Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2017shares | |
Document and Entity Information | |
Entity Registrant Name | California Resources Corp |
Entity Central Index Key | 1,609,253 |
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 |
Entity Common Stock, Shares Outstanding | 42,868,072 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | Q3 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 28 | $ 12 |
Trade receivables | 221 | 232 |
Inventories | 58 | 58 |
Other current assets, net | 145 | 123 |
Total current assets | 452 | 425 |
PROPERTY, PLANT AND EQUIPMENT | 21,124 | 20,915 |
Accumulated depreciation, depletion and amortization | (15,432) | (15,030) |
Total property, plant and equipment, net | 5,692 | 5,885 |
OTHER ASSETS | 39 | 44 |
TOTAL ASSETS | 6,183 | 6,354 |
CURRENT LIABILITIES | ||
Current maturities of long-term debt | 100 | 100 |
Accounts payable | 263 | 219 |
Accrued liabilities | 383 | 407 |
Total current liabilities | 746 | 726 |
LONG-TERM DEBT - PRINCIPAL AMOUNT | 5,039 | 5,168 |
DEFERRED GAIN AND ISSUANCE COSTS, NET | 356 | 397 |
OTHER LONG-TERM LIABILITIES | 616 | 620 |
EQUITY | ||
Preferred stock (20 million shares authorized at $0.01 par value) no shares outstanding at September 30, 2017 and December 31, 2016 | ||
Common stock (200 million shares authorized at $0.01 par value) outstanding shares (September 30, 2017 - 42,868,072 and December 31, 2016 - 42,542,637) | ||
Additional paid-in capital | 4,875 | 4,861 |
Accumulated deficit | (5,532) | (5,404) |
Accumulated other comprehensive loss | (10) | (14) |
Total equity attributable to common stock | (667) | (557) |
Noncontrolling interest | 93 | |
Total equity | (574) | (557) |
TOTAL LIABILITIES AND EQUITY | $ 6,183 | $ 6,354 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
Condensed Consolidated Balance Sheets | ||
Preferred stock, authorized shares | 20,000,000 | 20,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, outstanding shares | 0 | 0 |
Common stock, authorized shares | 200,000,000 | 200,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, outstanding shares | 42,868,072 | 42,542,637 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
REVENUES AND OTHER | ||||
Oil and gas net sales | $ 461 | $ 424 | $ 1,387 | $ 1,157 |
Net derivative (losses) gains | (65) | (14) | 51 | (157) |
Other revenue | 49 | 46 | 113 | 95 |
Total revenues and other | 445 | 456 | 1,551 | 1,095 |
COSTS AND OTHER | ||||
Production costs | 222 | 211 | 649 | 583 |
General and administrative expenses | 63 | 58 | 191 | 186 |
Depreciation, depletion and amortization | 134 | 137 | 412 | 422 |
Taxes other than on income | 39 | 37 | 103 | 118 |
Exploration expense | 5 | 3 | 17 | 13 |
Other expenses, net | 29 | 29 | 76 | 76 |
Total costs and other | 492 | 475 | 1,448 | 1,398 |
OPERATING (LOSS) INCOME | (47) | (19) | 103 | (303) |
NON-OPERATING (LOSS) INCOME | ||||
Interest and debt expense, net | (85) | (95) | (252) | (243) |
Net gains on early extinguishment of debt | 660 | 4 | 793 | |
Gains on asset divestitures | 21 | 31 | ||
Other non-operating expense | (3) | |||
(LOSS) INCOME BEFORE INCOME TAXES | (132) | 546 | (127) | 278 |
Income tax benefit | 78 | |||
NET (LOSS) INCOME | (132) | 546 | (127) | 356 |
Net income attributable to noncontrolling interest | (1) | (1) | ||
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCK | $ (133) | $ 546 | $ (128) | $ 356 |
(Loss) Earnings per share attributable to common stock | ||||
Basic (in dollars per share) | $ (3.11) | $ 13.04 | $ (3.01) | $ 8.79 |
Diluted (in dollars per share) | $ (3.11) | $ 13.04 | $ (3.01) | $ 8.79 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Condensed Consolidated Statements of Comprehensive Income | |||||
Net (loss) income | $ (132) | $ 546 | $ (127) | $ 356 | |
Net income attributable to noncontrolling interest | (1) | (1) | |||
Other comprehensive income items: | |||||
Reclassification to income of realized losses on pension and postretirement | [1] | 1 | 2 | 4 | 8 |
Total other comprehensive income, net of tax | 1 | 2 | 4 | 8 | |
Comprehensive (loss) income attributable to common stock | (132) | 548 | (124) | 364 | |
Pension and postretirement income, associated tax | $ 0 | $ 0 | $ 0 | $ 0 | |
[1] | No associated tax for the three and nine months ended September 30, 2017 and 2016. See Note 10 Retirement and Postretirement Benefit Plans, for additional information. |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
CASH FLOW FROM OPERATING ACTIVITIES | ||
Net (loss) income | $ (127) | $ 356 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 412 | 422 |
Deferred income tax benefit | (78) | |
Net derivative (gains) losses | (51) | 157 |
Net proceeds on settled derivatives | 15 | 86 |
