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Segment Information (Tables) | 9 Months Ended
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Sep. 30, 2023
Segment Reporting [Abstract] |
Summary of Information by Business Segment | The following table presents selected segment information for the periods indicated (in thousands):
| Upstream |  | All Other(1) |  | Total |
Revenues from External Customers: |  |  |  |  |  |
Three Months Ended September 30, 2023 | $ | 383,135 |  | $ | — |  | $ | 383,135 |
Three Months Ended September 30, 2022 |  | 377,128 |  |  | — |  |  | 377,128 |
Nine Months Ended September 30, 2023 |  | 1,072,927 |  |  | — |  |  | 1,072,927 |
Nine Months Ended September 30, 2022 |  | 1,309,779 |  |  | — |  |  | 1,309,779 |
Equity in the Net Income (Loss) of Investees Accounted for by the Equity Method: |  |  |  |  |  |
Three Months Ended September 30, 2023 | $ | 118 |  | $ | (2,612 | ) | $ | (2,494 | )
Three Months Ended September 30, 2022 |  | 75 |  |  | (497 | ) |  | (422 | )
Nine Months Ended September 30, 2023 |  | 373 |  |  | (6,023 | ) |  | (5,650 | )
Nine Months Ended September 30, 2022 |  | 5 |  |  | (694 | ) |  | (689 | )
Adjusted EBITDA: |  |  |  |  |  |
Three Months Ended September 30, 2023 | $ | 255,228 |  | $ | (5,045 | ) | $ | 250,183 |
Three Months Ended September 30, 2022 |  | 199,675 |  |  | (715 | ) |  | 198,960 |
Nine Months Ended September 30, 2023 |  | 719,326 |  |  | (13,562 | ) |  | 705,764 |
Nine Months Ended September 30, 2022 |  | 669,103 |  |  | (8,659 | ) |  | 660,444 |
Segment Expenditures: |  |  |  |  |  |
Nine Months Ended September 30, 2023 | $ | 559,873 |  | $ | 37,183 |  | $ | 597,056 |
Nine Months Ended September 30, 2022 |  | 297,486 |  |  | 2,027 |  |  | 299,513 |
(1) The CCS Segment is included in the “All Other” category. The CCS Segment is an emerging business in the start-up phase of operations and the business that does not currently generate any revenues. The CCS Segment’s business activities are conducted through both wholly owned subsidiaries and equity method investments with industry partners. Equity method investments is a business strategy that enables us to achieve favorable economies of scale relative to the level of investment and business risk assumed.
Schedule of Reconciliation of Adjusted EBITDA to the Company's Consolidated Totals | The following table presents the reconciliation of Adjusted EBITDA to the Company’s consolidated totals (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30, |
| 2023 |  | 2022 |  | 2023 |  | 2022 |
Adjusted EBITDA: |  |  |  |  |  |  |  |
Total for reportable segments | $ | 255,228 |  | $ | 199,675 |  | $ | 719,326 |  | $ | 669,103 |
All other |  | (5,045 | ) |  | (715 | ) |  | (13,562 | ) |  | (8,659 | )
Unallocated corporate general and administrative expense |  | (1,366 | ) |  | (1,400 | ) |  | (4,161 | ) |  | (3,894 | )
Interest expense |  | (45,637 | ) |  | (29,265 | ) |  | (128,850 | ) |  | (91,531 | )
Depreciation, depletion and amortization |  | (163,359 | ) |  | (92,323 | ) |  | (480,476 | ) |  | (295,174 | )
Accretion expense |  | (21,256 | ) |  | (13,179 | ) |  | (63,430 | ) |  | (42,400 | )
Transaction and other income (expenses)(1) |  | 64,321 |  |  | (3,219 | ) |  | 38,799 |  |  | 38,856 |
Decommissioning obligations(2) |  | (7,972 | ) |  | (20 | ) |  | (9,454 | ) |  | (10,553 | )
Derivative fair value gain (loss)(3) |  | (98,802 | ) |  | 114,180 |  |  | (13,668 | ) |  | (231,133 | )
Net cash (received) paid on settled derivative instruments (3) |  | 6,313 |  |  | 81,162 |  |  | 10,474 |  |  | 368,483 |
Non-cash equity-based compensation expense |  | (393 | ) |  | (4,310 | ) |  | (9,080 | ) |  | (11,677 | )
Income (loss) before income taxes | $ | (17,968 | ) | $ | 250,586 |  | $ | 45,918 |  | $ | 381,421 |
