EP Energy (EPEGQ) 10-Q 9 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	Apr. 30, 2018
Entity Information [Line Items]
Entity Registrant Name	EP Energy Corp
Entity Central Index Key	1,584,952
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Class A
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		251,100,549
Class B
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		265,329

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Operating revenues
Oil	$ 252	$ 204
Natural gas	22	30
NGLs	26	23
Financial derivatives	(14)	70
Total operating revenues	286	327
Operating expenses
Oil and natural gas purchases	0	1
Transportation costs	25	29
Lease operating expense	39	40
General and administrative	19	20
Depreciation, depletion and amortization	120	126
Exploration and other expense	1	3
Taxes, other than income taxes	20	19
Total operating expenses	224	238
Operating income	62	89
Gain (loss) on extinguishment/modification of debt	41	(53)
Interest expense	(85)	(83)
Income (loss) before income taxes	18	(47)
Income tax expense	0	0
Net income (loss)	$ 18	$ (47)
Basic and diluted net income (loss) per common share
Net income (loss) (in dollars per share)	$ 0.07	$ (0.19)
Basic and diluted weighted average common shares outstanding (in shares)	247	245

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 19	$ 27
Restricted cash	1	18
Accounts receivable
Customer, net of allowance of less than $1 in 2018 and 2017	166	158
Other, net of allowance of $1 in 2018 and 2017	10	13
Income tax receivable	5	9
Materials and supplies	20	16
Derivative instruments	11	18
Assets held for sale	0	172
Prepaid assets	5	35
Total current assets	237	466
Property, plant and equipment, at cost
Oil and natural gas properties	7,978	7,532
Other property, plant and equipment	70	69
Total property, plant and equipment, gross	8,048	7,601
Less accumulated depreciation, depletion and amortization	3,307	3,179
Total property, plant and equipment, net	4,741	4,422
Other assets
Derivative instruments	5	4
Unamortized debt issue costs - revolving credit facility	5	6
Other	1	2
Total other assets	11	12
Total assets	4,989	4,900
Accounts payable
Trade	90	88
Other	170	158
Derivative instruments	15	17
Accrued interest	68	62
Liabilities related to assets held for sale	0	2
Short-term debt, net of debt issue costs	21	21
Other accrued liabilities	72	100
Total current liabilities	436	448
Long-term debt, net of debt issue costs	4,104	4,022
Other long-term liabilities
Asset retirement obligations	34	33
Other	5	5
Total non-current liabilities	4,143	4,060
Commitments and contingencies (Note 8)
Stockholders’ equity
Preferred stock, $0.01 par value; 50 million shares authorized; no shares issued or outstanding	0	0
Treasury stock (at cost), one million shares at March 31, 2018 and 0.7 million shares at December 31, 2017	(4)	(3)
Additional paid-in capital	3,527	3,526
Accumulated deficit	(3,116)	(3,134)
Total stockholders’ equity	410	392
Total liabilities and equity	4,989	4,900
Class A
Stockholders’ equity
Common Stock	3	3
Class B
Stockholders’ equity
Common Stock	$ 0	$ 0

CONDENSED CONSOLIDATED BALANCE4

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Customer receivables, allowance (less than)	$ 1	$ 1
Other receivables, allowance	$ 1	$ 1
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Treasury stock (at cost) (in shares)	1,000,000	700,000
Class A
Common shares, par value (in dollars per share)	$ 0.01	$ 0.01
Common shares, shares authorized (in shares)	550,000,000	550,000,000
Common shares, shares issued (in shares)	251,000,000	252,000,000
Common shares, shares outstanding (in shares)	251,000,000	252,000,000
Class B
Common shares, par value (in dollars per share)	$ 0.01	$ 0.01
Common shares, shares authorized (in shares)	300,000	300,000
Common shares, shares issued (in shares)	300,000	300,000
Common shares, shares outstanding (in shares)	300,000	300,000

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities
Net income (loss)	$ 18	$ (47)
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Depreciation, depletion and amortization	120	126
(Gain) loss on extinguishment/modification of debt	(41)	53
Other non-cash income items	5	5
Asset and liability changes
Accounts receivable	(6)	(9)
Accounts payable	(15)	2
Derivative instruments	4	(43)
Accrued interest	6	48
Other asset changes	7	1
Other liability changes	(11)	(19)
Net cash provided by operating activities	87	117
Cash flows from investing activities
Cash paid for capital expenditures	(173)	(119)
Proceeds from the sale of assets	167	0
Cash paid for acquisitions	(223)	0
Net cash used in investing activities	(229)	(119)
Cash flows from financing activities
Proceeds from issuance of long-term debt	460	1,125
Repayments and repurchases of long-term debt	(280)	(1,086)
Fees/costs on debt exchange	(62)	0
Debt issue costs	0	(19)
Other	(1)	(3)
Net cash provided by financing activities	117	17
Change in cash, cash equivalents and restricted cash	(25)	15
Cash, cash equivalents and restricted cash - beginning of period	45	20
Cash, cash equivalents and restricted cash - end of period	$ 20	$ 35

