Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 29, 2016 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,016 | |
Amendment Flag | false | |
Entity Registrant Name | Marathon Oil Corp | |
Entity Central Index Key | 101,778 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Well Known Seasoned Issuer | Yes | |
Entity Common Stock Shares Outstanding | 847,648,273 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues and other income: | ||
Sales and other operating revenues, including related party | $ 714 | $ 1,280 |
Marketing revenues | 58 | 204 |
Income from equity method investments | 14 | 36 |
Net gain (loss) on disposal of assets | (60) | 1 |
Other income | 4 | 11 |
Total revenues and other income | 730 | 1,532 |
Costs and expenses: | ||
Production | 328 | 444 |
Marketing, including purchases from related parties | 58 | 205 |
Other operating | 109 | 107 |
Exploration | 24 | 90 |
Depreciation, depletion and amortization | 609 | 821 |
Impairments | 1 | 0 |
Taxes other than income | 48 | 67 |
General and administrative | 151 | 171 |
Total costs and expenses | 1,328 | 1,905 |
Income (loss) from operations | (598) | (373) |
Net interest and other | (85) | (47) |
Income (loss) before income taxes | (683) | (420) |
Provision (benefit) for income taxes | (276) | (144) |
Income (loss) from operations | (407) | (276) |
Net income (loss) | $ (407) | $ (276) |
Basic: | ||
Net income (loss), per basic share | $ (0.56) | $ (0.41) |
Diluted: | ||
Net income (loss), per diluted share | (0.56) | (0.41) |
Dividends paid, per share | $ 0.05 | $ 0.21 |
Weighted average common shares outstanding, basic | 730 | 675 |
Weighted average common shares outstanding, diluted | 730 | 675 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ (407) | $ (276) |
Postretirement and postemployment plans | ||
Change in actuarial loss and other | (24) | 76 |
Income tax benefit (provision) on postretirement and postemployment plans | 9 | (27) |
Postretirement and postemployment plans, net of tax | (15) | 49 |
Comprehensive loss | $ (422) | $ (227) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 2,072 | $ 1,221 |
Receivables, less reserve of $4 and $4 | 779 | 912 |
Inventories | 306 | 313 |
Other current assets | 111 | 144 |
Total current assets | 3,268 | 2,590 |
Equity method investments | 959 | 1,003 |
Property, plant and equipment, less accumulated depreciation, depletion and amortization of $22,763 and $23,260 | 26,737 | 27,061 |
Goodwill | 115 | 115 |
Other noncurrent assets | 1,789 | 1,542 |
Total assets | 32,868 | 32,311 |
Current liabilities: | ||
Accounts payable | 1,084 | 1,313 |
Payroll and benefits payable | 79 | 133 |
Accrued taxes | 151 | 132 |
Other current liabilities | 211 | 150 |
Long-term debt due within one year | 1 | 1 |
Total current liabilities | 1,526 | 1,729 |
Long-term debt | 7,280 | 7,276 |
Deferred tax liabilities | 2,368 | 2,441 |
Defined benefit postretirement plan obligations | 446 | 403 |
Asset retirement obligations | 1,614 | 1,601 |
Deferred credit and other liabilities | 283 | 308 |
Total liabilities | $ 13,517 | $ 13,758 |
Commitments and contingencies | ||
Stockholders' Equity | ||
Preferred stock - no shares issued or outstanding (no par value, 26 million shares authorized) | $ 0 | $ 0 |
Common stock issued - 937 million and 770 million shares (par value $1 per share, 1.1 billion shares authorized) | 937 | 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 - 89 million and 93 million shares | (3,397) | (3,554) |
Additional paid-in capital | 7,428 | 6,498 |
Retained earnings | 14,533 | 14,974 |
Accumulated other comprehensive loss | (150) | (135) |
Total stockholders' equity | 19,351 | 18,553 |
Total liabilities and stockholders' equity | $ 32,868 | $ 32,311 |
Consolidated Balance Sheets Par
Consolidated Balance Sheets Parentheticals - USD ($) shares in Millions, $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Consolidated Balance Sheets Parenthetical [Abstract] | ||
Allowance for Doubtful Accounts Receivable, Current | $ 4 | $ 4 |
Less accumulated depreciation, depletion and amortization | $ (22,763) | $ (23,260) |
Preferred stock, no par value | $ 0 | $ 0 |
Preferred stock shares authorized | 26 | 26 |
Preferred stock shares issued | 0 | 0 |
Preferred stock shares outstanding | 0 | 0 |
Common stock, par value per share | $ 1 | $ 1 |
Common stock shares authorized | 1,100 | 1,100 |
Common stock, shares issued | 937 | 770 |
Common stock, securities exchangeable, no par value | $ 0 | $ 0 |
Common stock, securities exchangeable, shares authorized | 29 | 29 |
Common stock, securities exchangeable, shares issued | 0 | 0 |
Common stock, securities exchangeable, shares outstanding | 0 | 0 |
Common stock, held in treasury, shares | 89 | 93 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating activities: | ||
Net income (loss) | $ (407) | $ (276) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Deferred income taxes | (320) | (179) |
Depreciation, depletion and amortization | 609 | 821 |
Impairments | 1 | 0 |
Pension and other postretirement benefits, net | 14 | (7) |
Exploratory dry well costs and unproved property impairments | 11 | 67 |
Net (gain) loss on disposal of assets | 60 | (1) |
Equity method investments, net | 30 | 3 |
Changes in: | ||
Current receivables, changes in | 133 | 388 |
Inventories, changes in | 7 | (22) |
Current accounts payable and accrued liabilities, changes in | (121) | (469) |
All other operating, net | 57 | (16) |
Net Cash Provided by (Used in) Continuing Operations | 74 | 309 |
Investing activities: | ||
Additions to property, plant and equipment | (454) | (1,452) |
Disposal of assets | 17 | 2 |
Investments - return of capital | 14 | 10 |
All other investing, net | 2 | (2) |
Net Cash Provided by (Used in) Investing Activities, Continuing Operations | (421) | (1,442) |
Financing activities: | ||
Proceeds from Issuance of Common Stock | 1,232 | 0 |
Dividends paid | (34) | (142) |
All other financing, net | 0 | 4 |
Net Cash Provided by (Used in) Financing Activities, Continuing Operations | 1,198 | (138) |
Effect of Exchange Rate on Cash and Cash Equivalents, Continuing Operations | 0 | (1) |
Net increase (decrease) in cash and cash equivalents | 851 | (1,272) |
Cash and cash equivalents at beginning of period | 1,221 | 2,398 |
Cash and cash equivalents at end of period | $ 2,072 | $ 1,126 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
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 SEC and do not include all of the information and disclosures required by U.S. GAAP for complete financial statements. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2015 Annual Report on Form 10-K. The results of operations for the first quarter of 2016 are not necessarily indicative of the results to be expected for the full year. |
Accounting Standards
Accounting Standards | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Standards Disclosure [Abstract] | |
Accounting Standards [Text Block] | Accounting Standards Not Yet Adopted In March 2016, the FASB issued a new accounting standards update that changes several aspects of accounting for share-based payment transactions, including a requirement to recognize all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This standard is effective for us in the first quarter of 2017 and varying transition methods (modified retrospective, retrospective or prospective) should be applied to different provisions of the standard. Early adoption is 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. In February 2016, the FASB issued a new lease accounting standard, which requires lessees to recognize most leases, including operating leases, on the balance sheet as a right of use asset and lease liability. Short-term leases can continue being accounted for off balance sheet based on a policy election. This standard is effective for us in the first quarter of 2019 and should be applied using a modified retrospective approach at the beginning of the earliest period presented in the financial statements. Early adoption is permitted. We are evaluating the provisions of this accounting standards update and assessing the impact it may have on our consolidated results of operations, financial position or cash flows. In January 2016, the FASB issued an accounting standards update that addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. This standard is effective for us in the first quarter of 2018. Early adoption is allowed for certain provisions. 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 July 2015, the FASB issued an update that requires an entity to measure inventory at the lower of cost and net realizable value. This excludes inventory measured using LIFO or the retail inventory method. This standard is effective for us in the first quarter of 2017 and will be applied prospectively. 