Net gains on early extinguishment of debt | (4) | (793) |
Amortization of deferred gain | (55) | (53) |
Gains on asset divestitures | (21) | (31) |
Other non-cash charges to income, net | 46 | 84 |
Dry hole expenses | 1 | |
Changes in operating assets and liabilities, net | 9 | (5) |
Net cash provided by operating activities | 225 | 145 |
CASH FLOW FROM INVESTING ACTIVITIES | ||
Capital investments | (232) | (45) |
Changes in capital investment accruals | 26 | (5) |
Asset divestitures | 33 | 19 |
Other | (1) | |
Net cash used by investing activities | (174) | (31) |
CASH FLOW FROM FINANCING ACTIVITIES | ||
Proceeds from 2014 Revolving Credit Facility | 1,000 | 1,761 |
Repayments of 2014 Revolving Credit Facility | (1,010) | (1,728) |
Proceeds from 2016 Credit Agreement | 990 | |
Payments on 2014 Term Loan | (91) | (329) |
Debt repurchases | (24) | (770) |
Debt transaction costs | (2) | (44) |
Contribution from noncontrolling interest, net | 98 | |
Distributions paid to noncontrolling interest holders | (6) | |
Employee stock purchases and other | 2 | 4 |
Shares cancelled for taxes | (2) | |
Net cash used by financing activities | (35) | (116) |
Increase (decrease) in cash and cash equivalents | 16 | (2) |
Cash and cash equivalents-beginning of period | 12 | 12 |
Cash and cash equivalents-end of period | $ 28 | $ 10 |
THE SPIN-OFF AND BASIS OF PRESE
THE SPIN-OFF AND BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2017 | |
THE SPIN-OFF AND BASIS OF PRESENTATION | |
THE SPIN-OFF AND BASIS OF PRESENTATION | NOTE 1 THE SPIN-OFF AND BASIS OF PRESENTATION The Separation and Spin-off We are an independent oil and natural gas exploration and production company operating properties within California. We were incorporated in Delaware as a wholly owned subsidiary of Occidental Petroleum Corporation (Occidental) on April 23, 2014, and remained a wholly owned subsidiary of Occidental until November 30, 2014. On November 30, 2014, Occidental distributed shares of our common stock on a pro-rata basis to Occidental stockholders and we became an independent, publicly traded company (the Spin-off). Occidental initially retained approximately 18.5% of our outstanding shares of common stock, which it distributed to Occidental stockholders on March 24, 2016. Except when the context otherwise requires or where otherwise indicated, all references to ‘‘CRC,’’ the ‘‘company,’’ ‘‘we,’’ ‘‘us’’ and ‘‘our’’ refer to California Resources Corporation and its subsidiaries, and all references to ‘‘Occidental’’ refer to Occidental Petroleum Corporation, our former parent, and its subsidiaries. Basis of Presentation In the opinion of our management, the accompanying financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to fairly present our financial position as of September 30, 2017 and the statements of operations, comprehensive income, and cash flows for the three and nine months ended September 30, 2017 and 2016, as applicable. We have eliminated all of our significant intercompany transactions and accounts. We have prepared this report pursuant to the rules and regulations of the United States (U.S.) Securities and Exchange Commission applicable to interim financial information, which permit omission of certain disclosures to the extent they have not changed materially since the latest annual financial statements. We believe our disclosures are adequate to make the information not misleading. This Form 10-Q should be read in conjunction with the consolidated and combined financial statements and the notes thereto in our Annual Report on Form 10-K for the year ended December 31, 2016. Certain prior year amounts have been reclassified to conform to the 2017 presentation. On the statements of operations, we reclassified gains on asset divestitures out of other expenses, net. We also moved interest and debt expense, net out of operating income (loss) and into non-operating income (loss). |
ACCOUNTING AND DISCLOSURE CHANG
ACCOUNTING AND DISCLOSURE CHANGES | 9 Months Ended |
Sep. 30, 2017 | |
ACCOUNTING AND DISCLOSURE CHANGES | |
