v3.26.3
SEGMENT INFORMATION
 9 Months Ended
Sep. 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, develops services to capture, transport and permanently store CO2 for our customers. 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 and nine months ended September 30, 2026 and 2025.

Three months ended September 30, 2026
Oil and Natural GasCarbon ManagementTotal Reportable Segments
Corporate/Eliminations/Other
Total
(in millions)
Oil, natural gas and natural gas liquids sales$1,016 $— $1,016 $(14)$1,002 
Other revenues and income(a)
1 2 3 (584)(581)
Segment operating revenues$1,017 $2 $1,019 $(598)
Total operating revenues$421 
(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 September 30, 2026
Oil and Natural GasCarbon ManagementTotal Reportable Segments
Corporate/Eliminations/Other
Total
(in millions)
Segment operating revenues$1,017 $2 $1,019 $(598)$421 
Less:
Operating costs:
Energy operating costs130 — 130 (7)123 
Gas processing costs6 — 6 — 6 
Non-energy operating costs257 — 257 — 257 
General and administrative expenses13 — 13 76 89 
Depreciation, depletion and amortization128 2 130 7 137 
Taxes other than on income69 — 69 12 81 
Interest expense— 3 3 23 26 
Loss from investment in unconsolidated subsidiaries— 1 1 — 1 
Net gain on natural gas purchase derivatives— — — (1)(1)
Other non-operating income, net— — — (6)(6)
Costs related to marketing of purchased commodities— — — 25 25 
Electricity generation expenses— — — 11 11 
Other segment expenses(a)
54 10 64 36 100 
Segment profit or (loss)$360 $(14)$346 $(774)
Loss before income taxes$(428)
(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 include transportation costs from marketing activities and other operating expenses, net that are not allocated to a segment.

Three months ended September 30, 2025
Oil and Natural GasCarbon ManagementTotal Reportable Segments
Corporate/Eliminations/Other
Total
(in millions)
Oil, natural gas and natural gas liquids sales$726 $— $726 $(11)$715 
Other revenues and income(a)
2 — 2 138 140 
Segment operating revenues$728 $— $728 $127 
Total operating revenues$855 
(a)Other revenues and income include net loss from commodity derivatives, revenue from marketing of purchased commodities, electricity revenue and unallocated interest and other revenue.
Three months ended September 30, 2025
Oil and Natural GasCarbon ManagementTotal Reportable Segments
Corporate/Eliminations/Other
Total
(in millions)
Segment operating revenues$728 $— $728 $127 $855 
Less:
Operating costs:
Energy operating costs97 — 97 (5)92 
Gas processing costs6 — 6 — 6 
Non-energy operating costs218 — 218 — 218 
General and administrative expenses9 4 13 74 87 
Depreciation, depletion and amortization118 — 118 5 123 
Taxes other than on income57 — 57 13 70 
Interest expense— 3 3 22 25 
Loss from investment in unconsolidated subsidiaries— 2 2 — 2 
Net loss on natural gas purchase derivatives— — — 27 27 
Other non-operating income, net— — — (4)(4)
Costs related to marketing of purchased commodities— — — 44 44 
Electricity generation expenses— — — 11 11 
Other segment expenses(a)
41 12 53 26 79 
Segment profit or (loss)$182 $(21)$161 $(86)
Income before income taxes$75 
(a)Other segment expenses for our oil and natural gas segment include transportation costs, accretion expense, and other operating expenses, net, and net loss on asset divestitures. Other segment expenses for our carbon management segment primarily includes operating lease costs. Other segment expenses for Corporate/Eliminations/Other include transportation costs from marketing activities and other operating expenses, net that are not allocated to a segment.


