Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 30, 2015 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2015 | |
Amendment Flag | FALSE | |
Entity Registrant Name | Marathon Oil Corp | |
Entity Central Index Key | 101778 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Well Known Seasoned Issuer | Yes | |
Entity Common Stock Shares Outstanding | 674,954,423 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues and other income: | ||
Sales and other operating revenues, including related party | $1,280 | $2,149 |
Marketing revenues | 204 | 541 |
Income from equity method investments | 36 | 137 |
Net gain on disposal of assets | 1 | 2 |
Other income | 11 | 20 |
Total revenues and other income | 1,532 | 2,849 |
Costs and expenses: | ||
Production | 444 | 542 |
Marketing, including purchases from related parties | 205 | 542 |
Other operating | 107 | 103 |
Exploration | 90 | 73 |
Depreciation, depletion and amortization | 821 | 643 |
Impairments | 0 | 17 |
Taxes other than income | 67 | 95 |
General and administrative | 171 | 187 |
Total costs and expenses | 1,905 | 2,202 |
Income (loss) from operations | -373 | 647 |
Net interest and other | -47 | -49 |
Income (loss) from continuing operations before income taxes | -420 | 598 |
Provision (benefit) for income taxes | -144 | 200 |
Income (loss) from continuing operations | -276 | 398 |
Discontinued operations | 0 | 751 |
Net income (loss) | ($276) | $1,149 |
Basic: | ||
Income (loss) from continuing operations per basic share | ($0.41) | $0.58 |
Discontinued operations per basic share | $0 | $1.08 |
Net income (loss), per basic share | ($0.41) | $1.66 |
Diluted: | ||
Income (loss) from continuing operations per diluted share | ($0.41) | $0.57 |
Discontinued operations per diluted share | $0 | $1.08 |
Net income (loss), per diluted share | ($0.41) | $1.65 |
Dividends paid, per share | $0.21 | $0.19 |
Weighted average common shares outstanding, basic | 675 | 693 |
Weighted average common shares outstanding, diluted | 675 | 696 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | ($276) | $1,149 |
Postretirement and postemployment plans | ||
Change in actuarial loss and other | 76 | -30 |
Income tax benefit (provision) on postretirement and postemployment plans | -27 | 10 |
Postretirement and postemployment plans, net of tax | 49 | -20 |
Comprehensive income (loss) | ($227) | $1,129 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $1,126 | $2,398 |
Receivables, less reserve of $4 and $3 | 1,341 | 1,729 |
Inventories | 379 | 357 |
Other current assets | 122 | 109 |
Total current assets | 2,968 | 4,593 |
Equity method investments | 1,100 | 1,113 |
Property, plant and equipment, less accumulated depreciation, depletion and amortization of $22,648 and $21,884 | 29,291 | 29,040 |
Goodwill | 459 | 459 |
Other noncurrent assets | 918 | 806 |
Total assets | 34,736 | 36,011 |
Current liabilities: | ||
Accounts payable | 1,854 | 2,545 |
Payroll and benefits payable | 127 | 191 |
Accrued taxes | 260 | 285 |
Other current liabilities | 252 | 290 |
Long-term debt due within one year | 1,068 | 1,068 |
Total current liabilities | 3,561 | 4,379 |
Long-term debt | 5,326 | 5,323 |
Deferred tax liabilities, noncurrent | 2,437 | 2,486 |
Defined benefit postretirement plan obligations | 515 | 598 |
Asset retirement obligations | 1,949 | 1,917 |
Deferred credits and other liabilities, noncurrent | 288 | 288 |
Total liabilities | 14,076 | 14,991 |
Commitments and contingencies | ||
Stockholders' Equity | ||
Preferred stock - no shares issued or outstanding (no par value, 26 million shares authorized) | 0 | 0 |
Common stock issued - 770 million shares (par value $1 per share, 1.1 billion shares authorized) | 770 | 770 |
Common stock, securities exchangeable into common stock - no shares issued or outstanding (no par value, 29 million shares authorized) | 0 | 0 |
Common stock, held in treasury, at cost - 95 million and 95 million shares | -3,634 | -3,642 |
Additional paid-in capital | 6,532 | 6,531 |
Retained earnings | 17,220 | 17,638 |
Accumulated other comprehensive loss | -228 | -277 |
Total stockholders' equity | 20,660 | 21,020 |
Total liabilities and stockholders' equity | $34,736 | $36,011 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets Parentheticals (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, except Share data, unless otherwise specified | ||
Consolidated Balance Sheets Parenthetical [Abstract] | ||
Allowance for Doubtful Accounts Receivable, Current | $4 | $3 |
Less accumulated depreciation, depletion and amortization | ($22,648) | ($21,895) |
Preferred stock, no par value | $0 | $0 |
Preferred stock shares authorized | 26,000,000 | 26,000,000 |
Preferred stock shares issued | 0 | 0 |
Preferred stock shares outstanding | 0 | 0 |
Common stock, par value per share | $1 | $1 |
Common stock shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 770,000,000 | 770,000,000 |
Common stock, securities exchangeable, no par value | $0 | $0 |
Common stock, securities exchangeable, shares authorized | 29,000,000 | 29,000,000 |
Common stock, securities exchangeable, shares issued | 0 | 0 |
Common stock, securities exchangeable, shares outstanding | 0 | 0 |
Common stock, held in treasury, shares | 95,000,000 | 95,000,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating activities: | ||
Net income (loss) | ($276) | $1,149 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Discontinued operations | 0 | -751 |
Deferred income taxes | -179 | 89 |
Depreciation, depletion and amortization | 821 | 643 |
Impairments | 0 | 17 |
Pension and other postretirement benefits, net | -7 | 19 |
Exploratory dry well costs and unproved property impairments | 67 | 43 |
Net gain on disposal of assets | 1 | 2 |
Equity method investments, net | 3 | -42 |
Changes in: | ||
Current receivables, changes in | 388 | -69 |
Inventories, changes in | -22 | -41 |
Current accounts payable and accrued liabilities, changes in | -469 | 33 |
All other operating, net | -16 | -19 |
Net cash provided by continuing operations | 309 | 1,069 |
Net cash provided by discontinued operations | 0 | 401 |
Net cash provided by operating activities | 309 | 1,470 |
Investing activities: | ||
Additions to property, plant and equipment | -1,452 | -1,004 |
Disposal of assets | 2 | 2,123 |
Investments - return of capital | 10 | 20 |
Investing activities of discontinued operations | 0 | -96 |
All other investing, net | -2 | 5 |
Net cash provided by (used in) investing activities | -1,442 | 1,048 |
Financing activities: | ||
Commercial paper, net | 0 | -135 |
Purchases of common stock | 0 | -551 |
Dividends paid | -142 | -133 |
All other financing, net | 4 | 9 |
Net cash used in financing activities | -138 | -810 |
Effect of Exchange Rate on Cash and Cash Equivalents, Continuing Operations | -1 | 0 |
Effect of Exchange Rate on Cash and Cash Equivalents, Discontinued Operations | 0 | -8 |
Net increase (decrease) in cash and cash equivalents | -1,272 | 1,700 |
Cash and cash equivalents at beginning of period | 2,398 | 264 |
Cash and cash equivalents at end of period | $1,126 | $1,964 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation [Text Block] | Basis of Presentation |
These consolidated financial statements are unaudited; however, in the opinion of management, these statements reflect all adjustments necessary for a fair statement of the results for the periods reported. All such adjustments are of a normal recurring nature unless disclosed otherwise. These consolidated financial statements, including notes, have been prepared in accordance with the applicable rules of the Securities and Exchange Commission ("SEC") and do not include all of the information and disclosures required by accounting principles generally accepted in the United States ("U.S. GAAP") for complete financial statements. | |
As a result of the sale of our Angola assets and our Norway business in 2014, both are reflected as discontinued operations. The disclosures in this report related to results of operations and cash flows are presented on the basis of continuing operations, unless otherwise noted. | |
These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Marathon Oil Corporation 2014 Annual Report on Form 10-K. The results of operations for the first quarter of 2015 are not necessarily indicative of the results to be expected for the full year. |
Accounting_Standards
Accounting Standards | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Standards Disclosure [Abstract] | |
Accounting Standards [Text Block] | Accounting Standards |
Not Yet Adopted | |
In April 2015, the FASB issued an update that requires debt issuance costs to be presented in the balance sheet as a direct reduction from the associated debt liability. This standard is effective for us in the first quarter of 2016 and will be applied on a retrospective basis. Early adoption is permitted, including in interim periods. We do not expect the adoption of this standard to have a significant impact on our consolidated results of operations, financial position or cash flows. | |
In February 2015, the FASB issued an amendment to the guidance for determining whether an entity is a variable interest entity ("VIE"). The standard does not add or remove any of the five characteristics that determine if an entity is a VIE. However, it does change the manner in which a reporting entity assesses one of the characteristics. In particular, when decision-making over the entity’s most significant activities has been outsourced, the standard changes how a reporting entity assesses if the equity holders at risk lack decision making rights. This standard is effective for us in the first quarter of 2016 and early adoption is permitted, including in interim periods. We do not expect the adoption of this standard to have a significant impact on our consolidated results of operations, financial position or cash flows. | |
In August 2014, the FASB issued an update that requires management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in United States ("U.S.") auditing standards. This standard is effective for us in the first quarter of 2017 and early adoption is permitted. We do not expect the adoption of this standard to have a significant impact on our consolidated results of operations, financial position or cash flows. | |
