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Segment Reporting
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Segment Reporting Disclosure SEGMENT REPORTING
We aggregate and report our crude oil and natural gas exploration and production operations in one reportable upstream segment. The Permian Basin and the DJ Basin are operating segments of the Company that we aggregate into the upstream segment due to the similarity of these domestic operations. The upstream segment derives revenue from the sale of produced crude oil, natural gas, and NGL. We consider our midstream functions as ancillary to our upstream segment. Our chief operating decision maker (“CODM”) is our Interim Chief Executive Officer.
The measure of profit or loss that the CODM uses to assess performance and allocate resources for the upstream segment is Adjusted EBITDAX. Adjusted EBITDAX is defined as earnings before interest, income taxes, depreciation, depletion, and amortization, exploration expense, and other non-cash and non-recurring charges. The measure of segment assets is reported on the accompanying consolidated balance sheets as total consolidated assets and capital expenditures are reported in our statements of cash flows. The CODM uses Adjusted EBITDAX to evaluate income generated from segment assets in deciding whether to reinvest profits into the upstream segment or into other activities, such as for acquisitions, debt reduction, or to return capital to stockholders.
The following table presents a reconciliation of reportable segment Adjusted EBITDAX to income from operations before income taxes (in millions):
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Adjusted EBITDAX$855 $910 $2,389 $2,756 
Interest expense, net(1)
(119)(115)(336)(334)
Depreciation, depletion, and amortization(497)(524)(1,443)(1,512)
Exploration(1)(1)(7)(14)
Transaction costs(2)— (8)(31)
Derivative gain, net
79 151 235 49 
Derivative cash settlement (gain) loss, net(65)(18)(138)6 
Non-recurring cash severance(2)(3)
(3)— (7)— 
Stock-based compensation(2)
(11)(13)(37)(36)
Other, net(4)
(2)(1)(5)(1)
Income from operations before income taxes$234 $389 $643 $883 
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(1)Includes interest income of $1 million and $2 million for the three months ended September 30, 2025 and 2024, respectively, and $5 million and $8 million for the nine months ended September 30, 2025 and 2024, respectively. Interest income is included as a portion of other, net in the accompanying statements of operations.
(2)Included as a portion of general and administrative expense in the accompanying statements of operations.
(3)The three months ended September 30, 2025 includes non-recurring cash severance charges incurred in connection with our CEO separation. The nine months ended September 30, 2025 includes non-recurring cash severance charges incurred in connection with our announced reduction in force and our CEO separation.
(4)Other, net activity primarily includes (i) non-recurring cash unused commitment fees that are included in other operating expense in the accompanying statements of operations for each period presented and (ii) non-capitalized expenses incurred in connection with our ERP implementation that are included in general and administrative expense in the accompanying statements of operations during the three months ended September 30, 2025.