Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 31, 2020 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-1513 | |
Entity Registrant Name (tagged on cover) | Marathon Oil Corporation | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 25-0996816 | |
Entity Address, Address Line One | 5555 San Felipe Street, | |
Entity Address, City or Town | Houston, | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77056-2723 | |
City Area Code | (713) | |
Local Phone Number | 629-6600 | |
Title of 12(b) Security | Common Stock, par value $1.00 | |
Trading Symbol | MRO | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 789,439,221 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2020 | |
Amendment Flag | false | |
Entity Central Index Key | 0000101778 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues and other income: | ||||
Revenues from contracts with customers | $ 490 | $ 1,381 | $ 1,514 | $ 2,581 |
Net gain (loss) on commodity derivatives | (70) | 16 | 132 | (75) |
Income (loss) from equity method investments | (152) | 31 | (164) | 42 |
Net gain (loss) on disposal of assets | (2) | (8) | 7 | 34 |
Other income | 6 | 13 | 13 | 48 |
Total revenues and other income | 272 | 1,433 | 1,502 | 2,630 |
Costs and expenses: | ||||
Production | 129 | 193 | 289 | 380 |
Shipping, handling and other operating | 105 | 170 | 249 | 324 |
Exploration | 26 | 26 | 54 | 85 |
Depreciation, depletion and amortization | 597 | 605 | 1,241 | 1,159 |
Impairments | 0 | 18 | 97 | 24 |
Taxes other than income | 30 | 79 | 96 | 151 |
General and administrative | 88 | 87 | 164 | 181 |
Total costs and expenses | 975 | 1,178 | 2,190 | 2,304 |
Income (loss) from operations | (703) | 255 | (688) | 326 |
Net interest and other | (69) | (64) | (133) | (113) |
Other net periodic benefit credit | 7 | 2 | 7 | 7 |
Income (loss) before income taxes | (765) | 193 | (814) | 220 |
Provision (benefit) for income taxes | (15) | 32 | (18) | (115) |
Net income (loss) | $ (750) | $ 161 | $ (796) | $ 335 |
Net income (loss) per share: | ||||
Basic (in dollars per share) | $ (0.95) | $ 0.20 | $ (1) | $ 0.41 |
Per diluted share: | ||||
Diluted (in dollars per share) | $ (0.95) | $ 0.20 | $ (1) | $ 0.41 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 790 | 813 | 793 | 817 |
Diluted (in shares) | 790 | 814 | 793 | 817 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ (750) | $ 161 | $ (796) | $ 335 |
Other comprehensive income (loss), net of tax | ||||
Change in actuarial loss and other for postretirement and postemployment plans | (42) | (9) | (42) | (13) |
Change in derivative hedges unrecognized loss | (4) | 0 | (26) | 0 |
Other comprehensive loss | (46) | (9) | (68) | (13) |
Comprehensive income (loss) | $ (796) | $ 152 | $ (864) | $ 322 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 522 | $ 858 |
Receivables, less reserve of $23 and $11 | 620 | 1,122 |
Inventories | 77 | 72 |
Derivative assets | 79 | 9 |
Other current assets | 107 | 74 |
Total current assets | 1,405 | 2,135 |
Equity method investments | 476 | 663 |
Property, plant and equipment, less accumulated depreciation, depletion and amortization of $19,216 and $18,003 | 16,424 | 17,000 |
Goodwill | 0 | 95 |
Other noncurrent assets | 262 | 352 |
Total assets | 18,567 | 20,245 |
Current liabilities: | ||
Accounts payable | 696 | 1,307 |
Payroll and benefits payable | 76 | 112 |
Accrued taxes | 77 | 118 |
Other current liabilities | 216 | 208 |
Total current liabilities | 1,065 | 1,745 |
Long-term debt | 5,503 | 5,501 |
Deferred tax liabilities | 171 | 186 |
Defined benefit postretirement plan obligations | 194 | 183 |
Asset retirement obligations | 242 | 243 |
Deferred credits and other liabilities | 217 | 234 |
Total liabilities | 7,392 | 8,092 |
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 shares (par value $1 per share, 1.925 billion shares authorized at June 30, 2020 and December 31, 2019) | 937 | 937 |
Held in treasury, at cost – 147 million shares and 141 million shares | (4,087) | (4,089) |
Additional paid-in capital | 7,143 | 7,207 |
Retained earnings | 7,145 | 7,993 |
Accumulated other comprehensive income | 37 | 105 |
Total stockholders’ equity | 11,175 | 12,153 |
Total liabilities and stockholders’ equity | $ 18,567 | $ 20,245 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Receivables reserve | $ 23 | $ 11 |
Property, plant and equipment, accumulated depreciation | $ 19,216 | $ 18,003 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 26,000,000 | 26,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 1,925,000,000 | 1,925,000,000 |
Common stock, shares issued (in shares) | 937,000,000 | 937,000,000 |
Held in treasury, shares (in shares) | 147,000,000 | 141,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Operating activities: | ||
Net income | $ (796) | $ 335 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 1,241 | 1,159 |
Impairments | 97 | 24 |
Exploratory dry well costs and unproved property impairments | 40 | 69 |
Net gain on disposal of assets | (7) | (34) |
Deferred income taxes | (14) | (33) |
Net (gain) loss on derivative instruments | (132) | 75 |
Net settlements of derivative instruments | 57 | 27 |
Pension and other post retirement benefits, net | (31) | (41) |
Stock-based compensation | 28 | 32 |
Equity method investments, net | 180 | 12 |
Changes in: | ||
Current receivables | 489 | (95) |
Inventories | (5) | 3 |
Current accounts payable and accrued liabilities | (456) | (158) |
Other current assets and liabilities | 46 | 119 |
All other operating, net | (27) | (182) |
Net cash provided by operating activities | 710 | 1,312 |
Investing activities: | ||
Additions to property, plant and equipment | (946) | (1,262) |
Additions to other assets | 12 | 42 |
Acquisitions, net of cash acquired | 3 | 0 |
Disposal of assets, net of cash transferred to the buyer | 9 | 69 |
Equity method investments - return of capital | 7 | 49 |
All other investing, net | 0 | (27) |
Net cash used in investing activities | (915) | (1,129) |
Financing activities: | ||
Purchases of common stock | (92) | (266) |
Dividends paid | (40) | (82) |
All other financing, net | 1 | (2) |
Net cash used in financing activities | (131) | (350) |
Effect of exchange rate on cash and cash equivalents | 0 | 1 |
Net decrease in cash and cash equivalents | (336) | (166) |
Cash and cash equivalents at beginning of period | 858 | 1,462 |
Cash and cash equivalents at end of period | 522 | 1,296 |
Total cash and cash equivalents | $ 522 | $ 1,296 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Millions | Total | Preferred Stock | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance at Dec. 31, 2018 | $ 12,128 | $ 0 | $ 937 | $ (3,816) | $ 7,238 | $ 7,706 | $ 63 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative-effect adjustment | (31) | (31) | |||||
Shares issued - stock-based compensation | 62 | 101 | (39) | ||||
Shares repurchased | (30) | (30) | |||||
Stock-based compensation | (50) | (50) | |||||
Net income | 174 | 174 | |||||
Other comprehensive loss | (4) | (4) | |||||
Dividends paid (per share amount of $0.05) | (41) | (41) | |||||
Ending balance at Mar. 31, 2019 | 12,208 | 0 | 937 | (3,745) | 7,149 | 7,808 | 59 |
Beginning balance at Dec. 31, 2018 | 12,128 | 0 | 937 | (3,816) | 7,238 | 7,706 | 63 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 335 | ||||||
Other comprehensive loss | (13) | ||||||
Ending balance at Jun. 30, 2019 | 12,101 | 0 | 937 | (3,984) | 7,170 | 7,928 | 50 |
Beginning balance at Mar. 31, 2019 | 12,208 | 0 | 937 | (3,745) | 7,149 | 7,808 | 59 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Shares issued - stock-based compensation | 2 | (3) | 5 | ||||
Shares repurchased | (236) | (236) | |||||
Stock-based compensation | 16 | 16 | |||||
Net income | 161 | 161 | |||||
Other comprehensive loss | (9) | (9) | |||||
Dividends paid (per share amount of $0.05) | (41) | (41) | |||||
Ending balance at Jun. 30, 2019 | 12,101 | 0 | 937 | (3,984) | 7,170 | 7,928 | 50 |
Beginning balance at Dec. 31, 2019 | 12,153 | 0 | 937 | (4,089) | 7,207 | 7,993 | 105 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Shares issued - stock-based compensation | 38 | 121 | (83) | ||||
Shares repurchased | (91) | (91) | |||||
Stock-based compensation | (22) | (22) | |||||
Net income | (46) | (46) | |||||
Other comprehensive loss | (22) | (22) | |||||
Dividends paid (per share amount of $0.05) | (40) | (40) | |||||
Ending balance at Mar. 31, 2020 | 11,958 | 0 | 937 | (4,059) | 7,102 | 7,895 | 83 |
Beginning balance at Dec. 31, 2019 | 12,153 | 0 | 937 | (4,089) | 7,207 | 7,993 | 105 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | (796) | ||||||
Other comprehensive loss | (68) | ||||||
Ending balance at Jun. 30, 2020 | 11,175 | 0 | 937 | (4,087) | 7,143 | 7,145 | 37 |
Beginning balance at Mar. 31, 2020 | 11,958 | 0 | 937 | (4,059) | 7,102 | 7,895 | 83 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Shares issued - stock-based compensation | (8) | (28) | 20 | ||||
Stock-based compensation | 21 | 21 | |||||
Net income | (750) | (750) | |||||
Other comprehensive loss | (46) | (46) | |||||
Ending balance at Jun. 30, 2020 | $ 11,175 | $ 0 | $ 937 | $ (4,087) | $ 7,143 | $ 7,145 | $ 37 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Dividends paid (in dollars per share) | $ 0 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.10 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 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. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2019 Annual Report on Form 10-K. The results of operations for the second quarter and first six months of 2020 are not necessarily indicative of the results to be expected for the full year. |
Accounting Standards
Accounting Standards | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Accounting Standards | Accounting Standards Recently Adopted Financial instruments – credit losses 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. On January 1, 2020 we adopted this standard using the modified retrospective transition method through a cumulative-effect adjustment of $12 million to retained earnings as of the beginning of the adoption period. The standard requires the use of a forward-looking “expected loss” model as opposed to the “incurred loss” model used previously. See Note 8 for more information on credit losses. |
Income (Loss) and Dividends per
Income (Loss) and Dividends per Common Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Income (Loss) and Dividends per Common Share | Income (loss) and Dividends per Common Share Basic income (loss) per share is based on the weighted average number of common shares outstanding. Diluted income (loss) per share assumes exercise of stock options in all periods, provided the effect is not antidilutive. The per share calculations below exclude 7 million of stock options for each of the three and six months ended June 30, 2020 and 6 million of stock options for each of the three and six months ended June 30, 2019 that were antidilutive. Three Months Ended June 30, Six Months Ended June 30, (In millions, except per share data) 2020 2019 2020 2019 Net income (loss) $ (750) $ 161 $ (796) $ 335 Weighted average common shares outstanding 790 813 793 817 Effect of dilutive securities — 1 — — Weighted average common shares, diluted 790 814 793 817 Net income (loss) per share: Basic $ (0.95) $ 0.20 $ (1.00) $ 0.41 Diluted $ (0.95) $ 0.20 $ (1.00) $ 0.41 Dividends per share $ — $ 0.05 $ 0.05 $ 0.10 |
Dispositions
Dispositions | 6 Months Ended |
Jun. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Dispositions | Dispositions International Segment In July 2019, we closed on the sale of our U.K. business (Marathon Oil U.K. LLC and Marathon Oil West of Shetlands Limited) for proceeds of approximately $95 million which reflects the assumption by RockRose Energy PLC (the buyer) of the U.K. business’ cash equivalent balance and working capital balance as of year-end 2018. Our income before income taxes relating to our U.K. business for the three and six months ended June 30, 2019, was $18 million and $28 million. In the second quarter of 2019, we closed on the sale of our 15% non-operated interest in the Atrush block in Kurdistan for proceeds of $63 million, before closing adjustments. |
Revenues
Revenues | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues The majority of our revenues are derived from the sale of crude oil and condensate, NGLs and natural gas under spot and term agreements with our customers in the United States and various international locations. As of June 30, 2020 and December 31, 2019, receivables from contracts with customers, included in receivables, less reserves were $487 million and $837 million, respectively. The following tables present our revenues from contracts with customers disaggregated by product type and geographic areas for the three and six months ended June 30 as follows: United States Three Months Ended June 30, 2020 (In millions) Eagle Ford Bakken Oklahoma Northern Delaware Other U.S. Total Crude oil and condensate $ 142 $ 147 $ 32 $ 33 $ 7 $ 361 Natural gas liquids 16 3 13 4 1 37 Natural gas 20 5 24 4 1 54 Other 1 — — — 9 10 Revenues from contracts with customers $ 179 $ 155 $ 69 $ 41 $ 18 $ 462 Three Months Ended June 30, 2019 (In millions) Eagle Ford Bakken Oklahoma Northern Delaware Other U.S. Total Crude oil and condensate $ 350 $ 453 $ 111 $ 77 $ 30 $ 1,021 Natural gas liquids 30 15 31 7 1 84 Natural gas 32 6 36 1 4 79 Other 1 — — — 15 16 Revenues from contracts with customers $ 413 $ 474 $ 178 $ 85 $ 50 $ 1,200 Six Months Ended June 30, 2020 (In millions) Eagle Ford Bakken Oklahoma Northern Delaware Other U.S. Total Crude oil and condensate $ 449 $ 477 $ 116 $ 107 $ 40 $ 1,189 Natural gas liquids 31 13 34 7 3 88 Natural gas 44 13 53 7 4 121 Other 3 — — — 31 34 Revenues from contracts with customers $ 527 $ 503 $ 203 $ 121 $ 78 $ 1,432 Six Months Ended June 30, 2019 (In millions) Eagle Ford Bakken Oklahoma Northern Delaware Other U.S. Total Crude oil and condensate $ 668 $ 825 $ 188 $ 141 $ 58 $ 1,880 Natural gas liquids 65 25 53 15 3 161 Natural gas 66 18 81 7 10 182 Other 3 — — — 36 39 Revenues from contracts with customers $ 802 $ 868 $ 322 $ 163 $ 107 $ 2,262 International Three Months Ended June 30, 2020 (In millions) E.G. Crude oil and condensate $ 20 Natural gas liquids 1 Natural gas 7 Revenues from contracts with customers $ 28 Three Months Ended June 30, 2019 (In millions) E.G. U.K. Other Int’l Total Crude oil and condensate $ 101 $ 51 $ 9 $ 161 Natural gas liquids 1 — — 1 Natural gas 9 4 — 13 Other — 6 — 6 Revenues from contracts with customers $ 111 $ 61 $ 9 $ 181 Six Months Ended June 30, 2020 (In millions) E.G. Crude oil and condensate $ 65 Natural gas liquids 2 Natural gas 15 Revenues from contracts with customers $ 82 Six Months Ended June 30, 2019 (In millions) E.G. U.K. Other Int’l Total Crude oil and condensate $ 148 $ 107 $ 19 $ 274 Natural gas liquids 2 1 — 3 Natural gas 16 12 — 28 Other — 14 — 14 Revenues from contracts with customers $ 166 $ 134 $ 19 $ 319 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We have two reportable operating segments. Both of these segments are organized and managed based upon geographic location and the nature of the products and services offered. • United States (“U.S.”) – explores for, produces and markets crude oil and condensate, NGLs and natural gas in the United States • International (“Int’l”) – explores for, produces and markets crude oil and condensate, NGLs and natural gas outside of the United States as well as produces and markets products manufactured from natural gas, such as LNG and methanol, in Equatorial