EP Energy (EPEGQ) 10-Q 3 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 19, 2017
Entity Registrant Name	EP Energy Corp
Entity Central Index Key	1,584,952
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Class A
Entity Common Stock, Shares Outstanding		254,923,001
Class B
Entity Common Stock, Shares Outstanding		702,754

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Operating revenues
Oil	$ 189	$ 169	$ 595	$ 463
Natural gas	27	27	84	94
NGLs	26	16	71	42
Financial derivatives	(23)	43	92	(20)
Total operating revenues	219	255	842	579
Operating expenses
Cost of Purchased Oil and Gas	0	2	2	9
Transportation costs	29	27	86	81
Lease operating expense	42	37	121	117
General and administrative	25	31	71	101
Depreciation, depletion and amortization	118	132	368	342
Gain on sale of assets	0	4	0	(78)
Impairment charges	1		2	0
Exploration and other expense	6	1	10	3
Taxes, other than income taxes	16	15	50	43
Total operating expenses	237	249	710	618
Operating (loss) income	(18)	6	132	(39)
Gain (loss) on extinguishment of debt	24	26	(16)	384
Interest expense	(80)	(74)	(245)	(231)
(Loss) income before income taxes	(74)	(42)	(129)	114
Income tax benefit (expense)	2	(1)	7	(1)
Net (loss) income	$ (72)	$ (43)	$ (122)	$ 113
Basic net (loss) income per common share
Net (loss) income	$ (0.29)	$ (0.18)	$ (0.50)	$ 0.46
Basic weighted average common shares outstanding	246	245	246	245
Diluted net (loss) income per common share
Net (loss) income	$ (0.29)	$ (0.18)	$ (0.50)	$ 0.46
Diluted weighted average common shares outstanding	246	245	246	246

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 21,000,000	$ 20,000,000
Accounts receivable
Customer, net of allowance of less than $1 in 2017 and 2016	141,000,000	133,000,000
Other, net of allowance of $1 in 2017 and 2016	36,000,000	16,000,000
Income tax receivable	7,000,000
Materials and supplies	16,000,000	16,000,000
Derivative instruments	53,000,000	58,000,000
Prepaid assets	8,000,000	5,000,000
Total current assets	282,000,000	248,000,000
Property, plant and equipment, at cost
Oil and natural gas properties	7,616,000,000	7,194,000,000
Other property, plant and equipment	87,000,000	85,000,000
Total property, plant and equipment, at cost	7,703,000,000	7,279,000,000
Less accumulated depreciation, depletion and amortization	3,135,000,000	2,781,000,000
Total property, plant and equipment, net	4,568,000,000	4,498,000,000
Other assets
Derivative instruments	13,000,000	4,000,000
Unamortized debt issue costs - revolving credit facility	8,000,000	10,000,000
Other	1,000,000	1,000,000
Total other assets	22,000,000	15,000,000
Total assets	4,872,000,000	4,761,000,000
Accounts payable
Trade	74,000,000	63,000,000
Other	138,000,000	113,000,000
Derivative instruments	2,000,000	4,000,000
Accrued interest	83,000,000	43,000,000
Short-term debt, net of debt issue costs	21,000,000	0
Other accrued liabilities	93,000,000	98,000,000
Total current liabilities	411,000,000	321,000,000
Long-term Debt, net of debt issue costs	3,933,000,000	3,789,000,000
Other long-term liabilities
Derivative instruments	0	1,000,000
Asset retirement obligations	36,000,000	40,000,000
Other	1,000,000	4,000,000
Total non-current liabilities	3,970,000,000	3,834,000,000
Commitments and contingencies
Stockholders’ equity
Preferred stock, $0.01 par value; 50 million shares authorized; no shares issued or outstanding	0	0
Treasury stock (at cost), 0.7 million shares at September 30, 2017 and 0.5 million shares at December 31, 2016	(3,000,000)	(3,000,000)
Additional paid-in capital	3,553,000,000	3,546,000,000
Accumulated deficit	(3,062,000,000)	(2,939,000,000)
Total stockholders’ equity	491,000,000	606,000,000
Total liabilities and equity	4,872,000,000	4,761,000,000
Class A
Stockholders’ equity
Common Stock	3,000,000	2,000,000
Total stockholders’ equity	3,000,000	2,000,000
Class B
Stockholders’ equity
Common Stock	0	0
Total stockholders’ equity	$ 0	$ 0

CONDENSED CONSOLIDATED BALANCE4

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Maximum allowance for accounts receivable, customer	$ 1	$ 1
Other receivables, allowance (in dollars)	$ 1	$ 1
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Treasury Stock, Shares	700,000	500,000
Class A
Common shares, par value (in dollars per share)	$ 0.01	$ 0.01
Common shares, shares authorized	550,000,000	550,000,000
Common shares, shares issued	255,000,000	251,000,000
Common shares, shares outstanding	255,000,000	251,000,000
Class B
Common shares, par value (in dollars per share)	$ 0.01	$ 0.01
Common shares, shares authorized	700,000	800,000
Common shares, shares issued	700,000	800,000
Common shares, shares outstanding	700,000	800,000

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities
Net (loss) income	$ (122)	$ 113
Adjustments to reconcile net (loss) income to net cash provided by operating activities
Depreciation, depletion and amortization	368	342
Loss (gain) on sale of assets	0	(78)
Impairment charges	2	0
Loss (gain) on extinguishment of debt	16	(384)
Other non-cash income items	24	27
Asset and liability changes
Accounts receivable	(25)	84
Accounts payable	26	(36)
Derivative instruments	(7)	535
Accrued interest	40	34
Other asset changes	(12)	4
Other liability changes	(12)	17
Net cash provided by operating activities	298	658
Cash flows from investing activities
Cash paid for capital expenditures	(405)	(398)
Proceeds from Divestiture of Businesses, Net of Cash Divested	0	389
Payments to Acquire Oil and Gas Property and Equipment	29
Net cash used in investing activities	(434)	(9)
Cash flows from financing activities
Proceeds from issuance of long-term debt	1,645	630
Repayments and repurchases of long-term debt	(1,484)	(1,239)
Debt issue costs	(21)	(24)
Other	(3)	(2)
Net cash provided by (used in) financing activities	137	(635)
Change in cash and cash equivalents	1	14
Cash and cash equivalents
Beginning of period	20	26
End of period	$ 21	$ 40

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - 9 months ended Sep. 30, 2017 - USD ($) shares in Millions, $ in Millions	Total	Treasury Stock	Additional Paid-in Capital	Retained Earnings	Class A	Class B
Balance (Scenario, Previously Reported [Member]) at Dec. 31, 2016	$ 606	$ (3)	$ 3,546	$ (2,939)	$ 2	$ 0
Balance at Dec. 31, 2016	606	(3)	3,547	(2,940)	$ 2	$ 0
Balance (in shares) (Scenario, Previously Reported [Member]) at Dec. 31, 2016					251	0.8
Balance (in shares) at Dec. 31, 2016					251	0.8
Increase (Decrease) in Stockholders' Equity
Share-based compensation	7		6
Share-based compensation (in shares)					(4)	(0.1)
Share-based Compensation					$ 1
Net loss	(122)			(122)
Balance at Sep. 30, 2017	$ 491	$ (3)	3,553	(3,062)	$ 3	$ 0
Balance (in shares) at Sep. 30, 2017					255	0.7
Increase (Decrease) in Stockholders' Equity
Cumulative Effect of New Accounting Principle in Period of Adoption			$ 1	$ (1)

