COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Contractual Obligations

At December 31, 2017, contractual obligations for long-term operating leases, capital leases, and purchase obligations are as follows:

Net Minimum Commitments	Total		2018		2019-2020		2021-2022		2023 & Beyond
	(In millions)
Drilling rigs(1)	$	85	$	20	$	65	$	—	$	—
Purchase obligations(2)	1,275		183		296		214		582
Operating lease obligations(3)	233		54		81		57		41
Capital lease obligations(4)	$	41	$	1	$	3	$	3	$	34
Total Net Minimum Commitments(5)	$	1,634	$	258	$	445	$	274	$	657

(1) Payments associated with the drilling of exploratory wells and development wells net of amounts billed to partners will be capitalized as a component of oil and gas properties, and either depreciated, impaired, or written off as exploration expense.

(2) Amounts represent any agreements to purchase goods or services that are enforceable and legally binding and that specify all significant terms. These include minimum commitments associated with take-or-pay contracts, NGL processing agreements, drilling work program commitments, and agreements to secure capacity rights on third-party pipelines. Includes amounts related to firm transportation capacity on the Gulf Coast Express Pipeline Project (GCX Project), expected to be in service in October 2019. Amounts exclude certain product purchase obligations related to marketing and trading activities for which there are no minimum purchase requirements or the amounts are not fixed or determinable.

(3) Amounts include long-term lease payments for office space, aircraft, supply and standby vessels, land leases, and equipment related to exploration, development, and production activities. The Company expects to receive $1 million in sublease income associated with these leases.

(4) This represents our capital lease obligation related to our Midland, Texas office building. The imputed interest rate necessary to reduce the net minimum lease payments to present value of the lease term is 4.4 percent or $18 million as of December 31, 2017.

(5) Excludes purchase commitments for jointly owned fields and facilities for which the Company is not the operator.