In May 2014, the FASB issued an update that supersedes the existing revenue recognition requirements. This standard includes a five-step revenue recognition model to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. Among other things, the standard also eliminates industry-specific revenue guidance, requires enhanced disclosures about revenue, provides guidance for transactions that were not previously addressed comprehensively, and improves guidance for multiple-element arrangements. This standard is effective for us in the first quarter of 2017 and should be applied retrospectively to each prior reporting period presented or with the cumulative effect of initially applying the update recognized at the date of initial application. Early adoption is not permitted. We are evaluating the provisions of this accounting standards update and assessing the impact, if any, it may have on our consolidated results of operations, financial position or cash flows. | |
Recently Adopted | |
In April 2014, the FASB issued an amendment to accounting standards that changes the criteria for reporting discontinued operations while enhancing related disclosures. Under the amendment, only disposals representing a strategic shift in operations should be presented as discontinued operations. Expanded disclosures about the assets, liabilities, income and expenses of discontinued operations are required. In addition, disclosure of the pretax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting will be made in order to provide users with information about the ongoing trends in an organization’s results from continuing operations. The amendments were effective for us in the first quarter of 2015 and apply to dispositions or classifications as held for sale thereafter. Adoption of this standard did not impact our consolidated results of operations, financial position or cash flows. |
Variable_Interest_Entity
Variable Interest Entity | 3 Months Ended |
Mar. 31, 2015 | |
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | |
Variable Interest Entity [Text Block] | Variable Interest Entity |
The owners of the Athabasca Oil Sands Project ("AOSP"), in which we hold a 20% undivided interest, contracted with a wholly owned subsidiary of a publicly traded Canadian limited partnership (“Corridor Pipeline”) to provide materials transportation capabilities among the Muskeg River and Jackpine mines, the Scotford upgrader and markets in Edmonton, Alberta, Canada. Costs under this contract are accrued and recorded on a monthly basis, with current liabilities of $1 million recorded at March 31, 2015 and $3 million at December 31, 2014. This contract qualifies as a variable interest contractual arrangement, and the Corridor Pipeline qualifies as a VIE. We hold a variable interest but are not the primary beneficiary because our shipments are only 20% of the total; therefore, the Corridor Pipeline is not consolidated by us. Our maximum exposure to loss as a result of our involvement with this VIE is the amount we expect to pay over the contract term, which was $506 million as of March 31, 2015. The liability on our books related to this contract at any given time will reflect amounts due for the immediately previous month’s activity, which is substantially less than the maximum exposure over the contract term. |
Income_per_Common_Share
Income per Common Share | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Income per Common Share [Text Block] | Income (Loss) per Common Share | |||||||
Basic income (loss) per share is based on the weighted average number of common shares outstanding. Diluted income (loss) per share assumes exercise of stock options, provided the effect is not antidilutive. The per share calculations below exclude 13 million and 5 million stock options for the first three months of 2015 and 2014 that were antidilutive. | ||||||||
Three Months Ended March 31, | ||||||||
(In millions, except per share data) | 2015 | 2014 | ||||||
Income (loss) from continuing operations | $ | (276 | ) | $ | 398 | |||
Discontinued operations | — | 751 | ||||||
Net income (loss) | $ | (276 | ) | $ | 1,149 | |||
Weighted average common shares outstanding | 675 | 693 | ||||||
Effect of dilutive securities | — | 3 | ||||||
Weighted average common shares, diluted | 675 | 696 | ||||||
Per basic share: | ||||||||
Income (loss) from continuing operations | $ | (0.41 | ) | $ | 0.58 | |||
Discontinued operations | $ | — | $ | 1.08 | ||||
Net income (loss) | $ | (0.41 | ) | $ | 1.66 | |||
Per diluted share: | ||||||||
Income (loss) from continuing operations | $ | (0.41 | ) | $ | 0.57 | |||
Discontinued operations | $ | — | $ | 1.08 | ||||
Net income (loss) | $ | (0.41 | ) | $ | 1.65 | |||
Dispositions
Dispositions | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Discontinued Operations and Disposal Groups [Abstract] | ||||
Dispositions [Text Block] | Dispositions | |||
2014 - International E&P Segment | ||||
In the second quarter of 2014, we entered into an agreement to sell our Norway business, including the operated Alvheim floating production, storage and offloading vessel, 10 operated licenses and a number of non-operated licenses on the Norwegian Continental Shelf in the North Sea. The transaction closed during the fourth quarter of 2014. | ||||
Our Norway business was reflected as discontinued operations in the consolidated statements of income and the consolidated statements of cash flows for 2014. Select amounts reported in discontinued operations follow: | ||||
Three Months Ended March 31, | ||||
(In millions) | 2014 | |||
Revenues applicable to discontinued operations | $ | 680 | ||
Pretax income from discontinued operations | $ | 532 | ||
After-tax income from discontinued operations | $ | 142 | ||
In the first quarter of 2014, we closed the sales of our non-operated 10% working interests in the Production Sharing Contracts and Joint Operating Agreements for Angola Blocks 31 and 32 for aggregate proceeds of approximately $2 billion and recorded a $576 million after-tax gain on sale. Included in the after-tax gain is a deferred tax benefit reflecting our ability to utilize foreign tax credits that otherwise would have needed a valuation allowance. | ||||
Our Angola operations are reflected as discontinued operations in the consolidated statements of income and the consolidated statements of cash flows for the prior period. Select amounts reported in discontinued operations follow: | ||||
Three Months Ended March 31, | ||||
(In millions) | 2014 | |||
Revenues applicable to discontinued operations | $ | 58 | ||
Pretax income from discontinued operations, before gain | $ | 51 | ||
Pretax gain on disposition of discontinued operations | $ | 470 | ||
After-tax income from discontinued operations | $ | 609 | ||
Segment_Information
Segment Information | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||
Segment Information [Text Block] | Segment Information | |||||||||||||||||||
We are a global energy company with operations in North America, Europe and Africa. Each of our three reportable operating segments is organized and managed based upon both geographic location and the nature of the products and services it offers. | ||||||||||||||||||||
• | North America E&P ("N.A. E&P") – explores for, produces and markets crude oil and condensate, natural gas liquids ("NGLs") and natural gas in North America; | |||||||||||||||||||
• | International E&P ("Int'l E&P") – explores for, produces and markets crude oil and condensate, NGLs and natural gas outside of North America and produces and markets products manufactured from natural gas, such as LNG and methanol, in Equatorial Guinea ("E.G."); and | |||||||||||||||||||
• | Oil Sands Mining (“OSM”) – mines, extracts and transports bitumen from oil sands deposits in Alberta, Canada, and upgrades the bitumen to produce and market synthetic crude oil and vacuum gas oil. | |||||||||||||||||||
Information regarding assets by segment is not presented because it is not reviewed by the chief operating decision maker (“CODM”). Segment income represents income from continuing operations excluding certain items not allocated to segments, net of income taxes attributable to the operating segments. Our corporate and operations support general and administrative costs are not allocated to the operating segments. These costs primarily consist of employment costs (including pension effects), professional services, facilities and other costs associated with corporate and operations support activities. Gains or losses on dispositions, certain impairments, unrealized gains or losses on crude oil derivative instruments, or other items that affect comparability (as determined by the CODM) also are not allocated to operating segments. | ||||||||||||||||||||
As discussed in Note 5, as a result of the sale of our Angola assets and our Norway business in 2014, both are reflected as discontinued operations and excluded from the International E&P segment for 2014. | ||||||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||
Not Allocated | ||||||||||||||||||||
(In millions) | N.A. E&P | Int'l E&P | OSM | to Segments | Total | |||||||||||||||
Sales and other operating revenues | $ | 850 | $ | 182 | $ | 225 | $ | 23 | (c) | $ | 1,280 | |||||||||
Marketing revenues | 178 | 26 | — | — | 204 | |||||||||||||||
Total revenues | 1,028 | 208 | 225 | 23 | 1,484 | |||||||||||||||
Income from equity method investments | — | 36 | — | — | 36 | |||||||||||||||
Net gain on disposal of assets and other income | — | 10 | 1 | 1 | 12 | |||||||||||||||
Less: | ||||||||||||||||||||
Production expenses | 202 | 67 | 175 | — | 444 | |||||||||||||||
Marketing costs | 180 | 25 | — | — | 205 | |||||||||||||||
Exploration expenses | 35 | 55 | — | — | 90 | |||||||||||||||
Depreciation, depletion and amortization | 683 | 64 | 62 | 12 | 821 | |||||||||||||||
Other expenses (a) | 117 | 23 | 9 | 129 | (d) | 278 | ||||||||||||||
Taxes other than income | 61 | — | 5 | 1 | 67 | |||||||||||||||
Net interest and other | — | — | — | 47 | 47 | |||||||||||||||
Income tax benefit | (89 | ) | (3 | ) | (6 | ) | (46 | ) | (144 | ) | ||||||||||
Segment income (loss) /Income (loss) from continuing operations | $ | (161 | ) | $ | 23 | $ | (19 | ) | $ | (119 | ) | $ | (276 | ) | ||||||
Capital expenditures (b) | $ | 933 | $ | 146 | $ | 21 | $ | 2 | $ | 1,102 | ||||||||||
(a) | Includes other operating expenses and general and administrative expenses. | |||||||||||||||||||
(b) | Includes accruals. | |||||||||||||||||||
