Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 29, 2016 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,016 | |
Amendment Flag | false | |
Entity Registrant Name | Marathon Oil Corp | |
Entity Central Index Key | 101,778 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Well Known Seasoned Issuer | Yes | |
Entity Common Stock Shares Outstanding | 847,258,512 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues and other income: | ||||
Sales and other operating revenues, including related party | $ 870 | $ 1,307 | $ 1,584 | $ 2,587 |
Marketing revenues | 89 | 183 | 147 | 387 |
Income from equity method investments | 37 | 26 | 51 | 62 |
Net gain (loss) on disposal of assets | 294 | 0 | 234 | 1 |
Other income | 12 | 15 | 16 | 26 |
Total revenues and other income | 1,302 | 1,531 | 2,032 | 3,063 |
Costs and expenses: | ||||
Production | 350 | 450 | 678 | 894 |
Marketing, including purchases from related parties | 88 | 182 | 146 | 387 |
Other operating | 95 | 81 | 204 | 188 |
Exploration | 189 | 111 | 213 | 201 |
Depreciation, depletion and amortization | 561 | 751 | 1,170 | 1,572 |
Impairments | 0 | 44 | 1 | 44 |
Taxes other than income | 39 | 78 | 87 | 145 |
General and administrative | 132 | 168 | 283 | 339 |
Total costs and expenses | 1,454 | 1,865 | 2,782 | 3,770 |
Income (loss) from operations | (152) | (334) | (750) | (707) |
Net interest and other | (86) | (58) | (171) | (105) |
Income (loss) before income taxes | (238) | (392) | (921) | (812) |
Provision (benefit) for income taxes | (68) | (6) | (344) | (150) |
Net income (loss) | $ (170) | $ (386) | $ (577) | $ (662) |
Net income (loss) per share: | ||||
Net income (loss), per basic share | $ (0.20) | $ (0.57) | $ (0.73) | $ (0.98) |
Net income (loss), per diluted share | (0.20) | (0.57) | (0.73) | (0.98) |
Dividends paid, per share | $ 0.05 | $ 0.21 | $ 0.10 | $ 0.42 |
Weighted average common shares outstanding, basic | 848 | 677 | 790 | 676 |
Weighted average common shares outstanding, diluted | 848 | 677 | 790 | 676 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (170) | $ (386) | $ (577) | $ (662) |
Postretirement and postemployment plans | ||||
Change in actuarial loss and other | 19 | 86 | (5) | 162 |
Income tax benefit (provision) on postretirement and postemployment plans | (7) | (30) | 2 | (57) |
Postretirement and postemployment plans, net of tax | 12 | 56 | (3) | 105 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | (2) | 0 | (2) | 0 |
Other comprehensive income (loss) | 10 | 56 | (5) | 105 |
Comprehensive income (loss) | $ (160) | $ (330) | $ (582) | $ (557) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 2,584 | $ 1,221 |
Receivables, less reserve of $4 and $4 | 822 | 912 |
Inventories | 272 | 313 |
Other current assets | 76 | 144 |
Total current assets | 3,754 | 2,590 |
Equity method investments | 944 | 1,003 |
Property, plant and equipment, less accumulated depreciation, depletion and amortization of $21,659 and $23,260 | 25,657 | 27,061 |
Goodwill | 115 | 115 |
Other noncurrent assets | 2,057 | 1,542 |
Total assets | 32,527 | 32,311 |
Current liabilities: | ||
Accounts payable | 953 | 1,313 |
Payroll and benefits payable | 114 | 133 |
Accrued taxes | 85 | 132 |
Other current liabilities | 229 | 150 |
Long-term debt due within one year | 1 | 1 |
Total current liabilities | 1,382 | 1,729 |
Long-term debt | 7,280 | 7,276 |
Deferred tax liabilities | 2,392 | 2,441 |
Defined benefit postretirement plan obligations | 409 | 403 |
Asset retirement obligations | 1,597 | 1,601 |
Deferred credit and other liabilities | 314 | 308 |
Total liabilities | 13,374 | 13,758 |
Commitments and contingencies | ||
Stockholders' Equity | ||
Preferred stock - no shares issued or outstanding (no par value, 26 million shares authorized) | 0 | 0 |
Common stock issued - 937 million and 770 million shares (par value $1 per share, 1.1 billion shares authorized) | 937 | 770 |
Common stock, securities exchangeable into common stock - no shares issued or outstanding (no par value, 29 million shares authorized) | 0 | 0 |
Common stock, held in treasury, at cost - 89 million and 93 million shares | (3,397) | (3,554) |
Additional paid-in capital | 7,433 | 6,498 |
Retained earnings | 14,320 | 14,974 |
Accumulated other comprehensive loss | (140) | (135) |
Total stockholders' equity | 19,153 | 18,553 |
Total liabilities and stockholders' equity | $ 32,527 | $ 32,311 |
Consolidated Balance Sheets Par
Consolidated Balance Sheets Parentheticals - USD ($) shares in Millions, $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Consolidated Balance Sheets Parenthetical [Abstract] | ||
Allowance for Doubtful Accounts Receivable, Current | $ 4 | $ 4 |
Less accumulated depreciation, depletion and amortization | $ (21,659) | $ (23,260) |
Preferred stock, no par value | $ 0 | $ 0 |
Preferred stock shares authorized | 26 | 26 |
Preferred stock shares issued | 0 | 0 |
Preferred stock shares outstanding | 0 | 0 |
Common stock, par value per share | $ 1 | $ 1 |
Common stock shares authorized | 1,100 | 1,100 |
Common stock, shares issued | 937 | 770 |
Common stock, securities exchangeable, no par value | $ 0 | $ 0 |
Common stock, securities exchangeable, shares authorized | 29 | 29 |
Common stock, securities exchangeable, shares issued | 0 | 0 |
Common stock, securities exchangeable, shares outstanding | 0 | 0 |
Common stock, held in treasury, shares | 89 | 93 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Operating activities: | ||
Net income (loss) | $ (577) | $ (662) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Deferred income taxes | (392) | (185) |
Depreciation, depletion and amortization | 1,170 | 1,572 |
Impairments | 1 | 44 |
Net (gain) loss on derivative instruments | 88 | 17 |
Net cash received (paid) in settlement of derivative instruments | 46 | 4 |
Pension and other postretirement benefits, net | 14 | 14 |
Exploratory dry well costs and unproved property impairments | 166 | 148 |
Net (gain) loss on disposal of assets | (234) | (1) |
Equity method investments, net | 22 | 37 |
Changes in: | ||
Current receivables, changes in | 88 | 534 |
Inventories, changes in | 30 | 21 |
Current accounts payable and accrued liabilities, changes in | (211) | (770) |
All other operating, net | 41 | (56) |
Net cash provided by operating activities | 252 | 717 |
Investing activities: | ||
Additions to property, plant and equipment | (753) | (2,320) |
Disposal of assets | 758 | 2 |
Investments - return of capital | 37 | 31 |
Purchases of short-term investments | 0 | 925 |
Deposit for acquisition | 89 | 0 |
All other investing, net | 2 | (1) |
Net cash used in investing activities | (45) | (3,213) |
Financing activities: | ||
Borrowings | 0 | 1,996 |
Debt issuance costs | 0 | 19 |
Debt repayments | 0 | 34 |
Common stock issuance | 1,236 | 0 |
Dividends paid | (77) | (285) |
All other financing, net | 0 | 11 |
Net cash provided by (used in) financing activities | 1,159 | 1,669 |
Effect of Exchange Rate on Cash and Cash Equivalents, Continuing Operations | (3) | 1 |
Net increase (decrease) in cash and cash equivalents | 1,363 | (826) |
Cash and cash equivalents at beginning of period | 1,221 | 2,398 |
Cash and cash equivalents at end of period | $ 2,584 | $ 1,572 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation [Text Block] | Basis of Presentation These consolidated financial statements are unaudited; however, in the opinion of management, these statements reflect all adjustments necessary for a fair statement of the results for the periods reported. All such adjustments are of a normal recurring nature unless disclosed otherwise. These consolidated financial statements, including notes, have been prepared in accordance with the applicable rules of the SEC and do not include all of the information and disclosures required by U.S. GAAP for complete financial statements. A reclassification between operating cash flow categories was made to the prior year's financial information to present it on a basis comparable with the current year's presentation with no impact on net cash provided by operating activities. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2015 Annual Report on Form 10-K. The results of operations for the second quarter and first six months of 2016 are not necessarily indicative of the results to be expected for the full year. |
Accounting Standards
Accounting Standards | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Standards Disclosure [Abstract] | |
Accounting Standards [Text Block] | Accounting Standards Not Yet Adopted In June 2016, the FASB issued a new accounting standards update that changes the impairment model for trade receivables, net investments in leases, debt securities, loans and certain other instruments. The standard requires the use of a forward-looking "expected loss" model as opposed to the current "incurred loss" model. This standard is effective for us in the first quarter of 2020 and will be adopted on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the adoption period. Early adoption is permitted starting January 2019. We are evaluating the provisions of this accounting standards update and assessing the impact, if any, it may have on our consolidated results of operations, financial position or cash flows. In March 2016, the FASB issued a new accounting standards update that changes several aspects of accounting for share-based payment transactions, including a requirement to recognize all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This standard is effective for us in the first quarter of 2017 and varying transition methods (modified retrospective, retrospective or prospective) should be applied to different provisions of the standard. Early adoption is permitted. We continue to evaluate the provisions of this accounting standards update but do not believe it will have a material effect on our consolidated results of operations, financial position or cash flows. In February 2016, the FASB issued a new lease accounting standard, which requires lessees to recognize most leases, including operating leases, on the balance sheet as a right of use asset and lease liability. Short-term leases can continue being accounted for off balance sheet based on a policy election. This standard is effective for us in the first quarter of 2019 and should be applied using a modified retrospective approach at the beginning of the earliest period presented in the financial statements. Early adoption is permitted. We are evaluating the provisions of this accounting standards update and assessing the impact it will have on our consolidated results of operations, financial position or cash flows. In January 2016, the FASB issued an accounting standards update that addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. This standard is effective for us in the first quarter of 2018. Early adoption is allowed for certain provisions. We do not expect the adoption of this standard to have a significant impact on our consolidated results of operations, financial position or cash flows. In July 2015, the FASB issued an update that requires an entity to measure inventory at the lower of cost and net realizable value. This excludes inventory measured using LIFO or the retail inventory method. This standard is effective for us in the first quarter of 2017 and will be applied prospectively. Early adoption is permitted. We do not expect the adoption of this standard to have a significant impact on our consolidated results of operations, financial position or cash flows. In August 2014, the FASB issued an update that requires management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. This standard is effective for us for the annual period ending after December 15, 2016 and for annual periods and interim periods thereafter. Early adoption is permitted. We do not expect the adoption of this standard to have a significant impact on our consolidated results of operations, financial position or cash flows. In May 2014, the FASB issued an update that supersedes the existing revenue recognition