ACCOUNTING AND DISCLOSURE CHANGES | NOTE 2 ACCOUNTING AND DISCLOSURE CHANGES Recently Issued Accounting and Disclosure Changes In 2016, the Financial Accounting Standards Board (FASB) issued rules clarifying the revenue recognition standard issued in 2014. Under the new rules, an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The new rules also require more detailed disclosures related to the nature, timing, amount and uncertainty of revenue and cash flows arising from contracts with customers. We have substantially completed our assessment of these new rules. Based on our assessment to date, we have not identified any changes to the timing of revenue recognition based on the requirements of the new rules. We will adopt these rules in the first quarter of 2018 and expect to apply the modified retrospective approach upon adoption with the cumulative effect of applying the rules, if any, recognized as of the date of initial application. In January 2017, the FASB issued rules that changed the definition of a business to assist entities with evaluating when a set of transferred assets and activities is a business. The rules are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. We do not expect the adoption of these rules to have a significant impact on our financial statements. In March 2017, the FASB issued rules requiring employers that sponsor defined benefit plans for pensions and postretirement benefits to present the service cost component of net periodic benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period. Only the service cost component will be eligible for capitalization in assets. Employers will present the other components of the net periodic benefit cost separately from the line item that includes the service cost and outside of any subtotal of operating income. The rules are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. We do not expect the adoption of these rules to have a significant impact on our financial statements. In May 2017, the FASB issued rules to simplify the guidance on the modification of share-based payment awards. The amendments provide clarity on which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting prospectively. The rules are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. The new rules will be applied prospectively to any awards modified on or after the adoption date. Recently Adopted Accounting and Disclosure Changes In July 2015, the FASB issued rules requiring entities to measure inventory at the lower of cost or net realizable value. We adopted these rules in the first quarter of 2017 with no changes to our financial statements. |
OTHER INFORMATION
OTHER INFORMATION | 9 Months Ended |
Sep. 30, 2017 | |
OTHER INFORMATION | |
OTHER INFORMATION | NOTE 3 OTHER INFORMATION Cash and cash equivalents at September 30, 2017 included approximately $17 million that is restricted for capital investment under our joint venture agreements. Other current assets, net at September 30, 2017 and December 31, 2016 included amounts due from joint interest partners of approximately $71 million and $51 million and derivative assets from commodities contracts of $46 million and $39 million, respectively. Also included in other current assets, net at September 30, 2017 and December 31, 2016 are assets held for sale of $12 million and $19 million, respectively. Accrued liabilities at September 30, 2017 and December 31, 2016 reflected net greenhouse gas obligations of $104 million and $89 million, accrued interest of $66 million and $25 million, accrued employee-related costs of $63 million and $91 million, derivative liabilities from commodities contracts of $60 million and $103 million and liabilities held for sale of $0 and $7, respectively. Other long-term liabilities included asset retirement obligations of $410 million and $397 million at September 30, 2017 and December 31, 2016, respectively. Fair Value of Financial Instruments The carrying amounts of cash and other on-balance sheet financial instruments, other than debt, approximate fair value. Supplemental Cash Flow Information We did not make U.S. federal and state income tax payments during the nine months ended September 30, 2017 and 2016. Interest paid totaled approximately $251 million and $244 million for the nine months ended September 30, 2017 and 2016, respectively. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Sep. 30, 2017 | |
INVENTORIES | |
INVENTORIES | NOTE 4 INVENTORIES Inventories as of September 30, 2017 and December 31, 2016 consisted of the following: September 30, 2017 December 31, 2016 (in millions) Materials and supplies $ $ Finished goods Total $ $ |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2017 | |
DEBT | |