Guinea (“E.G.”) Segment income represents income which excludes certain items not allocated to our operating segments, net of income taxes. A portion of our corporate and operations general and administrative support 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, impairments of proved property, goodwill, and equity method investments, unrealized gains or losses on commodity derivative instruments, effects of pension settlements and curtailments, or other items (as determined by the chief operating decision maker (“CODM”)) are not allocated to operating segments. Three Months Ended June 30, 2020 (In millions) U.S. Int’l Not Allocated to Segments Total Revenues from contracts with customers $ 462 $ 28 $ — $ 490 Net gain (loss) on commodity derivatives 26 — (96) (b) (70) Loss from equity method investments — — (152) (c) (152) Net loss on disposal of assets — — (2) (2) Other income 3 2 1 6 Less costs and expenses: Production 114 15 — 129 Shipping, handling and other operating 91 1 13 105 Exploration 26 — — 26 Depreciation, depletion and amortization 569 22 6 597 Taxes other than income 30 — — 30 General and administrative 32 3 53 (d) 88 Net interest and other — — 69 69 Other net periodic benefit credit — — (7) (e) (7) Income tax benefit (6) (5) (4) (15) Segment loss $ (365) $ (6) $ (379) $ (750) Total assets $ 16,791 $ 1,144 $ 632 $ 18,567 Capital expenditures (a) $ 137 $ — $ 2 $ 139 (a) Includes accruals. (b) Unrealized loss on commodity derivative instruments (See Note 15 ). (c) Partial impairment of investment in equity method investee (See N ot e 2 3 ). (d) Includes severance expenses associated with workforce reductions of $13 million. (e) Includes pension settlement loss of $14 million and pension curtailment gain of $17 million (See N ote 2 0 ). Three Months Ended June 30, 2019 (In millions) U.S. Int’l Not Allocated to Segments Total Revenues from contracts with customers $ 1,200 $ 181 $ — $ 1,381 Net gain on commodity derivatives 5 — 11 (b) 16 Income from equity method investments — 31 — 31 Net loss on disposal of assets — — (8) (c) (8) Other income 4 2 7 13 Less costs and expenses: Production 147 46 — 193 Shipping, handling and other operating 147 10 13 170 Exploration 26 — — 26 Depreciation, depletion and amortization 561 38 6 605 Impairments — — 18 (d) 18 Taxes other than income 79 — — 79 General and administrative 31 8 48 87 Net interest and other — — 64 64 Other net periodic benefit credit — (1) (1) (2) Income tax provision 3 17 12 32 Segment income (loss) $ 215 $ 96 $ (150) $ 161 Total assets $ 17,539 $ 2,913 $ 830 $ 21,282 Capital expenditures (a) $ 686 $ 10 $ 5 $ 701 (a) Includes accruals. (b) Unrealized gain on commodity derivative instruments (See Note 15 ). (c) Primarily related to the sale of certain non-core proved properties in our International segment (see No te 4 ). (d) Primarily as a result of the anticipated sale of non-core proved properties in our United States segment (See Note 11 ). Six Months Ended June 30, 2020 (In millions) U.S. Int’l Not Allocated to Segments Total Revenues from contracts with customers $ 1,432 $ 82 $ — $ 1,514 Net gain on commodity derivatives 57 — 75 (b) 132 Loss from equity method investments — (12) (152) (c) (164) Net gain on disposal of assets — — 7 7 Other income 7 4 2 13 Less costs and expenses: Production 257 32 — 289 Shipping, handling and other operating 231 4 14 249 Exploration 54 — — 54 Depreciation, depletion and amortization 1,186 43 12 1,241 Impairments — — 97 (d) 97 Taxes other than income 96 — — 96 General and administrative 64 7 93 (e) 164 Net interest and other — — 133 133 Other net periodic benefit credit — — (7) (f) (7) Income tax benefit (7) (5) (6) (18) Segment loss $ (385) $ (7) $ (404) $ (796) Total assets $ 16,791 $ 1,144 $ 632 $ 18,567 Capital expenditures (a) $ 698 $ — $ 9 $ 707 (a) Includes accruals. (b) Unrealized gain on commodity derivative instruments (See Note 15 ). (c) Partial impairment of investment in equity method investee (See N ote 23 ). (d) Includes the full impairment of the International reporting unit goodwill of $95 million (See N ote 14 ). (e) Includes severance expenses associated with workforce reductions of $13 million. (f) Includes pension settlement loss of $16 million and pension curtailment gain of $17 million (See Note 20 ). Six Months Ended June 30, 2019 (In millions) U.S. Int’l Not Allocated to Segments Total Revenue from contracts with customers $ 2,262 $ 319 $ — $ 2,581 Net gain (loss) on commodity derivatives 27 — (102) (b) (75) Income from equity method investments — 42 — 42 Net gain on disposal of assets — — 34 (c) 34 Other income 5 5 38 (d) 48 Less costs and expenses: Production 286 96 (2) 380 Shipping, handling and other operating 287 23 14 324 Exploration 85 — — 85 Depreciation, depletion and amortization 1,075 72 12 1,159 Impairments — — 24 (e) 24 Taxes other than income 153 — (2) 151 General and administrative 60 15 106 181 Net interest and other — — 113 113 Other net periodic benefit credit — (3) (4) (7) Income tax provision (benefit) 1 6 (122) (f) (115) Segment income (loss) $ 347 $ 157 $ (169) $ 335 Total assets $ 17,539 $ 2,913 $ 830 $ 21,282 Capital expenditures (a) $ 1,292 $ 15 $ 8 $ 1,315 (a) Includes accruals. (b) Unrealized loss on commodity derivative instruments (See Note 15 ). (c) Primarily related to the sale of our working interest in the Droshky field (Gulf of Mexico). (d) Primarily related to the indemnification of certain tax liabilities in connection with the 2010-2011 Federal Tax Audit (See Note 7 ). (e) Primarily as a result of anticipated sales of certain non-core proved properties in our International and United States segments. (f) Primarily relates to the settlement of the 2010-2011 Federal Tax Audit (See Note 7 ). |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
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 6 . For the three and six months ended June 30, 2020 and 2019, our effective income tax rates were as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Effective income tax rate (a) 2 % 17 % 2 % (52) % (a) In all periods presented, we maintained our valuation allowance on our net federal deferred tax assets in the U.S. The following items caused the effective income tax rates to be different from our U.S. statutory tax rate of 21% for 2020 and 2019: • For the three and six months ended June 30, 2020, the income tax rate was reduced below the statutory rate due to the valuation allowance on our net federal deferred tax assets in the U.S., which resulted in no federal tax benefit on the U.S. loss. • For the three and six months ended June 30, 2019, the mix of pre-tax income in our international operations reduced the annual effective tax rate below the statutory tax rate . Income tax rates for the six months ended June 30, 2019 were also impacted by the settlement of the 2010-2011 U.S. Federal Tax Audit (“IRS Audit”) in the first quarter of 2019, resulting in a tax benefit of $126 million. Additionally, in the first quarter of 2019, we recorded a non-cash deferred tax benefit of $18 million in the U.K. related to an internal restructuring. These two items are discrete to the first six months of 2019. Excluding these discrete adjustments, the effective income tax rate for the first six months of 2019 was an expense of 13%. In the first quarter of 2020, the U.S. enacted the Coronavirus Aid, Relief, and Economic Security Act , commonly referred to as the CARES Act. This legislation included certain provisions which accelerate income tax refunds, and as a result, in the first quarter of 2020, long term receivable balances related to alternative minimum tax credits were classified as short term. Subsequent to June 30, 2020, we received an $89 million cash refund related to these alternative minimum tax credits and interest. |
Credit Losses
Credit Losses | 6 Months Ended |
Jun. 30, 2020 | |
Credit Loss [Abstract] | |
Credit Losses | Credit Losses The majority of our receivables are from purchasers of commodities or joint interest owners in properties we operate, both of which are recorded at estimated or invoiced amounts and do not bear interest. The majority of these receivables have payment terms of 30 days or less. At the end of each reporting period, we assess the collectability of our receivables and estimate the expected credit losses using historical data, current market conditions and reasonable and supportable forecasts of future economic conditions. We are exposed to credit losses through the receivables generated from sales of crude oil, NGLs and natural gas to our customers. When dealing with the commodity purchasers, we conduct a credit review to assess each counterparty’s ability to pay. The credit review considers our expected billing exposure, timing for payment and the counterparty’s established credit rating with the rating agencies or our internal assessment of the counterparty’s creditworthiness based on our analysis of their financial statements. Our evaluation also considers contract terms and other factors, such as country and/or political risk. A credit limit is established for each counterparty based on the outcome of this review. We may require a bank letter of credit or a prepayment to mitigate credit risk. We monitor our ongoing credit exposure through active review of counterparty balances against contract terms and due dates. The expected credit losses related to receivables with the commodity purchasers were determined using the weighted average probability of default method. We also collect revenues from our non-operated joint properties where other oil and gas exploration and production companies operate the properties and market our share of production and remit payments to us. The current expected credit losses related to these receivables were determined using the loss rate method applied to aging pools. We are exposed to credit losses from joint interest billings to other joint interest owners for properties we operate. For this group of receivables, the expected credit losses are determined using the loss rate method applied to aging pools. Our counterparties in this group include numerous large, mid-size and small oil and gas exploration and production companies. Although we may have the ability to withhold future revenue disbursements to recover any non-payment of joint interest billings or require a prepayment of future costs through cash calls, our credit loss exposure with this group is more significant due to inherent ownership or billing adjustments. Also, some of our counterparties may experience liquidity problems and may not be able to meet their financial obligations to us. We expect that liquidity problems will increase in the future as a result of the recent demand and pricing decline for hydrocarbons. Our current-period provision reflects the anticipated effects caused by the recent market deterioration. Changes in the allowance for doubtful accounts balance for the six months ended were as follows: (In millions) June 30, 2020 Beginning balance as of January 1 $ 11 Cumulative-effect adjustment 12 Current period provision (a) 6 Recoveries of amounts previously written off (6) Ending balance as of June 30 $ 23 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Crude oil and natural gas are recorded at weighted average cost and carried at the lower of cost or net realizable 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. The continued volatility and future decline in crude oil and natural gas prices could affect the value of our inventories and result in future impairments. (In millions) June 30, 2020 December 31, 2019 Crude oil and natural gas $ 9 $ 10 Supplies and other items 68 62 Inventories $ 77 $ 72 |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment (In millions) June 30, 2020 December 31, 2019 United States $ 15,899 $ 16,427 International 449 493 Corporate 76 80 Net property, plant and equipment $ 16,424 $ 17,000 We had no exploratory well costs capitalized greater than one year as of June 30, 2020 and December 31, 2019. |
Impairments
Impairments | 6 Months Ended |
Jun. 30, 2020 | |
Impairment Expense [Abstract] | |
Impairments | Impairments During the first quarter of 2020, a global pandemic caused a substantial deterioration in the worldwide demand of hydrocarbons. The decreased demand, when coupled with an oversupplied market, caused a corresponding deterioration in hydrocarbon prices. We reviewed our long-lived assets for indicators of impairment during the first quarter by conducting a sensitivity analysis of the most impactful inputs to their undiscounted cash flows, including commodity prices, capital spend and reductions in production volumes to correspond with lower capital spending. Our review concluded that the carrying amounts of our long-lived assets are recoverable; however, further deterioration or a more sustained decline of commodity prices may result in impairment charges in future periods. We also reviewed our equity method investments for indicators of impairment. Equity method investments are assessed for impairment whenever changes in the facts and circumstances indicate a loss in value may have occurred. When a loss in value occurs that is deemed other than temporary, the carrying value of the equity method investment is written down to fair value. Our first quarter review concluded that any potential losses in values of our equity method investments were temporary because the underlying declines in both commodity prices and demand did not materially manifest until early March. However, during the second quarter of 2020, we did recognize an impairment related to one of our equity method investees as noted in the table below. The following table summarizes impairment charges of proved properties, goodwill and equity method investments and their corresponding fair values. Three Months Ended June 30, 2020 2019 (In millions) Fair Value Impairment Fair Value Impairment Long-lived assets held for use $ — $ — $ 19 $ 18 Equity method investment $ 142 $ 152 N/A $ — Six Months Ended June 30, 2020 2019 (In millions) Fair Value Impairment Fair Value Impairment Long-lived assets held for use $ — $ 2 $ 56 $ 24 Goodwill $ — $ 95 N/A $ — Equity method investment $ 142 $ 152 N/A $ — • 2020 – During the second quarter of 2020, the continuation of the depressed commodity prices caused us to perform a review of our equity method investments. Our review concluded that a loss of our investment value in one of our equity method investees was other than temporary. We recorded an impairment of $152 million based on the difference between our carrying value and the fair value of our investment. Our remaining investments in equity method investees did not experience losses in value that caused the fair values to be below their carrying values. We estimated the fair value of our equity method investment using an income approach, specifically utilizing a discounted cash flow analysis. The estimated fair value was based on significant inputs not observable in the market, such as the amount of gas processed by the plant, future commodity prices, forecasted operating expenses, discount rate, and estimated cash returned to shareholders. Collectively, these inputs represent Level 3 measurements. The impairment was recognized in income (loss) from equity method investments in our consolidated statements of income. The impairment caused us to incur a basis differential between the net book value of our investment and the amount of our underlying share of equity in the investee’s net assets. The amount of this basis differential is $126 million and will be accreted into income over the next 6.5 years, which is consistent with the remaining useful life of the investee’s primary assets. Impairments for the six months ended June 30, 2020 also included $95 million of goodwill impairment in the International reporting unit. See No te 1 4 for further information. • 2019 – During the six months ended June 30, 2019, we recorded proved property impairments of $24 million, as a result of the anticipated sales proceeds for certain non-core proved properties in our United States segment and the sale of our non-operated interest in the Atrush block (Kurdistan) in our International segment. The related fair value was measured using the market approach, based upon anticipated sales proceeds less costs to sell which resulted in a Level 2 classification. See Note 4 for further information. |