requirements. This standard includes a five-step revenue recognition model to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. Among other things, the standard requires enhanced disclosures about revenue, provides guidance for transactions that were not previously addressed comprehensively and improves guidance for multiple-element arrangements. This standard is effective for us in the first quarter of 2018 and should be applied retrospectively to each prior reporting period presented or with the cumulative effect of initially applying the update recognized at the date of initial application. While early adoption is permitted, we plan to adopt in the first quarter of 2018. We continue to evaluate certain provisions of this accounting standards update and are assessing the impact it will have on our consolidated results of operations, financial position or cash flows. Recently Adopted In May 2015, the FASB issued an update that removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendment also removes certain disclosure requirements regarding all investments that are eligible to be measured using the net asset value per share practical expedient and only requires certain disclosures on those investments for which an entity elects to use the net asset value per share expedient. This standard is effective for us in the first quarter of 2016 and was applied on a retrospective basis. This standard only modifies disclosure requirements; as such, there was no impact on our consolidated results of operations, financial position or cash flows. In February 2015, the FASB issued an amendment to the guidance for determining whether an entity is a variable interest entity ("VIE"). The standard does not add or remove any of the five characteristics that determine whether an entity is a VIE. However, it does change the manner in which a reporting entity assesses one of the characteristics. In particular, when decision-making over the entity’s most significant activities has been outsourced, the standard changes how a reporting entity assesses if the equity holders at risk lack decision making rights. This standard is effective for us in the first quarter of 2016. The adoption of this standard did not have a significant impact on our consolidated results of operations, financial position or cash flows. |
Variable Interest Entity
Variable Interest Entity | 6 Months Ended |
Jun. 30, 2016 | |
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | |
Variable Interest Entity [Text Block] | Variable Interest Entity The owners of the Athabasca Oil Sands Project, in which we hold a 20% undivided interest, contracted with a wholly owned subsidiary of a publicly traded Canadian limited partnership (“Corridor Pipeline”) to provide materials transportation capabilities among the Muskeg River and Jackpine mines, the Scotford upgrader and markets in Edmonton, Alberta, Canada. Costs under this contract are accrued and recorded on a monthly basis, with current liabilities of $2 million recorded at June 30, 2016 and December 31, 2015 . This contract qualifies as a variable interest contractual arrangement, and the Corridor Pipeline qualifies as a VIE. We hold a variable interest but are not the primary beneficiary because our shipments are only 20% of the total; therefore, the Corridor Pipeline is not consolidated by us. Our maximum exposure to loss as a result of our involvement with this VIE is the amount we expect to pay over the contract term, which was $468 million as of June 30, 2016 . The liability on our books related to this contract at any given time will reflect amounts due for the immediately previous month’s activity, which is substantially less than the maximum exposure over the contract term. |
Income per Common Share
Income per Common Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Income (Loss) per Common Share | Loss) per Common Share Basic income (loss) per share is based on the weighted average number of common shares outstanding. Diluted income per share assumes exercise of stock options, provided the effect is not antidilutive. The per share calculations below exclude 14 million stock options for the three and six month periods ended June 30, 2016 and 13 million stock options for the three and six month periods ended June 30, 2015 that were antidilutive. Three Months Ended June 30, Six Months Ended June 30, (In millions, except per share data) 2016 2015 2016 2015 Net income (loss) $ (170 ) $ (386 ) $ (577 ) $ (662 ) Weighted average common shares outstanding 848 677 790 676 Weighted average common shares, diluted 848 677 790 676 Net income (loss) per share: Basic $ (0.20 ) $ (0.57 ) $ (0.73 ) $ (0.98 ) Diluted $ (0.20 ) $ (0.57 ) $ (0.73 ) $ (0.98 ) |
Acquisition (Notes)
Acquisition (Notes) | 6 Months Ended |
Jun. 30, 2016 | |
Acquisitions [Abstract] | |
Business Combination Disclosure [Text Block] | Acquisitions In June 2016, we executed a purchase agreement to acquire PayRock Energy Holdings, LLC ("PayRock"), a portfolio company of EnCap Investments, which closed on August 1, 2016 for $888 million , subject to closing adjustments. PayRock has approximately 61,000 |
Dispositions
Dispositions | 6 Months Ended |
Jun. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Dispositions [Text Block] | Dispositions 2016 - North America E&P Segment During the quarter, we announced the sale of our Wyoming upstream and midstream assets for proceeds of $ 870 million , before closing adjustments, of which approximately $ 690 million was received in the second quarter. A pre-tax gain of $266 million was recognized in the second quarter 2016. The remaining asset sales are subject to the receipt of certain tribal consents and are expected to close before year end. These assets are classified as held for sale in the consolidated balance sheet as of June 30, 2016 with total assets of $ 104 million and total liabilities of $ 4 million . The proceeds for the remaining asset sales were deposited into an escrow account by the buyer. In March and April 2016, we entered into separate agreements to sell our 10% working interest in the outside-operated Shenandoah discovery in the Gulf of Mexico, operated natural gas assets in the Piceance basin in Colorado and certain undeveloped acreage in West Texas for a combined total of approximately $ 80 million in proceeds, before closing adjustments. We closed on certain of the asset sales and recognized a net pre-tax net loss on sale of $ 48 million for the six months ended June 30, 2016. The remaining asset sales are expected to close by year-end. 2015 - North America E&P Segment In the third quarter of 2015, we closed on the sale of our East Texas/North Louisiana and Wilburton, Oklahoma natural gas assets for proceeds of approximately $100 million and recorded a pretax loss of $1 million . During the second quarter of 2015, we recorded a non-cash impairment charge of $44 million related to these assets as a result of the anticipated sale (see Note 13 ). |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information [Text Block] | Segment Information We have three reportable operating segments. Each of these segments is organized and managed based upon both geographic location and the nature of the products and services it offers. • N.A. E&P – explores for, produces and markets crude oil and condensate, NGLs and natural gas in North America; • Int'l E&P – explores for, produces and markets crude oil and condensate, NGLs and natural gas outside of North America and produces and markets products manufactured from natural gas, such as LNG and methanol, in E.G.; and • Oil Sands Mining (“OSM”) – mines, extracts and transports bitumen from oil sands deposits in Alberta, Canada, and upgrades the bitumen to produce and market synthetic crude oil and vacuum gas oil. Information regarding assets by segment is not presented because it is not reviewed by the chief operating decision maker (“CODM”). Segment income represents income which excludes certain items not allocated to segments, net of income taxes, attributable to the operating segments. A portion of our corporate and operations support general and administrative costs are not allocated to the operating segments. These unallocated costs primarily consist of employment costs (including pension effects), professional services, facilities and other costs associated with corporate and operations support activities. Additionally, items which affect comparability such as: gains or losses on dispositions, certain impairments, change in tax expense associated with a tax rate change, unrealized gains or losses on commodity derivative instruments, pension settlement losses or other items (as determined by the CODM) are not allocated to operating segments. Three Months Ended June 30, 2016 Not Allocated (In millions) N.A. E&P Int'l E&P OSM to Segments Total Sales and other operating revenues $ 617 $ 159 $ 185 $ (91 ) (c) $ 870 Marketing revenues 53 23 13 — 89 Total revenues 670 182 198 (91 ) 959 Income from equity method investments — 37 — — 37 Net gain on disposal of assets and other income 2 7 1 296 (d) 306 Less: Production expenses 129 56 165 — 350 Marketing costs 52 23 13 — 88 Exploration expenses 37 4 7 141 (e) 189 Depreciation, depletion and amortization 433 68 49 11 561 Other expenses (a) 97 22 9 99 (f) 227 Taxes other than income 35 — 4 — 39 Net interest and other — — — 86 86 Income tax benefit (41 ) (2 ) (10 ) (15 ) (68 ) Segment income (loss) / Net income (loss) $ (70 ) $ 55 $ (38 ) $ (117 ) $ (170 ) Capital expenditures (b) $ 153 $ 12 $ 7 $ 5 $ 177 (a) Includes other operating expenses and general and administrative expenses. (b) Includes accruals. (c) Unrealized loss on commodity derivative instruments. (d) Primarily related to partial sale of Wyoming upstream and midstream assets. (See note 6 .) (e) Impairments associated with decision to not drill remaining Gulf of Mexico undeveloped leases. (f) Includes pension settlement loss of $31 million (See note 8 ). Three Months Ended June 30, 2015 Not Allocated (In millions) N.A. E&P Int'l E&P OSM to Segments Total Sales and other operating revenues $ 993 $ 211 $ 147 $ (44 ) (c) $ 1,307 Marketing revenues 110 30 43 — 183 Total revenues 1,103 241 190 (44 ) 1,490 Income from equity method investments — 26 — — 26 Net gain on disposal of assets and other income 11 4 — — 15 Less: Production expenses 179 64 207 — 450 Marketing costs 112 29 41 — 182 Exploration expenses 91 20 — — 111 Depreciation, depletion and amortization 634 71 35 11 751 Impairments — — — 44 (d) 44 Other expenses (a) 99 19 9 122 (e) 249 Taxes other than income 67 — 5 6 78 Net interest and other — — — 58 58 Income tax provision (benefit) (23 ) 27 (30 ) 20 (f) (6 ) Segment income (loss) / Net income (loss) $ (45 ) $ 41 $ (77 ) $ (305 ) $ (386 ) Capital expenditures (b) $ 551 $ 99 $ 16 $ 12 $ 678 (a) Includes other operating expenses and general and administrative expenses. (b) Includes accruals. (c) Unrealized loss on commodity derivative instruments. (d) Proved property impairment (See Note 13 ). (e) Includes pension settlement loss of $64 million (see Note 8 ). (f) Includes $135 million of deferred tax expense related to Alberta provincial corporate tax rate increase (see Note 9 ). Six Months Ended June 30, 2016 Not Allocated (In millions) N.A. E&P Int'l E&P OSM to Segments Total Sales and other operating revenues $ 1,110 $ 255 $ 333 $ (114 ) (c) $ 1,584 Marketing revenues 84 38 25 — 147 Total revenues 1,194 293 358 (114 ) 1,731 Income from equity method investments — 51 — — 51 Net gain on disposal of assets and other income 3 13 1 233 (d) 250 Less: Production expenses 263 109 306 — 678 Marketing costs 84 37 25 — 146 Exploration expenses 55 10 7 141 (e) 213 Depreciation, depletion and amortization 920 118 109 23 1,170 Impairments 1 — — — 1 Other expenses (a) 215 38 16 218 (f) 487 Taxes other than income 77 — 9 1 87 Net interest and other — — — 171 171 Income tax benefit (153 ) (14 ) (27 ) (150 ) (344 ) Segment income (loss) / Net income (loss) $ (265 ) $ 59 $ (86 ) $ (285 ) $ (577 ) Capital expenditures (b) $ 468 $ 44 $ 16 $ 8 $ 536 (a) Includes other operating expenses and general and administrative expenses. (b) Includes accruals. (c) Unrealized loss on commodity derivative instruments. (d) Related to net gain on disposal of assets (see Note 6 ). (e) Impairments associated with decision to not drill remaining Gulf of Mexico undeveloped leases. (f) Includes pension settlement loss of $79 million and severance related expenses associated with workforce reductions of $8 million (see Note 8 ). Six Months Ended June 30, 2015 Not Allocated (In millions) N.A. E&P Int'l E&P OSM to Segments Total Sales and other operating revenues $ 1,843 $ 393 $ 372 $ (21 ) (c) $ 2,587 Marketing revenues 288 56 43 — 387 Total revenues 2,131 449 415 (21 ) 2,974 Income from equity method investments — 62 — — 62 Net gain on disposal of assets and other income 11 14 1 1 27 Less: Production expenses 381 131 382 — 894 Marketing costs 292 54 41 — 387 Exploration expenses 126 75 — — 201 Depreciation, depletion and amortization 1,317 135 97 23 1,572 Impairments — — — 44 (d) 44 Other expenses (a) 216 42 18 251 (e) 527 Taxes other than income 128 — 10 7 145 Net interest and other — — — 105 105 Income tax provision (benefit) (112 ) 24 (36 ) (26 ) (f) (150 ) Segment income (loss) / Net income (loss) $ (206 ) $ 64 $ (96 ) $ (424 ) $ (662 ) Capital expenditures (b) $ 1,484 $ 245 $ 37 $ 14 $ 1,780 (a) Includes other operating expenses and general and administrative expenses. (b) Includes accruals. (c) Unrealized loss on commodity derivative instruments. (d) Proved property impairments (See Note 13 ). (e) Includes pension settlement loss of $ 81 million and severance related expenses associated with workforce reductions of $43 million (see Note 8 ). (f) Includes $135 million of deferred tax expense related to Alberta provincial corporate tax rate increase (see Note 9 ). |
Defined Benefit Postretirement
Defined Benefit Postretirement Plans | 6 Months Ended |
Jun. 30, 2016 | |
Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Defined Benefit Postretirement Plans [Text Block] | Defined Benefit Postretirement Plans The following summarizes the components of net periodic benefit cost: Three Months Ended June 30, Pension Benefits Other Benefits (In millions) 2016 2015 2016 2015 Service cost $ 6 $ 12 $ 1 $ 1 Interest cost 10 13 2 2 Expected return on plan assets (13 ) (17 ) — — Amortization: – prior service cost (credit) (3 ) (2 ) (1 ) (1 ) – actuarial loss 4 7 — — Net settlement loss (a) 31 64 — — Net curtailment loss (b) — — — 2 Net periodic benefit cost $ 35 $ 77 $ 2 $ 4 Six Months Ended June 30, Pension Benefits Other Benefits (In millions) 2016 2015 2016 2015 Service cost $ 12 $ 24 $ 2 $ 2 Interest cost 21 27 5 5 Expected return on plan assets (28 ) (36 ) — — Amortization: – prior service cost (credit) (5 ) (1 ) (2 ) (2 ) – actuarial loss 7 14 — — Net settlement loss (a) 79 81 — — Net curtailment loss (gain) (b) — 1 — (4 ) Net periodic benefit cost $ 86 $ 110 $ 5 $ 1 (a) Settlements are recognized as they occur, once it is probable that lump sum payments from a plan for a given year will exceed the plan's total service and interest cost for that year. (b) Related to workforce reductions, which reduced the future expected years of service for employees participating in the plans. During the first six months of 2016 , we recorded the effects of settlements of our U.S. pension plans. As required, we remeasured the plans' assets and liabilities as of the applicable balance sheet dates. The cumulative effects of these events are included in the remeasurement and reflected in both the pension liability and net periodic benefit cost. During the first six months of 2016 , we made contributions of $30 million to our funded pension plans. We expect to make additional contributions up to an estimated $34 million to our funded pension plans over the remainder of 2016 . During the first six months of 2016 , we made payments of $37 million and $10 million related to unfunded pension plans and other postretirement benefit plans, respectively. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Effective Tax Rate The effective income tax rate is influenced by a variety of factors including the geographic and functional sources of income and the relative magnitude of these sources of income. The difference between the total provision and the sum of the amounts allocated to segments is reported in the “Not Allocated to Segments” column of the tables in Note 7 . Our effective income tax rates for the first six months of 2016 and 2015 were 37% and 18% . In Libya, considerable uncertainty remains around the timing of future production and sales levels. Reliable estimates of 2016 and 2015 Libyan annual ordinary income from our operations could not be made, and the range of possible scenarios in the worldwide annual effective tax rate calculation demonstrates significant variability. Thus, the tax benefit applicable to Libyan ordinary loss was recorded as a discrete item in the first six months of 2016 and 2015 . For the first six months of 2016 and 2015 , estimated annual effective tax rates were calculated excluding Libya and applied to consolidated ordinary income (loss). Excluding Libya, the effective tax rates would be 36% and 15% for the first six months of 2016 and 2015 . The change was driven by a shift in jurisdictional income and tax legislation enacted by the Alberta government on June 29, 2015 to increase the provincial corporate tax rate from 10% to 12% . As a result of this legislation, we recorded additional non-cash deferred tax expense of $135 million in the second quarter of 2015. Deferred Tax Assets In connection with our assessment of the realizability of our deferred tax assets, we consider whether it is more likely than not that some portion or all of our deferred tax assets will not be realized. In the event it is more likely than not that some portion or all of our deferred taxes will not be realized, such assets are reduced by a valuation allowance. Future increases to our valuation allowance are possible if our estimates and assumptions (particularly as they relate to our long-term commodity price forecast) are revised such that they reduce estimates of future taxable income during the carryforward period. |
Short-Term Investments (Notes)
Short-Term Investments (Notes) | 6 Months Ended |
Jun. 30, 2016 | |
Short-term Investments [Abstract] | |
Investment [Text Block] | Short-term Investments As of June 30, 2015, we held short-term investments comprised of bank time deposits with original maturities of greater than three months and remaining maturities of less than twelve months. These short-term investments, which were classified as held-to-maturity investments and recorded at amortized cost, matured in the third quarter of 2015. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories [Text Block] | Inventories Liquid hydrocarbons, natural gas and bitumen are recorded at weighted average cost and carried at the lower of cost or market value. Supplies and other items consist principally of tubular goods and equipment which are valued at weighted average cost and reviewed periodically for obsolescence or impairment when market conditions indicate. June 30, December 31, (In millions) 2016 2015 Liquid hydrocarbons, natural gas and bitumen $ 31 $ 35 Supplies and other items 241 278 Inventories, at cost $ 272 $ 313 |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Text Block] | Property, Plant and Equipment, net of Accumulated Depreciation, Depletion and Amortization June 30, December 31, (In millions) 2016 2015 North America E&P $ 13,965 $ 15,226 International E&P 2,479 2,533 Oil Sands Mining 9,101 9,197 Corporate 112 105 Net property, plant and equipment $ 25,657 $ 27,061 Our Libya operations continue to be impacted by civil unrest. Operations were interrupted in mid-2013 as a result of the shutdown of the Es-Sider crude oil terminal, and although temporarily re-opened during the second half of 2014, production remains shut-in. Earlier this year, an Internationally-backed Unity Government was established in Tripoli. During the second quarter, the two National Oil Companies agreed to unify and reportedly have begun preliminary discussions on re-opening the Es-Sider and other crude oil terminals which, if successful, will allow resumption of production operations at our Waha concessions. However, considerable uncertainty remains around the timing of future production and sales levels. As of June 30, 2016 , our net property, plant and equipment investment in Libya is $775 million , and total proved reserves (unaudited) in Libya as of December 31, 2015 are 235 million barrels of oil equivalent ("mmboe"). We and our partners in the Waha concessions continue to assess the situation and the condition of our assets in Libya. Our periodic assessment of the carrying value of our net property, plant and equipment in Libya specifically considers the net investment in the assets, the duration of our concessions and the reserves anticipated to be recoverable in future periods. The undiscounted cash flows related to our Libya assets continue to exceed the carrying value of $775 million by a material amount. However, changes in management's forecast assumptions may cause us to reassess our assets in Libya for impairment, and could result in non-cash impairment charges in the future. Exploratory well costs capitalized greater than one year after completion of drilling were $118 million and $85 million as of June 30, 2016 and December 31, 2015 . The $33 million increase primarily relates to the Alba Block Sub Area B offshore Equatorial Guinea where the Rodo well reached total depth in the first quarter of 2015. We have since completed a seismic feasibility study and continue to finalize next steps in the Alba Block Sub Area B exploration program. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements [Text Block] | Fair Value Measurements Fair Values - Recurring The following tables present assets and liabilities accounted for at fair value on a recurring basis as of June 30, 2016 and December 31, 2015 by fair value hierarchy level. June 30, 2016 (In millions) Level 1 Level 2 Level 3 Total Derivative instruments, assets Commodity (a) $ — $ 6 $ — $ 6 Interest rate — 12 — 12 Derivative instruments, assets $ — $ 18 $ — $ 18 Derivative instruments, liabilities Commodity (a) $ — $ 70 $ — $ 70 Derivative instruments, liabilities $ — $ 70 $ — $ 70 (a) Derivative instruments are recorded on a net basis in the company's balance sheet (see Note 14 ). December 31, 2015 (In millions) Level 1 Level 2 Level 3 Total Derivative instruments, assets Commodity (a) $ — $ 51 $ — $ 51 Interest rate — 8 — 8 Derivative instruments, assets $ — $ 59 $ — $ 59 Derivative instruments, liabilities Commodity (a) $ — $ 1 $ — $ 1 Derivative instruments, liabilities $ — $ 1 $ — $ 1 (a) Derivative instruments are recorded on a net basis in the company's balance sheet (see Note 14 ). Commodity derivatives include three-way collars, two-way collars, call options and swaptions. These instruments are measured at fair value using either the Black-Scholes Model or the Black Model. Inputs to both models include commodity prices, interest rates, and implied volatility. The inputs to these models are categorized as Level 2 because predominantly all assumptions and inputs are observable in active markets throughout the term of the instruments. Interest rate swaps are measured at fair value with a market approach using actionable broker quotes, which are Level 2 inputs. See Note 14 for additional discussion of the types of derivative instruments we use. Fair Values – Goodwill Unlike long-lived assets, goodwill must be tested for impairment at least annually, or between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Goodwill is tested for impairment at the reporting unit level. We estimate the fair value of our International E&P reporting unit using a combination of market and income approaches. The market approach referenced observable inputs specific to us and our industry, such as the price of our