v3.26.1
SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2026
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 operates assets located in California and Utah. Our carbon management segment operates 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 and activity. 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, 2026 and 2025.

Three months ended March 31, 2026
Oil and Natural GasCarbon ManagementTotal Reportable Segments
Corporate/Eliminations/Other
Total
(in millions)
Oil, natural gas and natural gas liquids sales$913 $— $913 $(8)$905 
Other revenues and income(a)
7 — 7 $(793)(786)
Segment operating revenues$920 $— $920 $(801)
Total operating revenues$119 
(a)Other revenues 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, 2026
Oil and Natural GasCarbon ManagementTotal Reportable Segments
Corporate/Eliminations/Other
Total
(in millions)
Segment operating revenues$920 $— $920 $(801)$119 
Less:
Operating costs:
Energy operating costs117 — 117 (7)110 
Gas processing costs5 — 5 — 5 
Non-energy operating costs250 — 250 — 250 
General and administrative expenses23 3 26 80 106 
Depreciation, depletion and amortization128 — 128 5 133 
Taxes other than on income60 — 60 7 67 
Interest expense— 3 3 26 29 
Loss from investment in unconsolidated subsidiaries— 1 1 1 2 
Net loss on natural gas purchase derivatives
— — — 24 24 
Loss on early extinguishment of debt— — — 21 21 
Other non-operating expenses— — — (3)(3)
Costs related to marketing of purchased commodities— — — 23 23 
Electricity generation expenses— — — 5 5 
Other segment expenses(a)
55 5 60 47 107 
Segment profit or (loss)$282 $(12)$270 $(1,030)
Loss before income taxes
$(760)
(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. Other segment expenses for Corporate/Eliminations/Other includes transportation costs from marketing activities, severance as well as merger and integration costs that are not allocated to a segment.
Three months ended March 31, 2025
Oil and Natural GasCarbon ManagementTotal Reportable Segments
Corporate/Eliminations/Other
Total
(in millions)
Oil, natural gas and NGL sales to external customers$828 $— $828 $(14)$814 
Other revenues and income(a)
2 — 2 96 98 
Segment operating revenues$830 $— $830 $82 
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 ManagementTotal Reportable Segments
Corporate/Eliminations/Other
Total
(in millions)
Segment operating revenues$830 $— $830 $82 $912 
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 amortization126 — 126 5 131 
Taxes other than on income59 — 59 11 70 
Interest expense— 3 3 24 27 
Loss from investment in unconsolidated subsidiary— 1 1 — 1 
Net (gain) loss on natural gas purchase derivatives— — — (6)(6)
Loss on early extinguishment of debt— — — 1 1 
Other non-operating expenses— — — (5)(5)
Costs related to marketing of purchased commodities— — — 50 50 
Electricity generation expenses— — — 10 10 
Other segment expenses(a)
43 18 61 22 83 
Segment profit or (loss)$266 $(25)$241 $(79)
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. Other segment expenses for Corporate/Eliminations/Other includes transportation costs from marketing activities and other operating expenses, net that are not allocated to a segment.
The following table provides capital investment by segment and a reconciliation to our consolidated capital investment for the three months ended March 31, 2026 and 2025. We do not provide total assets by segment because it is not used by our Chief Operating Decision Maker. See Note 3 Investment in Unconsolidated Subsidiaries 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 March 31, 2026$116 $12 $3 $131 
Three months ended March 31, 2025$50 $2 $3 $55