Cover Page
Cover Page | 6 Months Ended |
Jun. 30, 2019shares | |
Cover page. | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 2019 |
Document Transition Report | false |
Entity File Number | 001-36478 |
Entity Registrant Name | California Resources Corp |
Entity Central Index Key | 0001609253 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 46-5670947 |
Entity Address, Address Line One | 27200 Tourney Road |
Entity Address, Address Line Two | Suite 315 |
Entity Address, City or Town | Santa Clarita |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 91355 |
City Area Code | 888 |
Local Phone Number | 848-4754 |
Title of 12(b) Security | Common Stock |
Trading Symbol | CRC |
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 | 49,004,413 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
CURRENT ASSETS | ||
Cash | $ 27 | $ 17 |
Trade receivables | 234 | 299 |
Inventories | 70 | 69 |
Other current assets, net | 191 | 255 |
Total current assets | 522 | 640 |
PROPERTY, PLANT AND EQUIPMENT | 22,717 | 22,523 |
Accumulated depreciation, depletion and amortization | (16,308) | (16,068) |
Total property, plant and equipment, net | 6,409 | 6,455 |
OTHER ASSETS | 101 | 63 |
TOTAL ASSETS | 7,032 | 7,158 |
CURRENT LIABILITIES | ||
Current maturities of long-term debt | 100 | 0 |
Accounts payable | 290 | 390 |
Accrued liabilities | 220 | 217 |
Total current liabilities | 610 | 607 |
LONG-TERM DEBT | 5,060 | 5,251 |
DEFERRED GAIN AND ISSUANCE COSTS, NET | 185 | 216 |
OTHER LONG-TERM LIABILITIES | 679 | 575 |
MEZZANINE EQUITY | ||
Redeemable noncontrolling interests | 777 | 756 |
EQUITY | ||
Preferred stock (20 million shares authorized at $0.01 par value) no shares outstanding at June 30, 2019 and December 31, 2018 | 0 | 0 |
Common stock (200 million shares authorized at $0.01 par value) outstanding shares (June 30, 2019 - 49,004,413 and December 31, 2018 - 48,650,420) | 0 | 0 |
Additional paid-in capital | 4,994 | 4,987 |
Accumulated deficit | (5,397) | (5,342) |
Accumulated other comprehensive loss | (5) | (6) |
Total equity attributable to common stock | (408) | (361) |
Equity attributable to noncontrolling interests | 129 | 114 |
Total equity | (279) | (247) |
TOTAL LIABILITIES AND EQUITY | $ 7,032 | $ 7,158 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, authorized shares (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, outstanding shares (in shares) | 0 | 0 |
Common stock, authorized shares (in shares) | 200,000,000 | 200,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, outstanding shares (in shares) | 49,004,413 | 48,650,420 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
REVENUES AND OTHER | ||||
Oil and gas sales | $ 578 | $ 657 | $ 1,179 | $ 1,232 |
Net derivative gain (loss) from commodity contracts | 21 | (167) | (68) | (205) |
Other revenue | 54 | 59 | 232 | 131 |
Total revenues and other | 653 | 549 | 1,343 | 1,158 |
COSTS AND OTHER | ||||
Production costs | 230 | 231 | 463 | 443 |
General and administrative expenses | 79 | 90 | 162 | 153 |
Depreciation, depletion and amortization | 121 | 125 | 239 | 244 |
Taxes other than on income | 36 | 37 | 77 | 75 |
Exploration expense | 10 | 6 | 20 | 14 |
Other expenses, net | 55 | 49 | 203 | 110 |
Total costs and other | 531 | 538 | 1,164 | 1,039 |
OPERATING INCOME | 122 | 11 | 179 | 119 |
NON-OPERATING (LOSS) INCOME | ||||
Interest and debt expense, net | (98) | (94) | (198) | (186) |
Net gain on early extinguishment of debt | 20 | 24 | 26 | 24 |
Gain on asset divestitures | 0 | 1 | 0 | 1 |
Other non-operating expenses | (3) | (5) | (10) | (12) |
INCOME (LOSS) BEFORE INCOME TAXES | 41 | (63) | (3) | (54) |
Income tax | 0 | 0 | 0 | 0 |
NET INCOME (LOSS) | 41 | (63) | (3) | (54) |
NET (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||||
Mezzanine equity | (29) | (29) | (57) | (43) |
Equity | 0 | 10 | 5 | 13 |
Net income attributable to noncontrolling interests | (29) | (19) | (52) | (30) |
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK | $ 12 | $ (82) | $ (55) | $ (84) |
Net income (loss) attributable to common stock per share | ||||
Basic (in dollars per share) | $ 0.25 | $ (1.70) | $ (1.13) | $ (1.81) |
Diluted (in dollars per share) | $ 0.24 | $ (1.70) | $ (1.13) | $ (1.81) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income (loss) | $ 41 | $ (63) | $ (3) | $ (54) | |
Net income attributable to noncontrolling interests | (29) | (19) | (52) | (30) | |
Other comprehensive income: | |||||
Reclassification of realized losses on pension and postretirement benefits to income(a) | [1] | 1 | 1 | 1 | 3 |
Comprehensive income (loss) attributable to common stock | $ 13 | $ (81) | $ (54) | $ (81) | |
[1] | No associated tax for the three and six months ended June 30, 2019 and 2018 . See Note 10 Pension and Postretirement Benefit Plans for additional information. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Pension and postretirement income, associated tax | $ 0 | $ 0 | $ 0 | $ 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
CASH FLOW FROM OPERATING ACTIVITIES | ||
Net loss | $ (3) | $ (54) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 239 | 244 |
Net derivative loss from commodity contracts | 68 | 205 |
Net proceeds (payments) on settled commodity derivatives | 28 | (99) |
Net gain on early extinguishment of debt | (26) | (24) |
Amortization of deferred gain | (36) | (38) |
Gain on asset divestiture | 0 | (1) |
Dry hole expenses | 7 | 4 |
Other non-cash charges to income, net | 47 | 39 |
Changes in operating assets and liabilities, net | (52) | (42) |
Net cash provided by operating activities | 272 | 234 |
CASH FLOW FROM INVESTING ACTIVITIES | ||
Capital investments | (271) | (327) |
Changes in capital investment accruals | (57) | 22 |
Asset divestitures | 165 | 13 |
Acquisitions | (2) | (512) |
Other | (5) | (3) |
Net cash used in investing activities | (170) | (807) |
CASH FLOW FROM FINANCING ACTIVITIES | ||
Proceeds from 2014 Revolving Credit Facility | 1,274 | 1,150 |
Repayments of 2014 Revolving Credit Facility | (1,289) | (1,236) |
Debt repurchases | (59) | (119) |
Contributions from noncontrolling interest holders, net | 49 | 796 |
Distributions paid to noncontrolling interest holders | (65) | (41) |
Issuance of common stock | 1 | 50 |
Shares canceled for taxes | (3) | (5) |
Net cash (used) provided by financing activities | (92) | 595 |
Increase in cash | 10 | 22 |
Cash—beginning of period | 17 | 20 |
Cash—end of period | $ 27 | $ 42 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Equity - USD ($) $ in Millions | Total | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive (Loss) Income | Equity Attributable to Common Stock | Equity Attributable to Noncontrolling Interests |
Beginning balance at Dec. 31, 2017 | $ (720) | $ 4,879 | $ (5,670) | $ (23) | $ (814) | $ 94 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (97) | (84) | (84) | (13) | ||
Contributions from noncontrolling interest holders, net | 82 | 82 | ||||
Distributions to noncontrolling interest holders | (19) | (19) | ||||
Issuance of common stock | 101 | 101 | 101 | |||
Other comprehensive income | 3 | 3 | 3 | |||
Share-based compensation, net | 5 | 5 | 5 | |||
Ending balance at Jun. 30, 2018 | (645) | 4,985 | (5,754) | (20) | (789) | 144 |
Beginning balance at Mar. 31, 2018 | (654) | 4,930 | (5,672) | (21) | (763) | 109 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (92) | (82) | (82) | (10) | ||
Contributions from noncontrolling interest holders, net | 49 | 49 | ||||
Distributions to noncontrolling interest holders | (4) | (4) | ||||
Issuance of common stock | 51 | 51 | 51 | |||
Other comprehensive income | 1 | 1 | 1 | |||
Share-based compensation, net | 4 | 4 | 4 | |||
Ending balance at Jun. 30, 2018 | (645) | 4,985 | (5,754) | (20) | (789) | 144 |
Beginning balance at Dec. 31, 2018 | (247) | 4,987 | (5,342) | (6) | (361) | 114 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (60) | (55) | (55) | (5) | ||
Contributions from noncontrolling interest holders, net | 49 | 49 | ||||
Distributions to noncontrolling interest holders | (29) | (29) | ||||
Other comprehensive income | 1 | 1 | 1 | |||
Share-based compensation, net | 7 | 7 | 7 | |||
Ending balance at Jun. 30, 2019 | (279) | 4,994 | (5,397) | (5) | (408) | 129 |
Beginning balance at Mar. 31, 2019 | (289) | 4,989 | (5,409) | (6) | (426) | 137 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | 12 | 12 | 12 | |||
Distributions to noncontrolling interest holders | (8) | (8) | ||||
Other comprehensive income | 1 | 1 | 1 | |||
Share-based compensation, net | 5 | 5 | 5 | |||
Ending balance at Jun. 30, 2019 | $ (279) | $ 4,994 | $ (5,397) | $ (5) | $ (408) | $ 129 |
THE SPIN-OFF AND BASIS OF PRESE
THE SPIN-OFF AND BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2019 | |
THE SPIN-OFF AND BASIS OF PRESENTATION | |
THE SPIN-OFF AND BASIS OF PRESENTATION | THE SPIN-OFF AND BASIS OF PRESENTATION The Separation and Spin-off We are an independent oil and natural gas exploration and production company operating properties exclusively within California. We were incorporated in Delaware as a wholly owned subsidiary of Occidental Petroleum Corporation (Occidental) on April 23, 2014 , and we became an independent, publicly traded company on December 1, 2014 . Except when the context otherwise requires or where otherwise indicated, all references to ‘‘CRC,’’ the ‘‘Company,’’ ‘‘we,’’ ‘‘us’’ and ‘‘our’’ refer to California Resources Corporation and its subsidiaries. Basis of Presentation In the opinion of our management, the accompanying financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to fairly present our financial position as of June 30, 2019 and December 31, 2018 and the statements of operations, comprehensive income, cash flows and equity for the three and six months ended June 30, 2019 and 2018 , as applicable. We have eliminated all significant intercompany transactions and accounts. We account for our share of oil and gas exploration and development ventures, in which we have a direct working interest, by reporting our proportionate share of assets, liabilities, revenues, costs and cash flows within the relevant lines on our condensed consolidated balance sheets, statements of operations, equity and cash flows. We have prepared this report in accordance with generally accepted accounting principles in the United States (U.S.) and the rules and regulations of the U.S. Securities and Exchange Commission applicable to interim financial information, which permit the omission of certain disclosures to the extent they have not changed materially since the latest annual financial statements. We believe our disclosures are adequate to make the information not misleading. This Form 10-Q should be read in conjunction with the consolidated financial statements and the notes thereto in our Annual Report on Form 10-K for the year ended December 31, 2018 |
ACCOUNTING AND DISCLOSURE CHANG
ACCOUNTING AND DISCLOSURE CHANGES | 6 Months Ended |
Jun. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
ACCOUNTING AND DISCLOSURE CHANGES | ACCOUNTING AND DISCLOSURE CHANGES Recently Adopted Accounting and Disclosure Changes We adopted the Financial Accounting Standards Board's new lease accounting rules (ASC 842), as of January 1, 2019 , using the modified retrospective approach where the new lease standard is not applied to prior comparative periods, which continue to be presented under accounting standards in effect for those prior periods. Under the modified retrospective approach, we recognized right-of-use (ROU) assets and lease liabilities of $66 million as of the adoption date. The adoption of the new lease accounting rules did not materially impact our consolidated results of operations and had no impact on cash flows or beginning retained earnings. The new lease standard does not affect our liquidity and has no impact on our debt-covenant calculations under our 2014 Revolving Credit Facility, 2016 Credit Agreement and 2017 Credit Agreement. See Note 12 Leases for more information. |
OTHER INFORMATION
OTHER INFORMATION | 6 Months Ended |
Jun. 30, 2019 | |
OTHER INFORMATION | |