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Significant Accounting Policies	Basis of Presentation and Significant Accounting Policies Basis of Presentation We prepared this Quarterly Report on Form 10-Q under the rules and regulations of the United States Securities and Exchange Commission (SEC) and in accordance with United States generally accepted accounting principles (U.S. GAAP) as it applies to interim financial statements. Because this is an interim period report presented using a condensed format, it does not include all of the disclosures required by U.S. GAAP and should be read along with our 2016 Annual Report on Form 10-K. The condensed consolidated financial statements as of September 30, 2017 and 2016 are unaudited. The consolidated balance sheet as of December 31, 2016 has been derived from the audited consolidated balance sheet included in our 2016 Annual Report on Form 10-K. In our opinion, all adjustments which are of a normal, recurring nature are reflected to fairly present these interim period results. The results for any interim period are not necessarily indicative of the expected results for the entire year. Significant Accounting Policies There were no changes in significant accounting policies as described in the 2016 Annual Report on Form 10-K other than in Accounting for Long-Term Incentive Compensation. In the first quarter of 2017, we adopted Accounting Standards Update (ASU) No. 2016-09, Improvements to Employee Share-Based Payment Accounting which simplifies several aspects of the accounting for share-based payment awards to employees including accounting for income taxes, forfeitures, statutory tax withholding requirements and classification in the statement of cash flows. As permitted under ASU 2016-09, we elected to account for forfeitures in compensation cost when they occur. Upon adoption of the ASU, we recorded a cumulative adjustment of approximately $1 million to the opening balance of retained earnings as of January 1, 2017. New Accounting Pronouncements Issued But Not Yet Adopted The following accounting standards have been issued but not yet adopted as of September 30, 2017 . Statement of Cash Flows. In August 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-15, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments, which addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows - Restricted Cash , which requires restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows. Retrospective application of these standards is required for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and early adoption is allowed. We do not anticipate that the adoption of this standard will have a material impact on our consolidated statement of cash flows. Leases. In February 2016, the FASB issued ASU No. 2016-02, Leases, which requires lessees to recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. Adoption of this standard is required beginning in the first quarter of 2019 and early adoption is allowed. We continue to evaluate our contracts and other agreements to assess the impact this update will have on our financial statements. Revenue Recognition. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which clarifies the principles for recognizing revenue and develops a common revenue standard for U.S. GAAP and International Financial Reporting Standards. Adoption of this standard is required beginning in the first quarter of 2018. Modified or full retrospective application of this standard is required upon adoption. We do not currently anticipate our adoption of this standard in 2018, utilizing the modified retrospective approach, will have a material impact on our financial statements. We continue to evaluate disclosure requirements and assess any potential changes to our accounting policies, business processes and/or controls as a result of the provisions of this standard.

Divestitures

Divestitures	9 Months Ended
	Sep. 30, 2017
Business Combinations [Abstract]
Acquisitions and Divestitures	Divestitures Acquisitions . In 2017, we acquired proved and unproved properties for approximately $29 million located in the Wolfcamp area. Divestitures. In May 2016, we completed the sale of our assets located in the Haynesville and Bossier shales for approximately $420 million (net cash proceeds of $388 million after customary adjustments). We recorded a gain on the sale of approximately $79 million , with the buyer also assuming a transportation commitment totaling $106 million . Summarized operating results of our assets sold were as follows (in millions): Quarter ended September 30, 2016 Nine months ended September 30, 2016 Operating revenues $ — $ 26 Operating expenses Transportation costs — 7 Lease operating expense — 1 Depreciation, depletion and amortization — 16 Other expense — 5 Total operating expenses — 29 (Loss) gain on sale of assets (4 ) 79 (Loss) income before income taxes $ (4 ) $ 76

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Interim period income taxes are computed by applying an anticipated annual effective tax rate to year-to-date income or loss, except for significant, unusual or infrequently occurring items, which income tax effects are recorded in the period in which they occur. Changes in tax laws or rates are recorded in the period they are enacted. For the quarter and nine months ended September 30, 2017 , our effective tax rates were approximately 4% and 6% , respectively. For both the quarter and nine months ended September 30, 2016 , our effective tax rates were approximately 1% . Our effective tax rates in 2017 and 2016 differed from the statutory rate primarily as a result of our recognition of a full valuation allowance on our net deferred tax assets. For the quarters ended September 30, 2017 and 2016, we recorded adjustments to the valuation allowance on our net deferred tax assets which offset deferred income tax benefit of $24 million and $16 million , respectively, and offset deferred income tax benefit and deferred income tax expense of $36 million and $43 million for the nine months ended September 30, 2017 and 2016, respectively. Our effective tax rate for the quarter and nine months ended September 30, 2017 also reflects recording a current income tax benefit and related receivable for the recovery of previously paid alternative minimum taxes based on a change in our tax depreciation elections. We evaluate the realization of our deferred tax assets and record any associated valuation allowance after considering cumulative book losses, the reversal of existing temporary differences, the existence of taxable income in prior carryback years, tax planning strategies and future taxable income for each of our taxable jurisdictions. Based upon the evaluation of the available evidence, we maintained a valuation allowance against our net deferred tax assets of $1 billion as of September 30, 2017 . The Company's and certain subsidiaries' income tax years (2014-2016) remain open and subject to examination by both federal and state tax authorities. During the second quarter of 2017, we concluded an examination of our 2013 U.S. tax return.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share We exclude potentially dilutive securities from the determination of diluted earnings per share (as well as their related income statement impacts) when their impact on net income per common share is antidilutive. Potentially dilutive securities consist of employee stock options, restricted stock and performance unit awards. For the quarters ended September 30, 2017 and 2016 and for the nine months ended September 30, 2017 , we incurred net losses and accordingly excluded all potentially dilutive securities from the determination of diluted earnings per share as their impact on loss per common share was antidilutive. For the nine months ended September 30, 2016 , approximately one million shares are included in our calculation of diluted earnings per share related to our restricted stock awards and performance units (see Note 9).

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Financial Instruments	Fair Value Measurements We use various methods to determine the fair values of our financial instruments. The fair value of a financial instrument depends on a number of factors, including the availability of observable market data over the contractual term of the underlying instrument. We separate the fair value of our financial instruments into three levels (Levels 1, 2 and 3) based on our assessment of the availability of observable market data and the significance of non-observable data used to determine fair value. As of September 30, 2017 and December 31, 2016 , all of our derivative financial instruments were classified as Level 2. Our assessment of the level of an instrument can change over time based on the maturity or liquidity of the instrument. The following table presents the carrying amounts and estimated fair values of our financial instruments: September 30, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value (in millions) Short-term debt $ 21 $ 19 $ — $ — Long-term debt (see Note 7) $ 3,982 $ 3,265 $ 3,856 $ 3,637 Derivative instruments $ 64 $ 64 $ 57 $ 57 As of September 30, 2017 and December 31, 2016 , the carrying amount of cash and cash equivalents, accounts receivable and accounts payable represent fair value because of the short-term nature of these instruments. We hold long-term debt obligations with various terms. We estimated the fair value of debt (representing a Level 2 fair value measurement) primarily based on quoted market prices for the same or similar issuances, considering our credit risk. Oil, Natural Gas and NGLs Derivative Instruments. We attempt to mitigate a portion of our commodity price risk and stabilize cash flows associated with forecasted sales of oil, natural gas and NGLs through the use of financial derivatives. As of September 30, 2017 , we had derivative contracts in the form of fixed price swaps and three-way collars on 11 MMBbls of oil ( 2 MMBbls in 2017 and 9 MMBbls in 2018). In addition to our oil derivatives, we had derivative contracts in the form of fixed price swaps and options on 42 TBtu of natural gas ( 9 TBtu in 2017, 26 TBtu in 2018 and 7 TBtu in 2019) and 117 MMGal of ethane and propane fixed price swaps ( 25 MMGal in 2017 and 92 MMGal in 2018). As of December 31, 2016 , we had fixed price derivative contracts for 16 MMBbls of oil, 36 TBtu on natural gas and 108 MMGal on ethane. In addition to the contracts above, we have derivative contracts related to locational basis differences on our oil and natural gas production. None of our derivative contracts are designated as accounting hedges. The following table presents the fair value associated with our derivative financial instruments as of September 30, 2017 and December 31, 2016 . All of our derivative instruments are subject to master netting arrangements which provide for the unconditional right of offset for all derivative assets and liabilities with a given counterparty in the event of default. We present assets and liabilities related to these instruments in our consolidated balance sheets as either current or non-current assets or liabilities based on their anticipated settlement date, net of the impact of master netting agreements. On derivative contracts recorded as assets in the table below, we are exposed to the risk that our counterparties may not perform. Level 2 Derivative Assets Derivative Liabilities Gross Fair Value Balance Sheet Location Gross Fair Value Balance Sheet Location Impact of Netting Current Non- current Impact of Netting Current Non- current (in millions) (in millions) September 30, 2017 Derivative instruments $ 75 $ (9 ) $ 53 $ 13 $ (11 ) $ 9 $ (2 ) $ — December 31, 2016 Derivative instruments $ 79 $ (17 ) $ 58 $ 4 $ (22 ) $ 17 $ (4 ) $ (1 ) For the quarters ended September 30, 2017 and 2016 , we recorded a derivative loss of $23 million and a derivative gain of $43 million , respectively. For the nine months ended September 30, 2017 and 2016 , we recorded a derivative gain of $92 million and a derivative loss of $20 million , respectively. Derivative gains and losses on our oil, natural gas and NGLs financial derivative instruments are recorded in operating revenues in our consolidated income statements.