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 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 U.S. auditing standards. This standard is effective for us for the annual period ending after December 15, 2016 and for annual periods and interim periods thereafter. 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 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 2018 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 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 May 2015, the FASB issued an update that removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendment also removes certain disclosure requirements regarding all investments that are eligible to be measured using the net asset value per share practical expedient and only requires certain disclosures on those investments for which an entity elects to use the net asset value per share expedient. This standard is effective for us in the first quarter of 2016 and was applied on a retrospective basis. This standard only modifies disclosure requirements; as such, there was no 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 whether 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. The adoption of this standard did not have a significant impact on our consolidated results of operations, financial position or cash flows. |
Variable Interest Entity
Variable Interest Entity | 3 Months Ended |
Mar. 31, 2016 | |
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | |
Variable Interest Entity [Text Block] | Variable Interest Entity The owners of the Athabasca Oil Sands Project, 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 $2 million recorded at March 31, 2016 and December 31, 2015. 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 $472 million as of March 31, 2016 . 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, 2016 | |
Earnings Per Share [Abstract] | |
Income per Common Share [Text Block] | Loss) per Common Share Basic income (loss) per share is based on the weighted average number of common shares outstanding. Diluted income per share assumes exercise of stock options, provided the effect is not antidilutive. The per share calculations below exclude 13 million stock options for the first three months of 2016 and 2015 that were antidilutive. Three Months Ended March 31, (In millions, except per share data) 2016 2015 Net income (loss) $ (407 ) $ (276 ) Weighted average common shares outstanding 730 675 Weighted average common shares, diluted 730 675 Net income (loss) per share: Basic $ (0.56 ) $ (0.41 ) Diluted $ (0.56 ) $ (0.41 ) |
Dispositions
Dispositions | 3 Months Ended |
Mar. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Dispositions [Text Block] | Dispositions North America E&P Segment In April 2016, we entered into agreements to sell our Wyoming upstream and midstream assets for proceeds of $870 million , before closing adjustments. The upstream properties are comprised mainly of waterflood developments in the Big Horn and Wind River basins. The midstream assets include the 570-mile Red Butte pipeline. We expect the transaction to close mid-year 2016. In March and April 2016, we entered into separate agreements to sell our 10% working interest in the outside-operated Shenandoah discovery in the Gulf of Mexico, operated natural gas assets in the Piceance basin in Colorado, and certain undeveloped acreage in West Texas for a combined total of approximately $80 million , before closing adjustments. The transactions are expected to close mid-year 2016. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information [Text Block] | Segment Information We have three reportable operating segments. Each of these segments is organized and managed based upon both geographic location and the nature of the products and services it offers. • N.A. E&P – explores for, produces and markets crude oil and condensate, NGLs and natural gas in North America; • 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 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 which excludes certain items not allocated to segments, net of income taxes, attributable to the operating segments. A portion of our corporate and operations support general and administrative costs are not allocated to the operating segments. These unallocated 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, change in tax expense associated with a tax rate change, unrealized gains or losses on commodity derivative instruments, or other items that affect comparability (as determined by the CODM) also are not allocated to operating segments. Three Months Ended March 31, 2016 Not Allocated (In millions) N.A. E&P Int'l E&P OSM to Segments Total Sales and other operating revenues $ 493 $ 96 $ 148 $ (23 ) (c) $ 714 Marketing revenues 31 15 12 — 58 Total revenues 524 111 160 (23 ) 772 Income from equity method investments — 14 — — 14 Net gain (loss) on disposal of assets and other income 1 6 — (63 ) (d) (56 ) Less: Production expenses 134 53 141 — 328 Marketing costs 32 14 12 — 58 Exploration expenses 18 6 — — 24 Depreciation, depletion and amortization 487 50 60 12 609 Impairments 1 — — — 1 Other expenses (a) 118 16 7 119 (e) 260 Taxes other than income 42 — 5 1 48 Net interest and other — — — 85 85 Income tax benefit (112 ) (12 ) (17 ) (135 ) (276 ) Segment income (loss) / Net income (loss) $ (195 ) $ 4 $ (48 ) $ (168 ) $ (407 ) Capital expenditures (b) $ 315 $ 32 $ 9 $ 3 $ 359 (a) Includes other operating expenses and general and administrative expenses. (b) Includes accruals. (c) Unrealized loss on commodity derivative instruments. (d) Related to the net loss on disposal of assets (see Note 5 ). (e) Includes pension settlement loss of $48 million and severance related expenses associated with workforce reductions of $7 million (see Note 7 ). 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) / Net income (loss) $ (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 commodity derivative instruments. (d) Includes $43 million of severance related expenses associated with a workforce reduction and pension settlement loss of $ 17 million (see Note 7 ). |
Defined Benefit Postretirement
Defined Benefit Postretirement Plans | 3 Months Ended |
Mar. 31, 2016 | |
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) 2016 2015 2016 2015 Service cost $ 6 $ 12 $ 1 $ 1 Interest cost 11 14 3 3 Expected return on plan assets (15 ) (19 ) — — Amortization: – prior service cost (credit) (2 ) 1 (1 ) (1 ) – actuarial loss 3 7 — — Net settlement loss (a) 48 17 — — Net curtailment loss (gain) (b) — 1 — (6 ) Net periodic benefit cost $ 51 $ 33 $ 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 workforce reductions, which reduced the future expected years of service for employees participating in the plans. During the first three months of 2016 , we recorded the effects of 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. During the first three months of 2016 , we made contributions of $14 million to our funded pension plans. We expect to make additional contributions up to an estimated $48 million to our funded pension plans over the remainder of 2016 . During the first three months of 2016 , we made payments of $19 million and $5 million related to unfunded pension plans and other postretirement benefit plans, respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Effective Tax Rate 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 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 for the first three months of 2016 and 2015 were 40% and 34% . In Libya, uncertainty remains around the timing of future production and sales levels. Reliable estimates of 2016 and 2015 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, the tax benefit applicable to Libyan ordinary loss was recorded as a discrete item in the first three months of 2016 and 2015 . For the first three months of 2016 and 2015 , estimated annual effective tax rates were calculated excluding Libya and applied to consolidated ordinary income (loss). Excluding Libya, the effective tax rates, would be 39% and 31% for the first three months of 2016 and 2015 . The change was driven by a shift in jurisdictional income. Deferred Tax Assets In connection with our assessment of the realizability of our deferred tax assets, we consider whether it is more likely than not that some portion or all of our deferred tax assets will not be realized. In the event it is more likely than not that some portion or all of our deferred taxes will not be realized, such assets are reduced by a valuation allowance. Future increases to our valuation allowance are possible if our estimates and assumptions (particularly as they relate to downward revisions of our long-term commodity price forecast) are revised such that they reduce estimates of future taxable income during the carryforward period. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories [Text Block] | Inventories Liquid hydrocarbons, natural gas and bitumen are recorded at weighted average cost and carried at the lower of cost or market value. Supplies and other items consist principally of tubular goods and equipment which are valued at weighted average cost and reviewed periodically for obsolescence or impairment when market conditions indicate. March 31, December 31, (In millions) 2016 2015 Liquid hydrocarbons, natural gas and bitumen $ 33 $ 35 Supplies and other items 273 278 Inventories, at cost $ 306 $ 313 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2016 | |