OTHER INFORMATION | OTHER INFORMATION Cash at June 30, 2019 and December 31, 2018 included $12 million and $2 million , respectively, that was restricted for capital investments and distributions to a joint venture (JV) partner. Other current assets, net as of June 30, 2019 and December 31, 2018 consisted of the following: June 30, December 31, 2019 2018 (in millions) Derivative assets $ 92 $ 168 Amounts due from joint interest partners 66 68 Prepaid expenses 23 16 Other 10 3 Other current assets, net $ 191 $ 255 Accrued liabilities as of June 30, 2019 and December 31, 2018 consisted of the following: June 30, December 31, 2019 2018 (in millions) Accrued employee-related costs $ 77 $ 109 Accrued taxes other than on income 33 38 Asset retirement obligation 31 31 Operating lease liability 29 — Accrued interest 15 15 Other 35 24 Accrued liabilities $ 220 $ 217 Other long-term liabilities included asset retirement obligations of $479 million and $402 million at June 30, 2019 and December 31, 2018 , respectively. Non-cash financing activities in 2018 included 2.85 million shares of common stock (valued at $51 million ) issued in connection with an acquisition. Fair Value of Financial Instruments The carrying amounts of cash and other on-balance sheet financial instruments, other than debt, approximate fair value. Supplemental Cash Flow Information We did not make U.S. federal and state income tax payments during the six months ended June 30, 2019 and 2018 . Interest paid, net of capitalized amounts, totaled $219 million and $212 million for the six months ended June 30, 2019 and 2018 |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories as of June 30, 2019 and December 31, 2018 consisted of the following: June 30, December 31, 2019 2018 (in millions) Materials and supplies $ 68 $ 65 Finished goods 2 4 Total $ 70 $ 69 |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT As of June 30, 2019 and December 31, 2018 , our long-term debt consisted of the following credit agreements, second lien notes and senior notes: Outstanding Principal Interest Rate Maturity Security June 30, 2019 December 31, 2018 Credit Agreements (in millions) 2014 Revolving Credit Facility $ 525 $ 540 LIBOR plus 3.25%-4.00% June 30, 2021 Shared First-Priority Lien 2017 Credit Agreement 1,300 1,300 LIBOR plus 4.75% December 31, 2022 (a) Shared First-Priority Lien 2016 Credit Agreement 1,000 1,000 LIBOR plus 10.375% December 31, 2021 First-Priority Lien Second Lien Notes Second Lien Notes 1,991 2,067 8% December 15, 2022 (b) Second-Priority Lien Senior Notes 5% Senior Notes due 2020 100 100 5% January 15, 2020 Unsecured 5½% Senior Notes due 2021 100 100 5.5% September 15, 2021 Unsecured 6% Senior Notes due 2024 144 144 6% November 15, 2024 Unsecured Total Debt 5,160 5,251 Less: Current Maturities (100 ) — Long-Term Debt $ 5,060 $ 5,251 Note: For a detailed description of our credit agreements, second lien notes and senior notes, please see our most recent Form 10-K for the year ended December 31, 2018. (a) The 2017 Credit Agreement is subject to a springing maturity of 91 days prior to the maturity of our 2016 Credit Agreement if more than $100 million in principal of the 2016 Credit Agreement is outstanding at that time. (b) The Second Lien Notes require principal repayments of $315 million in June 2021, $63 million in December 2021, $65 million in June 2022 and $1,548 million in December 2022. Deferred Gain and Issuance Costs As of June 30, 2019, net deferred gain and issuance costs were $185 million , consisting of $267 million of a deferred gain offset by $82 million of deferred issuance costs and original issue discounts. The December 31, 2018 net deferred gain and issuance costs were $216 million , consisting of $313 million of a deferred gain offset by $97 million of deferred issuance costs and original issue discounts. 2014 Revolving Credit Facility As of June 30, 2019 , we had $309 million of available borrowing capacity under our $1 billion revolving credit facility (2014 Revolving Credit Facility), before a $150 million month-end minimum liquidity requirement. Effective May 1, 2019, the borrowing base under this facility was reaffirmed at $2.3 billion . Our 2014 Revolving Credit Facility also includes a sub-limit of $400 million for the issuance of letters of credit. As of June 30, 2019 and December 31, 2018 , we had letters of credit outstanding of $166 million and $162 million , respectively. These letters of credit were issued to support ordinary course marketing, insurance, regulatory and other matters. Note Repurchases In the first quarter of 2019, we repurchased $18 million in face value of our 8% senior secured second lien notes due December 15, 2022 (Second Lien Notes) for $14 million in cash resulting in a pre-tax gain of $6 million , including the effect of unamortized deferred gain and issuance costs. In the second quarter of 2019, we repurchased $58 million in face value of our Second Lien Notes for $45 million in cash resulting in a pre-tax gain of $20 million , including the effect of unamortized deferred gain and issuance costs. Fair Value We estimate the fair value of fixed-rate debt, which is classified as Level 1, based on prices from known market transactions for our instruments. The estimated fair value of our debt at June 30, 2019 and December 31, 2018 , including the fair value of the variable-rate portion, was $4.6 billion and $4.5 billion , respectively, compared to a carrying value of $5.2 billion and $5.3 billion , respectively. Other At June 30, 2019 , we were in compliance with all financial and other debt covenants. |
JOINT VENTURES
JOINT VENTURES | 6 Months Ended |
Jun. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
JOINT VENTURES | JOINT VENTURES We have two separate development JVs with Benefit Street Partners (BSP) and Macquarie Infrastructure and Real Assets Inc. (MIRA). In July 2019 we entered into a third development JV with subsidiaries of Colony Capital Inc. (Colony) as described in Note 16 Subsequent Event . In addition to these development JVs, we have a midstream JV with Ares Management L.P. (Ares) and several other smaller exploration JVs. The BSP and Ares JVs are consolidated, the details of which are described below. For all of our other JVs, we report our proportionate share of operations in our condensed consolidated financial statements. Noncontrolling Interests The following table presents the changes in noncontrolling interests for our consolidated JVs, which is reported in equity and mezzanine equity on the condensed consolidated balance sheets, for the six months ended June 30, 2019 and 2018 : Equity Attributable to Noncontrolling Interest Mezzanine Equity - Redeemable Noncontrolling Interests Ares JV BSP JV Total Ares JV (in millions) Balance, December 31, 2018 $ 15 $ 99 $ 114 $ 756 Net (loss) income attributable to noncontrolling interests (6 ) 1 (5 ) 57 Contributions from noncontrolling interest holders, net — 49 49 — Distributions to noncontrolling interest holders (4 ) (25 ) (29 ) (36 ) Balance, June 30, 2019 $ 5 $ 124 $ 129 $ 777 Balance, December 31, 2017 $ — $ 94 $ 94 $ — Net (loss) income attributable to noncontrolling interests (6 ) (7 ) (13 ) 43 Contributions from noncontrolling interest holders, net 33 49 82 714 Distributions to noncontrolling interest holders (2 ) (17 ) (19 ) (22 ) Balance, June 30, 2018 $ 25 $ 119 $ 144 $ 735 Ares JV Our condensed consolidated statements of operations reflect the operations of our midstream JV with ECR Corporate Holdings L.P. (ECR), a portfolio company of Ares, with ECR's share of net income (loss) reported in net income attributable to noncontrolling interests. ECR's redeemable noncontrolling interests are reported in mezzanine equity due to an embedded optional redemption feature. BSP JV |
LAWSUITS, CLAIMS, COMMITMENTS A
LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES | LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES We, or certain of our subsidiaries, are involved, in the normal course of business, in lawsuits, environmental and other claims and other contingencies that seek, among other things, compensation for alleged personal injury, breach of contract, property damage or other losses, punitive damages, civil penalties, or injunctive or declaratory relief. We accrue reserves for currently outstanding lawsuits, claims and proceedings when it is probable that a liability has been incurred and the liability can be reasonably estimated. Reserve balances at June 30, 2019 and December 31, 2018 were not material to our balance sheets as of such dates. We also evaluate the amount of reasonably possible losses that we could incur as a result of these matters. We believe that reasonably possible losses that we could incur in excess of reserves accrued would not be material to our consolidated financial position or results of operations. |
DERIVATIVES
DERIVATIVES | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES General We use a variety of derivative instruments to protect our cash flow, operating margin and capital program from the cyclical nature of commodity prices and interest-rate movements. These derivatives are intended to help us maintain adequate liquidity and improve our ability to comply with the covenants of our Credit Facilities in case of price deterioration. We did not have any derivative instruments designated as accounting hedges as of and during the three and six months ended June 30, 2019 and 2018. Unless otherwise indicated, we use the term "hedge" to describe derivative instruments that are designed to achieve our hedging program goals, even though they are not accounted for as accounting hedges. Commodity Price Risk We held the following Brent-based crude oil contracts as of June 30, 2019 : Q3 Q4 Q1 2020 Q2 2020 Purchased Puts: Barrels per day 40,000 35,000 25,000 10,000 Weighted-average price per barrel $ 73.13 $ 75.71 $ 72.00 $ 70.00 Sold Puts: Barrels per day 40,000 35,000 25,000 10,000 Weighted-average price per barrel $ 57.50 $ 60.00 $ 57.00 $ 55.00 Swaps: Barrels per day — — — 5,000 (a) Weighted-average price per barrel $ — $ — $ — $ 70.05 (a) Counterparties have the option to increase swap volumes by up to 5,000 barrels per day at a weighted-average Brent price of $70.05 for the second quarter of 2020. The BSP JV entered into crude oil derivatives for insignificant volumes through 2021 that are included in our consolidated results but not in the above table. The BSP JV also entered into natural gas swaps for insignificant volumes for periods through May 2021. The hedges entered into by the BSP JV could affect the timing of the redemption of BSP's noncontrolling interest. Interest-Rate Risk In May 2018, we entered into derivative contracts that limit our interest rate exposure with respect to $1.3 billion of our variable-rate indebtedness. These interest-rate contracts reset monthly and require the counterparties to pay any excess interest owed on such amount in the event the one-month LIBOR exceeds 2.75% for any monthly period prior to May 2021. Fair Value of Derivatives Our derivative contracts are measured at fair value using industry-standard models with various inputs, including quoted forward prices, and are classified as Level 2 in the required fair value hierarchy for the periods presented. We recognize fair value changes on derivative instruments in each reporting period. The changes in fair value result from the relationship between our existing positions, contract prices or interest rates and the associated forward curves. Commodity Contracts The following table presents the fair values (at gross and net) of our outstanding commodity derivatives as of June 30, 2019 and December 31, 2018 (in millions): June 30, 2019 Balance Sheet Classification Gross Amounts Recognized at Fair Value Gross Amounts Offset in the Balance Sheet Net Fair Value Presented in the Balance Sheet Assets: Other current assets $ 117 $ (25 ) $ 92 Other assets 2 — 2 Liabilities: Accrued liabilities (28 ) 25 (3 ) Other long-term liabilities (1 ) — (1 ) Total derivatives $ 90 $ — $ 90 December 31, 2018 Balance Sheet Classification Gross Amounts Recognized at Fair Value Gross Amounts Offset in the Balance Sheet Net Fair Value Presented in the Balance Sheet Assets: Other current assets $ 252 $ (84 ) $ 168 Other assets 23 (9 ) 14 Liabilities: Accrued liabilities (87 ) 84 (3 ) Other long-term liabilities (10 ) 9 (1 ) Total derivatives $ 178 $ — $ 178 Interest-Rate Contracts |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE We compute basic and diluted earnings per share (EPS) using the two-class method required for participating securities. Certain of our restricted and performance stock awards are considered participating securities because they have non-forfeitable dividend rights at the same rate as our common stock. Under the two-class method, undistributed earnings allocated to participating securities are subtracted from net income attributable to common stock in determining net income available to common stockholders. In loss periods, no allocation is made to participating securities because participating securities do not share in losses. For basic EPS, the weighted-average number of common shares outstanding excludes outstanding shares related to unvested restricted stock awards. For diluted EPS, the basic shares outstanding are adjusted by adding all potentially dilutive securities. The following table presents the calculation of basic and diluted EPS for the three and six months ended June 30, 2019 and 2018 : Three months ended Six months ended 2019 2018 2019 2018 (in millions, except per-share amounts) Net income (loss) $ 41 $ (63 ) $ (3 ) $ (54 ) Net income attributable to noncontrolling interests (29 ) (19 ) (52 ) (30 ) Net income (loss) attributable to common stock 12 (82 ) (55 ) (84 ) Less: net income allocated to participating securities — — — — Net income (loss) available to common stockholders $ 12 $ (82 ) $ (55 ) $ (84 ) Weighted-average common shares outstanding - basic 48.9 48.2 48.8 46.3 Basic EPS $ 0.25 $ (1.70 ) $ (1.13 ) $ (1.81 ) Net income (loss) $ 41 $ (63 ) $ (3 ) $ (54 ) Net income attributable to noncontrolling interests (29 ) (19 ) (52 ) (30 ) Net income (loss) attributable to common stock 12 (82 ) (55 ) (84 ) Less: net income allocated to participating securities — — — — Net income (loss) available to common stockholders $ 12 $ (82 ) $ (55 ) $ (84 ) Weighted-average common shares outstanding - basic 48.9 48.2 48.8 46.3 Dilutive effect of potentially dilutive securities 0.3 — — — Weighted-average common shares outstanding - diluted 49.2 48.2 48.8 46.3 Diluted EPS $ 0.24 $ (1.70 ) $ (1.13 ) $ (1.81 ) Weighted-average anti-dilutive shares 1.9 3.0 2.6 2.9 |
