Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 25, 2019 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2019 | |
Entity Registrant Name | ENCANA CORP | |
Entity Central Index Key | 0001157806 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 1,299,112,236 | |
Trading Symbol | ECA | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity File Number | 1-15226 | |
Entity Tax Identification Number | 98-0355077 | |
Entity Address, Address Line One | Suite 4400 | |
Entity Address, Address Line Two | 500 Centre Street S.E. | |
Entity Address, Address Line Three | P.O. Box 2850 | |
Entity Address, City or Town | Calgary | |
Entity Address, State or Province | AB | |
Entity Address, Country | CA | |
Entity Address, Postal Zip Code | T2P 2S5 | |
City Area Code | 403 | |
Local Phone Number | 645-2000 | |
Entity Incorporation, State or Country Code | Z4 | |
Title of 12(b) Security | Common Shares | |
Security Exchange Name | NYSE |
Condensed Consolidated Statemen
Condensed Consolidated Statement Of Earnings (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues | ||||
Product and service revenues | $ 1,771 | $ 1,488 | $ 5,191 | $ 4,025 |
Gains (losses) on risk management, net | 81 | (241) | (84) | (517) |
Sublease revenues | 19 | 15 | 54 | 50 |
Total Revenues | 1,871 | 1,262 | 5,161 | 3,558 |
Operating Expenses | ||||
Production, mineral and other taxes | 66 | 45 | 187 | 109 |
Transportation and processing | 398 | 278 | 1,148 | 799 |
Operating | 193 | 124 | 545 | 372 |
Purchased product | 264 | 282 | 784 | 803 |
Depreciation, depletion and amortization | 545 | 349 | 1,454 | 924 |
Accretion of asset retirement obligation | 9 | 8 | 28 | 24 |
Administrative | 81 | 57 | 389 | 187 |
Total Operating Expenses | 1,556 | 1,143 | 4,535 | 3,218 |
Operating Income (Loss) | 315 | 119 | 626 | 340 |
Other (Income) Expenses | ||||
Interest | 99 | 92 | 285 | 265 |
Foreign exchange (gain) loss, net | 30 | (23) | (62) | 93 |
(Gain) loss on divestitures, net | (5) | 0 | (4) | (4) |
Other (gains) losses, net | (1) | 5 | 24 | 2 |
Total Other (Income) Expenses | 123 | 74 | 243 | 356 |
Net Earnings (Loss) Before Income Tax | 192 | 45 | 383 | (16) |
Income tax expense (recovery) | 43 | 6 | 143 | (55) |
Net Earnings (Loss) | $ 149 | $ 39 | $ 240 | $ 39 |
Net Earnings (Loss) per Common Share | ||||
Basic & Diluted | $ 0.11 | $ 0.04 | $ 0.18 | $ 0.04 |
Weighted Average Common Shares Outstanding (millions) | ||||
Basic & Diluted | 1,322.8 | 955.1 | 1,308.4 | 962.2 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement Of Comprehensive Income (unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net Earnings (Loss) | $ 149 | $ 39 | $ 240 | $ 39 |
Other Comprehensive Income (Loss), Net of Tax | ||||
Foreign currency translation adjustment | (6) | 22 | 32 | 21 |
Pension and other post-employment benefit plans | 0 | 0 | (24) | (1) |
Other Comprehensive Income (Loss) | (6) | 22 | 8 | 20 |
Comprehensive Income (Loss) | $ 143 | $ 61 | $ 248 | $ 59 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheet (unaudited) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 138 | $ 1,058 |
Accounts receivable and accrued revenues | 1,127 | 789 |
Risk management | 284 | 554 |
Income tax receivable | 316 | 275 |
Total Current Assets | 1,865 | 2,676 |
Oil and natural gas properties, based on full cost accounting | ||
Proved properties | 50,094 | 41,241 |
Unproved properties | 3,943 | 3,730 |
Other | 892 | 2,122 |
Property, plant and equipment | 54,929 | 47,093 |
Less: Accumulated depreciation, depletion and amortization | (39,803) | (38,121) |
Property, plant and equipment, net | 15,126 | 8,972 |
Other Assets | 1,202 | 147 |
Risk Management | 47 | 161 |
Deferred Income Taxes | 521 | 835 |
Goodwill | 2,595 | 2,553 |
Total Assets | 21,356 | 15,344 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 2,191 | 1,490 |
Current portion of operating lease liabilities | 79 | 0 |
Income tax payable | 1 | 1 |
Risk management | 10 | 25 |
Current portion of long-term debt | 0 | 500 |
Total Current Liabilities | 2,281 | 2,016 |
Long-Term Debt | 7,024 | 3,698 |
Operating Lease Liabilities | 972 | 0 |
Other Liabilities and Provisions | 548 | 1,769 |
Risk Management | 14 | 22 |
Asset Retirement Obligation | 414 | 365 |
Deferred Income Taxes | 182 | 27 |
Total Liabilities | 11,435 | 7,897 |
Commitments and Contingencies | ||
Shareholders’ Equity | ||
Share capital - authorized unlimited common shares 2019 issued and outstanding: 1,299.2 million shares (2018: 952.5 million shares) | 7,061 | 4,656 |
Paid in surplus | 1,402 | 1,358 |
Retained earnings | 452 | 435 |
Accumulated other comprehensive income | 1,006 | 998 |
Total Shareholders’ Equity | 9,921 | 7,447 |
Total Liabilities and Shareholders' Equity | $ 21,356 | $ 15,344 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheet (Parenthetical) (unaudited) - shares shares in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Common Stock, Shares, Issued | 1,299.2 | 952.5 |
Common Stock, Shares, Outstanding | 1,299.2 | 952.5 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement Of Changes In Shareholders' Equity (unaudited) - USD ($) $ in Millions | Total | Substantial Issuer Bid [Member] | Normal Course Issuer Bid [Member] | Share Capital [Member] | Share Capital [Member]Substantial Issuer Bid [Member] | Share Capital [Member]Normal Course Issuer Bid [Member] | Paid In Surplus [Member] | Paid In Surplus [Member]Substantial Issuer Bid [Member] | Retained Earnings (Accumulated Deficit) [Member] | Retained Earnings (Accumulated Deficit) [Member]Normal Course Issuer Bid [Member] | Accumulated Other Comprehensive Income [Member] |
Balance, Beginning of Period at Dec. 31, 2017 | $ 6,728 | $ 4,757 | $ 1,358 | $ (429) | $ 1,042 | ||||||
Net Earnings (Loss) | 39 | 39 | |||||||||
Dividends on Common Shares | (43) | (43) | |||||||||
Common Shares Purchased | $ (250) | $ (102) | $ (148) | ||||||||
Common Shares Issued Under Dividend Reinvestment Plan | 0 | 0 | |||||||||
Other Comprehensive Income (Loss) | 20 | 20 | |||||||||
Balance, End of Period at Sep. 30, 2018 | 6,494 | 4,655 | 1,358 | (581) | 1,062 | ||||||
Balance, Beginning of Period at Dec. 31, 2017 | 6,728 | 4,757 | 1,358 | (429) | 1,042 | ||||||
Common Shares Purchased | (102) | (102) | (148) | ||||||||
Common Shares Issued Under Dividend Reinvestment Plan | 0.6 | ||||||||||
Common Shares Issued | 0 | ||||||||||
Balance, End of Period at Dec. 31, 2018 | 7,447 | 4,656 | 1,358 | 435 | 998 | ||||||
Balance, Beginning of Period at Jun. 30, 2018 | 6,497 | 4,674 | 1,358 | (575) | 1,040 | ||||||
Net Earnings (Loss) | 39 | 39 | |||||||||
Dividends on Common Shares | (14) | (14) | |||||||||
Common Shares Purchased | (50) | (19) | (31) | ||||||||
Common Shares Issued Under Dividend Reinvestment Plan | 0 | 0 | |||||||||
Other Comprehensive Income (Loss) | 22 | 22 | |||||||||
Balance, End of Period at Sep. 30, 2018 | 6,494 | 4,655 | 1,358 | (581) | 1,062 | ||||||
Balance, Beginning of Period at Dec. 31, 2018 | 7,447 | 4,656 | 1,358 | 435 | 998 | ||||||
Net Earnings (Loss) | 240 | 240 | |||||||||
Dividends on Common Shares | (77) | 0 | (77) | ||||||||
Common Shares Purchased | (1,073) | $ (213) | $ (1,037) | $ (257) | $ (816) | $ 44 | $ (221) | ||||
Common Shares Issued Under Dividend Reinvestment Plan | 0 | ||||||||||
Common Shares Issued | 3,478 | 3,478 | |||||||||
Other Comprehensive Income (Loss) | 8 | 8 | |||||||||
Impact of Adoption of Topic 842 | 75 | 75 | |||||||||
Balance, End of Period at Sep. 30, 2019 | 9,921 | 7,061 | 1,402 | 452 | 1,006 | ||||||
Balance, Beginning of Period at Jun. 30, 2019 | 10,015 | 7,318 | 1,358 | 327 | 1,012 | ||||||
Net Earnings (Loss) | 149 | 149 | |||||||||
Dividends on Common Shares | (24) | 0 | (24) | ||||||||
Common Shares Purchased | $ (213) | $ (257) | $ 44 | ||||||||
Common Shares Issued Under Dividend Reinvestment Plan | 0 | ||||||||||
Other Comprehensive Income (Loss) | (6) | (6) | |||||||||
Balance, End of Period at Sep. 30, 2019 | $ 9,921 | $ 7,061 | $ 1,402 | $ 452 | $ 1,006 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement Of Changes In Shareholders' Equity (Parenthetical) (unaudited) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement Of Stockholders Equity [Abstract] | ||||
Dividends on Common Shares, per share | $ 0.01875 | $ 0.015 | $ 0.05625 | $ 0.045 |
Condensed Consolidated Statem_5
Condensed Consolidated Statement Of Cash Flows (unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Operating Activities | |||||
Net Earnings (Loss) | $ 149 | $ 39 | $ 240 | $ 39 | |
Depreciation, depletion and amortization | 545 | 349 | 1,454 | 924 | |
Accretion of asset retirement obligation | 9 | 8 | 28 | 24 | $ 32 |
Deferred income taxes | 44 | 6 | 140 | 6 | |
Unrealized (gain) loss on risk management | 41 | 164 | 385 | 422 | |
Unrealized foreign exchange (gain) loss | 49 | (23) | (11) | 156 | |
Foreign exchange on settlements | (18) | (1) | (53) | (47) | |
(Gain) loss on divestitures, net | (5) | 0 | (4) | (4) | |
Other | 3 | 47 | (63) | 55 | |
Net change in other assets and liabilities | (29) | (17) | (55) | (33) | |
Net change in non-cash working capital | (32) | 313 | 130 | 199 | |
Cash From (Used in) Operating Activities | 756 | 885 | 2,191 | 1,741 | |
Investing Activities | |||||
Capital expenditures | (566) | (523) | (2,052) | (1,626) | |
Acquisitions | (25) | (15) | (66) | (17) | |
Corporate acquisition, net of cash and restricted cash acquired | 0 | 0 | 94 | 0 | |
Proceeds from divestitures | 171 | 24 | 177 | 89 | |
Net change in investments and other | (142) | (8) | (118) | 72 | |
Cash From (Used in) Investing Activities | (562) | (522) | (1,965) | (1,482) | |
Financing Activities | |||||
Net issuance (repayment) of revolving long-term debt | (21) | 0 | 740 | 0 | |
Repayment of long-term debt | 0 | 0 | (500) | 0 | |
Purchase of common shares | (213) | (50) | (1,250) | (250) | |
Dividends on common shares | (24) | (14) | (77) | (43) | |
Finance lease payments and other financing arrangements | (22) | (23) | (63) | (68) | |
Cash From (Used in) Financing Activities | (280) | (87) | (1,150) | (361) | |
Foreign Exchange Gain (Loss) on Cash, Cash Equivalents and Restricted Cash Held in Foreign Currency | 0 | 3 | 4 | (2) | |
Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | (86) | 279 | (920) | (104) | |
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 224 | 336 | 1,058 | 719 | 719 |
Cash, Cash Equivalents and Restricted Cash, End of Period | 138 | 615 | 138 | 615 | $ 1,058 |
Cash, End of Period | 44 | 30 | 44 | 30 | |
Cash Equivalents, End of Period | 94 | 585 | 94 | 585 | |
Restricted Cash, End of Period | $ 0 | $ 0 | $ 0 | $ 0 |
Basis of Presentation and Princ
Basis of Presentation and Principles of Consolidation | 9 Months Ended |
Sep. 30, 2019 | |
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, 2018, which are included in Item 8 of Encana’s 2018 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, 2018, 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 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 Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2019 | |
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, 2019, Encana adopted ASC Topic 842, Leases (“Topic 842”) and related amendments, using the modified retrospective approach recognizing a cumulative effect adjustment at the beginning of the reporting period in which Topic 842 was applied. Results for reporting the periods beginning after January 1, 2019, are presented in accordance with Topic 842, while prior periods have not been restated and are reported in accordance with ASC Topic 840, Leases (“Topic 840”). On transition, Encana elected certain practical expedients permitted under Topic 842 which include: • No reassessment of the classification of leases previously assessed under Topic 840, whether expired or existing contracts contain leases, or initial direct costs of existing leases; and • Application of Topic 842 prospectively to all new or modified land easements after January 1, 2019. Encana also elected the short-term lease exemption, which does not require a right-of-use (“ROU”) asset or lease liability to be recognized on the Consolidated Balance Sheet when the lease term is 12 months or less. The policy and disclosures required under Topic 842 are included in Note 11, Leases. In accordance with Topic 842, Encana recognize d a ROU asset and corresponding lease liability for all operating leases on the Consolidated Balance Sheet, other than leases with lease terms of 12 months or less. Prior to the adoption of Topic 842, operating leases were not recognized on the Consolidated Balance Sheet. There w as no impact to finance leases on transition to Topic 842. The impact from recognizing operating leases on Encana’s Condensed Consolidated Balance Sheet is as follows: Restated Reported as at Impact of Balances as at (US$ millions) December 31, 2018 Adoption January 1, 2019 Property, Plant and Equipment, at cost: Oil and natural gas properties, based on full cost accounting Proved properties $ 41,241 $ - $ 41,241 Unproved properties 3,730 - 3,730 Other 2,122 (1,261 ) 861 Property, plant and equipment 47,093 (1,261 ) 45,832 Less: accumulated depreciation, depletion and amortization (38,121 ) 128 (37,993 ) Property, plant and equipment, net 8,972 (1,133 ) (1 ) 7,839 Other Assets 147 1,015 (1), (2 ) 1,162 Deferred Income Taxes 835 (28 ) 807 Total Assets 15,344 (146 ) 15,198 Current Liabilities Accounts payable and accrued liabilities 1,490 (12 ) (1 ) 1,478 Current portion of operating lease liabilities - 67 (2 ) 67 Income tax payable 1 - 1 Risk management 25 - 25 Current portion of long-term debt 500 - 500 2,016 55 2,071 Operating Lease Liabilities - 948 (2 ) 948 Other Liabilities and Provisions 1,769 (1,224 ) (1 ) 545 Total Liabilities 7,897 (221 ) 7,676 Retained Earnings 435 75 (1 ) 510 Total Shareholders’ Equity 7,447 75 7,522 Total Liabilities and Shareholders’ Equity $ 15,344 $ (146 ) $ 15,198 (1) In accordance with Topic 840, Encana accounted for The Bow office building as a failed sales leaseback and at the effective date of January 1, 2019, The Bow office building remained as such. On transition to Topic 842, Encana re-assessed whether a sale would have occurred at the effective date and determined that a sale occurred. As a result, Encana derecognized the asset and financing liability resulting from the failed sale leaseback transaction measured under Topic 840, recognizing the difference as an adjustment to retained earnings in the Condensed Consolidated Balance Sheet. Upon transition to Topic 842, The Bow office building was determined to be an operating lease for which a ROU asset and corresponding liability was recorded at the present value of remaining minimum lease payments. (2) ROU assets for operating leases were measured at the amount equal to the lease liability and the unamortized balance of any lease incentives prior to the transition date. The lease liabilities for operating leases were measured at the present value of the remaining minimum lease payments outstanding as at January 1, 2019. Although Topic 842 did not have a material impact on the Condensed Consolidated Statements of Earnings or Cash Flows, the change in the accounting of The Bow office building resulted in: i) operating lease expense under Topic 842 reported in administrative expense, whereas for the comparative periods presented under Topic 840, Encana recorded depreciation and interest expense in the Condensed Consolidated Statement of Earnings; and ii) cash outflows presented in cash used in operating activities under Topic 842, whereas for the comparative periods presented under Topic 840, interest and financing cash outflows are presented in cash used in operating activities and cash used in financing activities, respectively, in the Condensed Consolidated Statement of Cash Flows. On January 1, 2019, Encana adopted 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”). While Encana has other post-employment benefit plans which were affected by the U.S. Tax Reform, the impact was not material to the Company’s Consolidated Financial Statements. As a result, the Company did not take the election provided in the amendment. New Standards Issued Not Yet Adopted 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 does not expect the amendment to have a material impact on the Company’s Consolidated Financial Statements. |
Segmented Information
Segmented Information | 9 Months Ended |
Sep. 30, 2019 | |
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 center. • 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 center. • China Operations included the exploration for, development of, and production of oil, NGLs and natural gas and other related activities within the China cost center. The Company terminated its production sharing contract with the China National Offshore Oil Corporation (“CNOOC”) and exited its China Operations effective July 31, 2019. • 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. As of February 14, 2019, Encana’s segmented results reflect the business combination as discussed in Note 8. Results of Operations (For the three months ended September 30) Segment and Geographic Information Canadian Operations USA Operations China Operations (1) 2019 2018 2019 2018 2019 2018 Revenues Product and service revenues $ 377 $ 453 $ 1,097 $ 718 $ 3 $ - Gains (losses) on risk management, net 87 8 35 (84 ) - - Sublease revenues - - - - - - Total Revenues 464 461 1,132 634 3 - Operating Expenses Production, mineral and other taxes 3 4 63 41 - - Transportation and processing 211 211 125 34 - - Operating 32 34 151 80 4 - Depreciation, depletion and amortization 100 95 438 241 - - Total Operating Expenses 346 344 777 396 4 - Operating Income (Loss) $ 118 $ 117 $ 355 $ 238 $ (1 ) $ - Market Optimization Corporate & Other Consolidated 2019 2018 2019 2018 2019 2018 Revenues Product and service revenues $ 294 $ 317 $ - $ - $ 1,771 $ 1,488 Gains (losses) on risk management, net - (1 ) (41 ) (164 ) 81 (241 ) Sublease revenues - - 19 15 19 15 Total Revenues 294 316 (22 ) (149 ) 1,871 1,262 Operating Expenses Production, mineral and other taxes - - - - 66 45 Transportation and processing 62 33 - - 398 278 Operating 6 8 - 2 193 124 Purchased product 264 282 - - 264 282 Depreciation, depletion and amortization - - 7 13 545 349 Accretion of asset retirement obligation - - 9 8 9 8 Administrative - - 81 57 81 57 Total Operating Expenses 332 323 97 80 1,556 1,143 Operating Income (Loss) $ (38 ) $ (7 ) $ (119 ) $ (229 ) 315 119 Other (Income) Expenses Interest 99 92 Foreign exchange (gain) loss, net 30 (23 ) (Gain) loss on divestitures, net (5 ) - Other (gains) losses, net (1 ) 5 Total Other (Income) Expenses 123 74 Net Earnings (Loss) Before Income Tax 192 45 Income tax expense (recovery) 43 6 Net Earnings (Loss) $ 149 $ 39 (1 ) The Company terminated its production sharing contract with CNOOC and exited its China Operations effective July 31, 2019. Results of Operations (For the nine months ended September 30) Segment and Geographic Information Canadian Operations USA Operations China Operations (1) 2019 2018 2019 2018 2019 2018 Revenues Product and service revenues $ 1,222 $ 1,236 $ 3,062 $ 1,880 $ 37 $ - Gains (losses) on risk management, net 174 93 128 (185 ) - - Sublease revenues - - - - - - Total Revenues 1,396 1,329 3,190 1,695 37 - Operating Expenses Production, mineral and other taxes 11 12 176 97 - - Transportation and processing 640 608 340 92 - - Operating 96 98 414 238 16 - Depreciation, depletion and amortization 287 257 1,141 628 - - Total Operating Expenses 1,034 975 2,071 1,055 16 - Operating Income (Loss) $ 362 $ 354 $ 1,119 $ 640 $ 21 $ - Market Optimization Corporate & Other Consolidated 2019 2018 2019 2018 2019 2018 Revenues Product and service revenues $ 870 $ 909 $ - $ - $ 5,191 $ 4,025 Gains (losses) on risk management, net (1 ) (3 ) (385 ) (422 ) (84 ) (517 ) Sublease revenues - - 54 50 54 50 Total Revenues 869 906 (331 ) (372 ) 5,161 3,558 Operating Expenses Production, mineral and other taxes - - - - 187 109 Transportation and processing 168 99 - - 1,148 799 Operating 21 25 (2 ) 11 545 372 Purchased product 784 803 - - 784 803 Depreciation, depletion and amortization - 1 26 38 1,454 924 Accretion of asset retirement obligation - - 28 24 28 24 Administrative - - 389 187 389 187 Total Operating Expenses 973 928 441 260 4,535 3,218 Operating Income (Loss) $ (104 ) $ (22 ) $ (772 ) $ (632 ) 626 340 Other (Income) Expenses Interest 285 265 Foreign exchange (gain) loss, net (62 ) 93 (Gain) loss on divestitures, net (4 ) (4 ) Other (gains) losses, net 24 2 Total Other (Income) Expenses 243 356 Net Earnings (Loss) Before Income Tax 383 (16 ) Income tax expense (recovery) 143 (55 ) Net Earnings (Loss) $ 240 $ 39 (1 ) The Company terminated its production sharing contract with CNOOC and exited its China Operations effective July 31, 2019. Intersegment Information Market Optimization Marketing Sales Upstream Eliminations Total For the three months ended September 30, 2019 2018 2019 2018 2019 2018 Revenues $ 2,088 $ 1,513 $ (1,794 ) $ (1,197 ) $ 294 $ 316 Operating Expenses Transportation and processing 173 120 (111 ) (87 ) 62 33 Operating 6 8 - - 6 8 Purchased product 1,947 1,392 (1,683 ) (1,110 ) 264 282 Operating Income (Loss) $ (38 ) $ (7 ) $ - $ - $ (38 ) $ (7 ) Market Optimization Marketing Sales Upstream Eliminations Total For the nine months ended September 30, 2019 2018 2019 2018 2019 2018 Revenues $ 5,459 $ 4,203 $ (4,590 ) $ (3,297 ) $ 869 $ 906 Operating Expenses Transportation and processing 465 335 (297 ) (236 ) 168 99 Operating 21 25 - - 21 25 Purchased product 5,078 3,864 (4,294 ) (3,061 ) 784 803 Depreciation, depletion and amortization - 1 - - - 1 Operating Income (Loss) $ (105 ) $ (22 ) $ 1 $ - $ (104 ) $ (22 ) Capital Expenditures Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Canadian Operations $ 99 $ 174 $ 364 $ 553 USA Operations 464 345 1,682 1,065 Market Optimization 2 - 2 - Corporate & Other 1 4 4 8 $ 566 $ 523 $ 2,052 $ 1,626 Goodwill, Property, Plant and Equipment and Total Assets by Segment Goodwill Property, Plant and Equipment Total Assets As at As at As at September 30, December 31, September 30, December 31, September 30, December 31, 2019 2018 2019 2018 2019 2018 Canadian Operations $ 660 $ 640 $ 1,111 $ 999 $ 1,978 $ 1,852 USA Operations 1,935 1,913 13,782 6,591 16,634 9,104 Market Optimization - - 2 1 225 295 Corporate & Other - - 231 1,381 2,519 4,093 $ 2,595 $ 2,553 $ 15,126 $ 8,972 $ 21,356 $ 15,344 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenues from Contracts with Customers | 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 September 30) Canadian Operations USA Operations China Operations (1) 2019 2018 2019 2018 2019 2018 Revenues from Customers Product revenues (2) Oil $ 3 $ 1 $ 905 $ 590 $ 3 $ - NGLs 225 259 99 98 - - Natural gas 150 195 95 31 - - Service revenues Gathering and processing 2 1 (1 ) 4 - - Product and Service Revenues 380 456 1,098 723 3 - Other Revenues Gains (losses) on risk management, net (3) 87 8 35 (84 ) - - Sublease revenues - - - - - - Other Revenues 87 8 35 (84 ) - - Total Revenues $ 467 $ 464 $ 1,133 $ 639 $ 3 $ - Market Optimization Corporate & Other Consolidated 2019 2018 2019 2018 2019 2018 Revenues from Customers Product revenues (2) Oil $ 107 $ 34 $ - $ - $ 1,018 $ 625 NGLs 2 1 - - 326 358 Natural gas 181 274 - - 426 500 Service revenues Gathering and processing - - - - 1 5 Product and Service Revenues 290 309 - - 1,771 1,488 Other Revenues Gains (losses) on risk management, net (3) - (1 ) (41 ) (164 ) 81 (241 ) Sublease revenues - - 19 15 19 15 Other Revenues - (1 ) (22 ) (149 ) 100 (226 ) Total Revenues $ 290 $ 308 $ (22 ) $ (149 ) $ 1,871 $ 1,262 (1) The Company terminated its production sharing contract with CNOOC and exited its China Operations effective July 31, 2019. (2) Includes revenues from production and revenues of product purchased from third parties, but excludes intercompany marketing fees transacted between the Company’s operating segments. ( 3 ) Canadian Operations, USA Operations and Market Optimization include realized gains (losses) on risk management. Corporate and Other includes unrealized gains (losses) on risk management. Revenues (For the nine months ended September 30 ) Canadian Operations USA Operations China Operations (1) 2019 2018 2019 2018 2019 2018 Revenues from Customers Product revenues (2) Oil $ 6 $ 6 $ 2,461 $ 1,579 $ 37 $ - NGLs 659 655 332 221 - - Natural gas 563 580 276 92 - - Service revenues Gathering and processing 4 5 2 4 - - Product and Service Revenues 1,232 1,246 3,071 1,896 37 - Other Revenues Gains (losses) on risk management, net (3) 174 93 128 (185 ) - - Sublease revenues - - - - - - Other Revenues 174 93 128 (185 ) - - Total Revenues $ 1,406 $ 1,339 $ 3,199 $ 1,711 $ 37 $ - Market Optimization Corporate & Other Consolidated 2019 2018 2019 2018 2019 2018 Revenues from Customers Product revenues (2) Oil $ 205 $ 84 $ - $ - $ 2,709 $ 1,669 NGLs 6 6 - - 997 882 Natural gas 640 793 - - 1,479 1,465 Service revenues Gathering and processing - - - - 6 9 Product and Service Revenues 851 883 - - 5,191 4,025 Other Revenues Gains (losses) on risk management, net (3) (1 ) (3 ) (385 ) (422 ) (84 ) (517 ) Sublease revenues - - 54 50 54 50 Other Revenues (1 ) (3 ) (331 ) (372 ) (30 ) (467 ) Total Revenues $ 850 $ 880 $ (331 ) $ (372 ) $ 5,161 $ 3,558 (1) The Company terminated its production sharing contract with CNOOC and exited its China Operations effective July 31, 2019. ( 2 ) Includes revenues from production and revenues of product purchased from third parties, but excludes intercompany marketing fees transacted between the Company’s operating segments. ( 3 ) Canadian Operations, USA Operations and Market Optimization include realized gains (losses) on risk management. Corporate and 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 September 30, 2019, receivables and accrued revenues from contracts with customers were $980 million ($662 million as at December 31, 2018). Encana’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. 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 September 30, 2019. As at September 30 , 2019, 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. As the period between when the product sales are transferred and Encana receives payments is generally 30 to 60 days, there is no financing element associated with customer contracts. In addition, Encana does not disclose unsatisfied performance obligations for customer contracts with terms less than 12 months. |