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) 2016 2015 North America E&P $ 14,953 $ 15,226 International E&P 2,521 2,533 Oil Sands Mining 9,148 9,197 Corporate 115 105 Net property, plant and equipment $ 26,737 $ 27,061 Our Libya operations continue to be impacted by civil unrest. Operations were interrupted in mid-2013 as a result of the shutdown of the Es Sider crude oil terminal, and although temporarily re-opened during the second half of 2014, production remains shut-in. Considerable uncertainty remains around the timing of future production and sales levels. As of March 31, 2016 , our net property, plant and equipment investment in Libya is $776 million , and total proved reserves (unaudited) in Libya as of December 31, 2015 are 235 million barrels of oil equivalent ("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 continue to exceed the carrying value of $776 million by a material amount. Exploratory well costs capitalized greater than one year after completion of drilling were $120 million and $85 million as of March 31, 2016 and December 31, 2015 . The $35 million increase primarily relates to the Alba Block Sub Area B offshore Equatorial Guinea where the Rodo well reached total depth in the first quarter of 2015. We have since completed a seismic feasibility study and continue to finalize next steps in the Alba Block Sub Area B exploration program. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 and December 31, 2015 by fair value hierarchy level. March 31, 2016 (In millions) Level 1 Level 2 Level 3 Total Derivative instruments, assets Commodity (a) $ — $ 51 $ — $ 51 Interest rate — 12 — 12 Derivative instruments, assets $ — $ 63 $ — $ 63 Derivative instruments, liabilities Commodity (a) $ — $ 24 $ — $ 24 Derivative instruments, liabilities $ — $ 24 $ — $ 24 (a) Derivative instruments are recorded on a net basis in the company's balance sheet (see Note 12 ). December 31, 2015 (In millions) Level 1 Level 2 Level 3 Total Derivative instruments, assets Commodity (a) $ — $ 51 $ — $ 51 Interest rate $ — $ 8 $ — $ 8 Derivative instruments, assets $ — $ 59 $ — $ 59 Derivative instruments, liabilities Commodity (a) $ — $ 1 $ — $ 1 Derivative instruments, liabilities $ — $ 1 $ — $ 1 (a) Derivative instruments are recorded on a net basis in the company's balance sheet (see Note 12 ). Commodity derivatives include three-way collars, extendable three-way collars, call options, swaps and swaptions. These instruments are measured at fair value using either the Black-Scholes Model or the Black Model. 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 – Goodwill Unlike long-lived assets, goodwill must be tested for impairment at least annually, or between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Goodwill is tested for impairment at the reporting unit level. We estimate the fair value of our International E&P reporting unit using a combination of market and income approaches. The market approach referenced observable inputs specific to us and our industry, such as the price of our common equity, our enterprise value, and valuation multiples of us and our peers for the investor analyst community. The income approach utilized discounted cash flows, which were based on forecasted assumptions. Key assumptions to the income approach include future liquid hydrocarbon and natural gas pricing, estimated quantities of liquid hydrocarbons and natural gas proved and probable reserves, estimated timing of production, discount rates, future capital requirements and operating expenses and tax rates. The assumptions used in the income approach are consistent with those that management uses to make business decisions. These valuations methodologies represent Level 3 fair value measurements. A triggering event related to price declines in our common stock required us to reassess our goodwill for impairment as of March 31, 2016. Based on the results of this assessment, we concluded no impairment was required. While the fair value of our International E&P reporting unit exceeded book value, subsequent commodity price and/or common stock declines may cause us to reassess our goodwill for impairment, and could result in non-cash impairment charges in the future. Fair Values – Financial Instruments Our current assets and liabilities include financial instruments, the most significant of which are receivables, long-term debt 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 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, 2016 and December 31, 2015 . March 31, 2016 December 31, 2015 Fair Carrying Fair Carrying (In millions) Value Amount Value Amount Financial assets Other noncurrent assets $ 115 $ 120 $ 104 $ 118 Total financial assets $ 115 $ 120 $ 104 $ 118 Financial liabilities Other current liabilities $ 34 $ 33 $ 34 $ 33 Long-term debt, including current portion (a) 6,575 7,291 6,723 7,291 Deferred credits and other liabilities 104 105 97 95 Total financial liabilities $ 6,713 $ 7,429 $ 6,854 $ 7,419 (a) Excludes capital leases, debt issuance costs and interest rate swap adjustments. 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, 2016 | |
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. The following tables present the gross fair values of derivative instruments and the reported net amounts where they appear on the consolidated balance sheets. March 31, 2016 (In millions) Asset Liability Net Asset Balance Sheet Location Fair Value Hedges Interest rate $ 12 $ — $ 12 Other noncurrent assets Total Designated Hedges $ 12 $ — $ 12 Not Designated as Hedges Commodity $ 51 $ 7 $ 44 Other current assets Total Not Designated as Hedges $ 51 $ 7 $ 44 Total $ 63 $ 7 $ 56 March 31, 2016 (In millions) Asset Liability Net Liability Balance Sheet Location Not Designated as Hedges Commodity $ — $ 17 $ 17 Deferred credits and other liabilities Total Not Designated as Hedges $ — $ 17 $ 17 Total $ — $ 17 $ 17 December 31, 2015 (In millions) Asset Liability Net Asset Balance Sheet Location Fair Value Hedges Interest rate $ 8 $ — $ 8 Other noncurrent assets Total Designated Hedges $ 8 $ — $ 8 Not Designated as Hedges Commodity $ 51 $ 1 $ 50 Other current assets Total Not Designated as Hedges $ 51 $ 1 $ 50 Total $ 59 $ 1 $ 58 Derivatives Designated as Fair Value Hedges The following table presents, by maturity date, information about our interest rate swap agreements, including the weighted average, London Interbank Offer Rate (“LIBOR”)-based, floating rate. March 31, 2016 December 31, 2015 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 4.92 % $ 600 4.73 % March 15, 2018 $ 300 4.77 % $ 300 4.66 % The pretax effects of derivative instruments designated as hedges of fair value in our consolidated statements of income are summarized in the table below. There is no ineffectiveness related to fair value hedges. Gain (Loss) Three Months Ended March 31, (In millions) Income Statement Location 2016 2015 Derivative Interest rate Net interest and other $ 4 $ 5 Hedged Item Long-term debt Net interest and other $ (4 ) $ (5 ) Derivatives not Designated as Hedges During 2015 and the first quarter of 2016, we entered into multiple crude oil and natural gas derivatives indexed to NYMEX WTI and Henry Hub related to a portion of our forecasted North America E&P sales through December 2017. These commodity derivatives consist of three-way collars, extendable three-way collars, call options, swaps, and swaptions. Three-way collars 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 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 NYMEX WTI/Henry Hub price plus the difference between the floor and the sold put price. These commodity derivatives were not designated as hedges. The following table sets forth outstanding derivative contracts as of March 31, 2016 and the weighted average prices for those