Asset Retirement Obligations
Asset Retirement Obligations | 6 Months Ended |
Jun. 30, 2020 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Asset Retirement Obligations Asset retirement obligations primarily consist of estimated costs to remove, dismantle and restore land or seabed at the end of oil and gas production operations. Changes in asset retirement obligations for the six months ended June 30 were as follows: June 30, (In millions) 2020 2019 Beginning balance as of January 1 $ 255 $ 1,145 Incurred liabilities, including acquisitions 2 18 Settled liabilities, including dispositions (3) (129) Accretion expense (included in depreciation, depletion and amortization) 6 26 Revisions of estimates (8) 11 Held for sale — (864) Ending balance as of June 30 $ 252 $ 207 June 30, 2020 • Ending balance includes $10 million classified as short-term at June 30, 2020. June 30, 2019 • Settled liabilities primarily relate to the sale of our working interest in the Droshky field (Gulf of Mexico), which closed during the first quarter of 2019. • Held for sale includes the asset retirement obligations of $966 million associated with the sale of our U.K. business, which was partially offset by settled liabilities for dispositions primarily related to the Droshky field in the first quarter of 2019. See Note 4 for discussion of the divestitures in further detail. • Ending balance includes $18 million classified as short-term at June 30, 2019. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Leases | Leases We enter into various lease agreements to support our operations including drilling rigs, well fracturing equipment, compressors, buildings, aircraft, vessels, vehicles and miscellaneous field equipment. We primarily act as a lessee in these transactions and all of our existing leases are classified as either short-term or long-term operating leases. Supplemental balance sheet information related to leases was as follows: (In millions) June 30, 2020 Operating Leases: Balance Sheet Location: Right-of-use asset Other noncurrent assets $ 153 Current portion of long-term lease liability Other current liabilities $ 83 Long-term lease liability Deferred credits and other liabilities $ 74 Our wholly-owned subsidiary, Marathon E.G. Production Limited, is a lessor for residential housing in Equatorial Guinea, which is occupied by EGHoldings, a related party equity method investee – see Note 24 . The lease was classified as an operating lease and expires in 2024, with a lessee option to extend through 2034. Lease payments are fixed for the entire duration of the agreement at approximately $6 million per year. Our lease income is reported in other income in our consolidated statements of income for all periods presented. The undiscounted cash flows to be received under this lease agreement are summarized below. (In millions) Operating Lease Future Cash Receipts 2020 $ 3 2021 6 2022 6 2023 6 2024 6 Thereafter 60 Total undiscounted cash flows $ 87 In 2018, we signed an agreement with an owner/lessor to construct and lease a new build-to-suit office building in Houston, Texas. The new Houston office location is expected to be completed in 2021. The lessor and other participants are providing financing for up to $380 million, to fund the estimated project costs. As of June 30, 2020, project costs incurred totaled approximately $87 million, including land acquisition and construction costs. The initial lease term is five years and will commence once construction is substantially complete and the new Houston office is ready for occupancy. At the end of the initial lease term, we can negotiate to extend the lease term for an additional five years, subject to the approval of the participants; purchase the property subject to certain terms and conditions; or remarket the property to an unrelated third party. The lease contains a residual value guarantee of approximately 89% of the total acquisition and construction costs. |
Leases | Leases We enter into various lease agreements to support our operations including drilling rigs, well fracturing equipment, compressors, buildings, aircraft, vessels, vehicles and miscellaneous field equipment. We primarily act as a lessee in these transactions and all of our existing leases are classified as either short-term or long-term operating leases. Supplemental balance sheet information related to leases was as follows: (In millions) June 30, 2020 Operating Leases: Balance Sheet Location: Right-of-use asset Other noncurrent assets $ 153 Current portion of long-term lease liability Other current liabilities $ 83 Long-term lease liability Deferred credits and other liabilities $ 74 Our wholly-owned subsidiary, Marathon E.G. Production Limited, is a lessor for residential housing in Equatorial Guinea, which is occupied by EGHoldings, a related party equity method investee – see Note 24 . The lease was classified as an operating lease and expires in 2024, with a lessee option to extend through 2034. Lease payments are fixed for the entire duration of the agreement at approximately $6 million per year. Our lease income is reported in other income in our consolidated statements of income for all periods presented. The undiscounted cash flows to be received under this lease agreement are summarized below. (In millions) Operating Lease Future Cash Receipts 2020 $ 3 2021 6 2022 6 2023 6 2024 6 Thereafter 60 Total undiscounted cash flows $ 87 In 2018, we signed an agreement with an owner/lessor to construct and lease a new build-to-suit office building in Houston, Texas. The new Houston office location is expected to be completed in 2021. The lessor and other participants are providing financing for up to $380 million, to fund the estimated project costs. As of June 30, 2020, project costs incurred totaled approximately $87 million, including land acquisition and construction costs. The initial lease term is five years and will commence once construction is substantially complete and the new Houston office is ready for occupancy. At the end of the initial lease term, we can negotiate to extend the lease term for an additional five years, subject to the approval of the participants; purchase the property subject to certain terms and conditions; or remarket the property to an unrelated third party. The lease contains a residual value guarantee of approximately 89% of the total acquisition and construction costs. |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill As of December 31, 2019, our consolidated balance sheet included goodwill of $95 million in the International reporting unit. Goodwill is tested for impairment on an annual basis, or between annual tests when events or changes in circumstances indicate the fair value of a reporting unit with goodwill may have been reduced below its carrying value. During the first quarter of 2020, a global pandemic caused a substantial deterioration in the worldwide demand of hydrocarbons. This demand loss resulted in a significant decline in hydrocarbon prices. The commensurate decline in our market capitalization during the first quarter indicated that it was more likely than not that the fair value of the International reporting unit was less than its carrying value. We estimated the fair value of our International 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 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, operating expenses and tax rates. The assumptions used in the income approach are consistent with those that management uses to make business decisions. These valuation methodologies represent Level 3 fair value measurements. Based on the results, we concluded our goodwill was fully impaired, and recorded an impairment of $95 million in the consolidated statements of income for the first quarter of 2020. June 30, (In millions) 2020 2019 Beginning balance as of January 1, gross $ 95 $ 97 Less: accumulated impairments — — Beginning balance, net 95 97 Dispositions — (2) Impairment (95) — Ending balance as of June 30, net $ — $ 95 |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives For further information regarding the fair value measurement of derivative instruments, see Note 16 . All of our commodity derivatives are subject to enforceable master netting arrangements or similar agreements under which we report net amounts. The following tables present the gross fair values of derivative instruments and the reported net amounts along with where they appear on the consolidated balance sheets. June 30, 2020 (In millions) Asset Liability Net Asset (Liability) Balance Sheet Location Not Designated as Hedges Commodity $ 100 $ 21 $ 79 Derivative assets Total Not Designated as Hedges $ 100 $ 21 $ 79 Cash Flow Hedges Interest Rate $ — $ 26 $ (26) Deferred credits and other liabilities Interest Rate 2 — 2 Other noncurrent assets Total Designated Hedges $ 2 $ 26 $ (24) Total $ 102 $ 47 $ 55 December 31, 2019 (In millions) Asset Liability Net Asset (Liability) Balance Sheet Location Not Designated as Hedges Commodity $ 9 $ 1 $ 8 Derivative assets Commodity 1 — 1 Other noncurrent assets Commodity — 5 (5) Other current liabilities Total Not Designated as Hedges $ 10 $ 6 $ 4 Cash Flow Hedges Interest Rate $ 2 $ — $ 2 Other noncurrent assets Total Designated Hedges $ 2 $ — $ 2 Total $ 12 $ 6 $ 6 Derivatives Not Designated as Hedges We have entered into multiple crude oil and natural gas derivatives indexed to the respective indices as noted in the table below, related to a portion of our forecasted United States sales through 2021. These derivatives consist of three-way collars, two-way collars, fixed price swaps, basis swaps and NYMEX roll basis swaps. 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 price plus the difference between the floor and the sold put price. Two-way collars only consist of a sold call (ceiling) and a purchased put (floor). These crude oil and natural gas derivatives were not designated as hedges. The following table sets forth outstanding derivative contracts as of June 30, 2020, and the weighted average prices for those contracts: 2020 2021 Third Quarter Fourth Quarter Full Year Crude Oil NYMEX WTI Three-Way Collars Volume (Bbls/day) 80,000 80,000 — Weighted average price per Bbl: Ceiling $ 64.40 $ 64.40 $ — Floor $ 55.00 $ 55.00 $ — Sold put $ 48.00 $ 48.00 $ — NYMEX WTI Two-Way Collars Volume (Bbls/day) 33,478 — — Weighted average price per Bbl: Ceiling $ 40.47 $ — $ — Floor $ 30.98 $ — $ — Fixed Price WTI Swaps Volume (Bbls/day) 10,000 — — Weighted average price per Bbl $ 32.77 $ — $ — Basis Swaps - Argus WTI Midland (a) Volume (Bbls/day) 15,000 15,000 — Weighted average price per Bbl $ (0.94) $ (0.94) $ — Basis Swaps - NYMEX WTI / ICE Brent (b) Volume (Bbls/day) 5,000 5,000 808 Weighted average price per Bbl $ (7.24) $ (7.24) $ (7.24) NYMEX Roll Basis Swaps Volume (Bbls/day) 60,000 30,000 — Weighted average price per Bbl $ (1.58) $ (0.81) $ — Natural Gas Two-Way Collars Volume (MMBtu/day) — — 62,329 Weighted average price per MMBtu: Ceiling $ — $ — $ 3.07 Floor $ — $ — $ 2.44 Basis Swaps - WAHA / HH (c) Volume (MMBtu/day) 10,000 10,000 — Weighted average price per MMBtu $ (0.37) $ (0.37) $ — (a) The basis differential price is indexed against Argus WTI Midland. (b) The basis differential price is indexed against Intercontinental Exchange (“ICE”) Brent and NYMEX WTI. (c) The basis differential price is indexed against Waha and NYMEX Henry Hub. The following table sets forth outstanding derivative contracts entered into between July 1 and August 5, 2020, and the weighted average prices for those contracts: 2020 2021 Third Quarter Fourth Quarter Full Year Crude Oil NYMEX WTI Two-Way Collars Volume (Bbls/day) 3,261 10,000 10,000 Weighted average price per Bbl: Ceiling $ 48.00 $ 48.65 $ 52.37 Floor $ 36.50 $ 37.00 $ 35.00 Natural Gas Two-Way Collars Volume (MMBtu/day) 66,304 150,000 50,000 Weighted average price per MMBtu: Ceiling $ 2.49 $ 2.62 $ 2.93 Floor $ 2.00 $ 2.13 $ 2.40 NGL Fixed Price Ethane Swaps Volume (MMBtu/day) 7,304 10,000 — Weighted average price per Bbl $ 8.78 $ 8.78 $ — The mark-to-market impact and settlement of our commodity derivative instruments appears in the table below and is reflected in net gain (loss) on commodity derivatives in the consolidated statements of income. Three Months Ended June 30, Six Months Ended June 30, (In millions) 2020 2019 2020 2019 Mark-to-market gain (loss) $ (96) $ 11 $ 75 $ (102) Net settlements of commodity derivative instruments $ 26 $ 5 $ 57 $ 27 Derivatives Designated as Cash Flow Hedges During 2020, we entered into forward starting interest rate swaps with a notional amount of $500 million to hedge variations in cash flows arising from fluctuations in the London Interbank Offered Rate (“LIBOR”) benchmark interest rate related to forecasted interest payments of a future debt issuance in 2022; and an additional $300 million of notional for our future debt issuance in 2025. We expect to refinance both of the debt maturities in 2022 and 2025. The swaps will terminate on or prior to the refinancing of the debt and the final value will be reclassified from accumulated other comprehensive income into earnings with each future interest payment. Subsequent to June 30, 2020, we entered into additional forward starting interest rate swaps with a notional amount of $50 million and a weighted average rate of 0.90% to hedge variations in cash flows related to the same LIBOR interest rate for our debt due in 2025. During 2019, we entered into forward starting interest rate swaps with a total notional amount of $320 million to hedge variations in cash flows related to the 1-month LIBOR component of future lease payments of our future Houston office. These swaps will settle monthly on the same day the lease payment is made with the first swap settlement occurring in January 2022. We expect the first lease payment to commence sometime in the period from December 2021 to May 2022. The last swap will mature on September 9, 2026. See Note 13 for further details regarding the lease of the new Houston office. The following table presents, by maturity date, information about our interest rate swap agreements, including the weighted average LIBOR-based, fixed rate. June 30, 2020 December 31, 2019 Maturity Date Aggregate Notional Amount (in millions) Weighted Average, LIBOR Aggregate Notional Amount (in millions) Weighted Average, LIBOR November 1, 2022 $ 500 0.99 % $ — — % June 1, 2025 $ 300 0.96 % $ — — % September 9, 2026 $ 320 1.51 % $ 320 1.51 % At June 30, 2020, accumulated other comprehensive income included deferred losses of $24 million related to forward starting interest rate swaps. No amounts related to these swaps are expected to impact the consolidated statements of income in the next 12 months. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 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, 2020 and December 31, 2019 by hierarchy level. June 30, 2020 (In millions) Level 1 Level 2 Level 3 Total Derivative instruments, assets Commodity (a) $ — $ 88 $ — $ 88 Interest rate — 2 — 2 Derivative instruments, assets $ — $ 90 $ — $ 90 Derivative instruments, liabilities Commodity (a) $ (9) $ — $ — $ (9) Interest rate — (26) — (26) Derivative instruments, liabilities $ (9) $ (26) $ — $ (35) Total $ (9) $ 64 $ — $ 55 December 31, 2019 (In millions) Level 1 Level 2 Level 3 Total Derivative instruments, assets Commodity (a) $ — $ 7 $ — $ 7 Interest rate — 2 — 2 Derivative instruments, assets $ — $ 9 $ — $ 9 Derivative instruments, liabilities Commodity (a) $ (3) $ — $ — $ (3) Derivative instruments, liabilities $ (3) $ — $ — $ (3) Total $ (3) $ 9 $ — $ 6 (a) Derivative instruments are recorded on a net basis in our consolidated balance sheet. See Note 15 . Commodity derivatives include three-way collars, two-way collars, fixed price swaps, basis swaps and NYMEX roll basis swaps. These instruments are measured at fair value using either a Black-Scholes or a modified Black-Scholes Model. For swaps, inputs to the models include only commodity prices and interest rates and are categorized as Level 1 because all assumptions and inputs are observable in active markets throughout the term of the instruments. For three-way collars and two- way collars, inputs to the models include commodity prices and implied volatility and are categorized as Level 2 because predominantly all assumptions and inputs are observable in active markets throughout the term of the instruments. The forward starting interest rate swaps are measured at fair value with a market approach using actionable broker quotes, which are Level 2 inputs. See Note 15 for detail on the forward starting interest rate swaps. Fair Value Estimates – Goodwill See Note 14 for detail information relating to goodwill. Fair Values – Nonrecurring See Note 11 for detail on our fair values related to impairments. Fair Values – Financial Instruments Our current assets and liabilities include financial instruments, the most significant of which are receivables, the current portion of our 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, 2020 and December 31, 2019. June 30, 2020 December 31, 2019 (In millions) Fair Value Carrying Amount Fair Value Carrying Amount Financial assets Current assets $ 4 $ 4 $ 4 $ 4 Other noncurrent assets 28 44 26 38 Total financial assets $ 32 $ 48 $ 30 $ 42 Financial liabilities Other current liabilities $ 61 $ 97 $ 62 $ 90 Long-term debt, including current portion (a) 5,558 5,530 6,174 5,529 Deferred credits and other liabilities 105 84 99 86 Total financial liabilities $ 5,724 $ 5,711 $ 6,335 $ 5,705 (a) Excludes debt issuance costs. 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. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Revolving Credit Facility As of June 30, 2020, we had no borrowings against our $3.0 billion unsecured revolving credit facility (“Credit Facility”), as described below. The Credit Facility includes a covenant requiring our total debt to total capitalization ratio not to exceed 65% as of the last day of each fiscal quarter. In the event of a default, 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, 2020, we were in compliance with this covenant with a ratio of 33%. Long-term debt At June 30, 2020, we had $5.5 billion of total debt outstanding, with our next significant debt maturity in the amount of $1.0 billion due November 2022. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ EquityDuring the six months ended June 30, 2020, we acquired approximately 9 million common shares at a cost of $85 million, which were held as treasury stock. Including these repurchases, the total remaining share repurchase authorization was $1.3 billion at June 30, 2020. Purchases under the program are made at our discretion and may be in either open market transactions, including block purchases, or in privately negotiated transactions using cash on hand, cash generated from operations or proceeds from potential asset sales. This program may be changed based upon our financial condition or changes in market conditions and is subject to termination prior to completion. |
Incentive Based Compensation
Incentive Based Compensation | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Incentive Based Compensation | 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 2020: Stock Options Restricted Stock Awards & Units Number of Shares Weighted Average Exercise Price Awards Weighted Average Grant Date Fair Value Outstanding at December 31, 2019 5,659,731 $ 23.55 7,174,386 $ 15.88 Granted 1,132,808 (a) $ 10.47 5,337,796 $ 8.55 Exercised/Vested (52,333) $ 7.22 (2,911,712) $ 15.93 Canceled (b) (565,219) $ 23.52 (1,405,754) $ 11.70 Outstanding at June 30, 2020 6,174,987 $ 21.29 8,194,716 $ 11.80 (a) The weighted average grant date fair value of stock option awards granted was $3.82 per share. (b) Included in canceled are forfeitures related to workforce reductions. Stock-based performance unit awards During the first six months of 2020, we granted 1,038,676 stock-based performance units to certain officers to be settled in shares. The grant date fair value per unit was $10.55, as calculated using a Monte Carlo valuation model. As of June 30, 2020 there were 1,658,088 |
Defined Benefit Postretirement
Defined Benefit Postretirement Plans | 6 Months Ended |
Jun. 30, 2020 | |
Retirement Benefits [Abstract] | |
Defined Benefit Postretirement Plans | Defined Benefit Postretirement Plans The following summarizes the components of net periodic benefit cost (credit): Three Months Ended June 30, Pension Benefits Other Benefits (In millions) 2020 2019 (d) 2020 2019 Service cost $ 5 $ 5 $ — $ — Interest cost 2 7 — 1 Expected return on plan assets (2) (8) — — Amortization: – prior service cost (credit) (2) (2) (5) (4) – actuarial loss 2 2 1 — Net settlement loss (a) 14 2 — — Net curtailment gain (b) (3) — (14) — Net periodic benefit cost (credit) (c) $ 16 $ 6 $ (18) $ (3) Six Months Ended June 30, Pension Benefits Other Benefits (In millions) 2020 2019 (d) 2020 2019 Service cost $ 10 $ 9 $ — $ — Interest cost 5 14 1 2 Expected return on plan assets (5) (16) — — Amortization: – prior service cost (credit) (4) (4) (9) (8) – actuarial loss 5 4 1 — Net settlement loss (a) 16 2 — — Net curtailment gain (b) (3) — (14) — Net periodic benefit cost (credit) (c) $ 24 $ 9 $ (21) $ (6) (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. (c) Net periodic benefit cost (credit) reflects a calculated market-related value of plan assets which recognizes changes in fair value over three years. (d) Includes amounts related to the noncontributory defined benefit pension plan covering U.K. employees, prior to the plan being transferred to the buyer upon sale of the U.K. asset on July 1, 2019. During the first six months of 2020, we made contributions of $12 million to our funded pension plan and expect to contribute an additional $16 million this year. During the first six months of 2020, we made payments of $14 million and $8 million related to unfunded pension plans and other postretirement benefit plans. |
Reclassifications Out of Accumu
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | Reclassifications Out of Accumulated Other Comprehensive Income (Loss) The following table presents a summary of amounts reclassified from accumulated other comprehensive income (loss): Three Months Ended June 30, Six Months Ended June 30, (In millions) 2020 2019 2020 2019 Income Statement Line Postretirement and postemployment plans Amortization of prior service credit $ 7 $ 6 $ 13 $ 12 Other net periodic benefit credit Amortization of actuarial loss (3) (2) (6) (4) Other net periodic benefit credit Net settlement loss (14) (2) (16) (2) Other net periodic benefit credit Net curtailment gain 17 — 17 — Other net periodic benefit credit Total reclassifications to expense, net of tax (a) $ 7 $ 2 $ 8 $ 6 Net income |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Six Months Ended June 30, (In millions) 2020 2019 Included in operating activities: Interest paid, net of amounts capitalized $ 126 $ 128 Income taxes paid to taxing authorities, net of refunds received (a) 4 66 Noncash investing activities: Increase (decrease) in asset retirement costs $ (6) $ 29 Asset retirement obligations assumed by buyer (b) — 109 (a) The six months ended June 30, 2020 and 2019 includes $4 million and $89 million, related to tax refunds. (b) In 2019, we closed on the sale of our working interest in the Droshky field (Gulf of Mexico), including our $98 million asset retirement obligation and the sale of our non-operated interest in the Atrush block in Kurdistan. Other noncash investing activities include accrued capital expenditures for the six months ended June 30, 2020 and 2019 of $48 million and $300 million. |
Equity Method Investments
Equity Method Investments | 6 Months Ended |
Jun. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investments During the periods ended June 30, 2020 and December 31, 2019 our equity method investees were considered related parties and included: • EGHoldings, in which we have a 60% noncontrolling interest. EGHoldings is engaged in LNG production activity. • Alba Plant LLC, in which we have a 52% noncontrolling interest. Alba Plant LLC processes LPG. • AMPCO, in which we have a 45% noncontrolling interest. AMPCO is engaged in methanol production activity. Our equity method investments are summarized in the following table: (In millions) Ownership as of June 30, 2020 June 30, 2020 December 31, 2019 EGHoldings 60% $ 139 $ 310 Alba Plant LLC 52% 168 163 AMPCO 45% 169 190 Total $ 476 $ 663 In the second quarter of 2020, we recorded an impairment of $152 million to an investment in an equity method investee, which was reflected in income (loss) from equity method investments in our consolidated statements of income. See Note 11 to the consolidated financial statements for further information on the equity method investee impairment. Summarized financial information for equity method investees is as follows: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2020 2019 2020 2019 Income data: Revenues and other income $ 111 $ 233 $ 283 $ 453 Income (loss) from operations (10) 82 (40) 131 Net income (loss) (13) 63 (39) 95 Revenues from related parties were $10 million and $20 million for the three and six months ended June 30, 2020 and $11 million and $21 million for the three and six months ended June 30, 2019 with the majority related to EGHoldings in all periods. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In the second quarter of 2019, Marathon E.G. Production Limited (“MEGPL”), a consolidated and wholly-owned subsidiary, signed a series of agreements to process third-party Alen Unit gas through existing infrastructure located in Punta Europa, E.G. Our equity method investee, Alba Plant LLC, is also a party to some of the agreements. These agreements contain clauses that require MEGPL to indemnify the owners of the Alen Unit against injury to Alba Plant LLC’s personnel and damage to or loss of Alba Plant LLC’s automobiles, as well as third party claims caused by Alba Plant and certain environmental liabilities resulting from the actions or inaction by Alba Plant LLC. Pursuant to these agreements, MEGPL agreed to indemnify third party property or events, including environmental liabilities, injury to Alba Plant LLC’s personnel, and damage to or loss of Alba Plant LLC’s automobiles. At this time, we cannot reasonably estimate this obligation as we do not have any history of prior indemnification claims, as completion of the plant modifications is not expected to finish until 2021, and as such, we do not have any history of environmental discharge or contamination. Therefore, we have not recorded a liability with respect to these indemnities since the amount of potential future payments under these indemnification clauses is not determinable. The agreements to process the third-party Alen Unit gas required the execution of third-party guarantees by Marathon Oil Corporation in favor of the Alen Unit’s owners. Two separate guarantees were executed during the second quarter of 2020; one for a maximum of $91 million pertaining to the payment obligations of Equatorial Guinea LNG Operations, S.A. and another for a maximum of $25 million pertaining to the payment obligations of Alba Plant LLC. Payment by us would be required if either of those entities fails to honor its payment obligations pursuant to the relevant agreements with the owners of the Alen Unit. Certain owners of the Alen Unit, or their affiliates, are also direct or indirect shareholders in Equatorial Guinea LNG Operations, S.A. and Alba Plant LLC. Each guarantee expires no later than December 31, 2027. We measured these guarantees at fair value using the net present value of premium payments we expect to receive from our investees. We recorded a liability for these guarantees of $4 million as of June 30, 2020, with a corresponding receivable from our investees. Each of Equatorial Guinea LNG Operations, S.A. and Equatorial Guinea LNG Train 1, S.A. provided us with a pledge of its receivables as recourse against any payments we may make under the guaranty of Equatorial Guinea LNG Operations, S.A.’s performance. Various groups, including the State of North Dakota and three Indian tribes represented by the Bureau of Indian Affairs, have been involved in a dispute regarding the ownership of certain lands underlying the Missouri River and Little Missouri River. As a result, as of June 30, 2020, we have a $101 million current liability in suspended royalty and working interest revenue, including interest, and have a long-term receivable of $25 million for capital and expenses. In December 2019, we received a Notice of Violation from the North Dakota Department of Environmental Quality and a verbal notice of enforcement in January 2020 from the North Dakota Industrial Commission, related to a release of produced water in North Dakota. In January 2020, we received a Notice of Violation from the EPA related to the Clean Air Act. Each enforcement action will likely result in monetary sanctions in excess of $100,000; however, we do not believe these enforcement actions would have a material adverse effect on our consolidated financial position, results of operations or cash flow. 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 offset by the prices we receive for 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. These laws generally provide for control of pollutants released into the environment and require responsible parties to undertake remediation of hazardous waste disposal sites. Penalties may be imposed for noncompliance. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2019 Annual Report on Form 10-K. The results of operations for the second quarter and first six months of 2020 are not necessarily indicative of the results to be expected for the full year. |
Income (Loss) and Dividends p_2
