0001609253-22-000010 | 10-K | XBRL Viewer | California Resources Corp

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Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
CURRENT ASSETS
Cash	$ 305	$ 28
Trade receivables	245	177
Inventories	60	61
Assets held for sale	22	0
Other current assets	121	63
Total current assets	753	329
PROPERTY, PLANT AND EQUIPMENT	2,845	2,689
Accumulated depreciation, depletion and amortization	(246)	(34)
Total property, plant and equipment, net	2,599	2,655
DEFERRED TAX ASSET	396	0
OTHER NONCURRENT ASSETS	98	90
TOTAL ASSETS	3,846	3,074
CURRENT LIABILITIES
Accounts payable	266	212
Liabilities associated with assets held for sale	21	0
Fair value of derivative contracts	270	50
Accrued liabilities	297	211
Total current liabilities	854	473
NONCURRENT LIABILITIES
Long-term debt, net	589	597
Fair value of derivative contracts	132	6
Asset retirement obligations	438	547
Other long-term liabilities	145	269
STOCKHOLDERS' EQUITY
Preferred stock (20 million shares authorized at $0.01 par value); no shares outstanding at December 31, 2021 or 2020	0	0
Common stock (200 million shares authorized at $0.01 par value); (83,389,210 and 83,319,660 shares issued; 79,299,222 and 83,319,660 shares outstanding at December 31, 2021 and 2020, respectively)	1	1
Treasury stock (4,089,988 shares held at cost at December 31, 2021 and no shares held at December 31, 2020)	(148)	0
Additional paid-in capital	1,288	1,268
Retained earnings (accumulated deficit)	475	(123)
Accumulated other comprehensive income (loss)	72	(8)
Total equity attributable to common stock	1,688	1,138
Equity attributable to noncontrolling interests	0	44
Total stockholders' equity	1,688	1,182
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 3,846	$ 3,074

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Preferred stock, authorized shares (in shares)	20,000,000	20,000,000
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, outstanding shares (in shares)	0	0
Common stock, authorized shares (in shares)	200,000,000	200,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, issued shares (in shares)	83,389,210	83,319,660
Common stock, outstanding shares (in shares)	79,299,222	83,319,660
Treasury stock (in shares)	4,089,988	0

Consolidated Statements of Operations - USD ($) shares in Millions	2 Months Ended	10 Months Ended	12 Months Ended
	Dec. 31, 2020	Oct. 31, 2020	Dec. 31, 2021	Dec. 31, 2019
REVENUES
Oil, natural gas and NGL sales	$ 237,000,000	$ 1,092,000,000	$ 2,048,000,000	$ 2,270,000,000
Net (loss) gain from commodity derivatives	(141,000,000)	91,000,000	(676,000,000)	(59,000,000)
Total operating revenues	152,000,000	1,407,000,000	1,889,000,000	2,634,000,000
OPERATING EXPENSES
Operating costs	114,000,000	511,000,000	705,000,000	895,000,000
General and administrative expenses	40,000,000	212,000,000	200,000,000	290,000,000
Depreciation, depletion and amortization	34,000,000	328,000,000	213,000,000	471,000,000
Asset impairments	0	1,736,000,000	28,000,000	0
Taxes other than on income	10,000,000	134,000,000	145,000,000	157,000,000
Exploration expense	1,000,000	10,000,000	7,000,000	29,000,000
Accretion expense	8,000,000	33,000,000	50,000,000	36,000,000
Other operating expenses, net	9,000,000	56,000,000	29,000,000	18,000,000
Total operating expenses	258,000,000	3,186,000,000	1,720,000,000	2,205,000,000
Gain on asset divestitures	0	0	124,000,000	0
OPERATING INCOME (LOSS)	(106,000,000)	(1,779,000,000)	293,000,000	429,000,000
NON-OPERATING (EXPENSES) INCOME
Reorganization items, net	(3,000,000)	4,060,000,000	(6,000,000)	0
Interest and debt expense, net	(11,000,000)	(206,000,000)	(54,000,000)	(383,000,000)
Net (loss) gain on early extinguishment of debt	0	5,000,000	(2,000,000)	126,000,000
Other non-operating expenses, net	(5,000,000)	(84,000,000)	(2,000,000)	(72,000,000)
INCOME (LOSS) BEFORE INCOME TAXES	(125,000,000)	1,996,000,000	229,000,000	100,000,000
Income tax benefit (provision)	0	0	396,000,000	(1,000,000)
NET INCOME (LOSS)	(125,000,000)	1,996,000,000	625,000,000	99,000,000
NET (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS
Mezzanine equity	0	(94,000,000)	0	(117,000,000)
Stockholders' equity	2,000,000	(13,000,000)	(13,000,000)	(10,000,000)
Net (income) loss attributable to noncontrolling interests	2,000,000	(107,000,000)	(13,000,000)	(127,000,000)
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK	$ (123,000,000)	$ 1,889,000,000	$ 612,000,000	$ (28,000,000)
Net income (loss) attributable to common stock per share
Basic (in dollars per share)	$ (1.48)	$ 40.59	$ 7.46	$ (0.57)
Diluted (in dollars per share)	$ (1.48)	$ 40.42	$ 7.37	$ (0.57)
Weighted-average common shares outstanding
Basic (in shares)	83.3	49.4	82.0	49.0
Diluted (in shares)	83.3	49.6	83.0	49.0
Sales of purchased natural gas
REVENUES
Operating revenues not from contract with customer	$ 38,000,000	$ 124,000,000	$ 312,000,000	$ 286,000,000
OPERATING EXPENSES
Cost of sales	24,000,000	78,000,000	196,000,000	201,000,000
Electricity sales
REVENUES
Operating revenues not from contract with customer	15,000,000	86,000,000	172,000,000	112,000,000
Other revenue
REVENUES
Operating revenues not from contract with customer	3,000,000	14,000,000	33,000,000	25,000,000
Electricity generation expenses
OPERATING EXPENSES
Cost of sales	10,000,000	53,000,000	96,000,000	68,000,000
Transportation costs
OPERATING EXPENSES
Cost of sales	$ 8,000,000	$ 35,000,000	$ 51,000,000	$ 40,000,000

Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Millions

2 Months Ended

10 Months Ended

12 Months Ended

Dec. 31, 2020

Oct. 31, 2020

Dec. 31, 2021

Dec. 31, 2019

Statement of Comprehensive Income [Abstract]

Net income (loss)

$ (125)

$ 1,996

$ 625

$ 99

Net (income) loss attributable to noncontrolling interests

(107)

(13)

(127)

Other comprehensive income (loss):

Actuarial gains (losses) associated with pension and postretirement plans

^[1]

(8)

(2)

(24)

Prior service cost credit

^[1]

Amortization of prior service cost credit included in net periodic benefit cost

(1)

Comprehensive income (loss) attributable to common stock

$ (131)

$ 1,889

$ 692

$ (45)

[1]	No associated tax has been recorded for the components of other comprehensive (loss) income for 2021, 2020 or 2019. See Note 12 Pension and Postretirement Benefit Plans for additional information on the components of other comprehensive income related to our defined benefit plans.

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

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+ Details

Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions	2 Months Ended	10 Months Ended	12 Months Ended
	Dec. 31, 2020	Oct. 31, 2020	Dec. 31, 2021	Dec. 31, 2019
Statement of Comprehensive Income [Abstract]
Actuarial (losses) gains associated with pension and postretirement plans, tax	$ 0	$ 0	$ 0	$ 0
Reclassification of realized losses on pension and postretirement to income, tax	$ 0	$ 0	$ 0	$ 0

Consolidated Statements of Changes in Stockholders' Equity (Deficit) - USD ($)
$ in Millions

Total

Junior DIP Facility

ECR

Creditors

Subscription Rights

Common Stock

Subscription Rights

Treasury Stock

Additional Paid-in Capital

Junior DIP Facility

Additional Paid-in Capital

ECR

Additional Paid-in Capital

Creditors

Additional Paid-in Capital

Subscription Rights

Accumulated (Deficit) Earnings

Accumulated Other Comprehensive (Loss) Income

Equity Attributable to Common Stock

Junior DIP Facility

Equity Attributable to Common Stock

ECR

Equity Attributable to Common Stock

Creditors

Equity Attributable to Common Stock

Subscription Rights

Equity Attributable to Noncontrolling Interests

Beginning balance at Dec. 31, 2018

$ (247)

$ 0

$ 4,987

$ (5,342)

$ (6)

$ (361)

$ 114

Increase (decrease) in Equity

Net (loss) income

(18)

(28)

Contribution from noncontrolling interest holder, net

Distributions to noncontrolling interest holders

(80)

Share-based compensation, net

Other comprehensive income (loss)

(17)

Warrant issued

Ending balance at Dec. 31, 2019

(296)

5,004

(5,370)

(23)

(389)

Increase (decrease) in Equity

Net (loss) income

1,902

1,889

Distributions to noncontrolling interest holders

(37)

Share-based compensation, net

Issuance of common stock

$ 12

$ 261

$ 408

$ 446

$ 1

$ 12

$ 261

$ 408

$ 445

$ 12

$ 261

$ 408

$ 446

Warrant issued

Modification of noncontrolling interest

138

Gain on acquisition of noncontrolling interest

128

Issuance of Subscription Rights to creditors in connection with the Plan

Fair value adjustment related to noncontrolling interest

Elimination of Predecessor equity

(1,720)

(5,224)

3,481

(1,720)

Ending balance at Oct. 31, 2020

1,345

1,268

1,269

Increase (decrease) in Equity

Net (loss) income

(125)

(123)

(2)

Distributions to noncontrolling interest holders

(30)

Other comprehensive income (loss)

(8)

Ending balance at Dec. 31, 2020

1,182

1,268

(123)

(8)

1,138

Increase (decrease) in Equity

Net (loss) income

625

612

Distributions to noncontrolling interest holders

(50)

Cash dividends ($0.17 per share)

(14)

Redemption of noncontrolling interest

^[1]

(7)

Share-based compensation, net

Repurchases of common stock

(148)

Issuance of common stock

Other

(2)

Other comprehensive income (loss)

Ending balance at Dec. 31, 2021

$ 1,688

$ 1

$ (148)

$ 1,288

$ 475

$ 72

$ 1,688

$ 0

[1]

The remaining balance in equity attributable to noncontrolling interest was reallocated to additional paid-in capital of the parent upon redemption of ECR's preferred member interest in the BSP JV. No gain or loss was recognized on the equity transaction. See Note 14 Chapter 11 Proceedings for more information.

Consolidated Statements of Changes in Stockholders' Equity (Deficit) (Parenthetical) - $ / shares		12 Months Ended
	Nov. 11, 2021	Dec. 31, 2021
Statement of Stockholders' Equity [Abstract]
Dividends declared, common stock (in dollars per share)	$ 0.17	$ 0.17

Consolidated Statements of Cash Flows - USD ($) $ in Millions	2 Months Ended	10 Months Ended	12 Months Ended
	Dec. 31, 2020	Oct. 31, 2020	Dec. 31, 2021	Dec. 31, 2019
CASH FLOW FROM OPERATING ACTIVITIES
Net income (loss)	$ (125)	$ 1,996	$ 625	$ 99
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization	34	328	213	471
Deferred income tax benefit	0	0	(396)	0
Asset impairments	0	1,736	28	0
Net loss (gain) from commodity derivatives	141	(91)	676	59
Net settlement (payments) proceeds from commodity derivatives	(1)	108	(319)	111
Net loss (gain) on early extinguishment of debt	0	(5)	2	(126)
Amortization of deferred gain	0	(39)	0	(70)
Gain on asset divestitures	0	0	(124)	0
Other non-cash charges to income, net	27	60	62	131
Reorganization items, net (non-cash)	0	(4,128)	0	0
Reorganization items, net (debtor-in-possession financing costs)	0	25	0	0
Dry hole expenses	0	0	0	7
Changes in operating assets and liabilities, net:
(Increase) decrease in trade receivables	(28)	128	(68)	22
Decrease (increase) in inventories	1	(1)	0	0
(Increase) decrease in other current assets	6	2	(47)	(1)
Increase (decrease) in accounts payable and accrued liabilities	(67)	(1)	8	(27)
Net cash provided (used) by operating activities	(12)	118	660	676
CASH FLOW FROM INVESTING ACTIVITIES
Capital investments	(7)	(40)	(194)	(455)
Changes in accrued capital investments	(1)	(24)	20	(85)
Proceeds from asset divestitures	0	41	67	164
Acquisitions	0	0	(52)	(6)
Other	1	(7)	(2)	(12)
Net cash used in investing activities	(7)	(30)	(161)	(394)
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from debtor-in-possession facilities	0	802	0	0
Repayments of debtor-in-possession facilities	0	(802)	0	0
Proceeds from Second Lien Term Loan	0	200	0	0
Debtor-in-possession financing costs	0	(25)	0	0
Proceeds from Senior Notes	0	0	600	0
Debt repurchases	0	(3)	0	(156)
Debt issuance costs	0	(20)	(13)	(2)
Contributions from noncontrolling interest holders	0	0	0	49
Distributions to noncontrolling interest holders	(30)	(104)	(50)	(151)
Repurchases of common stock	0	0	(148)	0
Common stock dividends	0	0	(14)	0
Acquisition of noncontrolling interest in connection with the Plan	0	(2)	0	0
Issuance of common stock	0	446	2	4
Shares cancelled for taxes and other	0	(1)	0	(3)
Net cash (used) provided by financing activities	(156)	98	(222)	(282)
Increase (decrease) in cash	(175)	186	277	0
Cash—beginning of period	203	17	28	17
Cash—end of period	28	203	305	17
2014 Revolving Credit Facility
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from lines of credit	0	797	0	2,330
Repayments of lines of credit	0	(1,315)	0	(2,353)
Revolving Credit Facility
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from lines of credit	82	225	16	0
Repayments of lines of credit	(208)	0	(115)	0
Second Lien Term Loan
CASH FLOW FROM FINANCING ACTIVITIES
Repayment of 2020 Senior Notes	0	0	(200)	0
EHP Notes
CASH FLOW FROM FINANCING ACTIVITIES
Repayment of 2020 Senior Notes	0	0	(300)	0
5% Senior Notes due 2020
CASH FLOW FROM FINANCING ACTIVITIES
Repayment of 2020 Senior Notes	$ 0	$ (100)	$ 0	$ 0

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER

12 Months Ended

Dec. 31, 2021

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER

Nature of Business

We are an independent oil and natural gas exploration and production company operating properties exclusively within California.

Except when the context otherwise requires or where otherwise indicated, all references to ‘‘CRC,’’ the ‘‘Company,’’ ‘‘we,’’ ‘‘us’’ and ‘‘our’’ refer to California Resources Corporation and its subsidiaries.

Basis of Presentation

We have prepared this report in accordance with United States (U.S.) generally accepted accounting principles (U.S. GAAP) and the rules and regulations of the U.S. Securities and Exchange Commission applicable to annual financial information.

All financial information presented consists of our consolidated results of operations, financial position and cash flows. We have eliminated significant intercompany transactions and balances. We account for our share of oil and natural gas producing activities, in which we have a direct working interest, by reporting our proportionate share of assets, liabilities, revenues, costs and cash flows within the relevant lines on our consolidated financial statements. We proportionately consolidate our share of revenue and costs related to our development joint ventures with Alpine Energy Capital, LLC (Alpine) and Royale Energy, Inc. (Royale). In October 2021, the development agreement with Alpine was terminated. The termination does not affect the 90% working interest earned by Alpine in wells previously drilled. In December 2021, the development joint venture with Royale was mutually terminated by both parties and our operating results include activity through the termination date. Our consolidated results reflect only our working interest share in the productive wells in our development joint venture with Alpine.

We qualified for and adopted fresh start accounting upon emergence from Chapter 11 in October 2020 at which point we became a new entity for financial reporting purposes. We adopted an accounting convenience date of October 31, 2020 for the application of fresh start accounting.

As a result of the application of fresh start accounting and the effects of the implementation of our Plan of Reorganization, the financial statements after October 31, 2020 may not be comparable to the financial statements prior to that date. Accordingly, “black-line” financial statements are presented to distinguish between the Predecessor and Successor companies. References to "Predecessor” refer to the Company for periods ended on or prior to October 31, 2020 and references to “Successor” refer to the Company for periods subsequent to October 31, 2020. See Note 14 Chapter 11 Proceedings and Note 15 Fresh Start Accounting for additional information on our bankruptcy proceedings and the impact of fresh start accounting on our consolidated financial statements.

Use of Estimates

The process of preparing financial statements in conformity with U.S. GAAP requires management to select appropriate accounting policies and make informed estimates and judgments regarding certain types of financial statement balances and disclosures. Such estimates primarily relate to unsettled transactions and events as of the date of the financial statements and judgments on expected outcomes as well as the materiality of transactions and balances. Changes in facts and circumstances or discovery of new information relating to such transactions and events may result in revised estimates and judgments. Further, actual results may differ from estimates upon settlement. Management believes that these estimates and judgments provide a reasonable basis for the fair presentation of our consolidated financial statements.

Risks and Uncertainties

Our revenue, profitability and future growth are substantially dependent upon prevailing and future prices for oil and natural gas, which can be volatile and dependent on factors beyond our control including: global production inventories, available storage and transportation capacities, government regulation and economic conditions. Additionally, the Coronavirus Disease 2019 (COVID-19) pandemic continues to create price volatility for the oil and gas industry. The ongoing impacts from COVID-19 on our financial position, results of operations and cash flows will depend on uncertain factors, including future developments that are beyond our control, vaccine availability and acceptance by individuals, resurgence of the pandemic or further mutations of the virus and pandemic restrictions being reinstated, among other things.

Concentration of Customers

We sell crude oil, natural gas and NGLs to marketers, California refineries and other customers that have access to transportation and storage facilities. In light of the ongoing energy deficit in California and strong demand for native crude oil production, we do not believe that the loss of any single customer would have a material adverse effect on our consolidated financial statements taken as a whole.

For the year ended December 31, 2021, three California refineries each accounted for at least 10%, and collectively accounted for 51%, of our sales (before the effects of hedging). For the 2020 Successor period, three California refineries each accounted for at least 10%, and collectively accounted for 50%, of our sales (before the effects of hedging). For the 2020 Predecessor period and for the year ended December 31, 2019, two California refineries, each accounted for at least 10%, and collectively accounted for 46%, of our sales (before the effects of hedging).

Recently Adopted Accounting and Disclosure Changes

We adopted new accounting guidance on current expected credit losses on January 1, 2020, using a modified retrospective approach to the first period in which the guidance was effective. The new rules changed the measurement of credit losses for financial assets and certain other instruments, including trade and other receivables with a right to receive cash, and require the use of a new forward-looking expected loss model that results in the earlier recognition of an allowance for losses. The adoption of these new rules did not have a significant impact on our consolidated financial statements.

Significant Accounting Policies

Restructuring under Chapter 11 of the Bankruptcy Code and Workforce Reductions

On July 15, 2020, we filed voluntary petitions for relief under Chapter 11 of Title 11 of the Bankruptcy Code (Chapter 11 Cases) in the United States Bankruptcy Court for the Southern District of Texas, Houston Division (Bankruptcy Court). On October 13, 2020, the Bankruptcy Court confirmed our joint plan of reorganization (the Plan) and we subsequently emerged from Chapter 11 proceedings on October 27, 2020 (Effective Date). See Note 14 Chapter 11 Proceedings for more information on our voluntary reorganization. We qualified for fresh start accounting and allocated the reorganization value to our individual assets and liabilities based on their estimated relative fair value. Our reorganization value was less than the fair value of identifiable assets of the emerging entity and we allocated the difference to nonfinancial assets on a relative fair value basis. Our valuation approach for determining the estimated fair value of our significant assets acquired and liabilities assumed is discussed in Note 15 Fresh Start Accounting.

In 2021, we reduced the size of our management team and realigned several functions, which resulted in headcount and cost reductions. We recorded a restructuring charge of $15 million during the year ended December 31, 2021. In 2020, we reduced our workforce in response to economic conditions, resulting in a restructuring charge of $10 million in the Predecessor period ended October 31, 2020 and $5 million in the Successor period ended December 31, 2020. These charges are included in other operating expenses, net on our consolidated statement of operations.

Property, Plant and Equipment (PP&E)

We use the successful efforts method to account for our oil and natural gas properties. Under this method, we capitalize costs of acquiring properties, costs of drilling successful exploration wells and development costs. The costs of exploratory wells, including permitting, land preparation and drilling costs, are initially capitalized pending a determination of whether we find proved reserves. If we find proved reserves, the costs of exploratory wells remain capitalized. Otherwise, we charge the costs of the related wells to expense. In cases where we cannot determine whether we have found proved reserves at the completion of exploration drilling, we conduct additional testing and evaluation of the wells. We generally expense the costs of such exploratory wells if we do not find proved reserves within a one-year period after initial drilling has been completed.

Proved Reserves – Proved reserves are those quantities of oil and natural gas that, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible—from a specific date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulations—prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation. We have no proved oil and natural gas reserves for which the determination of economic producibility is subject to the completion of major capital investments.

Several factors could change our proved oil and natural gas reserves. For example, for long-lived properties, higher commodity prices typically result in additional reserves becoming economic and lower commodity prices may lead to existing reserves becoming uneconomic. Estimation of future production and development costs is also subject to change partially due to factors beyond our control, such as energy costs and inflation or deflation of oil field service costs. These factors, in turn, could lead to changes in the quantity of proved reserves. Additional factors that could result in a change of proved reserves include production decline rates and operating performance differing from those estimated when the proved reserves were initially recorded as well as availability of capital to implement the development activities contemplated in the reserves estimates and changes in management's plans with respect to such development activities.

We perform impairment tests with respect to proved properties when product prices decline other than temporarily, reserves estimates change significantly, other significant events occur or management's plans change with respect to these properties in a manner that may impact our ability to realize the recorded asset amounts. Impairment tests incorporate a number of assumptions involving expectations of undiscounted future cash flows, which can change significantly over time. These assumptions include estimates of future product prices, which we base on forward price curves and, when applicable, contractual prices, estimates of oil and natural gas reserves and estimates of future expected operating and development costs. Any impairment loss would be calculated as the excess of the asset's net book value over its estimated fair value. We recognize any impairment loss on proved properties by adjusting the carrying amount of the asset.

Unproved Properties – When we make acquisitions that include unproved properties, we assign values based on estimated reserves that we believe will ultimately be proved. As exploration and development work progresses and if reserves are proved, we transfer the book value from unproved to proved based on the initially determined rate per BOE. If the exploration and development work were to be unsuccessful, or management decided not to pursue development of these properties as a result of lower commodity prices, higher development and operating costs, contractual conditions or other factors, the capitalized costs of the related properties would be expensed.

Impairments of unproved properties are primarily based on qualitative factors including intent of property development, lease term and recent development activity. The timing of impairments on unproved properties, if warranted, depends upon management's plans, the nature, timing and extent of future exploration and development activities and their results. We recognize any impairment loss on unproved properties by providing a valuation allowance.

Depreciation, Depletion and Amortization – We determine depreciation, depletion and amortization (DD&A) of oil and natural gas producing properties by the unit-of-production method. Our unproved reserves are not subject to DD&A until they are classified as proved properties. We amortize acquisition costs over total proved reserves, and capitalized development and successful exploration costs over proved developed reserves. Our gas and power plant assets are depreciated over the estimated useful lives of the assets, using the straight-line method, with expected initial useful lives of the assets of up to 30 years. We depreciated other property and equipment using the straight-line method based on expected useful lives of the individual assets or group of assets. The useful lives typically include 25 years for a commercial office building we own in Bakersfield, California and include ranges of 4-10 years for leasehold improvements, 1-4 years for software and telecommunications equipment and up to 5 years for computer hardware.

We expense annual lease rentals, the costs of injection used in production and exploration, and geological, geophysical and seismic costs as incurred. Costs of maintenance and repairs are expensed as incurred, except that the costs of replacements that expand capacity or add proven oil and natural gas reserves are capitalized.

Fair Value Measurements

Our assets and liabilities measured at fair value are categorized in a three-level fair-value hierarchy, based on the inputs to the valuation techniques:

Level 1—using quoted prices in active markets for the assets or liabilities;

Level 2—using observable inputs other than quoted prices for the assets or liabilities; and

Level 3—using unobservable inputs.

Transfers between levels, if any, are recognized at the end of each reporting period. We apply the market approach for certain recurring fair value measurements, maximize our use of observable inputs and minimize use of unobservable inputs. We generally use an income approach to measure fair value when observable inputs are unavailable. This approach utilizes management's judgments regarding expectations of projected cash flows and discount rates.

Commodity derivatives are carried at fair value. We utilize the mid-point between bid and ask prices for valuing these instruments. Our commodity derivatives comprise over-the-counter bilateral financial commodity contracts, which are generally valued using industry-standard models that consider various inputs, including quoted forward prices for commodities, time value, volatility factors, credit risk and current market and contracted prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these inputs are observable data or are supported by observable prices based on transactions executed in the marketplace. We classify these measurements as Level 2. Commodity derivatives are the most significant items on our consolidated balance sheets affected by recurring fair value measurements.

Our property, plant and equipment (PP&E) may be written down to fair value if we determine that there has been an impairment. The fair value is determined as of the date of the assessment generally using discounted cash flow models based on management’s expectations for the future. Inputs include estimates of future production, prices based on commodity forward price curves, inclusive of market differentials, as of the date of the estimate, estimated future operating and development costs and a risk-adjusted discount rate.

The carrying amounts of cash and other on-balance sheet financial instruments, other than fixed-rate debt, approximate fair value.

Revenue Recognition

We derive substantially all of our revenue from sales of oil, natural gas and NGLs and associated hedging activities, with the remaining revenue generated from sales of electricity and trading activities related to storage and managing excess pipeline capacity. Revenues are recognized when control of promised goods is transferred to our customers, in an amount that reflects the consideration we expect to receive in exchange for those goods.

Commodity sales contracts — Disaggregated revenue for sales of oil, natural gas and natural gas liquids (NGLs) to customers includes the following:


	Successor				Predecessor
	Year ended December 31,		November 1, 2020 - December 31, 2020		January 1, 2020 - October 31, 2020		Year ended December 31,
(in millions)	2021						2019

Oil	$	1,555	$	176	$	874	$	1,884
NGLs	250		29		106		179
Natural gas	243		32		112		207
Oil, natural gas and NGL sales	$	2,048	$	237	$	1,092	$	2,270

See Note 13 Revenue Recognition for more information on our revenue from contracts with customers.

Allowance for Credit Losses

Our receivables from customers relate to sales of our commodity products, trading activities and joint interest billings. Credit exposure for each customer is monitored for outstanding balances and current activity. We actively manage our credit risk by selecting counterparties that we believe to be financially sound and continue to monitor their financial health. Concentration of credit risk is regularly reviewed to ensure that counterparty credit risk is adequately diversified. We believe exposure to counterparty credit-related losses at December 31, 2021 was not material and losses associated with counterparty credit risk have been insignificant for all periods presented.

Inventories

Materials and supplies, which primarily consist of well equipment and tubular goods used in our oil and natural gas operations, are valued at weighted-average cost and are reviewed periodically for obsolescence. Finished goods predominantly comprise oil and natural gas liquids (NGLs), which are valued at the lower of cost or net realizable value. Inventories, by category, are as follows:


	Successor		Predecessor
(in millions)	2021		2020
Materials and supplies	$	54	$	58
Finished goods	6		3
Total	$	60	$	61

Derivative Instruments

The fair value of our derivative contracts are netted when a legal right of offset exists with the same counterparty with an intent to offset. Since we did not apply hedge accounting to our commodity derivatives for any of the periods presented, we recognized fair value adjustments, on a net basis, in our consolidated statements of operations. Unless otherwise indicated, we use the term "hedge" to describe derivative instruments that are designed to achieve our hedging program goals, even though they are not accounted for as cash-flow or fair-value hedges.

Stock-Based Incentive Plans

The shares issuable under our long-term incentive plan were authorized by the Bankruptcy Court and the terms of a new long-term incentive plan were approved by our new board of directors in January 2021. In accordance with our new long-term incentive plan, we reserved 9,257,740 shares of common stock (subject to adjustment) for future issuances to certain executives, employees and non-employee directors that are more fully described in Note 9 Stock-Based Compensation.

Earnings Per Share

Basic earnings (loss) per share is calculated as net income (loss) divided by the weighted average number of our common shares outstanding during the period. Diluted earnings (loss) per share is calculated by dividing net income (loss) by the weighted average number of our common shares outstanding including the effect of dilutive potential common shares. We compute basic and diluted earnings per share (EPS) using the two-class method required for participating securities, when applicable, and the treasury stock method when participating securities are not in place. Certain restricted and performance stock awards are considered participating securities when such shares have non-forfeitable dividend rights, which participate at the same rate as common stock.

Under the two-class method, net income allocated to participating securities is subtracted from net income attributable to common stock in determining net income available to common stockholders. In loss periods, no allocation is made to participating securities because the participating securities do not share in losses.

Asset Retirement Obligations

We recognize the fair value of asset retirement obligations (ARO) in the period in which a determination is made that a legal obligation exists to dismantle an asset and reclaim or remediate the property at the end of its useful life and the cost of the obligation can be reasonably estimated. The fair value of the retirement obligation is based on future retirement cost estimates and incorporates many assumptions such as time of abandonment, current regulatory requirements, technological changes, future inflation rates and a risk-adjusted discount rate. When the liability is initially recorded, we capitalize the cost by increasing the related PP&E balances. If the estimated future cost or timing of cash flow changes, we record an adjustment to both the ARO and PP&E. Over time the liability is increased, and expense is recognized for accretion, and the capitalized cost is recovered over either the useful life of our facilities or the unit-of-production method for our minerals.

At certain of our facilities, we have identified ARO that are related mainly to plant and field decommissioning, including plugging and abandonment of wells. In certain cases, we do not know or cannot estimate when we would perform the ARO work and, therefore, we cannot reasonably estimate the fair value of these liabilities. We will recognize ARO in the periods in which sufficient information becomes available to reasonably estimate their fair values. Additionally, for certain plants, we do not have a legal obligation to decommission them and, accordingly, we have not recorded a liability.

The following table presents a rollforward of our ARO.


	Successor				Predecessor
	Year ended December 31,		November 1, 2020 - December 31, 2020		January 1, 2020 - October 31, 2020
(in millions)	2021
Beginning balance	$	597	$	593	$	517

Liabilities settled and divested	(157)		(5)		(16)
Accretion expense on discounted obligation	50		8		33


Revisions of estimated obligation	19		—		—
Impact of fresh start accounting	—		—		57
Other	1		1		2
Liabilities reclassified as held for sale	(21)		—		—
Ending balance	$	489	$	597	$	593

Current portion	$	51	$	50	$	50
Non-current portion	$	438	$	547	$	543

During 2021, our total asset retirement obligation decreased by $108 million, including $21 million of liabilities reclassified as held for sale. Our liability decreased by $157 million including $42 million for settlement payments and $115 million of liabilities assumed as part of our Ventura divestiture. Revisions to our future cost estimates and abandonment dates for our oil and gas assets resulted in an increase of $19 million. See Note 3 Divestitures and Acquisitions for more information on our sold properties and our liabilities reclassified as held for sale.

In 2020, upon emergence from bankruptcy and the adoption of fresh start accounting, ARO liabilities were adjusted to their estimated fair value resulting in a $57 million increase to our obligations at that time. See Note 15 Fresh Start Accounting for more information on our fresh start accounting adjustments.

Loss Contingencies

In the normal course of business, we are involved in lawsuits, claims and other environmental and legal proceedings and audits. We accrue reserves for these matters when it is probable that a liability has been incurred and the liability can be reasonably estimated. In addition, we disclose, if material, in aggregate, our exposure to losses in excess of the amount recorded on the balance sheet for these matters if it is reasonably possible that an additional material loss may be incurred. We review our loss contingencies on an ongoing basis.

Loss contingencies are based on judgments made by management with respect to the likely outcome of these matters and are adjusted as appropriate. Management’s judgments could change based on new information, changes in, or interpretations of, laws or regulations, changes in management’s plans or intentions, opinions regarding the outcome of legal proceedings, or other factors.

Income Taxes

Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their tax bases. Deferred tax assets are recognized when it is more likely than not that they will be realized. We periodically assess our deferred tax assets and reduce such assets by a valuation allowance if we deem it is more likely than not that some portion or all of the deferred tax assets will not be realized.

We recognize the financial statement effects of tax positions when it is more likely than not, based on the technical merits, that the position will be sustained upon examination by a tax authority. We recognize interest and penalties, if any, related to uncertain tax positions as a component of the income tax provision. No interest or penalties related to uncertain tax positions were recognized in the financial statements for the periods presented.

Production-Sharing Type Contracts

Our share of production and reserves from operations in the Wilmington field is subject to contractual arrangements similar to production-sharing contracts (PSCs) that are in effect through the economic life of the assets. Under such contracts we are obligated to fund all capital and operating costs. We record a share of production and reserves to recover a portion of such capital and operating costs and an additional share for profit. Our portion of the production represents volumes: (i) to recover our partners’ share of capital and operating costs that we incur on their behalf, (ii) for our share of contractually defined base production and (iii) for our share of remaining production thereafter. We generate returns through our defined share of production from (ii) and (iii) above. These contracts do not transfer any right of ownership to us and reserves reported from these arrangements are based on our economic interest as defined in the contracts. Our share of production and reserves from these contracts decreases when product prices rise and increases when prices decline, assuming comparable capital investment and operating costs. However, our net economic benefit is greater when product prices are higher. These PSCs represented approximately 15% of our total production for the year ended December 31, 2021.

In line with industry practice for reporting PSCs, we report 100% of operating costs under such contracts in our consolidated statements of operations as opposed to reporting only our share of those costs. We report the proceeds from production designed to recover our partners' share of such costs (cost recovery) in our revenues. Our reported production volumes reflect only our share of the total volumes produced, including cost recovery, which is less than the total volumes produced under the PSCs. This difference in reporting full operating costs but only our net share of production equally inflates our revenue and operating costs per barrel and has no effect on our net results.

Pension and Postretirement Benefit Plans

All of our employees participate in postretirement benefit plans we sponsor. These plans are primarily funded as benefits are paid. In addition, a small number of our employees also participate in defined benefit pension plans sponsored by us. We recognize the net overfunded or underfunded amounts in the consolidated financial statements at each measurement date.

We determine our defined benefit pension and postretirement benefit plan obligations based on various assumptions and discount rates. The discount rate assumptions used are meant to reflect the interest rate at which the obligations could effectively be settled on the measurement date. We estimate the rate of return on assets with regard to current market factors but within the context of historical returns.

Pension plan assets are measured at fair value. Publicly registered mutual funds are valued using quoted market prices in active markets. Commingled funds are valued at the fund units’ net asset value (NAV) provided by the issuer, which represents the quoted price in a non-active market. Guaranteed deposit accounts are valued at the book value provided by the issuer.

Actuarial gains and losses that have not yet been recognized through income, are recorded in accumulated other comprehensive income within equity, net of taxes, until they are amortized as a component of net periodic benefit cost.