PENSION AND POSTRETIREMENT BENE
PENSION AND POSTRETIREMENT BENEFIT PLANS | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
PENSION AND POSTRETIREMENT BENEFIT PLANS | PENSION AND POSTRETIREMENT BENEFIT PLANS The following table sets forth the components of the net periodic benefit costs for our defined benefit pension and postretirement benefit plans for the three and six months ended June 30, 2019 and 2018 : Three months ended June 30, 2019 2018 Pension Postretirement Pension Postretirement (in millions) Service cost $ — $ 1 $ — $ 1 Interest cost — 2 1 1 Expected return on plan assets — (1 ) (1 ) — Recognized actuarial loss — 1 — — Settlement loss 1 — 2 — Total $ 1 $ 3 $ 2 $ 2 Six months ended June 30, 2019 2018 Pension Postretirement Pension Postretirement (in millions) Service cost $ — $ 2 $ — $ 2 Interest cost 1 3 1 2 Expected return on plan assets (1 ) (1 ) (1 ) — Recognized actuarial loss 1 1 1 — Settlement loss 1 — 4 — Total $ 2 $ 5 $ 5 $ 4 We contributed $1 million to our defined benefit pension plans in each of the three months ended June 30, 2019 and 2018 . We contributed $1 million and $2 million in the six months ended June 30, 2019 and 2018 , respectively. We expect to satisfy minimum funding requirements with contributions of $2 million |
REVENUE RECOGNITION
REVENUE RECOGNITION | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION We derive substantially all of our revenue from sales of oil, natural gas and natural gas liquids (NGLs), with the remaining revenue generated from sales of electricity and marketing activities related to storage and managing excess pipeline capacity. The following is a description of our principal activities from which we generate revenue. Revenues are recognized when control of promised goods is transferred to our customers, in an amount that reflects the consideration we expect to receive in exchange for those goods. Commodity Sales Contracts We recognize revenue from the sale of our oil, natural gas and NGL production when delivery has occurred and control passes to the customer. Our commodity contracts are short term, typically less than a year. We consider our performance obligations to be satisfied upon transfer of control of the commodity. Transportation and processing fees incurred by us prior to control being transferred to customers are recorded as a component of other expenses, net on our condensed consolidated statements of operations. Our commodity sales contracts are indexed to a market price or an average index price. We recognize revenue in the amount that we have a right to invoice once we are able to adequately estimate the consideration (i.e., when market prices are known). Our contracts with customers typically require payment within 30 days following delivery of the product. Electricity The electrical output of the Elk Hills power plant that is not used in our operations is sold to the wholesale power market and to a utility under a power purchase and sales agreement (PPA) expiring in December 2020, which includes a fixed capacity payment and a variable monthly charge based on usage. Revenue is recognized when obligations under the terms of contracts with our customers are satisfied; generally, this occurs upon delivery of the electricity. We report electricity sales as other revenue on our condensed consolidated statements of operations. Revenue is measured as the amount of consideration we expect to receive based on average index pricing with payment due the month following delivery. Payments under our PPA are settled monthly. We consider our performance obligations to be satisfied upon delivery of electricity or as the contracted amount of energy is made available to the customer in the case of capacity payments. Marketing, Trading and Other Marketing, trading and other revenue primarily includes our activities associated with storing, transporting and marketing our production as well as third-party volumes. To transport our natural gas as well as third-party volumes, we have entered into firm pipeline commitments. In addition, we may from time-to-time enter into natural gas purchase and sale agreements with third parties to take advantage of market dislocations. We consider our performance obligations to be satisfied upon transfer of control of the commodity. We report our marketing and trading activities on a gross basis with purchases and costs reported in other expenses, net and sales recorded in other revenue on our condensed consolidated statements of operations. Disaggregation of Revenue The following table provides disaggregated revenue for the six months ended June 30, 2019 and 2018: Three months ended Six months ended 2019 2018 2019 2018 (in millions) Oil and gas sales: Oil $ 496 $ 553 $ 976 $ 1,019 NGLs 39 61 98 124 Natural gas 43 43 105 89 578 657 1,179 1,232 Other revenue: Electricity 16 21 50 45 Marketing, trading and other 38 38 182 85 Interest income — — — 1 54 59 232 131 Net derivative gain (loss) from commodity contracts 21 (167 ) (68 ) (205 ) Total revenues and other $ 653 $ 549 $ 1,343 $ 1,158 |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
LEASES | LEASES On January 1, 2019, we adopted ASC 842 using the modified retrospective approach that requires us to determine our lease balances as of the date of adoption. Prior periods continue to be reported under accounting standards in effect for those periods. We also elected to carry forward our accounting treatment for land easements on existing agreements. Mineral leases, including oil and natural gas leases, are not included in the scope of ASC 842. We have long-term operating leases for commercial office space, drilling rigs, fleet vehicles and certain facilities. In considering whether a contract contains a lease, we first considered whether there was an identifiable asset and then considered how and for what purpose the asset would be used over the contract term. Our lease liability was determined by measuring the present value of the remaining fixed minimum lease payments as of the date of adoption discounted using our incremental borrowing rate (IBR). In determining our IBR, we considered the average cost of borrowing for publicly traded corporate bond yields, which were adjusted to reflect our credit rating, remaining lease term and frequency of payments. We elected to combine lease and non-lease components in determining fixed minimum lease payments for our drilling rigs and commercial office space. If applicable, fixed minimum lease payments were reduced by lease incentives for our commercial buildings and increased by mobilization and demobilization fees related to our drilling rigs. Certain of our lease agreements include options to renew, which we exercise at our sole discretion, and we did not include these options in determining our fixed minimum lease payments over the lease term. Our lease liability does not include options to extend or terminate our leases. Our leases do not include options to purchase the leased property. Lease agreements for our fleet vehicles include residual value guarantees, none of which are recognized in our financial statements until the underlying contingency is resolved. For all of our asset classes, we elected to keep leases with an initial term of 12 months or less off the balance sheet and have included costs related to these contracts in our short-term lease cost disclosure below. Contracts with terms of one month or less are excluded from our disclosure of short-term lease costs. For our long-term contracts, variable lease costs were not included in the measurement of our lease balances. Variable lease costs for our drilling rigs included costs to operate, move and repair the rigs. Variable lease costs for certain of our commercial office buildings included utilities and common area maintenance charges. Variable lease costs for our fleet vehicles included other-than-routine maintenance and other various amounts in excess of our fixed minimum rental fee. Our operating lease costs, including amounts capitalized to property, plant and equipment, for the three and six months ended June 30, 2019 were as follows: Three months ended Six months ended (in millions) Operating lease cost $ 14 $ 26 Short-term lease cost 18 38 Variable lease cost 3 8 Total operating lease costs $ 35 $ 72 During the three months ended June 30, 2019 , we entered into new contracts treated as finance leases, which are not material to our condensed consolidated results of operations. We sublease certain commercial office space to third parties where we are the primary obligor under the head lease. The lease terms on those subleases never extend past the term of the head lease and the subleases contain no extension options or residual value guarantees. Sublease income is recognized based on the contract terms and included as a reduction of operating lease cost under our head lease. For the three and six months ended June 30, 2019 , sublease income was not material to our condensed consolidated financial statements. Supplemental cash flow related to our operating leases for the three and six months ended June 30, 2019 were as follows: Three months ended Six months ended (in millions) Operating cash flows $ 2 $ 5 Investing cash flows $ 12 $ 21 Our operating and financing cash flows from finance leases were not significant for the three months ended June 30, 2019 . Other information related to our operating and finance leases as of June 30, 2019 was as follows: June 30, 2019 Operating Leases ROU asset obtained in exchange for lease obligations (in millions) $ 52 Weighted-average remaining lease term (in years) 2.74 Weighted-average discount rate 11.5 % Finance Leases ROU asset obtained in exchange for lease obligations (in millions) $ 2 Weighted-average remaining lease term (in years) 2.83 Weighted-average discount rate 8.5 % Balance sheet information related to our operating and finance leases as of June 30, 2019 was as follows: June 30, Balance Sheet Location 2019 (in millions) Assets Operating lease, net Other assets $ 50 Finance lease, net PP&E 2 Total lease assets $ 52 Liabilities Current Operating lease Accrued liabilities $ 29 Finance lease Accrued liabilities 1 Long term Operating lease Other long-term liabilities 23 Finance lease Other long-term liabilities 1 Total lease liabilities $ 54 As part of our company-wide consolidation of office space, we are vacating certain office space in 2019, some of which we may sublease. If we enter into a sublease agreement, we will evaluate the carrying value of our ROU asset, along with the carrying value of related tenant improvements, for impairment based on future identifiable cash flows. For the three months ended June 30, 2019, we did not recognize any impairment