(1) For the three and nine months ended September 30, 2023, transaction expenses includes $1.5 million and $39.4 million, respectively, in costs related to the EnVen Acquisition, inclusive of $0.9 million and $24.9 million, respectively, in severance expense. For the three and nine months ended September 30, 2022, transaction expenses includes $4.3 million and $5.0 million, respectively, in costs related to the EnVen Acquisition. See further discussion in Note 2 — Acquisitions and Divestitures and Note 7 — Employee Benefits Plans and Share-Based Compensation. Other income (expense) includes other miscellaneous income and expenses that we do not view as a meaningful indicator of our operating performance. For the three and nine months ended September 30, 2023, the amount includes a $66.2 million gain on the Mexico Divestiture. See further discussion in Note 2 — Acquisitions and Divestitures. The amount includes a gain on the funding of the capital carry of our investment in Bayou Bend by Chevron of $8.6 million for the nine months ended September 30, 2023 and a $1.4 million for the three and nine months ended September 30, 2022. Additionally, it includes a $13.9 million gain on the partial sale of its investment in Bayou Bend to Chevron for the nine months ended September 30, 2022. See further discussion in Note 10 — Related Party Transactions. For the nine months ended September 30, 2022, the amount includes $27.5 million gain as a result of the settlement agreement to resolve previously pending litigation that was filed in October 2017 that is further discussed in Note 11 — Commitments and Contingencies. (2) Estimated decommissioning obligations were a result of working interest partners or counterparties of divestiture transactions that were unable to perform the required abandonment obligations due to bankruptcy or insolvency. See Note 11 — Commitments and Contingencies for additional information on decommissioning obligations. (3) The adjustments for the derivative fair value (gains) losses and net cash receipts (payments) on settled commodity derivative instruments have the effect of adjusting net loss for changes in the fair value of derivative instruments, which are recognized at the end of each accounting period because we do not designate commodity derivative instruments as accounting hedges. This results in reflecting commodity derivative gains and losses within Adjusted EBITDA on an unrealized basis during the period the derivatives settled.
Reconciliation of Reportable Segment Expenditures | The following table presents the reconciliation of Segment Expenditures to the Company’s consolidated totals (in thousands):
| Nine Months Ended September 30, |
| 2023 |  | 2022 |
Segment Expenditures: |  |  |  |
Total reportable segments | $ | 559,873 |  | $ | 297,486 |
All other |  | 37,183 |  |  | 2,027 |
Change in capital expenditures included in accounts payable and accrued liabilities |  | 15,085 |  |  | (32,430 | )
Plugging & abandonment |  | (71,097 | ) |  | (60,304 | )
Decommissioning obligations settled |  | (40,415 | ) |  | — |
Investment in CCS intangibles and equity method investees |  | (37,168 | ) |  | (2,027 | )
Deferred payments |  | (841 | ) |  | — |
Non-cash well equipment inventory transfers |  | (24,476 | ) |  | 3,403 |
Other |  | 362 |  |  | 1,437 |
Exploration, development and other capital expenditures | $ | 438,506 |  | $ | 209,592 |

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- Definition Tabular disclosure of the reconciliation of profit (loss) from reportable segments to the consolidated income (loss) before income tax expense (benefit) and discontinued operations. Includes, but is not limited to, reconciliation after income tax if income tax is allocated to the reportable segment. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-30 + Details
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- Definition Tabular disclosure of reconciliation of other items from reportable segments to their consolidated amount. Excludes reconciliation of revenue, profit (loss), and assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-30 + Details
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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482573/350-20-50-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-25 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-30 + Details
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