Interest
Interest | 9 Months Ended |
Sep. 30, 2019 | |
Interest Expense [Abstract] | |
Interest | 5. Interest Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Interest Expense on: Debt $ 93 $ 67 $ 268 $ 200 The Bow office building (See Note 2) - 16 - 48 Finance leases (See Note 11) 3 3 10 12 Other 3 6 7 5 $ 99 $ 92 $ 285 $ 265 Upon adoption of Topic 842 on January 1, 2019, The Bow office building was determined to be an operating lease with lease costs recognized in administrative expense. Previously, payments related to The Bow were recognized as interest expense and principal repayments. See Notes 2 and 11 for further information. |
Foreign Exchange (Gain) Loss, N
Foreign Exchange (Gain) Loss, Net | 9 Months Ended |
Sep. 30, 2019 | |
Foreign Currency [Abstract] | |
Foreign Exchange (Gain) Loss, Net | 6. Foreign Exchange (Gain) Loss, Net Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Unrealized Foreign Exchange (Gain) Loss on: Translation of U.S. dollar financing debt issued from Canada $ 68 $ (74 ) $ (117 ) $ 138 Translation of U.S. dollar risk management contracts issued from Canada 5 (3 ) (13 ) 7 Translation of intercompany notes (24 ) 54 119 11 49 (23 ) (11 ) 156 Foreign Exchange on Settlements of: U.S. dollar financing debt issued from Canada (10 ) - (22 ) 1 U.S. dollar risk management contracts issued from Canada (2 ) (1 ) (1 ) (11 ) Intercompany notes (8 ) (1 ) (31 ) (48 ) Other Monetary Revaluations 1 2 3 (5 ) $ 30 $ (23 ) $ (62 ) $ 93 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Current Tax Canada $ (2 ) $ - $ - $ (66 ) United States 1 - 3 2 Other Countries - - - 3 Total Current Tax Expense (Recovery) (1 ) - 3 (61 ) Deferred Tax Canada (12 ) 19 22 (9 ) United States 56 (3 ) 117 4 Other Countries - (10 ) 1 11 Total Deferred Tax Expense (Recovery) 44 6 140 6 Income Tax Expense (Recovery) $ 43 $ 6 $ 143 $ (55 ) Effective Tax Rate 22.4 % 13.3 % 37.3 % 343.8 % 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, non-taxable capital gains and losses, tax differences on divestitures and transactions, and partnership tax allocations in excess of funding. On June 28, 2019, Alberta Bill 3, the Job Creation Tax Cut (Alberta Corporate Tax Amendment) Act, was signed into law resulting in a reduction of the Alberta corporate tax rate from 12 percent to 11 percent effective July 1, 2019, with further one percent rate reductions to take effect every year on January 1 until the general corporate tax rate is eight percent on January 1, 2022. During the nine months ended September 30, 2019, the deferred tax expense of $140 million includes an adjustment of $55 million resulting from the re-measurement of the Company’s deferred tax position due to the Alberta tax rate reduction. During the nine months ended September 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 nine months ended September 30, 2019, the deferred tax expense was primarily due to net earnings before income tax in the respective periods and the impact of the Alberta tax rate reduction discussed above. During the three months ended September 30, 2018, the deferred tax expense was primarily due to the changes in the estimated annual effective income tax rate. The effective tax rate of 37.3 percent for the nine months ended September 30, 2019 is higher than the Canadian statutory tax rate of 26.6 percent primarily due to the re-measurement of the Company’s deferred tax position resulting from the Alberta tax rate reduction discussed above, partially offset by partnership tax allocations in excess of funding. The effective tax rate of 343.8 percent for the nine months ended September 30, 2018, was higher than the Canadian statutory tax rate of 27 percent primarily due to the resolution of certain tax items relating to prior taxation years. |
Business Combination
Business Combination | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Business Combination | 8 . Business Combination Newfield Exploration Company Acquisition On February 13, 2019, Encana completed the business combination with Newfield Exploration Company, a Delaware corporation (“Newfield”), pursuant to its Agreement and Plan of Merger with Newfield (the “Merger”). As a result of the Merger, Newfield stockholders received 2.6719 Encana common shares for each share of Newfield common stock that was issued and outstanding immediately prior to the effective date of the Merger. Encana issued approximately 543.4 million common shares representing a value of $3.5 billion and paid approximately $5 million in cash in respect of Newfield’s cash-settled incentive awards. Following the acquisition, Newfield’s senior notes totaling $2.45 billion remained outstanding. Transaction costs of approximately $33 million were included in other (gains) losses, net. Newfield’s operations focused on the exploration and development of oil and gas properties located in the Anadarko and Arkoma Basins of Oklahoma, the Williston Basin of North Dakota and the Uinta Basin of Utah, as well as offshore oil assets located in China. The assets acquired generated revenues of $1,485 million and net earnings of $69 million for the period from February 14, 2019 to September 30, 2019. The results of Newfield’s operations have been included in Encana’s Consolidated Financial Statements as of February 14, 2019. Purchase Price Allocation The transaction was accounted for under the acquisition method, which requires that the assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date, with any excess of the purchase price over the estimated fair value of identified net assets acquired recorded as goodwill. The purchase price allocation represents the consideration paid and the fair values of the assets acquired, and liabilities assumed as of the acquisition date. The purchase price allocation is subject to change based on information that may not yet be available, including, the valuation of any pre-acquisition contingencies, final appraisals and tax returns that provide the underlying tax basis of the net assets and liabilities acquired and uncertain tax positions. The Company expects the purchase price allocation to be completed within 12 months following the acquisition date, during which time the value of the net assets and liabilities acquired may be revised as appropriate. Preliminary Purchase Price Allocation Consideration: Fair value of Encana's common shares issued (1) $ 3,478 Fair value of Newfield liability awards paid in cash (2) 5 Total Consideration $ 3,483 Assets Acquired: Cash and cash equivalents $ 46 Accounts receivable and accrued revenues 486 Other current assets 50 Proved properties 5,903 Unproved properties 838 Other property, plant and equipment 22 Restricted cash 53 Other assets 105 Goodwill (3) 22 Liabilities Assumed: Accounts payable and accrued liabilities (3) (795 ) Long-term debt (2,603 ) Operating lease liabilities (76 ) Other long-term liabilities (3) (61 ) Asset retirement obligation (184 ) Deferred income taxes (3) (323 ) Total Purchase Price $ 3,483 (1) The fair value was based on the NYSE closing price of the Encana common shares of $6.40 on February 13, 2019. (2) The fair value was based on a price of $6.50 per notional unit which was determined using a volume-weighted average of the trading price of Encana common shares on the NYSE on each of the five consecutive trading days ending on the trading day that was three trading days prior to February 13, 2019. ( 3 ) Since the completion of the business combination on February 13, 2019, additional information related to pre-acquisition liabilities and contingencies was obtained resulting in a measurement period adjustment. Changes in the fair value estimates comprised an increase in other liabilities of $12 million, of which the total liability is presented in accounts payable and accrued liabilities, a decrease in deferred tax liabilities of $3 million and a corresponding increase in goodwill of $9 million. The Company used the income approach valuation technique for the fair value of assets acquired and liabilities assumed. The carrying amounts of cash and cash equivalents, accounts receivable and accrued revenues, restricted cash and other current assets, and accounts payable and accrued liabilities approximate their fair values due to their nature and/or the short-term maturity of the instruments. The fair values of long-term debt, ROU assets and operating lease liabilities were categorized within Level 2 of the fair value hierarchy and were determined using quoted prices and rates from an available pricing source. The fair values of the proved and unproved properties, other property, plant and equipment, other assets, other long-term liabilities and asset retirement obligation were categorized within Level 3 and were determined using relevant market assumptions, including discount rates, future commodity prices and costs, timing of development activities, projections of oil and gas reserves, and estimates for abandonment and reclamation. Goodwill arose from the Newfield acquisition primarily from the requirement to recognize deferred taxes on the difference between the fair value of the assets acquired and liabilities assumed and the respective carry-over tax basis. Goodwill is not amortized and is not deductible for tax purposes. Unaudited Pro Forma Financial Information The following unaudited pro forma financial information combines the historical financial results of Encana with Newfield and has been prepared as though the acquisition had occurred on January 1, 2018. The pro forma information is not intended to reflect the actual results of operations that would have occurred if the business combination had been completed at the date indicated. In addition, the pro forma information is not intended to be a projection of Encana’s results of operations for any future period. Additionally, pro forma earnings were adjusted to exclude acquisition-related costs incurred of approximately $71 million and severance payments made to employees which totaled $134 million for the nine months ended September 30, 2019. The pro forma financial information does not include any cost savings or other synergies that may result from the Merger or any estimated costs that have been or will be incurred to integrate the assets. For the nine months ended September 30, (US$ millions, except per share amounts) 2019 2018 Revenues $ 5,440 $ 5,215 Net Earnings (Loss) $ 376 $ 369 Net Earnings (Loss) per Common Share Basic & Diluted $ 0.29 $ 0.25 |
Acquisitions And Divestitures
Acquisitions And Divestitures | 9 Months Ended |
Sep. 30, 2019 | |
Acquisitions And Divestitures [Abstract] | |
Acquisitions And Divestitures | 9 . Acquisitions and Divestitures Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Acquisitions Canadian Operations $ - $ 15 $ - $ 17 USA Operations 25 - 66 - Total Acquisitions 25 15 66 17 Divestitures Canadian Operations - 2 - (55 ) USA Operations (171 ) (26 ) (177 ) (34 ) Total Divestitures (171 ) (24 ) (177 ) (89 ) Net Acquisitions & (Divestitures) $ (146 ) $ (9 ) $ (111 ) $ (72 ) Acquisitions For the nine months ended September 30, 2019, acquisitions in the Canadian and USA Operations were nil (2018 - $17 million) and $66 million (2018 - nil), respectively, which primarily included seismic purchases, water rights and purchases with oil and liquids rich potential. Divestitures For the three and nine months ended September 30, 2019, divestitures in the USA Operations were $171 million and $177 million, respectively, which primarily included the sale of the Company’s Arkoma natural gas assets. For the three and nine months ended September 30, 2018, divestitures in the USA Operations were $26 million and $34 million, respectively, which primarily included the sale of certain properties that did not complement Encana’s existing portfolio of assets. During the nine months ended September 30, 2018, divestitures in the Canadian Operations were $55 million, which primarily included the sale of certain Pipestone assets located in Alberta. 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 | 9 Months Ended |
Sep. 30, 2019 | |
Property Plant And Equipment [Abstract] | |
Property, Plant And Equipment, Net | 10 . Property, Plant and Equipment, Net As at September 30, 2019 As at December 31, 2018 Accumulated Accumulated Cost DD&A Net Cost DD&A Net Canadian Operations Proved properties $ 14,817 $ (13,949 ) $ 868 $ 13,996 $ (13,261 ) $ 735 Unproved properties 223 - 223 237 - 237 Other 20 - 20 27 - 27 15,060 (13,949 ) 1,111 14,260 (13,261 ) 999 USA Operations Proved properties 35,223 (25,186 ) 10,037 27,189 (24,099 ) 3,090 Unproved properties 3,720 - 3,720 3,493 - 3,493 Other 25 - 25 8 - 8 38,968 (25,186 ) 13,782 30,690 (24,099 ) 6,591 Market Optimization 8 (6 ) 2 7 (6 ) 1 Corporate & Other 893 (662 ) 231 2,136 (755 ) 1,381 $ 54,929 $ (39,803 ) $ 15,126 $ 47,093 $ (38,121 ) $ 8,972 Canadian and USA Operations property, plant and equipment include internal costs directly related to exploration, development and construction activities of $171 Finance Lease Arrangements The Company has two lease arrangements that are accounted for as finance leases, which include an office building and an offshore production platform. As at September 30, 2019, the total carrying value of assets under finance lease was $39 million ($41 million as at December 31, 2018), net of accumulated amortization of $667 million ($650 million as at December 31, 2018). Long-term liabilities for the finance lease arrangements are included in other liabilities and provisions in the Condensed Consolidated Balance Sheet and are disclosed in Note 13. Other Arrangement As at December 31, 2018, Corporate and Other property, plant and equipment and total assets included a carrying value of $1,133 million related to The Bow office building. Upon adoption of Topic 842 on January 1, 2019, The Bow office building was determined to be an operating lease as discussed in Note 2. As at September 30, 2019, other assets included a ROU asset of $896 million related to The Bow office building. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | 11. Leases Leases entered into for the right to use an asset are classified as either an operating or finance lease. Upon commencement of the lease, a ROU asset and corresponding lease liability are recognized on the Condensed Consolidated Balance Sheet for all operating and finance leases. Encana has elected the short-term lease exemption, which does not require a ROU asset or lease liability to be recognized on the Condensed Consolidated Balance Sheet when the lease term is 12 months or less and does not include an option to purchase the underlying asset that the lessee is reasonably certain to exercise. Upon commencement of the lease, ROU assets are recognized based on the initial measurement of the lease liability and adjusted for any lease payments made before commencement date of the lease, less any lease incentives and including any initial direct costs incurred. Lease liabilities are initially measured at the present value of future minimum lease payments over the lease term. The discount rate used to determine the present value is the rate implicit in the lease unless that rate cannot be determined, in which case Encana’s incremental borrowing rate is used. Rights to extend or terminate a lease are included in the lease term when there is reasonable certainty the right will be exercised. Factors used to assess reasonable certainty of rights to extend or terminate a lease include current and forecasted drillings plans, anticipated changes in development strategies, historical practice in extending similar contracts and current market conditions. Encana’s lease contracts include rights to extend leases after the initial term, ranging from month-to-month to less than 10 years. Operating lease ROU assets and liabilities are subsequently measured at the present value of the lease payments not yet paid and discounted at the initial discount rate at commencement of the lease, less any impairments to the ROU asset. Operating lease expense and revenue from subleases are recognized in the Condensed Consolidated Statement of Earnings on a straight-line basis over the lease term. Finance lease ROU assets are amortized on a straight-line basis over the estimated useful life of the asset if the lessee is reasonably certain to exercise a purchase option or ownership of the leased asset transfers at the end of the lease term, otherwise the leased assets are amortized over the lease term. Amortization of finance lease ROU assets is included in depreciation, depletion and amortization in the Condensed Consolidated Statement of Earnings. Variable lease payments include changes in index rates, mobilization and demobilization costs related to oil and gas equipment and certain costs associated with office and building leases. Variable lease payments are recognized when incurred. Lease and non-lease components are accounted for as a single lease component for compression, coolers and office subleases. Operating leases include drilling rigs, compressors, marine vessels, camps, office and buildings, certain land easements and various equipment utilized in the development and production of oil, NGLs and natural gas. Finance leases include an office building and an offshore production platform. Subleases relate to office and building leases. The tables below summarize Encana’s operating and finance lease costs and include ROU assets and lease liabilities, amounts recognized in net earnings during the period and other lease information. (US$ millions, unless otherwise specified) As at September 30, 2019 Condensed Consolidated Balance Sheet (1) Operating Lease ROU Assets, in Other Assets $ 1,045 Finance Lease ROU Assets, in Other Property Plant and Equipment 39 Operating Lease Liabilities: Current 79 Long-term 972 Finance Lease Liabilities: Current, in accounts payable and accrued liabilities 88 Long-term, in other liabilities and provisions 144 Weighted Average Discount Rate Operating leases 5.42% Finance leases 5.97% Weighted Average Remaining Lease Term Operating leases 16.4 years Finance leases 3.4 years (1) Total ROU assets and liabilities are recorded at the gross contractual amount. A portion of the future lease payments will be recovered from other working interest owners based on their proportionate share when incurred. Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Lease Costs (1) Operating Lease Costs, Excluding Short-Term Leases $ 45 $ 133 Finance Lease Costs: Amortization of ROU assets 1 3 Interest on lease liabilities 3 10 Total Finance Lease Costs 4 13 Short-Term Lease Costs 93 250 Variable Lease Costs 3 10 Sublease Income: Operating lease income 15 41 Variable lease income 4 13 Other Information: Cash Paid for Amounts Included in the Measurement of Lease Liabilities: Operating cash outflows from operating leases 57 157 Investing cash outflows from operating leases 80 220 Operating cash outflows from finance leases 3 10 Financing cash outflows from finance leases 22 63 Supplemental Non-Cash Information: New ROU operating lease assets and liabilities 1 11 (1) Lease costs include amounts capitalized into property, plant and equipment on the Condensed Consolidated Balance Sheet and lease expense recognized in the Condensed Consolidated Statement of Earnings. Operating lease expense is reflected in the Condensed Consolidated Statement of Earnings as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Operating Lease Expense Transportation and processing $ 1 $ 2 Operating 28 76 Administrative (1) 30 86 Total Operating Lease Expense $ 59 $ 164 (1) Includes $23 million and $69 million for the three and nine months ended September 30, 2019, respectively, related to The Bow office building. The following table outlines the Company’s future lease payments and lease liabilities related to the Company’s operating and finance leases as at September 30, 2019: 2019 2020 2021 2022 2023 Thereafter Total Operating Leases (1) Expected Future Lease Payments $ 37 $ 128 $ 112 $ 97 $ 85 $ 1,165 $ 1,624 Less: Discounting 573 Present Value of Future Operating Lease Payments $ 1,051 Sublease Income (undiscounted) $ (10 ) $ (41 ) $ (42 ) $ (37 ) $ (37 ) $ (566 ) $ (733 ) Finance Leases Expected Future Lease Payments $ 25 $ 99 $ 87 $ 8 $ 8 $ 30 $ 257 Less: Discounting 25 Present Value of Future Finance Lease Payments $ 232 Sublease Income (undiscounted) (2) $ (2 ) $ (8 ) $ (8 ) $ (8 ) $ (7 ) $ (24 ) $ (57 ) (1) Lease payments are presented based on the gross contractual amount. A portion of the future lease payments will be recovered from other working interest owners based on their proportionate share when incurred. (2) Classified as operating lease. There are no commitments for leases with terms greater than one year that have not yet commenced at September 30, 2019. Refer to Notes 14 and 25 under Item 8 of Encana’s 2018 Annual Report on Form 10-K for comparative period disclosure of future lease payments and sublease income related to capital and operating leases and The Bow office building. Operating leases in the table above includes The Bow office building which was determined to be an operating lease on transition to Topic 842 as disclosed in Note 2. Under Topic 840, The Bow was accounted for as a financing transaction under a failed sales leaseback. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 1 2 . Long-Term Debt As at As at September 30, December 31, 2019 2018 U.S. Dollar Denominated Debt Revolving credit and term loan borrowings $ 740 $ - U.S. Unsecured Notes: 6.50% due May 15, 2019 - 500 3.90% due November 15, 2021 600 600 5.75% due January 30, 2022 (See Note 8) 750 - 5.625% due July 1, 2024 (See Note 8) 1,000 - 5.375% due January 1, 2026 (See Note 8) 700 - 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 6,901 4,211 Increase in Value of Debt Acquired 157 22 Unamortized Debt Discounts and Issuance Costs (34 ) (35 ) Total Long-Term Debt $ 7,024 $ 4,198 Current Portion $ - $ 500 Long-Term Portion 7,024 3,698 $ 7,024 $ 4,198 As at September 30, 2019, total long-term debt had a carrying value of $7,024 million and a fair value of $7,825 million (as at December 31, 2018 - carrying value of $4,198 million and a fair value of $4,511 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. As at September 30, 2019, the Company had outstanding commercial paper of $740 million maturing at various dates with a weighted average interest rate of approximately 2.63 percent. These amounts are supported, and Management expects that they will continue to be supported, by revolving credit facilities that have no repayment requirements within the next year and which expire in 2022. |
Other Liabilities And Provision
Other Liabilities And Provisions | 9 Months Ended |
Sep. 30, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities And Provisions | 1 3 . Other Liabilities and Provisions As at As at September 30, December 31, 2019 2018 The Bow Office Building $ - $ 1,224 Finance Lease Obligations (See Note 11) 144 211 Unrecognized Tax Benefits 172 167 Pensions and Other Post-Employment Benefits 170 105 Long-Term Incentive Costs (See Note 19) 29 34 Other Derivative Contracts (See Notes 21, 22) 8 10 Other 25 18 $ 548 $ 1,769 Upon adoption of Topic 842 on January 1, 2019, The Bow office building was determined to be an operating lease. See Notes 2 and 11 for further information. |
Asset Retirement Obligation
Asset Retirement Obligation | 9 Months Ended |
Sep. 30, 2019 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation | 1 4 . Asset Retirement Obligation As at As at September 30, December 31, 2019 2018 Asset Retirement Obligation, Beginning of Year $ 455 $ 514 Liabilities Incurred 13 17 Liabilities Acquired (See Note 8) 184 - Liabilities Settled and Divested (100 ) (56 ) Change in Estimated Future Cash Outflows - (20 ) Accretion Expense 28 32 Foreign Currency Translation 10 (32 ) Asset Retirement Obligation, End of Period $ 590 $ 455 Current Portion $ 176 $ 90 Long-Term Portion 414 365 $ 590 $ 455 |
Share Capital
Share Capital | 9 Months Ended |
Sep. 30, 2019 | |
Class Of Stock Disclosures [Abstract] | |
