) Long-term debt, excluding current maturities $ 2,076 $ 1,940 $ 1,586 $ 1,450 |
Asset Retirement Obligations
Asset Retirement Obligations | 3 Months Ended |
Mar. 31, 2024 | |
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) Three Months Ended Balance at beginning of period $ 289 Liabilities incurred 2 Accretion expense 3 Balance at end of period 294 Less: current asset retirement obligations (11) Noncurrent asset retirement obligations $ 283 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
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 “Gathering, Processing and Transportation Agreements” and “Lease Commitments” as disclosed in Note 8 of the Notes to Consolidated Financial Statements in the Form 10-K. Legal Matters 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 then-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 suit was later transferred to the United States District Court for the Southern District of Texas. The plaintiffs later amended the complaint to add claims against Phillip L. Stalnaker, the Company’s then-Senior Vice President of Operations, but the claims against Mr. Stalnaker were later dismissed. The current amended complaint was filed on January 9, 2024, and alleges that the Company and the individual defendants made material misstatements and omissions regarding the Company’s 2019 production growth guidance and the status of certain environmental matters in Pennsylvania, including alleged violations of the Pennsylvania Clean Streams Law and the remediation status of certain gas wells. The plaintiffs allege claims under Section 10(b) and Section 20 of the Exchange Act and seek monetary damages, interest, and attorney’s fees. The court has certified a class consisting of persons and entities who purchased the Company’s common stock between February 22, 2016, and June 12, 2020, inclusive. On April 29, 2024, the Company and plaintiffs reached a settlement in principle, with nearly all of the settlement amount to be paid by the Company’s insurance carriers. This settlement is subject to finalization and court approval. 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 Messrs. Dinges and Schroeder and the Board of Directors of the Company serving at that time. Several additional derivative complaints were also filed and have been consolidated with the Ezell suit, which was later transferred to the U.S. District Court for the Southern District of Texas. The most recent consolidated amended derivative complaint asserted claims for alleged securities violations under Section 10(b) and Section 21D of the Exchange Act arising from some of the same alleged misleading statements that form the basis of the class action lawsuit described above, as well as claims based on alleged breaches of fiduciary duty and statutory contribution theories. On January 2, 2024, the Court issued an order and final judgment granting the Company’s and defendants’ motion to dismiss and dismissing the consolidated derivative case in its entirety with prejudice. The derivative plaintiffs filed a notice of appeal regarding the final judgment on February 1, 2024. The Company intends to vigorously defend any further proceedings in the derivative lawsuit. Additionally, on March 21, 2024, one of the plaintiffs in the consolidated derivative action served a demand letter on the Company’s Board of Directors. The letter requested that the Board of Directors pursue legal claims against various current and former officers and directors of the Company based on similar factual allegations as contained in the securities class action and consolidated shareholder derivative action described above. The Board of Directors has taken the demand under advisement and reserves all rights available under applicable law. 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 and the potential loss is estimable. 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 amounts accrued would not be material to the Condensed Consolidated Financial Statements. Future changes in facts and circumstances not currently known or foreseeable could result in the actual liability exceeding the estimated ranges of loss and amounts accrued. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2024 | |
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 (In millions) 2024 2023 Natural gas $ 538 $ 822 Oil 701 615 NGL 173 177 Other 21 25 $ 1,433 $ 1,639 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 U.S. Transaction Price Allocated to Remaining Performance Obligations As of March 31, 2024, the Company had $6.5 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 the next 15 years. Contract Balances Receivables from contracts with customers are recorded when the right to consideration becomes unconditional, generally when control of the product has been transferred to the customer. Receivables from contracts with customers were $656 million and $723 million as of March 31, 2024 and December 31, 2023, respectively, and are reported in accounts receivable, net in the Condensed Consolidated Balance Sheet. As of March 31, 2024, |