Leases

We account for our leases, other than mineral leases including oil and natural gas leases, under an accounting standard which requires us to recognize most leases, including operating leases, on the balance sheet. The majority of our leases are for commercial office space, fleet vehicles, drilling rigs and facilities. We categorize leases as either operating or financing at lease commencement. We recognize a right-of-use (ROU) asset and associated lease liability for each operating and finance lease with contractual terms of greater than 12 months on the balance sheet. In considering whether a contract contains a lease, we first considered whether there was an identifiable asset and then considered how and for what purpose the asset would be used over the contract term. Our ROU assets are measured at the initial amount of the lease liability determined by measuring the present value of the fixed minimum lease payments, adjusted for any payments made before or at the lease commencement date, discounted using our incremental borrowing rate (IBR). In determining our IBR, we considered the average cost of borrowing for publicly traded corporate bond yields, which were adjusted to reflect our credit rating, the remaining lease term for each class of our leases and frequency of payments.

The ROU assets for operating leases are recognized over the term of the lease using the straight-line method. Lease expense also includes accretion of the lease liability recognized using the effective interest method. Our finance leases are not significant. ROU assets are tested for impairment in the same manner as long-lived assets.

Share Repurchase Program

We repurchase shares of our common stock from time to time under a program authorized by our Board of Directors, including pursuant to a contract, instruction or written plan meeting requirements of Rule 10b5-1(c)(1) of the Exchange Act. Share repurchases have not been retired and are displayed separately as treasury stock on our consolidated balance sheet.

Assets Held for Sale

We may market certain non-core oil and natural gas assets or other properties for sale. At the end of each reporting period, we evaluate if these assets should be classified as held for sale. The held for sale criteria includes the following: management commitment to a plan to sell, the asset is available for immediate sale, an active program to locate a buyer exists, the sale of the asset is probable and expected to be completed within one year, the asset is being actively marketed for sale and it is unlikely that significant changes will be made to the plan. If all of these criteria are met, the asset is presented as held for sale on our consolidated balance sheet and measured at the lower of the carrying amount or estimated fair vale less costs to sell. DD&A expense is not recorded on assets once classified as held for sale.

The assets classified as held for sale at December 31, 2021 include the remaining assets and the associated asset retirement obligations in the Ventura basin. See Note 3 Divestitures and Acquisitions for more information.

Other Current Assets

Other current assets consisted of the following:


	Successor
(in millions)	December 31, 2021		December 31, 2020
Amounts due from joint interest partners	$	47	$	42

Fair value of derivative contracts	6		—

Prepaid expenses	16		20
Prepaid greenhouse gas allowances	31		—
Collateral on natural gas purchases	12		—
Other	9		1
Other current assets	$	121	$	63

Other Noncurrent Assets

Other noncurrent assets consisted of the following:


	Successor
(in millions)	December 31, 2021		December 31, 2020
Operating lease right-of-use assets	$	43	$	38
Deferred financing costs - Revolving Credit Facility	11		17
Emission reduction credits	11		11
Prepaid power plant maintenance	21		14
Fair value of derivative contracts	1		—
Deposits and other	11		10
Other noncurrent assets	$	98	$	90

Accrued Liabilities

Accrued liabilities consisted of the following:


	Successor
(in millions)	December 31, 2021		December 31, 2020
Accrued employee-related costs	$	61	$	72
Accrued taxes other than on income	30		36
Asset retirement obligations	51		50
Accrued interest	19		1
Lease liability	11		7
Deferred premiums on derivative contracts	57		18
Net settlement payments due on derivative contracts	25		3
Other	43		24
Accrued liabilities	$	297	$	211

As of December 31, 2020, accrued employee-related costs included approximately $5 million of payroll taxes deferred under COVID-19 relief, half of which was paid before December 31, 2021 with the remainder due on or before December 31, 2022.

Other Long-Term Liabilities

Other long-term liabilities consisted of the following:


	Successor
(in millions)	December 31, 2021		December 31, 2020
Compensation-related liabilities	38		44
Postretirement and pension benefit plans	59		140
Lease liability	37		35
Deferred premiums on derivative contracts	5		31
Other	6		19
Other long-term liabilities	$	145	$	269

Other Operating Expenses, net

Other operating expenses, net consisted of the following:


	Successor				Predecessor
	Year ended December 31,		November 1, 2020 - December 31, 2020		January 1, 2020 - October 31, 2020		Year ended December 31,
(in millions)	2021						2019
Severance and termination costs	$	15	$	5	$	10	$	—
Deficiency payment on a pipeline delivery contract	—		—		20		—
Idle well fees	6		—		4		3
Power plant interruption	—		—		7		1
Ad valorem fees	—		—		4		—
Other, net	8		4		11		14
Other operating expenses, net	$	29	$	9	$	56	$	18

Reorganization Items, net

Reorganization items, net consisted of the following (in millions):


	Successor				Predecessor
	Year ended December 31,		November 1, 2020 - December 31, 2020		January 1, 2020 - October 31, 2020
	2021
(in millions)
Gain on settlement of liabilities subject to compromise	$	—	$	—	$	4,022
Unamortized deferred gain and issuance costs, net	—		—		125
Junior debtor-in-possession exit fee	—		—		(12)
Acceleration of unrecognized compensation expense on cancelled stock-based compensation awards	—		—		(5)
Write-off of prepaid directors and officers' insurance premiums	—		—		(2)
Total non-cash reorganization items	$	—	$	—	$	4,128
Legal, professional and other, net	(6)		(3)		(43)
Debtor-in-possession financing costs	—		—		(25)
Total reorganization items, net	$	(6)	$	(3)	$	4,060

Supplemental Cash Flow Information

Supplemental disclosures to our consolidated statements of cash flows, excluding leases, are presented below (in millions):


	Successor				Predecessor
	Year ended December 31,		November 1, 2020 - December 31, 2020		January 1, 2020 - October 31, 2020		Year ended December 31,
	2021						2019
Supplemental Cash Flow Information
Cash paid for interest, net of amounts capitalized	$	(28)	$	(8)	$	(79)	$	(425)

Supplemental Disclosure of Noncash Investing and Financing Activities
Successor common stock, Subscription Rights and Warrants issued pursuant to the Plan	$	—	$	—	$	(494)	$	—
Successor common stock issued for the junior debtor-in-possession exit fee pursuant to the Plan	$	—	$	—	$	(12)	$	—
Successor common stock and EHP Notes issued for acquisition of noncontrolling interest pursuant to the Plan	$	—	$	—	$	(561)	$	—
Successor common stock issued for a backstop commitment premium pursuant to the Plan	$	—	$	—	$	(52)	$	—
Warrant issued to a joint venture partner	$	—	$	—	$	—	$	(3)
Derivative related to additional earn-out consideration for the Ventura divestiture	$	3	$	—	$	—	$	—

PROPERTY, PLANT AND EQUIPMENT

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT AND EQUIPMENT

We capitalize the costs incurred to acquire or develop our oil and natural gas assets, including ARO and capitalized interest. For asset acquisitions, purchase price, including liabilities assumed, is allocated to acquired assets based on relative fair values at the acquisition date. We evaluate long-lived assets on a quarterly basis for possible impairment.

Property, plant and equipment, net consisted of the following:


	Successor
(in millions)	December 31, 2021		December 31, 2020
Proved oil and natural gas properties	$	2,604	$	2,416
Unproved oil and natural gas properties	1		1
Facilities and other	240		272
Total property, plant and equipment	2,845		2,689
Accumulated depreciation, depletion and amortization	(246)		(34)
Total property, plant and equipment, net(a)	$	2,599	$	2,655

(a)Upon our emergence from bankruptcy, we adopted fresh start accounting on October 31, 2020. At that time, we remeasured our assets at their relative fair value. See Note 15 Fresh Start Accounting for more information.

The following table summarizes the activity of capitalized exploratory well costs:


	Successor				Predecessor
	Year ended December 31,		November 1, 2020 - December 31, 2020		January 1, 2020 - October 31, 2020		Year ended December 31,
(in millions)	2021						2019
Beginning balance	$	3	$	3	$	7	$	5
Additions to capitalized exploratory well costs	—		—		—		12
Reclassification to property, plant and equipment	—		—		—		(3)
Charged to expense	(2)		—		(2)		(7)
Impact of fresh start accounting	—		—		(2)		—

Ending balance	$	1	$	3	$	3	$	7

There are not significant exploratory well costs in the periods presented that have been capitalized for a period greater than one year after the completion of drilling. Our capitalized exploratory well costs at December 31, 2021 are for permitted wells that we intend to drill.

Asset Impairments

Asset impairments were $28 million for the year ended December 31, 2021, including $25 million related to the write-down of a commercial office building located in Bakersfield, California to fair value and a $3 million write-off of capitalized costs related to projects which were abandoned. We valued our commercial office building based on a market approach (using Level 3 inputs in the fair value hierarchy). The decline in commercial demand for office space of this size and type in that market resulted in an impairment as of our September 30, 2021 assessment date. In January 2022, we entered into an agreement to sell our commercial office building for $15 million. See Note 16 Subsequent Events for details of this potential divestiture. We determined that this asset did not meet the requirements to be classified as held for sale at December 31, 2021.

The following table presents a summary of our asset impairments during the Predecessor period of 2020 (in millions):


	Predecessor
	January 1, 2020 - October 31, 2020

Proved oil and natural gas properties	$	1,487
Unproved properties	228
Other	21
Total	$	1,736

The impairment charge of $1,736 million during the period ended October 31, 2020 was due to the sharp drop in commodity prices as of our March 31, 2020 assessment date.

The fair values of our proved oil and natural gas properties were determined using discounted cash flow models incorporating a number of fair value inputs which are categorized as Level 3 on the fair value hierarchy. These inputs were based on management's expectations for the future considering the then-current environment and included index prices based on forward curves, pricing adjustments for differentials, estimates of future oil and natural gas production, estimated future operating costs and capital development plans based on the embedded price assumptions. We used a market-based weighted average cost of capital to discount the future net cash flows. The impairment charge on our proved oil and gas properties primarily related to a steamflood property located in the San Joaquin basin.

As of our March 31, 2020 assessment date, we determined our ability to develop our unproved properties, which primarily consisted of leases held by production in the San Joaquin basin, was constrained for the foreseeable future and we did not intend to develop them.

We did not record an impairment charge during the Successor period of 2020 or the year ended December 31, 2019.

DIVESTITURES AND ACQUISITIONS	12 Months Ended
DIVESTITURES AND ACQUISITIONS	Dec. 31, 2021
ACQUISITIONS AND DIVESTITURES
DIVESTITURES AND ACQUISITIONS	DIVESTITURES AND ACQUISITIONS Divestitures Ventura Basin Transactions During the second quarter of 2021, we entered into transactions to sell our Ventura basin assets. The transactions contemplate multiple closings that are subject to customary closing conditions. In total, we will receive cash consideration of up to $102 million, before purchase price adjustments, plus additional earn-out consideration that is linked to future commodity prices. The consideration, exclusive of the earn-out, includes $82 million of total cash consideration (subject to purchase price adjustments) and up to $20 million of potential additional consideration if the buyer does not perform certain abandonment obligations with respect to the divested properties. The additional consideration is secured by production payments of $20 million over a five-year period. To the extent the buyer satisfies all of the required abandonment obligations within a five-year period following the initial close date, none of the $20 million of potential additional consideration will be paid to us. The closings that occurred in the second half of 2021 resulted in the divestiture of the vast majority of our Ventura basin assets. We recognized a gain of $120 million on the Ventura divestiture during the year ended December 31, 2021. We expect to divest of the remaining assets in the Ventura basin during the first half of 2022. These remaining assets, consisting of property, plant and equipment and the associated asset retirement obligations, are classified as held for sale on our consolidated balance sheet as of December 31, 2021. Lost Hills Transactions In May 2019, we sold 50% of our working interest and transferred operatorship in certain horizons within our Lost Hills field, located in the San Joaquin basin, for proceeds of $164 million (after transaction costs and purchase price adjustments) plus a carried 200-well development program. The partial sale of proved property was accounted for as a normal retirement with no gain or loss recognized. The partial sale of unproved property was recorded as a recovery of cost. On February 1, 2022, we sold our remaining 50% non-operated working interest in these horizons for proceeds of $55 million (before transaction costs and purchase price adjustments). See Note 16 Subsequent Events for more information on our Lost Hills divestiture. Other Divestitures In 2021, we also sold unimproved land and other non-core assets for $13 million in proceeds recognizing a $4 million gain. In January 2020, we sold royalty interests and divested non-core assets resulting in $41 million of proceeds which was treated as a normal retirement and no gain or loss was recognized. See Note 16 Subsequent Events for details on an agreement entered into in January 2022 related to our commercial office building located in Bakersfield, California. Acquisitions MIRA JV Acquisition Our development joint venture with Macquarie Infrastructure and Real Assets Inc. (MIRA JV) contemplated that MIRA would fund the development of certain of our oil and natural gas properties in the San Joaquin basin in exchange for a 90% working interest in the related properties. In August 2021, we purchased MIRA’s entire working interest share in the conveyed assets for net cash payment of $52 million. We accounted for this transaction as an asset acquisition. Prior to the acquisition, our consolidated results reflect only our 10% working interest share in the productive wells. Other Acquisitions In 2019, we had several acquisitions of non-core properties totaling approximately $6 million.

DEBT

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

DEBT

As of December 31, 2021 and 2020, our long-term debt consisted of the following (in millions):



	Successor				Interest Rate	Maturity
	2021		2020
Revolving Credit Facility(a)	$	—	$	99	LIBOR plus 3%-4% ABR plus 2%-3%	April 29, 2024
Senior Notes	600		—		7.125%	February 1, 2026
Second Lien Term Loan	—		200		LIBOR plus 9%-10.5% ABR plus 8%-9.5%	October 27, 2025
EHP Notes	—		300		6%	October 27, 2027
Principal amount of debt	$	600	$	599
Unamortized debt issuance costs	(11)		(2)
Long-term debt, net	$	589	$	597

(a)In February 2022, we amended our Revolving Credit Facility to replace London Interbank Offered Rates (LIBOR). See Note 16 Subsequent Events, for further information on this amendment.

Fair Value

The estimated fair value of our debt at December 31, 2021 and 2020, including the fair value of the variable-rate portion, was approximately $623 million and $599 million, respectively, compared to a face value of approximately $600 million and $599 million, respectively. We estimate the fair value of fixed-rate debt based on prices known from market transactions as of December 31, 2021 (Level1). We estimate the fair value of fixed-rate debt based on unobservable inputs as of December 31, 2020 (Level 3). We estimate the fair value of our variable rate debt approximates its carrying value.

Revolving Credit Facility

On October 27, 2020, we entered into a Credit Agreement with Citibank, N.A., as administrative agent, and certain other lenders. This credit agreement consists of a senior revolving loan facility (Revolving Credit Facility) with an aggregate commitment of $492 million, which we are permitted to increase if we obtain additional commitments from new or existing lenders. Our Revolving Credit Facility also includes a sub-limit of $200 million for the issuance of letters of credit. As of December 31, 2021, we had approximately $367 million available for borrowing under the Revolving Credit Facility after taking into account $125 million of outstanding letters of credit. See Note 16 Subsequent Events for information on additional commitments.

The proceeds of all or a portion of the Revolving Credit Facility may be used for our working capital needs and for other purposes subject to meeting certain criteria.

Security – The lenders have a first-priority lien on a substantial majority of our assets.

Interest Rate – We could elect to borrow at either an adjusted LIBOR rate or an ABR rate, subject to a 1% floor and 2% floor, respectively, plus an applicable margin. The ABR is equal to the highest of (i) the federal funds effective rate plus 0.50%, (ii) the administrative agent prime rate and (iii) the one-month adjusted LIBOR rate plus 1%. The applicable margin is adjusted based on the borrowing base utilization percentage and will vary from (i) in the case of LIBOR loans, 3% to 4% and (ii) in the case of ABR loans, 2% to 3%. The unused portion of the facility is subject to a commitment fee of 0.50% per annum. We also pay customary fees and expenses. Interest on ABR loans is payable quarterly in arrears. Interest on LIBOR loans is payable at the end of each LIBOR period, but not less than quarterly. In February 2022, we amended our Revolving Credit Facility to replace LIBOR with the secured overnight financing rate (SOFR) as administered by the Federal Reserve Bank of New York. See Note 16 Subsequent Events, for further information on this amendment.

Amortization Payments – The Revolving Credit Facility does not include any obligation to make amortizing payments.

Borrowing Base – The borrowing base, currently $1.2 billion, will be redetermined semi-annually each April and October.

Financial Covenants – Our Revolving Credit Facility includes the following financial covenants:

Ratio

Components

Required Levels

Tested

Consolidated Total Net Leverage Ratio

Ratio of consolidated total secured debt to consolidated EBITDAX(a)

Not greater than 3.00 to 1.00

Quarterly

Current Ratio

Ratio of consolidated current assets to consolidated current liabilities(b)

Not less than 1.00 to 1.00

Quarterly

(a)EBITDAX is calculated as defined in the credit agreement.

(b)The available credit under our Revolving Credit Facility is included in consolidated current assets as part of the calculation of the current ratio.

Other Covenants – Our Revolving Credit Facility includes covenants that, among other things, restrict our ability to incur additional indebtedness, grant liens, make asset sales and investments, repay existing indebtedness, make subsidiary distributions and enter into transactions that would result in fundamental changes. We are also restricted in the amount of cash dividends we can pay on our common stock unless we meet certain covenants included in the credit agreement.

Our Revolving Credit Facility also requires us to maintain hedges on a minimum amount of crude oil production, determined semi-annually, of no less than (i) 75% of our reasonably anticipated oil production from our proved reserves during the period November 1, 2020 through October 31, 2022, and (ii) 50% of our reasonably anticipated oil production from our proved reserves during the period November 1, 2022 through October 31, 2023. The Revolving Credit Facility specifies the forms of hedges and prices (which can be prevailing prices) that must be used for a portion of those hedges.

Further, our Revolving Credit Facility requires us to maintain acceptable commodity hedges for no less than 50% of the reasonably anticipated oil production from our proved reserves for at least 24 months following the date of delivery of each reserve report if our leverage ratio is greater than 2.00:1.00. If our leverage ratio is less than 2.00:1.00, then the minimum amount of hedges that we are required to maintain is reduced from 50% to 33%. Currently, we may not hedge more than 85% of reasonably anticipated total forecasted production of crude oil, natural gas and NGLs from our oil and gas properties for a 48-month period, except that we may purchase puts and floors up to 100% of such production. The percentage of our crude oil production hedged is calculated exclusive of offsetting positions on our derivative contracts.

Events of Default and Change of Control – Our Revolving Credit Facility provides for certain events of default, including upon a change of control, as defined in the credit agreement, that entitles our lenders to declare the outstanding loans immediately due and payable, subject to certain limitations and conditions.

Senior Notes

On January 20, 2021, we completed an offering of $600 million in aggregate principal amount of our 7.125% senior unsecured notes due 2026 (Senior Notes). The net proceeds of $587 million, after $13 million of debt issuance costs, were used to repay in full our Second Lien Term Loan and EHP Notes, with the remainder used to repay substantially all of the then outstanding borrowings under our Revolving Credit Facility. We recognized a $2 million loss on extinguishment of debt, including unamortized debt issuance costs, associated with these repayments.

Security – Our Senior Notes are general unsecured obligations which are guaranteed on a senior unsecured basis by certain of our material subsidiaries.

Redemption – Prior to February 1, 2023, we may elect to redeem up to 35% of the aggregate principal amount of our Senior Notes with an amount of cash not greater than the net cash proceeds from certain equity offerings at a redemption price equal to 107% of the aggregate amount of the Senior Notes redeemed, plus accrued and unpaid interest. In addition, prior to February 1, 2023, we may redeem the Senior Notes at a “make whole” premium plus accrued and unpaid interest. On or after February 1, 2023, we may redeem the Senior Notes at any time prior to the maturity date at a redemption price equal to (i) 104% of the principal amount if redeemed in the twelve months beginning February 1, 2023, (ii) 102% of the principal amount if redeemed in the twelve months beginning February 1, 2024 and (iii) 100% of the principal amount if redeemed after February 1, 2025, in each case plus accrued and unpaid interest.

Other Covenants – Our Senior Notes include covenants that, among other things, restrict our ability to incur additional indebtedness, issue preferred stock, grant liens, make asset sales and investments, repay existing indebtedness, make subsidiary distributions and enter into transactions that would result in fundamental changes.

Events of Default and Change of Control – Our Senior Notes provide for certain triggering events, including upon a change of control, as defined in the indenture, that would require us to repurchase all or any part of the Senior Notes at a price equal to 101% of the aggregate principal amount plus accrued and unpaid interest.

Second Lien Term Loan

On October 27, 2020, we entered into a $200 million credit agreement with Alter Domus Products Corp., as administrative agent, and certain other lenders (Second Lien Term Loan). The proceeds were used to refinance our Junior DIP Facility and to pay certain costs, fees and expenses related to the other transactions consummated on the Effective Date.

Security – The lenders had a second-priority lien (junior to the Revolving Credit Facility) on a substantial majority of our assets, except assets securing the EHP Notes as discussed below.

Interest Rate – We could elect to pay interest at either an adjusted LIBOR rate or ABR rate, subject to a 1% floor and 2% floor, respectively, plus an applicable margin. The ABR rate was equal to the highest of (i) the prime rate, (ii) the federal funds rate effective rate plus 0.50%, and (iii) the one-month adjusted LIBOR rate plus 1%. Prior to the second anniversary of the closing date of the Second Lien Term Loan, the applicable margin in the case of an ABR rate election was 8% per annum if paid in cash and 9.50% per annum if paid-in-kind, and the applicable margin in the case of an adjusted LIBOR rate election was 9% if paid in cash and 10.50% if paid-in-kind. After the second anniversary of the closing date, the applicable margin was 8% with respect to any ABR loan and 9% with respect to an adjusted LIBOR loan. Interest on ABR loans was paid quarterly in arrears and interest based on the adjusted LIBOR rate was due at the end of each LIBOR period, which could be one, two, three or six months but not less than quarterly. We also paid customary fees and expenses.

Maturity Date – Our Second Lien Term Loan would mature five years after the closing date, subject to extension.

Redemption – We could elect to redeem all or part of our Second Lien Term Loan, at any time prior to the maturity date, at redemption price equal to (i) 100% of the principal amount if redeemed prior to 90 days after closing, (ii) 105% of the principal amount if redeemed after 90 days and before the first anniversary date, (iii) 103% of the principal amount if redeemed on or after the first anniversary date and before the second anniversary date, (iv) 102% of the principal amount if redeemed on or after the second anniversary date and before the third anniversary date, (v) 101% of the principal amount if redeemed on or after the third anniversary date and before the fourth anniversary date, and (vi) at 100% of the principal amount if redeemed in the fifth year.

Financial Covenants – Our Second Lien Term Loan included certain financial covenants that were to be tested quarterly, including a consolidated total net leverage ratio and current ratio.

Liquidity – We would become subject to a monthly minimum liquidity requirement of $170 million if, as of the Spring 2021 Scheduled Redetermination (as defined in the Revolving Credit Facility), (a) our liquidity was less than $247 million and (b) we were not able to obtain at least $51 million in additional commitments under our Revolving Credit Facility or through capital markets or other junior financing transactions, for so long as the conditions in (a) and (b) remained unmet.

Other Covenants – Our Second Lien Term Loan included covenants that, among other things, restricted our ability to incur additional indebtedness, grant liens, make asset sales and investments, repay existing indebtedness, make subsidiary distributions and enter into transactions that would result in fundamental changes. We were also restricted in the amount of cash dividends we could pay on our common stock unless we met certain covenants included in the credit agreement.

Our Second Lien Term Loan also required us to maintain hedges on a minimum amount of crude oil production on terms that were substantially consistent with the requirements of our Revolving Credit facility.

Events of Default and Change of Control – Our Second Lien Term Loan provided for certain events of default, including upon a change of control, as defined in the credit agreement, that would entitle our lenders to declare the outstanding loans immediately due and payable, subject to certain limitations and conditions. We were subject to a cross-default provision that causes a default under this facility if certain defaults occurred under the Revolving Credit Facility or the EHP Notes.

The Second Lien Term Loan was terminated and repaid with proceeds from our Senior Notes offering in January 2021 as described above.

EHP Notes

On the Effective Date, our wholly-owned subsidiary, EHP Midco Holding Company, LLC (Elk Hills Issuer) entered into a Note Purchase Agreement (Note Purchase Agreement) with certain subsidiaries of Ares and Wilmington Trust, N.A. as collateral agent. The $300 million Notes were issued as partial consideration for the Class B Preferred Units, Class A Common Units and Class C Common Units in the Ares JV previously held by ECR (EHP Notes).

The EHP Notes were senior notes due in 2027, and were secured by a first-priority security interest in all of the assets of Elk Hills Power, any third-party offtake contracts for power generated by Elk Hills Power, all of the equity interests of Elk Hills Power held by Elk Hills Issuer and all of the equity interests of Elk Hills Issuer held by its direct parent, EHP Topco Holding Company, LLC, our wholly-owned subsidiary. We and Elk Hills Power guaranteed, on a joint and several basis, all of the obligations of Elk Hills Issuer under the EHP Notes. The EHP Notes bore an interest rate of 6.0% per annum through the fourth anniversary of issuance, increasing to 7.0% per annum after the fourth anniversary of issuance and to 8.0% per annum after the fifth anniversary of issuance. We were permitted to redeem the EHP Notes at any time prior to their maturity date without payment of premium or penalty.

The EHP Notes were terminated and repaid with proceeds from our Senior Notes offering in January 2021 as described above.

Other

At December 31, 2021, all obligations under our Revolving Credit Facility and Senior Notes are guaranteed by certain of our material wholly owned subsidiaries.

The terms and conditions of all of our indebtedness are subject to additional qualifications and limitations that are set forth in the relevant governing documents.

At December 31, 2021, we were in compliance with all debt covenants under our credit agreements.

Principal maturities of debt outstanding at December 31, 2021 (Successor) are as follows:


	As of December 31, 2021
	(in millions)
2022	$	—
2023	—
2024	—
2025	—
2026	600
Thereafter	—
Total	$	600

LEASES

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

LEASES

Balance sheet information related to our operating and finance leases as of December 31, 2021 and December 31, 2020 were as follows:


		Successor
	Classification	2021		2020
Assets		(in millions)		(in millions)
Operating	Other noncurrent assets	$	43	$	38
Finance	PP&E	—		1
Total right-of-use assets		$	43	$	39

Liabilities
Current
Operating	Accrued liabilities	$	11	$	6
Finance	Accrued liabilities	—		1
Long-term
Operating	Other long-term liabilities	37		35

Total lease liabilities		$	48	$	42

We combine lease and nonlease components in determining fixed minimum lease payments for our drilling rigs and commercial office space. If applicable, fixed minimum lease payments are reduced by lease incentives for our commercial buildings and increased by mobilization and demobilization fees for our drilling rigs. Certain of our lease agreements include options to renew, which we exercise at our sole discretion, and we did not include these options in determining our fixed minimum lease payments over the lease term. Our leases do not include options to purchase the leased property. Lease agreements for our fleet vehicles include residual value guarantees, none of which are recognized in our financial statements until the underlying contingency is resolved.

Variable lease costs for our drilling rigs include costs to operate, move and repair the rigs. Variable lease costs for certain of our commercial office buildings included utilities and common area maintenance charges. Variable lease costs for our fleet vehicles include other-than-routine maintenance and other various amounts in excess of our fixed minimum rental fee.

Our lease costs, including amounts capitalized to PP&E, were as follows:


	Successor				Predecessor
	Year ended December 31,		November 1, 2020 - December 31, 2020		January 1, 2020 - October 31, 2020
	2021
	(in millions)				(in millions)



Operating lease costs	$	14	$	2	$	23
Short-term lease costs(a)	48		7		25
Variable lease costs	4		—		4
Total operating lease costs	66		9		52
Finance lease costs	—		—		1
Sublease income	(2)		—		(1)
Total lease costs	$	64	$	9	$	52

(a)Contracts with terms of less than one month or less are excluded from our disclosure of short-term lease costs.

We have two contracts treated as finance leases, which were not material to our consolidated results of operations.

We sublease certain commercial office space to third parties where we are the primary obligor under the head lease. The lease terms on those subleases never extend past the term of the head lease and the subleases contain no extension options or residual value guarantees. Sublease income is recognized based on the contract terms and included as a reduction of operating lease cost under our head lease. Sublease income was not material to our consolidated financial statements for all periods presented.

Other supplemental information related to our operating and finance leases as of December 31, 2021 and December 31, 2020 is provided below:


	Successor				Predecessor
	Year ended December 31,		November 1, 2020 - December 31, 2020		January 1, 2020 - October 31, 2020
	2021
	(in millions)				(in millions)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows	$	8	$	2	$	9
Investing cash flows	$	4	$	—	$	14
Financing cash flows	$	1	$	—	$	1

ROU assets obtained in exchange for new operating lease liabilities	$	17	$	—	$	—

Impairment charges related to ROU assets	$	—	$	—	$	2


	Successor
	2021		2020
Operating Leases
Weighted-average remaining lease term (in years)	8.25		6.81
Weighted-average discount rate	5.4	%	4.5	%

Finance Leases
Weighted-average remaining lease term (in years)	0.33		1.33
Weighted-average discount rate	4.0	%	4.0	%

The difference in the weighted-average discount rate between operating leases and finance leases primarily relates to lease term.

Maturities of our operating liabilities at December 31, 2021 are as follows:


	Successor
	Operating
	Leases
	(in millions)
2022	$	12
2023	8
2024	8
2025	6
2026	5
Thereafter	23
Less: Interest	(14)
Present value of lease liabilities	$	48

LEASES

Balance sheet information related to our operating and finance leases as of December 31, 2021 and December 31, 2020 were as follows:


		Successor
	Classification	2021		2020
Assets		(in millions)		(in millions)
Operating	Other noncurrent assets	$	43	$	38
Finance	PP&E	—		1
Total right-of-use assets		$	43	$	39

Liabilities
Current
Operating	Accrued liabilities	$	11	$	6
Finance	Accrued liabilities	—		1
Long-term
Operating	Other long-term liabilities	37		35

Total lease liabilities		$	48	$	42

Our lease costs, including amounts capitalized to PP&E, were as follows:


	Successor				Predecessor
	Year ended December 31,		November 1, 2020 - December 31, 2020		January 1, 2020 - October 31, 2020
	2021
	(in millions)				(in millions)



Operating lease costs	$	14	$	2	$	23
Short-term lease costs(a)	48		7		25
Variable lease costs	4		—		4
Total operating lease costs	66		9		52
Finance lease costs	—		—		1
Sublease income	(2)		—		(1)
Total lease costs	$	64	$	9	$	52

(a)Contracts with terms of less than one month or less are excluded from our disclosure of short-term lease costs.

We have two contracts treated as finance leases, which were not material to our consolidated results of operations.

Other supplemental information related to our operating and finance leases as of December 31, 2021 and December 31, 2020 is provided below:


	Successor				Predecessor
	Year ended December 31,		November 1, 2020 - December 31, 2020		January 1, 2020 - October 31, 2020
	2021
	(in millions)				(in millions)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows	$	8	$	2	$	9
Investing cash flows	$	4	$	—	$	14
Financing cash flows	$	1	$	—	$	1

ROU assets obtained in exchange for new operating lease liabilities	$	17	$	—	$	—

Impairment charges related to ROU assets	$	—	$	—	$	2


	Successor
	2021		2020
Operating Leases
Weighted-average remaining lease term (in years)	8.25		6.81
Weighted-average discount rate	5.4	%	4.5	%

Finance Leases
Weighted-average remaining lease term (in years)	0.33		1.33
Weighted-average discount rate	4.0	%	4.0	%

The difference in the weighted-average discount rate between operating leases and finance leases primarily relates to lease term.

Maturities of our operating liabilities at December 31, 2021 are as follows:


	Successor
	Operating
	Leases
	(in millions)
2022	$	12
2023	8
2024	8
2025	6
2026	5
Thereafter	23
Less: Interest	(14)
Present value of lease liabilities	$	48

LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES

We, or certain of our subsidiaries, are involved, in the normal course of business, in lawsuits, environmental and other claims and other contingencies that seek, among other things, compensation for alleged personal injury, breach of contract, property damage or other losses, punitive damages, civil penalties, or injunctive or declaratory relief.

We accrue reserves for currently outstanding lawsuits, claims and proceedings when it is probable that a liability has been incurred and the liability can be reasonably estimated. Reserve balances at December 31, 2021 and 2020 were not material to our consolidated balance sheets as of such dates. We also evaluate the amount of reasonably possible losses that we could incur as a result of these matters. We believe that reasonably possible losses that we could incur in excess of reserves cannot be accurately determined.

In October 2020, Signal Hill Services, Inc. defaulted on its decommissioning obligations associated with two offshore platforms. The Bureau of Safety and Environmental Enforcement (BSEE) determined that former lessees, including our former parent, Occidental Petroleum Corporation (Oxy) with a 37.5% share, are responsible for accrued decommissioning obligations associated with these offshore platforms. Oxy sold its interest in the platforms approximately 30 years ago and it is our understanding that Oxy has not had any connection to the operations since that time and is challenging BSEE's order. Oxy notified us of the claim under the indemnification provisions of the Separation and Distribution Agreement between us and Oxy. In September 2021, we accepted the indemnification claim from Oxy and we are now appealing the order from BSEE.

We have certain commitments under contracts, including purchase commitments for goods and services used in the normal course of business such as pipeline capacity, land easements and field equipment. We also have a capital commitment of $12 million in 2022 for evaluation and development activities at one of our oil and natural gas properties. During 2021, we entered into an agreement which will relieve us from our remaining obligation upon acceptance of certain land use requirements which may occur on or before May 2022.

At December 31, 2021, total purchase obligations on a discounted basis were as follows:


	December 31, 2021
	(in millions)
2022	$	54
2023	32
2024	10
2025	5
2026	5
Thereafter	30
Total	136
Less: Interest	(18)
Present value of purchase obligations	$	118

DERIVATIVES

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVES

We continue to maintain a commodity hedging program primarily focused on crude oil to help protect our cash flows, margins and capital program from the volatility of commodity prices. We did not have any commodity derivatives designated as accounting hedges as of and during the years ended December 31, 2021, 2020 and 2019. Unless otherwise indicated, we use the term "hedge" to describe derivative instruments that are designed to achieve our hedging requirements and program goals, even though they are not accounted for as accounting hedges. Our Revolving Credit Facility includes covenants that require us to maintain a certain level of hedges. We have also entered into incremental hedges above and beyond these requirements and will continue to evaluate our hedging strategy based on prevailing market prices and conditions. For more information on the requirements of our Revolving Credit Facility, see Note 4 Debt.

