Basis of Presentation (Tables)

9 Months Ended

Sep. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Other statements of operations information is as follows:



	Three Months Ended September 30,						Nine Months Ended September 30,
(millions)	2017			2016			2017			2016
Production Expense
Lease Operating Expense	$	151		$	131		$	414		$	412
Production and Ad Valorem Taxes	36			30			119			73
Gathering, Transportation and Processing Expense ⁽¹⁾	93			121			333			354
Total	$	280		$	282		$	866		$	839
Exploration Expense
Leasehold Impairment and Amortization ⁽²⁾	$	33		$	96		$	51		$	127
Dry Hole Cost ⁽³⁾	2			5			2			105
Seismic, Geological and Geophysical	7			15			20			47
Staff Expense	11			15			40			53
Other	11			(6		)	23			44
Total	$	64		$	125		$	136		$	376
Loss on Marcellus Shale Upstream Divestiture ⁽⁴⁾
Loss on Sale	$	—		$	—		$	2,270		$	—
Firm Transportation Commitment ⁽⁵⁾	—			—			41			—
Other ⁽⁶⁾	4			—			15			—
Total	$	4		$	—		$	2,326		$	—
Other Operating Expense, Net ⁽⁷⁾
Marketing Expense ^{(1) (8)}	$	6		$	12		$	39		$	39
Clayton Williams Energy Acquisition Expenses ⁽⁹⁾	4			—			98			—
Loss on Asset Due to Terminated Contract ⁽¹⁰⁾	—			—			—			47
North Sea Remediation Project Revision ⁽¹¹⁾	(42		)	—			(42		)	—
Other, Net	17			25			37			41
Total	$	(15	)	$	37		$	132		$	127

⁽¹⁾

Certain of our gathering and processing expenses were historically presented as components of other operating expense, net, in our consolidated statements of operations. Beginning in 2017, we have changed our presentation to reflect these as components of production expense. These costs are now included within gathering, transportation and processing expense. For the three and nine months ended September 30, 2017, these costs totaled $12 million and $17 million, respectively. For the three and nine months ended September 30, 2016, these costs totaled $8 million and $19 million, respectively, and have been reclassified from marketing expense to conform to the current presentation.


⁽²⁾	See Note 8. Capitalized Exploratory Well Costs and Undeveloped Leasehold Costs.


⁽³⁾	For the nine months ended September 30, 2016, amount related primarily to the Silvergate exploratory well, Gulf of Mexico, and the Dolphin 1 natural gas discovery, offshore Israel.


⁽⁴⁾	See Note 4. Acquisitions and Divestitures.


⁽⁵⁾	Amount represents expense related to an unutilized firm transportation commitment associated with a Marcellus Shale firm transportation contract. See Note 12. Commitments and Contingencies.


⁽⁶⁾	Amount includes costs for legal and advisory services and employee severance charges.


⁽⁷⁾	(Gain)/Loss on debt extinguishment was historically presented as a component of other operating expense, net in our consolidated statements of operations. Beginning with third quarter 2017, we have changed our presentation to reflect these as a separate line item within other expense (income) below operating loss. The prior periods have been reclassified to conform to that presentation.


⁽⁸⁾	Amounts represent expense for unutilized firm transportation and shortfalls in delivering or transporting minimum volumes under certain commitments.


⁽⁹⁾	See Note 3. Clayton Williams Energy Acquisition.


⁽¹⁰⁾	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.


⁽¹¹⁾	See Note 9. Asset Retirement Obligations

Balance Sheet Information Table

Other balance sheet information is as follows:



(millions)	September 30, 2017			December 31, 2016
Accounts Receivable, Net
Commodity Sales	$	403		$	403
Joint Interest Billings	183			106
Proceeds Receivable ⁽¹⁾	—			40
Other	106			86
Allowance for Doubtful Accounts	(17		)	(20		)
Total	$	675		$	615
Other Current Assets
Inventories, Materials and Supplies	$	61		$	71
Inventories, Crude Oil	17			18
Assets Held for Sale⁽²⁾	180			18
Restricted Cash ⁽³⁾	—			30
Prepaid Expenses and Other Current Assets	45			23
Total	$	303		$	160
Other Noncurrent Assets
Equity Method Investments	$	286		$	400
Mutual Fund Investments	70			71
Other Assets, Noncurrent	60			37
Total	$	416		$	508
Other Current Liabilities
Production and Ad Valorem Taxes	$	118		$	115
Commodity Derivative Liabilities	4			102
Income Taxes Payable	13			53
Asset Retirement Obligations ⁽⁴⁾	50			160
Interest Payable	82			76
Current Portion of Capital Lease Obligations	65			63
Foreign Sales Tax Payable	29			14
Compensation and Benefits Payable	87			110
Theoretical Withdrawal Premium	25			18
Other Liabilities, Current ⁽⁵⁾	26			31
Total	$	499		$	742
Other Noncurrent Liabilities
Deferred Compensation Liabilities	$	216		$	218
Asset Retirement Obligations ⁽⁴⁾	894			775
Marcellus Shale Firm Transportation Commitment ⁽⁶⁾	31			—
Production and Ad Valorem Taxes	49			47
Other Liabilities, Noncurrent	55			63
Total	$	1,245		$	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 September 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 September 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.