Property, Plant and Equipment

Property, Plant and Equipment	9 Months Ended
	Sep. 30, 2017
Oil and Gas Exploration and Production Industries Disclosures [Abstract]
Property, Plant and Equipment	Property, Plant and Equipment Oil and Natural Gas Properties . As of both September 30, 2017 and December 31, 2016 , we had approximately $4.5 billion of total property, plant, and equipment, net of accumulated depreciation, depletion and amortization on our consolidated balance sheets, substantially all of which relates to proved and unproved oil and natural gas properties. Our capitalized costs related to proved and unproved oil and natural gas properties by area were as follows: September 30, 2017 December 31, 2016 (in millions) Proved Eagle Ford $ 3,127 $ 3,001 Wolfcamp 2,678 2,415 Altamont 1,684 1,624 Total Proved 7,489 7,040 Unproved Wolfcamp 66 94 Altamont 62 60 Total Unproved 128 154 Less accumulated depletion 3,077 2,731 Net capitalized costs for oil and natural gas properties $ 4,540 $ 4,463 During the nine months ended September 30, 2017 , we transferred approximately $51 million from unproved properties to proved properties. For the quarters ended September 30, 2017 and 2016 , we recorded approximately $2 million and $1 million , respectively, of amortization of unproved leasehold costs in exploration expense in our consolidated income statements. For the nine months ended September 30, 2017 and 2016 , we recorded approximately $ 4 million and $1 million , respectively, of amortization of unproved leasehold costs. Suspended well costs were not material as of September 30, 2017 or December 31, 2016 . We evaluate capitalized costs related to proved properties upon a triggering event (such as a significant and sustained decline in forward commodity prices) to determine if an impairment of such properties has occurred. Capitalized costs associated with unproved properties (e.g. leasehold acquisition costs associated with non-producing areas) are also assessed upon a triggering event for impairment based on estimated drilling plans and capital expenditures which may also change based on forward commodity price changes and/or potential lease expirations. Commodity price declines may cause changes to our capital spending levels, production rates, levels of proved reserves and development plans, which may result in an impairment of the carrying value of our proved and/or unproved properties in the future. Generally, economic recovery of unproved reserves in non-producing or unproved areas is not yet supported by actual production or conclusive formation tests, but may be confirmed by continuing exploration and development activities. Our ability to retain our leases and thus recover our non-producing leasehold costs is dependent upon a number of factors including our levels of drilling activity, which may include drilling the acreage on our own behalf or jointly with partners, or our ability to modify or extend our leases. Should commodity prices not justify sufficient capital allocation to the continued development of properties where we have non-producing leasehold costs, we could incur impairment charges of our unproved property costs. Asset Retirement Obligations. We have legal asset retirement obligations associated with the retirement of our oil and natural gas wells and related infrastructure. We settle these obligations when production on those wells is exhausted, when we no longer plan to use them or when we abandon them. We accrue these obligations when we can estimate the timing and amount of their settlement. In estimating the liability associated with our asset retirement obligations, we utilize several assumptions, including a credit-adjusted risk-free rate between 7 percent and 9 percent on a significant portion of our obligations and a projected inflation rate of 2.5 percent . Changes in estimates represent changes to the expected amount and timing of payments to settle our asset retirement obligations. Typically, these changes primarily result from obtaining new information about the timing of our obligations to plug and abandon oil and natural gas wells and the costs to do so, or reassessing our assumptions in light of changing market conditions. The net asset retirement liability as of September 30, 2017 on our consolidated balance sheet in other current and non-current liabilities and the changes in the net liability from January 1 through September 30, 2017 were as follows: 2017 (in millions) Net asset retirement liability at January 1 $ 41 Liabilities settled (1 ) Accretion expense 3 Changes in estimate (5 ) Net asset retirement liability at September 30 $ 38 Capitalized Interest. Interest expense is reflected in our financial statements net of capitalized interest. We capitalize interest primarily on the costs associated with drilling and completing wells until production begins. The interest rate used is the weighted average interest rate of our outstanding borrowings. Capitalized interest for both of the quarters and nine months ended September 30, 2017 and 2016 were approximately $1 million and $3 million , respectively.

