Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 27, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,018 | |
Entity Registrant Name | ENCANA CORP | |
Entity Central Index Key | 1,157,806 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 956,344,576 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Trading Symbol | ECA |
Condensed Consolidated Statemen
Condensed Consolidated Statement Of Earnings (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues | ||||
Product and service revenues | $ 1,277 | $ 937 | $ 2,537 | $ 1,871 |
Gains (losses) on risk management, net | (312) | 129 | (276) | 467 |
Sublease revenues | 18 | 17 | 35 | 34 |
Total Revenues | 983 | 1,083 | 2,296 | 2,372 |
Operating Expenses | ||||
Production, mineral and other taxes | 35 | 24 | 64 | 53 |
Transportation and processing | 272 | 206 | 521 | 418 |
Operating | 137 | 113 | 248 | 245 |
Purchased product | 248 | 192 | 521 | 363 |
Depreciation, depletion and amortization | 300 | 193 | 575 | 380 |
Accretion of asset retirement obligation | 8 | 10 | 16 | 21 |
Administrative | 99 | 24 | 130 | 82 |
Total Operating Expenses | 1,099 | 762 | 2,075 | 1,562 |
Operating Income (Loss) | (116) | 321 | 221 | 810 |
Other (Income) Expenses | ||||
Interest | 81 | 79 | 173 | 167 |
Foreign exchange (gain) loss, net | 25 | (58) | 116 | (84) |
(Gain) loss on divestitures, net | (1) | (4) | 1 | |
Other (gains) losses, net | (27) | (3) | (35) | |
Total Other (Income) Expenses | 105 | (6) | 282 | 49 |
Net Earnings (Loss) Before Income Tax | (221) | 327 | (61) | 761 |
Income tax expense (recovery) | (70) | (4) | $ (61) | (1) |
Net Earnings (Loss) | $ (151) | $ 331 | $ 762 | |
Net Earnings (Loss) per Common Share | ||||
Basic & Diluted | $ (0.16) | $ 0.34 | $ 0.78 | |
Dividends, Common Stock [Abstract] | ||||
Dividends Declared per Common Share | $ 0.015 | $ 0.015 | $ 0.03 | $ 0.03 |
Weighted Average Common Shares Outstanding (millions) | ||||
Basic & Diluted | 960 | 973 | 965.7 | 973 |
Condensed Consolidated Stateme3
Condensed Consolidated Statement Of Comprehensive Income (unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net Earnings (Loss) | $ (151) | $ 331 | $ 762 | |
Other Comprehensive Income (Loss), Net of Tax | ||||
Foreign currency translation adjustment | (25) | (59) | $ (1) | (75) |
Pension and other post-employment benefit plans | (1) | (1) | ||
Other Comprehensive Income (Loss) | (25) | (59) | (2) | (76) |
Comprehensive Income (Loss) | $ (176) | $ 272 | $ (2) | $ 686 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheet (unaudited) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Current Assets | ||
Cash and cash equivalents | $ 336 | $ 719 |
Accounts receivable and accrued revenues | 813 | 774 |
Risk management | 174 | 205 |
Income tax receivable | 535 | 573 |
Total Current Assets | 1,858 | 2,271 |
Oil and natural gas properties, based on full cost accounting | ||
Proved properties | 40,940 | 40,228 |
Unproved properties | 4,108 | 4,480 |
Other | 2,199 | 2,302 |
Property, plant and equipment | 47,247 | 47,010 |
Less: Accumulated depreciation, depletion and amortization | (37,929) | (38,056) |
Property, plant and equipment, net | 9,318 | 8,954 |
Other Assets | 176 | 144 |
Risk Management | 185 | 246 |
Deferred Income Taxes | 1,015 | 1,043 |
Goodwill | 2,576 | 2,609 |
Total Assets | 15,128 | 15,267 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 1,632 | 1,415 |
Income tax payable | 4 | 7 |
Risk management | 401 | 236 |
Current portion of long-term debt | 500 | |
Total Current Liabilities | 2,537 | 1,658 |
Long-Term Debt | 3,698 | 4,197 |
Other Liabilities and Provisions | 1,901 | 2,167 |
Risk Management | 43 | 13 |
Asset Retirement Obligation | 420 | 470 |
Deferred Income Taxes | 32 | 34 |
Total Liabilities | 8,631 | 8,539 |
Commitments and Contingencies | ||
Shareholders’ Equity | ||
Share capital - authorized unlimited common shares 2018 issued and outstanding: 956.3 million shares (2017: 973.1 million shares) | 4,674 | 4,757 |
Paid in surplus | 1,358 | 1,358 |
Accumulated deficit | (575) | (429) |
Accumulated other comprehensive income | 1,040 | 1,042 |
Total Shareholders’ Equity | 6,497 | 6,728 |
Total Liabilities and Shareholders' Equity | $ 15,128 | $ 15,267 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheet (Parenthetical) (unaudited) - shares shares in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Common Stock, Shares, Issued | 956.3 | 973.1 |
Common Stock, Shares, Outstanding | 956.3 | 973.1 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement Of Changes In Shareholders' Equity - USD ($) $ in Millions | Total | Share Capital [Member] | Paid In Surplus [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income [Member] |
Balance, Beginning of Year at Dec. 31, 2016 | $ 6,126 | $ 4,756 | $ 1,358 | $ (1,198) | $ 1,210 |
Net Earnings (Loss) | 762 | 762 | |||
Dividends on Common Shares | (29) | (29) | |||
Other Comprehensive Income (Loss) | (76) | (76) | |||
Balance, End of Period at Jun. 30, 2017 | 6,783 | 4,756 | 1,358 | (465) | 1,134 |
Balance, Beginning of Year at Dec. 31, 2016 | 6,126 | 4,756 | 1,358 | (1,198) | 1,210 |
Common Shares Issued Under Dividend Reinvestment Plan | 0.6 | ||||
Balance, End of Period at Dec. 31, 2017 | 6,728 | 4,757 | 1,358 | (429) | 1,042 |
Dividends on Common Shares | (29) | (29) | |||
Common Shares Purchased under Normal Course Issuer Bid | (200) | (83) | (117) | ||
Common Shares Issued Under Dividend Reinvestment Plan | 0.4 | ||||
Other Comprehensive Income (Loss) | (2) | (2) | |||
Balance, End of Period at Jun. 30, 2018 | $ 6,497 | $ 4,674 | $ 1,358 | $ (575) | $ 1,040 |
Condensed Consolidated Stateme7
Condensed Consolidated Statement Of Cash Flows (unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Operating Activities | ||||
Net Earnings (Loss) | $ (151) | $ 331 | $ 762 | |
Depreciation, depletion and amortization | 300 | 193 | $ 575 | 380 |
Accretion of asset retirement obligation | 8 | 10 | 16 | 21 |
Deferred income taxes | (6) | 14 | 56 | |
Unrealized (gain) loss on risk management | 326 | (110) | 258 | (472) |
Unrealized foreign exchange (gain) loss | 29 | (63) | 179 | (99) |
Foreign exchange on settlements | 4 | 7 | (46) | 9 |
(Gain) loss on divestitures, net | (1) | (4) | 1 | |
Other | 77 | (31) | 8 | (29) |
Net change in other assets and liabilities | (5) | (4) | (16) | (16) |
Net change in non-cash working capital | (106) | (129) | (114) | (289) |
Cash From (Used in) Operating Activities | 475 | 218 | 856 | 324 |
Investing Activities | ||||
Capital expenditures | (595) | (415) | (1,103) | (814) |
Acquisitions | (2) | (2) | (48) | |
Proceeds from divestitures | 46 | 82 | 65 | 85 |
Net change in investments and other | 105 | 24 | 80 | 79 |
Cash From (Used in) Investing Activities | (444) | (311) | (960) | (698) |
Financing Activities | ||||
Purchase of common shares | (89) | (200) | ||
Dividends on common shares | (14) | (14) | (29) | (29) |
Capital lease payments and other financing arrangements | (23) | (24) | (45) | (40) |
Cash From (Used in) Financing Activities | (126) | (38) | (274) | (69) |
Foreign Exchange Gain (Loss) on Cash and Cash Equivalents Held in Foreign Currency | (2) | 3 | (5) | 4 |
Increase (Decrease) in Cash and Cash Equivalents | (97) | (128) | (383) | (439) |
Cash and Cash Equivalents, Beginning of Period | 433 | 523 | 719 | 834 |
Cash and Cash Equivalents, End of Period | 336 | 395 | 336 | 395 |
Cash, End of Period | 24 | 112 | 24 | 112 |
Cash Equivalents, End of Period | $ 312 | $ 283 | $ 312 | $ 283 |
Basis of Presentation and Princ
Basis of Presentation and Principles of Consolidation | 6 Months Ended |
Jun. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation and Principles of Consolidation | 1. Basis of Presentation and Principles of Consolidation Encana is in the business of the exploration for, the development of, and the production and marketing of oil, NGLs and natural gas. The interim Condensed Consolidated Financial Statements include the accounts of Encana and entities in which it holds a controlling interest. All intercompany balances and transactions are eliminated on consolidation. Undivided interests in oil and natural gas exploration and production joint ventures and partnerships are consolidated on a proportionate basis. Investments in non-controlled entities over which Encana has the ability to exercise significant influence are accounted for using the equity method. The interim Condensed Consolidated Financial Statements are prepared in conformity with U.S. GAAP and the rules and regulations of the SEC. Pursuant to these rules and regulations, certain information and disclosures normally required under U.S. GAAP have been condensed or have been disclosed on an annual basis only. Accordingly, the interim Condensed Consolidated Financial Statements should be read in conjunction with the annual audited Consolidated Financial Statements and the notes thereto for the year ended December 31, 2017, which are included in Item 8 of Encana’s 2017 Annual Report on Form 10-K. The interim Condensed Consolidated Financial Statements have been prepared following the same accounting policies and methods of computation as the annual audited Consolidated Financial Statements for the year ended December 31, 2017, except as noted below in Note 2. The disclosures provided below are incremental to those included with the annual audited Consolidated Financial Statements. These unaudited interim Condensed Consolidated Financial Statements reflect, in the opinion of Management, all normal and recurring adjustments, with the exception of an out-of-period adjustment for the three and six months ended June 30, 2017 as described in Note 6, which are necessary to present fairly the financial position and results of the Company as at and for the periods presented. Interim condensed consolidated financial results are not necessarily indicative of consolidated financial results expected for the fiscal year. |
Basis of Presentation and Prin9
Basis of Presentation and Principles of Consolidation (Policy) | 6 Months Ended |
Jun. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation and Principles of Consolidation | Encana is in the business of the exploration for, the development of, and the production and marketing of oil, NGLs and natural gas. The interim Condensed Consolidated Financial Statements include the accounts of Encana and entities in which it holds a controlling interest. All intercompany balances and transactions are eliminated on consolidation. Undivided interests in oil and natural gas exploration and production joint ventures and partnerships are consolidated on a proportionate basis. Investments in non-controlled entities over which Encana has the ability to exercise significant influence are accounted for using the equity method. The interim Condensed Consolidated Financial Statements are prepared in conformity with U.S. GAAP and the rules and regulations of the SEC. Pursuant to these rules and regulations, certain information and disclosures normally required under U.S. GAAP have been condensed or have been disclosed on an annual basis only. Accordingly, the interim Condensed Consolidated Financial Statements should be read in conjunction with the annual audited Consolidated Financial Statements and the notes thereto for the year ended December 31, 2017, which are included in Item 8 of Encana’s 2017 Annual Report on Form 10-K. The interim Condensed Consolidated Financial Statements have been prepared following the same accounting policies and methods of computation as the annual audited Consolidated Financial Statements for the year ended December 31, 2017, except as noted below in Note 2. The disclosures provided below are incremental to those included with the annual audited Consolidated Financial Statements. These unaudited interim Condensed Consolidated Financial Statements reflect, in the opinion of Management, all normal and recurring adjustments, with the exception of an out-of-period adjustment for the three and six months ended June 30, 2017 as described in Note 6, which are necessary to present fairly the financial position and results of the Company as at and for the periods presented. Interim condensed consolidated financial results are not necessarily indicative of consolidated financial results expected for the fiscal year. |
Recent Accounting Pronouncements | Changes in Accounting Policies and Practices On January 1, 2018, Encana adopted the following ASUs issued by the FASB, which have not had a material impact on the Company's interim Condensed Consolidated Financial Statements: • ASU 2014-09, “Revenue from Contracts with Customers” under Topic 606. The new standard replaces Topic 605, “Revenue Recognition” as well as other industry-specific guidance within the Accounting Standards Codification. Topic 606 is based on the principle that revenue is recognized on the transfer of promised goods or services to customers in an amount that reflects the consideration the company expects to be entitled to in exchange for those goods or services. The standard has been applied using the modified retrospective approach and did not have a material impact on the Company’s Condensed Consolidated Financial Statements, other than enhancing disclosures related to the disaggregation of revenues from contracts with customers and performance obligations. The disclosures required under Topic 606 are included in Note 4, Revenues from Contracts with Customers. • ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”. The amendment requires the service cost component to be presented with the related employee compensation costs, while the other components of net benefit costs are required to be presented separately from the service cost component and outside the subtotal of income from operations. In addition, the amendment allows only the service cost to be eligible for capitalization. The amendment has been applied retrospectively for the presentation of net periodic pension costs and net periodic postretirement benefit cost, whereas prospective adoption has been applied to the capitalization of the service cost component. New Standards Issued Not Yet Adopted As of January 1, 2019, Encana will be required to adopt ASU 2016-02, “Leases” under Topic 842, which will replace Topic 840 “Leases”. The new standard will require lessees to recognize right-of-use assets and related lease liabilities for all leases, including leases classified as operating leases, on the Consolidated Balance Sheet. The dual classification model was retained for the purpose of subsequent measurement and presentation of leases in the Consolidated Statement of Earnings and Consolidated Statement of Cash Flows. Topic 842 also expands disclosures related to the amount, timing and uncertainty of cash flows arising from leases. The standard will be applied using a modified retrospective approach and provides for certain practical expedients at the date of adoption. In January 2018, FASB issued ASU 2018-01, “Land Easement Practical Expedient for Transition to Topic 842”, which permits entities to elect an optional transition practical expedient for land easements that were not previously accounted for as leases under Topic 840. The expedient provides prospective application of Topic 842 to all new or modified land easements upon adoption of the new standard. Encana intends to elect this transitional practical expedient. Topic 842 also allows a short-term lease exemption which does not require a right-of-use asset and lease liability to be recognized on the Consolidated Balance Sheet when the lease term is 12 months or less, including any renewal periods which are reasonably certain to be exercised. Encana intends to elect the short-term lease exemption. Encana continues to review and analyze contracts, identify its portfolio of leased assets, gather the necessary terms and data elements, as well as identify the processes and controls required to support the accounting for leases and related disclosures. The Company is in the process of implementing a lease software system which will facilitate the measurement and required disclosures for operating leases. The Company anticipates the software implementation to be complete by the end of 2018. Although Encana is not able to reasonably estimate the financial impact of Topic 842 at this time, the Company anticipates there will be an increase in right of use assets and lease liabilities on the Consolidated Financial Statements. As of January 1, 2019, Encana will be required to adopt ASU 2018-02 “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”. The amendments allow for a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (“U.S. Tax Reform”). Amendments can be applied either in the period of adoption or retrospectively to each period in which the effect of the rate change from the U.S. Tax Reform is recognized. While Encana has other post-employment benefit plans which were affected by the U.S. Tax Reform, the impact is not material to the Company’s Consolidated Financial Statements. As a result, the Company does not intend to take the election provided in the amendment. As of January 1, 2020, Encana will be required to adopt ASU 2017-04, “Simplifying the Test for Goodwill Impairment”. The amendment eliminates the second step of the goodwill impairment test which requires the Company to measure the impairment based on the excess amount of the carrying value of the reporting unit’s goodwill over the implied fair value of its goodwill. Under this amendment, the goodwill impairment will be measured based on the excess amount of the reporting unit’s carrying value over its respective fair value. The amendment will be applied prospectively at the date of adoption. Encana is currently in the early stages of reviewing the amendment, but does not expect the amendment to have a material impact on the Company’s Consolidated Financial Statements. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2018 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | 2. Recent Accounting Pronouncements Changes in Accounting Policies and Practices On January 1, 2018, Encana adopted the following ASUs issued by the FASB, which have not had a material impact on the Company's interim Condensed Consolidated Financial Statements: • ASU 2014-09, “Revenue from Contracts with Customers” under Topic 606. The new standard replaces Topic 605, “Revenue Recognition” as well as other industry-specific guidance within the Accounting Standards Codification. Topic 606 is based on the principle that revenue is recognized on the transfer of promised goods or services to customers in an amount that reflects the consideration the company expects to be entitled to in exchange for those goods or services. The standard has been applied using the modified retrospective approach and did not have a material impact on the Company’s Condensed Consolidated Financial Statements, other than enhancing disclosures related to the disaggregation of revenues from contracts with customers and performance obligations. The disclosures required under Topic 606 are included in Note 4, Revenues from Contracts with Customers. • ASU 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”. The amendment requires the service cost component to be presented with the related employee compensation costs, while the other components of net benefit costs are required to be presented separately from the service cost component and outside the subtotal of income from operations. In addition, the amendment allows only the service cost to be eligible for capitalization. The amendment has been applied retrospectively for the presentation of net periodic pension costs and net periodic postretirement benefit cost, whereas prospective adoption has been applied to the capitalization of the service cost component. New Standards Issued Not Yet Adopted As of January 1, 2019, Encana will be required to adopt ASU 2016-02, “Leases” under Topic 842, which will replace Topic 840 “Leases”. The new standard will require lessees to recognize right-of-use assets and related lease liabilities for all leases, including leases classified as operating leases, on the Consolidated Balance Sheet. The dual classification model was retained for the purpose of subsequent measurement and presentation of leases in the Consolidated Statement of Earnings and Consolidated Statement of Cash Flows. Topic 842 also expands disclosures related to the amount, timing and uncertainty of cash flows arising from leases. The standard will be applied using a modified retrospective approach and provides for certain practical expedients at the date of adoption. In January 2018, FASB issued ASU 2018-01, “Land Easement Practical Expedient for Transition to Topic 842”, which permits entities to elect an optional transition practical expedient for land easements that were not previously accounted for as leases under Topic 840. The expedient provides prospective application of Topic 842 to all new or modified land easements upon adoption of the new standard. Encana intends to elect this transitional practical expedient. Topic 842 also allows a short-term lease exemption which does not require a right-of-use asset and lease liability to be recognized on the Consolidated Balance Sheet when the lease term is 12 months or less, including any renewal periods which are reasonably certain to be exercised. Encana intends to elect the short-term lease exemption. Encana continues to review and analyze contracts, identify its portfolio of leased assets, gather the necessary terms and data elements, as well as identify the processes and controls required to support the accounting for leases and related disclosures. The Company is in the process of implementing a lease software system which will facilitate the measurement and required disclosures for operating leases. The Company anticipates the software implementation to be complete by the end of 2018. Although Encana is not able to reasonably estimate the financial impact of Topic 842 at this time, the Company anticipates there will be an increase in right of use assets and lease liabilities on the Consolidated Financial Statements. As of January 1, 2019, Encana will be required to adopt ASU 2018-02 “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”. The amendments allow for a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (“U.S. Tax Reform”). Amendments can be applied either in the period of adoption or retrospectively to each period in which the effect of the rate change from the U.S. Tax Reform is recognized. While Encana has other post-employment benefit plans which were affected by the U.S. Tax Reform, the impact is not material to the Company’s Consolidated Financial Statements. As a result, the Company does not intend to take the election provided in the amendment. As of January 1, 2020, Encana will be required to adopt ASU 2017-04, “Simplifying the Test for Goodwill Impairment”. The amendment eliminates the second step of the goodwill impairment test which requires the Company to measure the impairment based on the excess amount of the carrying value of the reporting unit’s goodwill over the implied fair value of its goodwill. Under this amendment, the goodwill impairment will be measured based on the excess amount of the reporting unit’s carrying value over its respective fair value. The amendment will be applied prospectively at the date of adoption. Encana is currently in the early stages of reviewing the amendment, but does not expect the amendment to have a material impact on the Company’s Consolidated Financial Statements. |
