Basis of Presentation (Tables)

6 Months Ended

Jun. 30, 2012

Statements of Operations Information Other statements of operations information is as follows:



	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
(millions)
Other Revenues ⁽¹⁾	$	—		$	11		$	—		$	33
Production Expense
Lease Operating Expense	$	100		$	83		$	205		$	163
Production and Ad Valorem Taxes	44			39			81			70
Transportation and Gathering Expense	25			15			48			31
Total	$	169		$	137		$	334		$	264
Other Operating (Income) Expense, Net
Deepwater Gulf of Mexico Moratorium Expense ⁽²⁾	$	—		$	1		$	—		$	19
Electricity Generation Expense ⁽¹⁾	—			9			—			26
Gain on Divestitures	(9		)	(25		)	(9		)	(26		)
Other, Net	7			4			19			(1		)
Total	$	(2	)	$	(11	)	$	10		$	18
Other Non-Operating (Income) Expense, Net
Deferred Compensation (Income) Expense ⁽³⁾	$	(11	)	$	(7	)	$	(8	)	$	3
Interest Income	—			(2		)	—			(5		)
Other (Income) Expense, Net	8			—			5			2
Total	$	(3	)	$	(9	)	$	(3	)	$	—


⁽¹⁾	Other revenues consist of electricity sales from the Machala power plant, located in Machala, Ecuador, through May 2011. Electricity generation expense includes all operating and non-operating expenses associated with the plant, including depreciation and changes in the allowance for doubtful accounts. In May 2011, we transferred our assets in Ecuador to the Ecuadorian government.


⁽²⁾	Amount relates to rig stand-by expense incurred prior to receiving a permit to resume drilling activities in the deepwater Gulf of Mexico.


⁽³⁾	Amounts represent increases (decreases) in the fair value of shares of our common stock held in a rabbi trust.

Balance Sheet Information Other balance sheet information is as follows:



	June 30, 2012			December 31, 2011
(millions)
Accounts Receivable, Net
Commodity Sales	$	319		$	356
Joint Interest Billings	394			313
Other	120			123
Allowance for Doubtful Accounts	(9		)	(9		)
Total	$	824		$	783
Other Current Assets
Inventories, Current	$	67		$	78
Commodity Derivative Assets	85			10
Deferred Income Taxes, Net ⁽¹⁾	100			41
Probable Insurance Claims ⁽²⁾	31			15
Prepaid Expenses and Other Current Assets	85			36
Total	$	368		$	180
Other Noncurrent Assets
Equity Method Investments	$	373		$	329
Mutual Fund Investments	104			99
Commodity Derivative Assets	85			37
Other Assets, Noncurrent	80			83
Total	$	642		$	548
Other Current Liabilities
Production and Ad Valorem Taxes	$	119		$	121
Commodity Derivative Liabilities	2			76
Income Taxes Payable	107			127
Asset Retirement Obligations	45			33
Interest Payable	55			56
CONSOL Installment Payment ⁽³⁾	327			324
Current Portion of FPSO Lease Obligation	53			45
Liabilities Associated with Assets Held for Sale	234			—
Other	118			143
Total	$	1,060		$	925
Other Noncurrent Liabilities
Deferred Compensation Liabilities	$	224		$	222
Asset Retirement Obligations	298			344
Accrued Benefit Costs	89			88
Commodity Derivative Liabilities	—			7
Other	72			91
Total	$	683		$	752


⁽¹⁾	Increase from December 31, 2011 is due to reclassification of deferred income tax assets from long-term to short-term as certain foreign entities are estimated to begin utilizing net operating loss carryforwards in 2012 and 2013.


⁽²⁾	Amounts represent the costs incurred to date of the Leviathan-2 appraisal well and expected well abandonment costs in excess of the insurance deductible less insurance proceeds received to date. See Note 9. Asset Retirement Obligations.


⁽³⁾	See Note 3. Acquisitions and Dispositions and Note 5. Debt.