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SUPPLEMENTAL ACCOUNT BALANCES
 6 Months Ended
Jun. 30, 2026
SUPPLEMENTAL INFORMATION [Abstract]  
SUPPLEMENTAL ACCOUNT BALANCES SUPPLEMENTAL ACCOUNT BALANCES
Restricted cash — Cash and cash equivalents includes restricted cash of $13 million and $15 million at June 30, 2026 and December 31, 2025, respectively. Restricted cash primarily includes funds held in an escrow account established to secure oil field well and infrastructure abandonment and habitat restoration at an oil and gas field previously owned by Aera. The Aera Merger agreement provides that 50% of the amount of released funds exceeding the cumulative abandonment and habitat restoration expenditures from January 1, 2024 onward is payable to the prior owners of Aera. We do not expect this return of excess cash to be significant.
Revenues — We derive most of our revenue from sales of oil, natural gas and natural gas liquids. Our remaining revenue is primarily generated from the sale of electricity and resource adequacy contracts, and to a lesser extent from marketing activities related to storage and managing excess pipeline capacity. The following table provides disaggregated revenue for sales of produced oil, natural gas and natural gas liquids to customers:

Three months ended
June 30,		Six months ended
June 30,
2026202520262025
(in millions)(in millions)
Oil$995 $644 $1,829 $1,380 
Natural gas14 19 43 47 
Natural gas liquids
47 39 89 89 
Oil, natural gas and natural gas liquids sales
$1,056 $702 $1,961 $1,516 

From time-to-time, we enter into transactions with respect to third-party production, which we report as revenue from marketing of purchased commodities on our condensed consolidated statements of operations. Revenues from marketing of purchased commodities primarily results from the storage or transportation of natural gas to take advantage of differences in pricing or location, or marketing oil sales that have resulted from third-party purchases. The following table provides disaggregated revenue for sales to customers related to our marketing activities:

Three months ended
June 30,		Six months ended
June 30,
2026202520262025
(in millions)(in millions)
Oil$4 $24 $24 $46 
Natural gas22 32 37 68 
Natural gas liquids— — 6 6 
Revenue from marketing of purchased commodities
$26 $56 $67 $120 

In May 2026, we began capturing CO2 at our cryogenic gas processing facility and sequestering it at the 26R reservoir. As CO2 is captured, we accrue revenue for the 45Q credit that we earn under this process in accordance with the requirements of Section 45Q of the Internal Revenue Code of 1986, as amended. Revenue for our carbon management business was insignificant for the three and six months ended June 30, 2026.

Inventory — Materials and supplies, which primarily consist of well equipment and tubular goods used in our oil and natural gas operations and critical spares related to our cogeneration power plants, are valued at weighted-average cost and are reviewed periodically for obsolescence. Finished goods include produced oil and natural gas liquids in storage, which are valued at the lower of cost or net realizable value. Inventory, by category, is as follows:

June 30,December 31,
20262025
(in millions)
Materials and supplies$102 $98 
Finished goods9 8 
Inventory
$111 $106 
Other current assets, net — Other current assets, net include the following:
June 30,December 31,
20262025
(in millions)
Net amounts due from joint interest partners(a)
$58 $56 
Fair value of commodity derivative contracts2 187 
Prepaid expenses40 38 
Income tax receivable59 52 
Other20 20 
Other current assets, net$179 $353 
(a)The amounts due from joint interest partners include $2 million of allowances for credit losses as of June 30, 2026 and December 31, 2025, respectively.

Other noncurrent assets — Other noncurrent assets include the following:
June 30,December 31,
20262025
(in millions)
Operating lease right-of-use assets$72 $83 
Deferred financing costs - Revolving Credit Facility17 20 
Emission reduction credits 11 11 
Fair value of commodity derivative contracts17 101 
Funded pension
103 97 
Postretirement plan
20 19 
Other
45 42 
Other noncurrent assets$285 $373 

Accrued liabilities — Accrued liabilities include the following:
June 30,December 31,
20262025
(in millions)
Compensation-related liabilities$108 $159 
Taxes other than on income101 105 
Asset retirement obligations - current portion
126 120 
Interest41 12 
Operating lease liability13 15 
Settlements and premiums due on commodity derivative contracts36 22 
Advanced payments
16 19 
Greenhouse gas liability
2 27 
Signal Hill offshore platform expense accrual
23 13 
Other53 64 
 Accrued liabilities$519 $556 
Other long-term liabilities — Other long-term liabilities include the following:

June 30,December 31,
20262025
(in millions)
Compensation-related liabilities$46 $48 
Postretirement and pension benefit plans53 57 
Operating lease liability53 61 
Contingent liability(a)
123 117 
Other24 29 
Other long-term liabilities$299 $312 
(a)    See Note 3 Investment in Unconsolidated Subsidiaries and Related Party Transactions for information on the contingent liability related to the Carbon TerraVault JV.


Other operating expenses, net — Other operating expenses, net include the following:

Three months ended
June 30,
Six months ended
June 30,
2026202520262025
(in millions)(in millions)
Carbon management expenses
$7 $14 $12 $32 
Transaction and integration costs
1 3 4 8 
Severance and termination costs
— 6 23 8 
Offshore platforms maintenance and abandonment costs
10 2 20 2 
Information technology infrastructure
4 — 6 — 
Litigation and settlement related expenses(a)
— 25 — 25 
Exploration expense
27 1 27 1 
All other11 14 22 22 
Other operating expenses, net$60 $65 $114 $98 
(a)See Part I, Item 1 – Financial Statements, Note 5 Lawsuits, Claims, Commitments and Contingencies for more information on a $25 million payment we made to CalGEM during the three and six months ended June 30, 2025.