DEBT | NOTE 5 DEBT Debt as of September 30, 2017 and December 31, 2016 consisted of the following: September 30, December 31, (in millions) 2014 Credit Facilities (Secured First Lien) Revolving Credit Facility $ $ Term Loan Facility 2016 Credit Agreement (Secured First Lien) Second Lien Notes 8% Notes Due 2022 Senior Notes (Unsecured) 5% Notes Due 2020 5 ½% Notes Due 2021 6% Notes Due 2024 Total Debt - Principal Amount Less Current Maturities of Long-Term Debt Long-Term Debt - Principal Amount $ $ At September 30, 2017, deferred gain and issuance costs were $356 million net, consisting of $434 million of deferred gains offset by $78 million of deferred issuance costs and original issue discounts. The December 31, 2016 deferred gain and issuance costs were $397 million net, consisting of $489 million of deferred gains offset by $92 million of deferred issuance costs and original issue discounts. Credit Facilities 2014 Credit Facilities Our credit facilities from 2014 (2014 Credit Facilities) comprise (i) a $559 million senior term loan facility (2014 Term Loan) and (ii) a $1.4 billion senior revolving loan facility (2014 Revolving Credit Facility). We are permitted to increase the size of our 2014 Revolving Credit Facility by up to $245 million if we obtain additional commitments from new or existing lenders. Our 2014 Revolving Credit Facility includes a sub-limit of $400 million for the issuance of letters of credit. Our credit limit under our 2014 Credit Facilities is approximately $2.0 billion. Borrowings under these facilities are also subject to a borrowing base, which was reaffirmed at $2.3 billion as of November 1, 2017. Our 2014 Credit Facilities mature at the earlier of November 2019 and the 182 nd day prior to the maturity of our 2020 Notes or the 2021 Notes if the outstanding principal amount of either series exceeds $100 million prior to its respective maturity date. In 2016 and through the nine months ended September 30, 2017, we made scheduled quarterly payments of $25 million on our 2014 Term Loan for an aggregate amount of $175 million. In August 2016, we made a $250 million prepayment on our 2014 Term Loan from the proceeds of our 2016 Credit Agreement. In February 2017, we made a $16 million prepayment on our 2014 Term Loan from the proceeds of non-core asset sales. The lenders under our 2014 Credit Facilities have a first-priority lien on a substantial majority of our assets, including our Elk Hills power plant and midstream assets. We also granted a lien on the same assets to the lenders under our 2016 Credit Agreement and the holders of our Second Lien Notes. Borrowings under our 2014 Credit Facilities bear interest, at our election, at either a LIBOR rate or an alternate base rate (ABR) (equal to the highest of (i) the federal funds effective rate plus 0.50%, (ii) the administrative agent’s prime rate and (iii) the one-month LIBOR rate plus 1.00%), in each case plus an applicable margin. This applicable margin is based, while our total leverage ratio exceeds 3.00 to 1.00, on our borrowing base utilization and will vary from (i) in the case of LIBOR loans, 2.50% to 3.50% and (ii) in the case of ABR loans, 1.50% to 2.50%. The unused portion of our 2014 Revolving Credit Facility commitments is subject to a commitment fee equal to 0.50% per annum. We also pay customary fees and expenses under our 2014 Credit Facilities. Interest on ABR loans is payable quarterly in arrears. Interest on LIBOR loans is payable at the end of each LIBOR period, but not less than quarterly. As of September 30, 2017, the financial performance covenants under our 2014 Credit Facilities were as follows: 2017 2018 and beyond 9/30 12/31 3/31 6/30 9/30 12/31 Maximum leverage ratio (a) 3.25 to 1.00 3.25 to 1.00 2.25 to 1.00 2.25 to 1.00 2.25 to 1.00 2.25 to 1.00 Minimum interest coverage ratio (b) 1.20 to 1.00 1.20 to 1.00 2.00 to 1.00 2.00 to 1.00 2.00 to 1.00 2.00 to 1.00 Minimum asset coverage ratio (c) N/A 1.20 to 1.00 N/A 1.20 to 1.00 N/A 1.20 to 1.00 Minimum monthly liquidity (d) $250 million (a) The ratio of indebtedness under our 2014 Credit Facilities to trailing four-quarter Adjusted EBITDAX (b) The ratio of Adjusted EBITDAX to consolidated interest charges, adjusted for deferred gain amortization (c) The ratio of PV-10 to total indebtedness under our 2014 Credit Facilities and our 2016 Credit Agreement (d) Measured as of the last day of each calendar month The required ratios for 2018 and beyond were last amended in February 2016 and were not changed in subsequent modifications when the ratios through the end of 2017 were amended. As of September 30, 2017, we had approximately $431 million of available borrowing capacity under our 2014 Revolving Credit Facility, subject to the month-end minimum liquidity requirement. We must generally apply 100% of the net cash proceeds from asset sales (other than de minimis sales and sales to permitted development joint ventures) to repay loans outstanding under our 2014 Credit Facilities, except that we are permitted to use up to 50% of net cash proceeds from non-borrowing base asset sales or monetizations (i) to repurchase our Senior Notes to the extent available at a significant minimum discount to par, (ii) to purchase up to $140 million of certain of our Senior Notes at a discount