Commodity-Price Risk

As part of our hedging program, we held the following Brent-based crude oil contracts as of December 31, 2021:


	Q1 2022		Q2 2022		Q3 2022		Q4 2022		2023
Sold Calls:
Barrels per day	35,347		35,343		34,380		25,167		14,790
Weighted-average price per barrel	$	60.37	$	60.63	$	60.76	$	57.82	$	58.01

Swaps
Barrels per day	12,369		10,669		10,476		17,263		12,937
Weighted-average price per barrel	$	54.38	$	54.12	$	53.97	$	58.79	$	59.08

Net Purchased Puts(a)
Barrels per day	35,347		35,343		34,380		25,167		14,790
Weighted-average price per barrel	$	53.32	$	54.69	$	55.95	$	57.22	$	40.00

Sold Puts
Barrels per day	6,869		—		4,000		1,348		—
Weighted-average price per barrel	$	32.00	$	—	$	32.00	$	32.00	$	—

(a)Purchased puts and sold puts with the same strike price have been presented on a net basis.

The outcomes of the derivative positions are as follows:

•Sold calls – we make settlement payments for prices above the indicated weighted-average price per barrel.

•Purchased puts – we receive settlement payments for prices below the indicated weighted-average price per barrel.

•Sold puts – we make settlement payments for prices below the indicated weighted-average price per barrel.

•Swaps – we make settlement payments for prices above the indicated weighted-average price per barrel and receive settlement payments for prices below the indicated weighted-average price per barrel.

We use combinations of these positions to meet the requirements of our Revolving Credit Facility and to increase the efficacy of our hedging program.

Derivative instruments not designated as hedging instruments are required to be recorded on the balance sheet at fair value. Noncash derivative gains and losses, along with settlement payments, are reported in net (loss) gain from commodity derivatives on our consolidated statements of operations as shown in the table below:


	Successor				Predecessor
	Year ended December 31,		November 1, 2020 - December 31, 2020		January 1, 2020 - October 31, 2020		Year ended December 31,
	2021						2019
(in millions)
Non-cash commodity derivative loss, excluding noncontrolling interest	$	(357)	$	(138)	$	(19)	$	(166)
Non-cash commodity derivative (loss) gain, attributable to noncontrolling interest	—		(2)		2		(4)
Total non-cash changes	(357)		(140)		(17)		(170)
Net (payments) proceeds on commodity derivatives	(319)		(1)		108		111

Net (loss) gain from commodity derivatives	$	(676)	$	(141)	$	91	$	(59)

Interest-Rate Risk

In May 2018, we entered into derivative contracts that limit our interest rate exposure with respect to a notional amount of $1.3 billion of variable-rate indebtedness. These interest-rate contracts reset monthly and require the counterparties to pay any excess interest owed on such amount in the event the one-month LIBOR exceeds 2.75% for any monthly period prior to May 4, 2021. The contracts expired on May 4, 2021. We did not report any gains or losses on these contracts for the years ended December 31, 2021 or 2020. For the year ended December 31, 2019, we reported a loss on these contracts, included in other non-operating expenses on our consolidated statement of operations, of $4 million. No settlement payments were received in 2021, 2020, or 2019. As of December 31, 2021, we do not have any derivative contracts in place with respect to interest-rate exposure.

Fair Value of Derivatives

Our derivative contracts are measured at fair value using industry-standard models with various inputs, including quoted forward prices, and are classified as Level 2 in the required fair value hierarchy for the periods presented.

Commodity Contracts

The following tables present the fair values (at gross and net) of our outstanding derivatives:


December 31, 2021 (Successor)
Classification	Gross Amounts at Fair Value		Netting		Net Fair Value
Assets:	(in millions)
Other current assets	$	33	$	(27)	$	6
Other noncurrent assets	12		(11)		1

Liabilities:
Current - Fair value of derivative contracts	(297)		27		(270)
Noncurrent - Fair value of derivative contracts	(143)		11		(132)
	$	(395)	$	—	$	(395)



December 31, 2020 (Successor)
Classification	Gross Amounts at Fair Value		Netting		Net Fair Value
Assets:	(in millions)
Other current assets	$	21	$	(21)	$	—
Other noncurrent assets	63		(63)		—

Liabilities:
Current - Fair value of derivative contracts	(71)		21		(50)
Noncurrent - Fair value of derivative contracts	(69)		63		(6)
	$	(56)	$	—	$	(56)

Interest-Rate Contracts

The fair value of our interest-rate derivatives contracts was not significant for all periods presented.

Counterparty Credit Risk

As of December 31, 2021, all of our derivative financial instruments were with investment-grade counterparties. We actively evaluate the creditworthiness of our counterparties, assign credit limits and monitor exposure against those assigned limits. We believe exposure to credit-related losses as of December 31, 2021 was not significant. Losses associated with credit risk have been insignificant for all years presented. At December 31, 2021, and 2020, we had insignificant collateral posted.

INCOME TAXES

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXESNet income (loss) before income taxes, for all periods presented, was generated from domestic operations. For the year ended December 31, 2021, we released all of our valuation allowance of $549 million, which consisted of $258 million in the U.S. federal jurisdiction and $291 million in the state jurisdiction. A portion of the change in our valuation allowance was released against current year income and the remaining $161 million in the U.S. federal jurisdiction and $235 million in the state jurisdiction was recognized as a tax benefit reflecting the projected utilization of our deferred tax assets. We did not record an income tax provision (benefit) in the period ended December 31, 2020 or the period ended October 31, 2020. We recorded an insignificant income tax provision for the year ended December 31, 2019.

Total income tax (benefit) provision differs from the amounts computed by applying the U.S. federal income tax rate to pre-tax income (loss) as follows:


	Successor				Predecessor
	Year ended December 31,		November 1, 2020 - December 31, 2020		January 1, 2020 - October 31, 2020		Year ended December 31,
	2021						2019
U.S. federal statutory tax rate	21	%	21	%	21	%	21	%
State income taxes, net	(81)		—		—		1
Exclusion of income attributable to noncontrolling interests	(1)		—		(1)		(27)
Debt restructuring	—		—		—		—
Changes in tax attributes	(8)		—		—		(7)
Executive compensation	2		—		—		2
Change in the U.S. federal valuation allowance	(106)		(20)		(21)		10
Other	—		(1)		1		1
Effective tax rate	(173)	%	—	%	—	%	1	%

The tax effects of temporary differences resulting in deferred income tax assets and liabilities at December 31, 2021 and 2020 were as follows:


	Successor
	2021				2020
(in millions)	Deferred Tax Assets		Deferred Tax Liabilities		Deferred Tax Assets		Deferred Tax Liabilities

Property, plant and equipment	$	122	$	(151)	$	209	$	(113)
Postretirement and pension benefit plans	18		—		43		—

Asset retirement obligations	152		—		178		—
Net operating loss and tax credit carryforwards	88		—		12		—
Business interest expense carryforward	177		—		180		—

Federal benefit of state income taxes	—		(49)		—		—
Other	59		(20)		60		(20)
Subtotal	616		(220)		682		(133)
Valuation allowance	—		—		(549)		—
Total deferred taxes	$	616	$	(220)	$	133	$	(133)

Management assesses the realizability of deferred tax assets each period by considering whether it is more-likely-than-not that all or a portion of our deferred tax assets will be realized. At each reporting date new evidence is considered, both positive and negative, including whether sufficient future taxable income may be generated to permit realization of existing deferred tax assets. For the assessment period ended December 31, 2021, management concluded that it was more-likely-than-not that all of our existing deferred tax assets would be realized. This determination was based, in part, on our three-year cumulative income position, the profitability of our business in recent periods and our projections of future taxable income at current commodity prices and our current cost structure. We also considered our ability to generate future taxable income in a lower commodity price environment as a potential source of negative evidence. Based on our assessment, we determined there is sufficient positive evidence to conclude that it is more-likely-than-not that our deferred tax assets of $396 million at December 31, 2021 are realizable and we released our remaining valuation allowance in the fourth quarter of 2021.

Realization of our deferred tax assets is subjective and remains dependent on our ability to generate sufficient taxable income in future periods. The amount of deferred tax assets considered realizable is not assured and could be adjusted if estimates change or three-years of cumulative income is no longer present.

Carryforwards

As of December 31, 2021, we had U.S. federal net operating loss carryforwards of $84 million, which begin to expire in 2037, and $20 million of tax credits, which begin to expire in 2041. Our carryforward for business interest expense of $844 million does not expire.

As of December 31, 2021, we had California net operating loss carryforwards of approximately $2,431 million, which begin to expire in 2026, and $20 million of tax credit carryforwards, which begin to expire in 2041.

Our ability to utilize our net operating loss, tax credit and interest expense carryforwards is subject to an annual limitation since we experienced an "ownership change" in connection with our emergence from bankruptcy. We did not recognize a tax benefit for $17 million U.S. federal net operating loss carryforwards and $1,905 million California net operating loss carryforwards which we expect will expire unused. Additionally, we did not recognize a tax benefit for $14 million of California tax credit carryforwards which we expect will expire unused.

Unrecognized Tax Benefits

We did not record a liability for unrecognized tax benefits in any Successor period. The following is a reconciliation of unrecognized tax benefits in our Predecessor periods:


	Predecessor
	January 1, 2020 - October 31, 2020			Year ended December 31,
(in millions)			2019
Unrecognized tax benefits – beginning balance	$	101		$	25
Gross (decreases) increases – tax positions in prior year	(101)			44

Gross increases – tax positions in current year	—			32


Unrecognized tax benefits – ending balance	$	—		$	101

In 2020, we released our liabilities related to uncertain tax positions which primarily related to the calculation of the limitation on business interest expense. In 2020, the Internal Revenue Service (IRS) issued final regulations which clarified the calculation of the limitation on the deduction of business interest expense. Based on our evaluation of these final regulations, we determined that our income tax returns were filed at least on a more-likely-than-not basis and accordingly we reversed our liability for uncertain tax positions.

Other

We remain subject to audit by the Internal Revenue Service for calendar years 2018 through 2020 as well as 2017 through 2020 by the state of California.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
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-Paragraph 21
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-Topic 740
-SubTopic 10
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
-Section 50
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
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-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI http://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

STOCK-BASED COMPENSATION

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATIONOn January 18, 2021, our Board of Directors approved the California Resources Corporation 2021 Long Term Incentive Plan (Long Term Incentive Plan). The shares issuable under the new long-term incentive plan had been previously authorized by the Bankruptcy Court in connection with our emergence from Chapter 11 and the terms of the new long-term incentive plan were approved by our Board of Directors. As a result, the Long Term Incentive Plan became effective on January 18, 2021. The Long Term Incentive Plan provides for potential grants of stock options, stock appreciation rights, restricted stock awards, restricted stock units, vested stock awards, dividend equivalents, other stock-based awards and substitute awards to employees, officers, non-employee directors and other service providers of the Company and its affiliates. The Long Term Incentive Plan replaces the earlier Amended and Restated California Resources Corporation Long Term Incentive Plan which was cancelled upon our emergence from bankruptcy, along with all outstanding stock-based compensation awards granted thereunder.

The Long Term Incentive Plan provides for the reservation of 9,257,740 shares of common stock for future issuances, subject to adjustment as provided in the Long Term Incentive Plan. Shares of stock subject to an award under the Long Term Incentive Plan that expires or is cancelled, forfeited, exchanged, settled in cash or otherwise terminated without the actual delivery of shares (restricted stock awards are not considered “delivered shares” for this purpose) will again be available for new awards under the Long Term Incentive Plan. However, (i) shares tendered or withheld in payment of any exercise or purchase price of an award or taxes relating to awards, (ii) shares that were subject to an option or a stock appreciation right but were not issued or delivered as a result of the net settlement or net exercise of the option or stock appreciation right, and (iii) shares repurchased on the open market with the proceeds from the exercise price of an option, will not, in each case, again be available for new awards under the Long Term Incentive Plan.

Shares of our common stock may be withheld by us in satisfaction of tax withholding obligations arising upon the vesting of restricted stock units (RSUs) and performance stock units (PSUs).

Stock-based compensation expense is recorded on our consolidated statements of operations based on job function of the employees receiving the grants as shown in the table below.


	Successor				Predecessor
	Year ended December 31,		November 1, 2020 - December 31, 2020		January 1, 2020 - October 31, 2020		Year ended December 31,
	2021						2019
(in millions)
General and administrative expenses	$	17	$	—	$	2	$	25
Operating costs	2		—		1		7
Total stock-based compensation expense	$	19	$	—	$	3	$	32

We did not make any payments for the cash-settled portion of our awards for the year ended December 31, 2021 or in the Successor period of 2020. We made payments of $8 million for the cash-settled portion of our awards during the Predecessor period of 2020 and $25 million during the year ended December 31, 2019. We did not recognize any income tax provision or benefit related to our stock-based compensation expense in 2021, 2020 or 2019.

Successor Stock Based Compensation Plan

Management Incentive Plan

Restricted Stock Units

Executives and non-employee directors were granted RSUs during 2021 which are in the form of, or equivalent in value to, actual shares of our common stock. The awards generally vest ratably over three years, with one third of the granted units vesting on each of the first three anniversaries of the applicable date of grant. RSUs are settled in shares of our common stock at the end of the third year of the three-year vesting period.

The following table sets forth RSU activity for the year ended December 31, 2021:



	Number of Units	Weighted-Average Grant-Date Fair Value
	(in thousands)
Unvested at December 31, 2020 (Successor)	—	$	—
Granted	1,216	$	25.23
Vested	(18)	$	24.50
Cancelled or Forfeited	(68)	$	24.50
Unvested at December 31, 2021 (Successor)	1,130	$	25.28

Compensation expense was measured on the date of grant using the quoted market price of our common stock and is primarily recognized on a straight-line basis over the requisite service periods adjusted for actual forfeitures, if any.

As of December 31, 2021, the unrecognized compensation expense for our unvested RSUs was approximately $20 million and is expected to be recognized over a weighted-average remaining service period of approximately two years.

Performance Stock Units

Executives were granted PSUs during 2021. PSUs are earned upon the attainment of specified 60-trading day volume weighted average prices for shares of our common stock generally during a three-year service period commencing on the grant date. Once units are earned, the earned units are not reduced for subsequent decreases in stock price. For the duration of the three-year period, a minimum of 0% and a maximum of 100% of the PSUs granted could be earned. The grant date fair value and associated equity compensation expense was measured using a Monte Carlo simulation model which runs a probabilistic assessment of the number of units that will be earned based on a projection of our stock price during the three-year service period. Earned PSUs generally vest on the third anniversary of the grant date and are settled in shares of our common stock at that time.

The following table sets forth PSU activity for the year ended December 31, 2021:



	Number of Units	Weighted-Average Grant-Date Fair Value
	(in thousands)
Unvested at December 31, 2020 (Successor)	—	$	—
Granted	997	$	20.09
Cancelled or Forfeited	(53)	$	19.31
Unvested at December 31, 2021 (Successor)	944	$	20.14

The range of assumptions used in the Monte Carlo simulation model for the PSUs granted during 2021 were as follows:


	Successor
	2021



Expected volatility(a)	60.00% - 65.00%
Risk-free interest rate(b)	0.16% - 0.60%
Dividend yield(c)	—	%
Forecast period (in years)	2 - 3

(a)Expected volatility was calculated using the historic volatility of a peer group due to our limited trading history since our emergence from bankruptcy. For awards granted after June 2021, expected volatility included the historic volatility of our stock, excluding our first two trading months.

(b)Based on the U.S. Treasury yield for a two- or three-year term at the grant date.

(c)The Monte Carlo model used for valuation included a dividend adjusted stock price and assumed reinvestment of dividends during the performance period.

Compensation expense is recognized on a straight-line basis over the requisite service periods adjusted for actual forfeitures, if any.

As of December 31, 2021, the unrecognized compensation expense for our unvested PSUs was approximately $14 million and is expected to be recognized over a weighted-average remaining service period of approximately two years.

Long-Term Cash Incentive Awards

On June 30, 2021, we granted performance cash-settled awards to approximately 500 non-executive employees where half of the award is variable with payouts ranging from 75% to 150% of the grant value. The variable portion of the award is determined based upon the attainment of specified 60-trading day volume weighted average prices for shares of our common stock preceding each vesting date. These awards vest ratably over a three-year service period, with one third of the grants vesting on each of the first three anniversaries of the grant date. The fair value of the awards is adjusted on a quarterly basis for the cumulative change in the value determined using a Monte Carlo simulation model which runs a probabilistic assessment of our stock price for each of the three-year service periods.

The assumptions used in the Monte Carlo simulation model for the performance cash awards as of December 31, 2021 were as follows:


	Successor
	2021



Expected volatility(a)	60	%
Risk-free interest rate(b)	0.85	%
Dividend yield(c)	—	%
Forecast period (in years)	2.5

(a)Expected volatility was calculated using the historic volatility of our stock, excluding our first two trading months, and the historic volatility of a peer group.

(b)Based on the U.S. Treasury yield for the 2.5 year remaining term.

(c)The Monte Carlo model used for valuation included a dividend adjusted stock price and assumed reinvestment of dividends during the performance period.

As of December 31, 2021, the unrecognized compensation expense for all of our unvested cash-settled awards was $11 million and is expected to be recognized over a weighted-average remaining service period of approximately 2.5 years. The value of awards forfeited during the year ended December 31, 2021 was approximately $1 million.

Predecessor Stock-Based Compensation Plan

As a result of our bankruptcy, the outstanding stock-based awards granted under our Amended and Restated California Resources Corporation Long-Term Incentive Plan (Amended LTIP) were cancelled on our Effective Date.

In 2019, our stockholders approved the Amended LTIP, which provided for the issuance of stock, incentive and non-qualified stock options, restricted stock awards, restricted stock units, stock appreciation rights, stock bonuses, performance-based awards and other awards to executives, employees and non-employee directors. Shares of our common stock were permitted to be withheld by us in satisfaction of tax withholding obligations arising upon the exercise of stock options or the vesting of restricted stock units. Further, shares of our common stock were permitted to be withheld by us in payment of the exercise price of employee stock options, which also counted against the authorized shares specified above.

The maximum number of authorized shares of our common stock that were available for issuance pursuant to the Amended LTIP was 7,275,000 shares. As of December 31, 2019, 4,714,316 shares were issued or reserved under the Amended LTIP and 2,560,684 shares were available for future issuance of awards. In the second quarter of 2020, our then Board of Directors approved the following changes to awards previously granted during 2020: (i) the previously established target amounts under the 2020 variable compensation programs remained unchanged, but any unvested amounts under such programs were revised to only be eligible for cash settlement, and (ii) as a condition to receiving any award under our 2020 variable compensation programs, participants waived participation in our 2020 annual incentive program and forfeited all stock-based compensation awards previously granted in 2020. At the time of the amendments, there were no changes to any stock-based compensation awards granted prior to February 2020; however, as a result of our bankruptcy, the outstanding stock-based awards under our Amended LTIP were cancelled on our Effective Date.

The cancellation of the stock-based compensation awards granted under the Amended LTIP prior to 2020 resulted in the recognition of all previously unrecognized compensation expense for equity-based awards under the Amended LTIP and the elimination of the liability related to cash-based awards under the Amended LTIP.

Restricted Stock Units

As part of the Amended LTIP, executives and other employees were granted restricted stock units (RSUs). RSUs were service based and, depending on the terms of the awards, were settled in cash or stock at the time of vesting. The awards either (i) vested ratably over three years, with one third of the granted units becoming vested on the day before each of the first three anniversaries of the applicable date of grant, or (ii) cliff vested upon the third anniversary of the applicable date of grant. Our RSUs had nonforfeitable dividend rights, and any dividends or dividend equivalents declared during the vesting period were paid as declared.

For cash- and stock-settled RSUs, compensation value was initially measured on the date of grant using the quoted market price of our common stock. Compensation expense for cash-settled RSUs was adjusted on a monthly basis for the cumulative change in the value of the underlying stock. For the Predecessor period of 2020 and the year ended December 31, 2019, the weighted-average fair value of each stock-settled RSU granted was $6.20 and $21.71, respectively. Compensation expense for the stock-settled RSUs were recognized on a straight-line basis over the requisite service periods, adjusted for actual forfeitures. All outstanding RSUs were cancelled for no consideration as a result of our emergence from bankruptcy.

Performance Stock Units

Our performance stock units (PSUs) were restricted stock unit awards with performance targets with payouts ranging from 0% to 200% of the target award. Up to the target amount of the PSUs were eligible to be settled in cash or stock, and any amount of the PSUs earned in excess of the target amounts of such PSUs were to be settled in cash. These awards accrued dividend equivalents as dividends are declared during the vesting period, which were paid upon certification for the number of earned PSUs. Compensation expense was adjusted quarterly, on a cumulative basis, for any changes in the number of share equivalents expected to be paid based on the relevant performance criteria. For the Predecessor period of 2020 and the year ended December 31, 2019, the weighted-average fair value of each stock-settled PSU granted was $6.20 and $21.71, respectively. All outstanding PSUs were cancelled for no consideration as a result of our emergence from bankruptcy.

Stock Options

We granted stock options to certain executives under our Amended LTIP. These options permitted the purchase of Predecessor common stock at exercise prices no less than the fair market value of the stock on the date the options were granted, with the majority of options being granted at 10% above fair market value. The options had terms of seven years and vested ratably over three years, with one third of the granted options becoming exercisable on the day before each of the first three anniversaries of the applicable date of grant, subject to certain restrictions including continued employment. For the Predecessor period of 2020 and the year ended December 31, 2019, the weighted-average fair value of each option granted was $6.82 and $23.88, respectively. All outstanding stock options were cancelled for no consideration as a result of our emergence from bankruptcy.

EQUITY

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

EQUITY

On the Effective Date, all of our Predecessor common and preferred stock, including contracts on our equity were cancelled pursuant to the Plan and 83,319,660 shares of new common stock were issued. See Note 14 Chapter 11 Proceedings for further information.

The following is a summary of changes in our shares outstanding during the year ended December 31, 2021 (Successor):


			Common Stock
			(in thousands)






Balance, December 31, 2020			83,319,660
Shares issued for warrant exercises			51,377
Shares issued under stock-based compensation arrangements			18,173
Shares repurchased			(4,089,988)
Balance, December 31, 2021			79,299,222

Share Repurchase Program

During 2021, our Board of Directors authorized a Share Repurchase Program for up to $250 million of our common stock through June 30, 2022. In February 2022, our Share Repurchase Program was increased by $100 million to $350 million in aggregate and we extended the term of the program until December 31, 2022. See Note 16 Subsequent Events for more information on this increase. The repurchases may be effected from time-to-time through open market purchases, privately negotiated transactions, Rule 10b5-1 plans, accelerated stock repurchases, derivative contracts or otherwise in compliance with Rule 10b-18, subject to market conditions. The Share Repurchase Program does not obligate us to repurchase any dollar amount or number of shares and our Board of Directors may modify, suspend, or discontinue authorization of the program at any time.

As of December 31, 2021, we repurchased 4,089,988 shares of our common stock, at an average price of $36.08 per share, through either open market purchases or our Rule 10b5-1 plan for $148 million. Shares repurchased were held as treasury stock as of December 31, 2021.

Dividends

On November 11, 2021, our Board of Directors declared a quarterly cash dividend of $0.17 per share of common stock. The dividend was payable to shareholders of record at the close of business on December 1, 2021 and was paid on December 16, 2021. The dividend paid in the fourth quarter of 2021 was made pursuant to a cash dividend policy approved by the Board of Directors, which anticipates a total annual dividend of $0.68, payable in quarterly increments of $0.17 per share of common stock.

The actual declaration of future cash dividends, and the establishment of record and payment dates, is subject to final determination by our Board of Directors each quarter after reviewing our financial performance and position. See Note 16 Subsequent Events for more information on future cash dividends.

Noncontrolling Interests

BSP JV

Our development joint venture with Benefit Street Partners (BSP JV) contemplated that BSP would contribute funds to the development of our oil and natural gas properties in exchange for preferred interests in the BSP JV. In September 2021, BSP's preferred interest was automatically redeemed in full under the terms of the joint venture agreement. Prior to the redemption, we made aggregate distributions to BSP of $50 million in 2021 which reduced noncontrolling interest on our consolidated balance sheet and was reported as a financing cash outflow on our consolidated statement of cash flows.

BSP's preferred interest was reported in equity on our consolidated balance sheets and BSP’s share of net income (loss) was reported in net income attributable to noncontrolling interests in our consolidated statements of operations for all periods prior to redemption. Upon redemption, we reallocated the remaining balance of $7 million in noncontrolling interest and increased our additional paid-in capital by the same amount.

Ares JV

See Note 14 Chapter 11 Proceedings for information on our Ares JV and Settlement Agreement.

Warrants

On the Effective Date, we issued warrants exercisable for an aggregate 4,384,182 shares of Successor common stock. The warrants are exercisable at an exercise price of $36 per share until October 2024. The Warrant Agreement contains customary anti-dilution adjustments in the event of any stock split, reverse stock split, stock dividend, equity awards under our Management Incentive Plan or other distributions. The warrant holder may elect, in its sole discretion, to pay cash or to exercise on a cashless basis, pursuant to which the holder will not be required to pay cash for shares of common stock upon exercise of the warrant but will instead receive fewer shares.

During 2021, we had issued 51,377 shares of common stock and received approximately $2 million in cash related to warrant exercises. As of December 31, 2021, we had outstanding warrants exercisable into 4,296,005 share of Successor common stock.

Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (loss) consists of unrealized gains (losses) associated with our pension and postretirement benefit plans. During the year ended December 31, 2021 we recognized a benefit of $65 million related to a change in our postretirement benefit plan design. See Note 12 Pension and Postretirement Benefit Plans for additional information on this plan amendment.

The elimination of Predecessor equity balances as part of fresh start accounting resulted in a reclassification of $23 million of accumulated other comprehensive loss to additional paid-in capital upon emergence from bankruptcy. See Note 15 Fresh Start Accounting for additional information.

Employee Stock Purchase Plan

On May 26, 2020, our California Resources Corporation 2014 Employee Stock Purchase Plan was terminated by our then Board of Directors. No additional shares were issued under the plan after March 31, 2020.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

EARNINGS PER SHARE

Basic and diluted earnings per share (EPS) were calculated using the treasury stock method for the Successor periods and the two-class method, which is required when there are participating securities, for the Predecessor periods. Certain of our restricted and performance stock unit awards outstanding prior to our emergence from bankruptcy were considered participating securities because they had non-forfeitable dividend rights at the same rate as our pre-emergence common stock. Our restricted and performance stock unit awards granted subsequent to our emergence from bankruptcy, as described in Note 9 Stock-Based Compensation, are not considered participating securities since the dividend rights on unvested shares are forfeitable.

Under the two-class method, undistributed earnings allocated to participating securities are subtracted from net income attributable to common stock in determining net income available to common stockholders. In loss periods, no allocation is made to participating securities because participating securities do not share in losses.

For basic EPS, the weighted-average number of common shares outstanding excludes underlying shares related to equity-settled awards and warrants. For diluted EPS, the basic shares outstanding are adjusted by adding potential common shares, if dilutive. Under the treasury stock method, we assume that proceeds from the exercise of options, warrants and similar instruments are used to purchase common stock at average market price of our stock each period. For PSUs, we use the 60-trading day volume weighted-average prices of our common stock to determine the percentage earned for each period and the number of potential common shares included in diluted EPS. An insignificant number of potential common shares were not earned, and therefore were not treated as issued in our diluted EPS calculation for the year ended December 31, 2021.

The following table presents the calculation of basic and diluted EPS.


	Successor				Predecessor
	Year ended December 31,		November 1, 2020 - December 31, 2020		January 1, 2020 - October 31, 2020		Year ended December 31,
	2021						2019
(in millions, except per share amounts)
Numerator for Basic and Diluted EPS
Net income (loss)	$	625	$	(125)	$	1,996	$	99
Less: Net income attributable to noncontrolling interests	(13)		2		(107)		(127)
Net income (loss) attributable to common stock	612		(123)		1,889		(28)
Less: Net income allocated to participating securities	—		—		(22)		—
Modification of noncontrolling interest(a)	—		—		138		—
Net (loss) income available to common stockholders	$	612	$	(123)	$	2,005	$	(28)

Denominator for Basic EPS
Weighted-average common shares	82.0		83.3		49.4		49.0

Potential dilutive common shares:
Restricted Stock Units	0.5		—		0.2		—
Performance Stock Units	0.5		—		—		—


Denominator for Diluted Earnings per Share
Weighted-average shares - diluted	83.0		83.3		49.6		49.0

EPS
Basic	$	7.46	$	(1.48)	$	40.59	$	(0.57)
Diluted	$	7.37	$	(1.48)	$	40.42	$	(0.57)

(a) Modification of noncontrolling interest relates to the deemed redemption of ECR's noncontrolling interest in the Ares JV in the third quarter of 2020. For more information on the Ares JV and the Settlement Agreement, see Note 14 Chapter 11 Proceedings.

The following table presents potentially dilutive weighted-average common shares which were excluded from the denominator for diluted earnings per share:


	Successor		Predecessor
	Year ended December 31,	November 1, 2020 - December 31, 2020	January 1, 2020 - October 31, 2020	Year ended December 31,
	2021			2019
(in millions)
Shares issuable upon exercise of warrants which were issued at emergence from bankruptcy	4.4	4.4	—	—
Shares issuable upon exercise of warrants in connection with our Alpine JV	—	—	1.3	0.6
Shares issuable upon settlement of RSUs	—	—	0.2	0.6
Shares issuable upon settlement of PSUs	—	—	0.8	0.5
Shares issuable upon exercise of stock options	—	—	1.7	1.4
Total antidilutive shares	4.4	4.4	4.0	3.1

PENSION AND POSTRETIREMENT BENEFIT PLANS

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

PENSION AND POSTRETIREMENT BENEFIT PLANS

We have various qualified and non-qualified benefit plans for our salaried and union and nonunion hourly employees.

Defined Contribution Plans

All of our employees are eligible to participate in our tax-qualified, defined contribution retirement plan that provides for periodic cash contributions by us based on annual cash compensation and employee deferrals.

Certain salaried employees participate in supplemental plans that restore benefits lost due to government limitations on qualified plans. As of December 31, 2021 and 2020, we recognized $30 million and $35 million in other long-term liabilities for these supplemental plans, respectively.

We expensed $19 million in 2021, $4 million in the Successor period of 2020, $28 million in the Predecessor period of 2020 and $36 million in 2019 under the provisions of these defined contribution and supplemental plans.

Defined Benefit Plans

Participation in defined benefit pension plans sponsored by us is limited. During 2021, approximately 60 employees accrued benefits under these plans, all of whom were union employees.

Pension costs for the defined benefit pension plans, determined by independent actuarial valuations, are funded by us through payments to trust funds, which are administered by independent trustees.

Postretirement Benefit Plans

We provide postretirement medical and dental benefits for our eligible former employees and their dependents. Our former employees are required to make monthly contributions to the plan, but the benefits are primarily funded by us as claims are paid during the year.

In 2021, we adopted a postretirement benefit design change, which terminated the employer cost sharing for post age 65 retiree health benefits effective as of January 1, 2022. Our retiree health care benefits provided up to age 65 to current and future retirees who meet certain eligibility requirements were not affected by this change. As a result of this change, our postretirement medical benefit obligation was remeasured as of September 30, 2021. The remeasurement resulted in a decrease to the benefit obligation of $65 million with a corresponding increase to accumulated other comprehensive income. The benefit from the change in plan design will be recognized in our statement of operations over the average remaining years of future service for active employees as a component of other non-operating expenses, net.

Obligations and Funded Status of our Defined Benefit Plans

The following table shows the amounts recognized on our balance sheets related to pension and postretirement benefit plans, as well as plans that we or our subsidiaries sponsor, as of December 31, 2021 and 2020 (in millions):


	Successor
	2021				2020
	Pension		Postretirement		Pension		Postretirement
Amounts recognized on the balance sheet
Accrued liabilities	$	—	$	(4)	$	—	$	(4)
Other long-term liabilities	(15)		(44)		(15)		(125)
	$	(15)	$	(48)	$	(15)	$	(129)

Amounts recognized in accumulated other comprehensive income (loss)	$	(2)	$	74	$	(1)	$	(7)

The following table shows the funding status of our pension and post-retirement benefit plans along with a reconciliation of our benefit obligations and fair value of plan asset as of December 31, 2021 and 2020 (in millions):


	Successor				Predecessor
	Year ended December 31,		November 1, 2020 - December 31, 2020		January 1, 2020 - October 31, 2020
	2021
Pension
Changes in the benefit obligation
Benefit obligation—beginning of year	$	47	$	46	$	45
Service cost—benefits earned during the period	1		—		1
Interest cost on projected benefit obligation	1		—		1
Actuarial loss	2		3		1

Benefits paid	(7)		(2)		(2)


Benefit obligation—end of year	$	44	$	47	$	46

Changes in plan assets
Fair value of plan assets—beginning of year	$	32	$	26	$	27
Actual return on plan assets	2		2		1
Employer contributions	2		6		—
Benefits paid	(7)		(2)		(2)
Fair value of plan assets—end of year	$	29	$	32	$	26

Net benefit liability (unfunded status)	$	(15)	$	(15)	$	(20)

Postretirement
Changes in the benefit obligation (in millions)
Benefit obligation—beginning of year	$	129	$	122	$	116
Service cost—benefits earned during the period	4		1		4
Interest cost on projected benefit obligation	3		—		3
Actuarial (gain) loss	(17)		7		2


Benefits paid	(5)		(1)		(3)
Plan amendment	(65)		—		—


Benefit obligation—end of year	$	49	$	129	$	122

Changes in plan assets
Fair value of plan assets—beginning of year	$	—	$	—	$	—

Employer contributions	6		1		3
Benefits paid	(5)		(1)		(3)
Fair value of plan assets—end of year	$	1	$	—	$	—

Net benefit liability (unfunded status)	$	(48)	$	(129)	$	(122)

Our accumulated benefit obligation for our defined benefit pension plans exceeded the fair value of our plan assets as shown in the table below for the years ended December 31:


	Successor
	2021		2020
(in millions)
Projected benefit obligation	$	44	$	47
Accumulated benefit obligation	$	39	$	43
Fair value of plan assets	$	29	$	32

Components of Net Periodic Benefit Cost

We record the service cost component of net periodic pension cost with other employee compensation and all other components, including settlement costs, are reported as other non-operating expenses on our consolidated statements of operations. The following table set forth the components of our net periodic pension and postretirement benefit costs (in millions):


	Successor				Predecessor
	Year ended December 31,		November 1, 2020 - December 31, 2020		January 1, 2020 - October 31, 2020		Year ended December 31,
	2021						2019
Pension
Net periodic benefit costs
Service cost—benefits earned during the period	$	1	$	—	$	1	$	1
Interest cost on projected benefit obligation	1		—		1		2
Expected return on plan assets	(1)		—		(1)		(2)
Amortization of net actuarial loss	—		—		1		1
Settlement costs	—		—		1		9
Net periodic benefit costs	$	1	$	—	$	3	$	11

Postretirement
Net periodic benefit costs
Service cost—benefits earned during the period	$	4	$	1	$	4	$	4
Interest cost on projected benefit obligation	3		—		3		4

Cost of special termination benefits	—		—		—		6
Amortization of prior service cost credit	(1)		—		—		—
Settlement costs	—		—		1		—

Net periodic benefit costs	$	6	$	1	$	8	$	14

Components of accumulated other comprehensive income (loss) (AOCI) are presented net of tax. The following table presents the changes in plan assets and benefit obligations recognized in other comprehensive (loss) income before tax (in millions):


	Successor				Predecessor
	Year ended December 31,		November 1, 2020 - December 31, 2020		January 1, 2020 - October 31, 2020		Year ended December 31,
	2021						2019
Pension
Amounts recognized in other comprehensive income (loss) (in millions)
Net actuarial loss	$	(1)	$	(1)	$	(1)	$	(6)

Settlement costs	—		—		1		9
Amortization of net actuarial gain/loss	—		—		1		1
Total recognized in other comprehensive (loss) income	$	(1)	$	(1)	$	1	$	4

Postretirement

Net actuarial gain (loss)	$	17	$	(7)	$	(2)	$	(19)
Net prior service credit	65		—		—		—
Settlement costs	—		—		1		(2)
Amortization of prior service cost credit	(1)		—		—		—
Total recognized in other comprehensive income (loss)	$	81	$	(7)	$	(1)	$	(21)

Settlement costs related to our pension and postretirement plans were associated with early retirements.

