Accounting For Certain Long-Lived Assets

12 Months Ended

Dec. 31, 2016

Accounting For Certain Long-Lived Assets [Abstract]

Accounting For Certain Long-Lived Assets

Accounting for Certain Long-Lived Assets

EOG reviews its proved oil and gas properties for impairment purposes by comparing the expected undiscounted future cash flows at a depreciation, depletion and amortization group level to the unamortized capitalized cost of the asset.  The carrying values for assets determined to be impaired were adjusted to estimated fair value using the Income Approach described in the Fair Value Measurement Topic of the ASC. In certain instances, EOG utilizes accepted offers from third-party purchasers as the basis for determining fair value.

During 2016, proved oil and gas properties; other property, plant and equipment; and other assets with a carrying amount of $667 million were written down to their fair value of $537 million, resulting in pretax impairment charges of $130 million. During 2015, proved oil and gas properties and other assets with a carrying amount of $9,154 million were written down to their fair value of $2,828 million, resulting in pretax impairment charges of $6,326 million, $4,141 million net of tax. Impairments in 2016 and 2015 included domestic legacy natural gas assets. In addition, impairments in 2015 included marginal liquids plays and the Conwy crude oil project in the East Irish Sea. Amortization and impairments of unproved oil and gas property costs, including amortization of capitalized interest, were $291 million, $288 million and $168 million during 2016, 2015 and 2014, respectively.