Segmented Information
Segmented Information | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segmented Information | 3. Segmented Information Encana’s reportable segments are determined based on the Company’s operations and geographic locations as follows: • Canadian Operations includes the exploration for, development of, and production of oil, NGLs and natural gas and other related activities within the Canadian cost centre. • USA Operations includes the exploration for, development of, and production of oil, NGLs and natural gas and other related activities within the U.S. cost centre. • Market Optimization is primarily responsible for the sale of the Company’s proprietary production. These results are reported in the Canadian and USA Operations. Market optimization activities include third party purchases and sales of product to provide operational flexibility and cost mitigation for transportation commitments, product type, delivery points and customer diversification. These activities are reflected in the Market Optimization segment. Market Optimization sells substantially all of the Company’s upstream production to third party customers. Transactions between segments are based on market values and are eliminated on consolidation. Corporate and Other mainly includes unrealized gains or losses recorded on derivative financial instruments. Once the instruments are settled, the realized gains and losses are recorded in the reporting segment to which the derivative instruments relate. Corporate and Other also includes amounts related to sublease rentals. Results of Operations (For the three months ended June 30) Segment and Geographic Information Canadian Operations USA Operations Market Optimization 2018 2017 (1) 2018 2017 (1) 2018 2017 (1) Revenues Product and service revenues $ 379 $ 265 $ 607 $ 468 $ 291 $ 204 Gains (losses) on risk management, net 73 2 (57 ) 17 (2 ) - Sublease revenues - - - - - - Total Revenues 452 267 550 485 289 204 Operating Expenses Production, mineral and other taxes 4 5 31 19 - - Transportation and processing 207 133 31 51 34 22 Operating 35 22 84 84 13 3 Purchased product - - - - 248 192 Depreciation, depletion and amortization 85 53 202 123 1 - Total Operating Expenses 331 213 348 277 296 217 Operating Income (Loss) $ 121 $ 54 $ 202 $ 208 $ (7 ) $ (13 ) Corporate & Other Consolidated 2018 2017 (1) 2018 2017 (1) Revenues Product and service revenues $ - $ - $ 1,277 $ 937 Gains (losses) on risk management, net (326 ) 110 (312 ) 129 Sublease revenues 18 17 18 17 Total Revenues (308 ) 127 983 1,083 Operating Expenses Production, mineral and other taxes - - 35 24 Transportation and processing - - 272 206 Operating 5 4 137 113 Purchased product - - 248 192 Depreciation, depletion and amortization 12 17 300 193 Accretion of asset retirement obligation 8 10 8 10 Administrative 99 24 99 24 Total Operating Expenses 124 55 1,099 762 Operating Income (Loss) $ (432 ) $ 72 (116 ) 321 Other (Income) Expenses Interest 81 79 Foreign exchange (gain) loss, net 25 (58 ) (Gain) loss on divestitures, net (1 ) - Other (gains) losses, net - (27 ) Total Other (Income) Expenses 105 (6 ) Net Earnings (Loss) Before Income Tax (221 ) 327 Income tax expense (recovery) (70 ) (4 ) Net Earnings (Loss) $ (151 ) $ 331 (1) 2017 revenues have been realigned to conform with the January 1, 2018 adoption of ASU 2014-09 “Revenue from Contracts with Customers”. Results of Operations (For the six months ended June 30) Segment and Geographic Information Canadian Operations USA Operations Market Optimization 2018 2017 (1) 2018 2017 (1) 2018 2017 (1) Revenues Product and service revenues $ 783 $ 566 $ 1,162 $ 915 $ 592 $ 390 Gains (losses) on risk management, net 85 (19 ) (101 ) 14 (2 ) - Sublease revenues - - - - - - Total Revenues 868 547 1,061 929 590 390 Operating Expenses Production, mineral and other taxes 8 10 56 43 - - Transportation and processing 397 265 58 110 66 43 Operating 64 53 158 171 17 12 Purchased product - - - - 521 363 Depreciation, depletion and amortization 162 117 387 229 1 - Total Operating Expenses 631 445 659 553 605 418 Operating Income (Loss) $ 237 $ 102 $ 402 $ 376 $ (15 ) $ (28 ) Corporate & Other Consolidated 2018 2017 (1) 2018 2017 (1) Revenues Product and service revenues $ - $ - $ 2,537 $ 1,871 Gains (losses) on risk management, net (258 ) 472 (276 ) 467 Sublease revenues 35 34 35 34 Total Revenues (223 ) 506 2,296 2,372 Operating Expenses Production, mineral and other taxes - - 64 53 Transportation and processing - - 521 418 Operating 9 9 248 245 Purchased product - - 521 363 Depreciation, depletion and amortization 25 34 575 380 Accretion of asset retirement obligation 16 21 16 21 Administrative 130 82 130 82 Total Operating Expenses 180 146 2,075 1,562 Operating Income (Loss) $ (403 ) $ 360 221 810 Other (Income) Expenses Interest 173 167 Foreign exchange (gain) loss, net 116 (84 ) (Gain) loss on divestitures, net (4 ) 1 Other (gains) losses, net (3 ) (35 ) Total Other (Income) Expenses 282 49 Net Earnings (Loss) Before Income Tax (61 ) 761 Income tax expense (recovery) (61 ) (1 ) Net Earnings (Loss) $ - $ 762 (1) 2017 revenues have been realigned to conform with the January 1, 2018 adoption of ASU 2014-09 “Revenue from Contracts with Customers”. Intersegment Information Market Optimization Marketing Sales Upstream Eliminations Total For the three months ended June 30, 2018 2017 2018 2017 2018 2017 Revenues $ 1,359 $ 951 $ (1,070 ) $ (747 ) $ 289 $ 204 Operating Expenses Transportation and processing 109 61 (75 ) (39 ) 34 22 Operating 13 3 - - 13 3 Purchased product 1,243 900 (995 ) (708 ) 248 192 Depreciation, depletion and amortization 1 - - - 1 - Operating Income (Loss) $ (7 ) $ (13 ) $ - $ - $ (7 ) $ (13 ) Market Optimization Marketing Sales Upstream Eliminations Total For the six months ended June 30, 2018 2017 2018 2017 2018 2017 Revenues $ 2,690 $ 1,907 $ (2,100 ) $ (1,517 ) $ 590 $ 390 Operating Expenses Transportation and processing 215 125 (149 ) (82 ) 66 43 Operating 17 12 - - 17 12 Purchased product 2,472 1,798 (1,951 ) (1,435 ) 521 363 Depreciation, depletion and amortization 1 - - - 1 - Operating Income (Loss) $ (15 ) $ (28 ) $ - $ - $ (15 ) $ (28 ) Capital Expenditures Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Canadian Operations $ 211 $ 81 $ 379 $ 169 USA Operations 382 333 720 644 Corporate & Other 2 1 4 1 $ 595 $ 415 $ 1,103 $ 814 Goodwill, Property, Plant and Equipment and Total Assets by Segment Goodwill Property, Plant and Equipment Total Assets As at As at As at June 30, December 31, June 30, December 31, June 30, December 31, 2018 2017 2018 2017 2018 2017 Canadian Operations $ 663 $ 696 $ 981 $ 862 $ 1,970 $ 1,908 USA Operations 1,913 1,913 6,889 6,555 9,596 9,301 Market Optimization - - 1 2 211 152 Corporate & Other - - 1,447 1,535 3,351 3,906 $ 2,576 $ 2,609 $ 9,318 $ 8,954 $ 15,128 $ 15,267 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contract with Customer | 4. Revenues from Contracts with Customers The following tables summarize the Company’s revenues from contracts with customers and other sources of revenues. Encana presents realized and unrealized gains and losses on certain derivative contracts within revenues. Revenues (For the three months ended June 30) Canadian Operations USA Operations Market Optimization 2018 2017 2018 2017 2018 2017 Revenues from Customers Product revenues (1) Oil $ 2 $ 1 $ 516 $ 324 $ 28 $ 51 NGLs 216 98 71 38 3 - Natural gas 164 169 29 103 246 149 Service revenues Gathering and processing 2 - - 4 - - Product and Service Revenues 384 268 616 469 277 200 Other Revenues Gains (losses) on risk management, net (2) 73 2 (57 ) 17 (2 ) - Sublease revenues - - - - - - Other Revenues 73 2 (57 ) 17 (2 ) - Total Revenues $ 457 $ 270 $ 559 $ 486 $ 275 $ 200 Corporate & Other Consolidated 2018 2017 2018 2017 Revenues from Customers Product revenues (1) Oil $ - $ - $ 546 $ 376 NGLs - - 290 136 Natural gas - - 439 421 Service revenues Gathering and processing - - 2 4 Product and Service Revenues - - 1,277 937 Other Revenues Gains (losses) on risk management, net (2) (326 ) 110 (312 ) 129 Sublease revenues 18 17 18 17 Other Revenues (308 ) 127 (294 ) 146 Total Revenues $ (308 ) $ 127 $ 983 $ 1,083 (1) Includes revenues from production and revenues of product purchased from third parties, but excludes intercompany marketing fees transacted between the Company’s operating segments. (2) Canadian Operations, USA Operations and Market Optimization include realized gains/(losses) on risk management. Corporate & Other includes unrealized gains/(losses) on risk management. Revenues (For the six months ended June 30) Canadian Operations USA Operations Market Optimization 2018 2017 2018 2017 2018 2017 Revenues from Customers Product revenues (1) Oil $ 5 $ 3 $ 989 $ 625 $ 50 $ 88 NGLs 396 193 123 78 5 12 Natural gas 385 372 61 210 519 276 Service revenues Gathering and processing 4 4 - 10 - - Product and Service Revenues 790 572 1,173 923 574 376 Other Revenues Gains (losses) on risk management, net (2) 85 (19 ) (101 ) 14 (2 ) - Sublease revenues - - - - - - Other Revenues 85 (19 ) (101 ) 14 (2 ) - Total Revenues $ 875 $ 553 $ 1,072 $ 937 $ 572 $ 376 Corporate & Other Consolidated 2018 2017 2018 2017 Revenues from Customers Product revenues (1) Oil $ - $ - $ 1,044 $ 716 NGLs - - 524 283 Natural gas - - 965 858 Service revenues Gathering and processing - - 4 14 Product and Service Revenues - - 2,537 1,871 Other Revenues Gains (losses) on risk management, net (2) (258 ) 472 (276 ) 467 Sublease revenues 35 34 35 34 Other Revenues (223 ) 506 (241 ) 501 Total Revenues $ (223 ) $ 506 $ 2,296 $ 2,372 (1) Includes revenues from production and revenues of product purchased from third parties, but excludes intercompany marketing fees transacted between the Company’s operating segments. (2) Canadian Operations, USA Operations and Market Optimization include realized gains/(losses) on risk management. Corporate & Other includes unrealized gains/(losses) on risk management. The Company’s revenues from contracts with customers consists of product sales including oil, NGLs and natural gas, as well as the provision of gathering and processing services to third parties. Encana had no contract asset or liability balances during the periods presented. As at June 30, 2018, receivables and accrued revenues from contracts with customers were $715 million ($676 million as at December 31, 2017). Performance obligations arising from product sales contracts are typically satisfied at a point in time when the product is delivered to the customer and control is transferred. Payment from the customer is due when the product is delivered to the custody point. The Company’s product sales are sold under short-term contracts with terms that are less than one year at either fixed or market index prices or under long-term contracts exceeding one year at market index prices. As at June 30, 2018, all remaining performance obligations are priced at market index prices or are variable volume delivery contracts. As such, the variable consideration is allocated entirely to the wholly unsatisfied performance obligation or promise to deliver units of production, and revenue is recognized at the amount for which the Company has the right to invoice the product delivered. Performance obligations arising from arrangements to gather and process natural gas on behalf of third parties are typically satisfied over time as the service is provided to the customer. Payment from the customer is due when the customer receives the benefit of the service and the product is delivered to the custody point or plant tailgate. The Company’s gathering and processing services are provided on an interruptible basis with transaction prices that are for fixed prices and/or variable consideration. Variable consideration received is related to recovery of plant operating costs or escalation of the fixed price based on a consumer price index. As the service contracts are interruptible, with service provided on an “as available” basis, there are no unsatisfied performance obligations remaining at June 30, 2018. |
Interest
Interest | 6 Months Ended |
Jun. 30, 2018 | |
Interest Expense [Abstract] | |
Interest | 5. Interest Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Interest Expense on: Debt $ 67 $ 67 $ 133 $ 133 The Bow office building 16 15 32 31 Capital leases 4 5 9 10 Other (6 ) (8 ) (1 ) (7 ) $ 81 $ 79 $ 173 $ 167 For the three and six months ended June 30, 2018, other includes $11 million of interest recovered due to the resolution of certain tax items relating to prior taxation years (2017 - $13 million and $17 million, respectively). |
Foreign Exchange (Gain) Loss, N
Foreign Exchange (Gain) Loss, Net | 6 Months Ended |
Jun. 30, 2018 | |
Foreign Currency [Abstract] | |
Foreign Exchange (Gain) Loss, Net | 6. Foreign Exchange (Gain) Loss, Net Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Unrealized Foreign Exchange (Gain) Loss on: Translation of U.S. dollar financing debt issued from Canada $ 90 $ (45 ) $ 212 $ (78 ) Translation of U.S. dollar risk management contracts issued from Canada 1 (28 ) 10 (32 ) Translation of intercompany notes (62 ) 10 (43 ) 11 29 (63 ) 179 (99 ) Foreign Exchange on Settlements of: U.S. dollar financing debt issued from Canada 1 7 1 7 U.S. dollar risk management contracts issued from Canada (3 ) 2 (10 ) 1 Intercompany notes 3 - (47 ) 2 Other Monetary Revaluations (5 ) (4 ) (7 ) 5 $ 25 $ (58 ) $ 116 $ (84 ) The unrealized foreign exchange (gain) loss on translation of U.S. dollar financing debt issued from Canada for the three and six months ended June 30, 2017 disclosed in the table above included an out-of-period adjustment in respect of unrealized losses on a foreign-denominated capital lease obligation since December 2013. The cumulative impact recognized within foreign exchange (gain) loss in the Company’s Condensed Consolidated Statement of Earnings for the three and six months ended June 30, 2017 was $68 million, before tax ($47 million, after tax). Encana determined that the adjustment was not material to the Condensed Consolidated Financial Statements for the period ended June 30, 2017 or any prior periods. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Current Tax Canada $ (66 ) $ (20 ) $ (66 ) $ (62 ) United States 1 1 2 1 Other Countries 1 1 3 4 Total Current Tax Expense (Recovery) (64 ) (18 ) (61 ) (57 ) Deferred Tax Canada (25 ) 2 (28 ) 20 United States 3 6 7 21 Other Countries 16 6 21 15 Total Deferred Tax Expense (Recovery) (6 ) 14 - 56 Income Tax Expense (Recovery) $ (70 ) $ (4 ) $ (61 ) $ (1 ) Effective Tax Rate 31.7% (1.2 %) 100.0% (0.1 %) Encana’s interim income tax expense is determined using the estimated annual effective income tax rate applied to year-to-date net earnings before income tax plus the effect of legislative changes and amounts in respect of prior periods. The estimated annual effective income tax rate is impacted by expected annual earnings, income tax related to foreign operations, the effect of legislative changes including U.S. Tax Reform, non-taxable capital gains and losses, tax differences on divestitures and transactions, and partnership tax allocations in excess of funding. During the three and six months ended June 30, 2018, the current income tax recovery was primarily due to the resolution of certain tax items relating to prior taxation years. During the three and six months ended June 30, 2017, the current income tax recovery was primarily due to the successful resolution of certain tax items previously assessed by the taxing authorities relating to prior taxation years. The effective tax rate of 100 percent for the six months ended June 30, 2018 is higher than the Canadian statutory rate of 27 percent primarily due to the current year items discussed above. The effective tax rate of (0.1) percent for the six months ended June 30, 2017 is lower than the Canadian statutory rate of 27 percent primarily due to the impact of the foreign jurisdictional tax rates relative to the Canadian statutory tax rate applied to jurisdictional earnings as well as the items discussed above. During the six months ended June 30, 2018, there was no change to the provisional tax adjustment recognized in 2017 resulting from the re-measurement of the |
Acquisitions And Divestitures
Acquisitions And Divestitures | 6 Months Ended |
Jun. 30, 2018 | |
Acquisitions And Divestitures [Abstract] | |
Acquisitions And Divestitures | 8. Acquisitions and Divestitures Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Acquisitions Canadian Operations $ - $ - $ 2 $ 31 USA Operations - 2 - 17 Total Acquisitions - 2 2 48 Divestitures Canadian Operations (44 ) (3 ) (57 ) (6 ) USA Operations (2 ) (79 ) (8 ) (79 ) Total Divestitures (46 ) (82 ) (65 ) (85 ) Net Acquisitions & (Divestitures) $ (46 ) $ (80 ) $ (63 ) $ (37 ) Acquisitions For the six months ended June 30, 2018, acquisitions in the Canadian and USA Operations were $2 million (2017 - $31 million) and nil (2017 - $17 million), respectively, which primarily included land purchases with oil and liquids rich potential. Divestitures For the six months ended June 30, 2018, divestitures in the Canadian Operations were $57 million, which primarily included the sale of the Pipestone midstream assets located in Alberta. During the six months ended June 30, 2017, divestitures in the Canadian Operations were $6 million, which primarily included the sale of certain properties that did not complement Encana’s existing portfolio of assets. For the six months ended June 30, 2018, divestitures in the USA Operations were $8 million, which primarily included the sale of certain properties that did not complement Encana’s existing portfolio of assets. During the six months ended June 30, 2017, divestitures in the USA Operations were $79 million, which primarily included the sale of the Tuscaloosa Marine Shale assets in Mississippi and Louisiana. Amounts received from the Company’s divestiture transactions have been deducted from the respective Canadian and U.S. full cost pools. |
Property, Plant And Equipment,
Property, Plant And Equipment, Net | 6 Months Ended |
Jun. 30, 2018 | |
Property Plant And Equipment [Abstract] | |