common equity, our enterprise value, and valuation multiples of us and our peers from the investor analyst community. The income approach utilized discounted cash flows, which were based on forecasted assumptions. Key assumptions to the income approach include future liquid hydrocarbon and natural gas pricing, estimated quantities of liquid hydrocarbons and natural gas proved and probable reserves, estimated timing of production, discount rates, future capital requirements and operating expenses and tax rates. The assumptions used in the income approach are consistent with those that management uses to make business decisions. These valuations methodologies represent Level 3 fair value measurements. We performed our annual impairment test in April 2016 and concluded no impairment was required. While the fair value of our International E&P reporting unit exceeded the book value, subsequent commodity price and/or common stock declines may cause us to reassess our goodwill for impairment, and could result in non-cash impairment charges in the future. Fair Values- Nonrecurring The following table shows the values of assets, by major category, measured at fair value on a nonrecurring basis in periods subsequent to their initial recognition. Three Months Ended June 30, 2016 2015 (In millions) Fair Value Impairment Fair Value Impairment Long-lived assets held for use $ — $ — $ 17 $ 44 Six Months Ended June 30, 2016 2015 (In millions) Fair Value Impairment Fair Value Impairment Long-lived assets held for use $ — $ 1 $ 17 $ 44 Long-lived assets held for use that were impaired are discussed below. The fair values of each were measured using an income approach based upon internal estimates of future production levels, prices and discount rate, all of which are Level 3 inputs. Inputs to the fair value measurement include reserve and production estimates made by our reservoir engineers, estimated future commodity prices adjusted for quality and location differentials and forecasted operating expenses for the remaining estimated life of the reservoir. During the second quarter of 2015, we recorded a non-cash impairment charge of $44 million related to East Texas, North Louisiana and Wilburton, Oklahoma natural gas assets as a result of the anticipated sale (See Note 6 ). The fair values were measured using a probability weighted income approach based on both the anticipated sales price and a held-for-use model. Fair Values – Financial Instruments Our current assets and liabilities include financial instruments, the most significant of which are receivables, long-term debt and payables. We believe the carrying values of our receivables and payables approximate fair value. Our fair value assessment incorporates a variety of considerations, including (1) the short-term duration of the instruments, (2) our credit rating, and (3) our historical incurrence of and expected future insignificant bad debt expense, which includes an evaluation of counterparty credit risk. The following table summarizes financial instruments, excluding receivables, payables and derivative financial instruments, and their reported fair values by individual balance sheet line item at June 30, 2016 and December 31, 2015 . June 30, 2016 December 31, 2015 Fair Carrying Fair Carrying (In millions) Value Amount Value Amount Financial assets Other noncurrent assets $ 198 $ 206 $ 104 $ 118 Total financial assets $ 198 $ 206 $ 104 $ 118 Financial liabilities Other current liabilities $ 25 $ 24 $ 34 $ 33 Long-term debt, including current portion (a) 7,186 7,291 6,723 7,291 Deferred credits and other liabilities 121 117 97 95 Total financial liabilities $ 7,332 $ 7,432 $ 6,854 $ 7,419 (a) Excludes capital leases, debt issuance costs and interest rate swap adjustments. Fair values of our financial assets included in other noncurrent assets, and of our financial liabilities included in other current liabilities and deferred credits and other liabilities, are measured using an income approach and most inputs are internally generated, which results in a Level 3 classification. Estimated future cash flows are discounted using a rate deemed appropriate to obtain the fair value. Most of our long-term debt instruments are publicly-traded. A market approach, based upon quotes from major financial institutions, which are Level 2 inputs, is used to measure the fair value of such debt. The fair value of our debt that is not publicly-traded is measured using an income approach. The future debt service payments are discounted using the rate at which we currently expect to borrow. All inputs to this calculation are Level 3. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives [Text Block] | Derivatives For further information regarding the fair value measurement of derivative instruments, see Note 13 . All of our interest rate and commodity derivatives are subject to enforceable master netting arrangements or similar agreements under which we may report net amounts. The following tables present the gross fair values of derivative instruments and the reported net amounts where they appear on the consolidated balance sheets. June 30, 2016 (In millions) Asset Liability Net Asset Balance Sheet Location Fair Value Hedges Interest rate $ 12 $ — $ 12 Other noncurrent assets Total Designated Hedges $ 12 $ — $ 12 June 30, 2016 (In millions) Asset Liability Net Liability Balance Sheet Location Not Designated as Hedges Commodity $ 6 $ 39 $ 33 Other current liabilities Commodity — 31 31 Deferred credits and other liabilities Total Not Designated as Hedges $ 6 $ 70 $ 64 December 31, 2015 (In millions) Asset Liability Net Asset Balance Sheet Location Fair Value Hedges Interest rate $ 8 $ — $ 8 Other noncurrent assets Not Designated as Hedges Commodity $ 51 $ 1 $ 50 Other current assets Derivatives Designated as Fair Value Hedges The following table presents, by maturity date, information about our interest rate swap agreements, including the weighted average, London Interbank Offer Rate (“LIBOR”)-based, floating rate. June 30, 2016 December 31, 2015 Aggregate Notional Amount Weighted Average, LIBOR-Based, Aggregate Notional Amount Weighted Average, LIBOR-Based, Maturity Dates (in millions) Floating Rate (in millions) Floating Rate October 1, 2017 $ 600 4.94 % $ 600 4.73 % March 15, 2018 $ 300 4.77 % $ 300 4.66 % The pretax effects of derivative instruments designated as hedges of fair value in our consolidated statements of income are summarized in the table below. There is no ineffectiveness related to fair value hedges. Gain (Loss) Three Months Ended June 30, Six Months Ended June 30, (In millions) Income Statement Location 2016 2015 2016 2015 Derivative Interest rate Net interest and other $ — $ (2 ) $ 4 $ 3 Hedged Item Long-term debt Net interest and other $ — $ 2 $ (4 ) $ (3 ) Derivatives not Designated as Hedges We have entered into multiple crude oil and natural gas derivatives indexed to NYMEX WTI and Henry Hub related to a portion of our forecasted North America E&P sales through December 2017. These commodity derivatives consist of three-way collars, two-way collars, call options and swaptions. Three-way collars consist of a sold call (ceiling), a purchased put (floor) and a sold put. The ceiling price is the maximum we will receive for the contract volumes, the floor is the minimum price we will receive, unless the market price falls below the sold put strike price. In this case, we receive the NYMEX WTI/Henry Hub price plus the difference between the floor and the sold put price. These commodity derivatives were not designated as hedges. The following table sets forth outstanding derivative contracts as of June 30, 2016 and the weighted average prices for those contracts: Crude Oil Year Ending December 31, Third Quarter Fourth Quarter 2017 Three-Way Collars Volume (Bbls/day) 47,000 47,000 — Price per Bbl: Ceiling $55.37 $55.37 — Floor $50.23 $50.23 — Sold put $40.96 $40.96 — Sold call options (a) Volume (Bbls/day) 10,000 10,000 35,000 Price per Bbl $72.39 $72.39 $61.91 Two-way Collars Volume (Bbls/day) 10,000 10,000 — Price per Bbl: — Ceiling $50.00 $50.00 Floor $41.55 $41.55 (a) Call options settle monthly. Natural Gas Year Ending December 31, Third Quarter Fourth Quarter 2017 Three-Way Collars (a) Volume (MMBtu/day) 20,000 20,000 40,000 Price per MMBtu Ceiling $2.93 $2.93 $3.28 Floor $2.50 $2.50 $2.75 Sold put $2.00 $2.00 $2.25 (a) On our 2016 collars, the counterparty has the option to execute fixed-price swaps (swaptions) at a weighted average price of $2.93 per MMBtu indexed to NYMEX Henry Hub, which is exercisable on December 22, 2016. If counterparty exercises, the term of the fixed-price swaps would be for the calendar year 2017 and, if all such options are exercised, 20,000 MMBtu per day. The mark-to-market impact of these commodity derivative instruments appears in sales and other operating revenues in our consolidated statements of income for the three and six month periods ended June 30, 2016 was a net loss of $88 million and $90 million compared to a net loss of $43 million and $17 million for the same respective periods in 2015. Net cash received from settlements of commodity derivative instruments for the three and six month periods ended June 30, 2016 was $ 14 million and $ 46 million compared to $ 4 million for both of the respective periods in 2015. |
Incentive Based Compensation
Incentive Based Compensation | 6 Months Ended |
Jun. 30, 2016 | |
Incentive Based Compensation Plans [Abstract] | |
Incentive Based Compensation [Text Block] | Incentive Based Compensation Stock options, restricted stock awards and restricted stock units The following table presents a summary of activity for the first six months of 2016 : Stock Options Restricted Stock Awards & Units Number of Shares Weighted Average Exercise Price Awards Weighted Average Grant Date Fair Value Outstanding at December 31, 2015 12,665,419 $29.97 4,017,344 $30.76 Granted 1,680,000 (a) $7.22 5,233,984 $7.91 Options Exercised/Stock Vested — — (1,148,953 ) $32.29 Canceled (973,295 ) $25.76 (557,051 ) $23.20 Outstanding at June 30, 2016 13,372,124 $27.42 7,545,324 $15.23 (a) The weighted average grant date fair value of stock option awards granted was $1.97 per share. Stock-based performance unit awards During the first six months of 2016 , we granted 1,205,517 stock-based performance units to certain officers. The grant date fair value per unit was $3.72 . |
Debt (Notes)
Debt (Notes) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt Revolving Credit Facility As of June 30, 2016 , we had no borrowings against our revolving credit facility (the "Credit Facility"), as described below. In March 2016, we increased our $3.0 billion unsecured Credit Facility by $300 million to a total of $3.3 billion . The Credit Facility includes a covenant requiring that our ratio of total debt to total capitalization not exceed 65% as of the last day of each fiscal quarter. If an event of default occurs, the lenders holding more than half of the commitments may terminate the commitments under the Credit Facility and require the immediate repayment of all outstanding borrowings and the cash collateralization of all outstanding letters of credit under the Credit Facility. As of June 30, 2016 , we were in compliance with this covenant with a debt-to-capitalization ratio of 28% . Debt Issuance In the second quarter of 2015, we issued $ 2 billion aggregate principal amount of unsecured senior notes and used the aggregate net proceeds to repay our $ 1 billion 0.90% senior notes November 1, 2015, and for general corporate purposes. |
Reclassifications out of Accumu
Reclassifications out of Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2016 | |
Reclassifications out of AccumulatedOtherComprehensiveIncome [Abstract] | |