Capital Stock
Capital Stock | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Capital Stock | Capital Stock Dividends Common Stock In February 2023, the Company’s Board of Directors approved an increase in the base quarterly dividend from $0.15 per share to $0.20 per share. In February 2024, the Company’s Board of Directors approved an increase in the base quarterly dividend from $0.20 per share to $0.21 per share. The following table summarizes the Company’s dividends on its common stock: Rate per share Fixed Variable Total Total Dividends 2024 First quarter $ 0.21 $ — $ 0.21 $ 160 2023 First quarter $ 0.20 $ 0.37 $ 0.57 $ 438 Treasury Stock |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation General Stock-based compensation expense of awards issued under the Company’s incentive plans, and the income tax benefit of awards vested and exercised, are as follows: Three Months Ended (In millions) 2024 2023 Restricted stock units - employees and non-employee directors $ 9 $ 7 Restricted stock awards 1 4 Performance share awards 3 5 Total stock-based compensation expense $ 13 $ 16 Income tax benefit $ — $ 1 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 three months ended March 31, 2024, the Company granted 574,697 restricted stock units to employees of the Company with a weighted average grant date value of $26.16 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 at the end of a three-year service period. The Company assumed a zero percent annual forfeiture rate for purposes of recognizing stock-based compensation expense for awards granted in the first quarter of 2024, based on the Company’s actual forfeiture history and expectations for this type of award. Performance Share Awards Total Shareholder Return (“TSR”) Performance Share Awards . During the three months ended March 31, 2024, the Company granted 541,865 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, which commenced on February 1, 2024 and ends on January 31, 2027. 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. These awards also 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 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. The Company assumed a zero percent annual forfeiture rate for purposes of recognizing stock-based compensation expense for these awards, based on the Company’s actual forfeiture history and expectations for this type of award. The following assumptions were used to determine the grant date fair value of the equity component and the period-end fair value of the liability component of the TSR Performance Share Awards: Grant Date February 21, 2024 March 31, 2024 Fair value per performance share award $ 19.38 $5.24 - $10.61 Assumptions: Stock price volatility 38.0 % 23.7% - 37.9% Risk-free rate of return 4.39 % 4.38% - 5.08% |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share Basic earnings per share (“EPS”) is computed by dividing net income available to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Diluted EPS is similarly calculated, except that the shares of common stock outstanding for the period is increased using the treasury stock and as-if converted methods to reflect the potential dilution that could occur if outstanding stock awards were vested or exercised 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 net earnings per share under the two-class method: Three Months Ended (In millions, except per share amounts) 2024 2023 Income (Numerator) Net income $ 352 $ 677 Less: dividends attributable to participating securities — (2) Net income available to common stockholders $ 352 $ 675 Shares (Denominator) Weighted average shares - Basic 750 764 Dilution effect of stock awards at end of period 5 4 Weighted average shares - Diluted 755 768 Earnings per share Basic $ 0.47 $ 0.88 Diluted $ 0.47 $ 0.88 The following is a calculation of weighted-average shares excluded from diluted EPS due to the anti-dilutive effect: Three Months Ended (In millions) 2024 2023 Weighted-average stock awards excluded from diluted EPS due to the anti-dilutive effect calculated using the treasury stock method — — |
Restructuring Costs
Restructuring Costs | 3 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Restructuring Costs Restructuring costs are primarily related to workforce reductions and associated severance benefits that were triggered by the merger with Cimarex Energy Co. that closed on October 1, 2021. The following table summarizes the Company’s restructuring liabilities: Three Months Ended (In millions) 2024 2023 Balance at beginning of period $ 47 $ 77 Additions related to merger integration — 7 Reductions related to severance payments (11) (7) Balance at end of period $ 36 $ 77 |
Additional Balance Sheet Inform
Additional Balance Sheet Information | 3 Months Ended |
Mar. 31, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