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - 3 months ended Mar. 31, 2018 - USD ($) shares in Millions, $ in Millions	Total	Treasury Stock	Additional Paid-in Capital	Retained Earnings (Accumulated Deficit)	Class A Stock	Class A StockCommon Stock	Class B Stock	Class B StockCommon Stock
Balance at beginning of period at Dec. 31, 2017	$ 392	$ (3)	$ 3,526	$ (3,134)		$ 3		$ 0
Balance at beginning of period (in shares) at Dec. 31, 2017					252	252	0.3	0.3
Increase (Decrease) in Stockholders' Equity
Share-based compensation	0	(1)	1
Share-based compensation (in shares)						(1)
Net income	18			18
Balance at end of period at Mar. 31, 2018	$ 410	$ (4)	$ 3,527	$ (3,116)		$ 3		$ 0
Balance at end of period (in shares) at Mar. 31, 2018					251	251	0.3	0.3

Basis of Presentation and Signi

Basis of Presentation and Significant Accounting Policies	3 Months Ended
	Mar. 31, 2018
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 2017 Annual Report on Form 10-K. The condensed consolidated financial statements as of March 31, 2018 and 2017 are unaudited. The consolidated balance sheet as of December 31, 2017 has been derived from the audited consolidated balance sheet included in our 2017 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 In the first quarter of 2018, we adopted Accounting Standards Update (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. As permitted under ASU No. 2014-09, we elected to utilize the modified retrospective approach, which did not have a material impact on our financial statements. There were no other changes in significant accounting policies as described in the 2017 Annual Report on Form 10-K . New Accounting Pronouncements Issued But Not Yet Adopted The following accounting standards have been issued but not yet adopted as of March 31, 2018 . Leases. In February 2016, the Financial Accounting Standards Board (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.

Acquisitions and Divestitures

Acquisitions and Divestitures	3 Months Ended
	Mar. 31, 2018
Business Combinations [Abstract]
Acquisitions and Divestitures	Acquisitions and Divestitures Acquisitions . In January 2018, we completed the acquisition of producing properties and undeveloped acreage in Eagle Ford for approximately $246 million , after customary adjustments. Of the total purchase price, we paid $221 million upon closing during the first quarter of 2018 and $25 million to the buyer as a deposit in December 2017. Our consolidated balance sheet reflects our preliminary allocation of the purchase price to the underlying acquired proved properties. No goodwill or bargain purchase was recorded on the acquisition. Divestitures. In February 2018, we completed the sale of certain assets in the Altamont area for approximately $177 million , after customary adjustments. Of the total sales price, we received a deposit of $18 million in December 2017 (reflected in restricted cash in the balance sheet) and additional cash proceeds of $159 million upon closing. We treated this sale as a normal retirement reflecting the difference between net cash proceeds and the underlying net book value of the assets sold in accumulated depreciation rather than recording a gain on sale of assets. As of December 31, 2017, we classified the assets and liabilities associated with the assets to be sold as held for sale in our consolidated balance sheet.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2018
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 both of the quarters ended March 31, 2018 and 2017, our effective tax rates were approximately 0% . Our effective tax rates in 2018 and 2017 differed from the statutory rates of 21% and 35% , respectively, primarily as a result of our recognition of a full valuation allowance on our net deferred tax assets. For the quarters ended March 31, 2018 and 2017, we recorded adjustments to the valuation allowance on our net deferred tax assets, which offset deferred income tax expense by $5 million and deferred income tax benefit by $15 million , respectively. During 2017, we recorded a provisional effect of the Tax Cuts and Jobs Act (the Act). While there was no overall impact on our financial statements from the Act, we are still analyzing certain aspects of the Act with available guidance and have no adjustments to the recorded provisional amounts. 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 $639 million as of March 31, 2018 . For the quarter ended March 31, 2018, we received federal and state refunds of $5 million . The Company’s and certain subsidiaries’ income tax years after 2013 remain open and subject to examination by both federal and state tax authorities.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2018
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 our stock options, restricted stock, performance share unit awards and performance unit awards. For the quarter ended March 31, 2018 , less than one million shares are included as dilutive securities in our calculation of diluted earnings per share. For the quarter ended March 31, 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.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Fair Value Measurements	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 March 31, 2018 and December 31, 2017 , 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: March 31, 2018 December 31, 2017 Carrying Amount Fair Value Carrying Amount Fair Value (in millions) Short-term debt $ 21 $ 20 $ 21 $ 19 Long-term debt (see Note 7) $ 4,197 $ 3,226 $ 4,072 $ 3,248 Derivative instruments $ 1 $ 1 $ 5 $ 5 As of March 31, 2018 and December 31, 2017 , 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 March 31, 2018 , we had derivative contracts in the form of fixed price swaps and three-way collars on 14 MMBbls of oil ( 11 MMBbls in 2018 and 3 MMBbls in 2019). In addition to our oil derivatives, we had derivative contracts in the form of fixed price swaps and options on 26 TBtu of natural gas ( 19 TBtu in 2018 and 7 TBtu in 2019) and 69 MMGal of ethane and propane fixed price swaps in 2018. As of December 31, 2017 , we had derivative contracts for 14 MMBbls of oil, 33 TBtu of natural gas and 92 MMGal of ethane and propane. 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 March 31, 2018 and December 31, 2017 . 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) March 31, 2018 Derivative instruments $ 33 $ (17 ) $ 11 $ 5 $ (32 ) $ 17 $ (15 ) $ — December 31, 2017 Derivative instruments $ 33 $ (11 ) $ 18 $ 4 $ (28 ) $ 11 $ (17 ) $ — For the quarters ended March 31, 2018 and 2017 , we recorded a derivative loss of $14 million and a derivative gain of $70 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	3 Months Ended
	Mar. 31, 2018
Oil and Gas Exploration and Production Industries Disclosures [Abstract]
Property, Plant and Equipment	Property, Plant and Equipment Oil and Natural Gas Properties . As of March 31, 2018 and December 31, 2017 , we had approximately $4.7 billion and $4.4 billion , respectively, 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: March 31, 2018 December 31, 2017 (in millions) Proved Eagle Ford $ 3,597 $ 3,219 Permian 2,747 2,705 Altamont 1,569 1,542 Total Proved 7,913 7,466 Unproved Permian 65 66 Less accumulated depletion (3,263 ) (3,137 ) Net capitalized costs for oil and natural gas properties $ 4,715 $ 4,395 For the quarters ended March 31, 2018 and 2017 , we recorded less than $1 million and $1 million , respectively, of amortization of unproved leasehold costs in exploration expense in our consolidated income statements. Suspended well costs were not material as of March 31, 2018 or December 31, 2017 . We evaluate capitalized costs related to proved properties upon a triggering event (such as a significant continued 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 relative to forward commodity prices 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 in the table below 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 March 31, 2018 on our consolidated balance sheet in other current and non-current liabilities and the changes in the net liability from January 1 through March 31, 2018 were as follows: 2018 (in millions) Net asset retirement liability at January 1 $ 35 Accretion expense 1 Net asset retirement liability at March 31 $ 36 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 using a weighted average interest rate on our outstanding borrowings. Capitalized interest for both of the quarters ended March 31, 2018 and 2017 was approximately $1 million .