Property, Plant And Equipment, Net | 9. Property, Plant and Equipment, Net As at June 30, 2018 As at December 31, 2017 Accumulated Accumulated Cost DD&A Net Cost DD&A Net Canadian Operations Proved properties $ 14,246 $ (13,540 ) $ 706 $ 14,555 $ (14,047 ) $ 508 Unproved properties 243 - 243 311 - 311 Other 32 - 32 43 - 43 14,521 (13,540 ) 981 14,909 (14,047 ) 862 USA Operations Proved properties 26,635 (23,627 ) 3,008 25,610 (23,240 ) 2,370 Unproved properties 3,865 - 3,865 4,169 - 4,169 Other 16 - 16 16 - 16 30,516 (23,627 ) 6,889 29,795 (23,240 ) 6,555 Market Optimization 7 (6 ) 1 7 (5 ) 2 Corporate & Other 2,203 (756 ) 1,447 2,299 (764 ) 1,535 $ 47,247 $ (37,929 ) $ 9,318 $ 47,010 $ (38,056 ) $ 8,954 Canadian and USA Operations property, plant and equipment include internal costs directly related to exploration, development and construction activities of $109 million, which have been capitalized during the six months ended June 30, 2018 (2017 - $77 million). Included in Corporate and Other are $59 million ($63 million as at December 31, 2017) of international property costs, which have been fully impaired. Capital Lease Arrangements The Company has several lease arrangements that are accounted for as capital leases including an office building and an offshore production platform. As at June 30, 2018, the total carrying value of assets under capital lease was $44 million ($46 million as at December 31, 2017), net of accumulated amortization of $664 million ($684 million as at December 31, 2017). Liabilities for the capital lease arrangements are included in other liabilities and provisions in the Condensed Consolidated Balance Sheet and are disclosed in Note 11. Other Arrangement As at June 30, 2018, Corporate and Other property, plant and equipment and total assets include a carrying value of $1,185 million ($1,255 million as at December 31, 2017) related to The Bow office building, which is under a 25-year lease agreement. The Bow asset is being depreciated over the 60-year estimated life of the building. At the conclusion of the 25‑year term, the remaining asset and corresponding liability are expected to be derecognized as disclosed in Note 11. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 10. Long-Term Debt As at As at June 30, December 31, 2018 2017 U.S. Dollar Denominated Debt U.S. Unsecured Notes: 6.50% due May 15, 2019 $ 500 $ 500 3.90% due November 15, 2021 600 600 8.125% due September 15, 2030 300 300 7.20% due November 1, 2031 350 350 7.375% due November 1, 2031 500 500 6.50% due August 15, 2034 750 750 6.625% due August 15, 2037 462 462 6.50% due February 1, 2038 505 505 5.15% due November 15, 2041 244 244 Total Principal 4,211 4,211 Increase in Value of Debt Acquired 24 26 Unamortized Debt Discounts and Issuance Costs (37 ) (40 ) Current Portion of Long-Term Debt (500 ) - $ 3,698 $ 4,197 As at June 30, 2018, total long-term debt had a carrying value of $4,198 million and a fair value of $4,792 million (as at December 31, 2017 - carrying value of $4,197 million and a fair value of $5,042 million). The estimated fair value of long-term borrowings is categorized within Level 2 of the fair value hierarchy and has been determined based on market information of long-term debt with similar terms and maturity, or by discounting future payments of interest and principal at interest rates expected to be available to the Company at period end. |
Other Liabilities And Provision
Other Liabilities And Provisions | 6 Months Ended |
Jun. 30, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities And Provisions | 11. Other Liabilities and Provisions As at As at June 30, December 31, 2018 2017 The Bow Office Building $ 1,274 $ 1,344 Capital Lease Obligations 254 295 Unrecognized Tax Benefits 169 202 Pensions and Other Post-Employment Benefits 118 116 Long-Term Incentive Costs (See Note 16) 52 175 Other Derivative Contracts (See Notes 18, 19) 12 14 Other 22 21 $ 1,901 $ 2,167 The Bow Office Building As described in Note 9, Encana has recognized the accumulated costs for The Bow office building, which is under a 25-year lease agreement. At the conclusion of the lease term, the remaining asset and corresponding liability are expected to be derecognized. Encana has also subleased approximately 50 percent of The Bow office space under the lease agreement. The total expected future principal and interest payments related to the 25-year lease agreement and the total undiscounted future amounts expected to be recovered from the sublease are outlined below. 2018 2019 2020 2021 2022 Thereafter Total Expected Future Lease Payments $ 36 $ 73 $ 74 $ 74 $ 75 $ 1,233 $ 1,565 Less: Amounts Representing Interest 31 61 61 60 59 763 1,035 Present Value of Expected Future Lease Payments $ 5 $ 12 $ 13 $ 14 $ 16 $ 470 $ 530 Sublease Recoveries (undiscounted) $ (18 ) $ (36 ) $ (36 ) $ (36 ) $ (37 ) $ (607 ) $ (770 ) Capital Lease Obligations As described in Note 9, the Company has several lease arrangements that are accounted for as capital leases including an office building and the Deep Panuke offshore Production Field Centre (“PFC”). Variable interests related to the PFC are described in Note 15. The total expected future lease payments related to the Company’s capital lease obligations are outlined below. 2018 2019 2020 2021 2022 Thereafter Total Expected Future Lease Payments $ 50 $ 99 $ 99 $ 87 $ 8 $ 38 $ 381 Less: Amounts Representing Interest 9 15 10 4 2 5 45 Present Value of Expected Future Lease Payments $ 41 $ 84 $ 89 $ 83 $ 6 $ 33 $ 336 |
Asset Retirement Obligation
Asset Retirement Obligation | 6 Months Ended |
Jun. 30, 2018 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation | 12. Asset Retirement Obligation As at As at June 30, December 31, 2018 2017 Asset Retirement Obligation, Beginning of Year $ 514 $ 687 Liabilities Incurred and Acquired 10 11 Liabilities Settled and Divested (15 ) (333 ) Change in Estimated Future Cash Outflows - 88 Accretion Expense 16 37 Foreign Currency Translation (19 ) 24 Asset Retirement Obligation, End of Period $ 506 $ 514 Current Portion $ 86 $ 44 Long-Term Portion 420 470 $ 506 $ 514 |
Share Capital
Share Capital | 6 Months Ended |
Jun. 30, 2018 | |
Class Of Stock Disclosures [Abstract] | |
Share Capital | 13. Share Capital Authorized The Company is authorized to issue an unlimited number of no par value common shares and Class A Preferred Shares limited to a number equal to not more than 20 percent of the issued and outstanding number of common shares at the time of issuance. No Class A Preferred Shares are outstanding. Issued and Outstanding As at June 30, 2018 As at December 31, 2017 Number (millions) Amount Number (millions) Amount Common Shares Outstanding, Beginning of Year 973.1 $ 4,757 973.0 $ 4,756 Common Shares Purchased (16.8 ) (83 ) - - Common Shares Issued Under Dividend Reinvestment Plan - - 0.1 1 Common Shares Outstanding, End of Period 956.3 $ 4,674 973.1 $ 4,757 During the six months ended June 30, 2018, Encana issued 31,212 common shares totaling $0.4 million under the Company’s dividend reinvestment plan (“DRIP”). During the twelve months ended December 31, 2017, Encana issued 58,480 common shares totaling $0.6 million under the DRIP. Dividends During the three months ended June 30, 2018, Encana paid dividends of $0.015 per common share totaling $14 million (2017 - $0.015 per common share totaling $14 million). During the six months ended June 30, 2018, Encana paid dividends of $0.03 per common share totaling $29 million (2017 - $0.03 per common share totaling $29 million). For the three and six months ended June 30, 2018, the dividends paid included $0.1 million and $0.4 million, respectively, in common shares issued in lieu of cash dividends under the DRIP (for the three and six months ended June 30, 2017 - $0.1 million and $0.3 million, respectively). On July 31, 2018, the Board of Directors declared a dividend of $0.015 per common share payable on September 28, 2018 to common shareholders of record as of September 14, 2018. Normal Course Issuer Bid On February 26, 2018, the Company announced it received approval from the TSX to purchase, for cancellation, up to 35 million common shares pursuant to a NCIB over a 12-month period from February 28, 2018 to February 27, 2019. The Company has authorization from its Board to spend up to $400 million on the NCIB. All purchases are made in accordance with the NCIB at prevailing market prices plus brokerage fees, with consideration allocated to share capital up to the average carrying amount of the shares, and any excess is allocated to retained earnings/accumulated deficit. For the six months ended June 30, 2018, the Company purchased approximately 16.8 million common shares for total consideration of approximately $200 million. Of the amount paid, $83 million was charged to share capital and $117 million was charged to accumulated deficit. Earnings Per Common Share The following table presents the computation of net earnings (loss) per common share: Three Months Ended Six Months Ended June 30, June 30, (US$ millions, except per share amounts) 2018 2017 2018 2017 Net Earnings (Loss) $ (151 ) $ 331 $ - $ 762 Number of Common Shares: Weighted average common shares outstanding - Basic 960.0 973.0 965.7 973.0 Effect of dilutive securities - - - - Weighted average common shares outstanding - Diluted 960.0 973.0 965.7 973.0 Net Earnings (Loss) per Common Share Basic & Diluted $ (0.16 ) $ 0.34 $ - $ 0.78 Encana Stock Option Plan Encana has share-based compensation plans that allow employees to purchase common shares of the Company. Option exercise prices are not less than the market value of the common shares on the date the options are granted. All options outstanding as at June 30, 2018 have associated Tandem Stock Appreciation Rights (“TSARs”) attached. In lieu of exercising the option, the associated TSARs give the option holder the right to receive a cash payment equal to the excess of the market price of Encana’s common shares at the time of the exercise over the original grant price. In addition, certain stock options granted are performance-based whereby vesting is also subject to Encana attaining prescribed performance relative to predetermined key measures. Historically, most holders of options with TSARs have elected to exercise their stock options as a Stock Appreciation Right (“SAR”) in exchange for a cash payment. As a result, outstanding TSARs are not considered potentially dilutive securities. Encana Restricted Share Units (“RSUs”) Encana has a share-based compensation plan whereby eligible employees and Directors are granted RSUs. An RSU is a conditional grant to receive the equivalent of an Encana common share upon vesting of the RSUs and in accordance with the terms of the RSU Plan and Grant Agreement. The Company currently settles vested RSUs in cash. As a result, RSUs are not considered potentially dilutive securities. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2018 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Income | 14. Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Foreign Currency Translation Adjustment Balance, Beginning of Period $ 1,053 $ 1,184 $ 1,029 $ 1,200 Change in Foreign Currency Translation Adjustment (25 ) (59 ) (1 ) (75 ) Balance, End of Period $ 1,028 $ 1,125 $ 1,028 $ 1,125 Pension and Other Post-Employment Benefit Plans Balance, Beginning of Period $ 12 $ 9 $ 13 $ 10 Reclassification of Net Actuarial (Gains) and Losses to Net Earnings (See Note 17) - - (1 ) (1 ) Income Taxes - - - - Balance, End of Period $ 12 $ 9 $ 12 $ 9 Total Accumulated Other Comprehensive Income $ 1,040 $ 1,134 $ 1,040 $ 1,134 |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2018 | |
Variable Interest Entity Not Primary Beneficiary Disclosures [Abstract] | |
Variable Interest Entities | 15. Variable Interest Entities Production Field Centre In 2008, Encana entered into a contract for the design, construction and operation of the PFC at its Deep Panuke facility. Upon commencement of operations in December 2013, Encana recognized the PFC as a capital lease asset. Under the lease contract, Encana has a purchase option and the option to extend the lease for 12 one-year terms at fixed prices after the initial lease term expires in 2021. As a result of the purchase option and fixed price renewal options, Encana has determined it holds variable interests and that the related leasing entity qualifies as a variable interest entity (“VIE”). Encana is not the primary beneficiary of the VIE as the Company does not have the power to direct the activities that most significantly impact the VIE’s economic performance. Encana is not required to provide any financial support or guarantees to the leasing entity or its affiliates, other than the contractual payments under the lease and operating agreements. Encana’s maximum exposure is the expected lease payments over the initial contract term. As at June 30, 2018, Encana had a capital lease obligation of $278 million ($314 million as at December 31, 2017) related to the PFC. Veresen Midstream Limited Partnership Veresen Midstream Limited Partnership (“VMLP”) provides gathering, compression and processing services under various agreements related to the Company’s development of liquids and natural gas production in the Montney play. As at June 30, 2018, VMLP provides approximately 1,150 MMcf/d of natural gas gathering and compression and 887 MMcf/d of natural gas processing under long-term service agreements with remaining terms ranging from up to 13 to 27 years and have various renewal terms providing up to a potential maximum of 10 years. Encana has determined that VMLP is a VIE and that Encana holds variable interests in VMLP. Encana is not the primary beneficiary as the Company does not have the power to direct the activities that most significantly impact VMLP’s economic performance. These key activities relate to the construction, operation, maintenance and marketing of the assets owned by VMLP. The variable interests arise from certain terms under the various long-term service agreements and include: i) a take or pay for volumes in certain agreements; ii) an operating fee of which a portion can be converted into a fixed fee once VMLP assumes operatorship of certain assets; and iii) a potential payout of minimum costs in certain agreements. The potential payout of minimum costs will be assessed in the eighth year of the assets’ service period and is based on whether there is an overall shortfall of total system cash flows from natural gas gathered and compressed under certain agreements. The potential payout amount can be reduced in the event VMLP markets unutilized capacity to third party users. Encana is not required to provide any financial support or guarantees to VMLP. As a result of Encana’s involvement with VMLP, the maximum total exposure, which represents the potential exposure to Encana in the event the assets under the agreements are deemed worthless, is estimated to be $2,382 million as at June 30, 2018. The estimate comprises the take or pay volume commitments and the potential payout of minimum costs. The take or pay volume commitments associated with certain gathering and processing assets are included in Note 21 under Transportation and Processing. The potential payout requirement is highly uncertain as the amount is contingent on future production estimates, pace of development and the amount of capacity contracted to third parties. As at June 30, 2018, there were no accounts payable and accrued liabilities outstanding related to the take or pay commitment. |
Compensation Plans
Compensation Plans | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Compensation Plans | 16. Compensation Plans Encana has a number of compensation arrangements under which the Company awards various types of long-term incentive grants to eligible employees and Directors. They may include TSARs, Performance TSARs, SARs, Performance Share Units (“PSUs”), Deferred Share Units (“DSUs”) and RSUs. These compensation arrangements are share-based. Encana accounts for TSARs, Performance TSARs, SARs, PSUs and RSUs held by employees as cash-settled share-based payment transactions and, accordingly, accrues compensation costs over the vesting period based on the fair value of the rights determined using the Black-Scholes-Merton and other fair value models. The following weighted average assumptions were used to determine the fair value of the share units held by employees: As at June 30, 2018 As at June 30, 2017 US$ Share Units C$ Share Units US$ Share Units C$ Share Units Risk Free Interest Rate 1.84% 1.84% 1.09% 1.09% Dividend Yield 0.46% 0.45% 0.68% 0.70% Expected Volatility Rate (1) 57.6% 54.1% 59.17% 54.94% Expected Term 1.8 yrs 2.0 yrs 1.9 yrs 1.9 yrs Market Share Price US$13.05 C$17.17 US$8.80 C$11.41 (1) Volatility was estimated using historical rates. The Company has recognized the following share-based compensation costs: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Total Compensation Costs of Transactions Classified as Cash-Settled $ 109 $ (41 ) $ 82 $ (7 ) Less: Total Share-Based Compensation Costs Capitalized (31 ) 11 (22 ) - Total Share-Based Compensation Expense (Recovery) $ 78 $ (30 ) $ 60 $ (7 ) Recognized on the Condensed Consolidated Statement of Earnings in: Operating $ 22 $ (8 ) $ 16 $ - Administrative 56 (22 ) 44 (7 ) $ 78 $ (30 ) $ 60 $ (7 ) As at June 30, 2018, the liability for share-based payment transactions totaled $319 million ($327 million as at December 31, 2017), of which $267 million ($152 million as at December 31, 2017) is recognized in accounts payable and accrued liabilities and $52 million ($175 million as at December 31, 2017) is recognized in other liabilities and provisions in the Condensed Consolidated Balance Sheet. As at June 30, 2018 As at December 31, 2017 Liability for Cash-Settled Share-Based Payment Transactions: Unvested $ 255 $ 274 Vested 64 53 $ 319 $ 327 The following units were granted primarily in conjunction with the Company’s February annual long-term incentive award. The TSARs, SARs, PSUs and RSUs were granted at the volume-weighted average trading price of Encana’s common shares for the five days prior to the grant date. Six Months Ended June 30, 2018 (thousands of units) TSARs 872 SARs 359 PSUs 2,515 DSUs 32 RSUs 5,275 |
Pension and Other Post-Employme
Pension and Other Post-Employment Benefits | 6 Months Ended |
Jun. 30, 2018 | |
General Discussion Of Pension And Other Postretirement Benefits [Abstract] | |