Income (Loss) and Dividends per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The per share calculations below exclude 7 million of stock options for each of the three and six months ended June 30, 2020 and 6 million of stock options for each of the three and six months ended June 30, 2019 that were antidilutive. Three Months Ended June 30, Six Months Ended June 30, (In millions, except per share data) 2020 2019 2020 2019 Net income (loss) $ (750) $ 161 $ (796) $ 335 Weighted average common shares outstanding 790 813 793 817 Effect of dilutive securities — 1 — — Weighted average common shares, diluted 790 814 793 817 Net income (loss) per share: Basic $ (0.95) $ 0.20 $ (1.00) $ 0.41 Diluted $ (0.95) $ 0.20 $ (1.00) $ 0.41 Dividends per share $ — $ 0.05 $ 0.05 $ 0.10 |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables present our revenues from contracts with customers disaggregated by product type and geographic areas for the three and six months ended June 30 as follows: United States Three Months Ended June 30, 2020 (In millions) Eagle Ford Bakken Oklahoma Northern Delaware Other U.S. Total Crude oil and condensate $ 142 $ 147 $ 32 $ 33 $ 7 $ 361 Natural gas liquids 16 3 13 4 1 37 Natural gas 20 5 24 4 1 54 Other 1 — — — 9 10 Revenues from contracts with customers $ 179 $ 155 $ 69 $ 41 $ 18 $ 462 Three Months Ended June 30, 2019 (In millions) Eagle Ford Bakken Oklahoma Northern Delaware Other U.S. Total Crude oil and condensate $ 350 $ 453 $ 111 $ 77 $ 30 $ 1,021 Natural gas liquids 30 15 31 7 1 84 Natural gas 32 6 36 1 4 79 Other 1 — — — 15 16 Revenues from contracts with customers $ 413 $ 474 $ 178 $ 85 $ 50 $ 1,200 Six Months Ended June 30, 2020 (In millions) Eagle Ford Bakken Oklahoma Northern Delaware Other U.S. Total Crude oil and condensate $ 449 $ 477 $ 116 $ 107 $ 40 $ 1,189 Natural gas liquids 31 13 34 7 3 88 Natural gas 44 13 53 7 4 121 Other 3 — — — 31 34 Revenues from contracts with customers $ 527 $ 503 $ 203 $ 121 $ 78 $ 1,432 Six Months Ended June 30, 2019 (In millions) Eagle Ford Bakken Oklahoma Northern Delaware Other U.S. Total Crude oil and condensate $ 668 $ 825 $ 188 $ 141 $ 58 $ 1,880 Natural gas liquids 65 25 53 15 3 161 Natural gas 66 18 81 7 10 182 Other 3 — — — 36 39 Revenues from contracts with customers $ 802 $ 868 $ 322 $ 163 $ 107 $ 2,262 International Three Months Ended June 30, 2020 (In millions) E.G. Crude oil and condensate $ 20 Natural gas liquids 1 Natural gas 7 Revenues from contracts with customers $ 28 Three Months Ended June 30, 2019 (In millions) E.G. U.K. Other Int’l Total Crude oil and condensate $ 101 $ 51 $ 9 $ 161 Natural gas liquids 1 — — 1 Natural gas 9 4 — 13 Other — 6 — 6 Revenues from contracts with customers $ 111 $ 61 $ 9 $ 181 Six Months Ended June 30, 2020 (In millions) E.G. Crude oil and condensate $ 65 Natural gas liquids 2 Natural gas 15 Revenues from contracts with customers $ 82 Six Months Ended June 30, 2019 (In millions) E.G. U.K. Other Int’l Total Crude oil and condensate $ 148 $ 107 $ 19 $ 274 Natural gas liquids 2 1 — 3 Natural gas 16 12 — 28 Other — 14 — 14 Revenues from contracts with customers $ 166 $ 134 $ 19 $ 319 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Three Months Ended June 30, 2020 (In millions) U.S. Int’l Not Allocated to Segments Total Revenues from contracts with customers $ 462 $ 28 $ — $ 490 Net gain (loss) on commodity derivatives 26 — (96) (b) (70) Loss from equity method investments — — (152) (c) (152) Net loss on disposal of assets — — (2) (2) Other income 3 2 1 6 Less costs and expenses: Production 114 15 — 129 Shipping, handling and other operating 91 1 13 105 Exploration 26 — — 26 Depreciation, depletion and amortization 569 22 6 597 Taxes other than income 30 — — 30 General and administrative 32 3 53 (d) 88 Net interest and other — — 69 69 Other net periodic benefit credit — — (7) (e) (7) Income tax benefit (6) (5) (4) (15) Segment loss $ (365) $ (6) $ (379) $ (750) Total assets $ 16,791 $ 1,144 $ 632 $ 18,567 Capital expenditures (a) $ 137 $ — $ 2 $ 139 (a) Includes accruals. (b) Unrealized loss on commodity derivative instruments (See Note 15 ). (c) Partial impairment of investment in equity method investee (See N ot e 2 3 ). (d) Includes severance expenses associated with workforce reductions of $13 million. (e) Includes pension settlement loss of $14 million and pension curtailment gain of $17 million (See N ote 2 0 ). Three Months Ended June 30, 2019 (In millions) U.S. Int’l Not Allocated to Segments Total Revenues from contracts with customers $ 1,200 $ 181 $ — $ 1,381 Net gain on commodity derivatives 5 — 11 (b) 16 Income from equity method investments — 31 — 31 Net loss on disposal of assets — — (8) (c) (8) Other income 4 2 7 13 Less costs and expenses: Production 147 46 — 193 Shipping, handling and other operating 147 10 13 170 Exploration 26 — — 26 Depreciation, depletion and amortization 561 38 6 605 Impairments — — 18 (d) 18 Taxes other than income 79 — — 79 General and administrative 31 8 48 87 Net interest and other — — 64 64 Other net periodic benefit credit — (1) (1) (2) Income tax provision 3 17 12 32 Segment income (loss) $ 215 $ 96 $ (150) $ 161 Total assets $ 17,539 $ 2,913 $ 830 $ 21,282 Capital expenditures (a) $ 686 $ 10 $ 5 $ 701 (a) Includes accruals. (b) Unrealized gain on commodity derivative instruments (See Note 15 ). (c) Primarily related to the sale of certain non-core proved properties in our International segment (see No te 4 ). (d) Primarily as a result of the anticipated sale of non-core proved properties in our United States segment (See Note 11 ). Six Months Ended June 30, 2020 (In millions) U.S. Int’l Not Allocated to Segments Total Revenues from contracts with customers $ 1,432 $ 82 $ — $ 1,514 Net gain on commodity derivatives 57 — 75 (b) 132 Loss from equity method investments — (12) (152) (c) (164) Net gain on disposal of assets — — 7 7 Other income 7 4 2 13 Less costs and expenses: Production 257 32 — 289 Shipping, handling and other operating 231 4 14 249 Exploration 54 — — 54 Depreciation, depletion and amortization 1,186 43 12 1,241 Impairments — — 97 (d) 97 Taxes other than income 96 — — 96 General and administrative 64 7 93 (e) 164 Net interest and other — — 133 133 Other net periodic benefit credit — — (7) (f) (7) Income tax benefit (7) (5) (6) (18) Segment loss $ (385) $ (7) $ (404) $ (796) Total assets $ 16,791 $ 1,144 $ 632 $ 18,567 Capital expenditures (a) $ 698 $ — $ 9 $ 707 (a) Includes accruals. (b) Unrealized gain on commodity derivative instruments (See Note 15 ). (c) Partial impairment of investment in equity method investee (See N ote 23 ). (d) Includes the full impairment of the International reporting unit goodwill of $95 million (See N ote 14 ). (e) Includes severance expenses associated with workforce reductions of $13 million. (f) Includes pension settlement loss of $16 million and pension curtailment gain of $17 million (See Note 20 ). Six Months Ended June 30, 2019 (In millions) U.S. Int’l Not Allocated to Segments Total Revenue from contracts with customers $ 2,262 $ 319 $ — $ 2,581 Net gain (loss) on commodity derivatives 27 — (102) (b) (75) Income from equity method investments — 42 — 42 Net gain on disposal of assets — — 34 (c) 34 Other income 5 5 38 (d) 48 Less costs and expenses: Production 286 96 (2) 380 Shipping, handling and other operating 287 23 14 324 Exploration 85 — — 85 Depreciation, depletion and amortization 1,075 72 12 1,159 Impairments — — 24 (e) 24 Taxes other than income 153 — (2) 151 General and administrative 60 15 106 181 Net interest and other — — 113 113 Other net periodic benefit credit — (3) (4) (7) Income tax provision (benefit) 1 6 (122) (f) (115) Segment income (loss) $ 347 $ 157 $ (169) $ 335 Total assets $ 17,539 $ 2,913 $ 830 $ 21,282 Capital expenditures (a) $ 1,292 $ 15 $ 8 $ 1,315 (a) Includes accruals. (b) Unrealized loss on commodity derivative instruments (See Note 15 ). (c) Primarily related to the sale of our working interest in the Droshky field (Gulf of Mexico). (d) Primarily related to the indemnification of certain tax liabilities in connection with the 2010-2011 Federal Tax Audit (See Note 7 ). (e) Primarily as a result of anticipated sales of certain non-core proved properties in our International and United States segments. (f) Primarily relates to the settlement of the 2010-2011 Federal Tax Audit (See Note 7 ). |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Effective Income Tax Rate | For the three and six months ended June 30, 2020 and 2019, our effective income tax rates were as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Effective income tax rate (a) 2 % 17 % 2 % (52) % (a) In all periods presented, we maintained our valuation allowance on our net federal deferred tax assets in the U.S. |
Credit Losses (Tables)
Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Credit Loss [Abstract] | |
Changes in Allowance For Doubtful Account Balance | Changes in the allowance for doubtful accounts balance for the six months ended were as follows: (In millions) June 30, 2020 Beginning balance as of January 1 $ 11 Cumulative-effect adjustment 12 Current period provision (a) 6 Recoveries of amounts previously written off (6) Ending balance as of June 30 $ 23 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | (In millions) June 30, 2020 December 31, 2019 Crude oil and natural gas $ 9 $ 10 Supplies and other items 68 62 Inventories $ 77 $ 72 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | (In millions) June 30, 2020 December 31, 2019 United States $ 15,899 $ 16,427 International 449 493 Corporate 76 80 Net property, plant and equipment $ 16,424 $ 17,000 |
Impairments (Tables)
Impairments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Impairment Expense [Abstract] | |
Fair Value Measurements, Nonrecurring | The following table summarizes impairment charges of proved properties, goodwill and equity method investments and their corresponding fair values. Three Months Ended June 30, 2020 2019 (In millions) Fair Value Impairment Fair Value Impairment Long-lived assets held for use $ — $ — $ 19 $ 18 Equity method investment $ 142 $ 152 N/A $ — Six Months Ended June 30, 2020 2019 (In millions) Fair Value Impairment Fair Value Impairment Long-lived assets held for use $ — $ 2 $ 56 $ 24 Goodwill $ — $ 95 N/A $ — Equity method investment $ 142 $ 152 N/A $ — |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Changes in Asset Retirement Obligations | Asset retirement obligations primarily consist of estimated costs to remove, dismantle and restore land or seabed at the end of oil and gas production operations. Changes in asset retirement obligations for the six months ended June 30 were as follows: June 30, (In millions) 2020 2019 Beginning balance as of January 1 $ 255 $ 1,145 Incurred liabilities, including acquisitions 2 18 Settled liabilities, including dispositions (3) (129) Accretion expense (included in depreciation, depletion and amortization) 6 26 Revisions of estimates (8) 11 Held for sale — (864) Ending balance as of June 30 $ 252 $ 207 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases was as follows: (In millions) June 30, 2020 Operating Leases: Balance Sheet Location: Right-of-use asset Other noncurrent assets $ 153 Current portion of long-term lease liability Other current liabilities $ 83 Long-term lease liability Deferred credits and other liabilities $ 74 |
Operating Lease, Undiscounted Cash Flows to be Received | The undiscounted cash flows to be received under this lease agreement are summarized below. (In millions) Operating Lease Future Cash Receipts 2020 $ 3 2021 6 2022 6 2023 6 2024 6 Thereafter 60 Total undiscounted cash flows $ 87 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill Rollforward | June 30, (In millions) 2020 2019 Beginning balance as of January 1, gross $ 95 $ 97 Less: accumulated impairments — — Beginning balance, net 95 97 Dispositions — (2) Impairment (95) — Ending balance as of June 30, net $ — $ 95 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in the Consolidated Balance Sheets | The following tables present the gross fair values of derivative instruments and the reported net amounts along with where they appear on the consolidated balance sheets. June 30, 2020 (In millions) Asset Liability Net Asset (Liability) Balance Sheet Location Not Designated as Hedges Commodity $ 100 $ 21 $ 79 Derivative assets Total Not Designated as Hedges $ 100 $ 21 $ 79 Cash Flow Hedges Interest Rate $ — $ 26 $ (26) Deferred credits and other liabilities Interest Rate 2 — 2 Other noncurrent assets Total Designated Hedges $ 2 $ 26 $ (24) Total $ 102 $ 47 $ 55 December 31, 2019 (In millions) Asset Liability Net Asset (Liability) Balance Sheet Location Not Designated as Hedges Commodity $ 9 $ 1 $ 8 Derivative assets Commodity 1 — 1 Other noncurrent assets Commodity — 5 (5) Other current liabilities Total Not Designated as Hedges $ 10 $ 6 $ 4 Cash Flow Hedges Interest Rate $ 2 $ — $ 2 Other noncurrent assets Total Designated Hedges $ 2 $ — $ 2 Total $ 12 $ 6 $ 6 The mark-to-market impact and settlement of our commodity derivative instruments appears in the table below and is reflected in net gain (loss) on commodity derivatives in the consolidated statements of income. Three Months Ended June 30, Six Months Ended June 30, (In millions) 2020 2019 2020 2019 Mark-to-market gain (loss) $ (96) $ 11 $ 75 $ (102) Net settlements of commodity derivative instruments $ 26 $ 5 $ 57 $ 27 |
Schedule of Notional Amounts of Outstanding Derivative Positions | The following table sets forth outstanding derivative contracts as of June 30, 2020, and the weighted average prices for those contracts: 2020 2021 Third Quarter Fourth Quarter Full Year Crude Oil NYMEX WTI Three-Way Collars Volume (Bbls/day) 80,000 80,000 — Weighted average price per Bbl: Ceiling $ 64.40 $ 64.40 $ — Floor $ 55.00 $ 55.00 $ — Sold put $ 48.00 $ 48.00 $ — NYMEX WTI Two-Way Collars Volume (Bbls/day) 33,478 — — Weighted average price per Bbl: Ceiling $ 40.47 $ — $ — Floor $ 30.98 $ — $ — Fixed Price WTI Swaps Volume (Bbls/day) 10,000 — — Weighted average price per Bbl $ 32.77 $ — $ — Basis Swaps - Argus WTI Midland (a) Volume (Bbls/day) 15,000 15,000 — Weighted average price per Bbl $ (0.94) $ (0.94) $ — Basis Swaps - NYMEX WTI / ICE Brent (b) Volume (Bbls/day) 5,000 5,000 808 Weighted average price per Bbl $ (7.24) $ (7.24) $ (7.24) NYMEX Roll Basis Swaps Volume (Bbls/day) 60,000 30,000 — Weighted average price per Bbl $ (1.58) $ (0.81) $ — Natural Gas Two-Way Collars Volume (MMBtu/day) — — 62,329 Weighted average price per MMBtu: Ceiling $ — $ — $ 3.07 Floor $ — $ — $ 2.44 Basis Swaps - WAHA / HH (c) Volume (MMBtu/day) 10,000 10,000 — Weighted average price per MMBtu $ (0.37) $ (0.37) $ — (a) The basis differential price is indexed against Argus WTI Midland. (b) The basis differential price is indexed against Intercontinental Exchange (“ICE”) Brent and NYMEX WTI. (c) The basis differential price is indexed against Waha and NYMEX Henry Hub. The following table sets forth outstanding derivative contracts entered into between July 1 and August 5, 2020, and the weighted average prices for those contracts: 2020 2021 Third Quarter Fourth Quarter Full Year Crude Oil NYMEX WTI Two-Way Collars Volume (Bbls/day) 3,261 10,000 10,000 Weighted average price per Bbl: Ceiling $ 48.00 $ 48.65 $ 52.37 Floor $ 36.50 $ 37.00 $ 35.00 Natural Gas Two-Way Collars Volume (MMBtu/day) 66,304 150,000 50,000 Weighted average price per MMBtu: Ceiling $ 2.49 $ 2.62 $ 2.93 Floor $ 2.00 $ 2.13 $ 2.40 NGL Fixed Price Ethane Swaps Volume (MMBtu/day) 7,304 10,000 — Weighted average price per Bbl $ 8.78 $ 8.78 $ — |