Long-Term Debt

Long-Term Debt	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt Listed below are our debt obligations as of the periods presented: Interest Rate September 30, 2017 December 31, 2016 (in millions) RBL credit facility - due May 24, 2019 (1) Variable $ 505 $ 370 Senior secured term loans: Due May 24, 2018 (2) Variable 21 21 Due April 30, 2019 (3) Variable 8 8 Due June 30, 2021 (4) Variable — 580 Senior secured notes: Due November 29, 2024 8.00% 500 500 Due February 15, 2025 8.00% 1,000 — Senior unsecured notes: Due May 1, 2020 9.375% 1,200 1,576 Due September 1, 2022 7.75% 250 250 Due June 15, 2023 6.375% 519 551 Total debt 4,003 3,856 Less short-term debt, net of debt issue costs of less than $1 million (21 ) — Total long-term debt 3,982 3,856 Less non-current portion of unamortized debt issue costs (49 ) (67 ) Total long-term debt, net $ 3,933 $ 3,789 (1) Carries interest at a specified margin over LIBOR of 2.50% to 3.50% , based on borrowing utilization. (2) Issued at 99% of par and carries interest at a specified margin over the LIBOR of 2.75% , with a minimum LIBOR floor of 0.75% . As of September 30, 2017 and December 31, 2016 , the effective interest rate of the term loan was 4.07% and 3.50% , respectively. (3) Carries interest at a specified margin over the LIBOR of 3.50% , with a minimum LIBOR floor of 1.00% . As of September 30, 2017 and December 31, 2016 , the effective interest rate for the term loan was 4.82% and 4.50% , respectively. (4) As of December 31, 2016 , the effective interest rate for the term loan was 9.75% . During the first quarter of 2017, we issued $1 billion of 8.00% senior secured notes which mature in 2025 and used the proceeds (less fees and expenses) to (i) repay in full our $580 million senior secured term loans due 2021, (ii) repurchase $250 million in aggregate principal amount of our 9.375% senior unsecured notes due 2020 and (iii) repay $111 million of the amounts outstanding under our Reserve-Based Loan facility (RBL Facility). As a result of the issuance, our RBL Facility borrowing base was also reduced from $1.5 billion to $1.44 billion . In conjunction with these transactions, we recorded a loss on extinguishment of debt of approximately $53 million (including $30 million in non-cash expense related to eliminating associated unamortized debt issue costs and debt discounts). In 2017 and 2016, we also repurchased additional debt as follows: Quarter ended September 30, Nine months ended September 30, 2017 2016 2017 2016 (in millions) Debt repurchased - face value (1) 101 75 157 812 Cash paid 76 47 118 407 Gain on extinguishment of debt (2)(3) 24 26 37 393 (1) In 2017, repurchases were associated with 2020 and 2023 senior unsecured notes. In 2016, repurchases were associated with certain senior unsecured notes and term loans. (2) Includes $1 million and $2 million , for the quarter and nine months ended September 30, 2017, respectively, and $1 million and $12 million for the quarter and nine months ended September 30, 2016, respectively, of non-cash expense related to eliminating associated unamortized debt issue costs. (3) For the nine months ended September 30, 2016, we also recorded a loss on the extinguishment of debt of approximately $9 million primarily related to eliminating a portion of the unamortized debt issue costs due to the reduction of our RBL borrowing base in May 2016. Unamortized Debt Issue Costs. As of September 30, 2017 and December 31, 2016 , we had total unamortized debt issue costs of $57 million and $77 million . Of these amounts, $8 million and $10 million , respectively, are associated with our RBL Facility and reflected as other assets, while $49 million and $67 million , respectively, are associated with our senior secured term loans and senior notes and reflected net in our debt balances. Reserve-based Loan Facility. We have a RBL Facility in place which allows us to borrow funds or issue letters of credit. The facility matures in May 2019. As of September 30, 2017 , we had $913 million of available capacity remaining with $19 million of letters of credit issued and $505 million outstanding under the facility. The RBL Facility is collateralized by certain of our oil and natural gas properties and has a borrowing base subject to semi-annual redetermination. In October 2017 our RBL borrowing base was affirmed at $1.4 billion . Downward revisions of our oil and natural gas reserves volume and value due to declines in commodity prices, the impact of lower estimated capital spending in response to lower prices, performance revisions, or sales of assets or the incurrence of certain types of additional debt, among other items, could cause a reduction of our borrowing base in the future, and these reductions could be significant. Restrictive Provisions/Covenants. The availability of borrowings under our credit agreements and our ability to incur additional indebtedness is subject to various financial and non-financial covenants and restrictions. In conjunction with the redetermination of our RBL Facility in April 2017, we extended our first lien debt to EBITDAX covenant through March 31, 2019 and the ratio was reduced to 3.0 to 1.0 . In April 2019, this financial covenant will revert to a requirement that our total net debt to EBITDAX ratio not exceed 4.5 to 1.0 . As of September 30, 2017 , we were in compliance with our debt covenants, and our ratio of first lien debt to EBITDAX was 0.66 x while our ratio of total net debt to EBITDAX was 5.21 x. Under our RBL Facility, we are also limited in non-RBL Facility debt repurchases to $350 million , subject to certain adjustments. As of September 30, 2017, the non-RBL Facility debt repurchases limit was approximately $885 million as a result of divestitures and financing transactions and will continue to be subject to future adjustments. Certain other covenants and restrictions, among other things, also limit or place certain conditions on our ability to incur or guarantee additional indebtedness; make any restricted payments or pay any dividends on equity interests or redeem, repurchase or retire equity interests or subordinated indebtedness; sell assets; make investments; create certain liens; prepay debt obligations; engage in transactions with affiliates; and enter into certain hedging agreements.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal Matters We and our subsidiaries and affiliates are parties to various legal actions and claims that arise in the ordinary course of our business. For each matter, we evaluate the merits of the case or claim, our exposure to the matter, possible legal or settlement strategies and the likelihood of an unfavorable outcome. If we determine that an unfavorable outcome is probable and can be estimated, we establish the necessary accruals. While the outcome of our current matters cannot be predicted with certainty and there are still uncertainties related to the costs we may incur, based upon our evaluation and experience to date, we believe we have established appropriate reserves for these matters. It is possible, however, that new information or future developments could require us to reassess our potential exposure and adjust our accruals accordingly, and these adjustments could be material. As of September 30, 2017 , we had approximately $7 million accrued for all outstanding legal matters. FairfieldNodal v. EP Energy E&P Company , L.P. In 2014, Fairfield filed suit against one of our subsidiaries in a Texas district court, claiming we were contractually obligated to pay a transfer fee of approximately $21 million for seismic licensing, triggered by a change in control with the Sponsors' acquisition of our predecessor entity in 2012. Prior to the change in control, we had unilaterally terminated the seismic licensing agreements, and we returned the applicable seismic data. Fairfield also claimed EP Energy did not properly maintain the confidentiality of the seismic data and interpretations made from it. In April 2015, the district court granted summary judgment to EP Energy, and Fairfield then appealed. On July 6, 2017, an intermediate court of appeals in Texas reversed the judgment related to the transfer fee and denied rehearing on October 5, 2017. We intend to appeal this court's ruling to the Texas Supreme Court. At this time, we are unable to estimate the amount or range of possible loss, if any, on this matter. Indemnifications and Other Matters. We periodically enter into indemnification arrangements as part of the divestiture of assets or businesses. These arrangements include, but are not limited to, indemnifications for income taxes, the resolution of existing disputes, environmental and other contingent matters. In addition, under various laws or regulations, we could be subject to the imposition of certain liabilities. For example, the decline in commodity prices has created an environment where there is an increased risk that owners and/or operators of assets previously purchased from us may no longer be able to satisfy plugging and abandonment obligations that attach to such assets. In that event, under various laws or regulations, we could be required to assume all, or a portion of the plugging or abandonment obligations on assets we no longer own or operate. As of September 30, 2017 , we had approximately $5 million accrued related to these indemnifications and other matters. Non-Income Tax Matters. We are under a number of examinations by taxing authorities related to non-income tax matters. As of September 30, 2017 , we had approximately $41 million accrued (in other accrued liabilities in our consolidated balance sheet) in connection with ongoing examinations related to certain prior period non-income tax matters. Environmental Matters We are subject to existing federal, state and local laws and regulations governing environmental quality, pollution control and greenhouse gas (GHG) emissions. Numerous governmental agencies, such as the Environmental Protection Agency (EPA), issue regulations which often require difficult and costly compliance measures that carry substantial administrative, civil and criminal penalties and may result in injunctive obligations for non-compliance. Our management believes that we are in substantial compliance with applicable environmental laws and regulations, and we have not experienced any material adverse effect from compliance with these environmental requirements. For additional details on certain environmental matters, including matters related to climate change, air quality and other emissions, hydraulic fracturing regulations and waste handling, refer to the Risk Factors section of our 2016 Annual Report on Form 10-K. While our reserves for environmental matters are currently not material, there are still uncertainties related to the ultimate costs we may incur in the future in order to comply with increasingly strict environmental laws, regulations, and orders of regulatory agencies, as well as claims for damages to property and the environment or injuries to employees and other persons resulting from our current or past operations. Based upon our evaluation and experience to date, however, we believe our accruals for these matters are adequate. It is possible that new information or future developments could result in substantial additional costs and liabilities which could require us to reassess our potential exposure related to these matters and to adjust our accruals accordingly, and these adjustments could be material.