The following tables sets forth the valuation assumptions, on a weighted-average basis, used to determine our benefit obligations and net periodic benefit cost:


	Successor				Predecessor
	Year ended December 31,		November 1, 2020 - December 31, 2020		January 1, 2020 - October 31, 2020
	2021
Pension
Benefit Obligation Assumptions
Discount rate	2.79	%	2.42	%	2.70	%
Rate of compensation increase	4.00	%	4.00	%	4.00	%
Net Periodic Benefit Cost Assumptions
Discount rate	2.42	%	2.70	%	3.16	%
Assumed long-term rate of return on assets	6.25	%	5.42	%	5.42	%
Rate of compensation increase	4.00	%	4.00	%	4.00	%


	Successor						Predecessor
	October 1, 2021 - December 31, 2021		January 1, 2021 - September 30, 2021		November 1, 2020 - December 31, 2020		January 1, 2020 - October 31, 2020
Postretirement(a)
Benefit Obligation Assumptions
Discount rate	2.75	%	2.69	%	2.92	%	3.11	%
Net Periodic Benefit Cost Assumptions
Discount rate	2.69	%	2.92	%	3.11	%	3.48	%

(a)Our plan design change on September 30, 2021 resulted in a remeasurement of our postretirement benefit obligations.

For pension plans and postretirement benefit plans that we or our subsidiaries sponsor, we based the discount rate on the Aon AA Above Median yield curve in both 2021 and 2020. The weighted-average rate of increase in future compensation levels is consistent with our past and anticipated future compensation increases for employees participating in pension plans that determine benefits using compensation. The assumed long-term rate of return on assets is estimated with regard to current market factors but within the context of historical returns for the asset mix that exists at year end.

In 2021, we used the Society of Actuaries Pri-2012 mortality assumptions reflecting the MP-2021 scale which plan sponsors in the U.S. use in the actuarial valuations that determine a plan sponsor’s pension and postretirement obligations. Changes in mortality assumptions were reflected in the valuations of our pension and postretirement benefit obligations as part of fresh start accounting upon emergence from bankruptcy. These assumptions did not significantly change our pension benefit obligations or postretirement benefit obligations in 2021 as compared to the prior year.

The postretirement benefit obligation was determined by application of the terms of medical and dental benefits, including the effect of established maximums on covered costs, together with relevant actuarial assumptions and healthcare cost trend rates projected at an assumed U.S. Consumer Price Index (CPI) increase of 2.57% and 2.06% as of December 31, 2021 and 2020, respectively. Under the terms of our postretirement plans, participants other than certain union employees pay for all medical cost increases in excess of increases in the CPI. For those union employees, we projected that, as of December 31, 2021, health care cost trend rates would decrease from 6.25% in 2021 until they reach 4.50% in 2029 and remain at 4.50% thereafter.

The actuarial assumptions used could change in the near term as a result of changes in expected future trends and other factors that, depending on the nature of the changes, could cause increases or decreases in the plan assets and liabilities.

Fair Value of Plan Assets

We employ a total return investment approach that uses a diversified blend of equity and fixed-income investments to optimize the long-term return of plan assets at a prudent level of risk. Equity investments were diversified across U.S. and non-U.S. stocks, as well as differing styles and market capitalizations. Other asset classes, such as private equity and real estate, may have been used with the goals of enhancing long-term returns and improving portfolio diversification. In 2021 and 2020, the target allocation of plan assets was 65% equity securities and 35% debt securities. Investment performance was measured and monitored on an ongoing basis through quarterly investment portfolio and manager guideline compliance reviews, annual liability measurements and periodic studies. Our postretirement benefit plan assets of $1 million are primarily invested in mutual funds.

The fair values of our pension plan assets by asset category are as follows:


	Fair Value Measurements at December 31, 2021 (Successor)
	Level 1		Level 2		Level 3		Total
Asset Class	(in millions)
Cash equivalents	$	5	$	—	$	—	$	5
Commingled funds
Fixed income	—		2		—		2
U.S. equity	—		3		—		3
International equity	—		2		—		2
Mutual funds
Bond funds	5		—		—		5

Value funds	2		—		—		2
Growth funds	5		—		—		5
Guaranteed deposit account	—		—		5		5
Total pension plan assets	$	17	$	7	$	5	$	29


	Fair Value Measurements at December 31, 2020 (Successor)
	Level 1		Level 2		Level 3		Total
Asset Class	(in millions)
Cash equivalents	$	6	$	—	$	—	$	6
Commingled funds
Fixed income	—		2		—		2
U.S. equity	—		3		—		3
International equity	—		2		—		2
Mutual funds
Bond funds	5		—		—		5

Value funds	2		—		—		2
Growth funds	6		—		—		6
Guaranteed deposit account	—		—		6		6
Total pension plan assets	$	19	$	7	$	6	$	32

Expected Contributions and Benefit Payments

In 2022, we expect to contribute $3 million to our pension and $5 million to our postretirement benefit plans. Estimated future undiscounted benefit payments by the plans, which reflect expected future service, as appropriate, are as follows:


	Pension Benefits		Postretirement Benefits
For the years ended December 31,	(in millions)
2022	$	9	$	5
2023	$	3	$	5
2024	$	3	$	4
2025	$	3	$	4
2026	$	3	$	4
2027 to 2031 Payouts	$	10	$	14

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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+ Details

REVENUE	12 Months Ended
REVENUE	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
REVENUE	REVENUE Commodity Sales Contracts We recognize revenue from the sale of our production when delivery has occurred and control passes to the customer. Our contracts with customers are short term, typically less than a year. We consider our performance obligations to be satisfied upon transfer of control of the commodity. In certain instances, transportation and processing fees are incurred by us prior to control being transferred to customers. We record these transportation costs as a component of operating expenses on our consolidated statements of operations. Our commodity sales contracts are based on index prices. We recognize revenue in the amount that we expect to receive once we are able to adequately estimate the consideration (i.e., when market prices are known). Our contracts with customers typically require payment within 30 days following the month of delivery. See Note 1 Nature of Business, Summary of Significant Accounting Policies and Other for disaggregated revenue by commodity type. Electricity The electrical output of our Elk Hills power plant that is not used in our operations is sold to the wholesale power market and a utility under a power purchase and sales agreement (PPA) through December 2023, which includes a monthly capacity payment plus a variable payment based on the quantity of power purchased each month. Revenue is recognized when obligations under the terms of a contract are satisfied; generally, this occurs upon delivery of the electricity. Revenue is measured as the amount of consideration we expect to receive based on the average index or California Independent System Operator (CAISO) market pricing with payment due the month following delivery. Payments under our PPA are settled monthly. We consider our performance obligations to be satisfied upon delivery of electricity or as the contracted amount of energy is made available to the customer in the case of capacity payments. Sales of Purchased Natural Gas To transport our natural gas as well as third-party volumes, we have entered into firm pipeline commitments. In addition, we may from time-to-time enter into natural gas purchase and sale agreements with third parties to take advantage of market dislocations. We report sales of purchased natural gas in total operating revenues and associated purchases of natural gas related to our trading activities in total operating expenses on our consolidated statements of operations. We consider our performance obligations to be satisfied upon transfer of control of the commodity.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

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+ Details

CHAPTER 11 PROCEEDINGS

12 Months Ended

Dec. 31, 2021

Plan of Reorganization [Abstract]

CHAPTER 11 PROCEEDINGS

The commencement of the Chapter 11 Cases, as described in Note 1 Nature of Business, Summary of Significant Accounting Policies and Other, constituted an event of default that accelerated our obligations under the following agreements: (i) Credit Agreement, dated as of September 24, 2014, among JPMorgan Chase Bank, N.A., as administrative agent, and the lenders that are party thereto (2014 Revolving Credit Facility), (ii) Credit Agreement, dated as of August 12, 2016, among The Bank of New York Mellon Trust Company, N.A., as collateral and administrative agent, and the lenders that are party thereto (2016 Credit Agreement), (iii) Credit Agreement, dated as of November 17, 2017, among The Bank of America Mellon Trust Company, N.A., as administrative agent, and the lenders that are party thereto (2017 Credit Agreement), and (iv) the indentures governing our 8% Senior Secured Second Lien Notes due 2022 (Second Lien Notes), 5.5% Senior Notes due 2021 (2021 Notes) and 6% Senior Notes due 2024 (2024 Notes). This resulted in the automatic and immediate acceleration of all of our outstanding pre-petition long-term debt. Any efforts to enforce payment obligations related to the acceleration of our long-term debt were automatically stayed by the commencement of our Chapter 11 Cases, and the creditors’ rights of enforcement were subject to the applicable provisions of the Bankruptcy Code.

Upon the Effective Date, the balances of the 2016 Credit Agreement, 2017 Credit Agreement, Second Lien Notes, 2021 Notes and 2024 Notes were cancelled pursuant to the terms of the Plan, resulting in a gain of approximately $4 billion included in "Reorganization items, net" on our consolidated statement of operations for the period ended October 31, 2020. Our 2014 Revolving Credit Facility was repaid in full with proceeds from our debtor-in-possession facilities described below and terminated.

Debtor-in-Possession Credit Agreements

On July 23, 2020, we entered into a Senior Secured Superpriority DIP Credit Agreement with JP Morgan, as administrative agent, and certain other lenders (Senior DIP Credit Agreement), which provided for the senior DIP facility in an aggregate principal amount of up to $483 million (Senior DIP Facility). The Senior DIP Facility included a $250 million revolving facility which was primarily used by us to (i) fund working capital needs, capital expenditures and additional letters of credit during the pendency of the Chapter 11 Cases and (ii) pay certain costs, fees and expenses related to the Chapter 11 Cases and the Senior DIP Facility. Following a hearing, the Bankruptcy Court entered a final order on August 14, 2020, which approved the Senior DIP Facility on a final basis. The Senior DIP Facility also included (i) a $150 million letter of credit facility which was used to redeem letters of credit outstanding under the 2014 Revolving Credit Facility as issued under the Senior DIP Facility, and (ii) $83 million of term loan borrowings which were used to repay a portion of the 2014 Revolving Credit Facility. The Senior DIP Facility allowed for the issuance of an additional $35 million of letters of credit.

On July 23, 2020, we entered into a Junior Secured Superpriority DIP Credit Agreement with Alter Domus, as administrative agent, and certain lenders (Junior DIP Credit Agreement), which provided for a junior DIP facility in an aggregate principal amount of $650 million (Junior DIP Facility and together with the Senior DIP Facility, the DIP Facilities). The proceeds of the Junior DIP Facility were used to (i) refinance in full all remaining obligations under the 2014 Revolving Credit Facility and (ii) pay certain costs, fees and expenses related to the Chapter 11 Cases and the Junior DIP Facility.

The Senior DIP Credit Agreement and Junior DIP Credit Agreement both contained representations, warranties, covenants and events of default that are customary for DIP facilities of their type, including certain milestones applicable to the Chapter 11 Cases, compliance with an agreed budget, hedging on not less than 25% of our share of expected crude oil production for a specified period, and other customary limitations on additional indebtedness, liens, asset dispositions, investments, restricted payments and other negative covenants, in each case subject to exceptions.

Borrowings under the Senior DIP Facility bore interest at the London interbank offered rate (LIBOR) plus 4.5% for LIBOR loans and the alternative base rate (ABR) plus 3.5% for alternative base rate loans. We also agreed to pay an upfront fee equal to 1.0% on the commitment amount of the Senior DIP Facility and quarterly commitment fees of 0.5% on the undrawn portion of the Senior DIP Facility.

Borrowings under the Junior DIP Facility bore interest at a rate of LIBOR plus 9.0% for LIBOR loans and ABR plus 8.0% for alternate base rate loans. We also agreed to pay an upfront fee equal to 1.0% of the commitment amount funded on the closing date and a fronting fee to a fronting lender.

Certain of our subsidiaries, including each of the debtors in the Chapter 11 Cases, guaranteed all obligations under the Senior DIP Credit Agreement and Junior DIP Credit Agreement. We also granted liens on substantially all of our assets, whether now owned or hereafter acquired to secure the obligations under the Senior DIP Credit Agreement and Junior DIP Credit Agreement.

The Senior DIP Facility was repaid in full and terminated on the Effective Date using proceeds borrowed under our new Revolving Credit Facility discussed in Note 4 Debt. The Junior DIP Facility was also repaid in full and terminated on the Effective Date using (i) $200 million from the Second Lien Term Loan discussed in Note 4 Debt and (ii) $450 million from the Subscription Rights Offering discussed below.

Ares JV Settlement Agreement and Noncontrolling Interest

In February 2018, our wholly-owned subsidiary California Resources Elk Hills, LLC (CREH) entered into a midstream JV with ECR, a portfolio company of Ares, with respect to the Elk Hills power plant (a 550-megawatt natural gas fired power plant) and a 200 MMcf/day cryogenic gas processing plant. These assets were held by the joint venture entity, Elk Hills Power, LLC (Ares JV or Elk Hills Power), and each of CREH and ECR held an equity interest in this entity. Our consolidated statements of operations for the Predecessor reflect the operations of the Ares JV, with ECR's share of net income (loss) reported in net income attributable to noncontrolling interests. Distributions to ECR reduced the carrying amount of noncontrolling interests on our consolidated balance sheets and are reported as a financing cash outflow for the Predecessor on our consolidated statements of cashflows. ECR's redeemable noncontrolling interests were reported in mezzanine equity due to an embedded optional redemption feature.

Prior to our Effective Date, we held 50% of the Class A common interest and 95.25% of the Class C common interest in the Ares JV. ECR held 50% of the Class A common interest, 100% of the Class B preferred interest and 4.75% of the Class C common interest. The Ares JV was required to distribute each month its excess cash flow over its working capital requirements first to the Class B holders and then to the Class C common interests, on a pro-rata basis.

We entered into a Settlement Agreement with ECR and Ares which, among other things, granted us the right (Conversion Right) to acquire all (but not less than all) of the equity interests of Elk Hills Power owned by ECR in exchange for the EHP Notes, 17.3 million shares of common stock and approximately $2 million in cash. The Conversion Right was exercised on the Effective Date. See Note 4 Debt for more information on the EHP Notes.

Although certain provisions in the Settlement Agreement were not effective until certain conditions were met, such as the Bankruptcy Court entering a final order, we determined that the amended terms were substantively different such that the existing Class A common, Class B preferred and Class C common member interests held by ECR were treated as redeemed in exchange for new member interests issued at fair value in the third quarter of 2020. The estimated fair value of the new member interests was lower than the carrying value of the existing member interests by $138 million. In accordance with GAAP, the modification of noncontrolling interest was recorded to additional paid-in capital and was included in our earnings per share calculations. See Note 11 Earnings per Share for adjustments to net income (loss) attributable to common stock of the Predecessor which includes a modification of noncontrolling interest.

We exercised the Conversion Right on the Effective Date and issued the EHP Notes in the aggregate principal amount of $300 million, new common stock comprising approximately 20.8% (subject to dilution) of our outstanding common stock at that time and approximately $2 million in cash (Conversion). Upon the Conversion, Elk Hills Power became our indirect wholly-owned subsidiary, and Ares and its affiliates ceased to have any direct or indirect interest in Elk Hills Power. In connection with the Conversion, Elk Hills Power’s limited liability company agreement was amended and restated.

The following table presents the changes in noncontrolling interests for our consolidated joint ventures during the Predecessor periods ended December 31, 2019 and October 31, 2020, including both our BSP JV and Ares JV.


	Equity Attributable to Noncontrolling Interests						Mezzanine Equity - Redeemable Noncontrolling Interest
	Ares JV		BSP JV		Total		Ares JV		Total
	(in millions)
Balance, December 31, 2018	$	15	$	99	$	114	$	756	$	756
Net (loss) income attributable to noncontrolling interests	(7)		17		10		117		117
Contributions from noncontrolling interest holders, net	—		49		49		—		—
Distributions to noncontrolling interest holders	(8)		(72)		(80)		(71)		(71)
Balance, December 31, 2019	$	—	$	93	$	93	$	802	$	802
Net income (loss) attributable to noncontrolling interests	3		10		13		94		94

Distributions to noncontrolling interest holders	(3)		(34)		(37)		(67)		(67)
Modification of noncontrolling interest	—		—		—		(138)		(138)
Acquisition of noncontrolling interest	—		—		—		(691)		(691)
Fair value adjustment of noncontrolling interest in fresh start accounting	—		7		7		—		—
Balance, October 31, 2020	$	—	$	76	$	76	$	—	$	—

In connection with the Conversion, on the Effective Date, we entered into a Sponsor Support Agreement dated the Effective Date (Support Agreement) pursuant to which, among other things, the parties agreed that Elk Hills Power will be our primary provider of electricity to, and will be the primary processor of our natural gas produced from, the Elk Hills field, which is consistent with our current practice.

On the Effective Date, in connection with the Conversion, we terminated: (a) the Commercial Agreement, dated as of February 7, 2018, by and between Elk Hills Power and CREH and (b) the Master Services Agreement, dated as of February 7, 2018, by and between Elk Hills Power and CREH.

Rights Offering and Backstop

Pursuant to the Plan, we issued subscription rights to holders of our 2017 Credit Agreement, 2016 Credit Agreement, Second Lien Notes, 2021 Notes and 2024 Notes (Rights Offering). These subscription rights entitled holders to purchase up to $450 million of newly issued shares of common stock at $13 per share upon our emergence from bankruptcy. Certain holders of our pre-emergence indebtedness agreed to backstop the Rights Offering and purchase additional shares in the event the Rights Offering was not fully subscribed in exchange for a premium. The Rights Offering closed on the Effective Date and we issued 38.1 million shares of common stock pursuant to the Rights Offering at that time, including 3.5 million common shares issued to the backstop parties as a premium.

Emergence

The following transactions occurred on October 27, 2020, the effective date of the Plan, where we issued an aggregate of 83.3 million shares of new common stock, reserved 4.4 million shares for future issuance upon exercise of the warrants described in Note 10 Equity and reserved 9.3 million shares for future issuance under our management incentive plan described in Note 9 Stock-Based Compensation:

•We acquired all of the member interests in the Ares JV held by ECR in exchange for the EHP Notes, 17.3 million shares of new common stock and approximately $2 million in cash;

•Holders of secured claims under the 2017 Credit Agreement received 22.7 million shares of new common stock in exchange for those claims, and holders of deficiency claims under the 2017 Credit Agreement and all outstanding obligations under the 2016 Credit Agreement, Second Lien Notes, 2021 Notes and 2024 Notes received 4.4 million shares of new common stock in exchange for those claims;

•In connection with the Subscription Rights and Backstop Commitment Agreement, 34.6 million shares of new common stock were issued in exchange for $446 million (net of a $4 million allocation adjustment credit paid to certain backstop parties), the gross proceeds of which were used to pay down our Junior DIP Facility;

•We issued 3.5 million shares as consideration for the backstop commitment premium; and

•We issued an aggregate of 821,000 shares to the lenders under our Junior DIP Facility as an exit fee.

All existing equity interests of the Predecessor, including contracts on equity, were cancelled and their holders received no recovery.

As a condition to our emergence, we repaid the outstanding balance of our debtor-in-possession financing with proceeds from our equity offering, Second Lien Term Loan and our new Revolving Credit Facility. For more information on our post-emergence indebtedness, see Note 4 Debt.

On October 27, 2020, all but one of our existing directors resigned and seven new non-employee directors were appointed to our Board of Directors (Board) in connection with our emergence from bankruptcy. In addition, our former Chief Executive Officer and director Todd A. Stevens departed on December 31, 2020. Our new Board currently consists of nine directors.

FRESH START ACCOUNTING

Fresh Start Accounting

We adopted fresh start accounting upon emergence from bankruptcy because (1) the holders of existing voting shares prior to emergence received less than 50% of our new voting shares following our emergence from bankruptcy and (2) the reorganization value of our assets immediately prior to the confirmation of the Plan was less than the post-petition liabilities and allowed claims, which were included in liabilities subject to compromise as of our emergence date.

For financial reporting purposes, fresh start accounting was applied as of October 31, 2020, an accounting convenience date, to coincide with the timing our normal month-end close process. We evaluated and concluded that events between October 28, 2020 and October 31, 2020 were not significant and the use of an accounting convenience date was appropriate.

Under fresh start accounting, the reorganization value of the emerging entity was assigned to individual assets and liabilities based on their estimated relative fair values. Reorganization value represents the fair value of our total assets prior to the consideration of liabilities and is intended to approximate the amount a willing buyer would pay for the assets immediately after a restructuring. The reorganization value was derived from our enterprise value, which was the estimated fair value of our long-term debt, asset retirement obligations and shareholder’s equity at emergence. In support of the Plan, our enterprise value was estimated and approved by the Bankruptcy Court to be in the range of $2.2 billion to $2.8 billion.

This valuation analysis was prepared using reserve information, development schedules, other financial information and financial projections, and applying standard valuation techniques, including net asset value analysis, precedent transactions analyses and comparable public company analyses. We engaged third-party valuation advisors to assist in determining the value of our Elk Hills power plant, cryogenic gas processing plant, certain real estate and warrants. Using these valuations along with our own internal estimates and assumptions for the value of our proved oil and natural gas reserves, we estimated our enterprise value to be $2.5 billion for financial reporting purposes.

The following is a summary of our valuation approaches and assumptions for significant non-current assets and liabilities, which excludes our working capital where our carrying value approximated fair value.

Property, Plant and Equipment

Our principal assets are our oil and natural gas properties. In valuing our proved oil and natural gas properties we used an income approach. Our estimated future revenue, operating costs and development plans were developed internally by our reserve engineers. We applied a discount rate using a market-participant weighted average cost of capital which utilized a blended expected cost of debt and expected returns on equity for similar industry participants. We used a risk-adjusted discount rate for our proved undeveloped locations only. We estimated futures prices to calculate future revenue, as reported on the ICE Brent for oil and NGLs and NYMEX Henry Hub for natural gas as of October 31, 2020, adjusted for pricing differentials and without giving effect to derivative transactions. Operating costs and realized prices for periods after the forward price curve becomes illiquid were adjusted for inflation. No value was ascribed to unproved locations.

The fair value of our Elk Hills power plant, cryogenic gas processing facility (CGP-1) and commercial building in Bakersfield were estimated using a cost approach. The cost approach estimates fair value by considering the amount required to construct or purchase a new asset of equal utility at current prices, with adjustments for asset function, age, physical deterioration and obsolescence. We also considered the history of major capital expenditures.

We internally valued our surface acreage based on recent market data.

Right of Use Assets and Lease Liabilities

The fair value of ROU assets and associated lease liabilities were measured at the present value of the remaining fixed minimum lease payments as if the leases were new leases at emergence. We used our incremental borrowing rate as the discount rate in determining the present value of the remaining lease payments. Based upon the corresponding lease term, our incremental borrowing rates ranged from 4% to 5%.

Pension and Postretirement Benefit Plans

The valuations of our pension liabilities and postretirement benefit obligations were performed by a third-party actuary. Valuation assumptions, including discount rates, expected future returns on plan assets, rates of future salary increases, rates of future increases in medical costs, turnover and mortality rates were developed in consultation with the third-party actuary based on current market conditions, current mortality rates and our expectation for future salary increases.

Long-term Debt Obligations

The fair value of our post-emergence long-term debt approximated carrying value based on the terms of the debt instruments and stated interest rates.

Asset Retirement Obligations

The fair value of our asset retirement obligations was estimated using a discounted cash flow approach for existing idle and currently producing wells and facilities. We estimated an average plugging and abandonment cost by field based on historical averages. We also factored in our testing plans related to idle well management and estimated failure rates to determine the timing of the cash flows. We utilized a credit adjusted risk free rate as our discount rate which was based on our credit rating and expected cost of borrowing at our emergence date. Our asset retirement obligations were reduced to our working interest share and factored in cost recovery related to our PSCs.

Warrants

The fair value of the warrants was estimated using a Black-Scholes model, a commonly used option pricing model. The Black-Scholes was used to estimate the fair value of our warrants with a stock price equal to book equity value per share, strike price, time to expiration, risk-free rate, equity volatility, which was based on a peer group of energy companies and dividend yield, which we estimated to be zero.

Reorganization Value

The following table summarizes our enterprise value upon emergence (in millions):


Fair value of total equity upon emergence	$	1,345
Fair value of long-term debt	725
Fair value of asset retirement obligations	593
Less: Unrestricted cash(a)	(163)
Total Enterprise Value	$	2,500

(a)Includes $118 million of cash used to temporarily collateralize letters of credit at our emergence date.

The following table reconciles our enterprise value to our reorganization value, or total asset value, upon emergence (in millions):


Enterprise value	$	2,500
Add: Unrestricted cash(a)	163
Add: Current liabilities(b)	396
Add: Other long-term liabilities(b)	231
Less: Other	(2)
Reorganization value	$	3,288

(a)Includes $118 million of cash used to temporarily collateralize letters of credit.

(b)Excludes asset retirement obligations of $50 million in current liabilities and $543 million in other long-term liabilities.

Consolidated Balance Sheet

The following consolidated balance sheet, with accompanying explanatory notes, illustrates the effects of the transactions contemplated by the Plan (Reorganization Adjustments) and fair value adjustments resulting from the adoption of fresh start accounting (Fresh Start Adjustments) as of October 31, 2020 (in millions):



	Predecessor		Reorganization Adjustments			Fresh Start Adjustments			Successor
CURRENT ASSETS
Cash	$	106	$	97	(1)	$	—		$	203
Trade receivables	149		—			—			149
Inventories	61		—			—			61
Other current assets, net	104		(2)		(2)	—			102
Total current assets	420		95			—			515
PROPERTY, PLANT AND EQUIPMENT	22,918		—			(20,236)		(12)	2,682
Accumulated depreciation, depletion and amortization	(18,588)		—			18,588		(12)	—
Total property, plant and equipment, net	4,330		—			(1,648)			2,682
OTHER ASSETS	77		18		(3)	(4)		(13)	91
TOTAL ASSETS	$	4,827	$	113		$	(1,652)		$	3,288


	Predecessor		Reorganization Adjustments			Fresh Start Adjustments			Successor
CURRENT LIABILITIES


Debtor-in-possession financing	733		(733)		(4)	—			—
Accounts payable	215		—			—			215
Accrued liabilities	233		(16)		(5)	14		(14)	231
Total current liabilities	1,181		(749)			14			446
LONG-TERM DEBT, NET	—		723		(6)	—			723
OTHER LONG-TERM LIABILITIES	725		—			49		(15)	774
LIABILITIES SUBJECT TO COMPROMISE	4,516		(4,516)		(7)	—			—
MEZZANINE EQUITY
Redeemable noncontrolling interests	691		(691)		(8)	—			—
EQUITY
Predecessor preferred stock	—		—			—			—
Predecessor common stock	—		—			—			—
Predecessor additional paid-in capital	5,149		(5,149)		(9)	—			—
Successor preferred stock	—					—			—
Successor common stock	—		1		(10)	—			1
Successor additional paid-in capital	—		1,253		(10)	—			1,253
Successor warrants	—		15		(10)	—			15
Accumulated deficit	(7,481)		9,226		(11)	(1,745)		(16)	—
Accumulated other comprehensive loss	(23)		—			23		(17)	—
Total equity attributable to common stock	(2,355)		5,346			(1,722)			1,269
Equity attributable to noncontrolling interests	69		—			7		(18)	76
Total equity	(2,286)		5,346			(1,715)			1,345
TOTAL LIABILITIES AND EQUITY	$	4,827	$	113		$	(1,652)		$	3,288

Reorganization Adjustments

(1)Net change in cash upon our emergence included the following transactions (in millions):


Proceeds from Revolving Credit Facility	$	225
Proceeds from Subscription Rights and Backstop Commitment, net	446
Proceeds from Second Lien Term Loan	200
Repayment of debtor-in-possession facilities	(733)
Payment of legal, professional and other fees	(15)
Debt issuance costs for the Revolving Credit Facility	(18)
Debt issuance costs for the Second Lien Term Loan	(2)
Acquisition of noncontrolling interest as part of the Settlement Agreement	(2)
Distribution to noncontrolling interest holder	(3)
Payment of accrued interest and bank fees	(1)
Net change	$	97

Our cash balance of $203 million at October 31, 2020 included $158 million of restricted cash, of which $118 million was used to temporarily collateralize letters of credit, $22 million was held for distributions to a JV partner and $18 million was reserved for legal and professional fees related to our Chapter 11 Cases.

(2)Represents the write-off of unamortized insurance premiums for our directors and officers policy, which was cancelled as a result of changing the composition of our Board of Directors.

(3)Represents the capitalization of debt issuance costs for our Revolving Credit Facility.

(4)Represents the payoff of $733 million of debtor-in-possession financing including $83 million of borrowings that were outstanding under our Senior DIP Facility and $650 million of borrowings that were outstanding under our Junior DIP Facility. Refer to Note 14 Chapter 11 Proceedings for more information on our debtor-in-possession credit agreements.

(5)Reflects the payment of $15 million for legal, professional and other fees related to our bankruptcy proceedings upon emergence and $1 million for accrued interest and bank fees.

(6)Our exit financing at emergence included the following:


	October 31, 2020
	($ in millions)
Revolving Credit Facility	$	225
Second Lien Term Loan	200
EHP Notes	300
Long-term debt (principal amount)	$	725
Debt issuance costs	(2)
Total long-term debt, net	$	723

For additional information on our Successor debt, refer to Note 4 Debt.

(7)Our liabilities subject to compromise at emergence included the following (in millions):


Long-term debt (principal amount):
2017 Credit Agreement	$	1,300
2016 Credit Agreement	1,000
Second Lien Notes	1,808
2021 Notes	100
2024 Notes	144
Accrued interest	164
Total liabilities subject to compromise	$	4,516

(8)Represents the acquisition of the noncontrolling interest in our Ares JV. In accordance with the Settlement Agreement, we exercised a conversion right upon our emergence from bankruptcy, allowing us to acquire all (but not less than all) of the equity interests in the Ares JV held by ECR in exchange for the EHP Notes, 17.3 million shares of common stock and approximately $2 million in cash.

(9)Represents the elimination of Predecessor additional paid-in capital.

(10) Represents the fair value of 83.3 million shares of Successor common stock and Warrants issued in accordance with the Plan as follows (in millions):


Par value	$	1
Additional paid-in capital	1,253
Warrants	15
Total	$	1,269

(11) Represents the decrease in accumulated deficit resulting from reorganization adjustments and the reclassification from Predecessor additional paid-in capital.

Fresh Start Adjustments

(12) Represents fair value adjustments to property, plant and equipment (PP&E), including the elimination of Predecessor accumulated depreciation, depletion and amortization.

The fair value of our PP&E at emergence consisted of the following:


Proved oil and natural gas properties	$	2,409
Facilities and other	273
Total PP&E	$	2,682

(13) Represents an adjustment to our right of use assets as if our lease agreements were new leases on our emergence date. See Note 5 Leases for more information on our leases.

(14) Represents a $20 million fair value adjustment to the current portion of asset retirement obligations partially offset by a $5 million decrease in our liability for self-insured medical. Also included are fair value adjustments for our postretirement benefits and a remeasurement of the current portion of our lease liability.

(15) Represents a $36 million fair value adjustment related to the long-term portion of asset retirement obligations and $8 million related to environmental and other abandonment obligations. The adjustment also includes $5 million related to remeasuring our long-term lease liability as if our contracts were new leases.

(16) Represents the elimination of Predecessor accumulated deficit.

(17) Represents the elimination of Predecessor accumulated other comprehensive loss.

(18) Represents a fair value adjustment of the noncontrolling interest in the BSP JV based on discounted expected future cash flows.

FRESH START ACCOUNTING

12 Months Ended

Dec. 31, 2021

Reorganizations [Abstract]

FRESH START ACCOUNTING

CHAPTER 11 PROCEEDINGS

Debtor-in-Possession Credit Agreements

Ares JV Settlement Agreement and Noncontrolling Interest


	Equity Attributable to Noncontrolling Interests						Mezzanine Equity - Redeemable Noncontrolling Interest
	Ares JV		BSP JV		Total		Ares JV		Total
	(in millions)
Balance, December 31, 2018	$	15	$	99	$	114	$	756	$	756
Net (loss) income attributable to noncontrolling interests	(7)		17		10		117		117
Contributions from noncontrolling interest holders, net	—		49		49		—		—
Distributions to noncontrolling interest holders	(8)		(72)		(80)		(71)		(71)
Balance, December 31, 2019	$	—	$	93	$	93	$	802	$	802
Net income (loss) attributable to noncontrolling interests	3		10		13		94		94

Distributions to noncontrolling interest holders	(3)		(34)		(37)		(67)		(67)
Modification of noncontrolling interest	—		—		—		(138)		(138)
Acquisition of noncontrolling interest	—		—		—		(691)		(691)
Fair value adjustment of noncontrolling interest in fresh start accounting	—		7		7		—		—
Balance, October 31, 2020	$	—	$	76	$	76	$	—	$	—

Rights Offering and Backstop

Emergence

•We acquired all of the member interests in the Ares JV held by ECR in exchange for the EHP Notes, 17.3 million shares of new common stock and approximately $2 million in cash;

•We issued 3.5 million shares as consideration for the backstop commitment premium; and

•We issued an aggregate of 821,000 shares to the lenders under our Junior DIP Facility as an exit fee.

All existing equity interests of the Predecessor, including contracts on equity, were cancelled and their holders received no recovery.

FRESH START ACCOUNTING

Fresh Start Accounting

Property, Plant and Equipment

We internally valued our surface acreage based on recent market data.

Right of Use Assets and Lease Liabilities

Pension and Postretirement Benefit Plans

Long-term Debt Obligations

The fair value of our post-emergence long-term debt approximated carrying value based on the terms of the debt instruments and stated interest rates.

