v3.26.1
SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 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 June 30, 2026 and 2025.

Three Months Ended June 30, 2026
Oil and Natural GasCarbon ManagementTotal Reportable Segments
Corporate/Eliminations/Other
Total
(in millions)
Oil, natural gas and natural gas liquids sales$1,061 $— $1,061 $(5)$1,056 
Other revenues and income(a)
2 1 3 238 241 
Segment operating revenues$1,063 $1 $1,064 $233 
Total operating revenues$1,297 
(a)Other revenues and income includes net gain from commodity derivatives, revenue from marketing of purchased commodities, electricity sales and unallocated interest and other revenue.

Three Months Ended June 30, 2026
Oil and Natural GasCarbon ManagementTotal Reportable Segments
Corporate/Eliminations/Other
Total
(in millions)
Segment operating revenues$1,063 $1 $1,064 $233 $1,297 
Less:
Operating costs:
Energy operating costs91 — 91 (4)87 
Gas processing costs6 — 6 — 6 
Non-energy operating costs254 — 254 — 254 
General and administrative expenses18 2 20 77 97 
Depreciation, depletion and amortization124 — 124 7 131 
Taxes other than on income61 — 61 5 66 
Interest expense— 3 3 25 28 
Loss from investment in unconsolidated subsidiaries— 2 2 — 2 
Net loss on natural gas purchase derivatives
— — — 5 5 
Loss on early extinguishment of debt— — — 28 28 
Other non-operating income— — — (5)(5)
Costs related to marketing of purchased commodities— — — 15 15 
Electricity generation expenses— — — 10 10 
Other segment expenses(a)
82 7 89 26 115 
Segment profit or (loss)$427 $(13)$414 $44 
Income before income taxes$458 
(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 and compensation-related expenses. 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.
Three months ended June 30, 2025
Oil and Natural GasCarbon ManagementTotal Reportable Segments
Corporate/Eliminations/Other
Total
(in millions)
Oil, natural gas and natural gas liquids sales$711 $— $711 $(9)$702 
Other revenues and income(a)
3 — 3 273 276 
Segment operating revenues$714 $— $714 $264 
Total operating revenues$978 
(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 June 30, 2025
Oil and Natural GasCarbon ManagementTotal Reportable Segments
Corporate/Eliminations/Other
Total
(in millions)
Segment operating revenues$714 $— $714 $264 $978 
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 (gain) from investment in unconsolidated subsidiary— 1 1 (1)— 
Net loss on natural gas purchase derivatives— — — 3 3 
Costs related to marketing of purchased commodities— — — 41 41 
Electricity generation expenses— — — 5 5 
Other segment expenses(a)
47 14 61 52 113 
Segment profit or (loss)$194 $(20)$174 $68 
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. 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.
Six months ended June 30, 2026
Oil and Natural GasCarbon ManagementTotal Reportable Segments
Corporate/Eliminations/Other
Total
(in millions)
Oil, natural gas and natural gas liquids sales$1,974 $— $1,974 $(13)$1,961 
Other revenues and income(a)
9 1 10 (555)(545)
Segment operating revenues$1,983 $1 $1,984 $(568)
Total operating revenues$1,416 
(a)Other revenues and income for Corporate/Eliminations/Other 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, 2026
Oil and Natural GasCarbon ManagementTotal Reportable Segments
Corporate/Eliminations/Other
Total
(in millions)
Segment operating revenues $1,983 $1 $1,984 $(568)$1,416 
Less:
Operating costs:
Energy operating costs208 — 208 (11)197 
Gas processing costs11 — 11 — 11 
Non-energy operating costs504 — 504 — 504 
General and administrative expenses41 5 46 157 203 
Depreciation, depletion and amortization251 — 251 13 264 
Taxes other than on income120 — 120 13 133 
Interest expense— 6 6 51 57 
Loss from investment in unconsolidated subsidiaries— 3 3 1 4 
Net loss on natural gas purchase derivatives— — 2929 
Loss on early extinguishment of debt
— — — 49 49 
Other non-operating income— — — (8)(8)
Costs related to marketing of purchased commodities
— — — 38 38 
Electricity generation expenses
— — — 15 15 
Other segment expenses(a)
137 12 149 73 222 
Segment profit or (loss)$711 $(25)$686 $(988)
Loss before income taxes$(302)
(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 and compensation-related expenses. 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.
Six months ended June 30, 2025
Oil and Natural GasCarbon ManagementTotal Reportable Segments
Corporate/Eliminations/Other
Total
(in millions)
Oil, natural gas and natural gas liquids sales$1,539 $— $1,539 $(23)$1,516 
Other revenues and income(a)
5 — 5 369 374 
Segment operating revenues$1,544 $— $1,544 $346 
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 Segments
Corporate/Eliminations/Other
Total
(in millions)
Segment operating revenues$1,544 $— $1,544 $346 $1,890 
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 (gain) from investment in unconsolidated subsidiary— 2 2 (1)1 
Net gain on natural gas purchase derivatives— — — (3)(3)
Loss on early extinguishment of debt
1 1 
Other non-operating income(5)(5)
Costs related to marketing of purchased commodities91 91 
Electricity generation expenses
15 15 
Other segment expenses(a)
90 32 122 74 196 
Segment profit or (loss)$460 $(45)$415 $(11)
Income before income taxes$404 
(a)Other segment expenses for our oil and natural gas segment include 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 and six months ended June 30, 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 June 30, 2026$145 $3 $1 $149 
Three months ended June 30, 2025$51 $5 $— $56 

Oil and Natural Gas
Carbon Management
Corporate and Other
Total
(in millions)
Six months ended June 30, 2026$261 $15 $4 $280 
Six months ended June 30, 2025$93 $7 $11 $111