Additional Financial Statement Information

12 Months Ended

Dec. 31, 2018

Additional Financial Statement Information [Abstract]

Additional Financial Statement Information

Note 2. Additional Financial Statement Information

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



	Year Ended December 31,
(millions)	2018			2017			2016
Sales of Purchased Oil and Gas and Other
Sales of Purchased Oil and Gas ⁽¹⁾	$	275		$	—		$	—
Income from Equity Method Investees	172			177			102
Midstream Services Revenues - Third Party	78			19			—
Total	$	525		$	196		$	102
Production Expense
Lease Operating Expense	$	576		$	571		$	542
Production and Ad Valorem Taxes	190			118			57
Gathering, Transportation and Processing Expense	393			432			480
Other Royalty Expense	38			20			21
Total	$	1,197		$	1,141		$	1,100
Exploration Expense
Leasehold Impairment and Amortization	$	1		$	62		$	148
Dry Hole Cost	1			9			579
Seismic, Geological and Geophysical	22			27			76
Staff Expense	54			55			77
Other	51			35			45
Total	$	129		$	188		$	925
Loss on Marcellus Shale Upstream Divestiture and Other
Loss on Sale	$	—		$	2,270		$	—
Exit Cost	—			93			—
Other	—			16			—
Total	$	—		$	2,379		$	—
Other Operating Expense, Net
Marketing Expense ⁽²⁾	$	40		$	47		$	58
Cost of Purchased Oil and Gas ⁽¹⁾	296			—			—
Clayton Williams Energy Acquisition Expenses	—			100			—
Gain on Asset Retirement Obligation Revisions ⁽³⁾	(25		)	(42		)	—
Other, Net	35			33			77
Total	$	346		$	138		$	135

⁽¹⁾

As part of the Saddle Butte Acquisition in first quarter 2018, we acquired certain contracts which include the purchase and sale of crude oil with third parties. In addition, we entered into certain transactions beginning in first quarter 2018 for the purchase of third-party natural gas and the subsequent sale of natural gas to other third parties. The natural gas is transported through firm transportation capacity we retained following the Marcellus Shale upstream divestiture in second quarter 2017 and is part of our mitigation efforts to utilize capacity and reduce our financial commitment. See Note 3. Segment Information and Note 10. Marcellus Shale Firm Transportation Commitments.


⁽²⁾	Amounts relate to shortfalls in transporting or processing minimum volumes under certain financial commitments primarily in the DJ Basin for 2018 and in the DJ Basin and Marcellus Shale for 2017 (prior to the Marcellus Shale upstream divestiture) and 2016.


⁽³⁾	Gains due to downward ARO revisions in locations where we have no remaining assets. See Note 8. Asset Retirement Obligations.

Balance Sheet Information Other balance sheet information is as follows:



	December 31,
(millions)	2018			2017
Accounts Receivable, Net
Commodity Sales	$	383		$	455
Joint Interest Billings ⁽¹⁾	137			207
Other	111			103
Allowance for Doubtful Accounts	(15		)	(17		)
Total	$	616		$	748
Other Current Assets
Commodity Derivative Assets	$	180		$	—
Inventories, Materials and Supplies	55			66
Inventories, Crude Oil	12			16
Assets Held for Sale ⁽²⁾	133			629
Restricted Cash ⁽³⁾	3			38
Prepaid Expenses and Other Assets, Current	35			31
Total	$	418		$	780
Other Noncurrent Assets
Equity Method Investments	$	286		$	305
Customer-Related Intangible Assets, Net⁽⁴⁾	310			—
Mutual Fund Investments	38			57
Net Deferred Income Tax Asset	21			25
Other Assets, Noncurrent	76			74
Total	$	731		$	461
Other Current Liabilities
Production and Ad Valorem Taxes	$	103		$	84
Commodity Derivative Liabilities	1			58
Income Taxes Payable	22			18
Asset Retirement Obligations	118			51
Interest Payable	66			67
Current Portion of Capital Lease Obligations	41			61
Liabilities Associated with Assets Held for Sale ⁽²⁾	1			55
Compensation and Benefits Payable	83			98
Other Liabilities, Current	84			86
Total	$	519		$	578
Other Noncurrent Liabilities
Deferred Compensation Liabilities	$	147		$	197
Asset Retirement Obligations	762			824
Marcellus Shale Exit Cost Accrual	67			76
Production and Ad Valorem Taxes	83			69
Commodity Derivative Liabilities	26			15
Other Liabilities, Noncurrent	80			64
Total	$	1,165		$	1,245


⁽¹⁾	We bill partners for their share of expenses of joint venture projects for which we are the operator. These projects, especially those in deepwater or remote international locations, can be very capital cost intensive. Our receivables from joint interest billings decreased significantly in 2018 due to the second quarter 2018 sale of our Gulf of Mexico offshore assets.


⁽²⁾	Assets held for sale at December 31, 2018 include certain proved and unproved non-core acreage in Reeves County, Texas. Assets held for sale at December 31, 2017 include assets in the Greeley Crescent area of the DJ Basin, a 7.5% interest in the Tamar field, our investment in Southwest Royalties, Inc. acquired in the Clayton Williams Energy Acquisition, and the CONE investments, including

CONE Midstream and CONE Gathering. Liabilities associated with assets held for sale primarily represent ARO and other liabilities to be assumed by the purchaser. See Note 5. Acquisitions and Divestitures.


⁽³⁾	Balance at December 31, 2018 represents amounts held for the divestiture of certain non-core acreage in the Delaware Basin and Noble Midstream Partners collateral on letters of credit. Balance at December 31, 2017 represents amount held in escrow pending closing of the Saddle Butte Acquisition. See Note 5. Acquisitions and Divestitures.


⁽⁴⁾	Amount relates to intangible assets acquired in the Saddle Butte Acquisition. See Note 5. Acquisitions and Divestitures.

Reconciliation of Total Cash We define total cash as cash, cash equivalents and restricted cash. The following table provides a reconciliation of total cash:



	December 31,
(millions)	2018		2017
Cash and Cash Equivalents at Beginning of Period	$	675	$	1,180
Restricted Cash at Beginning of Period	38		30
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period	$	713	$	1,210
Cash and Cash Equivalents at End of Period	$	716	$	675
Restricted Cash at End of Period	3		38
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	719	$	713

A significant portion of our cash is located in foreign subsidiaries. The cash is denominated in US dollars and invested in highly liquid money market funds and short term deposits with original maturities of three months or less at the time of purchase. Although our cash and cash equivalents are deposited with major international banks and financial institutions, concentrations of cash in certain foreign locations may increase credit risk. We monitor the creditworthiness of the banks and financial institutions with which we invest and review the securities underlying our investment accounts. We believe that losses from nonperformance are unlikely to occur; however, we are not able to predict sudden changes in creditworthiness.

Supplemental statements of cash flow information are as follows:



	Year Ended December 31,
(millions)	2018		2017		2016
Cash Paid During the Year For
Interest, Net of Amount Capitalized	$	270	$	346	$	327
Income Taxes Paid, Net	172		121		236
Non-Cash Financing and Investing Activities
Increase in Capital Lease Obligations	14		—		5