(c) | Unrealized gain on crude oil derivative instruments. | |||||||||||||||||||
(d) | Includes $43 million of severance related expenses associated with a workforce reduction and a pension settlement loss of $17 million. | |||||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||
Not Allocated | ||||||||||||||||||||
(In millions) | N.A. E&P | Int'l E&P | OSM | to Segments | Total | |||||||||||||||
Sales and other operating revenues | $ | 1,392 | $ | 380 | $ | 377 | $ | — | $ | 2,149 | ||||||||||
Marketing revenues | 440 | 70 | 31 | — | 541 | |||||||||||||||
Total revenues | 1,832 | 450 | 408 | — | 2,690 | |||||||||||||||
Income from equity method investments | — | 137 | — | — | 137 | |||||||||||||||
Net gain on disposal of assets and other income | 3 | 17 | 2 | — | 22 | |||||||||||||||
Less: | ||||||||||||||||||||
Production expenses | 211 | 100 | 231 | — | 542 | |||||||||||||||
Marketing costs | 440 | 71 | 31 | — | 542 | |||||||||||||||
Exploration expenses | 57 | 16 | — | — | 73 | |||||||||||||||
Depreciation, depletion and amortization | 515 | 71 | 45 | 12 | 643 | |||||||||||||||
Impairments | 17 | — | — | — | 17 | |||||||||||||||
Other expenses (a) | 110 | 38 | 13 | 129 | (c) | 290 | ||||||||||||||
Taxes other than income | 90 | — | 5 | — | 95 | |||||||||||||||
Net interest and other | — | — | — | 49 | 49 | |||||||||||||||
Income tax provision (benefit) | 153 | 87 | 21 | (61 | ) | 200 | ||||||||||||||
Segment income/Income from continuing operations | $ | 242 | $ | 221 | $ | 64 | $ | (129 | ) | $ | 398 | |||||||||
Capital expenditures (b) | $ | 867 | $ | 105 | $ | 68 | $ | 3 | $ | 1,043 | ||||||||||
(a)Includes other operating expenses and general and administrative expenses. | ||||||||||||||||||||
(b)Includes accruals. | ||||||||||||||||||||
(c) Includes pension settlement loss of $63 million | ||||||||||||||||||||
Defined_Benefit_Postretirement
Defined Benefit Postretirement Plans | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Defined Benefit Postretirement Plans Disclosure [Abstract] | ||||||||||||||||
Defined Benefit Postretirement Plans [Text Block] | Defined Benefit Postretirement Plans | |||||||||||||||
The following summarizes the components of net periodic benefit cost: | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||
(In millions) | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Service cost | $ | 12 | $ | 12 | $ | 1 | $ | 1 | ||||||||
Interest cost | 14 | 16 | 3 | 3 | ||||||||||||
Expected return on plan assets | (19 | ) | (18 | ) | — | — | ||||||||||
Amortization: | ||||||||||||||||
– prior service cost (credit) | 1 | 1 | (1 | ) | (1 | ) | ||||||||||
– actuarial loss | 7 | 6 | — | — | ||||||||||||
Net settlement loss (a) | 17 | 63 | — | — | ||||||||||||
Net curtailment loss (gain) (b) | 1 | — | (6 | ) | — | |||||||||||
Net periodic benefit cost (credit) | $ | 33 | $ | 80 | $ | (3 | ) | $ | 3 | |||||||
(a) | Settlements are recognized as they occur, once it is probable that lump sum payments from a plan for a given year will exceed the plan's total service and interest cost for that year. | |||||||||||||||
(b) | Related to the workforce reduction, which reduced the future expected years of service for employees participating in the plans. | |||||||||||||||
During the first quarter of 2015, we recorded the effects of a workforce reduction and a pension plan amendment. The pension plan amendment freezes the final average pay used to calculate the formula benefit and is effective July 6, 2015. Additionally, during the first quarter of 2015 and 2014, we recorded the effects of partial settlements of our U.S. pension plans. As required, we remeasured the plans' assets and liabilities as of the applicable balance sheet dates. The cumulative effects of these events are included in the remeasurement and reflected in both the pension liability and net periodic benefit cost (credit). | ||||||||||||||||
During the first three months of 2015, we made contributions of $23 million to our funded pension plans. We expect to make additional contributions up to an estimated $70 million to our funded pension plans over the remainder of 2015. During the first three months of 2015, we made payments of $12 million and $3 million related to unfunded pension plans and other postretirement benefit plans, respectively. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes |
The effective income tax rate is influenced by a variety of factors including the geographic and functional sources of income and the relative magnitude of these sources of income. The difference between the total provision (benefits) and the sum of the amounts allocated to segments is reported in the “Not Allocated to Segments” column of the tables in Note 6. | |
Our effective income tax rates on continuing operations for the first three months of 2015 and 2014 were 34% and 33%. The tax provision (benefit) applicable to Libyan ordinary income (loss) was recorded as a discrete item in the first three months of 2015 and 2014. Excluding Libya, the effective tax rates on continuing operations would be 31% and 36% for the first three months of 2015 and 2014. In Libya, there remains uncertainty around the timing of future production and sales levels. Reliable estimates of 2015 and 2014 Libyan annual ordinary income from our operations could not be made and the range of possible scenarios in the worldwide annual effective tax rate calculation demonstrates significant variability. Thus, for the first three months of 2015 and 2014, estimated annual effective tax rates were calculated excluding Libya and applied to consolidated ordinary income (loss). |
Inventories
Inventories | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories [Text Block] | Inventories | |||||||
Inventories of liquid hydrocarbons, natural gas and bitumen are carried at the lower of cost or market value. Materials and supplies are valued at weighted average cost and reviewed for obsolescence or impairment when market conditions indicate. | ||||||||
March 31, | December 31, | |||||||
(In millions) | 2015 | 2014 | ||||||
Liquid hydrocarbons, natural gas and bitumen | $ | 54 | $ | 58 | ||||
Supplies and other items | 325 | 299 | ||||||
Inventories, at cost | $ | 379 | $ | 357 | ||||
Property_Plant_and_Equipment
Property, Plant and Equipment | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment [Text Block] | Property, Plant and Equipment, net of Accumulated Depreciation, Depletion and Amortization | |||||||
March 31, | December 31, | |||||||
(In millions) | 2015 | 2014 | ||||||
North America E&P | $ | 16,954 | $ | 16,717 | ||||
International E&P | 2,803 | 2,741 | ||||||
Oil Sands Mining | 9,415 | 9,455 | ||||||
Corporate | 119 | 127 | ||||||
Net property, plant and equipment | $ | 29,291 | $ | 29,040 | ||||
Our Libya operations continue to be impacted by civil unrest and, in December 2014, Libya’s National Oil Corporation once again declared force majeure at the Es Sider oil terminal, as disruptions from civil unrest continue. Considerable uncertainty remains around the timing of future production and sales levels. | ||||||||
As of March 31, 2015, our net property, plant and equipment investment in Libya is $769 million, and total proved reserves (unaudited) in Libya as of December 31, 2014 are 243 mmboe. We and our partners in the Waha concessions continue to assess the situation and the condition of our assets in Libya. Our periodic assessment of the carrying value of our net property, plant and equipment in Libya specifically considers the net investment in the assets, the duration of our concessions and the reserves anticipated to be recoverable in future periods. The undiscounted cash flows related to our Libya assets continues to exceed the carrying value of $769 million by a material amount. | ||||||||
Exploratory well costs capitalized greater than one year after completion of drilling were $126 million as of March 31, 2015 and December 31, 2014. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value Measurements [Text Block] | Fair Value Measurements | |||||||||||||||
Fair Values - Recurring | ||||||||||||||||
The following tables present assets and liabilities accounted for at fair value on a recurring basis as of March 31, 2015 and December 31, 2014 by fair value hierarchy level. | ||||||||||||||||
March 31, 2015 | ||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Derivative instruments, assets | ||||||||||||||||
Commodity | $ | — | $ | 23 | $ | — | $ | 23 | ||||||||
Interest rate | — | 13 | — | 13 | ||||||||||||
Derivative instruments, assets | $ | — | $ | 36 | $ | — | $ | 36 | ||||||||
December 31, 2014 | ||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Derivative instruments, assets | ||||||||||||||||
Interest rate | $ | — | $ | 8 | $ | — | $ | 8 | ||||||||
Derivative instruments, assets | $ | — | $ | 8 | $ | — | $ | 8 | ||||||||
Commodity derivatives include three-way collars and swaptions. Three-way collars and swaptions are measured at fair value using the Black-Scholes Model and the Black Model, respectively. Inputs to both models include prices, interest rates, and implied volatility. The inputs to these models are categorized as Level 2 because predominantly all assumptions and inputs are observable in active markets throughout the term of the instruments. | ||||||||||||||||
Interest rate swaps are measured at fair value with a market approach using actionable broker quotes, which are Level 2 inputs. | ||||||||||||||||
See Note 12 for additional discussion of the types of derivative instruments we use. | ||||||||||||||||
Fair Values - Nonrecurring | ||||||||||||||||
The following table shows the values of assets, by major category, measured at fair value on a nonrecurring basis in periods subsequent to their initial recognition. | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
(In millions) | Fair Value | Impairment | Fair Value | Impairment | ||||||||||||
Long-lived assets held for use | $ | — | $ | — | $ | — | $ | 17 | ||||||||
No impairments were recorded in the first three months of 2015. In the second half of 2014, commodity prices began a substantial decline which persisted into the first quarter of 2015. As this period of sustained reduced commodity prices continues, it could result in non-cash impairment charges related to long-lived assets in future periods. | ||||||||||||||||