Long-Term Debt

Long-Term Debt	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt Listed below are our debt obligations as of the periods presented: Interest Rate March 31, 2018 December 31, 2017 (in millions) RBL credit facility - due May 24, 2019 (1) Variable $ 775 $ 595 Senior secured term loans: Due May 24, 2018 (2)(3) Variable 21 21 Due April 30, 2019 (4) Variable 8 8 Senior secured notes: Due May 1, 2024 9.375% 1,092 — Due November 29, 2024 8.00% 500 500 Due February 15, 2025 8.00% 1,000 1,000 Senior unsecured notes: Due May 1, 2020 9.375% 246 1,200 Due September 1, 2022 7.75% 196 250 Due June 15, 2023 6.375% 380 519 Total debt 4,218 4,093 Less short-term debt, net of debt issue costs of less than $1 million (21 ) (21 ) Total long-term debt 4,197 4,072 Less debt discount and non-current portion of unamortized debt issue costs (93 ) (50 ) Total long-term debt, net $ 4,104 $ 4,022 (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 LIBOR of 2.75% , with a minimum LIBOR floor of 0.75% . As of March 31, 2018 and December 31, 2017 , the effective interest rate of the term loan was 4.54% and 4.23% , respectively. (3) In April 2018, we retired the note in full. (4) Carries interest at a specified margin over the LIBOR of 3.50% , with a minimum LIBOR floor of 1.00% . As of March 31, 2018 and December 31, 2017 , the effective interest rate for the term loan was 5.48% and 4.98% , respectively. During the first quarter of 2018, we completed an exchange of $954 million , $54 million and $139 million of the outstanding amount of our senior unsecured notes maturing in May 2020, September 2022 and June 2023, respectively, for new 9.375% senior secured notes maturing in 2024 with an aggregate principal amount of approximately $1,092 million . The exchange transaction was accounted for as a modification of debt for our senior unsecured notes maturing in May 2020 and an extinguishment of debt for our senior unsecured notes maturing in September 2022 and June 2023. In conjunction with the exchange, we incurred approximately $62 million in related fees, of which we (i) recorded $48 million as debt discount primarily reflecting amounts paid to our 2020 noteholders associated with the exchange of our 2020 notes, (ii) capitalized $2 million as debt issuance costs, and (iii) recorded $12 million in loss on modification of debt. In addition, we recorded a gain on extinguishment of debt in the amount of $53 million primarily associated with retiring a portion of our 2022 and 2023 notes at less than face value, net of the write-off of $2 million in previously unamortized debt issue costs. 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 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). 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). Unamortized Debt Issue Costs and Debt Discounts. As of March 31, 2018 , we had total debt discount of $47 million associated with our senior secured notes maturing in 2024 and as of December 31, 2017 , we had less than $1 million . As of March 31, 2018 and December 31, 2017 , we had total unamortized debt issue costs of $51 million and $56 million , respectively. Of these amounts, $5 million and $6 million , respectively, are associated with our RBL Facility and $46 million and $50 million , respectively, are associated with our senior secured term loans and senior notes. Debt discounts and unamortized debt issue costs are reflected net of the face value of debt on our consolidated balance sheet. Reserve-based Loan Facility. We have a $1.36 billion RBL Facility in place which allows us to borrow funds or issue letters of credit (LC’s). The facility matures in May 2019. As of March 31, 2018 , we had $565 million of capacity remaining with approximately $19 million of LC's issued and approximately $775 million outstanding under the RBL 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 January 2018, as a result of the debt exchange, our borrowing base was reduced from $1.4 billion to $1.36 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 RBL Facility and our ability to incur additional indebtedness is subject to various financial and non-financial covenants and restrictions. Our current financial covenants require us to maintain a ratio of first lien debt to EBITDAX not exceeding 3.0 to 1.0 . As of March 31, 2018 , we were in compliance with our debt covenants, and our ratio of first lien debt to EBITDAX was 1.09 x. In the second quarter of 2019, our RBL Facility matures and our financial covenant will revert to a 4.5 to 1.0 debt to EBITDAX requirement absent a renegotiation of its terms and covenants. As of March 31, 2018 , our ratio of total net debt to EBITDAX was 5.93 x. Based on our current outlook, including forecasted EBITDAX and expected borrowings to fund capital expenditures, we anticipate this ratio will continue to exceed the 4.5 to 1.0 total net debt to EBITDAX ratio for the remainder of 2018 through the second quarter of 2019. We are currently working to renew and extend the RBL Facility and renegotiate the required covenants thereunder. Based on actions and negotiations to date, we believe that we will be successful in extending the RBL Facility and renegotiating its various covenants. Should we not be successful, however, we believe we have other ways to mitigate the condition, including the issuance of new debt, equity, or selling assets. Under our various debt agreements, we are limited in our ability to repurchase certain tranches of non-RBL Facility debt. Under our new 2024 senior secured notes issued January 2018, we are limited in our ability to repurchase certain tranches of unsecured notes and under our RBL Facility, we are limited in our ability to repurchase certain tranches of secured and unsecured debt. Certain other covenants and restrictions, among other things, also limit or place certain conditions on our ability to incur or guarantee additional indebtedness, make restricted payments, pay dividends on equity interests, redeem, repurchase or retire equity interests or subordinated indebtedness, sell assets, make investments, create certain liens, prepay debt obligations, engage in certain transactions with affiliates, and enter into certain hedging agreements.