Share Capital | 1 5 . 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 September 30, 2019 As at December 31, 2018 Number (millions) Amount Number (millions) Amount Common Shares Outstanding, Beginning of Year 952.5 $ 4,656 973.1 $ 4,757 Common Shares Purchased (196.7 ) (1,073 ) (20.7 ) (102 ) Common Shares Issued 543.4 3,478 - - Common Shares Issued Under Dividend Reinvestment Plan - - 0.1 1 Common Shares Outstanding, End of Period 1,299.2 $ 7,061 952.5 $ 4,656 On February 13, 2019, Encana completed the acquisition of all the issued and outstanding shares of common stock of Newfield whereby Encana issued approximately 543.4 million common shares to Newfield shareholders, representing an exchange ratio of 2.6719 Encana common shares for each share of Newfield common stock held. See Note 8 for further information on the business combination. Substantial Issuer Bid On June 10, 2019, the Company announced its intention to purchase, for cancellation, up to $213 million of its common shares through a substantial issuer bid (“SIB”) which commenced on July 8, 2019. On August 29, 2019, the Company purchased approximately 47.3 million common shares at a price of $4.50 per share for an aggregate purchase price of approximately $213 million, of which $257 million was charged to share capital and $44 million was credited to paid in surplus. The purchase was made in accordance with the terms and conditions of the SIB, with consideration allocated to share capital equivalent to the average carrying amount of the shares, with the excess of the carrying amount over the purchase consideration credited to paid in surplus. Normal Course Issuer Bid On February 27, 2019, the Company announced that the TSX accepted the Company’s notice of intention to purchase, for cancellation, up to approximately 149.4 million Encana common shares pursuant to a NCIB over a 12-month period from March 4, 2019 to March 3, 2020. During the nine months ended September 30, 2019, the Company purchased approximately 149.4 million common shares under its current NCIB for total consideration of approximately $1,037 million. Of the amount paid, $816 million was charged to share capital and $221 million was charged to retained earnings. All purchases were 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, with any excess allocated to retained earnings. For the nine months ended September 30, 2018 and the twelve months ended December 31, 2018, the Company purchased approximately 20.7 million common shares under the previous NCIB which was in place from February 28, 2018 to February 27, 2019 for total consideration of approximately $250 million. Of the amount paid, $102 million was charged to share capital and $148 million was charged to retained earnings. Dividend Reinvestment Plan On Dividends During the three months ended September 30, 2019, Encana declared and paid dividends of $0.01875 per common share totaling $24 million (2018 - $0.015 per common share totaling $14 million). During the nine months ended September 30, 2019, Encana declared and paid dividends of $0.05625 per common share totaling $77 million (2018 - $0.045 per common share totaling $43 million). For the three and nine months ended September 30, 2018, the dividends paid included $0.1 million and $0.5 million, respectively, in common shares issued in lieu of cash dividends under the DRIP. On October 30, 2019, the Board of Directors declared a dividend of $0.01875 per common share payable on December 31, 2019 to common shareholders of record as of December 13, 2019. Earnings Per Common Share The following table presents the computation of net earnings (loss) per common share: Three Months Ended Nine Months Ended September 30, September 30, (US$ millions, except per share amounts) 2019 2018 2019 2018 Net Earnings (Loss) $ 149 $ 39 $ 240 $ 39 Number of Common Shares: Weighted average common shares outstanding - Basic 1,322.8 955.1 1,308.4 962.2 Effect of dilutive securities - - - - Weighted Average Common Shares Outstanding - Diluted 1,322.8 955.1 1,308.4 962.2 Net Earnings (Loss) per Common Share Basic & Diluted $ 0.11 $ 0.04 $ 0.18 $ 0.04 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 September 30, 2019 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. 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 Encana has a share-based compensation plan whereby eligible employees and Directors are granted Restricted Share Units (“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 and conditions of the compensation plan and grant agreements. The Company currently settles vested RSUs in cash. As a result, RSUs are currently not considered potentially dilutive securities. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Income | 1 6 . Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Foreign Currency Translation Adjustment Balance, Beginning of Period $ 1,014 $ 1,028 $ 976 $ 1,029 Change in Foreign Currency Translation Adjustment (6 ) 22 32 21 Balance, End of Period $ 1,008 $ 1,050 $ 1,008 $ 1,050 Pension and Other Post-Employment Benefit Plans Balance, Beginning of Period $ (2 ) $ 12 $ 22 $ 13 Plan Amendment - - (29 ) - Income Taxes - - 6 - Reclassification of Net Actuarial (Gains) and Losses to Net Earnings (See Note 20) - - (1 ) (1 ) Income Taxes - - - - Balance, End of Period $ (2 ) $ 12 $ (2 ) $ 12 Total Accumulated Other Comprehensive Income $ 1,006 $ 1,062 $ 1,006 $ 1,062 During the nine months ended September 30, 2019, Encana amended the other post-employment benefits arrangements in conjunction with the integration of the Newfield business acquired. The plan amendment resulted in an increase to pension liabilities with a corresponding loss recognized in other comprehensive income. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2019 | |
Variable Interest Entity Not Primary Beneficiary Disclosures [Abstract] | |
Variable Interest Entities | 1 7 . Variable Interest Entities 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 September 30, 2019, VMLP provides approximately 1,206 MMcf/d of natural gas gathering and compression and 939 MMcf/d of natural gas processing under long-term service agreements with remaining terms ranging from up to 12 to 26 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 $2,359 million as at September 30, 2019. 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 24 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 September 30, 2019, there were no accounts payable and accrued liabilities outstanding related to the take or pay commitment. |
Restructuring Charges
Restructuring Charges | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring Charges [Abstract] | |
Restructuring Charges | 18 . Restructuring Charges In February 2019, in conjunction with the Newfield business combination as described in Note 8, Encana announced workforce reductions to better align staffing levels and the organizational structure with the Company’s strategy. During the three and nine months ended September 30, 2019, the Company incurred total restructuring charges of $4 million and $134 million, respectively, before tax, primarily related to severance costs. As at September 30, 2019, $4 million remains accrued and is expected to be paid during the remainder of 2019 and in 2020. Restructuring charges are included in administrative expense presented in the Corporate and Other segment in the Condensed Consolidated Statement of Earnings. Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Severance and Benefits $ 4 $ - $ 132 $ - Outplacement, Moving and Other Expenses - - 2 - Restructuring Expenses $ 4 $ - $ 134 $ - As at As at September 30, December 31, 2019 2018 Outstanding Restructuring Accrual, Beginning of Year $ - $ - Restructuring Expenses Incurred 134 - Restructuring Costs Paid (130 ) - Outstanding Restructuring Accrual, End of Period (1) $ 4 $ - (1) Included in accounts payable and accrued liabilities in the Condensed Consolidated Balance Sheet. |
Compensation Plans
Compensation Plans | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Compensation Plans | 1 9 . 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 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 outstanding: As at September 30, 2019 As at September 30, 2018 US$ Share Units C$ Share Units US$ Share Units C$ Share Units Risk Free Interest Rate 1.58% 1.58% 2.18% 2.18% Dividend Yield 1.63% 1.64% 0.46% 0.46% Expected Volatility Rate (1) 44.14% 42.77% 55.44% 51.90% Expected Term 2.9 yrs 2.6 yrs 1.6 yrs 2.0 yrs Market Share Price US$4.60 C$6.07 US$13.11 C$16.93 (1) Volatility was estimated using historical rates. The Company has recognized the following share-based compensation costs: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Total Compensation Costs of Transactions Classified as Cash-Settled $ 2 $ 36 $ 46 $ 118 Less: Total Share-Based Compensation Costs Capitalized (1 ) (11 ) (16 ) (33 ) Total Share-Based Compensation Expense (Recovery) $ 1 $ 25 $ 30 $ 85 Recognized on the Condensed Consolidated Statement of Earnings in: Operating $ - $ 8 $ 12 $ 24 Administrative 1 17 18 61 $ 1 $ 25 $ 30 $ 85 As at September 30, 2019, the liability for share-based payment transactions totaled $65 million ($165 million as at December 31, 2018), of which $36 million ($131 million as at December 31, 2018) is recognized in accounts payable and accrued liabilities and $29 million ($34 million as at December 31, 2018) is recognized in other liabilities and provisions in the Condensed Consolidated Balance Sheet. As at September 30, 2019 As at December 31, 2018 Liability for Cash-Settled Share-Based Payment Transactions: Unvested $ 53 $ 148 Vested 12 17 $ 65 $ 165 The following units were granted primarily in conjunction with the Company’s annual grant of long-term incentive award s . 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. Nine Months Ended September 30, 2019 (thousands of units) TSARs 1,244 SARs 1,718 PSUs 7,833 DSUs 111 RSUs 11,004 |
Pension and Other Post-Employme
Pension and Other Post-Employment Benefits | 9 Months Ended |
Sep. 30, 2019 | |
General Discussion Of Pension And Other Postretirement Benefits [Abstract] | |
Pension and Other Post-Employment Benefits | 20 . 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 nine months ended September 30 as follows: Pension Benefits OPEB Total 2019 2018 2019 2018 2019 2018 Net Defined Periodic Benefit Cost $ 1 $ 1 $ 13 $ 5 $ 14 $ 6 Defined Contribution Plan Expense 18 17 - - 18 17 Total Benefit Plans Expense $ 19 $ 18 $ 13 $ 5 $ 32 $ 23 Of the total benefit plans expense, $20 million (2018 - $17 million) was included in operating expense and $6 million (2018 - $6 million) was included in administrative expense. Excluding service costs, net defined periodic benefit costs of $6 million (2018 - nil) were recorded in other (gains) losses, net. The net defined periodic benefit cost for the nine months ended September 30 is as follows: Defined Benefits OPEB Total 2019 2018 2019 2018 2019 2018 Service Cost $ 1 $ 1 $ 7 $ 5 $ 8 $ 6 Interest Cost 5 5 3 2 8 7 Expected Return on Plan Assets (5 ) (6 ) - - (5 ) (6 ) Amounts Reclassified from Accumulated Other Comprehensive Income: Amortization of net actuarial (gains) and losses - 1 (1 ) (2 ) (1 ) (1 ) Curtailment - - 4 - 4 - Total Net Defined Periodic Benefit Cost (1) $ 1 $ 1 $ 13 $ 5 $ 14 $ 6 (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 | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 21 . 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. The fair values of restricted cash and marketable securities included in other assets approximate their carrying amounts due to the nature of the instruments held. Recurring fair value measurements are performed for risk management assets and liabilities and other derivative contracts, as discussed further in Note 22. 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 and foreign exchange gains and losses according to their purpose. As at September 30, 2019 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 $ - $ 256 $ 92 $ 348 $ (68 ) $ 280 Long-term assets - 59 22 81 (35 ) 46 Foreign Currency Derivatives: Current assets - 4 - 4 - 4 Long-term assets - 1 - 1 - 1 Risk Management Liabilities Commodity Derivatives: Current liabilities $ - $ 78 $ - $ 78 $ (68 ) $ 10 Long-term liabilities - 49 - 49 (35 ) 14 Other Derivative Contracts Current in accounts payable and accrued liabilities $ - $ 2 $ - $ 2 $ - $ 2 Long-term in other liabilities and provisions - 8 - 8 - 8 As at December 31, 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 $ - $ 492 $ 139 $ 631 $ (77 ) $ 554 Long-term assets - 177 - 177 (16 ) 161 Risk Management Liabilities Commodity Derivatives: Current liabilities $ - $ 81 $ - $ 81 $ (77 ) $ 4 Long-term liabilities - 38 - 38 (16 ) 22 Foreign Currency Derivatives: Current liabilities - 21 - 21 - 21 Other Derivative Contracts Current in accounts payable and accrued liabilities $ - $ 4 $ - $ 4 $ - $ 4 Long-term in other liabilities and provisions - 10 - 10 - 10 (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 costless collars, NYMEX call options, NYMEX three-way options, foreign currency swaps and basis swaps with terms to 202 5 . Level 2 also includes financial guarantee contracts as discussed in Note 22 . The fair values of these contracts are based on a market approach and are estimated using inputs which are either directly or indirectly observable from active markets , such as exchange and other published prices, broker quotes and observable trading activity throughout the term of the instruments . Level 3 Fair Value Measurements As at September 30, 2019, the Company’s Level 3 risk management assets and liabilities consist of WTI three-way options and WTI costless collars with terms to 2020. 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 nine months ended September 30 is presented below: Risk Management 2019 2018 Balance, Beginning of Year $ 139 $ (51 ) Total Gains (Losses) 24 (177 ) Purchases, Sales, Issuances and Settlements: Purchases, sales and issuances - - Settlements (49 ) 80 Transfers Out of Level 3 (1) - - Balance, End of Period $ 114 $ (148 ) Change in Unrealized Gains (Losses) Related to Assets and Liabilities Held at End of Period $ 83 $ (136 ) (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 September 30, 2019 As at December 31, 2018 Risk Management - WTI Options Option Model Implied Volatility 22% - 61% 29% - 73% A 10 percent increase or decrease in implied volatility for the WTI options would cause an approximate corresponding $9 million ($6 million as at December 31, 2018) increase or decrease to net risk management assets and liabilities. |
Financial Instruments and Risk
Financial Instruments and Risk Management | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Financial Instruments and Risk Management | 22 . 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, other assets, 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 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, 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. 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 September 30, 2019, Encana has entered into $250 million notional U.S. dollar denominated currency swaps at an average exchange rate of US$0.7516 to C$1, which mature monthly through the remainder of 2019 and $425 million notional U.S. dollar denominated currency swaps at an average exchange rate of US$0.7483 to C$1, which mature monthly throughout 2020. Risk Management Positions as at September 30 , 201 9 Notional Volumes Term Average Price Fair Value Crude Oil and NGL Contracts US$/bbl Fixed Price Contracts WTI Fixed Price 45.0 Mbbls/d 2019 60.24 $ 26 WTI Fixed Price 24.0 Mbbls/d 2020 60.05 74 Propane Fixed Price 3.8 Mbbls/d 2019 35.72 11 Propane Fixed Price 1.8 Mbbls/d 2020 21.00 1 Butane Fixed Price 6.5 Mbbls/d 2019 40.54 10 Ethane Fixed Price 5.3 Mbbls/d 2019 17.23 5 WTI Fixed Price Swaptions (1) 4.0 Mbbls/d 2021 58.00 (4 ) WTI Three-Way Options Sold call / bought put / sold put 87.5 Mbbls/d 2019 67.72 / 56.47 / 45.86 27 Sold call / bought put / sold put 80.0 Mbbls/d 2020 61.68 / 53.44 / 43.44 54 WTI Costless Collars Sold call / bought put 43.0 Mbbls/d 2019 65.57 / 56.28 13 Sold call / bought put 15.0 Mbbls/d 2020 68.71 / 50.00 20 Basis Contracts (2) 2019 (19 ) 2020 (34 ) Crude Oil and NGLs Fair Value Position 184 Natural Gas Contracts US$/Mcf Fixed Price Contracts NYMEX Fixed Price 687 MMcf/d 2019 2.72 19 NYMEX Fixed Price 653 MMcf/d 2020 2.69 64 NYMEX Fixed Price Swaptions (3) 180 MMcf/d 2021 2.61 (9 ) NYMEX Three-Way Options Sold call / bought put / sold put 330 MMcf/d 2020 2.72 / 2.60 / 2.25 7 NYMEX Costless Collars Sold call / bought put 177 MMcf/d 2019 3.05 / 2.89 8 Sold call / bought put 55 MMcf/d 2020 2.88 / 2.50 4 NYMEX Call Options Sold call 230 MMcf/d 2019 3.75 - Bought call 230 MMcf/d 2019 3.75 (1 ) Sold call 230 MMcf/d 2020 3.25 4 Basis Contracts (4) 2019 10 2020 30 2021 (2 ) 2022 - 2025 (8 ) Other Financial Positions (1 ) Natural Gas Fair Value Position 125 Net Premiums Received on Unexpired Options (7 ) Other Derivative Contracts Fair Value Position (10 ) Foreign Currency Contracts Fair Value Position (5) 2019 - 2020 5 Total Fair Value Position and Net Premiums Received $ 297 (1) WTI Fixed Price Swaptions give the counterparty the option to extend certain 2020 Fixed Price swaps to 2021. (2) Encana has entered into crude and NGL differential swaps associated with Midland, Magellan East Houston, Belvieu, Conway, Brent, Louisiana Light Sweet and WTI. (3) NYMEX Fixed Price Swaptions give the counterparty the option to extend certain 2020 Fixed Price swaps to 2021. ( 4 ) Encana has entered into natural gas basis swaps associated with AECO, Dawn, Chicago, Malin, Waha, Houston Ship Channel and 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 Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Realized Gains (Losses) on Risk Management Commodity and Other Derivatives: Revenues (1) $ 122 $ (77 ) $ 301 $ (95 ) Foreign Currency Derivatives: Foreign exchange 2 1 1 11 $ 124 $ (76 ) $ 302 $ (84 ) Unrealized Gains (Losses) on Risk Management Commodity and Other Derivatives: Revenues (2) $ (41 ) $ (164 ) $ (385 ) $ (422 ) Foreign Currency Derivatives: Foreign exchange (11 ) 9 26 (17 ) $ (52 ) $ (155 ) $ (359 ) $ (439 ) Total Realized and Unrealized Gains (Losses) on Risk Management, net Commodity and Other Derivatives: Revenues (1) (2) $ 81 $ (241 ) $ (84 ) $ (517 ) Foreign Currency Derivatives: Foreign exchange (9 ) 10 27 (6 ) $ 72 $ (231 ) $ (57 ) $ (523 ) (1) Includes realized gains of $2 million and $5 million for the three and nine months ended September 30, 2019, respectively, (2018 - gains of $2 (2) Includes unrealized losses of nil and $1 million for the three and nine months ended September 30, 2019, respectively, (2018 - losses of nil and $1 million, respectively) related to other derivative contracts. Reconciliation of Unrealized Risk Management Positions from January 1 to September 30 2019 2018 Fair Value Total Unrealized Gain (Loss) Total Unrealized Gain (Loss) Fair Value of Contracts, Beginning of Year $ 654 Change in Fair Value of Contracts in Place at Beginning of Year and Contracts Entered into During the Period (57 ) $ (57 ) $ (523 ) Settlement of Other Derivative Contracts 5 Amortization of Option Premiums During the Period (3 ) Fair Value of Contracts Realized During the Period (302 ) (302 ) 84 Fair Value of Contracts and Net Premiums Received, End of Period $ 297 $ (359 ) $ (439 ) Risk management assets and liabilities arise from the use of derivative financial instruments and are measured at fair value. See Note 21 for a discussion of fair value measurements. Unrealized Risk Management Positions As at As at September 30, December 31, 2019 2018 Risk Management Assets Current $ 284 $ 554 Long-term 47 161 331 715 Risk Management Liabilities Current 10 25 Long-term 14 22 24 47 Other Derivative Contracts Current in accounts payable and accrued liabilities 2 4 Long-term in other liabilities and provisions 8 10 Net Risk Management Assets (Liabilities) and Other Derivative Contracts $ 297 $ 654 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 NYSE 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 21. As at September 30, 2019, the Company had no significant credit derivatives in place and held no collateral. As at September 30, 2019, 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 September 30, 2019, approximately 96 percent (97 percent as at December 31, 2018) of Encana’s accounts receivable and financial derivative credit exposures were with investment grade counterparties. As at September 30, 2019, Encana had three 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. These counterparties accounted for 20 percent, 13 percent and 13 percent of the fair value of the outstanding in-the-money net risk management contracts. As at December 31, 2018, Encana had four counterparties whose net settlement position accounted for 30 percent, 13 percent, 12 percent and 10 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 two to five years with a fair value recognized of $10 million as at September 30, 2019 ($14 million as at December 31, 2018). The maximum potential amount of undiscounted future payments is $ 154 million as at September 30 , 201 9 , and is considered unlikely. |
Supplementary Information
Supplementary Information | 9 Months Ended |
Sep. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplementary Information | 2 3 . 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 Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Operating Activities Accounts receivable and accrued revenues $ 61 $ (8 ) $ 178 $ (152 ) Accounts payable and accrued liabilities (82 ) 59 (66 ) 99 Current portion of operating lease liabilities (9 ) - 52 - Income tax receivable and payable (2 ) 262 (34 ) 252 $ (32 ) $ 313 $ 130 $ 199 B) Non-Cash Activities Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Non-Cash Investing Activities Asset retirement obligation incurred (See Note 14) $ 2 $ 3 $ 13 $ 13 Property, plant and equipment accruals (80 ) (20 ) (33 ) 61 Capitalized long-term incentives 1 11 (31 ) 6 Property additions/dispositions (swaps) 63 55 66 195 New ROU operating lease assets and liabilities (See Note 11) (1 ) - (11 ) - Non-Cash Financing Activities Common shares issued in conjunction with the Newfield business combination (See Note 8) $ - $ - $ (3,478 ) $ - Common shares issued under dividend reinvestment plan (See Note 15) - - - - |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 2 4 . Commitments and Contingencies Commitments The following table outlines the Company’s commitments as at September 30, 2019: Expected Future Payments (undiscounted) 2019 2020 2021 2022 2023 Thereafter Total Transportation and Processing $ 197 $ 731 $ 625 $ 594 $ 485 $ 2,407 $ 5,039 Drilling and Field Services 64 24 6 - - - 94 Building Leases 4 15 14 11 7 15 66 Total $ 265 $ 770 $ 645 $ 605 $ 492 $ 2,422 $ 5,199 Associated with the adoption of Topic 842, all operating leases were recognized on the Condensed Consolidated Balance Sheet. Accordingly, operating leases with terms greater than one year are not included in the commitments table above. The table above includes short-term leases with contract terms less than 12 months, such as drilling rigs and field office leases, as well as non-lease operating cost components associated with building leases. See Notes 2 and 11 for additional disclosures on leases. Included within transportation and processing in the table above are certain commitments associated with midstream service agreements with VMLP as described in Note 1 7 . 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 unfavorable outcome is reasonably possible, the Company discloses the nature and a range of potential exposures. If an unfavorable 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. In conjunction with the acquisition of Newfield as described in Note 8, various legal claims and actions arising in the normal course of Newfield’s operations were assumed by Encana. On March 29, 2019, Newfield and its wholly-owned subsidiary entered into an Agreement and Mutual Release with Sapura Energy Berhad, formerly known as SapuraKencana Petroleum Berhad, and Sapura Exploration and Production Inc., formerly known as SapuraKencana Energy Inc. (collectively, “Sapura”) to settle arbitration claims arising from Sapura’s purchase of Newfield’s Malaysian business in February 2014. Under the Agreement and Mutual Release, Newfield and its wholly-owned subsidiary paid Sapura $22.5 million. The settlement amount including legal fees was included in the purchase price allocation as part of the current liabilities assumed by Encana at the acquisition date. Although the outcome of any remaining cannot be predicted with certainty, the Company does not expect these matters to have a material adverse effect on . |
Basis of Presentation and Pri_2
Basis of Presentation and Principles of Consolidation (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