The Ozona development in the Gulf of Mexico (held by our North America E&P segment) ceased producing in 2013, at which time those long-lived assets were fully impaired. In the first quarter of 2014, we recorded an additional impairment of $17 million related to Ozona as a result of estimated abandonment cost revisions. The fair value was measured using an income approach based upon forecasted future abandonment costs, which are Level 3 inputs. | ||||||||||||||||
Fair Values – Financial Instruments | ||||||||||||||||
Our current assets and liabilities include financial instruments, the most significant of which are receivables, long-term debt due within one year, and payables. We believe the carrying values of our receivables and payables approximate fair value. Our fair value assessment incorporates a variety of considerations, including (1) the short-term duration of the instruments, (2) our investment-grade credit rating, and (3) our historical incurrence of and expected future insignificant bad debt expense, which includes an evaluation of counterparty credit risk. | ||||||||||||||||
The following table summarizes financial instruments, excluding receivables, payables, and derivative financial instruments, and their reported fair value by individual balance sheet line item at March 31, 2015 and December 31, 2014. | ||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||
Fair | Carrying | Fair | Carrying | |||||||||||||
(In millions) | Value | Amount | Value | Amount | ||||||||||||
Financial assets | ||||||||||||||||
Other noncurrent assets | $ | 135 | $ | 134 | $ | 132 | $ | 129 | ||||||||
Total financial assets | 135 | 134 | 132 | 129 | ||||||||||||
Financial liabilities | ||||||||||||||||
Other current liabilities | 13 | 13 | 13 | 13 | ||||||||||||
Long-term debt, including current portion (a) | 6,980 | 6,361 | 6,887 | 6,360 | ||||||||||||
Deferred credits and other liabilities | 68 | 68 | 69 | 68 | ||||||||||||
Total financial liabilities | $ | 7,061 | $ | 6,442 | $ | 6,969 | $ | 6,441 | ||||||||
(a) Excludes capital leases. | ||||||||||||||||
Fair values of our financial assets included in other noncurrent assets, and of our financial liabilities included in other current liabilities and deferred credits and other liabilities, are measured using an income approach and most inputs are internally generated, which results in a Level 3 classification. Estimated future cash flows are discounted using a rate deemed appropriate to obtain the fair value. | ||||||||||||||||
Most of our long-term debt instruments are publicly-traded. A market approach, based upon quotes from major financial institutions, which are Level 2 inputs, is used to measure the fair value of such debt. The fair value of our debt that is not publicly-traded is measured using an income approach. The future debt service payments are discounted using the rate at which we currently expect to borrow. All inputs to this calculation are Level 3. |
Derivatives
Derivatives | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||
Derivatives [Text Block] | Derivatives | |||||||||||||
For further information regarding the fair value measurement of derivative instruments, see Note 11. All of our interest rate and commodity derivatives are subject to enforceable master netting arrangements or similar agreements under which we may report net amounts. Netting is assessed by counterparty, and as of March 31, 2015 and December 31, 2014, there were no offsetting amounts. The following tables present the gross fair values of derivative instruments and the reported net amounts along with where they appear on the consolidated balance sheets as of March 31, 2015 and December 31, 2014. | ||||||||||||||
31-Mar-15 | ||||||||||||||
(In millions) | Asset | Liability | Net Asset | Balance Sheet Location | ||||||||||
Fair Value Hedges | ||||||||||||||
Interest rate | $ | 13 | $ | — | $ | 13 | Other noncurrent assets | |||||||
Total Designated Hedges | 13 | — | 13 | |||||||||||
Not Designated as Hedges | ||||||||||||||
Commodity | 23 | — | 23 | Other current assets | ||||||||||
Total Not Designated as Hedges | 23 | — | 23 | |||||||||||
Total | $ | 36 | $ | — | $ | 36 | ||||||||
31-Dec-14 | ||||||||||||||
(In millions) | Asset | Liability | Net Asset | Balance Sheet Location | ||||||||||
Fair Value Hedges | ||||||||||||||
Interest rate | $ | 8 | $ | — | $ | 8 | Other noncurrent assets | |||||||
Total Designated Hedges | $ | 8 | $ | — | $ | 8 | ||||||||
Derivatives Designated as Fair Value Hedges | ||||||||||||||
The following table presents, by maturity date, information about our interest rate swap agreements as of March 31, 2015 and December 31, 2014, including the weighted average, London Interbank Offer Rate (“LIBOR”)-based, floating rate. | ||||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||||
Aggregate Notional Amount | Weighted Average, LIBOR-Based, | Aggregate Notional Amount | Weighted Average, LIBOR-Based, | |||||||||||
Maturity Dates | (in millions) | Floating Rate | (in millions) | Floating Rate | ||||||||||
October 1, 2017 | $ | 600 | 4.66 | % | $ | 600 | 4.64 | % | ||||||
March 15, 2018 | $ | 300 | 4.51 | % | $ | 300 | 4.49 | % | ||||||
The pretax effects of derivative instruments designated as hedges of fair value in our consolidated statements of income are summarized in the table below. The foreign currency forwards were used to hedge the current Norwegian tax liability of our Norway business that was sold in the fourth quarter of 2014. Those instruments outstanding were transferred to the purchaser of the Norway business upon closing of the sale. There is no ineffectiveness related to the fair value hedges. | ||||||||||||||
Gain (Loss) | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
(In millions) | Income Statement Location | 2015 | 2014 | |||||||||||
Derivative | ||||||||||||||
Interest rate | Net interest and other | $ | 5 | $ | (1 | ) | ||||||||
Foreign currency | Discontinued operations | $ | — | $ | 3 | |||||||||
Hedged Item | ||||||||||||||
Long-term debt | Net interest and other | $ | (5 | ) | $ | 1 | ||||||||
Accrued taxes | Discontinued operations | $ | — | $ | (3 | ) | ||||||||
Derivatives not Designated as Hedges | ||||||||||||||
During the first quarter of 2015, we entered into crude oil derivatives related to a portion of our forecasted North America E&P sales through December 2015. These commodity derivatives are three-way collars which consist of a sold call (ceiling), a purchased put (floor) and a sold put. The ceiling price is the maximum we will receive for the contract crude oil volumes, the floor is the minimum price we will receive, unless the market price falls below the sold put strike price. In this case, we receive the New York Mercantile Exchange ("NYMEX") West Texas Intermediate ("WTI") price plus the difference between the floor and the sold put price. These commodity derivatives were not designated as hedges and are shown in the table below: | ||||||||||||||
Three-Way Collars | ||||||||||||||
Barrels per day | 25,000 | |||||||||||||
Index | NYMEX WTI | |||||||||||||
Weighted average price per barrel: | ||||||||||||||
Ceiling | $71.67 | |||||||||||||
Floor | $55.00 | |||||||||||||
Sold put | $40.00 | |||||||||||||
Remaining Term (a) | April - December 2015 | |||||||||||||
(a) | Counterparties have the option to execute fixed-price swaps (swaptions) at a weighted average price | |||||||||||||
of $71.67 per barrel indexed to NYMEX WTI, which is exercisable on October 30, 2015. If | ||||||||||||||
counterparties exercise, the term of the fixed-price swaps would be for calendar year 2016 and, if all | ||||||||||||||
such options are exercised, 25,000 barrels per day. | ||||||||||||||
The impact of these commodity derivative instruments appears in sales and other operating revenues and was a net gain of $26 million in the first quarter of 2015. There were no commodity derivative instruments in the first quarter of 2014. |
Incentive_Based_Compensation
Incentive Based Compensation | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Incentive Based Compensation Plans [Abstract] | ||||||||||||||
Incentive Based Compensation [Text Block] | Incentive Based Compensation | |||||||||||||
Stock option and restricted stock awards | ||||||||||||||
The following table presents a summary of stock option and restricted stock award activity for the first three months of 2015: | ||||||||||||||
Stock Options | Restricted Stock | |||||||||||||
Number of | Weighted | Awards | Weighted | |||||||||||
Shares | Average | Average Grant | ||||||||||||
Exercise Price | Date Fair Value | |||||||||||||
Outstanding at December 31, 2014 | 13,427,836 | $29.68 | 3,448,353 | $34.04 | ||||||||||
Granted | 724,082 | (a) | $29.06 | 317,563 | $28.93 | |||||||||
Options Exercised/Stock Vested | (99,441 | ) | $17.36 | (257,390 | ) | $34.94 | ||||||||
Canceled | (272,031 | ) | $34.07 | (414,431 | ) | $33.78 | ||||||||
Outstanding at March 31, 2015 | 13,780,446 | $29.65 | 3,094,095 | $33.48 | ||||||||||
(a) The weighted average grant date fair value of stock option awards granted was $6.84 per share. | ||||||||||||||
Stock-based performance unit awards | ||||||||||||||
During the first three months of 2015, we granted 382,335 stock-based performance units to certain officers. The grant date fair value per unit was $31.77. |
Reclassifications_out_of_Accum
Reclassifications out of Accumulated Other Comprehensive Income | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Reclassifications out of AccumulatedOtherComprehensiveIncome [Abstract] | ||||||||||
Reclassifications Out of Accumulated Other Comprehensive Loss | Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | |||||||||
The following table presents a summary of amounts reclassified from accumulated other comprehensive income (loss) to income (loss) from continuing operations in their entirety: | ||||||||||
Three Months Ended March 31, | ||||||||||
(In millions) | 2015 | 2014 | Income Statement Line | |||||||
Postretirement and postemployment plans | ||||||||||
Amortization of actuarial loss | $ | (7 | ) | $ | (6 | ) | General and administrative | |||
Net settlement loss | (17 | ) | (63 | ) | General and administrative | |||||
Net curtailment gain | 5 | — | General and administrative | |||||||
(19 | ) | (69 | ) | Income (loss) from operations | ||||||
7 | 23 | Benefit for income taxes | ||||||||
Total reclassifications | $ | (12 | ) | $ | (46 | ) | Income (loss) from continuing operations |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Supplemental Cash Flow Information [Abstract] | ||||||||