Long-Term Incentive Compensatio

Long-Term Incentive Compensation	9 Months Ended
	Sep. 30, 2017
Retirement Benefits [Abstract]
Long-Term Incentive Compensation	Long-Term Incentive Compensation Our long-term incentive (LTI) programs consist of restricted stock, stock options and performance unit awards. Restricted Stock. A summary of the changes in our non-vested restricted shares for the nine months ended September 30, 2017 is presented below: Number of Shares Weighted Average Grant Date Fair Value per Share Non-vested at December 31, 2016 6,326,788 $ 7.69 Granted 5,142,527 $ 4.28 Vested (2,144,100 ) $ 8.28 Forfeited (715,502 ) $ 7.10 Non-vested at September 30, 2017 8,609,713 $ 5.56 Performance Unit Awards. A summary of the changes in our performance unit awards for the nine months ended September 30, 2017 is presented below: Number of Awards Weighted Average Fair Value Non-vested at December 31, 2016 78,900 $ 97.77 Granted (1) 40,470 $ 36.57 Vested (22,302 ) $ 159.92 Forfeited (12,000 ) $ 159.92 Non-vested at September 30, 2017 85,068 $ 48.16 (1) Grant date fair value at March 16, 2017 is based on: (i) an expected term of 3 years, (ii) expected volatility of 96.71% , which is based upon the historical stock price volatility and (iii) a risk-free interest rate of 1.57% , based upon the yield on U.S. Treasury STRIPS over the expected term as of the grant date. Our performance unit awards are treated as liability awards for accounting purposes with the expense recognized on an accelerated basis and fair value remeasured at each reporting period. During the nine months ended September 30, 2017 , we paid approximately $4 million in connection with awards that vested and had accrued approximately $2 million related to unvested outstanding performance unit awards. Performance unit awards may be settled in either stock or cash at the election of the board of directors. Had all outstanding performance unit awards at September 30, 2017 vested and been settled in stock, approximately two million shares would have been issued. Refer to our 2016 Annual Report on Form 10-K for further description regarding the terms and details of these awards. We record compensation expense on all of our LTI awards as general and administrative expense over the requisite service period. Pre-tax compensation expense related to all of our LTI awards (both equity and liability based), net of the impact of forfeitures, was approximately $5 million for both of the quarters ended September 30, 2017 and 2016 and $10 million and $15 million for the nine months ended September 30, 2017 and 2016, respectively. Included in pre-tax compensation expense for the nine months ended September 30, 2017 was approximately $7 million of forfeitures recorded during the first quarter of 2017. As of September 30, 2017 , we had unrecognized compensation expense of $51 million . We will recognize an additional $6 million related to our outstanding awards during the remainder of 2017, $33 million over the remaining requisite service periods subsequent to 2017 and $12 million should a specified capital transaction occur and the right to such amounts become non-forfeitable.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2017
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions Affiliate Payments. In connection with the release of members of the leadership team of a portfolio company of funds managed by Apollo affiliates to join the Company, the Company reimbursed that portfolio company approximately $4 million for money contributed to it by fund investors (other than Apollo). Joint Venture. In January 2017, we entered into a drilling joint venture with Wolfcamp Drillco Operating L.P. (the Investor), which is managed and controlled by an affiliate of Apollo Global Management LLC, to fund future oil and natural gas development in our Wolfcamp program. Subsequently, Access Industries acquired an indirect minority ownership interest in the Investor and therefore is also indirectly responsible for funding a portion of the Investor’s capital commitment. The Investor is anticipated to fund approximately $450 million over the entire program (150 wells in two separate 75 well tranches), or approximately 60 percent of the estimated drilling, completion and equipping costs of the wells, in exchange for a 50 percent working interest in the joint venture wells. Once the Investor achieves a 12 percent internal rate of return on its invested capital in each tranche, its working interest reverts to 15 percent . We are the operator of the joint venture assets and the transaction increases our well-level returns on the jointly developed wells. The first wells under the joint venture began producing in January 2017, and for the nine months ended September 30, 2017 , we recovered approximately $193 million related to the capital costs of the joint venture wells from the Investor and have drilled and completed 51 wells. Affiliate Supply Agreement. For the nine months ended September 30, 2017 and 2016 , we recorded approximately $1 million and $6 million in capital expenditures for amounts expended under supply agreements entered into with an affiliate of Apollo Global Management, LLC to provide certain materials used in our Eagle Ford drilling operations.

Basis of Presentation and Sig17

Basis of Presentation and Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Significant Accounting Policies	Basis of Presentation We prepared this Quarterly Report on Form 10-Q under the rules and regulations of the United States Securities and Exchange Commission (SEC) and in accordance with United States generally accepted accounting principles (U.S. GAAP) as it applies to interim financial statements. Because this is an interim period report presented using a condensed format, it does not include all of the disclosures required by U.S. GAAP and should be read along with our 2016 Annual Report on Form 10-K. The condensed consolidated financial statements as of September 30, 2017 and 2016 are unaudited. The consolidated balance sheet as of December 31, 2016 has been derived from the audited consolidated balance sheet included in our 2016 Annual Report on Form 10-K. In our opinion, all adjustments which are of a normal, recurring nature are reflected to fairly present these interim period results. The results for any interim period are not necessarily indicative of the expected results for the entire year. Significant Accounting Policies There were no changes in significant accounting policies as described in the 2016 Annual Report on Form 10-K other than in Accounting for Long-Term Incentive Compensation. In the first quarter of 2017, we adopted Accounting Standards Update (ASU) No. 2016-09, Improvements to Employee Share-Based Payment Accounting which simplifies several aspects of the accounting for share-based payment awards to employees including accounting for income taxes, forfeitures, statutory tax withholding requirements and classification in the statement of cash flows. As permitted under ASU 2016-09, we elected to account for forfeitures in compensation cost when they occur. Upon adoption of the ASU, we recorded a cumulative adjustment of approximately $1 million to the opening balance of retained earnings as of January 1, 2017.
New Accounting Pronouncements Issued But Not Yet Adopted	New Accounting Pronouncements Issued But Not Yet Adopted The following accounting standards have been issued but not yet adopted as of September 30, 2017 . Statement of Cash Flows. In August 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-15, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments, which addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows - Restricted Cash , which requires restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows. Retrospective application of these standards is required for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and early adoption is allowed. We do not anticipate that the adoption of this standard will have a material impact on our consolidated statement of cash flows. Leases. In February 2016, the FASB issued ASU No. 2016-02, Leases, which requires lessees to recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. Adoption of this standard is required beginning in the first quarter of 2019 and early adoption is allowed. We continue to evaluate our contracts and other agreements to assess the impact this update will have on our financial statements. Revenue Recognition. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which clarifies the principles for recognizing revenue and develops a common revenue standard for U.S. GAAP and International Financial Reporting Standards. Adoption of this standard is required beginning in the first quarter of 2018. Modified or full retrospective application of this standard is required upon adoption. We do not currently anticipate our adoption of this standard in 2018, utilizing the modified retrospective approach, will have a material impact on our financial statements. We continue to evaluate disclosure requirements and assess any potential changes to our accounting policies, business processes and/or controls as a result of the provisions of this standard.

Divestitures (Tables)

Divestitures (Tables)	9 Months Ended
	Sep. 30, 2017
Business Combinations [Abstract]
Summary of operating results of discontinued operations	Summarized operating results of our assets sold were as follows (in millions): Quarter ended September 30, 2016 Nine months ended September 30, 2016 Operating revenues $ — $ 26 Operating expenses Transportation costs — 7 Lease operating expense — 1 Depreciation, depletion and amortization — 16 Other expense — 5 Total operating expenses — 29 (Loss) gain on sale of assets (4 ) 79 (Loss) income before income taxes $ (4 ) $ 76

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of carrying amounts and estimated fair values of the financial instruments	The following table presents the carrying amounts and estimated fair values of our financial instruments: September 30, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value (in millions) Short-term debt $ 21 $ 19 $ — $ — Long-term debt (see Note 7) $ 3,982 $ 3,265 $ 3,856 $ 3,637 Derivative instruments $ 64 $ 64 $ 57 $ 57
Schedule of fair value associated with derivative financial instruments	The following table presents the fair value associated with our derivative financial instruments as of September 30, 2017 and December 31, 2016 . All of our derivative instruments are subject to master netting arrangements which provide for the unconditional right of offset for all derivative assets and liabilities with a given counterparty in the event of default. We present assets and liabilities related to these instruments in our consolidated balance sheets as either current or non-current assets or liabilities based on their anticipated settlement date, net of the impact of master netting agreements. On derivative contracts recorded as assets in the table below, we are exposed to the risk that our counterparties may not perform. Level 2 Derivative Assets Derivative Liabilities Gross Fair Value Balance Sheet Location Gross Fair Value Balance Sheet Location Impact of Netting Current Non- current Impact of Netting Current Non- current (in millions) (in millions) September 30, 2017 Derivative instruments $ 75 $ (9 ) $ 53 $ 13 $ (11 ) $ 9 $ (2 ) $ — December 31, 2016 Derivative instruments $ 79 $ (17 ) $ 58 $ 4 $ (22 ) $ 17 $ (4 ) $ (1 )