Asset Retirement Obligations

Warrants

Reorganization Value

The following table summarizes our enterprise value upon emergence (in millions):


Fair value of total equity upon emergence	$	1,345
Fair value of long-term debt	725
Fair value of asset retirement obligations	593
Less: Unrestricted cash(a)	(163)
Total Enterprise Value	$	2,500

(a)Includes $118 million of cash used to temporarily collateralize letters of credit at our emergence date.

The following table reconciles our enterprise value to our reorganization value, or total asset value, upon emergence (in millions):


Enterprise value	$	2,500
Add: Unrestricted cash(a)	163
Add: Current liabilities(b)	396
Add: Other long-term liabilities(b)	231
Less: Other	(2)
Reorganization value	$	3,288

(a)Includes $118 million of cash used to temporarily collateralize letters of credit.

(b)Excludes asset retirement obligations of $50 million in current liabilities and $543 million in other long-term liabilities.

Consolidated Balance Sheet



	Predecessor		Reorganization Adjustments			Fresh Start Adjustments			Successor
CURRENT ASSETS
Cash	$	106	$	97	(1)	$	—		$	203
Trade receivables	149		—			—			149
Inventories	61		—			—			61
Other current assets, net	104		(2)		(2)	—			102
Total current assets	420		95			—			515
PROPERTY, PLANT AND EQUIPMENT	22,918		—			(20,236)		(12)	2,682
Accumulated depreciation, depletion and amortization	(18,588)		—			18,588		(12)	—
Total property, plant and equipment, net	4,330		—			(1,648)			2,682
OTHER ASSETS	77		18		(3)	(4)		(13)	91
TOTAL ASSETS	$	4,827	$	113		$	(1,652)		$	3,288


	Predecessor		Reorganization Adjustments			Fresh Start Adjustments			Successor
CURRENT LIABILITIES


Debtor-in-possession financing	733		(733)		(4)	—			—
Accounts payable	215		—			—			215
Accrued liabilities	233		(16)		(5)	14		(14)	231
Total current liabilities	1,181		(749)			14			446
LONG-TERM DEBT, NET	—		723		(6)	—			723
OTHER LONG-TERM LIABILITIES	725		—			49		(15)	774
LIABILITIES SUBJECT TO COMPROMISE	4,516		(4,516)		(7)	—			—
MEZZANINE EQUITY
Redeemable noncontrolling interests	691		(691)		(8)	—			—
EQUITY
Predecessor preferred stock	—		—			—			—
Predecessor common stock	—		—			—			—
Predecessor additional paid-in capital	5,149		(5,149)		(9)	—			—
Successor preferred stock	—					—			—
Successor common stock	—		1		(10)	—			1
Successor additional paid-in capital	—		1,253		(10)	—			1,253
Successor warrants	—		15		(10)	—			15
Accumulated deficit	(7,481)		9,226		(11)	(1,745)		(16)	—
Accumulated other comprehensive loss	(23)		—			23		(17)	—
Total equity attributable to common stock	(2,355)		5,346			(1,722)			1,269
Equity attributable to noncontrolling interests	69		—			7		(18)	76
Total equity	(2,286)		5,346			(1,715)			1,345
TOTAL LIABILITIES AND EQUITY	$	4,827	$	113		$	(1,652)		$	3,288

Reorganization Adjustments

(1)Net change in cash upon our emergence included the following transactions (in millions):


Proceeds from Revolving Credit Facility	$	225
Proceeds from Subscription Rights and Backstop Commitment, net	446
Proceeds from Second Lien Term Loan	200
Repayment of debtor-in-possession facilities	(733)
Payment of legal, professional and other fees	(15)
Debt issuance costs for the Revolving Credit Facility	(18)
Debt issuance costs for the Second Lien Term Loan	(2)
Acquisition of noncontrolling interest as part of the Settlement Agreement	(2)
Distribution to noncontrolling interest holder	(3)
Payment of accrued interest and bank fees	(1)
Net change	$	97

(2)Represents the write-off of unamortized insurance premiums for our directors and officers policy, which was cancelled as a result of changing the composition of our Board of Directors.

(3)Represents the capitalization of debt issuance costs for our Revolving Credit Facility.

(5)Reflects the payment of $15 million for legal, professional and other fees related to our bankruptcy proceedings upon emergence and $1 million for accrued interest and bank fees.

(6)Our exit financing at emergence included the following:


	October 31, 2020
	($ in millions)
Revolving Credit Facility	$	225
Second Lien Term Loan	200
EHP Notes	300
Long-term debt (principal amount)	$	725
Debt issuance costs	(2)
Total long-term debt, net	$	723

For additional information on our Successor debt, refer to Note 4 Debt.

(7)Our liabilities subject to compromise at emergence included the following (in millions):


Long-term debt (principal amount):
2017 Credit Agreement	$	1,300
2016 Credit Agreement	1,000
Second Lien Notes	1,808
2021 Notes	100
2024 Notes	144
Accrued interest	164
Total liabilities subject to compromise	$	4,516

(9)Represents the elimination of Predecessor additional paid-in capital.

(10) Represents the fair value of 83.3 million shares of Successor common stock and Warrants issued in accordance with the Plan as follows (in millions):


Par value	$	1
Additional paid-in capital	1,253
Warrants	15
Total	$	1,269

(11) Represents the decrease in accumulated deficit resulting from reorganization adjustments and the reclassification from Predecessor additional paid-in capital.

Fresh Start Adjustments

(12) Represents fair value adjustments to property, plant and equipment (PP&E), including the elimination of Predecessor accumulated depreciation, depletion and amortization.

The fair value of our PP&E at emergence consisted of the following:


Proved oil and natural gas properties	$	2,409
Facilities and other	273
Total PP&E	$	2,682

(13) Represents an adjustment to our right of use assets as if our lease agreements were new leases on our emergence date. See Note 5 Leases for more information on our leases.

(16) Represents the elimination of Predecessor accumulated deficit.

(17) Represents the elimination of Predecessor accumulated other comprehensive loss.

(18) Represents a fair value adjustment of the noncontrolling interest in the BSP JV based on discounted expected future cash flows.

SUBSEQUENT EVENTS	12 Months Ended
SUBSEQUENT EVENTS	Dec. 31, 2021
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS Divestitures On February 1, 2022, we sold our 50% non-operated working interest in certain horizons within our Lost Hills field, located in the San Joaquin basin, for proceeds of $55 million (before transaction costs and purchase price adjustments). We retained an option to capture, transport and store 100% of the CO2 from steam generators across the Lost Hills field for future carbon management projects. We also retained 100% of the deep rights and related seismic data. In January 2022, we entered into an agreement to sell our commercial office building located in Bakersfield, California for $15 million, subject to customary adjustments to be calculated at closing. The sale is expected to close in the second quarter of 2022, contingent upon due diligence and a fit for purpose analysis to be performed by buyer. We expect to lease back a portion of the building on a short-term basis during a transition period. See Note 2 Property, Plant and Equipment for details of a $25 million impairment charge we recognized in the third quarter of 2021 on this property. Dividends On February 23, 2022, our Board of Directors declared a cash dividend of $0.17 per share of common stock. The dividend is payable to shareholders of record at the close of business on March 7, 2022 and is expected to be paid on March 16, 2022. This quarterly dividend is made pursuant to a cash dividend policy approved by the Board of Directors in November 2021. Share Repurchase Program On February 22, 2022, our Board of Directors authorized an increase to our Share Repurchase Program by $100 million to $350 million in aggregate and we extended the term of the program until December 31, 2022. Debt In February 2022, we amended our Revolving Credit Facility to change the benchmark rate from LIBOR to SOFR. As a result of this amendment, we can elect to borrow at either an adjusted SOFR rate or an ABR rate, subject to a 1% floor and 2% floor, respectively, plus an applicable margin. The ABR is equal to the highest of (i) the federal funds effective rate plus 0.50%, (ii) the administrative agent prime rate and (iii) the one-month SOFR rate plus 1%. The applicable margin is adjusted based on the borrowing base utilization percentage and will vary from (i) in the case of SOFR loans, 3% to 4% and (ii) in the case of ABR loans, 2% to 3%. The unused portion of the facility is subject to a commitment fee of 0.50% per annum. We also pay customary fees and expenses. Interest on ABR loans is payable quarterly in arrears. Interest on SOFR loans is payable at the end of each SOFR period, but not less than quarterly. In February 2022, we obtained additional commitments under our Revolving Credit Facility from new lenders increasing our aggregate commitment to $552 million from $492 million. After taking into account these additional commitments, our available borrowing capacity under our Revolving Credit Facility was increased by $60 million to $427 million from $367 million, after $125 million of outstanding letters of credit.

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

12 Months Ended

Dec. 31, 2021

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS


	Balance at Beginning of Period		Charged (Credited) to Costs and Expenses		Charged (Credited) to Other Accounts		Deductions		Balance at End of Period
(in millions)
2021 (Successor)
Deferred tax valuation allowance	$	549	$	(526)	$	(23)	$	—	$	—
Other asset valuation allowance	$	—	$	—	$	—	$	—	$	—
November 1, 2020 - December 31, 2020 (Successor)
Deferred tax valuation allowance	$	511	$	35	$	3	$	—	$	549
Other asset valuation allowance	$	—	$	—	$	—	$	—	$	—
January 1, 2020 - October 31, 2020 (Predecessor)
Deferred tax valuation allowance	$	646	$	(571)	$	436	$	—	$	511
Other asset valuation allowance	$	22	$	(22)	$	—	$	—	$	—
2019 (Predecessor)
Deferred tax valuation allowance	$	625	$	16	$	5	$	—	$	646
Other asset valuation allowance	$	31	$	(9)	$	—	$	—	$	22

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER (Policies)

12 Months Ended

Dec. 31, 2021

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER

Basis of Presentation

Use of Estimates

Risks And Uncertainties

Risks and UncertaintiesOur revenue, profitability and future growth are substantially dependent upon prevailing and future prices for oil and natural gas, which can be volatile and dependent on factors beyond our control including: global production inventories, available storage and transportation capacities, government regulation and economic conditions. Additionally, the Coronavirus Disease 2019 (COVID-19) pandemic continues to create price volatility for the oil and gas industry. The ongoing impacts from COVID-19 on our financial position, results of operations and cash flows will depend on uncertain factors, including future developments that are beyond our control, vaccine availability and acceptance by individuals, resurgence of the pandemic or further mutations of the virus and pandemic restrictions being reinstated, among other things.

Concentration of Customers

Recently Adopted Accounting and Disclosure Changes

Recently Adopted Accounting and Disclosure ChangesWe adopted new accounting guidance on current expected credit losses on January 1, 2020, using a modified retrospective approach to the first period in which the guidance was effective. The new rules changed the measurement of credit losses for financial assets and certain other instruments, including trade and other receivables with a right to receive cash, and require the use of a new forward-looking expected loss model that results in the earlier recognition of an allowance for losses. The adoption of these new rules did not have a significant impact on our consolidated financial statements.

Restructuring

Restructuring under Chapter 11 of the Bankruptcy Code and Workforce Reductions

Property, Plant and Equipment (PP&E)

Fair Value Measurements

Our assets and liabilities measured at fair value are categorized in a three-level fair-value hierarchy, based on the inputs to the valuation techniques:

Level 1—using quoted prices in active markets for the assets or liabilities;

Level 2—using observable inputs other than quoted prices for the assets or liabilities; and

Level 3—using unobservable inputs.

The carrying amounts of cash and other on-balance sheet financial instruments, other than fixed-rate debt, approximate fair value.

Revenue Recognition

Commodity sales contracts — Disaggregated revenue for sales of oil, natural gas and natural gas liquids (NGLs) to customers includes the following:


	Successor				Predecessor
	Year ended December 31,		November 1, 2020 - December 31, 2020		January 1, 2020 - October 31, 2020		Year ended December 31,
(in millions)	2021						2019

Oil	$	1,555	$	176	$	874	$	1,884
NGLs	250		29		106		179
Natural gas	243		32		112		207
Oil, natural gas and NGL sales	$	2,048	$	237	$	1,092	$	2,270

See Note 13 Revenue Recognition for more information on our revenue from contracts with customers.

Allowance for Credit Losses

Inventories

InventoriesMaterials and supplies, which primarily consist of well equipment and tubular goods used in our oil and natural gas operations, are valued at weighted-average cost and are reviewed periodically for obsolescence. Finished goods predominantly comprise oil and natural gas liquids (NGLs), which are valued at the lower of cost or net realizable value.

Derivative Instruments

Derivative InstrumentsThe fair value of our derivative contracts are netted when a legal right of offset exists with the same counterparty with an intent to offset. Since we did not apply hedge accounting to our commodity derivatives for any of the periods presented, we recognized fair value adjustments, on a net basis, in our consolidated statements of operations. Unless otherwise indicated, we use the term "hedge" to describe derivative instruments that are designed to achieve our hedging program goals, even though they are not accounted for as cash-flow or fair-value hedges.

Stock-Based Incentive Plans

Earnings Per Share

Asset Retirement Obligations

Loss Contingencies

Income Taxes

Production-Sharing Type Contracts

Pension and Postretirement Benefit Plans

Leases

Share Repurchase Program

Share Repurchase ProgramWe repurchase shares of our common stock from time to time under a program authorized by our Board of Directors, including pursuant to a contract, instruction or written plan meeting requirements of Rule 10b5-1(c)(1) of the Exchange Act. Share repurchases have not been retired and are displayed separately as treasury stock on our consolidated balance sheet.

Assets Held for Sale

The assets classified as held for sale at December 31, 2021 include the remaining assets and the associated asset retirement obligations in the Ventura basin.

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER (Tables)

12 Months Ended

Dec. 31, 2021

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER

Schedule of disaggregated revenue

Disaggregated revenue for sales of oil, natural gas and natural gas liquids (NGLs) to customers includes the following:


	Successor				Predecessor
	Year ended December 31,		November 1, 2020 - December 31, 2020		January 1, 2020 - October 31, 2020		Year ended December 31,
(in millions)	2021						2019

Oil	$	1,555	$	176	$	874	$	1,884
NGLs	250		29		106		179
Natural gas	243		32		112		207
Oil, natural gas and NGL sales	$	2,048	$	237	$	1,092	$	2,270

Schedule of inventories

Inventories, by category, are as follows:


	Successor		Predecessor
(in millions)	2021		2020
Materials and supplies	$	54	$	58
Finished goods	6		3
Total	$	60	$	61

Summary of the activity of the asset retirement obligation

The following table presents a rollforward of our ARO.


	Successor				Predecessor
	Year ended December 31,		November 1, 2020 - December 31, 2020		January 1, 2020 - October 31, 2020
(in millions)	2021
Beginning balance	$	597	$	593	$	517

Liabilities settled and divested	(157)		(5)		(16)
Accretion expense on discounted obligation	50		8		33


Revisions of estimated obligation	19		—		—
Impact of fresh start accounting	—		—		57
Other	1		1		2
Liabilities reclassified as held for sale	(21)		—		—
Ending balance	$	489	$	597	$	593

Current portion	$	51	$	50	$	50
Non-current portion	$	438	$	547	$	543

Schedule of other current assets, net

Other current assets consisted of the following:


	Successor
(in millions)	December 31, 2021		December 31, 2020
Amounts due from joint interest partners	$	47	$	42

Fair value of derivative contracts	6		—

Prepaid expenses	16		20
Prepaid greenhouse gas allowances	31		—
Collateral on natural gas purchases	12		—
Other	9		1
Other current assets	$	121	$	63

Schedule of other noncurrent assets

Other noncurrent assets consisted of the following:


	Successor
(in millions)	December 31, 2021		December 31, 2020
Operating lease right-of-use assets	$	43	$	38
Deferred financing costs - Revolving Credit Facility	11		17
Emission reduction credits	11		11
Prepaid power plant maintenance	21		14
Fair value of derivative contracts	1		—
Deposits and other	11		10
Other noncurrent assets	$	98	$	90

Schedule of accrued liabilities

Accrued liabilities consisted of the following:


	Successor
(in millions)	December 31, 2021		December 31, 2020
Accrued employee-related costs	$	61	$	72
Accrued taxes other than on income	30		36
Asset retirement obligations	51		50
Accrued interest	19		1
Lease liability	11		7
Deferred premiums on derivative contracts	57		18
Net settlement payments due on derivative contracts	25		3
Other	43		24
Accrued liabilities	$	297	$	211

Schedule of other long-term liabilities

Other long-term liabilities consisted of the following:


	Successor
(in millions)	December 31, 2021		December 31, 2020
Compensation-related liabilities	38		44
Postretirement and pension benefit plans	59		140
Lease liability	37		35
Deferred premiums on derivative contracts	5		31
Other	6		19
Other long-term liabilities	$	145	$	269

Schedule of other expenses, net

Other operating expenses, net consisted of the following:


	Successor				Predecessor
	Year ended December 31,		November 1, 2020 - December 31, 2020		January 1, 2020 - October 31, 2020		Year ended December 31,
(in millions)	2021						2019
Severance and termination costs	$	15	$	5	$	10	$	—
Deficiency payment on a pipeline delivery contract	—		—		20		—
Idle well fees	6		—		4		3
Power plant interruption	—		—		7		1
Ad valorem fees	—		—		4		—
Other, net	8		4		11		14
Other operating expenses, net	$	29	$	9	$	56	$	18

Schedule of reorganization items in consolidated statement of operations

Reorganization items, net consisted of the following (in millions):


	Successor				Predecessor
	Year ended December 31,		November 1, 2020 - December 31, 2020		January 1, 2020 - October 31, 2020
	2021
(in millions)
Gain on settlement of liabilities subject to compromise	$	—	$	—	$	4,022
Unamortized deferred gain and issuance costs, net	—		—		125
Junior debtor-in-possession exit fee	—		—		(12)
Acceleration of unrecognized compensation expense on cancelled stock-based compensation awards	—		—		(5)
Write-off of prepaid directors and officers' insurance premiums	—		—		(2)
Total non-cash reorganization items	$	—	$	—	$	4,128
Legal, professional and other, net	(6)		(3)		(43)
Debtor-in-possession financing costs	—		—		(25)
Total reorganization items, net	$	(6)	$	(3)	$	4,060

Schedule of supplemental disclosures to our consolidated statements of cash flows, excluding leases,

Supplemental disclosures to our consolidated statements of cash flows, excluding leases, are presented below (in millions):


	Successor				Predecessor
	Year ended December 31,		November 1, 2020 - December 31, 2020		January 1, 2020 - October 31, 2020		Year ended December 31,
	2021						2019
Supplemental Cash Flow Information
Cash paid for interest, net of amounts capitalized	$	(28)	$	(8)	$	(79)	$	(425)

Supplemental Disclosure of Noncash Investing and Financing Activities
Successor common stock, Subscription Rights and Warrants issued pursuant to the Plan	$	—	$	—	$	(494)	$	—
Successor common stock issued for the junior debtor-in-possession exit fee pursuant to the Plan	$	—	$	—	$	(12)	$	—
Successor common stock and EHP Notes issued for acquisition of noncontrolling interest pursuant to the Plan	$	—	$	—	$	(561)	$	—
Successor common stock issued for a backstop commitment premium pursuant to the Plan	$	—	$	—	$	(52)	$	—
Warrant issued to a joint venture partner	$	—	$	—	$	—	$	(3)
Derivative related to additional earn-out consideration for the Ventura divestiture	$	3	$	—	$	—	$	—

PROPERTY, PLANT AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Schedule of property, plant and equipment, net

Property, plant and equipment, net consisted of the following:


	Successor
(in millions)	December 31, 2021		December 31, 2020
Proved oil and natural gas properties	$	2,604	$	2,416
Unproved oil and natural gas properties	1		1
Facilities and other	240		272
Total property, plant and equipment	2,845		2,689
Accumulated depreciation, depletion and amortization	(246)		(34)
Total property, plant and equipment, net(a)	$	2,599	$	2,655

Summary of the activity of capitalized exploratory well costs

The following table summarizes the activity of capitalized exploratory well costs:


	Successor				Predecessor
	Year ended December 31,		November 1, 2020 - December 31, 2020		January 1, 2020 - October 31, 2020		Year ended December 31,
(in millions)	2021						2019
Beginning balance	$	3	$	3	$	7	$	5
Additions to capitalized exploratory well costs	—		—		—		12
Reclassification to property, plant and equipment	—		—		—		(3)
Charged to expense	(2)		—		(2)		(7)
Impact of fresh start accounting	—		—		(2)		—

Ending balance	$	1	$	3	$	3	$	7

Schedule of asset impairments

The following table presents a summary of our asset impairments during the Predecessor period of 2020 (in millions):


	Predecessor
	January 1, 2020 - October 31, 2020

Proved oil and natural gas properties	$	1,487
Unproved properties	228
Other	21
Total	$	1,736

DEBT (Tables)

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Schedule of debt

As of December 31, 2021 and 2020, our long-term debt consisted of the following (in millions):



	Successor				Interest Rate	Maturity
	2021		2020
Revolving Credit Facility(a)	$	—	$	99	LIBOR plus 3%-4% ABR plus 2%-3%	April 29, 2024
Senior Notes	600		—		7.125%	February 1, 2026
Second Lien Term Loan	—		200		LIBOR plus 9%-10.5% ABR plus 8%-9.5%	October 27, 2025
EHP Notes	—		300		6%	October 27, 2027
Principal amount of debt	$	600	$	599
Unamortized debt issuance costs	(11)		(2)
Long-term debt, net	$	589	$	597

(a)In February 2022, we amended our Revolving Credit Facility to replace London Interbank Offered Rates (LIBOR). See Note 16 Subsequent Events, for further information on this amendment.

Schedule of financial performance covenants

Financial Covenants – Our Revolving Credit Facility includes the following financial covenants:

Ratio

Components

Required Levels

Tested

Consolidated Total Net Leverage Ratio

Ratio of consolidated total secured debt to consolidated EBITDAX(a)

Not greater than 3.00 to 1.00

Quarterly

Current Ratio

Ratio of consolidated current assets to consolidated current liabilities(b)

Not less than 1.00 to 1.00

Quarterly

(a)EBITDAX is calculated as defined in the credit agreement.

(b)The available credit under our Revolving Credit Facility is included in consolidated current assets as part of the calculation of the current ratio.

Principal maturities of debt outstanding

Principal maturities of debt outstanding at December 31, 2021 (Successor) are as follows:


	As of December 31, 2021
	(in millions)
2022	$	—
2023	—
2024	—
2025	—
2026	600
Thereafter	—
Total	$	600

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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+ Details

LEASES (Tables)

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Schedule of supplemental balance sheet information related to operating leases

Balance sheet information related to our operating and finance leases as of December 31, 2021 and December 31, 2020 were as follows:


		Successor
	Classification	2021		2020
Assets		(in millions)		(in millions)
Operating	Other noncurrent assets	$	43	$	38
Finance	PP&E	—		1
Total right-of-use assets		$	43	$	39

Liabilities
Current
Operating	Accrued liabilities	$	11	$	6
Finance	Accrued liabilities	—		1
Long-term
Operating	Other long-term liabilities	37		35

Total lease liabilities		$	48	$	42

Schedule of operating lease costs, including amounts capitalized to property, plant and equipment

Our lease costs, including amounts capitalized to PP&E, were as follows:


	Successor				Predecessor
	Year ended December 31,		November 1, 2020 - December 31, 2020		January 1, 2020 - October 31, 2020
	2021
	(in millions)				(in millions)



Operating lease costs	$	14	$	2	$	23
Short-term lease costs(a)	48		7		25
Variable lease costs	4		—		4
Total operating lease costs	66		9		52
Finance lease costs	—		—		1
Sublease income	(2)		—		(1)
Total lease costs	$	64	$	9	$	52

(a)Contracts with terms of less than one month or less are excluded from our disclosure of short-term lease costs.

Schedule of other operating and finance lease information

Other supplemental information related to our operating and finance leases as of December 31, 2021 and December 31, 2020 is provided below:


	Successor				Predecessor
	Year ended December 31,		November 1, 2020 - December 31, 2020		January 1, 2020 - October 31, 2020
	2021
	(in millions)				(in millions)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows	$	8	$	2	$	9
Investing cash flows	$	4	$	—	$	14
Financing cash flows	$	1	$	—	$	1

ROU assets obtained in exchange for new operating lease liabilities	$	17	$	—	$	—

Impairment charges related to ROU assets	$	—	$	—	$	2


	Successor
	2021		2020
Operating Leases
Weighted-average remaining lease term (in years)	8.25		6.81
Weighted-average discount rate	5.4	%	4.5	%

Finance Leases
Weighted-average remaining lease term (in years)	0.33		1.33
Weighted-average discount rate	4.0	%	4.0	%

Schedule of maturities of our operating lease liabilities

Maturities of our operating liabilities at December 31, 2021 are as follows:


	Successor
	Operating
	Leases
	(in millions)
2022	$	12
2023	8
2024	8
2025	6
2026	5
Thereafter	23
Less: Interest	(14)
Present value of lease liabilities	$	48

Schedule of maturities of our financing lease liabilities

Maturities of our operating liabilities at December 31, 2021 are as follows:


	Successor
	Operating
	Leases
	(in millions)
2022	$	12
2023	8
2024	8
2025	6
2026	5
Thereafter	23
Less: Interest	(14)
Present value of lease liabilities	$	48

LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Schedule of purchase obligations on a discounted basis

At December 31, 2021, total purchase obligations on a discounted basis were as follows:


	December 31, 2021
	(in millions)
2022	$	54
2023	32
2024	10
2025	5
2026	5
Thereafter	30
Total	136
Less: Interest	(18)
Present value of purchase obligations	$	118

DERIVATIVES (Tables)

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of oil hedge positions

As part of our hedging program, we held the following Brent-based crude oil contracts as of December 31, 2021:


	Q1 2022		Q2 2022		Q3 2022		Q4 2022		2023
Sold Calls:
Barrels per day	35,347		35,343		34,380		25,167		14,790
Weighted-average price per barrel	$	60.37	$	60.63	$	60.76	$	57.82	$	58.01

Swaps
Barrels per day	12,369		10,669		10,476		17,263		12,937
Weighted-average price per barrel	$	54.38	$	54.12	$	53.97	$	58.79	$	59.08

Net Purchased Puts(a)
Barrels per day	35,347		35,343		34,380		25,167		14,790
Weighted-average price per barrel	$	53.32	$	54.69	$	55.95	$	57.22	$	40.00

Sold Puts
Barrels per day	6,869		—		4,000		1,348		—
Weighted-average price per barrel	$	32.00	$	—	$	32.00	$	32.00	$	—

(a)Purchased puts and sold puts with the same strike price have been presented on a net basis.

Noncash derivative gains and losses, along with settlement payments, are reported in net (loss) gain from commodity derivatives on our consolidated statements of operations as shown in the table below:


	Successor				Predecessor
	Year ended December 31,		November 1, 2020 - December 31, 2020		January 1, 2020 - October 31, 2020		Year ended December 31,
	2021						2019
(in millions)
Non-cash commodity derivative loss, excluding noncontrolling interest	$	(357)	$	(138)	$	(19)	$	(166)
Non-cash commodity derivative (loss) gain, attributable to noncontrolling interest	—		(2)		2		(4)
Total non-cash changes	(357)		(140)		(17)		(170)
Net (payments) proceeds on commodity derivatives	(319)		(1)		108		111

Net (loss) gain from commodity derivatives	$	(676)	$	(141)	$	91	$	(59)

Schedule of fair values (at gross and net) of outstanding derivatives

The following tables present the fair values (at gross and net) of our outstanding derivatives:


December 31, 2021 (Successor)
Classification	Gross Amounts at Fair Value		Netting		Net Fair Value
Assets:	(in millions)
Other current assets	$	33	$	(27)	$	6
Other noncurrent assets	12		(11)		1

Liabilities:
Current - Fair value of derivative contracts	(297)		27		(270)
Noncurrent - Fair value of derivative contracts	(143)		11		(132)
	$	(395)	$	—	$	(395)



December 31, 2020 (Successor)
Classification	Gross Amounts at Fair Value		Netting		Net Fair Value
Assets:	(in millions)
Other current assets	$	21	$	(21)	$	—
Other noncurrent assets	63		(63)		—

Liabilities:
Current - Fair value of derivative contracts	(71)		21		(50)
Noncurrent - Fair value of derivative contracts	(69)		63		(6)
	$	(56)	$	—	$	(56)

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

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+ Details

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of differences between the U.S. federal income tax rate and the company's effective tax rate

Total income tax (benefit) provision differs from the amounts computed by applying the U.S. federal income tax rate to pre-tax income (loss) as follows:


	Successor				Predecessor
	Year ended December 31,		November 1, 2020 - December 31, 2020		January 1, 2020 - October 31, 2020		Year ended December 31,
	2021						2019
U.S. federal statutory tax rate	21	%	21	%	21	%	21	%
State income taxes, net	(81)		—		—		1
Exclusion of income attributable to noncontrolling interests	(1)		—		(1)		(27)
Debt restructuring	—		—		—		—
Changes in tax attributes	(8)		—		—		(7)
Executive compensation	2		—		—		2
Change in the U.S. federal valuation allowance	(106)		(20)		(21)		10
Other	—		(1)		1		1
Effective tax rate	(173)	%	—	%	—	%	1	%

Tax effects of temporary differences resulting in deferred income taxes

The tax effects of temporary differences resulting in deferred income tax assets and liabilities at December 31, 2021 and 2020 were as follows:


	Successor
	2021				2020
(in millions)	Deferred Tax Assets		Deferred Tax Liabilities		Deferred Tax Assets		Deferred Tax Liabilities

Property, plant and equipment	$	122	$	(151)	$	209	$	(113)
Postretirement and pension benefit plans	18		—		43		—

Asset retirement obligations	152		—		178		—
Net operating loss and tax credit carryforwards	88		—		12		—
Business interest expense carryforward	177		—		180		—

Federal benefit of state income taxes	—		(49)		—		—
Other	59		(20)		60		(20)
Subtotal	616		(220)		682		(133)
Valuation allowance	—		—		(549)		—
Total deferred taxes	$	616	$	(220)	$	133	$	(133)

Reconciliation of unrecognized tax benefits

The following is a reconciliation of unrecognized tax benefits in our Predecessor periods:


	Predecessor
	January 1, 2020 - October 31, 2020			Year ended December 31,
(in millions)			2019
Unrecognized tax benefits – beginning balance	$	101		$	25
Gross (decreases) increases – tax positions in prior year	(101)			44

Gross increases – tax positions in current year	—			32


Unrecognized tax benefits – ending balance	$	—		$	101

STOCK-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Schedule of share based compensation expense

Stock-based compensation expense is recorded on our consolidated statements of operations based on job function of the employees receiving the grants as shown in the table below.


	Successor				Predecessor
	Year ended December 31,		November 1, 2020 - December 31, 2020		January 1, 2020 - October 31, 2020		Year ended December 31,
	2021						2019
(in millions)
General and administrative expenses	$	17	$	—	$	2	$	25
Operating costs	2		—		1		7
Total stock-based compensation expense	$	19	$	—	$	3	$	32

Summary of changes in cash and stock-settled Restricted Stock Units (RSUs)

The following table sets forth RSU activity for the year ended December 31, 2021:



	Number of Units	Weighted-Average Grant-Date Fair Value
	(in thousands)
Unvested at December 31, 2020 (Successor)	—	$	—
Granted	1,216	$	25.23
Vested	(18)	$	24.50
Cancelled or Forfeited	(68)	$	24.50
Unvested at December 31, 2021 (Successor)	1,130	$	25.28

Summary of changes in cash and stock-settled Performance Stock Units (PSUs)

The following table sets forth PSU activity for the year ended December 31, 2021:



	Number of Units	Weighted-Average Grant-Date Fair Value
	(in thousands)
Unvested at December 31, 2020 (Successor)	—	$	—
Granted	997	$	20.09
Cancelled or Forfeited	(53)	$	19.31
Unvested at December 31, 2021 (Successor)	944	$	20.14

Schedule of grant date assumptions used in the Black-Scholes valuation for stock options

The range of assumptions used in the Monte Carlo simulation model for the PSUs granted during 2021 were as follows:


	Successor
	2021



Expected volatility(a)	60.00% - 65.00%
Risk-free interest rate(b)	0.16% - 0.60%
Dividend yield(c)	—	%
Forecast period (in years)	2 - 3

(b)Based on the U.S. Treasury yield for a two- or three-year term at the grant date.

(c)The Monte Carlo model used for valuation included a dividend adjusted stock price and assumed reinvestment of dividends during the performance period.

The assumptions used in the Monte Carlo simulation model for the performance cash awards as of December 31, 2021 were as follows:


	Successor
	2021



Expected volatility(a)	60	%
Risk-free interest rate(b)	0.85	%
Dividend yield(c)	—	%
Forecast period (in years)	2.5

(a)Expected volatility was calculated using the historic volatility of our stock, excluding our first two trading months, and the historic volatility of a peer group.

(b)Based on the U.S. Treasury yield for the 2.5 year remaining term.

(c)The Monte Carlo model used for valuation included a dividend adjusted stock price and assumed reinvestment of dividends during the performance period.

EQUITY (Tables)

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

Summary of common stock issuances

The following is a summary of changes in our shares outstanding during the year ended December 31, 2021 (Successor):


			Common Stock
			(in thousands)






Balance, December 31, 2020			83,319,660
Shares issued for warrant exercises			51,377
Shares issued under stock-based compensation arrangements			18,173
Shares repurchased			(4,089,988)
Balance, December 31, 2021			79,299,222

EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Schedule of calculation of basic and diluted EPS

The following table presents the calculation of basic and diluted EPS.


