Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 04, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-13245 | |
Entity Registrant Name | PIONEER NATURAL RESOURCES CO | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 75-2702753 | |
Entity Address, Address Line One | 5205 N. O'Connor Blvd. | |
Entity Address, Address Line Two | Suite 200 | |
Entity Address, City or Town | Irving | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75039 | |
City Area Code | 972 | |
Local Phone Number | 444-9001 | |
Title of 12(b) Security | Common Stock, par value $.01 per share | |
Trading Symbol | PXD | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 165,646,527 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0001038357 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 437 | $ 825 |
Restricted cash | 76 | 0 |
Short-term investments | 0 | 443 |
Accounts receivable: | ||
Trade, net | 848 | 694 |
Due from affiliates | 5 | 120 |
Income taxes receivable | 6 | 7 |
Inventories | 246 | 242 |
Derivatives | 133 | 52 |
Investment in affiliate | 151 | 172 |
Other | 21 | 25 |
Total current assets | 1,923 | 2,580 |
Oil and gas properties, successful efforts method of accounting: | ||
Proved properties | 21,948 | 21,165 |
Unproved properties | 604 | 601 |
Accumulated depletion, depreciation and amortization | (8,281) | (8,218) |
Total oil and gas properties, net | 14,271 | 13,548 |
Other property and equipment, net | 1,056 | 1,291 |
Operating lease right-of-use assets | 320 | 0 |
Long-term investments | 0 | 125 |
Goodwill | 261 | 264 |
Derivatives | 16 | 0 |
Other assets | 231 | 95 |
Total Assets | 18,078 | 17,903 |
Accounts payable: | ||
Trade | 1,202 | 1,441 |
Due to affiliates | 215 | 183 |
Interest payable | 25 | 53 |
Income taxes payable | 0 | 2 |
Current portion of long-term debt | 450 | 0 |
Derivatives | 6 | 27 |
Operating leases | 139 | 0 |
Other | 423 | 112 |
Total current liabilities | 2,460 | 1,818 |
Long-term debt | 1,838 | 2,284 |
Deferred income taxes | 1,279 | 1,152 |
Operating leases | 183 | 0 |
Other liabilities | 462 | 538 |
Equity: | ||
Common stock, $.01 par value | 2 | 2 |
Additional paid-in capital | 9,142 | 9,062 |
Treasury stock at cost | (1,043) | (423) |
Retained earnings | 3,755 | 3,470 |
Total equity | 11,856 | 12,111 |
Commitments and contingencies | ||
Total Liabilities and Equity | $ 18,078 | $ 17,903 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (usd per share) | $ 0.01 | |
Common stock, shares authorized | 500,000,000 | |
Common stock, shares issued | 174,963,254 | 174,321,171 |
Treasury stock, shares | 9,319,989 | 4,822,069 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues and other income: | ||||
Revenue | $ 2,406 | $ 2,458 | $ 7,030 | $ 7,175 |
Interest and other income (loss), net | (222) | 10 | (42) | 40 |
Derivative gain (loss), net | 121 | (135) | 150 | (701) |
Gain (loss) on disposition of assets, net | 20 | 143 | (477) | 226 |
Total revenues and other income | 2,325 | 2,476 | 6,661 | 6,740 |
Costs and expenses: | ||||
Production and ad valorem taxes | 86 | 83 | 223 | 229 |
Depletion, depreciation and amortization | 438 | 394 | 1,271 | 1,130 |
Impairment of oil and gas properties | 0 | 0 | 0 | 77 |
Exploration and abandonments | 11 | 20 | 46 | 83 |
General and administrative | 72 | 96 | 246 | 282 |
Accretion of discount on asset retirement obligations | 2 | 3 | 7 | 11 |
Interest | 29 | 30 | 88 | 97 |
Other | 32 | 182 | 390 | 316 |
Costs and Expenses | 2,022 | 1,947 | 6,122 | 5,900 |
Income before income taxes | 303 | 529 | 539 | 840 |
Income tax provision | (72) | (118) | (127) | (188) |
Net income | 231 | 411 | 412 | 652 |
Net loss attributable to noncontrolling interests | 0 | 0 | 0 | 3 |
Net income attributable to common stockholders | $ 231 | $ 411 | $ 412 | $ 655 |
Net income per share attributable to common stockholders: | ||||
Earnings Per Share, Basic | $ 1.38 | $ 2.40 | $ 2.44 | $ 3.82 |
Earnings Per Share, Diluted | $ 1.38 | $ 2.39 | $ 2.44 | $ 3.82 |
Weighted average shares outstanding: | ||||
Basic (shares) | 167,000 | 171,000 | 168,000 | 171,000 |
Diluted (shares) | 167,000 | 171,000 | 168,000 | 171,000 |
Dividends declared per share (usd per share) | $ 0.44 | $ 0.16 | $ 0.76 | $ 0.32 |
Earnings Per Share, Diluted | $ 1.38 | $ 2.39 | $ 2.44 | $ 3.82 |
Oil and gas | ||||
Revenues and other income: | ||||
Revenue | $ 1,235 | $ 1,317 | $ 3,567 | $ 3,869 |
Costs and expenses: | ||||
Costs and expenses | 227 | 198 | 667 | 654 |
Sales of purchased oil and gas | ||||
Revenues and other income: | ||||
Revenue | 1,171 | 1,141 | 3,463 | 3,306 |
Costs and expenses: | ||||
Costs and expenses | $ 1,125 | $ 941 | $ 3,184 | $ 3,021 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Millions | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Noncontrolling Interests |
Beginning Balance (shares) at Dec. 31, 2017 | 170,189 | |||||
Beginning Balance at Dec. 31, 2017 | $ 11,279 | $ 2 | $ 8,974 | $ (249) | $ 2,547 | $ 5 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends declared | (27) | (27) | ||||
Purchases of treasury stock (shares) | (262) | |||||
Purchases of treasury stock | (45) | (45) | ||||
Stock-based compensation costs: | ||||||
Issued awards (shares) | 492 | |||||
Issued awards | 0 | |||||
Compensation costs included in net loss | 17 | 17 | ||||
Net income | 178 | 178 | ||||
Ending Balance (shares) at Mar. 31, 2018 | 170,419 | |||||
Ending Balance at Mar. 31, 2018 | 11,402 | $ 2 | 8,991 | (294) | 2,698 | 5 |
Stock-based compensation costs: | ||||||
Purchases of treasury stock (shares) | 262 | |||||
Purchases of treasury stock | 45 | 45 | ||||
Issued awards (shares) | 492 | |||||
Issued awards | 0 | |||||
Beginning Balance (shares) at Dec. 31, 2017 | 170,189 | |||||
Beginning Balance at Dec. 31, 2017 | 11,279 | $ 2 | 8,974 | (249) | 2,547 | 5 |
Stock-based compensation costs: | ||||||
Net income | 652 | |||||
Ending Balance (shares) at Sep. 30, 2018 | 170,462 | |||||
Ending Balance at Sep. 30, 2018 | 11,894 | $ 2 | 9,041 | (296) | 3,147 | 0 |
Beginning Balance (shares) at Mar. 31, 2018 | 170,419 | |||||
Beginning Balance at Mar. 31, 2018 | 11,402 | $ 2 | 8,991 | (294) | 2,698 | 5 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of long-term incentive stock options and employee stock purchases (shares) | 7 | |||||
Exercise of long-term incentive stock options and employee stock purchases | 1 | 1 | ||||
Purchases of treasury stock (shares) | (31) | |||||
Purchases of treasury stock | (6) | (6) | ||||
Stock-based compensation costs: | ||||||
Issued awards (shares) | 6 | |||||
Compensation costs included in net loss | 24 | 24 | ||||
Sale of noncontrolling interest | (2) | (2) | ||||
Net income | 63 | 66 | (3) | |||
Ending Balance (shares) at Jun. 30, 2018 | 170,401 | |||||
Ending Balance at Jun. 30, 2018 | 11,484 | $ 2 | 9,015 | (299) | 2,764 | 2 |
Stock-based compensation costs: | ||||||
Purchases of treasury stock (shares) | 31 | |||||
Purchases of treasury stock | 6 | 6 | ||||
Issued awards (shares) | 6 | |||||
Dividends declared | (28) | (28) | ||||
Exercise of long-term incentive stock options and employee stock purchases (shares) | 51 | |||||
Exercise of long-term incentive stock options and employee stock purchases | 7 | 4 | 3 | |||
Purchases of treasury stock (shares) | (3) | |||||
Purchases of treasury stock | 0 | |||||
Issued awards (shares) | 13 | |||||
Issued awards | 0 | |||||
Compensation costs included in net loss | 22 | 22 | ||||
Net income | 411 | 411 | ||||
Ending Balance (shares) at Sep. 30, 2018 | 170,462 | |||||
Ending Balance at Sep. 30, 2018 | 11,894 | $ 2 | 9,041 | (296) | 3,147 | $ 0 |
Stock-based compensation costs: | ||||||
Purchases of treasury stock (shares) | 3 | |||||
Purchases of treasury stock | 0 | |||||
Issued awards (shares) | 13 | |||||
Issued awards | 0 | |||||
Beginning Balance (shares) at Dec. 31, 2018 | 169,499 | |||||
Beginning Balance at Dec. 31, 2018 | 12,111 | $ 2 | 9,062 | (423) | 3,470 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends declared | (54) | (54) | ||||
Exercise of long-term incentive stock options and employee stock purchases (shares) | 10 | |||||
Exercise of long-term incentive stock options and employee stock purchases | 0 | (1) | 1 | |||
Purchases of treasury stock (shares) | (1,594) | |||||
Purchases of treasury stock | (222) | (222) | ||||
Stock-based compensation costs: | ||||||
Issued awards (shares) | 507 | |||||
Issued awards | 0 | |||||
Compensation costs included in net loss | 24 | 24 | ||||
Net income | 350 | 350 | ||||
Ending Balance (shares) at Mar. 31, 2019 | 168,422 | |||||
Ending Balance at Mar. 31, 2019 | 12,209 | $ 2 | 9,085 | (644) | 3,766 | |
Stock-based compensation costs: | ||||||
Purchases of treasury stock (shares) | 1,594 | |||||
Purchases of treasury stock | 222 | 222 | ||||
Issued awards (shares) | 507 | |||||
Issued awards | 0 | |||||
Beginning Balance (shares) at Dec. 31, 2018 | 169,499 | |||||
Beginning Balance at Dec. 31, 2018 | 12,111 | $ 2 | 9,062 | (423) | 3,470 | |
Stock-based compensation costs: | ||||||
Net income | 412 | |||||
Ending Balance (shares) at Sep. 30, 2019 | 165,643 | |||||
Ending Balance at Sep. 30, 2019 | 11,856 | $ 2 | 9,142 | (1,043) | 3,755 | |
Beginning Balance (shares) at Mar. 31, 2019 | 168,422 | |||||
Beginning Balance at Mar. 31, 2019 | 12,209 | $ 2 | 9,085 | (644) | 3,766 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Purchases of treasury stock (shares) | (1,349) | |||||
Purchases of treasury stock | (202) | (202) | ||||
Stock-based compensation costs: | ||||||
Issued awards (shares) | 49 | |||||
Issued awards | 0 | |||||
Compensation costs included in net loss | 38 | 38 | ||||
Net income | (169) | (169) | ||||
Ending Balance (shares) at Jun. 30, 2019 | 167,122 | |||||
Ending Balance at Jun. 30, 2019 | 11,876 | $ 2 | 9,123 | (846) | 3,597 | |
Stock-based compensation costs: | ||||||
Purchases of treasury stock (shares) | 1,349 | |||||
Purchases of treasury stock | 202 | 202 | ||||
Issued awards (shares) | 49 | |||||
Issued awards | 0 | |||||
Dividends declared | (73) | (73) | ||||
Exercise of long-term incentive stock options and employee stock purchases (shares) | 54 | |||||
Exercise of long-term incentive stock options and employee stock purchases | 6 | 0 | 6 | |||
Purchases of treasury stock (shares) | (1,619) | |||||
Purchases of treasury stock | (203) | (203) | ||||
Issued awards (shares) | 86 | |||||
Issued awards | 0 | |||||
Compensation costs included in net loss | 19 | 19 | ||||
Net income | 231 | 231 | ||||
Ending Balance (shares) at Sep. 30, 2019 | 165,643 | |||||
Ending Balance at Sep. 30, 2019 | 11,856 | $ 2 | $ 9,142 | (1,043) | $ 3,755 | |
Stock-based compensation costs: | ||||||
Purchases of treasury stock (shares) | 1,619 | |||||
Purchases of treasury stock | 203 | $ 203 | ||||
Issued awards (shares) | 86 | |||||
Issued awards | $ 0 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Dividends declared (usd per share) | $ 0.44 | $ 0.32 | $ 0.16 | $ 0.16 | $ 0.76 | $ 0.32 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 412 | $ 652 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depletion, depreciation and amortization | 1,271 | 1,130 |
Impairment of oil and gas properties | 0 | 77 |
Impairment of inventory and other property and equipment | 34 | 9 |
Exploration expenses, including dry holes | 6 | 12 |
Deferred income taxes | 127 | 186 |
(Gain) loss on disposition of assets, net | 477 | (226) |
Accretion of discount on asset retirement obligations | 7 | 11 |
Interest expense | 4 | 4 |
Derivative-related activity | (116) | 307 |
Amortization of stock-based compensation | 81 | 63 |
Investment in affiliate mark-to-market adjustment | 22 | 0 |
Contingent consideration valuation adjustment | 61 | 0 |
Other | 96 | 176 |
Change in operating assets and liabilities: | ||
Accounts receivable | (47) | (233) |
Inventories | (55) | (70) |
Investments | 0 | 4 |
Other current assets | (15) | (1) |
Accounts payable | 1 | 305 |
Interest payable | (29) | (34) |
Other current liabilities | (50) | (44) |
Net cash provided by operating activities | 2,287 | 2,328 |
Cash flows from investing activities: | ||
Proceeds from disposition of assets, net of cash sold | 82 | 383 |
Proceeds from investments | 568 | 1,140 |
Purchases of investments | 0 | (618) |
Additions to oil and gas properties | (2,380) | (2,495) |
Additions to other assets and other property and equipment | (184) | (187) |
Net cash used in investing activities | (1,914) | (1,777) |
Cash flows from financing activities: | ||
Principal payments on long-term debt | 0 | (450) |
Purchases of treasury stock | (627) | (51) |
Exercise of long-term incentive plan stock options and employee stock purchases | 6 | 8 |
Payments of other liabilities | (10) | (8) |
Dividends paid | (54) | (27) |
Net cash used in financing activities | (685) | (528) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (312) | 23 |
Cash, cash equivalents and restricted cash, beginning of period | 825 | 896 |
Cash, cash equivalents and restricted cash, end of period | $ 513 | $ 919 |
Organization and Nature of Oper
Organization and Nature of Operations | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Operations | Organization and Nature of OperationsPioneer Natural Resources Company ("Pioneer" or the "Company") is a Delaware corporation whose common stock is listed and traded on the New York Stock Exchange. The Company is a large independent oil and gas exploration and production company that explores for, develops and produces oil, natural gas liquids ("NGLs") and gas in the Permian Basin in West Texas. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Presentation. In the opinion of management, the unaudited interim consolidated financial statements of the Company as of September 30, 2019 and for the three and nine months ended September 30, 2019 and 2018 include all adjustments and accruals, consisting only of normal, recurring adjustments and accruals necessary for a fair presentation of the results for the interim periods in conformity with generally accepted accounting principles in the United States ("GAAP"). The operating results for the three and nine months ended September 30, 2019 are not necessarily indicative of results for a full year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted in accordance with the rules and regulations of the United States Securities and Exchange Commission (the "SEC"). These unaudited interim consolidated financial statements should be read together with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2018. Certain reclassifications have been made to prior period amounts to conform to the current period's presentation. Use of estimates in the preparation of financial statements. Preparation of the Company's unaudited interim consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Depletion of oil and gas properties and evaluations for impairment of goodwill and proved and unproved oil and gas properties, in part, is determined using estimates of proved, probable and possible oil and gas reserves. There are numerous uncertainties inherent in the estimation of quantities of proved, probable and possible reserves and in the projection of future rates of production and the timing of development expenditures. Similarly, evaluations for impairment of proved and unproved oil and gas properties are subject to numerous uncertainties including, among others, estimates of future recoverable reserves and commodity price outlooks. Actual results could differ from the estimates and assumptions utilized. Adoption of new accounting standards. In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, "Leases (Topic 842)" ("ASC 842"), which supersedes the lease recognition requirements in Accounting Standards Codification ("ASC") 840, "Leases" ("ASC 840"), and requires lessees to recognize lease assets and lease liabilities for those leases previously classified as operating leases. The Company adopted ASC 842 as of January 1, 2019 using the modified retrospective transition method. The Company elected to apply the transition guidance under ASU 2018-11, "Leases (Topic 842) Targeted Improvements," in which ASC 842 is applied at the adoption date, while the comparative periods continue to be reported in accordance with historic accounting under ASC 840. This standard does not apply to leases to explore for or use minerals, oil or gas resources, including the right to explore for those natural resources and rights to use the land in which those natural resources are contained. ASC 842 allowed for the election of certain practical expedients at adoption to ease the burden of implementation. At implementation, the Company elected to (i) maintain the historical lease classification for leases prior to January 1, 2019, (ii) maintain the historical accounting treatment for land easements that existed at adoption, (iii) use historical practices in assessing the lease term of existing contracts at adoption, (iv) combine lease and non-lease components of a contract as a single lease and (v) not record short-term leases in the consolidated balance sheet, all in accordance with ASC 842. The adoption of ASC 842 did not have a material impact on the consolidated statements of operations and had no impact on the Company's cash flows. The Company did not record a change to its opening retained earnings as of January 1, 2019, as there was no material change to the timing or pattern of recognition of lease costs due to the adoption of ASC 842. As of December 31, 2018, the Company was the deemed owner of the Company's new corporate headquarters (for accounting purposes) during the construction period and was following the build-to-suit accounting guidance under ASC 840. On January 1, 2019, upon the adoption of ASC 842, the Company derecognized $217 million of other property and equipment and $219 million of build-to-suit lease liability costs associated with the building as this contract no longer qualifies for capitalization. The contract will be evaluated and recorded in the consolidated balance sheets upon lease commencement, which is expected to occur during the fourth quarter of 2019. See Note 10 for additional information. New accounting pronouncements. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13"). ASU 2016-13 changes the impairment model for most financial assets and certain other instruments, including trade and other receivables, and requires entities to use a new forward-looking expected loss model that will result in the earlier recognition of allowances for losses. This update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. Entities will use the modified retrospective approach to apply the standard's provisions and record a cumulative-effect adjustment to retained earnings for additional receivable loss allowances, if any, as of the beginning of the first reporting period in which the guidance is adopted. The Company continues to evaluate ASU 2016-13, but does not expect that it will have a material impact on its consolidated financial statements. |
Divestitures, Decommissioning a
Divestitures, Decommissioning and Restructuring Activities | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures, Decommissioning and Restructuring Activities | Divestitures, Decommissioning and Restructuring Activities Divestitures • In July 2019, the Company completed the sale of certain vertical wells and approximately 1,400 undeveloped acres in Martin County of the Permian Basin to an unaffiliated third party for net cash proceeds of $27 million, after normal closing adjustments. The Company recorded a gain of $26 million associated with the sale. • In June 2019, the Company completed the sale of certain vertical wells and approximately 1,900 undeveloped acres in Martin County of the Permian Basin to an unaffiliated third party for net cash proceeds of $38 million, after normal closing adjustments. The Company recorded a gain of $31 million associated with the sale. • In May 2019, the Company announced its plans to divest of its ownership interest in certain gas gathering and processing assets operated by a third party. The Company's divestiture process is ongoing, but no assurance can be given that this divestiture will be completed in accordance with the Company's plans or on terms and at a price that is acceptable to the Company as a result of the current weakness in NGL and gas prices. • In May 2019, the Company completed the sale of its Eagle Ford assets and other remaining assets in South Texas (the "South Texas Divestiture") to an unaffiliated third party in exchange for total consideration having an estimated fair value of $210 million, after normal closing adjustments. The fair value of the consideration included (i) net cash proceeds of $2 million, (ii) $136 million in contingent consideration and (iii) a $72 million receivable associated with estimated deficiency fees to be paid by the buyer. Of the total consideration, $208 million is considered a noncash investing activity for the nine months ended September 30, 2019. The Company recorded a loss of $525 million and recognized employee-related charges of $20 million associated with the sale. Contingent Consideration. Per the terms of the purchase and sale agreement, the Company is entitled to receive contingent consideration of up to $450 million based on future annual oil and NGL prices during each of the years from 2020 to 2024. The Company determined the fair value of the contingent consideration as of the date of the sale to be $136 million using an option pricing model. The contingent consideration is included in noncurrent other assets in the consolidated balance sheets. The Company revalues the contingent consideration each reporting period and records the resulting valuation changes in net interest and other income (loss) in the consolidated statements of operations. See Note 4 , N o te 5 and Note 1 4 for additional information. Deficiency Fee Obligation. The Company transferred its long-term midstream agreements and associated minimum volume commitments ("MVC") to the buyer. However, the Company retained the obligation to pay 100 percent of any deficiency fees associated with the MVC from January 2019 through July 2022. The Company determined the fair value of the deficiency fee obligation as of the date of the sale to be $348 million using a probability weighted present value model. The deficiency fee obligation is included in current or noncurrent liabilities in the consolidated balance sheets, depending on the timing of payments. See Note 4 for additional information. Deficiency Fee Receivable. The buyer is required to reimburse the Company for up to 20 percent of the deficiency fees paid under the transferred midstream agreements from January 2019 through July 2022. Such reimbursement will be paid by the buyer in installments beginning in 2023 through 2025. The Company determined the fair value of the deficiency fee receivable as of the date of the sale to be $72 million using a credit risk-adjusted valuation model. The deficiency fee receivable is included in noncurrent other assets in the consolidated balance sheets. See Note 4 for additional information. Restricted Cash. As of the date of the sale, the Company deposited $75 million into an escrow account to be used to fund future deficiency fee payments. Accordingly, $76 million, including $1 million of interest income, is included in restricted cash in the consolidated balance sheet as of September 30, 2019. Beginning in 2021, the required escrow balance will decline to $50 million and, to the extent that there is any remaining balance after the payment of deficiency fees, the balance will become unrestricted and revert to the Company on March 31, 2023. • In December 2018, the Company completed the sale of its pressure pumping assets to ProPetro Holding Corp. ("ProPetro") in exchange for total consideration of $282 million, comprised of 16.6 million shares of ProPetro's common stock, which was delivered as of the date of the sale and had a fair value of $172 million, and $110 million in cash, which was received during the first quarter of 2019. ◦ During 2018, the Company recorded a gain of $30 million, employee-related charges of $19 million, contract termination charges of $13 million and other divestiture related charges of $6 million associated with the sale. See Note 12 for additional information. ◦ During the nine months ended September 30, 2019, the Company reduced the gain associated with the sale by $10 million and recorded additional employee-related charges of $1 million. • In August 2018, the Company completed the sale of its assets in the West Panhandle gas and liquids field to an unaffiliated third party for net cash proceeds of $170 million, after normal closing adjustments. During 2018, the Company recorded a gain of $127 million and employee-related charges of $7 million associated with the sale. • In July 2018, the Company completed the sale of its gas field assets in the Raton Basin to an unaffiliated third party for net cash proceeds of $54 million, after normal closing adjustments. The Company recorded a noncash impairment charge of $77 million in June 2018 to reduce the carrying value of its Raton Basin assets to their estimated fair value less costs to sell as the assets were considered held for sale. During 2018, the Company recorded a gain of $2 million and other divestiture-related charges of $117 million, including $111 million of estimated deficiency charges related to certain firm transportation contracts retained by the Company and employee-related charges of $6 million associated with the sale. • In April 2018, the Company completed the sale of approximately 10,200 net acres in the West Eagle Ford Shale gas and liquids field to an unaffiliated third party for net cash proceeds of $100 million, after normal closing adjustments. During 2018, the Company recorded a gain of $75 million associated with the sale. Decommissioning In November 2018, the Company announced plans to close its sand mine located in Brady, Texas and transition its proppant supply requirements to West Texas sand sources. During the nine months ended September 30, 2019, the Company recorded $23 million of accelerated depreciation, $13 million of inventory and other property and equipment impairment charges and $13 million of sand mine closure-related costs. Restructuring During 2019, the Company implemented a corporate restructuring program to align its cost structure with the needs of a Permian Basin-focused company. The restructuring occurred in three phases (collectively, the "Corporate Restructuring Program") as follows: • In March 2019, the Company made certain changes to its leadership and organizational structure, which included the early retirement and departure of certain officers of the Company, • In April 2019, the Company adopted a voluntary separation program ("VSP") for certain eligible employees, and • In May 2019, the Company implemented an involuntary separation program ("ISP"). During the nine months ended September 30, 2019, the Company recorded $159 million of employee-related charges, including $26 million of noncash stock-based compensation expense related to the accelerated vesting of certain equity awards, associated with the Corporate Restructuring Program. See Note 8 and Note 15 for additional information. The employee-related costs are primarily recorded in other expense in the consolidated statements of operations. Obligations associated with employee-related charges are included in accounts payable - due to affiliates in the consolidated balance sheets. The changes in the Company's total employee-related obligations are as follows: Nine Months Ended (in millions) Beginning employee-related obligations $ 27 Additions ( Note 15 ) 156 Cash payments (154) Ending employee-related obligations $ 29 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company determines fair value based on the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are based upon inputs that market participants use in pricing an asset or liability, which are characterized according to a hierarchy that prioritizes those inputs based on the degree to which they are observable. Observable inputs represent market data obtained from independent sources, whereas unobservable inputs reflect a company's own market assumptions, which are used if observable inputs are not reasonably available without undue cost and effort. The fair value input hierarchy level to which an asset or liability measurement in its entirety falls is determined based on the lowest level input that is significant to the measurement in its entirety. The three input levels of the fair value hierarchy are as follows: • Level 1 – quoted prices for identical assets or liabilities in active markets. • Level 2 – quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g. interest rates) and inputs derived principally from or corroborated by observable market data by correlation or other means. • Level 3 – unobservable inputs for the asset or liability, typically reflecting management's estimate of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore, determined using model-based techniques, including discounted cash flow models. Assets and liabilities measured at fair value on a recurring basis. Assets and liabilities measured at fair value on a recurring basis are as follows: As of September 30, 2019 Fair Value Measurement Quoted Prices in Significant Significant Total (in millions) Assets: Commodity price derivatives $ — $ 149 $ — $ 149 Deferred compensation plan assets 83 — — 83 Investment in affiliate 151 — — 151 Contingent consideration — 75 — 75 Total assets 234 224 — 458 Liabilities: Commodity price derivatives — 6 — 6 $ 234 $ 218 $ — $ 452 As of December 31, 2018 Fair Value Measurement Quoted Prices in Active Markets for Significant Significant Total (in millions) Assets: Commodity price derivatives $ — $ 52 $ — $ 52 Deferred compensation plan assets 82 — — 82 Investment in affiliate — 172 — 172 Total assets 82 224 — 306 Liabilities: Commodity price derivatives — 27 — 27 $ 82 $ 197 $ — $ 279 Commodity price derivatives. The Company's commodity price derivatives represent oil, NGL and gas swap contracts, collar contracts, collar contracts with short puts, call contracts and basis swap contracts. The asset and liability measurements for the Company's commodity price derivative contracts are determined using Level 2 inputs. The Company utilizes discounted cash flow and option-pricing models for valuing its commodity price derivatives. The asset and liability values attributable to the Company's commodity price derivatives were determined based on inputs that include (i) the contracted notional volumes, (ii) independent active market price quotes, (iii) the applicable estimated credit-adjusted risk-free rate yield curve and (iv) the implied rate of volatility inherent in the call contracts, collar contracts and collar contracts with short puts, which is based on active and independent market-quoted volatility factors. Deferred compensation plan assets. The Company's deferred compensation plan assets include investments in equity and mutual fund securities that are actively traded on major exchanges. The fair value of these investments is determined using Level 1 inputs based on observable prices on major exchanges. Investment in affiliate. The Company elected the fair value option for measuring its equity method investment in ProPetro. The fair value of its investment in ProPetro is determined using Level 1 inputs based on observable prices on a major exchange. As of December 31, 