v3.25.1
SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
We conduct our business primarily through two reportable segments: (1) oil and natural gas and (2) carbon management. We identified these segments based on the nature of their activities, the types of products sold and services to be provided. Our oil and natural gas segment explores for, develops, and produces oil and condensate, natural gas liquids and natural gas. Our carbon management segment, that we refer to as Carbon TerraVault, is primarily expected to build, install, operate and maintain CO2 capture equipment, transportation assets and storage facilities. Our oil and natural gas segment and carbon management segment operate exclusively in California.

Revenues related to sales of produced natural gas to our Elk Hills power plant are included in oil, natural gas and natural gas liquids sales in the table below. Direct labor-related costs are allocated to our reportable segments based on job function. General and administrative expenses are allocated to a segment if they directly support a segment's activities. We do not allocate income taxes to our segments. We use proportionate consolidation to account for our share of oil and natural gas producing activities.
The following tables provide segment profit or loss and reconciliations of segment profit or loss to total operating revenues and consolidated income before income taxes for the three months ended March 31, 2025, and 2024.

Three months ended March 31, 2025
Oil and Natural GasCarbon Management
Total Reportable Segments
Elimination
Total
(in millions)
Oil, natural gas and natural gas liquids sales
$828 $— $828 $(14)814 
Other revenue
2 — 2 — 2 
Segment operating revenues
$830 $— $830 
Other revenues and income(a)
96 
Total operating revenues
$912 
(a)Other revenues and income includes net gain from commodity derivatives, revenue from marketing of purchased commodities, electricity revenue and unallocated interest and other revenue.

Three months ended March 31, 2025
Oil and Natural GasCarbon Management
Total Reportable Segments
Reconciliation (Income)/Expense
Total
(in millions)
Segment operating revenues
$830 $— $830 $— $830 
Less:
Operating costs:
Energy operating costs111 — 111 (8)103 
Gas processing costs4 — 4 — 4 
Non-energy operating costs209 — 209 — 209 
General and administrative expenses12 3 15 57 72 
Depreciation, depletion and amortization
126 — 126 5 131 
Taxes other than on income
59 — 59 11 70 
Interest expense
— 3 3 24 27 
Loss from investment in unconsolidated subsidiaries
— 1 1 — 1 
Other segment expenses(a)
43 18 61 — 61 
Segment profit or (loss)
$266 $(25)$241 
Other profit or loss(b)
(12)(12)
Unallocated amounts(c)
2 2 
Income before income taxes
$162 
(a)Other segment expenses for our oil and natural gas segment includes transportation costs, accretion expense, and other operating expenses, net. Other segment expenses for our carbon management segment primarily includes operating lease costs.
(b)Other profit or loss includes the margin we earn from marketing activities and electricity margin.
(c)Unallocated amounts include net gain from commodity derivatives, net gain on natural gas purchase derivatives, transportation costs, other operating expenses, net, other non-operating losses, loss on early extinguishment of debt, and unallocated interest and other revenue.
Three months ended March 31, 2024
Oil and Natural GasCarbon Management
Total Reportable Segments
Elimination
Total
(in millions)
Oil, natural gas and NGL sales to external customers
$435 $— $435 $(6)$429 
Other revenue
1 — 1 — 1 
Segment operating revenues
$436 $— $436 
Other revenues and income(a)
24 
Total operating revenues
$454 
(a)Other revenue and income includes net loss from commodity derivatives, revenue from marketing of purchased commodities, electricity sales and unallocated interest and other revenue.


Three months ended March 31, 2024
Oil and Natural GasCarbon Management
Total Reportable Segments
Reconciliation (Income)/Expense
Total
(in millions)
Segment operating revenues
$436 $— $436 $— $436 
Less:
Operating costs:
Energy operating costs56 — 56 (3)53 
Gas processing costs4 — 4 — 4 
Non-energy operating costs119 — 119 — 119 
General and administrative expenses9 2 11 46 57 
Depreciation, depletion and amortization
49 — 49 4 53 
Taxes other than on income
32 — 32 6 38 
Interest expense
— 1 1 12 13 
Loss from investment in unconsolidated subsidiary
— 3 3 — 3 
Other segment expenses(a)
35 8 43 — 43 
Segment profit or (loss)
$132 $(14)$118 
Other profit or loss(b)
(21)(21)
Unallocated amounts(c)
93 93 
Income before income taxes
$(19)
(a)Amounts for our oil and natural gas segment include purchases of wet gas processed by us, power and fuel costs purchased during maintenance at our Elk Hills power plant, transportation costs and accretion expense, net of a gain on asset divestitures. Amounts for our carbon management segment primarily include operating lease costs.
(b)Other profit or loss includes margin from purchased commodities and electricity margin.
(c)Unallocated amounts include net loss from commodity derivatives, net loss on natural gas purchase derivatives, transportation costs, other operating expenses, net, other non-operating loss and unallocated interest and other revenue.
The following table provides capital investment by segment and a reconciliation to our consolidated capital investment for the three months ended March 31, 2025 and 2024. We do not provide total assets by segment because this is not used by our Chief Operating Decision Maker. See Note 3 Investments and Related Party Transactions for information on our investment in the Carbon TerraVault JV, which is part of our carbon management segment.

Oil and Natural Gas
Carbon Management
Corporate and Other
Consolidated
(in millions)
Three months ended March 31, 2025
$42 $2 $11 $55 
Three months ended March 31, 2024
$36 $4 $14 $54