Basis of Presentation (Tables)

6 Months Ended

Jun. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Other statements of operations information is as follows:



	Three Months Ended June 30,					Six Months Ended June 30,
(millions)	2017		2016			2017		2016
Production Expense
Lease Operating Expense	$	124	$	119		$	263	$	281
Production and Ad Valorem Taxes	38		40			83		43
Gathering, Transportation and Processing Expense ⁽¹⁾	121		121			240		232
Total	$	283	$	280		$	586	$	556
Loss on Marcellus Shale Upstream Divestiture ⁽²⁾
Loss on Sale	$	2,270	$	—		$	2,270	$	—
Firm Transportation Commitment ⁽³⁾	41		—			41		—
Other ⁽⁴⁾	11		—			11		—
Total	$	2,322	$	—		$	2,322	$	—
Other Operating (Income) Expense, Net
Marketing Expense ⁽⁵⁾	$	14	$	9		$	33	$	27
Clayton Williams Energy Acquisition Expenses ⁽⁶⁾	90		—			94		—
Gain on Extinguishment of Debt ⁽⁷⁾	—		—			—		(80		)
Loss on Asset Due to Terminated Contract ⁽⁸⁾	—		5			4		47
Other, Net	14		(3		)	16		16
Total	$	118	$	11		$	147	$	10

⁽¹⁾

Certain of our processing expense was historically presented as a component of other operating expense, net, in our consolidated statements of operations. Beginning in 2017, we have changed our presentation to reflect processing expense as a component of production expense. These costs are now included within gathering, transportation and processing expense. For the three and six months ended June 30, 2017, these costs totaled $2 million and $5 million respectively. For the three and six months ended June 30, 2016, these costs totaled $6 million and $10 million respectively, and have been reclassified from marketing expense to conform to the current presentation.


⁽²⁾	See Note 4. Acquisitions and Divestitures.


⁽³⁾	Amount represents expense related to an unutilized firm transportation commitment associated with a Marcellus Shale firm transportation contract. See Note 12. Commitments and Contingencies.


⁽⁴⁾	Amount includes costs for legal and advisory services and employee severance charges.


⁽⁵⁾	Amounts represent expense for unutilized firm transportation and shortfalls in delivering or transporting minimum volumes under certain commitments.


⁽⁶⁾	See Note 3. Clayton Williams Energy Acquisition.


⁽⁷⁾	Amount relates to the tendering of senior notes. See Note 6. Debt.


⁽⁸⁾	Amounts relate to the termination and final settlement of a rig contract for offshore Falkland Islands as a result of a supplier's non-performance.

Balance Sheet Information Table

Other balance sheet information is as follows:



(millions)	June 30, 2017			December 31, 2016
Accounts Receivable, Net
Commodity Sales	$	408		$	403
Joint Interest Billings	198			106
Proceeds Receivable ⁽¹⁾	—			40
Other	112			86
Allowance for Doubtful Accounts	(19		)	(20		)
Total	$	699		$	615
Other Current Assets
Inventories, Materials and Supplies	$	65		$	71
Inventories, Crude Oil	23			18
Assets Held for Sale⁽²⁾	191			18
Restricted Cash ⁽³⁾	—			30
Prepaid Expenses and Other Current Assets	59			23
Total	$	338		$	160
Other Noncurrent Assets
Equity Method Investments	$	286		$	400
Mutual Fund Investments	67			71
Other Assets, Noncurrent	79			37
Total	$	432		$	508
Other Current Liabilities
Production and Ad Valorem Taxes	$	113		$	115
Commodity Derivative Liabilities	—			102
Income Taxes Payable	11			53
Asset Retirement Obligations ⁽⁴⁾	50			160
Interest Payable	75			76
Current Portion of Capital Lease Obligations	64			63
Other Liabilities, Current ⁽⁵⁾	196			173
Total	$	509		$	742
Other Noncurrent Liabilities
Deferred Compensation Liabilities	$	216		$	218
Asset Retirement Obligations ⁽⁴⁾	943			775
Marcellus Shale Firm Transportation Commitment ⁽⁶⁾	33			—
Production and Ad Valorem Taxes	32			47
Other Liabilities, Noncurrent	55			63
Total	$	1,279		$	1,103


⁽¹⁾	Balance at December 31, 2016 related to the farm-out of a 35% interest in Block 12 offshore Cyprus; proceeds were received in January 2017. See Note 4. Acquisitions and Divestitures.


⁽²⁾	Balance at June 30, 2017 primarily includes our equity investment in CONE Gathering, LLC. See Note 4. Acquisitions and Divestitures.


⁽³⁾	Balance at December 31, 2016 represented amount held in escrow for the purchase of certain Delaware Basin properties. The transaction closed in first quarter 2017. See Note 4. Acquisitions and Divestitures.


⁽⁴⁾	Reclassification from current to noncurrent is driven primarily by a change in expected timing of abandonment activities in the Gulf of Mexico. See Note 9. Asset Retirement Obligations.


⁽⁵⁾	Balance at June 30, 2017 includes $8 million associated with the current portion of the Marcellus Shale firm transportation commitment. See Note 12. Commitments and Contingencies.


⁽⁶⁾	See Note 12. Commitments and Contingencies.