2018, the fair value of the Company's investment in ProPetro was determined using Level 2 inputs, including the quoted market price for the stock adjusted to reflect a discount due to restrictions on the Company's ability to sell the investment prior to July 1, 2019. See Note 12 and Note 14 for additional information. Contingent consideration. The Company has a right to receive contingent consideration in conjunction with the South Texas Divestiture of up to $450 million based on future oil and NGL prices during each of the years from 2020 to 2024. The fair value of the contingent consideration is determined using Level 2 inputs based on an option pricing model using quoted future commodity prices based on active markets, implied volatility factors and counterparty credit risk assessments. See Note 3 and Note 5 for additional information. Assets and liabilities measured at fair value on a nonrecurring basis. Certain assets and liabilities are measured at fair value on a nonrecurring basis. These assets and liabilities are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances. These assets and liabilities can include inventory, proved and unproved oil and gas properties and other long-lived assets that are written down to fair value when they are impaired or held for sale. Other assets. During the nine months ended September 30, 2019, the Company impaired the remaining $13 million of inventory and other property and equipment related to the decommissioning of the Company's Brady, Texas sand mine, as these assets had no remaining future economic value. In addition, the Company recognized a $16 million impairment charge related to pressure pumping assets that were excluded from the December 2018 sale of the Company's pumping services assets. See Note 15 for additional information. South Texas Divestiture. The Company recorded a deficiency fee obligation and related deficiency fee receivable in conjunction with the South Texas Divestiture. The fair value of the deficiency fee obligation and deficiency fee receivable was determined using Level 3 inputs based on a probability-weighted forecast that considers historical results, market conditions and various development plans to arrive at the estimated present value of the deficiency payments and corresponding receipts. The present value of the future cash payments and expected cash receipts were determined using a 2.9 percent and 3.2 percent discount rate, respectively, based on the estimated timing of future payments and receipts and the Company's counterparty credit risk assessments. See Note 3 and Note 11 for additional information. Sale of Raton Basin assets . In June 2018, the Company recognized impairment charges of $77 million to reduce the carrying value of its Raton Basin gas field assets to the agreed upon sales price for these assets, which were sold in July 2018. The impairment charges included $65 million attributable to proved oil and gas properties and $12 million attributable to other property and equipment. The impairment charges were recorded in impairment of oil and gas properties in the consolidated statement of operations. The Company also recorded contract termination charges of $111 million attributable to estimated deficiency fees related to certain firm transportation contracts retained by the Company. The fair value of these contracts was determined using Level 2 inputs, including an annual discount rate of 4.4 percent, to discount the expected future cash flows. See Note 3 and Note 11 for additional information. Financial instruments not carried at fair value. Carrying values and fair values of financial instruments that are not carried at fair value in the consolidated balance sheets are as follows: As of September 30, 2019 As of December 31, 2018 Carrying Fair Carrying Fair (in millions) Assets: Cash and cash equivalents: Cash (a) $ 437 $ 437 $ 775 $ 775 Time deposits (a) — — 50 50 Total $ 437 $ 437 $ 825 $ 825 Restricted cash (a) $ 76 $ 76 $ — $ — Short-term investments: Commercial paper (b) $ — $ — $ 53 $ 53 Corporate bonds (c) — — 290 288 Time deposits (b) — — 100 100 Total $ — $ — $ 443 $ 441 Long-term investments: Corporate bonds (c) $ — $ — $ 125 $ 125 Liabilities: Current portion of long-term debt (d) $ 450 $ 456 $ — $ — Long-term debt (d) $ 1,838 $ 1,991 $ 2,284 $ 2,374 ______________________ (a) Fair value approximates carrying value due to the short-term nature of the instruments. (b) Fair value is determined using Level 2 inputs. (c) Fair value is determined using Level 1 inputs. (d) Fair value is determined using Level 2 inputs. The Company's senior notes are quoted but not actively traded on major exchanges; therefore, fair value is based on periodic values as quoted on major exchanges. The Company has other financial instruments consisting primarily of receivables, payables, operating leases and other current assets and liabilities that approximate fair value due to the nature of the instrument and their relatively short maturities. Non-financial assets and liabilities initially measured at fair value include assets acquired and liabilities assumed in a business combination, goodwill and asset retirement obligations. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company utilizes commodity swap contracts, option contracts, collar contracts, collar contracts with short puts, call contracts and basis swap contracts to (i) reduce the effect of price volatility on the commodities the Company produces and sells or consumes, (ii) support the Company's annual capital budgeting and expenditure plans and (iii) reduce commodity price risk associated with certain capital projects. The Company also, from time to time, utilizes interest rate contracts to reduce the effect of interest rate volatility on the Company's indebtedness. Oil production derivatives. The Company sells its oil production at the lease and the sales contracts governing such oil production are tied directly to, or are highly correlated with, New York Mercantile Exchange ("NYMEX") West Texas Intermediate ("WTI") oil prices. The Company also enters into pipeline capacity commitments in order to secure available oil transportation capacity from its areas of production to the Gulf Coast. In order to diversify the oil price it receives, the Company (i) enters into oil purchase transactions with third parties in its areas of production that are consistent with the oil prices that the Company receives at the lease, adjusted for transportation costs to the point of purchase, (ii) transports the purchased oil using its pipeline capacity to the Gulf Coast and (iii) enters into third party sale transactions to sell the oil into the Gulf Coast refinery or international export markets at prices that are highly correlated with Brent oil prices. As a result, the Company will generally use Brent derivative contracts to manage future oil price volatility. Volumes per day associated with the Company's outstanding oil derivative contracts as of September 30, 2019 and the weighted average oil prices for those contracts are as follows: 2019 Year Ending December 31, 2020 Year Ending December 31, 2021 Fourth Quarter Brent swap contracts: Volume per day (Bbl) (a) 38,630 — — Price per Bbl $ 64.71 $ — $ — Brent collar contracts with short puts: Volume per day (Bbl) 45,000 79,500 — Price per Bbl: Ceiling $ 80.06 $ 71.81 $ — Floor $ 68.33 $ 63.00 $ — Short put $ 58.33 $ 54.01 $ — Brent call contracts sold: Volume per day (Bbl) (b) — — 13,000 Price per Bbl $ — $ — $ 72.10 ______________________ (a) Subsequent to September 30, 2019, the Company entered into additional Brent derivative contracts for (i) 26,522 Bbls per day of swap contracts for the remainder of 2019 production at an average swap price of $60.38 per Bbl and (ii) 10,000 Bbls per day of swap contracts for January 2020 production at an average swap price of $60.86 per Bbl. (b) The referenced call contracts were sold in exchange for higher ceiling prices on certain 2020 collar contracts. NGL production derivatives. All material physical sales contracts governing the Company's NGL production are tied directly or indirectly to Mont Belvieu, Texas NGL component product prices. The Company uses derivative contracts to manage the NGL component product price volatility. As of September 30, 2019, the Company did not have any NGL derivative contracts outstanding. Gas production derivatives. All material physical sales contracts governing the Company's gas production are tied directly or indirectly to NYMEX Henry Hub ("HH") gas prices or regional index prices where the gas is sold. The Company uses derivative contracts to manage gas price volatility and basis swap contracts to reduce basis risk between HH prices and actual index prices at which the gas is sold. Volumes per day associated with outstanding gas derivative contracts as of September 30, 2019 and the weighted average gas prices for those contracts are as follows: 2019 Fourth Quarter Swap contracts: Volume per day (MMBtu) 83,152 Price per MMBtu $ 2.69 Basis swap contracts: Southern California index swap volume per day (MMBtu) (a) 80,000 Price differential ($/MMBtu) $ 0.31 ______________________ (a) The referenced basis swap contracts fix the basis differentials between Permian Basin index prices and southern California index prices for Permian Basin gas forecasted for sale in Arizona and southern California. Other gas derivatives. As of September 30, 2019, the Company was party to certain NYMEX gas swap contracts for 100,000 MMBtu per day for November 2019 under which the Company will pay a fixed price of $2.26 per MMBtu and receive a floating NYMEX price. Subsequent to September 30, 2019, such contracts were directly offset by a separate November NYMEX gas swap contract for 100,000 MMBtu per day under which the Company will pay a floating NYMEX price and receive a fixed price of $2.63 per MMBtu, which is expected to result in the recognition of a $1 million gain in November 2019. Contingent consideration. The Company's right to receive contingent consideration in conjunction with the South Texas Divestiture was determined to be a derivative financial instrument that is not designated as a hedging instrument. The contingent consideration of up to $450 million is based on oil and NGL prices during each of the years from 2020 to 2024. See Note 3 and Note 4 for additional information. Derivative accounting. The Company's derivatives are accounted for as non-hedge derivatives and therefore all changes in the fair values of its derivative contracts are recognized as gains or losses in the earnings of the periods in which they occur. The Company enters into commodity price derivatives under master netting arrangements, which, in an event of default, allows the Company to offset payables to and receivables from the defaulting counterparty. Gains and losses associated with the Company's commodity price derivatives are separately presented in the consolidated statements of cash flows. Gains and losses associated with the Company's contingent consideration are presented as noncash operating activities in the consolidated statements of cash flows. Fair value. The fair value of derivative financial instruments not designated as hedging instruments is as follows: As of September 30, 2019 Type Consolidated Fair Gross Amounts Net Fair Value (in millions) Assets: Commodity price derivatives Derivatives - current $ 133 $ — $ 133 Commodity price derivatives Derivatives - noncurrent $ 16 $ — $ 16 Contingent consideration Other assets - noncurrent $ 75 $ — $ 75 Liabilities: Commodity price derivatives Derivatives - current $ 6 $ — $ 6 As of December 31, 2018 Type Consolidated Fair Gross Amounts Net Fair Value (in millions) Assets: Commodity price derivatives Derivatives - current $ 59 $ (7) $ 52 Liabilities: Commodity price derivatives Derivatives - current $ 34 $ (7) $ 27 Gains and losses on derivative contracts are as follows: Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Earnings on Derivatives Three Months Ended Nine Months Ended 2019 2018 2019 2018 (in millions) Commodity price derivatives Derivative gain (loss), net $ 121 $ (135) $ 150 $ (701) Contingent consideration Interest and other income (loss), net $ (48) $ — $ (61) $ — The Company uses credit and other financial criteria to evaluate the credit standing of, and to select, counterparties to its derivative instruments. Although the Company does not obtain collateral or otherwise secure the fair value of its derivative instruments, associated credit risk is mitigated by the Company's credit risk policies and procedures. |
Exploratory Costs
Exploratory Costs | 9 Months Ended |
Sep. 30, 2019 | |
Extractive Industries [Abstract] | |
Exploratory Costs | Exploratory Costs The Company capitalizes exploratory well and project costs until a determination is made that the well or project has either found proved reserves, is impaired or is sold. The Company's capitalized exploratory well and project costs are included in proved properties in the consolidated balance sheets. If the exploratory well or project is determined to be impaired, the impaired costs are charged to exploration and abandonments expense. The changes in capitalized exploratory well costs are as follows: Nine Months Ended (in millions) Beginning capitalized exploratory well costs $ 509 Additions to exploratory well costs pending the determination of proved reserves 1,687 Reclassification due to determination of proved reserves (1,577) Disposition of assets (6) Exploratory well costs charged to exploration and abandonment expense (4) Ending capitalized exploratory well costs $ 609 The Company has no wells or projects with exploratory well costs that have been suspended for a period of greater than one year. |
Long-term Debt
Long-term Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt Credit facility. The Company's long-term debt consists of senior notes, a revolving corporate credit facility (the "Credit Facility") and the effects of issuance costs and discounts. The Credit Facility is maintained with a syndicate of financial institutions and has aggregate loan commitments of $1.5 billion. The Credit Facility has a maturity date of October 2023. As of |
Incentive Plans
Incentive Plans | 9 Months Ended |
Sep. 30, 2019 | |
Compensation Related Costs [Abstract] | |
Incentive Plans | Incentive Plans Stock-based compensation expense is as follows: Three Months Ended Nine Months Ended 2019 2018 2019 2018 (in millions) Restricted stock - Equity Awards (a) $ 14 $ 17 $ 65 $ 48 Restricted stock - Liability Awards (b) 2 4 14 16 Performance unit awards 5 5 15 13 Employee stock purchase plan — — 1 2 $ 21 $ 26 $ 95 $ 79 ______________________ (a) Includes noncash charges related to accelerated vesting of certain equity awards associated with the Corporate Restructuring Program of $1 million and $26 million for the three and nine months ended September 30, 2019, respectively. See Note 3 and Note 15 for additional information. (b) Liability Awards are expected to be settled on their vesting date in cash. As of September 30, 2019 and December 31, 2018, accounts payable – due to affiliates included $7 million and $14 million, respectively, of liabilities attributable to Liability Awards. As of September 30, 2019, there was $111 million of unrecognized stock-based compensation expense related to unvested share-based compensation plans, including $24 million attributable to stock-based awards that are expected to be settled on their vesting date in cash, rather than in equity shares. The unrecognized compensation expense will be recognized on a straight-line basis over the remaining vesting periods of the awards, which is a period of less than three years on a weighted average basis. Activity for outstanding restricted stock awards and performance units is as follows: Nine Months Ended September 30, 2019 Restricted Restricted Performance Beginning incentive compensation awards 799,672 201,501 119,169 Awards granted 712,095 219,298 86,483 Awards forfeited (44,267) (28,030) — Awards vested (a) (595,675) (143,068) (48,048) Ending incentive compensation awards 871,825 249,701 157,604 ______________________ (a) Per the terms of award agreements and elections, the issuance of common stock may be deferred for certain restricted stock equity awards and performance units that vest during the period. |
