Segment Information

9 Months Ended

Sep. 30, 2024

We have two reportable operating segments. Both of these segments are organized and managed based upon geographic location and the nature of the products and services offered.

•United States (“U.S.”) – explores for, produces and markets crude oil and condensate, NGLs and natural gas in the United States; and

•International (“Int’l”) – explores for, produces and markets crude oil and condensate, NGLs and natural gas outside of the United States as well as produces and markets products manufactured from natural gas, such as LNG and methanol, in Equatorial Guinea (“E.G.”)

Segment income represents income that excludes certain items not allocated to our operating segments, net of income taxes. A portion of our corporate and operations general and administrative support costs are not allocated to the operating segments. These unallocated costs primarily consist of employment costs (including pension effects), professional services, facilities and other costs associated with corporate and operations support activities. Additionally, items which affect comparability such as: gains or losses on dispositions, impairments of proved and certain unproved properties, dry wells, changes in our valuation allowance, unrealized gains or losses on commodity and interest rate derivative instruments, effects of pension settlements and curtailments, expensed transaction costs for business combinations or other items (as determined by the chief operating decision maker (“CODM”)) are not allocated to operating segments.


	Three Months Ended September 30, 2024
(In millions)	U.S.		Int’l		Not Allocated to Segments			Total
Revenues from contracts with customers	$	1,615	$	126	$	—		$	1,741
Net gain on commodity derivatives	—		—		9		(b)	9
Income from equity method investments	—		39		—			39

Other income (expense)	(1)		2		1			2
Less costs and expenses:
Production	209		14		—			223
Shipping, handling and other operating, including related party	187		17		—			204
Exploration	9		—		—			9
Depreciation, depletion and amortization	611		11		5			627
Impairments	—		—		1			1
Taxes other than income	99		—		—			99
General and administrative	39		3		46		(c)	88
Net interest and other	—		—		77			77
Other net periodic benefit credits	—		—		(3)			(3)

Income tax provision	98		27		54		(d)	179
Segment income (loss)	$	362	$	95	$	(170)		$	287
Total assets	$	18,443	$	882	$	97		$	19,422
Capital expenditures(a)	$	454	$	3	$	1		$	458

(a)Includes accruals and excludes acquisitions.

(b)Unrealized gain on commodity derivative instruments (See Note 8).

(c)Includes $6 million of transaction costs associated with the Merger with ConocoPhillips (See Note 1).

(d)Includes a $75 million deferred tax valuation allowance against foreign tax credits (See Note 6).


	Three Months Ended September 30, 2023
(In millions)	U.S.		Int’l		Not Allocated to Segments			Total
Revenues from contracts with customers	$	1,700	$	71	$	—		$	1,771
Net gain (loss) on commodity derivatives	7		—		(6)		(b)	1
Income from equity method investments	—		38		—			38
Net gain on disposal of assets	—		—		1			1
Other income	—		1		1			2
Less costs and expenses:
Production	173		19		—			192
Shipping, handling and other operating, including related party	162		2		—			164
Exploration	8		1		11		(c)	20
Depreciation, depletion and amortization	570		12		1			583

Taxes other than income	112		—		1			113
General and administrative	32		3		37			72
Net interest and other	—		—		94			94
Other net periodic benefit credits	—		—		(5)			(5)

Income tax provision (benefit)	145		11		(29)			127
Segment income (loss)	$	505	$	62	$	(114)		$	453
Total assets	$	18,503	$	1,072	$	344		$	19,919
Capital expenditures(a)	$	444	$	1	$	4		$	449

(a)Includes accruals and excludes acquisitions.

(b)Unrealized loss on commodity derivative instruments (See Note 8).

(c)Includes $11 million of unproved impairments related to Permian exploration leases.


	Nine Months Ended September 30, 2024
(In millions)	U.S.		Int’l		Not Allocated to Segments			Total
Revenues from contracts with customers	$	4,588	$	357	$	—		$	4,945
Net loss on commodity derivatives	—		—		(14)		(b)	(14)
Income from equity method investments	—		104		—			104
Net gain on disposal of assets	—		—		10		(c)	10
Other income (expense)	(4)		5		3			4
Less costs and expenses:
Production	608		52		—			660
Shipping, handling and other operating, including related party	491		47		10			548
Exploration	26		—		4			30
Depreciation, depletion and amortization	1,673		31		24			1,728
Impairments	—		—		1			1
Taxes other than income	298		—		—			298
General and administrative	118		10		145		(d)	273
Net interest and other	—		—		226			226
Other net periodic benefit credits	—		—		(8)			(8)

Income tax provision (benefit)	295		70		(5)		(e)	360
Segment income (loss)	$	1,075	$	256	$	(398)		$	933
Total assets	$	18,443	$	882	$	97		$	19,422
Capital expenditures(a)	$	1,712	$	7	$	7		$	1,726

(a)Includes accruals and excludes acquisitions.

(b)Unrealized loss on commodity derivative instruments (See Note 8).

(c)Pertains to a gain from the sale of a legacy royalty interest in the state of California.

(d)Includes $16 million of transaction costs associated with the Merger with ConocoPhillips (See Note 1).

(e)Includes a $75 million deferred tax valuation allowance against foreign tax credits (See Note 6).


	Nine Months Ended September 30, 2023
(In millions)	U.S.			Int’l		Not Allocated to Segments			Total
Revenue from contracts with customers	$	4,643		$	179	$	—		$	4,822
Net gain (loss) on commodity derivatives	27			—		(8)		(c)	19
Income from equity method investments	—			140		—			140
Net gain on disposal of assets	—			—		6			6
Other income	12			5		2			19
Less costs and expenses:
Production	542			65		—			607
Shipping, handling and other operating, including related party	482			5		—			487
Exploration	19			1		26		(d)	46
Depreciation, depletion and amortization	1,622			34		6			1,662

Taxes other than income	252		(b)	—		(1)			251
General and administrative	98			9		118			225
Net interest and other	—			—		268			268
Other net periodic benefit credits	—			—		(11)			(11)

Income tax provision (benefit)	372			29		(87)			314
Segment income (loss)	$	1,295		$	181	$	(319)		$	1,157
Total assets	$	18,503		$	1,072	$	344		$	19,919
Capital expenditures(a)	$	1,661		$	3	$	9		$	1,673

(a)Includes accruals and excludes acquisitions.

(b)Includes a nonrecurring Eagle Ford severance tax refund of $47 million related to prior years.

(c)Unrealized loss on commodity derivative instruments (See Note 8).

(d)Includes $10 million of dry well expense associated with wells in Permian and $11 million of unproved impairments related to Permian exploration leases.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

MARATHON OIL CORP 10-Q