Pension and Other Post-Employment Benefits | 17. Pension and Other Post-Employment Benefits The Company has recognized total benefit plans expense which includes pension benefits and other post-employment benefits (“OPEB”) for the six months ended June 30 as follows: Pension Benefits OPEB Total 2018 2017 2018 2017 2018 2017 Net Defined Periodic Benefit Cost $ - $ (1 ) $ 3 $ 5 $ 3 $ 4 Defined Contribution Plan Expense 12 12 - - 12 12 Total Benefit Plans Expense $ 12 $ 11 $ 3 $ 5 $ 15 $ 16 Of the total benefit plans expense, $11 million (2017 - $12 million) was included in operating expense and $4 million (2017 - $4 million) was included in administrative expense. The net defined periodic benefit cost for the six months ended June 30 is as follows: Defined Benefits OPEB Total 2018 2017 2018 2017 2018 2017 Service Cost $ - $ - $ 3 $ 4 $ 3 $ 4 Interest Cost 4 4 1 2 5 6 Expected Return on Plan Assets (4 ) (5 ) - - (4 ) (5 ) Amounts Reclassified from Accumulated Other Comprehensive Income: Amortization of net actuarial (gains) and losses - - (1 ) (1 ) (1 ) (1 ) Total Net Defined Periodic Benefit Cost (1) $ - $ (1 ) $ 3 $ 5 $ 3 $ 4 (1) The components of total net defined periodic benefit cost, excluding the service cost component, are included in other (gains) losses, net. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 18. Fair Value Measurements The fair values of cash and cash equivalents, accounts receivable and accrued revenues, and accounts payable and accrued liabilities approximate their carrying amounts due to the short-term maturity of those instruments. Recurring fair value measurements are performed for risk management assets and liabilities and other derivative contracts, as discussed further in Note 19. These items are carried at fair value in the Condensed Consolidated Balance Sheet and are classified within the three levels of the fair value hierarchy in the following tables. There have been no significant transfers between the hierarchy levels during the period. Fair value changes and settlements for amounts related to risk management assets and liabilities are recognized in revenues, transportation and processing expense, and foreign exchange gains and losses according to their purpose. As at June 30, 2018 Level 1 Quoted Prices in Active Markets Level 2 Other Observable Inputs Level 3 Significant Unobservable Inputs Total Fair Value Netting (1) Carrying Amount Risk Management Assets Commodity Derivatives: Current assets $ 7 $ 293 $ - $ 300 $ (129 ) $ 171 Long-term assets - 198 - 198 (14 ) 184 Foreign Currency Derivatives: Current assets - 3 - 3 - 3 Long-term assets - 1 - 1 - 1 Risk Management Liabilities Commodity Derivatives: Current liabilities $ - $ 431 $ 98 $ 529 $ (129 ) $ 400 Long-term liabilities - 38 19 57 (14 ) 43 Foreign Currency Derivatives: Current liabilities - 1 - 1 - 1 Other Derivative Contracts Current in accounts payable and accrued liabilities $ - $ 5 $ - $ 5 $ - $ 5 Long-term in other liabilities and provisions - 12 - 12 - 12 As at December 31, 2017 Level 1 Quoted Prices in Active Markets Level 2 Other Observable Inputs Level 3 Significant Unobservable Inputs Total Fair Value Netting (1) Carrying Amount Risk Management Assets Commodity Derivatives: Current assets $ - $ 189 $ - $ 189 $ (15 ) $ 174 Long-term assets - 248 - 248 (2 ) 246 Foreign Currency Derivatives: Current assets - 31 - 31 - 31 Risk Management Liabilities Commodity Derivatives: Current liabilities $ 3 $ 196 $ 51 $ 250 $ (15 ) $ 235 Long-term liabilities - 15 - 15 (2 ) 13 Foreign Currency Derivatives: Current liabilities - 1 - 1 - 1 Other Derivative Contracts Current in accounts payable and accrued liabilities $ - $ 5 $ - $ 5 $ - $ 5 Long-term in other liabilities and provisions - 14 - 14 - 14 (1) Netting to offset derivative assets and liabilities where the legal right and intention to offset exists, or where counterparty master netting arrangements contain provisions for net settlement. The Company’s Level 1 and Level 2 risk management assets and liabilities consist of commodity fixed price contracts, fixed price swaptions, NYMEX call options, foreign currency swaps and basis swaps with terms to 2023. Level 2 also includes financial guarantee contracts as discussed in Note 19. The fair values of these contracts are based on a market approach and are estimated using inputs which are either directly or indirectly observable at the reporting date, such as exchange and other published prices, broker quotes and observable trading activity. Level 3 Fair Value Measurements As at June 30, 2018, the Company’s Level 3 risk management assets and liabilities consist of WTI three-way options and WTI costless collars with terms to 2019. The WTI three-way options are a combination of a sold call, bought put and a sold put. The WTI costless collars are a combination of a sold call and a bought put. These contracts allow the Company to participate in the upside of commodity prices to the ceiling of the call option and provide the Company with complete (collars) or partial (three-way) downside price protection through the put options. The fair values of the WTI three-way options and WTI costless collars are based on the income approach and are modelled using observable and unobservable inputs such as implied volatility. The unobservable inputs are obtained from third parties whenever possible and reviewed by the Company for reasonableness. A summary of changes in Level 3 fair value measurements for the six months ended June 30 is presented below: Risk Management 2018 2017 Balance, Beginning of Year $ (51 ) $ (36 ) Total Gains (Losses) (19 ) 64 Purchases, Sales, Issuances and Settlements: Purchases, sales and issuances - - Settlements (47 ) 3 Transfers Out of Level 3 (1) - - Balance, End of Period $ (117 ) $ 31 Change in Unrealized Gains (Losses) Related to Assets and Liabilities Held at End of Period $ (93 ) $ 59 (1) The Company’s policy is to recognize transfers out of Level 3 on the date of the event of change in circumstances that caused the transfer. Quantitative information about unobservable inputs used in Level 3 fair value measurements is presented below: Valuation Technique Unobservable Input As at June 30, 2018 As at December 31, 2017 Risk Management - WTI Options Option Model Implied Volatility 24% - 100% 17% - 76% A 10 percent increase or decrease in implied volatility for the WTI options would cause a corresponding $7 million ($2 million as at December 31, 2017) increase or decrease to net risk management assets and liabilities. |
Financial Instruments And Risk
Financial Instruments And Risk Management | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Financial Instruments and Risk Management | 19. Financial Instruments and Risk Management A) Financial Instruments Encana’s financial assets and liabilities are recognized in cash and cash equivalents, accounts receivable and accrued revenues, accounts payable and accrued liabilities, risk management assets and liabilities, long-term debt and other liabilities and provisions. B) Risk Management Activities Encana uses derivative financial instruments to manage its exposure to cash flow variability from commodity prices and fluctuating foreign currency exchange rates. The Company does not apply hedge accounting to any of its derivative financial instruments. As a result, gains and losses from changes in the fair value are recognized in net earnings. Commodity Price Risk Commodity price risk arises from the effect that fluctuations in future commodity prices may have on future cash flows. To partially mitigate exposure to commodity price risk, the Company has entered into various derivative financial instruments. The use of these derivative instruments is governed under formal policies and is subject to limits established by the Board of Directors. The Company’s policy is to not use derivative financial instruments for speculative purposes. Crude Oil and NGLs - To partially mitigate crude oil and NGL commodity price risk, the Company uses WTI-based and Mont Belvieu-based contracts such as fixed price contracts, fixed price swaptions, options and costless collars. Encana has also entered into basis swaps to manage against widening price differentials between various production areas and benchmark price points. Natural Gas - To partially mitigate natural gas commodity price risk, the Company uses NYMEX-based contracts such as fixed price contracts, fixed price swaptions and options. Encana has also entered into basis swaps to manage against widening price differentials between various production areas and benchmark price points. Foreign Exchange Risk Foreign exchange risk arises from changes in foreign currency exchange rates that may affect the fair value or future cash flows of the Company’s financial assets or liabilities. To partially mitigate the effect of foreign exchange fluctuations on future commodity revenues and expenses, the Company may enter into foreign currency derivative contracts. As at June 30, 2018, Encana has entered into $358 million notional U.S. dollar denominated currency swaps at an average exchange rate of US$0.7606 to C$1, which mature monthly through the remainder of 2018 and $250 million notional U.S. dollar denominated currency swaps at an average exchange rate of US$0.7581 to C$1, which mature monthly throughout 2019. Risk Management Positions as at June 30, 2018 Notional Volumes Term Average Price Fair Value Crude Oil and NGL Contracts US$/bbl Fixed Price Contracts WTI Fixed Price 102.3 Mbbls/d 2018 55.52 $ (280 ) WTI Fixed Price 35.0 Mbbls/d 2019 60.31 (62 ) Propane Fixed Price 9.0 Mbbls/d 2018 39.05 (1 ) Butane Fixed Price 7.0 Mbbls/d 2018 43.49 (2 ) WTI Fixed Price Swaptions (1) 24.0 Mbbls/d Q1 - Q2 2019 63.13 (29 ) WTI Three-Way Options Sold call / bought put / sold put 16.0 Mbbls/d 2018 54.49 / 47.17 / 36.88 (46 ) Sold call / bought put / sold put 42.0 Mbbls/d 2019 68.38 / 59.11 / 48.21 (47 ) WTI Costless Collars Sold call / bought put 10.0 Mbbls/d 2018 57.08 / 45.00 (24 ) Basis Contracts (2) 2018 60 2019 - 2020 40 Crude Oil and NGLs Fair Value Position (391 ) Natural Gas Contracts US$/Mcf Fixed Price Contracts NYMEX Fixed Price 1,084 MMcf/d 2018 3.02 14 NYMEX Fixed Price 699 MMcf/d 2019 2.72 (20 ) NYMEX Fixed Price Swaptions (3) 300 MMcf/d Q1 - Q2 2019 2.99 (8 ) NYMEX Call Options Sold call price 230 MMcf/d 2018 3.75 (1 ) Sold call price 230 MMcf/d 2019 3.75 (4 ) Bought call price 230 MMcf/d 2019 3.75 - Sold call price 230 MMcf/d 2020 3.25 - Basis Contracts (4) 2018 77 2019 127 2020 94 2021 - 2023 28 Natural Gas Fair Value Position 307 Net Premiums Received on Unexpired Options (4 ) Other Derivative Contracts Fair Value Position (17 ) Foreign Currency Contracts Fair Value Position (5) 2018 - 2019 3 Total Fair Value Position and Net Premiums Received $ (102 ) (1) WTI Fixed Price Swaptions give the counterparty the option to extend certain Q3 - Q4 2018 Fixed Price swaps to Q1- Q2 2019. (2) Encana has entered into swaps to protect against weakening Midland, Magellan East Houston, Louisiana Light Sweet and Edmonton Condensate differentials to WTI. (3) NYMEX Fixed Price Swaptions give the counterparty the option to extend certain Q3 - Q4 2018 Fixed Price swaps to Q1- Q2 2019. (4) Encana has entered into swaps to protect against weakening AECO, Dawn, Chicago, Malin and Waha basis to NYMEX. (5) Encana has entered into U.S. dollar denominated fixed-for-floating average currency swaps to protect against fluctuations between the Canadian and U.S. dollars. Earnings Impact of Realized and Unrealized Gains (Losses) on Risk Management Positions Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Realized Gains (Losses) on Risk Management Commodity and Other Derivatives: Revenues (1) $ 14 $ 19 $ (18 ) $ (5 ) Transportation and processing - - - (4 ) Foreign Currency Derivatives: Foreign exchange 3 (2 ) 10 (1 ) $ 17 $ 17 $ (8 ) $ (10 ) Unrealized Gains (Losses) on Risk Management Commodity and Other Derivatives: Revenues (2) $ (326 ) $ 110 $ (258 ) $ 472 Foreign Currency Derivatives: Foreign exchange (8 ) 24 (26 ) 26 $ (334 ) $ 134 $ (284 ) $ 498 Total Realized and Unrealized Gains (Losses) on Risk Management, net Commodity and Other Derivatives: Revenues (1) (2) $ (312 ) $ 129 $ (276 ) $ 467 Transportation and processing - - - (4 ) Foreign Currency Derivatives: Foreign exchange (5 ) 22 (16 ) 25 $ (317 ) $ 151 $ (292 ) $ 488 (1) Includes realized gains of $2 million and $3 million for the three and six months ended June 30, 2018, respectively, (2017 - gains of $1 million and $3 million, respectively) related to other derivative contracts. (2) Includes unrealized losses of $1 million and $1 million for the three and six months ended June 30, 2018, respectively, (2017 - losses of $1 million and $1 million, respectively) related to other derivative contracts. Reconciliation of Unrealized Risk Management Positions from January 1 to June 30 2018 2017 Fair Value Total Unrealized Gain (Loss) Total Unrealized Gain (Loss) Fair Value of Contracts, Beginning of Year $ 183 Change in Fair Value of Contracts in Place at Beginning of Year and Contracts Entered into During the Period (292 ) $ (292 ) $ 488 Settlement of Other Derivative Contracts 3 Fair Value of Contracts Realized During the Period 8 8 10 Fair Value of Contracts Outstanding $ (98 ) $ (284 ) $ 498 Net Premiums Received on Unexpired Options (4 ) Fair Value of Contracts and Net Premiums Received, End of Period $ (102 ) Risk management assets and liabilities arise from the use of derivative financial instruments and are measured at fair value. See Note 18 for a discussion of fair value measurements. Unrealized Risk Management Positions As at As at June 30, December 31, 2018 2017 Risk Management Assets Current $ 174 $ 205 Long-term 185 246 359 451 Risk Management Liabilities Current 401 236 Long-term 43 13 444 249 Other Derivative Contracts Current in accounts payable and accrued liabilities 5 5 Long-term in other liabilities and provisions 12 14 Net Risk Management Assets (Liabilities) and Other Derivative Contracts $ (102 ) $ 183 C) Credit Risk Credit risk arises from the potential that the Company may incur a loss if a counterparty to a financial instrument fails to meet its obligation in accordance with agreed terms. While exchange-traded contracts are subject to nominal credit risk due to the financial safeguards established by the New York Stock Exchange and the TSX, over-the-counter traded contracts expose Encana to counterparty credit risk. This credit risk exposure is mitigated through the use of credit policies approved by the Board of Directors governing the Company’s credit portfolio including credit practices that limit transactions according to counterparties’ credit quality. Mitigation strategies may include master netting arrangements, requesting collateral and/or transacting credit derivatives. The Company executes commodity derivative financial instruments under master agreements that have netting provisions that provide for offsetting payables against receivables. As a result of netting provisions, the Company’s maximum exposure to loss under derivative financial instruments due to credit risk is limited to the net amounts due from the counterparties under the derivative contracts, as disclosed in Note 18. As at June 30, 2018, the Company had no significant credit derivatives in place and held no collateral. As at June 30, 2018, cash equivalents include high-grade, short-term securities, placed primarily with financial institutions and companies with strong investment grade ratings. Any foreign currency agreements entered into are with major financial institutions that have investment grade credit ratings. A substantial portion of the Company’s accounts receivable are with customers in the oil and gas industry and are subject to normal industry credit risks. As at June 30, 2018, approximately 92 percent (92 percent as at December 31, 2017) of Encana’s accounts receivable and financial derivative credit exposures were with investment grade counterparties. As at June 30, 2018, Encana had two counterparties whose net settlement position individually accounted for more than 10 percent of the fair value of the outstanding in-the-money net risk management contracts by counterparty. As at June 30, 2018, these counterparties accounted for 47 percent and 11 percent of the fair value of the outstanding in-the-money net risk management contracts. As at December 31, 2017, Encana had three counterparties whose net settlement position accounted for 56 percent, 11 percent and 11 percent of the fair value of the outstanding in-the-money net risk management contracts. During 2015 and 2017, Encana entered into agreements resulting from divestitures, which may require Encana to fulfill certain payment obligations on the take or pay volume commitments assumed by the purchasers. The circumstances that would require Encana to perform under the agreements include events where a purchaser fails to make payment to the guaranteed party and/or a purchaser is subject to an insolvency event. The agreements have remaining terms from three to six years with a fair value recognized of $17 million as at June 30, 2018 ($19 million as at December 31, 2017). The maximum potential amount of undiscounted future payments is $287 million as at June 30, 2018, and is considered unlikely. |
Supplementary Information
Supplementary Information | 6 Months Ended |
Jun. 30, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplementary Information | 20 . Supplementary Information Supplemental disclosures to the Condensed Consolidated Statement of Cash Flows are presented below: A) Net Change in Non-Cash Working Capital Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Operating Activities Accounts receivable and accrued revenues $ (142 ) $ 33 $ (144 ) $ 103 Accounts payable and accrued liabilities 47 (37 ) 40 (171 ) Income tax receivable and payable (11 ) (125 ) (10 ) (221 ) $ (106 ) $ (129 ) $ (114 ) $ (289 ) B) Non-Cash Activities Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Non-Cash Investing Activities Asset retirement obligation incurred (See Note 12) $ 5 $ 3 $ 10 $ 6 Property, plant and equipment accruals 72 34 81 78 Capitalized long-term incentives 31 (11 ) (5 ) - Property additions/dispositions (swaps) 91 159 140 165 Non-Cash Financing Activities Common shares issued under dividend reinvestment plan (See Note 13) $ - $ - $ - $ - |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 21. Commitments and Contingencies Commitments The following table outlines the Company’s commitments as at June 30, 2018: Expected Future Payments (undiscounted) 2018 2019 2020 2021 2022 Thereafter Total Transportation and Processing $ 294 $ 692 $ 669 $ 582 $ 555 $ 2,516 $ 5,308 Drilling and Field Services 123 50 24 9 - - 206 Operating Leases 9 17 16 16 16 50 124 Total $ 426 $ 759 $ 709 $ 607 $ 571 $ 2,566 $ 5,638 Included within transportation and processing in the table above are certain commitments associated with midstream service agreements with VMLP as described in Note 15. Divestiture transactions can reduce certain commitments disclosed above. Contingencies Encana is involved in various legal claims and actions arising in the normal course of the Company’s operations. Although the outcome of these claims cannot be predicted with certainty, the Company does not expect these matters to have a material adverse effect on Encana’s financial position, cash flows or results of operations. Management’s assessment of these matters may change in the future as certain of these matters are in early stages or are subject to a number of uncertainties. For material matters that the Company believes an unfavourable outcome is reasonably possible, the Company discloses the nature and a range of potential exposures. If an unfavourable outcome were to occur, there exists the possibility of a material impact on the Company’s consolidated net earnings or loss for the period in which the effect becomes reasonably estimable. The Company accrues for such items when a liability is both probable and the amount can be reasonably estimated. Such accruals are based on the Company’s information known about the matters, estimates of the outcomes of such matters and experience in handling similar matters. |
Segmented Information (Tables)
Segmented Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment And Geographic Information | Results of Operations (For the three months ended June 30) Segment and Geographic Information Canadian Operations USA Operations Market Optimization 2018 2017 (1) 2018 2017 (1) 2018 2017 (1) Revenues Product and service revenues $ 379 $ 265 $ 607 $ 468 $ 291 $ 204 Gains (losses) on risk management, net 73 2 (57 ) 17 (2 ) - Sublease revenues - - - - - - Total Revenues 452 267 550 485 289 204 Operating Expenses Production, mineral and other taxes 4 5 31 19 - - Transportation and processing 207 133 31 51 34 22 Operating 35 22 84 84 13 3 Purchased product - - - - 248 192 Depreciation, depletion and amortization 85 53 202 123 1 - Total Operating Expenses 331 213 348 277 296 217 Operating Income (Loss) $ 121 $ 54 $ 202 $ 208 $ (7 ) $ (13 ) Corporate & Other Consolidated 2018 2017 (1) 2018 2017 (1) Revenues Product and service revenues $ - $ - $ 1,277 $ 937 Gains (losses) on risk management, net (326 ) 110 (312 ) 129 Sublease revenues 18 17 18 17 Total Revenues (308 ) 127 983 1,083 Operating Expenses Production, mineral and other taxes - - 35 24 Transportation and processing - - 272 206 Operating 5 4 137 113 Purchased product - - 248 192 Depreciation, depletion and amortization 12 17 300 193 Accretion of asset retirement obligation 8 10 8 10 Administrative 99 24 99 24 Total Operating Expenses 124 55 1,099 762 Operating Income (Loss) $ (432 ) $ 72 (116 ) 321 Other (Income) Expenses Interest 81 79 Foreign exchange (gain) loss, net 25 (58 ) (Gain) loss on divestitures, net (1 ) - Other (gains) losses, net - (27 ) Total Other (Income) Expenses 105 (6 ) Net Earnings (Loss) Before Income Tax (221 ) 327 Income tax expense (recovery) (70 ) (4 ) Net Earnings (Loss) $ (151 ) $ 331 (1) 2017 revenues have been realigned to conform with the January 1, 2018 adoption of ASU 2014-09 “Revenue from Contracts with Customers”. Results of Operations (For the six months ended June 30) Segment and Geographic Information Canadian Operations USA Operations Market Optimization 2018 2017 (1) 2018 2017 (1) 2018 2017 (1) Revenues Product and service revenues $ 783 $ 566 $ 1,162 $ 915 $ 592 $ 390 Gains (losses) on risk management, net 85 (19 ) (101 ) 14 (2 ) - Sublease revenues - - - - - - Total Revenues 868 547 1,061 929 590 390 Operating Expenses Production, mineral and other taxes 8 10 56 43 - - Transportation and processing 397 265 58 110 66 43 Operating 64 53 158 171 17 12 Purchased product - - - - 521 363 Depreciation, depletion and amortization 162 117 387 229 1 - Total Operating Expenses 631 445 659 553 605 418 Operating Income (Loss) $ 237 $ 102 $ 402 $ 376 $ (15 ) $ (28 ) Corporate & Other Consolidated 2018 2017 (1) 2018 2017 (1) Revenues Product and service revenues $ - $ - $ 2,537 $ 1,871 Gains (losses) on risk management, net (258 ) 472 (276 ) 467 Sublease revenues 35 34 35 34 Total Revenues (223 ) 506 2,296 2,372 Operating Expenses Production, mineral and other taxes - - 64 53 Transportation and processing - - 521 418 Operating 9 9 248 245 Purchased product - - 521 363 Depreciation, depletion and amortization 25 34 575 380 Accretion of asset retirement obligation 16 21 16 21 Administrative 130 82 130 82 Total Operating Expenses 180 146 2,075 1,562 Operating Income (Loss) $ (403 ) $ 360 221 810 Other (Income) Expenses Interest 173 167 Foreign exchange (gain) loss, net 116 (84 ) (Gain) loss on divestitures, net (4 ) 1 Other (gains) losses, net (3 ) (35 ) Total Other (Income) Expenses 282 49 Net Earnings (Loss) Before Income Tax (61 ) 761 Income tax expense (recovery) (61 ) (1 ) Net Earnings (Loss) $ - $ 762 (1) 2017 revenues have been realigned to conform with the January 1, 2018 adoption of ASU 2014-09 “Revenue from Contracts with Customers”. |