contracts: Crude Oil (a) 2016 Year Ending December 31, Second Quarter Third Quarter Fourth Quarter 2017 Three-Way Collars (b) Volume (Bbls/day) 39,000 37,000 37,000 — Price per Bbl: Ceiling $55.47 $54.52 $54.52 — Floor $51.56 $50.83 $50.83 — Sold put $41.67 $41.22 $41.22 — Options (c) Volume (Bbls/day) 10,000 10,000 10,000 25,000 Price per Bbl $72.39 $72.39 $72.39 $60.67 Swaps Volume (Bbls/day) 25,000 — — — Price per Bbl $39.25 — — — (a) Subsequent to March 31, 2016, we entered into 10,000 Bbls/day of two-way collars for July - December 2016 with a ceiling price of $50.00 and a floor price of $ 41.55 . We also entered into 10,000 Bbls/day of 2016 three-way collars for May - December 2016 with a ceiling price of $58.51 , a floor price of $48.00 , and a sold put price of $40.00 , traded in conjunction with sold call options of 10,000 Bbls/day for 2017 at $65.00 . (b) A counterparty has the option, exercisable on June 30, 2016, to extend three-way collars for 2,000 Bbls/day through the remainder of 2016 at a ceiling of $73.13 , floor of $65.00 and sold put of $50.00 . (c) Call options settle monthly. Natural Gas (a) 2016 Year Ending December 31, Second Quarter Third Quarter Fourth Quarter 2017 Three-Way Collars (b) Volume (MMBtu/day) 20,000 20,000 20,000 20,000 Price per MMBtu Ceiling $2.93 $2.93 $2.93 $3.07 Floor $2.50 $2.50 $2.50 $2.75 Sold put $2.00 $2.00 $2.00 $2.25 (a) Subsequent to March 31, 2016, we entered into 20,000 MMBtu/day of 2017 three-way collars with a ceiling price of $3.50 , a floor price of $2.75 , and a sold put price of $2.25 . (b) Counterparty has the option to execute fixed-price swaps (swaptions) at a weighted average price of $2.93 per MMBtu indexed to NYMEX Henry Hub, which is exercisable on December 22, 2016. If counterparty exercises, the term of the fixed-price swaps would be for the calendar year 2017 and, if all such options are exercised, 20,000 MMBtu per day. The impact of these commodity derivative instruments appears in sales and other operating revenues in our consolidated statements of income and was a net loss of $2 million and net gain of $26 million in the first quarter s of 2016 and 2015, respectively. |
Incentive Based Compensation
Incentive Based Compensation | 3 Months Ended |
Mar. 31, 2016 | |
Incentive Based Compensation Plans [Abstract] | |
Incentive Based Compensation [Text Block] | Incentive Based Compensation Stock options, restricted stock awards and restricted stock units The following table presents a summary of activity for the first three months of 2016 : Stock Options Restricted Stock Awards & Units Number of Shares Weighted Average Exercise Price Awards Weighted Average Grant Date Fair Value Outstanding at December 31, 2015 12,665,419 $29.97 4,017,344 $30.76 Granted 1,680,000 (a) $7.22 5,230,708 $7.91 Options Exercised/Stock Vested — — (44,096 ) $32.01 Canceled (181,681 ) $29.69 (220,614 ) $30.00 Outstanding at March 31, 2016 14,163,738 $27.27 8,983,342 $17.47 (a) The weighted average grant date fair value of stock option awards granted was $1.97 per share. Stock-based performance unit awards During the first three months of 2016 , we granted 1,205,517 stock-based performance units to certain officers. The grant date fair value per unit was $3.72 . |
Debt (Notes)
Debt (Notes) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt Revolving Credit Facility As of March 31, 2016 , we had no borrowings against our revolving credit facility (the "Credit Facility"), as described below. In March 2016, we increased our $3.0 billion unsecured Credit Facility by $300 million to a total of $3.3 billion . Fees on the unused commitment of each lender, as well as the borrowing options under the Credit Facility, remain unaffected by the increase. The Credit Facility includes a covenant requiring that our ratio of total debt to total capitalization not exceed 65% as of the last day of each fiscal quarter. If an event of default occurs, the lenders holding more than half of the commitments may terminate the commitments under the Credit Facility and require the immediate repayment of all outstanding borrowings and the cash collateralization of all outstanding letters of credit under the Credit Facility. As of March 31, 2016 , we were in compliance with this covenant with a debt-to-capitalization ratio of 27% . |
Reclassifications out of Accumu
Reclassifications out of Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2016 | |
Reclassifications out of AccumulatedOtherComprehensiveIncome [Abstract] | |
Reclassifications Out of Accumulated Other Comprehensive Loss | Reclassifications Out of Accumulated Other Comprehensive Loss The following table presents a summary of amounts reclassified from accumulated other comprehensive loss: Three Months Ended March 31, (In millions) 2016 2015 Income Statement Line Postretirement and postemployment plans Amortization of actuarial loss $ (3 ) $ (7 ) General and administrative Net settlement loss (48 ) (17 ) General and administrative Net curtailment gain (loss) — 5 General and administrative (51 ) (19 ) Income (loss) from operations 19 7 Provision (benefit) for income taxes Total reclassifications to expense $ (32 ) $ (12 ) Net income (loss) |
Stockholders' Equity (Notes)
Stockholders' Equity (Notes) | 3 Months Ended |
Mar. 31, 2016 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Stockholder's Equity In March 2016, we issued 166,750,000 shares of our common stock, par value $1 per share, at a price of $7.65 per share, excluding underwriting discounts and commissions, for net proceeds of $1,232 million . The proceeds will be used to strengthen our balance sheet and for general corporate purposes, including funding a portion of our Capital Program. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information [Text Block] | Supplemental Cash Flow Information Three Months Ended March 31, (In millions) 2016 2015 Net cash (used in) operating activities: Interest paid (net of amounts capitalized) $ (87 ) $ (55 ) Income taxes paid to taxing authorities (15 ) (47 ) Noncash investing activities: Asset retirement cost increase $ 2 $ 21 Asset retirement obligations assumed by buyer 54 — |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We are a defendant in a number of legal and administrative proceedings arising in the ordinary course of business, including, but not limited to, royalty claims, contract claims, tax disputes 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. |
Subsequent Events (Notes)
Subsequent Events (Notes) | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Event In September 2015, we announced our intention to scale back our conventional exploration program, with future exploration investment focused on fulfilling our existing commitments in the Gulf of Mexico and Gabon. In April 2016, we made the decision not to drill any of our remaining Gulf of Mexico undeveloped leases. As a result, we expect to record a non-cash impairment between $140 million and $150 million in the second quarter of 2016. We retain our existing deepwater drilling rig commitment, in which we have approximately 200 days of contract term remaining. |
Basis of Presentation Accountin
Basis of Presentation Accounting Policy (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
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 SEC and do not include all of the information and disclosures required by U.S. GAAP for complete financial statements. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2015 Annual Report on Form 10-K. The results of operations for the first quarter of 2016 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, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The per share calculations below exclude 13 million stock options for the first three months of 2016 and 2015 that were antidilutive. Three Months Ended March 31, (In millions, except per share data) 2016 2015 Net income (loss) $ (407 ) $ (276 ) Weighted average common shares outstanding 730 675 Weighted average common shares, diluted 730 675 Net income (loss) per share: Basic $ (0.56 ) $ (0.41 ) Diluted $ (0.56 ) $ (0.41 ) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended March 31, 2016 Not Allocated (In millions) N.A. E&P Int'l E&P OSM to Segments Total Sales and other operating revenues $ 493 $ 96 $ 148 $ (23 ) (c) $ 714 Marketing revenues 31 15 12 — 58 Total revenues 524 111 160 (23 ) 772 Income from equity method investments — 14 — — 14 Net gain (loss) on disposal of assets and other income 1 6 — (63 ) (d) (56 ) Less: Production expenses 134 53 141 — 328 Marketing costs 32 14 12 — 58 Exploration expenses 18 6 — — 24 Depreciation, depletion and amortization 487 50 60 12 609 Impairments 1 — — — 1 Other expenses (a) 118 16 7 119 (e) 260 Taxes other than income 42 — 5 1 48 Net interest and other — — — 85 85 Income tax benefit (112 ) (12 ) (17 ) (135 ) (276 ) Segment income (loss) / Net income (loss) $ (195 ) $ 4 $ (48 ) $ (168 ) $ (407 ) Capital expenditures (b) $ 315 $ 32 $ 9 $ 3 $ 359 (a) Includes other operating expenses and general and administrative expenses. (b) Includes accruals. (c) Unrealized loss on commodity derivative instruments. (d) Related to the net loss on disposal of assets (see Note 5 ). (e) Includes pension settlement loss of $48 million and severance related expenses associated with workforce reductions of $7 million (see Note 7 ). 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) / Net income (loss) $ (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 commodity derivative instruments. (d) Includes $43 million of severance related expenses associated with a workforce reduction and pension settlement loss of $ 17 million (see Note 7 ). |
