Impairments Impairments

6 Months Ended

Jun. 30, 2020

Other Income and Expenses [Abstract]

Impairments

Note 4. Impairments

The effect of impairments on our consolidated statements of operations and comprehensive loss was as follows:

		Three Months Ended June 30,				Six Months Ended June 30,
(millions)	Statement of Operations Location	2020		2019		2020		2019
Asset Impairment Expense
Proved Property Impairment - Delaware Basin	Asset Impairments	$	—	$	—	$	2,703	$	—
Capitalized Exploratory Well Costs - Felicita	Asset Impairments	51		—		51		—
Total Asset Impairment Expense		$	51	$	—	$	2,754	$	—
Leasehold Impairment Expense
Leasehold Impairment - Delaware Basin	Exploration Expense	$	—	$	—	$	1,385	$	—
Leasehold Impairment - Eagle Ford Shale	Exploration Expense	—		—		100		—
Leasehold Impairment - Gabon	Exploration Expense	3		—		3		—
Total Leasehold Impairment Expense		$	3	$	—	$	1,488	$	—
Goodwill Impairment - Noble Midstream Partners	Goodwill Impairment	$	—	$	—	$	110	$	—
Finance Lease Right-of-Use Asset Impairment	Other Operating Expense, Net	—		—		40		—

Second Quarter 2020 Impairment

In second quarter 2020, we concluded that while our 2008 Felicita discovery, Block O, offshore West Africa was successful in locating hydrocarbons, it was not competitive with other assets in our portfolio being considered for future development. We fully impaired the asset based on management's decision not to move forward with development.

First Quarter 2020 Impairments

We performed a number of impairment assessments during first quarter 2020. These assessments included using various valuation techniques and Level 3 inputs on the fair value hierarchy. See Note 2. Basis of Presentation.

Property Impairments  In first quarter 2020, following our impairment analysis, we recorded impairment expense as follows:

• Delaware Basin Assets The fair values of our Delaware Basin assets were estimated using the income approach and resulted in fair values of approximately $910 million and $530 million associated with proved properties (inclusive of associated midstream assets) and unproved properties, respectively. As of March 31, 2020, the carrying values of our Delaware Basin proved and unproved properties were $3.6 billion and $1.9 billion, respectively, and as such, we recognized total impairment expense of $4.1 billion for the excess of the carrying value above the fair value of the properties.

• Eagle Ford Shale Unproved Properties After assessing future development scenarios and in contemplation of the current commodity and supply/demand environment, we determined that all $100 million of remaining unproved leasehold costs were impaired due to the likelihood of future drilling in certain zones in this area.

Goodwill Impairment Noble Midstream Partners concluded the fair value of its Black Diamond reporting unit was less than its carrying value and therefore performed a fair value assessment. Based on the assessment, Noble Midstream Partners concluded that the entire carrying amount of goodwill was fully impaired and recorded goodwill impairment expense of $110 million in first quarter 2020. Of the $110 million of goodwill impairment expense included in our consolidated statements of operations, approximately $38 million is attributable to Noble Energy relating to our ownership interests in the Black Diamond entity, while the remainder of $72 million is attributable to noncontrolling interests.

Finance Lease Right-of-Use Asset Impairment During first quarter 2020, we recognized $40 million of impairment expense for the excess of the carrying value above the fair value of the right-of-use asset relating to a corporate real estate lease. As of March 31, 2020, the associated carrying value was $88 million. The impairment was the result of economic facts and circumstances and plans pertaining to the future use of the asset.