charges. For the six months ended June 30, 2019 , we recognized impairment charges of $3 million . We may terminate leases for vacated office space before the expiration of the lease term. Where we have decided to not sublease vacated commercial office space, we will shorten the useful life of the ROU assets and related tenant improvements to recover our remaining costs over our expected period of use. Once the leased office space is abandoned, lease costs will be classified as other non-operating expenses on our condensed consolidated statements of operations. Maturities of our operating and financing lease liabilities at June 30, 2019 are as follows: Operating Finance Leases Leases (in millions) 2019 $ 19 $ — 2020 23 1 2021 7 1 2022 4 — 2023 2 — Thereafter 6 — Less: Interest (9 ) — Present value of lease liabilities $ 52 $ 2 We have entered into contracts for commercial office space and facilities that are under construction as of June 30, 2019 . These leases are not included in our lease population at June 30, 2019 as the lease terms have not commenced because we do not control the assets during construction. We will apply the new lease standard when the asset is placed in service by us, which is expected to be in January and June 2020. Payments for these contracts were included in the table of our future minimum lease payments as of December 31, 2018, which is shown below. At December 31, 2018, future minimum lease payments for noncancelable operating leases under ASC 840 (excluding oil and natural gas and other mineral leases, utilities, taxes, insurance and common area maintenance expenses) were: December 31, 2018 (in millions) 2019 $ 12 2020 8 2021 7 2022 7 2023 6 Thereafter 28 Total $ 68 Rental expense for operating leases under ASC 840 was $2 million and $5 million for the three and six months ended June 30, 2018, respectively. Rental income from subleases for the three and six months ended June 30, 2018 was not significant. |
LEASES | LEASES On January 1, 2019, we adopted ASC 842 using the modified retrospective approach that requires us to determine our lease balances as of the date of adoption. Prior periods continue to be reported under accounting standards in effect for those periods. We also elected to carry forward our accounting treatment for land easements on existing agreements. Mineral leases, including oil and natural gas leases, are not included in the scope of ASC 842. We have long-term operating leases for commercial office space, drilling rigs, fleet vehicles and certain facilities. In considering whether a contract contains a lease, we first considered whether there was an identifiable asset and then considered how and for what purpose the asset would be used over the contract term. Our lease liability was determined by measuring the present value of the remaining fixed minimum lease payments as of the date of adoption discounted using our incremental borrowing rate (IBR). In determining our IBR, we considered the average cost of borrowing for publicly traded corporate bond yields, which were adjusted to reflect our credit rating, remaining lease term and frequency of payments. We elected to combine lease and non-lease components in determining fixed minimum lease payments for our drilling rigs and commercial office space. If applicable, fixed minimum lease payments were reduced by lease incentives for our commercial buildings and increased by mobilization and demobilization fees related to our drilling rigs. Certain of our lease agreements include options to renew, which we exercise at our sole discretion, and we did not include these options in determining our fixed minimum lease payments over the lease term. Our lease liability does not include options to extend or terminate our leases. Our leases do not include options to purchase the leased property. Lease agreements for our fleet vehicles include residual value guarantees, none of which are recognized in our financial statements until the underlying contingency is resolved. For all of our asset classes, we elected to keep leases with an initial term of 12 months or less off the balance sheet and have included costs related to these contracts in our short-term lease cost disclosure below. Contracts with terms of one month or less are excluded from our disclosure of short-term lease costs. For our long-term contracts, variable lease costs were not included in the measurement of our lease balances. Variable lease costs for our drilling rigs included costs to operate, move and repair the rigs. Variable lease costs for certain of our commercial office buildings included utilities and common area maintenance charges. Variable lease costs for our fleet vehicles included other-than-routine maintenance and other various amounts in excess of our fixed minimum rental fee. Our operating lease costs, including amounts capitalized to property, plant and equipment, for the three and six months ended June 30, 2019 were as follows: Three months ended Six months ended (in millions) Operating lease cost $ 14 $ 26 Short-term lease cost 18 38 Variable lease cost 3 8 Total operating lease costs $ 35 $ 72 During the three months ended June 30, 2019 , we entered into new contracts treated as finance leases, which are not material to our condensed consolidated results of operations. We sublease certain commercial office space to third parties where we are the primary obligor under the head lease. The lease terms on those subleases never extend past the term of the head lease and the subleases contain no extension options or residual value guarantees. Sublease income is recognized based on the contract terms and included as a reduction of operating lease cost under our head lease. For the three and six months ended June 30, 2019 , sublease income was not material to our condensed consolidated financial statements. Supplemental cash flow related to our operating leases for the three and six months ended June 30, 2019 were as follows: Three months ended Six months ended (in millions) Operating cash flows $ 2 $ 5 Investing cash flows $ 12 $ 21 Our operating and financing cash flows from finance leases were not significant for the three months ended June 30, 2019 . Other information related to our operating and finance leases as of June 30, 2019 was as follows: June 30, 2019 Operating Leases ROU asset obtained in exchange for lease obligations (in millions) $ 52 Weighted-average remaining lease term (in years) 2.74 Weighted-average discount rate 11.5 % Finance Leases ROU asset obtained in exchange for lease obligations (in millions) $ 2 Weighted-average remaining lease term (in years) 2.83 Weighted-average discount rate 8.5 % Balance sheet information related to our operating and finance leases as of June 30, 2019 was as follows: June 30, Balance Sheet Location 2019 (in millions) Assets Operating lease, net Other assets $ 50 Finance lease, net PP&E 2 Total lease assets $ 52 Liabilities Current Operating lease Accrued liabilities $ 29 Finance lease Accrued liabilities 1 Long term Operating lease Other long-term liabilities 23 Finance lease Other long-term liabilities 1 Total lease liabilities $ 54 As part of our company-wide consolidation of office space, we are vacating certain office space in 2019, some of which we may sublease. If we enter into a sublease agreement, we will evaluate the carrying value of our ROU asset, along with the carrying value of related tenant improvements, for impairment based on future identifiable cash flows. For the three months ended June 30, 2019, we did not recognize any impairment charges. For the six months ended June 30, 2019 , we recognized impairment charges of $3 million . We may terminate leases for vacated office space before the expiration of the lease term. Where we have decided to not sublease vacated commercial office space, we will shorten the useful life of the ROU assets and related tenant improvements to recover our remaining costs over our expected period of use. Once the leased office space is abandoned, lease costs will be classified as other non-operating expenses on our condensed consolidated statements of operations. Maturities of our operating and financing lease liabilities at June 30, 2019 are as follows: Operating Finance Leases Leases (in millions) 2019 $ 19 $ — 2020 23 1 2021 7 1 2022 4 — 2023 2 — Thereafter 6 — Less: Interest (9 ) — Present value of lease liabilities $ 52 $ 2 We have entered into contracts for commercial office space and facilities that are under construction as of June 30, 2019 . These leases are not included in our lease population at June 30, 2019 as the lease terms have not commenced because we do not control the assets during construction. We will apply the new lease standard when the asset is placed in service by us, which is expected to be in January and June 2020. Payments for these contracts were included in the table of our future minimum lease payments as of December 31, 2018, which is shown below. At December 31, 2018, future minimum lease payments for noncancelable operating leases under ASC 840 (excluding oil and natural gas and other mineral leases, utilities, taxes, insurance and common area maintenance expenses) were: December 31, 2018 (in millions) 2019 $ 12 2020 8 2021 7 2022 7 2023 6 Thereafter 28 Total $ 68 Rental expense for operating leases under ASC 840 was $2 million and $5 million for the three and six months ended June 30, 2018, respectively. Rental income from subleases for the three and six months ended June 30, 2018 was not significant. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES For the six months ended June 30, 2019 and 2018, we did not provide any current or deferred tax provision or benefit. The difference between our statutory tax rate and our effective tax rate of zero |
ASSET DIVESTITURE
ASSET DIVESTITURE | 6 Months Ended |
Jun. 30, 2019 | |
ASSET DIVESTITURE | |
ASSET DIVESTITURE | ASSET DIVESTITURE On May 1, 2019, we sold 50% of our working interest and transferred operatorship in certain zones of our Lost Hills field, located in the San Joaquin basin, for total consideration in excess of $200 million , consisting of approximately $168 million and a carried 200 -well development program to be drilled through 2023 with an estimated value of $35 million (Lost Hills divestiture). We received cash proceeds of $165 million after transaction costs and purchase price adjustments, which was used to pay down our 2014 Revolving Credit Facility. The partial sale of proved property was accounted for as a normal retirement with no gain or loss recognized. The partial sale of unproved property was recorded as a recovery of cost. |
CONDENSED CONSOLIDATING FINANCI
CONDENSED CONSOLIDATING FINANCIAL INFORMATION | 6 Months Ended |