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	9 Months Ended
	Sep. 30, 2017
Oil and Gas Exploration and Production Industries Disclosures [Abstract]
Schedule of Capitalized Costs of Proved and Unproven Properties [Table Text Block]	September 30, 2017 December 31, 2016 (in millions) Proved Eagle Ford $ 3,127 $ 3,001 Wolfcamp 2,678 2,415 Altamont 1,684 1,624 Total Proved 7,489 7,040 Unproved Wolfcamp 66 94 Altamont 62 60 Total Unproved 128 154 Less accumulated depletion 3,077 2,731 Net capitalized costs for oil and natural gas properties $ 4,540 $ 4,463
Schedule of changes in net asset retirement liability	Asset Retirement Obligations. We have legal asset retirement obligations associated with the retirement of our oil and natural gas wells and related infrastructure. We settle these obligations when production on those wells is exhausted, when we no longer plan to use them or when we abandon them. We accrue these obligations when we can estimate the timing and amount of their settlement. In estimating the liability associated with our asset retirement obligations, we utilize several assumptions, including a credit-adjusted risk-free rate between 7 percent and 9 percent on a significant portion of our obligations and a projected inflation rate of 2.5 percent . Changes in estimates represent changes to the expected amount and timing of payments to settle our asset retirement obligations. Typically, these changes primarily result from obtaining new information about the timing of our obligations to plug and abandon oil and natural gas wells and the costs to do so, or reassessing our assumptions in light of changing market conditions. The net asset retirement liability as of September 30, 2017 on our consolidated balance sheet in other current and non-current liabilities and the changes in the net liability from January 1 through September 30, 2017 were as follows: 2017 (in millions) Net asset retirement liability at January 1 $ 41 Liabilities settled (1 ) Accretion expense 3 Changes in estimate (5 ) Net asset retirement liability at September 30 $ 38

Long-Term Debt (Tables)

Long-Term Debt (Tables)	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Schedule of Extinguishment of Debt [Table Text Block]	In 2017 and 2016, we also repurchased additional debt as follows: Quarter ended September 30, Nine months ended September 30, 2017 2016 2017 2016 (in millions) Debt repurchased - face value (1) 101 75 157 812 Cash paid 76 47 118 407 Gain on extinguishment of debt (2)(3) 24 26 37 393 (1) In 2017, repurchases were associated with 2020 and 2023 senior unsecured notes. In 2016, repurchases were associated with certain senior unsecured notes and term loans. (2) Includes $1 million and $2 million , for the quarter and nine months ended September 30, 2017, respectively, and $1 million and $12 million for the quarter and nine months ended September 30, 2016, respectively, of non-cash expense related to eliminating associated unamortized debt issue costs. (3) For the nine months ended September 30, 2016, we also recorded a loss on the extinguishment of debt of approximately $9 million primarily related to eliminating a portion of the unamortized debt issue costs due to the reduction of our RBL borrowing base in May 2016.
Schedule of debt obligations	Listed below are our debt obligations as of the periods presented: Interest Rate September 30, 2017 December 31, 2016 (in millions) RBL credit facility - due May 24, 2019 (1) Variable $ 505 $ 370 Senior secured term loans: Due May 24, 2018 (2) Variable 21 21 Due April 30, 2019 (3) Variable 8 8 Due June 30, 2021 (4) Variable — 580 Senior secured notes: Due November 29, 2024 8.00% 500 500 Due February 15, 2025 8.00% 1,000 — Senior unsecured notes: Due May 1, 2020 9.375% 1,200 1,576 Due September 1, 2022 7.75% 250 250 Due June 15, 2023 6.375% 519 551 Total debt 4,003 3,856 Less short-term debt, net of debt issue costs of less than $1 million (21 ) — Total long-term debt 3,982 3,856 Less non-current portion of unamortized debt issue costs (49 ) (67 ) Total long-term debt, net $ 3,933 $ 3,789 (1) Carries interest at a specified margin over LIBOR of 2.50% to 3.50% , based on borrowing utilization. (2) Issued at 99% of par and carries interest at a specified margin over the LIBOR of 2.75% , with a minimum LIBOR floor of 0.75% . As of September 30, 2017 and December 31, 2016 , the effective interest rate of the term loan was 4.07% and 3.50% , respectively. (3) Carries interest at a specified margin over the LIBOR of 3.50% , with a minimum LIBOR floor of 1.00% . As of September 30, 2017 and December 31, 2016 , the effective interest rate for the term loan was 4.82% and 4.50% , respectively.

Long-Term Incentive Compensat22

Long-Term Incentive Compensation (Tables)	9 Months Ended
	Sep. 30, 2017
Retirement Benefits [Abstract]
Summary of changes in non-vested restricted shares	A summary of the changes in our non-vested restricted shares for the nine months ended September 30, 2017 is presented below: Number of Shares Weighted Average Grant Date Fair Value per Share Non-vested at December 31, 2016 6,326,788 $ 7.69 Granted 5,142,527 $ 4.28 Vested (2,144,100 ) $ 8.28 Forfeited (715,502 ) $ 7.10 Non-vested at September 30, 2017 8,609,713 $ 5.56
Share-based Compensation, Performance Shares Award Outstanding Activity [Table Text Block]	Performance Unit Awards. A summary of the changes in our performance unit awards for the nine months ended September 30, 2017 is presented below: Number of Awards Weighted Average Fair Value Non-vested at December 31, 2016 78,900 $ 97.77 Granted (1) 40,470 $ 36.57 Vested (22,302 ) $ 159.92 Forfeited (12,000 ) $ 159.92 Non-vested at September 30, 2017 85,068 $ 48.16 (1) Grant date fair value at March 16, 2017 is based on: (i) an expected term of 3 years, (ii) expected volatility of 96.71% , which is based upon the historical stock price volatility and (iii) a risk-free interest rate of 1.57% , based upon the yield on U.S. Treasury STRIPS over the expected term as of the grant date.

Basis of Presentation and Sig23

Basis of Presentation and Significant Accounting Policies Share Based Payment (Details) $ in Millions	Sep. 30, 2017USD ($)
Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption	$ (1)

Divestitures (Details)

Divestitures (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Divestitures
Payments to Acquire Oil and Gas Property and Equipment		$ (29)
Sale of Oil and Gas Property and Equipment Transportation Commitment Assumed by Buyer			$ 106
Proceeds from Sale of Property, Plant, and Equipment			420
Net Proceeds from Sale of Property, Plant, and Equipment			388
Disposal Group, Held-for-sale, Not Discontinued Operations [Member]
Summary of operating results of assets held for sale
Operating revenues	$ 0		26
Operating expenses
Transportation costs	0		7
Lease operating expense	0		1
Depreciation, depletion and amortization	0		16
Other expense	0		5
Total operating expenses	0		29
(Loss) gain on sale of assets	(4)		79
(Loss) income before income taxes	$ (4)		$ 76

Income Taxes Income Taxes (Deta

Income Taxes Income Taxes (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Taxes [Line Items]
Deferred Tax Assets, Valuation Allowance	$ 1,000,000,000		$ 1,000,000,000
Effective Income Tax Rate Reconciliation, Percent	4.00%	1.00%	6.00%	1.00%
Deferred Other Tax Expense (Benefit)	$ 24,000,000	$ 16,000,000	$ 36,000,000	$ (43,000,000)

Earnings Per Share Earnings Per

Earnings Per Share Earnings Per Share (Details) shares in Thousands	9 Months Ended
	Sep. 30, 2016shares
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Weighted Average Number Diluted Shares Outstanding Adjustment	1,000

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of carrying amounts and estimated fair values of the financial instruments (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Carrying amounts and estimated fair values of financial instruments
Debt, Current	$ 21	$ 0
Carrying Amount
Carrying amounts and estimated fair values of financial instruments
Debt, Noncurrent	3,982	3,856
Derivative instruments	64	57
Fair Value
Carrying amounts and estimated fair values of financial instruments
Short-term Debt, Fair Value	19	0
Long-term Debt, Fair Value	3,265	3,637
Derivative instruments	$ 64	$ 57