Supplemental Cash Flow Information [Text Block] | Supplemental Cash Flow Information | |||||||
Three Months Ended March 31, | ||||||||
(In millions) | 2015 | 2014 | ||||||
Net cash provided by (used in) operating activities: | ||||||||
Interest paid (net of amounts capitalized) | $ | (55 | ) | $ | (56 | ) | ||
Income taxes paid to taxing authorities (a) | (47 | ) | (453 | ) | ||||
Net cash provided by (used in) financing activities: | ||||||||
Commercial paper, net: | ||||||||
Issuances | $ | — | $ | 2,235 | ||||
Repayments | — | (2,370 | ) | |||||
Commercial paper, net | — | (135 | ) | |||||
Noncash investing activities, related to continuing operations: | ||||||||
Asset retirement costs capitalized | $ | 21 | $ | 37 | ||||
Asset retirement obligations assumed by buyer | — | 43 | ||||||
Receivable for disposal of assets | — | 44 | ||||||
(a) | Income taxes paid to taxing authorities included $357 million related to discontinued operations in the first three months of 2014 . |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies |
We are a defendant in a number of lawsuits arising in the ordinary course of business, including, but not limited to, royalty claims, contract claims and environmental claims. While the ultimate outcome and impact to us cannot be predicted with certainty, we believe the resolution of these proceedings will not have a material adverse effect on our consolidated financial position, results of operations or cash flows. |
Basis_of_Presentation_Accounti
Basis of Presentation Accounting Policy (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | These consolidated financial statements are unaudited; however, in the opinion of management, these statements reflect all adjustments necessary for a fair statement of the results for the periods reported. All such adjustments are of a normal recurring nature unless disclosed otherwise. These consolidated financial statements, including notes, have been prepared in accordance with the applicable rules of the Securities and Exchange Commission ("SEC") and do not include all of the information and disclosures required by accounting principles generally accepted in the United States ("U.S. GAAP") for complete financial statements. |
As a result of the sale of our Angola assets and our Norway business in 2014, both are reflected as discontinued operations. The disclosures in this report related to results of operations and cash flows are presented on the basis of continuing operations, unless otherwise noted. | |
These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Marathon Oil Corporation 2014 Annual Report on Form 10-K. The results of operations for the first quarter of 2015 are not necessarily indicative of the results to be expected for the full year. |
Income_per_Common_Share_Tables
Income per Common Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The per share calculations below exclude 13 million and 5 million stock options for the first three months of 2015 and 2014 that were antidilutive. | |||||||
Three Months Ended March 31, | ||||||||
(In millions, except per share data) | 2015 | 2014 | ||||||
Income (loss) from continuing operations | $ | (276 | ) | $ | 398 | |||
Discontinued operations | — | 751 | ||||||
Net income (loss) | $ | (276 | ) | $ | 1,149 | |||
Weighted average common shares outstanding | 675 | 693 | ||||||
Effect of dilutive securities | — | 3 | ||||||
Weighted average common shares, diluted | 675 | 696 | ||||||
Per basic share: | ||||||||
Income (loss) from continuing operations | $ | (0.41 | ) | $ | 0.58 | |||
Discontinued operations | $ | — | $ | 1.08 | ||||
Net income (loss) | $ | (0.41 | ) | $ | 1.66 | |||
Per diluted share: | ||||||||
Income (loss) from continuing operations | $ | (0.41 | ) | $ | 0.57 | |||
Discontinued operations | $ | — | $ | 1.08 | ||||
Net income (loss) | $ | (0.41 | ) | $ | 1.65 | |||
Dispositions_Tables
Dispositions (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Discontinued Operations and Disposal Groups [Abstract] | ||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | Select amounts reported in discontinued operations follow: | |||
Three Months Ended March 31, | ||||
(In millions) | 2014 | |||
Revenues applicable to discontinued operations | $ | 680 | ||
Pretax income from discontinued operations | $ | 532 | ||
After-tax income from discontinued operations | $ | 142 | ||
In the first quarter of 2014, we closed the sales of our non-operated 10% working interests in the Production Sharing Contracts and Joint Operating Agreements for Angola Blocks 31 and 32 for aggregate proceeds of approximately $2 billion and recorded a $576 million after-tax gain on sale. Included in the after-tax gain is a deferred tax benefit reflecting our ability to utilize foreign tax credits that otherwise would have needed a valuation allowance. | ||||
Our Angola operations are reflected as discontinued operations in the consolidated statements of income and the consolidated statements of cash flows for the prior period. Select amounts reported in discontinued operations follow: | ||||
Three Months Ended March 31, | ||||
(In millions) | 2014 | |||
Revenues applicable to discontinued operations | $ | 58 | ||
Pretax income from discontinued operations, before gain | $ | 51 | ||
Pretax gain on disposition of discontinued operations | $ | 470 | ||
After-tax income from discontinued operations | $ | 609 | ||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ||||||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||
Not Allocated | ||||||||||||||||||||
(In millions) | N.A. E&P | Int'l E&P | OSM | to Segments | Total | |||||||||||||||
Sales and other operating revenues | $ | 850 | $ | 182 | $ | 225 | $ | 23 | (c) | $ | 1,280 | |||||||||
Marketing revenues | 178 | 26 | — | — | 204 | |||||||||||||||
Total revenues | 1,028 | 208 | 225 | 23 | 1,484 | |||||||||||||||
Income from equity method investments | — | 36 | — | — | 36 | |||||||||||||||
Net gain on disposal of assets and other income | — | 10 | 1 | 1 | 12 | |||||||||||||||
Less: | ||||||||||||||||||||
Production expenses | 202 | 67 | 175 | — | 444 | |||||||||||||||
Marketing costs | 180 | 25 | — | — | 205 | |||||||||||||||
Exploration expenses | 35 | 55 | — | — | 90 | |||||||||||||||
Depreciation, depletion and amortization | 683 | 64 | 62 | 12 | 821 | |||||||||||||||
Other expenses (a) | 117 | 23 | 9 | 129 | (d) | 278 | ||||||||||||||
Taxes other than income | 61 | — | 5 | 1 | 67 | |||||||||||||||
Net interest and other | — | — | — | 47 | 47 | |||||||||||||||
Income tax benefit | (89 | ) | (3 | ) | (6 | ) | (46 | ) | (144 | ) | ||||||||||
Segment income (loss) /Income (loss) from continuing operations | $ | (161 | ) | $ | 23 | $ | (19 | ) | $ | (119 | ) | $ | (276 | ) | ||||||
Capital expenditures (b) | $ | 933 | $ | 146 | $ | 21 | $ | 2 | $ | 1,102 | ||||||||||
(a) | Includes other operating expenses and general and administrative expenses. | |||||||||||||||||||
(b) | Includes accruals. | |||||||||||||||||||
(c) | Unrealized gain on crude oil derivative instruments. | |||||||||||||||||||
(d) | Includes $43 million of severance related expenses associated with a workforce reduction and a pension settlement loss of $17 million. | |||||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||
Not Allocated | ||||||||||||||||||||
(In millions) | N.A. E&P | Int'l E&P | OSM | to Segments | Total | |||||||||||||||
Sales and other operating revenues | $ | 1,392 | $ | 380 | $ | 377 | $ | — | $ | 2,149 | ||||||||||
Marketing revenues | 440 | 70 | 31 | — | 541 | |||||||||||||||
Total revenues | 1,832 | 450 | 408 | — | 2,690 | |||||||||||||||
Income from equity method investments | — | 137 | — | — | 137 | |||||||||||||||
Net gain on disposal of assets and other income | 3 | 17 | 2 | — | 22 | |||||||||||||||
Less: | ||||||||||||||||||||
Production expenses | 211 | 100 | 231 | — | 542 | |||||||||||||||
Marketing costs | 440 | 71 | 31 | — | 542 | |||||||||||||||
Exploration expenses | 57 | 16 | — | — | 73 | |||||||||||||||
Depreciation, depletion and amortization | 515 | 71 | 45 | 12 | 643 | |||||||||||||||
Impairments | 17 | — | — | — | 17 | |||||||||||||||
Other expenses (a) | 110 | 38 | 13 | 129 | (c) | 290 | ||||||||||||||
Taxes other than income | 90 | — | 5 | — | 95 | |||||||||||||||
Net interest and other | — | — | — | 49 | 49 | |||||||||||||||
Income tax provision (benefit) | 153 | 87 | 21 | (61 | ) | 200 | ||||||||||||||
Segment income/Income from continuing operations | $ | 242 | $ | 221 | $ | 64 | $ | (129 | ) | $ | 398 | |||||||||
Capital expenditures (b) | $ | 867 | $ | 105 | $ | 68 | $ | 3 | $ | 1,043 | ||||||||||
(a)Includes other operating expenses and general and administrative expenses. | ||||||||||||||||||||
(b)Includes accruals. | ||||||||||||||||||||
(c) Includes pension settlement loss of $63 million | ||||||||||||||||||||
Defined_Benefit_Postretirement1
Defined Benefit Postretirement Plans (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Defined Benefit Postretirement Plans Disclosure [Abstract] | ||||||||||||||||
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | The following summarizes the components of net periodic benefit cost: | |||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||
(In millions) | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Service cost | $ | 12 | $ | 12 | $ | 1 | $ | 1 | ||||||||
Interest cost | 14 | 16 | 3 | 3 | ||||||||||||
Expected return on plan assets | (19 | ) | (18 | ) | — | — | ||||||||||
Amortization: | ||||||||||||||||
– prior service cost (credit) | 1 | 1 | (1 | ) | (1 | ) | ||||||||||
– actuarial loss | 7 | 6 | — | — | ||||||||||||
Net settlement loss (a) | 17 | 63 | — | — | ||||||||||||
Net curtailment loss (gain) (b) | 1 | — | (6 | ) | — | |||||||||||
Net periodic benefit cost (credit) | $ | 33 | $ | 80 | $ | (3 | ) | $ | 3 | |||||||
(a) | Settlements are recognized as they occur, once it is probable that lump sum payments from a plan for a given year will exceed the plan's total service and interest cost for that year. | |||||||||||||||
(b) | Related to the workforce reduction, which reduced the future expected years of service for employees participating in the plans. | |||||||||||||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Schedule of Inventory, Current [Table Text Block] | Inventories of liquid hydrocarbons, natural gas and bitumen are carried at the lower of cost or market value. Materials and supplies are valued at weighted average cost and reviewed for obsolescence or impairment when market conditions indicate. | |||||||