Jun. 30, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED CONSOLIDATING FINANCIAL INFORMATION | CONDENSED CONSOLIDATING FINANCIAL INFORMATION Our Credit Facilities, Second Lien Notes and Senior Notes are guaranteed both fully and unconditionally and jointly and severally by our material wholly owned subsidiaries (Guarantor Subsidiaries). Certain of our subsidiaries do not guarantee our Credit Facilities, Second Lien Notes and Senior Notes (Non-Guarantor Subsidiaries) either because they hold assets that are less than 1% of our total consolidated assets or because they are not considered a "subsidiary" under the applicable financing agreement. The following condensed consolidating balance sheets as of June 30, 2019 and December 31, 2018 and the condensed consolidating statements of operations and statements of cash flows for the three and six months ended June 30, 2019 and 2018 , as applicable, reflect the condensed consolidating financial information of our parent company, CRC (Parent), our combined Guarantor Subsidiaries, our combined Non-Guarantor Subsidiaries and the elimination entries necessary to arrive at the information for the Company on a consolidated basis. The financial information may not necessarily be indicative of results of operations, cash flows or financial position had the Guarantor Subsidiaries operated as independent entities. Condensed Consolidating Balance Sheets As of June 30, 2019 and December 31, 2018 (in millions) As of June 30, 2019 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated Total current assets $ 10 $ 452 $ 73 $ (13 ) $ 522 Total property, plant and equipment, net 23 5,874 512 — 6,409 Investments in consolidated subsidiaries 5,684 130 — (5,814 ) — Other assets 2 71 28 — 101 TOTAL ASSETS $ 5,719 $ 6,527 $ 613 $ (5,827 ) $ 7,032 Total current liabilities 210 404 9 (13 ) 610 Long-term debt 5,060 — — — 5,060 Deferred gain and issuance costs, net 185 — — — 185 Other long-term liabilities 143 532 4 — 679 Amounts due to (from) affiliates 529 (529 ) — — — Mezzanine equity — — 777 — 777 Total equity (408 ) 6,120 (177 ) (5,814 ) (279 ) TOTAL LIABILITIES AND EQUITY $ 5,719 $ 6,527 $ 613 $ (5,827 ) $ 7,032 As of December 31, 2018 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated Total current assets $ 7 $ 590 $ 56 $ (13 ) $ 640 Total property, plant and equipment, net 23 5,913 519 — 6,455 Investments in consolidated subsidiaries 5,440 96 — (5,536 ) — Other assets 4 32 27 — 63 TOTAL ASSETS $ 5,474 $ 6,631 $ 602 $ (5,549 ) $ 7,158 Total current liabilities 143 465 12 (13 ) 607 Long-term debt 5,251 — — — 5,251 Deferred gain and issuance costs, net 216 — — — 216 Other long-term liabilities 140 431 4 — 575 Amounts due to (from) affiliates 85 (86 ) 1 — — Mezzanine equity — — 756 — 756 Total equity (361 ) 5,821 (171 ) (5,536 ) (247 ) TOTAL LIABILITIES AND EQUITY $ 5,474 $ 6,631 $ 602 $ (5,549 ) $ 7,158 Condensed Consolidating Statements of Operations For the three and six months ended June 30, 2019 and 2018 (in millions) For the three months ended June 30, 2019 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated Total revenues and other $ — $ 610 $ 113 $ (70 ) $ 653 Total costs and other 52 490 59 (70 ) 531 Non-operating (loss) income (83 ) 2 — — (81 ) NET (LOSS) INCOME (135 ) 122 54 — 41 Net income attributable to noncontrolling interests — — (29 ) — (29 ) NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCK $ (135 ) $ 122 $ 25 $ — $ 12 For the three months ended June 30, 2018 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated Total revenues and other $ — $ 526 $ 94 $ (71 ) $ 549 Total costs and other 64 499 46 (71 ) 538 Non-operating (loss) income (74 ) — — — (74 ) NET (LOSS) INCOME (138 ) 27 48 — (63 ) Net income attributable to noncontrolling interest — — (19 ) — (19 ) NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCK $ (138 ) $ 27 $ 29 $ — $ (82 ) For the six months ended June 30, 2019 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated Total revenues and other $ — $ 1,255 $ 235 $ (147 ) $ 1,343 Total costs and other 106 1,074 131 (147 ) 1,164 Non-operating (loss) income (187 ) 5 — — (182 ) NET INCOME (LOSS) (293 ) 186 104 — (3 ) Net income attributable to noncontrolling interests — — (52 ) — (52 ) NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCK $ (293 ) $ 186 $ 52 $ — $ (55 ) For the six months ended June 30, 2018 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated Total revenues and other $ 1 $ 1,111 $ 159 $ (113 ) $ 1,158 Total costs and other 107 960 85 (113 ) 1,039 Non-operating (loss) income (173 ) — — — (173 ) NET (LOSS) INCOME (279 ) 151 74 — (54 ) Net income attributable to noncontrolling interest — — (30 ) — (30 ) NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCK $ (279 ) $ 151 $ 44 $ — $ (84 ) Condensed Consolidating Statements of Cash Flows For the six months ended June 30, 2019 and 2018 (in millions) For the six months ended June 30, 2019 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated Net cash (used) provided by operating activities $ (348 ) $ 303 $ 317 $ — $ 272 Net cash used in investing activities (5 ) (154 ) (11 ) — (170 ) Net cash provided (used) by financing activities 353 (149 ) (296 ) — (92 ) Increase in cash — — 10 — 10 Cash—beginning of period — 7 10 — 17 Cash—end of period $ — $ 7 $ 20 $ — $ 27 For the six months ended June 30, 2018 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated Net cash (used) provided by operating activities $ (334 ) $ 480 $ 88 $ — $ 234 Net cash used in investing activities (1 ) (776 ) (30 ) — (807 ) Net cash provided (used) by financing activities 334 293 (32 ) — 595 Decrease (increase) in cash (1 ) (3 ) 26 — 22 Cash—beginning of period 7 8 5 — 20 Cash—end of period $ 6 $ 5 $ 31 $ — $ 42 |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENT In July 2019, we entered into a JV with Colony under which Colony has committed to invest $320 million for the development of portions of our Elk Hills field, located in the San Joaquin basin. Colony's total investment may be increased to $500 million , subject to the mutual agreement of the parties. The initial commitment will cover multiple development opportunities in the Elk Hills field and is intended to be invested over approximately three years in accordance with a development plan that has been agreed to by the parties consisting of 275 wells. Colony will fund 100% of the development wells and will earn a 90% working interest in those wells. If Colony receives an agreed upon return, our working interest in those wells will increase from 10% to 82.5% . Our financial statements will reflect only our working interest share in the developed wells. Colony also received a warrant to purchase up to 1.25 million shares of our common stock at an exercise price of $40 per share. Colony will be entitled to exercise the warrant in tranches as funding milestones are met. Each tranche will have a five-year term commencing on the date on which such tranche becomes exercisable. |
THE SPIN-OFF AND BASIS OF PRE_2
THE SPIN-OFF AND BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
THE SPIN-OFF AND BASIS OF PRESENTATION | |
Basis of Presentation | Basis of Presentation In the opinion of our management, the accompanying financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to fairly present our financial position as of June 30, 2019 and December 31, 2018 and the statements of operations, comprehensive income, cash flows and equity for the three and six months ended June 30, 2019 and 2018 , as applicable. We have eliminated all significant intercompany transactions and accounts. We account for our share of oil and gas exploration and development ventures, in which we have a direct working interest, by reporting our proportionate share of assets, liabilities, revenues, costs and cash flows within the relevant lines on our condensed consolidated balance sheets, statements of operations, equity and cash flows. We have prepared this report in accordance with generally accepted accounting principles in the United States (U.S.) and the rules and regulations of the U.S. Securities and Exchange Commission applicable to interim financial information, which permit the omission of certain disclosures to the extent they have not changed materially since the latest annual financial statements. We believe our disclosures are adequate to make the information not misleading. This Form 10-Q should be read in conjunction with the consolidated financial statements and the notes thereto in our Annual Report on Form 10-K for the year ended December 31, 2018 |
OTHER INFORMATION (Tables)
OTHER INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
OTHER INFORMATION | |
Schedule of other current assets, net | Other current assets, net as of June 30, 2019 and December 31, 2018 consisted of the following: June 30, December 31, 2019 2018 (in millions) Derivative assets $ 92 $ 168 Amounts due from joint interest partners 66 68 Prepaid expenses 23 16 Other 10 3 Other current assets, net $ 191 $ 255 |
Schedule of accrued liabilities | Accrued liabilities as of June 30, 2019 and December 31, 2018 consisted of the following: June 30, December 31, 2019 2018 (in millions) Accrued employee-related costs $ 77 $ 109 Accrued taxes other than on income 33 38 Asset retirement obligation 31 31 Operating lease liability 29 — Accrued interest 15 15 Other 35 24 Accrued liabilities $ 220 $ 217 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories as of June 30, 2019 and December 31, 2018 consisted of the following: June 30, December 31, 2019 2018 (in millions) Materials and supplies $ 68 $ 65 Finished goods 2 4 Total $ 70 $ 69 |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | As of June 30, 2019 and December 31, 2018 , our long-term debt consisted of the following credit agreements, second lien notes and senior notes: Outstanding Principal Interest Rate Maturity Security June 30, 2019 December 31, 2018 Credit Agreements (in millions) 2014 Revolving Credit Facility $ 525 $ 540 LIBOR plus 3.25%-4.00% June 30, 2021 Shared First-Priority Lien 2017 Credit Agreement 1,300 1,300 LIBOR plus 4.75% December 31, 2022 (a) Shared First-Priority Lien 2016 Credit Agreement 1,000 1,000 LIBOR plus 10.375% December 31, 2021 First-Priority Lien Second Lien Notes Second Lien Notes 1,991 2,067 8% December 15, 2022 (b) Second-Priority Lien Senior Notes 5% Senior Notes due 2020 100 100 5% January 15, 2020 Unsecured 5½% Senior Notes due 2021 100 100 5.5% September 15, 2021 Unsecured 6% Senior Notes due 2024 144 144 6% November 15, 2024 Unsecured Total Debt 5,160 5,251 Less: Current Maturities (100 ) — Long-Term Debt $ 5,060 $ 5,251 Note: For a detailed description of our credit agreements, second lien notes and senior notes, please see our most recent Form 10-K for the year ended December 31, 2018. (a) The 2017 Credit Agreement is subject to a springing maturity of 91 days prior to the maturity of our 2016 Credit Agreement if more than $100 million in principal of the 2016 Credit Agreement is outstanding at that time. (b) The Second Lien Notes require principal repayments of $315 million in June 2021, $63 million in December 2021, $65 million in June 2022 and $1,548 million in December 2022. |
JOINT VENTURES (Tables)
JOINT VENTURES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of changes in noncontrolling interests | The following table presents the changes in noncontrolling interests for our consolidated JVs, which is reported in equity and mezzanine equity on the condensed consolidated balance sheets, for the six months ended June 30, 2019 and 2018 : Equity Attributable to Noncontrolling Interest Mezzanine Equity - Redeemable Noncontrolling Interests Ares JV BSP JV Total Ares JV (in millions) Balance, December 31, 2018 $ 15 $ 99 $ 114 $ 756 Net (loss) income attributable to noncontrolling interests (6 ) 1 (5 ) 57 Contributions from noncontrolling interest holders, net — 49 49 — Distributions to noncontrolling interest holders (4 ) (25 ) (29 ) (36 ) Balance, June 30, 2019 $ 5 $ 124 $ 129 $ 777 Balance, December 31, 2017 $ — $ 94 $ 94 $ — Net (loss) income attributable to noncontrolling interests (6 ) (7 ) (13 ) 43 Contributions from noncontrolling interest holders, net 33 49 82 714 Distributions to noncontrolling interest holders (2 ) (17 ) (19 ) (22 ) Balance, June 30, 2018 $ 25 $ 119 $ 144 $ 735 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of oil hedge positions | We held the following Brent-based crude oil contracts as of June 30, 2019 : Q3 Q4 Q1 2020 Q2 2020 Purchased Puts: Barrels per day 40,000 35,000 25,000 10,000 Weighted-average price per barrel $ 73.13 $ 75.71 $ 72.00 $ 70.00 Sold Puts: Barrels per day 40,000 35,000 25,000 10,000 Weighted-average price per barrel $ 57.50 $ 60.00 $ 57.00 $ 55.00 Swaps: Barrels per day — — — 5,000 (a) Weighted-average price per barrel $ — $ — $ — $ 70.05 (a) Counterparties have the option to increase swap volumes by up to 5,000 barrels per day at a weighted-average Brent price of $70.05 for the second quarter of 2020. |
Schedule of fair value (at gross and net) of outstanding derivatives | The following table presents the fair values (at gross and net) of our outstanding commodity derivatives as of June 30, 2019 and December 31, 2018 (in millions): June 30, 2019 Balance Sheet Classification Gross Amounts Recognized at Fair Value Gross Amounts Offset in the Balance Sheet Net Fair Value Presented in the Balance Sheet Assets: Other current assets $ 117 $ (25 ) $ 92 Other assets 2 — 2 Liabilities: Accrued liabilities (28 ) 25 (3 ) Other long-term liabilities (1 ) — (1 ) Total derivatives $ 90 $ — $ 90 December 31, 2018 Balance Sheet Classification Gross Amounts Recognized at Fair Value Gross Amounts Offset in the Balance Sheet Net Fair Value Presented in the Balance Sheet Assets: Other current assets $ 252 $ (84 ) $ 168 Other assets 23 (9 ) 14 Liabilities: Accrued liabilities (87 ) 84 (3 ) Other long-term liabilities (10 ) 9 (1 ) Total derivatives $ 178 $ — $ 178 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Calculation of basic and diluted EPS | The following table presents the calculation of basic and diluted EPS for the three and six months ended June 30, 2019 and 2018 : Three months ended Six months ended 2019 2018 2019 2018 (in millions, except per-share amounts) Net income (loss) $ 41 $ (63 ) $ (3 ) $ (54 ) Net income attributable to noncontrolling interests (29 ) (19 ) (52 ) (30 ) Net income (loss) attributable to common stock 12 (82 ) (55 ) (84 ) Less: net income allocated to participating securities — — — — Net income (loss) available to common stockholders $ 12 $ (82 ) $ (55 ) $ (84 ) Weighted-average common shares outstanding - basic 48.9 48.2 48.8 46.3 Basic EPS $ 0.25 $ (1.70 ) $ (1.13 ) $ (1.81 ) Net income (loss) $ 41 $ (63 ) $ (3 ) $ (54 ) Net income attributable to noncontrolling interests (29 ) (19 ) (52 ) (30 ) Net income (loss) attributable to common stock 12 (82 ) (55 ) (84 ) Less: net income allocated to participating securities — — — — Net income (loss) available to common stockholders $ 12 $ (82 ) $ (55 ) $ (84 ) Weighted-average common shares outstanding - basic 48.9 48.2 48.8 46.3 Dilutive effect of potentially dilutive securities 0.3 — — — Weighted-average common shares outstanding - diluted 49.2 48.2 48.8 46.3 Diluted EPS $ 0.24 $ (1.70 ) $ (1.13 ) $ (1.81 ) Weighted-average anti-dilutive shares 1.9 3.0 2.6 2.9 |