Reclassifications Out of Accumulated Other Comprehensive Loss | Reclassifications Out of Accumulated Other Comprehensive Loss The following table presents a summary of amounts reclassified from accumulated other comprehensive loss: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2016 2015 2016 2015 Income Statement Line Postretirement and postemployment plans Amortization of actuarial loss $ (4 ) $ (7 ) $ (7 ) $ (14 ) General and administrative Net settlement loss (31 ) (64 ) (79 ) (81 ) General and administrative Net curtailment gain (loss) — (2 ) — 3 General and administrative (35 ) (73 ) (86 ) (92 ) Income (loss) from operations 13 25 29 32 Provision (benefit) for income taxes Total reclassifications to expense $ (22 ) $ (48 ) $ (57 ) $ (60 ) Net income (loss) |
Stockholders' Equity (Notes)
Stockholders' Equity (Notes) | 6 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Stockholder's Equity In March 2016, we issued 166,750,000 shares of our common stock, par value $1 per share, at a price of $7.65 per share, excluding underwriting discounts and commissions, for net proceeds of $1,236 million . The proceeds were used to strengthen our balance sheet and for general corporate purposes, including funding a portion of our Capital Program. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information [Text Block] | Supplemental Cash Flow Information Six Months Ended June 30, (In millions) 2016 2015 Net cash (used in) operating activities: Interest paid (net of amounts capitalized) $ (177 ) $ (143 ) Income taxes paid to taxing authorities (61 ) (165 ) Noncash investing activities: Asset retirement cost increase $ 2 $ 6 Asset retirement obligations assumed by buyer 83 — |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We are a defendant in a number of legal and administrative proceedings arising in the ordinary course of business, including, but not limited to, royalty claims, contract claims, tax disputes and environmental claims. While the ultimate outcome and impact to us cannot be predicted with certainty, we believe the resolution of these proceedings will not have a material adverse effect on our consolidated financial position, results of operations or cash flows. We have incurred and will continue to incur capital, operating and maintenance, and remediation expenditures as a result of environmental laws and regulations. If these expenditures, as with all costs, are not ultimately reflected in the prices of our products and services, our operating results will be adversely affected. We believe that substantially all of our competitors must comply with similar environmental laws and regulations. However, the specific impact on each competitor may vary depending on a number of factors, including the age and location of its operating facilities, marketing areas and production processes. |
Subsequent Events (Notes)
Subsequent Events (Notes) | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Event During the third quarter 2016, we executed an agreement to terminate our Gulf of Mexico deepwater drilling rig contract. As a result, we expect to recognize a termination payment of $ 113 million in other operating expense in that quarter. |
Basis of Presentation Accountin
Basis of Presentation Accounting Policy (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | These consolidated financial statements are unaudited; however, in the opinion of management, these statements reflect all adjustments necessary for a fair statement of the results for the periods reported. All such adjustments are of a normal recurring nature unless disclosed otherwise. These consolidated financial statements, including notes, have been prepared in accordance with the applicable rules of the SEC and do not include all of the information and disclosures required by U.S. GAAP for complete financial statements. A reclassification between operating cash flow categories was made to the prior year's financial information to present it on a basis comparable with the current year's presentation with no impact on net cash provided by operating activities. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2015 Annual Report on Form 10-K. The results of operations for the second quarter and first six months of 2016 are not necessarily indicative of the results to be expected for the full year. |
Income per Common Share (Tables
Income per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The per share calculations below exclude 14 million stock options for the three and six month periods ended June 30, 2016 and 13 million stock options for the three and six month periods ended June 30, 2015 that were antidilutive. Three Months Ended June 30, Six Months Ended June 30, (In millions, except per share data) 2016 2015 2016 2015 Net income (loss) $ (170 ) $ (386 ) $ (577 ) $ (662 ) Weighted average common shares outstanding 848 677 790 676 Weighted average common shares, diluted 848 677 790 676 Net income (loss) per share: Basic $ (0.20 ) $ (0.57 ) $ (0.73 ) $ (0.98 ) Diluted $ (0.20 ) $ (0.57 ) $ (0.73 ) $ (0.98 ) |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended June 30, 2016 Not Allocated (In millions) N.A. E&P Int'l E&P OSM to Segments Total Sales and other operating revenues $ 617 $ 159 $ 185 $ (91 ) (c) $ 870 Marketing revenues 53 23 13 — 89 Total revenues 670 182 198 (91 ) 959 Income from equity method investments — 37 — — 37 Net gain on disposal of assets and other income 2 7 1 296 (d) 306 Less: Production expenses 129 56 165 — 350 Marketing costs 52 23 13 — 88 Exploration expenses 37 4 7 141 (e) 189 Depreciation, depletion and amortization 433 68 49 11 561 Other expenses (a) 97 22 9 99 (f) 227 Taxes other than income 35 — 4 — 39 Net interest and other — — — 86 86 Income tax benefit (41 ) (2 ) (10 ) (15 ) (68 ) Segment income (loss) / Net income (loss) $ (70 ) $ 55 $ (38 ) $ (117 ) $ (170 ) Capital expenditures (b) $ 153 $ 12 $ 7 $ 5 $ 177 (a) Includes other operating expenses and general and administrative expenses. (b) Includes accruals. (c) Unrealized loss on commodity derivative instruments. (d) Primarily related to partial sale of Wyoming upstream and midstream assets. (See note 6 .) (e) Impairments associated with decision to not drill remaining Gulf of Mexico undeveloped leases. (f) Includes pension settlement loss of $31 million (See note 8 ). Three Months Ended June 30, 2015 Not Allocated (In millions) N.A. E&P Int'l E&P OSM to Segments Total Sales and other operating revenues $ 993 $ 211 $ 147 $ (44 ) (c) $ 1,307 Marketing revenues 110 30 43 — 183 Total revenues 1,103 241 190 (44 ) 1,490 Income from equity method investments — 26 — — 26 Net gain on disposal of assets and other income 11 4 — — 15 Less: Production expenses 179 64 207 — 450 Marketing costs 112 29 41 — 182 Exploration expenses 91 20 — — 111 Depreciation, depletion and amortization 634 71 35 11 751 Impairments — — — 44 (d) 44 Other expenses (a) 99 19 9 122 (e) 249 Taxes other than income 67 — 5 6 78 Net interest and other — — — 58 58 Income tax provision (benefit) (23 ) 27 (30 ) 20 (f) (6 ) Segment income (loss) / Net income (loss) $ (45 ) $ 41 $ (77 ) $ (305 ) $ (386 ) Capital expenditures (b) $ 551 $ 99 $ 16 $ 12 $ 678 (a) Includes other operating expenses and general and administrative expenses. (b) Includes accruals. (c) Unrealized loss on commodity derivative instruments. (d) Proved property impairment (See Note 13 ). (e) Includes pension settlement loss of $64 million (see Note 8 ). (f) Includes $135 million of deferred tax expense related to Alberta provincial corporate tax rate increase (see Note 9 ). Six Months Ended June 30, 2016 Not Allocated (In millions) N.A. E&P Int'l E&P OSM to Segments Total Sales and other operating revenues $ 1,110 $ 255 $ 333 $ (114 ) (c) $ 1,584 Marketing revenues 84 38 25 — 147 Total revenues 1,194 293 358 (114 ) 1,731 Income from equity method investments — 51 — — 51 Net gain on disposal of assets and other income 3 13 1 233 (d) 250 Less: Production expenses 263 109 306 — 678 Marketing costs 84 37 25 — 146 Exploration expenses 55 10 7 141 (e) 213 Depreciation, depletion and amortization 920 118 109 23 1,170 Impairments 1 — — — 1 Other expenses (a) 215 38 16 218 (f) 487 Taxes other than income 77 — 9 1 87 Net interest and other — — — 171 171 Income tax benefit (153 ) (14 ) (27 ) (150 ) (344 ) Segment income (loss) / Net income (loss) $ (265 ) $ 59 $ (86 ) $ (285 ) $ (577 ) Capital expenditures (b) $ 468 $ 44 $ 16 $ 8 $ 536 (a) Includes other operating expenses and general and administrative expenses. (b) Includes accruals. (c) Unrealized loss on commodity derivative instruments. (d) Related to net gain on disposal of assets (see Note 6 ). (e) Impairments associated with decision to not drill remaining Gulf of Mexico undeveloped leases. (f) Includes pension settlement loss of $79 million and severance related expenses associated with workforce reductions of $8 million (see Note 8 ). Six Months Ended June 30, 2015 Not Allocated (In millions) N.A. E&P Int'l E&P OSM to Segments Total Sales and other operating revenues $ 1,843 $ 393 $ 372 $ (21 ) (c) $ 2,587 Marketing revenues 288 56 43 — 387 Total revenues 2,131 449 415 (21 ) 2,974 Income from equity method investments — 62 — — 62 Net gain on disposal of assets and other income 11 14 1 1 27 Less: Production expenses 381 131 382 — 894 Marketing costs 292 54 41 — 387 Exploration expenses 126 75 — — 201 Depreciation, depletion and amortization 1,317 135 97 23 1,572 Impairments — — — 44 (d) 44 Other expenses (a) 216 42 18 251 (e) 527 Taxes other than income 128 — 10 7 145 Net interest and other — — — 105 105 Income tax provision (benefit) (112 ) 24 (36 ) (26 ) (f) (150 ) Segment income (loss) / Net income (loss) $ (206 ) $ 64 $ (96 ) $ (424 ) $ (662 ) Capital expenditures (b) $ 1,484 $ 245 $ 37 $ 14 $ 1,780 (a) Includes other operating expenses and general and administrative expenses. (b) Includes accruals. (c) Unrealized loss on commodity derivative instruments. (d) Proved property impairments (See Note 13 ). (e) Includes pension settlement loss of $ 81 million and severance related expenses associated with workforce reductions of $43 million (see Note 8 ). (f) Includes $135 million of deferred tax expense related to Alberta provincial corporate tax rate increase (see Note 9 ). |
Defined Benefit Postretiremen31
Defined Benefit Postretirement Plans (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | The following summarizes the components of net periodic benefit cost: Three Months Ended June 30, Pension Benefits Other Benefits (In millions) 2016 2015 2016 2015 Service cost $ 6 $ 12 $ 1 $ 1 Interest cost 10 13 2 2 Expected return on plan assets (13 ) (17 ) — — Amortization: – prior service cost (credit) (3 ) (2 ) (1 ) (1 ) – actuarial loss 4 7 — — Net settlement loss (a) 31 64 — — Net curtailment loss (b) — — — 2 Net periodic benefit cost $ 35 $ 77 $ 2 $ 4 Six Months Ended June 30, Pension Benefits Other Benefits (In millions) 2016 2015 2016 2015 Service cost $ 12 $ 24 $ 2 $ 2 Interest cost 21 27 5 5 Expected return on plan assets (28 ) (36 ) — — Amortization: – prior service cost (credit) (5 ) (1 ) (2 ) (2 ) – actuarial loss 7 14 — — Net settlement loss (a) 79 81 — — Net curtailment loss (gain) (b) — 1 — (4 ) Net periodic benefit cost $ 86 $ 110 $ 5 $ 1 (a) Settlements are recognized as they occur, once it is probable that lump sum payments from a plan for a given year will exceed the plan's total service and interest cost for that year. (b) Related to workforce reductions, which reduced the future expected years of service for employees participating in the plans |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | June 30, December 31, (In millions) 2016 2015 Liquid hydrocarbons, natural gas and bitumen $ 31 $ 35 Supplies and other items 241 278 Inventories, at cost $ 272 $ 313 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule Of Property Plant And Equipment [Table Text Block] | June 30, December 31, (In millions) 2016 2015 North America E&P $ 13,965 $ 15,226 International E&P 2,479 2,533 Oil Sands Mining 9,101 9,197 Corporate 112 105 Net property, plant and equipment $ 25,657 $ 27,061 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following tables present assets and liabilities accounted for at fair value on a recurring basis as of June 30, 2016 and December 31, 2015 by fair value hierarchy level. June 30, 2016 (In millions) Level 1 Level 2 Level 3 Total Derivative instruments, assets Commodity (a) $ — $ 6 $ — $ 6 Interest rate — 12 — 12 Derivative instruments, assets $ — $ 18 $ — $ 18 Derivative instruments, liabilities Commodity (a) $ — $ 70 $ — $ 70 Derivative instruments, liabilities $ — $ 70 $ — $ 70 (a) Derivative instruments are recorded on a net basis in the company's balance sheet (see Note 14 ). December 31, 2015 (In millions) Level 1 Level 2 Level 3 Total Derivative instruments, assets Commodity (a) $ — $ 51 $ — $ 51 Interest rate — 8 — 8 Derivative instruments, assets $ — $ 59 $ — $ 59 Derivative instruments, liabilities Commodity (a) $ — $ 1 $ — $ 1 Derivative instruments, liabilities $ — $ 1 $ — $ 1 |