Schedule of Interest Rate Swap Agreement | The following table presents, by maturity date, information about our interest rate swap agreements, including the weighted average LIBOR-based, fixed rate. June 30, 2020 December 31, 2019 Maturity Date Aggregate Notional Amount (in millions) Weighted Average, LIBOR Aggregate Notional Amount (in millions) Weighted Average, LIBOR November 1, 2022 $ 500 0.99 % $ — — % June 1, 2025 $ 300 0.96 % $ — — % September 9, 2026 $ 320 1.51 % $ 320 1.51 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present assets and liabilities accounted for at fair value on a recurring basis as of June 30, 2020 and December 31, 2019 by hierarchy level. June 30, 2020 (In millions) Level 1 Level 2 Level 3 Total Derivative instruments, assets Commodity (a) $ — $ 88 $ — $ 88 Interest rate — 2 — 2 Derivative instruments, assets $ — $ 90 $ — $ 90 Derivative instruments, liabilities Commodity (a) $ (9) $ — $ — $ (9) Interest rate — (26) — (26) Derivative instruments, liabilities $ (9) $ (26) $ — $ (35) Total $ (9) $ 64 $ — $ 55 December 31, 2019 (In millions) Level 1 Level 2 Level 3 Total Derivative instruments, assets Commodity (a) $ — $ 7 $ — $ 7 Interest rate — 2 — 2 Derivative instruments, assets $ — $ 9 $ — $ 9 Derivative instruments, liabilities Commodity (a) $ (3) $ — $ — $ (3) Derivative instruments, liabilities $ (3) $ — $ — $ (3) Total $ (3) $ 9 $ — $ 6 (a) Derivative instruments are recorded on a net basis in our consolidated balance sheet. See Note 15 |
Fair Value, by Balance Sheet Grouping | 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, 2020 and December 31, 2019. June 30, 2020 December 31, 2019 (In millions) Fair Value Carrying Amount Fair Value Carrying Amount Financial assets Current assets $ 4 $ 4 $ 4 $ 4 Other noncurrent assets 28 44 26 38 Total financial assets $ 32 $ 48 $ 30 $ 42 Financial liabilities Other current liabilities $ 61 $ 97 $ 62 $ 90 Long-term debt, including current portion (a) 5,558 5,530 6,174 5,529 Deferred credits and other liabilities 105 84 99 86 Total financial liabilities $ 5,724 $ 5,711 $ 6,335 $ 5,705 |
Incentive Based Compensation (T
Incentive Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Options, Restricted Stock Awards and Restricted Stock Units Activity | The following table presents a summary of activity for the first six months of 2020: Stock Options Restricted Stock Awards & Units Number of Shares Weighted Average Exercise Price Awards Weighted Average Grant Date Fair Value Outstanding at December 31, 2019 5,659,731 $ 23.55 7,174,386 $ 15.88 Granted 1,132,808 (a) $ 10.47 5,337,796 $ 8.55 Exercised/Vested (52,333) $ 7.22 (2,911,712) $ 15.93 Canceled (b) (565,219) $ 23.52 (1,405,754) $ 11.70 Outstanding at June 30, 2020 6,174,987 $ 21.29 8,194,716 $ 11.80 (a) The weighted average grant date fair value of stock option awards granted was $3.82 per share. (b) Included in canceled are forfeitures related to workforce reductions. |
Defined Benefit Postretiremen_2
Defined Benefit Postretirement Plans (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Benefit Cost | The following summarizes the components of net periodic benefit cost (credit): Three Months Ended June 30, Pension Benefits Other Benefits (In millions) 2020 2019 (d) 2020 2019 Service cost $ 5 $ 5 $ — $ — Interest cost 2 7 — 1 Expected return on plan assets (2) (8) — — Amortization: – prior service cost (credit) (2) (2) (5) (4) – actuarial loss 2 2 1 — Net settlement loss (a) 14 2 — — Net curtailment gain (b) (3) — (14) — Net periodic benefit cost (credit) (c) $ 16 $ 6 $ (18) $ (3) Six Months Ended June 30, Pension Benefits Other Benefits (In millions) 2020 2019 (d) 2020 2019 Service cost $ 10 $ 9 $ — $ — Interest cost 5 14 1 2 Expected return on plan assets (5) (16) — — Amortization: – prior service cost (credit) (4) (4) (9) (8) – actuarial loss 5 4 1 — Net settlement loss (a) 16 2 — — Net curtailment gain (b) (3) — (14) — Net periodic benefit cost (credit) (c) $ 24 $ 9 $ (21) $ (6) (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. (c) Net periodic benefit cost (credit) reflects a calculated market-related value of plan assets which recognizes changes in fair value over three years. (d) Includes amounts related to the noncontributory defined benefit pension plan covering U.K. employees, prior to the plan being transferred to the buyer upon sale of the U.K. asset on July 1, 2019. |
Reclassifications Out of Accu_2
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Schedule of Amounts Reclassified out of Accumulated Other Comprehensive Income (Loss) | The following table presents a summary of amounts reclassified from accumulated other comprehensive income (loss): Three Months Ended June 30, Six Months Ended June 30, (In millions) 2020 2019 2020 2019 Income Statement Line Postretirement and postemployment plans Amortization of prior service credit $ 7 $ 6 $ 13 $ 12 Other net periodic benefit credit Amortization of actuarial loss (3) (2) (6) (4) Other net periodic benefit credit Net settlement loss (14) (2) (16) (2) Other net periodic benefit credit Net curtailment gain 17 — 17 — Other net periodic benefit credit Total reclassifications to expense, net of tax (a) $ 7 $ 2 $ 8 $ 6 Net income |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Six Months Ended June 30, (In millions) 2020 2019 Included in operating activities: Interest paid, net of amounts capitalized $ 126 $ 128 Income taxes paid to taxing authorities, net of refunds received (a) 4 66 Noncash investing activities: Increase (decrease) in asset retirement costs $ (6) $ 29 Asset retirement obligations assumed by buyer (b) — 109 (a) The six months ended June 30, 2020 and 2019 includes $4 million and $89 million, related to tax refunds. (b) In 2019, we closed on the sale of our working interest in the Droshky field (Gulf of Mexico), including our $98 million asset retirement obligation and the |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | Our equity method investments are summarized in the following table: (In millions) Ownership as of June 30, 2020 June 30, 2020 December 31, 2019 EGHoldings 60% $ 139 $ 310 Alba Plant LLC 52% 168 163 AMPCO 45% 169 190 Total $ 476 $ 663 In the second quarter of 2020, we recorded an impairment of $152 million to an investment in an equity method investee, which was reflected in income (loss) from equity method investments in our consolidated statements of income. See Note 11 to the consolidated financial statements for further information on the equity method investee impairment. Summarized financial information for equity method investees is as follows: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2020 2019 2020 2019 Income data: Revenues and other income $ 111 $ 233 $ 283 $ 453 Income (loss) from operations (10) 82 (40) 131 Net income (loss) (13) 63 (39) 95 |
Accounting Standards (Details)
Accounting Standards (Details) - USD ($) $ in Millions | Jan. 01, 2020 | Mar. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative-effect adjustment | $ (12) | $ (31) |
Retained Earnings | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative-effect adjustment | $ (12) | $ (31) |
Income (Loss) and Dividends p_3
Income (Loss) and Dividends per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | ||||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 7 | 6 | 7 | 6 | ||
Net income | $ (750) | $ (46) | $ 161 | $ 174 | $ (796) | $ 335 |
Weighted average common shares outstanding (in shares) | 790 | 813 | 793 | 817 | ||
Effect of dilutive securities (in shares) | 0 | 1 | 0 | 0 | ||
Weighted average common shares, diluted (in shares) | 790 | 814 | 793 | 817 | ||
Net income (loss) per share: | ||||||
Basic (in dollars per share) | $ (0.95) | $ 0.20 | $ (1) | $ 0.41 | ||
Per diluted share: | ||||||
Diluted (in dollars per share) | (0.95) | 0.20 | (1) | 0.41 | ||
Dividends per share (in dollars per share) | $ 0 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.10 |
Dispositions - International Se
Dispositions - International Segment (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
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 | $ 9 | $ 69 | |||
Income before income taxes | $ (765) | $ 193 | $ (814) | 220 | |
International E&P | U.K. Business | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||
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 | $ 95 | ||||
Income before income taxes | 18 | $ 28 | |||
International E&P | Atrush Block in Kurdistan | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||
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 | $ 63 | ||||
Percentage of oil and gas property disposed | 15.00% |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Receivables from contract with customer | $ 487 | $ 837 |
Revenues - Revenues from Contra
Revenues - Revenues from Contracts with Customers by Product Type and Geographic Areas (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 490 | $ 1,381 | $ 1,514 | $ 2,581 |
United States E&P | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 462 | 1,200 | 1,432 | 2,262 |
United States E&P | Eagle Ford | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 179 | 413 | 527 | 802 |
United States E&P | Bakken | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 155 | 474 | 503 | 868 |
United States E&P | Oklahoma | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 69 | 178 | 203 | 322 |
United States E&P | Northern Delaware | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 41 | 85 | 121 | 163 |
United States E&P | Other U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 18 | 50 | 78 | 107 |
United States E&P | Crude oil and condensate | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 361 | 1,021 | 1,189 | 1,880 |
United States E&P | Crude oil and condensate | Eagle Ford | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 142 | 350 | 449 | 668 |
United States E&P | Crude oil and condensate | Bakken | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 147 | 453 | 477 | 825 |
United States E&P | Crude oil and condensate | Oklahoma | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 32 | 111 | 116 | 188 |
United States E&P | Crude oil and condensate | Northern Delaware | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 33 | 77 | 107 | 141 |
United States E&P | Crude oil and condensate | Other U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 7 | 30 | 40 | 58 |
United States E&P | Natural gas liquids | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 37 | 84 | 88 | 161 |
United States E&P | Natural gas liquids | Eagle Ford | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 16 | 30 | 31 | 65 |
United States E&P | Natural gas liquids | Bakken | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 3 | 15 | 13 | 25 |
United States E&P | Natural gas liquids | Oklahoma | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 13 | 31 | 34 | 53 |
United States E&P | Natural gas liquids | Northern Delaware | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 4 | 7 | 7 | 15 |
United States E&P | Natural gas liquids | Other U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 1 | 1 | 3 | 3 |
United States E&P | Natural gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 54 | 79 | 121 | 182 |
United States E&P | Natural gas | Eagle Ford | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 20 | 32 | 44 | 66 |
United States E&P | Natural gas | Bakken | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 5 | 6 | 13 | 18 |
United States E&P | Natural gas | Oklahoma | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 24 | 36 | 53 | 81 |
United States E&P | Natural gas | Northern Delaware | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 4 | 1 | 7 | 7 |
United States E&P | Natural gas | Other U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 1 | 4 | 4 | 10 |
United States E&P | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 10 | 16 | 34 | 39 |
United States E&P | Other | Eagle Ford | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 1 | 1 | 3 | 3 |
United States E&P | Other | Bakken | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
United States E&P | Other | Oklahoma | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
United States E&P | Other | Northern Delaware | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 |
United States E&P | Other | Other U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 9 | 15 | 31 | 36 |
International E&P | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 181 | 319 | ||
International E&P | E.G. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 28 | 111 | 82 | 166 |
International E&P | U.K. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 61 | 134 | ||
International E&P | Other Int’l | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 9 | 19 | ||
International E&P | Crude oil and condensate | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 161 | 274 | ||
International E&P | Crude oil and condensate | E.G. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 20 | 101 | 65 | 148 |
International E&P | Crude oil and condensate | U.K. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 51 | 107 | ||
International E&P | Crude oil and condensate | Other Int’l | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 9 | 19 | ||
International E&P | Natural gas liquids | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 1 | 3 | ||
International E&P | Natural gas liquids | E.G. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 1 | 1 | 2 | 2 |
International E&P | Natural gas liquids | U.K. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 1 | ||
International E&P | Natural gas liquids | Other Int’l | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | ||
International E&P | Natural gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 13 | 28 | ||
International E&P | Natural gas | E.G. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 7 | 9 | $ 15 | 16 |
International E&P | Natural gas | U.K. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 4 | 12 | ||
International E&P | Natural gas | Other Int’l | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | ||
International E&P | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 6 | 14 | ||
International E&P | Other | E.G. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 0 | 0 | ||
International E&P | Other | U.K. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 6 | 14 | ||
International E&P | Other | Other Int’l | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 0 | $ 0 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Jun. 30, 2020USD ($)segment | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||||||
Number of reportable segments | segment | 2 | ||||||
Revenues from contracts with customers | $ 490 | $ 1,381 | $ 1,514 | $ 2,581 | |||
Net gain (loss) on commodity derivatives | (70) | 16 | 132 | (75) | |||
Income (loss) from equity method investments | (152) | 31 | (164) | 42 | |||
Net gain (loss) on disposal of assets | (2) | (8) | 7 | 34 | |||
Other income | 6 | 13 | 13 | 48 | |||
Less costs and expenses: | |||||||
Production | 129 | 193 | 289 | 380 | |||
Shipping, handling and other operating | 105 | 170 | 249 | 324 | |||
Exploration | 26 | 26 | 54 | 85 | |||
Depreciation, depletion and amortization | 597 | 605 | 1,241 | 1,159 | |||
Impairments | 0 | 18 | 97 | 24 | |||
Taxes other than income | 30 | 79 | 96 | 151 | |||
General and administrative | 88 | 87 | 164 | 181 | |||
Net interest and other | 69 | 64 | 133 | 113 | |||
Other net periodic benefit credit | (7) | (2) | (7) | (7) | |||
Income tax provision (benefit) | (15) | 32 | (18) | (115) | |||
Net income | (750) | $ (46) | 161 | $ 174 | (796) | 335 | |
Assets | 18,567 | 21,282 | 18,567 | 21,282 | $ 20,245 | ||
Capital expenditures | 139 | 701 | 707 | 1,315 | |||
Severance costs | 13 | ||||||
Goodwill impairment loss | 95 | 0 | |||||
Pension Plan | |||||||
Less costs and expenses: | |||||||
Other net periodic benefit credit | 14 | 2 | 16 | 2 | |||
Net curtailment gain | 3 | 0 | 3 | 0 | |||
Not Allocated to Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues from contracts with customers | 0 | 0 | 0 | 0 | |||
Net gain (loss) on commodity derivatives | (96) | 11 | 75 | (102) | |||
Income (loss) from equity method investments | (152) | 0 | (152) | 0 | |||
Net gain (loss) on disposal of assets | (2) | (8) | 7 | 34 | |||