Defined Benefit Postretiremen29
Defined Benefit Postretirement Plans (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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) 2016 2015 2016 2015 Service cost $ 6 $ 12 $ 1 $ 1 Interest cost 11 14 3 3 Expected return on plan assets (15 ) (19 ) — — Amortization: – prior service cost (credit) (2 ) 1 (1 ) (1 ) – actuarial loss 3 7 — — Net settlement loss (a) 48 17 — — Net curtailment loss (gain) (b) — 1 — (6 ) Net periodic benefit cost $ 51 $ 33 $ 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 workforce reductions, which reduced the future expected years of service for employees participating in the plans |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | March 31, December 31, (In millions) 2016 2015 Liquid hydrocarbons, natural gas and bitumen $ 33 $ 35 Supplies and other items 273 278 Inventories, at cost $ 306 $ 313 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule Of Property Plant And Equipment [Table Text Block] | March 31, December 31, (In millions) 2016 2015 North America E&P $ 14,953 $ 15,226 International E&P 2,521 2,533 Oil Sands Mining 9,148 9,197 Corporate 115 105 Net property, plant and equipment $ 26,737 $ 27,061 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 and December 31, 2015 by fair value hierarchy level. March 31, 2016 (In millions) Level 1 Level 2 Level 3 Total Derivative instruments, assets Commodity (a) $ — $ 51 $ — $ 51 Interest rate — 12 — 12 Derivative instruments, assets $ — $ 63 $ — $ 63 Derivative instruments, liabilities Commodity (a) $ — $ 24 $ — $ 24 Derivative instruments, liabilities $ — $ 24 $ — $ 24 (a) Derivative instruments are recorded on a net basis in the company's balance sheet (see Note 12 ). December 31, 2015 (In millions) Level 1 Level 2 Level 3 Total Derivative instruments, assets Commodity (a) $ — $ 51 $ — $ 51 Interest rate $ — $ 8 $ — $ 8 Derivative instruments, assets $ — $ 59 $ — $ 59 Derivative instruments, liabilities Commodity (a) $ — $ 1 $ — $ 1 Derivative instruments, liabilities $ — $ 1 $ — $ 1 |
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, 2016 and December 31, 2015 . March 31, 2016 December 31, 2015 Fair Carrying Fair Carrying (In millions) Value Amount Value Amount Financial assets Other noncurrent assets $ 115 $ 120 $ 104 $ 118 Total financial assets $ 115 $ 120 $ 104 $ 118 Financial liabilities Other current liabilities $ 34 $ 33 $ 34 $ 33 Long-term debt, including current portion (a) 6,575 7,291 6,723 7,291 Deferred credits and other liabilities 104 105 97 95 Total financial liabilities $ 6,713 $ 7,429 $ 6,854 $ 7,419 (a) Excludes capital leases, debt issuance costs and interest rate swap adjustments. |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 where they appear on the consolidated balance sheets. March 31, 2016 (In millions) Asset Liability Net Asset Balance Sheet Location Fair Value Hedges Interest rate $ 12 $ — $ 12 Other noncurrent assets Total Designated Hedges $ 12 $ — $ 12 Not Designated as Hedges Commodity $ 51 $ 7 $ 44 Other current assets Total Not Designated as Hedges $ 51 $ 7 $ 44 Total $ 63 $ 7 $ 56 March 31, 2016 (In millions) Asset Liability Net Liability Balance Sheet Location Not Designated as Hedges Commodity $ — $ 17 $ 17 Deferred credits and other liabilities Total Not Designated as Hedges $ — $ 17 $ 17 Total $ — $ 17 $ 17 December 31, 2015 (In millions) Asset Liability Net Asset Balance Sheet Location Fair Value Hedges Interest rate $ 8 $ — $ 8 Other noncurrent assets Total Designated Hedges $ 8 $ — $ 8 Not Designated as Hedges Commodity $ 51 $ 1 $ 50 Other current assets Total Not Designated as Hedges $ 51 $ 1 $ 50 Total $ 59 $ 1 $ 58 |
Schedule of Interest Rate Derivatives [Table Text Block] | The following table presents, by maturity date, information about our interest rate swap agreements, including the weighted average, London Interbank Offer Rate (“LIBOR”)-based, floating rate. March 31, 2016 December 31, 2015 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 4.92 % $ 600 4.73 % March 15, 2018 $ 300 4.77 % $ 300 4.66 % |
Effects of derivatives designated as fair value hedges [Table Text Block] | Gain (Loss) Three Months Ended March 31, (In millions) Income Statement Location 2016 2015 Derivative Interest rate Net interest and other $ 4 $ 5 Hedged Item Long-term debt Net interest and other $ (4 ) $ (5 ) |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | These commodity derivatives were not designated as hedges. The following table sets forth outstanding derivative contracts as of March 31, 2016 and the weighted average prices for those contracts: Crude Oil (a) 2016 Year Ending December 31, Second Quarter Third Quarter Fourth Quarter 2017 Three-Way Collars (b) Volume (Bbls/day) 39,000 37,000 37,000 — Price per Bbl: Ceiling $55.47 $54.52 $54.52 — Floor $51.56 $50.83 $50.83 — Sold put $41.67 $41.22 $41.22 — Options (c) Volume (Bbls/day) 10,000 10,000 10,000 25,000 Price per Bbl $72.39 $72.39 $72.39 $60.67 Swaps Volume (Bbls/day) 25,000 — — — Price per Bbl $39.25 — — — (a) Subsequent to March 31, 2016, we entered into 10,000 Bbls/day of two-way collars for July - December 2016 with a ceiling price of $50.00 and a floor price of $ 41.55 . We also entered into 10,000 Bbls/day of 2016 three-way collars for May - December 2016 with a ceiling price of $58.51 , a floor price of $48.00 , and a sold put price of $40.00 , traded in conjunction with sold call options of 10,000 Bbls/day for 2017 at $65.00 . (b) A counterparty has the option, exercisable on June 30, 2016, to extend three-way collars for 2,000 Bbls/day through the remainder of 2016 at a ceiling of $73.13 , floor of $65.00 and sold put of $50.00 . (c) Call options settle monthly. Natural Gas (a) 2016 Year Ending December 31, Second Quarter Third Quarter Fourth Quarter 2017 Three-Way Collars (b) Volume (MMBtu/day) 20,000 20,000 20,000 20,000 Price per MMBtu Ceiling $2.93 $2.93 $2.93 $3.07 Floor $2.50 $2.50 $2.50 $2.75 Sold put $2.00 $2.00 $2.00 $2.25 (a) Subsequent to March 31, 2016, we entered into 20,000 MMBtu/day of 2017 three-way collars with a ceiling price of $3.50 , a floor price of $2.75 , and a sold put price of $2.25 . (b) Counterparty has the option to execute fixed-price swaps (swaptions) at a weighted average price of $2.93 per MMBtu indexed to NYMEX Henry Hub, which is exercisable on December 22, 2016. If counterparty exercises, the term of the fixed-price swaps would be for the calendar year 2017 and, if all such options are exercised, 20,000 MMBtu per day. |
Incentive Based Compensation (T
Incentive Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Incentive Based Compensation Plans [Abstract] | |
Table of Incentive based compensation activity [Table Text Block] | The following table presents a summary of activity for the first three months of 2016 : Stock Options Restricted Stock Awards & Units Number of Shares Weighted Average Exercise Price Awards Weighted Average Grant Date Fair Value Outstanding at December 31, 2015 12,665,419 $29.97 4,017,344 $30.76 Granted 1,680,000 (a) $7.22 5,230,708 $7.91 Options Exercised/Stock Vested — — (44,096 ) $32.01 Canceled (181,681 ) $29.69 (220,614 ) $30.00 Outstanding at March 31, 2016 14,163,738 $27.27 8,983,342 $17.47 (a) The weighted average grant date fair value of stock option awards granted was $1.97 per share. |
Reclassifications out of Accu35
Reclassifications out of Accumulated Other Comprehensive Income Reclassifications out of Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 loss: Three Months Ended March 31, (In millions) 2016 2015 Income Statement Line Postretirement and postemployment plans Amortization of actuarial loss $ (3 ) $ (7 ) General and administrative Net settlement loss (48 ) (17 ) General and administrative Net curtailment gain (loss) — 5 General and administrative (51 ) (19 ) Income (loss) from operations 19 7 Provision (benefit) for income taxes Total reclassifications to expense $ (32 ) $ (12 ) Net income (loss) |