PENSION AND POSTRETIREMENT BE_2
PENSION AND POSTRETIREMENT BENEFIT PLANS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Components of the net periodic benefit costs | The following table sets forth the components of the net periodic benefit costs for our defined benefit pension and postretirement benefit plans for the three and six months ended June 30, 2019 and 2018 : Three months ended June 30, 2019 2018 Pension Postretirement Pension Postretirement (in millions) Service cost $ — $ 1 $ — $ 1 Interest cost — 2 1 1 Expected return on plan assets — (1 ) (1 ) — Recognized actuarial loss — 1 — — Settlement loss 1 — 2 — Total $ 1 $ 3 $ 2 $ 2 Six months ended June 30, 2019 2018 Pension Postretirement Pension Postretirement (in millions) Service cost $ — $ 2 $ — $ 2 Interest cost 1 3 1 2 Expected return on plan assets (1 ) (1 ) (1 ) — Recognized actuarial loss 1 1 1 — Settlement loss 1 — 4 — Total $ 2 $ 5 $ 5 $ 4 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregated revenue | The following table provides disaggregated revenue for the six months ended June 30, 2019 and 2018: Three months ended Six months ended 2019 2018 2019 2018 (in millions) Oil and gas sales: Oil $ 496 $ 553 $ 976 $ 1,019 NGLs 39 61 98 124 Natural gas 43 43 105 89 578 657 1,179 1,232 Other revenue: Electricity 16 21 50 45 Marketing, trading and other 38 38 182 85 Interest income — — — 1 54 59 232 131 Net derivative gain (loss) from commodity contracts 21 (167 ) (68 ) (205 ) Total revenues and other $ 653 $ 549 $ 1,343 $ 1,158 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Schedule of operating lease costs, including amounts capitalized to property, plant and equipment | Supplemental cash flow related to our operating leases for the three and six months ended June 30, 2019 were as follows: Three months ended Six months ended (in millions) Operating cash flows $ 2 $ 5 Investing cash flows $ 12 $ 21 Our operating lease costs, including amounts capitalized to property, plant and equipment, for the three and six months ended June 30, 2019 were as follows: Three months ended Six months ended (in millions) Operating lease cost $ 14 $ 26 Short-term lease cost 18 38 Variable lease cost 3 8 Total operating lease costs $ 35 $ 72 |
Schedule of other operating and finance lease information | Other information related to our operating and finance leases as of June 30, 2019 was as follows: June 30, 2019 Operating Leases ROU asset obtained in exchange for lease obligations (in millions) $ 52 Weighted-average remaining lease term (in years) 2.74 Weighted-average discount rate 11.5 % Finance Leases ROU asset obtained in exchange for lease obligations (in millions) $ 2 Weighted-average remaining lease term (in years) 2.83 Weighted-average discount rate 8.5 % |
Schedule of supplemental balance sheet information related to operating leases | Balance sheet information related to our operating and finance leases as of June 30, 2019 was as follows: June 30, Balance Sheet Location 2019 (in millions) Assets Operating lease, net Other assets $ 50 Finance lease, net PP&E 2 Total lease assets $ 52 Liabilities Current Operating lease Accrued liabilities $ 29 Finance lease Accrued liabilities 1 Long term Operating lease Other long-term liabilities 23 Finance lease Other long-term liabilities 1 Total lease liabilities $ 54 |
Schedule of maturities of our operating lease liabilities | Maturities of our operating and financing lease liabilities at June 30, 2019 are as follows: Operating Finance Leases Leases (in millions) 2019 $ 19 $ — 2020 23 1 2021 7 1 2022 4 — 2023 2 — Thereafter 6 — Less: Interest (9 ) — Present value of lease liabilities $ 52 $ 2 |
Schedule of maturities of our financing lease liabilities | Maturities of our operating and financing lease liabilities at June 30, 2019 are as follows: Operating Finance Leases Leases (in millions) 2019 $ 19 $ — 2020 23 1 2021 7 1 2022 4 — 2023 2 — Thereafter 6 — Less: Interest (9 ) — Present value of lease liabilities $ 52 $ 2 |
Schedule of future minimum lease payments for noncancelable operating leases | At December 31, 2018, future minimum lease payments for noncancelable operating leases under ASC 840 (excluding oil and natural gas and other mineral leases, utilities, taxes, insurance and common area maintenance expenses) were: December 31, 2018 (in millions) 2019 $ 12 2020 8 2021 7 2022 7 2023 6 Thereafter 28 Total $ 68 |
CONDENSED CONSOLIDATING FINAN_2
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of condensed balance sheet | The financial information may not necessarily be indicative of results of operations, cash flows or financial position had the Guarantor Subsidiaries operated as independent entities. Condensed Consolidating Balance Sheets As of June 30, 2019 and December 31, 2018 (in millions) As of June 30, 2019 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated Total current assets $ 10 $ 452 $ 73 $ (13 ) $ 522 Total property, plant and equipment, net 23 5,874 512 — 6,409 Investments in consolidated subsidiaries 5,684 130 — (5,814 ) — Other assets 2 71 28 — 101 TOTAL ASSETS $ 5,719 $ 6,527 $ 613 $ (5,827 ) $ 7,032 Total current liabilities 210 404 9 (13 ) 610 Long-term debt 5,060 — — — 5,060 Deferred gain and issuance costs, net 185 — — — 185 Other long-term liabilities 143 532 4 — 679 Amounts due to (from) affiliates 529 (529 ) — — — Mezzanine equity — — 777 — 777 Total equity (408 ) 6,120 (177 ) (5,814 ) (279 ) TOTAL LIABILITIES AND EQUITY $ 5,719 $ 6,527 $ 613 $ (5,827 ) $ 7,032 As of December 31, 2018 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated Total current assets $ 7 $ 590 $ 56 $ (13 ) $ 640 Total property, plant and equipment, net 23 5,913 519 — 6,455 Investments in consolidated subsidiaries 5,440 96 — (5,536 ) — Other assets 4 32 27 — 63 TOTAL ASSETS $ 5,474 $ 6,631 $ 602 $ (5,549 ) $ 7,158 Total current liabilities 143 465 12 (13 ) 607 Long-term debt 5,251 — — — 5,251 Deferred gain and issuance costs, net 216 — — — 216 Other long-term liabilities 140 431 4 — 575 Amounts due to (from) affiliates 85 (86 ) 1 — — Mezzanine equity — — 756 — 756 Total equity (361 ) 5,821 (171 ) (5,536 ) (247 ) TOTAL LIABILITIES AND EQUITY $ 5,474 $ 6,631 $ 602 $ (5,549 ) $ 7,158 |
Schedule of condensed income statement | Condensed Consolidating Statements of Operations For the three and six months ended June 30, 2019 and 2018 (in millions) For the three months ended June 30, 2019 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated Total revenues and other $ — $ 610 $ 113 $ (70 ) $ 653 Total costs and other 52 490 59 (70 ) 531 Non-operating (loss) income (83 ) 2 — — (81 ) NET (LOSS) INCOME (135 ) 122 54 — 41 Net income attributable to noncontrolling interests — — (29 ) — (29 ) NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCK $ (135 ) $ 122 $ 25 $ — $ 12 For the three months ended June 30, 2018 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated Total revenues and other $ — $ 526 $ 94 $ (71 ) $ 549 Total costs and other 64 499 46 (71 ) 538 Non-operating (loss) income (74 ) — — — (74 ) NET (LOSS) INCOME (138 ) 27 48 — (63 ) Net income attributable to noncontrolling interest — — (19 ) — (19 ) NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCK $ (138 ) $ 27 $ 29 $ — $ (82 ) For the six months ended June 30, 2019 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated Total revenues and other $ — $ 1,255 $ 235 $ (147 ) $ 1,343 Total costs and other 106 1,074 131 (147 ) 1,164 Non-operating (loss) income (187 ) 5 — — (182 ) NET INCOME (LOSS) (293 ) 186 104 — (3 ) Net income attributable to noncontrolling interests — — (52 ) — (52 ) NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCK $ (293 ) $ 186 $ 52 $ — $ (55 ) For the six months ended June 30, 2018 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated Total revenues and other $ 1 $ 1,111 $ 159 $ (113 ) $ 1,158 Total costs and other 107 960 85 (113 ) 1,039 Non-operating (loss) income (173 ) — — — (173 ) NET (LOSS) INCOME (279 ) 151 74 — (54 ) Net income attributable to noncontrolling interest — — (30 ) — (30 ) NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCK $ (279 ) $ 151 $ 44 $ — $ (84 ) |
Schedule of condensed cash flow statement | Condensed Consolidating Statements of Cash Flows For the six months ended June 30, 2019 and 2018 (in millions) For the six months ended June 30, 2019 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated Net cash (used) provided by operating activities $ (348 ) $ 303 $ 317 $ — $ 272 Net cash used in investing activities (5 ) (154 ) (11 ) — (170 ) Net cash provided (used) by financing activities 353 (149 ) (296 ) — (92 ) Increase in cash — — 10 — 10 Cash—beginning of period — 7 10 — 17 Cash—end of period $ — $ 7 $ 20 $ — $ 27 For the six months ended June 30, 2018 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated Net cash (used) provided by operating activities $ (334 ) $ 480 $ 88 $ — $ 234 Net cash used in investing activities (1 ) (776 ) (30 ) — (807 ) Net cash provided (used) by financing activities 334 293 (32 ) — 595 Decrease (increase) in cash (1 ) (3 ) 26 — 22 Cash—beginning of period 7 8 5 — 20 Cash—end of period $ 6 $ 5 $ 31 $ — $ 42 |
ACCOUNTING AND DISCLOSURE CHA_2
ACCOUNTING AND DISCLOSURE CHANGES (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jan. 01, 2019 |
Recently Issued Accounting and Disclosure Changes | ||
ROU asset obtained in exchange for lease obligations (in millions) | $ 50 | |
Operating Lease Liability | $ 52 | |
Accounting Standards Update 2016-02 | ||
Recently Issued Accounting and Disclosure Changes | ||
ROU asset obtained in exchange for lease obligations (in millions) | $ 66 | |
Operating Lease Liability | $ 66 |
OTHER INFORMATION (Details)
OTHER INFORMATION (Details) - USD ($) shares in Thousands, $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Other Information [Line Items] | |||
Cash restricted for capital investments and distributions to a joint venture (JV) partner | $ 12 | $ 2 | |
Other Current Assets | |||
Derivative assets | 92 | 168 | |
Amounts due from joint interest partners | 66 | 68 | |
Prepaid expenses | 23 | 16 | |
Other | 10 | 3 | |
Other current assets, net | 191 | 255 | |
Accrued Liabilities | |||
Accrued employee-related costs | 77 | 109 | |
Accrued taxes other than on income | 33 | 38 | |
Asset retirement obligation | 31 | 31 | |
Operating lease liability | 29 | ||
Accrued interest | 15 | 15 | |
Other | 35 | 24 | |
Accrued liabilities | 220 | $ 217 | |
Common stock, shares, issued (in shares) | 2,850 | ||
Common stock, value, issued | $ 51 | ||
Interest paid, net of capitalized amounts | 219 | $ 212 | |
Other long-term liabilities | |||
Accrued Liabilities | |||
Non-current asset retirement obligation | $ 479 | $ 402 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Materials and supplies | $ 68 | $ 65 |
Finished goods | 2 | 4 |
Total | $ 70 | $ 69 |
DEBT - Schedule of long-term de
DEBT - Schedule of long-term debt (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Debt | |||
Total Debt | $ 5,160,000,000 | $ 5,251,000,000 | |
Less: Current Maturities | (100,000,000) | 0 | |
Long-Term Debt | 5,060,000,000 | 5,251,000,000 | |
2014 Revolving Credit Facility (Shared First Priority Lien) | |||
Debt | |||
Total Debt | $ 525,000,000 | 540,000,000 | |
2014 Revolving Credit Facility (Shared First Priority Lien) | Applicable margin on LIBOR loans | Minimum | |||
Debt | |||
Interest rate added to variable rate basis (as a percent) | 3.25% | ||