Other income | 1 | 7 | 2 | 38 | |||
Less costs and expenses: | |||||||
Production | 0 | 0 | 0 | (2) | |||
Shipping, handling and other operating | 13 | 13 | 14 | 14 | |||
Exploration | 0 | 0 | 0 | 0 | |||
Depreciation, depletion and amortization | 6 | 6 | 12 | 12 | |||
Impairments | 18 | 97 | 24 | ||||
Taxes other than income | 0 | 0 | 0 | (2) | |||
General and administrative | 53 | 48 | 93 | 106 | |||
Net interest and other | 69 | 64 | 133 | 113 | |||
Other net periodic benefit credit | (7) | (1) | (7) | (4) | |||
Income tax provision (benefit) | (4) | 12 | (6) | (122) | |||
Net income | (379) | (150) | (404) | (169) | |||
Assets | 632 | 830 | 632 | 830 | |||
Capital expenditures | 2 | 5 | 9 | 8 | |||
Severance costs | 13 | ||||||
Not Allocated to Segments | Pension Plan | |||||||
Less costs and expenses: | |||||||
Net curtailment gain | 17 | 17 | |||||
United States E&P | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues from contracts with customers | 462 | 1,200 | 1,432 | 2,262 | |||
United States E&P | Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues from contracts with customers | 462 | 1,200 | 1,432 | 2,262 | |||
Net gain (loss) on commodity derivatives | 26 | 5 | 57 | 27 | |||
Income (loss) from equity method investments | 0 | 0 | 0 | 0 | |||
Net gain (loss) on disposal of assets | 0 | 0 | 0 | 0 | |||
Other income | 3 | 4 | 7 | 5 | |||
Less costs and expenses: | |||||||
Production | 114 | 147 | 257 | 286 | |||
Shipping, handling and other operating | 91 | 147 | 231 | 287 | |||
Exploration | 26 | 26 | 54 | 85 | |||
Depreciation, depletion and amortization | 569 | 561 | 1,186 | 1,075 | |||
Impairments | 0 | 0 | 0 | ||||
Taxes other than income | 30 | 79 | 96 | 153 | |||
General and administrative | 32 | 31 | 64 | 60 | |||
Net interest and other | 0 | 0 | 0 | 0 | |||
Other net periodic benefit credit | 0 | 0 | 0 | 0 | |||
Income tax provision (benefit) | (6) | 3 | (7) | 1 | |||
Net income | (365) | 215 | (385) | 347 | |||
Assets | 16,791 | 17,539 | 16,791 | 17,539 | |||
Capital expenditures | 137 | 686 | 698 | 1,292 | |||
Int'l E&P | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues from contracts with customers | 181 | 319 | |||||
Int'l E&P | Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues from contracts with customers | 28 | 181 | 82 | 319 | |||
Net gain (loss) on commodity derivatives | 0 | 0 | 0 | 0 | |||
Income (loss) from equity method investments | 0 | 31 | (12) | 42 | |||
Net gain (loss) on disposal of assets | 0 | 0 | 0 | 0 | |||
Other income | 2 | 2 | 4 | 5 | |||
Less costs and expenses: | |||||||
Production | 15 | 46 | 32 | 96 | |||
Shipping, handling and other operating | 1 | 10 | 4 | 23 | |||
Exploration | 0 | 0 | 0 | 0 | |||
Depreciation, depletion and amortization | 22 | 38 | 43 | 72 | |||
Impairments | 0 | 0 | 0 | ||||
Taxes other than income | 0 | 0 | 0 | 0 | |||
General and administrative | 3 | 8 | 7 | 15 | |||
Net interest and other | 0 | 0 | 0 | 0 | |||
Other net periodic benefit credit | 0 | (1) | 0 | (3) | |||
Income tax provision (benefit) | (5) | 17 | (5) | 6 | |||
Net income | (6) | 96 | (7) | 157 | |||
Assets | 1,144 | 2,913 | 1,144 | 2,913 | |||
Capital expenditures | $ 0 | $ 10 | $ 0 | $ 15 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Aug. 06, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Valuation Allowance [Line Items] | ||||||
Effective income tax expense (benefit) rate | 2.00% | 17.00% | 2.00% | (52.00%) | ||
Tax benefit from settlement | $ 126 | |||||
Tax benefit from internal restructuring | $ 18 | |||||
Effective income tax expense (benefit) rate, excluding discrete items | 13.00% | |||||
Proceeds from income tax refunds | $ 4 | $ 89 | ||||
Subsequent Event | ||||||
Valuation Allowance [Line Items] | ||||||
Proceeds from income tax refunds | $ 89 |
Credit Losses (Details)
Credit Losses (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Beginning balance as of January 1 | $ 11 |
Current period provision | 6 |
Recoveries of amounts previously written off | (6) |
Ending balance as of June 30 | 23 |
Cumulative-effect adjustment | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Beginning balance as of January 1 | 12 |
JIB Receivables | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Current period provision | 7 |
Trade Receivables | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Current period provision | $ (1) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Crude oil and natural gas | $ 9 | $ 10 |
Supplies and other items | 68 | 62 |
Inventories | $ 77 | $ 72 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | $ 16,424,000,000 | $ 17,000,000,000 |
Exploratory well costs capitalized greater than one year after completion of drilling | 0 | 0 |
Operating Segments | United States E&P | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | 15,899,000,000 | 16,427,000,000 |
Operating Segments | International E&P | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | 449,000,000 | 493,000,000 |
Not Allocated to Segments | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | $ 76,000,000 | $ 80,000,000 |
Impairments - Fair Value Measur
Impairments - Fair Value Measurements, Nonrecurring (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Impairments | $ 97 | $ 24 | ||||
Goodwill | $ 0 | $ 95 | 0 | 95 | $ 95 | $ 97 |
Goodwill impairment loss | 95 | 0 | ||||
Equity method investments | 476 | 476 | $ 663 | |||
Oil and Gas Properties | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Long lived assets held for use, fair value | 0 | 19 | 0 | 56 | ||
Impairments | 0 | 18 | 2 | 24 | ||
Goodwill | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Goodwill | 0 | 0 | ||||
Goodwill impairment loss | 95 | 0 | ||||
Equity Method Investments | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Equity method investments | 142 | $ 142 | ||||
Equity method investment, impairment | $ 152 | $ 0 | $ 0 |
Impairments - Narrative (Detail
Impairments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity method investment, difference between carrying amount and underlying equity | $ 126 | $ 126 | |
Equity method investment, difference between carrying amount and underlying equity, amortization period | 6 years 6 months | ||
Goodwill impairment loss | 95 | $ 0 | |
Impairments | $ 97 | $ 24 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Asset retirement obligation, beginning balance | $ 255 | $ 1,145 |
Incurred liabilities, including acquisitions | 2 | 18 |
Settled liabilities, including dispositions | (3) | (129) |
Accretion expense (included in depreciation, depletion and amortization) | 6 | 26 |
Revisions of estimates | (8) | 11 |
Held for sale | 0 | (864) |
Asset retirement obligation, ending balance | 252 | 207 |
Asset retirement obligation, current | $ 10 | 18 |
UNITED KINGDOM | Disposal Group, Held-for-sale, Not Discontinued Operations | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Held for sale | $ (966) |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) $ in Millions | Jun. 30, 2020USD ($) |
Leases [Abstract] | |
Right-of-use asset | $ 153 |
Current portion of long-term lease liability | 83 |
Long-term lease liability | $ 74 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | mro:Deferredcreditandotherliabilities |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Leases [Abstract] | |
Annual payments to be received | $ 6 |
Maximum financing available | 380 |
Total costs incurred under lease | $ 87 |
Term of contract | 5 years |
Finance lease extension term | 5 years |
Residual value guarantee | 89.00% |
Maximum financing available, reduced amount requested | $ 340 |
Leases - Lease Payments to be R
Leases - Lease Payments to be Received (Details) $ in Millions | Jun. 30, 2020USD ($) |
Leases [Abstract] | |
2020 | $ 3 |
2021 | 6 |
2022 | 6 |
2023 | 6 |
2024 | 6 |
Thereafter | 60 |
Total undiscounted cash flows | $ 87 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill | $ 0 | $ 95 | $ 95 | $ 97 |
Goodwill impairment loss | $ 95 | $ 0 |
Goodwill - Rollforward (Details
Goodwill - Rollforward (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Beginning balance as of January 1, gross | $ 95 | $ 97 | ||
Less: accumulated impairments | $ 0 | $ 0 | ||
Beginning balance, net | $ 95 | $ 97 | ||
Dispositions | 0 | (2) | ||
Impairment | (95) | 0 | ||
Ending balance as of June 30, net | $ 0 | $ 95 |
Derivatives - Schedule of Deriv
Derivatives - Schedule of Derivative Instruments in the Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Asset | $ 102 | $ 12 |
Liability | 47 | 6 |
Net Asset (Liability) | 55 | 6 |
Not Designated as Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Asset | 100 | 10 |
Liability | 21 | 6 |
Net Asset (Liability) | 79 | 4 |
Cash Flow Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Asset | 2 | 2 |
Liability | 26 | 0 |
Net Asset (Liability) | (24) | 2 |
Commodity | Derivative assets | Not Designated as Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Asset | 100 | 9 |
Liability | 21 | 1 |
Net Asset (Liability) | 79 | 8 |
Commodity | Other current liabilities | Not Designated as Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Asset | 0 | |
Liability | 5 | |
Net Asset (Liability) | (5) | |
Commodity | Other noncurrent assets | Not Designated as Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Asset | 1 | |
Liability | 0 | |
Net Asset (Liability) | 1 | |
Interest Rate | Deferred credits and other liabilities | Cash Flow Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Asset | 0 | |
Liability | 26 | |
Net Asset (Liability) | (26) | |
Interest Rate | Other noncurrent assets | Cash Flow Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Asset | 2 | 2 |
Liability | 0 | 0 |
Net Asset (Liability) | $ 2 | $ 2 |
Derivatives - Outstanding Deriv
Derivatives - Outstanding Derivative Contracts (Details) - Not Designated as Hedges | Jun. 30, 2020Bbls_per_dayMMBTU_per_day$ / MMBTU$ / bbl |
Three-Way Collars - Crude Oil 2020 Q3 | |
Derivative [Line Items] | |
Derivative, volume | Bbls_per_day | 80,000 |
Derivative, ceiling | 64.40 |
Derivative, floor | 55 |
Derivative, sold put | 48 |
Three-Way Collars - Crude Oil 2020 Q4 | |
Derivative [Line Items] | |
Derivative, volume | Bbls_per_day | 80,000 |
Derivative, ceiling | 64.40 |
Derivative, floor | 55 |
Derivative, sold put | 48 |
Three-Way Collars - Crude Oil 2021 | |
Derivative [Line Items] | |
Derivative, volume | Bbls_per_day | 0 |
Derivative, ceiling | 0 |
Derivative, floor | 0 |
Derivative, sold put | 0 |
Two-Way Collars - Crude Oil 2020 Q3 | |
Derivative [Line Items] | |
Derivative, volume | Bbls_per_day | 33,478 |
Derivative, ceiling | 40.47 |
Derivative, floor | 30.98 |
Two-Way Collars - Crude Oil 2020 Q4 | |
Derivative [Line Items] | |
Derivative, volume | Bbls_per_day | 0 |
Derivative, ceiling | 0 |
Derivative, floor | 0 |
Two-Way Collars - Crude Oil 2021 | |
Derivative [Line Items] | |
Derivative, volume | Bbls_per_day | 0 |
Derivative, ceiling | 0 |
Derivative, floor | 0 |
Fixed Rate Swaps - Crude Oil 2020 Q3 | |
Derivative [Line Items] | |
Derivative, volume | Bbls_per_day | 10,000 |
Fixed Rate Swaps - Crude Oil 2020 Q3 | Short | |
Derivative [Line Items] | |
Derivative, weighted average price | 32.77 |
Fixed Rate Swaps - Crude Oil 2020 Q4 | |
Derivative [Line Items] | |
Derivative, volume | Bbls_per_day | 0 |
Fixed Rate Swaps - Crude Oil 2020 Q4 | Short | |
Derivative [Line Items] | |
Derivative, weighted average price | 0 |
Fixed Rate Swaps - Crude Oil 2021 | |
Derivative [Line Items] | |
Derivative, volume | Bbls_per_day | 0 |
Fixed Rate Swaps - Crude Oil 2021 | Short | |
Derivative [Line Items] | |
Derivative, weighted average price | 0 |
Midland Basis Swaps - Crude Oil 2020 Q3 | |
Derivative [Line Items] | |
Derivative, volume | Bbls_per_day | 15,000 |
Midland Basis Swaps - Crude Oil 2020 Q3 | Long | |
Derivative [Line Items] | |
Derivative, weighted average price | 0.94 |
Midland Basis Swaps - Crude Oil 2020 Q4 | |
Derivative [Line Items] | |
Derivative, volume | Bbls_per_day | 15,000 |
Midland Basis Swaps - Crude Oil 2020 Q4 | Long | |
Derivative [Line Items] | |
Derivative, weighted average price | 0.94 |
Midland Basis Swaps - Crude Oil 2021 | |
Derivative [Line Items] | |
Derivative, volume | Bbls_per_day | 0 |
Midland Basis Swaps - Crude Oil 2021 | Long | |
Derivative [Line Items] | |
Derivative, weighted average price | 0 |
Brent Basis Swaps - Crude Oil 2020 Q3 | |
Derivative [Line Items] | |
Derivative, volume | Bbls_per_day | 5,000 |
Brent Basis Swaps - Crude Oil 2020 Q3 | Long | |
Derivative [Line Items] | |
Derivative, weighted average price | 7.24 |
Brent Basis Swaps - Crude Oil 2020 Q4 | |
Derivative [Line Items] | |
Derivative, volume | Bbls_per_day | 5,000 |
Brent Basis Swaps - Crude Oil 2020 Q4 | Long | |
Derivative [Line Items] | |
Derivative, weighted average price | 7.24 |
Brent Basis Swaps - Crude Oil 2021 | |
Derivative [Line Items] | |
Derivative, volume | Bbls_per_day | 808 |
Brent Basis Swaps - Crude Oil 2021 | Long | |
Derivative [Line Items] | |
Derivative, weighted average price | 7.24 |
NYMEX Roll Basis Swaps - Crude Oil 2020 Q3 | |
Derivative [Line Items] | |
Derivative, volume | Bbls_per_day | 60,000 |
NYMEX Roll Basis Swaps - Crude Oil 2020 Q3 | Long | |
Derivative [Line Items] | |
Derivative, weighted average price | 1.58 |
NYMEX Roll Basis Swaps - Crude Oil 2020 Q4 | |
Derivative [Line Items] | |
Derivative, volume | Bbls_per_day | 30,000 |
NYMEX Roll Basis Swaps - Crude Oil 2020 Q4 | Long | |
Derivative [Line Items] | |
Derivative, weighted average price | 0.81 |
NYMEX Roll Basis Swaps - Crude Oil 2021 | |
Derivative [Line Items] | |
Derivative, volume | Bbls_per_day | 0 |
NYMEX Roll Basis Swaps - Crude Oil 2021 | Long | |
Derivative [Line Items] | |
Derivative, weighted average price | 0 |
Two-Way Collars - Natural Gas 2020 Q3 | |
Derivative [Line Items] | |
Derivative, volume | MMBTU_per_day | 0 |
Derivative, ceiling | $ / MMBTU | 0 |
Derivative, floor | $ / MMBTU | 0 |
Two-Way Collars - Natural Gas 2020 Q4 | |
Derivative [Line Items] | |
Derivative, volume | MMBTU_per_day | 0 |
Derivative, ceiling | $ / MMBTU | 0 |
Derivative, floor | $ / MMBTU | 0 |
Two-Way Collars - Natural Gas 2021 | |
Derivative [Line Items] | |
Derivative, volume | MMBTU_per_day | 62,329 |
Derivative, ceiling | $ / MMBTU | 3.07 |
Derivative, floor | $ / MMBTU | 2.44 |
WAHA/HH Basis Swaps - Natural Gas 2020 Q3 | |
Derivative [Line Items] | |
Derivative, volume | MMBTU_per_day | 10,000 |
WAHA/HH Basis Swaps - Natural Gas 2020 Q3 | Long | |
Derivative [Line Items] | |
Derivative, weighted average price | $ / MMBTU | 0.37 |
WAHA/HH Basis Swaps - Natural Gas 2020 Q4 | |
Derivative [Line Items] | |
Derivative, volume | MMBTU_per_day | 10,000 |
WAHA/HH Basis Swaps - Natural Gas 2020 Q4 | Long | |
Derivative [Line Items] | |
Derivative, weighted average price | $ / MMBTU | 0.37 |
WAHA/HH Basis Swaps - Natural Gas 2021 | |
Derivative [Line Items] | |
Derivative, volume | MMBTU_per_day | 0 |
WAHA/HH Basis Swaps - Natural Gas 2021 | Long | |
Derivative [Line Items] | |
Derivative, weighted average price | $ / MMBTU | 0 |
Derivatives - Subsequent Event
Derivatives - Subsequent Event Derivative Contracts (Details) - Not Designated as Hedges | Aug. 05, 2020Bbls_per_dayMMBTU_per_day$ / bbl$ / MMBTU | Jun. 30, 2020MMBTU_per_dayBbls_per_day$ / bbl$ / MMBTU |
Two-Way Collars - Crude Oil 2020 Q3 | ||
Derivative [Line Items] | ||
Derivative, volume | Bbls_per_day | 33,478 | |
Derivative, ceiling | 40.47 | |
Derivative, floor | 30.98 | |
Two-Way Collars - Crude Oil 2020 Q3 | Subsequent Event | ||
Derivative [Line Items] | ||
Derivative, volume | Bbls_per_day | 3,261 | |
Derivative, ceiling | 48 | |
Derivative, floor | 36.50 | |