Schedule Of Marketing Intersegment Eliminations | Intersegment Information Market Optimization Marketing Sales Upstream Eliminations Total For the three months ended June 30, 2018 2017 2018 2017 2018 2017 Revenues $ 1,359 $ 951 $ (1,070 ) $ (747 ) $ 289 $ 204 Operating Expenses Transportation and processing 109 61 (75 ) (39 ) 34 22 Operating 13 3 - - 13 3 Purchased product 1,243 900 (995 ) (708 ) 248 192 Depreciation, depletion and amortization 1 - - - 1 - Operating Income (Loss) $ (7 ) $ (13 ) $ - $ - $ (7 ) $ (13 ) Market Optimization Marketing Sales Upstream Eliminations Total For the six months ended June 30, 2018 2017 2018 2017 2018 2017 Revenues $ 2,690 $ 1,907 $ (2,100 ) $ (1,517 ) $ 590 $ 390 Operating Expenses Transportation and processing 215 125 (149 ) (82 ) 66 43 Operating 17 12 - - 17 12 Purchased product 2,472 1,798 (1,951 ) (1,435 ) 521 363 Depreciation, depletion and amortization 1 - - - 1 - Operating Income (Loss) $ (15 ) $ (28 ) $ - $ - $ (15 ) $ (28 ) |
Capital Expenditures | Capital Expenditures Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Canadian Operations $ 211 $ 81 $ 379 $ 169 USA Operations 382 333 720 644 Corporate & Other 2 1 4 1 $ 595 $ 415 $ 1,103 $ 814 |
Goodwill, Property, Plant And Equipment And Total Assets By Segment | Goodwill, Property, Plant and Equipment and Total Assets by Segment Goodwill Property, Plant and Equipment Total Assets As at As at As at June 30, December 31, June 30, December 31, June 30, December 31, 2018 2017 2018 2017 2018 2017 Canadian Operations $ 663 $ 696 $ 981 $ 862 $ 1,970 $ 1,908 USA Operations 1,913 1,913 6,889 6,555 9,596 9,301 Market Optimization - - 1 2 211 152 Corporate & Other - - 1,447 1,535 3,351 3,906 $ 2,576 $ 2,609 $ 9,318 $ 8,954 $ 15,128 $ 15,267 |
Revenue from Contracts with C31
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disaggregation Of Revenue [Abstract] | |
Disaggregation of Revenue | Revenues (For the three months ended June 30) Canadian Operations USA Operations Market Optimization 2018 2017 2018 2017 2018 2017 Revenues from Customers Product revenues (1) Oil $ 2 $ 1 $ 516 $ 324 $ 28 $ 51 NGLs 216 98 71 38 3 - Natural gas 164 169 29 103 246 149 Service revenues Gathering and processing 2 - - 4 - - Product and Service Revenues 384 268 616 469 277 200 Other Revenues Gains (losses) on risk management, net (2) 73 2 (57 ) 17 (2 ) - Sublease revenues - - - - - - Other Revenues 73 2 (57 ) 17 (2 ) - Total Revenues $ 457 $ 270 $ 559 $ 486 $ 275 $ 200 Corporate & Other Consolidated 2018 2017 2018 2017 Revenues from Customers Product revenues (1) Oil $ - $ - $ 546 $ 376 NGLs - - 290 136 Natural gas - - 439 421 Service revenues Gathering and processing - - 2 4 Product and Service Revenues - - 1,277 937 Other Revenues Gains (losses) on risk management, net (2) (326 ) 110 (312 ) 129 Sublease revenues 18 17 18 17 Other Revenues (308 ) 127 (294 ) 146 Total Revenues $ (308 ) $ 127 $ 983 $ 1,083 Revenues (For the six months ended June 30) Canadian Operations USA Operations Market Optimization 2018 2017 2018 2017 2018 2017 Revenues from Customers Product revenues (1) Oil $ 5 $ 3 $ 989 $ 625 $ 50 $ 88 NGLs 396 193 123 78 5 12 Natural gas 385 372 61 210 519 276 Service revenues Gathering and processing 4 4 - 10 - - Product and Service Revenues 790 572 1,173 923 574 376 Other Revenues Gains (losses) on risk management, net (2) 85 (19 ) (101 ) 14 (2 ) - Sublease revenues - - - - - - Other Revenues 85 (19 ) (101 ) 14 (2 ) - Total Revenues $ 875 $ 553 $ 1,072 $ 937 $ 572 $ 376 Corporate & Other Consolidated 2018 2017 2018 2017 Revenues from Customers Product revenues (1) Oil $ - $ - $ 1,044 $ 716 NGLs - - 524 283 Natural gas - - 965 858 Service revenues Gathering and processing - - 4 14 Product and Service Revenues - - 2,537 1,871 Other Revenues Gains (losses) on risk management, net (2) (258 ) 472 (276 ) 467 Sublease revenues 35 34 35 34 Other Revenues (223 ) 506 (241 ) 501 Total Revenues $ (223 ) $ 506 $ 2,296 $ 2,372 |
Interest (Tables)
Interest (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Interest Expense [Abstract] | |
Schedule Of Interest Expense | Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Interest Expense on: Debt $ 67 $ 67 $ 133 $ 133 The Bow office building 16 15 32 31 Capital leases 4 5 9 10 Other (6 ) (8 ) (1 ) (7 ) $ 81 $ 79 $ 173 $ 167 |
Foreign Exchange (Gain) Loss,33
Foreign Exchange (Gain) Loss, Net (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Foreign Currency [Abstract] | |
Foreign Exchange (Gain) Loss, Net | Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Unrealized Foreign Exchange (Gain) Loss on: Translation of U.S. dollar financing debt issued from Canada $ 90 $ (45 ) $ 212 $ (78 ) Translation of U.S. dollar risk management contracts issued from Canada 1 (28 ) 10 (32 ) Translation of intercompany notes (62 ) 10 (43 ) 11 29 (63 ) 179 (99 ) Foreign Exchange on Settlements of: U.S. dollar financing debt issued from Canada 1 7 1 7 U.S. dollar risk management contracts issued from Canada (3 ) 2 (10 ) 1 Intercompany notes 3 - (47 ) 2 Other Monetary Revaluations (5 ) (4 ) (7 ) 5 $ 25 $ (58 ) $ 116 $ (84 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Provision For Income Taxes | Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Current Tax Canada $ (66 ) $ (20 ) $ (66 ) $ (62 ) United States 1 1 2 1 Other Countries 1 1 3 4 Total Current Tax Expense (Recovery) (64 ) (18 ) (61 ) (57 ) Deferred Tax Canada (25 ) 2 (28 ) 20 United States 3 6 7 21 Other Countries 16 6 21 15 Total Deferred Tax Expense (Recovery) (6 ) 14 - 56 Income Tax Expense (Recovery) $ (70 ) $ (4 ) $ (61 ) $ (1 ) Effective Tax Rate 31.7% (1.2 %) 100.0% (0.1 %) |
Acquisitions And Divestitures (
Acquisitions And Divestitures (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Acquisitions And Divestitures [Abstract] | |
Schedule of Net Acquisitions & (Divestitures) | Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Acquisitions Canadian Operations $ - $ - $ 2 $ 31 USA Operations - 2 - 17 Total Acquisitions - 2 2 48 Divestitures Canadian Operations (44 ) (3 ) (57 ) (6 ) USA Operations (2 ) (79 ) (8 ) (79 ) Total Divestitures (46 ) (82 ) (65 ) (85 ) Net Acquisitions & (Divestitures) $ (46 ) $ (80 ) $ (63 ) $ (37 ) |
Property, Plant And Equipment36
Property, Plant And Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Property Plant And Equipment [Abstract] | |
Schedule Of Property, Plant And Equipment | As at June 30, 2018 As at December 31, 2017 Accumulated Accumulated Cost DD&A Net Cost DD&A Net Canadian Operations Proved properties $ 14,246 $ (13,540 ) $ 706 $ 14,555 $ (14,047 ) $ 508 Unproved properties 243 - 243 311 - 311 Other 32 - 32 43 - 43 14,521 (13,540 ) 981 14,909 (14,047 ) 862 USA Operations Proved properties 26,635 (23,627 ) 3,008 25,610 (23,240 ) 2,370 Unproved properties 3,865 - 3,865 4,169 - 4,169 Other 16 - 16 16 - 16 30,516 (23,627 ) 6,889 29,795 (23,240 ) 6,555 Market Optimization 7 (6 ) 1 7 (5 ) 2 Corporate & Other 2,203 (756 ) 1,447 2,299 (764 ) 1,535 $ 47,247 $ (37,929 ) $ 9,318 $ 47,010 $ (38,056 ) $ 8,954 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule Of Long-Term Debt | As at As at June 30, December 31, 2018 2017 U.S. Dollar Denominated Debt U.S. Unsecured Notes: 6.50% due May 15, 2019 $ 500 $ 500 3.90% due November 15, 2021 600 600 8.125% due September 15, 2030 300 300 7.20% due November 1, 2031 350 350 7.375% due November 1, 2031 500 500 6.50% due August 15, 2034 750 750 6.625% due August 15, 2037 462 462 6.50% due February 1, 2038 505 505 5.15% due November 15, 2041 244 244 Total Principal 4,211 4,211 Increase in Value of Debt Acquired 24 26 Unamortized Debt Discounts and Issuance Costs (37 ) (40 ) Current Portion of Long-Term Debt (500 ) - $ 3,698 $ 4,197 |
Other Liabilities And Provisi38
Other Liabilities And Provisions (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Liabilities and Provisions | As at As at June 30, December 31, 2018 2017 The Bow Office Building $ 1,274 $ 1,344 Capital Lease Obligations 254 295 Unrecognized Tax Benefits 169 202 Pensions and Other Post-Employment Benefits 118 116 Long-Term Incentive Costs (See Note 16) 52 175 Other Derivative Contracts (See Notes 18, 19) 12 14 Other 22 21 $ 1,901 $ 2,167 |
Schedule Of Expected Future Payments And Sublease Recoveries | 2018 2019 2020 2021 2022 Thereafter Total Expected Future Lease Payments $ 36 $ 73 $ 74 $ 74 $ 75 $ 1,233 $ 1,565 Less: Amounts Representing Interest 31 61 61 60 59 763 1,035 Present Value of Expected Future Lease Payments $ 5 $ 12 $ 13 $ 14 $ 16 $ 470 $ 530 Sublease Recoveries (undiscounted) $ (18 ) $ (36 ) $ (36 ) $ (36 ) $ (37 ) $ (607 ) $ (770 ) |
Schedule of Future Minimum Lease Payments for Capital Leases | 2018 2019 2020 2021 2022 Thereafter Total Expected Future Lease Payments $ 50 $ 99 $ 99 $ 87 $ 8 $ 38 $ 381 Less: Amounts Representing Interest 9 15 10 4 2 5 45 Present Value of Expected Future Lease Payments $ 41 $ 84 $ 89 $ 83 $ 6 $ 33 $ 336 |
Asset Retirement Obligation (Ta
Asset Retirement Obligation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Change In Asset Retirement Obligation | As at As at June 30, December 31, 2018 2017 Asset Retirement Obligation, Beginning of Year $ 514 $ 687 Liabilities Incurred and Acquired 10 11 Liabilities Settled and Divested (15 ) (333 ) Change in Estimated Future Cash Outflows - 88 Accretion Expense 16 37 Foreign Currency Translation (19 ) 24 Asset Retirement Obligation, End of Period $ 506 $ 514 Current Portion $ 86 $ 44 Long-Term Portion 420 470 $ 506 $ 514 |
Share Capital (Tables)
Share Capital (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Class Of Stock Disclosures [Abstract] | |
Schedule Of Common Stock Issued And Outstanding | As at June 30, 2018 As at December 31, 2017 Number (millions) Amount Number (millions) Amount Common Shares Outstanding, Beginning of Year 973.1 $ 4,757 973.0 $ 4,756 Common Shares Purchased (16.8 ) (83 ) - - Common Shares Issued Under Dividend Reinvestment Plan - - 0.1 1 Common Shares Outstanding, End of Period 956.3 $ 4,674 973.1 $ 4,757 |
Earnings Per Common Share | Three Months Ended Six Months Ended June 30, June 30, (US$ millions, except per share amounts) 2018 2017 2018 2017 Net Earnings (Loss) $ (151 ) $ 331 $ - $ 762 Number of Common Shares: Weighted average common shares outstanding - Basic 960.0 973.0 965.7 973.0 Effect of dilutive securities - - - - Weighted average common shares outstanding - Diluted 960.0 973.0 965.7 973.0 Net Earnings (Loss) per Common Share Basic & Diluted $ (0.16 ) $ 0.34 $ - $ 0.78 |
Accumulated Other Comprehensi41
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Foreign Currency Translation Adjustment Balance, Beginning of Period $ 1,053 $ 1,184 $ 1,029 $ 1,200 Change in Foreign Currency Translation Adjustment (25 ) (59 ) (1 ) (75 ) Balance, End of Period $ 1,028 $ 1,125 $ 1,028 $ 1,125 Pension and Other Post-Employment Benefit Plans Balance, Beginning of Period $ 12 $ 9 $ 13 $ 10 Reclassification of Net Actuarial (Gains) and Losses to Net Earnings (See Note 17) - - (1 ) (1 ) Income Taxes - - - - Balance, End of Period $ 12 $ 9 $ 12 $ 9 Total Accumulated Other Comprehensive Income $ 1,040 $ 1,134 $ 1,040 $ 1,134 |
Compensation Plans (Tables)
Compensation Plans (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of assumptions used to fair value share units | As at June 30, 2018 As at June 30, 2017 US$ Share Units C$ Share Units US$ Share Units C$ Share Units Risk Free Interest Rate 1.84% 1.84% 1.09% 1.09% Dividend Yield 0.46% 0.45% 0.68% 0.70% Expected Volatility Rate (1) 57.6% 54.1% 59.17% 54.94% Expected Term 1.8 yrs 2.0 yrs 1.9 yrs 1.9 yrs Market Share Price US$13.05 C$17.17 US$8.80 C$11.41 (1) Volatility was estimated using historical rates. |
Amounts Recognized For Share-Based Payment Transactions | Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Total Compensation Costs of Transactions Classified as Cash-Settled $ 109 $ (41 ) $ 82 $ (7 ) Less: Total Share-Based Compensation Costs Capitalized (31 ) 11 (22 ) - Total Share-Based Compensation Expense (Recovery) $ 78 $ (30 ) $ 60 $ (7 ) Recognized on the Condensed Consolidated Statement of Earnings in: Operating $ 22 $ (8 ) $ 16 $ - Administrative 56 (22 ) 44 (7 ) $ 78 $ (30 ) $ 60 $ (7 ) |
Liability for Share-Based Payment Transactions | As at June 30, 2018 As at December 31, 2017 Liability for Cash-Settled Share-Based Payment Transactions: Unvested $ 255 $ 274 Vested 64 53 $ 319 $ 327 |
Schedule of Share-based Compensation Activity | Six Months Ended June 30, 2018 (thousands of units) TSARs 872 SARs 359 PSUs 2,515 DSUs 32 RSUs 5,275 |
Pension and Other Post-Employ43
Pension and Other Post-Employment Benefits (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
General Discussion Of Pension And Other Postretirement Benefits [Abstract] | |
Total Benefit Plans Expense Recognized | The Company has recognized total benefit plans expense which includes pension benefits and other post-employment benefits (“OPEB”) for the six months ended June 30 as follows: Pension Benefits OPEB Total 2018 2017 2018 2017 2018 2017 Net Defined Periodic Benefit Cost $ - $ (1 ) $ 3 $ 5 $ 3 $ 4 Defined Contribution Plan Expense 12 12 - - 12 12 Total Benefit Plans Expense $ 12 $ 11 $ 3 $ 5 $ 15 $ 16 |
Schedule of Net Defined Periodic Benefit Cost | The net defined periodic benefit cost for the six months ended June 30 is as follows: Defined Benefits OPEB Total 2018 2017 2018 2017 2018 2017 Service Cost $ - $ - $ 3 $ 4 $ 3 $ 4 Interest Cost 4 4 1 2 5 6 Expected Return on Plan Assets (4 ) (5 ) - - (4 ) (5 ) Amounts Reclassified from Accumulated Other Comprehensive Income: Amortization of net actuarial (gains) and losses - - (1 ) (1 ) (1 ) (1 ) Total Net Defined Periodic Benefit Cost (1) $ - $ (1 ) $ 3 $ 5 $ 3 $ 4 (1) The components of total net defined periodic benefit cost, excluding the service cost component, are included in other (gains) losses, net. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Fair Value, Assets And Liabilities Measured On Recurring Basis | As at June 30, 2018 Level 1 Quoted Prices in Active Markets Level 2 Other Observable Inputs Level 3 Significant Unobservable Inputs Total Fair Value Netting (1) Carrying Amount Risk Management Assets Commodity Derivatives: Current assets $ 7 $ 293 $ - $ 300 $ (129 ) $ 171 Long-term assets - 198 - 198 (14 ) 184 Foreign Currency Derivatives: Current assets - 3 - 3 - 3 Long-term assets - 1 - 1 - 1 Risk Management Liabilities Commodity Derivatives: Current liabilities $ - $ 431 $ 98 $ 529 $ (129 ) $ 400 Long-term liabilities - 38 19 57 (14 ) 43 Foreign Currency Derivatives: Current liabilities - 1 - 1 - 1 Other Derivative Contracts Current in accounts payable and accrued liabilities $ - $ 5 $ - $ 5 $ - $ 5 Long-term in other liabilities and provisions - 12 - 12 - 12 As at December 31, 2017 Level 1 Quoted Prices in Active Markets Level 2 Other Observable Inputs Level 3 Significant Unobservable Inputs Total Fair Value Netting (1) Carrying Amount Risk Management Assets Commodity Derivatives: Current assets $ - $ 189 $ - $ 189 $ (15 ) $ 174 Long-term assets - 248 - 248 (2 ) 246 Foreign Currency Derivatives: Current assets - 31 - 31 - 31 Risk Management Liabilities Commodity Derivatives: Current liabilities $ 3 $ 196 $ 51 $ 250 $ (15 ) $ 235 Long-term liabilities - 15 - 15 (2 ) 13 Foreign Currency Derivatives: Current liabilities - 1 - 1 - 1 Other Derivative Contracts Current in accounts payable and accrued liabilities $ - $ 5 $ - $ 5 $ - $ 5 Long-term in other liabilities and provisions - 14 - 14 - 14 |
Summary Of Changes In Level 3 Fair Value Measurements | Risk Management 2018 2017 Balance, Beginning of Year $ (51 ) $ (36 ) Total Gains (Losses) (19 ) 64 Purchases, Sales, Issuances and Settlements: Purchases, sales and issuances - - Settlements (47 ) 3 Transfers Out of Level 3 (1) - - Balance, End of Period $ (117 ) $ 31 Change in Unrealized Gains (Losses) Related to Assets and Liabilities Held at End of Period $ (93 ) $ 59 |
Quantitative Information About Unobservable Inputs Used In Level 3 | Valuation Technique Unobservable Input As at June 30, 2018 As at December 31, 2017 Risk Management - WTI Options Option Model Implied Volatility 24% - 100% 17% - 76% |
Financial Instruments And Ris45
Financial Instruments And Risk Management (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Commodity Price Positions | Notional Volumes Term Average Price Fair Value Crude Oil and NGL Contracts US$/bbl Fixed Price Contracts WTI Fixed Price 102.3 Mbbls/d 2018 55.52 $ (280 ) WTI Fixed Price 35.0 Mbbls/d 2019 60.31 (62 ) Propane Fixed Price 9.0 Mbbls/d 2018 39.05 (1 ) Butane Fixed Price 7.0 Mbbls/d 2018 43.49 (2 ) WTI Fixed Price Swaptions (1) 24.0 Mbbls/d Q1 - Q2 2019 63.13 (29 ) WTI Three-Way Options Sold call / bought put / sold put 16.0 Mbbls/d 2018 54.49 / 47.17 / 36.88 (46 ) Sold call / bought put / sold put 42.0 Mbbls/d 2019 68.38 / 59.11 / 48.21 (47 ) WTI Costless Collars Sold call / bought put 10.0 Mbbls/d 2018 57.08 / 45.00 (24 ) Basis Contracts (2) 2018 60 2019 - 2020 40 Crude Oil and NGLs Fair Value Position (391 ) Natural Gas Contracts US$/Mcf Fixed Price Contracts NYMEX Fixed Price 1,084 MMcf/d 2018 3.02 14 NYMEX Fixed Price 699 MMcf/d 2019 2.72 (20 ) NYMEX Fixed Price Swaptions (3) 300 MMcf/d Q1 - Q2 2019 2.99 (8 ) NYMEX Call Options Sold call price 230 MMcf/d 2018 3.75 (1 ) Sold call price 230 MMcf/d 2019 3.75 (4 ) Bought call price 230 MMcf/d 2019 3.75 - Sold call price 230 MMcf/d 2020 3.25 - Basis Contracts (4) 2018 77 2019 127 2020 94 2021 - 2023 28 Natural Gas Fair Value Position 307 Net Premiums Received on Unexpired Options (4 ) Other Derivative Contracts Fair Value Position (17 ) Foreign Currency Contracts Fair Value Position (5) 2018 - 2019 3 Total Fair Value Position and Net Premiums Received $ (102 ) (1) WTI Fixed Price Swaptions give the counterparty the option to extend certain Q3 - Q4 2018 Fixed Price swaps to Q1- Q2 2019. (2) Encana has entered into swaps to protect against weakening Midland, Magellan East Houston, Louisiana Light Sweet and Edmonton Condensate differentials to WTI. (3) NYMEX Fixed Price Swaptions give the counterparty the option to extend certain Q3 - Q4 2018 Fixed Price swaps to Q1- Q2 2019. (4) Encana has entered into swaps to protect against weakening AECO, Dawn, Chicago, Malin and Waha basis to NYMEX. (5) Encana has entered into U.S. dollar denominated fixed-for-floating average currency swaps to protect against fluctuations between the Canadian and U.S. dollars. |
Earnings Impact Of Realized And Unrealized Gains (Losses) On Risk Management Positions | Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Realized Gains (Losses) on Risk Management Commodity and Other Derivatives: Revenues (1) $ 14 $ 19 $ (18 ) $ (5 ) Transportation and processing - - - (4 ) Foreign Currency Derivatives: Foreign exchange 3 (2 ) 10 (1 ) $ 17 $ 17 $ (8 ) $ (10 ) Unrealized Gains (Losses) on Risk Management Commodity and Other Derivatives: Revenues (2) $ (326 ) $ 110 $ (258 ) $ 472 Foreign Currency Derivatives: Foreign exchange (8 ) 24 (26 ) 26 $ (334 ) $ 134 $ (284 ) $ 498 Total Realized and Unrealized Gains (Losses) on Risk Management, net Commodity and Other Derivatives: Revenues (1) (2) $ (312 ) $ 129 $ (276 ) $ 467 Transportation and processing - - - (4 ) Foreign Currency Derivatives: Foreign exchange (5 ) 22 (16 ) 25 $ (317 ) $ 151 $ (292 ) $ 488 (1) Includes realized gains of $2 million and $3 million for the three and six months ended June 30, 2018, respectively, (2017 - gains of $1 million and $3 million, respectively) related to other derivative contracts. (2) Includes unrealized losses of $1 million and $1 million for the three and six months ended June 30, 2018, respectively, (2017 - losses of $1 million and $1 million, respectively) related to other derivative contracts. |
Reconciliation Of Unrealized Risk Management Positions | 2018 2017 Fair Value Total Unrealized Gain (Loss) Total Unrealized Gain (Loss) Fair Value of Contracts, Beginning of Year $ 183 Change in Fair Value of Contracts in Place at Beginning of Year and Contracts Entered into During the Period (292 ) $ (292 ) $ 488 Settlement of Other Derivative Contracts 3 Fair Value of Contracts Realized During the Period 8 8 10 Fair Value of Contracts Outstanding $ (98 ) $ (284 ) $ 498 Net Premiums Received on Unexpired Options (4 ) Fair Value of Contracts and Net Premiums Received, End of Period $ (102 ) |