Asset Retirement Obligations
Asset Retirement Obligations | 9 Months Ended |
Sep. 30, 2019 | |
Asset Retirement Obligation [Abstract] | |
Asset Retirement Obligations | Asset Retirement Obligations The changes in asset retirement obligations are as follows: Nine Months Ended (in millions) Beginning asset retirement obligations $ 183 New wells placed on production 1 Changes in estimates (a) 44 Dispositions (37) Liabilities settled (38) Accretion of discount 7 Ending asset retirement obligations $ 160 ______________________ (a) Changes in estimates are determined based on several factors, including abandonment cost estimates based on recent actual costs incurred to abandon wells, credit-adjusted risk-free discount rates and economic well life estimates. The increase in estimated asset retirement obligations was primarily due to accelerating the forecasted timing of abandoning certain of the Company's oil and gas vertical wells, which had the effect of increasing the present value of the abandonment obligation attributable to those wells. The Company includes the current and noncurrent portions of asset retirement obligations in other current liabilities and other liabilities, respectively, in the consolidated balance sheets. As of September 30, 2019, the current portion of the Company's asset retirement obligations was $73 million. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company leases drilling rigs, storage tanks, equipment and office facilities under operating leases and recognizes lease expense on a straight-line basis over the lease term. Operating lease right-of-use assets and liabilities are initially recorded at commencement date based on the present value of lease payments over the lease term. As most of the Company's lease contracts do not provide an implicit discount rate, the Company uses its incremental borrowing rate, based on the information available at the commencement date of a lease. As of September 30, 2019, the weighted-average discount rate used in determining the present value of future lease payments was 3.4 percent. Certain leases contain variable costs above the minimum required payments and are not included in the right-of-use assets or liabilities. Leases may include renewal, purchase or termination options that can extend or shorten the term of the lease. The exercise of those options is at the Company’s sole discretion and is evaluated at inception and throughout the contract to determine if a modification of the lease term is required. Leases with an initial term of 12 months or less are not recorded on the balance sheet. As of September 30, 2019, the weighted-average remaining lease term of the Company’s operating leases is three In June 2017, the Company entered into a 20-year lease for the Company's new corporate headquarters that is currently being constructed in Irving, Texas. Annual base rent is expected to be $33 million and lease payments are expected to commence in the fourth quarter of 2019. As of September 30, 2019, the Company's consolidated balance sheet included $27 million of right-of-use assets related to its current corporate headquarters. The Company expects to fully amortize these assets over the remainder of 2019. The Company has a variable equity interest in the entity that is constructing the building that is not considered material. The Company is not the primary beneficiary of the variable interest entity and only has a profit sharing interest after certain economic returns are achieved. The Company has no exposure to the variable interest entity's losses or future liabilities, if any. The contract for the Company's new corporate headquarters will be evaluated under ASC 842 upon lease commencement, which is expected to occur during the fourth quarter of 2019. The components of lease costs, including amounts recoverable from joint operating partners, are as follows: Three Months Ended Nine Months Ended September 30, 2019 ($ in millions) Lease costs: Operating lease cost (a) $ 44 $ 132 Short-term lease cost (b) 15 27 Variable lease cost (c) 15 53 $ 74 $ 212 ______________________ (a) Represents straight-line rent cost associated with the Company's operating lease right-of-use assets. (b) Represents costs associated with short-term leases (those with a contractual term of 12 months or less) that are not included in the consolidated balance sheets. (c) Variable lease costs are primarily comprised of the non-lease service component of drilling rig commitments above the minimum required payments. Both the minimum required payments and the non-lease service component of the drilling rig commitments are capitalized as additions to oil and gas properties. For the nine months ended September 30, 2019, cash paid for operating, short-term and variable leases of $75 million is included in net cash provided by operating activities in the consolidated statements of cash flows. For the same period, the Company also incurred operating and variable lease costs associated with drilling operations of $139 million, which is capitalized as additions to oil and gas properties and is included in investing cash flows in the consolidated statements of cash flows. The changes in operating lease liabilities are as follows: Nine Months Ended (in millions) Beginning operating lease liabilities (a) $ 325 Liabilities assumed in exchange for new right-of-use assets 128 Contract modifications (b) (4) Dispositions (1) Liabilities settled (135) Accretion of discount (c) 9 Ending operating lease liabilities $ 322 ______________________ (a) Represents January 1, 2019 balance upon adoption of ASC 842. (b) Represents changes in lease liabilities due to modifications of original contract terms. (c) Represents imputed interest on discounted future cash payments. Maturities of operating lease obligations are as follows: As of September 30, 2019 (in millions) Remainder of 2019 $ 41 2020 137 2021 87 2022 43 2023 11 Thereafter 26 Total lease payments 345 Less present value discount (23) $ 322 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal actions. The Company is a party to various proceedings and claims incidental to its business. While many of these matters involve inherent uncertainty, the Company believes that the amount of the liability, if any, ultimately incurred with respect to these proceedings and claims will not have a material adverse effect on the Company's consolidated financial position as a whole or on its liquidity, capital resources or future annual results of operations. The Company records reserves for contingencies when information available indicates that a loss is probable and the amount of the loss can be reasonably estimated. Firm purchase, gathering, processing, transportation and fractionation commitments. From time to time, the Company enters into, and as of September 30, 2019 was a party to, take-or-pay agreements, which include contractual commitments (i) to purchase and process sand and purchase water for use in the Company's drilling operations, (ii) with midstream service companies and pipeline carriers for future gathering, processing, transportation, storage and fractionation services and (iii) with oilfield services companies that provide drilling and pressure pumping services. These commitments are normal and customary for the Company's business activities. Obligations following divestitures. In connection with its divestiture transactions, the Company may retain certain liabilities and provide the purchaser certain indemnifications, subject to defined limitations, which may apply to identified pre-closing matters, including matters of litigation, environmental contingencies, royalty and income taxes. Also associated with its divestiture transactions, the Company has issued and received guarantees to facilitate the transfer of contractual obligations, such as firm transportation agreements or gathering and processing arrangements. The Company does not recognize a liability if the fair value of the obligation is immaterial and the likelihood of making payments under these guarantees is remote. South Texas Divestiture. In conjunction with the South Texas Divestiture, the Company transferred its long-term midstream agreements and associated MVC's to the buyer. However, the Company retained the obligation to pay 100 percent of any deficiency fees associated with the MVC's from January 2019 through July 2022. The buyer is required to reimburse the Company for up to 20 percent of the deficiency fees paid by the Company from January 2019 through July 2022; such reimbursement will be paid by the buyer in installments beginning in 2023 through 2025. Assuming 100 percent of the MVC's are paid as deficiency fees, the maximum amount of future payments for this obligation would be approximately $640 million as of September 30, 2019. The Company's estimated deficiency fee obligation as of September 30, 2019 is $395 million, of which $153 million is included in other current liabilities in the consolidated balance sheets. The corresponding estimated deficiency fee receivable from the buyer of $67 million is included in noncurrent other assets in the consolidated balance sheets. The Company has received credit support for the deficiency fee receivable and the contingent consideration of up to $325 million. Raton transportation commitments. In July 2018, the Company completed the sale of its gas field assets in the Raton Basin to an unaffiliated third party and transferred certain gas transportation commitments, which extend through 2032, to the buyer for which the Company has provided a guarantee. Assuming 100 percent of the remaining commitments are paid by the Company under its guarantee, the maximum amount of future payments would be approximately $92 million as of September 30, 2019. The Company has received credit support for the commitments of up to $50 million. West Eagle Ford Shale commitments. In April 2018, the Company completed the sale of its West Eagle Ford Shale gas and liquids field to an unaffiliated third party and transferred certain gas and liquids transportation commitments, which extend through 2022, to the buyer for which the Company has provided a guarantee. Assuming 100 percent of the remaining commitments are paid by the Company under its guarantee, the maximum amount of future payments would be approximately $26 million as of September 30, 2019. The Company has received credit support for the commitments of up to $19 million. Certain contractual obligations were retained by the Company after the South Texas Divestiture, the divestiture of the Company's gas field assets in the Raton Basin and pressure pumping assets, and the decommissioning of the Company's sand mine operations in Brady, Texas. These contracts were primarily related to firm transportation and storage agreements in which the Company is unlikely to realize any benefit. The estimated obligations are included in other current or noncurrent liabilities in the consolidated balance sheets. The changes in contract obligations are as follows: Nine Months Ended September 30, 2019 (in millions) Beginning contract obligations $ 111 Additions (a) 400 Liabilities settled (38) Accretion of discount 7 Changes in estimate (b) (1) Ending contract obligations $ 479 ______________________ (a) Additions include a $348 million deficiency fee obligation related to the South Texas Divestiture, $49 million of South Texas accrued deficiency fees from January 2019 through April 2019, $2 million of sand storage deficiencies associated with the sale of pressure pumping assets and $1 million related to sand mine decommissioning. (b) Represents the difference between estimated and actual liabilities settled. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions In December 2018, the Company completed the sale of its pressure pumping assets to ProPetro in exchange for 16.6 million shares of ProPetro common stock and $110 million of cash that was received during the first quarter of 2019. ProPetro is considered a related party since the shares received represent approximately 16 percent of ProPetro's outstanding common stock. In addition to the sale of equipment and related facilities, the Company entered into a long-term agreement with ProPetro for it to provide pressure pumping and related services. The costs of these services are capitalized in oil and gas properties as incurred. See Note 3 for additional information. In October 2019, Phillip A. Gobe, a nonemployee member of the Company's board of directors, was appointed by the board of directors of ProPetro to serve as its Executive Chairman. Mark S. Berg, the Company's Executive Vice President Corporate/Vertically Integrated Operations, continues to serve as a member of the ProPetro board of directors under the Company's right to designate a director to the board of directors of ProPetro so long as the Company owns five percent or more of ProPetro's outstanding common stock. Transactions and balances with ProPetro are as follows: Three Months Ended Nine Months Ended September 30, 2019 (in millions) Pressure pumping and related services charges $ 134 $ 401 As of September 30, 2019 As of December 31, 2018 (in millions) Accounts receivable - due from affiliate (a) $ 4 $ 119 Accounts payable - due to affiliate (b) $ 107 $ 37 ____________________ (a) Represents employee-related charges to be reimbursed by ProPetro. The balance as of December 31, 2018 also includes $110 million of cash consideration received during the first quarter of 2019. (b) Represents pressure pumping and related services provided by ProPetro as part of a long-term agreement. The balance as of December 31, 2018 represents invoices associated with pressure pumping and related services performed by ProPetro in the normal course of business prior to the Company's sale of its pressure pumping assets to ProPetro. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Disaggregated revenue from contracts with purchasers. Revenues on sales of oil, NGLs, gas and purchased oil and gas are recognized when control of the product is transferred to the purchaser and payment can be reasonably assured. Sales prices for oil, NGLs and gas production are negotiated based on factors normally considered in the industry, such as an index or spot price, distance from the well to the pipeline or market, commodity quality and prevailing supply and demand conditions. Accordingly, the prices of oil, NGLs and gas generally fluctuate based on the relevant market index rates. Disaggregated revenue from contracts with purchasers by product type is as follows: Three Months Ended Nine Months Ended 2019 2018 2019 2018 (in millions) Oil sales $ 1,068 $ 1,033 $ 3,032 $ 3,079 NGL sales 116 207 373 542 Gas sales 51 77 162 248 Total oil and gas sales 1,235 1,317 3,567 3,869 Sales of purchased oil 1,166 1,127 3,455 3,261 Sales of purchased gas 5 14 8 45 Total sales of purchased oil and gas 1,171 1,141 3,463 3,306 $ 2,406 $ 2,458 $ 7,030 $ 7,175 Oil sales . Sales under the Company's oil contracts are generally considered performed when the Company sells oil production at the wellhead and receives an agreed-upon index price, net of any price differentials. The Company recognizes revenue when control transfers to the purchaser at the wellhead based on the net price received. NGL and gas sales . The Company evaluated whether it is the principal or the agent in gas processing transactions and concluded that it is the principal when it has the ability to take-in-kind, which is the case in the majority of the Company's gas processing and transportation contracts. Therefore the Company recognizes revenue on a gross basis, with the gathering, processing, transportation and fractionation costs associated with its take-in-kind arrangements being recorded in oil and gas production costs in the consolidated statement of operations. Sales of purchased oil and gas . The Company enters into pipeline capacity commitments in order to secure available oil, NGL and gas transportation capacity from the Company's areas of production. The Company enters into purchase transactions with third parties and separate sale transactions with third parties to (i) diversify a portion of the Company's WTI oil sales to the Gulf Coast refinery or international export markets and (ii) satisfy unused pipeline capacity commitments. Revenues and expenses from these transactions are presented on a gross basis as the Company acts as a principal in the transaction by assuming control of the commodities purchased and the responsibility to deliver the commodities sold. Revenue is recognized when control transfers to the purchaser at the delivery point based on the price received from the purchaser. The transportation costs associated with these transactions are presented as a component of purchased oil and gas expense. Firm transportation payments on excess pipeline capacity are recorded in other expense in the consolidated statements of operations. Performance obligations and contract balances. The majority of the Company's product sale commitments are short-term in nature with a contract term of one year or less. The Company typically satisfies its performance obligations upon transfer of control and records the related revenue in the month production is delivered to the purchaser. Settlement statements for sales of oil, NGLs and gas and sales of purchased oil and gas may not be received for 30 to 60 days after the date the volumes are delivered, and as a result, the Company is required to estimate the amount of volumes delivered to the purchaser and the price that will be received for the sale of the product. The Company records the differences between estimates and the actual amounts received for product sales in the month that payment is received from the purchaser. Historically, differences between the Company's revenue estimates and the actual revenue received have not been significant. As of September 30, 2019 and December 31, 2018, the accounts receivable balance representing amounts due or billable under the terms of contracts with purchasers was $756 million and $646 million, respectively. |
Interest and Other Income (Loss
Interest and Other Income (Loss), Net | 9 Months Ended |
Sep. 30, 2019 | |
Interest and Other Income [Abstract] | |
Interest and Other Income (Loss), Net | Interest and Other Income (Loss), Net The components of net interest and other income (loss) are as follows: Three Months Ended Nine Months Ended 2019 2018 2019 2018 (in millions) Interest income $ 3 $ 7 $ 15 $ 21 Deferred compensation plan income 4 3 10 6 Severance and sales tax refunds 6 — 6 1 Seismic data sales 5 — 5 5 Investment in affiliate valuation adjustment ( Note 4 ) (193) — (22) — Contingent consideration valuation adjustment ( Note 4 ) (48) — (61) — Other 1 — 5 7 $ (222) $ 10 $ (42) $ 40 |
Other Expense
Other Expense | 9 Months Ended |
Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Other Expense | Other Expense The components of other expense are as follows: Three Months Ended Nine Months Ended 2019 2018 2019 2018 (in millions) Restructuring charges (a) $ 1 $ — $ 159 $ — Transportation commitment charges (b) 5 43 70 121 Asset impairment (c) 4 — 34 4 Asset divestiture-related charges (d) 4 123 28 129 Accelerated depreciation (e) — — 23 — Vertical integration services (income) loss, net (f) 1 (5) 19 5 Idle drilling and well service equipment charges (g) 5 — 18 — Legal and environmental charges 4 6 12 18 Other 8 15 27 39 $ 32 $ 182 $ 390 $ 316 ____________________ (a) Represents employee-related charges associated with the Corporate Restructuring Program to align the Company's cost structure with the needs of a Permian Basin-focused company, of which $128 million was paid during the nine months ended September 30, 2019. The charges include noncash stock-based compensation expense related to the accelerated vesting of certain equity awards of $1 million and $26 million for the three and nine months ended September 30, 2019, respectively. See Note 3 and Note 8 for additional information. (b) Primarily represents firm transportation payments on excess pipeline capacity commitments. (c) For the nine months ended September 30, 2019, includes inventory and other property and equipment impairment charges of (i) $13 million related to the decommissioning of the Company's Brady, Texas sand mine; (ii) $16 million of impairment charges related to inventory and other property and equipment excluded from the Company's sale of its pumping services assets in December 2018 and (iii) $2 million of other asset impairment charges. See Note 4 for additional information. (d) Primarily represents charges associated with the South Texas Divestiture, including $20 million of employee-related charges for the nine months ended September 30, 2019. See Note 3 for additional information. (e) Represents accelerated depreciation related to the decommissioning of the Company's Brady, Texas sand mine. See Note 3 for additional information. (f) For the nine months ended September 30, 2019, includes $13 million of decommissioning operating expenses related to the Company's Brady sand mine and $14 million of carryover and winding down operating expenses related to the Company's sale of its pumping services assets in December 2018, partially offset by net margins (attributable to third party working interest owners) that result from Company-provided well service operations, which are ancillary to and supportive of the Company's oil and gas joint operating activities, and do not represent intercompany transactions. The components of the vertical integration services net margins are as follows: Three Months Ended Nine Months Ended 2019 2018 2019 2018 (in millions) Gross revenues $ 25 $ 49 $ 88 $ 113 Gross costs and expenses $ 26 $ 44 $ 108 $ 118 (g) Primarily represents expenses attributable to idle frac fleet and drilling rig fees that are not chargeable to joint operations. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax provision and effective tax rate are as follows: Three Months Ended Nine Months Ended 2019 2018 2019 2018 (in millions) Current tax provision $ — $ (2) $ — $ (2) Deferred tax provision (72) (116) (127) (186) Income tax provision $ (72) $ (118) $ (127) $ (188) Effective tax rate 24 % 22 % 24 % 22 % Uncertain tax positions. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based upon the technical merits of the position. As of September 30, 2019 and December 31, 2018, the Company had unrecognized tax benefits ("UTBs") of $141 million for each respective period as a result of research and experimental expenditures related to horizontal drilling and completion innovations. If all or a portion of the UTBs is sustained upon examination by the taxing authorities, the tax benefit will be recorded as a reduction to the Company's deferred tax liability and will affect the Company's effective tax rate in the period it is recorded. The Company expects to substantially resolve the uncertainties associated with the UTBs within the next twelve months. The Company files income tax returns in the U.S. federal and various state and foreign jurisdictions. The Internal Revenue Service has closed examinations of the 2011 and prior tax years and, with few exceptions, the Company believes that it is no longer subject to examinations by state and foreign tax authorities for years before 2012. As of September 30, 2019, no adjustments had been proposed in any jurisdiction that would have a significant effect on the Company's liquidity, future results of operations or financial position. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn November 4, 2019, the board of directors declared a quarterly cash dividend of $0.44 per share on the Company's outstanding common stock, payable January 14, 2020 to stockholders of record on December 31, 2019. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Presentation | Presentation. In the opinion of management, the unaudited interim consolidated financial statements of the Company as of September 30, 2019 and for the three and nine months ended September 30, 2019 and 2018 include all adjustments and accruals, consisting only of normal, recurring adjustments and accruals necessary for a fair presentation of the results for the interim periods in conformity with generally accepted accounting principles in the United States ("GAAP"). The operating results for the three and nine months ended September 30, 2019 are not necessarily indicative of results for a full year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted in accordance with the rules and regulations of the United States Securities and Exchange Commission (the "SEC"). These unaudited interim consolidated financial statements should be read together with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2018. |
Adoption of new accounting standards and new accounting pronouncements | Adoption of new accounting standards. In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, "Leases (Topic 842)" ("ASC 842"), which supersedes the lease recognition requirements in Accounting Standards Codification ("ASC") 840, "Leases" ("ASC 840"), and requires lessees to recognize lease assets and lease liabilities for those leases previously classified as operating leases. The Company adopted ASC 842 as of January 1, 2019 using the modified retrospective transition method. The Company elected to apply the transition guidance under ASU 2018-11, "Leases (Topic 842) Targeted Improvements," in which ASC 842 is applied at the adoption date, while the comparative periods continue to be reported in accordance with historic accounting under ASC 840. This standard does not apply to leases to explore for or use minerals, oil or gas resources, including the right to explore for those natural resources and rights to use the land in which those natural resources are contained. ASC 842 allowed for the election of certain practical expedients at adoption to ease the burden of implementation. At implementation, the Company elected to (i) maintain the historical lease classification for leases prior to January 1, 2019, (ii) maintain the historical accounting treatment for land easements that existed at adoption, (iii) use historical practices in assessing the lease term of existing contracts at adoption, (iv) combine lease and non-lease components of a contract as a single lease and (v) not record short-term leases in the consolidated balance sheet, all in accordance with ASC 842. The adoption of ASC 842 did not have a material impact on the consolidated statements of operations and had no impact on the Company's cash flows. The Company did not record a change to its opening retained earnings as of January 1, 2019, as there was no material change to the timing or pattern of recognition of lease costs due to the adoption of ASC 842. As of December 31, 2018, the Company was the deemed owner of the Company's new corporate headquarters (for accounting purposes) during the construction period and was following the build-to-suit accounting guidance under ASC 840. On January 1, 2019, upon the adoption of ASC 842, the Company derecognized $217 million of other property and equipment and $219 million of build-to-suit lease liability costs associated with the building as this contract no longer qualifies for capitalization. The contract will be evaluated and recorded in the consolidated balance sheets upon lease commencement, which is expected to occur during the fourth quarter of 2019. See Note 10 for additional information. New accounting pronouncements. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13"). ASU 2016-13 changes the impairment model for most financial assets and certain other instruments, including trade and other receivables, and requires entities to use a new forward-looking expected loss model that will result in the earlier recognition of allowances for losses. This update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. Entities will use the modified retrospective approach to apply the standard's provisions and record a cumulative-effect adjustment to retained earnings for additional receivable loss allowances, if any, as of the beginning of the first reporting period in which the guidance is adopted. The Company continues to evaluate ASU 2016-13, but does not expect that it will have a material impact on its consolidated financial statements. |
Divestitures, Decommissioning_2
Divestitures, Decommissioning and Restructuring Activities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of divestiture-related charges | The changes in the Company's total employee-related obligations are as follows: Nine Months Ended (in millions) Beginning employee-related obligations $ 27 Additions ( Note 15 ) 156 Cash payments (154) Ending employee-related obligations $ 29 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities measured at fair value on a recurring basis | Assets and liabilities measured at fair value on a recurring basis are as follows: As of September 30, 2019 Fair Value Measurement Quoted Prices in Significant Significant Total (in millions) Assets: Commodity price derivatives $ — $ 149 $ — $ 149 Deferred compensation plan assets 83 — — 83 Investment in affiliate 151 — — 151 Contingent consideration — 75 — 75 Total assets 234 224 — 458 Liabilities: Commodity price derivatives — 6 — 6 $ 234 $ 218 $ — $ 452 As of December 31, 2018 Fair Value Measurement Quoted Prices in Active Markets for Significant Significant Total (in millions) Assets: Commodity price derivatives $ — $ 52 $ — $ 52 Deferred compensation plan assets 82 — — 82 Investment in affiliate — 172 — 172 Total assets 82 224 — 306 Liabilities: Commodity price derivatives — 27 — 27 $ 82 $ 197 $ — $ 279 |
Schedule of carrying values and financial instruments not carried at fair value | Carrying values and fair values of financial instruments that are not carried at fair value in the consolidated balance sheets are as follows: As of September 30, 2019 As of December 31, 2018 Carrying Fair Carrying Fair (in millions) Assets: Cash and cash equivalents: Cash (a) $ 437 $ 437 $ 775 $ 775 Time deposits (a) — — 50 50 Total $ 437 $ 437 $ 825 $ 825 Restricted cash (a) $ 76 $ 76 $ — $ — Short-term investments: Commercial paper (b) $ — $ — $ 53 $ 53 Corporate bonds (c) — — 290 288 Time deposits (b) — — 100 100 Total $ — $ — $ 443 $ 441 Long-term investments: Corporate bonds (c) $ — $ — $ 125 $ 125 Liabilities: Current portion of long-term debt (d) $ 450 $ 456 $ — $ — Long-term debt (d) $ 1,838 $ 1,991 $ 2,284 $ 2,374 ______________________ (a) Fair value approximates carrying value due to the short-term nature of the instruments. (b) Fair value is determined using Level 2 inputs. (c) Fair value is determined using Level 1 inputs. (d) Fair value is determined using Level 2 inputs. The Company's senior notes are quoted but not actively traded on major exchanges; therefore, fair value is based on periodic values as quoted on major exchanges. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of oil derivative contracts volume and weighted average price | Volumes per day associated with the Company's outstanding oil derivative contracts as of September 30, 2019 and the weighted average oil prices for those contracts are as follows: 2019 Year Ending December 31, 2020 Year Ending December 31, 2021 Fourth Quarter Brent swap contracts: Volume per day (Bbl) (a) 38,630 — — Price per Bbl $ 64.71 $ — $ — Brent collar contracts with short puts: Volume per day (Bbl) 45,000 79,500 — Price per Bbl: Ceiling $ 80.06 $ 71.81 $ — Floor $ 68.33 $ 63.00 $ — Short put $ 58.33 $ 54.01 $ — Brent call contracts sold: Volume per day (Bbl) (b) — — 13,000 Price per Bbl $ — $ — $ 72.10 ______________________ (a) Subsequent to September 30, 2019, the Company entered into additional Brent derivative contracts for (i) 26,522 Bbls per day of swap contracts for the remainder of 2019 production at an average swap price of $60.38 per Bbl and (ii) 10,000 Bbls per day of swap contracts for January 2020 production at an average swap price of $60.86 per Bbl. (b) The referenced call contracts were sold in exchange for higher ceiling prices on certain 2020 collar contracts. |