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, 2018, which are included in Item 8 of Encana’s 2018 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, 2018, 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 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, 2019, Encana adopted ASC Topic 842, Leases (“Topic 842”) and related amendments, using the modified retrospective approach recognizing a cumulative effect adjustment at the beginning of the reporting period in which Topic 842 was applied. Results for reporting the periods beginning after January 1, 2019, are presented in accordance with Topic 842, while prior periods have not been restated and are reported in accordance with ASC Topic 840, Leases (“Topic 840”). On transition, Encana elected certain practical expedients permitted under Topic 842 which include: • No reassessment of the classification of leases previously assessed under Topic 840, whether expired or existing contracts contain leases, or initial direct costs of existing leases; and • Application of Topic 842 prospectively to all new or modified land easements after January 1, 2019. Encana also elected the short-term lease exemption, which does not require a right-of-use (“ROU”) asset or lease liability to be recognized on the Consolidated Balance Sheet when the lease term is 12 months or less. The policy and disclosures required under Topic 842 are included in Note 11, Leases. In accordance with Topic 842, Encana recognize d a ROU asset and corresponding lease liability for all operating leases on the Consolidated Balance Sheet, other than leases with lease terms of 12 months or less. Prior to the adoption of Topic 842, operating leases were not recognized on the Consolidated Balance Sheet. There w as no impact to finance leases on transition to Topic 842. The impact from recognizing operating leases on Encana’s Condensed Consolidated Balance Sheet is as follows: Restated Reported as at Impact of Balances as at (US$ millions) December 31, 2018 Adoption January 1, 2019 Property, Plant and Equipment, at cost: Oil and natural gas properties, based on full cost accounting Proved properties $ 41,241 $ - $ 41,241 Unproved properties 3,730 - 3,730 Other 2,122 (1,261 ) 861 Property, plant and equipment 47,093 (1,261 ) 45,832 Less: accumulated depreciation, depletion and amortization (38,121 ) 128 (37,993 ) Property, plant and equipment, net 8,972 (1,133 ) (1 ) 7,839 Other Assets 147 1,015 (1), (2 ) 1,162 Deferred Income Taxes 835 (28 ) 807 Total Assets 15,344 (146 ) 15,198 Current Liabilities Accounts payable and accrued liabilities 1,490 (12 ) (1 ) 1,478 Current portion of operating lease liabilities - 67 (2 ) 67 Income tax payable 1 - 1 Risk management 25 - 25 Current portion of long-term debt 500 - 500 2,016 55 2,071 Operating Lease Liabilities - 948 (2 ) 948 Other Liabilities and Provisions 1,769 (1,224 ) (1 ) 545 Total Liabilities 7,897 (221 ) 7,676 Retained Earnings 435 75 (1 ) 510 Total Shareholders’ Equity 7,447 75 7,522 Total Liabilities and Shareholders’ Equity $ 15,344 $ (146 ) $ 15,198 (1) In accordance with Topic 840, Encana accounted for The Bow office building as a failed sales leaseback and at the effective date of January 1, 2019, The Bow office building remained as such. On transition to Topic 842, Encana re-assessed whether a sale would have occurred at the effective date and determined that a sale occurred. As a result, Encana derecognized the asset and financing liability resulting from the failed sale leaseback transaction measured under Topic 840, recognizing the difference as an adjustment to retained earnings in the Condensed Consolidated Balance Sheet. Upon transition to Topic 842, The Bow office building was determined to be an operating lease for which a ROU asset and corresponding liability was recorded at the present value of remaining minimum lease payments. (2) ROU assets for operating leases were measured at the amount equal to the lease liability and the unamortized balance of any lease incentives prior to the transition date. The lease liabilities for operating leases were measured at the present value of the remaining minimum lease payments outstanding as at January 1, 2019. Although Topic 842 did not have a material impact on the Condensed Consolidated Statements of Earnings or Cash Flows, the change in the accounting of The Bow office building resulted in: i) operating lease expense under Topic 842 reported in administrative expense, whereas for the comparative periods presented under Topic 840, Encana recorded depreciation and interest expense in the Condensed Consolidated Statement of Earnings; and ii) cash outflows presented in cash used in operating activities under Topic 842, whereas for the comparative periods presented under Topic 840, interest and financing cash outflows are presented in cash used in operating activities and cash used in financing activities, respectively, in the Condensed Consolidated Statement of Cash Flows. On January 1, 2019, Encana adopted 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”). While Encana has other post-employment benefit plans which were affected by the U.S. Tax Reform, the impact was not material to the Company’s Consolidated Financial Statements. As a result, the Company did not take the election provided in the amendment. New Standards Issued Not Yet Adopted 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 does not expect the amendment to have a material impact on the Company’s Consolidated Financial Statements. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Schedule of Impacts from Recognizing Operating Leases on Condensed Consolidated Balance Sheet | The impact from recognizing operating leases on Encana’s Condensed Consolidated Balance Sheet is as follows: Restated Reported as at Impact of Balances as at (US$ millions) December 31, 2018 Adoption January 1, 2019 Property, Plant and Equipment, at cost: Oil and natural gas properties, based on full cost accounting Proved properties $ 41,241 $ - $ 41,241 Unproved properties 3,730 - 3,730 Other 2,122 (1,261 ) 861 Property, plant and equipment 47,093 (1,261 ) 45,832 Less: accumulated depreciation, depletion and amortization (38,121 ) 128 (37,993 ) Property, plant and equipment, net 8,972 (1,133 ) (1 ) 7,839 Other Assets 147 1,015 (1), (2 ) 1,162 Deferred Income Taxes 835 (28 ) 807 Total Assets 15,344 (146 ) 15,198 Current Liabilities Accounts payable and accrued liabilities 1,490 (12 ) (1 ) 1,478 Current portion of operating lease liabilities - 67 (2 ) 67 Income tax payable 1 - 1 Risk management 25 - 25 Current portion of long-term debt 500 - 500 2,016 55 2,071 Operating Lease Liabilities - 948 (2 ) 948 Other Liabilities and Provisions 1,769 (1,224 ) (1 ) 545 Total Liabilities 7,897 (221 ) 7,676 Retained Earnings 435 75 (1 ) 510 Total Shareholders’ Equity 7,447 75 7,522 Total Liabilities and Shareholders’ Equity $ 15,344 $ (146 ) $ 15,198 (1) In accordance with Topic 840, Encana accounted for The Bow office building as a failed sales leaseback and at the effective date of January 1, 2019, The Bow office building remained as such. On transition to Topic 842, Encana re-assessed whether a sale would have occurred at the effective date and determined that a sale occurred. As a result, Encana derecognized the asset and financing liability resulting from the failed sale leaseback transaction measured under Topic 840, recognizing the difference as an adjustment to retained earnings in the Condensed Consolidated Balance Sheet. Upon transition to Topic 842, The Bow office building was determined to be an operating lease for which a ROU asset and corresponding liability was recorded at the present value of remaining minimum lease payments. (2) ROU assets for operating leases were measured at the amount equal to the lease liability and the unamortized balance of any lease incentives prior to the transition date. The lease liabilities for operating leases were measured at the present value of the remaining minimum lease payments outstanding as at January 1, 2019. |
Segmented Information (Tables)
Segmented Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Results of Operations (For the three months ended September 30) Segment and Geographic Information Canadian Operations USA Operations China Operations (1) 2019 2018 2019 2018 2019 2018 Revenues Product and service revenues $ 377 $ 453 $ 1,097 $ 718 $ 3 $ - Gains (losses) on risk management, net 87 8 35 (84 ) - - Sublease revenues - - - - - - Total Revenues 464 461 1,132 634 3 - Operating Expenses Production, mineral and other taxes 3 4 63 41 - - Transportation and processing 211 211 125 34 - - Operating 32 34 151 80 4 - Depreciation, depletion and amortization 100 95 438 241 - - Total Operating Expenses 346 344 777 396 4 - Operating Income (Loss) $ 118 $ 117 $ 355 $ 238 $ (1 ) $ - Market Optimization Corporate & Other Consolidated 2019 2018 2019 2018 2019 2018 Revenues Product and service revenues $ 294 $ 317 $ - $ - $ 1,771 $ 1,488 Gains (losses) on risk management, net - (1 ) (41 ) (164 ) 81 (241 ) Sublease revenues - - 19 15 19 15 Total Revenues 294 316 (22 ) (149 ) 1,871 1,262 Operating Expenses Production, mineral and other taxes - - - - 66 45 Transportation and processing 62 33 - - 398 278 Operating 6 8 - 2 193 124 Purchased product 264 282 - - 264 282 Depreciation, depletion and amortization - - 7 13 545 349 Accretion of asset retirement obligation - - 9 8 9 8 Administrative - - 81 57 81 57 Total Operating Expenses 332 323 97 80 1,556 1,143 Operating Income (Loss) $ (38 ) $ (7 ) $ (119 ) $ (229 ) 315 119 Other (Income) Expenses Interest 99 92 Foreign exchange (gain) loss, net 30 (23 ) (Gain) loss on divestitures, net (5 ) - Other (gains) losses, net (1 ) 5 Total Other (Income) Expenses 123 74 Net Earnings (Loss) Before Income Tax 192 45 Income tax expense (recovery) 43 6 Net Earnings (Loss) $ 149 $ 39 (1 ) The Company terminated its production sharing contract with CNOOC and exited its China Operations effective July 31, 2019. Results of Operations (For the nine months ended September 30) Segment and Geographic Information Canadian Operations USA Operations China Operations (1) 2019 2018 2019 2018 2019 2018 Revenues Product and service revenues $ 1,222 $ 1,236 $ 3,062 $ 1,880 $ 37 $ - Gains (losses) on risk management, net 174 93 128 (185 ) - - Sublease revenues - - - - - - Total Revenues 1,396 1,329 3,190 1,695 37 - Operating Expenses Production, mineral and other taxes 11 12 176 97 - - Transportation and processing 640 608 340 92 - - Operating 96 98 414 238 16 - Depreciation, depletion and amortization 287 257 1,141 628 - - Total Operating Expenses 1,034 975 2,071 1,055 16 - Operating Income (Loss) $ 362 $ 354 $ 1,119 $ 640 $ 21 $ - Market Optimization Corporate & Other Consolidated 2019 2018 2019 2018 2019 2018 Revenues Product and service revenues $ 870 $ 909 $ - $ - $ 5,191 $ 4,025 Gains (losses) on risk management, net (1 ) (3 ) (385 ) (422 ) (84 ) (517 ) Sublease revenues - - 54 50 54 50 Total Revenues 869 906 (331 ) (372 ) 5,161 3,558 Operating Expenses Production, mineral and other taxes - - - - 187 109 Transportation and processing 168 99 - - 1,148 799 Operating 21 25 (2 ) 11 545 372 Purchased product 784 803 - - 784 803 Depreciation, depletion and amortization - 1 26 38 1,454 924 Accretion of asset retirement obligation - - 28 24 28 24 Administrative - - 389 187 389 187 Total Operating Expenses 973 928 441 260 4,535 3,218 Operating Income (Loss) $ (104 ) $ (22 ) $ (772 ) $ (632 ) 626 340 Other (Income) Expenses Interest 285 265 Foreign exchange (gain) loss, net (62 ) 93 (Gain) loss on divestitures, net (4 ) (4 ) Other (gains) losses, net 24 2 Total Other (Income) Expenses 243 356 Net Earnings (Loss) Before Income Tax 383 (16 ) Income tax expense (recovery) 143 (55 ) Net Earnings (Loss) $ 240 $ 39 (1 ) The Company terminated its production sharing contract with CNOOC and exited its China Operations effective July 31, 2019. |
Schedule of Marketing Intersegment Eliminations | Intersegment Information Market Optimization Marketing Sales Upstream Eliminations Total For the three months ended September 30, 2019 2018 2019 2018 2019 2018 Revenues $ 2,088 $ 1,513 $ (1,794 ) $ (1,197 ) $ 294 $ 316 Operating Expenses Transportation and processing 173 120 (111 ) (87 ) 62 33 Operating 6 8 - - 6 8 Purchased product 1,947 1,392 (1,683 ) (1,110 ) 264 282 Operating Income (Loss) $ (38 ) $ (7 ) $ - $ - $ (38 ) $ (7 ) Market Optimization Marketing Sales Upstream Eliminations Total For the nine months ended September 30, 2019 2018 2019 2018 2019 2018 Revenues $ 5,459 $ 4,203 $ (4,590 ) $ (3,297 ) $ 869 $ 906 Operating Expenses Transportation and processing 465 335 (297 ) (236 ) 168 99 Operating 21 25 - - 21 25 Purchased product 5,078 3,864 (4,294 ) (3,061 ) 784 803 Depreciation, depletion and amortization - 1 - - - 1 Operating Income (Loss) $ (105 ) $ (22 ) $ 1 $ - $ (104 ) $ (22 ) |
Capital Expenditures | Capital Expenditures Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Canadian Operations $ 99 $ 174 $ 364 $ 553 USA Operations 464 345 1,682 1,065 Market Optimization 2 - 2 - Corporate & Other 1 4 4 8 $ 566 $ 523 $ 2,052 $ 1,626 |
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 September 30, December 31, September 30, December 31, September 30, December 31, 2019 2018 2019 2018 2019 2018 Canadian Operations $ 660 $ 640 $ 1,111 $ 999 $ 1,978 $ 1,852 USA Operations 1,935 1,913 13,782 6,591 16,634 9,104 Market Optimization - - 2 1 225 295 Corporate & Other - - 231 1,381 2,519 4,093 $ 2,595 $ 2,553 $ 15,126 $ 8,972 $ 21,356 $ 15,344 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Disaggregation Of Revenue [Abstract] | |
Disaggregation of Revenue | Revenues (For the three months ended September 30) Canadian Operations USA Operations China Operations (1) 2019 2018 2019 2018 2019 2018 Revenues from Customers Product revenues (2) Oil $ 3 $ 1 $ 905 $ 590 $ 3 $ - NGLs 225 259 99 98 - - Natural gas 150 195 95 31 - - Service revenues Gathering and processing 2 1 (1 ) 4 - - Product and Service Revenues 380 456 1,098 723 3 - Other Revenues Gains (losses) on risk management, net (3) 87 8 35 (84 ) - - Sublease revenues - - - - - - Other Revenues 87 8 35 (84 ) - - Total Revenues $ 467 $ 464 $ 1,133 $ 639 $ 3 $ - Market Optimization Corporate & Other Consolidated 2019 2018 2019 2018 2019 2018 Revenues from Customers Product revenues (2) Oil $ 107 $ 34 $ - $ - $ 1,018 $ 625 NGLs 2 1 - - 326 358 Natural gas 181 274 - - 426 500 Service revenues Gathering and processing - - - - 1 5 Product and Service Revenues 290 309 - - 1,771 1,488 Other Revenues Gains (losses) on risk management, net (3) - (1 ) (41 ) (164 ) 81 (241 ) Sublease revenues - - 19 15 19 15 Other Revenues - (1 ) (22 ) (149 ) 100 (226 ) Total Revenues $ 290 $ 308 $ (22 ) $ (149 ) $ 1,871 $ 1,262 (1) The Company terminated its production sharing contract with CNOOC and exited its China Operations effective July 31, 2019. (2) Includes revenues from production and revenues of product purchased from third parties, but excludes intercompany marketing fees transacted between the Company’s operating segments. ( 3 ) Canadian Operations, USA Operations and Market Optimization include realized gains (losses) on risk management. Corporate and Other includes unrealized gains (losses) on risk management. Revenues (For the nine months ended September 30 ) Canadian Operations USA Operations China Operations (1) 2019 2018 2019 2018 2019 2018 Revenues from Customers Product revenues (2) Oil $ 6 $ 6 $ 2,461 $ 1,579 $ 37 $ - NGLs 659 655 332 221 - - Natural gas 563 580 276 92 - - Service revenues Gathering and processing 4 5 2 4 - - Product and Service Revenues 1,232 1,246 3,071 1,896 37 - Other Revenues Gains (losses) on risk management, net (3) 174 93 128 (185 ) - - Sublease revenues - - - - - - Other Revenues 174 93 128 (185 ) - - Total Revenues $ 1,406 $ 1,339 $ 3,199 $ 1,711 $ 37 $ - Market Optimization Corporate & Other Consolidated 2019 2018 2019 2018 2019 2018 Revenues from Customers Product revenues (2) Oil $ 205 $ 84 $ - $ - $ 2,709 $ 1,669 NGLs 6 6 - - 997 882 Natural gas 640 793 - - 1,479 1,465 Service revenues Gathering and processing - - - - 6 9 Product and Service Revenues 851 883 - - 5,191 4,025 Other Revenues Gains (losses) on risk management, net (3) (1 ) (3 ) (385 ) (422 ) (84 ) (517 ) Sublease revenues - - 54 50 54 50 Other Revenues (1 ) (3 ) (331 ) (372 ) (30 ) (467 ) Total Revenues $ 850 $ 880 $ (331 ) $ (372 ) $ 5,161 $ 3,558 (1) The Company terminated its production sharing contract with CNOOC and exited its China Operations effective July 31, 2019. ( 2 ) Includes revenues from production and revenues of product purchased from third parties, but excludes intercompany marketing fees transacted between the Company’s operating segments. ( 3 ) Canadian Operations, USA Operations and Market Optimization include realized gains (losses) on risk management. Corporate and Other includes unrealized gains (losses) on risk management. |
Interest (Tables)
Interest (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Interest Expense [Abstract] | |
Schedule of Interest Expense | Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Interest Expense on: Debt $ 93 $ 67 $ 268 $ 200 The Bow office building (See Note 2) - 16 - 48 Finance leases (See Note 11) 3 3 10 12 Other 3 6 7 5 $ 99 $ 92 $ 285 $ 265 |
Foreign Exchange (Gain) Loss,_2
Foreign Exchange (Gain) Loss, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Foreign Currency [Abstract] | |
Foreign Exchange (Gain) Loss, Net | Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Unrealized Foreign Exchange (Gain) Loss on: Translation of U.S. dollar financing debt issued from Canada $ 68 $ (74 ) $ (117 ) $ 138 Translation of U.S. dollar risk management contracts issued from Canada 5 (3 ) (13 ) 7 Translation of intercompany notes (24 ) 54 119 11 49 (23 ) (11 ) 156 Foreign Exchange on Settlements of: U.S. dollar financing debt issued from Canada (10 ) - (22 ) 1 U.S. dollar risk management contracts issued from Canada (2 ) (1 ) (1 ) (11 ) Intercompany notes (8 ) (1 ) (31 ) (48 ) Other Monetary Revaluations 1 2 3 (5 ) $ 30 $ (23 ) $ (62 ) $ 93 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Provision For Income Taxes | Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Current Tax Canada $ (2 ) $ - $ - $ (66 ) United States 1 - 3 2 Other Countries - - - 3 Total Current Tax Expense (Recovery) (1 ) - 3 (61 ) Deferred Tax Canada (12 ) 19 22 (9 ) United States 56 (3 ) 117 4 Other Countries - (10 ) 1 11 Total Deferred Tax Expense (Recovery) 44 6 140 6 Income Tax Expense (Recovery) $ 43 $ 6 $ 143 $ (55 ) Effective Tax Rate 22.4 % 13.3 % 37.3 % 343.8 % |
Business Combination (Tables)
Business Combination (Tables) - Newfield Exploration Company [Member] | 9 Months Ended |
Sep. 30, 2019 | |
Schedule of Preliminary Purchase Price Allocations | The transaction was accounted for under the acquisition method, which requires that the assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date, with any excess of the purchase price over the estimated fair value of identified net assets acquired recorded as goodwill. The purchase price allocation represents the consideration paid and the fair values of the assets acquired, and liabilities assumed as of the acquisition date. The purchase price allocation is subject to change based on information that may not yet be available, including, the valuation of any pre-acquisition contingencies, final appraisals and tax returns that provide the underlying tax basis of the net assets and liabilities acquired and uncertain tax positions. The Company expects the purchase price allocation to be completed within 12 months following the acquisition date, during which time the value of the net assets and liabilities acquired may be revised as appropriate. Preliminary Purchase Price Allocation Consideration: Fair value of Encana's common shares issued (1) $ 3,478 Fair value of Newfield liability awards paid in cash (2) 5 Total Consideration $ 3,483 Assets Acquired: Cash and cash equivalents $ 46 Accounts receivable and accrued revenues 486 Other current assets 50 Proved properties 5,903 Unproved properties 838 Other property, plant and equipment 22 Restricted cash 53 Other assets 105 Goodwill (3) 22 Liabilities Assumed: Accounts payable and accrued liabilities (3) (795 ) Long-term debt (2,603 ) Operating lease liabilities (76 ) Other long-term liabilities (3) (61 ) Asset retirement obligation (184 ) Deferred income taxes (3) (323 ) Total Purchase Price $ 3,483 (1) The fair value was based on the NYSE closing price of the Encana common shares of $6.40 on February 13, 2019. (2) The fair value was based on a price of $6.50 per notional unit which was determined using a volume-weighted average of the trading price of Encana common shares on the NYSE on each of the five consecutive trading days ending on the trading day that was three trading days prior to February 13, 2019. ( 3 ) Since the completion of the business combination on February 13, 2019, additional information related to pre-acquisition liabilities and contingencies was obtained resulting in a measurement period adjustment. Changes in the fair value estimates comprised an increase in other liabilities of $12 million, of which the total liability is presented in accounts payable and accrued liabilities, a decrease in deferred tax liabilities of $3 million and a corresponding increase in goodwill of $9 million. |
Schedule of Unaudited Pro Forma Financial Information | The following unaudited pro forma financial information combines the historical financial results of Encana with Newfield and has been prepared as though the acquisition had occurred on January 1, 2018. The pro forma information is not intended to reflect the actual results of operations that would have occurred if the business combination had been completed at the date indicated. In addition, the pro forma information is not intended to be a projection of Encana’s results of operations for any future period. Additionally, pro forma earnings were adjusted to exclude acquisition-related costs incurred of approximately $71 million and severance payments made to employees which totaled $134 million for the nine months ended September 30, 2019. The pro forma financial information does not include any cost savings or other synergies that may result from the Merger or any estimated costs that have been or will be incurred to integrate the assets. For the nine months ended September 30, (US$ millions, except per share amounts) 2019 2018 Revenues $ 5,440 $ 5,215 Net Earnings (Loss) $ 376 $ 369 Net Earnings (Loss) per Common Share Basic & Diluted $ 0.29 $ 0.25 |
Acquisitions And Divestitures (
Acquisitions And Divestitures (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Acquisitions And Divestitures [Abstract] | |
Schedule of Net Acquisitions & (Divestitures) | Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Acquisitions Canadian Operations $ - $ 15 $ - $ 17 USA Operations 25 - 66 - Total Acquisitions 25 15 66 17 Divestitures Canadian Operations - 2 - (55 ) USA Operations (171 ) (26 ) (177 ) (34 ) Total Divestitures (171 ) (24 ) (177 ) (89 ) Net Acquisitions & (Divestitures) $ (146 ) $ (9 ) $ (111 ) $ (72 ) |
Property, Plant And Equipment_2
Property, Plant And Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Property Plant And Equipment [Abstract] | |
Schedule Of Property, Plant And Equipment | As at September 30, 2019 As at December 31, 2018 Accumulated Accumulated Cost DD&A Net Cost DD&A Net Canadian Operations Proved properties $ 14,817 $ (13,949 ) $ 868 $ 13,996 $ (13,261 ) $ 735 Unproved properties 223 - 223 237 - 237 Other 20 - 20 27 - 27 15,060 (13,949 ) 1,111 14,260 (13,261 ) 999 USA Operations Proved properties 35,223 (25,186 ) 10,037 27,189 (24,099 ) 3,090 Unproved properties 3,720 - 3,720 3,493 - 3,493 Other 25 - 25 8 - 8 38,968 (25,186 ) 13,782 30,690 (24,099 ) 6,591 Market Optimization 8 (6 ) 2 7 (6 ) 1 Corporate & Other 893 (662 ) 231 2,136 (755 ) 1,381 $ 54,929 $ (39,803 ) $ 15,126 $ 47,093 $ (38,121 ) $ 8,972 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Summary of Operating and Finance Lease Costs | The tables below summarize Encana’s operating and finance lease costs and include ROU assets and lease liabilities, amounts recognized in net earnings during the period and other lease information. (US$ millions, unless otherwise specified) As at September 30, 2019 Condensed Consolidated Balance Sheet (1) Operating Lease ROU Assets, in Other Assets $ 1,045 Finance Lease ROU Assets, in Other Property Plant and Equipment 39 Operating Lease Liabilities: Current 79 Long-term 972 Finance Lease Liabilities: Current, in accounts payable and accrued liabilities 88 Long-term, in other liabilities and provisions 144 Weighted Average Discount Rate Operating leases 5.42% Finance leases 5.97% Weighted Average Remaining Lease Term Operating leases 16.4 years Finance leases 3.4 years (1) Total ROU assets and liabilities are recorded at the gross contractual amount. A portion of the future lease payments will be recovered from other working interest owners based on their proportionate share when incurred. Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Lease Costs (1) Operating Lease Costs, Excluding Short-Term Leases $ 45 $ 133 Finance Lease Costs: Amortization of ROU assets 1 3 Interest on lease liabilities 3 10 Total Finance Lease Costs 4 13 Short-Term Lease Costs 93 250 Variable Lease Costs 3 10 Sublease Income: Operating lease income 15 41 Variable lease income 4 13 Other Information: Cash Paid for Amounts Included in the Measurement of Lease Liabilities: Operating cash outflows from operating leases 57 157 Investing cash outflows from operating leases 80 220 Operating cash outflows from finance leases 3 10 Financing cash outflows from finance leases 22 63 Supplemental Non-Cash Information: New ROU operating lease assets and liabilities 1 11 (1) Lease costs include amounts capitalized into property, plant and equipment on the Condensed Consolidated Balance Sheet and lease expense recognized in the Condensed Consolidated Statement of Earnings. |