Unrealized Risk Management Position | As at As at June 30, December 31, 2018 2017 Risk Management Assets Current $ 174 $ 205 Long-term 185 246 359 451 Risk Management Liabilities Current 401 236 Long-term 43 13 444 249 Other Derivative Contracts Current in accounts payable and accrued liabilities 5 5 Long-term in other liabilities and provisions 12 14 Net Risk Management Assets (Liabilities) and Other Derivative Contracts $ (102 ) $ 183 |
Supplementary Information (Tabl
Supplementary Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Net change in Non-Cash Working Capital | Supplemental disclosures to the Condensed Consolidated Statement of Cash Flows are presented below: A) Net Change in Non-Cash Working Capital Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Operating Activities Accounts receivable and accrued revenues $ (142 ) $ 33 $ (144 ) $ 103 Accounts payable and accrued liabilities 47 (37 ) 40 (171 ) Income tax receivable and payable (11 ) (125 ) (10 ) (221 ) $ (106 ) $ (129 ) $ (114 ) $ (289 ) |
Non-cash Activity | Supplemental disclosures to the Condensed Consolidated Statement of Cash Flows are presented below: A) Non-Cash Activities Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Non-Cash Investing Activities Asset retirement obligation incurred (See Note 12) $ 5 $ 3 $ 10 $ 6 Property, plant and equipment accruals 72 34 81 78 Capitalized long-term incentives 31 (11 ) (5 ) - Property additions/dispositions (swaps) 91 159 140 165 Non-Cash Financing Activities Common shares issued under dividend reinvestment plan (See Note 13) $ - $ - $ - $ - |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments | The following table outlines the Company’s commitments as at June 30, 2018: Expected Future Payments (undiscounted) 2018 2019 2020 2021 2022 Thereafter Total Transportation and Processing $ 294 $ 692 $ 669 $ 582 $ 555 $ 2,516 $ 5,308 Drilling and Field Services 123 50 24 9 - - 206 Operating Leases 9 17 16 16 16 50 124 Total $ 426 $ 759 $ 709 $ 607 $ 571 $ 2,566 $ 5,638 |
Segmented Information (Segment
Segmented Information (Segment And Geographical Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||
Product and service revenues | $ 1,277 | $ 937 | $ 2,537 | $ 1,871 | |
Gains (losses) on risk management, net | (312) | 129 | (276) | 467 | |
Sublease revenues | 18 | 17 | 35 | 34 | |
Total Revenues | 983 | 1,083 | 2,296 | 2,372 | |
Production, mineral and other taxes | 35 | 24 | 64 | 53 | |
Transportation and processing | 272 | 206 | 521 | 418 | |
Operating | 137 | 113 | 248 | 245 | |
Purchased product | 248 | 192 | 521 | 363 | |
Depreciation, depletion and amortization | 300 | 193 | 575 | 380 | |
Accretion of asset retirement obligation | 8 | 10 | 16 | 21 | $ 37 |
Administrative | 99 | 24 | 130 | 82 | |
Total Operating Expenses | 1,099 | 762 | 2,075 | 1,562 | |
Operating Income (Loss) | (116) | 321 | 221 | 810 | |
Interest | 81 | 79 | 173 | 167 | |
Foreign exchange (gain) loss, net | 25 | (58) | 116 | (84) | |
(Gain) loss on divestitures, net | (1) | (4) | 1 | ||
Other (gains) losses, net | (27) | (3) | (35) | ||
Total Other (Income) Expenses | 105 | (6) | 282 | 49 | |
Net Earnings (Loss) Before Income Tax | (221) | 327 | (61) | 761 | |
Income tax expense (recovery) | (70) | (4) | (61) | (1) | |
Net Earnings (Loss) | (151) | 331 | 762 | ||
Corporate, Non-segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Gains (losses) on risk management, net | (326) | 110 | (258) | 472 | |
Sublease revenues | 18 | 17 | 35 | 34 | |
Total Revenues | (308) | 127 | (223) | 506 | |
Operating | 5 | 4 | 9 | 9 | |
Depreciation, depletion and amortization | 12 | 17 | 25 | 34 | |
Accretion of asset retirement obligation | 8 | 10 | 16 | 21 | |
Administrative | 99 | 24 | 130 | 82 | |
Total Operating Expenses | 124 | 55 | 180 | 146 | |
Operating Income (Loss) | (432) | 72 | (403) | 360 | |
Canadian Operations [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Product and service revenues | 379 | 265 | 783 | 566 | |
Gains (losses) on risk management, net | 73 | 2 | 85 | (19) | |
Total Revenues | 452 | 267 | 868 | 547 | |
Production, mineral and other taxes | 4 | 5 | 8 | 10 | |
Transportation and processing | 207 | 133 | 397 | 265 | |
Operating | 35 | 22 | 64 | 53 | |
Depreciation, depletion and amortization | 85 | 53 | 162 | 117 | |
Total Operating Expenses | 331 | 213 | 631 | 445 | |
Operating Income (Loss) | 121 | 54 | 237 | 102 | |
USA Operations [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Product and service revenues | 607 | 468 | 1,162 | 915 | |
Gains (losses) on risk management, net | (57) | 17 | (101) | 14 | |
Total Revenues | 550 | 485 | 1,061 | 929 | |
Production, mineral and other taxes | 31 | 19 | 56 | 43 | |
Transportation and processing | 31 | 51 | 58 | 110 | |
Operating | 84 | 84 | 158 | 171 | |
Depreciation, depletion and amortization | 202 | 123 | 387 | 229 | |
Total Operating Expenses | 348 | 277 | 659 | 553 | |
Operating Income (Loss) | 202 | 208 | 402 | 376 | |
Market Optimization [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Product and service revenues | 291 | 204 | 592 | 390 | |
Gains (losses) on risk management, net | (2) | (2) | |||
Total Revenues | 289 | 204 | 590 | 390 | |
Transportation and processing | 34 | 22 | 66 | 43 | |
Operating | 13 | 3 | 17 | 12 | |
Purchased product | 248 | 192 | 521 | 363 | |
Depreciation, depletion and amortization | 1 | 1 | |||
Total Operating Expenses | 296 | 217 | 605 | 418 | |
Operating Income (Loss) | $ (7) | $ (13) | $ (15) | $ (28) |
Segmented Information (Schedule
Segmented Information (Schedule Of Marketing Intersegment Eliminations) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Product Information [Line Items] | ||||
Revenues | $ 983 | $ 1,083 | $ 2,296 | $ 2,372 |
Transportation and processing | 272 | 206 | 521 | 418 |
Operating | 137 | 113 | 248 | 245 |
Purchased product | 248 | 192 | 521 | 363 |
Depreciation, depletion and amortization | 300 | 193 | 575 | 380 |
Operating Income (Loss) | (116) | 321 | 221 | 810 |
Market Optimization [Member] | Operating Segments [Member] | ||||
Product Information [Line Items] | ||||
Revenues | 289 | 204 | 590 | 390 |
Transportation and processing | 34 | 22 | 66 | 43 |
Operating | 13 | 3 | 17 | 12 |
Purchased product | 248 | 192 | 521 | 363 |
Depreciation, depletion and amortization | 1 | 1 | ||
Operating Income (Loss) | (7) | (13) | (15) | (28) |
Market Optimization [Member] | Reportable Subsegments [Member] | Marketing Sales [Member] | ||||
Product Information [Line Items] | ||||
Revenues | 1,359 | 951 | 2,690 | 1,907 |
Transportation and processing | 109 | 61 | 215 | 125 |
Operating | 13 | 3 | 17 | 12 |
Purchased product | 1,243 | 900 | 2,472 | 1,798 |
Depreciation, depletion and amortization | 1 | 1 | ||
Operating Income (Loss) | (7) | (13) | (15) | (28) |
Market Optimization [Member] | Intersubsegment Eliminations [Member] | ||||
Product Information [Line Items] | ||||
Revenues | (1,070) | (747) | (2,100) | (1,517) |
Transportation and processing | (75) | (39) | (149) | (82) |
Purchased product | $ (995) | $ (708) | $ (1,951) | $ (1,435) |
Segmented Information (Capital
Segmented Information (Capital Expenditures) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Capital Expenditures | $ 595 | $ 415 | $ 1,103 | $ 814 |
Operating Segments [Member] | Canadian Operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Capital Expenditures | 211 | 81 | 379 | 169 |
Operating Segments [Member] | USA Operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Capital Expenditures | 382 | 333 | 720 | 644 |
Corporate, Non-segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Capital Expenditures | $ 2 | $ 1 | $ 4 | $ 1 |
Segmented Information (Goodwill
Segmented Information (Goodwill, Property, Plant And Equipment And Total Assets By Segment) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Goodwill | $ 2,576 | $ 2,609 |
Property, Plant and Equipment | 9,318 | 8,954 |
Total Assets | 15,128 | 15,267 |
Operating Segments [Member] | Canadian Operations [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Goodwill | 663 | 696 |
Property, Plant and Equipment | 981 | 862 |
Total Assets | 1,970 | 1,908 |
Operating Segments [Member] | USA Operations [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Goodwill | 1,913 | 1,913 |
Property, Plant and Equipment | 6,889 | 6,555 |
Total Assets | 9,596 | 9,301 |
Operating Segments [Member] | Market Optimization [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property, Plant and Equipment | 1 | 2 |
Total Assets | 211 | 152 |
Corporate, Non-segment [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property, Plant and Equipment | 1,447 | 1,535 |
Total Assets | $ 3,351 | $ 3,906 |
Revenue from Contracts with C52
Revenue from Contracts with Customers (Disaggregation of Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Product revenues | $ 1,277 | $ 937 | $ 2,537 | $ 1,871 |
Gains (losses) on risk management, net | (312) | 129 | (276) | 467 |
Sublease revenues | 18 | 17 | 35 | 34 |
Other revenues | (294) | 146 | (241) | 501 |
Total Revenues | 983 | 1,083 | 2,296 | 2,372 |
Operating Segments [Member] | Canadian Operations Excluding Intercompany Segment Transactions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 384 | 268 | 790 | 572 |
Gains (losses) on risk management, net | 73 | 2 | 85 | (19) |
Other revenues | 73 | 2 | 85 | (19) |
Total Revenues | 457 | 270 | 875 | 553 |
Operating Segments [Member] | USA Operations Excluding Intercompany Segment Transactions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 616 | 469 | 1,173 | 923 |
Gains (losses) on risk management, net | (57) | 17 | (101) | 14 |
Other revenues | (57) | 17 | (101) | 14 |
Total Revenues | 559 | 486 | 1,072 | 937 |
Operating Segments [Member] | Market Optimization Excluding Intercompany Segment Transactions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 277 | 200 | 574 | 376 |
Gains (losses) on risk management, net | (2) | (2) | ||
Other revenues | (2) | (2) | ||
Total Revenues | 275 | 200 | 572 | 376 |
Corporate, Non-segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Gains (losses) on risk management, net | (326) | 110 | (258) | 472 |
Sublease revenues | 18 | 17 | 35 | 34 |
Other revenues | (308) | 127 | (223) | 506 |
Total Revenues | (308) | 127 | (223) | 506 |
Oil [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 546 | 376 | 1,044 | 716 |
Oil [Member] | Operating Segments [Member] | Canadian Operations Excluding Intercompany Segment Transactions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 2 | 1 | 5 | 3 |
Oil [Member] | Operating Segments [Member] | USA Operations Excluding Intercompany Segment Transactions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 516 | 324 | 989 | 625 |
Oil [Member] | Operating Segments [Member] | Market Optimization Excluding Intercompany Segment Transactions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 28 | 51 | 50 | 88 |
Natural Gas Liquids [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 290 | 136 | 524 | 283 |
Natural Gas Liquids [Member] | Operating Segments [Member] | Canadian Operations Excluding Intercompany Segment Transactions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 216 | 98 | 396 | 193 |
Natural Gas Liquids [Member] | Operating Segments [Member] | USA Operations Excluding Intercompany Segment Transactions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 71 | 38 | 123 | 78 |
Natural Gas Liquids [Member] | Operating Segments [Member] | Market Optimization Excluding Intercompany Segment Transactions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 3 | 5 | 12 | |
Natural Gas [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 439 | 421 | 965 | 858 |
Natural Gas [Member] | Operating Segments [Member] | Canadian Operations Excluding Intercompany Segment Transactions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 164 | 169 | 385 | 372 |
Natural Gas [Member] | Operating Segments [Member] | USA Operations Excluding Intercompany Segment Transactions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 29 | 103 | 61 | 210 |
Natural Gas [Member] | Operating Segments [Member] | Market Optimization Excluding Intercompany Segment Transactions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 246 | 149 | 519 | 276 |
Natural gas gathering and compression [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 2 | 4 | 4 | 14 |
Natural gas gathering and compression [Member] | Operating Segments [Member] | Canadian Operations Excluding Intercompany Segment Transactions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | $ 2 | $ 4 | 4 | |
Natural gas gathering and compression [Member] | Operating Segments [Member] | USA Operations Excluding Intercompany Segment Transactions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | $ 4 | $ 10 |
Revenue from Contracts with C53
Revenue from Contracts with Customers (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Revenue From Contract With Customer [Abstract] | ||
Contract with Customer, Asset, Net | $ 0 | $ 0 |
Contract with Customer, Liability | 0 | 0 |
Receivables & Accrued Revenues from Contracts with Customers | 715 | $ 676 |
Revenue, Remaining Performance Obligation | $ 0 |
Interest (Details)
Interest (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Interest Expense [Abstract] | ||||
Interest Expense on Debt | $ 67 | $ 67 | $ 133 | $ 133 |
The Bow office building | 16 | 15 | 32 | 31 |
Capital leases | 4 | 5 | 9 | 10 |
Other | (6) | (8) | (1) | (7) |
Interest | $ 81 | $ 79 | $ 173 | $ 167 |
Interest (Narrative) (Details)
Interest (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Interest Expense [Abstract] | ||||
Interest recovery | $ 11 | $ 13 | $ 11 | $ 17 |
Foreign Exchange (Gain) Loss,56
Foreign Exchange (Gain) Loss, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Schedule Of Foreign Exchange Transactions [Line Items] | ||||
Unrealized foreign exchange (gain) loss | $ 29 | $ (63) | $ 179 | $ (99) |
Foreign exchange on settlements | 4 | 7 | (46) | 9 |
Foreign Exchange (Gain) Loss, Net | 25 | (58) | 116 | (84) |
Translation Of U.S. Dollar Debt Issued From Canada [Member] | ||||
Schedule Of Foreign Exchange Transactions [Line Items] | ||||
Unrealized foreign exchange (gain) loss | 90 | (45) | 212 | (78) |
Foreign exchange on settlements | 1 | 7 | 1 | 7 |
Translation Of U.S. Dollar Risk Management Contracts Issued From Canada [Member] | ||||
Schedule Of Foreign Exchange Transactions [Line Items] | ||||
Unrealized foreign exchange (gain) loss | 1 | (28) | 10 | (32) |
Foreign exchange on settlements | (3) | 2 | (10) | 1 |
Translation of Intercompany Notes [Member] | ||||
Schedule Of Foreign Exchange Transactions [Line Items] | ||||
Unrealized foreign exchange (gain) loss | (62) | 10 | (43) | 11 |
Foreign exchange on settlements | 3 | (47) | 2 | |
Other Monetary Revaluations [Member] | ||||
Schedule Of Foreign Exchange Transactions [Line Items] | ||||
Foreign exchange on settlements | $ (5) | $ (4) | $ (7) | $ 5 |
Foreign Exchange (Gain) Loss,57
Foreign Exchange (Gain) Loss, Net (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ||||
Foreign exchange (gain) loss, net | $ 25 | $ (58) | $ 116 | $ (84) |
Translation Of U.S. Dollar Debt Issued From Canada [Member] | ||||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ||||
Immaterial Error Correction | The unrealized foreign exchange (gain) loss on translation of U.S. dollar financing debt issued from Canada for the three and six months ended June 30, 2017 disclosed in the table above included an out-of-period adjustment in respect of unrealized losses on a foreign-denominated capital lease obligation since December 2013. The cumulative impact recognized within foreign exchange (gain) loss in the Company’s Condensed Consolidated Statement of Earnings for the three and six months ended June 30, 2017 was $68 million, before tax ($47 million, after tax). Encana determined that the adjustment was not material to the Condensed Consolidated Financial Statements for the period ended June 30, 2017 or any prior periods. | |||
Foreign exchange (gain) loss, net | 68 | 68 | ||
Quantifying Misstatement in Current Year Financial Statements, Amount, after Tax | $ 47 | $ 47 |
Income Taxes (Provision For Inc
Income Taxes (Provision For Income Taxes) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Current Tax | $ (64) | $ (18) | $ (61) | $ (57) |
Deferred Tax | (6) | 14 | 56 | |
Income Tax Expense (Recovery), Total | $ (70) | $ (4) | $ (61) | $ (1) |
Effective Income Tax Rate, Continuing Operations | 31.70% | (1.20%) | 100.00% | (0.10%) |
Canada [Member] | ||||
Current Tax | $ (66) | $ (20) | $ (66) | $ (62) |
Deferred Tax | (25) | 2 | (28) | 20 |
United States [Member] | ||||
Current Tax | 1 | 1 | 2 | 1 |
Deferred Tax | 3 | 6 | 7 | 21 |
Other Countries [Member] | ||||
Current Tax | 1 | 1 | 3 | 4 |
Deferred Tax | $ 16 | $ 6 | $ 21 | $ 15 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Line Items] | ||||
Effective Income Tax Rate, Continuing Operations | 31.70% | (1.20%) | 100.00% | (0.10%) |
Canadian [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Statutory rate | 27.00% | 27.00% |
Acquisitions and Divestitures60
Acquisitions and Divestitures (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Acquisitions and Divestitures [Line Items] | ||||
Acquisitions | $ 2 | $ 2 | $ 48 | |
Divestitures | $ (46) | (82) | (65) | (85) |
Net Acquisitions and Divestitures | (46) | (80) | (63) | (37) |
Operating Segments [Member] | Canadian Operations [Member] | ||||
Acquisitions and Divestitures [Line Items] | ||||
Acquisitions | 2 | 31 | ||
Divestitures | (44) | (3) | (57) | (6) |
Operating Segments [Member] | USA Operations [Member] | ||||
Acquisitions and Divestitures [Line Items] | ||||
Acquisitions | 2 | 17 | ||
Divestitures | $ (2) | $ (79) | $ (8) | $ (79) |
Acquisitions and Divestitures61
Acquisitions and Divestitures (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Acquisitions and Divestitures [Line Items] | ||||
Acquisitions | $ 2 | $ 2 | $ 48 | |
Proceeds from divestitures | $ 46 | 82 | 65 | 85 |
Canadian Operations [Member] | Operating Segments [Member] | ||||
Acquisitions and Divestitures [Line Items] | ||||
Acquisitions | 2 | 31 | ||
Proceeds from divestitures | 44 | 3 | 57 | 6 |
USA Operations [Member] | Operating Segments [Member] | ||||
Acquisitions and Divestitures [Line Items] | ||||
Acquisitions | 2 | 17 | ||
Proceeds from divestitures | $ 2 | $ 79 | $ 8 | $ 79 |
Property, Plant And Equipment62
Property, Plant And Equipment, Net (Schedule Of Property, Plant And Equipment) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Cost | $ 47,247 | $ 47,010 |
Less: Accumulated depreciation, depletion and amortization | (37,929) | (38,056) |
Property, plant and equipment, net | 9,318 | 8,954 |
Operating Segments [Member] | Canadian Operations [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Cost | 14,521 | 14,909 |
Less: Accumulated depreciation, depletion and amortization | (13,540) | (14,047) |
Property, plant and equipment, net | 981 | 862 |
Operating Segments [Member] | USA Operations [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Cost | 30,516 | 29,795 |
Less: Accumulated depreciation, depletion and amortization | (23,627) | (23,240) |
Property, plant and equipment, net | 6,889 | 6,555 |
Operating Segments [Member] | Market Optimization [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | 1 | 2 |
Corporate, Non-segment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | 1,447 | 1,535 |
Proved Properties [Member] | Operating Segments [Member] | Canadian Operations [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Cost | 14,246 | 14,555 |
Less: Accumulated depreciation, depletion and amortization | (13,540) | (14,047) |
Property, plant and equipment, net | 706 | 508 |
Proved Properties [Member] | Operating Segments [Member] | USA Operations [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Cost | 26,635 | 25,610 |
Less: Accumulated depreciation, depletion and amortization | (23,627) | (23,240) |
Property, plant and equipment, net | 3,008 | 2,370 |
Unproved Properties [Member] | Operating Segments [Member] | Canadian Operations [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Cost | 243 | 311 |
Property, plant and equipment, net | 243 | 311 |
Unproved Properties [Member] | Operating Segments [Member] | USA Operations [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Cost | 3,865 | 4,169 |
Property, plant and equipment, net | 3,865 | 4,169 |
Other Capitalized Property Plant and Equipment [Member] | Operating Segments [Member] | Canadian Operations [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Cost | 32 | 43 |
Property, plant and equipment, net | 32 | 43 |
Other Capitalized Property Plant and Equipment [Member] | Operating Segments [Member] | USA Operations [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Cost | 16 | 16 |
Property, plant and equipment, net | 16 | 16 |