March 31, | December 31, | |||||||
(In millions) | 2015 | 2014 | ||||||
Liquid hydrocarbons, natural gas and bitumen | $ | 54 | $ | 58 | ||||
Supplies and other items | 325 | 299 | ||||||
Inventories, at cost | $ | 379 | $ | 357 | ||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Schedule Of Property Plant And Equipment [Table Text Block] | ||||||||
March 31, | December 31, | |||||||
(In millions) | 2015 | 2014 | ||||||
North America E&P | $ | 16,954 | $ | 16,717 | ||||
International E&P | 2,803 | 2,741 | ||||||
Oil Sands Mining | 9,415 | 9,455 | ||||||
Corporate | 119 | 127 | ||||||
Net property, plant and equipment | $ | 29,291 | $ | 29,040 | ||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following tables present assets and liabilities accounted for at fair value on a recurring basis as of March 31, 2015 and December 31, 2014 by fair value hierarchy level. | |||||||||||||||
March 31, 2015 | ||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Derivative instruments, assets | ||||||||||||||||
Commodity | $ | — | $ | 23 | $ | — | $ | 23 | ||||||||
Interest rate | — | 13 | — | 13 | ||||||||||||
Derivative instruments, assets | $ | — | $ | 36 | $ | — | $ | 36 | ||||||||
December 31, 2014 | ||||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Derivative instruments, assets | ||||||||||||||||
Interest rate | $ | — | $ | 8 | $ | — | $ | 8 | ||||||||
Derivative instruments, assets | $ | — | $ | 8 | $ | — | $ | 8 | ||||||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Table Text Block] | The following table shows the values of assets, by major category, measured at fair value on a nonrecurring basis in periods subsequent to their initial recognition. | |||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
(In millions) | Fair Value | Impairment | Fair Value | Impairment | ||||||||||||
Long-lived assets held for use | $ | — | $ | — | $ | — | $ | 17 | ||||||||
Fair Value, by Balance Sheet Grouping [Table Text Block] | The following table summarizes financial instruments, excluding receivables, payables, and derivative financial instruments, and their reported fair value by individual balance sheet line item at March 31, 2015 and December 31, 2014. | |||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||
Fair | Carrying | Fair | Carrying | |||||||||||||
(In millions) | Value | Amount | Value | Amount | ||||||||||||
Financial assets | ||||||||||||||||
Other noncurrent assets | $ | 135 | $ | 134 | $ | 132 | $ | 129 | ||||||||
Total financial assets | 135 | 134 | 132 | 129 | ||||||||||||
Financial liabilities | ||||||||||||||||
Other current liabilities | 13 | 13 | 13 | 13 | ||||||||||||
Long-term debt, including current portion (a) | 6,980 | 6,361 | 6,887 | 6,360 | ||||||||||||
Deferred credits and other liabilities | 68 | 68 | 69 | 68 | ||||||||||||
Total financial liabilities | $ | 7,061 | $ | 6,442 | $ | 6,969 | $ | 6,441 | ||||||||
(a) Excludes capital leases. |
Derivatives_Tables
Derivatives (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||
Derivatives as they appear on the balance sheet [Table Text Block] | The following tables present the gross fair values of derivative instruments and the reported net amounts along with where they appear on the consolidated balance sheets as of March 31, 2015 and December 31, 2014. | |||||||||||||
31-Mar-15 | ||||||||||||||
(In millions) | Asset | Liability | Net Asset | Balance Sheet Location | ||||||||||
Fair Value Hedges | ||||||||||||||
Interest rate | $ | 13 | $ | — | $ | 13 | Other noncurrent assets | |||||||
Total Designated Hedges | 13 | — | 13 | |||||||||||
Not Designated as Hedges | ||||||||||||||
Commodity | 23 | — | 23 | Other current assets | ||||||||||
Total Not Designated as Hedges | 23 | — | 23 | |||||||||||
Total | $ | 36 | $ | — | $ | 36 | ||||||||
31-Dec-14 | ||||||||||||||
(In millions) | Asset | Liability | Net Asset | Balance Sheet Location | ||||||||||
Fair Value Hedges | ||||||||||||||
Interest rate | $ | 8 | $ | — | $ | 8 | Other noncurrent assets | |||||||
Total Designated Hedges | $ | 8 | $ | — | $ | 8 | ||||||||
Schedule of Interest Rate Derivatives [Table Text Block] | The following table presents, by maturity date, information about our interest rate swap agreements as of March 31, 2015 and December 31, 2014, including the weighted average, London Interbank Offer Rate (“LIBOR”)-based, floating rate. | |||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||||
Aggregate Notional Amount | Weighted Average, LIBOR-Based, | Aggregate Notional Amount | Weighted Average, LIBOR-Based, | |||||||||||
Maturity Dates | (in millions) | Floating Rate | (in millions) | Floating Rate | ||||||||||
October 1, 2017 | $ | 600 | 4.66 | % | $ | 600 | 4.64 | % | ||||||
March 15, 2018 | $ | 300 | 4.51 | % | $ | 300 | 4.49 | % | ||||||
Effects of derivatives designated as fair value hedges [Table Text Block] | The pretax effects of derivative instruments designated as hedges of fair value in our consolidated statements of income are summarized in the table below. The foreign currency forwards were used to hedge the current Norwegian tax liability of our Norway business that was sold in the fourth quarter of 2014. Those instruments outstanding were transferred to the purchaser of the Norway business upon closing of the sale. There is no ineffectiveness related to the fair value hedges. | |||||||||||||
Gain (Loss) | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
(In millions) | Income Statement Location | 2015 | 2014 | |||||||||||
Derivative | ||||||||||||||
Interest rate | Net interest and other | $ | 5 | $ | (1 | ) | ||||||||
Foreign currency | Discontinued operations | $ | — | $ | 3 | |||||||||
Hedged Item | ||||||||||||||
Long-term debt | Net interest and other | $ | (5 | ) | $ | 1 | ||||||||
Accrued taxes | Discontinued operations | $ | — | $ | (3 | ) | ||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | These commodity derivatives were not designated as hedges and are shown in the table below: | |||||||||||||
Three-Way Collars | ||||||||||||||
Barrels per day | 25,000 | |||||||||||||
Index | NYMEX WTI | |||||||||||||
Weighted average price per barrel: | ||||||||||||||
Ceiling | $71.67 | |||||||||||||
Floor | $55.00 | |||||||||||||
Sold put | $40.00 | |||||||||||||
Remaining Term (a) | April - December 2015 | |||||||||||||
(a) | Counterparties have the option to execute fixed-price swaps (swaptions) at a weighted average price | |||||||||||||
of $71.67 per barrel indexed to NYMEX WTI, which is exercisable on October 30, 2015. If | ||||||||||||||
counterparties exercise, the term of the fixed-price swaps would be for calendar year 2016 and, if all | ||||||||||||||
such options are exercised, 25,000 barrels per day. |
Incentive_Based_Compensation_T
Incentive Based Compensation (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Incentive Based Compensation Plans [Abstract] | ||||||||||||||
Table of Incentive based compensation activity [Table Text Block] | The following table presents a summary of stock option and restricted stock award activity for the first three months of 2015: | |||||||||||||
Stock Options | Restricted Stock | |||||||||||||
Number of | Weighted | Awards | Weighted | |||||||||||
Shares | Average | Average Grant | ||||||||||||
Exercise Price | Date Fair Value | |||||||||||||
Outstanding at December 31, 2014 | 13,427,836 | $29.68 | 3,448,353 | $34.04 | ||||||||||
Granted | 724,082 | (a) | $29.06 | 317,563 | $28.93 | |||||||||
Options Exercised/Stock Vested | (99,441 | ) | $17.36 | (257,390 | ) | $34.94 | ||||||||
Canceled | (272,031 | ) | $34.07 | (414,431 | ) | $33.78 | ||||||||
Outstanding at March 31, 2015 | 13,780,446 | $29.65 | 3,094,095 | $33.48 | ||||||||||
(a) The weighted average grant date fair value of stock option awards granted was $6.84 per share. |
Reclassifications_out_of_Accum1
Reclassifications out of Accumulated Other Comprehensive Income Reclassifications out of Accumulated Other Comprehensive Income (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Reclassifications out of AccumulatedOtherComprehensiveIncome [Abstract] | ||||||||||
Schedule of Amounts Reclassified out of Accumulated Other Comprehensive Income [Table Text Block] | The following table presents a summary of amounts reclassified from accumulated other comprehensive income (loss) to income (loss) from continuing operations in their entirety: | |||||||||
Three Months Ended March 31, | ||||||||||
(In millions) | 2015 | 2014 | Income Statement Line | |||||||
Postretirement and postemployment plans | ||||||||||
Amortization of actuarial loss | $ | (7 | ) | $ | (6 | ) | General and administrative | |||
Net settlement loss | (17 | ) | (63 | ) | General and administrative | |||||
Net curtailment gain | 5 | — | General and administrative | |||||||
(19 | ) | (69 | ) | Income (loss) from operations | ||||||
7 | 23 | Benefit for income taxes | ||||||||
Total reclassifications | $ | (12 | ) | $ | (46 | ) | Income (loss) from continuing operations |
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Supplemental Cash Flow Information [Abstract] | ||||||||
Supplemental Cash Flow Information [Table Text Block] | Supplemental Cash Flow Information | |||||||
Three Months Ended March 31, | ||||||||
(In millions) | 2015 | 2014 | ||||||
Net cash provided by (used in) operating activities: | ||||||||
Interest paid (net of amounts capitalized) | $ | (55 | ) | $ | (56 | ) | ||
Income taxes paid to taxing authorities (a) | (47 | ) | (453 | ) | ||||
Net cash provided by (used in) financing activities: | ||||||||
Commercial paper, net: | ||||||||
Issuances | $ | — | $ | 2,235 | ||||
Repayments | — | (2,370 | ) | |||||
Commercial paper, net | — | (135 | ) | |||||
Noncash investing activities, related to continuing operations: | ||||||||
Asset retirement costs capitalized | $ | 21 | $ | 37 | ||||
Asset retirement obligations assumed by buyer | — | 43 | ||||||
Receivable for disposal of assets | — | 44 | ||||||
(a) | Income taxes paid to taxing authorities included $357 million related to discontinued operations in the first three months of 2014 . |
Variable_Interest_Entity_Detai
Variable Interest Entity (Details) (Variable Interest Entity, Not Primary Beneficiary [Member], USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Variable Interest Entity, Not Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 20.00% | |