Schedule of gas derivative volume and weighted average prices | Volumes per day associated with outstanding gas derivative contracts as of September 30, 2019 and the weighted average gas prices for those contracts are as follows: 2019 Fourth Quarter Swap contracts: Volume per day (MMBtu) 83,152 Price per MMBtu $ 2.69 Basis swap contracts: Southern California index swap volume per day (MMBtu) (a) 80,000 Price differential ($/MMBtu) $ 0.31 ______________________ (a) The referenced basis swap contracts fix the basis differentials between Permian Basin index prices and southern California index prices for Permian Basin gas forecasted for sale in Arizona and southern California. |
Offsetting asset and liability | The fair value of derivative financial instruments not designated as hedging instruments is as follows: As of September 30, 2019 Type Consolidated Fair Gross Amounts Net Fair Value (in millions) Assets: Commodity price derivatives Derivatives - current $ 133 $ — $ 133 Commodity price derivatives Derivatives - noncurrent $ 16 $ — $ 16 Contingent consideration Other assets - noncurrent $ 75 $ — $ 75 Liabilities: Commodity price derivatives Derivatives - current $ 6 $ — $ 6 As of December 31, 2018 Type Consolidated Fair Gross Amounts Net Fair Value (in millions) Assets: Commodity price derivatives Derivatives - current $ 59 $ (7) $ 52 Liabilities: Commodity price derivatives Derivatives - current $ 34 $ (7) $ 27 |
Schedule of derivative gains and losses recognized on statement of operations | Gains and losses on derivative contracts are as follows: Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Earnings on Derivatives Three Months Ended Nine Months Ended 2019 2018 2019 2018 (in millions) Commodity price derivatives Derivative gain (loss), net $ 121 $ (135) $ 150 $ (701) Contingent consideration Interest and other income (loss), net $ (48) $ — $ (61) $ — |
Exploratory Costs (Tables)
Exploratory Costs (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Extractive Industries [Abstract] | |
Capitalized exploratory well and project activity | The changes in capitalized exploratory well costs are as follows: Nine Months Ended (in millions) Beginning capitalized exploratory well costs $ 509 Additions to exploratory well costs pending the determination of proved reserves 1,687 Reclassification due to determination of proved reserves (1,577) Disposition of assets (6) Exploratory well costs charged to exploration and abandonment expense (4) Ending capitalized exploratory well costs $ 609 |
Incentive Plans (Tables)
Incentive Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Compensation Related Costs [Abstract] | |
Schedule of stock-based compensation expense | Stock-based compensation expense is as follows: Three Months Ended Nine Months Ended 2019 2018 2019 2018 (in millions) Restricted stock - Equity Awards (a) $ 14 $ 17 $ 65 $ 48 Restricted stock - Liability Awards (b) 2 4 14 16 Performance unit awards 5 5 15 13 Employee stock purchase plan — — 1 2 $ 21 $ 26 $ 95 $ 79 ______________________ (a) Includes noncash charges related to accelerated vesting of certain equity awards associated with the Corporate Restructuring Program of $1 million and $26 million for the three and nine months ended September 30, 2019, respectively. See Note 3 and Note 15 for additional information. (b) Liability Awards are expected to be settled on their vesting date in cash. As of September 30, 2019 and December 31, 2018, accounts payable – due to affiliates included $7 million and $14 million, respectively, of liabilities attributable to Liability Awards. |
Schedule of share based incentive award activity | Activity for outstanding restricted stock awards and performance units is as follows: Nine Months Ended September 30, 2019 Restricted Restricted Performance Beginning incentive compensation awards 799,672 201,501 119,169 Awards granted 712,095 219,298 86,483 Awards forfeited (44,267) (28,030) — Awards vested (a) (595,675) (143,068) (48,048) Ending incentive compensation awards 871,825 249,701 157,604 ______________________ (a) Per the terms of award agreements and elections, the issuance of common stock may be deferred for certain restricted stock equity awards and performance units that vest during the period. |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Asset Retirement Obligation [Abstract] | |
Schedule of asset retirement obligations | The changes in asset retirement obligations are as follows: Nine Months Ended (in millions) Beginning asset retirement obligations $ 183 New wells placed on production 1 Changes in estimates (a) 44 Dispositions (37) Liabilities settled (38) Accretion of discount 7 Ending asset retirement obligations $ 160 ______________________ (a) Changes in estimates are determined based on several factors, including abandonment cost estimates based on recent actual costs incurred to abandon wells, credit-adjusted risk-free discount rates and economic well life estimates. The increase in estimated asset retirement obligations was primarily due to accelerating the forecasted timing of abandoning certain of the Company's oil and gas vertical wells, which had the effect of increasing the present value of the abandonment obligation attributable to those wells. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lease costs | The components of lease costs, including amounts recoverable from joint operating partners, are as follows: Three Months Ended Nine Months Ended September 30, 2019 ($ in millions) Lease costs: Operating lease cost (a) $ 44 $ 132 Short-term lease cost (b) 15 27 Variable lease cost (c) 15 53 $ 74 $ 212 ______________________ (a) Represents straight-line rent cost associated with the Company's operating lease right-of-use assets. (b) Represents costs associated with short-term leases (those with a contractual term of 12 months or less) that are not included in the consolidated balance sheets. (c) Variable lease costs are primarily comprised of the non-lease service component of drilling rig commitments above the minimum required payments. Both the minimum required payments and the non-lease service component of the drilling rig commitments are capitalized as additions to oil and gas properties. |
Schedule of changes in operating lease liabilities | The changes in operating lease liabilities are as follows: Nine Months Ended (in millions) Beginning operating lease liabilities (a) $ 325 Liabilities assumed in exchange for new right-of-use assets 128 Contract modifications (b) (4) Dispositions (1) Liabilities settled (135) Accretion of discount (c) 9 Ending operating lease liabilities $ 322 ______________________ (a) Represents January 1, 2019 balance upon adoption of ASC 842. (b) Represents changes in lease liabilities due to modifications of original contract terms. (c) Represents imputed interest on discounted future cash payments. |
Payment schedule for operating lease obligations | Maturities of operating lease obligations are as follows: As of September 30, 2019 (in millions) Remainder of 2019 $ 41 2020 137 2021 87 2022 43 2023 11 Thereafter 26 Total lease payments 345 Less present value discount (23) $ 322 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Schedule of Changes in Contract Obligations | The changes in contract obligations are as follows: Nine Months Ended September 30, 2019 (in millions) Beginning contract obligations $ 111 Additions (a) 400 Liabilities settled (38) Accretion of discount 7 Changes in estimate (b) (1) Ending contract obligations $ 479 ______________________ (a) Additions include a $348 million deficiency fee obligation related to the South Texas Divestiture, $49 million of South Texas accrued deficiency fees from January 2019 through April 2019, $2 million of sand storage deficiencies associated with the sale of pressure pumping assets and $1 million related to sand mine decommissioning. (b) Represents the difference between estimated and actual liabilities settled. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions and balances | Transactions and balances with ProPetro are as follows: Three Months Ended Nine Months Ended September 30, 2019 (in millions) Pressure pumping and related services charges $ 134 $ 401 As of September 30, 2019 As of December 31, 2018 (in millions) Accounts receivable - due from affiliate (a) $ 4 $ 119 Accounts payable - due to affiliate (b) $ 107 $ 37 ____________________ (a) Represents employee-related charges to be reimbursed by ProPetro. The balance as of December 31, 2018 also includes $110 million of cash consideration received during the first quarter of 2019. (b) Represents pressure pumping and related services provided by ProPetro as part of a long-term agreement. The balance as of December 31, 2018 represents invoices associated with pressure pumping and related services performed by ProPetro in the normal course of business prior to the Company's sale of its pressure pumping assets to ProPetro. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | Disaggregated revenue from contracts with purchasers by product type is as follows: Three Months Ended Nine Months Ended 2019 2018 2019 2018 (in millions) Oil sales $ 1,068 $ 1,033 $ 3,032 $ 3,079 NGL sales 116 207 373 542 Gas sales 51 77 162 248 Total oil and gas sales 1,235 1,317 3,567 3,869 Sales of purchased oil 1,166 1,127 3,455 3,261 Sales of purchased gas 5 14 8 45 Total sales of purchased oil and gas 1,171 1,141 3,463 3,306 $ 2,406 $ 2,458 $ 7,030 $ 7,175 |
Interest and Other Income (Lo_2
Interest and Other Income (Loss), Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Interest and Other Income [Abstract] | |
Components of interest and other income (loss), net | The components of net interest and other income (loss) are as follows: Three Months Ended Nine Months Ended 2019 2018 2019 2018 (in millions) Interest income $ 3 $ 7 $ 15 $ 21 Deferred compensation plan income 4 3 10 6 Severance and sales tax refunds 6 — 6 1 Seismic data sales 5 — 5 5 Investment in affiliate valuation adjustment ( Note 4 ) (193) — (22) — Contingent consideration valuation adjustment ( Note 4 ) (48) — (61) — Other 1 — 5 7 $ (222) $ 10 $ (42) $ 40 |
Other Expense (Tables)
Other Expense (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of components of other expense | The components of other expense are as follows: Three Months Ended Nine Months Ended 2019 2018 2019 2018 (in millions) Restructuring charges (a) $ 1 $ — $ 159 $ — Transportation commitment charges (b) 5 43 70 121 Asset impairment (c) 4 — 34 4 Asset divestiture-related charges (d) 4 123 28 129 Accelerated depreciation (e) — — 23 — Vertical integration services (income) loss, net (f) 1 (5) 19 5 Idle drilling and well service equipment charges (g) 5 — 18 — Legal and environmental charges 4 6 12 18 Other 8 15 27 39 $ 32 $ 182 $ 390 $ 316 ____________________ (a) Represents employee-related charges associated with the Corporate Restructuring Program to align the Company's cost structure with the needs of a Permian Basin-focused company, of which $128 million was paid during the nine months ended September 30, 2019. The charges include noncash stock-based compensation expense related to the accelerated vesting of certain equity awards of $1 million and $26 million for the three and nine months ended September 30, 2019, respectively. See Note 3 and Note 8 for additional information. (b) Primarily represents firm transportation payments on excess pipeline capacity commitments. (c) For the nine months ended September 30, 2019, includes inventory and other property and equipment impairment charges of (i) $13 million related to the decommissioning of the Company's Brady, Texas sand mine; (ii) $16 million of impairment charges related to inventory and other property and equipment excluded from the Company's sale of its pumping services assets in December 2018 and (iii) $2 million of other asset impairment charges. See Note 4 for additional information. (d) Primarily represents charges associated with the South Texas Divestiture, including $20 million of employee-related charges for the nine months ended September 30, 2019. See Note 3 for additional information. (e) Represents accelerated depreciation related to the decommissioning of the Company's Brady, Texas sand mine. See Note 3 for additional information. (f) For the nine months ended September 30, 2019, includes $13 million of decommissioning operating expenses related to the Company's Brady sand mine and $14 million of carryover and winding down operating expenses related to the Company's sale of its pumping services assets in December 2018, partially offset by net margins (attributable to third party working interest owners) that result from Company-provided well service operations, which are ancillary to and supportive of the Company's oil and gas joint operating activities, and do not represent intercompany transactions. The components of the vertical integration services net margins are as follows: Three Months Ended Nine Months Ended 2019 2018 2019 2018 (in millions) Gross revenues $ 25 $ 49 $ 88 $ 113 Gross costs and expenses $ 26 $ 44 $ 108 $ 118 (g) Primarily represents expenses attributable to idle frac fleet and drilling rig fees that are not chargeable to joint operations. |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax provision and effective tax rate | Income tax provision and effective tax rate are as follows: Three Months Ended Nine Months Ended 2019 2018 2019 2018 (in millions) Current tax provision $ — $ (2) $ — $ (2) Deferred tax provision (72) (116) (127) (186) Income tax provision $ (72) $ (118) $ (127) $ (188) Effective tax rate 24 % 22 % 24 % 22 % |
Organization and Nature of Op_2
Organization and Nature of Operations (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Proceeds from disposition of assets, net of cash sold | $ 82 | $ 383 |
Basis of Presentation Policies
Basis of Presentation Policies (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Build-to-suit lease liability | $ (345) | |
ASU 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Capitalized construction costs | $ 217 | |
Build-to-suit lease liability | $ 219 |
Divestitures, Decommissioning_3
Divestitures, Decommissioning and Restructuring Activities (Narrative) (Details) shares in Millions, $ in Millions | Jun. 30, 2019USD ($)a | May 31, 2019USD ($) | Dec. 31, 2018USD ($)shares | Aug. 31, 2018USD ($) | Jul. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Apr. 30, 2018USD ($)a | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($)a | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Jul. 01, 2022 | Dec. 31, 2022 | Jan. 01, 2021USD ($) | Mar. 31, 2019USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Cash proceeds | $ 82 | $ 383 | ||||||||||||||