Supplemental Cash Flow Inform36
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information [Table Text Block] | Supplemental Cash Flow Information Three Months Ended March 31, (In millions) 2016 2015 Net cash (used in) operating activities: Interest paid (net of amounts capitalized) $ (87 ) $ (55 ) Income taxes paid to taxing authorities (15 ) (47 ) Noncash investing activities: Asset retirement cost increase $ 2 $ 21 Asset retirement obligations assumed by buyer 54 — |
Variable Interest Entity (Detai
Variable Interest Entity (Details) - Variable Interest Entity, Not Primary Beneficiary [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 20.00% | |
Recorded liability related to unconsolidated VIE | $ 2 | $ 2 |
Maximum exposure to loss related to unconsolidated VIE | $ 472 |
Income per Common Share (Detail
Income per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Net income (loss) | $ (407) | $ (276) |
Weighted average common shares outstanding, basic | 730 | 675 |
Weighted average common shares outstanding, diluted | 730 | 675 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 13 | 13 |
Basic: | ||
Net income (loss), per basic share | $ (0.56) | $ (0.41) |
Diluted: | ||
Net income (loss), per diluted share | $ (0.56) | $ (0.41) |
Dispositions Dispositions (Deta
Dispositions Dispositions (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | |
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 | $ 17 | $ 2 | ||
Subsequent Event [Member] | Wyoming Upstream and Midstream Assets [Member] | ||||
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 | $ 870 | |||
Subsequent Event [Member] | Shenandoah in Gulf of Mexico, Piceance in Colorado, and West Texas [Member] | ||||
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 | $ 80 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2016 | Mar. 31, 2015 | ||||
Segment Reporting Information [Line Items] | |||||
Sales and other operating revenues | $ 714 | $ 1,280 | |||
Marketing revenues | 58 | 204 | |||
Total revenues | 772 | 1,484 | |||
Income from equity method investments | 14 | 36 | |||
Net gain ( loss) on disposal of assets and other income | (56) | 12 | |||
Production expenses | 328 | 444 | |||
Marketing costs | 58 | 205 | |||
Exploration Expenses | 24 | 90 | |||
Depreciation, depletion and amortization | 609 | 821 | |||
Impairment of Oil and Gas Properties | 1 | 0 | |||
Other expenses | 260 | [1] | 278 | ||
Taxes other than income | 48 | 67 | |||
Net interest and other | 85 | 47 | |||
Income tax provision (benefit) | (276) | (144) | |||
Segment income (loss) /Loss from continuing operations | (407) | (276) | |||
Capital expenditures | [2] | 359 | 1,102 | ||
North America Exploration and Production [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales and other operating revenues | 493 | 850 | |||
Marketing revenues | 31 | 178 | |||
Total revenues | 524 | 1,028 | |||
Income from equity method investments | 0 | 0 | |||
Net gain ( loss) on disposal of assets and other income | 1 | 0 | |||
Production expenses | 134 | 202 | |||
Marketing costs | 32 | 180 | |||
Exploration Expenses | 18 | 35 | |||
Depreciation, depletion and amortization | 487 | 683 | |||
Impairment of Oil and Gas Properties | 1 | ||||
Other expenses | 118 | [1] | 117 | ||
Taxes other than income | 42 | 61 | |||
Net interest and other | 0 | 0 | |||
Income tax provision (benefit) | (112) | (89) | |||
Segment income (loss) /Loss from continuing operations | (195) | (161) | |||
Capital expenditures | [2] | 315 | 933 | ||
International Exploration and Production [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales and other operating revenues | 96 | 182 | |||
Marketing revenues | 15 | 26 | |||
Total revenues | 111 | 208 | |||
Income from equity method investments | 14 | 36 | |||
Net gain ( loss) on disposal of assets and other income | 6 | 10 | |||
Production expenses | 53 | 67 | |||
Marketing costs | 14 | 25 | |||
Exploration Expenses | 6 | 55 | |||
Depreciation, depletion and amortization | 50 | 64 | |||
Impairment of Oil and Gas Properties | 0 | ||||
Other expenses | 16 | [1] | 23 | ||
Taxes other than income | 0 | 0 | |||
Net interest and other | 0 | 0 | |||
Income tax provision (benefit) | (12) | (3) | |||
Segment income (loss) /Loss from continuing operations | 4 | 23 | |||
Capital expenditures | [2] | 32 | 146 | ||
Oil Sands Mining Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales and other operating revenues | 148 | 225 | |||
Marketing revenues | 12 | 0 | |||
Total revenues | 160 | 225 | |||
Income from equity method investments | 0 | 0 | |||
Net gain ( loss) on disposal of assets and other income | 0 | 1 | |||
Production expenses | 141 | 175 | |||
Marketing costs | 12 | 0 | |||
Exploration Expenses | 0 | 0 | |||
Depreciation, depletion and amortization | 60 | 62 | |||
Impairment of Oil and Gas Properties | 0 | ||||
Other expenses | 7 | [1] | 9 | ||
Taxes other than income | 5 | 5 | |||
Net interest and other | 0 | 0 | |||
Income tax provision (benefit) | (17) | (6) | |||
Segment income (loss) /Loss from continuing operations | (48) | (19) | |||
Capital expenditures | [2] | 9 | 21 | ||
Corporate and Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales and other operating revenues | (23) | [3] | 23 | [4] | |
Marketing revenues | 0 | 0 | |||
Total revenues | (23) | 23 | |||
Income from equity method investments | 0 | 0 | |||
Net gain ( loss) on disposal of assets and other income | (63) | [5] | 1 | ||
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 | [1] | 119 | [6] | 129 | [7] |
Taxes other than income | 1 | 1 | |||
Net interest and other | 85 | 47 | |||
Income tax provision (benefit) | (135) | (46) | |||
Segment income (loss) /Loss from continuing operations | (168) | (119) | |||
Capital expenditures | [2] | 3 | 2 | ||
Workforce reduction | 7 | 43 | |||
United States and Foreign Pension Plans Defined Benefit [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net settlement loss | [8] | 48 | 17 | ||
United States and Foreign Pension Plans Defined Benefit [Member] | Corporate and Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net settlement loss | [8] | $ 48 | $ 17 | ||
[1] | Includes other operating expenses and general and administrative expenses. | ||||
[2] | Includes accruals. | ||||
[3] | Unrealized loss on commodity derivative instruments. | ||||
[4] | Unrealized gain on commodity derivative instruments. | ||||
[5] | Related to the net loss on disposal of assets (see Note 5). | ||||
[6] | Includes pension settlement loss of $48 million and severance related expenses associated with workforce reductions of $7 million (see Note 7). | ||||
[7] | Includes $43 million of severance related expenses associated with a workforce reduction and pension settlement loss of $17 million (see Note 7). | ||||
[8] | Settlements are recognized as they occur, once it is probable that lump sum payments from a plan for a given year will exceed the plan's total service and interest cost for that year. |
Defined Benefit Postretiremen41
Defined Benefit Postretirement Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2016 | ||
Pension and Other Postretirement Benefit Contributions [Abstract] | ||||
Pension Contributions | $ 14 | |||
Defined Benefit Plan, Benefits Paid | 19 | |||
Other Postretirement Benefits Payments | 5 | |||
Scenario, Forecast [Member] | ||||
Pension and Other Postretirement Benefit Contributions [Abstract] | ||||
Defined Benefit Plan, Estimated Future Employer Contributions in Current Fiscal Year | $ 48 | |||
United States and Foreign Pension Plans Defined Benefit [Member] | ||||
Defined Benefit Plan Net Periodic Benefit Cost [Line Items] | ||||
Service cost | 6 | $ 12 | ||
Interest cost | 11 | 14 | ||
Expected return on plan assets | (15) | (19) | ||
Amortization: | ||||
- prior service cost (credit) | (2) | 1 | ||
-actuarial loss (gain) | 3 | 7 | ||
Net settlement loss | [1] | 48 | 17 | |
Defined Benefit Plan, Curtailments | [2] | 0 | 1 | |
Net periodic benefit cost | 51 | 33 | ||
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 | [1] | 0 | 0 | |
Defined Benefit Plan, Curtailments | [2] | 0 | (6) | |
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 workforce reductions, which reduced the future expected years of service for employees participating in the plans |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate Reconciliation, Percent | 40.00% | 34.00% |
Effective income tax rate excluding Libya | 39.00% | 31.00% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Liquid hydrocarbons natural gas and bitumen | $ 33 | $ 35 |