Fair Value Measurements, Nonrecurring [Table Text Block] | The following table shows the values of assets, by major category, measured at fair value on a nonrecurring basis in periods subsequent to their initial recognition. Three Months Ended June 30, 2016 2015 (In millions) Fair Value Impairment Fair Value Impairment Long-lived assets held for use $ — $ — $ 17 $ 44 Six Months Ended June 30, 2016 2015 (In millions) Fair Value Impairment Fair Value Impairment Long-lived assets held for use $ — $ 1 $ 17 $ 44 |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The following table summarizes financial instruments, excluding receivables, payables and derivative financial instruments, and their reported fair values by individual balance sheet line item at June 30, 2016 and December 31, 2015 . June 30, 2016 December 31, 2015 Fair Carrying Fair Carrying (In millions) Value Amount Value Amount Financial assets Other noncurrent assets $ 198 $ 206 $ 104 $ 118 Total financial assets $ 198 $ 206 $ 104 $ 118 Financial liabilities Other current liabilities $ 25 $ 24 $ 34 $ 33 Long-term debt, including current portion (a) 7,186 7,291 6,723 7,291 Deferred credits and other liabilities 121 117 97 95 Total financial liabilities $ 7,332 $ 7,432 $ 6,854 $ 7,419 (a) Excludes capital leases, debt issuance costs and interest rate swap adjustments. |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives as they appear on the balance sheet [Table Text Block] | The following tables present the gross fair values of derivative instruments and the reported net amounts where they appear on the consolidated balance sheets. June 30, 2016 (In millions) Asset Liability Net Asset Balance Sheet Location Fair Value Hedges Interest rate $ 12 $ — $ 12 Other noncurrent assets Total Designated Hedges $ 12 $ — $ 12 June 30, 2016 (In millions) Asset Liability Net Liability Balance Sheet Location Not Designated as Hedges Commodity $ 6 $ 39 $ 33 Other current liabilities Commodity — 31 31 Deferred credits and other liabilities Total Not Designated as Hedges $ 6 $ 70 $ 64 December 31, 2015 (In millions) Asset Liability Net Asset Balance Sheet Location Fair Value Hedges Interest rate $ 8 $ — $ 8 Other noncurrent assets Not Designated as Hedges Commodity $ 51 $ 1 $ 50 Other current assets |
Schedule of Interest Rate Derivatives [Table Text Block] | The following table presents, by maturity date, information about our interest rate swap agreements, including the weighted average, London Interbank Offer Rate (“LIBOR”)-based, floating rate. June 30, 2016 December 31, 2015 Aggregate Notional Amount Weighted Average, LIBOR-Based, Aggregate Notional Amount Weighted Average, LIBOR-Based, Maturity Dates (in millions) Floating Rate (in millions) Floating Rate October 1, 2017 $ 600 4.94 % $ 600 4.73 % March 15, 2018 $ 300 4.77 % $ 300 4.66 % |
Effects of derivatives designated as fair value hedges [Table Text Block] | Gain (Loss) Three Months Ended June 30, Six Months Ended June 30, (In millions) Income Statement Location 2016 2015 2016 2015 Derivative Interest rate Net interest and other $ — $ (2 ) $ 4 $ 3 Hedged Item Long-term debt Net interest and other $ — $ 2 $ (4 ) $ (3 ) |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | These commodity derivatives were not designated as hedges. The following table sets forth outstanding derivative contracts as of June 30, 2016 and the weighted average prices for those contracts: Crude Oil Year Ending December 31, Third Quarter Fourth Quarter 2017 Three-Way Collars Volume (Bbls/day) 47,000 47,000 — Price per Bbl: Ceiling $55.37 $55.37 — Floor $50.23 $50.23 — Sold put $40.96 $40.96 — Sold call options (a) Volume (Bbls/day) 10,000 10,000 35,000 Price per Bbl $72.39 $72.39 $61.91 Two-way Collars Volume (Bbls/day) 10,000 10,000 — Price per Bbl: — Ceiling $50.00 $50.00 Floor $41.55 $41.55 (a) Call options settle monthly. Natural Gas Year Ending December 31, Third Quarter Fourth Quarter 2017 Three-Way Collars (a) Volume (MMBtu/day) 20,000 20,000 40,000 Price per MMBtu Ceiling $2.93 $2.93 $3.28 Floor $2.50 $2.50 $2.75 Sold put $2.00 $2.00 $2.25 (a) On our 2016 collars, the counterparty has the option to execute fixed-price swaps (swaptions) at a weighted average price of $2.93 per MMBtu indexed to NYMEX Henry Hub, which is exercisable on December 22, 2016. If counterparty exercises, the term of the fixed-price swaps would be for the calendar year 2017 and, if all such options are exercised, 20,000 MMBtu per day. |
Incentive Based Compensation (T
Incentive Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Incentive Based Compensation Plans [Abstract] | |
Table of Incentive based compensation activity [Table Text Block] | The following table presents a summary of activity for the first six months of 2016 : Stock Options Restricted Stock Awards & Units Number of Shares Weighted Average Exercise Price Awards Weighted Average Grant Date Fair Value Outstanding at December 31, 2015 12,665,419 $29.97 4,017,344 $30.76 Granted 1,680,000 (a) $7.22 5,233,984 $7.91 Options Exercised/Stock Vested — — (1,148,953 ) $32.29 Canceled (973,295 ) $25.76 (557,051 ) $23.20 Outstanding at June 30, 2016 13,372,124 $27.42 7,545,324 $15.23 (a) The weighted average grant date fair value of stock option awards granted was $1.97 per share. |
Reclassifications out of Accu37
Reclassifications out of Accumulated Other Comprehensive Income Reclassifications out of Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Reclassifications out of AccumulatedOtherComprehensiveIncome [Abstract] | |
Schedule of Amounts Reclassified out of Accumulated Other Comprehensive Income [Table Text Block] | The following table presents a summary of amounts reclassified from accumulated other comprehensive loss: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2016 2015 2016 2015 Income Statement Line Postretirement and postemployment plans Amortization of actuarial loss $ (4 ) $ (7 ) $ (7 ) $ (14 ) General and administrative Net settlement loss (31 ) (64 ) (79 ) (81 ) General and administrative Net curtailment gain (loss) — (2 ) — 3 General and administrative (35 ) (73 ) (86 ) (92 ) Income (loss) from operations 13 25 29 32 Provision (benefit) for income taxes Total reclassifications to expense $ (22 ) $ (48 ) $ (57 ) $ (60 ) Net income (loss) |
Supplemental Cash Flow Inform38
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information [Table Text Block] | Supplemental Cash Flow Information Six Months Ended June 30, (In millions) 2016 2015 Net cash (used in) operating activities: Interest paid (net of amounts capitalized) $ (177 ) $ (143 ) Income taxes paid to taxing authorities (61 ) (165 ) Noncash investing activities: Asset retirement cost increase $ 2 $ 6 Asset retirement obligations assumed by buyer 83 — |
Variable Interest Entity (Detai
Variable Interest Entity (Details) - Variable Interest Entity, Not Primary Beneficiary [Member] - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 20.00% | |
Recorded liability related to unconsolidated VIE | $ 2 | $ 2 |
Maximum exposure to loss related to unconsolidated VIE | $ 468 |
Income per Common Share (Detail
Income per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 14 | 13 | 14 | 13 |
Net income (loss) | $ (170) | $ (386) | $ (577) | $ (662) |
Weighted average common shares outstanding, basic | 848 | 677 | 790 | 676 |
Weighted average common shares outstanding, diluted | 848 | 677 | 790 | 676 |
Basic: | ||||
Net income (loss), per basic share | $ (0.20) | $ (0.57) | $ (0.73) | $ (0.98) |
Diluted: | ||||
Net income (loss), per diluted share | $ (0.20) | $ (0.57) | $ (0.73) | $ (0.98) |
Acquisition (Details)
Acquisition (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2016USD ($)aBoe | Jun. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | |
Business Acquisition [Line Items] | ||||
Payments to Acquire Businesses, Gross | $ 89 | $ 0 | ||
Gas and Oil Acres, Undeveloped and Developed, Net | a | 61,000 | |||
Production, Barrels of Oil Equivalents | Boe | 9,000 | |||
PayRock Energy Holdings [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Consideration Transferred | $ 888 | |||
Payments to Acquire Businesses, Gross | $ 89 |
Dispositions Dispositions (Deta
Dispositions Dispositions (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2016 | Aug. 31, 2015 | Apr. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Proceeds from Sale of Oil and Gas Property and Equipment | $ 758 | $ 2 | |||||
Wyoming Upstream and Midstream Assets [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Proceeds from Sale of Oil and Gas Property and Equipment | $ 870 | ||||||
Shenandoah in Gulf of Mexico, Piceance in Colorado, and West Texas [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Proceeds from Sale of Oil and Gas Property and Equipment | $ 80 | ||||||
East Texas/North Louisiana and Wilburton Assets [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Proceeds from Sale of Oil and Gas Property and Equipment | $ 100 | ||||||
Gain (Loss) on Sale of Assets and Asset Impairment Charges | $ (1) | $ 44 | |||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Wyoming Upstream and Midstream Assets [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Proceeds from Sale of Oil and Gas Property and Equipment | $ 870 | ||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Wyoming Upstream and Midstream Assets Sold [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Proceeds from Sale of Oil and Gas Property and Equipment | 690 | ||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | 266 | ||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Shenandoah in Gulf of Mexico, Piceance in Colorado, and West Texas [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Proceeds from Sale of Oil and Gas Property and Equipment | $ 80 | ||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | (48) | ||||||
Disposal Group, Including Discontinued Operation, Working Capital Interest To Be Disposed Of | 10.00% | ||||||
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | Wynoming Upstream and Midstream Assets HFS [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Disposal Group, Including Discontinued Operation, Assets | 104 | 104 | |||||
Disposal Group, Including Discontinued Operation, Liabilities | $ 4 | $ 4 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||||||
Segment Reporting Information [Line Items] | |||||||||
Sales and other operating revenues | $ 870 | $ 1,307 | $ 1,584 | $ 2,587 | |||||
Marketing revenues | 89 | 183 | 147 | 387 | |||||
Total revenues | 959 | 1,490 | 1,731 | 2,974 | |||||
Income from equity method investments | 37 | 26 | 51 | 62 | |||||
Net gain ( loss) on disposal of assets and other income | 306 | 15 | 250 | 27 | |||||
Production expenses | 350 | 450 | 678 | 894 | |||||
Marketing costs | 88 | 182 | 146 | 387 | |||||
Exploration Expenses | 189 | 111 | 213 | 201 | |||||
Depreciation, depletion and amortization | 561 | 751 | 1,170 | 1,572 | |||||
Impairments | 0 | 44 | 1 | 44 | |||||
Other expenses | [1] | 227 | 249 | 487 | 527 | ||||
Taxes other than income | 39 | 78 | 87 | 145 | |||||
Net interest and other | 86 | 58 | 171 | 105 | |||||
Income tax provision (benefit) | (68) | (6) | (344) | (150) | |||||
Segment income (loss) /Loss from continuing operations | (170) | (386) | (577) | (662) | |||||
Capital expenditures | [2] | 177 | 678 | 536 | 1,780 | ||||