Fair Value Measurements - Sch28

Fair Value Measurements - Schedule of fair value associated with derivative financial instruments (Details) - Level 2 - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Derivative Assets
Gross Fair Value	$ 75	$ 79
Impact of Netting	(9)	(17)
Derivative Liabilities
Gross Fair Value	(11)	(22)
Impact of Netting	9	17
Current assets
Derivative Assets
Derivatives instruments	53	58
Non-current assets
Derivative Assets
Derivatives instruments	13	4
Current liabilities
Derivative Liabilities
Derivatives instruments	(2)	(4)
Non-current liabilities
Derivative Liabilities
Derivatives instruments	$ 0	$ (1)

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) BTU in Thousands, gal in Millions, $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017USD ($)Contract	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)BTUContractgalMMBbls	Sep. 30, 2016USD ($)	Dec. 31, 2016BTUgalMMBbls
Credit Derivatives [Line Items]
Derivative (loss) gain on oil and natural gas financial derivative instruments | $	$ (23)	$ 43	$ 92	$ (20)
Number of Contracts Designated as Accounting Hedges | Contract	0		0
Crude Oil Derivative [Member] | 2017 Fixed Price Swaps [Member] | Derivatives not designated as accounting hedges
Credit Derivatives [Line Items]
Nonmonetary notional amount (in MMBbls or MMGal) | MMBbls			2
Crude Oil Derivative [Member] | 2018 Fixed Price Swaps [Member] | Derivatives not designated as accounting hedges
Credit Derivatives [Line Items]
Nonmonetary notional amount (in MMBbls or MMGal) | MMBbls			9
Crude Oil Derivative [Member] | Fixed Price Swaps [Member] | Derivatives not designated as accounting hedges
Credit Derivatives [Line Items]
Nonmonetary notional amount (in MMBbls or MMGal) | MMBbls			11		16
Natural Gas Derivative [Member] | Derivatives not designated as accounting hedges
Credit Derivatives [Line Items]
Nonmonetary notional amount (in Btu) | BTU			42		36
Natural Gas Derivative [Member] | 2017 Fixed Price Swaps [Member] | Derivatives not designated as accounting hedges
Credit Derivatives [Line Items]
Nonmonetary notional amount (in Btu) | BTU			9
Natural Gas Derivative [Member] | 2018 Fixed Price Swaps [Member] | Derivatives not designated as accounting hedges
Credit Derivatives [Line Items]
Nonmonetary notional amount (in Btu) | BTU			26
Natural Gas Derivative [Member] | 2019 Fixed Price Swaps [Member] | Derivatives not designated as accounting hedges
Credit Derivatives [Line Items]
Nonmonetary notional amount (in Btu) | BTU			7
Natural Gas Liquids [Member] | Derivatives not designated as accounting hedges
Credit Derivatives [Line Items]
Nonmonetary notional amount (in MMBbls or MMGal) | gal			117
Natural Gas Liquids [Member] | 2017 Fixed Price Swaps [Member] | Derivatives not designated as accounting hedges
Credit Derivatives [Line Items]
Nonmonetary notional amount (in MMBbls or MMGal) | gal			25
Natural Gas Liquids [Member] | 2018 Fixed Price Swaps [Member] | Derivatives not designated as accounting hedges
Credit Derivatives [Line Items]
Nonmonetary notional amount (in MMBbls or MMGal) | gal			92
Ethane Derivative [Member] | Derivatives not designated as accounting hedges
Credit Derivatives [Line Items]
Nonmonetary notional amount (in MMBbls or MMGal) | gal					108

Property, Plant and Equipment30

Property, Plant and Equipment (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Oil and Gas Exploration and Production Industries Disclosures [Abstract]
Total property, plant and equipment, net	$ 4,568		$ 4,568		$ 4,498
Restructuring Cost and Reserve [Line Items]
Oil and Gas Property, Successful Effort Method, Net	4,540		4,540		$ 4,463
Unproved Oil and Natural Gas Properties
Increase (Decrease) in Unproved Oil and Gas Property Successful Effort Method			51
Amortization of unproved leasehold costs	2	$ 1	$ 4	$ 1
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Projected inflation rate (as a percent)			2.50%
Changes in net asset retirement liability
Net asset retirement liability at January 1			$ 41
Liabilities settled			(1)
Accretion expense			3
Changes in Estimate			(5)
September 30, 2017	38		38
Capitalized Interest
Capitalized interest	$ 1		$ 3
Minimum
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Credit-adjusted risk-free rate (as a percent)			7.00%
Maximum
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Credit-adjusted risk-free rate (as a percent)			9.00%

Property, Plant and Equipment P

Property, Plant and Equipment Proved & Unproved Capitalized Costs (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Capitalized Costs, Total Proved Properties	$ 7,489	$ 7,040
Capitalized Costs, Total Unproved Properties	128	154
Capitalized Costs, Accumulated Depreciation, Depletion, Amortization and Valuation Allowance Relating to Oil and Gas Producing Activities	3,077	2,731
Oil and Gas Property, Successful Effort Method, Net	4,540	4,463
Eagle Ford [Member]
Property, Plant and Equipment [Line Items]
Capitalized Costs, Total Proved Properties	3,127	3,001
Wolfcamp [Member]
Property, Plant and Equipment [Line Items]
Capitalized Costs, Total Proved Properties	2,678	2,415
Capitalized Costs, Total Unproved Properties	66	94
Altamont [Member]
Property, Plant and Equipment [Line Items]
Capitalized Costs, Total Proved Properties	1,684	1,624
Capitalized Costs, Total Unproved Properties	$ 62	$ 60

Long-Term Debt (Details)