to par, (iii) for general corporate purposes or (iv) for oil and gas expenditures, including expenditures for the maintenance, repair or improvement of existing properties and assets, and the acquisition of leasehold, seismic or other assets used in an oil and gas business. At least 75% of asset sale proceeds must be in cash (50% for sales of non-borrowing base assets unless our leverage ratio is less than 4:00 to 1:00 at which time the requirement falls to 40%), other than permitted development joint ventures and certain other transactions. Our 2014 Credit Facilities also permit us to incur up to an additional $50 million of non-facility indebtedness, which may be secured by non-borrowing base assets, subject to compliance with our financial covenants, the proceeds of which must be applied to repay our 2014 Term Loan. We must apply cash on hand in excess of $150 million daily to repay amounts outstanding under our 2014 Revolving Credit Facility. Further, we are restricted from paying dividends or making other distributions to common stockholders. Our borrowing base under our 2014 Credit Facilities is redetermined each May 1 and November 1. Our borrowing base is based upon a number of factors, including commodity prices and reserves, declines in which could cause our borrowing base to be reduced. Increases in our borrowing base require approval of at least 80% of our revolving lenders, as measured by exposure, while decreases or affirmations require a two-thirds approval. We and the lenders (requiring a request from the lenders holding two-thirds of the revolving commitments and outstanding loans) each may request a special redetermination once in any period between three consecutive scheduled redeterminations. We will be permitted to have collateral released when both (i) our credit ratings are at least Baa3 from Moody’s and BBB- from S&P, in each case with a stable or better outlook, and (ii) certain permitted liens securing other debt are released. We are working with our lender group to amend our 2014 Credit Facilities. The proposed amendment has received approval from each member of the lender group, subject to federally mandated flood insurance review. The proposed amendment, if completed, will become effective upon the satisfaction of certain conditions, including the closing of a new term loan with minimum proceeds of at least $900 million and minimum liquidity at closing of $500 million. The proceeds of the new term loan would be used to repay a portion of the borrowings under our 2014 Credit Facilities. If the proposed amendment is completed and becomes effective, our 2014 Credit Facilities would be amended to: · extend the maturity date until June 30, 2021, subject to a springing maturity of (i) 273 days prior to the maturity of our 2020 Notes to the extent that more than $100 million of such notes remain outstanding at such date and (ii) 273 days prior to the maturity of our 2021 Notes, to the extent that more than $100 million of such notes remain outstanding on such date; · reset the financial performance covenants as follows: o maximum leverage ratio of indebtedness under our 2014 Credit Facilities and the new term loan to EBITDAX to be less than 1.90 to 1.00 through 2019 and less than 1.50 to 1.00 thereafter and o minimum interest coverage ratio to be greater than 1.20 to 1.00; · defer quarterly payments on our 2014 Term Loan until September 30, 2019, which would be reduced to $12.5 million per quarter thereafter; · reduce our 2014 Revolving Credit Facility commitment to $1 billion and reduce our minimum liquidity requirement to $150 million; · increase the applicable margin on LIBOR-based loans to a range of 3.25% to 4.00% and on ABR-based loans to a range of 2.25% to 3.00%; · permit us to use 50% of the proceeds from an Elk Hills power plant monetization to prepay our 2016 Credit Agreement, Second Lien Notes and Senior Notes; · permit us to use the proceeds from other non-borrowing base asset sales to prepay our 2016 Credit Agreement, Second Lien Notes and Senior Notes as follows: o 75% of such proceeds for all aggregate proceeds received up to $500 million o 50% of such proceeds for all aggregate proceeds received between $500 million and $1 billion o 25% of such proceeds for all aggregate proceeds received in excess of $1 billion · permit us to incur certain other first-lien indebtedness for deleveraging activities. 