Recorded liability related to unconsolidated VIE | $1 | $3 |
Maximum exposure to loss related to unconsolidated VIE | $506 |
Income_per_Common_Share_Detail
Income per Common Share (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Income (Loss) from Continuing Operations Attributable to Parent | ($276) | $398 |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 0 | 751 |
Net income (loss) | ($276) | $1,149 |
Weighted average common shares outstanding, basic | 675 | 693 |
Effect of dilutive securities | 0 | 3 |
Weighted average common shares outstanding, diluted | 675 | 696 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 13 | 5 |
Basic: | ||
Income (loss) from continuing operations per basic share | ($0.41) | $0.58 |
Discontinued operations per basic share | $0 | $1.08 |
Net income (loss), per basic share | ($0.41) | $1.66 |
Diluted: | ||
Income (loss) from continuing operations per diluted share | ($0.41) | $0.57 |
Discontinued operations per diluted share | $0 | $1.08 |
Net income (loss), per diluted share | ($0.41) | $1.65 |
Dispositions_Dispositions_Disc
Dispositions Dispositions - Discontinued Ops (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Proceeds from Sale of Oil and Gas Property and Equipment | $2 | $2,123 |
NORWAY | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposal Group, Including Discontinued Operation, Revenue | 680 | |
Discontinued Operation, Income (Loss) from Discontinued Operation During Phase-out Period, before Income Tax | 532 | |
Discontinued Operation, Income (Loss) from Discontinued Operation During Phase-out Period, Net of Tax | 142 | |
ANGOLA | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Interest Percentage | 10.00% | |
Proceeds from Sale of Oil and Gas Property and Equipment | 2,000 | |
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | 576 | |
Disposal Group, Including Discontinued Operation, Revenue | 58 | |
Discontinued Operation, Income (Loss) from Discontinued Operation During Phase-out Period, before Income Tax | 51 | |
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | 470 | |
Discontinued Operation, Income (Loss) from Discontinued Operation During Phase-out Period, Net of Tax | $609 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Segment Reporting Information [Line Items] | ||||
Sales and other operating revenues | $1,280 | $2,149 | ||
Marketing revenues | 204 | 541 | ||
Total revenues | 1,484 | 2,690 | ||
Income from equity method investments | 36 | 137 | ||
Net gain ( loss) on disposal of assets and other income | 12 | 22 | ||
Production expenses | 444 | 542 | ||
Marketing costs | 205 | 542 | ||
Exploration expenses | 90 | 73 | ||
Depreciation, depletion and amortization | 821 | 643 | ||
Impairment of Oil and Gas Properties | 0 | 17 | ||
Other expenses | 278 | [1] | 290 | [1] |
Taxes other than income | 67 | 95 | ||
Net interest and other | 47 | 49 | ||
Income tax provision (benefit) | -144 | 200 | ||
Segment income/Income from continuing operations | -276 | 398 | ||
Capital expenditures | 1,102 | [2] | 1,043 | [2] |
Workforce reduction | 43 | |||
North America Exploration and Production [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales and other operating revenues | 850 | 1,392 | ||
Marketing revenues | 178 | 440 | ||
Total revenues | 1,028 | 1,832 | ||
Income from equity method investments | 0 | 0 | ||
Net gain ( loss) on disposal of assets and other income | 0 | 3 | ||
Production expenses | 202 | 211 | ||
Marketing costs | 180 | 440 | ||
Exploration expenses | 35 | 57 | ||
Depreciation, depletion and amortization | 683 | 515 | ||
Impairment of Oil and Gas Properties | 17 | |||
Other expenses | 117 | [1] | 110 | [1] |
Taxes other than income | 61 | 90 | ||
Net interest and other | 0 | 0 | ||
Income tax provision (benefit) | -89 | 153 | ||
Segment income/Income from continuing operations | -161 | 242 | ||
Capital expenditures | 933 | [2] | 867 | [2] |
International Exploration and Production [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales and other operating revenues | 182 | 380 | ||
Marketing revenues | 26 | 70 | ||
Total revenues | 208 | 450 | ||
Income from equity method investments | 36 | 137 | ||
Net gain ( loss) on disposal of assets and other income | 10 | 17 | ||
Production expenses | 67 | 100 | ||
Marketing costs | 25 | 71 | ||
Exploration expenses | 55 | 16 | ||
Depreciation, depletion and amortization | 64 | 71 | ||
Impairment of Oil and Gas Properties | 0 | |||
Other expenses | 23 | [1] | 38 | [1] |
Taxes other than income | 0 | 0 | ||
Net interest and other | 0 | 0 | ||
Income tax provision (benefit) | -3 | 87 | ||
Segment income/Income from continuing operations | 23 | 221 | ||
Capital expenditures | 146 | [2] | 105 | [2] |
Oil Sands Mining Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales and other operating revenues | 225 | 377 | ||
Marketing revenues | 0 | 31 | ||
Total revenues | 225 | 408 | ||
Income from equity method investments | 0 | 0 | ||
Net gain ( loss) on disposal of assets and other income | 1 | 2 | ||
Production expenses | 175 | 231 | ||
Marketing costs | 0 | 31 | ||
Exploration expenses | 0 | 0 | ||
Depreciation, depletion and amortization | 62 | 45 | ||
Impairment of Oil and Gas Properties | 0 | |||
Other expenses | 9 | [1] | 13 | [1] |
Taxes other than income | 5 | 5 | ||
Net interest and other | 0 | 0 | ||
Income tax provision (benefit) | -6 | 21 | ||
Segment income/Income from continuing operations | -19 | 64 | ||
Capital expenditures | 21 | [2] | 68 | [2] |
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales and other operating revenues | 23 | [3] | 0 | |
Marketing revenues | 0 | 0 | ||
Total revenues | 23 | 0 | ||
Income from equity method investments | 0 | 0 | ||
Net gain ( loss) on disposal of assets and other income | 1 | 0 | ||
Production expenses | 0 | 0 | ||
Marketing costs | 0 | 0 | ||
Exploration expenses | 0 | 0 | ||
Depreciation, depletion and amortization | 12 | 12 | ||
Impairment of Oil and Gas Properties | 0 | |||
Other expenses | 129 | [1],[4] | 129 | [1],[5] |
Taxes other than income | 1 | 0 | ||
Net interest and other | 47 | 49 | ||
Income tax provision (benefit) | -46 | -61 | ||
Segment income/Income from continuing operations | -119 | -129 | ||
Capital expenditures | 2 | [2] | 3 | [2] |
United States and Foreign Pension Plans Defined Benefit [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net settlement loss | $17 | [6] | $63 | [6] |
[1] | Includes other operating expenses and general and administrative expenses. | |||
[2] | Includes accruals. | |||
[3] | Unrealized gain on crude oil derivative instruments. | |||
[4] | Includes $43 million of severance related expenses associated with a workforce reduction and a pension settlement loss of $17 million. | |||
[5] | Includes pension settlement loss of $63 million | |||
[6] | Settlements are recognized as they occur, once it is probable that lump sum payments from a plan for a given year will exceed the plan's total service and interest cost for that year. |
Defined_Benefit_Postretirement2
Defined Benefit Postretirement Plans (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2015 | Mar. 31, 2014 | ||
Pension and Other Postretirement Benefit Contributions [Abstract] | |||||
Pension Contributions | $23 | ||||
Defined Benefit Plan, Benefits Paid | 12 | ||||
Other Postretirement Benefits Payments | 3 | ||||
Scenario, Forecast [Member] | |||||
Pension and Other Postretirement Benefit Contributions [Abstract] | |||||
Defined Benefit Plan, Estimated Future Employer Contributions in Current Fiscal Year | 70 | ||||
United States and Foreign Pension Plans Defined Benefit [Member] | |||||
Defined Benefit Plan Net Periodic Benefit Cost [Line Items] | |||||
Service cost | 12 | 12 | |||
Interest cost | 14 | 16 | |||
Expected return on plan assets | -19 | -18 | |||
Amortization: | |||||
- prior service cost (credit) | 1 | 1 | |||
-actuarial loss (gain) | 7 | 6 | |||
Net settlement loss | 17 | [1] | 63 | [1] | |
Defined Benefit Plan, Curtailments | -1 | [2] | 0 | ||
Net periodic benefit cost | 33 | 80 | |||
Other Postretirement Benefit Plans Defined Benefit [Member] | |||||
Defined Benefit Plan Net Periodic Benefit Cost [Line Items] | |||||
Service cost | 1 | 1 | |||
Interest cost | 3 | 3 | |||
Expected return on plan assets | 0 | 0 | |||
Amortization: | |||||
- prior service cost (credit) | -1 | -1 | |||
-actuarial loss (gain) | 0 | 0 | |||
Net settlement loss | 0 | 0 | |||
Defined Benefit Plan, Curtailments | 6 | [2] | 0 | ||
Net periodic benefit cost | ($3) | $3 | |||
[1] | Settlements are recognized as they occur, once it is probable that lump sum payments from a plan for a given year will exceed the plan's total service and interest cost for that year. | ||||
[2] | Related to the workforce reduction, which reduced the future expected years of service for employees participating in the pla |
Income_Taxes_Details
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Effective Tax Rate Reconciliation [Abstract] | ||
Effective income tax rate excluding Libya | 31.00% | 36.00% |
Effective income tax rate | 34.00% | 33.00% |
Inventories_Details
Inventories (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Liquid hydrocarbons natural gas and bitumen | $54 | $58 |
Supplies and other items | 325 | 299 |
Total inventories, at cost | $379 | $357 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $29,291 | $29,040 |
LIBYAN ARAB JAMAHIRIYA | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 769 | |
Proved Developed and Undeveloped Reserves, Net (BOE) | 243,000,000 | |
North America Exploration and Production [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 16,954 | 16,717 |
International Exploration and Production [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 2,803 | 2,741 |
Oil Sands Mining Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 9,415 | 9,455 |
Corporate [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $119 | $127 |
Property_Plant_and_Equipment_P
Property, Plant and Equipment Property, Plant and Equipment (Details 2) (USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |
Capitalized Exploratory Well Costs that Have Been Capitalized for Period Greater than One Year After Completion of Drilling | $126 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details-Recurring) (Fair Value, Measurements, Recurring [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | ||
Derivative Assets | $36 | $8 |