Schedule Operating Lease Expense | Operating lease expense is reflected in the Condensed Consolidated Statement of Earnings as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Operating Lease Expense Transportation and processing $ 1 $ 2 Operating 28 76 Administrative (1) 30 86 Total Operating Lease Expense $ 59 $ 164 (1) Includes $23 million and $69 million for the three and nine months ended September 30, 2019, respectively, related to The Bow office building. |
Schedule of Future Lease Payments and Lease Liabilities Related to Operating and Finance Leases | The following table outlines the Company’s future lease payments and lease liabilities related to the Company’s operating and finance leases as at September 30, 2019: 2019 2020 2021 2022 2023 Thereafter Total Operating Leases (1) Expected Future Lease Payments $ 37 $ 128 $ 112 $ 97 $ 85 $ 1,165 $ 1,624 Less: Discounting 573 Present Value of Future Operating Lease Payments $ 1,051 Sublease Income (undiscounted) $ (10 ) $ (41 ) $ (42 ) $ (37 ) $ (37 ) $ (566 ) $ (733 ) Finance Leases Expected Future Lease Payments $ 25 $ 99 $ 87 $ 8 $ 8 $ 30 $ 257 Less: Discounting 25 Present Value of Future Finance Lease Payments $ 232 Sublease Income (undiscounted) (2) $ (2 ) $ (8 ) $ (8 ) $ (8 ) $ (7 ) $ (24 ) $ (57 ) (1) Lease payments are presented based on the gross contractual amount. A portion of the future lease payments will be recovered from other working interest owners based on their proportionate share when incurred. (2) Classified as operating lease. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule Of Long-Term Debt | As at As at September 30, December 31, 2019 2018 U.S. Dollar Denominated Debt Revolving credit and term loan borrowings $ 740 $ - U.S. Unsecured Notes: 6.50% due May 15, 2019 - 500 3.90% due November 15, 2021 600 600 5.75% due January 30, 2022 (See Note 8) 750 - 5.625% due July 1, 2024 (See Note 8) 1,000 - 5.375% due January 1, 2026 (See Note 8) 700 - 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 6,901 4,211 Increase in Value of Debt Acquired 157 22 Unamortized Debt Discounts and Issuance Costs (34 ) (35 ) Total Long-Term Debt $ 7,024 $ 4,198 Current Portion $ - $ 500 Long-Term Portion 7,024 3,698 $ 7,024 $ 4,198 |
Other Liabilities And Provisi_2
Other Liabilities And Provisions (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Liabilities and Provisions | As at As at September 30, December 31, 2019 2018 The Bow Office Building $ - $ 1,224 Finance Lease Obligations (See Note 11) 144 211 Unrecognized Tax Benefits 172 167 Pensions and Other Post-Employment Benefits 170 105 Long-Term Incentive Costs (See Note 19) 29 34 Other Derivative Contracts (See Notes 21, 22) 8 10 Other 25 18 $ 548 $ 1,769 |
Asset Retirement Obligation (Ta
Asset Retirement Obligation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Change In Asset Retirement Obligation | As at As at September 30, December 31, 2019 2018 Asset Retirement Obligation, Beginning of Year $ 455 $ 514 Liabilities Incurred 13 17 Liabilities Acquired (See Note 8) 184 - Liabilities Settled and Divested (100 ) (56 ) Change in Estimated Future Cash Outflows - (20 ) Accretion Expense 28 32 Foreign Currency Translation 10 (32 ) Asset Retirement Obligation, End of Period $ 590 $ 455 Current Portion $ 176 $ 90 Long-Term Portion 414 365 $ 590 $ 455 |
Share Capital (Tables)
Share Capital (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Class Of Stock Disclosures [Abstract] | |
Schedule of Common Stock Issued and Outstanding | As at September 30, 2019 As at December 31, 2018 Number (millions) Amount Number (millions) Amount Common Shares Outstanding, Beginning of Year 952.5 $ 4,656 973.1 $ 4,757 Common Shares Purchased (196.7 ) (1,073 ) (20.7 ) (102 ) Common Shares Issued 543.4 3,478 - - Common Shares Issued Under Dividend Reinvestment Plan - - 0.1 1 Common Shares Outstanding, End of Period 1,299.2 $ 7,061 952.5 $ 4,656 |
Earnings Per Common Share | Three Months Ended Nine Months Ended September 30, September 30, (US$ millions, except per share amounts) 2019 2018 2019 2018 Net Earnings (Loss) $ 149 $ 39 $ 240 $ 39 Number of Common Shares: Weighted average common shares outstanding - Basic 1,322.8 955.1 1,308.4 962.2 Effect of dilutive securities - - - - Weighted Average Common Shares Outstanding - Diluted 1,322.8 955.1 1,308.4 962.2 Net Earnings (Loss) per Common Share Basic & Diluted $ 0.11 $ 0.04 $ 0.18 $ 0.04 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Foreign Currency Translation Adjustment Balance, Beginning of Period $ 1,014 $ 1,028 $ 976 $ 1,029 Change in Foreign Currency Translation Adjustment (6 ) 22 32 21 Balance, End of Period $ 1,008 $ 1,050 $ 1,008 $ 1,050 Pension and Other Post-Employment Benefit Plans Balance, Beginning of Period $ (2 ) $ 12 $ 22 $ 13 Plan Amendment - - (29 ) - Income Taxes - - 6 - Reclassification of Net Actuarial (Gains) and Losses to Net Earnings (See Note 20) - - (1 ) (1 ) Income Taxes - - - - Balance, End of Period $ (2 ) $ 12 $ (2 ) $ 12 Total Accumulated Other Comprehensive Income $ 1,006 $ 1,062 $ 1,006 $ 1,062 During the nine months ended September 30, 2019, Encana amended the other post-employment benefits arrangements in conjunction with the integration of the Newfield business acquired. The plan amendment resulted in an increase to pension liabilities with a corresponding loss recognized in other comprehensive income. |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring Charges [Abstract] | |
Restructuring Costs Expensed | Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Severance and Benefits $ 4 $ - $ 132 $ - Outplacement, Moving and Other Expenses - - 2 - Restructuring Expenses $ 4 $ - $ 134 $ - |
Schedule of Change in Restructuring Accrual | As at As at September 30, December 31, 2019 2018 Outstanding Restructuring Accrual, Beginning of Year $ - $ - Restructuring Expenses Incurred 134 - Restructuring Costs Paid (130 ) - Outstanding Restructuring Accrual, End of Period (1) $ 4 $ - (1) Included in accounts payable and accrued liabilities in the Condensed Consolidated Balance Sheet. |
Compensation Plans (Tables)
Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Weighted Average Assumptions Used to Fair Value Share Units | As at September 30, 2019 As at September 30, 2018 US$ Share Units C$ Share Units US$ Share Units C$ Share Units Risk Free Interest Rate 1.58% 1.58% 2.18% 2.18% Dividend Yield 1.63% 1.64% 0.46% 0.46% Expected Volatility Rate (1) 44.14% 42.77% 55.44% 51.90% Expected Term 2.9 yrs 2.6 yrs 1.6 yrs 2.0 yrs Market Share Price US$4.60 C$6.07 US$13.11 C$16.93 (1) Volatility was estimated using historical rates. |
Amounts Recognized For Share-Based Payment Transactions | Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Total Compensation Costs of Transactions Classified as Cash-Settled $ 2 $ 36 $ 46 $ 118 Less: Total Share-Based Compensation Costs Capitalized (1 ) (11 ) (16 ) (33 ) Total Share-Based Compensation Expense (Recovery) $ 1 $ 25 $ 30 $ 85 Recognized on the Condensed Consolidated Statement of Earnings in: Operating $ - $ 8 $ 12 $ 24 Administrative 1 17 18 61 $ 1 $ 25 $ 30 $ 85 |
Liability for Share-Based Payment Transactions | As at September 30, 2019 As at December 31, 2018 Liability for Cash-Settled Share-Based Payment Transactions: Unvested $ 53 $ 148 Vested 12 17 $ 65 $ 165 |
Schedule of Share-based Compensation Activity | Nine Months Ended September 30, 2019 (thousands of units) TSARs 1,244 SARs 1,718 PSUs 7,833 DSUs 111 RSUs 11,004 |
Pension and Other Post-Employ_2
Pension and Other Post-Employment Benefits (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 nine months ended September 30 as follows: Pension Benefits OPEB Total 2019 2018 2019 2018 2019 2018 Net Defined Periodic Benefit Cost $ 1 $ 1 $ 13 $ 5 $ 14 $ 6 Defined Contribution Plan Expense 18 17 - - 18 17 Total Benefit Plans Expense $ 19 $ 18 $ 13 $ 5 $ 32 $ 23 |
Schedule of Net Defined Periodic Benefit Cost | The net defined periodic benefit cost for the nine months ended September 30 is as follows: Defined Benefits OPEB Total 2019 2018 2019 2018 2019 2018 Service Cost $ 1 $ 1 $ 7 $ 5 $ 8 $ 6 Interest Cost 5 5 3 2 8 7 Expected Return on Plan Assets (5 ) (6 ) - - (5 ) (6 ) Amounts Reclassified from Accumulated Other Comprehensive Income: Amortization of net actuarial (gains) and losses - 1 (1 ) (2 ) (1 ) (1 ) Curtailment - - 4 - 4 - Total Net Defined Periodic Benefit Cost (1) $ 1 $ 1 $ 13 $ 5 $ 14 $ 6 (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) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Fair Value, Assets And Liabilities Measured On Recurring Basis | Fair value changes and settlements for amounts related to risk management assets and liabilities are recognized in revenues and foreign exchange gains and losses according to their purpose. As at September 30, 2019 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 $ - $ 256 $ 92 $ 348 $ (68 ) $ 280 Long-term assets - 59 22 81 (35 ) 46 Foreign Currency Derivatives: Current assets - 4 - 4 - 4 Long-term assets - 1 - 1 - 1 Risk Management Liabilities Commodity Derivatives: Current liabilities $ - $ 78 $ - $ 78 $ (68 ) $ 10 Long-term liabilities - 49 - 49 (35 ) 14 Other Derivative Contracts Current in accounts payable and accrued liabilities $ - $ 2 $ - $ 2 $ - $ 2 Long-term in other liabilities and provisions - 8 - 8 - 8 As at December 31, 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 $ - $ 492 $ 139 $ 631 $ (77 ) $ 554 Long-term assets - 177 - 177 (16 ) 161 Risk Management Liabilities Commodity Derivatives: Current liabilities $ - $ 81 $ - $ 81 $ (77 ) $ 4 Long-term liabilities - 38 - 38 (16 ) 22 Foreign Currency Derivatives: Current liabilities - 21 - 21 - 21 Other Derivative Contracts Current in accounts payable and accrued liabilities $ - $ 4 $ - $ 4 $ - $ 4 Long-term in other liabilities and provisions - 10 - 10 - 10 (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. |
Summary Of Changes In Level 3 Fair Value Measurements | A summary of changes in Level 3 fair value measurements for the nine months ended September 30 is presented below: Risk Management 2019 2018 Balance, Beginning of Year $ 139 $ (51 ) Total Gains (Losses) 24 (177 ) Purchases, Sales, Issuances and Settlements: Purchases, sales and issuances - - Settlements (49 ) 80 Transfers Out of Level 3 (1) - - Balance, End of Period $ 114 $ (148 ) Change in Unrealized Gains (Losses) Related to Assets and Liabilities Held at End of Period $ 83 $ (136 ) (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 | Quantitative information about unobservable inputs used in Level 3 fair value measurements is presented below: Valuation Technique Unobservable Input As at September 30, 2019 As at December 31, 2018 Risk Management - WTI Options Option Model Implied Volatility 22% - 61% 29% - 73% |
Financial Instruments and Ris_2
Financial Instruments and Risk Management (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Risk Management Positions | Notional Volumes Term Average Price Fair Value Crude Oil and NGL Contracts US$/bbl Fixed Price Contracts WTI Fixed Price 45.0 Mbbls/d 2019 60.24 $ 26 WTI Fixed Price 24.0 Mbbls/d 2020 60.05 74 Propane Fixed Price 3.8 Mbbls/d 2019 35.72 11 Propane Fixed Price 1.8 Mbbls/d 2020 21.00 1 Butane Fixed Price 6.5 Mbbls/d 2019 40.54 10 Ethane Fixed Price 5.3 Mbbls/d 2019 17.23 5 WTI Fixed Price Swaptions (1) 4.0 Mbbls/d 2021 58.00 (4 ) WTI Three-Way Options Sold call / bought put / sold put 87.5 Mbbls/d 2019 67.72 / 56.47 / 45.86 27 Sold call / bought put / sold put 80.0 Mbbls/d 2020 61.68 / 53.44 / 43.44 54 WTI Costless Collars Sold call / bought put 43.0 Mbbls/d 2019 65.57 / 56.28 13 Sold call / bought put 15.0 Mbbls/d 2020 68.71 / 50.00 20 Basis Contracts (2) 2019 (19 ) 2020 (34 ) Crude Oil and NGLs Fair Value Position 184 Natural Gas Contracts US$/Mcf Fixed Price Contracts NYMEX Fixed Price 687 MMcf/d 2019 2.72 19 NYMEX Fixed Price 653 MMcf/d 2020 2.69 64 NYMEX Fixed Price Swaptions (3) 180 MMcf/d 2021 2.61 (9 ) NYMEX Three-Way Options Sold call / bought put / sold put 330 MMcf/d 2020 2.72 / 2.60 / 2.25 7 NYMEX Costless Collars Sold call / bought put 177 MMcf/d 2019 3.05 / 2.89 8 Sold call / bought put 55 MMcf/d 2020 2.88 / 2.50 4 NYMEX Call Options Sold call 230 MMcf/d 2019 3.75 - Bought call 230 MMcf/d 2019 3.75 (1 ) Sold call 230 MMcf/d 2020 3.25 4 Basis Contracts (4) 2019 10 2020 30 2021 (2 ) 2022 - 2025 (8 ) Other Financial Positions (1 ) Natural Gas Fair Value Position 125 Net Premiums Received on Unexpired Options (7 ) Other Derivative Contracts Fair Value Position (10 ) Foreign Currency Contracts Fair Value Position (5) 2019 - 2020 5 Total Fair Value Position and Net Premiums Received $ 297 (1) WTI Fixed Price Swaptions give the counterparty the option to extend certain 2020 Fixed Price swaps to 2021. (2) Encana has entered into crude and NGL differential swaps associated with Midland, Magellan East Houston, Belvieu, Conway, Brent, Louisiana Light Sweet and WTI. (3) NYMEX Fixed Price Swaptions give the counterparty the option to extend certain 2020 Fixed Price swaps to 2021. ( 4 ) Encana has entered into natural gas basis swaps associated with AECO, Dawn, Chicago, Malin, Waha, Houston Ship Channel and 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 Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Realized Gains (Losses) on Risk Management Commodity and Other Derivatives: Revenues (1) $ 122 $ (77 ) $ 301 $ (95 ) Foreign Currency Derivatives: Foreign exchange 2 1 1 11 $ 124 $ (76 ) $ 302 $ (84 ) Unrealized Gains (Losses) on Risk Management Commodity and Other Derivatives: Revenues (2) $ (41 ) $ (164 ) $ (385 ) $ (422 ) Foreign Currency Derivatives: Foreign exchange (11 ) 9 26 (17 ) $ (52 ) $ (155 ) $ (359 ) $ (439 ) Total Realized and Unrealized Gains (Losses) on Risk Management, net Commodity and Other Derivatives: Revenues (1) (2) $ 81 $ (241 ) $ (84 ) $ (517 ) Foreign Currency Derivatives: Foreign exchange (9 ) 10 27 (6 ) $ 72 $ (231 ) $ (57 ) $ (523 ) (1) Includes realized gains of $2 million and $5 million for the three and nine months ended September 30, 2019, respectively, (2018 - gains of $2 (2) Includes unrealized losses of nil and $1 million for the three and nine months ended September 30, 2019, respectively, (2018 - losses of nil and $1 million, respectively) related to other derivative contracts. |
Reconciliation of Unrealized Risk Management Positions | 2019 2018 Fair Value Total Unrealized Gain (Loss) Total Unrealized Gain (Loss) Fair Value of Contracts, Beginning of Year $ 654 Change in Fair Value of Contracts in Place at Beginning of Year and Contracts Entered into During the Period (57 ) $ (57 ) $ (523 ) Settlement of Other Derivative Contracts 5 Amortization of Option Premiums During the Period (3 ) Fair Value of Contracts Realized During the Period (302 ) (302 ) 84 Fair Value of Contracts and Net Premiums Received, End of Period $ 297 $ (359 ) $ (439 ) |
Unrealized Risk Management Positions | As at As at September 30, December 31, 2019 2018 Risk Management Assets Current $ 284 $ 554 Long-term 47 161 331 715 Risk Management Liabilities Current 10 25 Long-term 14 22 24 47 Other Derivative Contracts Current in accounts payable and accrued liabilities 2 4 Long-term in other liabilities and provisions 8 10 Net Risk Management Assets (Liabilities) and Other Derivative Contracts $ 297 $ 654 |
Supplementary Information (Tabl
Supplementary Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Net Change in Non-Cash Working Capital | A) Net Change in Non-Cash Working Capital Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Operating Activities Accounts receivable and accrued revenues $ 61 $ (8 ) $ 178 $ (152 ) Accounts payable and accrued liabilities (82 ) 59 (66 ) 99 Current portion of operating lease liabilities (9 ) - 52 - Income tax receivable and payable (2 ) 262 (34 ) 252 $ (32 ) $ 313 $ 130 $ 199 |
Non-Cash Activities | B) Non-Cash Activities Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Non-Cash Investing Activities Asset retirement obligation incurred (See Note 14) $ 2 $ 3 $ 13 $ 13 Property, plant and equipment accruals (80 ) (20 ) (33 ) 61 Capitalized long-term incentives 1 11 (31 ) 6 Property additions/dispositions (swaps) 63 55 66 195 New ROU operating lease assets and liabilities (See Note 11) (1 ) - (11 ) - Non-Cash Financing Activities Common shares issued in conjunction with the Newfield business combination (See Note 8) $ - $ - $ (3,478 ) $ - Common shares issued under dividend reinvestment plan (See Note 15) - - - - |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments | The following table outlines the Company’s commitments as at September 30, 2019: Expected Future Payments (undiscounted) 2019 2020 2021 2022 2023 Thereafter Total Transportation and Processing $ 197 $ 731 $ 625 $ 594 $ 485 $ 2,407 $ 5,039 Drilling and Field Services 64 24 6 - - - 94 Building Leases 4 15 14 11 7 15 66 Total $ 265 $ 770 $ 645 $ 605 $ 492 $ 2,422 $ 5,199 |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements - Schedule of Impacts from Recognizing Operating Leases on Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Oil and natural gas properties, based on full cost accounting | |||||||
Proved properties | $ 50,094 | $ 41,241 | $ 41,241 | ||||
Unproved properties | 3,943 | 3,730 | 3,730 | ||||
Other | 892 | 861 | 2,122 | ||||
Property, plant and equipment | 54,929 | 45,832 | 47,093 | ||||
Less: Accumulated depreciation, depletion and amortization | (39,803) | (37,993) | (38,121) | ||||
Property, plant and equipment, net | 15,126 | 7,839 | 8,972 | ||||
Other Assets | 1,202 | 1,162 | 147 | ||||
Deferred Income Taxes | 521 | 807 | 835 | ||||
Total Assets | 21,356 | 15,198 | 15,344 | ||||
Current Liabilities | |||||||
Accounts payable and accrued liabilities | 2,191 | 1,478 | 1,490 | ||||
Current portion of operating lease liabilities | 79 | 67 | 0 | ||||
Income tax payable | 1 | 1 | 1 | ||||
Risk management | 10 | 25 | 25 | ||||
Current portion of long-term debt | 0 | 500 | 500 | ||||
Total Current Liabilities | 2,281 | 2,071 | 2,016 | ||||
Operating Lease Liabilities | 972 | 948 | 0 | ||||
Other Liabilities and Provisions | 548 | 545 | 1,769 | ||||
Total Liabilities | 11,435 | 7,676 | 7,897 | ||||
Retained Earnings | 452 | 510 | 435 | ||||
Total Shareholders’ Equity | 9,921 | $ 10,015 | 7,522 | 7,447 | $ 6,494 | $ 6,497 | $ 6,728 |
Total Liabilities and Shareholders’ Equity | $ 21,356 | 15,198 | $ 15,344 | ||||
Impact of Adoption [Member] | Topic 842 [Member] | |||||||
Oil and natural gas properties, based on full cost accounting | |||||||
Proved properties | 0 | ||||||
Unproved properties | 0 | ||||||
Other | (1,261) | ||||||
Property, plant and equipment | (1,261) | ||||||
Less: Accumulated depreciation, depletion and amortization | 128 | ||||||
Property, plant and equipment, net | (1,133) | ||||||
Other Assets | 1,015 | ||||||
Deferred Income Taxes | (28) | ||||||
Total Assets | (146) | ||||||
Current Liabilities | |||||||
Accounts payable and accrued liabilities | (12) | ||||||
Current portion of operating lease liabilities | 67 | ||||||
Income tax payable | 0 | ||||||
Risk management | 0 | ||||||
Current portion of long-term debt | 0 | ||||||
Total Current Liabilities | 55 | ||||||
Operating Lease Liabilities | 948 | ||||||
Other Liabilities and Provisions | (1,224) | ||||||
Total Liabilities | (221) | ||||||
Retained Earnings | 75 | ||||||
Total Shareholders’ Equity | 75 | ||||||
Total Liabilities and Shareholders’ Equity | $ (146) |
Segmented Information (Segment
Segmented Information (Segment and Geographical Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | ||
Segment Reporting Information [Line Items] | ||||||
Product and service revenues | $ 1,771 | $ 1,488 | $ 5,191 | $ 4,025 | ||
Gains (losses) on risk management, net | 81 | (241) | (84) | (517) | ||
Sublease revenues | 19 | 15 | 54 | 50 | ||
Total Revenues | 1,871 | 1,262 | 5,161 | 3,558 | ||
Production, mineral and other taxes | 66 | 45 | 187 | 109 | ||
Transportation and processing | 398 | 278 | 1,148 | 799 | ||
Operating | 193 | 124 | 545 | 372 | ||
Purchased product | 264 | 282 | 784 | 803 | ||
Depreciation, depletion and amortization | 545 | 349 | 1,454 | 924 | ||
Accretion of asset retirement obligation | 9 | 8 | 28 | 24 | $ 32 | |
Administrative | 81 | 57 | 389 | 187 | ||
Total Operating Expenses | 1,556 | 1,143 | 4,535 | 3,218 | ||
Operating Income (Loss) | 315 | 119 | 626 | 340 | ||
Interest | 99 | 92 | 285 | 265 | ||
Foreign exchange (gain) loss, net | 30 | (23) | (62) | 93 | ||
(Gain) loss on divestitures, net | (5) | 0 | (4) | (4) | ||
Other (gains) losses, net | (1) | 5 | 24 | 2 | ||
Total Other (Income) Expenses | 123 | 74 | 243 | 356 | ||
Net Earnings (Loss) Before Income Tax | 192 | 45 | 383 | (16) | ||
Income tax expense (recovery) | 43 | 6 | 143 | (55) | ||
Net Earnings (Loss) | 149 | 39 | 240 | 39 | ||
Corporate & Other [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Product and service revenues | 0 | 0 | 0 | 0 | ||
Gains (losses) on risk management, net | (41) | (164) | (385) | (422) | ||
Sublease revenues | 19 | 15 | 54 | 50 | ||
Total Revenues | (22) | (149) | (331) | (372) | ||
Production, mineral and other taxes | 0 | 0 | 0 | 0 | ||
Transportation and processing | 0 | 0 | 0 | 0 | ||
Operating | 0 | 2 | (2) | 11 | ||
Purchased product | 0 | 0 | 0 | 0 | ||
Depreciation, depletion and amortization | 7 | 13 | 26 | 38 | ||
Accretion of asset retirement obligation | 9 | 8 | 28 | 24 | ||
Administrative | 81 | 57 | 389 | 187 | ||
Total Operating Expenses | 97 | 80 | 441 | 260 | ||
Operating Income (Loss) | (119) | (229) | (772) | (632) | ||
Canadian Operations [Member] | Operating Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Product and service revenues | 377 | 453 | 1,222 | 1,236 | ||
Gains (losses) on risk management, net | 87 | 8 | 174 | 93 | ||
Sublease revenues | 0 | 0 | 0 | 0 | ||
Total Revenues | 464 | 461 | 1,396 | 1,329 | ||
Production, mineral and other taxes | 3 | 4 | 11 | 12 | ||
Transportation and processing | 211 | 211 | 640 | 608 | ||
Operating | 32 | 34 | 96 | 98 | ||
Depreciation, depletion and amortization | 100 | 95 | 287 | 257 | ||
Total Operating Expenses | 346 | 344 | 1,034 | 975 | ||
Operating Income (Loss) | 118 | 117 | 362 | 354 | ||
USA Operations [Member] | Operating Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Product and service revenues | 1,097 | 718 | 3,062 | 1,880 | ||
Gains (losses) on risk management, net | 35 | (84) | 128 | (185) | ||
Sublease revenues | 0 | 0 | 0 | 0 | ||
Total Revenues | 1,132 | 634 | 3,190 | 1,695 | ||
Production, mineral and other taxes | 63 | 41 | 176 | 97 | ||
Transportation and processing | 125 | 34 | 340 | 92 | ||
Operating | 151 | 80 | 414 | 238 | ||
Depreciation, depletion and amortization | 438 | 241 | 1,141 | 628 | ||
Total Operating Expenses | 777 | 396 | 2,071 | 1,055 | ||
Operating Income (Loss) | 355 | 238 | 1,119 | 640 | ||
China Operations [Member] | Operating Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Product and service revenues | [1] | 3 | 0 | 37 | 0 | |
Gains (losses) on risk management, net | [1] | 0 | 0 | 0 | 0 | |
Sublease revenues | [1] | 0 | 0 | 0 | 0 | |
Total Revenues | [1] | 3 | 0 | 37 | 0 | |
Production, mineral and other taxes | [1] | 0 | 0 | 0 | 0 | |
Transportation and processing | [1] | 0 | 0 | 0 | 0 | |
Operating | [1] | 4 | 0 | 16 | 0 | |
Depreciation, depletion and amortization | [1] | 0 | 0 | 0 | 0 | |
Total Operating Expenses | [1] | 4 | 0 | 16 | 0 | |
Operating Income (Loss) | [1] | (1) | 0 | 21 | 0 | |
Market Optimization [Member] | Operating Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Product and service revenues | 294 | 317 | 870 | 909 | ||
Gains (losses) on risk management, net | 0 | (1) | (1) | (3) | ||
Sublease revenues | 0 | 0 | 0 | 0 | ||
Total Revenues | 294 | 316 | 869 | 906 | ||
Production, mineral and other taxes | 0 | 0 | 0 | 0 | ||
Transportation and processing | 62 | 33 | 168 | 99 | ||
Operating | 6 | 8 | 21 | 25 | ||
Purchased product | 264 | 282 | 784 | 803 | ||
Depreciation, depletion and amortization | 0 | 0 | 0 | 1 | ||
Accretion of asset retirement obligation | 0 | 0 | 0 | 0 | ||
Administrative | 0 | 0 | 0 | 0 | ||
Total Operating Expenses | 332 | 323 | 973 | 928 | ||
Operating Income (Loss) | $ (38) | $ (7) | $ (104) | $ (22) | ||
[1] | The Company terminated its production sharing contract with CNOOC and exited its China Operations effective July 31, 2019. |
Segmented Information (Schedule
Segmented Information (Schedule of Marketing Intersegment Eliminations) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Product Information [Line Items] | ||||
Revenues | $ 1,871 | $ 1,262 | $ 5,161 | $ 3,558 |
Transportation and processing | 398 | 278 | 1,148 | 799 |
Operating | 193 | 124 | 545 | 372 |
Purchased product | 264 | 282 | 784 | 803 |
Depreciation, depletion and amortization | 545 | 349 | 1,454 | 924 |
Operating Income (Loss) | 315 | 119 | 626 | 340 |
Market Optimization [Member] | Operating Segments [Member] | ||||
Product Information [Line Items] | ||||
