Segment Information

3 Months Ended

Mar. 31, 2017

Segment Information [Abstract]

Segment Information

(13) SEGMENT INFORMATION

The Company’s reportable business segments have been identified based on the differences in products or services provided. Revenues for the E&P segment are derived from the production and sale of natural gas and liquids. The Midstream Services segment generates revenue through the marketing of both Company and third-party produced natural gas and liquids volumes and through gathering fees associated with the transportation of natural gas to market.

Summarized financial information for the Company’s reportable segments is shown in the following table. The accounting policies of the segments are the same as those described in Note 1 of the Notes to Consolidated Financial Statements included in Item 8 of the 2016 Annual Report. Management evaluates the performance of its segments based on operating income, defined as operating revenues less operating costs. Income before income taxes, for the purpose of reconciling the operating income amount shown below to consolidated income before income taxes, is the sum of operating income, interest expense, gain (loss) on derivatives and other income (loss).  The “Other” column includes items not related to the Company’s reportable segments, including real estate and corporate items.

	Exploration and Production			Midstream Services			Other			Total
	(in millions)
Three months ended March 31, 2017:
Revenues from external customers	$	566		$	280		$	–		$	846
Intersegment revenues		(3)			578			–			575
Depreciation, depletion and amortization expense		90			16			–			106
Operating income		225			41			–			266
Interest expense (1)		32			–			–			32
Gain on derivatives		116			–			–			116
Loss on early extinguishment of debt		–			–			(1)			(1)
Other income, net		2			–			–			2
Assets		4,413			1,268			1,515	(2)		7,196
Capital investments (3)		283			6			1			290
Three months ended March 31, 2016:
Revenues from external customers	$	343		$	236		$	–		$	579
Intersegment revenues		(7)			385			–			378
Depreciation, depletion and amortization expense		127			16			–			143
Impairment of natural gas and oil properties		1,034			–			–			1,034
Operating income (loss)		(1,160)	(4)		60	(5)		–			(1,100)
Interest expense (1)		14			–			–			14
Loss on derivatives		(13)			(1)			–			(14)
Other loss, net		(2)			(1)			–			(3)
Provision for income taxes (1)		1			–			–			1
Assets		5,538			1,220			1,760	(2)		8,518
Capital investments (3)		120			2			–			122

(1) Interest expense and the provision for income taxes by segment are an allocation of corporate amounts as they are incurred at the corporate level.

(2) Other assets represent corporate assets not allocated to segments and assets for non-reportable segments.  At March 31, 2017 and 2016, other assets includes approximately $1.4 billion and $1.6 billion in cash and cash equivalents, respectively.

(3) Capital investments includes decreases of $52 million and $78 million for the three months ended March 31, 2017 and 2016, respectively, relating to the change in accrued expenditures between periods.

(4) Operating income (loss) for the E&P segment includes $61 million related to restructuring charges for the three months ended March 31, 2016.

(5) Operating income (loss) for the Midstream segment includes $3 million related to restructuring charges for the three months ended March 31, 2016.

Included in intersegment revenues of the Midstream Services segment are $524 million and $319 million for the three months ended March 31, 2017 and 2016, respectively, for marketing of the Company’s E&P sales. Corporate assets include cash and cash equivalents, furniture and fixtures and other costs. Corporate general and administrative costs, depreciation expense and taxes other than income are allocated to the segments.