SUPPLEMENTAL INFORMATION ON OIL AND NATURAL GAS OPERATIONS (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2019

Oil and Gas Exploration and Production Industries Disclosures [Abstract]

Aggregate capitalized costs related to oil and natural gas production activities

Aggregate capitalized costs related to oil and natural gas production activities with applicable accumulated depreciation, depletion, amortization and impairment are as follows:

	December 31,
	2019			2018
	(In millions)
Oil and natural gas properties:
Proved properties	$	16,575		$	12,629
Unproved properties	9,207			9,670
Total oil and natural gas properties	25,782			22,299
Accumulated depreciation, depletion, amortization	(2,995		)	(1,599		)
Accumulated impairment	(1,934		)	(1,144		)
Net oil and natural gas properties capitalized	$	20,853		$	19,556

Costs incurred in oil and natural gas property acquisition, exploration, and development activities

Costs incurred in oil and natural gas property acquisition, exploration and development activities are as follows:

	Year Ended December 31,
	2019		2018		2017
	(In millions)
Acquisition costs:
Proved properties	$	194	$	5,665	$	455
Unproved properties	418		5,818		2,692
Development costs	956		493		145
Exploration costs	1,915		1,090		780
Total	$	3,483	$	13,066	$	4,072

Results of operations from oil and natural gas producing activities

	Year Ended December 31,
	2019			2018			2017
	(In millions)
Oil, natural gas and natural gas liquid sales	$	3,887		$	2,130		$	1,186
Lease operating expenses	(490		)	(205		)	(127		)
Production and ad valorem taxes	(248		)	(133		)	(74		)
Gathering and transportation	(88		)	(26		)	(13		)
Depreciation, depletion, and amortization	(1,447		)	(595		)	(321		)
Impairment	(790		)	—			—
Asset retirement obligation accretion expense	(7		)	(2		)	(1		)
Income tax benefit (expense)	(89		)	(241		)	20
Results of operations	$	728		$	928		$	670

Schedule of changes in estimated proved reserves

The changes in estimated proved reserves are as follows:

	Oil (MBbls)		Natural Gas Liquids (MBbls)		Natural Gas (MMcf)
Proved Developed and Undeveloped Reserves:
As of January 1, 2017	139,174		37,134		174,896
Extensions and discoveries	99,980		20,825		109,032
Revisions of previous estimates	(7,715	)	(1,466	)	(10,065	)
Purchase of reserves in place	24,322		2,633		34,640
Divestitures	(1,163	)	(461	)	(2,474	)
Production	(21,417	)	(4,056	)	(20,660	)
As of December 31, 2017	233,181		54,609		285,369
Extensions and discoveries	143,256		33,152		154,088
Revisions of previous estimates	3,689		11,138		3,642
Purchase of reserves in place	281,333		98,865		640,761
Divestitures	(156	)	(8	)	(543	)
Production	(34,367	)	(7,465	)	(34,668	)
As of December 31, 2018	626,936		190,291		1,048,649
Extensions and discoveries	256,569		66,572		318,874
Revisions of previous estimates	(84,789	)	(8,166	)	(149,657	)
Purchase of reserves in place	13,974		3,813		19,830
Divestitures	(33,269	)	(3,809	)	(21,272	)
Production	(68,518	)	(18,498	)	(97,613	)
As of December 31, 2019	710,903		230,203		1,118,811
Proved Developed Reserves:
January 1, 2017	79,457		22,080		105,399
December 31, 2017	141,246		35,412		190,740
December 31, 2018	403,051		125,509		705,084
December 31, 2019	457,083		165,173		824,760
Proved Undeveloped Reserves:
January 1, 2017	59,717		15,054		69,497
December 31, 2017	91,935		19,198		94,629
December 31, 2018	223,885		64,782		343,565
December 31, 2019	253,820		65,030		294,051

The following table includes the changes in PUD reserves for 2019:

	(MBOE)
Beginning proved undeveloped reserves at December 31, 2018	345,928
Undeveloped reserves transferred to developed	(120,920	)
Revisions	(77,519	)
Net purchases	4,542
Divestitures	(5,672	)
Extensions and discoveries	221,500
Ending proved undeveloped reserves at December 31, 2019	367,859

Standardized measure of discounted future net cash flows attributable to proved crude oil and natural gas reserves

The following table sets forth the standardized measure of discounted future net cash flows attributable to the Company’s proved oil and natural gas reserves as of December 31, 2019, 2018 and 2017.

	December 31,
	2019			2018			2017
	(In millions)
Future cash inflows	$	40,681		$	43,578		$	12,922
Future development costs	(3,809		)	(3,560		)	(1,124		)
Future production costs	(9,319		)	(7,727		)	(2,995		)
Future production taxes	(2,905		)	(2,935		)	(929		)
Future income tax expenses	(2,635		)	(3,913		)	(84		)
Future net cash flows	22,013			25,443			7,790
10% discount to reflect timing of cash flows	(11,829		)	(13,767		)	(4,033		)
Standardized measure of discounted future net cash flows	$	10,184		$	11,676		$	3,757

Average first-day-of-the-month price for oil, natural gas and natural gas liquids

In the table below the average first-day-of–the-month price for oil, natural gas and natural gas liquids is presented, all utilized in the computation of future cash inflows.

	December 31,
	2019		2018		2017
	Unweighted Arithmetic Average
	First-Day-of-the-Month Prices
Oil (per Bbl)	$	51.88	$	59.63	$	48.03
Natural gas (per Mcf)	$	0.18	$	1.47	$	2.06
Natural gas liquids (per Bbl)	$	15.65	$	24.43	$	20.79

Schedule of principal changes in the standardized measure of discounted future net cash flows attributable to proved reserves

Principal changes in the standardized measure of discounted future net cash flows attributable to the Company’s proved reserves are as follows:

	Year Ended December 31,
	2019			2018			2017
	(In millions)
Standardized measure of discounted future net cash flows at the beginning of the period	$	11,676		$	3,757		$	1,711
Sales of oil and natural gas, net of production costs	(3,334		)	(1,786		)	(986		)
Acquisition of reserves	309			5,520			439
Divestiture of reserves	(500		)	(2		)	(11		)
Extensions and discoveries, net of future development costs	4,004			3,287			1,792
Previously estimated development costs incurred during the period	120			535			190
Net changes in prices and production costs	831			1,805			578
Changes in estimated future development costs	(3,190		)	(81		)	(53		)
Revisions of previous quantity estimates	(1,242		)	271			(99		)
Accretion of discount	1,344			380			174
Net change in income taxes	693			(1,728		)	(9		)
Net changes in timing of production and other	(527		)	(282		)	31
Standardized measure of discounted future net cash flows at the end of the period	$	10,184		$	11,676		$	3,757