	Successor				Predecessor
	Year ended December 31,		November 1, 2020 - December 31, 2020		January 1, 2020 - October 31, 2020		Year ended December 31,
	2021						2019
(in millions, except per share amounts)
Numerator for Basic and Diluted EPS
Net income (loss)	$	625	$	(125)	$	1,996	$	99
Less: Net income attributable to noncontrolling interests	(13)		2		(107)		(127)
Net income (loss) attributable to common stock	612		(123)		1,889		(28)
Less: Net income allocated to participating securities	—		—		(22)		—
Modification of noncontrolling interest(a)	—		—		138		—
Net (loss) income available to common stockholders	$	612	$	(123)	$	2,005	$	(28)

Denominator for Basic EPS
Weighted-average common shares	82.0		83.3		49.4		49.0

Potential dilutive common shares:
Restricted Stock Units	0.5		—		0.2		—
Performance Stock Units	0.5		—		—		—


Denominator for Diluted Earnings per Share
Weighted-average shares - diluted	83.0		83.3		49.6		49.0

EPS
Basic	$	7.46	$	(1.48)	$	40.59	$	(0.57)
Diluted	$	7.37	$	(1.48)	$	40.42	$	(0.57)

Schedule of potentially dilutive common shares which were excluded from calculation

The following table presents potentially dilutive weighted-average common shares which were excluded from the denominator for diluted earnings per share:


	Successor		Predecessor
	Year ended December 31,	November 1, 2020 - December 31, 2020	January 1, 2020 - October 31, 2020	Year ended December 31,
	2021			2019
(in millions)
Shares issuable upon exercise of warrants which were issued at emergence from bankruptcy	4.4	4.4	—	—
Shares issuable upon exercise of warrants in connection with our Alpine JV	—	—	1.3	0.6
Shares issuable upon settlement of RSUs	—	—	0.2	0.6
Shares issuable upon settlement of PSUs	—	—	0.8	0.5
Shares issuable upon exercise of stock options	—	—	1.7	1.4
Total antidilutive shares	4.4	4.4	4.0	3.1

PENSION AND POSTRETIREMENT BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

Components of pension and postretirement amounts recognized in the balance sheets


	Successor
	2021				2020
	Pension		Postretirement		Pension		Postretirement
Amounts recognized on the balance sheet
Accrued liabilities	$	—	$	(4)	$	—	$	(4)
Other long-term liabilities	(15)		(44)		(15)		(125)
	$	(15)	$	(48)	$	(15)	$	(129)

Amounts recognized in accumulated other comprehensive income (loss)	$	(2)	$	74	$	(1)	$	(7)

Funding status of plans


	Successor				Predecessor
	Year ended December 31,		November 1, 2020 - December 31, 2020		January 1, 2020 - October 31, 2020
	2021
Pension
Changes in the benefit obligation
Benefit obligation—beginning of year	$	47	$	46	$	45
Service cost—benefits earned during the period	1		—		1
Interest cost on projected benefit obligation	1		—		1
Actuarial loss	2		3		1

Benefits paid	(7)		(2)		(2)


Benefit obligation—end of year	$	44	$	47	$	46

Changes in plan assets
Fair value of plan assets—beginning of year	$	32	$	26	$	27
Actual return on plan assets	2		2		1
Employer contributions	2		6		—
Benefits paid	(7)		(2)		(2)
Fair value of plan assets—end of year	$	29	$	32	$	26

Net benefit liability (unfunded status)	$	(15)	$	(15)	$	(20)

Postretirement
Changes in the benefit obligation (in millions)
Benefit obligation—beginning of year	$	129	$	122	$	116
Service cost—benefits earned during the period	4		1		4
Interest cost on projected benefit obligation	3		—		3
Actuarial (gain) loss	(17)		7		2


Benefits paid	(5)		(1)		(3)
Plan amendment	(65)		—		—


Benefit obligation—end of year	$	49	$	129	$	122

Changes in plan assets
Fair value of plan assets—beginning of year	$	—	$	—	$	—

Employer contributions	6		1		3
Benefits paid	(5)		(1)		(3)
Fair value of plan assets—end of year	$	1	$	—	$	—

Net benefit liability (unfunded status)	$	(48)	$	(129)	$	(122)

Schedule of defined benefit pension plans with accumulated benefit obligations in excess of plan assets

Our accumulated benefit obligation for our defined benefit pension plans exceeded the fair value of our plan assets as shown in the table below for the years ended December 31:


	Successor
	2021		2020
(in millions)
Projected benefit obligation	$	44	$	47
Accumulated benefit obligation	$	39	$	43
Fair value of plan assets	$	29	$	32

Schedule of net benefit costs

The following table set forth the components of our net periodic pension and postretirement benefit costs (in millions):


	Successor				Predecessor
	Year ended December 31,		November 1, 2020 - December 31, 2020		January 1, 2020 - October 31, 2020		Year ended December 31,
	2021						2019
Pension
Net periodic benefit costs
Service cost—benefits earned during the period	$	1	$	—	$	1	$	1
Interest cost on projected benefit obligation	1		—		1		2
Expected return on plan assets	(1)		—		(1)		(2)
Amortization of net actuarial loss	—		—		1		1
Settlement costs	—		—		1		9
Net periodic benefit costs	$	1	$	—	$	3	$	11

Postretirement
Net periodic benefit costs
Service cost—benefits earned during the period	$	4	$	1	$	4	$	4
Interest cost on projected benefit obligation	3		—		3		4

Cost of special termination benefits	—		—		—		6
Amortization of prior service cost credit	(1)		—		—		—
Settlement costs	—		—		1		—

Net periodic benefit costs	$	6	$	1	$	8	$	14

Amounts recognized in other comprehensive income (expense)

The following table presents the changes in plan assets and benefit obligations recognized in other comprehensive (loss) income before tax (in millions):


	Successor				Predecessor
	Year ended December 31,		November 1, 2020 - December 31, 2020		January 1, 2020 - October 31, 2020		Year ended December 31,
	2021						2019
Pension
Amounts recognized in other comprehensive income (loss) (in millions)
Net actuarial loss	$	(1)	$	(1)	$	(1)	$	(6)

Settlement costs	—		—		1		9
Amortization of net actuarial gain/loss	—		—		1		1
Total recognized in other comprehensive (loss) income	$	(1)	$	(1)	$	1	$	4

Postretirement

Net actuarial gain (loss)	$	17	$	(7)	$	(2)	$	(19)
Net prior service credit	65		—		—		—
Settlement costs	—		—		1		(2)
Amortization of prior service cost credit	(1)		—		—		—
Total recognized in other comprehensive income (loss)	$	81	$	(7)	$	(1)	$	(21)

Weighted-average assumptions used to determine benefit obligations and net periodic benefit cost

The following tables sets forth the valuation assumptions, on a weighted-average basis, used to determine our benefit obligations and net periodic benefit cost:


	Successor				Predecessor
	Year ended December 31,		November 1, 2020 - December 31, 2020		January 1, 2020 - October 31, 2020
	2021
Pension
Benefit Obligation Assumptions
Discount rate	2.79	%	2.42	%	2.70	%
Rate of compensation increase	4.00	%	4.00	%	4.00	%
Net Periodic Benefit Cost Assumptions
Discount rate	2.42	%	2.70	%	3.16	%
Assumed long-term rate of return on assets	6.25	%	5.42	%	5.42	%
Rate of compensation increase	4.00	%	4.00	%	4.00	%


	Successor						Predecessor
	October 1, 2021 - December 31, 2021		January 1, 2021 - September 30, 2021		November 1, 2020 - December 31, 2020		January 1, 2020 - October 31, 2020
Postretirement(a)
Benefit Obligation Assumptions
Discount rate	2.75	%	2.69	%	2.92	%	3.11	%
Net Periodic Benefit Cost Assumptions
Discount rate	2.69	%	2.92	%	3.11	%	3.48	%

(a)Our plan design change on September 30, 2021 resulted in a remeasurement of our postretirement benefit obligations.

Fair values of pension plan assets by asset category

The fair values of our pension plan assets by asset category are as follows:


	Fair Value Measurements at December 31, 2021 (Successor)
	Level 1		Level 2		Level 3		Total
Asset Class	(in millions)
Cash equivalents	$	5	$	—	$	—	$	5
Commingled funds
Fixed income	—		2		—		2
U.S. equity	—		3		—		3
International equity	—		2		—		2
Mutual funds
Bond funds	5		—		—		5

Value funds	2		—		—		2
Growth funds	5		—		—		5
Guaranteed deposit account	—		—		5		5
Total pension plan assets	$	17	$	7	$	5	$	29


	Fair Value Measurements at December 31, 2020 (Successor)
	Level 1		Level 2		Level 3		Total
Asset Class	(in millions)
Cash equivalents	$	6	$	—	$	—	$	6
Commingled funds
Fixed income	—		2		—		2
U.S. equity	—		3		—		3
International equity	—		2		—		2
Mutual funds
Bond funds	5		—		—		5

Value funds	2		—		—		2
Growth funds	6		—		—		6
Guaranteed deposit account	—		—		6		6
Total pension plan assets	$	19	$	7	$	6	$	32

Estimated future undiscounted benefit payments, which reflect expected future service, as appropriate

Estimated future undiscounted benefit payments by the plans, which reflect expected future service, as appropriate, are as follows:


	Pension Benefits		Postretirement Benefits
For the years ended December 31,	(in millions)
2022	$	9	$	5
2023	$	3	$	5
2024	$	3	$	4
2025	$	3	$	4
2026	$	3	$	4
2027 to 2031 Payouts	$	10	$	14

CHAPTER 11 PROCEEDINGS (Tables)

12 Months Ended

Dec. 31, 2021

Plan of Reorganization [Abstract]

Schedule of changes in noncontrolling interests


	Equity Attributable to Noncontrolling Interests						Mezzanine Equity - Redeemable Noncontrolling Interest
	Ares JV		BSP JV		Total		Ares JV		Total
	(in millions)
Balance, December 31, 2018	$	15	$	99	$	114	$	756	$	756
Net (loss) income attributable to noncontrolling interests	(7)		17		10		117		117
Contributions from noncontrolling interest holders, net	—		49		49		—		—
Distributions to noncontrolling interest holders	(8)		(72)		(80)		(71)		(71)
Balance, December 31, 2019	$	—	$	93	$	93	$	802	$	802
Net income (loss) attributable to noncontrolling interests	3		10		13		94		94

Distributions to noncontrolling interest holders	(3)		(34)		(37)		(67)		(67)
Modification of noncontrolling interest	—		—		—		(138)		(138)
Acquisition of noncontrolling interest	—		—		—		(691)		(691)
Fair value adjustment of noncontrolling interest in fresh start accounting	—		7		7		—		—
Balance, October 31, 2020	$	—	$	76	$	76	$	—	$	—

FRESH START ACCOUNTING (Tables)

12 Months Ended

Dec. 31, 2021

Reorganizations [Abstract]

Reconciliation of enterprise value

The following table summarizes our enterprise value upon emergence (in millions):


Fair value of total equity upon emergence	$	1,345
Fair value of long-term debt	725
Fair value of asset retirement obligations	593
Less: Unrestricted cash(a)	(163)
Total Enterprise Value	$	2,500

(a)Includes $118 million of cash used to temporarily collateralize letters of credit at our emergence date.

The following table reconciles our enterprise value to our reorganization value, or total asset value, upon emergence (in millions):


Enterprise value	$	2,500
Add: Unrestricted cash(a)	163
Add: Current liabilities(b)	396
Add: Other long-term liabilities(b)	231
Less: Other	(2)
Reorganization value	$	3,288

(a)Includes $118 million of cash used to temporarily collateralize letters of credit.

(b)Excludes asset retirement obligations of $50 million in current liabilities and $543 million in other long-term liabilities.

Schedule of fresh-start adjustments



	Predecessor		Reorganization Adjustments			Fresh Start Adjustments			Successor
CURRENT ASSETS
Cash	$	106	$	97	(1)	$	—		$	203
Trade receivables	149		—			—			149
Inventories	61		—			—			61
Other current assets, net	104		(2)		(2)	—			102
Total current assets	420		95			—			515
PROPERTY, PLANT AND EQUIPMENT	22,918		—			(20,236)		(12)	2,682
Accumulated depreciation, depletion and amortization	(18,588)		—			18,588		(12)	—
Total property, plant and equipment, net	4,330		—			(1,648)			2,682
OTHER ASSETS	77		18		(3)	(4)		(13)	91
TOTAL ASSETS	$	4,827	$	113		$	(1,652)		$	3,288


	Predecessor		Reorganization Adjustments			Fresh Start Adjustments			Successor
CURRENT LIABILITIES


Debtor-in-possession financing	733		(733)		(4)	—			—
Accounts payable	215		—			—			215
Accrued liabilities	233		(16)		(5)	14		(14)	231
Total current liabilities	1,181		(749)			14			446
LONG-TERM DEBT, NET	—		723		(6)	—			723
OTHER LONG-TERM LIABILITIES	725		—			49		(15)	774
LIABILITIES SUBJECT TO COMPROMISE	4,516		(4,516)		(7)	—			—
MEZZANINE EQUITY
Redeemable noncontrolling interests	691		(691)		(8)	—			—
EQUITY
Predecessor preferred stock	—		—			—			—
Predecessor common stock	—		—			—			—
Predecessor additional paid-in capital	5,149		(5,149)		(9)	—			—
Successor preferred stock	—					—			—
Successor common stock	—		1		(10)	—			1
Successor additional paid-in capital	—		1,253		(10)	—			1,253
Successor warrants	—		15		(10)	—			15
Accumulated deficit	(7,481)		9,226		(11)	(1,745)		(16)	—
Accumulated other comprehensive loss	(23)		—			23		(17)	—
Total equity attributable to common stock	(2,355)		5,346			(1,722)			1,269
Equity attributable to noncontrolling interests	69		—			7		(18)	76
Total equity	(2,286)		5,346			(1,715)			1,345
TOTAL LIABILITIES AND EQUITY	$	4,827	$	113		$	(1,652)		$	3,288

Reorganization Adjustments

(1)Net change in cash upon our emergence included the following transactions (in millions):


Proceeds from Revolving Credit Facility	$	225
Proceeds from Subscription Rights and Backstop Commitment, net	446
Proceeds from Second Lien Term Loan	200
Repayment of debtor-in-possession facilities	(733)
Payment of legal, professional and other fees	(15)
Debt issuance costs for the Revolving Credit Facility	(18)
Debt issuance costs for the Second Lien Term Loan	(2)
Acquisition of noncontrolling interest as part of the Settlement Agreement	(2)
Distribution to noncontrolling interest holder	(3)
Payment of accrued interest and bank fees	(1)
Net change	$	97

(2)Represents the write-off of unamortized insurance premiums for our directors and officers policy, which was cancelled as a result of changing the composition of our Board of Directors.

(3)Represents the capitalization of debt issuance costs for our Revolving Credit Facility.

(5)Reflects the payment of $15 million for legal, professional and other fees related to our bankruptcy proceedings upon emergence and $1 million for accrued interest and bank fees.

(6)Our exit financing at emergence included the following:


	October 31, 2020
	($ in millions)
Revolving Credit Facility	$	225
Second Lien Term Loan	200
EHP Notes	300
Long-term debt (principal amount)	$	725
Debt issuance costs	(2)
Total long-term debt, net	$	723

For additional information on our Successor debt, refer to Note 4 Debt.

(7)Our liabilities subject to compromise at emergence included the following (in millions):


Long-term debt (principal amount):
2017 Credit Agreement	$	1,300
2016 Credit Agreement	1,000
Second Lien Notes	1,808
2021 Notes	100
2024 Notes	144
Accrued interest	164
Total liabilities subject to compromise	$	4,516

(9)Represents the elimination of Predecessor additional paid-in capital.

(10) Represents the fair value of 83.3 million shares of Successor common stock and Warrants issued in accordance with the Plan as follows (in millions):


Par value	$	1
Additional paid-in capital	1,253
Warrants	15
Total	$	1,269

(11) Represents the decrease in accumulated deficit resulting from reorganization adjustments and the reclassification from Predecessor additional paid-in capital.

Fresh Start Adjustments

(12) Represents fair value adjustments to property, plant and equipment (PP&E), including the elimination of Predecessor accumulated depreciation, depletion and amortization.

The fair value of our PP&E at emergence consisted of the following:


Proved oil and natural gas properties	$	2,409
Facilities and other	273
Total PP&E	$	2,682

(13) Represents an adjustment to our right of use assets as if our lease agreements were new leases on our emergence date. See Note 5 Leases for more information on our leases.

(16) Represents the elimination of Predecessor accumulated deficit.

(17) Represents the elimination of Predecessor accumulated other comprehensive loss.

(18) Represents a fair value adjustment of the noncontrolling interest in the BSP JV based on discounted expected future cash flows.

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER - Basis of Presentation (Details)	1 Months Ended
	Oct. 31, 2021
Disposal Group, Disposed of by Sale, Not Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Working interest in Lost Hills field sold	90.00%

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER - Concentration of Customers (Details) - Oil And Gas Sales And Other Revenue - Major Customers	2 Months Ended	10 Months Ended	12 Months Ended
	Dec. 31, 2020	Oct. 31, 2020	Dec. 31, 2021	Dec. 31, 2019
Three California Refineries, Each
Revenue Recognition
Concentration risk percentage	10.00%		10.00%
Three California Refineries
Revenue Recognition
Concentration risk percentage	50.00%		51.00%
Two California Refineries, Each
Revenue Recognition
Concentration risk percentage		10.00%		10.00%
Two California Refineries
Revenue Recognition
Concentration risk percentage		46.00%		46.00%

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER - Restructuring (Details) - USD ($) $ in Millions	2 Months Ended	10 Months Ended	12 Months Ended
	Dec. 31, 2020	Oct. 31, 2020	Dec. 31, 2021
Organization Changes
Debt Instrument [Line Items]
Restructuring Charges	$ 5	$ 10	$ 15

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER - Property, Plant and Equipment (Details)	12 Months Ended
	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Period before costs expensed for no proved reserves	1 year
Building
Property, Plant and Equipment [Line Items]
Expected useful lives	25 years
Hardware
Property, Plant and Equipment [Line Items]
Expected useful lives	5 years
Maximum \| Gas plant and power plant assets
Property, Plant and Equipment [Line Items]
Expected useful lives	30 years
Maximum \| Improvements
Property, Plant and Equipment [Line Items]
Expected useful lives	10 years
Maximum \| Software and Telecommunications Equipment
Property, Plant and Equipment [Line Items]
Expected useful lives	4 years
Minimum \| Improvements
Property, Plant and Equipment [Line Items]
Expected useful lives	4 years
Minimum \| Software and Telecommunications Equipment
Property, Plant and Equipment [Line Items]
Expected useful lives	1 year

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER - Disaggregation of revenue (Details) - USD ($) $ in Millions	2 Months Ended	10 Months Ended	12 Months Ended
	Dec. 31, 2020	Oct. 31, 2020	Dec. 31, 2021	Dec. 31, 2019
Disaggregation of revenue
Oil, natural gas and NGL sales	$ 237	$ 1,092	$ 2,048	$ 2,270
Oil
Disaggregation of revenue
Oil, natural gas and NGL sales	176	874	1,555	1,884
NGLs
Disaggregation of revenue
Oil, natural gas and NGL sales	29	106	250	179
Natural gas
Disaggregation of revenue
Oil, natural gas and NGL sales	$ 32	$ 112	$ 243	$ 207

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER - Inventories (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020	Oct. 31, 2020
NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER
Materials and supplies	$ 54	$ 58
Finished goods	6	3
Total	$ 60	$ 61	$ 61

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER - Stock-Based Incentive Plans (Details)	Oct. 27, 2020 shares
NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER
Shares reserved for future issuance (in shares)	4,384,182

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER - Asset Retirement Obligations (Details) - USD ($) $ in Millions	2 Months Ended	10 Months Ended	12 Months Ended
	Dec. 31, 2020	Oct. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Asset Retirement Obligations Roll forward
Beginning balance	$ 593	$ 517	$ 597	$ 517
Liabilities settled and divested	(5)	(16)	(157)
Accretion expense on discounted obligation	8	33	50
Revisions of estimated obligation	0	0	19
Impact of fresh start accounting	0	57	0	57
Other	1	2	1
Liabilities reclassified as held for sale	0	0	(21)
Ending balance	597	593	489	597
Current portion	50	50	51	50
Non-current portion	$ 547	$ 543	438	$ 547
Asset retirement obligation, period decrease			108
Settlement payments of asset retirement obligations			42
Divestitures of asset retirement obligations			$ 115

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER - Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Taxes
Interest and penalties related to uncertain tax positions	$ 0	$ 0	$ 0

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER - Production - Sharing Type Contracts (Details)	12 Months Ended
	Dec. 31, 2021
Production Sharing Type Contracts
Percentage of production represented by PSC-type contracts	15.00%
Percentage of operating costs reported under PSC-type contracts	100.00%

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER - Other Current Assets (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020	Oct. 31, 2020
Other current assets
Amounts due from joint interest partners	$ 47	$ 42
Fair value of derivative contracts	6	0
Prepaid expenses	16	20
Prepaid greenhouse gas allowances	31	0
Collateral on natural gas purchases	12	0
Other	9	1
Other current assets	$ 121	$ 63	$ 102

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER - Other noncurrent Assets (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER
Operating lease right-of-use assets	$ 43	$ 38
Deferred financing costs - Revolving Credit Facility	11	17
Emission reduction credits	11	11
Prepaid power plant maintenance	21	14
Fair value of derivative contracts	1	0
Deposits and other	11	10
Other noncurrent assets	$ 98	$ 90

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER - Accrued Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020	Oct. 31, 2020
Accrued liabilities current [abstract]
Accrued employee-related costs	$ 61	$ 72
Accrued taxes other than on income	30	36
Asset retirement obligations	51	50	$ 50
Accrued interest	19	1
Lease liability	11	7
Deferred premiums on derivative contracts	57	18
Net settlement payments due on derivative contracts	25	3
Other	43	24
Accrued liabilities	297	$ 211	$ 231
Accrued payroll tax	$ 5

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER - Other Long-Term Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER
Compensation-related liabilities	$ 38	$ 44
Postretirement and pension benefit plans	59	140
Lease liability	37	35
Deferred premiums on derivative contracts	5	31
Other	6	19
Other long-term liabilities	$ 145	$ 269

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER - Other Operating Expenses, Net (Details) - USD ($) $ in Millions	2 Months Ended	10 Months Ended	12 Months Ended
	Dec. 31, 2020	Oct. 31, 2020	Dec. 31, 2021	Dec. 31, 2019
NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER
Severance and termination costs	$ 5	$ 10	$ 15	$ 0
Deficiency payment on a pipeline delivery contract	0	20	0	0
Idle well fees	0	4	6	3
Power plant interruption	0	7	0	1
Ad valorem fees	0	4	0	0
Other, net	4	11	8	14
Other operating expenses, net	$ 9	$ 56	$ 29	$ 18

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER - Reorganization Items, net (Details) - USD ($) $ in Millions		2 Months Ended	10 Months Ended	12 Months Ended
	Oct. 31, 2020	Dec. 31, 2020	Oct. 31, 2020	Dec. 31, 2021	Dec. 31, 2019
NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER
Gain on settlement of liabilities subject to compromise		$ 0	$ 4,022	$ 0
Unamortized deferred gain and issuance costs, net		0	125	0
Junior debtor-in-possession exit fee		0	(12)	0
Acceleration of unrecognized compensation expense on cancelled stock-based compensation awards		0	(5)	0
Write-off of prepaid directors and officers' insurance premiums		0	(2)	0
Total non-cash reorganization items		0	4,128	0	$ 0
Legal, professional and other, net	$ (15)	(3)	(43)	(6)
Debtor-in-possession financing costs		0	(25)	0
Total reorganization items, net		$ (3)	$ 4,060	$ (6)	$ 0

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	2 Months Ended	10 Months Ended	12 Months Ended
	Dec. 31, 2020	Oct. 31, 2020	Dec. 31, 2021	Dec. 31, 2019
Supplemental Cash Flow Information
Cash paid for interest, net of amounts capitalized	$ (8)	$ (79)	$ (28)	$ (425)
Supplemental Disclosure of Noncash Investing and Financing Activities
Successor common stock, Subscription Rights and Warrants issued pursuant to the Plan	0	(494)	0	0
Successor common stock issued for the junior debtor-in-possession exit fee pursuant to the Plan	0	(12)	0	0
Successor common stock and EHP Notes issued for acquisition of noncontrolling interest pursuant to the Plan	0	(561)	0	0
Successor common stock issued for a backstop commitment premium pursuant to the Plan	0	(52)	0	0
Warrant issued to a joint venture partner	0	0	0	(3)
Derivative related to additional earn-out consideration for the Ventura divestiture	$ 0	$ 0	$ 3	$ 0

PROPERTY, PLANT AND EQUIPMENT - Schedule of Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020	Oct. 31, 2020
Property, Plant and Equipment
Total property, plant and equipment	$ 2,845	$ 2,689	$ 2,682
Accumulated depreciation, depletion and amortization	(246)	(34)	0
Total property, plant and equipment, net	2,599	2,655	$ 2,682
Proved oil and natural gas properties
Property, Plant and Equipment
Total property, plant and equipment	2,604	2,416
Unproved oil and natural gas properties
Property, Plant and Equipment
Total property, plant and equipment	1	1
Facilities and other
Property, Plant and Equipment
Total property, plant and equipment	$ 240	$ 272

PROPERTY, PLANT AND EQUIPMENT - Summary of the Activity of Capitalized Exploratory Well Costs (Details) - USD ($) $ in Millions	2 Months Ended	10 Months Ended	12 Months Ended
	Dec. 31, 2020	Oct. 31, 2020	Dec. 31, 2021	Dec. 31, 2019
Capitalized exploratory well costs for the years ended December 31:
Beginning balance	$ 3	$ 7	$ 3	$ 5
Additions to capitalized exploratory well costs	0	0	0	12
Reclassification to property, plant and equipment	0	0	0	(3)
Charged to expense	0	(2)	(2)	(7)
Impact of fresh start accounting	0	(2)	0	0
Ending balance	$ 3	$ 3	$ 1	$ 7

PROPERTY, PLANT AND EQUIPMENT - Narrative (Details) - USD ($) $ in Millions	1 Months Ended	2 Months Ended	3 Months Ended	10 Months Ended	12 Months Ended
	Jan. 31, 2022	Dec. 31, 2020	Sep. 30, 2021	Oct. 31, 2020	Dec. 31, 2021	Dec. 31, 2019
Property, Plant and Equipment
Asset impairments		$ 0	$ 25	$ 1,736	$ 28	$ 0
Capitalized cost					3
Subsequent Event \| Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Ventura Basin
Property, Plant and Equipment
Proceeds from sale of oil and gas	$ 15
Bakersfield Office Building
Property, Plant and Equipment
Asset impairments					$ 25

PROPERTY, PLANT AND EQUIPMENT - Schedule of Asset Impairments (Details) - USD ($) $ in Millions	2 Months Ended	3 Months Ended	10 Months Ended	12 Months Ended
	Dec. 31, 2020	Sep. 30, 2021	Oct. 31, 2020	Dec. 31, 2021	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Proved oil and natural gas properties			$ 1,487
Unproved properties			228
Other			21
Total	$ 0	$ 25	$ 1,736	$ 28	$ 0

DIVESTITURES AND ACQUISITIONS - Divestitures (Details) - USD ($)		1 Months Ended				2 Months Ended	3 Months Ended	10 Months Ended	12 Months Ended
	Feb. 01, 2022	Jan. 31, 2022	Oct. 31, 2021	Jan. 31, 2020	May 31, 2019	Dec. 31, 2020	Jun. 30, 2021	Oct. 31, 2020	Dec. 31, 2021	Dec. 31, 2019
Business Acquisition [Line Items]
Proceeds from asset divestitures						$ 0		$ 41,000,000	$ 67,000,000	$ 164,000,000
Gain on asset divestitures						$ 0		$ 0	124,000,000	$ 0
Disposal Group, Disposed of by Sale, Not Discontinued Operations
Business Acquisition [Line Items]
Working interest in Lost Hills field sold			90.00%
Ventura Basin \| Disposal Group, Held-for-sale, Not Discontinued Operations
Business Acquisition [Line Items]
Expected cash consideration							$ 102,000,000
Proceeds from sale of oil and gas							82,000,000		120,000,000
Maximum production proceeds, decommissioning obligations							$ 20,000,000
Decommissioning obligations satisfaction period							5 years
Proceeds from asset divestitures							$ 0
Ventura Basin \| Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Subsequent Event
Business Acquisition [Line Items]
Proceeds from sale of oil and gas		$ 15,000,000
Lost Hills, San Joaquin Basin \| Disposal Group, Disposed of by Sale, Not Discontinued Operations
Business Acquisition [Line Items]
Proceeds from asset divestitures					$ 164,000,000
Working interest in Lost Hills field sold					50.00%
Gain on asset divestitures					$ 0
Lost Hills, San Joaquin Basin \| Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Subsequent Event
Business Acquisition [Line Items]
Proceeds from sale of oil and gas	$ 55,000,000
Working interest acquired by MIRA	50.00%
Other 2021 Divestiture \| Disposal Group, Disposed of by Sale, Not Discontinued Operations
Business Acquisition [Line Items]
Proceeds from asset divestitures									13,000,000
Gain (loss) on disposition of business									$ 4,000,000
January 2020 Divestiture \| Disposal Group, Disposed of by Sale, Not Discontinued Operations
Business Acquisition [Line Items]
Proceeds from asset divestitures				$ 41,000,000
Gain on asset divestitures				$ 0

DIVESTITURES AND ACQUISITIONS - Acquisition (Details) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Aug. 31, 2021	Dec. 31, 2019	Dec. 31, 2021	Jul. 31, 2021
Joint Venture With Macquarie Infrastructure And Real Assets Inc
Business Acquisition [Line Items]
Working interest acquired by MIRA			90.00%
Purchased of working interest share conveyed assets	$ 52
Working interest retained by CRC				10.00%
Other upstream acquisitions
Business Acquisition [Line Items]
Purchase price		$ 6

DEBT - Schedule of Long-Term Debt (Details) - USD ($) $ in Millions		12 Months Ended
	Oct. 27, 2020	Dec. 31, 2021	Dec. 31, 2020	Oct. 31, 2020
Debt
Principal amount of debt		$ 600	$ 599	$ 725
Unamortized debt issuance costs		(11)	(2)	(2)
Long-term debt, net		589	597	723
Senior Notes (Unsecured)
Debt
Principal amount of debt		$ 600	0
Interest rate		7.125%
Second Lien Term Loan \| Line of Credit \| LIBOR
Debt
Interest rate added to variable rate basis	1.00%
Second Lien Term Loan \| Lien Notes
Debt
Principal amount of debt		$ 0	$ 200	200
Second Lien Term Loan \| Lien Notes \| LIBOR \| Minimum
Debt
Interest rate added to variable rate basis			9.00%
Second Lien Term Loan \| Lien Notes \| LIBOR \| Maximum
Debt
Interest rate added to variable rate basis			10.50%
Second Lien Term Loan \| Lien Notes \| Alternative Base Rate \| Minimum
Debt
Interest rate added to variable rate basis			8.00%
Second Lien Term Loan \| Lien Notes \| Alternative Base Rate \| Maximum
Debt
Interest rate added to variable rate basis			9.50%
EHP Notes \| Senior Notes (Unsecured)
Debt
Principal amount of debt		0	$ 300	300
Interest rate			6.00%
Revolving Credit Facility \| Line of Credit
Debt
Principal amount of debt		$ 0	$ 99	$ 225
Revolving Credit Facility \| Line of Credit \| LIBOR
Debt
Interest rate added to variable rate basis	1.00%
Revolving Credit Facility \| Line of Credit \| LIBOR \| Minimum
Debt
Interest rate added to variable rate basis		3.00%
Revolving Credit Facility \| Line of Credit \| LIBOR \| Maximum
Debt
Interest rate added to variable rate basis		4.00%
Revolving Credit Facility \| Line of Credit \| Alternative Base Rate \| Minimum
Debt
Interest rate added to variable rate basis		2.00%
Revolving Credit Facility \| Line of Credit \| Alternative Base Rate \| Maximum
Debt
Interest rate added to variable rate basis		3.00%

DEBT - Fair Value (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020	Oct. 31, 2020
Debt Disclosure [Abstract]
Estimated fair value of long-term debt	$ 623	$ 599
Principal amount of debt	$ 600	$ 599	$ 725

DEBT - Revolving Credit Facility (Details) - Line of Credit $ in Millions		12 Months Ended
	Oct. 27, 2020 USD ($)	Dec. 31, 2021 USD ($)
Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 492
Line of current borrowing capacity	$ 1,200	$ 367
Line of credit facility, unused capacity, commitment fee percentage	0.50%
Debt instrument, covenant leverage ratio	3.00
Revolving Credit Facility \| First 24 Months
Debt Instrument [Line Items]
Derivative, hedging percent	50.00%
Revolving Credit Facility \| First 24 Months \| Crude Oil Hedge Positions
Debt Instrument [Line Items]
Derivative, allocation percent	75.00%
Derivative, period	24 months
Revolving Credit Facility \| Month 25 Through Month 36 \| Crude Oil Hedge Positions
Debt Instrument [Line Items]
Derivative, allocation percent	50.00%
Revolving Credit Facility \| 48 Month Period
Debt Instrument [Line Items]
Derivative, hedging percent	85.00%
Derivative, period	48 months
Revolving Credit Facility \| 48 Month Period \| Crude Oil Hedge Positions
Debt Instrument [Line Items]
Derivative, allocation percent	33.00%
Debt instrument, floor interest rate	100.00%
Revolving Credit Facility \| Minimum
Debt Instrument [Line Items]
Debt instrument, covenant leverage ratio	2.00
Revolving Credit Facility \| Maximum
Debt Instrument [Line Items]
Debt instrument, covenant leverage ratio	2.00
Revolving Credit Facility \| LIBOR
Debt Instrument [Line Items]
Interest rate floor	1.00%
Interest rate added to variable rate basis	1.00%
Revolving Credit Facility \| LIBOR \| Minimum
Debt Instrument [Line Items]
Interest rate added to variable rate basis		3.00%
Revolving Credit Facility \| LIBOR \| Maximum
Debt Instrument [Line Items]
Interest rate added to variable rate basis		4.00%
Revolving Credit Facility \| Alternative Base Rate
Debt Instrument [Line Items]
Interest rate floor	2.00%
Revolving Credit Facility \| Alternative Base Rate \| Minimum
Debt Instrument [Line Items]
Interest rate added to variable rate basis		2.00%
Revolving Credit Facility \| Alternative Base Rate \| Maximum
Debt Instrument [Line Items]
Interest rate added to variable rate basis		3.00%
Revolving Credit Facility \| Federal Funds Rate
Debt Instrument [Line Items]
Interest rate added to variable rate basis	0.50%
Revolving Credit Facility \| LIBOR Applicable Margin \| Minimum
Debt Instrument [Line Items]
Interest rate added to variable rate basis	3.00%
Revolving Credit Facility \| LIBOR Applicable Margin \| Maximum
Debt Instrument [Line Items]
Interest rate added to variable rate basis	4.00%
Revolving Credit Facility \| ABR Applicable Margin \| Minimum
Debt Instrument [Line Items]
Interest rate added to variable rate basis	2.00%
Revolving Credit Facility \| ABR Applicable Margin \| Maximum
Debt Instrument [Line Items]
Interest rate added to variable rate basis	3.00%
Letters of Credit
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 200
Letters of credit outstanding amount		$ 125

DEBT - Schedule of Financial Covenants (Details) - Revolving Credit Facility - Line of Credit	Oct. 27, 2020
Debt Instrument [Line Items]
Consolidated Total Net Leverage Ratio	3.00
Current Ratio	1.00