Nine months ended September 30, 2026
Oil and Natural GasCarbon ManagementTotal Reportable Segments
Corporate/Eliminations/Other
Total
(in millions)
Oil, natural gas and natural gas liquids sales$2,990 $— $2,990 $(27)$2,963 
Other revenues and income(a)
10 3 13 (1,139)(1,126)
Segment operating revenues$3,000 $3 $3,003 $(1,166)
Total operating revenues$1,837 
(a)Other revenues and income for Corporate/Eliminations/Other include net loss from commodity derivatives, revenue from marketing of purchased commodities, electricity revenue, interest income and unallocated other revenue.
Nine months ended September 30, 2026
Oil and Natural GasCarbon ManagementTotal Reportable Segments
Corporate/Eliminations/Other
Total
(in millions)
Segment operating revenues $3,000 $3 $3,003 $(1,166)$1,837 
Less:
Operating costs:
Energy operating costs338 — 338 (18)320 
Gas processing costs17 — 17 — 17 
Non-energy operating costs761 — 761 — 761 
General and administrative expenses54 5 59 233 292 
Depreciation, depletion and amortization379 2 381 20 401 
Taxes other than on income189 — 189 25 214 
Interest expense— 9 9 74 83 
Loss from investment in unconsolidated subsidiaries— 4 4 1 5 
Net loss on natural gas purchase derivatives— — — 2828 
Loss on early extinguishment of debt
— — — 49 49 
Other non-operating income, net— — — (14)(14)
Costs related to marketing of purchased commodities
— — — 63 63 
Electricity generation expenses
— — — 26 26 
Other segment expenses(a)
191 22 213 109 322 
Segment profit or (loss)$1,071 $(39)$1,032 $(1,762)
Loss before income taxes$(730)
(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 and compensation-related expenses. Other segment expenses for Corporate/Eliminations/Other include transportation costs from marketing activities and other operating expenses, net that are not allocated to a segment.
Nine months ended September 30, 2025
Oil and Natural GasCarbon ManagementTotal Reportable Segments
Corporate/Eliminations/Other
Total
(in millions)
Oil, natural gas and natural gas liquids sales$2,265 $— $2,265 $(34)$2,231 
Other revenues and income(a)
7 — 7 507 514 
Segment operating revenues$2,272 $— $2,272 $473 
Total operating revenues$2,745 
(a)Other revenues and income include net gain from commodity derivatives, revenue from marketing of purchased commodities, electricity revenue, interest income and unallocated other revenue.
Nine months ended September 30, 2025
Oil and Natural GasCarbon ManagementTotal Reportable Segments
Corporate/Eliminations/Other
Total
(in millions)
Segment operating revenues$2,272 $— $2,272 $473 $2,745 
Less:
Operating costs:
Energy operating costs293 — 293 (20)273 
Gas processing costs15 — 15 — 15 
Non-energy operating costs639 — 639 — 639 
General and administrative expenses30 10 40 198 238 
Depreciation, depletion and amortization365 — 365 17 382 
Taxes other than on income157 — 157 30 187 
Interest expense— 8 8 69 77 
Loss (gain) from investment in unconsolidated subsidiaries— 4 4 (1)3 
Net loss on natural gas purchase derivatives— — — 24 24 
Loss on early extinguishment of debt
— — — 1 1 
Other non-operating income, net— — — (9)(9)
Costs related to marketing of purchased commodities— — — 135 135 
Electricity generation expenses
— — — 26 26 
Other segment expenses(a)
131 44 175 100 275 
Segment profit or (loss)$642 $(66)$576 $(97)
Income before income taxes$479 
(a)Other segment expenses for our oil and natural gas segment include transportation costs, accretion expense, and other operating expenses, net, and net loss on asset divestitures. Other segment expenses for our carbon management segment primarily includes operating lease costs. Other segment expenses for Corporate/Eliminations/Other include 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 nine months ended September 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 September 30, 2026$155 $1 $2 $158 
Three months ended September 30, 2025$72 $15 $4 $91 

Oil and Natural Gas
Carbon Management
Corporate and Other
Total
(in millions)
Nine months ended September 30, 2026$416 $16 $6 $438 
Nine months ended September 30, 2025$165 $22 $15 $202