Additional Balance Sheet Information | Additional Balance Sheet Information Certain balance sheet amounts are comprised of the following: (In millions) March 31, December 31, Accounts receivable, net Trade accounts $ 656 $ 723 Joint interest accounts 181 118 Other accounts 44 4 881 845 Allowance for credit losses (3) (2) $ 878 $ 843 Other assets Deferred compensation plan $ 35 $ 33 Debt issuance costs 7 8 Operating lease right-of-use assets 312 337 Derivative instruments 6 7 Other accounts 84 82 $ 444 $ 467 Accounts payable Trade accounts $ 64 $ 60 Royalty and other owners 378 386 Accrued gathering, processing and transportation 69 80 Accrued capital costs 158 165 Taxes other than income 39 33 Accrued lease operating costs 41 39 Other accounts 39 40 $ 788 $ 803 Accrued liabilities Employee benefits $ 39 $ 70 Taxes other than income 23 14 Restructuring liability 30 35 Derivative instruments 2 — Operating lease liabilities 116 116 Financing lease liabilities 7 6 Other accounts 63 20 $ 280 $ 261 Other liabilities Deferred compensation plan $ 35 $ 33 Postretirement benefits 17 17 Operating lease liabilities 209 237 Financing lease liabilities 5 6 Restructuring liability 6 12 Other accounts 125 124 $ 397 $ 429 |
Interest Expense
Interest Expense | 3 Months Ended |
Mar. 31, 2024 | |
Interest Income (Expense), Net [Abstract] | |
Interest Expense | Interest Expense Interest expense is comprised of the following: Three Months Ended (In millions) 2024 2023 Interest Expense Interest expense $ 22 $ 20 Debt premium and discount amortization, net (5) (5) Debt issuance cost amortization 1 1 Other 1 1 $ 19 $ 17 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net income | $ 352 | $ 677 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Financial Statement Presentat_2
Financial Statement Presentation (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2023 (the “Form 10-K”) filed with the SEC, except for any new accounting pronouncements adopted during the period. The interim condensed consolidated financial statements are unaudited and 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 | From time to time, we make certain reclassifications 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. |
Short-term Investments | Short-term Investments |
Properties and Equipment, Net (
Properties and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Properties and Equipment, Net | Properties and equipment, net are comprised of the following: (In millions) March 31, December 31, Proved oil and gas properties $ 20,136 $ 19,582 Unproved oil and gas properties 4,486 4,617 Gathering and pipeline systems 552 527 Land, buildings and other equipment 223 216 Finance lease right-of-use asset 26 25 25,423 24,967 Accumulated DD&A (7,464) (7,034) $ 17,959 $ 17,933 |
Debt and Credit Agreements (Tab
Debt and Credit Agreements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Senior Notes and Credit Agreement Components | The following table includes a summary of the Company’s long-term debt. (In millions) March 31, December 31, 3.65% weighted-average private placement senior notes (1) $ 825 $ 825 3.90% senior notes due May 15, 2027 750 750 4.375% senior notes due March 15, 2029 500 500 5.60% senior notes due March 15, 2034 500 — Revolving credit agreement — — Total 2,575 2,075 Unamortized debt premium 85 90 Unamortized debt discount (1) — Unamortized debt issuance costs (8) (4) Total debt 2,651 2,161 Less: current portion of long-term debt 575 575 Long-term debt $ 2,076 $ 1,586 _______________________________________________________________________________ (1) The 3.65% weighted-average senior notes have bullet maturities of $575 million and $250 million due in September 2024 and 2026, respectively. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Outstanding Commodity Derivatives | As of March 31, 2024, the Company had the following outstanding financial commodity derivatives: 2024 2025 Natural Gas Second Quarter Third Quarter Fourth Quarter First Quarter Second Quarter Third Quarter Fourth Quarter NYMEX collars Volume (MMBtu) 44,590,000 45,080,000 16,690,000 9,000,000 9,100,000 9,200,000 9,200,000 Weighted average floor ($/MMBtu) $ 2.70 $ 2.75 $ 2.75 $ 3.25 $ 3.25 $ 3.25 $ 3.25 Weighted average ceiling ($/MMBtu) $ 3.87 $ 3.94 $ 4.23 $ 4.79 $ 4.79 $ 4.79 $ 4.79 2024 Oil Second Quarter Third Quarter Fourth Quarter WTI oil collars Volume (MBbl) 3,185 2,760 2,760 Weighted average floor ($/Bbl) $ 67.57 $ 65.00 $ 65.00 Weighted average ceiling ($/Bbl) $ 90.47 $ 87.17 $ 87.17 WTI Midland oil basis swaps Volume (MBbl) 3,185 2,760 2,760 Weighted average differential ($/Bbl) $ 1.15 $ 1.14 $ 1.14 In April 2024, the Company entered into the following financial commodity derivatives: 2024 2025 Oil Third Quarter Fourth Quarter First Quarter Second Quarter WTI oil collars Volume (MBbl) 460 460 900 910 Weighted average floor ($/Bbl) $ 65.00 $ 65.00 $ 65.00 $ 65.00 Weighted average ceiling ($/Bbl) $ 86.02 $ 86.02 $ 84.21 $ 84.21 |
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 March 31, December 31, March 31, December 31, Commodity contracts Derivative instruments (current) $ 62 $ 85 $ — $ — Commodity contracts Accrued liabilities (current) — — 2 — Commodity contracts Other assets (non-current) 6 7 — — $ 68 $ 92 $ 2 $ — |
