Additional Financial Statement Information

12 Months Ended

Dec. 31, 2019

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)	2019		2018			2017
Other Revenue
Income from Equity Method Investments and Other	$	51	$	172		$	177
Midstream Services Revenues - Third Party	94		78			19
Total	$	145	$	250		$	196
Production Expense
Lease Operating Expense	$	532	$	576		$	571
Production and Ad Valorem Taxes	175		190			118
Gathering, Transportation and Processing Expense	417		393			432
Other Royalty Expense	13		38			20
Total	$	1,137	$	1,197		$	1,141
Exploration Expense
Leasehold Impairment and Amortization	$	—	$	1		$	62
Dry Hole Cost ⁽¹⁾	100		1			9
Seismic, Geological and Geophysical	21		22			27
Staff Expense	48		54			55
Other	33		51			35
Total	$	202	$	129		$	188
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	$	34	$	40		$	47
Firm Transportation Exit Cost ⁽²⁾	88		—			—
Clayton Williams Energy Acquisition Expenses	—		—			100
Loss (Gain) on Asset Retirement Obligation Revisions	9		(25		)	(42		)
Other, Net	83		35			33
Total	$	214	$	50		$	138


⁽¹⁾	See Note 6. Capitalized Exploratory Well Costs and Undeveloped Leasehold Costs.


⁽²⁾	See Note 11. Exit Cost – Transportation Commitments.

Balance Sheet Information Other balance sheet information is as follows:



	December 31,
(millions)	2019			2018
Accounts Receivable, Net
Commodity Sales	$	446		$	383
Joint Interest Billings	164			137
Other	128			111
Allowance	(8		)	(15		)
Total	$	730		$	616
Other Current Assets
Commodity Derivative Assets	$	14		$	180
Inventories, Materials and Supplies	59			55
Assets Held for Sale ⁽¹⁾	14			133
Prepaid Expenses and Other Current Assets	61			50
Total	$	148		$	418
Other Noncurrent Assets
Equity Method Investments ⁽²⁾	$	1,066		$	286
Operating Lease Right-of-Use Assets ⁽³⁾	227			—
Customer-Related Intangible Assets, Net	278			310
Goodwill	110			110
Mutual Fund Investments	27			38
Other Noncurrent Assets	126			97
Total	$	1,834		$	841
Other Current Liabilities
Production and Ad Valorem Taxes	$	118		$	103
Asset Retirement Obligations	84			118
Interest Payable	74			66
Operating Lease Liabilities ⁽³⁾	88			—
Compensation and Benefits Payable	126			83
Other Current Liabilities	229			149
Total	$	719		$	519
Other Noncurrent Liabilities
Deferred Compensation Liabilities	$	133		$	147
Asset Retirement Obligations	730			762
Operating Lease Liabilities ⁽³⁾	164			—
Firm Transportation Exit Cost Accrual ⁽⁴⁾	129			67
Other Noncurrent Liabilities	222			189
Total	$	1,378		$	1,165


⁽¹⁾	Amounts relate to divestitures of non-core assets and acreage in Reeves County, Texas. See Note 4. Acquisitions and Divestitures.


⁽²⁾	See Note 5. Equity Method Investments.


⁽³⁾	Amounts relate to assets and liabilities recorded as a result of ASC 842 adoption. See Note 9. Leases.


⁽⁴⁾	See Note 11. Exit Cost – Transportation Commitments.

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)	2019		2018
Cash and Cash Equivalents at Beginning of Period	$	716	$	675
Restricted Cash at Beginning of Period	3		38
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period	$	719	$	713
Cash and Cash Equivalents at End of Period	$	484	$	716
Restricted Cash at End of Period	—		3
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	484	$	719

A significant portion of our cash is located in foreign subsidiaries. The cash is denominated in US dollars and at certain times is 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.

Supplemental Cash Flow Information Supplemental statements of cash flow information is as follows:



	Year Ended December 31,
(millions)	2019		2018		2017
Cash Paid During the Year For
Interest, Net of Amount Capitalized ⁽¹⁾	$	208	$	270	$	346
Income Taxes Paid, Net	76		172		121


⁽¹⁾	Interest capitalized totaled $102 million in 2019, $73 million in 2018 and $49 million in 2017.

See Note 9. Leases for supplemental cash flow information related to leases.

Significant Purchasers Non-affiliated purchasers who accounted for 10% or more of our commodity sales were as follows:



	Year Ended December 31,
	2019		2018		2017
Percentage of Crude Oil Sales
Shell ⁽¹⁾	22	%	22	%	22	%
BP ⁽²⁾	18	%	31	%	15	%
Percentage of Total Crude Oil, NGL & Natural Gas Sales
Shell ⁽¹⁾	15	%	14	%	13	%
BP ⁽²⁾	14	%	17	%	10	%


⁽¹⁾	Includes sales to Shell Energy North America and Shell Trading (US) Company (collectively, Shell).


⁽²⁾	Includes sales to BP America Production, BP Energy Co and BP Products North America, Inc (collectively, BP).

Both Shell and BP purchased crude oil and condensate domestically from our US onshore operations. No other single purchaser accounted for 10% or more of our commodity sales in 2019. We routinely monitor the credit worthiness of our purchasers. While we maintain credit insurance associated with certain purchasers, we do not carry credit insurance for all purchasers. We believe that the loss of any one significant purchaser would not have a material adverse effect on our financial position or results of operations as there are numerous potential purchasers of our US onshore production and generally production is sold under short-term contracts.