Supplies and other items | 273 | 278 |
Total inventories, at cost | $ 306 | $ 313 |
Property, Plant and Equipment44
Property, Plant and Equipment (Details) Boe in Millions, $ in Millions | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($)Boe |
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 26,737 | $ 27,061 |
LIBYAN ARAB JAMAHIRIYA | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 776 | |
Proved Developed and Undeveloped Reserves, Net (BOE) | Boe | 235 | |
North America Exploration and Production [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 14,953 | $ 15,226 |
International Exploration and Production [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 2,521 | 2,533 |
Oil Sands Mining Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 9,148 | 9,197 |
Corporate [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 115 | $ 105 |
Property, Plant and Equipment P
Property, Plant and Equipment Property, Plant and Equipment (Details 2) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Capitalized Exploratory Well Costs [Abstract] | ||
Capitalized Exploratory Well Costs that Have Been Capitalized for Period Greater than One Year After Completion of Drilling | $ 120 | $ 85 |
Capitalized Exploratory Well Cost, Period Increase (Decrease) | $ 35 |
Fair Value Measurements (Detail
Fair Value Measurements (Details-Recurring) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | |||
Derivative Assets | $ 63 | $ 59 | |
Derivative Liability | 24 | 1 | |
Commodity Contract [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | |||
Derivative Assets | [1] | 51 | 51 |
Derivative Liability | [1] | 24 | 1 |
Interest rate [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | |||
Derivative Assets | 12 | 8 | |
Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | |||
Derivative Assets | 0 | 0 | |
Derivative Liability | 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 | [1] | 0 | 0 |
Derivative Liability | [1] | 0 | 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 | 63 | 59 | |
Derivative Liability | 24 | 1 | |
Fair Value Inputs Level 2 [Member] | Commodity Contract [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | |||
Derivative Assets | [1] | 51 | 51 |
Derivative Liability | [1] | 24 | 1 |
Fair Value Inputs Level 2 [Member] | Interest rate [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | |||
Derivative Assets | 12 | 8 | |
Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Financial Statement [Line Items] | |||
Derivative Assets | 0 | 0 | |
Derivative Liability | 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 | [1] | 0 | 0 |
Derivative Liability | [1] | 0 | 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 | |
[1] | Derivative instruments are recorded on a net basis in the company's balance sheet (see Note 12). |
Fair Value Measurements (Deta47
Fair Value Measurements (Details 2-Nonrecurring) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Financial Statement [Line Items] | |
Goodwill, Impairment Loss | $ 0 |
Fair Value Measurements (Deta48
Fair Value Measurements (Details 3-Reported) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Fair Value [Member] | |||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | |||
Other noncurrent financial assets | $ 115 | $ 104 | |
Total financial assets | 115 | 104 | |
Financial liabilities | |||
Other current financial liabilities | 34 | 34 | |
Long-term debt, including current portion | [1] | 6,575 | 6,723 |
Deferred credits and other financial liabilities | 104 | 97 | |
Financial Liabilities Fair Value Disclosure | 6,713 | 6,854 | |
Carrying Amount [Member] | |||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | |||
Other noncurrent financial assets | 120 | 118 | |
Total financial assets | 120 | 118 | |
Financial liabilities | |||
Other current financial liabilities | 33 | 33 | |
Long-term debt, including current portion | [1] | 7,291 | 7,291 |
Deferred credits and other financial liabilities | 105 | 95 | |
Financial Liabilities Fair Value Disclosure | $ 7,429 | $ 7,419 | |
[1] | Excludes capital leases, debt issuance costs and interest rate swap adjustments. |
Derivatives (Details-BS)
Derivatives (Details-BS) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Derivatives Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 63 | $ 59 |
Derivative Asset, Fair Value, Gross Liability | 7 | 1 |
Derivative Liability, Fair Value, Gross Liability | 17 | |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 17 | |
Derivative Asset, Fair Value, Net | 56 | 58 |
Derivative Liability, Fair Value, Gross Asset | 0 | |
Designated as Hedging Instrument [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 8 | |
Derivative Asset, Fair Value, Gross Liability | 0 | |
Derivative Asset, Fair Value, Net | 8 | |
Not Designated as Hedging Instrument [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 51 | 51 |
Derivative Asset, Fair Value, Gross Liability | 7 | 1 |
Derivative Liability, Fair Value, Gross Liability | 17 | |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 17 | |
Derivative Asset, Fair Value, Net | 44 | 50 |
Derivative Liability, Fair Value, Gross Asset | 0 | |
Commodity Contract [Member] | Other Noncurrent Assets [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 17 | |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 17 | |
Derivative Liability, Fair Value, Gross Asset | 0 | |
Commodity Contract [Member] | Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 51 | 51 |
Derivative Asset, Fair Value, Gross Liability | 7 | 1 |
Derivative Asset, Fair Value, Net | 44 | 50 |
Fair Value Hedging [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 12 | |
Derivative Asset, Fair Value, Gross Liability | 0 | |
Derivative Asset, Fair Value, Net | 12 | |
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 | 12 | 8 |
Derivative Asset, Fair Value, Gross Liability | 0 | 0 |
Derivative Asset, Fair Value, Net | $ 12 | $ 8 |
Derivatives (Details 2-Fair Val
Derivatives (Details 2-Fair Value Hedges) - Fair Value Hedging [Member] - Designated as Hedging Instrument [Member] - Interest Rate Contract [Member] - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Debentures Due 2017 [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 600 | $ 600 |
Weighted-average, LIBOR-based, floating rate | 4.92% | 4.73% |
Debentures Due 2018 [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 300 | $ 300 |
Weighted-average, LIBOR-based, floating rate | 4.77% | 4.66% |
Derivatives (Details 3-Fair Val
Derivatives (Details 3-Fair Value Hedges IS & OCI) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
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 | (4) | (5) |
Interest rate [Member] | Net interest and other [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on derivative instruments recognized in income | $ 4 | $ 5 |
Derivatives Derivatives (Detail
Derivatives Derivatives (Details 4-Non Hedges Commodity) (Details) | May. 05, 2016BBL / Days$ / bbl | Mar. 31, 2016BBL / DaysMMBTU_per_day$ / MMBTU$ / bbl | |
Crude Oil Three-Way Collars for Second Quarter of Year 1 | |||
Derivative [Line Items] | |||
Volume | BBL / Days | [1],[2] | 39,000 | |
Ceiling Price | [1],[2] | 55.47 | |
Floor Price | [1],[2] | 51.56 | |
Sold Put Price | [1],[2] | 41.67 | |
Crude Oil Three-Way Collars For Third Quarter of Year 1 [Member] | |||
Derivative [Line Items] | |||
Volume | BBL / Days | [1],[2] | 37,000 | |
Ceiling Price | [1],[2] | 54.52 | |
Floor Price | [1],[2] | 50.83 | |
Sold Put Price | [1],[2] | 41.22 | |
Crude Oil Three-Way Collars for Fourth Quarter of Year 1 | |||
Derivative [Line Items] | |||
Volume | BBL / Days | [1],[2] | 37,000 | |
Ceiling Price | [1],[2] | 54.52 | |
Floor Price | [1],[2] | 50.83 | |
Sold Put Price | [1],[2] | 41.22 | |
Crude Oil Three-Way Collars For Year 2 [Member] | |||
Derivative [Line Items] | |||
Volume | BBL / Days | [1],[2] | 0 | |
Ceiling Price | [1],[2] | 0 | |
Floor Price | [1],[2] | 0 | |
Sold Put Price | [1],[2] | 0 | |
Crude Oil Options For the Second Quarter of Year 1 [Member] | |||
Derivative [Line Items] | |||
Volume | BBL / Days | [2],[3] | 10,000 | |
Option Price | [2],[3] | 72.39 | |
Crude Oil Options For the Third Quarter of Year 1 [Member] | |||
Derivative [Line Items] | |||
Volume | BBL / Days | [2],[3] | 10,000 | |
Option Price | [2],[3] | 72.39 | |
Crude Oil Options For the Fourth Quarter of Year 1 [Member] | |||
Derivative [Line Items] | |||
Volume | BBL / Days | [2],[3] | 10,000 | |
Option Price | [2],[3] | 72.39 | |
Crude Oil Options For Year 2 [Member] | |||
Derivative [Line Items] | |||
Volume | BBL / Days | [2],[3] | 25,000 | |
Option Price | [2],[3] | 60.67 | |
Crude Oil Swaps For the Second Quarter of Year 1 [Member] | |||