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018 , we had approximately $5 million accrued for all outstanding legal matters. FairfieldNodal v. EP Energy E&P Company , L.P. On March 3, 2014, Fairfield filed suit against one of our subsidiaries in the 157th District Court of Harris County, Texas, 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 filed a petition for review in the Texas Supreme Court in December 2017. At this time, we are unable to estimate the amount or range of possible loss, if any, on this matter. Weyerhaeuser Company v. Pardee Minerals LLC, et al. On July 5, 2017, Weyerhaeuser filed suit against one of our subsidiaries, among other defendants, in the United States District Court for the Western District of Louisiana. Weyerhaeuser seeks to recoup the value of production (approximately $19 million ) plus judicial interest (approximately $11 million at this time) from certain wells drilled by EP Energy between 2002 and 2013 on leases Weyerhaeuser claims were invalid. Weyerhaeuser alleges that lessees prior to EP Energy had not drilled wells in good faith to perpetuate the associated mineral servitude (rights conveyed to produce minerals), rendering EP Energy’s subsequent lease invalid. A trial date has been set for December 10, 2018. 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 March 31, 2018 , we had approximately $4 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 March 31, 2018 , we had approximately $43 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 2017 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	3 Months Ended
	Mar. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Long-Term Incentive Compensation	Long-Term Incentive Compensation Our long-term incentive (LTI) programs consist of restricted stock, stock options and performance shares/units awards. Refer to our 2017 Annual Report on Form 10-K for further description regarding the terms and details of these awards. Restricted Stock. A summary of the changes in our non-vested restricted shares for the quarter ended March 31, 2018 is presented below: Number of Shares Weighted Average Grant Date Fair Value per Share Non-vested at December 31, 2017 5,283,986 $ 4.93 Granted 327,796 $ 1.80 Vested (1,695,087 ) $ 5.90 Forfeited (496,360 ) $ 4.96 Non-vested at March 31, 2018 3,420,335 $ 4.15 Performance Share Units. In 2017, we granted 912,000 performance share units (PSUs) to certain members of EP Energy’s management team. PSUs will be earned based upon achievement of specified stock price goals over a four -year performance period. Our PSUs are treated as an equity award with the expense recognized on an accelerated basis over the life of the award. Performance Unit Awards. Our performance unit awards are based upon achievement of a level of total shareholder return and may be settled in either stock or cash at the election of the Board of Directors. These awards are treated as a liability award for accounting purposes with the expense recognized on an accelerated basis over the life of the award and fair value remeasured at each reporting period. During the quarter ended March 31, 2018 , we made no payment in connection with awards that vested and had less than $1 million accrued related to unvested outstanding performance unit awards. Had all outstanding performance unit awards at March 31, 2018 vested and been settled in stock, no shares would have been issued. 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 $2 million and $(1) million , respectively, for the quarters ended March 31, 2018 and 2017 . Included in pre-tax compensation expense for the quarter ended March 31, 2017 was approximately $7 million of forfeitures. As of March 31, 2018 , we had unrecognized compensation expense of $25 million . We will recognize an additional $10 million related to our outstanding awards during the remainder of 2018, $13 million over the remaining requisite service periods subsequent to 2018 and $2 million should a specified capital transaction occur and the right to such amounts become non-forfeitable.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2018
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions Joint Venture. In 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 the Permian basin. 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 agreed to fund 60 percent of the estimated drilling, completion and equipping costs in the joint venture wells, divided into two approximately $225 million investment tranches, in exchange for a 50 percent working interest. 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 . Since January 2017, we have recovered approximately $215 million in capital costs from the Investor related to the first tranche, which we expect to complete in the second half of 2018. In April 2018, we amended the drilling joint venture to direct the second tranche investment to the Eagle Ford. The first wells in the second tranche are expected to begin producing later in 2018. We are the operator of the joint venture assets.