2016 Credit Agreement In August 2016, we entered into a $1 billion first-lien term loan (2016 Credit Agreement), the net proceeds of which were used to (i) prepay $250 million of our 2014 Term Loan and (ii) reduce our 2014 Revolving Credit Facility by $740 million. The proceeds received were net of a $10 million original issue discount. The loan under our 2016 Credit Agreement bears interest at a floating rate per annum equal to LIBOR plus 10.375%, subject to a 1.00% LIBOR floor, determined for the applicable interest period (or ABR rates plus 9.375% in certain circumstances). Interest on LIBOR loans is payable at the end of each LIBOR period, but not less than quarterly. Interest on ABR loans is payable quarterly in arrears. Our 2016 Credit Agreement matures at the earlier of December 2021 and the 91 st day prior to maturity of our 2020 Notes or our 2021 Notes if the outstanding principal amount of either series exceeds $100 million prior to its respective maturity date. As of September 30, 2017, we had $165 million and $135 million in aggregate principal amount of outstanding 2020 Notes and 2021 Notes, respectively. Our 2016 Credit Agreement is secured by the same collateral used to secure our 2014 Credit Facilities but is second in collateral recovery to the lenders under our 2014 Credit Facilities. Prepayment of our 2016 Credit Agreement is subject to an adjustable make-whole amount prior to the fourth anniversary. Following the fourth anniversary, we may redeem at par. At both September 30, 2017 and December 31, 2016, we had $1 billion outstanding under our 2016 Credit Agreement. Our 2016 Credit Agreement provides for customary covenants and events of default consistent with, or generally less restrictive than, the covenants in our 2014 Credit Facilities, including limitations on additional indebtedness, liens, asset dispositions, investments and restricted payments and other negative covenants, in each case subject to certain limitations and exceptions. Additionally, our 2016 Credit Agreement requires us to maintain a first-lien asset coverage ratio of not less than 1.20 to 1.00 as of any June 30 and December 31, consistent with our 2014 Credit Facilities. Second Lien Notes In December 2015, we issued $2.25 billion in aggregate principal amount of 8% senior secured second-lien notes due December 15, 2022 (Second Lien Notes), which we exchanged for $2.8 billion of our outstanding Senior Notes. We recorded a deferred gain of approximately $560 million on the debt exchange, which will be amortized using the effective interest rate method over the term of our Second Lien Notes. Our Second Lien Notes are secured on a lower-priority basis than the lenders of our 2014 Credit Facilities and 2016 Credit Agreement. We pay interest on our Second Lien Notes semiannually in cash in arrears on June 15 and December 15. The indenture governing our Second Lien Notes includes covenants that, among other things, limit our ability to incur debt secured by liens subject to certain exceptions and restrict our ability to merge or consolidate with, or transfer all or substantially all of our assets to, another entity. The covenants are not, however, directly linked to measures of our financial performance. In addition, if we experience a “change of control triggering event” (as defined in the indenture), we will be required, unless we have exercised our right to redeem our Second Lien Notes, to offer to purchase our Second Lien Notes at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest. The indenture also restricts our ability to sell certain assets and to release collateral from liens securing our Second Lien Notes, unless the collateral is released in compliance with our 2014 Credit Facilities. We may redeem our Second Lien Notes (i) prior to December 15, 2017 from the proceeds of certain equity offerings, in an amount up to 35% of the initial aggregate principal amount of the notes issued plus any additional notes issued, at a redemption price equal to 108% of the principal amount redeemed, plus accrued and unpaid interest, (ii) prior to December 15, 2018, in whole or in part at a redemption price equal to 100% of the principal amount redeemed plus a make-whole amount and accrued and unpaid interest and (iii) on or after December 15, 2018, in whole or in part at a fixed redemption price ranging from 104% to 102% of the principal amount redeemed plus accrued and unpaid interest prior to 2019 and 100% thereafter. Senior Notes In October 2014, we issued $5 billion in aggregate principal amount of our senior unsecured notes, including $1 billion of 5% notes due January 15, 2020 (2020 Notes), $1.75 billion of 5 ½% notes due September 15, 2021 (2021 Notes) and $2.25 billion of 6% notes due November 15, 2024 (2024 Notes and, collectively, Senior Notes). We used the net proceeds from the issuance of our Senior Notes to make a $4.95 billion cash distribution to Occidental in October 2014. In 2015, we repurchased approximately $33 million in