Deferred Income Tax Expense (Benefit) | (392) | (185) | |||||||
North America Exploration and Production [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Sales and other operating revenues | 617 | 993 | 1,110 | 1,843 | |||||
Marketing revenues | 53 | 110 | 84 | 288 | |||||
Total revenues | 670 | 1,103 | 1,194 | 2,131 | |||||
Income from equity method investments | 0 | 0 | 0 | 0 | |||||
Net gain ( loss) on disposal of assets and other income | 2 | 11 | 3 | 11 | |||||
Production expenses | 129 | 179 | 263 | 381 | |||||
Marketing costs | 52 | 112 | 84 | 292 | |||||
Exploration Expenses | 37 | 91 | 55 | 126 | |||||
Depreciation, depletion and amortization | 433 | 634 | 920 | 1,317 | |||||
Impairments | 0 | 1 | 0 | ||||||
Other expenses | [1] | 97 | 99 | 215 | 216 | ||||
Taxes other than income | 35 | 67 | 77 | 128 | |||||
Net interest and other | 0 | 0 | 0 | 0 | |||||
Income tax provision (benefit) | (41) | (23) | (153) | (112) | |||||
Segment income (loss) /Loss from continuing operations | (70) | (45) | (265) | (206) | |||||
Capital expenditures | [2] | 153 | 551 | 468 | 1,484 | ||||
International Exploration and Production [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Sales and other operating revenues | 159 | 211 | 255 | 393 | |||||
Marketing revenues | 23 | 30 | 38 | 56 | |||||
Total revenues | 182 | 241 | 293 | 449 | |||||
Income from equity method investments | 37 | 26 | 51 | 62 | |||||
Net gain ( loss) on disposal of assets and other income | 7 | 4 | 13 | 14 | |||||
Production expenses | 56 | 64 | 109 | 131 | |||||
Marketing costs | 23 | 29 | 37 | 54 | |||||
Exploration Expenses | 4 | 20 | 10 | 75 | |||||
Depreciation, depletion and amortization | 68 | 71 | 118 | 135 | |||||
Impairments | 0 | 0 | 0 | ||||||
Other expenses | [1] | 22 | 19 | 38 | 42 | ||||
Taxes other than income | 0 | 0 | 0 | 0 | |||||
Net interest and other | 0 | 0 | 0 | 0 | |||||
Income tax provision (benefit) | (2) | 27 | (14) | 24 | |||||
Segment income (loss) /Loss from continuing operations | 55 | 41 | 59 | 64 | |||||
Capital expenditures | [2] | 12 | 99 | 44 | 245 | ||||
Oil Sands Mining Segment [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Sales and other operating revenues | 185 | 147 | 333 | 372 | |||||
Marketing revenues | 13 | 43 | 25 | 43 | |||||
Total revenues | 198 | 190 | 358 | 415 | |||||
Income from equity method investments | 0 | 0 | 0 | 0 | |||||
Net gain ( loss) on disposal of assets and other income | 1 | 0 | 1 | 1 | |||||
Production expenses | 165 | 207 | 306 | 382 | |||||
Marketing costs | 13 | 41 | 25 | 41 | |||||
Exploration Expenses | 7 | 0 | 7 | 0 | |||||
Depreciation, depletion and amortization | 49 | 35 | 109 | 97 | |||||
Impairments | 0 | 0 | 0 | ||||||
Other expenses | [1] | 9 | 9 | 16 | 18 | ||||
Taxes other than income | 4 | 5 | 9 | 10 | |||||
Net interest and other | 0 | 0 | 0 | 0 | |||||
Income tax provision (benefit) | (10) | (30) | (27) | (36) | |||||
Segment income (loss) /Loss from continuing operations | (38) | (77) | (86) | (96) | |||||
Capital expenditures | [2] | 7 | 16 | 16 | 37 | ||||
Corporate and Other [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Sales and other operating revenues | [3] | (91) | (44) | (114) | (21) | ||||
Marketing revenues | 0 | 0 | 0 | 0 | |||||
Total revenues | (91) | (44) | (114) | (21) | |||||
Income from equity method investments | 0 | 0 | 0 | 0 | |||||
Net gain ( loss) on disposal of assets and other income | 296 | [4] | 0 | 233 | [5] | 1 | |||
Production expenses | 0 | 0 | 0 | 0 | |||||
Marketing costs | 0 | 0 | 0 | 0 | |||||
Exploration Expenses | 141 | [6] | 0 | 141 | [6] | 0 | |||
Depreciation, depletion and amortization | 11 | 11 | 23 | 23 | |||||
Impairments | 44 | [7] | 0 | 44 | [7] | ||||
Other expenses | 99 | [8] | 122 | [1],[9] | 218 | [1],[10] | 251 | [1],[11] | |
Taxes other than income | 0 | 6 | 1 | 7 | |||||
Net interest and other | 86 | 58 | 171 | 105 | |||||
Income tax provision (benefit) | (15) | 20 | [12] | (150) | (26) | [12] | |||
Segment income (loss) /Loss from continuing operations | (117) | (305) | (285) | (424) | |||||
Capital expenditures | [2] | 5 | 12 | 8 | 14 | ||||
Workforce reduction | 8 | 43 | |||||||
United States and Foreign Pension Plans Defined Benefit [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net settlement loss | 31 | 64 | 79 | $ 81 | [13] | ||||
United States and Foreign Pension Plans Defined Benefit [Member] | Corporate and Other [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net settlement loss | [13] | $ 31 | 64 | $ 79 | |||||
Alberta Government [Member] | Foreign Tax Authority [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Deferred Income Tax Expense (Benefit) | 135 | ||||||||
Deferred Foreign Income Tax Expense (Benefit) | $ 135 | ||||||||
[1] | Includes other operating expenses and general and administrative expenses. | ||||||||
[2] | Includes accruals. | ||||||||
[3] | Unrealized loss on commodity derivative instruments. | ||||||||
[4] | Primarily related to partial sale of Wyoming upstream and midstream assets. (See note 6.) | ||||||||
[5] | Related to net gain on disposal of assets (see Note 6) | ||||||||
[6] | Impairments associated with decision to not drill remaining Gulf of Mexico undeveloped leases | ||||||||
[7] | Proved property impairments (See Note 13). | ||||||||
[8] | Includes pension settlement loss of $31 million (See note 8). | ||||||||
[9] | Includes pension settlement loss of $64 million (see Note 8). | ||||||||
[10] | Includes pension settlement loss of $79 million and severance related expenses associated with workforce reductions of $8 million (see Note 8) | ||||||||
[11] | Includes pension settlement loss of $81 million and severance related expenses associated with workforce reductions of $43 million (see Note 8). | ||||||||
[12] | Includes $135 million of deferred tax expense related to Alberta provincial corporate tax rate increase (see Note 9) | ||||||||
[13] | Settlements are recognized as they occur, once it is probable that lump sum payments from a plan for a given year will exceed the plan's total service and interest cost for that year. |
Defined Benefit Postretiremen44
Defined Benefit Postretirement Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | ||||||
Pension and Other Postretirement Benefit Contributions [Abstract] | ||||||||||
Pension Contributions | $ 30 | |||||||||
Defined Benefit Plan, Benefits Paid | 37 | |||||||||
Other Postretirement Benefits Payments | 10 | |||||||||
Scenario, Forecast [Member] | ||||||||||
Pension and Other Postretirement Benefit Contributions [Abstract] | ||||||||||
Defined Benefit Plan, Estimated Future Employer Contributions in Current Fiscal Year | $ 34 | |||||||||
United States and Foreign Pension Plans Defined Benefit [Member] | ||||||||||
Defined Benefit Plan Net Periodic Benefit Cost [Line Items] | ||||||||||
Service cost | $ 6 | $ 12 | 12 | $ 24 | ||||||
Interest cost | 10 | 13 | 21 | 27 | ||||||
Expected return on plan assets | (13) | (17) | (28) | (36) | ||||||
Amortization: | ||||||||||
- prior service cost (credit) | (3) | (2) | (5) | (1) | ||||||
-actuarial loss (gain) | 4 | 7 | 7 | 14 | ||||||
Net settlement loss | 31 | 64 | 79 | 81 | [1] | |||||
Defined Benefit Plan, Curtailments | [2] | 0 | 0 | 0 | 1 | |||||
Net periodic benefit cost | 35 | 77 | 86 | 110 | ||||||
Other Postretirement Benefit Plans Defined Benefit [Member] | ||||||||||
Defined Benefit Plan Net Periodic Benefit Cost [Line Items] | ||||||||||
Service cost | 1 | 1 | 2 | 2 | ||||||
Interest cost | 2 | 2 | 5 | 5 | ||||||
Expected return on plan assets | 0 | 0 | 0 | 0 | ||||||
Amortization: | ||||||||||
- prior service cost (credit) | (1) | (1) | (2) | (2) | ||||||
-actuarial loss (gain) | 0 | 0 | 0 | 0 | ||||||
Net settlement loss | [1] | 0 | 0 | 0 | 0 | |||||
Defined Benefit Plan, Curtailments | 0 | [2] | 2 | [2] | 0 | [2] | (4) | |||
Net periodic benefit cost | $ 2 | $ 4 | $ 5 | $ 1 | ||||||
[1] | Settlements are recognized as they occur, once it is probable that lump sum payments from a plan for a given year will exceed the plan's total service and interest cost for that year. | |||||||||
[2] | Related to workforce reductions, which reduced the future expected years of service for employees participating in the plans |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 29, 2016 | |
Income Tax Contingency [Line Items] | ||||
Effective Income Tax Rate Reconciliation, Percent | 37.00% | 18.00% | ||
Effective income tax rate excluding Libya | 36.00% | 15.00% | ||
Foreign Tax Authority [Member] | Alberta Government [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Effective Income Tax Rate Reconciliation, Provincial Corporate Tax Rate | 12.00% | 10.00% | ||
Deferred Foreign Income Tax Expense (Benefit) | $ 135 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Liquid hydrocarbons natural gas and bitumen | $ 31 | $ 35 |
Supplies and other items | 241 | 278 |
Total inventories, at cost | $ 272 | $ 313 |
Property, Plant and Equipment47
Property, Plant and Equipment (Details) Boe in Millions, $ in Millions | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($)Boe |
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 25,657 | $ 27,061 |
LIBYAN ARAB JAMAHIRIYA | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 775 | |
Proved Developed and Undeveloped Reserves, Net (BOE) | Boe | 235 | |
North America Exploration and Production [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 13,965 | $ 15,226 |
International Exploration and Production [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 2,479 | 2,533 |
Oil Sands Mining Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 9,101 | 9,197 |
Corporate [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 112 | $ 105 |
Property, Plant and Equipment P
Property, Plant and Equipment Property, Plant and Equipment (Details 2) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Capitalized Exploratory Well Costs [Abstract] | ||
Capitalized Exploratory Well Costs that Have Been Capitalized for Period Greater than One Year After Completion of Drilling | $ 118 | $ 85 |
Capitalized Exploratory Well Cost, Period Increase (Decrease) | $ 33 |
Fair Value Measurements (Detail
Fair Value Measurements (Details-Recurring) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | |||
Goodwill | $ 115 | $ 115 | |
Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | |||
Derivative Assets | 18 | 59 | |
Derivative Liability | 70 | 1 | |
Fair Value, Measurements, Recurring [Member] | Commodity Contract [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | |||
Derivative Assets | [1] | 6 | 51 |
Derivative Liability | [1] | 70 | 1 |
Fair Value, Measurements, Recurring [Member] | Interest rate [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | |||
Derivative Assets | 12 | 8 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | |||
Derivative Assets | 0 | 0 | |
Derivative Liability | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Commodity Contract [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | |||
Derivative Assets | [1] | 0 | 0 |
Derivative Liability | [1] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Interest rate [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | |||
Derivative Assets | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | |||
Derivative Assets | 18 | 59 | |
Derivative Liability | 70 | 1 | |
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 2 [Member] | Commodity Contract [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | |||
Derivative Assets | [1] | 6 | 51 |
Derivative Liability | [1] | 70 | 1 |
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 2 [Member] | Interest rate [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | |||
Derivative Assets | 12 | 8 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | |||
Derivative Assets | 0 | 0 | |
Derivative Liability | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Commodity Contract [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | |||
Derivative Assets | [1] | 0 | 0 |
Derivative Liability | [1] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Interest rate [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | |||