Basis of Presentation and Sig17

Basis of Presentation and Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	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 2017 Annual Report on Form 10-K. The condensed consolidated financial statements as of March 31, 2018 and 2017 are unaudited. The consolidated balance sheet as of December 31, 2017 has been derived from the audited consolidated balance sheet included in our 2017 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 and New Accounting Pronouncements Issued But Not Yet Adopted	Significant Accounting Policies In the first quarter of 2018, we adopted Accounting Standards Update (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. As permitted under ASU No. 2014-09, we elected to utilize the modified retrospective approach, which did not have a material impact on our financial statements. There were no other changes in significant accounting policies as described in the 2017 Annual Report on Form 10-K . New Accounting Pronouncements Issued But Not Yet Adopted The following accounting standards have been issued but not yet adopted as of March 31, 2018 . Leases. In February 2016, the Financial Accounting Standards Board (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.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2018
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: March 31, 2018 December 31, 2017 Carrying Amount Fair Value Carrying Amount Fair Value (in millions) Short-term debt $ 21 $ 20 $ 21 $ 19 Long-term debt (see Note 7) $ 4,197 $ 3,226 $ 4,072 $ 3,248 Derivative instruments $ 1 $ 1 $ 5 $ 5
Schedule of fair value associated with derivative financial instruments	The following table presents the fair value associated with our derivative financial instruments as of March 31, 2018 and December 31, 2017 . 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) March 31, 2018 Derivative instruments $ 33 $ (17 ) $ 11 $ 5 $ (32 ) $ 17 $ (15 ) $ — December 31, 2017 Derivative instruments $ 33 $ (11 ) $ 18 $ 4 $ (28 ) $ 11 $ (17 ) $ —

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	3 Months Ended
	Mar. 31, 2018
Oil and Gas Exploration and Production Industries Disclosures [Abstract]
Schedule of capitalized costs of proved and unproven properties	Our capitalized costs related to proved and unproved oil and natural gas properties by area were as follows: March 31, 2018 December 31, 2017 (in millions) Proved Eagle Ford $ 3,597 $ 3,219 Permian 2,747 2,705 Altamont 1,569 1,542 Total Proved 7,913 7,466 Unproved Permian 65 66 Less accumulated depletion (3,263 ) (3,137 ) Net capitalized costs for oil and natural gas properties $ 4,715 $ 4,395
Schedule of changes in net asset retirement liability	The net asset retirement liability as of March 31, 2018 on our consolidated balance sheet in other current and non-current liabilities and the changes in the net liability from January 1 through March 31, 2018 were as follows: 2018 (in millions) Net asset retirement liability at January 1 $ 35 Accretion expense 1 Net asset retirement liability at March 31 $ 36

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Schedule of debt obligations	Listed below are our debt obligations as of the periods presented: Interest Rate March 31, 2018 December 31, 2017 (in millions) RBL credit facility - due May 24, 2019 (1) Variable $ 775 $ 595 Senior secured term loans: Due May 24, 2018 (2)(3) Variable 21 21 Due April 30, 2019 (4) Variable 8 8 Senior secured notes: Due May 1, 2024 9.375% 1,092 — Due November 29, 2024 8.00% 500 500 Due February 15, 2025 8.00% 1,000 1,000 Senior unsecured notes: Due May 1, 2020 9.375% 246 1,200 Due September 1, 2022 7.75% 196 250 Due June 15, 2023 6.375% 380 519 Total debt 4,218 4,093 Less short-term debt, net of debt issue costs of less than $1 million (21 ) (21 ) Total long-term debt 4,197 4,072 Less debt discount and non-current portion of unamortized debt issue costs (93 ) (50 ) Total long-term debt, net $ 4,104 $ 4,022 (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 LIBOR of 2.75% , with a minimum LIBOR floor of 0.75% . As of March 31, 2018 and December 31, 2017 , the effective interest rate of the term loan was 4.54% and 4.23% , respectively. (3) In April 2018, we retired the note in full. (4) Carries interest at a specified margin over the LIBOR of 3.50% , with a minimum LIBOR floor of 1.00% . As of March 31, 2018 and December 31, 2017 , the effective interest rate for the term loan was 5.48% and 4.98% , respectively.