Two-Way Collars - Crude Oil 2020 Q4 | ||
Derivative [Line Items] | ||
Derivative, volume | Bbls_per_day | 0 | |
Derivative, ceiling | 0 | |
Derivative, floor | 0 | |
Two-Way Collars - Crude Oil 2020 Q4 | Subsequent Event | ||
Derivative [Line Items] | ||
Derivative, volume | Bbls_per_day | 10,000 | |
Derivative, ceiling | 48.65 | |
Derivative, floor | 37 | |
Two-Way Collars - Crude Oil 2021 | ||
Derivative [Line Items] | ||
Derivative, volume | Bbls_per_day | 0 | |
Derivative, ceiling | 0 | |
Derivative, floor | 0 | |
Two-Way Collars - Crude Oil 2021 | Subsequent Event | ||
Derivative [Line Items] | ||
Derivative, volume | Bbls_per_day | 10,000 | |
Derivative, ceiling | 52.37 | |
Derivative, floor | 35 | |
Two-Way Collars - Natural Gas 2020 Q3 | ||
Derivative [Line Items] | ||
Derivative, volume | MMBTU_per_day | 0 | |
Derivative, ceiling | $ / MMBTU | 0 | |
Derivative, floor | $ / MMBTU | 0 | |
Two-Way Collars - Natural Gas 2020 Q3 | Subsequent Event | ||
Derivative [Line Items] | ||
Derivative, volume | MMBTU_per_day | 66,304 | |
Derivative, ceiling | $ / MMBTU | 2.49 | |
Derivative, floor | $ / MMBTU | 2 | |
Two-Way Collars - Natural Gas 2020 Q4 | ||
Derivative [Line Items] | ||
Derivative, volume | MMBTU_per_day | 0 | |
Derivative, ceiling | $ / MMBTU | 0 | |
Derivative, floor | $ / MMBTU | 0 | |
Two-Way Collars - Natural Gas 2020 Q4 | Subsequent Event | ||
Derivative [Line Items] | ||
Derivative, volume | MMBTU_per_day | 150,000 | |
Derivative, ceiling | $ / MMBTU | 2.62 | |
Derivative, floor | $ / MMBTU | 2.13 | |
Two-Way Collars - Natural Gas 2021 | ||
Derivative [Line Items] | ||
Derivative, volume | MMBTU_per_day | 62,329 | |
Derivative, ceiling | $ / MMBTU | 3.07 | |
Derivative, floor | $ / MMBTU | 2.44 | |
Two-Way Collars - Natural Gas 2021 | Subsequent Event | ||
Derivative [Line Items] | ||
Derivative, volume | MMBTU_per_day | 50,000 | |
Derivative, ceiling | $ / MMBTU | 2.93 | |
Derivative, floor | $ / MMBTU | 2.40 | |
Fixed Price Ethane Swaps - NGL 2020 Q3 | Subsequent Event | ||
Derivative [Line Items] | ||
Derivative, volume | Bbls_per_day | 7,304 | |
Fixed Price Ethane Swaps - NGL 2020 Q3 | Subsequent Event | Short | ||
Derivative [Line Items] | ||
Derivative, weighted average price | 8.78 | |
Fixed Price Ethane Swaps - NGL 2020 Q4 | Subsequent Event | ||
Derivative [Line Items] | ||
Derivative, volume | Bbls_per_day | 10,000 | |
Fixed Price Ethane Swaps - NGL 2020 Q4 | Subsequent Event | Short | ||
Derivative [Line Items] | ||
Derivative, weighted average price | 8.78 | |
Fixed Price Ethane Swaps - NGL 2021 | Subsequent Event | ||
Derivative [Line Items] | ||
Derivative, volume | Bbls_per_day | 0 | |
Fixed Price Ethane Swaps - NGL 2021 | Subsequent Event | Short | ||
Derivative [Line Items] | ||
Derivative, weighted average price | 0 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2020 | Aug. 06, 2020 | Dec. 31, 2019 | |
Interest Rate | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Deferred loss related to interest rate swaps | $ 24 | ||
Interest Rate Contract, Maturing November 1, 2022 [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, notional amount | $ 500 | ||
Weighted average interest rate, LIBOR | 0.99% | ||
Cash Flow Hedges | Interest Rate | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, notional amount | $ 320 | ||
Notes Due 2022 | Cash Flow Hedges | Interest Rate | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, notional amount | $ 500 | ||
Notes Due 2025 | Cash Flow Hedges | Interest Rate | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, notional amount | $ 300 | ||
Notes Due 2025 | Subsequent Event | Cash Flow Hedges | Interest Rate | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, notional amount | $ 50 | ||
Weighted average interest rate, LIBOR | 0.90% |
Derivatives - Schedule of mark-
Derivatives - Schedule of mark-to-market impact and commodity derivative settlements (Details) - Commodity - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Mark-to-market gain (loss) | $ (96) | $ 11 | $ 75 | $ (102) |
Net settlements of commodity derivative instruments | $ 26 | $ 5 | $ 57 | $ 27 |
Derivatives - Schedule of Inter
Derivatives - Schedule of Interest Rate Swap Agreements (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Interest Rate Contract, Maturing November 1, 2022 [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 500 | |
Weighted average interest rate, LIBOR | 0.99% | |
Interest Rate Contract, Maturing June 1, 2025 [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 300 | |
Weighted average interest rate, LIBOR | 0.96% | |
Interest Rate Contract, Maturing September 9, 2026 [Member] | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 320 | $ 320 |
Weighted average interest rate, LIBOR | 1.51% | 1.51% |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Values - Recurring (Details) - Recurring - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | $ 90 | $ 9 |
Derivative instruments, liabilities | (35) | (3) |
Total | 55 | 6 |
Commodity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 88 | 7 |
Derivative instruments, liabilities | (9) | (3) |
Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 2 | 2 |
Derivative instruments, liabilities | (26) | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 0 | 0 |
Derivative instruments, liabilities | (9) | (3) |
Total | (9) | (3) |
Level 1 | Commodity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 0 | 0 |
Derivative instruments, liabilities | (9) | (3) |
Level 1 | Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 0 | 0 |
Derivative instruments, liabilities | 0 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 90 | 9 |
Derivative instruments, liabilities | (26) | 0 |
Total | 64 | 9 |
Level 2 | Commodity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 88 | 7 |
Derivative instruments, liabilities | 0 | 0 |
Level 2 | Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 2 | 2 |
Derivative instruments, liabilities | (26) | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 0 | 0 |
Derivative instruments, liabilities | 0 | 0 |
Total | 0 | 0 |
Level 3 | Commodity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 0 | 0 |
Derivative instruments, liabilities | 0 | 0 |
Level 3 | Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, assets | 0 | $ 0 |
Derivative instruments, liabilities | $ 0 |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Values - Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value | ||
Financial assets | ||
Current assets | $ 4 | $ 4 |
Other noncurrent assets | 28 | 26 |
Total financial assets | 32 | 30 |
Financial liabilities | ||
Other current liabilities | 61 | 62 |
Long-term debt, including current portion | 5,558 | 6,174 |
Deferred credits and other liabilities | 105 | 99 |
Total financial liabilities | 5,724 | 6,335 |
Carrying Amount | ||
Financial assets | ||
Current assets | 4 | 4 |
Other noncurrent assets | 44 | 38 |
Total financial assets | 48 | 42 |
Financial liabilities | ||
Other current liabilities | 97 | 90 |
Long-term debt, including current portion | 5,530 | 5,529 |
Deferred credits and other liabilities | 84 | 86 |
Total financial liabilities | $ 5,711 | $ 5,705 |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facility (Details) - Revolving Credit Facility | Jun. 30, 2020USD ($) |
Line of Credit Facility [Line Items] | |
Line of credit, outstanding amount | $ 0 |
Maximum borrowing capacity | $ 3,000,000,000 |
Covenant, ratio of indebtedness to net capital, maximum | 0.65 |
Ratio of indebtedness to net capital | 0.33 |
Debt - Long-Term Debt (Details)
Debt - Long-Term Debt (Details) $ in Billions | Jun. 30, 2020USD ($) |
Debt Instrument [Line Items] | |
Outstanding debt | $ 5.5 |
Senior Unsecured Note Due 2022 | |
Debt Instrument [Line Items] | |
Outstanding debt | $ 1 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Shares repurchased | $ 91 | $ 236 | $ 30 | |
Share Repurchase Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Shares repurchased (in shares) | 9 | |||
Shares repurchased | $ 85 | |||
Stock repurchase program, remaining authorized repurchase amount | $ 1,300 |
Incentive Based Compensation -
Incentive Based Compensation - Stock Options, Restricted Stock Awards and Restricted Stock Units (Details) | 6 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Number of Shares | |
Outstanding, beginning (in shares) | shares | 5,659,731 |
Granted (in shares) | shares | 1,132,808 |
Options Exercised/Vested (in shares) | shares | (52,333) |
Canceled (in shares) | shares | (565,219) |
Outstanding, ending (in shares) | shares | 6,174,987 |
Weighted Average Exercise Price | |
Outstanding, beginning (in dollars per share) | $ 23.55 |
Granted (in dollars per share) | 10.47 |
Options Exercised (in dollars per share) | 7.22 |
Canceled (in dollars per share) | 23.52 |
Outstanding, ending (in dollars per share) | 21.29 |
Weighted Average Grant Date Fair Value | |
Weighted average grant date fair value (in dollars per share) | $ 3.82 |
Restricted Stock Awards & Units | |
Awards | |
Outstanding, beginning (in shares) | shares | 7,174,386 |
Granted (in shares) | shares | 5,337,796 |
Stock Exercised/Vested (in shares) | shares | (2,911,712) |
Canceled (in shares) | shares | (1,405,754) |
Outstanding, ending (in shares) | shares | 8,194,716 |
Weighted Average Grant Date Fair Value | |
Outstanding, beginning (in dollars per share) | $ 15.88 |
Granted (in dollars per share) | 8.55 |
Stock Vested (in dollars per share) | 15.93 |
Canceled (in dollars per share) | 11.70 |
Outstanding, ending (in dollars per share) | $ 11.80 |
Incentive Based Compensation _2
Incentive Based Compensation - Stock-based Performance Unit Awards (Details) - Granted Officer - Performance Unit Awards | 6 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 1,038,676 |
Grant date fair value (in dollars per share) | $ / shares | $ 10.55 |
Outstanding units (in shares) | 1,658,088 |
Defined Benefit Postretiremen_3
Defined Benefit Postretirement Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Amortization: | ||||
Net settlement loss | $ (7) | $ (2) | $ (7) | $ (7) |
Estimated future contributions over the remainder of the current year | 16 | 16 | ||
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 5 | 5 | 10 | 9 |
Interest cost | 2 | 7 | 5 | 14 |
Expected return on plan assets | (2) | (8) | (5) | (16) |
Amortization: | ||||
– prior service cost (credit) | (2) | (2) | (4) | (4) |
– actuarial loss | 2 | 2 | 5 | 4 |
Net settlement loss | 14 | 2 | 16 | 2 |
Net curtailment gain | (3) | 0 | (3) | 0 |
Net periodic benefit cost | 16 | 6 | 24 | 9 |
Other Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 0 | 1 | 1 | 2 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization: | ||||
– prior service cost (credit) | (5) | (4) | (9) | (8) |
– actuarial loss | 1 | 0 | 1 | 0 |
Net settlement loss | 0 | 0 | 0 | 0 |
Net curtailment gain | (14) | 0 | (14) | 0 |
Net periodic benefit cost | $ (18) | $ (3) | (21) | $ (6) |
Payment for other postretirement benefits | 8 | |||
Funded Plan | ||||
Amortization: | ||||
Payment for pension benefits | 12 | |||
Unfunded Plan | ||||
Amortization: | ||||
Payment for pension benefits | $ 14 |
Reclassifications Out of Accu_3
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Other net periodic benefit credit | $ 7 | $ 2 | $ 7 | $ 7 | ||
Net income | (750) | $ (46) | 161 | $ 174 | (796) | 335 |
Amortization of prior service credit | Reclassification out of Accumulated Other Comprehensive Income (Loss) | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Other net periodic benefit credit | 7 | 6 | 13 | 12 | ||
Amortization of actuarial loss | Reclassification out of Accumulated Other Comprehensive Income (Loss) | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Other net periodic benefit credit | (3) | (2) | (6) | (4) | ||
Net settlement loss | Reclassification out of Accumulated Other Comprehensive Income (Loss) | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Other net periodic benefit credit | (14) | (2) | (16) | (2) | ||
Net curtailment gain | Reclassification out of Accumulated Other Comprehensive Income (Loss) | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Other net periodic benefit credit | 17 | 0 | 17 | 0 | ||
Postretirement and postemployment plans | Reclassification out of Accumulated Other Comprehensive Income (Loss) | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Net income | $ 7 | $ 2 | $ 8 | $ 6 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Included in operating activities: | ||
Interest paid, net of amounts capitalized | $ 126 | $ 128 |
Income taxes paid to taxing authorities, net of refunds received | 4 | 66 |
Noncash investing activities: | ||
Increase (decrease) in asset retirement costs | (6) | 29 |
Asset retirement obligations assumed by buyer | 0 | 109 |
Proceeds from income tax refunds | 4 | 89 |
Capital expenditures incurred but not yet paid | $ 48 | 300 |
Droshky Field | ||
Noncash investing activities: | ||
Asset retirement obligations assumed by buyer | $ 98 |
Equity Method Investments - Nar
Equity Method Investments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||||
Revenue from related parties | $ 10 | $ 11 | $ 20 | $ 21 | |
Due from related parties | 25 | 25 | $ 28 | ||
Due to related parties | $ 10 | $ 10 | $ 11 | ||
EGHoldings | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 60.00% | 60.00% | |||
Alba Plant LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 52.00% | 52.00% | |||
AMPCO | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 45.00% | 45.00% |
Equity Method Investments - Sch
Equity Method Investments - Schedule of Equity Method Investments (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | $ 476 | $ 663 |
EGHoldings | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 60.00% | |
Equity method investments | $ 139 | 310 |
Alba Plant LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 52.00% | |
Equity method investments | $ 168 | 163 |
AMPCO | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 45.00% | |
Equity method investments | $ 169 | $ 190 |
Equity Method Investments - Sum
Equity Method Investments - Summarized Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | ||||
Revenues and other income | $ 111 | $ 233 | $ 283 | $ 453 |
Income (loss) from operations | (10) | 82 | (40) | 131 |
Net income (loss) | $ (13) | $ 63 | $ (39) | $ 95 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Jun. 30, 2020USD ($) |
Loss Contingencies [Line Items] | |
Guarantees recorded | $ 4,000,000 |
Contingent royalty liability | 101,000,000 |
Contingent capital and expense receivable, noncurrent | 25,000,000 |
Estimated minimum monetary sanctions for Clean Air Act enforcement action | 100,000 |
Performance of Equatorial Guinea LNG Operations, S.A. | |
Loss Contingencies [Line Items] | |
Guarantor obligations, maximum exposure | 91,000,000 |
Performance of Alba Plant LLC. | |
Loss Contingencies [Line Items] | |
Guarantor obligations, maximum exposure | $ 25,000,000 |
Uncategorized Items - mro-20200
Label | Element | Value |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Disposal Group, Including Discontinued Operations | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsDisposalGroupIncludingDiscontinuedOperations | $ 0 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Disposal Group, Including Discontinued Operations | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsDisposalGroupIncludingDiscontinuedOperations | 335,000,000 |
Cash and Cash Equivalents, at Carrying Value | us-gaap_CashAndCashEquivalentsAtCarryingValue | 961,000,000 |
Cash and Cash Equivalents, at Carrying Value | us-gaap_CashAndCashEquivalentsAtCarryingValue | $ 522,000,000 |