principal amount of our 2020 Notes for $13 million in cash. We also exchanged a substantial majority of our Senior Notes for our Second Lien Notes in December 2015 as described above. In 2016, we repurchased over $1.5 billion in principal amount of our outstanding Senior Notes, primarily using drawings of $750 million on our 2014 Revolving Credit Facility and cash from operations. We also exchanged approximately 3.4 million shares of our common stock for $100 million in aggregate principal amount of our Senior Notes. In the first quarter of 2017, we purchased $28 million in aggregate principal amount of our 2020 Notes for $24 million in cash. The following table summarizes the material terms of our Senior Notes outstanding at September 30, 2017: 2020 Notes 2021 Notes 2024 Notes Outstanding principal $165 million $135 million $193 million Interest rate 5% 5.5% 6% Maturity date January 15, 2020 September 15, 2021 November 15, 2024 Interest payment dates January 15 July 15 March 15 September 15 May 15 November 15 The indenture governing our Senior Notes includes covenants that, among other things, limits our ability to grant liens securing borrowed money subject to certain exceptions and restricts our ability to merge or consolidate with, or transfer all or substantially all of our assets to, another entity. The covenants are not, however, directly linked to measures of our financial performance. In addition, if we experience a “change of control triggering event” (as defined in the indenture), we will be required, unless we have exercised our right to redeem our Senior Notes, to offer to purchase our Senior Notes at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest. We may redeem our Senior Notes prior to their maturity dates, in whole or in part, at a redemption price equal to 100% of the principal amount redeemed plus a make-whole amount and accrued and unpaid interest. Other At September 30, 2017, we were in compliance with all financial and other debt covenants. All obligations under our 2014 Credit Facilities and 2016 Credit Agreement (collectively, Credit Facilities) as well as our Second Lien Notes are guaranteed both fully and unconditionally and jointly and severally by all of our material wholly owned subsidiaries. The terms and conditions of all of our indebtedness are subject to additional qualifications and limitations that are set forth in the relevant governing documents. We estimate the fair value of fixed-rate debt, which is classified as Level 1, based on prices from known market transactions for our instruments. The estimated fair value of our debt at September 30, 2017 and December 31, 2016, including the fair value of the variable-rate portion, was approximately $4.1 billion and $4.9 billion, respectively, compared to a carrying value of approximately $5.1 billion and $5.3 billion. A one-eighth percent change in the variable interest rates on the borrowings under our Credit Facilities on September 30, 2017 would result in a $3 million change in annual interest expense. As of September 30, 2017 and December 31, 2016, we had letters of credit of approximately $137 million and $130 million, respectively, under our 2014 Revolving Credit Facility. These letters of credit were issued to support ordinary course marketing, insurance, regulatory and other matters. |
ACQUISITIONS, DIVESTITURES AND
ACQUISITIONS, DIVESTITURES AND OTHER | 9 Months Ended |
Sep. 30, 2017 | |
ACQUISITIONS, DIVESTITURES AND OTHER | |
ACQUISITIONS, DIVESTITURES AND OTHER | NOTE 6 ACQUISITIONS, DIVESTITURES AND OTHER In February 2017, we divested non-core assets resulting in $32 million of proceeds and a $21 million gain. In February 2017, we entered into a joint venture with Benefit Street Partners (BSP) where BSP will contribute up to $250 million, subject to agreement of the parties, in exchange for a preferred interest in the JV (BSP JV). The funds contributed by BSP are designated to be used to develop certain of our oil and gas properties. We contributed a net profits interest in existing and future cash flow from such properties in exchange for a common interest in the JV. BSP is entitled to preferential distributions and, if BSP receives cash distributions equal to a predetermined threshold, the preferred interest is automatically redeemed in full with no additional payment. BSP funded two $50 million commitments in March and July 2017. As of September 30, 2017, the noncontrolling interest in our BSP JV is comprised of contributions from BSP of $98 million (net of $2 million in issuance discounts), distributions to BSP of $6 million and BSP’s share of net income of $1 million. In April 2017, we entered into a joint venture with Macquarie