Long-Term Incentive Compensat21

Long-Term Incentive Compensation (Tables)	3 Months Ended
	Mar. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of changes in non-vested restricted shares	A summary of the changes in our non-vested restricted shares for the quarter ended March 31, 2018 is presented below: Number of Shares Weighted Average Grant Date Fair Value per Share Non-vested at December 31, 2017 5,283,986 $ 4.93 Granted 327,796 $ 1.80 Vested (1,695,087 ) $ 5.90 Forfeited (496,360 ) $ 4.96 Non-vested at March 31, 2018 3,420,335 $ 4.15

Acquisitions and Divestitures (

Acquisitions and Divestitures (Details) - USD ($)	1 Months Ended			3 Months Ended
	Feb. 28, 2018	Jan. 31, 2018	Dec. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Property, Plant and Equipment [Line Items]
Payments upon closing				$ 223,000,000	$ 0
Altamont
Property, Plant and Equipment [Line Items]
Sale price of assets	$ 177,000,000
Deposit received related to divestiture			$ 18,000,000
Additional cash proceeds	$ 159,000,000
Producing Propereties and Undeveloped Acreage
Property, Plant and Equipment [Line Items]
Purchase price		$ 246,000,000
Payments upon closing		221,000,000
Deposit paid in advance of acquisition			$ 25,000,000
Goodwill or bargain purchase recorded on acquisition		$ 0

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Effective tax rate	0.00%	0.00%
Statutory rate	21.00%	35.00%
Deferred income tax expense (benefit)	$ 5	$ (15)
Valuation allowance against net deferred tax assets	639
Federal and state refunds received	$ 5

Earnings Per Share (Details)

Earnings Per Share (Details) shares in Millions	3 Months Ended
	Mar. 31, 2018shares
Earnings Per Share [Abstract]
Shares included as dilutive securities in our calculation of diluted earnings per share (less than) (in shares)	1

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of carrying amounts and estimated fair values of the financial instruments (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Carrying amounts and estimated fair values of financial instruments
Long-term debt (see Note 7)	$ 4,197	$ 4,072
Carrying Amount
Carrying amounts and estimated fair values of financial instruments
Short-term debt	21	21
Long-term debt (see Note 7)	4,197	4,072
Derivative instruments	1	5
Fair Value
Carrying amounts and estimated fair values of financial instruments
Short-term debt	20	19
Long-term debt (see Note 7)	3,226	3,248
Derivative instruments	$ 1	$ 5

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) BTU in Thousands, gal in Millions, $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2018USD ($)BTUcontractgalMMBbls	Mar. 31, 2017USD ($)	Dec. 31, 2017BTUgalMMBbls
Credit Derivatives [Line Items]
Number of derivative contracts designated as accounting hedges | contract	0
Gain (loss) on derivative instruments | $	$ (14)	$ 70
Oil Derivative | Derivatives not designated as accounting hedges
Credit Derivatives [Line Items]
Volume notional amount | MMBbls	14		14
Oil Derivative | 2018 Fixed Price Swaps | Derivatives not designated as accounting hedges
Credit Derivatives [Line Items]
Volume notional amount | MMBbls	11
Oil Derivative | 2019 Fixed Price Swaps | Derivatives not designated as accounting hedges
Credit Derivatives [Line Items]
Volume notional amount | MMBbls	3
Natural Gas Derivative | Derivatives not designated as accounting hedges
Credit Derivatives [Line Items]
Energy notional amount | BTU	26		33
Natural Gas Derivative | 2018 Fixed Price Swaps | Derivatives not designated as accounting hedges
Credit Derivatives [Line Items]
Energy notional amount | BTU	19
Natural Gas Derivative | 2019 Fixed Price Swaps | Derivatives not designated as accounting hedges
Credit Derivatives [Line Items]
Energy notional amount | BTU	7
Ethane and Propane Derivative | Derivatives not designated as accounting hedges
Credit Derivatives [Line Items]
Volume notional amount | gal	69		92

Fair Value Measurements - Sch27

Fair Value Measurements - Schedule of fair value associated with derivative financial instruments (Details) - Level 2 - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Derivative Assets
Gross Fair Value	$ 33	$ 33
Impact of Netting	(17)	(11)
Derivative Liabilities
Gross Fair Value	(32)	(28)
Impact of Netting	17	11
Current assets
Derivative Assets
Derivatives instruments	11	18
Non-current assets
Derivative Assets
Derivatives instruments	5	4
Current liabilities
Derivative Liabilities
Derivatives instruments	(15)	(17)
Non-current liabilities
Derivative Liabilities
Derivatives instruments	$ 0	$ 0

Property, Plant and Equipment -

Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Oil and Gas Exploration and Production Industries Disclosures [Abstract]
Total property, plant and equipment, net	$ 4,741		$ 4,422
Amortization of unproved leasehold costs (less than)	$ 1	$ 1
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Projected inflation rate	2.50%
Capitalized Interest
Capitalized interest	$ 1	$ 1
Minimum
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Credit-adjusted risk-free rate	7.00%
Maximum
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Credit-adjusted risk-free rate	9.00%