DEBT - Senior Notes (Details) - USD ($) $ in Millions		1 Months Ended	2 Months Ended	10 Months Ended	12 Months Ended
DEBT - Senior Notes (Details) - USD ($) $ in Millions	Jan. 20, 2021	Jan. 20, 2021	Dec. 31, 2020	Oct. 31, 2020	Dec. 31, 2021	Dec. 31, 2019
Debt Instrument [Line Items]
Net loss (gain) on early extinguishment of debt			$ 0	$ (5)	$ 2	$ (126)
Senior Notes (Unsecured)
Debt Instrument [Line Items]
Interest rate					7.125%
Net loss (gain) on early extinguishment of debt	$ 2
7.125% Unsecured Debt Notes \| Senior Notes (Unsecured)
Debt Instrument [Line Items]
Aggregate principal amount issued	$ 600	$ 600
Interest rate	7.125%	7.125%
Proceeds from issuance of debt	$ 587
Debt issuance costs, net	13	$ 13
Percentage of principal amount at which notes can be redeemed in case of change control		101.00%
7.125% Unsecured Debt Notes \| Senior Notes (Unsecured) \| Prior to 90 Days
Debt Instrument [Line Items]
Percentage of principal amount at which notes can be redeemed prior to their maturity date		35.00%
7.125% Unsecured Debt Notes \| Senior Notes (Unsecured) \| Prior to February 1, 2023
Debt Instrument [Line Items]
Percentage of principal amount at which notes can be redeemed prior to their maturity date		107.00%
7.125% Unsecured Debt Notes \| Senior Notes (Unsecured) \| Twelve Months Beginning February 1, 2023
Debt Instrument [Line Items]
Percentage of principal amount at which notes can be redeemed prior to their maturity date		104.00%
7.125% Unsecured Debt Notes \| Senior Notes (Unsecured) \| Twelve Months Beginning February 1, 2024
Debt Instrument [Line Items]
Percentage of principal amount at which notes can be redeemed prior to their maturity date		102.00%
7.125% Unsecured Debt Notes \| Senior Notes (Unsecured) \| After February 1, 2025
Debt Instrument [Line Items]
Percentage of principal amount at which notes can be redeemed prior to their maturity date		100.00%
Second Lien Term Loan, EHP Notes, And Revolving Credit Facility \| Senior Notes (Unsecured)
Debt Instrument [Line Items]
Repayments of debt	$ 587

DEBT - Second Lien Term Loan (Details) - Second Lien Term Loan - Line of Credit $ in Millions	Oct. 27, 2020 USD ($)
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 200
Debt instrument, term	5 years
Financial covenant minimum month end liquidity	$ 170
Financial covenant, liquidity threshold	247
Financial covenant, increase in commitment threshold	$ 51
Prior to 90 Days
Debt Instrument [Line Items]
Percentage of principal amount at which notes can be redeemed prior to their maturity date	100.00%
After 90 Days, Before First Anniversary Date
Debt Instrument [Line Items]
Percentage of principal amount at which notes can be redeemed prior to their maturity date	105.00%
After the First Anniversary Date, Before Second Anniversary Date
Debt Instrument [Line Items]
Percentage of principal amount at which notes can be redeemed prior to their maturity date	103.00%
After the Second Anniversary Date, Before Third Anniversary Date
Debt Instrument [Line Items]
Percentage of principal amount at which notes can be redeemed prior to their maturity date	102.00%
After the Third Anniversary Date, Before Fourth Anniversary Date
Debt Instrument [Line Items]
Percentage of principal amount at which notes can be redeemed prior to their maturity date	101.00%
Fifth Year
Debt Instrument [Line Items]
Percentage of principal amount at which notes can be redeemed prior to their maturity date	100.00%
LIBOR
Debt Instrument [Line Items]
Interest rate floor	1.00%
Interest rate added to variable rate basis	1.00%
Alternative Base Rate
Debt Instrument [Line Items]
Interest rate floor	2.00%
Federal Funds Rate
Debt Instrument [Line Items]
Interest rate added to variable rate basis	0.50%
ABR Applicable Margin \| After Second Anniversary
Debt Instrument [Line Items]
Interest rate added to variable rate basis	8.00%
ABR Applicable Margin \| Minimum \| Prior to Second Anniversary
Debt Instrument [Line Items]
Interest rate added to variable rate basis	8.00%
ABR Applicable Margin \| Maximum \| Prior to Second Anniversary
Debt Instrument [Line Items]
Interest rate added to variable rate basis	9.50%
LIBOR Applicable Margin \| After Second Anniversary
Debt Instrument [Line Items]
Interest rate added to variable rate basis	9.00%
LIBOR Applicable Margin \| Minimum \| Prior to Second Anniversary
Debt Instrument [Line Items]
Interest rate added to variable rate basis	9.00%
LIBOR Applicable Margin \| Maximum \| Prior to Second Anniversary
Debt Instrument [Line Items]
Interest rate added to variable rate basis	10.50%

DEBT - EHP Notes (Details) - Senior Notes (Unsecured) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020	Oct. 27, 2020
Debt Instrument [Line Items]
Interest rate	7.125%
EHP Notes
Debt Instrument [Line Items]
Debt instrument face amount			$ 300
Interest rate		6.00%
EHP Notes \| Through Fourth Anniversary
Debt Instrument [Line Items]
Interest rate			6.00%
EHP Notes \| After Fourth Anniversary
Debt Instrument [Line Items]
Interest rate			7.00%
EHP Notes \| After Fifth Anniversary
Debt Instrument [Line Items]
Interest rate			8.00%

DEBT - Other (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020	Oct. 31, 2020
Principal maturities of long-term debt
2022	$ 0
2023	0
2024	0
2025	0
2026	600
Thereafter	0
Total	$ 600	$ 599	$ 725

LEASES - Supplement Balance Sheet Information (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	OTHER NONCURRENT ASSETS	OTHER NONCURRENT ASSETS
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization	us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Accrued liabilities	Accrued liabilities
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	Accrued liabilities	Accrued liabilities
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other long-term liabilities	Other long-term liabilities
Operating	$ 43	$ 38
Finance	0	1
Total right-of-use assets	43	39
Operating	11	6
Finance	0	1
Operating	37	35
Total lease liabilities	$ 48	$ 42

LEASES - Operating Lease Costs (Details) - USD ($) $ in Millions	2 Months Ended	10 Months Ended	12 Months Ended
	Dec. 31, 2020	Oct. 31, 2020	Dec. 31, 2021
Operating lease costs
Operating lease costs	$ 2	$ 23	$ 14
Short-term lease costs	7	25	48
Variable lease costs	0	4	4
Total operating lease costs	9	52	66
Finance lease costs	0	1	0
Sublease income	0	(1)	(2)
Total lease costs	$ 9	$ 52	$ 64

LEASES - Narrative (Details)	12 Months Ended
LEASES - Narrative (Details)	Dec. 31, 2021 contract option
Leases [Abstract]
Number of finance lease contracts \| contract	2
Number of sublease extension options \| option	0

LEASES - Supplemental Cash Flows (Details) - USD ($) $ in Millions	2 Months Ended	10 Months Ended	12 Months Ended
	Dec. 31, 2020	Oct. 31, 2020	Dec. 31, 2021
Leases [Abstract]
Operating cash flows	$ 2	$ 9	$ 8
Investing cash flows	0	14	4
Financing cash flows	0	1	1
ROU assets obtained in exchange for new operating lease liabilities	0	0	17
Impairment charges related to ROU assets	$ 0	$ 2	$ 0
Weighted-average remaining lease term (in years)	6 years 9 months 21 days		8 years 3 months
Weighted-average discount rate	4.50%		5.40%
Weighted-average remaining lease term (in years)	1 year 3 months 29 days		3 months 29 days
Weighted-average discount rate	4.00%		4.00%

LEASES - Operating and Finance Lease Liabilities (Details) $ in Millions	Dec. 31, 2021 USD ($)
Operating Leases
2022	$ 12
2023	8
2024	8
2025	6
2026	5
Thereafter	23
Less: Interest	(14)
Present value of lease liabilities	$ 48

LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	1 Months Ended
	Oct. 31, 2020 platform	Dec. 31, 2021 USD ($)
Long-term Purchase Commitment [Line Items]
Number of offshore platforms with decommissioning obligations defaulted \| platform	2
Offshore platforms with decommissioning obligations defaulted percentage	37.50%
Offshore platforms with decommissioning obligations defaulted period since interest sold	30 years
Purchase obligations
Present value of purchase obligations		$ 12
Long Term Purchase and Contractual Obligation
Purchase obligations
2022		54
2023		32
2024		10
2025		5
2026		5
Thereafter		30
Total		136
Less: Interest		(18)
Present value of purchase obligations		$ 118

DERIVATIVES - Commodity Price Risk (Details) $ in Millions	2 Months Ended	10 Months Ended	12 Months Ended
DERIVATIVES - Commodity Price Risk (Details) $ in Millions	Dec. 31, 2020 USD ($)	Oct. 31, 2020 USD ($)	Dec. 31, 2021 USD ($) bbl / d $ / barrel	Dec. 31, 2019 USD ($)
Derivatives
Non-cash commodity derivative loss, excluding noncontrolling interest \| $	$ (138)	$ (19)	$ (357)	$ (166)
Non-cash commodity derivative (loss) gain, attributable to noncontrolling interest \| $	(2)	2	0	(4)
Total non-cash changes \| $	(140)	(17)	(357)	(170)
Net (payments) proceeds on commodity derivatives \| $	(1)	108	(319)	111
Net (loss) gain from commodity derivatives \| $	$ (141)	$ 91	$ (676)	$ (59)
Calls \| Q1 2022
Derivatives
Daily volume (in Bbl) \| bbl / d			35,347
Weighted-average price (in dollars per barrel) \| $ / barrel			60.37
Calls \| Q2 2022
Derivatives
Daily volume (in Bbl) \| bbl / d			35,343
Weighted-average price (in dollars per barrel) \| $ / barrel			60.63
Calls \| Q3 2022
Derivatives
Daily volume (in Bbl) \| bbl / d			34,380
Weighted-average price (in dollars per barrel) \| $ / barrel			60.76
Calls \| Q4 2022
Derivatives
Daily volume (in Bbl) \| bbl / d			25,167
Weighted-average price (in dollars per barrel) \| $ / barrel			57.82
Calls \| 2023
Derivatives
Daily volume (in Bbl) \| bbl / d			14,790
Weighted-average price (in dollars per barrel) \| $ / barrel			58.01
Puts \| Purchased \| Q1 2022
Derivatives
Daily volume (in Bbl) \| bbl / d			35,347
Weighted-average price (in dollars per barrel) \| $ / barrel			53.32
Puts \| Purchased \| Q2 2022
Derivatives
Daily volume (in Bbl) \| bbl / d			35,343
Weighted-average price (in dollars per barrel) \| $ / barrel			54.69
Puts \| Purchased \| Q3 2022
Derivatives
Daily volume (in Bbl) \| bbl / d			34,380
Weighted-average price (in dollars per barrel) \| $ / barrel			55.95
Puts \| Purchased \| Q4 2022
Derivatives
Daily volume (in Bbl) \| bbl / d			25,167
Weighted-average price (in dollars per barrel) \| $ / barrel			57.22
Puts \| Purchased \| 2023
Derivatives
Daily volume (in Bbl) \| bbl / d			14,790
Weighted-average price (in dollars per barrel) \| $ / barrel			40.00
Puts \| Sold \| Q1 2022
Derivatives
Daily volume (in Bbl) \| bbl / d			6,869
Weighted-average price (in dollars per barrel) \| $ / barrel			32.00
Puts \| Sold \| Q2 2022
Derivatives
Daily volume (in Bbl) \| bbl / d			0
Weighted-average price (in dollars per barrel) \| $ / barrel			0
Puts \| Sold \| Q3 2022
Derivatives
Daily volume (in Bbl) \| bbl / d			4,000
Weighted-average price (in dollars per barrel) \| $ / barrel			32.00
Puts \| Sold \| Q4 2022
Derivatives
Daily volume (in Bbl) \| bbl / d			1,348
Weighted-average price (in dollars per barrel) \| $ / barrel			32.00
Puts \| Sold \| 2023
Derivatives
Daily volume (in Bbl) \| bbl / d			0
Weighted-average price (in dollars per barrel) \| $ / barrel			0
Swaps \| Q1 2022
Derivatives
Daily volume (in Bbl) \| bbl / d			12,369
Weighted-average price (in dollars per barrel) \| $ / barrel			54.38
Swaps \| Q2 2022
Derivatives
Daily volume (in Bbl) \| bbl / d			10,669
Weighted-average price (in dollars per barrel) \| $ / barrel			54.12
Swaps \| Q3 2022
Derivatives
Daily volume (in Bbl) \| bbl / d			10,476
Weighted-average price (in dollars per barrel) \| $ / barrel			53.97
Swaps \| Q4 2022
Derivatives
Daily volume (in Bbl) \| bbl / d			17,263
Weighted-average price (in dollars per barrel) \| $ / barrel			58.79
Swaps \| 2023
Derivatives
Daily volume (in Bbl) \| bbl / d			12,937
Weighted-average price (in dollars per barrel) \| $ / barrel			59.08

DERIVATIVES - Interest-Rate Risk (Details) - Interest-rate contract - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	May 31, 2018
Derivatives
Variable rate indebtedness amount	$ 0			$ 1,300
Loss recorded in other non-operating expense			$ 4
Payments received	$ 0	$ 0	$ 0
One month LIBOR
Derivatives
Interest rate to be in place to receive payment				2.75%

DERIVATIVES - Fair Value (Details) - Commodity Contracts - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Fair Value of Derivatives
Total derivatives	$ 0	$ 0
Other current assets
Fair Value of Derivatives
Netting	(27)	(21)
Other noncurrent assets
Fair Value of Derivatives
Netting	(11)	(63)
Current - Fair value of derivative contracts
Fair Value of Derivatives
Netting	27	21
Noncurrent - Fair value of derivative contracts
Fair Value of Derivatives
Netting	11	63
Gross Amounts at Fair Value
Fair Value of Derivatives
Total derivatives	(395)	(56)
Gross Amounts at Fair Value \| Other current assets
Fair Value of Derivatives
Gross Amounts at Fair Value	33	21
Gross Amounts at Fair Value \| Other noncurrent assets
Fair Value of Derivatives
Gross Amounts at Fair Value	12	63
Gross Amounts at Fair Value \| Current - Fair value of derivative contracts
Fair Value of Derivatives
Gross Amounts at Fair Value	(297)	(71)
Gross Amounts at Fair Value \| Noncurrent - Fair value of derivative contracts
Fair Value of Derivatives
Gross Amounts at Fair Value	(143)	(69)
Net Fair Value
Fair Value of Derivatives
Total derivatives	(395)	(56)
Net Fair Value \| Other current assets
Fair Value of Derivatives
Net Fair Value	6	0
Net Fair Value \| Other noncurrent assets
Fair Value of Derivatives
Net Fair Value	1	0
Net Fair Value \| Current - Fair value of derivative contracts
Fair Value of Derivatives
Net Fair Value	(270)	(50)
Net Fair Value \| Noncurrent - Fair value of derivative contracts
Fair Value of Derivatives
Net Fair Value	$ (132)	$ (6)

INCOME TAXES - Narrative (Details) - USD ($)	2 Months Ended	10 Months Ended	12 Months Ended
INCOME TAXES - Narrative (Details) - USD ($)	Dec. 31, 2020	Oct. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Operating Loss Carryforwards [Line Items]
Release of valuation allowance			$ 549,000,000
Income tax benefit	$ 0	$ 0	(396,000,000)		$ 1,000,000
Deferred tax assets, net			396,000,000
Liability recorded for unrecognized tax benefits	$ 0		0
CALIFORNIA
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards			14,000,000
Federal
Operating Loss Carryforwards [Line Items]
Release of valuation allowance			258,000,000	$ 161,000,000
Net operating loss carryforwards			84,000,000
Tax credit carryforward			20,000,000
Carryforward for business interest expense			844,000,000
Tax benefit not recognized from net operating loss carryforwards limited from ownership change			17,000,000
State and Local Jurisdiction
Operating Loss Carryforwards [Line Items]
Release of valuation allowance			291,000,000	$ 235,000,000
State and Local Jurisdiction \| CALIFORNIA
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards			2,431,000,000
Tax credit carryforward			20,000,000
Tax benefit not recognized from net operating loss carryforwards limited from ownership change			$ 1,905,000,000

INCOME TAXES - Income Tax Expense (Benefit) (Details)	2 Months Ended	10 Months Ended	12 Months Ended
INCOME TAXES - Income Tax Expense (Benefit) (Details)	Dec. 31, 2020	Oct. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Total income tax expense (benefit) differs from the U.S. federal income tax rate to pre-tax income (loss)
U.S. federal statutory tax rate	21.00%	21.00%	21.00%	21.00%
State income taxes, net	0.00%	0.00%	(81.00%)	1.00%
Exclusion of income attributable to noncontrolling interests	0.00%	(1.00%)	(1.00%)	(27.00%)
Debt restructuring	0.00%	0.00%	0.00%	0.00%
Changes in tax attributes	0.00%	0.00%	(8.00%)	(7.00%)
Executive compensation	0	0	0.02	0.02
Change in the U.S. federal valuation allowance	(20.00%)	(21.00%)	(106.00%)	10.00%
Other	(1.00%)	1.00%	0.00%	1.00%
Effective tax rate	0.00%	0.00%	(173.00%)	1.00%

INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Deferred Tax Assets and Liabilities
Deferred Tax Assets, property, plant and equipment differences	$ 122	$ 209
Deferred Tax Assets, postretirement benefit accruals	18	43
Deferred Tax Assets, asset retirement obligations	152	178
Deferred Tax Assets, net operating loss carryforwards and credits	88	12
Deferred Tax Asset, business interest expense carryforward	177	180
Deferred Tax Assets, other	59	60
Deferred Tax Assets, subtotal	616	682
Deferred Tax Assets, valuation allowance	0	(549)
Deferred Tax Assets, Net of valuation allowance	616	133
Deferred Tax Liabilities, property, plant and equipment differences	(151)	(113)
Deferred Tax Liabilities, federal benefit of state income taxes	(49)	0
Deferred Tax Liabilities, all other	(20)	(20)
Deferred Tax Liabilities, total net deferred taxes	$ (220)	$ (133)

INCOME TAXES - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions	10 Months Ended	12 Months Ended
	Oct. 31, 2020	Dec. 31, 2019
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefits – beginning balance	$ 101	$ 25
Gross (decreases) increases – tax positions in prior year	(101)
Gross (decreases) increases – tax positions in prior year		44
Gross increases – tax positions in current year	0	32
Unrecognized tax benefits – ending balance	$ 0	$ 101

STOCK-BASED COMPENSATION - Narrative (Details)	Jan. 18, 2021 shares
2021 Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for future issuance (in shares)	9,257,740

STOCK-BASED COMPENSATION - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Millions	2 Months Ended	10 Months Ended	12 Months Ended
	Dec. 31, 2020	Oct. 31, 2020	Dec. 31, 2021	Dec. 31, 2019
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 0	$ 3	$ 19	$ 32
General and administrative expenses
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	0	2	17	25
Operating costs
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 0	$ 1	$ 2	$ 7

STOCK-BASED COMPENSATION - Narrative - Stock-Based Compensation Expense (Details) - USD ($) $ in Millions	2 Months Ended	10 Months Ended	12 Months Ended
	Dec. 31, 2020	Oct. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Income tax benefit related to stock-based compensation			$ 0	$ 0	$ 0
Cash-settled Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Payments to settle award	$ 0	$ 8	$ 0		$ 25

STOCK-BASED COMPENSATION - Narrative - Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Millions	10 Months Ended	12 Months Ended
	Oct. 31, 2020	Dec. 31, 2021	Dec. 31, 2019
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		3 years
Vesting percentage		33.33%
Unrecognized compensation expense		$ 20
Weighted-average period over which unrecognized compensation expense is expected to be recognized		2 years
Granted (in dollars per share)		$ 25.23
Stock-Settled Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in dollars per share)	$ 6.20		$ 21.71

STOCK-BASED COMPENSATION - Restricted Stock Units (Details) - Restricted Stock Units shares in Thousands	12 Months Ended
	Dec. 31, 2021 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Unvested, beginning of year (in shares) \| shares	0
Granted (in shares) \| shares	1,216
Vested (in shares) \| shares	(18)
Cancelled or Forfeited (in shares) \| shares	(68)
Unvested, end of year (in shares) \| shares	1,130
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Unvested, beginning of year (in dollars per share) \| $ / shares	$ 0
Granted (in dollars per share) \| $ / shares	25.23
Vested (in dollars per share) \| $ / shares	24.50
Cancelled or Forfeited (in dollars per share) \| $ / shares	24.50
Unvested, end of year (in dollars per share) \| $ / shares	$ 25.28

STOCK-BASED COMPENSATION - Narrative - Performance Stock Unit Awards (Details) $ / shares in Units, $ in Millions	10 Months Ended	12 Months Ended
	Oct. 31, 2020 $ / shares	Dec. 31, 2021 USD ($) day $ / shares	Dec. 31, 2019 $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of trading days \| day		60
Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of trading days \| day		60
Award service period		3 years
Unrecognized compensation expense \| $		$ 14
Weighted-average period over which unrecognized compensation expense is expected to be recognized		2 years
Granted (in dollars per share) \| $ / shares		$ 20.09
Performance Stock Units \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of payouts target awards		0.00%
Performance Stock Units \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of payouts target awards		100.00%
PSU 2018 Awards \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of payouts target awards		0.00%
PSU 2018 Awards \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of payouts target awards		200.00%
Stock-Settled PSU awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in dollars per share) \| $ / shares	$ 6.20		$ 21.71

STOCK-BASED COMPENSATION - Performance Stock Unit Awards (Details) - Performance Stock Units shares in Thousands	12 Months Ended
	Dec. 31, 2021 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Unvested, beginning of year (in shares) \| shares	0
Granted (in shares) \| shares	997
Cancelled or Forfeited (in shares) \| shares	(53)
Unvested, end of year (in shares) \| shares	944
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Unvested, beginning of year (in dollars per share) \| $ / shares	$ 0
Granted (in dollars per share) \| $ / shares	20.09
Cancelled or Forfeited (in dollars per share) \| $ / shares	19.31
Unvested, end of year (in dollars per share) \| $ / shares	$ 20.14

STOCK-BASED COMPENSATION - Schedule of Percentage of Payouts Target Awards (Details)	2 Months Ended	6 Months Ended	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0.00%
Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield			0.00%
Trading period excluded		2 months
Performance Stock Units \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility			60.00%
Risk-free interest rate			0.16%
Forecast period (in years)			2 years
Expected term			2 years
Performance Stock Units \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility			65.00%
Risk-free interest rate			0.60%
Forecast period (in years)			3 years
Expected term			3 years

STOCK-BASED COMPENSATION - Narrative - Long-Term Cash Incentive Awards (Details) $ in Millions		12 Months Ended
	Jun. 30, 2021 day employee	Dec. 31, 2021 USD ($) day
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of trading days \| day		60
Long-Term Cash Incentive Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of non-executive employees \| employee	500
Number of trading days \| day	60
Award vesting period	3 years
Award service period	3 years
Unrecognized compensation expense \| $		$ 11
Expected term		2 years 6 months
Grant value of awards forfeited \| $		$ 1
Long-Term Cash Incentive Awards \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of payouts target awards	75.00%
Long-Term Cash Incentive Awards \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of payouts target awards	150.00%

STOCK-BASED COMPENSATION - Long-Term Cash Incentive Awards (Details)	2 Months Ended	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0.00%
Long-Term Cash Incentive Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility		60.00%
Risk-free interest rate		0.85%
Dividend yield		0.00%
Forecast period (in years)		2 years 6 months
Trading period excluded		2 months
Expected term		2 years 6 months

STOCK-BASED COMPENSATION - Predecessor Stock-Based Compensation Plan (Details)	Dec. 31, 2019 shares
Share-based Payment Arrangement [Abstract]
Aggregate number of common stock shares authorized for issuance (in shares)	7,275,000
Number of shares issued or reserved (in shares)	4,714,316
Number of shares available for future issuance (in shares)	2,560,684

STOCK-BASED COMPENSATION - Narrative - Stock Options (Details) - Stock Options - $ / shares	10 Months Ended	12 Months Ended
	Oct. 31, 2020	Dec. 31, 2021	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award term		7 years
Award vesting period		3 years
Vesting percentage		33.33%
Granted (in dollars per share)	$ 6.82		$ 23.88

EQUITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions				2 Months Ended	10 Months Ended	12 Months Ended
	Feb. 23, 2022	Nov. 11, 2021	May 26, 2020	Dec. 31, 2020	Oct. 31, 2020	Dec. 31, 2021	Feb. 22, 2022	Oct. 27, 2020
Schedule of Equity Method Investments [Line Items]
New common stock issued (in shares)					83,300,000	83,319,660		83,300,000
Stock repurchase program authorized amount						$ 250
Treasury stock, shares, acquired (in shares)						4,089,988
Treasury stock acquired, average price per share (in dollar per share)						$ 36.08
Repurchases of common stock						$ 148
Dividends declared, common stock (in dollars per share)		$ 0.17				$ 0.17
Total annual dividend anticipated, common stock (in dollars per share)		$ 0.68
Investment commitment in joint venture						$ 50
Shares reserved for future issuance (in shares)								4,384,182
Warrant exercise price (in dollars per share)								$ 36
Shares issued from warrant exercises (in shares)						51,377
Proceeds from warrants exercised						$ 2
Warrant outstanding (in shares)						4,296,005
Accumulated other comprehensive income (loss)				$ (8)	$ 0	$ 72
Common Stock
Schedule of Equity Method Investments [Line Items]
Shares issued from warrant exercises (in shares)						51,377,000
CRC shares issued to Ares-led investor group in a private placement (in shares)			0
Fresh Start Adjustments
Schedule of Equity Method Investments [Line Items]
Accumulated other comprehensive income (loss)					23
Postretirement Benefits
Schedule of Equity Method Investments [Line Items]
Benefit from plan amendment				$ 0	$ 0	$ 65
Joint Venture With Benefit Street Partners
Schedule of Equity Method Investments [Line Items]
Investment commitment in joint venture						$ 7
Subsequent Event
Schedule of Equity Method Investments [Line Items]
Stock repurchase program authorized amount							$ 350
Dividends declared, common stock (in dollars per share)	$ 0.17
Subsequent Event \| Minimum
Schedule of Equity Method Investments [Line Items]
Stock repurchase program authorized amount	$ 100
Subsequent Event \| Maximum
Schedule of Equity Method Investments [Line Items]
Stock repurchase program authorized amount	$ 350

EQUITY - Common Stock Outstanding (Details)	12 Months Ended
EQUITY - Common Stock Outstanding (Details)	Dec. 31, 2021 shares
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at the beginning of the year (in shares)	83,319,660
Shares issued from warrant exercises (in shares)	51,377
Balance at the end of the year (in shares)	79,299,222
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at the beginning of the year (in shares)	83,319,660,000
Shares issued from warrant exercises (in shares)	51,377,000
Shares issued for stock-based compensation arrangements (in shares)	18,173,000
Shares repurchased (in shares)	(4,089,988,000)
Balance at the end of the year (in shares)	79,299,222,000

EARNINGS PER SHARE - Calculation of EPS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	2 Months Ended	10 Months Ended	12 Months Ended
	Dec. 31, 2020	Oct. 31, 2020	Dec. 31, 2021	Dec. 31, 2019
Numerator for Basic and Diluted EPS
Net income (loss)	$ (125)	$ 1,996	$ 625	$ 99
Net (income) loss attributable to noncontrolling interests	2	(107)	(13)	(127)
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK	(123)	1,889	612	(28)
Less: Net income allocated to participating securities	0	(22)	0	0
Modification of noncontrolling interest	0	138	0	0
Net income (loss) available to common stockholders - basic	(123)	2,005	612	(28)
Net income (loss) available to common stockholders - diluted	$ (123)	$ 2,005	$ 612	$ (28)
Denominator for Basic EPS
Weighted-average common shares outstanding — basic (in shares)	83.3	49.4	82.0	49.0
Weighted-average common shares outstanding — diluted (in shares)	83.3	49.6	83.0	49.0
EPS
Basic (in dollars per share)	$ (1.48)	$ 40.59	$ 7.46	$ (0.57)
Diluted (in dollars per share)	$ (1.48)	$ 40.42	$ 7.37	$ (0.57)
Restricted Stock Units
Potential dilutive common shares:
Incremental common shares attributable to dilutive effect of share-based payment arrangements (in shares)	0.0	0.2	0.5	0.0
Performance Stock Units
Potential dilutive common shares:
Incremental common shares attributable to dilutive effect of share-based payment arrangements (in shares)	0.0	0.0	0.5	0.0

EARNINGS PER SHARE - Potentially Dilutive Common Shares (Details) - shares	2 Months Ended	10 Months Ended	12 Months Ended
	Dec. 31, 2020	Oct. 31, 2020	Dec. 31, 2021	Dec. 31, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total antidilutive shares	4,400,000	4,000,000.0	4,400,000	3,100,000
Shares issuable upon exercise of warrants which were issued at emergence from bankruptcy
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total antidilutive shares	4,400,000	1,300,000	4,400,000	600,000
Shares issuable upon settlement of RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total antidilutive shares	0	200,000	0	600,000
Shares issuable upon settlement of PSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total antidilutive shares	0	800,000	0	500,000
Shares issuable upon exercise of stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total antidilutive shares	0	1,700,000	0	1,400,000

EARNINGS PER SHARE - Narrative (Details)	12 Months Ended
EARNINGS PER SHARE - Narrative (Details)	Dec. 31, 2021 day
Earnings Per Share [Abstract]
Number of trading days	60

PENSION AND POSTRETIREMENT BENEFIT PLANS - Defined Contribution Plans (Details) - USD ($) $ in Millions	2 Months Ended	10 Months Ended	12 Months Ended
	Dec. 31, 2020	Oct. 31, 2020	Dec. 31, 2021	Dec. 31, 2019
Retirement Benefits [Abstract]
Other long-term liabilities for the supplemental retirement plan	$ 35		$ 30
Expenses under provisions of defined contribution and supplemental plans	$ 4	$ 28	$ 19	$ 36

PENSION AND POSTRETIREMENT BENEFIT PLANS - Defined Benefit Plan (Details)	Dec. 31, 2021 employee
Pension Benefits
Postretirement and Other Benefit Plans Disclosure
Number of employees accruing benefits under defined benefit plans	60

PENSION AND POSTRETIREMENT BENEFIT PLANS - Postretirement Benefit Plans (Details) $ in Millions	12 Months Ended
	Dec. 31, 2021 USD ($)
Retirement Benefits [Abstract]
Decrease in obligation, pension and other postretirement benefits	$ 65

PENSION AND POSTRETIREMENT BENEFIT PLANS - Obligations and Funded Status of our Defined Benefit Plans (Details) - USD ($) $ in Millions	2 Months Ended	10 Months Ended	12 Months Ended
	Dec. 31, 2020	Oct. 31, 2020	Dec. 31, 2021	Dec. 31, 2019
Amounts recognized on the balance sheet
Other long-term liabilities	$ (140)		$ (59)
Pension Benefits
Amounts recognized on the balance sheet
Accrued liabilities	0		0
Other long-term liabilities	(15)		(15)
Amounts recognized in the consolidated balance sheets, total	(15)		(15)
Amounts recognized in accumulated other comprehensive income (loss)	(1)		(2)
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Benefit obligation—beginning of year	46	$ 45	47
Service cost—benefits earned during the period	0	1	1	$ 1
Interest cost on projected benefit obligation	0	1	1	2
Actuarial loss	3	1	2
Benefits paid	(2)	(2)	(7)
Benefit obligation—beginning of year	47	46	44	45
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Fair value of plan assets—beginning of year	26	27	32
Actual return on plan assets	2	1	2
Employer contributions	6	0	2
Benefits paid	(2)	(2)	(7)
Fair value of plan assets—end of year	32	26	29	27
Net benefit liability (unfunded status)	(15)	(20)	(15)
Postretirement Benefits
Amounts recognized on the balance sheet
Accrued liabilities	(4)		(4)
Other long-term liabilities	(125)		(44)
Amounts recognized in the consolidated balance sheets, total	(129)		(48)
Amounts recognized in accumulated other comprehensive income (loss)	(7)		74
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Benefit obligation—beginning of year	122	116	129
Service cost—benefits earned during the period	1	4	4	4
Interest cost on projected benefit obligation	0	3	3	4
Actuarial loss	7	2	(17)
Benefits paid	(1)	(3)	(5)
Plan amendment	0	0	(65)
Benefit obligation—beginning of year	129	122	49	116
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Fair value of plan assets—beginning of year	0	0	0
Employer contributions	1	3	6
Benefits paid	(1)	(3)	(5)
Fair value of plan assets—end of year	0	0	1	$ 0
Net benefit liability (unfunded status)	$ (129)	$ (122)	$ (48)

PENSION AND POSTRETIREMENT BENEFIT PLANS - Obligations and Asset Fair Values (Details) - Pension Benefits - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Pension plans with accumulated benefit obligation in excess of plan assets
Projected benefit obligation	$ 44	$ 47
Accumulated benefit obligation	39	43
Fair value of plan assets	$ 29	$ 32

PENSION AND POSTRETIREMENT BENEFIT PLANS - Cost (Details) - USD ($) $ in Millions	2 Months Ended	10 Months Ended	12 Months Ended
	Dec. 31, 2020	Oct. 31, 2020	Dec. 31, 2021	Dec. 31, 2019
Pension Benefits
Net periodic benefit costs
Service cost—benefits earned during the period	$ 0	$ 1	$ 1	$ 1
Interest cost on projected benefit obligation	0	1	1	2
Expected return on plan assets	0	(1)	(1)	(2)
Amortization of net actuarial loss	0	1	0	1
Settlement costs	0	1	0	9
Net periodic benefit costs	0	3	1	11
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract]
Net actuarial loss	(1)	(1)	(1)	(6)
Settlement costs	0	1	0	9
Amortization of net actuarial gain/loss	0	1	0	1
Total recognized in other comprehensive (loss) income	(1)	1	(1)	4
Postretirement Benefits
Net periodic benefit costs
Service cost—benefits earned during the period	1	4	4	4
Interest cost on projected benefit obligation	0	3	3	4
Cost of special termination benefits	0	0	0	6
Amortization of prior service cost credit	0	0	(1)	0
Settlement costs	0	1	0	0
Net periodic benefit costs	1	8	6	14
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract]
Net actuarial loss	(7)	(2)	17	(19)
Net prior service credit	0	0	65	0
Settlement costs	0	1	0	(2)
Amortization of net actuarial gain/loss	0	0	(1)	0
Total recognized in other comprehensive (loss) income	$ (7)	$ (1)	$ 81	$ (21)

PENSION AND POSTRETIREMENT BENEFIT PLANS - Assumptions (Details)	2 Months Ended	3 Months Ended	9 Months Ended	10 Months Ended	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2021	Sep. 30, 2021	Oct. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Pension Benefits
Benefit Obligation Assumptions
Discount rate	2.42%	2.79%		2.70%	2.79%	2.42%
Rate of compensation increase	4.00%	4.00%		4.00%	4.00%	4.00%
Net Periodic Benefit Cost Assumptions
Discount rate	2.70%			3.16%	2.42%
Assumed long-term rate of return on assets	5.42%			5.42%	6.25%
Rate of compensation increase	4.00%			4.00%	4.00%
Postretirement Benefits
Benefit Obligation Assumptions
Discount rate	2.92%	2.75%	2.69%	3.11%	2.75%	2.92%
Net Periodic Benefit Cost Assumptions
Discount rate	3.11%	2.69%	2.92%	3.48%
Assumed health care cost trend rates
U.S. Consumer Price Index (CPI) increase					2.57%	2.06%
Postretirement Benefits \| Union employees
Assumed health care cost trend rates
Projected healthcare cost rate in 2028					4.50%
Projected ultimate health care cost trend rates after 2028					4.50%
Postretirement Benefits \| Union employees \| Minimum
Assumed health care cost trend rates
Projected healthcare cost rate in 2020		6.25%			6.25%