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) March 31, December 31, Derivative assets Gross amounts of recognized assets $ 74 $ 93 Gross amounts offset in the condensed consolidated balance sheet (6) (1) Net amounts of assets presented in the condensed consolidated balance sheet 68 92 Gross amounts of financial instruments not offset in the condensed consolidated balance sheet — 1 Net amount $ 68 $ 93 Derivative liabilities Gross amounts of recognized liabilities $ 8 $ 1 Gross amounts offset in the condensed consolidated balance sheet (6) (1) Net amounts of liabilities presented in the condensed consolidated balance sheet 2 — Gross amounts of financial instruments not offset in the condensed consolidated balance sheet — — Net amount $ 2 $ — |
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) March 31, December 31, Derivative assets Gross amounts of recognized assets $ 74 $ 93 Gross amounts offset in the condensed consolidated balance sheet (6) (1) Net amounts of assets presented in the condensed consolidated balance sheet 68 92 Gross amounts of financial instruments not offset in the condensed consolidated balance sheet — 1 Net amount $ 68 $ 93 Derivative liabilities Gross amounts of recognized liabilities $ 8 $ 1 Gross amounts offset in the condensed consolidated balance sheet (6) (1) Net amounts of liabilities presented in the condensed consolidated balance sheet 2 — Gross amounts of financial instruments not offset in the condensed consolidated balance sheet — — Net amount $ 2 $ — |
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 (In millions) 2024 2023 Cash received (paid) on settlement of derivative instruments Gas contracts $ 27 $ 99 Oil contracts (1) 1 Non-cash gain (loss) on derivative instruments Gas contracts 7 42 Oil contracts (33) (4) $ — $ 138 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 $ 35 $ — $ — $ 35 Derivative instruments — — 74 74 $ 35 $ — $ 74 $ 109 Liabilities Deferred compensation plan $ 35 $ — $ — $ 35 Derivative instruments — — 8 8 $ 35 $ — $ 8 $ 43 (In millions) Quoted Prices in Significant Other Significant Balance at Assets Deferred compensation plan $ 33 $ — $ — $ 33 Derivative instruments — — 93 93 $ 33 $ — $ 93 $ 126 Liabilities Deferred compensation plan $ 33 $ — $ — $ 33 Derivative instruments — — 1 1 $ 33 $ — $ 1 $ 34 |
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: Three Months Ended (In millions) 2024 2023 Balance at beginning of period $ 92 $ 146 Total gain (loss) included in earnings — 138 Settlement (gain) loss (26) (100) Transfers in and/or out of Level 3 — — Balance at end of period $ 66 $ 184 Change in unrealized gains (losses) relating to assets and liabilities still held at the end of the period $ (1) $ 95 |
Carrying Amounts and Fair Values of Debt | The carrying amount and estimated fair value of debt are as follows: March 31, 2024 December 31, 2023 (In millions) Carrying Estimated Fair Carrying Estimated Fair Total debt $ 2,651 $ 2,508 $ 2,161 $ 2,015 Current maturities (575) (568) (575) (565) Long-term debt, excluding current maturities $ 2,076 $ 1,940 $ 1,586 $ 1,450 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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) Three Months Ended Balance at beginning of period $ 289 Liabilities incurred 2 Accretion expense 3 Balance at end of period 294 Less: current asset retirement obligations (11) Noncurrent asset retirement obligations $ 283 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents revenues from contracts with customers disaggregated by product: Three Months Ended (In millions) 2024 2023 Natural gas $ 538 $ 822 Oil 701 615 NGL 173 177 Other 21 25 $ 1,433 $ 1,639 |
Capital Stock (Tables)
Capital Stock (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Schedule of Stock by Class | The following table summarizes the Company’s dividends on its common stock: Rate per share Fixed Variable Total Total Dividends 2024 First quarter $ 0.21 $ — $ 0.21 $ 160 2023 First quarter $ 0.20 $ 0.37 $ 0.57 $ 438 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Share-Based Compensation Expense Income Tax Benefit Awards Issued Under Incentive Plans | Stock-based compensation expense of awards issued under the Company’s incentive plans, and the income tax benefit of awards vested and exercised, are as follows: Three Months Ended (In millions) 2024 2023 Restricted stock units - employees and non-employee directors $ 9 $ 7 Restricted stock awards 1 4 Performance share awards 3 5 Total stock-based compensation expense $ 13 $ 16 Income tax benefit $ — $ 1 |
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 and the period-end fair value of the liability component of the TSR Performance Share Awards: Grant Date February 21, 2024 March 31, 2024 Fair value per performance share award $ 19.38 $5.24 - $10.61 Assumptions: Stock price volatility 38.0 % 23.7% - 37.9% Risk-free rate of return 4.39 % 4.38% - 5.08% |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Weighted-Average Shares Outstanding | The following is a calculation of basic and diluted net earnings per share under the two-class method: Three Months Ended (In millions, except per share amounts) 2024 2023 Income (Numerator) Net income $ 352 $ 677 Less: dividends attributable to participating securities — (2) Net income available to common stockholders $ 352 $ 675 Shares (Denominator) Weighted average shares - Basic 750 764 Dilution effect of stock awards at end of period 5 4 Weighted average shares - Diluted 755 768 Earnings per share Basic $ 0.47 $ 0.88 Diluted $ 0.47 $ 0.88 |