Long-Term Debt (Details)	Apr. 24, 2017	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Nov. 01, 2017USD ($)	Dec. 31, 2016USD ($)	May 05, 2016USD ($)
Debt and Available Credit Facility
Debt Instrument, Repurchased Face Amount		$ 101,000,000	$ 75,000,000	$ 101,000,000	$ 75,000,000
Net Proceeds from Sale of Property, Plant, and Equipment					388,000,000
Total long-term debt, net		3,933,000,000		3,933,000,000			$ 3,789,000,000
Repayments of Debt				118,000,000	407,000,000
Debt Instrument, Repurchase Amount		157,000,000		157,000,000
Payments of Debt Issuance Costs				21,000,000	24,000,000
Gain/Loss on extinguishment of debt		(24,000,000)	(26,000,000)	16,000,000	(384,000,000)
Deferred Finance Costs, Net		$ 57,000,000		$ 57,000,000			77,000,000
RatioOfFirstLienDebtToEBITDAX		0.66		0.66
RatioOfDebtToEBITDAX		5.21		5.21
Short-term Debt, net of debt issue costs		$ (21,000,000)		$ (21,000,000)			0
Debt Covenant Debt Repurchase Limit		885,000,000		$ 885,000,000				$ 350,000,000
Minimum
Debt and Available Credit Facility
Debt Covenant Debt to Earnings before Interest, Taxes, Depreciation, Amortization and Exploration Expense Ratio	1			1
Maximum Covenant
Debt and Available Credit Facility
Debt Covenant Debt to Earnings before Interest, Taxes, Depreciation, Amortization and Exploration Expense Ratio	3			4.5
RBL credit facility - due May 24, 2019
Debt and Available Credit Facility
Long-term debt, net		505,000,000		$ 505,000,000			370,000,000
Gain/Loss on extinguishment of debt			9,000,000		9,000,000
Write off of Deferred Debt Issuance Cost		(1,000,000)		(2,000,000)
Deferred Finance Costs, Net		8,000,000		8,000,000			10,000,000
Borrowing capacity		1,437,000,000		1,437,000,000
Letters of credit outstanding		19,000,000		19,000,000
Remaining capacity		913,000,000		$ 913,000,000
RBL credit facility - due May 24, 2019 | London Interbank Offered Rate LIBOR
Debt and Available Credit Facility
Reference rate for variable interest rate				LIBOR
Senior Secured Term Loans and Senior Notes [Member]
Debt and Available Credit Facility
Deferred Finance Costs, Net		49,000,000		$ 49,000,000			67,000,000
Senior secured term loan - due May 24, 2018
Debt and Available Credit Facility
Long-term debt, net		$ 21,000,000		$ 21,000,000			$ 21,000,000
Debt instrument issuance as a percentage of the par value		99.00%		99.00%
Effective interest rate (as a percent)		4.07%		4.07%			3.50%
Deferred Finance Costs, Net		$ 1,000,000		$ 1,000,000
Senior secured term loan - due May 24, 2018 | London Interbank Offered Rate LIBOR
Debt and Available Credit Facility
Reference rate for variable interest rate				LIBOR
Specified margin on reference rate (as a percent)				2.75%
Senior secured term loan - due May 24, 2018 | London Interbank Offered Rate LIBOR | Minimum
Debt and Available Credit Facility
Reference rate for variable interest rate				LIBOR
Reference rate floor for variable interest rate (as a percent)		0.75%		0.75%
Senior secured term loan - due April 30, 2019
Debt and Available Credit Facility
Long-term debt, net		$ 8,000,000		$ 8,000,000			$ 8,000,000
Effective interest rate (as a percent)		4.82%		4.82%			4.50%
Senior secured term loan - due April 30, 2019 | London Interbank Offered Rate LIBOR
Debt and Available Credit Facility
Specified margin on reference rate (as a percent)				3.50%
Senior secured term loan - due April 30, 2019 | London Interbank Offered Rate LIBOR | Minimum
Debt and Available Credit Facility
Reference rate for variable interest rate				LIBOR
Senior secured term loan - due April 30, 2019 | London Interbank Offered Rate LIBOR | Maximum Covenant
Debt and Available Credit Facility
Reference rate for variable interest rate				LIBOR
Senior Secured Term Loan Due30 June2021 [Member] [Domain]
Debt and Available Credit Facility
Long-term debt, net		$ 0		$ 0			$ 580,000,000
Senior Secured Term Loan Due30 June2021 [Member] [Domain] | London Interbank Offered Rate LIBOR
Debt and Available Credit Facility
Effective interest rate (as a percent)							9.75%
Senior Secured Note Due 29 November 2024 [Member]
Debt and Available Credit Facility
Interest rate (as a percent)		8.00%		8.00%
Long-term debt, net		$ 500,000,000		$ 500,000,000			$ 500,000,000
Senior Secured Note Due 15 February 2025 [Member]
Debt and Available Credit Facility
Interest rate (as a percent)		8.00%		8.00%
Long-term debt, net		$ 1,000,000,000		$ 1,000,000,000			0
Gain/Loss on extinguishment of debt				(53,000,000)
Write off of Deferred Debt Issuance Cost				$ (30,000,000)
Senior unsecured notes - due May 1, 2020
Debt and Available Credit Facility
Interest rate (as a percent)		9.375%		9.375%
Long-term debt, net		$ 1,200,000,000		$ 1,200,000,000			1,576,000,000
Debt Instrument, Repurchase Amount		$ 250,000,000		$ 250,000,000
Senior Unsecured Note Due1 September2022 [Member]
Debt and Available Credit Facility
Interest rate (as a percent)		7.75%		7.75%
Long-term debt, net							250,000,000
Senior unsecured notes - due September 1, 2022
Debt and Available Credit Facility
Repayments of Debt			47,000,000
Debt Instrument, Repurchase Amount			812,000,000		812,000,000
Gain/Loss on extinguishment of debt			(26,000,000)	$ (37,000,000)	(393,000,000)
Write off of Deferred Debt Issuance Cost			$ (1,000,000)		$ (12,000,000)
Senior Notes [Member]
Debt and Available Credit Facility
Repayments of Debt		$ 76,000,000
Gain/Loss on extinguishment of debt		$ (24,000,000)
Senior unsecured notes - due June 15, 2023
Debt and Available Credit Facility
Interest rate (as a percent)		6.375%		6.375%
Long-term debt, net		$ 519,000,000		$ 519,000,000			551,000,000
EP Energy Global L L C [Member]
Debt and Available Credit Facility
Long-term debt, net		3,982,000,000		3,982,000,000			3,856,000,000
Debt, Long-term and Short-term, Combined Amount		$ 4,003,000,000		4,003,000,000			$ 3,856,000,000
EP Energy Global L L C [Member] | RBL credit facility - due May 24, 2019
Debt and Available Credit Facility
Repayments of Lines of Credit				$ 111,000,000
EP Energy Global L L C [Member] | RBL credit facility - due May 24, 2019 | London Interbank Offered Rate LIBOR | Minimum
Debt and Available Credit Facility
Specified margin on reference rate (as a percent)				2.50%
EP Energy Global L L C [Member] | RBL credit facility - due May 24, 2019 | London Interbank Offered Rate LIBOR | Maximum Covenant
Debt and Available Credit Facility
Specified margin on reference rate (as a percent)				3.50%
EP Energy Global L L C [Member] | Senior secured term loan - due April 30, 2019 | London Interbank Offered Rate LIBOR | Minimum
Debt and Available Credit Facility
Reference rate floor for variable interest rate (as a percent)		1.00%		1.00%
Subsequent Event [Member] | RBL credit facility - due May 24, 2019
Debt and Available Credit Facility
Borrowing capacity						$ 1,400,000,000

Commitments and Contingencies -

Commitments and Contingencies - Legal Matters (Details) $ in Millions	9 Months Ended
	Sep. 30, 2017USD ($)
Legal Matters
LegalLiabilityContingencyLossExposureNotAccrued	$ 21
Accrual for Taxes Other than Income Taxes	41
Indemnification and Other Matters
Legal Matters
Amount accrued	5
Maximum | Legal Matters
Legal Matters
Amount accrued	$ 7

Long-Term Incentive Compensat34

Long-Term Incentive Compensation (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract]
Compensation expense	$ 5	$ 5	$ 10	$ 15
Stock Issued During Period, Value, Share-based Compensation, Forfeited			7
Unrecognized compensation expense	51		51
Additional unrecognized compensation cost to be recognized in rest of 2017	6		6
Unrecognized compensation cost to be recognized over the remaining requisite service periods subsequent to 2017	33		33
Unrecognized compensation cost to be recognized upon a specified capital transaction	$ 12		$ 12
Restricted stock
Number of Shares
Non-vested at December 31, 2016 (in shares)			6,326,788
Granted (in shares)			5,142,527
Vested (in shares)			(2,144,100)
Forfeited (in shares)			(715,502)
Non-vested at September 30, 2017	8,609,713		8,609,713
Weighted Average Grant Date Fair Value per Share
Nonvested (in dollars per share)	$ 5.56		$ 5.56		$ 7.69
Granted (in dollars per share)			4.28
Vested (in dollars per share)			8.28
Forfeitures (in dollars per share)			$ 7.10

Long-Term Incentive Compensat35

Long-Term Incentive Compensation Schedule of Performance Unit Activity (Details) - USD ($) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted Average Number Diluted Shares Outstanding Adjustment		1,000,000
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	96.71%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	1.57%
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Vested	$ 4
Non-vested at December 31, 2016 (in shares)	78,900
Granted (in shares)	40,470
Vested (in shares)	(22,302)
Forfeited (in shares)	(12,000)
Non-vested at September 30, 2017	85,068
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value	$ 48.16		$ 97.77
Granted (in dollars per share)	36.57
Vested (in dollars per share)	159.92
Forfeitures (in dollars per share)	$ 159.92
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Nonvested	$ 2

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Millions	9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2017
Related party transactions
PercentOfWorkingInterestExchanged	50.00%
Capital From Investor	$ 450
Percent Of Capital From Investor	60.00%
Return on Invested Capital	12.00%
PercentOfWorkingInterest	15.00%
Recovered Capital Costs from Joint Venture	$ 193
Capital expenditures	405	$ 398
Disposal Groups Noncore Oil And Natural Gas Properties Located In Eagle Ford Southern And Central Divisions [Member] | Affiliate Supply Agreement
Related party transactions
Capital expenditures	$ 1	$ 6
Subsequent Event [Member]
Related party transactions
Additional transaction fee paid			$ 4