Derivative [Line Items] | |||
Volume | BBL / Days | [2] | 25,000 | |
Option Price | [2] | 39.25 | |
Crude Oil Swaps For the Third Quarter of Year 1 [Member] | |||
Derivative [Line Items] | |||
Volume | BBL / Days | [2] | 0 | |
Option Price | [2] | 0 | |
Crude Oil Swaps For the Fourth Quarter of Year 1 [Member] | |||
Derivative [Line Items] | |||
Volume | BBL / Days | [2] | 0 | |
Option Price | [2] | 0 | |
Crude Oil Swaps For Year 2 [Member] | |||
Derivative [Line Items] | |||
Volume | BBL / Days | [2] | 0 | |
Option Price | [2] | 0 | |
Crude Oil Three-Way Collars Option to Extend Jul-Dec 2016 [Member] | |||
Derivative [Line Items] | |||
Volume | BBL / Days | 2,000 | ||
Ceiling Price | 73.13 | ||
Floor Price | 65 | ||
Sold Put Price | 50 | ||
Natural Gas - Three-Way Collars For the Second Quarter of Year 1 [Member] | |||
Derivative [Line Items] | |||
Volume | MMBTU_per_day | [4],[5] | 20,000 | |
Ceiling Price | $ / MMBTU | [4],[5] | 2.93 | |
Floor Price | $ / MMBTU | [4],[5] | 2.50 | |
Sold Put Price | $ / MMBTU | [4],[5] | 2 | |
Natural Gas Three-Way Collars For the Third Quarter of Year 1 [Member] | |||
Derivative [Line Items] | |||
Volume | MMBTU_per_day | [4],[5] | 20,000 | |
Ceiling Price | $ / MMBTU | [4],[5] | 2.93 | |
Floor Price | $ / MMBTU | [4],[5] | 2.50 | |
Sold Put Price | $ / MMBTU | [4],[5] | 2 | |
Natural Gas Three-Way Collars For the Fourth Quarter of Year 1 [Member] | |||
Derivative [Line Items] | |||
Volume | MMBTU_per_day | [4],[5] | 20,000 | |
Ceiling Price | $ / MMBTU | [4],[5] | 2.93 | |
Floor Price | $ / MMBTU | [4],[5] | 2.50 | |
Sold Put Price | $ / MMBTU | [4],[5] | 2 | |
Natural Gas Three-Way Collars For Year 2 [Member] | |||
Derivative [Line Items] | |||
Volume | MMBTU_per_day | [4],[5] | 20,000 | |
Ceiling Price | $ / MMBTU | [4],[5] | 3.07 | |
Floor Price | $ / MMBTU | [4],[5] | 2.75 | |
Sold Put Price | $ / MMBTU | [4],[5] | 2.25 | |
Swaption [Member] | |||
Derivative [Line Items] | |||
Swap Price | 2.93 | ||
Volume | MMBTU_per_day | 20,000 | ||
Subsequent Event [Member] | Crude Oil Two-Way Collar Jul-Dec 2016 [Member] | |||
Derivative [Line Items] | |||
Volume | BBL / Days | 10,000 | ||
Ceiling Price | 50 | ||
Floor Price | 41.55 | ||
Subsequent Event [Member] | Crude Oil Three-Way Collars May-Dec 2016 [Member] | |||
Derivative [Line Items] | |||
Volume | BBL / Days | 10,000 | ||
Ceiling Price | 58.51 | ||
Floor Price | 48 | ||
Sold Put Price | 40 | ||
Subsequent Event [Member] | Crude Oil Sold Call 2017 [Member] | |||
Derivative [Line Items] | |||
Volume | BBL / Days | 10,000 | ||
Option Price | 65 | ||
Subsequent Event [Member] | Natural Gas Three-Way Collars 2017 [Member] | |||
Derivative [Line Items] | |||
Volume | BBL / Days | 20,000 | ||
Ceiling Price | 3.50 | ||
Floor Price | 2.75 | ||
Sold Put Price | 2.25 | ||
[1] | A counterparty has the option, exercisable on June 30, 2016, to extend three-way collars for 2,000 Bbls/day through the remainder of 2016 at a ceiling of $73.13, floor of $65.00 and sold put of $50.00. | ||
[2] | Subsequent to March 31, 2016, we entered into 10,000 Bbls/day of two-way collars for July - December 2016 with a ceiling price of $50.00 and a floor price of $41.55. We also entered into 10,000 Bbls/day of 2016 three-way collars for May - December 2016 with a ceiling price of $58.51, a floor price of $48.00, and a sold put price of $40.00, traded in conjunction with sold call options of 10,000 Bbls/day for 2017 at $65.00. | ||
[3] | Call options settle monthly. | ||
[4] | Counterparty has the option to execute fixed-price swaps (swaptions) at a weighted average price of $2.93 per MMBtu indexed to NYMEX Henry Hub, which is exercisable on December 22, 2016. If counterparty exercises, the term of the fixed-price swaps would be for the calendar year 2017 and, if all such options are exercised, 20,000 MMBtu per day. | ||
[5] | Subsequent to March 31, 2016, we entered into 20,000 MMBtu/day of 2017 three-way collars with a ceiling price of $3.50, a floor price of $2.75, and a sold put price of $2.25. |
Derivatives Derivatives (Deta53
Derivatives Derivatives (Details 5-Non Hedges) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | 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 | $ 2 | $ 26 |
Incentive Based Compensation (D
Incentive Based Compensation (Details) | 3 Months Ended | |
Mar. 31, 2016$ / sharesshares | ||
Stock Options | ||
Beginning year stock option awards | shares | 12,665,419 | |
Granted stock option awards | shares | 1,680,000 | [1] |
Exercised stock option awards | shares | 0 | |
Canceled stock option awards | shares | (181,681) | |
End of period stock option awards | shares | 14,163,738 | |
Beginning year weighted average exercise price | $ 29.97 | |
Granted weighted average exercise price | 7.22 | |
Exercises weighted average exercise price | 0 | |
Canceled weighted average exercise price | 29.69 | |
End of period weighted average exercise price | 27.27 | |
Stock options weighted average grant date fair value | $ 1.97 | |
[1] | The weighted average grant date fair value of stock option awards granted was $1.97 per share. |
Incentive Based Compensation 55
Incentive Based Compensation (Details 2-Restricted) | 3 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Restricted Stock | |
Beginning year unvested restricted stock | shares | 4,017,344 |
Granted restricted stock | shares | 5,230,708 |
Vested restricted stock | shares | (44,096) |
Forfeited restricted stock | shares | (220,614) |
End of period unvested restricted stock | shares | 8,983,342 |
Beginning year weighted average grant date fair value unvested restricted stock | $ / shares | $ 30.76 |
Granted restricted stock weighted average grant date fair value restricted stock | $ / shares | 7.91 |
Vested restricted stock weighted average grant date fair value restricted stock | $ / shares | 32.01 |
Forfeited restricted stock weighted average grant date fair value restricted stock | $ / shares | 30 |
End of period weighted average grant date fair value unvested restricted stock | $ / shares | $ 17.47 |
Incentive Based Compensation 56
Incentive Based Compensation (Details 3-Performance) - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
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 | $ 17.47 | $ 30.76 |
Performance Unit [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award Instruments Other Than Options Performance Unit Granted | 1,205,517 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 3.72 |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facility (Details) $ in Millions | Mar. 31, 2016USD ($) | Feb. 29, 2016USD ($) |
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, maximum borrowing capacity | $ 3,300 | $ 3,000 |
Line of Credit Facility, increase in borrowing capacity | $ 300 | |
Ratio of indebtedness to net capital | 0.27 | |
Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Ratio of indebtedness to net capital | 0.65 |
Reclassifications out of Accu58
Reclassifications out of Accumulated Other Comprehensive Income Reclassifications out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Provision for income taxes | $ 276 | $ 144 |
Other insignificant, net of tax | (109) | (107) |
Total reclassifications | (407) | (276) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Amortization of actuarial loss | (3) | (7) |
Net settlement loss | (48) | (17) |
Net curtailment gain (loss) | 0 | 5 |
Income before income taxes | (51) | (19) |
Provision for income taxes | 19 | 7 |
Total reclassifications | $ (32) | $ (12) |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Stockholders' Equity Attributable to Parent [Abstract] | ||
Shares Issued, Price Per Share | $ 7.65 | |
Stock Issued During Period, Shares, New Issues | 166,750,000 | |
Common Stock, Par or Stated Value Per Share | $ 1 | $ 1 |
Stock Issued | $ 1,232 |
Supplemental Cash Flow Inform60
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Net cash provided by (used in) operating activities included: | ||
Interest paid (net of amounts capitalized) | $ (87) | $ (55) |
Income taxes paid to taxing authorities | (15) | (47) |
Noncash investing activities: | ||
Asset retirement costs capitalized | 2 | 21 |
Asset retirement obligations assumed by buyer | $ 54 | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Apr. 30, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | |
Subsequent Event [Line Items] | |||
Impairment of Oil and Gas Properties | $ 1 | $ 0 | |
Minimum [Member] | Gulf of Mexico Assets [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Impairment of Oil and Gas Properties | $ 140 | ||
Maximum [Member] | Gulf of Mexico Assets [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Impairment of Oil and Gas Properties | $ 150 |