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 the anti-dilutive effect: Three Months Ended (In millions) 2024 2023 Weighted-average stock awards excluded from diluted EPS due to the anti-dilutive effect calculated using the treasury stock method — — |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | The following table summarizes the Company’s restructuring liabilities: Three Months Ended (In millions) 2024 2023 Balance at beginning of period $ 47 $ 77 Additions related to merger integration — 7 Reductions related to severance payments (11) (7) Balance at end of period $ 36 $ 77 |
Additional Balance Sheet Info_2
Additional Balance Sheet Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
Additional Balance Sheet Information | Certain balance sheet amounts are comprised of the following: (In millions) March 31, December 31, Accounts receivable, net Trade accounts $ 656 $ 723 Joint interest accounts 181 118 Other accounts 44 4 881 845 Allowance for credit losses (3) (2) $ 878 $ 843 Other assets Deferred compensation plan $ 35 $ 33 Debt issuance costs 7 8 Operating lease right-of-use assets 312 337 Derivative instruments 6 7 Other accounts 84 82 $ 444 $ 467 Accounts payable Trade accounts $ 64 $ 60 Royalty and other owners 378 386 Accrued gathering, processing and transportation 69 80 Accrued capital costs 158 165 Taxes other than income 39 33 Accrued lease operating costs 41 39 Other accounts 39 40 $ 788 $ 803 Accrued liabilities Employee benefits $ 39 $ 70 Taxes other than income 23 14 Restructuring liability 30 35 Derivative instruments 2 — Operating lease liabilities 116 116 Financing lease liabilities 7 6 Other accounts 63 20 $ 280 $ 261 Other liabilities Deferred compensation plan $ 35 $ 33 Postretirement benefits 17 17 Operating lease liabilities 209 237 Financing lease liabilities 5 6 Restructuring liability 6 12 Other accounts 125 124 $ 397 $ 429 |
Interest Expense (Tables)
Interest Expense (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Interest Income (Expense), Net [Abstract] | |
Interest Expense, Net | Interest expense is comprised of the following: Three Months Ended (In millions) 2024 2023 Interest Expense Interest expense $ 22 $ 20 Debt premium and discount amortization, net (5) (5) Debt issuance cost amortization 1 1 Other 1 1 $ 19 $ 17 |
Properties and Equipment, Net_2
Properties and Equipment, Net (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Finance lease right-of-use asset | $ 26 | $ 25 |
Property, plant and equipment | 25,423 | 24,967 |
Accumulated DD&A | (7,464) | (7,034) |
Properties and equipment, net | $ 17,959 | 17,933 |
Costs capitalized period | 1 year | |
Proved oil and gas properties | ||
Property, Plant and Equipment [Line Items] | ||
Properties and equipment, gross | $ 20,136 | 19,582 |
Unproved oil and gas properties | ||
Property, Plant and Equipment [Line Items] | ||
Properties and equipment, gross | 4,486 | 4,617 |
Gathering and pipeline systems | ||
Property, Plant and Equipment [Line Items] | ||
Properties and equipment, gross | 552 | 527 |
Land, buildings and other equipment | ||
Property, Plant and Equipment [Line Items] | ||
Properties and equipment, gross | $ 223 | $ 216 |
Debt and Credit Agreements - Sc
Debt and Credit Agreements - Schedule of Debt (Details) - USD ($) | 1 Months Ended | ||||
Sep. 30, 2026 | Sep. 30, 2024 | Mar. 31, 2024 | Mar. 13, 2024 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | |||||
Total debt | $ 2,575,000,000 | $ 2,075,000,000 | |||
Unamortized debt premium | 85,000,000 | 90,000,000 | |||
Unamortized debt discount | (1,000,000) | 0 | |||
Unamortized debt issuance costs | (8,000,000) | (4,000,000) | |||
Total debt | 2,651,000,000 | 2,161,000,000 | |||
Less: current portion of long-term debt | 575,000,000 | 575,000,000 | |||
Long-term debt | $ 2,076,000,000 | 1,586,000,000 | |||
Senior Notes | 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 | |||
Senior Notes | 3.65% weighted-average private placement senior notes | Forecast | |||||
Debt Instrument [Line Items] | |||||
Amount of principal repurchased | $ 250,000,000 | $ 575,000,000 | |||
Senior Notes | 3.90% senior notes due May 15, 2027 | |||||
Debt Instrument [Line Items] | |||||
Stated percentage | 3.90% | ||||
Total debt | $ 750,000,000 | 750,000,000 | |||
Senior Notes | 4.375% senior notes due March 15, 2029 | |||||
Debt Instrument [Line Items] | |||||
Stated percentage | 4.375% | ||||
Total debt | $ 500,000,000 | 500,000,000 | |||
Senior Notes | 5.60% Senior Notes Due March 15, 2034 | |||||
Debt Instrument [Line Items] | |||||
Stated percentage | 5.60% | ||||