Revenues | 294 | 316 | 869 | 906 |
Transportation and processing | 62 | 33 | 168 | 99 |
Operating | 6 | 8 | 21 | 25 |
Purchased product | 264 | 282 | 784 | 803 |
Depreciation, depletion and amortization | 0 | 0 | 0 | 1 |
Operating Income (Loss) | (38) | (7) | (104) | (22) |
Market Optimization [Member] | Reportable Subsegments [Member] | Marketing Sales [Member] | ||||
Product Information [Line Items] | ||||
Revenues | 2,088 | 1,513 | 5,459 | 4,203 |
Transportation and processing | 173 | 120 | 465 | 335 |
Operating | 6 | 8 | 21 | 25 |
Purchased product | 1,947 | 1,392 | 5,078 | 3,864 |
Depreciation, depletion and amortization | 0 | 1 | ||
Operating Income (Loss) | (38) | (7) | (105) | (22) |
Market Optimization [Member] | Intersubsegment Eliminations [Member] | ||||
Product Information [Line Items] | ||||
Revenues | (1,794) | (1,197) | (4,590) | (3,297) |
Transportation and processing | (111) | (87) | (297) | (236) |
Operating | 0 | 0 | 0 | 0 |
Purchased product | (1,683) | (1,110) | (4,294) | (3,061) |
Depreciation, depletion and amortization | 0 | 0 | ||
Operating Income (Loss) | $ 0 | $ 0 | $ 1 | $ 0 |
Segmented Information (Capital
Segmented Information (Capital Expenditures) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Capital Expenditures | $ 566 | $ 523 | $ 2,052 | $ 1,626 |
Operating Segments [Member] | Canadian Operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Capital Expenditures | 99 | 174 | 364 | 553 |
Operating Segments [Member] | USA Operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Capital Expenditures | 464 | 345 | 1,682 | 1,065 |
Operating Segments [Member] | Market Optimization [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Capital Expenditures | 2 | 0 | 2 | 0 |
Corporate & Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Capital Expenditures | $ 1 | $ 4 | $ 4 | $ 8 |
Segmented Information (Goodwill
Segmented Information (Goodwill, Property, Plant and Equipment and Total Assets By Segment) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Goodwill | $ 2,595 | $ 2,553 | |
Property, Plant and Equipment | 15,126 | $ 7,839 | 8,972 |
Total Assets | 21,356 | $ 15,198 | 15,344 |
Operating Segments [Member] | Canadian Operations [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Goodwill | 660 | 640 | |
Property, Plant and Equipment | 1,111 | 999 | |
Total Assets | 1,978 | 1,852 | |
Operating Segments [Member] | USA Operations [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Goodwill | 1,935 | 1,913 | |
Property, Plant and Equipment | 13,782 | 6,591 | |
Total Assets | 16,634 | 9,104 | |
Operating Segments [Member] | Market Optimization [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Goodwill | 0 | 0 | |
Property, Plant and Equipment | 2 | 1 | |
Total Assets | 225 | 295 | |
Corporate & Other [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Goodwill | 0 | 0 | |
Property, Plant and Equipment | 231 | 1,381 | |
Total Assets | $ 2,519 | $ 4,093 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Disaggregation of Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Product revenues | $ 1,771 | $ 1,488 | $ 5,191 | $ 4,025 |
Gains (losses) on risk management, net | 81 | (241) | (84) | (517) |
Sublease revenues | 19 | 15 | 54 | 50 |
Other revenues | 100 | (226) | (30) | (467) |
Total Revenues | 1,871 | 1,262 | 5,161 | 3,558 |
Operating Segments [Member] | Canadian Operations Excluding Intercompany Segment Transactions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 380 | 456 | 1,232 | 1,246 |
Gains (losses) on risk management, net | 87 | 8 | 174 | 93 |
Sublease revenues | 0 | 0 | 0 | 0 |
Other revenues | 87 | 8 | 174 | 93 |
Total Revenues | 467 | 464 | 1,406 | 1,339 |
Operating Segments [Member] | USA Operations Excluding Intercompany Segment Transactions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 1,098 | 723 | 3,071 | 1,896 |
Gains (losses) on risk management, net | 35 | (84) | 128 | (185) |
Sublease revenues | 0 | 0 | 0 | 0 |
Other revenues | 35 | (84) | 128 | (185) |
Total Revenues | 1,133 | 639 | 3,199 | 1,711 |
Operating Segments [Member] | China Operations Excluding Intercompany Segment Transactions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 3 | 0 | 37 | 0 |
Gains (losses) on risk management, net | 0 | 0 | 0 | 0 |
Sublease revenues | 0 | 0 | 0 | 0 |
Other revenues | 0 | 0 | 0 | 0 |
Total Revenues | 3 | 0 | 37 | 0 |
Operating Segments [Member] | Market Optimization Excluding Intercompany Segment Transactions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 290 | 309 | 851 | 883 |
Gains (losses) on risk management, net | 0 | (1) | (1) | (3) |
Sublease revenues | 0 | 0 | 0 | 0 |
Other revenues | 0 | (1) | (1) | (3) |
Total Revenues | 290 | 308 | 850 | 880 |
Corporate & Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 0 | 0 | 0 | 0 |
Gains (losses) on risk management, net | (41) | (164) | (385) | (422) |
Sublease revenues | 19 | 15 | 54 | 50 |
Other revenues | (22) | (149) | (331) | (372) |
Total Revenues | (22) | (149) | (331) | (372) |
Oil [Member] | Product Revenues Including Sale of Product Purchased from Third Parties [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 1,018 | 625 | 2,709 | 1,669 |
Oil [Member] | Operating Segments [Member] | Canadian Operations Excluding Intercompany Segment Transactions [Member] | Product Revenues Including Sale of Product Purchased from Third Parties [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 3 | 1 | 6 | 6 |
Oil [Member] | Operating Segments [Member] | USA Operations Excluding Intercompany Segment Transactions [Member] | Product Revenues Including Sale of Product Purchased from Third Parties [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 905 | 590 | 2,461 | 1,579 |
Oil [Member] | Operating Segments [Member] | China Operations Excluding Intercompany Segment Transactions [Member] | Product Revenues Including Sale of Product Purchased from Third Parties [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 3 | 0 | 37 | 0 |
Oil [Member] | Operating Segments [Member] | Market Optimization Excluding Intercompany Segment Transactions [Member] | Product Revenues Including Sale of Product Purchased from Third Parties [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 107 | 34 | 205 | 84 |
Oil [Member] | Corporate & Other [Member] | Product Revenues Including Sale of Product Purchased from Third Parties [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 0 | 0 | 0 | 0 |
Natural Gas Liquids [Member] | Product Revenues Including Sale of Product Purchased from Third Parties [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 326 | 358 | 997 | 882 |
Natural Gas Liquids [Member] | Operating Segments [Member] | Canadian Operations Excluding Intercompany Segment Transactions [Member] | Product Revenues Including Sale of Product Purchased from Third Parties [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 225 | 259 | 659 | 655 |
Natural Gas Liquids [Member] | Operating Segments [Member] | USA Operations Excluding Intercompany Segment Transactions [Member] | Product Revenues Including Sale of Product Purchased from Third Parties [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 99 | 98 | 332 | 221 |
Natural Gas Liquids [Member] | Operating Segments [Member] | China Operations Excluding Intercompany Segment Transactions [Member] | Product Revenues Including Sale of Product Purchased from Third Parties [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 0 | 0 | 0 | 0 |
Natural Gas Liquids [Member] | Operating Segments [Member] | Market Optimization Excluding Intercompany Segment Transactions [Member] | Product Revenues Including Sale of Product Purchased from Third Parties [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 2 | 1 | 6 | 6 |
Natural Gas Liquids [Member] | Corporate & Other [Member] | Product Revenues Including Sale of Product Purchased from Third Parties [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 0 | 0 | 0 | 0 |
Natural Gas [Member] | Product Revenues Including Sale of Product Purchased from Third Parties [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 426 | 500 | 1,479 | 1,465 |
Natural Gas [Member] | Operating Segments [Member] | Canadian Operations Excluding Intercompany Segment Transactions [Member] | Product Revenues Including Sale of Product Purchased from Third Parties [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 150 | 195 | 563 | 580 |
Natural Gas [Member] | Operating Segments [Member] | USA Operations Excluding Intercompany Segment Transactions [Member] | Product Revenues Including Sale of Product Purchased from Third Parties [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 95 | 31 | 276 | 92 |
Natural Gas [Member] | Operating Segments [Member] | China Operations Excluding Intercompany Segment Transactions [Member] | Product Revenues Including Sale of Product Purchased from Third Parties [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 0 | 0 | 0 | 0 |
Natural Gas [Member] | Operating Segments [Member] | Market Optimization Excluding Intercompany Segment Transactions [Member] | Product Revenues Including Sale of Product Purchased from Third Parties [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 181 | 274 | 640 | 793 |
Natural Gas [Member] | Corporate & Other [Member] | Product Revenues Including Sale of Product Purchased from Third Parties [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 0 | 0 | 0 | 0 |
Natural Gas Gathering and Processing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 1 | 5 | 6 | 9 |
Natural Gas Gathering and Processing [Member] | Operating Segments [Member] | Canadian Operations Excluding Intercompany Segment Transactions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 2 | 1 | 4 | 5 |
Natural Gas Gathering and Processing [Member] | Operating Segments [Member] | USA Operations Excluding Intercompany Segment Transactions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | (1) | 4 | 2 | 4 |
Natural Gas Gathering and Processing [Member] | Operating Segments [Member] | China Operations Excluding Intercompany Segment Transactions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 0 | 0 | 0 | 0 |
Natural Gas Gathering and Processing [Member] | Operating Segments [Member] | Market Optimization Excluding Intercompany Segment Transactions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | 0 | 0 | 0 | 0 |
Natural Gas Gathering and Processing [Member] | Corporate & Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Product revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
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 | 980 | $ 662 |
Revenue, Remaining Performance Obligation | $ 0 |
Interest (Details)
Interest (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Interest Expense [Abstract] | ||||
Interest Expense on Debt | $ 93 | $ 67 | $ 268 | $ 200 |
The Bow office building (See Note 2) | 0 | 16 | 0 | 48 |
Finance leases (See Note 11) | 3 | 3 | 10 | 12 |
Other | 3 | 6 | 7 | 5 |
Interest | $ 99 | $ 92 | $ 285 | $ 265 |
Foreign Exchange (Gain) Loss,_3
Foreign Exchange (Gain) Loss, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Schedule Of Foreign Exchange Transactions [Line Items] | ||||
Unrealized foreign exchange (gain) loss | $ 49 | $ (23) | $ (11) | $ 156 |
Foreign Exchange (Gain) Loss, Net | 30 | (23) | (62) | 93 |
Translation Of U.S. Dollar Debt Issued From Canada [Member] | ||||
Schedule Of Foreign Exchange Transactions [Line Items] | ||||
Unrealized foreign exchange (gain) loss | 68 | (74) | (117) | 138 |
Foreign Exchange on Settlements | (10) | 0 | (22) | 1 |
Translation Of U.S. Dollar Risk Management Contracts Issued From Canada [Member] | ||||
Schedule Of Foreign Exchange Transactions [Line Items] | ||||
Unrealized foreign exchange (gain) loss | 5 | (3) | (13) | 7 |
Foreign Exchange on Settlements | (2) | (1) | (1) | (11) |
Translation of Intercompany Notes [Member] | ||||
Schedule Of Foreign Exchange Transactions [Line Items] | ||||
Unrealized foreign exchange (gain) loss | (24) | 54 | 119 | 11 |
Foreign Exchange on Settlements | (8) | (1) | (31) | (48) |
Other Monetary Revaluations [Member] | ||||
Schedule Of Foreign Exchange Transactions [Line Items] | ||||
Foreign Exchange on Settlements | $ 1 | $ 2 | $ 3 | $ (5) |
Income Taxes (Provision For Inc
Income Taxes (Provision For Income Taxes) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Total Current Tax Expense (Recovery) | $ (1) | $ 0 | $ 3 | $ (61) |
Total Deferred Tax Expense (Recovery) | 44 | 6 | 140 | 6 |
Income Tax Expense (Recovery) | $ 43 | $ 6 | $ 143 | $ (55) |
Effective Tax Rate | 22.40% | 13.30% | 37.30% | 343.80% |
Canada [Member] | ||||
Total Current Tax Expense (Recovery) | $ (2) | $ 0 | $ 0 | $ (66) |
Total Deferred Tax Expense (Recovery) | (12) | 19 | 22 | (9) |
United States [Member] | ||||
Total Current Tax Expense (Recovery) | 1 | 0 | 3 | 2 |
Total Deferred Tax Expense (Recovery) | 56 | (3) | 117 | 4 |
Other Countries [Member] | ||||
Total Current Tax Expense (Recovery) | 0 | 0 | 0 | 3 |
Total Deferred Tax Expense (Recovery) | $ 0 | $ (10) | $ 1 | $ 11 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | Jan. 01, 2022 | Jan. 01, 2021 | Jan. 01, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2019 | Jun. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 |
Income Tax Disclosure [Line Items] | |||||||||
Deferred income taxes | $ 44 | $ 6 | $ 140 | $ 6 | |||||
Effective Tax Rates | 22.40% | 13.30% | 37.30% | 343.80% | |||||
Alberta [Member] | |||||||||
Income Tax Disclosure [Line Items] | |||||||||
Statutory Tax Rate | 12.00% | ||||||||
Effect of legislative changes | $ 55 | ||||||||
Alberta [Member] | Scenario Plan [Member] | |||||||||
Income Tax Disclosure [Line Items] | |||||||||
Statutory Tax Rate | 8.00% | 11.00% | |||||||
Provincial tax rate reduction from Job Creation Tax Cut | 1.00% | 1.00% | 1.00% | ||||||
Canada [Member] | |||||||||
Income Tax Disclosure [Line Items] | |||||||||
Deferred income taxes | $ (12) | $ 19 | $ 22 | $ (9) | |||||
Statutory Tax Rate | 26.60% | 27.00% |
Business Combination (Narrative
Business Combination (Narrative) (Details) - Newfield Exploration Company [Member] shares in Millions, $ in Millions | Feb. 13, 2019USD ($)shares | Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Business Acquisition [Line Items] | ||||
Business acquisition completed date | Feb. 13, 2019 | |||
Business Acquisition Stock Exchange Ratio | 2.6719 | |||
Payments to acquire businesses | $ 3,483 | |||
Business acquisition, number of shares issued | shares | 543.4 | |||
Business acquisition, payment in cash | [1] | $ 5 | ||
Business acquisition transaction costs | 33 | |||
Business acquisition assets acquired generated revenues | $ 1,485 | |||
Business acquisition, assets acquired net earnings | $ 69 | |||
Business acquisition related costs | $ 71 | |||
Business acquisition severance payments | $ 134 | |||
Senior Notes [Member] | ||||
Business Acquisition [Line Items] | ||||
Business acquisition, senior notes remain outstanding | $ 2,450 | |||
[1] | The fair value was based on a price of $6.50 per notional unit which was determined using a volume-weighted average of the trading price of Encana common shares on the NYSE on each of the five consecutive trading days ending on the trading day that was three trading days prior to February 13, 2019. |
Business Combination - Schedule
Business Combination - Schedule of Preliminary Purchase Price Allocations (Details) - USD ($) $ in Millions | Feb. 13, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Assets Acquired: | ||||
Goodwill | $ 2,595 | $ 2,553 | ||
Newfield Exploration Company [Member] | ||||
Consideration: | ||||
Fair value of Encana's common shares issued | [1] | $ 3,478 | ||
Business acquisition, payment in cash | [2] | 5 | ||
Total Consideration | 3,483 | |||
Assets Acquired: | ||||
Cash and cash equivalents | 46 | |||
Accounts receivable and accrued revenues | 486 | |||
Other current assets | 50 | |||
Restricted cash | 53 | |||
Other assets | 105 | |||
Goodwill | [3] | 22 | ||
Liabilities Assumed: | ||||
Accounts payable and accrued liabilities | [3] | (795) | ||
Long-term debt | (2,603) | |||
Operating lease liabilities | (76) | |||
Other long-term liabilities | [3] | (61) | ||
Asset retirement obligation | (184) | |||
Deferred income taxes | [3] | (323) | ||
Total Purchase Price | 3,483 | |||
Proved Properties [Member] | Newfield Exploration Company [Member] | ||||
Assets Acquired: | ||||
Property, plant and equipment, net | 5,903 | |||
Unproved Properties [Member] | Newfield Exploration Company [Member] | ||||
Assets Acquired: | ||||
Property, plant and equipment, net | 838 | |||
Other Property, Plant and Equipment [Member] | Newfield Exploration Company [Member] | ||||
Assets Acquired: | ||||
Property, plant and equipment, net | $ 22 | |||
[1] | The fair value was based on the NYSE closing price of the Encana common shares of $6.40 on February 13, 2019. | |||
[2] | The fair value was based on a price of $6.50 per notional unit which was determined using a volume-weighted average of the trading price of Encana common shares on the NYSE on each of the five consecutive trading days ending on the trading day that was three trading days prior to February 13, 2019. | |||
[3] | Since the completion of the business combination on February 13, 2019, additional information related to pre-acquisition liabilities and contingencies was obtained resulting in a measurement period adjustment. Changes in the fair value estimates comprised an increase in other liabilities of $12 million, of which the total liability is presented in accounts payable and accrued liabilities, a decrease in deferred tax liabilities of $3 million and a corresponding increase in goodwill of $9 million. |
Business Combination - Schedu_2
Business Combination - Schedule of Preliminary Purchase Price Allocations (Parenthetical) (Details) - Newfield Exploration Company [Member] $ / shares in Units, $ in Millions | Feb. 13, 2019USD ($)$ / shares |
Business Acquisition [Line Items] | |
Business acquisition price per share | $ / shares | $ 6.40 |
Business acquisition Fair value notional share price | $ / shares | $ 6.50 |
Business acquisition consecutive trading days | 5 days |
Increase in other liabilities | $ 12 |
Decrease in deferred tax liabilities | 3 |
Increase in goodwill | $ 9 |
Business Combination - Schedu_3
Business Combination - Schedule of Unaudited Pro Forma Financial Information (Details) - Newfield Exploration Company [Member] - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Business Acquisition [Line Items] | ||
Revenues | $ 5,440 | $ 5,215 |
Net Earnings (Loss) | $ 376 | $ 369 |
Net Earnings (Loss) per Common Share | ||
Basic & Diluted | $ 0.29 | $ 0.25 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Acquisitions and Divestitures [Line Items] | ||||
Acquisitions | $ 25 | $ 15 | $ 66 | $ 17 |
Divestitures | (171) | (24) | (177) | (89) |
Net Acquisitions and Divestitures | (146) | (9) | (111) | (72) |
Operating Segments [Member] | Canadian Operations [Member] | ||||
Acquisitions and Divestitures [Line Items] | ||||
Acquisitions | 0 | 15 | 0 | 17 |
Divestitures | 0 | 2 | 0 | (55) |
Operating Segments [Member] | USA Operations [Member] | ||||
Acquisitions and Divestitures [Line Items] | ||||
Acquisitions | 25 | 0 | 66 | 0 |
Divestitures | $ (171) | $ (26) | $ (177) | $ (34) |
Acquisitions and Divestitures_3
Acquisitions and Divestitures (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Acquisitions and Divestitures [Line Items] | ||||
Divestitures | $ 171 | $ 24 | $ 177 | $ 89 |
Canadian Operations [Member] | Operating Segments [Member] | ||||
Acquisitions and Divestitures [Line Items] | ||||
Acquisitions | 0 | 17 | ||
Divestitures | 0 | (2) | 0 | 55 |
USA Operations [Member] | Operating Segments [Member] | ||||
Acquisitions and Divestitures [Line Items] | ||||
Acquisitions | 66 | 0 | ||
Divestitures | $ 171 | $ 26 | $ 177 | $ 34 |
Property, Plant And Equipment_3
Property, Plant And Equipment, Net (Schedule Of Property, Plant And Equipment) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Cost | $ 54,929 | $ 45,832 | $ 47,093 |
Less: Accumulated depreciation, depletion and amortization | (39,803) | (37,993) | (38,121) |
Property, plant and equipment, net | 15,126 | $ 7,839 | 8,972 |
Operating Segments [Member] | Canadian Operations [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Cost | 15,060 | 14,260 | |
Less: Accumulated depreciation, depletion and amortization | (13,949) | (13,261) | |
Property, plant and equipment, net | 1,111 | 999 | |
Operating Segments [Member] | USA Operations [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Cost | 38,968 | 30,690 | |
Less: Accumulated depreciation, depletion and amortization | (25,186) | (24,099) | |
Property, plant and equipment, net | 13,782 | 6,591 | |
Operating Segments [Member] | Market Optimization [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, net | 2 | 1 | |
Corporate & Other [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, net | 231 | 1,381 | |
Proved Properties [Member] | Operating Segments [Member] | Canadian Operations [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Cost | 14,817 | 13,996 | |
Less: Accumulated depreciation, depletion and amortization | (13,949) | (13,261) | |
Property, plant and equipment, net | 868 | 735 | |
Proved Properties [Member] | Operating Segments [Member] | USA Operations [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Cost | 35,223 | 27,189 | |
Less: Accumulated depreciation, depletion and amortization | (25,186) | (24,099) | |
Property, plant and equipment, net | 10,037 | 3,090 | |
Unproved Properties [Member] | Operating Segments [Member] | Canadian Operations [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Cost | 223 | 237 | |
Less: Accumulated depreciation, depletion and amortization | 0 | 0 | |
Property, plant and equipment, net | 223 | 237 | |
Unproved Properties [Member] | Operating Segments [Member] | USA Operations [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Cost | 3,720 | 3,493 | |
Less: Accumulated depreciation, depletion and amortization | 0 | 0 | |
Property, plant and equipment, net | 3,720 | 3,493 | |
Other Capitalized Property Plant and Equipment [Member] | Operating Segments [Member] | Canadian Operations [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Cost | 20 | 27 | |
Less: Accumulated depreciation, depletion and amortization | 0 | 0 | |
Property, plant and equipment, net | 20 | 27 | |
Other Capitalized Property Plant and Equipment [Member] | Operating Segments [Member] | USA Operations [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Cost | 25 | 8 | |
Less: Accumulated depreciation, depletion and amortization | 0 | 0 | |
Property, plant and equipment, net | 25 | 8 | |
Other Capitalized Property Plant and Equipment [Member] | Operating Segments [Member] | Market Optimization [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Cost | 8 | 7 | |
Less: Accumulated depreciation, depletion and amortization | (6) | (6) | |
Property, plant and equipment, net | 2 | 1 | |
Other Capitalized Property Plant and Equipment [Member] | Corporate & Other [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Cost | 893 | 2,136 | |
Less: Accumulated depreciation, depletion and amortization | (662) | (755) | |
Property, plant and equipment, net | $ 231 | $ 1,381 |
Property, Plant And Equipment_4
Property, Plant And Equipment, Net (Narrative) (Details) $ in Millions | 9 Months Ended | |||
Sep. 30, 2019USD ($)Lease | Sep. 30, 2018USD ($) | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | |
Property, Plant and Equipment [Line Items] | ||||
Internal Costs Capitalized | $ 171 | $ 159 | ||
Property, Plant and Equipment, Net | 15,126 | $ 7,839 | $ 8,972 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 39,803 | $ 37,993 | 38,121 | |
Number of finance lease arrangements | Lease | 2 | |||
ROU assets | $ 1,045 | |||
Assets Held under Capital Leases [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Net | 39 | 41 | ||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 667 | 650 | ||
Bow Office Building [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Net | $ 1,133 | |||
ROU assets | $ 896 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) | Sep. 30, 2019 |
Maximum [Member] | |
Lessee Lease Description [Line Items] | |
Option to extend lease, term | 10 years |
Leases (Summary of Operating An
Leases (Summary of Operating And Finance Lease Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | ||||||
Operating Lease ROU Assets, in Other Assets | $ 1,045 | $ 1,045 | ||||
Operating Lease Right Of Use Asset Statement Of Financial Position Extensible List | us-gaap:OtherAssetsNoncurrent | us-gaap:OtherAssetsNoncurrent | ||||
Finance Lease ROU Assets, in Other Property Plant and Equipment | $ 39 | $ 39 | ||||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentOther | us-gaap:PropertyPlantAndEquipmentOther | ||||
Operating Lease Liabilities, Current | $ 79 | $ 79 | $ 67 | $ 0 | ||
Operating Lease Liabilities, Long-term | 972 | 972 | $ 948 | 0 | ||
Finance Lease Liabilities, Current, in accounts payable and accrued liabilities | $ 88 | $ 88 | ||||
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent | ||||
Finance Lease Liabilities, Long-term, in other liabilities and provisions | $ 144 | $ 144 | $ 211 | |||
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent | ||||