Other Capitalized Property Plant and Equipment [Member] | Operating Segments [Member] | Market Optimization [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Cost | 7 | 7 |
Less: Accumulated depreciation, depletion and amortization | (6) | (5) |
Property, plant and equipment, net | 1 | 2 |
Other Capitalized Property Plant and Equipment [Member] | Corporate, Non-segment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Cost | 2,203 | 2,299 |
Less: Accumulated depreciation, depletion and amortization | (756) | (764) |
Property, plant and equipment, net | $ 1,447 | $ 1,535 |
Property, Plant And Equipment63
Property, Plant And Equipment, Net (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Internal Costs Capitalized | $ 109 | $ 77 | |
Property, Plant and Equipment, Net | 9,318 | $ 8,954 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 37,929 | 38,056 | |
Assets Held under Capital Leases [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Net | 44 | 46 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 664 | 684 | |
Bow Office Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Net | $ 1,185 | 1,255 | |
Term of Lease Agreement Liability, In Years | 25 years | ||
Property, Plant and Equipment, Useful Life | 60 years | ||
Corporate, Non-segment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Fully Amortized Property Costs | $ 59 | 63 | |
Property, Plant and Equipment, Net | $ 1,447 | $ 1,535 |
Long-Term Debt (Schedule Of Lon
Long-Term Debt (Schedule Of Long-Term Debt) (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Total Principal | $ 4,211,000,000 | $ 4,211,000,000 |
Increase in Value of Debt Acquired | 24,000,000 | 26,000,000 |
Unamortized Debt Discounts and Issuance Costs | (37,000,000) | (40,000,000) |
Current Portion of Long-Term Debt | (500,000,000) | |
Long-Term Debt | 3,698,000,000 | 4,197,000,000 |
6.50% Unsecured Notes [Member] | Unsecured Notes, Due May 15, 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured Debt | $ 500,000,000 | 500,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | |
Debt Instrument, Maturity Date | May 15, 2019 | |
6.50% Unsecured Notes [Member] | Unsecured Notes, Due August 15, 2034 [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured Debt | $ 750,000,000 | 750,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | |
Debt Instrument, Maturity Date | Aug. 15, 2034 | |
6.50% Unsecured Notes [Member] | Unsecured Notes, Due February 1, 2038 [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured Debt | $ 505,000,000 | 505,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | |
Debt Instrument, Maturity Date | Feb. 1, 2038 | |
3.90% Unsecured Notes [Member] | Unsecured Notes, Due November 15, 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured Debt | $ 600,000,000 | 600,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 3.90% | |
Debt Instrument, Maturity Date | Nov. 15, 2021 | |
8.125% Unsecured Notes [Member] | Unsecured Notes, Due September 15, 2030 [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured Debt | $ 300,000,000 | 300,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 8.125% | |
Debt Instrument, Maturity Date | Sep. 15, 2030 | |
7.20% Unsecured Notes [Member] | Unsecured Notes, Due November 1, 2031 [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured Debt | $ 350,000,000 | 350,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 7.20% | |
Debt Instrument, Maturity Date | Nov. 1, 2031 | |
7.375% Unsecured Notes [Member] | Unsecured Notes, Due November 1, 2031 [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured Debt | $ 500,000,000 | 500,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 7.375% | |
Debt Instrument, Maturity Date | Nov. 1, 2031 | |
6.625% Unsecured Notes [Member] | Unsecured Notes, Due August 15, 2037 [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured Debt | $ 462,000,000 | 462,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 6.625% | |
Debt Instrument, Maturity Date | Aug. 15, 2037 | |
5.15% Unsecured Notes [Member] | Unsecured Notes, Due November 15, 2041 [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured Debt | $ 244,000,000 | $ 244,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5.15% | |
Debt Instrument, Maturity Date | Nov. 15, 2041 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
Long-term Debt Carrying Value | $ 4,198 | $ 4,197 |
Long-term Debt, Fair Value | $ 4,792 | $ 5,042 |
Other Liabilities And Provisi66
Other Liabilities And Provisions (Schedule Of Other Liabilities And Provisions) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Other Liabilities And Provisions [Line Items] | ||
The Bow Office Building | $ 1,274 | $ 1,344 |
Obligation under Capital Lease | 254 | 295 |
Unrecognized Tax Benefits | 169 | 202 |
Pensions and Other Post-Employment Benefits | 118 | 116 |
Long-Term Incentives | 52 | 175 |
Other Derivative Contracts, Liabilities | 17 | 19 |
Other | 22 | 21 |
Other Liabilities and Provisions | 1,901 | 2,167 |
Other Liabilities and Provisions [Member] | ||
Other Liabilities And Provisions [Line Items] | ||
Other Derivative Contracts, Liabilities | $ 12 | $ 14 |
Other Liabilities And Provisi67
Other Liabilities And Provisions (Narrative) (Details) - Bow Office Building [Member] | Jun. 30, 2018 |
Other Liabilities And Provisions [Line Items] | |
Term of Lease Agreement Liability, In Years | 25 years |
Percentage of Lease Sublet | 50.00% |
Other Liabilities And Provisi68
Other Liabilities And Provisions (Schedule Of Expected Future Payments And Sublease Recoveries) (Details) - Bow Office Building [Member] $ in Millions | Jun. 30, 2018USD ($) |
Other Liabilities And Provisions [Line Items] | |
Expected future payments, year one | $ 36 |
Expected future payments, year two | 73 |
Expected future payments, year three | 74 |
Expected future payments, year four | 74 |
Expected future payments, year five | 75 |
Expected future payments, Thereafter | 1,233 |
Expected future payments, Total | 1,565 |
Sublease recoveries, year one | (18) |
Sublease recoveries, year two | (36) |
Sublease recoveries, year three | (36) |
Sublease recoveries, year four | (36) |
Sublease recoveries, year five | (37) |
Sublease recoveries, Thereafter | (607) |
Sublease recoveries, Total | (770) |
Expected Future Payments, Interest Amount [Member] | |
Other Liabilities And Provisions [Line Items] | |
Expected future payments, year one | 31 |
Expected future payments, year two | 61 |
Expected future payments, year three | 61 |
Expected future payments, year four | 60 |
Expected future payments, year five | 59 |
Expected future payments, Thereafter | 763 |
Expected future payments, amount representing interest | 1,035 |
Present Value of Expected Future Payments [Member] | |
Other Liabilities And Provisions [Line Items] | |
Expected future payments, year one | 5 |
Expected future payments, year two | 12 |
Expected future payments, year three | 13 |
Expected future payments, year four | 14 |
Expected future payments, year five | 16 |
Expected future payments, Thereafter | 470 |
Expected future payments, present value, Total | $ 530 |
Other Liabilities and Provisi69
Other Liabilities and Provisions (Schedule of Capital Lease Obligation Payments) (Details) $ in Millions | Jun. 30, 2018USD ($) |
Capital Lease Obligation [Line Items] | |
Minimum lease payments due, next twelve months | $ 50 |
Minimum lease payments due in two years | 99 |
Minimum lease payments due in three years | 99 |
Minimum lease payments due in four years | 87 |
Minimum lease payments due in five years | 8 |
Minimum lease payments due, thereafter | 38 |
Minimum lease payments, total | 381 |
Capital Lease Future Minimum Interest Payments [Member] | |
Capital Lease Obligation [Line Items] | |
Minimum lease payments due, next twelve months | 9 |
Minimum lease payments due in two years | 15 |
Minimum lease payments due in three years | 10 |
Minimum lease payments due in four years | 4 |
Minimum lease payments due in five years | 2 |
Minimum lease payments due, thereafter | 5 |
Minimum lease payment, amount representing interest | 45 |
Capital Lease Present value of Expected Future Payments [Member] | |
Capital Lease Obligation [Line Items] | |
Minimum lease payments due, next twelve months | 41 |
Minimum lease payments due in two years | 84 |
Minimum lease payments due in three years | 89 |
Minimum lease payments due in four years | 83 |
Minimum lease payments due in five years | 6 |
Minimum lease payments due, thereafter | 33 |
Minimum lease payments, present value | $ 336 |
Asset Retirement Obligation (Sc
Asset Retirement Obligation (Schedule of Change In Asset Retirement Obligation) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |||||
Asset Retirement Obligation, Beginning of Year | $ 514 | $ 687 | $ 687 | ||
Liabilities Incurred and Acquired | $ 5 | $ 3 | 10 | 6 | 11 |
Liabilities Settled | (15) | (333) | |||
Change in Estimated Future Cash Outflows | 88 | ||||
Accretion of asset retirement obligation | 8 | $ 10 | 16 | $ 21 | 37 |
Foreign Currency Translation | (19) | 24 | |||
Asset Retirement Obligation, End of Period | $ 506 | $ 506 | $ 514 |
Asset Retirement Obligation (71
Asset Retirement Obligation (Schedule Of Asset Retirement Obligation) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Asset Retirement Obligation Disclosure [Abstract] | |||
Current Portion | $ 86 | $ 44 | |
Long-Term Portion | 420 | 470 | |
Asset Retirement Obligation, Total | $ 506 | $ 514 | $ 687 |
Share Capital (Narrative) (Deta
Share Capital (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 31, 2018 | Feb. 15, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 |
Class Of Stock [Line Items] | |||||||
Percentage of issued and outstanding shares equal to not more than authorized shares | 20.00% | ||||||
Preferred shares outstanding | 0 | 0 | |||||
Common Shares Issued under Dividend Reinvestment Plan, Shares | 31,212 | 58,480 | |||||
Common Shares Issued Under Dividend Reinvestment Plan | $ 0.4 | $ 0.6 | |||||
Dividends on Common Shares | $ 14 | $ 14 | $ 29 | $ 29 | |||
Common Stock, Dividends, Per Share, Paid | $ 0.015 | $ 0.015 | $ 0.03 | $ 0.03 | |||
Dividends, Common Shares Issued In Lieu of Cash, Value | $ 0.1 | $ 0.1 | $ 0.4 | $ 0.3 | |||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 35,000,000 | ||||||
Stock Repurchase Program, Authorized Amount | $ 400 | ||||||
Stock Repurchase Program Expiration Date | Feb. 27, 2019 | ||||||
Common Shares Purchased, Shares | 16,800,000 | ||||||
Common Shares Purchased under Normal Course Issuer Bid | $ 200 | ||||||
Payments for Repurchase of Common Stock | $ 89 | 200 | |||||
Share Capital [Member] | |||||||
Class Of Stock [Line Items] | |||||||
Common Shares Purchased under Normal Course Issuer Bid | 83 | ||||||
Accumulated Deficit [Member] | |||||||
Class Of Stock [Line Items] | |||||||
Dividends on Common Shares | 29 | $ 29 | |||||
Common Shares Purchased under Normal Course Issuer Bid | $ 117 | ||||||
Subsequent Event [Member] | |||||||
Class Of Stock [Line Items] | |||||||
Dividends Payable, Date Declared | Jul. 31, 2018 | ||||||
Common Stock, Dividends, Per Share, Declared | $ 0.015 | ||||||
Dividends Payable, Date to be Paid | Sep. 28, 2018 | ||||||
Dividends Payable, Date of Record | Sep. 14, 2018 |
Share Capital (Schedule Of Comm
Share Capital (Schedule Of Common Stock Issued And Outstanding) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Class Of Stock [Line Items] | ||
Common Shares Outstanding, Beginning of Year, Shares | 973,100,000 | 973,000,000 |
Common Shares Purchased, Shares | (16,800,000) | |
Common Shares Issued under Dividend Reinvestment Plan, Shares | 31,212 | 58,480 |
Common Shares Outstanding, End of Period, Shares | 956,300,000 | 973,100,000 |
Common Shares Outstanding, Beginning of Year | $ 4,757 | $ 4,756 |
Common Shares Purchased under Normal Course Issuer Bid | (200) | |
Common Shares Issued Under Dividend Reinvestment Plan | 0.4 | 0.6 |
Common Shares Outstanding, End of Period | 4,674 | $ 4,757 |
Share Capital [Member] | ||
Class Of Stock [Line Items] | ||
Common Shares Purchased under Normal Course Issuer Bid | $ (83) |
Share Capital (Earnings Per Com
Share Capital (Earnings Per Common Share) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Class Of Stock Disclosures [Abstract] | ||||
Net Earnings (Loss) | $ (151) | $ 331 | $ 762 | |
Weighted average common shares outstanding - Basic | 960 | 973 | 965.7 | 973 |
Weighted average common shares outstanding - Diluted | 960 | 973 | 965.7 | 973 |
Net Earnings (Loss) per Common Share Basic & Diluted | $ (0.16) | $ 0.34 | $ 0.78 |
Accumulated Other Comprehensi75
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |||||
AOCI - Foreign Currency Translation Adjustment, Beginning of Period | $ 1,053 | $ 1,184 | $ 1,029 | $ 1,200 | |
Foreign currency translation adjustment | (25) | (59) | (1) | (75) | |
AOCI - Foreign Currency Translation Adjustment, End of Period | 1,028 | 1,125 | 1,028 | 1,125 | |
AOCI - Pension and OPEB, Beginning of Period | 12 | 9 | 13 | 10 | |
Reclassification of Net Actuarial (Gains) and Losses to Net Earnings | (1) | (1) | |||
AOCI - Pension and OPEB, End of Period | 12 | 9 | 12 | 9 | |
Total Accumulated Other Comprehensive Income | $ 1,040 | $ 1,134 | $ 1,040 | $ 1,134 | $ 1,042 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) MMcf in Millions, $ in Millions | 6 Months Ended | |
Jun. 30, 2018USD ($)TermMMcf | Dec. 31, 2017USD ($) | |
Variable Interest Entity [Line Items] | ||
Accounts Payable and Accrued Liabilities, Current | $ 1,632 | $ 1,415 |
Production Field Centre [Member] | ||
Variable Interest Entity [Line Items] | ||
Number of Terms | Term | 12 | |
Length of Renewal Term, in Years | 1 year | |
Lease Expiration Date | Dec. 31, 2021 | |
Capital Lease Obligations | $ 278 | $ 314 |
Veresen Midstream Limited Partnership [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Financial Support, Term of Assessment | 8 years | |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | $ 2,382 | |
Veresen Midstream Limited Partnership [Member] | Take or Pay Commitment [Member] | ||
Variable Interest Entity [Line Items] | ||
Accounts Payable and Accrued Liabilities, Current | $ 0 | |
Veresen Midstream Limited Partnership [Member] | Minimum [Member] | ||
Variable Interest Entity [Line Items] | ||
Length of Remaining Terms, In Years | 13 years | |
Veresen Midstream Limited Partnership [Member] | Maximum [Member] | ||
Variable Interest Entity [Line Items] | ||
Length of Renewal Term, in Years | 10 years | |
Length of Remaining Terms, In Years | 27 years | |
Veresen Midstream Limited Partnership [Member] | Natural gas gathering and compression [Member] | ||
Variable Interest Entity [Line Items] | ||
Contracted Capacity Volumes | MMcf | 1,150 | |
Veresen Midstream Limited Partnership [Member] | Natural gas processing [Member] | ||
Variable Interest Entity [Line Items] | ||
Contracted Capacity Volumes | MMcf | 887 |
Compensation Plans (Schedule of
Compensation Plans (Schedule of FV Assumptions) (Details) | 6 Months Ended | |||
Jun. 30, 2018$ / shares | Jun. 30, 2017$ / shares | Jun. 30, 2018$ / shares | Jun. 30, 2017$ / shares | |
United States Of America Dollars [Member] | ||||
Fair Value Assumptions, Risk Free Interest Rate | 1.84% | 1.09% | ||
Fair Value Assumption Dividend Yield | 0.46% | 0.68% | ||
Fair Value Assumptions, Expected Volatility Rate | 57.60% | 59.17% | ||
Fair Value Assumptions, Expected Term | 1 year 9 months 18 days | 1 year 10 months 24 days | ||
Market Share Price | $ 13.05 | $ 8.80 | ||
Canadian Dollar [Member] | ||||
Fair Value Assumptions, Risk Free Interest Rate | 1.84% | 1.09% | ||
Fair Value Assumption Dividend Yield | 0.45% | 0.70% | ||
Fair Value Assumptions, Expected Volatility Rate | 54.10% | 54.94% | ||
Fair Value Assumptions, Expected Term | 2 years | 1 year 10 months 24 days | ||
Market Share Price | $ 17.17 | $ 11.41 |
Compensation Plans (Amounts Rec
Compensation Plans (Amounts Recognized For Share-Based Payment Transactions) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total Compensation Costs of Transactions Classified as Cash-Settled | $ 109 | $ (41) | $ 82 | $ (7) |
Less: Total Share-Based Compensation Costs Capitalized | (31) | 11 | (22) | |
Total Share-Based Compensation Expense | 78 | (30) | 60 | (7) |
Operating Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total Share-Based Compensation Expense | 22 | (8) | 16 | |
Administrative Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total Share-Based Compensation Expense | $ 56 | $ (22) | $ 44 | $ (7) |
Compensation Plans (Narrative)
Compensation Plans (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Liability For Cash-Settled Share-Based Payment Transactions | $ 319 | $ 327 |
Liability for share-based payment recognized in accounts payable and accrued liabilities | 267 | 152 |
Liability for share-based payment recognized in other liabilities and provisions | $ 52 | $ 175 |
Compensation Plans (Liability F
Compensation Plans (Liability For Share-Based Payment Transactions) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Liability for Unvested Cash-Settled Share-Based Payment Transactions | $ 255 | $ 274 |
Liability for Vested Cash-Settled Share-Based Payment Transactions | 64 | 53 |
Liability for Cash-Settled Share-Based Payment Transactions | $ 319 | $ 327 |
Compensation Plans (Schedule 81
Compensation Plans (Schedule of Share-based Compensation, Activity) (Details) | 6 Months Ended |
Jun. 30, 2018shares | |
Tandem Stock Appreciation Rights (TSARs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 872 |
Stock Appreciation Rights (SARs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 359 |
Performance Share Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 2,515 |
Deferred Share Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 32 |
Restricted Share Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 5,275 |
Pension and Other Post-Employ82
Pension and Other Post-Employment Benefits (Total Benefit Plan Expense Recognized) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Net Defined Periodic Benefit Cost | $ 3 | $ 4 |
Defined Contribution Plan Expense | 12 | 12 |
Total Benefit Plans Expense | 15 | 16 |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net Defined Periodic Benefit Cost | (1) | |
Defined Contribution Plan Expense | 12 | 12 |
Total Benefit Plans Expense | 12 | 11 |
OPEB [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net Defined Periodic Benefit Cost | 3 | 5 |
Total Benefit Plans Expense | $ 3 | $ 5 |
Pension and Other Post-Employ83
Pension and Other Post-Employment Benefits (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Pension and Other Postretirement Benefit Expense | $ 15 | $ 16 |
Operating Expense [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension and Other Postretirement Benefit Expense | 11 | 12 |
Administrative Expense [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension and Other Postretirement Benefit Expense | $ 4 | $ 4 |
Pension and Other Post-Employ84
Pension and Other Post-Employment Benefits (Defined Periodic Pension And OPEB Expense) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Service Cost | $ 3 | $ 4 |
Interest Cost | 5 | 6 |
Expected Return on Plan Assets | (4) | (5) |
Amortization of net actuarial (gains) and losses | (1) | (1) |
Total Net Defined Periodic Benefit Cost | 3 | 4 |
Defined Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest Cost | 4 | 4 |
Expected Return on Plan Assets | (4) | (5) |
Total Net Defined Periodic Benefit Cost | (1) | |
OPEB [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service Cost | 3 | 4 |
Interest Cost | 1 | 2 |
Amortization of net actuarial (gains) and losses | (1) | (1) |
Total Net Defined Periodic Benefit Cost | $ 3 | $ 5 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule Of Fair Value, Assets And Liabilities Measured On Recurring Basis) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Assets, Net, Current | $ 174 | $ 205 |
Risk Management Assets, Net, Long-term | 185 | 246 |
Risk Management Liabilities, Net, Current | 401 | 236 |
Risk Management Liabilities, Net, Long-term | 43 | 13 |
Guarantor Obligations, Current Carrying Value | 17 | 19 |
Other Liabilities and Provisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Guarantor Obligations, Current Carrying Value | 12 | 14 |
Accounts Payable and Accrued Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Guarantor Obligations, Current Carrying Value | 5 | 5 |
Commodity Contract [Member] | Other Current Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Assets, Gross assets | 300 | 189 |
Risk Management Assets, Gross Liabilities | (129) | (15) |
Risk Management Assets, Net, Current | 171 | 174 |
Commodity Contract [Member] | Other Noncurrent Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Assets, Gross assets | 198 | 248 |
Risk Management Assets, Gross Liabilities | (14) | (2) |
Risk Management Assets, Net, Long-term | 184 | 246 |