Total debt | $ 500,000,000 | $ 500,000,000 | 0 | ||
Unamortized debt discount | (1,000,000) | ||||
Unamortized debt issuance costs | $ (5,000,000) | ||||
Line of Credit | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 0 | $ 0 |
Debt and Credit Agreements - Na
Debt and Credit Agreements - Narrative (Details) - USD ($) | Mar. 31, 2024 | Mar. 13, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | |||
Long-term debt | $ 2,575,000,000 | $ 2,075,000,000 | |
Unamortized discount | 1,000,000 | 0 | |
Debt issuance costs | $ 8,000,000 | 4,000,000 | |
Senior Notes | 3.65% weighted-average private placement senior notes | |||
Debt Instrument [Line Items] | |||
Weighted average interest rate | 3.65% | ||
Long-term debt | $ 825,000,000 | 825,000,000 | |
Senior Notes | 5.60% Senior Notes Due March 15, 2034 | |||
Debt Instrument [Line Items] | |||
Stated percentage | 5.60% | ||
Long-term debt | $ 500,000,000 | $ 500,000,000 | 0 |
Unamortized discount | 1,000,000 | ||
Debt issuance costs | $ 5,000,000 | ||
Line of Credit | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Long-term debt | 0 | $ 0 | |
Remaining borrowing capacity | $ 1,500,000,000 |
Derivative Instruments - Outsta
Derivative Instruments - Outstanding Commodity Derivatives (Details) - Forecast | 3 Months Ended | ||||||
Dec. 31, 2025 MMBTU $ / MMBTU | Sep. 30, 2025 MMBTU $ / MMBTU | Jun. 30, 2025 MMBTU MBoe $ / MMBTU $ / MBbls | Mar. 31, 2025 MMBTU MBoe $ / MBbls $ / MMBTU | Dec. 31, 2024 MBoe MMBTU $ / MMBTU $ / MBbls | Sep. 30, 2024 MBoe MMBTU $ / MBbls $ / MMBTU | Jun. 30, 2024 MBoe MMBTU $ / MBbls $ / MMBTU | |
NYMEX collars | |||||||
Derivative [Line Items] | |||||||
Notional amount, energy | MMBTU | 9,200,000 | 9,200,000 | 9,100,000 | 9,000,000 | 16,690,000 | 45,080,000 | 44,590,000 |
Floor, weighted-average (in dollars per Mmbtu/Bbl) | $ / MMBTU | 3.25 | 3.25 | 3.25 | 3.25 | 2.75 | 2.75 | 2.70 |
Ceiling, weighted-average (in dollars per Mmbtu/Bbl) | $ / MMBTU | 4.79 | 4.79 | 4.79 | 4.79 | 4.23 | 3.94 | 3.87 |
WTI oil collars | |||||||
Derivative [Line Items] | |||||||
Notional amount, energy | MBoe | 2,760 | 2,760 | 3,185 | ||||
Floor, weighted-average (in dollars per Mmbtu/Bbl) | 65 | 65 | 67.57 | ||||
Ceiling, weighted-average (in dollars per Mmbtu/Bbl) | 87.17 | 87.17 | 90.47 | ||||
WTI Midland oil basis swaps | |||||||
Derivative [Line Items] | |||||||
Notional amount, energy | MBoe | 2,760 | 2,760 | 3,185 | ||||
Differential price weighted average (in dollars per Mmbtu/Bbl) | 1.14 | 1.14 | 1.15 | ||||
WTI oil collars | |||||||
Derivative [Line Items] | |||||||
Notional amount, energy | MBoe | 910 | 900 | 460 | 460 | |||
Floor, weighted-average (in dollars per Mmbtu/Bbl) | 65 | 65 | 65 | 65 | |||
Ceiling, weighted-average (in dollars per Mmbtu/Bbl) | 84.21 | 84.21 | 86.02 | 86.02 |
Derivative Instruments - Effect
Derivative Instruments - Effect of Derivative Instruments on the Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Effect of derivative instruments on the Consolidated Balance Sheet | ||
Derivative instruments | $ 62,000 | $ 85,000 |
Derivative instruments, noncurrent | 6,000 | 7,000 |
Net amounts of assets presented in the condensed consolidated balance sheet | 68,000 | 92,000 |
Derivative instruments, current | 2,000 | 0 |
Derivatives Not Designated as Hedges | Commodity Contracts | ||
Effect of derivative instruments on the Consolidated Balance Sheet | ||
Derivative instruments | 62,000 | 85,000 |
Derivative instruments, noncurrent | 6,000 | 7,000 |
Net amounts of assets presented in the condensed consolidated balance sheet | 68,000 | 92,000 |
Derivative instruments, current | 2,000 | 0 |
Net amounts of liabilities presented in the consolidated balance sheet | $ 2,000 | $ 0 |
Derivative Instruments - Offset
Derivative Instruments - Offsetting of Derivative Assets and Liabilities in the Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Derivative assets | ||
Gross amounts of recognized assets | $ 74 | $ 93 |
Gross amounts offset in the condensed consolidated balance sheet | (6) | (1) |
Net amounts of assets presented in the condensed consolidated balance sheet | 68 | 92 |
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet | 0 | 1 |
Net amount | 68 | 93 |
Derivative liabilities | ||
Gross amounts of recognized liabilities | 8 | 1 |
Gross amounts offset in the condensed consolidated balance sheet | (6) | (1) |
Net amounts of liabilities presented in the condensed consolidated balance sheet | 2 | 0 |
Gross amounts of financial instruments not offset in the condensed consolidated balance sheet | 0 | 0 |
Net amount | $ 2 | $ 0 |
Derivative Instruments - Effe_2
Derivative Instruments - Effect of Derivative Instruments on the Condensed Consolidated Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Effect of derivative instruments on the Consolidated Balance Sheet | ||
Total | $ 0 | $ 138 |
Gas contracts | ||
Effect of derivative instruments on the Consolidated Balance Sheet | ||
Cash received (paid) on settlement of derivative instruments | 27 | 99 |
Non-cash gain (loss) on derivative instruments | 7 | 42 |