Weighted Average Discount Rate | ||||||
Operating leases | 5.42% | 5.42% | ||||
Finance leases | 5.97% | 5.97% | ||||
Weighted Average Remaining Lease Term | ||||||
Operating leases | 16 years 4 months 24 days | 16 years 4 months 24 days | ||||
Finance leases | 3 years 4 months 24 days | 3 years 4 months 24 days | ||||
Lease Costs: | ||||||
Operating Lease Costs, Excluding Short-Term Leases | $ 45 | $ 133 | ||||
Finance Lease Costs: | ||||||
Amortization of ROU assets | 1 | 3 | ||||
Interest on lease liabilities | 3 | $ 3 | 10 | $ 12 | ||
Total Finance Lease Costs | 4 | 13 | ||||
Short-Term Lease Costs | 93 | 250 | ||||
Variable Lease Costs | 3 | 10 | ||||
Sublease Income: | ||||||
Operating lease income | 15 | 41 | ||||
Variable lease income | 4 | 13 | ||||
Cash Paid for Amounts Included in the Measurement of Lease Liabilities: | ||||||
Operating cash outflows from operating leases | 57 | 157 | ||||
Investing cash outflows from operating leases | 80 | 220 | ||||
Operating cash outflows from finance leases | 3 | 10 | ||||
Financing cash outflows from finance leases | 22 | 23 | 63 | 68 | ||
Supplemental Non-Cash Information: | ||||||
New ROU operating lease assets and liabilities | $ 1 | $ 0 | $ 11 | $ 0 |
Leases (Schedule of Operating L
Leases (Schedule of Operating Lease Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Operating Lease Expense | ||
Total Operating Lease Expense | $ 59 | $ 164 |
Transportation and Processing [Member] | ||
Operating Lease Expense | ||
Total Operating Lease Expense | 1 | 2 |
Operating [Member] | ||
Operating Lease Expense | ||
Total Operating Lease Expense | 28 | 76 |
Administrative [Member] | ||
Operating Lease Expense | ||
Total Operating Lease Expense | $ 30 | $ 86 |
Leases (Schedule of Operating_2
Leases (Schedule of Operating Lease Expense) (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Operating Lease Expense [Line Items] | ||
Total Operating Lease Expense | $ 59 | $ 164 |
Administrative [Member] | ||
Operating Lease Expense [Line Items] | ||
Total Operating Lease Expense | 30 | 86 |
Administrative [Member] | Bow Office Building [Member] | ||
Operating Lease Expense [Line Items] | ||
Total Operating Lease Expense | $ 23 | $ 69 |
Leases (Schedule of Future Leas
Leases (Schedule of Future Lease Payments and Lease Liabilities Related to Operating and Finance Leases) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Operating Leases | |
Expected Future Operating Lease Payments 2019 | $ 37 |
Expected Future Operating Lease Payments 2020 | 128 |
Expected Future Operating Lease Payments 2021 | 112 |
Expected Future Operating Lease Payments 2022 | 97 |
Expected Future Operating Lease Payments 2023 | 85 |
Expected Future Operating Lease Payments thereafter | 1,165 |
Expected Future Operating Lease Payments,Total | 1,624 |
Less: Discounting | 573 |
Present Value of Future Operating Lease Payments Total | 1,051 |
Sublease Income (undiscounted) 2019 | (10) |
Sublease Income (undiscounted) 2020 | (41) |
Sublease Income (undiscounted) 2021 | (42) |
Sublease Income (undiscounted) 2022 | (37) |
Sublease Income (undiscounted) 2023 | (37) |
Sublease Income (undiscounted) Thereafter | (566) |
Sublease Income (undiscounted) Total | (733) |
Finance Leases | |
Expected Future Finance Lease Payments, 2019 | 25 |
Expected Future Finance Lease Payments, 2020 | 99 |
Expected Future Finance Lease Payments, 2021 | 87 |
Expected Future Finance Lease Payments, 2022 | 8 |
Expected Future Finance Lease Payments, 2023 | 8 |
Expected Future Finance Lease Payments, Thereafter | 30 |
Expected Future Finance Lease Payments, Total | 257 |
Less: Discounting | 25 |
Present Value of Future Finance Lease Payments Total | 232 |
Sublease Income (undiscounted) 2019 | (2) |
Sublease Income (undiscounted) 2020 | (8) |
Sublease Income (undiscounted) 2021 | (8) |
Sublease Income (undiscounted) 2022 | (8) |
Sublease Income (undiscounted) 2023 | (7) |
Sublease Income (undiscounted) Thereafter | (24) |
Sublease Income (undiscounted) Total | $ (57) |
Long-Term Debt (Schedule Of Lon
Long-Term Debt (Schedule Of Long-Term Debt) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | |
Debt Instrument [Line Items] | |||
Revolving credit and term loan borrowings | $ 740 | $ 0 | |
Total Principal | 6,901 | 4,211 | |
Increase in Value of Debt Acquired | 157 | 22 | |
Unamortized Debt Discounts and Issuance Costs | (34) | (35) | |
Total Long-Term Debt | 7,024 | 4,198 | |
Current Portion | 0 | 500 | $ 500 |
Long-Term Debt | 7,024 | 3,698 | |
6.50% Unsecured Notes [Member] | Unsecured Notes, Due May 15, 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured Debt | $ 0 | $ 500 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | 6.50% | |
Debt Instrument, Maturity Date | May 15, 2019 | May 15, 2019 | |
6.50% Unsecured Notes [Member] | Unsecured Notes, Due August 15, 2034 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured Debt | $ 750 | $ 750 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | 6.50% | |
Debt Instrument, Maturity Date | Aug. 15, 2034 | Aug. 15, 2034 | |
6.50% Unsecured Notes [Member] | Unsecured Notes, Due February 1, 2038 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured Debt | $ 505 | $ 505 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | 6.50% | |
Debt Instrument, Maturity Date | Feb. 1, 2038 | Feb. 1, 2038 | |
3.90% Unsecured Notes [Member] | Unsecured Notes, Due November 15, 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured Debt | $ 600 | $ 600 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.90% | 3.90% | |
Debt Instrument, Maturity Date | Nov. 15, 2021 | Nov. 15, 2021 | |
5.75% Unsecured Notes [Member] | Unsecured Notes, Due January 30, 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured Debt | $ 750 | $ 0 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | ||
Debt Instrument, Maturity Date | Jan. 30, 2022 | ||
5.625% Unsecured Notes [Member] | Unsecured Notes, Due July 1, 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured Debt | $ 1,000 | 0 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.625% | ||
Debt Instrument, Maturity Date | Jul. 1, 2024 | ||
5.375% Unsecured Notes [Member] | Unsecured Notes, Due Jan 1, 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured Debt | $ 700 | 0 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.375% | ||
Debt Instrument, Maturity Date | Jan. 1, 2026 | ||
8.125% Unsecured Notes [Member] | Unsecured Notes, Due September 15, 2030 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured Debt | $ 300 | $ 300 | |
Debt Instrument, Interest Rate, Stated Percentage | 8.125% | 8.125% | |
Debt Instrument, Maturity Date | Sep. 15, 2030 | Sep. 15, 2030 | |
7.20% Unsecured Notes [Member] | Unsecured Notes, Due November 1, 2031 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured Debt | $ 350 | $ 350 | |
Debt Instrument, Interest Rate, Stated Percentage | 7.20% | 7.20% | |
Debt Instrument, Maturity Date | Nov. 1, 2031 | Nov. 1, 2031 | |
7.375% Unsecured Notes [Member] | Unsecured Notes, Due November 1, 2031 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured Debt | $ 500 | $ 500 | |
Debt Instrument, Interest Rate, Stated Percentage | 7.375% | 7.375% | |
Debt Instrument, Maturity Date | Nov. 1, 2031 | Nov. 1, 2031 | |
6.625% Unsecured Notes [Member] | Unsecured Notes, Due August 15, 2037 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured Debt | $ 462 | $ 462 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.625% | 6.625% | |
Debt Instrument, Maturity Date | Aug. 15, 2037 | Aug. 15, 2037 | |
5.15% Unsecured Notes [Member] | Unsecured Notes, Due November 15, 2041 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured Debt | $ 244 | $ 244 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.15% | 5.15% | |
Debt Instrument, Maturity Date | Nov. 15, 2041 | Nov. 15, 2041 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Long-term Debt Carrying Value | $ 7,024 | $ 4,198 |
Long-term Debt, Fair Value | 7,825 | 4,511 |
Outstanding commercial paper | $ 740 | $ 0 |
Commercial Paper [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 2.63% | |
Expiration year | 2022 |
Other Liabilities And Provisi_3
Other Liabilities And Provisions (Schedule Of Other Liabilities And Provisions) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Other Liabilities And Provisions [Line Items] | |||
The Bow Office Building | $ 0 | $ 1,224 | |
Obligation under Finance Lease | 144 | 211 | |
Pensions and Other Post-Employment Benefits | 170 | 105 | |
Long-Term Incentives | 29 | 34 | |
Other Derivative Contracts, Liabilities | 10 | 14 | |
Other | 25 | 18 | |
Other Liabilities and Provisions | 548 | $ 545 | 1,769 |
Other Liabilities and Provisions [Member] | |||
Other Liabilities And Provisions [Line Items] | |||
Unrecognized Tax Benefits | 172 | 167 | |
Other Derivative Contracts, Liabilities | $ 8 | $ 10 |
Asset Retirement Obligation (Sc
Asset Retirement Obligation (Schedule of Change In Asset Retirement Obligation) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Asset Retirement Obligation Disclosure [Abstract] | |||||
Asset Retirement Obligation, Beginning of Year | $ 455 | $ 514 | $ 514 | ||
Liabilities Incurred | $ 2 | $ 3 | 13 | 13 | 17 |
Liabilities Acquired (See Note 8) | 184 | 0 | |||
Liabilities Settled and Divested | (100) | (56) | |||
Change in Estimated Future Cash Outflows | 0 | (20) | |||
Accretion of asset retirement obligation | 9 | $ 8 | 28 | $ 24 | 32 |
Foreign Currency Translation | 10 | (32) | |||
Asset Retirement Obligation, End of Period | $ 590 | $ 590 | $ 455 |
Asset Retirement Obligation (_2
Asset Retirement Obligation (Schedule Of Asset Retirement Obligation) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Asset Retirement Obligation Disclosure [Abstract] | |||
Current Portion | $ 176 | $ 90 | |
Long-Term Portion | 414 | 365 | |
Asset Retirement Obligation, Total | $ 590 | $ 455 | $ 514 |
Share Capital (Narrative) (Deta
Share Capital (Narrative) (Details) $ / shares in Units, $ in Millions | Oct. 30, 2019$ / shares | Aug. 29, 2019USD ($)$ / sharesshares | Jun. 10, 2019shares | Feb. 27, 2019shares | Feb. 13, 2019USD ($) | Sep. 30, 2019USD ($)$ / sharesshares | Sep. 30, 2018USD ($)$ / shares | Sep. 30, 2019USD ($)$ / sharesshares | Sep. 30, 2018USD ($)$ / sharesshares | Dec. 31, 2018USD ($)shares |
Class Of Stock [Line Items] | ||||||||||
Percentage of issued and outstanding shares equal to not more than authorized shares | 20.00% | |||||||||
Preferred shares outstanding | shares | 0 | 0 | ||||||||
Common Shares Purchased, Shares | shares | 196,700,000 | 20,700,000 | ||||||||
Common Shares Purchased, value | $ 1,073 | $ 102 | ||||||||
Payments for Repurchase of Common Stock | $ 213 | $ 50 | $ 1,250 | $ 250 | ||||||
Common Shares Issued under Dividend Reinvestment Plan, Shares | shares | 0 | 69,329 | ||||||||
Common Shares Issued Under Dividend Reinvestment Plan | 0 | 0 | $ 0 | 0 | $ 0.6 | |||||
Dividends on Common Shares | $ 24 | $ 14 | $ 77 | $ 43 | ||||||
Common Stock, Dividends, Per Share, Paid | $ / shares | $ 0.01875 | $ 0.015 | $ 0.05625 | $ 0.045 | ||||||
Dividends, Common Shares Issued In Lieu of Cash, Value | $ 0.1 | $ 0.5 | ||||||||
Common Stock, Dividends, Per Share, Declared | $ / shares | $ 0.01875 | $ 0.015 | $ 0.05625 | $ 0.045 | ||||||
Subsequent Event [Member] | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Dividends Payable, Date Declared | Oct. 30, 2019 | |||||||||
Common Stock, Dividends, Per Share, Declared | $ / shares | $ 0.01875 | |||||||||
Dividends Payable, Date to be Paid | Dec. 31, 2019 | |||||||||
Dividends Payable, Date of Record | Dec. 13, 2019 | |||||||||
Share Capital [Member] | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Common Shares Issued Under Dividend Reinvestment Plan | $ 0 | $ 0 | ||||||||
Dividends on Common Shares | $ 0 | $ 0 | ||||||||
Retained Earnings (Accumulated Deficit) [Member] | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Dividends on Common Shares | 24 | 14 | 77 | $ 43 | ||||||
Substantial Issuer Bid [Member] | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | shares | 213,000,000 | |||||||||
Stock Repurchase Program Expiration Date | Aug. 29, 2019 | |||||||||
Common Shares Purchased, Shares | shares | 47,300,000 | |||||||||
Common stock purchase price | $ / shares | $ 4.50 | |||||||||
Common Shares Purchased, value | $ 213 | 213 | 213 | |||||||
Substantial Issuer Bid [Member] | Share Capital [Member] | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Common Shares Purchased, value | 257 | 257 | 257 | |||||||
Substantial Issuer Bid [Member] | Paid In Surplus [Member] | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Common Shares Purchased, value | $ (44) | $ (44) | $ (44) | |||||||
Normal Course Issuer Bid [Member] | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | shares | 149,400,000 | |||||||||
Stock Repurchase Program Expiration Date | Mar. 3, 2020 | |||||||||
Common Shares Purchased, Shares | shares | 149,400,000 | 20,700,000 | 20,700,000 | |||||||
Common Shares Purchased, value | 50 | $ 1,037 | $ 250 | |||||||
Payments for Repurchase of Common Stock | 1,037 | 250 | $ 250 | |||||||
Normal Course Issuer Bid [Member] | Share Capital [Member] | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Common Shares Purchased, value | 19 | 816 | 102 | 102 | ||||||
Normal Course Issuer Bid [Member] | Retained Earnings (Accumulated Deficit) [Member] | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Common Shares Purchased, value | $ 31 | $ 221 | $ 148 | $ 148 | ||||||
Newfield Exploration Company [Member] | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Stock Issued During Period, Value, Acquisitions | $ 543.4 | |||||||||
Business Acquisition Stock Exchange Ratio | 2.6719 |
Share Capital (Schedule of Comm
Share Capital (Schedule of Common Stock Issued and Outstanding) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Class Of Stock Disclosures [Abstract] | |||||
Common Shares Outstanding, Beginning of Year, Shares | 952,500,000 | 973,100,000 | 973,100,000 | ||
Common Shares Purchased, Shares | (196,700,000) | (20,700,000) | |||
Stock Issued During Period, Shares, New Issues | 543,400,000 | 0 | |||
Common Shares Issued under Dividend Reinvestment Plan, Shares | 0 | 69,329 | |||
Common Shares Outstanding, End of Period, Shares | 1,299,200,000 | 1,299,200,000 | 952,500,000 | ||
Common Shares Outstanding, Beginning of Year | $ 4,656 | $ 4,757 | $ 4,757 | ||
Common Shares Purchased, Value | (1,073) | (102) | |||
Stock Issued During Period, Value, New Issues | 3,478 | 0 | |||
Common Shares Issued Under Dividend Reinvestment Plan | $ 0 | $ 0 | 0 | $ 0 | 0.6 |
Common Shares Outstanding, End of Period | $ 7,061 | $ 7,061 | $ 4,656 |
Share Capital (Earnings Per Com
Share Capital (Earnings Per Common Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Class Of Stock Disclosures [Abstract] | ||||
Net Earnings (Loss) | $ 149 | $ 39 | $ 240 | $ 39 |
Weighted average common shares outstanding - Basic | 1,322.8 | 955.1 | 1,308.4 | 962.2 |
Effect of dilutive securities | 0 | 0 | 0 | 0 |
Weighted Average Common Shares Outstanding - Diluted | 1,322.8 | 955.1 | 1,308.4 | 962.2 |
Net Earnings (Loss) per Common Share Basic & Diluted | $ 0.11 | $ 0.04 | $ 0.18 | $ 0.04 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |||||
Balance, Beginning of Period | $ 1,014 | $ 1,028 | $ 976 | $ 1,029 | |
Change in Foreign Currency Translation Adjustment | (6) | 22 | 32 | 21 | |
Balance, End of Period | 1,008 | 1,050 | 1,008 | 1,050 | |
Balance, Beginning of Period | (2) | 12 | 22 | 13 | |
Plan Amendment | 0 | 0 | (29) | 0 | |
Income Taxes | 0 | 0 | 6 | 0 | |
Reclassification of Net Actuarial (Gains) and Losses to Net Earnings | 0 | 0 | (1) | (1) | |
Income Taxes | 0 | 0 | 0 | 0 | |
Balance, End of Period | (2) | 12 | (2) | 12 | |
Total Accumulated Other Comprehensive Income | $ 1,006 | $ 1,062 | $ 1,006 | $ 1,062 | $ 998 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) $ in Millions | 9 Months Ended | ||
Sep. 30, 2019USD ($)MMcf | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | |
Variable Interest Entity [Line Items] | |||
Accounts Payable and Accrued Liabilities, Current | $ 2,191 | $ 1,478 | $ 1,490 |
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 | $ 2,359 | ||
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] | Natural gas gathering and compression [Member] | |||
Variable Interest Entity [Line Items] | |||
Contracted Capacity Volumes | MMcf | 1,206 | ||
Veresen Midstream Limited Partnership [Member] | Natural gas processing [Member] | |||
Variable Interest Entity [Line Items] | |||
Contracted Capacity Volumes | MMcf | 939 | ||
Veresen Midstream Limited Partnership [Member] | Minimum [Member] | |||
Variable Interest Entity [Line Items] | |||
Length of Remaining Terms, In Years | 12 years | ||
Veresen Midstream Limited Partnership [Member] | Maximum [Member] | |||
Variable Interest Entity [Line Items] | |||
Length of Remaining Terms, In Years | 26 years | ||
Length of Renewal Term, in Years | 10 years |
Restructuring Charges (Narrativ
Restructuring Charges (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Feb. 28, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Charges [Abstract] | |||||||
Restructuring Charges | $ 4 | $ 0 | $ 134 | $ 0 | $ 0 | ||
Restructuring and Related Activities, Initiation Date | Feb. 1, 2019 | ||||||
Restructuring Reserve | $ 4 | $ 4 | $ 0 | $ 0 |
Restructuring Charges (Restruct
Restructuring Charges (Restructuring Costs Expensed) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Restructuring Charges [Abstract] | |||||
Severance and Benefits | $ 4 | $ 0 | $ 132 | $ 0 | |
Outplacement, Moving and Other Expenses | 0 | 0 | 2 | 0 | |
Restructuring Expenses | $ 4 | $ 0 | $ 134 | $ 0 | $ 0 |
Restructuring Charges (Schedule
Restructuring Charges (Schedule of Change in Restructuring Accrual) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Restructuring Charges [Abstract] | |||||
Outstanding Restructuring Accrual, Beginning of Year | $ 0 | $ 0 | $ 0 | ||
Restructuring Expenses Incurred | $ 4 | $ 0 | 134 | $ 0 | 0 |
Restructuring Costs Paid | (130) | 0 | |||
Outstanding Restructuring Accrual, End of Period | $ 4 | $ 4 | $ 0 |
Compensation Plans (Schedule of
Compensation Plans (Schedule of Weighted Average Assumptions Used to Fair Value Share Units) (Details) | 9 Months Ended | |||
Sep. 30, 2019$ / shares | Sep. 30, 2018$ / shares | Sep. 30, 2019$ / shares | Sep. 30, 2018$ / shares | |
United States Of America Dollars [Member] | ||||
Fair Value Assumptions, Risk Free Interest Rate | 1.58% | 2.18% | ||
Fair Value Assumption Dividend Yield | 1.63% | 0.46% | ||
Fair Value Assumptions, Expected Volatility Rate | 44.14% | 55.44% | ||
Fair Value Assumptions, Expected Term | 2 years 10 months 24 days | 1 year 7 months 6 days | ||
Market Share Price | $ 4.60 | $ 13.11 | ||
Canadian Dollar [Member] | ||||
Fair Value Assumptions, Risk Free Interest Rate | 1.58% | 2.18% | ||
Fair Value Assumption Dividend Yield | 1.64% | 0.46% | ||
Fair Value Assumptions, Expected Volatility Rate | 42.77% | 51.90% | ||
Fair Value Assumptions, Expected Term | 2 years 7 months 6 days | 2 years | ||
Market Share Price | $ 6.07 | $ 16.93 |
Compensation Plans (Amounts Rec
Compensation Plans (Amounts Recognized For Share-Based Payment Transactions) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total Compensation Costs of Transactions Classified as Cash-Settled | $ 2 | $ 36 | $ 46 | $ 118 |
Less: Total Share-Based Compensation Costs Capitalized | (1) | (11) | (16) | (33) |
Total Share-Based Compensation Expense | 1 | 25 | 30 | 85 |
Operating Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total Share-Based Compensation Expense | 0 | 8 | 12 | 24 |
Administrative Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total Share-Based Compensation Expense | $ 1 | $ 17 | $ 18 | $ 61 |
Compensation Plans (Narrative)
Compensation Plans (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Liability For Cash-Settled Share-Based Payment Transactions | $ 65 | $ 165 |
Liability for share-based payment recognized in accounts payable and accrued liabilities | 36 | 131 |
Liability for share-based payment recognized in other liabilities and provisions | $ 29 | $ 34 |
Compensation Plans (Liability F
Compensation Plans (Liability For Share-Based Payment Transactions) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Liability for Unvested Cash-Settled Share-Based Payment Transactions | $ 53 | $ 148 |
Liability for Vested Cash-Settled Share-Based Payment Transactions | 12 | 17 |
Liability for Cash-Settled Share-Based Payment Transactions | $ 65 | $ 165 |
Compensation Plans (Schedule _2
Compensation Plans (Schedule of Share-based Compensation, Activity) (Details) shares in Thousands | 9 Months Ended |
Sep. 30, 2019shares | |
Tandem Stock Appreciation Rights (TSARs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,244 |
Stock Appreciation Rights (SARs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,718 |
Performance Share Units (PSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 7,833 |
Deferred Share Units (DSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 111 |
Restricted Share Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 11,004 |
Pension and Other Post-Employ_3
Pension and Other Post-Employment Benefits (Total Benefit Plan Expense Recognized) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Net Defined Periodic Benefit Cost | $ 14 | $ 6 |
Defined Contribution Plan Expense | 18 | 17 |
Total Benefit Plans Expense | 32 | 23 |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net Defined Periodic Benefit Cost | 1 | 1 |
Defined Contribution Plan Expense | 18 | 17 |
Total Benefit Plans Expense | 19 | 18 |
OPEB [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net Defined Periodic Benefit Cost | 13 | 5 |
Defined Contribution Plan Expense | 0 | 0 |
Total Benefit Plans Expense | $ 13 | $ 5 |
Pension and Other Post-Employ_4
Pension and Other Post-Employment Benefits (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Pension and Other Postretirement Benefit Expense | $ 32 | $ 23 |
Operating Expense [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension and Other Postretirement Benefit Expense | 20 | 17 |
Administrative Expense [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension and Other Postretirement Benefit Expense | 6 | 6 |
Other Nonoperating Income (Expense) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension and Other Postretirement Benefit Expense | $ 6 | $ 0 |
Pension and Other Post-Employ_5
Pension and Other Post-Employment Benefits (Defined Periodic Pension And OPEB Expense) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Service Cost | $ 8 | $ 6 |
Interest Cost | 8 | 7 |
Expected Return on Plan Assets | (5) | (6) |
Amortization of net actuarial (gains) and losses | (1) | (1) |
Curtailment | 4 | 0 |
Total Net Defined Periodic Benefit Cost | 14 | 6 |
Defined Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service Cost | 1 | 1 |
Interest Cost | 5 | 5 |
Expected Return on Plan Assets | (5) | (6) |
Amortization of net actuarial (gains) and losses | 0 | 1 |
Curtailment | 0 | 0 |
Total Net Defined Periodic Benefit Cost | 1 | 1 |
OPEB [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service Cost | 7 | 5 |
Interest Cost | 3 | 2 |
Expected Return on Plan Assets | 0 | 0 |
Amortization of net actuarial (gains) and losses | (1) | (2) |
Curtailment | 4 | 0 |
Total Net Defined Periodic Benefit Cost | $ 13 | $ 5 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule Of Fair Value, Assets And Liabilities Measured On Recurring Basis) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Risk Management Assets, Net, Current | $ 284 | $ 554 | |
Risk Management Assets, Net, Long-term | 47 | 161 | |
Risk Management Liabilities, Net, Current | 10 | $ 25 | 25 |
Risk Management Liabilities, Net, Long-term | 14 | 22 | |
Guarantor Obligations, Current Carrying Value | 10 | 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 | 2 | 4 | |
Other Liabilities and Provisions [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Guarantor Obligations, Current Carrying Value | 8 | 10 | |
Commodity Derivatives [Member] | Other Current Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Risk Management Assets, Gross assets | 348 | 631 | |
Risk Management Assets, Gross Liabilities | (68) | (77) | |
Risk Management Assets, Net, Current | 280 | 554 | |
Commodity Derivatives [Member] | Other Noncurrent Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Risk Management Assets, Gross assets | 81 | 177 | |
Risk Management Assets, Gross Liabilities | (35) | (16) | |
Risk Management Assets, Net, Long-term | 46 | 161 | |
Commodity Derivatives [Member] | Other Current Liabilities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Risk Management Liabilities, Gross liabilities | 78 | 81 | |
Risk Management Liabilities, Gross Assets | (68) | (77) | |
Risk Management Liabilities, Net, Current | 10 | 4 | |
Commodity Derivatives [Member] | Other Liabilities and Provisions [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Risk Management Liabilities, Gross liabilities | 49 | 38 | |
Risk Management Liabilities, Gross Assets | (35) | (16) | |
Risk Management Liabilities, Net, Long-term | 14 | 22 | |
Foreign Currency Derivatives [Member] | Other Current Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Risk Management Assets, Gross assets | 4 | ||
