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Segment Information (Tables)

9 Months Ended

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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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.

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