Oil contracts | ||
Effect of derivative instruments on the Consolidated Balance Sheet | ||
Cash received (paid) on settlement of derivative instruments | (1) | 1 |
Non-cash gain (loss) on derivative instruments | $ (33) | $ (4) |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities, Recurring (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Assets | ||
Deferred compensation plan | $ 35 | $ 33 |
Derivative instruments | 68 | 92 |
Liabilities | ||
Deferred compensation plan | 35 | 33 |
Recurring basis | ||
Assets | ||
Deferred compensation plan | 35 | 33 |
Derivative instruments | 74 | 93 |
Total assets | 109 | 126 |
Liabilities | ||
Deferred compensation plan | 35 | 33 |
Derivative instruments | 8 | 1 |
Total liabilities | 43 | 34 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring basis | ||
Assets | ||
Deferred compensation plan | 35 | 33 |
Derivative instruments | 0 | 0 |
Total assets | 35 | 33 |
Liabilities | ||
Deferred compensation plan | 33 | |
Derivative instruments | 0 | 0 |
Total liabilities | 35 | 33 |
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 | 74 | 93 |
Total assets | 74 | 93 |
Liabilities | ||
Deferred compensation plan | 0 | 0 |
Derivative instruments | 8 | 1 |
Total liabilities | $ 8 | $ 1 |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Changes in Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
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 | $ 92 | $ 146 |
Total gain (loss) included in earnings | 0 | 138 |
Settlement (gain) loss | (26) | (100) |
Transfers in and/or out of Level 3 | 0 | 0 |
Balance at end of period | 66 | 184 |
Change in unrealized gains (losses) relating to assets and liabilities still held at the end of the period | $ (1) | $ 95 |
Fair value recurring basis unobservable input reconciliation net derivative asset liability gain loss statement of income extensible list not disclosed flag | Total gain (loss) included in earnings | Total gain (loss) included in earnings |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) | 3 Months Ended |
Mar. 31, 2024 impaired_asset_and_liability | |
Fair value disclosures | |
Number of non-financial assets and liabilities impaired | 0 |
3.90% senior notes due May 15, 2027 | Senior Notes | |
Fair value disclosures | |
Stated percentage | 3.90% |
4.375% senior notes due March 15, 2029 | Senior Notes | |
Fair value disclosures | |
Stated percentage | 4.375% |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Other Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Fair value disclosures | ||
Total debt | $ 2,651 | $ 2,161 |
Current maturities | 575 | 575 |
Long-term debt | 2,076 | 1,586 |
Carrying Amount | ||
Fair value disclosures | ||
Total debt | 2,651 | 2,161 |
Current maturities | 575 | 575 |
Long-term debt | 2,076 | 1,586 |
Estimated Fair Value | ||
Fair value disclosures | ||
Total debt | 2,508 | 2,015 |
Current maturities | 568 | 565 |
Long-term debt | $ 1,940 | $ 1,450 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Asset Retirement Obligation | ||
Balance at beginning of period | $ 289 | |
Liabilities incurred | 2 | |
Accretion expense | 3 | |
Balance at end of period | 294 | |
Less: current asset retirement obligations | (11) | |
Noncurrent asset retirement obligations | $ 283 | $ 280 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | $ 1,433 | $ 1,639 |
Natural gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 538 | 822 |
Oil | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 701 | 615 |
NGL | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 173 | 177 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | $ 21 | $ 25 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Contracts with customers | $ 656 | $ 723 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Unsatisfied performance obligations | $ 6,500 | |
Unsatisfied performance obligations, expected period of satisfaction | 15 years |
Capital Stock - Narrative (Deta
Capital Stock - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | |||
Feb. 29, 2024 | Feb. 28, 2023 | Oct. 31, 2021 | Mar. 31, 2024 | Mar. 31, 2023 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Cash dividends, per share (in dollars per share) | $ 0.21 | $ 0.20 | $ 0.15 | $ 0.21 | $ 0.57 |
Share repurchases and retirements (in shares) | 6 | ||||
Share repurchases and retirements | $ 157 | ||||
Stock repurchase program | 1,400 | ||||
Share repurchases | $ 157 | $ 271 | |||
Previous Share Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock repurchased during period (in shares) | 11 | ||||
Share repurchases | $ 271 |
Capital Stock - Dividends Commo
Capital Stock - Dividends Common Stock (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Equity [Abstract] | ||
Fixed (in dollars per share) | $ 0.21 | $ 0.20 |
Variable (in dollars per share) | 0 | 0.37 |
Total (in dollars per share) | $ 0.21 | $ 0.57 |
Total dividends | $ 160 | $ 438 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Share-Based Compensation Expense Income Tax Benefit Awards Issued Under Incentive Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock based compensation expense | $ 13 | $ 16 |