PENSION AND POSTRETIREMENT BENEFIT PLANS - Plan Assets (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020	Oct. 31, 2020	Dec. 31, 2019
Equity Securities
Defined Benefit Plan Disclosure
Target allocation of plan assets	65.00%	65.00%
Debt Securities
Defined Benefit Plan Disclosure
Target allocation of plan assets	35.00%	35.00%
Pension Benefits
Asset Class:
Cash equivalents	$ 5	$ 6
Fair value of plan assets	29	32	$ 26	$ 27
Pension Benefits \| Level 1
Asset Class:
Cash equivalents	5	6
Pension Benefits \| Level 2
Asset Class:
Cash equivalents	0	0
Pension Benefits \| Level 3
Asset Class:
Cash equivalents	0	0
Pension Benefits \| Pension Plan Assets - Gross
Asset Class:
Fair value of plan assets	29	32
Pension Benefits \| Pension Plan Assets - Gross \| Level 1
Asset Class:
Fair value of plan assets	17	19
Pension Benefits \| Pension Plan Assets - Gross \| Level 2
Asset Class:
Fair value of plan assets	7	7
Pension Benefits \| Pension Plan Assets - Gross \| Level 3
Asset Class:
Fair value of plan assets	5	6
Pension Benefits \| Fixed income
Asset Class:
Fair value of plan assets	2	2
Pension Benefits \| Fixed income \| Level 1
Asset Class:
Fair value of plan assets	0	0
Pension Benefits \| Fixed income \| Level 2
Asset Class:
Fair value of plan assets	2	2
Pension Benefits \| Fixed income \| Level 3
Asset Class:
Fair value of plan assets	0	0
Pension Benefits \| U.S. equity
Asset Class:
Fair value of plan assets	3	3
Pension Benefits \| U.S. equity \| Level 1
Asset Class:
Fair value of plan assets	0	0
Pension Benefits \| U.S. equity \| Level 2
Asset Class:
Fair value of plan assets	3	3
Pension Benefits \| U.S. equity \| Level 3
Asset Class:
Fair value of plan assets	0	0
Pension Benefits \| International equity
Asset Class:
Fair value of plan assets	2	2
Pension Benefits \| International equity \| Level 1
Asset Class:
Fair value of plan assets	0	0
Pension Benefits \| International equity \| Level 2
Asset Class:
Fair value of plan assets	2	2
Pension Benefits \| International equity \| Level 3
Asset Class:
Fair value of plan assets	0	0
Pension Benefits \| Bond funds
Asset Class:
Fair value of plan assets	5	5
Pension Benefits \| Bond funds \| Level 1
Asset Class:
Fair value of plan assets	5	5
Pension Benefits \| Bond funds \| Level 2
Asset Class:
Fair value of plan assets	0	0
Pension Benefits \| Bond funds \| Level 3
Asset Class:
Fair value of plan assets	0	0
Pension Benefits \| Value funds
Asset Class:
Fair value of plan assets	2	2
Pension Benefits \| Value funds \| Level 1
Asset Class:
Fair value of plan assets	2	2
Pension Benefits \| Value funds \| Level 2
Asset Class:
Fair value of plan assets	0	0
Pension Benefits \| Value funds \| Level 3
Asset Class:
Fair value of plan assets	0	0
Pension Benefits \| Growth funds
Asset Class:
Fair value of plan assets	5	6
Pension Benefits \| Growth funds \| Level 1
Asset Class:
Fair value of plan assets	5	6
Pension Benefits \| Growth funds \| Level 2
Asset Class:
Fair value of plan assets	0	0
Pension Benefits \| Growth funds \| Level 3
Asset Class:
Fair value of plan assets	0	0
Pension Benefits \| Guaranteed deposit account
Asset Class:
Fair value of plan assets	5	6
Pension Benefits \| Guaranteed deposit account \| Level 1
Asset Class:
Fair value of plan assets	0	0
Pension Benefits \| Guaranteed deposit account \| Level 2
Asset Class:
Fair value of plan assets	0	0
Pension Benefits \| Guaranteed deposit account \| Level 3
Asset Class:
Fair value of plan assets	5	6
Postretirement Benefits
Asset Class:
Fair value of plan assets	1	$ 0	$ 0	$ 0
Postretirement Benefits \| Mutual funds
Asset Class:
Fair value of plan assets	$ 1

PENSION AND POSTRETIREMENT BENEFIT PLANS - Benefit Payments (Details) $ in Millions	Dec. 31, 2021 USD ($)
Pension Benefits
Defined Benefit Plan Disclosure
Expected contribution in 2022	$ 3
Estimated future undiscounted benefit payments
2022	9
2023	3
2024	3
2025	3
2026	3
2027 to 2031 Payouts	10
Postretirement Benefits
Defined Benefit Plan Disclosure
Expected contribution in 2022	5
Estimated future undiscounted benefit payments
2022	5
2023	5
2024	4
2025	4
2026	4
2027 to 2031 Payouts	$ 14

REVENUE RECOGNITION - Commodity Sales Contracts (Details)	12 Months Ended
	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Typical term of payment following invoicing	30 days

CHAPTER 11 PROCEEDINGS - Commencement of Bankruptcy Proceedings (Details) - USD ($) $ in Millions		2 Months Ended	10 Months Ended	12 Months Ended
	Oct. 27, 2020	Dec. 31, 2020	Oct. 31, 2020	Dec. 31, 2021
Debt Instrument [Line Items]
Gain on settlement of liabilities subject to compromise		$ 0	$ 4,022	$ 0
Second Lien Notes \| 8% Notes Due 2022
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage	8.00%
Senior Notes (Unsecured) \| 5.5% Senior Notes due 2021
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage	5.50%
Senior Notes (Unsecured) \| 6% Senior Notes due 2024
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage	6.00%
2017 Credit Agreement
Debt Instrument [Line Items]
Gain on settlement of liabilities subject to compromise	$ 4,000

CHAPTER 11 PROCEEDINGS - Debtor-in-Possession Credit Agreements (Details) - USD ($) $ in Millions	Oct. 27, 2020	Oct. 31, 2020	Jul. 23, 2020
Debt Instrument [Line Items]
Debtor-in-possession financing		$ 0
Subscription Rights
Debt Instrument [Line Items]
Proceeds from common stock issued	$ 450
Line of Credit \| Subscription Rights
Debt Instrument [Line Items]
Proceeds from common stock issued	$ 450
Line of Credit \| Senior DIP Facility
Debt Instrument [Line Items]
Debtor-in-possession financing			$ 483
Upfront fees on commitment	1.00%
Commitment fees	0.50%
Line of Credit \| Senior DIP Facility \| LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	4.50%
Line of Credit \| Senior DIP Facility \| Alternative Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate	3.50%
Line of Credit \| Senior DIP Facility \| Revolving Credit Facility
Debt Instrument [Line Items]
Debtor-in-possession financing			250
Line of Credit \| Senior DIP Facility \| Letters of Credit
Debt Instrument [Line Items]
Debtor-in-possession financing			150
Line of Credit \| Senior DIP Facility \| Term Loan
Debt Instrument [Line Items]
Debtor-in-possession financing		$ 83	83
Line of Credit \| Senior DIP Facility \| Additional Letters Of Credit
Debt Instrument [Line Items]
Debtor-in-possession financing			35
Line of Credit \| Junior DIP Facility
Debt Instrument [Line Items]
Debtor-in-possession financing			$ 650
Upfront fees on commitment	1.00%
Line of Credit \| Junior DIP Facility \| LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	9.00%
Line of Credit \| Junior DIP Facility \| Alternative Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate	8.00%
Line of Credit \| Senior DIP And Junior DIP Credit Agreements
Debt Instrument [Line Items]
Percentage of debt hedged by price risk derivatives	25.00%
Line of Credit \| Second Lien Term Loan \| Lien Notes
Debt Instrument [Line Items]
Proceeds from debt	$ 200

CHAPTER 11 PROCEEDINGS - Ares JV Settlement Agreement and Noncontrolling Interest (Details) $ in Millions			1 Months Ended
	Oct. 31, 2020 USD ($)	Oct. 27, 2020 USD ($)	Feb. 28, 2018 MW MMcf	Dec. 31, 2020 USD ($)
Debt Instrument [Line Items]
Redeemable noncontrolling interest, equity, preferred, redemption value				$ 138.0
EHP Notes
Debt Instrument [Line Items]
Proceeds from common stock issued	$ 17.3	$ 17.3
Cash acquired	$ 2.0	$ 2.0
Percentage of common acquired		20.80%
EHP Notes \| Senior Notes (Unsecured)
Debt Instrument [Line Items]
Debt instrument face amount		$ 300.0
Ares JV \| Class A common interest
Debt Instrument [Line Items]
Percentage of common interest held by CRC			50.00%
Percentage of common interest held by ECR			50.00%
Ares JV \| Class C common interest
Debt Instrument [Line Items]
Percentage of common interest held by CRC			95.25%
Percentage of common interest held by ECR			4.75%
Ares JV \| Class B preferred interest
Debt Instrument [Line Items]
Percentage of common interest held by ECR			100.00%
Natural gas power and Gas processing plants \| Ares JV
Debt Instrument [Line Items]
Power plant capacity \| MW			550
Gas processing plant capacity \| MMcf			200

CHAPTER 11 PROCEEDINGS - Changes in Noncontrolling Interests (Details) - USD ($) $ in Millions	2 Months Ended	10 Months Ended	12 Months Ended
	Dec. 31, 2020	Oct. 31, 2020	Dec. 31, 2021	Dec. 31, 2019
Stockholders' Equity
Beginning balance	$ 1,345	$ (296)	$ 1,182	$ (247)
Net (loss) income attributable to noncontrolling interests	(2)	13	13	10
Contribution from noncontrolling interest holder, net				49
Ending balance	1,182	1,345	1,688	(296)
Equity Attributable to Noncontrolling Interests
Stockholders' Equity
Beginning balance	76	93	44	114
Net (loss) income attributable to noncontrolling interests		13		10
Contribution from noncontrolling interest holder, net				49
Distributions to noncontrolling interest holders		(37)		(80)
Modification of noncontrolling interest		0
Acquisition of noncontrolling interest		0
Fair value adjustment of noncontrolling interest in fresh start accounting		7
Ending balance	44	76	$ 0	93
Equity Attributable to Noncontrolling Interests \| Ares JV
Stockholders' Equity
Beginning balance	0	0		15
Net (loss) income attributable to noncontrolling interests		3		(7)
Contribution from noncontrolling interest holder, net				0
Distributions to noncontrolling interest holders		(3)		(8)
Modification of noncontrolling interest		0
Acquisition of noncontrolling interest		0
Fair value adjustment of noncontrolling interest in fresh start accounting		0
Ending balance		0		0
Equity Attributable to Noncontrolling Interests \| BSP JV
Stockholders' Equity
Beginning balance	$ 76	93		99
Net (loss) income attributable to noncontrolling interests		10		17
Contribution from noncontrolling interest holder, net				49
Distributions to noncontrolling interest holders		(34)		(72)
Modification of noncontrolling interest		0
Acquisition of noncontrolling interest		0
Fair value adjustment of noncontrolling interest in fresh start accounting		7
Ending balance		$ 76		$ 93

CHAPTER 11 PROCEEDINGS - Mezzanine Equity (Details) - USD ($) $ in Millions	2 Months Ended	10 Months Ended	12 Months Ended
	Dec. 31, 2020	Oct. 31, 2020	Dec. 31, 2021	Dec. 31, 2019
Mezzanine Equity - Redeemable Noncontrolling Interest - Ares
Beginning balance	$ 0
Net (loss) income attributable to noncontrolling interests	0	$ 94	$ 0	$ 117
Distributions to noncontrolling interest holders	(30)	(37)	$ (50)	(80)
Ending balance		0
Mezzanine Equity - Redeemable Noncontrolling Interest
Mezzanine Equity - Redeemable Noncontrolling Interest - Ares
Beginning balance	0	802		756
Net (loss) income attributable to noncontrolling interests		94		117
Contributions from noncontrolling interest holders, net				0
Distributions to noncontrolling interest holders		(67)		(71)
Modification of noncontrolling interest		(138)
Acquisition of noncontrolling interest		(691)
Fair value adjustment of noncontrolling interest in fresh start accounting		0
Ending balance		0		802
Mezzanine Equity - Redeemable Noncontrolling Interest \| Ares JV
Mezzanine Equity - Redeemable Noncontrolling Interest - Ares
Beginning balance	$ 0	802		756
Net (loss) income attributable to noncontrolling interests		94		117
Contributions from noncontrolling interest holders, net				0
Distributions to noncontrolling interest holders		(67)		(71)
Modification of noncontrolling interest		(138)
Acquisition of noncontrolling interest		(691)
Fair value adjustment of noncontrolling interest in fresh start accounting		0
Ending balance		$ 0		$ 802

CHAPTER 11 PROCEEDINGS - Rights Offering and Backstop (Details) - USD ($) $ / shares in Units, $ in Millions	Oct. 27, 2020	Dec. 31, 2021	Oct. 31, 2020	Jul. 15, 2020
Debt Instrument [Line Items]
New common stock issued (in shares)	83,300,000	83,319,660	83,300,000
Subscription Rights
Debt Instrument [Line Items]
Proceeds from common stock issued	$ 450
Common stock price per share (in dollars per share)	$ 13
New common stock issued (in shares)	34,600,000
Subscription Right, Backstop Commitment Agreement
Debt Instrument [Line Items]
New common stock issued (in shares)	3,500,000
Subscription Right, Backstop Commitment Agreement \| Backstop Commitment Agreement
Debt Instrument [Line Items]
New common stock issued (in shares)				3,500,000
Rights Offering \| Backstop Commitment Agreement
Debt Instrument [Line Items]
New common stock issued (in shares)				38,100,000

CHAPTER 11 PROCEEDINGS - Emergence (Details) $ in Millions	Oct. 31, 2020 USD ($) shares	Oct. 27, 2020 USD ($) director shares	Dec. 31, 2021 director shares
Debt Instrument [Line Items]
New common stock issued (in shares)	83,300,000	83,300,000	83,319,660
Shares reserved for future issuance (in shares)		4,384,182
Shares reserved for issuance of incentive plan		9,300,000
Number of existing directors remained \| director		1
Number of new directors \| director		7
Number of board of directors \| director			9
Subscription Rights
Debt Instrument [Line Items]
New common stock issued (in shares)		34,600,000
Exchange of issuance of common stock \| $		$ 446
Payments for issuance costs net of fee \| $		$ 4
Subscription Right, Backstop Commitment Agreement
Debt Instrument [Line Items]
New common stock issued (in shares)		3,500,000
2017 Credit Agreement
Debt Instrument [Line Items]
New common stock issued (in shares)		22,700,000
2016 Credit Agreement, Second Lien Notes, 2021 Notes And 2024 Notes
Debt Instrument [Line Items]
New common stock issued (in shares)		4,400,000
EHP Notes
Debt Instrument [Line Items]
Cash acquired \| $	$ 2	$ 2
Junior DIP Facility
Debt Instrument [Line Items]
New common stock issued (in shares)		821,000
Ares JV
Debt Instrument [Line Items]
New common stock issued (in shares)		17,300,000

FRESH START ACCOUNTING - Narrative (Details) $ in Billions	2 Months Ended
FRESH START ACCOUNTING - Narrative (Details) $ in Billions	Dec. 31, 2020 USD ($)
Debt Instrument [Line Items]
Percentage of voting shares received by existing holders	50.00%
Enterprise value of successor company approved by bankruptcy court	$ 2.5
Dividend yield	0.00%
Minimum
Debt Instrument [Line Items]
Enterprise value of successor company approved by bankruptcy court	$ 2.2
Incremental borrowing rate	4.00%
Maximum
Debt Instrument [Line Items]
Enterprise value of successor company approved by bankruptcy court	$ 2.8
Incremental borrowing rate	5.00%

FRESH START ACCOUNTING - Reconciliation of Enterprise Value to Estimated Fair Value (Details) - USD ($) $ in Millions	Oct. 31, 2020	Oct. 27, 2020
Reorganizations [Abstract]
Fair value of total equity upon emergence	$ 1,345
Fair value of long-term debt	725
Fair value of asset retirement obligations	593
Less: Unrestricted cash	(163)
Enterprise value	2,500
Add: Unrestricted cash	163
Add: Current liabilities	396
Add: Other long-term liabilities	231
Less: Other	(2)
Reorganization value	3,288
Cash used temporarily	$ 118	$ 118
Current liabilities		50
Other long-term Liabilities		$ 543

FRESH START ACCOUNTING - Schedule of Fresh Start Adjustments to the Balance Sheet (Details) - USD ($) $ in Millions			2 Months Ended	10 Months Ended	12 Months Ended
	Oct. 31, 2020	Oct. 27, 2020	Dec. 31, 2020	Oct. 31, 2020	Dec. 31, 2021	Jul. 23, 2020	Dec. 31, 2019	Dec. 31, 2018
CURRENT ASSETS
Cash	$ 203.0		$ 28.0	$ 203.0	$ 305.0
Trade receivables	149.0			149.0
Inventories	61.0		61.0	61.0	60.0
Other current assets	102.0		63.0	102.0	121.0
Total current assets	515.0		329.0	515.0	753.0
PROPERTY, PLANT AND EQUIPMENT	2,682.0		2,689.0	2,682.0	2,845.0
Accumulated depreciation, depletion and amortization	0.0		(34.0)	0.0	(246.0)
Total property, plant and equipment, net	2,682.0		2,655.0	2,682.0	2,599.0
OTHER ASSETS	91.0			91.0
TOTAL ASSETS	3,288.0		3,074.0	3,288.0	3,846.0
CURRENT LIABILITIES
Debtor-in-possession financing	0.0			0.0
Accounts payable	215.0		212.0	215.0	266.0
Accrued liabilities	231.0		211.0	231.0	297.0
Total current liabilities	446.0		473.0	446.0	854.0
Long-term debt, net	723.0		597.0	723.0	589.0
OTHER LONG-TERM LIABILITIES	774.0			774.0
LIABILITIES SUBJECT TO COMPROMISE	0.0			0.0
MEZZANINE EQUITY
Redeemable noncontrolling interests	0.0			0.0
STOCKHOLDERS' EQUITY
Preferred stock	0.0		0.0	0.0	0.0
Par value	1.0		1.0	1.0	1.0
Additional paid-in capital	1,253.0		1,268.0	1,253.0	1,288.0
Warrants	15.0			15.0
Retained earnings (accumulated deficit)	0.0		(123.0)	0.0	475.0
Accumulated other comprehensive income (loss)	0.0		(8.0)	0.0	72.0
Total equity attributable to common stock	1,269.0		1,138.0	1,269.0	1,688.0
Equity attributable to noncontrolling interests	76.0		44.0	76.0	0.0
Total stockholders' equity	1,345.0		1,182.0	1,345.0	1,688.0		$ (296.0)	$ (247.0)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	3,288.0		3,074.0	3,288.0	3,846.0
Amount reserved for legal and professional fees	18.0			18.0
Debtor-in-possession financing, borrowings outstanding	733.0			733.0
Debtor-in-possession financing	0.0			0.0
Legal, professional and other, net	15.0		3.0	$ 43.0	$ 6.0
Payment of accrued interest and bank fees	$ 1.0
New common stock issued (in shares)	83,300,000	83,300,000		83,300,000	83,319,660
Asset retirement obligations	$ 50.0		50.0	$ 50.0	$ 51.0
Asset retirement obligations	543.0		547.0	543.0	438.0
Lease liability			$ 35.0		$ 37.0
EHP Notes
STOCKHOLDERS' EQUITY
Proceeds from common stock issued	17.3	$ 17.3
Cash acquired	2.0	$ 2.0
Revolving Credit Facility \| Line of Credit
STOCKHOLDERS' EQUITY
Restricted cash	158.0			158.0
Revolving Credit Facility \| Letters of Credit
STOCKHOLDERS' EQUITY
Proceeds from long-term lines of credit	118.0
Revolving Credit Facility \| Letters of Credit \| J V Partner
STOCKHOLDERS' EQUITY
Proceeds from long-term lines of credit	22.0
Line of Credit \| Senior DIP Facility
CURRENT LIABILITIES
Debtor-in-possession financing						$ 483.0
STOCKHOLDERS' EQUITY
Debtor-in-possession financing						483.0
Line of Credit \| Letters of Credit \| Senior DIP Facility
CURRENT LIABILITIES
Debtor-in-possession financing						150.0
STOCKHOLDERS' EQUITY
Debtor-in-possession financing						150.0
Line of Credit \| Term Loan \| Senior DIP Facility
CURRENT LIABILITIES
Debtor-in-possession financing	83.0			83.0		83.0
STOCKHOLDERS' EQUITY
Debtor-in-possession financing	83.0			83.0		$ 83.0
Junior DIP Facility \| Line of Credit
STOCKHOLDERS' EQUITY
Short-term debt borrowing	650.0			650.0
Predecessor
CURRENT ASSETS
Cash	106.0			106.0
Trade receivables	149.0			149.0
Inventories	61.0			61.0
Other current assets	104.0			104.0
Total current assets	420.0			420.0
PROPERTY, PLANT AND EQUIPMENT	22,918.0			22,918.0
Accumulated depreciation, depletion and amortization	(18,588.0)			(18,588.0)
Total property, plant and equipment, net	4,330.0			4,330.0
OTHER ASSETS	77.0			77.0
TOTAL ASSETS	4,827.0			4,827.0
CURRENT LIABILITIES
Debtor-in-possession financing	733.0			733.0
Accounts payable	215.0			215.0
Accrued liabilities	233.0			233.0
Total current liabilities	1,181.0			1,181.0
Long-term debt, net	0.0			0.0
OTHER LONG-TERM LIABILITIES	725.0			725.0
LIABILITIES SUBJECT TO COMPROMISE	4,516.0			4,516.0
MEZZANINE EQUITY
Redeemable noncontrolling interests	691.0			691.0
STOCKHOLDERS' EQUITY
Preferred stock	0.0			0.0
Par value	0.0			0.0
Additional paid-in capital	5,149.0			5,149.0
Retained earnings (accumulated deficit)	(7,481.0)			(7,481.0)
Accumulated other comprehensive income (loss)	(23.0)			(23.0)
Total equity attributable to common stock	(2,355.0)			(2,355.0)
Equity attributable to noncontrolling interests	69.0			69.0
Total stockholders' equity	(2,286.0)			(2,286.0)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	4,827.0			4,827.0
Debtor-in-possession financing	733.0			733.0
Reorganization Adjustments
CURRENT ASSETS
Cash	97.0			97.0
Other current assets	(2.0)			(2.0)
Total current assets	95.0			95.0
OTHER ASSETS	18.0			18.0
TOTAL ASSETS	113.0			113.0
CURRENT LIABILITIES
Debtor-in-possession financing	(733.0)			(733.0)
Accrued liabilities	(16.0)			(16.0)
Total current liabilities	(749.0)			(749.0)
Long-term debt, net	723.0			723.0
LIABILITIES SUBJECT TO COMPROMISE	(4,516.0)			(4,516.0)
MEZZANINE EQUITY
Redeemable noncontrolling interests	(691.0)			(691.0)
STOCKHOLDERS' EQUITY
Par value	1.0			1.0
Additional paid-in capital	(5,149.0)			(5,149.0)
Additional paid-in capital	1,253.0			1,253.0
Warrants	15.0			15.0
Retained earnings (accumulated deficit)	9,226.0			9,226.0
Total equity attributable to common stock	5,346.0			5,346.0
Total stockholders' equity	5,346.0			5,346.0
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	113.0			113.0
Debtor-in-possession financing	(733.0)			(733.0)
Fresh Start Adjustments
CURRENT ASSETS
PROPERTY, PLANT AND EQUIPMENT	(20,236.0)			(20,236.0)
Accumulated depreciation, depletion and amortization	18,588.0			18,588.0
Total property, plant and equipment, net	(1,648.0)			(1,648.0)
OTHER ASSETS	(4.0)			(4.0)
TOTAL ASSETS	(1,652.0)			(1,652.0)
CURRENT LIABILITIES
Accrued liabilities	14.0			14.0
Total current liabilities	14.0			14.0
OTHER LONG-TERM LIABILITIES	49.0			49.0
STOCKHOLDERS' EQUITY
Retained earnings (accumulated deficit)	(1,745.0)			(1,745.0)
Accumulated other comprehensive income (loss)	23.0			23.0
Total equity attributable to common stock	(1,722.0)			(1,722.0)
Equity attributable to noncontrolling interests	7.0			7.0
Total stockholders' equity	(1,715.0)			(1,715.0)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	(1,652.0)			(1,652.0)
Asset retirement obligations	20.0			20.0
Decrease in liability for self-insured medical	5.0			5.0
Asset retirement obligations	36.0			36.0
Environmental and other abandonment obligations	8.0			8.0
Lease liability	$ 5.0			$ 5.0

FRESH START ACCOUNTING - Schedule of Net Change in Cash (Details) - USD ($) $ in Millions		2 Months Ended	10 Months Ended	12 Months Ended
	Oct. 31, 2020	Dec. 31, 2020	Oct. 31, 2020	Dec. 31, 2021	Dec. 31, 2019
Reorganization, Chapter 11 [Line Items]
Proceeds from Revolving Credit Facility	$ 225
Proceeds from Subscription Rights and Backstop Commitment, net	446
Proceeds from Second Lien Term Loan	200
Repayments of debtor-in-possession facilities	(733)	$ 0	$ (802)	$ 0	$ 0
Payment of legal, professional and other fees	(15)	(3)	(43)	(6)
Debtor-in-possession financing costs		$ 0	$ (25)	$ 0
Acquisition of noncontrolling interest as part of the Settlement Agreement	(2)
Distribution to noncontrolling interest holder	(3)
Payment of accrued interest and bank fees	(1)
Net change	97
Second Lien Term Loan
Reorganization, Chapter 11 [Line Items]
Debtor-in-possession financing costs	(2)
Revolving Credit Facility
Reorganization, Chapter 11 [Line Items]
Debtor-in-possession financing costs	$ (18)

FRESH START ACCOUNTING - Schedule of Long-Term Debt (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020	Oct. 31, 2020
Debt
Principal amount of debt	$ 600	$ 599	$ 725
Debt issuance costs	(11)	(2)	(2)
Long-term debt, net	589	597	723
Senior Notes (Unsecured)
Debt
Principal amount of debt	600	0
Second Lien Term Loan \| Lien Notes
Debt
Principal amount of debt	0	200	200
EHP Notes \| Senior Notes (Unsecured)
Debt
Principal amount of debt	0	300	300
Revolving Credit Facility \| Line of Credit
Debt
Principal amount of debt	$ 0	$ 99	$ 225

FRESH START ACCOUNTING - Liabilities Subject to Compromise (Details) $ in Millions	Oct. 31, 2020 USD ($)
Reorganization, Chapter 11 [Line Items]
Total liabilities subject to compromise	$ 0
Predecessor
Reorganization, Chapter 11 [Line Items]
Accrued interest on long-term debt	164
Total liabilities subject to compromise	4,516
2017 Credit Agreement
Reorganization, Chapter 11 [Line Items]
Liabilities subject to compromise gross	1,300
2016 Credit Agreement
Reorganization, Chapter 11 [Line Items]
Liabilities subject to compromise gross	1,000
Second Lien Notes
Reorganization, Chapter 11 [Line Items]
Liabilities subject to compromise gross	1,808
Senior Notes (Unsecured) \| 5.5% Senior Notes due 2021
Reorganization, Chapter 11 [Line Items]
Liabilities subject to compromise gross	100
Senior Notes (Unsecured) \| 6% Senior Notes due 2024
Reorganization, Chapter 11 [Line Items]
Liabilities subject to compromise gross	$ 144

FRESH START ACCOUNTING - Schedule Equity Attributable to Common Stock at Emergence (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020	Oct. 31, 2020
Reorganizations [Abstract]
Par value	$ 1	$ 1	$ 1
Additional paid-in capital	1,288	1,268	1,253
Warrants			15
Total equity attributable to common stock	$ 1,688	$ 1,138	$ 1,269

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
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+ Details

FRESH START ACCOUNTING - Property, Plant and Equipment (Details) $ in Millions	Oct. 31, 2020 USD ($)
Reorganization, Chapter 11 [Line Items]
Total PP&E	$ 2,682
Proved oil and natural gas properties
Reorganization, Chapter 11 [Line Items]
Total PP&E	2,409
Facilities and other
Reorganization, Chapter 11 [Line Items]
Total PP&E	$ 273

SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Millions						1 Months Ended		2 Months Ended	3 Months Ended	10 Months Ended	12 Months Ended
	Feb. 23, 2022	Feb. 22, 2022	Feb. 01, 2022	Nov. 11, 2021	Oct. 27, 2020	Feb. 25, 2022	Jan. 31, 2022	Dec. 31, 2020	Sep. 30, 2021	Oct. 31, 2020	Dec. 31, 2021	Dec. 31, 2019
Subsequent Event [Line Items]
Asset impairments								$ 0	$ 25	$ 1,736	$ 28	$ 0
Dividends declared, common stock (in dollars per share)				$ 0.17							$ 0.17
Stock repurchase program authorized amount											$ 250
Line of Credit \| Revolving Credit Facility
Subsequent Event [Line Items]
Line of credit facility, maximum borrowing capacity					$ 492
Line of current borrowing capacity					1,200						367
Line of Credit \| Letters of Credit
Subsequent Event [Line Items]
Line of credit facility, maximum borrowing capacity					$ 200
Letters of credit outstanding amount											$ 125
Alternative Base Rate \| Line of Credit \| Revolving Credit Facility
Subsequent Event [Line Items]
Interest rate floor					2.00%
Alternative Base Rate \| Line of Credit \| Revolving Credit Facility \| Minimum
Subsequent Event [Line Items]
Interest rate added to variable rate basis											2.00%
Alternative Base Rate \| Line of Credit \| Revolving Credit Facility \| Maximum
Subsequent Event [Line Items]
Interest rate added to variable rate basis											3.00%
Applicable margin on LIBOR loans \| Line of Credit \| Revolving Credit Facility
Subsequent Event [Line Items]
Interest rate floor					1.00%
Interest rate added to variable rate basis					1.00%
Applicable margin on LIBOR loans \| Line of Credit \| Revolving Credit Facility \| Minimum
Subsequent Event [Line Items]
Interest rate added to variable rate basis											3.00%
Applicable margin on LIBOR loans \| Line of Credit \| Revolving Credit Facility \| Maximum
Subsequent Event [Line Items]
Interest rate added to variable rate basis											4.00%
Federal Funds Rate \| Line of Credit \| Revolving Credit Facility
Subsequent Event [Line Items]
Interest rate added to variable rate basis					0.50%
ABR Applicable Margin \| Line of Credit \| Revolving Credit Facility \| Minimum
Subsequent Event [Line Items]
Interest rate added to variable rate basis					2.00%
ABR Applicable Margin \| Line of Credit \| Revolving Credit Facility \| Maximum
Subsequent Event [Line Items]
Interest rate added to variable rate basis					3.00%
Subsequent Event
Subsequent Event [Line Items]
Dividends declared, common stock (in dollars per share)	$ 0.17
Stock repurchase program, increase in authorized amount		$ 100
Stock repurchase program authorized amount		$ 350
Subsequent Event \| Minimum
Subsequent Event [Line Items]
Stock repurchase program authorized amount	$ 100
Subsequent Event \| Maximum
Subsequent Event [Line Items]
Stock repurchase program authorized amount	$ 350
Subsequent Event \| Line of Credit \| Revolving Credit Facility
Subsequent Event [Line Items]
Margin increase, additional increase each subsequent fiscal quarter						0.50%
Line of credit facility, maximum borrowing capacity						$ 552
Line of credit facility, increase in current borrowing capacity						60
Line of current borrowing capacity						$ 427
Subsequent Event \| Secured Overnight Financing Rate \| Line of Credit \| Revolving Credit Facility
Subsequent Event [Line Items]
Interest rate floor						1.00%
Subsequent Event \| Secured Overnight Financing Rate \| Line of Credit \| Revolving Credit Facility \| Minimum
Subsequent Event [Line Items]
Interest rate added to variable rate basis						3.00%
Subsequent Event \| Secured Overnight Financing Rate \| Line of Credit \| Revolving Credit Facility \| Maximum
Subsequent Event [Line Items]
Interest rate added to variable rate basis						4.00%
Subsequent Event \| Alternative Base Rate \| Line of Credit \| Revolving Credit Facility
Subsequent Event [Line Items]
Interest rate floor						2.00%
Subsequent Event \| Applicable margin on LIBOR loans \| Line of Credit \| Revolving Credit Facility
Subsequent Event [Line Items]
Interest rate added to variable rate basis						1.00%
Subsequent Event \| Federal Funds Rate \| Line of Credit \| Revolving Credit Facility
Subsequent Event [Line Items]
Interest rate added to variable rate basis						0.50%
Subsequent Event \| ABR Applicable Margin \| Line of Credit \| Revolving Credit Facility \| Minimum
Subsequent Event [Line Items]
Interest rate added to variable rate basis						2.00%
Subsequent Event \| ABR Applicable Margin \| Line of Credit \| Revolving Credit Facility \| Maximum
Subsequent Event [Line Items]
Interest rate added to variable rate basis						3.00%
Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Lost Hills, San Joaquin Basin \| Subsequent Event
Subsequent Event [Line Items]
Working interest acquired by MIRA			50.00%
Proceeds from sale of oil and gas			$ 55
Option retained to capture carbon emissions, percent			100.00%
Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Ventura Basin \| Subsequent Event
Subsequent Event [Line Items]
Proceeds from sale of oil and gas							$ 15

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions	2 Months Ended	10 Months Ended	12 Months Ended
	Dec. 31, 2020	Oct. 31, 2020	Dec. 31, 2021	Dec. 31, 2019
Deferred tax valuation allowance
VALUATION AND QUALIFYING ACCOUNTS
Balance at Beginning of Period	$ 511	$ 646	$ 549	$ 625
Charged (Credited) to Costs and Expenses	35	(571)	(526)	16
Charged (Credited) to Other Accounts	3	436	(23)	5
Deductions	0	0	0	0
Balance at End of Period	549	511	0	646
Other asset valuation allowance
VALUATION AND QUALIFYING ACCOUNTS
Balance at Beginning of Period	0	22	0	31
Charged (Credited) to Costs and Expenses	0	(22)	0	(9)
Charged (Credited) to Other Accounts	0	0	0	0
Deductions	0	0	0	0
Balance at End of Period	$ 0	$ 0	$ 0	$ 22