Leases (Tables)

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Schedule of assets and liabilities

The Company recognized a finance lease upon commencement of the Hidden Ridge Building lease in October 2019, the balances of which are as follows:

	Consolidated Balance Sheet Location	As of December 31, 2019
		(in millions)
Finance lease right-of-use asset	Other property and equipment, net	$	556
Finance lease liability	Other liabilities - current	$	16
Finance lease liability	Other liabilities - noncurrent	$	556

Lease costs

The components of lease costs, including amounts recoverable from joint operating partners, are as follows:

	Year Ended December 31, 2019
	(in millions)
Finance lease cost:
Amortization of right-of-use asset (a)	$	7
Interest on lease liability	4
Operating lease cost (b)	200
Short-term lease cost (c)	33
Variable lease cost (d)	73
Total lease cost	$	317

_____________________

(a)Represents straight-line rent cost associated with the Company's finance lease right-of-use asset.

(b)Represents straight-line rent cost associated with the Company's operating lease right-of-use assets.

(c)Represents costs associated with short-term leases (those with a contractual term of 12 months or less) that are not included in the consolidated balance sheets.

(d)Variable lease costs are primarily comprised of the non-lease service component of drilling rig commitments above the minimum required payments. Both the minimum required payments and the non-lease service component of the drilling rig commitments are capitalized as additions to oil and gas properties.

Schedule of changes in operating lease liabilities

The changes in lease liabilities are as follows:

	Year Ended December 31, 2019
	Operating		Finance
	(in millions)
Beginning lease liabilities (a)	$	325	$	—
Liabilities assumed in exchange for new right-of-use assets (b)	142		573
Contract modifications (c)	4		—
Dispositions	(1)		—
Liabilities settled	(177)		(5)
Accretion of discount (d)	13		4
Ending lease liabilities (e)	$	306	$	572

______________________

(a)Represents January 1, 2019 balance upon adoption of ASC 842.

(b)Represents noncash leasing activity. The weighted-average discount rate used in 2019 to determine the present value of future operating and finance lease payments is 3.3 percent and 3.0 percent, respectively.

(c)Represents changes in lease liabilities due to modifications of original contract terms.

(d)Represents imputed interest on discounted future cash payments.

(e)As of December 31, 2019, the weighted-average remaining lease term of the Company's operating and finance leases is three and 20 years, respectively.

Payment schedule for operating lease obligations

Maturities of lease obligations are as follows:

	As of December 31, 2019
	Operating		Finance
	(in millions)
2020	$	149	$	33
2021	92		33
2022	47		34
2023	13		35
2024	8		35
Thereafter	18		603
Total lease payments	327		773
Less present value discount	(21)		(201)
Present value of lease liabilities	$	306	$	572