Property, Plant and Equipment

Property, Plant and Equipment - Proved and Unproved Capitalized Costs (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Proved	$ 7,913	$ 7,466
Less accumulated depletion	(3,263)	(3,137)
Net capitalized costs for oil and natural gas properties	4,715	4,395
Eagle Ford
Property, Plant and Equipment [Line Items]
Proved	3,597	3,219
Permian
Property, Plant and Equipment [Line Items]
Proved	2,747	2,705
Unproved	65	66
Altamont
Property, Plant and Equipment [Line Items]
Proved	$ 1,569	$ 1,542

Property, Plant and Equipment30

Property, Plant and Equipment - Changes in Net Asset Retirement Obligations (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018USD ($)
Changes in net asset retirement liability
Net asset retirement liability at beginning of period	$ 35
Accretion expense	1
Net asset retirement liability at end of period	$ 36

Long-Term Debt - Schedule of De

Long-Term Debt - Schedule of Debt Obligations (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
Debt Instrument [Line Items]
Total debt	$ 4,218	$ 4,093
Less short-term debt, net of debt issue costs of less than $1 million	(21)	(21)
Debt issue costs (less than)	1	1
Total long-term debt	4,197	4,072
Less debt discount and non-current portion of unamortized debt issue costs	(93)	(50)
Total long-term debt, net	4,104	4,022
RBL credit facility - due May 24, 2019
Debt Instrument [Line Items]
Total debt	775	595
Less debt discount and non-current portion of unamortized debt issue costs	$ (5)	(6)
RBL credit facility - due May 24, 2019 | LIBOR
Debt Instrument [Line Items]
Reference rate for variable interest rate	LIBOR
RBL credit facility - due May 24, 2019 | LIBOR | Minimum
Debt Instrument [Line Items]
Specified margin on reference rate	2.50%
RBL credit facility - due May 24, 2019 | LIBOR | Maximum
Debt Instrument [Line Items]
Specified margin on reference rate	3.50%
Senior Secured Term Loans Due May 24, 2018
Debt Instrument [Line Items]
Total debt	$ 21	$ 21
Debt instrument issuance as a percentage of par value	99.00%
Effective interest rate	4.54%	4.23%
Senior Secured Term Loans Due May 24, 2018 | LIBOR
Debt Instrument [Line Items]
Reference rate for variable interest rate	LIBOR
Specified margin on reference rate	2.75%
Senior Secured Term Loans Due May 24, 2018 | LIBOR | Minimum
Debt Instrument [Line Items]
Floor on variable rate	0.75%
Senior Secured Term Loans Due April 30, 2019
Debt Instrument [Line Items]
Total debt	$ 8	$ 8
Effective interest rate	5.48%	4.98%
Senior Secured Term Loans Due April 30, 2019 | LIBOR
Debt Instrument [Line Items]
Reference rate for variable interest rate	LIBOR
Specified margin on reference rate	3.50%
Senior Secured Term Loans Due April 30, 2019 | LIBOR | Minimum
Debt Instrument [Line Items]
Floor on variable rate	1.00%
Senior Secured Notes Due May 1, 2024
Debt Instrument [Line Items]
Interest Rate	9.375%
Total debt	$ 1,092	$ 0
Senior Secured Notes Due November 29, 2024
Debt Instrument [Line Items]
Interest Rate	8.00%
Total debt	$ 500	500
Senior Secured Notes Due February 15, 2025
Debt Instrument [Line Items]
Interest Rate	8.00%
Total debt	$ 1,000	1,000	$ 1,000
Senior Unsecured Notes Due May 1, 2020
Debt Instrument [Line Items]
Interest Rate	9.375%
Total debt	$ 246	1,200
Total long-term debt, net	$ 954
Senior Unsecured Notes Due September 1, 2022
Debt Instrument [Line Items]
Interest Rate	7.75%
Total debt	$ 196	250
Total long-term debt, net	$ 54
Senior Unsecured Notes Due June 15, 2023
Debt Instrument [Line Items]
Interest Rate	6.375%
Total debt	$ 380	$ 519
Total long-term debt, net	$ 139

