v3.25.2
SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 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 and six months ended June 30, 2025 and 2024.

Three months ended June 30, 2025
Oil and Natural GasCarbon ManagementTotal Reportable SegmentsEliminationTotal
(in millions)
Oil, natural gas and natural gas liquids sales$711 $— $711 $(9)$702 
Other revenue3— 3 — 3 
Segment operating revenues$714 $— $714 
Other revenues and income(a)
273 
Total operating revenues$978 
(a)Other revenues and income includes net gain from commodity derivatives, revenue from marketing of purchased commodities, electricity revenue, interest income and unallocated other revenue.
Three months ended June 30, 2025
Oil and Natural GasCarbon ManagementTotal Reportable SegmentsReconciliation (Income)/ExpenseTotal
(in millions)
Segment operating revenues$714 $— $714 $— $714 
Less:
Operating costs:
Energy operating costs85 — 85 (7)78 
Gas processing costs5 — 5 — 5 
Non-energy operating costs212 — 212 — 212 
General and administrative expenses9 3 12 67 79 
Depreciation, depletion and amortization121 — 121 7 128 
Taxes other than on income41 — 41 6 47 
Interest expense— 2 2 23 25 
Loss from investment in unconsolidated subsidiaries— 1 1 (1)— 
Other segment expenses(a)
47 14 61 — 61 
Segment profit or (loss)$194 $(20)$174 
Other profit or loss(b)
(59)(59)
Unallocated amounts(c)
(104)(104)
Income before income taxes$242 
(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 the margin we earn on sales of electricity from our Elk Hills power plant to customers.
(c)Unallocated amounts include net gain from commodity derivatives, net loss on natural gas purchase derivatives, transportation costs, other operating expenses, net, interest income and unallocated other revenue.
Three months ended June 30, 2024
Oil and Natural GasCarbon ManagementTotal Reportable SegmentsEliminationTotal
(in millions)
Oil, natural gas and NGL sales to external customers$416 $— $416 $(4)$412 
Other revenue2 — 2 — 2 
Segment operating revenues$418 $— $418 
Other revenues and income(a)
100 
Total operating revenues$514 
(a)Other revenue and income includes net gain from commodity derivatives, revenue from marketing of purchased commodities, electricity revenue, interest income and unallocated other revenue.
Three months ended June 30, 2024
Oil and Natural GasCarbon ManagementTotal Reportable SegmentsReconciliation (Income)/ExpenseTotal
(in millions)
Segment operating revenues$418 $— $418 $— $418 
Less:
Operating costs:
Energy operating costs44 — 44 (3)41 
Gas processing costs3 — 3 — 3 
Non-energy operating costs112 — 112 — 112 
General and administrative expenses9 3 12 51 63 
Depreciation, depletion and amortization47 — 47 6 53 
Taxes other than on income33 — 33 6 39 
Interest expense— 2 2 15 17 
Loss from investment in unconsolidated subsidiary— 4 4 — 4 
Other segment expenses(a)
53 15 68 — 68 
Segment profit or (loss)$117 $(24)$93 
Other profit or loss(b)
(26)(26)
Unallocated amounts(c)
33 33 
Income before income taxes$11 
(a)Amounts for our oil and natural gas segment include transportation costs, accretion expense, asset impairment, and other operating expenses, net. Amounts for our carbon management segment primarily include operating lease costs.
(b)Other profit or loss includes margin from purchased commodities and the margin we earn on sales of electricity from our Elk Hills power plant to customers.
(c)Unallocated amounts include net gain from commodity derivatives, transportation costs, interest and debt expense, other operating expenses, net, other non-operating loss, interest income, unallocated other revenue, and gain on asset divestitures.

Six months ended June 30, 2025
Oil and Natural GasCarbon ManagementTotal Reportable SegmentsEliminationTotal
(in millions)
Oil, natural gas and natural gas liquids sales$1,539 $— $1,539 $(23)$1,516 
Other revenue5 — 5 — 5 
Segment operating revenues$1,544 $— $1,544 
Other revenues and income(a)
369 
Total operating revenues$1,890 
(a)Other revenues and income includes net gain from commodity derivatives, revenue from marketing of purchased commodities, electricity revenue, interest income and unallocated other revenue.
Six months ended June 30, 2025
Oil and Natural GasCarbon ManagementTotal Reportable SegmentsReconciliation (Income)/ExpenseTotal
(in millions)
Segment operating revenues$1,544 $— $1,544 $— $1,544 
Less:
Operating costs:
Energy operating costs196 — 196 (15)181 
Gas processing costs9 — 9 — 9 
Non-energy operating costs421 — 421 — 421 
General and administrative expenses21 6 27 124 151 
Depreciation, depletion and amortization247 — 247 12 259 
Taxes other than on income100 — 100 17 117 
Interest expense— 5 5 47 52 
Loss from investment in unconsolidated subsidiaries— 2 2 (1)1 
Other segment expenses(a)
90 32 122 — 122 
Segment profit or (loss)$460 $(45)$415 
Other profit or loss(b)
(71)(71)
Unallocated amounts(c)
(102)(102)
Income before income taxes$404 
(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 the margin we earn on sales of electricity from our Elk Hills power plant to customers.
(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, interest income and unallocated other revenue.

Six months ended June 30, 2024
Oil and Natural GasCarbon ManagementTotal Reportable SegmentsEliminationTotal
(in millions)
Oil, natural gas and NGL sales to external customers$851 $— $851 $(10)$841 
Other revenue3 — 3 — 3 
Segment operating revenues$854 $— $854 
Other revenues and income(a)
124 
Total operating revenues$968 
(a)Other revenue and income includes net loss from commodity derivatives, revenue from marketing of purchased commodities, electricity revenue, interest income and unallocated other revenue.
Six months ended June 30, 2024
Oil and Natural GasCarbon ManagementTotal Reportable SegmentsReconciliation (Income)/ExpenseTotal
(in millions)
Segment operating revenues$854 $— $854 $— $854 
Less:
Operating costs:
Energy operating costs100 — 100 (6)94 
Gas processing costs7 — 7 — 7 
Non-energy operating costs231 — 231 — 231 
General and administrative expenses18 5 23 97 120 
Depreciation, depletion and amortization96 — 96 10 106 
Taxes other than on income65 — 65 12 77 
Interest expense— 3 3 27 30 
Loss from investment in unconsolidated subsidiary— 7 7 — 7 
Other segment expenses(a)
88 23 111 — 111 
Segment profit or (loss)$249 $(38)$211 
Other profit or loss(b)
(47)(47)
Unallocated amounts(c)
126 126 
Income before income taxes$(8)
(a)Amounts for our oil and natural gas segment include transportation costs, accretion expense, asset impairment and other operating expenses, net. Amounts for our carbon management segment primarily include operating lease costs.
(b)Other profit or loss includes margin from purchased commodities and the margin we earn on sales of electricity from our Elk Hills power plant to customers.
(c)Unallocated amounts include net loss from commodity derivatives, transportation costs, interest and debt expense, other operating expenses, net, other non-operating loss, interest income, unallocated other revenue, and gain on asset divestitures.

The following table provides capital investment by segment and a reconciliation to our consolidated capital investment for the three and six months ended June 30, 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
Total
(in millions)
Three months ended June 30, 2025$51 $5 $— $56 
Three months ended June 30, 2024$46 $(2)$(10)$34 

Oil and Natural Gas
Carbon Management
Corporate and Other
Total
(in millions)
Six months ended June 30, 2025$93 $7 $11 $111 
Six months ended June 30, 2024$82 $2 $4 $88