Risk Management Assets, Gross Liabilities | 0 | ||
Risk Management Assets, Net, Current | 4 | ||
Foreign Currency Derivatives [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, Gross Liabilities | 0 | ||
Risk Management Assets, Net, Long-term | 1 | ||
Foreign Currency Derivatives [Member] | Other Current Liabilities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Risk Management Liabilities, Gross liabilities | 21 | ||
Risk Management Liabilities, Gross Assets | 0 | ||
Risk Management Liabilities, Net, Current | 21 | ||
Level 1 [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 | 0 | 0 | |
Level 1 [Member] | Other Liabilities and Provisions [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Guarantor Obligations, Current Carrying Value | 0 | 0 | |
Level 1 [Member] | Commodity Derivatives [Member] | Other Current Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Risk Management Assets, Gross assets | 0 | 0 | |
Level 1 [Member] | Commodity Derivatives [Member] | Other Noncurrent Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Risk Management Assets, Gross assets | 0 | 0 | |
Level 1 [Member] | Commodity Derivatives [Member] | Other Current Liabilities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Risk Management Liabilities, Gross liabilities | 0 | 0 | |
Level 1 [Member] | Commodity Derivatives [Member] | Other Liabilities and Provisions [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Risk Management Liabilities, Gross liabilities | 0 | 0 | |
Level 1 [Member] | Foreign Currency Derivatives [Member] | Other Current Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Risk Management Assets, Gross assets | 0 | ||
Level 1 [Member] | Foreign Currency Derivatives [Member] | Other Noncurrent Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Risk Management Assets, Gross assets | 0 | ||
Level 1 [Member] | Foreign Currency Derivatives [Member] | Other Current Liabilities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Risk Management Liabilities, Gross liabilities | 0 | ||
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 | 2 | 4 | |
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 | 8 | 10 | |
Level 2 [Member] | Commodity Derivatives [Member] | Other Current Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Risk Management Assets, Gross assets | 256 | 492 | |
Level 2 [Member] | Commodity Derivatives [Member] | Other Noncurrent Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Risk Management Assets, Gross assets | 59 | 177 | |
Level 2 [Member] | Commodity Derivatives [Member] | Other Current Liabilities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Risk Management Liabilities, Gross liabilities | 78 | 81 | |
Level 2 [Member] | Commodity Derivatives [Member] | Other Liabilities and Provisions [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Risk Management Liabilities, Gross liabilities | 49 | 38 | |
Level 2 [Member] | Foreign Currency Derivatives [Member] | Other Current Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Risk Management Assets, Gross assets | 4 | ||
Level 2 [Member] | Foreign Currency Derivatives [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 Currency Derivatives [Member] | Other Current Liabilities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Risk Management Liabilities, Gross liabilities | 21 | ||
Level 3 [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 | 0 | 0 | |
Level 3 [Member] | Other Liabilities and Provisions [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Guarantor Obligations, Current Carrying Value | 0 | 0 | |
Level 3 [Member] | Commodity Derivatives [Member] | Other Current Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Risk Management Assets, Gross assets | 92 | 139 | |
Level 3 [Member] | Commodity Derivatives [Member] | Other Noncurrent Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Risk Management Assets, Gross assets | 22 | 0 | |
Level 3 [Member] | Commodity Derivatives [Member] | Other Current Liabilities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Risk Management Liabilities, Gross liabilities | 0 | 0 | |
Level 3 [Member] | Commodity Derivatives [Member] | Other Liabilities and Provisions [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Risk Management Liabilities, Gross liabilities | 0 | 0 | |
Level 3 [Member] | Foreign Currency Derivatives [Member] | Other Current Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Risk Management Assets, Gross assets | 0 | ||
Level 3 [Member] | Foreign Currency Derivatives [Member] | Other Noncurrent Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Risk Management Assets, Gross assets | $ 0 | ||
Level 3 [Member] | Foreign Currency Derivatives [Member] | Other Current Liabilities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Risk Management Liabilities, Gross liabilities | $ 0 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary Of Changes In Level 3 Fair Value Measurements) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | ||
Balance, Beginning Balance | $ 139 | $ (51) |
Total Gains (Losses) | 24 | (177) |
Purchases, sales and issuances | 0 | 0 |
Settlements | (49) | 80 |
Transfers Out of Level 3 | 0 | 0 |
Balance, Ending Balance | 114 | (148) |
Change in Unrealized Gains (Losses) Related to Assets and Liabilities Held at End of Period | $ 83 | $ (136) |
Fair Value Measurements (Quanti
Fair Value Measurements (Quantitative Information About Unobservable Inputs Used In Level 3) (Details) - WTI Options [Member] - Option Model | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Minimum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value Inputs Commodity Price Volatility | 22.00% | 29.00% |
Maximum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value Inputs Commodity Price Volatility | 61.00% | 73.00% |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
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 | $ 9 | $ 6 |
Financial Instruments and Ris_3
Financial Instruments and Risk Management (Narrative) (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019USD ($)contractCounterparty$ / $ | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)contractCounterparty$ / $ | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($)Counterparty | |
Derivative [Line Items] | |||||
Realized Gain (Loss) on Derivatives | $ 124,000,000 | $ (76,000,000) | $ 302,000,000 | $ (84,000,000) | |
Unrealized Gain (Loss) on Derivatives | $ (52,000,000) | (155,000,000) | $ (359,000,000) | (439,000,000) | |
Number of Credit Risk Derivatives | contract | 0 | 0 | |||
Collateral balances | $ 0 | $ 0 | |||
Percent of Accounts Receivable and Financial Derivative credit exposures with investment grade counterparties | 96.00% | 97.00% | |||
Number Of Counterparties With More Than Ten Percent Of The Fair Value Of The Outstanding Risk Management Contracts | Counterparty | 3 | 3 | 4 | ||
Guarantor Obligations, Term | two to five years | ||||
Guarantor Obligations, Current Carrying Value | $ 10,000,000 | $ 10,000,000 | $ 14,000,000 | ||
Maximum [Member] | |||||
Derivative [Line Items] | |||||
Guarantor Obligations, Maximum Exposure, Undiscounted | 154,000,000 | $ 154,000,000 | |||
Counterparty One [Member] | |||||
Derivative [Line Items] | |||||
Percent Of The Fair Value Of Outstanding In The Money Net Risk Management Contracts | 20.00% | 30.00% | |||
Counterparty Two [Member] | |||||
Derivative [Line Items] | |||||
Percent Of The Fair Value Of Outstanding In The Money Net Risk Management Contracts | 13.00% | 13.00% | |||
Counterparty Three [Member] | |||||
Derivative [Line Items] | |||||
Percent Of The Fair Value Of Outstanding In The Money Net Risk Management Contracts | 13.00% | 12.00% | |||
Counterparty Four [Member] | |||||
Derivative [Line Items] | |||||
Percent Of The Fair Value Of Outstanding In The Money Net Risk Management Contracts | 10.00% | ||||
Revenue [Member] | |||||
Derivative [Line Items] | |||||
Realized Gain (Loss) on Derivatives | 122,000,000 | (77,000,000) | $ 301,000,000 | (95,000,000) | |
Unrealized Gain (Loss) on Derivatives | (41,000,000) | (164,000,000) | (385,000,000) | (422,000,000) | |
Currency Swaps, Maturing Remainder Of Fiscal Year [Member] | |||||
Derivative [Line Items] | |||||
Foreign currency swap, contract amount outstanding | $ 250,000,000 | $ 250,000,000 | |||
Derivative, Average Forward Exchange Rate | $ / $ | 0.7516 | 0.7516 | |||
Currency Swaps, Maturing In Two Years [Member] | |||||
Derivative [Line Items] | |||||
Foreign currency swap, contract amount outstanding | $ 425,000,000 | $ 425,000,000 | |||
Derivative, Average Forward Exchange Rate | $ / $ | 0.7483 | 0.7483 | |||
Other Derivative Contracts [Member] | Revenue [Member] | |||||
Derivative [Line Items] | |||||
Realized Gain (Loss) on Derivatives | $ 2,000,000 | 2,000,000 | $ 5,000,000 | 5,000,000 | |
Unrealized Gain (Loss) on Derivatives | $ 0 | $ 0 | $ (1,000,000) | $ (1,000,000) |
Financial Instruments and Ris_4
Financial Instruments and Risk Management (Risk Management Positions) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($)$ / bbl$ / McfMMcfMBbls | |
Derivative [Line Items] | |
Net Premiums Received on Unexpired Options | $ (7) |
Other Derivative Contracts, Net | (10) |
Foreign Currency Swaps, at Fair value, Net | 5 |
Total Fair Value Position and Net Premiums Received | $ 297 |
Oil [Member] | WTI Fixed Price, Maturing Remainder of Fiscal Year [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volumes/day | MBbls | 45 |
Term | Dec. 31, 2019 |
Average Price, Fixed Price Contracts | $ / bbl | 60.24 |
Price Risk Derivatives, at Fair Value, Net | $ 26 |
Oil [Member] | WTI Fixed Price, Maturing In Two Years [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volumes/day | MBbls | 24 |
Term | Dec. 31, 2020 |
Average Price, Fixed Price Contracts | $ / bbl | 60.05 |
Price Risk Derivatives, at Fair Value, Net | $ 74 |
Oil [Member] | WTI Three-Way Options, Maturing Remainder Of Fiscal Year [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volumes/day | MBbls | 87.5 |
Term | Dec. 31, 2019 |
Price Risk Derivatives, at Fair Value, Net | $ 27 |
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 | 45.86 |
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 | 67.72 |
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 | 56.47 |
Oil [Member] | WTI Fixed Price Swaptions [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volumes/day | MBbls | 4 |
Term | Dec. 31, 2021 |
Average Price, Fixed Price Contracts | $ / bbl | 58 |
Price Risk Derivatives, at Fair Value, Net | $ (4) |
Oil [Member] | WTI Three-Way Options, Maturing In Two Years [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volumes/day | MBbls | 80 |
Term | Dec. 31, 2020 |
Price Risk Derivatives, at Fair Value, Net | $ 54 |
Oil [Member] | WTI Three-Way Options, Maturing In Two Years [Member] | Sold [Member] | Put Option [Member] | |
Derivative [Line Items] | |
Average Price, Options/Collars | $ / bbl | 43.44 |
Oil [Member] | WTI Three-Way Options, Maturing In Two Years [Member] | Sold [Member] | Call Option [Member] | |
Derivative [Line Items] | |
Average Price, Options/Collars | $ / bbl | 61.68 |
Oil [Member] | WTI Three-Way Options, Maturing In Two Years [Member] | Bought [Member] | Put Option [Member] | |
Derivative [Line Items] | |
Average Price, Options/Collars | $ / bbl | 53.44 |
Oil [Member] | Basis Contracts, Maturing Remainder of Year [Member] | |
Derivative [Line Items] | |
Term | Dec. 31, 2019 |
Price Risk Derivatives, at Fair Value, Net | $ (19) |
Oil [Member] | West Texas Intermediate Costless Collars Maturing Remainder of Fiscal Year [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volumes/day | MBbls | 43 |
Term | Dec. 31, 2019 |
Price Risk Derivatives, at Fair Value, Net | $ 13 |
Oil [Member] | West Texas Intermediate Costless Collars Maturing Remainder of Fiscal Year [Member] | Sold [Member] | Call Option [Member] | |
Derivative [Line Items] | |
Average Price, Options/Collars | $ / bbl | 65.57 |
Oil [Member] | West Texas Intermediate Costless Collars Maturing Remainder of Fiscal Year [Member] | Bought [Member] | Put Option [Member] | |
Derivative [Line Items] | |
Average Price, Options/Collars | $ / bbl | 56.28 |
Oil [Member] | West Texas Intermediate Costless Collars, Maturing in Two Years [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volumes/day | MBbls | 15 |
Term | Dec. 31, 2020 |
Price Risk Derivatives, at Fair Value, Net | $ 20 |
Oil [Member] | West Texas Intermediate Costless Collars, Maturing in Two Years [Member] | Sold [Member] | Call Option [Member] | |
Derivative [Line Items] | |
Average Price, Options/Collars | $ / bbl | 68.71 |
Oil [Member] | West Texas Intermediate Costless Collars, Maturing in Two Years [Member] | Bought [Member] | Put Option [Member] | |
Derivative [Line Items] | |
Average Price, Options/Collars | $ / bbl | 50 |
Oil [Member] | Basis Contracts, Maturing In Two Years [Member] | |
Derivative [Line Items] | |
Term | Dec. 31, 2020 |
Price Risk Derivatives, at Fair Value, Net | $ (34) |
Natural Gas Liquids [Member] | Propane Fixed Price, Maturing Remainder of Fiscal Year [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volumes/day | MBbls | 3.8 |
Term | Dec. 31, 2019 |
Average Price, Fixed Price Contracts | $ / bbl | 35.72 |
Price Risk Derivatives, at Fair Value, Net | $ 11 |
Natural Gas Liquids [Member] | Propane Fixed Price, Maturing In Two Years [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volumes/day | MBbls | 1.8 |
Term | Dec. 31, 2020 |
Average Price, Fixed Price Contracts | $ / bbl | 21 |
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, Volumes/day | MBbls | 6.5 |
Term | Dec. 31, 2019 |
Average Price, Fixed Price Contracts | $ / bbl | 40.54 |
Price Risk Derivatives, at Fair Value, Net | $ 10 |
Natural Gas Liquids [Member] | Ethane Fixed Price, Maturing Remainder of Fiscal Year [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volumes/day | MBbls | 5.3 |
Term | Dec. 31, 2019 |
Average Price, Fixed Price Contracts | $ / bbl | 17.23 |
Price Risk Derivatives, at Fair Value, Net | $ 5 |
Natural Gas [Member] | |
Derivative [Line Items] | |
Price Risk Derivatives, at Fair Value, Net | $ 125 |
Natural Gas [Member] | NYMEX Costless Collars, Maturing Remainder of Fiscal Year [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volumes/day | MMcf | 177 |
Term | Dec. 31, 2019 |
Price Risk Derivatives, at Fair Value, Net | $ 8 |
Natural Gas [Member] | NYMEX Costless Collars, Maturing Remainder of Fiscal Year [Member] | Sold [Member] | Call Option [Member] | |
Derivative [Line Items] | |
Average Price, Options/Collars | $ / Mcf | 3.05 |
Natural Gas [Member] | NYMEX Costless Collars, Maturing Remainder of Fiscal Year [Member] | Bought [Member] | Put Option [Member] | |
Derivative [Line Items] | |
Average Price, Options/Collars | $ / Mcf | 2.89 |
Natural Gas [Member] | Basis Contracts, Maturing Remainder of Year [Member] | |
Derivative [Line Items] | |
Term | Dec. 31, 2019 |
Price Risk Derivatives, at Fair Value, Net | $ 10 |
Natural Gas [Member] | NYMEX Fixed Price, Maturing Remainder Of Fiscal Year [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volumes/day | MMcf | 687 |
Term | Dec. 31, 2019 |
Average Price, Fixed Price Contracts | $ / Mcf | 2.72 |
Price Risk Derivatives, at Fair Value, Net | $ 19 |
Natural Gas [Member] | Basis Contracts, Maturing In Two Years [Member] | |
Derivative [Line Items] | |
Term | Dec. 31, 2020 |
Price Risk Derivatives, at Fair Value, Net | $ 30 |
Natural Gas [Member] | NYMEX Fixed Price, Maturing In Two Years [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volumes/day | MMcf | 653 |
Term | Dec. 31, 2020 |
Average Price, Fixed Price Contracts | $ / Mcf | 2.69 |
Price Risk Derivatives, at Fair Value, Net | $ 64 |
Natural Gas [Member] | Basis Contracts, Maturing In Three Years [Member] | |
Derivative [Line Items] | |
Term | Dec. 31, 2021 |
Price Risk Derivatives, at Fair Value, Net | $ (2) |
Natural Gas [Member] | Basis Contracts, Maturing After Four Years [Member] | |
Derivative [Line Items] | |
Price Risk Derivatives, at Fair Value, Net | $ (8) |
Natural Gas [Member] | NYMEX Fixed Price Swaptions [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volumes/day | MMcf | 180 |
Term | Dec. 31, 2021 |
Average Price, Fixed Price Contracts | $ / Mcf | 2.61 |
Price Risk Derivatives, at Fair Value, Net | $ (9) |
Natural Gas [Member] | NYMEX Costless Collars, Maturing In Two Years [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volumes/day | MMcf | 55 |
Term | Dec. 31, 2020 |
Price Risk Derivatives, at Fair Value, Net | $ 4 |
Natural Gas [Member] | NYMEX Costless Collars, Maturing In Two Years [Member] | Sold [Member] | Call Option [Member] | |
Derivative [Line Items] | |
Average Price, Options/Collars | $ / Mcf | 2.88 |
Natural Gas [Member] | NYMEX Costless Collars, Maturing In Two Years [Member] | Bought [Member] | Put Option [Member] | |
Derivative [Line Items] | |
Average Price, Options/Collars | $ / Mcf | 2.50 |
Natural Gas [Member] | NYMEX Three-Way Options, Maturing Remainder Of Fiscal Year [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volumes/day | MMcf | 330 |
Term | Dec. 31, 2020 |
Price Risk Derivatives, at Fair Value, Net | $ 7 |
Natural Gas [Member] | NYMEX Three-Way Options, Maturing Remainder Of Fiscal Year [Member] | Sold [Member] | Put Option [Member] | |
Derivative [Line Items] | |
Average Price, Options/Collars | $ / Mcf | 2.25 |
Natural Gas [Member] | NYMEX Three-Way Options, Maturing Remainder Of Fiscal Year [Member] | Sold [Member] | Call Option [Member] | |
Derivative [Line Items] | |
Average Price, Options/Collars | $ / Mcf | 2.72 |
Natural Gas [Member] | NYMEX Three-Way Options, Maturing Remainder Of Fiscal Year [Member] | Bought [Member] | Put Option [Member] | |
Derivative [Line Items] | |
Average Price, Options/Collars | $ / Mcf | 2.60 |
Natural Gas [Member] | NYMEX Call Options, Maturing Remainder Of Fiscal Year [Member] | Sold [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volumes/day | MMcf | 230 |
Term | Dec. 31, 2019 |
Price Risk Derivatives, at Fair Value, Net | $ 0 |
Average Price, Options/Collars | $ / Mcf | 3.75 |
Natural Gas [Member] | NYMEX Call Options, Maturing Remainder Of Fiscal Year [Member] | Bought [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volumes/day | MMcf | 230 |
Term | Dec. 31, 2019 |
Price Risk Derivatives, at Fair Value, Net | $ (1) |
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, Volumes/day | MMcf | 230 |
Term | Dec. 31, 2020 |
Price Risk Derivatives, at Fair Value, Net | $ 4 |
Average Price, Options/Collars | $ / Mcf | 3.25 |
Natural Gas [Member] | Other Financial Positions [Member] | |
Derivative [Line Items] | |
Price Risk Derivatives, at Fair Value, Net | $ (1) |
Oil and NGLs [Member] | |
Derivative [Line Items] | |
Price Risk Derivatives, at Fair Value, Net | $ 184 |
Minimum [Member] | Currency Swap [Member] | |
Derivative [Line Items] | |
Term | Oct. 1, 2019 |
Minimum [Member] | Natural Gas [Member] | Basis Contracts, Maturing After Four Years [Member] | |
Derivative [Line Items] | |
Term | Jan. 1, 2022 |
Maximum [Member] | Currency Swap [Member] | |
Derivative [Line Items] | |
Term | Dec. 31, 2020 |
Maximum [Member] | Natural Gas [Member] | Basis Contracts, Maturing After Four Years [Member] | |
Derivative [Line Items] | |
Term | Dec. 31, 2025 |
Financial Instruments and Ris_5
Financial Instruments and Risk Management (Earnings Impact of Realized and Unrealized Gains (Losses) On Risk Management Positions) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Realized Gain (Loss) on Derivatives | $ 124 | $ (76) | $ 302 | $ (84) |
Unrealized Gain (Loss) on Derivatives | (52) | (155) | (359) | (439) |
Realized and Unrealized Gain (Loss) on Risk Management | 72 | (231) | (57) | (523) |
Revenue [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Realized Gain (Loss) on Derivatives | 122 | (77) | 301 | (95) |
Unrealized Gain (Loss) on Derivatives | (41) | (164) | (385) | (422) |
Realized and Unrealized Gain (Loss) on Risk Management | 81 | (241) | (84) | (517) |
Foreign Currency Gain (Loss) [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Realized Gain (Loss) on Derivatives | 2 | 1 | 1 | 11 |
Unrealized Gain (Loss) on Derivatives | (11) | 9 | 26 | (17) |
Realized and Unrealized Gain (Loss) on Risk Management | $ (9) | $ 10 | $ 27 | $ (6) |
Financial Instruments and Ris_6
Financial Instruments and Risk Management (Reconciliation of Unrealized Risk Management Positions) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative [Line Items] | ||||
Fair Value of Contracts, Beginning of Year | $ 654 | |||
Amortization of Option Premiums During the Period | (3) | |||
Fair Value of Contracts Realized During the Period | $ (124) | $ 76 | (302) | $ 84 |
Fair Value of Contracts and Net Premiums Received, End of Period | 297 | 297 | ||
Unrealized Gain (Loss) on Derivatives | $ (52) | $ (155) | (359) | (439) |
Commodity Contract [Member] | ||||
Derivative [Line Items] | ||||
Increase (Decrease) in Derivative Assets and Liabilities | (57) | $ (523) | ||
Other Derivative Contracts [Member] | ||||
Derivative [Line Items] | ||||
Increase (Decrease) in Derivative Assets and Liabilities | $ 5 |
Financial Instruments and Ris_7
Financial Instruments and Risk Management (Unrealized Risk Management Positions) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | |||
Risk Management, Current asset | $ 284 | $ 554 | |
Risk Management, Long-term asset | 47 | 161 | |
Risk Management, Total asset | 331 | 715 | |
Risk Management, Current liability | 10 | $ 25 | 25 |
Risk Management, Long-term liability | 14 | 22 | |
Risk Management, Total liability | 24 | 47 | |
Guarantor Obligations, Current Carrying Value | 10 | 14 | |
Risk Management and Other Derivative Guarantee, at Fair Value, Net | 297 | 654 | |
Accounts Payable and Accrued Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Guarantor Obligations, Current Carrying Value | 2 | 4 | |
Other Liabilities and Provisions [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Guarantor Obligations, Current Carrying Value | $ 8 | $ 10 |
Supplementary Information (Net
Supplementary Information (Net Change in Non-Cash Working Capital) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Supplemental Cash Flow Elements [Abstract] | ||||
Accounts receivable and accrued revenues | $ 61 | $ (8) | $ 178 | $ (152) |
Accounts payable and accrued liabilities | (82) | 59 | (66) | 99 |
Current portion of operating lease liabilities | (9) | 0 | 52 | 0 |
Income tax receivable and payable | (2) | 262 | (34) | 252 |
Net change in non-cash working capital | $ (32) | $ 313 | $ 130 | $ 199 |
Supplementary Information (Non-
Supplementary Information (Non-Cash Activity) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | |||||
Asset retirement obligation incurred | $ 2 | $ 3 | $ 13 | $ 13 | $ 17 |
Property, plant and equipment accruals | (80) | (20) | (33) | 61 | |
Capitalized long-term incentives | 1 | 11 | (31) | 6 | |
Property additions/dispositions | 63 | 55 | 66 | 195 | |
New ROU operating lease assets and liabilities (See Note 11) | (1) | 0 | (11) | 0 | |
Common shares issued under dividend reinvestment plan | 0 | 0 | 0 | 0 | $ 0.6 |
Newfield Exploration Company [Member] | |||||
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | |||||
Common shares issued in conjunction with the Newfield business combination (See Note 8) | $ 0 | $ 0 | $ (3,478) | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Millions | Sep. 30, 2019USD ($) |
Long-term Commitment [Line Items] | |
Building Leases, Future Minimum Payments, Remainder of Fiscal Year | $ 4 |
Building Leases, Future Minimum Payments, Due in Two Years | 15 |
Building Leases, Future Minimum Payments, Due in Three Years | 14 |
Building Leases, Future Minimum Payments, Due in Four Years | 11 |
Building Leases, Future Minimum Payments, Due in Five Years | 7 |
Building Leases, Future Minimum Payments, Due Thereafter | 15 |
Building Leases, Future Minimum Payments Due | 66 |
Total Commitment, Due Remainder of Fiscal Year | 265 |
Total Commitment, Due in Second Year | 770 |
Total Commitment, Due in Third Year | 645 |
Total Commitment, Due in Fourth Year | 605 |
Total Commitment, Due in Fifth Year | 492 |
Total Commitment, Due Thereafter | 2,422 |
Total Commitment | 5,199 |
Transportation And Processing Commitments [Member] | |
Long-term Commitment [Line Items] | |
Purchase Obligation,Remainder of Fiscal Year | 197 |
Purchase Obligation, Due in Second Year | 731 |
Purchase Obligation, Due in Third Year | 625 |
Purchase Obligation, Due in Fourth Year | 594 |
Purchase Obligation, Due in Fifth Year | 485 |
Purchase Obligation, Due Thereafter | 2,407 |
Purchase Obligation | 5,039 |
Drilling And Field Services Commitments [Member] | |
Long-term Commitment [Line Items] | |
Purchase Obligation,Remainder of Fiscal Year | 64 |
Purchase Obligation, Due in Second Year | 24 |
Purchase Obligation, Due in Third Year | 6 |
Purchase Obligation, Due in Fourth Year | 0 |
Purchase Obligation, Due in Fifth Year | 0 |
Purchase Obligation, Due Thereafter | 0 |
Purchase Obligation | $ 94 |
Commitments and Contingencies_3
Commitments and Contingencies (Narrative) (Details) $ in Millions | Mar. 29, 2019USD ($) |
Newfield Exploration Company [Member] | |
Long-term Commitment [Line Items] | |
Litigation settlement paid to Sapura | $ 22.5 |