Long-Term Debt - Narrative (De

Long-Term Debt - Narrative (Details)	3 Months Ended
	Mar. 31, 2018USD ($)	Mar. 31, 2017USD ($)	Jun. 30, 2019	Jan. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Debt Instrument [Line Items]
Debt outstanding	$ 4,104,000,000				$ 4,022,000,000
Fees/costs on debt exchange	62,000,000	$ 0
Debt issuance costs	51,000,000				56,000,000
Debt outstsanding	4,218,000,000				4,093,000,000
Debt discount and unamortized debt issue costs	$ 93,000,000				50,000,000
First lien debt to EBITDAX ratio	1.09
Ratio of net debt to EBITDAX	5.93
Maximum
Debt Instrument [Line Items]
First lien debt to EBITDAX ratio	3
Ratio of net debt to EBITDAX	4.5
Maximum | Forecast
Debt Instrument [Line Items]
Ratio of net debt to EBITDAX			4.5
Senior Unsecured Notes Due May 1, 2020
Debt Instrument [Line Items]
Debt outstanding	$ 954,000,000
Stated interest rate	9.375%
Debt outstsanding	$ 246,000,000				1,200,000,000
Repurchase of aggregate principal amount		250,000,000
Senior Unsecured Notes Due September 1, 2022
Debt Instrument [Line Items]
Debt outstanding	$ 54,000,000
Stated interest rate	7.75%
Debt outstsanding	$ 196,000,000				250,000,000
Senior Unsecured Notes Due June 15, 2023
Debt Instrument [Line Items]
Debt outstanding	$ 139,000,000
Stated interest rate	6.375%
Debt outstsanding	$ 380,000,000				519,000,000
Senior Secured Notes Due May 1, 2024
Debt Instrument [Line Items]
Stated interest rate	9.375%
Aggregate principal amount	$ 1,092,000,000
Fees/costs on debt exchange	62,000,000
Debt discount (less than for 2017)	48,000,000
Debt issuance costs	2,000,000
Loss on modification of debt	12,000,000
Gain (loss) on extinguishment of debt	53,000,000
Write-off of previously unamortized debt issue costs and non-cash expense related to eliminating associated unamortized debt issue costs and debt discounts	2,000,000
Debt outstsanding	$ 1,092,000,000				0
Senior Secured Notes Due February 15, 2025
Debt Instrument [Line Items]
Stated interest rate	8.00%
Gain (loss) on extinguishment of debt		(53,000,000)
Write-off of previously unamortized debt issue costs and non-cash expense related to eliminating associated unamortized debt issue costs and debt discounts		30,000,000
Debt outstsanding	$ 1,000,000,000	1,000,000,000			1,000,000,000
RBL credit facility - due May 24, 2019
Debt Instrument [Line Items]
Debt outstsanding	775,000,000				595,000,000
Repayments of amounts outstanding		$ 111,000,000
Debt discount and unamortized debt issue costs	5,000,000				6,000,000
Maximum borrowing capacity	1,360,000,000			$ 1,359,000,000	1,400,000,000
Remaining capacity	565,000,000
Letters of credit issued	19,000,000
Senior Secured Term Loans and Senior Notes
Debt Instrument [Line Items]
Debt discount and unamortized debt issue costs	46,000,000				50,000,000
Senior Secured Notes Due 2024
Debt Instrument [Line Items]
Debt discount (less than for 2017)	$ 47,000,000				$ 1,000,000

Commitments and Contingencies -

Commitments and Contingencies - Legal Matters (Details) - USD ($) $ in Millions	Jul. 05, 2017	Mar. 03, 2014	Mar. 31, 2018
Legal Matters
Legal Matters
Amount accrued			$ 5
FairfieldNodal v. EP Energy E&P, Company L.P.
Legal Matters
Damages sought		$ 21
Weyerhauser Company v. Pardee Minerals LLC, Value of Production
Legal Matters
Damages sought	$ 19
Weyerhauser Company v. Pardee Minerals LLC, Judicial Interest
Legal Matters
Damages sought	$ 11
Indemnification and Other Matters
Legal Matters
Amount accrued			4
Sales and Use Tax Adjustment
Legal Matters
Amount accrued in connection with ongoing examinations related to certain prior period non-income tax matters			$ 43

Long-Term Incentive Compensat34

Long-Term Incentive Compensation - Summary of Changes in Non-Vested Restricted Shares (Details) - Restricted stock	3 Months Ended
	Mar. 31, 2018$ / sharesshares
Number of Shares
Non-vested at beginning of period (in shares) | shares	5,283,986
Granted (in shares) | shares	327,796
Vested (in shares) | shares	(1,695,087)
Forfeited (in shares) | shares	(496,360)
Non-vested at end of period (in shares) | shares	3,420,335
Weighted Average Grant Date Fair Value per Share
Non-vested at beginning of period (in dollars per share) | $ / shares	$ 4.93
Granted (in dollars per share) | $ / shares	1.80
Vested (in dollars per share) | $ / shares	5.90
Forfeitures (in dollars per share) | $ / shares	4.96
Non-vested at end of period (in dollars per share) | $ / shares	$ 4.15

Long-Term Incentive Compensat35

Long-Term Incentive Compensation - Narrative (Details) - USD ($) shares in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Pre-tax compensation expense related to all LTI awards, net of impact of forfeitures	$ 2,000,000	$ (1,000,000)
Forfeitures		$ 7,000,000
Unrecognized compensation expense	25,000,000
Additional compensation cost to be recognized in remainder of fiscal year	10,000,000
Estimated compensation cost to be recognized over remaining requisite service periods	13,000,000
Estimated compensation cost to be recognized should a specified capital transaction occur	2,000,000
Performance Share Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)			912
Performance period			4 years
Performance Unit Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Payment made in connection with awards that vested	0
Amount accrued related to unvested outstanding performance unit awards (less than)	$ 1,000,000

Related Party Transactions (Det

Related Party Transactions (Details) $ in Millions	12 Months Ended	15 Months Ended
	Dec. 31, 2017USD ($)tranche	Mar. 31, 2018USD ($)
Related Party Transactions [Abstract]
Percent Investor agreed to fund	60.00%
Number of investment tranches | tranche	2
Amount of capital from Investor per investment tranche	$ 225
Percent of working interest exchanged	50.00%
Internal rate of return on capital percent	12.00%
Percent of working interest Investor will revert to once internal rate of return is achieved in each tranche	15.00%
Capital costs recovered		$ 215