Commodity Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | ||
Derivative Assets | 23 | |
Interest rate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | ||
Derivative Assets | 13 | 8 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | ||
Derivative Assets | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Commodity Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | ||
Derivative Assets | 0 | |
Fair Value, Inputs, Level 1 [Member] | Interest rate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | ||
Derivative Assets | 0 | 0 |
Fair Value Inputs Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | ||
Derivative Assets | 36 | 8 |
Fair Value Inputs Level 2 [Member] | Commodity Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | ||
Derivative Assets | 23 | |
Fair Value Inputs Level 2 [Member] | Interest rate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | ||
Derivative Assets | 13 | 8 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | ||
Derivative Assets | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Commodity Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | ||
Derivative Assets | 0 | |
Fair Value, Inputs, Level 3 [Member] | Interest rate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | ||
Derivative Assets | $0 | $0 |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2-Nonrecurring) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Financial Statement [Line Items] | ||
Assets, Fair Value Adjustment | $0 | $17 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Financial Statement [Line Items] | ||
Property, Plant, and Equipment, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Assets Held and Used Ozona [Member] | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Financial Statement [Line Items] | ||
Assets, Fair Value Adjustment | $17 |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details 3-Reported) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Fair Value [Member] | ||||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||||
Other noncurrent financial assets | $135 | $132 | ||
Total financial assets | 135 | 132 | ||
Financial liabilities | ||||
Other current financial liabilities | 13 | 13 | ||
Long-term debt, including current portion | 6,980 | [1] | 6,887 | [1] |
Deferred credits and other financial liabilities | 68 | 69 | ||
Financial Liabilities Fair Value Disclosure | 7,061 | 6,969 | ||
Carrying Amount [Member] | ||||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||||
Other noncurrent financial assets | 134 | 129 | ||
Total financial assets | 134 | 129 | ||
Financial liabilities | ||||
Other current financial liabilities | 13 | 13 | ||
Long-term debt, including current portion | 6,361 | [1] | 6,360 | [1] |
Deferred credits and other financial liabilities | 68 | 68 | ||
Financial Liabilities Fair Value Disclosure | $6,442 | $6,441 | ||
[1] | Excludes capital leases. |
Derivatives_DetailsBS
Derivatives (Details-BS) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Derivatives Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $36 | |
Derivative Asset, Fair Value, Gross Liability | 0 | |
Derivative Asset, Fair Value, Net | 36 | |
Designated as Hedging Instrument [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 13 | 8 |
Derivative Asset, Fair Value, Gross Liability | 0 | 0 |
Derivative Asset, Fair Value, Net | 13 | 8 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 23 | |
Derivative Asset, Fair Value, Gross Liability | 0 | |
Derivative Asset, Fair Value, Net | 23 | |
Commodity Contract [Member] | Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 23 | |
Derivative Asset, Fair Value, Gross Liability | 0 | |
Derivative Asset, Fair Value, Net | 23 | |
Fair Value Hedging [Member] | Interest rate [Member] | Other Noncurrent Assets [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 13 | 8 |
Derivative Asset, Fair Value, Gross Liability | 0 | 0 |
Derivative Asset, Fair Value, Net | $13 | $8 |
Derivatives_Details_2Fair_Valu
Derivatives (Details 2-Fair Value Hedges) (Fair Value Hedging [Member], Designated as Hedging Instrument [Member], Interest Rate Contract [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Notes Due 2018 [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $300 | $300 |
Weighted-average, LIBOR-based, floating rate | 4.51% | 4.49% |
Debentures Due 2017 [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $600 | $600 |
Weighted-average, LIBOR-based, floating rate | 4.66% | 4.64% |
Derivatives_Details_3Fair_Valu
Derivatives (Details 3-Fair Value Hedges IS & OCI) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) on Fair Value Hedge Ineffectiveness, Net | $0 | $0 |
Net interest and other [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Change in unrealized gain (loss) on hedged item in fair value hedge | -5,000,000 | 1,000,000 |
Discontinued Operations [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Change in unrealized gain (loss) on hedged item in fair value hedge | 0 | -3,000,000 |
Interest rate [Member] | Net interest and other [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on derivative instruments recognized in income | 5,000,000 | -1,000,000 |
Foreign Exchange Contract [Member] | Discontinued Operations [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on derivative instruments recognized in income | $0 | $3,000,000 |
Derivatives_Derivatives_Detail
Derivatives Derivatives (Details 4-Non Hedges Commodity) (Details) | Mar. 31, 2015 | |
Swaption [Member] | ||
Derivative [Line Items] | ||
Barrels per day (BBL per day) | 25,000 | |
Fixed-price swap (usd per barrel) | 71.67 | |
Three-Way Collars [Member] | ||
Derivative [Line Items] | ||
Barrels per day (BBL per day) | 25,000 | |
Price per barrel ceiling (usd per barrel) | 71.67 | [1] |
Price per barrel floor (usd per barrel) | 55 | |
Price per barrel sold put (usd per barrel) | 40 | |
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjcyNGZiMzZiODZjZjQxZjBiNmU4YWNiYmVmNTY4MGUwfFRleHRTZWxlY3Rpb246MjNDNERFMTk1QTM4OEJCMTRDM0UwQ0RGQkY1OTQ5NzQM} |
Derivatives_Derivatives_Detail1
Derivatives Derivatives (Details 5-Non Hedges) (Details) (Not Designated as Hedging Instrument [Member], Commodity [Member], Sales and other operating revenues [Member], USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Not Designated as Hedging Instrument [Member] | Commodity [Member] | Sales and other operating revenues [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Derivative, Gain (Loss) on Derivative, Net | $26 |
Incentive_Based_Compensation_D
Incentive Based Compensation (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | ||
Stock Options | ||
Beginning year stock option awards | 13,427,836 | |
Granted stock option awards | 724,082 | [1] |
Exercised stock option awards | -99,441 | |
Canceled stock option awards | -272,031 | |
End of period stock option awards | 13,780,446 | |
Beginning year weighted average exercise price | $29.68 | |
Granted weighted average exercise price | $29.06 | |
Exercises weighted average exercise price | $17.36 | |
Canceled weighted average exercise price | $34.07 | |
End of period weighted average exercise price | $29.65 | |
Stock options weighted average grant date fair value | $6.84 | |
[1] | The weighted average grant date fair value of stock option awards granted was $6.84 per share. |
Incentive_Based_Compensation_D1
Incentive Based Compensation (Details 2-Restricted) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Restricted Stock | |
Beginning year unvested restricted stock | 3,448,353 |
Granted restricted stock | 317,563 |
Vested restricted stock | -257,390 |
Forfeited restricted stock | -414,431 |
End of period unvested restricted stock | 3,094,095 |
Beginning year weighted average grant date fair value unvested restricted stock | $34.04 |
Granted restricted stock weighted average grant date fair value restricted stock | $28.93 |
Vested restricted stock weighted average grant date fair value restricted stock | $34.94 |
Forfeited restricted stock weighted average grant date fair value restricted stock | $33.78 |
End of period weighted average grant date fair value unvested restricted stock | $33.48 |
Incentive_Based_Compensation_D2
Incentive Based Compensation (Details 3-Performance) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $33.48 | $34.04 |
Performance Unit [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award Instruments Other Than Options Performance Unit Granted | 382,335 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $31.77 |
Reclassifications_out_of_Accum2
Reclassifications out of Accumulated Other Comprehensive Income Reclassifications out of Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Provision for income taxes | $144 | ($200) | ||
Other insignificant, net of tax | -107 | -103 | ||
Total reclassifications | -276 | 1,149 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization of actuarial loss | -7 | -6 | ||
Net settlement loss | -17 | -63 | ||
Net curtailment gain | 5 | 0 | ||
Income before income taxes | -19 | -69 | ||
Provision for income taxes | 7 | 23 | ||
Total reclassifications | -12 | -46 | ||
United States and Foreign Pension Plans Defined Benefit [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net settlement loss | -17 | [1] | -63 | [1] |
Net curtailment gain | ($1) | [2] | $0 | |
[1] | Settlements are recognized as they occur, once it is probable that lump sum payments from a plan for a given year will exceed the plan's total service and interest cost for that year. | |||
[2] | Related to the workforce reduction, which reduced the future expected years of service for employees participating in the pla |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Net cash provided by operating activities included: | ||||
Interest paid (net of amounts capitalized) | ($55) | ($56) | ||
Income taxes paid to taxing authorities | -47 | [1] | -453 | [1] |
Income Taxes Paid Net, Discontinued Operations | 357 | |||
Commercial paper, net: | ||||
Commercial paper - issuances | 0 | 2,235 | ||
Commercial paper - repayments | 0 | -2,370 | ||
Commercial paper, net | 0 | -135 | ||
Noncash investing activities: | ||||
Asset retirement costs capitalized | 21 | 37 | ||
Asset retirement obligations assumed by buyer | 0 | 43 | ||
Receivable Related To Disposal Of Assets | $0 | $44 | ||
[1] | Income taxes paid to taxing authorities included $357 million related to discontinued operations in the first three months of 2014 . |