Dispositions

United States Segment

In the third quarter of 2018, we closed on the sale of non-core, non-operated conventional properties, primarily in the Gulf of Mexico, for combined net proceeds of $16 million, before closing adjustments. A pre-tax gain of $32 million was recognized in the third quarter of 2018.

In the third quarter of 2017, we closed on the sale of certain conventional assets in Oklahoma for proceeds of $25 million, subject to closing adjustments, and recognized a pre-tax gain of $21 million.

In the third quarter of 2016, we entered into an agreement to sell certain non-operated CO2 and waterflood assets in West Texas and New Mexico. This sale closed during the fourth quarter for proceeds of $235 million, and a pre-tax gain of $63 million. During the third quarter 2016, we sold certain non-operated assets primarily in West Texas and New Mexico to multiple purchasers for combined proceeds of approximately $67 million, and recognized a total pre-tax gain of $55 million.

During the second quarter of 2016, we received proceeds of approximately $690 million related to sale of our Wyoming upstream and midstream assets and recorded a pre-tax gain of $266 million; with the remaining Wyoming asset sales closing in fourth quarter of 2016 for proceeds of $155 million, excluding closing adjustments and a pre-tax gain of $38 million.

In March and April 2016, we entered into separate agreements to sell our 10% working interest in the outside-operated Shenandoah discovery in the Gulf of Mexico, operated natural gas assets in the Piceance basin in Colorado and certain undeveloped acreage in West Texas for a combined total of approximately $80 million in proceeds. We closed on certain of the asset sales and recognized a net pre-tax loss on sale of $48 million in 2016, the remaining asset closed in 2017 with a net pre-tax gain on sale of $32 million.

International Segment

In the fourth quarter of 2018, we entered into an agreement to sell our subsidiary, Marathon Oil KDV B.V., which holds our 15% non-operated interest in the Atrush block in Kurdistan for proceeds of $63 million, before closing adjustments. This property is classified as held for sale in the consolidated balance sheet at December 31, 2018, with total assets of $58 million, total liabilities of $17 million. We expect the transaction to close in the first half of 2019.

In the first quarter of 2018, we closed on the sale of our subsidiary, Marathon Oil Libya Limited, which held our 16.33% non-operated interest in the Waha concessions in Libya, to a subsidiary of Total S.A. (Elf Aquitaine SAS) for proceeds of approximately $450 million, excluding closing adjustments, and recognized a pre-tax gain of $255 million.

In the third quarter of 2017, we entered into separate agreements to sell certain non-core properties for combined proceeds of $53 million, before closing adjustments. We closed on one of the asset sales in the fourth quarter of 2017 and recognized no pre-tax gain or loss on sale. We closed on the remaining asset sale during the third quarter of 2018 for a pre-tax loss of $18 million.

Canadian Business - Discontinued Operations

On May 31, 2017 we closed on the sale of our Canadian business, which included our 20% non-operated interest in the AOSP to Shell and Canadian Natural Resources Limited for $2.5 billion, excluding closing adjustments. Under the terms of the agreement, $1.8 billion was paid to us upon closing. At closing we received two notes receivable for a combined $750 million for the remaining proceeds, which was received in the first quarter of 2018. In the first quarter of 2017, we recorded a non-cash impairment charge of $6.6 billion (after-tax of $4.96 billion) primarily related to the property, plant and equipment of our Canadian business. This impairment was recorded for excess net book value over anticipated sales proceeds less costs to sell. Fair values of assets held for sale were determined based upon the anticipated sales proceeds less costs to sell, which resulted in a level 2 classification. As the effective date of the transaction was January 1, 2017, we recorded a loss on sale of $43 million during the second quarter of 2017 due to results of operations from our Canadian business that were transferred to the buyer upon closing.

Our Canadian business is reflected as discontinued operations in the consolidated statements of income and the consolidated statements of cash flows for all periods presented. The following table contains select amounts reported in our historical consolidated statements of income and consolidated statements of cash flows as discontinued operations:



	Year Ended December 31,
(In millions)	2018		2017			2016
Total revenue and other income	$	—	$	431		$	863
Net gain (loss) on disposal of assets	—		(43		)	—
Total revenues and other income	—		388			863
Costs and expenses:
Production	—		254			601
Exploration	—		—			7
Depreciation, depletion and amortization	—		40			239
Impairments	—		6,636			—
Other	—		25			87
Total costs and expenses	—		6,955			934
Pretax income (loss) from discontinued operations	—		(6,567		)	(71		)
Provision (benefit) for income taxes	—		(1,674		)	(18		)
Income (loss) from discontinued operations	$	—	$	(4,893	)	$	(53	)



	Year Ended December 31,
(In millions)	2018		2017			2016
Cash flow from discontinued operations:
Operating activities	$	—	$	141		$	177
Investing activities	—		(13		)	(41		)
Changes in cash included in current assets held for sale	—		2			100
Net increase in cash and cash equivalents of discontinued operations	$	—	$	130		$	236