2014 Revolving Credit Facility (Shared First Priority Lien) | Applicable margin on LIBOR loans | Maximum | |||
Debt | |||
Interest rate added to variable rate basis (as a percent) | 4.00% | ||
2014 Revolving Credit Facility (Shared First Priority Lien) | Applicable margin on Alternate Base Rate loans | Minimum | |||
Debt | |||
Interest rate added to variable rate basis (as a percent) | 2.25% | ||
2014 Revolving Credit Facility (Shared First Priority Lien) | Applicable margin on Alternate Base Rate loans | Maximum | |||
Debt | |||
Interest rate added to variable rate basis (as a percent) | 3.00% | ||
2017 Credit Agreement (Shared First Priority Lien) | |||
Debt | |||
Total Debt | $ 1,300,000,000 | 1,300,000,000 | |
Outstanding amount of 2016 Credit Agreement notes that triggers accelerated payment | $ 100,000,000 | ||
Period before maturity of the 2016 Credit Agreement notes that triggers accelerated payment | 91 days | ||
2017 Credit Agreement (Shared First Priority Lien) | Applicable margin on LIBOR loans | |||
Debt | |||
Interest rate added to variable rate basis (as a percent) | 4.75% | ||
2017 Credit Agreement (Shared First Priority Lien) | Applicable margin on Alternate Base Rate loans | |||
Debt | |||
Interest rate added to variable rate basis (as a percent) | 3.75% | ||
2016 Credit Agreement (Shared First Priority Lien) | |||
Debt | |||
Total Debt | $ 1,000,000,000 | 1,000,000,000 | |
2016 Credit Agreement (Shared First Priority Lien) | Applicable margin on LIBOR loans | |||
Debt | |||
Interest rate added to variable rate basis (as a percent) | 10.375% | ||
2016 Credit Agreement (Shared First Priority Lien) | Applicable margin on Alternate Base Rate loans | |||
Debt | |||
Interest rate added to variable rate basis (as a percent) | 9.375% | ||
Second Lien Notes (Second Priority Lien) | |||
Debt | |||
Total Debt | $ 1,991,000,000 | $ 2,067,000,000 | |
Debt instrument, interest rate, stated percentage | 8.00% | 8.00% | 8.00% |
Principal amount due by June 2021 | $ 315,000,000 | ||
Principal amount due by December 2021 | 63,000,000 | ||
Principal amount due by June 2022 | 65,000,000 | ||
Principal amount due by December 2022 | 1,548,000,000 | ||
Senior Notes (Unsecured) | 5% Notes Due 2020 | |||
Debt | |||
Total Debt | $ 100,000,000 | $ 100,000,000 | |
Debt instrument, interest rate, stated percentage | 5.00% | ||
Senior Notes (Unsecured) | 5.5% Notes Due 2021 | |||
Debt | |||
Total Debt | $ 100,000,000 | 100,000,000 | |
Debt instrument, interest rate, stated percentage | 5.50% | ||
Senior Notes (Unsecured) | 6% Senior Notes due 2024 | |||
Debt | |||
Total Debt | $ 144,000,000 | $ 144,000,000 | |
Debt instrument, interest rate, stated percentage | 6.00% |
DEBT - Deferred Gain and Issuan
DEBT - Deferred Gain and Issuance Costs (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Net deferred gain and issuance costs | $ 185 | $ 216 |
Deferred gains | 267 | 313 |
Deferred issuance costs and original issue discounts | $ (82) | $ (97) |
DEBT - 2014 Revolving Credit Fa
DEBT - 2014 Revolving Credit Facility (Details) - USD ($) | May 01, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Debt | |||
Line of credit facility, maximum borrowing capacity | $ 1,000,000,000 | ||
2014 Revolving Credit Facility | |||
Debt | |||
Available borrowing capacity before a month-end minimum liquidity requirement | 309,000,000 | ||
Financial covenant minimum month end liquidity | 150,000,000 | ||
Borrowing base | $ 2,300,000,000 | ||
Letters of Credit | 2014 Revolving Credit Facility | |||
Debt | |||
Maximum sub-limit on borrowing capacity for issuance of letters of credit | 400,000,000 | $ 400,000,000 | |
Aggregate letters of credit issued | $ 166,000,000 | $ 162,000,000 |
DEBT - Note Repurchases (Detail
DEBT - Note Repurchases (Details) - Second Lien Notes (Second Priority Lien) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Repurchases of debt | |||
Debt instrument, repurchased face amount | $ 58 | $ 18 | |
Debt instrument, interest rate, stated percentage | 8.00% | 8.00% | 8.00% |
Repurchase value of the principal amounts | $ 45 | $ 14 | |
Pre-tax gain on extinguishment of debt, net of a reduction in deferred issuance costs | $ 20 | $ 6 |
DEBT - Fair Value (Details)
DEBT - Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Estimated fair value of long-term debt | $ 4,600 | $ 4,500 |
Debt carrying value | $ 5,160 | $ 5,251 |
JOINT VENTURES - Changes in Non
JOINT VENTURES - Changes in Noncontrolling Interests (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Beginning balance | $ (289) | $ (654) | $ (247) | $ (720) |
Net (loss) income attributable to noncontrolling interests | 0 | (10) | (5) | (13) |
Contributions from noncontrolling interest holders, net | 49 | 49 | 82 | |
Distributions to noncontrolling interest holders | (8) | (4) | (29) | (19) |
Ending balance | (279) | (645) | (279) | (645) |
Equity Attributable to Noncontrolling Interests | ||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Beginning balance | 137 | 109 | 114 | 94 |
Net (loss) income attributable to noncontrolling interests | (5) | (13) | ||
Contributions from noncontrolling interest holders, net | 49 | 49 | 82 | |
Distributions to noncontrolling interest holders | (8) | (4) | (29) | (19) |
Ending balance | 129 | 144 | 129 | 144 |
Equity Attributable to Noncontrolling Interests | Ares JV | ||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Beginning balance | 15 | 0 | ||
Net (loss) income attributable to noncontrolling interests | (6) | (6) | ||
Contributions from noncontrolling interest holders, net | 0 | 33 | ||
Distributions to noncontrolling interest holders | (4) | (2) | ||
Ending balance | 5 | 25 | 5 | 25 |
Equity Attributable to Noncontrolling Interests | BSP JV | ||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Beginning balance | 99 | 94 | ||
Net (loss) income attributable to noncontrolling interests | 1 | (7) | ||
Contributions from noncontrolling interest holders, net | 49 | 49 | ||
Distributions to noncontrolling interest holders | (25) | (17) | ||
Ending balance | $ 124 | $ 119 | $ 124 | $ 119 |
JOINT VENTURES - Mezzanine Equi
JOINT VENTURES - Mezzanine Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Mezzanine Equity - Redeemable Noncontrolling Interests | ||||
Balance at the beginning of the period | $ 756 | |||
Net (loss) income attributable to noncontrolling interests | $ 29 | $ 29 | 57 | $ 43 |
Balance at the end of the period | 777 | 777 | ||
Mezzanine Equity - Redeemable Noncontrolling Interest - Ares | ||||
Mezzanine Equity - Redeemable Noncontrolling Interests | ||||
Balance at the beginning of the period | 756 | 0 | ||
Net (loss) income attributable to noncontrolling interests | 57 | 43 | ||
Contributions from noncontrolling interest holders, net | 0 | 714 | ||
Distributions to noncontrolling interest holders | (36) | (22) | ||
Balance at the end of the period | $ 777 | $ 735 | $ 777 | $ 735 |
DERIVATIVES - Commodity Price R
DERIVATIVES - Commodity Price Risk (Details) bbl / d in Thousands | Jun. 30, 2019bbl / d$ / bbl |
Puts | Purchased | Q3 2019 | |
Derivatives | |
Daily Volume (in Bbl) | bbl / d | 40 |
Weighted-average price (in dollars per barrel) | $ / bbl | 73.13 |
Puts | Purchased | Q4 2019 | |
Derivatives | |
Daily Volume (in Bbl) | bbl / d | 35 |
Weighted-average price (in dollars per barrel) | $ / bbl | 75.71 |
Puts | Purchased | Q1 2020 | |
Derivatives | |
Daily Volume (in Bbl) | bbl / d | 25 |
Weighted-average price (in dollars per barrel) | $ / bbl | 72 |
Puts | Purchased | Q2 2020 | |
Derivatives | |
Daily Volume (in Bbl) | bbl / d | 10 |
Weighted-average price (in dollars per barrel) | $ / bbl | 70 |
Puts | Sold | Q3 2019 | |
Derivatives | |
Daily Volume (in Bbl) | bbl / d | 40 |
Weighted-average price (in dollars per barrel) | $ / bbl | 57.50 |
Puts | Sold | Q4 2019 | |
Derivatives | |
Daily Volume (in Bbl) | bbl / d | 35 |
Weighted-average price (in dollars per barrel) | $ / bbl | 60 |
Puts | Sold | Q1 2020 | |
Derivatives | |
Daily Volume (in Bbl) | bbl / d | 25 |
Weighted-average price (in dollars per barrel) | $ / bbl | 57 |
Puts | Sold | Q2 2020 | |
Derivatives | |
Daily Volume (in Bbl) | bbl / d | 10 |
Weighted-average price (in dollars per barrel) | $ / bbl | 55 |
Swap | Q2 2020 | |
Derivatives | |
Daily Volume (in Bbl) | bbl / d | 5 |
Weighted-average price (in dollars per barrel) | $ / bbl | 70.05 |
DERIVATIVES - Interest-Rate Ris
DERIVATIVES - Interest-Rate Risk (Details) $ in Billions | May 31, 2018USD ($) |
Derivatives | |
Derivative, amount of hedged item | $ 1.3 |
Interest-rate contract | One month LIBOR | |
Derivatives | |
Interest rate to be in place to receive payment | 2.75% |
DERIVATIVES - Fair Value (Detai
DERIVATIVES - Fair Value (Details) - Commodity Contracts - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value of Derivatives | ||
Gross Amounts Offset in the Balance Sheet | $ 0 | $ 0 |
Total derivatives | 90 | 178 |
Other current assets | ||
Fair Value of Derivatives | ||
Gross Amounts Recognized at Fair Value | 117 | 252 |
Gross Amounts Offset in the Balance Sheet | (25) | (84) |
Net Fair Value Presented in the Balance Sheet | 92 | 168 |
Other assets | ||
Fair Value of Derivatives | ||
Gross Amounts Recognized at Fair Value | 2 | 23 |
Gross Amounts Offset in the Balance Sheet | 0 | (9) |
Net Fair Value Presented in the Balance Sheet | 2 | 14 |
Accrued liabilities | ||
Fair Value of Derivatives | ||
Gross Amounts Recognized at Fair Value | (28) | (87) |
Gross Amounts Offset in the Balance Sheet | 25 | 84 |
Net Fair Value Presented in the Balance Sheet | (3) | (3) |
Other long-term liabilities | ||
Fair Value of Derivatives | ||
Gross Amounts Recognized at Fair Value | (1) | (10) |
Gross Amounts Offset in the Balance Sheet | 0 | 9 |
Net Fair Value Presented in the Balance Sheet | $ (1) | $ (1) |
EARNINGS PER SHARE - Calculatio
EARNINGS PER SHARE - Calculation of EPS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Basic EPS calculation | ||||
Net income (loss) | $ 41 | $ (63) | $ (3) | $ (54) |
Net income attributable to noncontrolling interests | (29) | (19) | (52) | (30) |
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK | 12 | (82) | (55) | (84) |
Less: net income allocated to participating securities | 0 | 0 | 0 | 0 |
Net income (loss) available to common stockholders | $ 12 | $ (82) | $ (55) | $ (84) |
Weighted-average common shares outstanding - basic (in shares) | 48.9 | 48.2 | 48.8 | 46.3 |
Basic (in dollars per share) | $ 0.25 | $ (1.70) | $ (1.13) | $ (1.81) |
Diluted EPS calculation | ||||
Net income (loss) | $ 41 | $ (63) | $ (3) | $ (54) |
Net income attributable to noncontrolling interests | (29) | (19) | (52) | (30) |
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK | 12 | (82) | (55) | (84) |
Less: net income allocated to participating securities | 0 | 0 | 0 | 0 |
Net income (loss) available to common stockholders | $ 12 | $ (82) | $ (55) | $ (84) |
Weighted-average common shares outstanding - basic (in shares) | 48.9 | 48.2 | 48.8 | 46.3 |
Dilutive effect of potentially dilutive securities (in shares) | 0.3 | 0 | 0 | 0 |
Weighted-average common shares outstanding - diluted (in shares) | 49.2 | 48.2 | 48.8 | 46.3 |
Diluted (in dollars per share) | $ 0.24 | $ (1.70) | $ (1.13) | $ (1.81) |
Weighted-average anti-dilutive shares (in shares) | 1.9 | 3 | 2.6 | 2.9 |
PENSION AND POSTRETIREMENT BE_3
PENSION AND POSTRETIREMENT BENEFIT PLANS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net periodic benefit costs: | ||||
Employer contributions to pension plan | $ 1 | $ 1 | $ 1 | $ 2 |
Expected contribution to defined benefit pension plans during the reminder of 2019 | 2 | 2 | ||
Pension Benefit | ||||
Net periodic benefit costs: | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 0 | 1 | 1 | 1 |
Expected return on plan assets | 0 | (1) | (1) | (1) |
Recognized actuarial loss | 0 | 0 | 1 | 1 |
Settlement loss | 1 | 2 | 1 | 4 |
Total | 1 | 2 | 2 | 5 |
Postretirement Benefit | ||||
Net periodic benefit costs: | ||||
Service cost | 1 | 1 | 2 | 2 |
Interest cost | 2 | 1 | 3 | 2 |
Expected return on plan assets | (1) | 0 | (1) | 0 |
Recognized actuarial loss | 1 | 0 | 1 | 0 |
Settlement loss | 0 | 0 | 0 | 0 |
Total | $ 3 | $ 2 | $ 5 | $ 4 |
REVENUE RECOGNITION - Commodity
REVENUE RECOGNITION - Commodity Sales Contracts and Marketing (Details) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Typical term of payment following invoicing | 30 days |
REVENUE RECOGNITION - Disaggreg
REVENUE RECOGNITION - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of revenue | ||||