Commodity Contract [Member] | Other Current Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Liabilities, Gross liabilities | 529 | 250 |
Risk Management Liabilities, Gross Assets | (129) | (15) |
Risk Management Liabilities, Net, Current | 400 | 235 |
Commodity Contract [Member] | Other Liabilities and Provisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Liabilities, Gross liabilities | 57 | 15 |
Risk Management Liabilities, Gross Assets | (14) | (2) |
Risk Management Liabilities, Net, Long-term | 43 | 13 |
Foreign Exchange Contract [Member] | Other Current Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Assets, Gross assets | 3 | 31 |
Risk Management Assets, Net, Current | 3 | 31 |
Foreign Exchange Contract [Member] | Other Noncurrent Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Assets, Gross assets | 1 | |
Risk Management Assets, Net, Long-term | 1 | |
Foreign Exchange Contract [Member] | Other Current Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Liabilities, Gross liabilities | 1 | 1 |
Risk Management Liabilities, Net, Current | 1 | 1 |
Level 1 [Member] | Commodity Contract [Member] | Other Current Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Assets, Gross assets | 7 | |
Level 1 [Member] | Commodity Contract [Member] | Other Current Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Liabilities, Gross liabilities | 3 | |
Level 2 [Member] | Other Liabilities and Provisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Guarantor Obligations, Current Carrying Value | 12 | 14 |
Level 2 [Member] | Accounts Payable and Accrued Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Guarantor Obligations, Current Carrying Value | 5 | 5 |
Level 2 [Member] | Commodity Contract [Member] | Other Current Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Assets, Gross assets | 293 | 189 |
Level 2 [Member] | Commodity Contract [Member] | Other Noncurrent Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Assets, Gross assets | 198 | 248 |
Level 2 [Member] | Commodity Contract [Member] | Other Current Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Liabilities, Gross liabilities | 431 | 196 |
Level 2 [Member] | Commodity Contract [Member] | Other Liabilities and Provisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Liabilities, Gross liabilities | 38 | 15 |
Level 2 [Member] | Foreign Exchange Contract [Member] | Other Current Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Assets, Gross assets | 3 | 31 |
Level 2 [Member] | Foreign Exchange Contract [Member] | Other Noncurrent Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Assets, Gross assets | 1 | |
Level 2 [Member] | Foreign Exchange Contract [Member] | Other Current Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Liabilities, Gross liabilities | 1 | 1 |
Level 3 [Member] | Commodity Contract [Member] | Other Current Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Liabilities, Gross liabilities | 98 | $ 51 |
Level 3 [Member] | Commodity Contract [Member] | Other Liabilities and Provisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Risk Management Liabilities, Gross liabilities | $ 19 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary Of Changes In Level 3 Fair Value Measurements) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | ||
Balance, Beginning Balance | $ (51) | $ (36) |
Total Gains (Losses) | (19) | 64 |
Settlements | (47) | 3 |
Balance, Ending Balance | (117) | 31 |
Change in Unrealized Gains (Losses) Related to Assets and Liabilities Held at End of Period | $ (93) | $ 59 |
Fair Value Measurements (Quanti
Fair Value Measurements (Quantitative Information About Unobservable Inputs Used In Level 3) (Details) - WTI Options [Member] - Option Model | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Minimum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value Inputs Commodity Price Volatility | 24.00% | 17.00% |
Maximum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value Inputs Commodity Price Volatility | 100.00% | 76.00% |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Ten Percent Change in Implied Volatility [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Increase (Decrease) in Risk Management Assets and Liabilities | $ 7 | $ 2 |
Financial Instruments And Ris89
Financial Instruments And Risk Management (Narrative) (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018USD ($)contractitem$ / $ | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)contractitem$ / $ | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($)item | |
Derivative [Line Items] | |||||
Realized Gain (Loss) on Derivatives | $ 17,000,000 | $ 17,000,000 | $ (8,000,000) | $ (10,000,000) | |
Unrealized Gain (Loss) on Derivatives | $ (334,000,000) | 134,000,000 | $ (284,000,000) | 498,000,000 | |
Number of Credit Risk Derivatives Held | contract | 0 | 0 | |||
Collateral balances | $ 0 | $ 0 | |||
Percent of Accounts Receivable and Financial Derivative credit exposures with investment grade counterparties | 92.00% | 92.00% | |||
Number Of Counterparties With More Than Ten Percent Of The Fair Value Of The Outstanding Risk Management Contracts | item | 2 | 2 | 3 | ||
Guarantor Obligations, Current Carrying Value | $ 17,000,000 | $ 17,000,000 | $ 19,000,000 | ||
Minimum [Member] | |||||
Derivative [Line Items] | |||||
Guarantor Obligations, Term | P3Y | ||||
Maximum [Member] | |||||
Derivative [Line Items] | |||||
Guarantor Obligations, Term | P6Y | ||||
Guarantor Obligations, Maximum Exposure, Undiscounted | 287,000,000 | $ 287,000,000 | |||
Counterparty One [Member] | |||||
Derivative [Line Items] | |||||
Percent Of The Fair Value Of Outstanding In The Money Net Risk Management Contracts | 47.00% | 56.00% | |||
Counterparty Two [Member] | |||||
Derivative [Line Items] | |||||
Percent Of The Fair Value Of Outstanding In The Money Net Risk Management Contracts | 11.00% | 11.00% | |||
Counterparty Three [Member] | |||||
Derivative [Line Items] | |||||
Percent Of The Fair Value Of Outstanding In The Money Net Risk Management Contracts | 11.00% | ||||
U.S. Dollar Denominated Currency Swaps, Maturing Remainder of Fiscal Year {Member] | |||||
Derivative [Line Items] | |||||
Foreign currency swap, contract amount outstanding | $ 358,000,000 | $ 358,000,000 | |||
Investment Foreign Currency, Contract, Transaction Type Flag | Buy | ||||
Derivative, Average Forward Exchange Rate | $ / $ | 0.76060 | 0.76060 | |||
U.S. Dollar Denominated Currency Swaps Maturing, Next Twelve Months [Member] | |||||
Derivative [Line Items] | |||||
Foreign currency swap, contract amount outstanding | $ 250,000,000 | $ 250,000,000 | |||
Investment Foreign Currency, Contract, Transaction Type Flag | Buy | ||||
Derivative, Average Forward Exchange Rate | $ / $ | 0.75810 | 0.75810 | |||
Other Derivative Contracts [Member] | |||||
Derivative [Line Items] | |||||
Realized Gain (Loss) on Derivatives | $ 2,000,000 | 1,000,000 | $ 3,000,000 | 3,000,000 | |
Unrealized Gain (Loss) on Derivatives | $ (1,000,000) | $ (1,000,000) | $ (1,000,000) | $ (1,000,000) |
Financial Instruments And Ris90
Financial Instruments And Risk Management (Risk Management Positions) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($)$ / bbl$ / McfMMcfMBbls | |
Derivative [Line Items] | |
Net Premiums Received on Unexpired Options | $ (4) |
Other Derivative Contracts, Net | (17) |
Risk Management and Other Derivative Guarantee, at Fair Value and net Premium Received | (102) |
Currency Swap | |
Derivative [Line Items] | |
Foreign Currency Swaps, at Fair value, Net | $ 3 |
Oil [Member] | WTI Fixed Price, Maturing Remainder of Fiscal Year [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | MBbls | 102.3 |
Term | Dec. 31, 2018 |
Average Price, Fixed Price Contracts | $ / bbl | 55.52 |
Price Risk Derivatives, at Fair Value, Net | $ (280) |
Oil [Member] | WTI Fixed Price, Maturing Next Twelve Months [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | MBbls | 35 |
Term | Dec. 31, 2019 |
Average Price, Fixed Price Contracts | $ / bbl | 60.31 |
Price Risk Derivatives, at Fair Value, Net | $ (62) |
Oil [Member] | WTI Fixed Price Swaptions [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | MBbls | 24 |
Price Risk Derivatives, at Fair Value, Net | $ (29) |
Average Price, Options/Collars | $ / bbl | 63.13 |
Oil [Member] | WTI Three-Way Options, Maturing Remainder Of Fiscal Year [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | MBbls | 16 |
Term | Dec. 31, 2018 |
Price Risk Derivatives, at Fair Value, Net | $ (46) |
Oil [Member] | WTI Three-Way Options, Maturing Remainder Of Fiscal Year [Member] | Sold [Member] | Call Option [Member] | |
Derivative [Line Items] | |
Average Price, Options/Collars | $ / bbl | 54.49 |
Oil [Member] | WTI Three-Way Options, Maturing Remainder Of Fiscal Year [Member] | Sold [Member] | Put Option [Member] | |
Derivative [Line Items] | |
Average Price, Options/Collars | $ / bbl | 36.88 |
Oil [Member] | WTI Three-Way Options, Maturing Remainder Of Fiscal Year [Member] | Bought [Member] | Put Option [Member] | |
Derivative [Line Items] | |
Average Price, Options/Collars | $ / bbl | 47.17 |
Oil [Member] | WTI Costless Collars, Maturing Remainder of Fiscal Year [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | MBbls | 10 |
Term | Dec. 31, 2018 |
Price Risk Derivatives, at Fair Value, Net | $ (24) |
Oil [Member] | WTI Costless Collars, Maturing Remainder of Fiscal Year [Member] | Sold [Member] | Call Option [Member] | |
Derivative [Line Items] | |
Average Price, Options/Collars | $ / bbl | 57.08 |
Oil [Member] | WTI Costless Collars, Maturing Remainder of Fiscal Year [Member] | Bought [Member] | Put Option [Member] | |
Derivative [Line Items] | |
Average Price, Options/Collars | $ / bbl | 45 |
Oil [Member] | WTI Three-Way Options, Maturing Next Twelve Months [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | MBbls | 42 |
Term | Dec. 31, 2019 |
Price Risk Derivatives, at Fair Value, Net | $ (47) |
Oil [Member] | WTI Three-Way Options, Maturing Next Twelve Months [Member] | Sold [Member] | Call Option [Member] | |
Derivative [Line Items] | |
Average Price, Options/Collars | $ / bbl | 68.38 |
Oil [Member] | WTI Three-Way Options, Maturing Next Twelve Months [Member] | Sold [Member] | Put Option [Member] | |
Derivative [Line Items] | |
Average Price, Options/Collars | $ / bbl | 48.21 |
Oil [Member] | WTI Three-Way Options, Maturing Next Twelve Months [Member] | Bought [Member] | Put Option [Member] | |
Derivative [Line Items] | |
Average Price, Options/Collars | $ / bbl | 59.11 |
Oil [Member] | Basis Contracts, Maturing Remainder of Year [Member] | |
Derivative [Line Items] | |
Term | Dec. 31, 2018 |
Price Risk Derivatives, at Fair Value, Net | $ 60 |
Oil [Member] | Basis Contracts, Maturing Next Twelve to Twenty Four Months [Member] | |
Derivative [Line Items] | |
Price Risk Derivatives, at Fair Value, Net | $ 40 |
Natural Gas Liquids [Member] | Propane Fixed Price, Maturing Remainder of Fiscal Year [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | MBbls | 9 |
Term | Dec. 31, 2018 |
Average Price, Fixed Price Contracts | $ / bbl | 39.05 |
Price Risk Derivatives, at Fair Value, Net | $ (1) |
Natural Gas Liquids [Member] | Butane Fixed Price, Maturing Remainder of Fiscal Year [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | MBbls | 7 |
Term | Dec. 31, 2018 |
Average Price, Fixed Price Contracts | $ / bbl | 43.49 |
Price Risk Derivatives, at Fair Value, Net | $ (2) |
Oil and NGLs [Member] | |
Derivative [Line Items] | |
Price Risk Derivatives, at Fair Value, Net | (391) |
Natural Gas [Member] | |
Derivative [Line Items] | |
Price Risk Derivatives, at Fair Value, Net | $ 307 |
Natural Gas [Member] | Basis Contracts, Maturing Remainder of Year [Member] | |
Derivative [Line Items] | |
Term | Dec. 31, 2018 |
Price Risk Derivatives, at Fair Value, Net | $ 77 |
Natural Gas [Member] | NYMEX Fixed Price Swaptions [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | MMcf | 300 |
Price Risk Derivatives, at Fair Value, Net | $ (8) |
Average Price, Options/Collars | $ / Mcf | 2.99 |
Natural Gas [Member] | NYMEX Fixed Price, Maturing Remainder Of Fiscal Year [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | MMcf | 1,084 |
Term | Dec. 31, 2018 |
Average Price, Fixed Price Contracts | $ / Mcf | 3.02 |
Price Risk Derivatives, at Fair Value, Net | $ 14 |
Natural Gas [Member] | NYMEX Call Options, Maturing Remainder Of Fiscal Year [Member] | Sold [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | MMcf | 230 |
Term | Dec. 31, 2018 |
Price Risk Derivatives, at Fair Value, Net | $ (1) |
Average Price, Options/Collars | $ / Mcf | 3.75 |
Natural Gas [Member] | NYMEX Call Options, Maturing Next Twelve Months [Member] | Sold [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | MMcf | 230 |
Term | Dec. 31, 2019 |
Price Risk Derivatives, at Fair Value, Net | $ (4) |
Average Price, Options/Collars | $ / Mcf | 3.75 |
Natural Gas [Member] | NYMEX Call Options, Maturing Next Twelve Months [Member] | Bought [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | MMcf | 230 |
Term | Dec. 31, 2019 |
Average Price, Options/Collars | $ / Mcf | 3.75 |
Natural Gas [Member] | NYMEX Call Options, Maturing In Two Years [Member] | Sold [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | MMcf | 230 |
Term | Dec. 31, 2020 |
Average Price, Options/Collars | $ / Mcf | 3.25 |
Natural Gas [Member] | NYMEX Fixed Price, Maturing Next Twelve Months [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | MMcf | 699 |
Term | Dec. 31, 2019 |
Average Price, Fixed Price Contracts | $ / Mcf | 2.72 |
Price Risk Derivatives, at Fair Value, Net | $ (20) |
Natural Gas [Member] | Basis Contracts, Maturing Next Twelve Months [Member] | |
Derivative [Line Items] | |
Term | Dec. 31, 2019 |
Price Risk Derivatives, at Fair Value, Net | $ 127 |
Natural Gas [Member] | Basis Contracts, Maturing In Two Years [Member[ | |
Derivative [Line Items] | |
Term | Dec. 31, 2020 |
Price Risk Derivatives, at Fair Value, Net | $ 94 |
Natural Gas [Member] | Basis Contracts, Maturing After Three Years [Member] | |
Derivative [Line Items] | |
Price Risk Derivatives, at Fair Value, Net | $ 28 |
Minimum [Member] | Oil [Member] | WTI Fixed Price Swaptions [Member] | |
Derivative [Line Items] | |
Term | Jan. 1, 2019 |
Minimum [Member] | Oil [Member] | Basis Contracts, Maturing Next Twelve to Twenty Four Months [Member] | |
Derivative [Line Items] | |
Term | Jan. 1, 2019 |
Minimum [Member] | Natural Gas [Member] | NYMEX Fixed Price Swaptions [Member] | |
Derivative [Line Items] | |
Term | Jan. 1, 2019 |
Minimum [Member] | Natural Gas [Member] | Basis Contracts, Maturing After Three Years [Member] | |
Derivative [Line Items] | |
Term | Jan. 1, 2021 |
Maximum [Member] | Oil [Member] | WTI Fixed Price Swaptions [Member] | |
Derivative [Line Items] | |
Term | Jun. 30, 2019 |
Maximum [Member] | Oil [Member] | Basis Contracts, Maturing Next Twelve to Twenty Four Months [Member] | |
Derivative [Line Items] | |
Term | Dec. 31, 2020 |
Maximum [Member] | Natural Gas [Member] | NYMEX Fixed Price Swaptions [Member] | |
Derivative [Line Items] | |
Term | Jun. 30, 2019 |
Maximum [Member] | Natural Gas [Member] | Basis Contracts, Maturing After Three Years [Member] | |
Derivative [Line Items] | |
Term | Dec. 31, 2023 |
Financial Instruments and Ris91
Financial Instruments and Risk Management (Earnings Impact of Realized and Unrealized Gains (Losses) On Risk Management Positions) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Realized Gain (Loss) on Derivatives | $ 17 | $ 17 | $ (8) | $ (10) |
Unrealized Gain (Loss) on Derivatives | (334) | 134 | (284) | 498 |
Realized and Unrealized Gain (Loss) on Risk Management | (317) | 151 | (292) | 488 |
Revenue [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Realized Gain (Loss) on Derivatives | 14 | 19 | (18) | (5) |
Unrealized Gain (Loss) on Derivatives | (326) | 110 | (258) | 472 |
Realized and Unrealized Gain (Loss) on Risk Management | (312) | 129 | (276) | 467 |
Transportation and Processing [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Realized Gain (Loss) on Derivatives | (4) | |||
Realized and Unrealized Gain (Loss) on Risk Management | (4) | |||
Foreign Currency Gain (Loss) [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Realized Gain (Loss) on Derivatives | 3 | (2) | 10 | (1) |
Unrealized Gain (Loss) on Derivatives | (8) | 24 | (26) | 26 |
Realized and Unrealized Gain (Loss) on Risk Management | $ (5) | $ 22 | $ (16) | $ 25 |
Financial Instruments And Ris92
Financial Instruments And Risk Management (Reconciliation Of Unrealized Risk Management Positions) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative [Line Items] | ||||
Fair Value of Contracts, Beginning of Year | $ 183 | |||
Fair Value of Contracts Realized During the Period | $ (17) | $ (17) | 8 | $ 10 |
Fair Value of Contracts Outstanding | (98) | (98) | ||
Net Premiums Received on Unexpired Options | (4) | (4) | ||
Fair Value of Contracts and Net Premiums Received, End of Period | (102) | (102) | ||
Unrealized Gain (Loss) on Derivatives | (334) | 134 | (284) | 498 |
Commodity Contract [Member] | ||||
Derivative [Line Items] | ||||
Increase (Decrease) in Derivative Assets and Liabilities | (292) | 488 | ||
Other Derivative Contracts [Member] | ||||
Derivative [Line Items] | ||||
Increase (Decrease) in Derivative Assets and Liabilities | 3 | |||
Fair Value of Contracts Realized During the Period | (2) | (1) | (3) | (3) |
Unrealized Gain (Loss) on Derivatives | $ (1) | $ (1) | $ (1) | $ (1) |
Financial Instruments And Ris93
Financial Instruments And Risk Management (Unrealized Risk Management Position) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Risk Management, Current asset | $ 174 | $ 205 |
Risk Management, Long-term asset | 185 | 246 |
Risk Management, Total asset | 359 | 451 |
Risk Management, Current liability | 401 | 236 |
Risk Management, Long-term liability | 43 | 13 |
Risk Management, Total liability | 444 | 249 |
Guarantor Obligations, Current Carrying Value | 17 | 19 |
Risk Management and Other Derivative Guarantee, at Fair Value, Net | (102) | 183 |
Accounts Payable and Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Guarantor Obligations, Current Carrying Value | 5 | 5 |
Other Liabilities and Provisions [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Guarantor Obligations, Current Carrying Value | $ 12 | $ 14 |
Supplementary Information (Net
Supplementary Information (Net Change in Non-Cash Working Capital) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Supplemental Cash Flow Elements [Abstract] | ||||
Accounts receivable and accrued revenues | $ (142) | $ 33 | $ (144) | $ 103 |
Accounts payable and accrued liabilities | 47 | (37) | 40 | (171) |
Income tax receivable and payable | (11) | (125) | (10) | (221) |
Net change in non-cash working capital | $ (106) | $ (129) | $ (114) | $ (289) |
Supplementary Information (Non-
Supplementary Information (Non-Cash Activity) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | |||||
Asset retirement obligation incurred | $ 5 | $ 3 | $ 10 | $ 6 | $ 11 |
Property, plant and equipment accruals | 72 | 34 | 81 | 78 | |
Capitalized long-term incentives | 31 | (11) | (5) | ||
Property additions/dispositions | $ 91 | $ 159 | 140 | $ 165 | |
Common shares issued under dividend reinvestment plan | $ 0.4 | $ 0.6 |
Commitments and Contingencies96
Commitments and Contingencies (Details) $ in Millions | Jun. 30, 2018USD ($) |
Long-term Commitment [Line Items] | |
Operating Leases, Future Minimum Payments, Remainder of Fiscal Year | $ 9 |
Operating Leases, Future Minimum Payments, Due in Two Years | 17 |
Operating Leases, Future Minimum Payments, Due in Three Years | 16 |
Operating Leases, Future Minimum Payments, Due in Four Years | 16 |
Operating Leases, Future Minimum Payments, Due in Five Years | 16 |
Operating Leases, Future Minimum Payments, Due Thereafter | 50 |
Operating Leases, Future Minimum Payments Due | 124 |
Total Commitment, Due Remainder of Fiscal Year | 426 |
Total Commitment, Due in Second Year | 759 |
Total Commitment, Due in Third Year | 709 |
Total Commitment, Due in Fourth Year | 607 |
Total Commitment, Due in Fifth Year | 571 |
Total Commitment, Due Thereafter | 2,566 |
Total Commitment | 5,638 |
Transportation And Processing Commitments [Member] | |
Long-term Commitment [Line Items] | |
Purchase Obligation, Remainder of Fiscal Year | 294 |
Purchase Obligation, Due in Second Year | 692 |
Purchase Obligation, Due in Third Year | 669 |
Purchase Obligation, Due in Fourth Year | 582 |
Purchase Obligation, Due in Fifth Year | 555 |
Purchase Obligation, Due Thereafter | 2,516 |
Purchase Obligation | 5,308 |
Drilling And Field Services Commitments [Member] | |
Long-term Commitment [Line Items] | |
Purchase Obligation, Remainder of Fiscal Year | 123 |
Purchase Obligation, Due in Second Year | 50 |
Purchase Obligation, Due in Third Year | 24 |
Purchase Obligation, Due in Fourth Year | 9 |
Purchase Obligation | $ 206 |