Revenue from customers is recognized when obligations under the terms of a contract are satisfied; this generally occurs with the delivery of oil, NGL, gas or services such as transportation. Revenue from customers is measured as the amount of consideration the Company expects to receive in exchange for the delivery of goods or services. Contracts may last from one month to one year or more and may have renewal terms that extend indefinitely at the option of either party. Price is typically based on market indexes. Volumes fluctuate due to production and, in certain cases, customer demand and transportation availability.
The Company does not incur significant costs to obtain contracts. Incidental items that are immaterial in the context of the contract are recognized as expenses. The Company does not typically receive payment in advance of satisfying its obligations under the terms of its sales contracts with customers; therefore, liabilities related to such payment are immaterial to the Company. The Company does not disclose consideration for remaining performance obligations with an original expected duration of one year or less or for variable consideration related to unsatisfied performance obligations.
OIL AND GAS SEGMENT
Revenue from oil and gas production is recognized when production is delivered and control passes to the customer. Revenues from the production of oil and gas properties in which the Company has an interest with other producers are recognized on the basis of the Company’s net revenue interest.
MIDSTREAM AND MARKETING SEGMENT
Revenue from pipeline and gas processing is recognized upon the completion of the transportation or processing service. Revenue from power sales is recognized upon delivery. Net marketing revenue is recognized upon completion of contract terms that are a prerequisite to payment and upon title transfer for physical deliveries. Unless the normal purchases and sales exception has been elected, net marketing revenue is classified as a derivative, reported on a net basis and recorded at fair value. Changes in fair value are reflected in net sales and excluded from revenue from customers in the table below.
DISAGGREGATION OF REVENUE FROM CONTRACTS WITH CUSTOMERS
The following table reconciles revenue from customers to total net sales for the years ended December 31:
| | | | | | | | | | | |
| millions | 2025 | 2024 | 2023 |
| Revenue from customers | $ | 21,569 | | $ | 22,710 | | $ | 23,230 | |
| All other revenues | 24 | | (691) | | (74) | |
| Net sales | $ | 21,593 | | $ | 22,019 | | $ | 23,156 | |
The table below presents the Company’s revenue from customers by segment, product and geographical area. The oil and gas segment typically sells its oil, NGL and natural gas at the lease or concession area. Excluding net marketing revenue, midstream and marketing segment revenues are shown by the location of sale.
| | | | | | | | | | | | | | |
| millions | United States | International | Eliminations | Total |
| Year ended December 31, 2025 | | | | |
| Oil and gas | | | | |
| Oil | $ | 14,459 | | $ | 2,715 | | $ | — | | $ | 17,174 | |
| NGL | 1,897 | | 352 | | — | | 2,249 | |
| Gas | 1,017 | | 352 | | — | | 1,369 | |
| Other | 105 | | 5 | | — | | 110 | |
| Segment total | $ | 17,478 | | $ | 3,424 | | $ | — | | $ | 20,902 | |
| Midstream and marketing | $ | 546 | | $ | 709 | | $ | — | | $ | 1,255 | |
| | | | |
| | | | |
| | | | |
| | | | |
| Eliminations | $ | — | | $ | — | | $ | (588) | | $ | (588) | |
| Consolidated | $ | 18,024 | | $ | 4,133 | | $ | (588) | | $ | 21,569 | |
| | | | |
| Year ended December 31, 2024 | | | | |
| Oil and gas | | | | |
| Oil | $ | 15,604 | | $ | 2,940 | | $ | — | | $ | 18,544 | |
| NGL | 1,865 | | 390 | | — | | 2,255 | |
| Gas | 514 | | 361 | | — | | 875 | |
| Other | 29 | | 2 | | — | | 31 | |
| Segment total | $ | 18,012 | | $ | 3,693 | | $ | — | | $ | 21,705 | |
| Midstream and marketing | $ | 1,164 | | $ | 413 | | $ | — | | $ | 1,577 | |
| Eliminations | $ | — | | $ | — | | $ | (572) | | $ | (572) | |
| Consolidated | $ | 19,176 | | $ | 4,106 | | $ | (572) | | $ | 22,710 | |
| | | | |
| Year ended December 31, 2023 | | | | |
| Oil and gas | | | | |
| Oil | $ | 14,893 | | $ | 3,057 | | $ | — | | $ | 17,950 | |
| NGL | 1,619 | | 372 | | — | | 1,991 | |
| Gas | 970 | | 335 | | — | | 1,305 | |
| Other | 36 | | 2 | | — | | 38 | |
| Segment total | $ | 17,518 | | $ | 3,766 | | $ | — | | $ | 21,284 | |
| Midstream and marketing | $ | 2,098 | | $ | 409 | | $ | — | | $ | 2,507 | |
| Eliminations | $ | — | | $ | — | | $ | (561) | | $ | (561) | |
| Consolidated | $ | 19,616 | | $ | 4,175 | | $ | (561) | | $ | 23,230 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.