Oil and gas sales | $ 578 | $ 657 | $ 1,179 | $ 1,232 |
Other revenue | 54 | 59 | 232 | 131 |
Net derivative gain (loss) from commodity contracts | 21 | (167) | (68) | (205) |
Total revenues and other | 653 | 549 | 1,343 | 1,158 |
Oil | ||||
Disaggregation of revenue | ||||
Oil and gas sales | 496 | 553 | 976 | 1,019 |
NGLs | ||||
Disaggregation of revenue | ||||
Oil and gas sales | 39 | 61 | 98 | 124 |
Natural gas | ||||
Disaggregation of revenue | ||||
Oil and gas sales | 43 | 43 | 105 | 89 |
Electricity | ||||
Disaggregation of revenue | ||||
Other revenue | 16 | 21 | 50 | 45 |
Marketing, trading and other | ||||
Disaggregation of revenue | ||||
Other revenue | 38 | 38 | 182 | 85 |
Interest income | ||||
Disaggregation of revenue | ||||
Interest income | $ 0 | $ 0 | $ 0 | $ 1 |
LEASES - Operating lease costs
LEASES - Operating lease costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Operating lease costs | ||
Operating lease cost | $ 14 | $ 26 |
Short-term lease cost | 18 | 38 |
Variable lease cost | 3 | 8 |
Total operating lease costs | $ 35 | $ 72 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flows (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | |
Leases [Abstract] | ||
Operating cash flows | $ 2 | $ 5 |
Investing cash flows | $ 12 | 21 |
ROU asset obtained in exchange for lease obligations (in millions) | $ 52 | |
Weighted-average remaining lease term (in years) | 2 years 8 months 26 days | 2 years 8 months 26 days |
Weighted-average discount rate | 11.50% | 11.50% |
ROU asset obtained in exchange for lease obligations (in millions) | $ 2 | |
Weighted-average remaining lease term (in years) | 2 years 9 months 29 days | 2 years 9 months 29 days |
Weighted-average discount rate | 8.50% | 8.50% |
LEASES - Supplement balance she
LEASES - Supplement balance sheet information (Details) $ in Millions | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
Operating lease, net | $ 50 |
Finance lease, net | 2 |
Total lease assets | 52 |
Operating lease | 29 |
Finance lease | 1 |
Operating lease | 23 |
Finance lease | 1 |
Total lease liabilities | $ 54 |
LEASES - Finance lease liabilit
LEASES - Finance lease liabilities (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Leases [Abstract] | |
Impairment on right-of-use asset | $ 3 |
Operating lease liabilities | |
2019 | 19 |
2020 | 23 |
2021 | 7 |
2022 | 4 |
2023 | 2 |
Thereafter | 6 |
Less: Interest | (9) |
Present value of lease liabilities | 52 |
Finance lease liabilities | |
2019 | 0 |
2020 | 1 |
2021 | 1 |
2022 | 0 |
2023 | 0 |
Thereafter | 0 |
Less: Interest | 0 |
Present value of lease liabilities | $ 2 |
LEASES - Noncancelable operatin
LEASES - Noncancelable operating leases (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2018 | |
Noncancelable operating leases | |||
2019 | $ 12 | ||
2020 | 8 | ||
2021 | 7 | ||
2022 | 7 | ||
2023 | 6 | ||
Thereafter | 28 | ||
Total | $ 68 | ||
Rental expense for operating leases | $ 2 | $ 5 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 0.00% | 0.00% |
ASSET DIVESTITURE (Details)
ASSET DIVESTITURE (Details) | May 01, 2019USD ($)well | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) |
ASSET DIVESTITURE | |||||
Working interest in Lost Hills field sold | 50.00% | ||||
Total consideration of the sale of Lost Hills field 50% interest | $ 200,000,000 | ||||
Proceeds from divestiture of businesses | $ 168,000,000 | ||||
Number of well development plan included in the sale of Lost Host field | well | 200 | ||||
Minimum value of well development plan of Lost Hills field | $ 35,000,000 | ||||
Proceeds from sale of assets | 165,000,000 | $ 165,000,000 | $ 13,000,000 | ||
Gain on asset divestitures | $ 0 | $ 0 | $ 1,000,000 | $ 0 | $ 1,000,000 |
CONDENSED CONSOLIDATING FINAN_3
CONDENSED CONSOLIDATING FINANCIAL INFORMATION Condensed Balance Sheet - (Details) - USD ($) $ in Millions | 6 Months Ended | |||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Assets [Abstract] | ||||||
Total current assets | $ 522 | $ 640 | ||||
Total property, plant and equipment, net | 6,409 | 6,455 | ||||
Investments in consolidated subsidiaries | 0 | 0 | ||||
OTHER ASSETS | 101 | 63 | ||||
TOTAL ASSETS | 7,032 | 7,158 | ||||
Liabilities and Equity [Abstract] | ||||||
Total current liabilities | 610 | 607 | ||||
LONG-TERM DEBT | 5,060 | 5,251 | ||||
DEFERRED GAIN AND ISSUANCE COSTS, NET | 185 | 216 | ||||
OTHER LONG-TERM LIABILITIES | 679 | 575 | ||||
Amounts due to (from) affiliates | 0 | 0 | ||||
Mezzanine equity | 777 | 756 | ||||
Total equity | (279) | $ (289) | (247) | $ (645) | $ (654) | $ (720) |
TOTAL LIABILITIES AND EQUITY | 7,032 | 7,158 | ||||
Eliminations | ||||||
Assets [Abstract] | ||||||
Total current assets | (13) | (13) | ||||
Total property, plant and equipment, net | 0 | 0 | ||||
Investments in consolidated subsidiaries | (5,814) | (5,536) | ||||
OTHER ASSETS | 0 | 0 | ||||
TOTAL ASSETS | (5,827) | (5,549) | ||||
Liabilities and Equity [Abstract] | ||||||
Total current liabilities | (13) | (13) | ||||
LONG-TERM DEBT | 0 | 0 | ||||
DEFERRED GAIN AND ISSUANCE COSTS, NET | 0 | 0 | ||||
OTHER LONG-TERM LIABILITIES | 0 | 0 | ||||
Amounts due to (from) affiliates | 0 | 0 | ||||
Mezzanine equity | 0 | 0 | ||||
Total equity | (5,814) | (5,536) | ||||
TOTAL LIABILITIES AND EQUITY | (5,827) | (5,549) | ||||
Parent | Reportable Legal Entities | ||||||
Assets [Abstract] | ||||||
Total current assets | 10 | 7 | ||||
Total property, plant and equipment, net | 23 | 23 | ||||
Investments in consolidated subsidiaries | 5,684 | 5,440 | ||||
OTHER ASSETS | 2 | 4 | ||||
TOTAL ASSETS | 5,719 | 5,474 | ||||
Liabilities and Equity [Abstract] | ||||||
Total current liabilities | 210 | 143 | ||||
LONG-TERM DEBT | 5,060 | 5,251 | ||||
DEFERRED GAIN AND ISSUANCE COSTS, NET | 185 | 216 | ||||
OTHER LONG-TERM LIABILITIES | 143 | 140 | ||||
Amounts due to (from) affiliates | 529 | 85 | ||||
Mezzanine equity | 0 | 0 | ||||
Total equity | (408) | (361) | ||||
TOTAL LIABILITIES AND EQUITY | 5,719 | 5,474 | ||||
Combined Guarantor Subsidiaries | Reportable Legal Entities | ||||||
Assets [Abstract] | ||||||
Total current assets | 452 | 590 | ||||
Total property, plant and equipment, net | 5,874 | 5,913 | ||||
Investments in consolidated subsidiaries | 130 | 96 | ||||
OTHER ASSETS | 71 | 32 | ||||
TOTAL ASSETS | 6,527 | 6,631 | ||||
Liabilities and Equity [Abstract] | ||||||
Total current liabilities | 404 | 465 | ||||
LONG-TERM DEBT | 0 | 0 | ||||
DEFERRED GAIN AND ISSUANCE COSTS, NET | 0 | 0 | ||||
OTHER LONG-TERM LIABILITIES | 532 | 431 | ||||
Amounts due to (from) affiliates | (529) | (86) | ||||
Mezzanine equity | 0 | 0 | ||||
Total equity | 6,120 | 5,821 | ||||
TOTAL LIABILITIES AND EQUITY | 6,527 | 6,631 | ||||
Combined Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||||
Assets [Abstract] | ||||||
Total current assets | 73 | 56 | ||||
Total property, plant and equipment, net | 512 | 519 | ||||
Investments in consolidated subsidiaries | 0 | 0 | ||||
OTHER ASSETS | 28 | 27 | ||||
TOTAL ASSETS | 613 | 602 | ||||
Liabilities and Equity [Abstract] | ||||||
Total current liabilities | 9 | 12 | ||||
LONG-TERM DEBT | 0 | 0 | ||||
DEFERRED GAIN AND ISSUANCE COSTS, NET | 0 | 0 | ||||
OTHER LONG-TERM LIABILITIES | 4 | 4 | ||||
Amounts due to (from) affiliates | 0 | 1 | ||||
Mezzanine equity | 777 | 756 | ||||
Total equity | (177) | (171) | ||||
TOTAL LIABILITIES AND EQUITY | $ 613 | $ 602 | ||||
Maximum | ||||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||
Percentage of holding assets by subsidiaries in consolidated assets | 1.00% |
CONDENSED CONSOLIDATING FINAN_4
CONDENSED CONSOLIDATING FINANCIAL INFORMATION Condensed Income Statement - (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Condensed Income Statements, Captions [Line Items] | ||||
Total revenues and other | $ 653 | $ 549 | $ 1,343 | $ 1,158 |
Total costs and other | 531 | 538 | 1,164 | 1,039 |
Non-operating (loss) income | (81) | (74) | (182) | (173) |
INCOME (LOSS) BEFORE INCOME TAXES | 41 | (63) | (3) | (54) |
Net income attributable to noncontrolling interests | (29) | (19) | (52) | (30) |
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK | 12 | (82) | (55) | (84) |
Eliminations | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Total revenues and other | (70) | (71) | (147) | (113) |
Total costs and other | (70) | (71) | (147) | (113) |
Non-operating (loss) income | 0 | 0 | 0 | 0 |
INCOME (LOSS) BEFORE INCOME TAXES | 0 | 0 | 0 | 0 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK | 0 | 0 | 0 | 0 |
Parent | Reportable Legal Entities | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Total revenues and other | 0 | 0 | 0 | 1 |
Total costs and other | 52 | 64 | 106 | 107 |
Non-operating (loss) income | (83) | (74) | (187) | (173) |
INCOME (LOSS) BEFORE INCOME TAXES | (135) | (138) | (293) | (279) |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK | (135) | (138) | (293) | (279) |
Combined Guarantor Subsidiaries | Reportable Legal Entities | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Total revenues and other | 610 | 526 | 1,255 | 1,111 |
Total costs and other | 490 | 499 | 1,074 | 960 |
Non-operating (loss) income | 2 | 0 | 5 | 0 |
INCOME (LOSS) BEFORE INCOME TAXES | 122 | 27 | 186 | 151 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK | 122 | 27 | 186 | 151 |
Combined Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Total revenues and other | 113 | 94 | 235 | 159 |
Total costs and other | 59 | 46 | 131 | 85 |
Non-operating (loss) income | 0 | 0 | 0 | 0 |
INCOME (LOSS) BEFORE INCOME TAXES | 54 | 48 | 104 | 74 |
Net income attributable to noncontrolling interests | (29) | (19) | (52) | (30) |
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK | $ 25 | $ 29 | $ 52 | $ 44 |
CONDENSED CONSOLIDATING FINAN_5
CONDENSED CONSOLIDATING FINANCIAL INFORMATION Condensed Cash Flow Statement - (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used) provided by operating activities | $ 272 | $ 234 |
Net cash used in investing activities | (170) | (807) |
Net cash provided (used) by financing activities | (92) | 595 |
Increase in cash | 10 | 22 |
Cash—beginning of period | 17 | 20 |
Cash—end of period | 27 | 42 |
Eliminations | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used) provided by operating activities | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Net cash provided (used) by financing activities | 0 | 0 |
Increase in cash | 0 | 0 |
Cash—beginning of period | 0 | 0 |
Cash—end of period | 0 | 0 |
Parent | Reportable Legal Entities | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used) provided by operating activities | (348) | (334) |
Net cash used in investing activities | (5) | (1) |
Net cash provided (used) by financing activities | 353 | 334 |
Increase in cash | 0 | (1) |
Cash—beginning of period | 0 | 7 |
Cash—end of period | 0 | 6 |
Combined Guarantor Subsidiaries | Reportable Legal Entities | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used) provided by operating activities | 303 | 480 |
Net cash used in investing activities | (154) | (776) |
Net cash provided (used) by financing activities | (149) | 293 |
Increase in cash | 0 | (3) |
Cash—beginning of period | 7 | 8 |
Cash—end of period | 7 | 5 |
Combined Non-Guarantor Subsidiaries | Reportable Legal Entities | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used) provided by operating activities | 317 | 88 |
Net cash used in investing activities | (11) | (30) |
Net cash provided (used) by financing activities | (296) | (32) |
Increase in cash | 10 | 26 |
Cash—beginning of period | 10 | 5 |
Cash—end of period | $ 20 | $ 31 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) - Subsequent Event $ / shares in Units, $ in Millions | 1 Months Ended |
Jul. 31, 2019USD ($)well$ / sharesshares | |
Subsequent Event [Line Items] | |
Joint venture working interest before counterparty return | 10.00% |
Joint venture working interest after counterparty return | 82.50% |
Colony Capital, Inc. | |
Subsequent Event [Line Items] | |
Class of Warrant or Right, Exercise Period of Warrant or Right | 5 years |
Initial investment commitment in joint venture | $ 320 |
Contributions from noncontrolling interest holders, net | $ 500 |
Joint venture, investment period | 3 years |
Quantity of wells to be drilled (in wells) | well | 275 |
Joint venture investment funding percentage | 100.00% |
Joint venture working interest acquired | 90.00% |
Warrant outstanding (in shares) | shares | 1,250,000 |
Investment warrants, exercise price (in dollars per share) | $ / shares | $ 40 |