SUPPLEMENTAL ACCOUNT BALANCES

3 Months Ended

Mar. 31, 2024

Revenues — We derive most of our revenue from sales of oil, natural gas and NGLs, with the remaining revenue primarily generated from sales of electricity and marketing activities related to storage and managing excess pipeline capacity.

The following table provides disaggregated revenue for sales of produced oil, natural gas and NGLs to customers:



	Three months ended March 31,
	2024		2023
	(in millions)
Oil	$	348	$	390
Natural gas	32		263
NGLs	49		62
Oil, natural gas and NGL sales	$	429	$	715

From time-to-time, we enter into transactions for third-party production, which we report as revenue from marketing of purchased commodities on our condensed consolidated statement of operations. Revenues from marketing of purchased commodities primarily results from the storage or transportation of natural gas to take advantage of differences in pricing or location or in the quality of other products. The following table provides disaggregated revenue for sales to customers related to our marketing activities:



	Three months ended March 31,
	2024		2023
	(in millions)
Oil	$	20	$	—
Natural gas	48		184
NGLs	6		3
Revenue from marketing of purchased commodities	$	74	$	187

Inventories — Materials and supplies, which primarily consist of well equipment and tubular goods used in our oil and natural gas operations, are valued at weighted-average cost and are reviewed periodically for obsolescence. Finished goods include produced oil and NGLs in storage, which are valued at the lower of cost or net realizable value. Inventories, by category, are as follows:



	March 31,		December 31,
	2024		2023
	(in millions)
Materials and supplies	$	68	$	68
Finished goods	2		4
Inventories	$	70	$	72

Other current assets, net — Other current assets, net include the following:



	March 31,		December 31,
	2024		2023
	(in millions)
Net amounts due from joint interest partners(a)	$	40	$	43

Fair value of commodity derivative contracts	—		21
Prepaid expenses	29		19
Greenhouse gas allowances	6		12

Income tax receivable	4		—
Other	16		18
Other current assets, net	$	95	$	113

(a)Included in the March 31, 2024 and December 31, 2023 net amounts due from joint interest partners are allowances of $3 million.

Other noncurrent assets — Other noncurrent assets include the following:



	March 31,		December 31,
	2024		2023
	(in millions)
Operating lease right-of-use assets	$	85	$	73
Deferred financing costs - Revolving Credit Facility	10		11
Emission reduction credits	11		11
Prepaid power plant maintenance	2		34
Fair value of commodity derivative contracts	—		6
Deposits and other	15		13
Other noncurrent assets	$	123	$	148

Accrued liabilities — Accrued liabilities include the following:


	March 31,		December 31,
	2024		2023
	(in millions)
Employee-related costs	$	48	$	82
Taxes other than on income	50		35
Asset retirement obligations	90		99
Interest	8		18
Operating lease liability	19		15
Fair value of derivative contracts	35		8
Premiums due on commodity derivative contracts	13		21
Liability for settlement payments on commodity derivative contracts	5		8
Amounts due under production-sharing contracts	10		5
Signal Hill maintenance	13		12
Income taxes payable	—		18

Other	47		45
Accrued liabilities	$	338	$	366

Other long-term liabilities — Other long-term liabilities includes the following:



	March 31,		December 31,
	2024		2023
	(in millions)
Compensation-related liabilities	$	33	$	38
Postretirement benefit plan	35		36
Operating lease liability	56		55
Fair value of commodity derivative contracts	14		2
Premiums due on commodity derivative contracts	10		10
Contingent liability (related to Carbon TerraVault JV put and call rights)	99		52
Other	6		8
Other long-term liabilities	$	253	$	201

General and administrative expenses — The table below shows G&A expenses for our exploration and production business (including unallocated corporate overhead and other) separately from our carbon management business. The amounts shown for our carbon management business are net of amounts invoiced by us under the MSA with the Carbon TerraVault JV. See Note 3 Investment in Unconsolidated Subsidiary and Related Party Transactions for more information on the Carbon TerraVault JV.


	Three months ended March 31,
	2024		2023
	(in millions)
Exploration and production, corporate and other	$	55	$	62
Carbon management business	2		3
Total general and administrative expenses	$	57	$	65