Derivative Assets | $ 0 | $ 0 | |
[1] | Derivative instruments are recorded on a net basis in the company's balance sheet (see Note 14). |
Fair Value Measurements (Deta50
Fair Value Measurements (Details 2-Nonrecurring) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Financial Statement [Line Items] | ||||
Goodwill, Impairment Loss | $ 0 | |||
Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Financial Statement [Line Items] | ||||
Property, Plant, and Equipment, Fair Value Disclosure | $ 0 | $ 17 | 0 | $ 17 |
Assets, Fair Value Adjustment | $ 0 | $ 44 | $ 1 | $ 44 |
Fair Value Measurements (Deta51
Fair Value Measurements (Details 3-Reported) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 | |
Fair Value [Member] | |||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | |||
Other noncurrent financial assets | $ 198 | $ 104 | |
Total financial assets | 198 | 104 | |
Financial liabilities | |||
Other current financial liabilities | 25 | 34 | |
Long-term debt, including current portion | [1] | 7,186 | 6,723 |
Deferred credits and other financial liabilities | 121 | 97 | |
Financial Liabilities Fair Value Disclosure | 7,332 | 6,854 | |
Carrying Amount [Member] | |||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | |||
Other noncurrent financial assets | 206 | 118 | |
Total financial assets | 206 | 118 | |
Financial liabilities | |||
Other current financial liabilities | 24 | 33 | |
Long-term debt, including current portion | [1] | 7,291 | 7,291 |
Deferred credits and other financial liabilities | 117 | 95 | |
Financial Liabilities Fair Value Disclosure | $ 7,432 | $ 7,419 | |
[1] | Excludes capital leases, debt issuance costs and interest rate swap adjustments. |
Derivatives (Details-BS)
Derivatives (Details-BS) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ 70 | |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 64 | |
Derivative Liability, Fair Value, Gross Asset | 6 | |
Commodity Contract [Member] | Other Noncurrent Assets [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 31 | |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 31 | |
Derivative Liability, Fair Value, Gross Asset | 0 | |
Commodity Contract [Member] | Other Current Liabilities [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 39 | |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 33 | |
Derivative Liability, Fair Value, Gross Asset | 6 | |
Commodity Contract [Member] | Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 51 | |
Derivative Asset, Fair Value, Gross Liability | 1 | |
Derivative Asset, Fair Value, Net | 50 | |
Fair Value Hedging [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 12 | |
Derivative Asset, Fair Value, Gross Liability | 0 | |
Derivative Asset, Fair Value, Net | 12 | |
Fair Value Hedging [Member] | Interest rate [Member] | Other Noncurrent Assets [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 12 | 8 |
Derivative Asset, Fair Value, Gross Liability | 0 | 0 |
Derivative Asset, Fair Value, Net | $ 12 | $ 8 |
Derivatives (Details 2-Fair Val
Derivatives (Details 2-Fair Value Hedges) - Fair Value Hedging [Member] - Designated as Hedging Instrument [Member] - Interest Rate Contract [Member] - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Debentures Due 2017 [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 600 | $ 600 |
Weighted-average, LIBOR-based, floating rate | 4.94% | 4.73% |
Debentures Due 2018 [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 300 | $ 300 |
Weighted-average, LIBOR-based, floating rate | 4.77% | 4.66% |
Derivatives (Details 3-Fair Val
Derivatives (Details 3-Fair Value Hedges IS & OCI) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Fair Value Hedge Ineffectiveness, Net | $ 0 | $ 0 | ||
Net interest and other [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in unrealized gain (loss) on hedged item in fair value hedge | $ 0 | $ 2 | (4) | (3) |
Interest rate [Member] | Net interest and other [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivative instruments recognized in income | $ 0 | $ (2) | $ 4 | $ 3 |
Derivatives Derivatives (Detail
Derivatives Derivatives (Details 4-Non Hedges Commodity) (Details) | Jun. 30, 2016BBL / DaysMMBTU_per_day$ / bbl$ / MMBTU | |
Crude Oil Three-Way Collars For Third Quarter of Year 1 [Member] | ||
Derivative [Line Items] | ||
Volume | BBL / Days | 47,000 | |
Ceiling Price | 55.37 | |
Floor Price | 50.23 | |
Sold Put Price | 40.96 | |
Crude Oil Three-Way Collars for Fourth Quarter of Year 1 | ||
Derivative [Line Items] | ||
Volume | BBL / Days | 47,000 | |
Ceiling Price | 55.37 | |
Floor Price | 50.23 | |
Sold Put Price | 40.96 | |
Crude Oil Three-Way Collars For Year 2 [Member] | ||
Derivative [Line Items] | ||
Volume | BBL / Days | 0 | |
Ceiling Price | 0 | |
Floor Price | 0 | |
Sold Put Price | 0 | |
Crude Oil Options For the Third Quarter of Year 1 [Member] | ||
Derivative [Line Items] | ||
Volume | BBL / Days | 10,000 | [1] |
Option Price | 72.39 | [1] |
Crude Oil Options For the Fourth Quarter of Year 1 [Member] | ||
Derivative [Line Items] | ||
Volume | BBL / Days | 10,000 | [1] |
Option Price | 72.39 | [1] |
Crude Oil Options For Year 2 [Member] | ||
Derivative [Line Items] | ||
Volume | BBL / Days | 35,000 | [1] |
Option Price | 61.91 | [1] |
Crude Oil Swaps For the Third Quarter of Year 1 [Member] | ||
Derivative [Line Items] | ||
Volume | BBL / Days | 10,000 | |
Ceiling Price | 50 | |
Floor Price | 41.55 | |
Crude Oil Swaps For the Fourth Quarter of Year 1 [Member] | ||
Derivative [Line Items] | ||
Volume | BBL / Days | 10,000 | |
Ceiling Price | 50 | |
Floor Price | 41.55 | |
Crude Oil Swaps For Year 2 [Member] | ||
Derivative [Line Items] | ||
Volume | BBL / Days | 0 | |
Natural Gas Three-Way Collars For the Third Quarter of Year 1 [Member] | ||
Derivative [Line Items] | ||
Volume | MMBTU_per_day | 20,000 | [2] |
Ceiling Price | $ / MMBTU | 2.93 | [2] |
Floor Price | $ / MMBTU | 2.50 | [2] |
Sold Put Price | $ / MMBTU | 2 | [2] |
Natural Gas Three-Way Collars For the Fourth Quarter of Year 1 [Member] | ||
Derivative [Line Items] | ||
Volume | MMBTU_per_day | 20,000 | [2] |
Ceiling Price | $ / MMBTU | 2.93 | [2] |
Floor Price | $ / MMBTU | 2.50 | [2] |
Sold Put Price | $ / MMBTU | 2 | [2] |
Natural Gas Three-Way Collars For Year 2 [Member] | ||
Derivative [Line Items] | ||
Volume | MMBTU_per_day | 40,000 | [2] |
Ceiling Price | $ / MMBTU | 3.28 | [2] |
Floor Price | $ / MMBTU | 2.75 | [2] |
Sold Put Price | $ / MMBTU | 2.25 | [2] |
Swaption [Member] | ||
Derivative [Line Items] | ||
Swap Price | 2.93 | |
Volume | MMBTU_per_day | 20,000 | |
[1] | Call options settle monthly. | |
[2] | On our 2016 collars, the counterparty has the option to execute fixed-price swaps (swaptions) at a weighted average price of $2.93 per MMBtu indexed to NYMEX Henry Hub, which is exercisable on December 22, 2016. If counterparty exercises, the term of the fixed-price swaps would be for the calendar year 2017 and, if all such options are exercised, 20,000 MMBtu per day. |
Derivatives Derivatives (Deta56
Derivatives Derivatives (Details 5-Non Hedges) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net cash received (paid) in settlement of derivative instruments | $ 14 | $ 4 | $ 46 | $ 4 |
Not Designated as Hedging Instrument [Member] | Commodity [Member] | Sales and other operating revenues [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ (88) | $ (43) | $ (90) | $ (17) |
Incentive Based Compensation (D
Incentive Based Compensation (Details) | 6 Months Ended | |
Jun. 30, 2016$ / sharesshares | ||
Stock Options | ||
Beginning year stock option awards | shares | 12,665,419 | |
Granted stock option awards | shares | 1,680,000 | [1] |
Exercised stock option awards | shares | 0 | |
Canceled stock option awards | shares | (973,295) | |
End of period stock option awards | shares | 13,372,124 | |
Beginning year weighted average exercise price | $ 29.97 | |
Granted weighted average exercise price | 7.22 | |
Exercises weighted average exercise price | 0 | |
Canceled weighted average exercise price | 25.76 | |
End of period weighted average exercise price | 27.42 | |
Stock options weighted average grant date fair value | $ 1.97 | |
[1] | The weighted average grant date fair value of stock option awards granted was $1.97 per share. |
Incentive Based Compensation 58
Incentive Based Compensation (Details 2-Restricted) | 6 Months Ended |
Jun. 30, 2016$ / sharesshares | |
Restricted Stock | |
Beginning year unvested restricted stock | shares | 4,017,344 |
Granted restricted stock | shares | 5,233,984 |
Vested restricted stock | shares | (1,148,953) |
Forfeited restricted stock | shares | (557,051) |
End of period unvested restricted stock | shares | 7,545,324 |
Beginning year weighted average grant date fair value unvested restricted stock | $ / shares | $ 30.76 |
Granted restricted stock weighted average grant date fair value restricted stock | $ / shares | 7.91 |
Vested restricted stock weighted average grant date fair value restricted stock | $ / shares | 32.29 |
Forfeited restricted stock weighted average grant date fair value restricted stock | $ / shares | 23.20 |
End of period weighted average grant date fair value unvested restricted stock | $ / shares | $ 15.23 |
Incentive Based Compensation 59
Incentive Based Compensation (Details 3-Performance) - $ / shares | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 15.23 | $ 30.76 |
Performance Unit [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award Instruments Other Than Options Performance Unit Granted | 1,205,517 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 3.72 |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facility (Details) | Jun. 30, 2016USD ($) | Feb. 29, 2016USD ($) | Nov. 01, 2015USD ($) | Jun. 30, 2015USD ($) |
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, maximum borrowing capacity | $ 3,300,000,000 | $ 3,000,000,000 | ||
Line of Credit Facility, increase in borrowing capacity | $ 300,000,000 | |||
Ratio of indebtedness to net capital | 0.28 | |||
Maximum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Ratio of indebtedness to net capital | 0.65 | |||
Unsecured Debt [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Principal amount | $ 2,000,000,000 | |||
Senior Notes 0.90% [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Principal amount | $ 1,000,000,000 | |||
Interest rate | 0.90% |
Reclassifications out of Accu61
Reclassifications out of Accumulated Other Comprehensive Income Reclassifications out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Provision for income taxes | $ 68 | $ 6 | $ 344 | $ 150 |
Other insignificant, net of tax | (95) | (81) | (204) | (188) |
Total reclassifications | (170) | (386) | (577) | (662) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization of actuarial loss | (4) | (7) | (7) | (14) |
Net settlement loss | (31) | (64) | (79) | (81) |
Net curtailment gain (loss) | 0 | (2) | 0 | 3 |
Income before income taxes | (35) | (73) | (86) | (92) |
Provision for income taxes | 13 | 25 | 29 | 32 |
Total reclassifications | $ (22) | $ (48) | $ (57) | $ (60) |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | ||
Mar. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | |
Stockholders' Equity Attributable to Parent [Abstract] | |||
Shares Issued, Price Per Share | $ 7.65 | ||
Stock Issued During Period, Shares, New Issues | 166,750,000 | ||
Common Stock, Par or Stated Value Per Share | $ 1 | $ 1 | $ 1 |
Stock Issued | $ 1,236 |
Supplemental Cash Flow Inform63
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Net cash provided by (used in) operating activities included: | ||
Interest paid (net of amounts capitalized) | $ (177) | $ (143) |
Income taxes paid to taxing authorities | (61) | (165) |
Noncash investing activities: | ||
Asset retirement costs capitalized | 2 | 6 |
Asset retirement obligations assumed by buyer | $ 83 | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2016USD ($) | |
Scenario, Forecast [Member] | |
Subsequent Event [Line Items] | |
Termination payment | $ 113 |