Income tax benefit | 0 | 1 |
Restricted stock units - employees and non-employee directors | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock based compensation expense | 9 | 7 |
Restricted stock awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock based compensation expense | 1 | 4 |
Performance share awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock based compensation expense | $ 3 | $ 5 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - $ / shares | 3 Months Ended | |
Feb. 21, 2024 | Mar. 31, 2024 | |
Restricted Stock Units | Employee | ||
Stock-based Compensation arrangements | ||
Granted (in shares) | 574,697 | |
Granted (in dollars per share) | $ 26.16 | |
Service period | 3 years | |
Annual forfeiture rate | 0% | |
TSR Performance Share Awards | ||
Stock-based Compensation arrangements | ||
Granted (in shares) | 541,865 | |
Granted (in dollars per share) | $ 19.38 | |
Performance period | 3 years | |
Right to receive shares | 100% | |
Right to receive an additional award in cash | 100% | |
Annual forfeiture rate | 0% |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions for TSR Shares (Details) - TSR Performance Share Awards - $ / shares | 3 Months Ended | |
Feb. 21, 2024 | Mar. 31, 2024 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value per performance share award (in dollars per share) | $ 19.38 | |
Stock price volatility | 38% | |
Risk-free rate of return | 4.39% | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value per performance share award (in dollars per share) | $ 5.24 | |
Stock price volatility | 23.70% | |
Risk-free rate of return | 4.38% | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value per performance share award (in dollars per share) | $ 10.61 | |
Stock price volatility | 37.90% | |
Risk-free rate of return | 5.08% |
Earnings per Share - Schedule o
Earnings per Share - Schedule of EPS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income (Numerator) | ||
Net income | $ 352 | $ 677 |
Less: dividends attributable to participating securities | 0 | (2) |
Net income available to common stockholders | $ 352 | $ 675 |
Shares (Denominator) | ||
Weighted-average shares - basic (in shares) | 750 | 764 |
Dilution effect of stock awards at end of period (in shares) | 5 | 4 |
Weighted-average shares - diluted (in shares) | 755 | 768 |
Earnings per share | ||
Basic (in dollars per share) | $ 0.47 | $ 0.88 |
Diluted (in dollars per share) | $ 0.47 | $ 0.88 |
Earnings per Share - Calculatio
Earnings per Share - Calculation of Weighted-Average Shares Excluded from Diluted EPS (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Treasury Stock Method | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares (in shares) | 0 | 0 |
Restructuring Costs (Details)
Restructuring Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of period | $ 47 | $ 77 |
Additions related to merger integration | 0 | 7 |
Reductions related to severance payments | (11) | (7) |
Balance at end of period | $ 36 | $ 77 |
Additional Balance Sheet Info_3
Additional Balance Sheet Information (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Accounts receivable, net | ||
Trade accounts | $ 656 | $ 723 |
Joint interest accounts | 181 | 118 |
Other accounts | 44 | 4 |
Accounts receivable, gross | 881 | 845 |
Allowance for credit losses | (3) | (2) |
Accounts receivable, net | 878 | 843 |
Other assets | ||
Deferred compensation plan | 35 | 33 |
Debt issuance costs | 7 | 8 |
Operating lease right-of-use assets | 312 | 337 |
Other accounts | 84 | 82 |
Other assets | 444 | 467 |
Accounts payable | ||
Trade accounts | 64 | 60 |
Royalty and other owners | 378 | 386 |
Accrued gathering, processing and transportation | 69 | 80 |
Accrued capital costs | 158 | 165 |
Taxes other than income | 39 | 33 |
Accrued lease operating costs | 41 | 39 |
Other accounts | 39 | 40 |
Accounts payable | 788 | 803 |
Accrued liabilities | ||
Employee benefits | 39 | 70 |
Taxes other than income | 23 | 14 |
Restructuring liability | 30 | 35 |
Derivative instruments | 2 | 0 |
Operating lease liabilities | 116 | 116 |
Derivative instruments | 6 | 7 |
Financing lease liabilities | 7 | 6 |
Other accounts | 63 | 20 |
Accrued liabilities | 280 | 261 |
Other liabilities | ||
Deferred compensation plan | 35 | 33 |
Postretirement benefits | 17 | 17 |
Operating lease liabilities | 209 | 237 |
Financing lease liabilities | 5 | 6 |
Restructuring liability | 6 | 12 |
Other accounts | 125 | 124 |
Other liabilities | $ 397 | $ 429 |
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 |
Interest Expense (Details)
Interest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Interest Income (Expense), Net [Abstract] | ||
Interest expense | $ 22 | $ 20 |
Debt premium and discount amortization, net | (5) | (5) |
Debt issuance cost amortization | 1 | 1 |
Other | 1 | 1 |
Total | $ 19 | $ 17 |
Uncategorized Items - ctra-2024
Label | Element | Value |
Retained Earnings [Member] | ||
Net Income (Loss) | us-gaap_NetIncomeLoss | $ 352,000,000 |