Gain (loss) on disposition of assets, net | $ 20 | $ 143 | (477) | 226 | ||||||||||||
Estimated employee-related severance charges | 4 | 123 | 28 | 129 | ||||||||||||
Accumulated interest | 1 | 1 | ||||||||||||||
Investment in affiliate | $ 172 | 151 | 151 | |||||||||||||
Impairment of oil and gas properties | 0 | 0 | 0 | 77 | ||||||||||||
Accelerated depreciation | 0 | $ 0 | 23 | $ 0 | ||||||||||||
Corporate Restructuring Program | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Severance Costs | 159 | |||||||||||||||
Certain Vertical Wells in Martin County of the Permian Basin | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Gain (loss) on sale | 26 | $ 31 | ||||||||||||||
Undeveloped acres | a | 1,900 | 1,900 | ||||||||||||||
Cash proceeds, before normal closing adjustments | $ 38 | $ 38 | ||||||||||||||
South Texas Divestiture | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Cash proceeds | $ 2 | |||||||||||||||
Cash proceeds, before normal closing adjustments | 210 | |||||||||||||||
Contingent consideration | 136 | |||||||||||||||
Receivable from buyer | 67 | 67 | ||||||||||||||
Noncash investing activity | 208 | |||||||||||||||
Gain (loss) on disposition of assets, net | 525 | |||||||||||||||
Escrow | 75 | 75 | ||||||||||||||
South Texas Divestiture | Employee severance | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Estimated employee-related severance charges | 20 | |||||||||||||||
South Texas Divestiture | Forecast | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Escrow | $ 50 | |||||||||||||||
South Texas Divestiture | Maximum | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Contingent consideration | 450 | |||||||||||||||
Retained obligation percentage | 100.00% | |||||||||||||||
South Texas Divestiture | Maximum | Forecast | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Retained obligation percentage | 100.00% | |||||||||||||||
Buyer recovery percentage | 20.00% | |||||||||||||||
South Texas Divestiture | South Texas Divestiture | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Receivable from buyer | $ 72 | |||||||||||||||
South Texas Divestiture | South Texas Divestiture | Other current liabilities | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Estimated future deficiency fees | $ 153 | 153 | ||||||||||||||
Pressure pumping assets | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Impairment of inventory and other property and other equipment | 16 | |||||||||||||||
Pressure pumping assets | ProPetro | Sale of assets | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Cash proceeds, before normal closing adjustments | 282 | $ 110 | ||||||||||||||
Gain (loss) on disposition of assets, net | $ 30 | |||||||||||||||
Shares received | shares | 16.6 | |||||||||||||||
Severance Costs | $ 19 | 1 | ||||||||||||||
Contract termination charges | 13 | |||||||||||||||
Other divestiture related charges | 6 | |||||||||||||||
Reduction of gain recorded | 10 | |||||||||||||||
West Panhandle gas and liquids field | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Cash proceeds | $ 170 | |||||||||||||||
Gain (loss) on disposition of assets, net | 127 | |||||||||||||||
Severance Costs | $ 7 | |||||||||||||||
Raton Basin | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Cash proceeds | $ 54 | |||||||||||||||
Gain (loss) on disposition of assets, net | 2 | |||||||||||||||
Severance Costs | 6 | |||||||||||||||
Other divestiture related charges | 117 | |||||||||||||||
Impairment of oil and gas properties | $ 77 | |||||||||||||||
Estimated deficiency charges | $ 111 | |||||||||||||||
West Eagle Ford Shale | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Acres | a | 10,200 | |||||||||||||||
Cash proceeds | $ 100 | |||||||||||||||
Gain (loss) on disposition of assets, net | $ 75 | |||||||||||||||
West Eagle Ford Shale | Maximum | Forecast | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Retained obligation percentage | 100.00% | |||||||||||||||
Sand mine | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Accelerated depreciation | 23 | |||||||||||||||
Impairment of inventory and other property and other equipment | $ 13 | |||||||||||||||
Significant Other Observable Inputs (Level 2) | Pressure pumping assets | ProPetro | Sale of assets | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Investment in affiliate | $ 172 |
Divestitures, Decommissioning_4
Divestitures, Decommissioning and Restructuring Activities (Schedule of Restructuring and Employee Related Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restructuring Reserve [Roll Forward] | ||||
Additions (Note 15) | $ 1 | $ 0 | $ 159 | $ 0 |
Employee severance | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning employee-related obligations | 27 | |||
Additions (Note 15) | 156 | |||
Cash payments | (154) | |||
Ending employee-related obligations | $ 29 | $ 29 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) $ in Millions | Sep. 30, 2019USD ($)$ / bbl | Dec. 31, 2018USD ($) |
Assets: | ||
Deferred compensation plan assets | $ 83 | $ 82 |
Investment in affiliate | 151 | 172 |
Contingent consideration | 75 | |
Total assets | 458 | 306 |
Liabilities: | ||
Total recurring fair value measurements | 452 | 279 |
Investment in affiliate | 151 | 172 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Deferred compensation plan assets | 83 | 82 |
Investment in affiliate | 151 | 0 |
Contingent consideration | 0 | |
Total assets | 234 | 82 |
Liabilities: | ||
Total recurring fair value measurements | 234 | 82 |
Investment in affiliate | 151 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Deferred compensation plan assets | 0 | 0 |
Investment in affiliate | 0 | 172 |
Contingent consideration | 75 | |
Total assets | 224 | 224 |
Liabilities: | ||
Total recurring fair value measurements | 218 | 197 |
Investment in affiliate | 0 | 172 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Deferred compensation plan assets | 0 | 0 |
Investment in affiliate | 0 | 0 |
Contingent consideration | 0 | |
Total assets | 0 | 0 |
Liabilities: | ||
Total recurring fair value measurements | 0 | 0 |
Investment in affiliate | 0 | 0 |
Commodity price derivatives | ||
Assets: | ||
Commodity price derivatives | 149 | 52 |
Liabilities: | ||
Commodity price derivatives | 6 | 27 |
Commodity price derivatives | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Commodity price derivatives | 0 | 0 |
Liabilities: | ||
Commodity price derivatives | 0 | 0 |
Commodity price derivatives | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Commodity price derivatives | 149 | 52 |
Liabilities: | ||
Commodity price derivatives | 6 | 27 |
Commodity price derivatives | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Commodity price derivatives | 0 | 0 |
Liabilities: | ||
Commodity price derivatives | $ 0 | $ 0 |
Brent call contracts sold: | Oil contracts, price per bbl | ||
Liabilities: | ||
Floor, price per barrel | $ / bbl | 68.33 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Jul. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | May 31, 2019USD ($) | Apr. 30, 2019USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Impairment of oil and gas properties | $ 0 | $ 0 | $ 0 | $ 77 | ||||
South Texas divestiture | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Contingent consideration | $ 450 | |||||||
Sand mine | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Impairment of inventory and other property and other equipment | 13 | |||||||
Pressure pumping assets | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Impairment of inventory and other property and other equipment | 16 | |||||||
South Texas Divestiture | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Contingent consideration | $ 136 | |||||||
Deficiency fee | 395 | 395 | ||||||
Receivable from buyer | 67 | 67 | ||||||
Raton Basin | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Impairment of oil and gas properties | $ 77 | |||||||
Estimated deficiency charges | $ 111 | |||||||
Annual discount rate | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Contingent consideration, cash payment, measurement input | 0.029 | |||||||
Contingent consideration, cash receipt, measurement input | 0.032 | |||||||
Oil and gas contracts, measurement input | 0.044 | 0.044 | ||||||
Proved properties | Raton Basin | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Impairment of oil and gas properties | 65 | |||||||
Property, plant and equipment | Raton Basin | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Impairment of oil and gas properties | $ 12 | |||||||
South Texas Divestiture | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Deficiency fee | $ 348 | $ 348 | $ 49 | |||||
South Texas Divestiture | South Texas Divestiture | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Receivable from buyer | $ 72 |
Fair Value Measurements (Sche_2
Fair Value Measurements (Schedule of Carrying Values and Financial Instruments Not Carried at Fair Value) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 437 | $ 825 |
Cash and cash equivalents, Fair Value | 437 | 825 |
Restricted cash | 76 | 0 |
Short-term investments | 0 | 443 |
Long-term investments | 0 | 125 |
Current portion of long-term debt | 450 | 0 |
Long-term debt | 1,838 | 2,284 |
Reported Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 443 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 441 |
Current portion of long-term debt | 456 | 0 |
Long-term debt | 1,991 | 2,374 |
Commercial Paper | Reported Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 53 |
Commercial Paper | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 53 |
Corporate Bonds | Reported Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 290 |
Long-term investments | 0 | 125 |
Corporate Bonds | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 288 |
Long-term investments | 0 | 125 |
Time Deposits | Reported Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 100 |
Time Deposits | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 100 |
Cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 437 | 775 |
Cash and cash equivalents, Fair Value | 437 | 775 |
Time Deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 50 |
Cash and cash equivalents, Fair Value | $ 0 | $ 50 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Schedule of Oil Derivative Contracts Volume and Weighted Average Prices) (Details) | Nov. 01, 2019bbl / d$ / bbl | Oct. 01, 2019bbl / d$ / bbl | Sep. 30, 2019bbl / d$ / bbl$ / MMBTU |
Oil contracts | Brent swap contracts, Fourth Quarter | |||
Derivative [Line Items] | |||
Volume, barrels per day | bbl / d | 38,630 | ||
Oil contracts | Brent swap contracts, Fourth Quarter | Subsequent event | |||
Derivative [Line Items] | |||
Volume, barrels per day | bbl / d | 10,000 | 26,522 | |
Oil contracts | Brent swap contracts, Next Year | |||
Derivative [Line Items] | |||
Volume, barrels per day | bbl / d | 0 | ||
Oil contracts | Brent swap contracts, Year Two | |||
Derivative [Line Items] | |||
Volume, barrels per day | bbl / d | 0 | ||
Oil contracts | Brent collar contracts with short puts, Fourth Quarter | |||
Derivative [Line Items] | |||
Volume, barrels per day | bbl / d | 45,000 | ||
Oil contracts | Brent collar contracts with short puts, Next Year | |||
Derivative [Line Items] | |||
Volume, barrels per day | bbl / d | 79,500 | ||
Oil contracts | Brent collar contracts with short puts, Year Two | |||
Derivative [Line Items] | |||
Volume, barrels per day | bbl / d | 0 | ||
Oil contracts | Brent call contracts sold, Fourth Quarter | |||
Derivative [Line Items] | |||
Volume, barrels per day | bbl / d | 0 | ||
Oil contracts | Brent call contracts sold, Next Year | |||
Derivative [Line Items] | |||
Volume, barrels per day | bbl / d | 0 | ||
Oil contracts | Brent call contracts sold, Year Two | |||
Derivative [Line Items] | |||
Volume, barrels per day | bbl / d | 13,000 | ||
Oil contracts, price per bbl | Brent swap contracts, Fourth Quarter | |||
Derivative [Line Items] | |||
Price per Bbl in usd | $ / MMBTU | 64.71 | ||
Oil contracts, price per bbl | Brent swap contracts, Fourth Quarter | Subsequent event | |||
Derivative [Line Items] | |||
Price per Bbl in usd | $ / bbl | 60.86 | 60.38 | |
Oil contracts, price per bbl | Brent swap contracts, Next Year | |||
Derivative [Line Items] | |||
Price per Bbl in usd | $ / MMBTU | 0 | ||
Oil contracts, price per bbl | Brent swap contracts, Year Two | |||
Derivative [Line Items] | |||
Price per Bbl in usd | $ / MMBTU | 0 | ||
Oil contracts, price per bbl | Brent collar contracts with short puts, Fourth Quarter | |||
Derivative [Line Items] | |||
Ceiling, price per barrel | $ / bbl | 80.06 | ||
Floor, price per barrel | $ / bbl | 68.33 | ||
Short put, price per barrel | $ / bbl | 58.33 | ||
Oil contracts, price per bbl | Brent collar contracts with short puts, Next Year | |||
Derivative [Line Items] | |||
Ceiling, price per barrel | $ / bbl | 71.81 | ||
Floor, price per barrel | $ / bbl | 63 | ||
Short put, price per barrel | $ / bbl | 54.01 | ||
Oil contracts, price per bbl | Brent collar contracts with short puts, Year Two | |||
Derivative [Line Items] | |||
Ceiling, price per barrel | $ / bbl | 0 | ||
Floor, price per barrel | $ / bbl | 0 | ||
Short put, price per barrel | $ / bbl | 0 | ||
Oil contracts, price per bbl | Brent call contracts sold, Fourth Quarter | |||
Derivative [Line Items] | |||
Price per Bbl in usd | $ / MMBTU | 0 | ||
Oil contracts, price per bbl | Brent call contracts sold, Next Year | |||
Derivative [Line Items] | |||
Price per Bbl in usd | $ / MMBTU | 0 | ||
Oil contracts, price per bbl | Brent call contracts sold, Year Two | |||
Derivative [Line Items] | |||
Price per Bbl in usd | $ / MMBTU | 72.10 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Schedule of Gas Derivative Contracts Volume and Weighted Average Prices) (Details) $ in Millions | 1 Months Ended | |||
Nov. 30, 2019USD ($) | Oct. 01, 2019MMBTU / d$ / MMBTU | Sep. 30, 2019MMBTU / d$ / MMBTU | May 31, 2019USD ($) | |
South Texas Divestiture | ||||
Derivative [Line Items] | ||||
Contingent consideration | $ | $ 136 | |||
South Texas Divestiture | Maximum | ||||
Derivative [Line Items] | ||||
Contingent consideration | $ | $ 450 | |||
Swap contracts, Fourth Quarter | Gas contracts, in MMBTU | ||||
Derivative [Line Items] | ||||
Volume, barrels per day | MMBTU / d | 83,152 | |||
Swap contracts, Fourth Quarter | Gas contracts, price per MMBTU | ||||
Derivative [Line Items] | ||||
Price per MMBtu in usd | $ / MMBTU | 2.69 | |||
Basis swap contracts, Fourth Quarter | Gas contracts, in MMBTU | Southern California | ||||
Derivative [Line Items] | ||||
Volume, barrels per day | MMBTU / d | 80,000 | |||
Basis swap contracts, Fourth Quarter | Gas contracts, price per MMBTU | Southern California | ||||
Derivative [Line Items] | ||||
Price differential, dollars per barrel | $ / MMBTU | 0.31 | |||
Basis swap contract for November 2019 | Gas contracts, in MMBTU | ||||
Derivative [Line Items] | ||||
Volume, barrels per day | MMBTU / d | 100,000 | |||
Price per MMBtu in usd | $ / MMBTU | 2.26 | |||
Basis swap contract for November 2019 | Gas contracts, in MMBTU | Subsequent event | ||||
Derivative [Line Items] | ||||
Volume, barrels per day | MMBTU / d | 100,000 | |||
Price per MMBtu in usd | $ / MMBTU | 2.63 | |||
Basis swap contract for November 2019 | Gas contracts, in MMBTU | Subsequent event | Forecast | ||||
Derivative [Line Items] | ||||
Derivative gain | $ | $ 1 |
Derivative Financial Instrume_5
Derivative Financial Instruments (Schedule of Derivative Instruments) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Net Fair Value Presented in the Consolidated Balance Sheet | $ 133 | $ 52 |
Net Fair Value Presented in the Consolidated Balance Sheet | 16 | 0 |
Liabilities: | ||
