Basis of Presentation (Tables)

6 Months Ended

Jun. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

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



	Three Months Ended June 30,						Six Months Ended June 30,
(millions)	2016			2015			2016			2015
Production Expense
Lease Operating Expense	$	119		$	129		$	281		$	286
Production and Ad Valorem Taxes	40			28			43			61
Transportation and Gathering Expense ⁽¹⁾	115			61			222			122
Total	$	274		$	218		$	546		$	469
Other Operating (Income) Expense, Net
Loss on Asset Due to Terminated Contract ⁽²⁾	$	5		$	—		$	47		$	—
Marketing and Processing Expense, Net ⁽³⁾	15			12			37			22
Loss (Gain) on Divestitures	23			(1		)	23			—
Corporate Restructuring Expense	—			18			1			18
Purchase Price Allocation Adjustment ⁽⁴⁾	(25		)	—			(25		)	—
Gain on Extinguishment of Debt ⁽⁵⁾	—			—			(80		)	—
Asset Impairments	—			15			—			43
Pension Plan Expense	—			21			—			21
Stacked Drilling Rig Expense	3			7			5			7
Other, Net	(4		)	13			12			10
Total	$	17		$	85		$	20		$	121
Other Non-Operating Expense (Income), Net
Deferred Compensation Expense (Income) ⁽⁶⁾	$	5		$	(7	)	$	5		$	(5	)
Other Expense (Income), Net	2			(2		)	(2		)	(4		)
Total	$	7		$	(9	)	$	3		$	(9	)

⁽¹⁾

Certain of our revenue received from purchasers was historically presented with deductions for transportation, gathering, fractionation or processing costs. Beginning in 2016, we have changed our presentation of revenue to no longer include these expenses as deductions from revenue. These costs are now included within production expense and prior year amounts of $10 million and $19 million for the three and six months ended June 30, 2015 have been reclassified to conform to the current presentation.


⁽²⁾	Amount relates to the termination of a rig contract offshore Falkland Islands as a result of a supplier's non-performance. See Note 8. Capitalized Exploratory Well Costs and Undeveloped Leasehold and Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Executive Overview - Exploration Program Update.


⁽³⁾	For the three months and six months ended June 30, 2016, amount includes $7 million and $23 million, respectively, of expense due to unutilized firm transportation and shortfalls in delivering or transporting minimum volumes under certain commitments.

For the three months and six months ended June 30, 2015, amount includes $5 million and $9 million, respectively, of expense due to unutilized firm transportation and shortfalls in delivering or transporting minimum volumes under certain commitments.


⁽⁴⁾	Amount relates to an adjustment recorded to the purchase price allocation related to the Rosetta Merger. See Note 3. Rosetta Merger.


⁽⁵⁾	Amount relates to the tendering of senior notes assumed in the Rosetta Merger. See Note 6. Debt.


⁽⁶⁾	Amounts represent decreases (increases) in the fair value of shares of our common stock held in a rabbi trust.

Balance Sheet Information Table

Balance Sheet Information Other balance sheet information is as follows:



(millions)	June 30, 2016			December 31, 2015
Accounts Receivable, Net
Commodity Sales	$	338		$	298
Joint Interest Billings	19			20
Proceeds Receivable ⁽¹⁾	40			—
Severance Tax Refund ⁽²⁾	28			—
Other	75			151
Allowance for Doubtful Accounts	(24		)	(19		)
Total	$	476		$	450
Other Current Assets
Inventories, Materials and Supplies	$	93		$	92
Inventories, Crude Oil	25			23
Assets Held for Sale⁽³⁾	18			67
Prepaid Expenses and Other Current Assets	48			34
Total	$	184		$	216
Other Noncurrent Assets
Investments in Unconsolidated Subsidiaries	$	467		$	453
Mutual Fund Investments	79			90
Commodity Derivative Assets	—			10
Other Assets	47			67
Total	$	593		$	620
Other Current Liabilities
Production and Ad Valorem Taxes	$	142		$	166
Commodity Derivative Liabilities	35			—
Income Taxes Payable	35			86
Asset Retirement Obligations	128			128
Interest Payable	75			83
Current Portion of Capital Lease Obligations	56			53
Other	124			161
Total	$	595		$	677
Other Noncurrent Liabilities
Deferred Compensation Liabilities	$	225		$	217
Asset Retirement Obligations	855			861
Production and Ad Valorem Taxes	21			68
Commodity Derivative Liabilities	31			—
Other	41			73
Total	$	1,173		$	1,219


⁽¹⁾	Amount relates to proceeds to be received from our farm-out of 35% interest in Block 12 offshore Cyprus. See Note 4. Divestitures.


⁽²⁾	Amount relates to the accrual of a $28 million onshore US severance tax receivable.


⁽³⁾	Assets held for sale at June 30, 2016 include certain producing and undeveloped crude oil and natural gas interests in the DJ Basin, while assets held for sale at December 31, 2015 include the Karish and Tanin natural gas discoveries, offshore Israel. See Note 4. Divestitures