Net Fair Value Presented in the Consolidated Balance Sheet | 6 | 27 |
Derivatives not designated as hedging instruments | Commodity price derivatives | Derivatives - current | ||
Assets: | ||
Fair Value | 133 | 59 |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | (7) |
Net Fair Value Presented in the Consolidated Balance Sheet | 133 | 52 |
Liabilities: | ||
Fair Value | 6 | 34 |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | (7) |
Net Fair Value Presented in the Consolidated Balance Sheet | 6 | $ 27 |
Derivatives not designated as hedging instruments | Commodity price derivatives | Derivatives - noncurrent | ||
Assets: | ||
Fair Value | 16 | |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | |
Net Fair Value Presented in the Consolidated Balance Sheet | 16 | |
Derivatives not designated as hedging instruments | Contingent consideration | Other assets - noncurrent | ||
Assets: | ||
Fair Value | 75 | |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | |
Net Fair Value Presented in the Consolidated Balance Sheet | $ 75 |
Derivative Financial Instrume_6
Derivative Financial Instruments (Schedule of Derivative Obligations Under Terminated Hedge Arrangements) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative [Line Items] | ||||
Derivative gain (loss), net | $ 121 | $ (135) | $ 150 | $ (701) |
Derivative gain (loss), net | Commodity price derivatives | ||||
Derivative [Line Items] | ||||
Derivative gain (loss), net | 121 | (135) | 150 | (701) |
Interest and other income (loss), net | Contingent consideration | ||||
Derivative [Line Items] | ||||
Derivative gain (loss), net | $ (48) | $ 0 | $ (61) | $ 0 |
Exploratory Costs (Schedule of
Exploratory Costs (Schedule of Capitalized Exploratory Well and Project Activity) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Increase (Decrease) in Capitalized Exploratory Well Costs that are Pending Determination of Proved Reserves [Roll Forward] | |
Beginning capitalized exploratory well costs | $ 509 |
Additions to exploratory well costs pending the determination of proved reserves | 1,687 |
Reclassification due to determination of proved reserves | (1,577) |
Disposition of assets | (6) |
Exploratory well costs charged to exploration and abandonment expense | (4) |
Ending capitalized exploratory well costs | $ 609 |
Long-term Debt (Details)
Long-term Debt (Details) | Sep. 30, 2019USD ($)Rate |
Debt Instrument [Line Items] | |
Aggregate loan commitments | $ 1,500,000,000 |
Outstanding borrowing | $ 0 |
7.50% Senior notes due 2020 | |
Debt Instrument [Line Items] | |
Stated interest rate | Rate | 7.50% |
Principal balance | $ 450,000,000 |
Incentive Plans (Schedule of St
Incentive Plans (Schedule of Stock-based Compensation Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 21 | $ 26 | $ 95 | $ 79 | |
Due to affiliates | 215 | 215 | $ 183 | ||
Unrecognized stock-based compensation expense | 111 | $ 111 | |||
Remaining vesting period awards (less than) | 3 years | ||||
Restricted stock - Equity Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | 14 | 17 | $ 65 | 48 | |
Restricted stock - Equity Awards | Corporate Restructuring Program | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Noncash charges related to accelerated vesting of certain equity awards | 1 | 26 | |||
Restricted Stock Liability Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | 2 | 4 | 14 | 16 | |
Unrecognized stock-based compensation expense | 24 | 24 | |||
Restricted Stock Liability Awards | Affiliates | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Due to affiliates | 7 | 7 | $ 14 | ||
Performance unit awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | 5 | 5 | 15 | 13 | |
Employee stock purchase plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 0 | $ 0 | $ 1 | $ 2 |
Incentive Plans (Share Based In
Incentive Plans (Share Based Incentive Award Activity) (Details) | 9 Months Ended |
Sep. 30, 2019shares | |
Restricted Stock Equity Awards | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning balance outstanding, shares | 799,672 |
Awards granted, shares | 712,095 |
Awards forfeited, shares | (44,267) |
Awards vested, shares | (595,675) |
Ending balance outstanding, shares | 871,825 |
Restricted Stock Liability Awards | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning balance outstanding, shares | 201,501 |
Awards granted, shares | 219,298 |
Awards forfeited, shares | (28,030) |
Awards vested, shares | (143,068) |
Ending balance outstanding, shares | 249,701 |
Performance Units | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning balance outstanding, shares | 119,169 |
Awards granted, shares | 86,483 |
Awards forfeited, shares | 0 |
Awards vested, shares | (48,048) |
Ending balance outstanding, shares | 157,604 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||
Beginning asset retirement obligations | $ 183 | |||
New wells placed on production | 1 | |||
Changes in estimate | 44 | |||
Dispositions | (37) | |||
Liabilities settled | (38) | |||
Accretion of discount | $ 2 | $ 3 | 7 | $ 11 |
Ending asset retirement obligations | 160 | 160 | ||
Asset retirement obligations, current portions | $ 73 | $ 73 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Weighted-average discount rate - operating leases | 3.40% | ||
Weighted-average remaining lease term - operating leases | 3 years 2 months 18 days | ||
Operating lease term | 20 years | ||
Annual base rent | $ 33 | ||
Operating lease right-of-use assets | 320 | $ 0 | |
Cash paid for operating, short-term and variable leases | 75 | ||
Operating and variable lease costs associated with drilling operations | 139 | ||
Corporate Headquarters | |||
Property, Plant and Equipment [Line Items] | |||
Operating lease right-of-use assets | $ 27 |
Leases (Lease Costs) (Details)
Leases (Lease Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Lease costs: | ||
Operating lease cost | $ 44 | $ 132 |
Short-term lease cost | 15 | 27 |
Variable lease cost | 15 | 53 |
Lease, Cost | $ 74 | $ 212 |
Leases (Payment Schedule for Op
Leases (Payment Schedule for Operating Lease Obligations) (Details) $ in Millions | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Total lease payments | $ 345 |
Less present value discount | (23) |
Operating Lease, Liability | $ 322 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jul. 01, 2022 | Dec. 31, 2022 | Dec. 31, 2032 | Sep. 30, 2019 | May 31, 2019 | Apr. 30, 2019 |
South Texas Divestiture | |||||||
Loss Contingencies [Line Items] | |||||||
Deficiency fee | $ 395 | ||||||
Receivable from buyer | 67 | ||||||
Credit support from third parties | 325 | ||||||
South Texas Divestiture | Maximum | |||||||
Loss Contingencies [Line Items] | |||||||
Retained obligation percentage | 100.00% | ||||||
Deficiency fee | 640 | ||||||
South Texas Divestiture | Forecast | Maximum | |||||||
Loss Contingencies [Line Items] | |||||||
Retained obligation percentage | 100.00% | ||||||
Buyer recovery percentage | 20.00% | ||||||
Raton transportation commitments | |||||||
Loss Contingencies [Line Items] | |||||||
Credit support from third parties | 50 | ||||||
Raton transportation commitments | Maximum | |||||||
Loss Contingencies [Line Items] | |||||||
Deficiency fee | 92 | ||||||
Raton transportation commitments | Forecast | Maximum | |||||||
Loss Contingencies [Line Items] | |||||||
Retained obligation percentage | 100.00% | ||||||
West Eagle Ford Shale | |||||||
Loss Contingencies [Line Items] | |||||||
Credit support from third parties | 19 | ||||||
West Eagle Ford Shale | Maximum | |||||||
Loss Contingencies [Line Items] | |||||||
Deficiency fee | 26 | ||||||
West Eagle Ford Shale | Forecast | Maximum | |||||||
Loss Contingencies [Line Items] | |||||||
Retained obligation percentage | 100.00% | ||||||
South Texas Divestiture | |||||||
Loss Contingencies [Line Items] | |||||||
Deficiency fee | 348 | $ 49 | |||||
South Texas Divestiture | South Texas Divestiture | |||||||
Loss Contingencies [Line Items] | |||||||
Receivable from buyer | $ 72 | ||||||
South Texas Divestiture | Other current liabilities | South Texas Divestiture | |||||||
Loss Contingencies [Line Items] | |||||||
Estimated future deficiency fees | $ 153 |
Commitments and Contingencies_3
Commitments and Contingencies (Schedule of Changes in Contract Obligations) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Apr. 30, 2019 | |
Loss Contingency Accrual [Roll Forward] | ||
Beginning contract obligations | $ 111 | |
Additions | 400 | |
Liabilities settled | (38) | |
Accretion of discount | 7 | |
Changes in estimate | (1) | |
Ending contract obligations | 479 | |
South Texas Divestiture | ||
Loss Contingency Accrual [Roll Forward] | ||
Deficiency fee | 348 | $ 49 |
Sand storage deficiencies | ||
Loss Contingency Accrual [Roll Forward] | ||
Deficiency fee | 2 | |
Sand mine | ||
Loss Contingency Accrual [Roll Forward] | ||
Deficiency fee | 1 | |
South Texas Divestiture | ||
Loss Contingency Accrual [Roll Forward] | ||
Deficiency fee | $ 395 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Dec. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | |
Related Party Transaction [Line Items] | ||||
Pressure pumping and related services charges | $ 134 | $ 401 | ||
Accounts receivable - due from affiliate | $ 119 | 4 | 4 | |
Accounts payable - due to affiliate | $ 37 | $ 107 | $ 107 | |
ProPetro | ||||
Related Party Transaction [Line Items] | ||||
Ownership percentage | 16.00% | 16.00% | ||
ProPetro | Pressure pumping assets | Sale of assets | ||||
Related Party Transaction [Line Items] | ||||
Shares received | 16.6 | |||
Short-term receivables | $ 282 | $ 110 |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregation of Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 2,406 | $ 2,458 | $ 7,030 | $ 7,175 |
Oil sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 1,068 | 1,033 | 3,032 | 3,079 |
NGL sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 116 | 207 | 373 | 542 |
Gas sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 51 | 77 | 162 | 248 |
Total oil and gas sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 1,235 | 1,317 | 3,567 | 3,869 |
Sales of purchased oil | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 1,166 | 1,127 | 3,455 | 3,261 |
Sales of purchased gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 5 | 14 | 8 | 45 |
Total sales of purchased oil and gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 1,171 | $ 1,141 | $ 3,463 | $ 3,306 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable balance representing amounts due or billable | $ 756 | $ 646 |
Interest and Other Income (Lo_3
Interest and Other Income (Loss), Net (Components of Interest and Other Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Interest and Other Income [Abstract] | ||||
Interest income | $ 3 | $ 7 | $ 15 | $ 21 |
Deferred compensation plan income | 4 | 3 | 10 | 6 |
Severance and sales tax refunds | 6 | 0 | 6 | 1 |
Seismic Data Sales | 5 | 0 | 5 | 5 |
Investment in affiliate mark-to-market adjustment (Note 4) | (193) | 0 | (22) | 0 |
Contingent consideration valuation adjustment (Note 4) | (48) | 0 | (61) | 0 |
Other | 1 | 0 | 5 | 7 |
Interest and other income (loss), net | $ (222) | $ 10 | $ (42) | $ 40 |
Other Expense (Schedule of Comp
Other Expense (Schedule of Components of Other Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 1 | $ 0 | $ 159 | $ 0 |
Transportation commitment charges | 5 | 43 | 70 | 121 |
Asset impairment | 4 | 0 | 34 | 4 |
Asset divestiture-related charges | 4 | 123 | 28 | 129 |
Accelerated depreciation | 0 | 0 | 23 | 0 |
Vertical integration services (income) loss, net | 1 | (5) | 19 | 5 |
Idle drilling and well service equipment expense | 5 | 0 | 18 | 0 |
Legal and environmental charges | 4 | 6 | 12 | 18 |
Other | 8 | 15 | 27 | 39 |
Other expense | 32 | 182 | 390 | 316 |
Other asset impairment charges | 2 | |||
Gross revenues | 25 | 49 | 88 | 113 |
Gross costs and expenses | 26 | $ 44 | 108 | $ 118 |
Employee severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 156 | |||
Restructuring | 154 | |||
South Texas Divestiture | Employee severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset divestiture-related charges | 20 | |||
Sand mine | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Accelerated depreciation | 23 | |||
Vertical integration services (income) loss, net | 13 | |||
Impairment of inventory and other property and other equipment | 13 | |||
Pressure pumping assets | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Vertical integration services (income) loss, net | 14 | |||
Impairment of inventory and other property and other equipment | 16 | |||
Corporate Restructuring Program | Employee severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring | 128 | |||
Restricted stock - Equity Awards | Corporate Restructuring Program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Noncash charges related to accelerated vesting of certain equity awards | $ 1 | $ 26 |
Income Taxes (Schedule of Incom
Income Taxes (Schedule of Income Tax Provision and Effective Tax Rate) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Current tax provision | $ 0 | $ (2) | $ 0 | $ (2) |
Deferred tax provision | (72) | (116) | (127) | (186) |
Income tax provision | $ (72) | $ (118) | $ (127) | $ (188) |
Effective tax rate | 24.00% | 22.00% | 24.00% | 22.00% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits | $ 141 | $ 141 |
Income Taxes (Schedule of Unrec
Income Taxes (Schedule of Unrecognized Tax Benefits) (Details) $ in Millions | Sep. 30, 2019USD ($) |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |
Unrecognized Tax Benefits, Beginning Balance | $ 141 |
Unrecognized Tax Benefits, Ending Balance | $ 141 |
Net Income Per Share (Reconcili
Net Income Per Share (Reconciliation of Earnings Attributable to Common Stockholders, Basic and Diluted) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to common stockholders | $ 231 | $ 411 | $ 412 | $ 655 |
Participating share-based earnings | (1) | (2) | (2) | (3) |
Basic and diluted net income attributable to common stockholders | $ 230 | $ 409 | $ 410 | $ 652 |
Net Income Per Share (Schedule
Net Income Per Share (Schedule of Weighted Average Number of Shares) (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Basic weighted average shares outstanding | 167,000 | 171,000 | 168,000 | 171,000 |
Dilution attributable to stock-based compensation awards | 0 | 0 | 0 | 0 |
Diluted weighted average shares outstanding | 167,000 | 171,000 | 168,000 | 171,000 |
Net Income Per Share (Narrative
Net Income Per Share (Narrative) (Details) - USD ($) shares in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 13, 2018 | Feb. 28, 2018 | |
Terminated stock repurchase program | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Terminated stock repurchase program | $ 100,000,000 | |||||
Common stock repurchase program | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Authorized amount | $ 2,000,000,000 | |||||
Remaining authorized amount | $ 1,300,000,000 | $ 1,300,000,000 | ||||
Purchases of treasury stock (shares) | 200 | 0 | 600 | 22 |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, $ in Millions | Nov. 04, 2019$ / shares | Jul. 31, 2019USD ($)a | Sep. 30, 2019$ / shares | Mar. 31, 2019$ / shares | Sep. 30, 2018$ / shares | Mar. 31, 2018$ / shares | Sep. 30, 2019USD ($)$ / shares | Sep. 30, 2018USD ($)$ / shares |
Subsequent Event [Line Items] | ||||||||
Cash proceeds | $ | $ 82 | $ 383 | ||||||
Dividends declared (usd per share) | $ / shares | $ 0.44 | $ 0.32 | $ 0.16 | $ 0.16 | $ 0.76 | $ 0.32 | ||
Subsequent event | ||||||||
Subsequent Event [Line Items] | ||||||||
Dividends declared (usd per share) | $ / shares | $ 0.44 | |||||||
Sold | Certain vertical wells in Marion County | ||||||||
Subsequent Event [Line Items] | ||||||||
Acres | a | 1,400 | |||||||
Cash proceeds | $ | $ 27 |