Infrastructure and Real Assets Inc. (MIRA) under which MIRA will invest up to $300 million, subject to agreement of the parties, to develop certain of our oil and gas properties in exchange for a 90% working interest in the related properties (MIRA JV). MIRA will fund 100% of the development cost of such properties. Our 10% working interest reverts to 75% if MIRA receives cash distributions equal to a predetermined threshold return. MIRA initially committed $160 million, which is intended to be invested over two years. Of the committed amount, MIRA contributed $38 million for drilling projects through September 30, 2017, with additional funding expected during the course of the year and in 2018. Our consolidated results reflect the full operations of our BSP JV, with BSP’s share of net income being reported as a noncontrolling interest. Our consolidated results reflect only our working interest share in our MIRA JV. |
LAWSUITS, CLAIMS, COMMITMENTS A
LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2017 | |
LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES | |
LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES | NOTE 7 LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES We, or certain of our subsidiaries, are involved, in the normal course of business, in lawsuits, environmental and other claims and other contingencies that seek, among other things, compensation for alleged personal injury, breach of contract, property damage or other losses, punitive damages, civil penalties, or injunctive or declaratory relief. We accrue reserves for currently outstanding lawsuits, claims and proceedings when it is probable that a liability has been incurred and the liability can be reasonably estimated. Reserve balances at September 30, 2017 and December 31, 2016 were not material to our balance sheets as of such dates. We also evaluate the amount of reasonably possible losses that we could incur as a result of these matters. We believe that reasonably possible losses that we could incur in excess of reserves accrued on our balance sheet would not be material to our consolidated financial position or results of operations. We, our subsidiaries, or both, have indemnified various parties against specific liabilities those parties might incur in the future in connection with the Spin-off, purchases and other transactions that they have entered into with us. These indemnities include indemnities made to Occidental against certain tax-related liabilities that may be incurred by Occidental relating to the Spin-off and liabilities related to operation of our business while it was still owned by Occidental. As of September 30, 2017, we are not aware of material indemnity claims pending or threatened against the company. We are currently under examination by the Internal Revenue Service for our U.S. federal income tax return for the post-Spin-off period in 2014 and calendar year 2015. No significant issues have been raised to date. State returns for these years remain subject to examination. |
DERIVATIVES
DERIVATIVES | 9 Months Ended |
Sep. 30, 2017 | |
DERIVATIVES | |
DERIVATIVES | NOTE 8 DERIVATIVES General We use a variety of derivative instruments to protect our cash flows, margins and capital investment program from the cyclical nature of commodity prices and to improve our ability to comply with the covenants of our Credit Facilities in case of price deterioration. We will continue to be strategic and opportunistic in implementing our hedging program as market conditions permit. Derivatives are carried at fair value and on a net basis when a legal right of offset exists with the same counterparty. As of September 30, 2017, we did not have any derivatives designated as hedges. Unless otherwise indicated, we use the term “hedge” to describe derivative instruments that are designed to achieve our hedging program goals, even though they are not necessarily accounted for as cash-flow or fair-value hedges. As part of our hedging program, we entered into a number of derivative transactions that resulted in the following Brent-based crude oil contracts as of September 30, 2017: Q4 Q1 Q2 Q3 Q4 FY 2019 FY 2020 Sold Calls: Barrels per day Weighted-average price per barrel $ $ $ $ $ $ $ Purchased Puts: Barrels per day Weighted-average price per barrel $ $ $ $ $ $ $ Sold Puts: Barrels per day — — — Weighted-average price per barrel $ — $ $ $ $ $ — $ — Swaps: Barrels per day — — Weighted-average price per barrel $ $ $ $ $ $ — $ — A small portion of the derivatives in the table above were entered into by our BSP JV, including all of the 2019 and 2020 positions. Our BSP JV also entered into natural gas swaps for insignificant volumes for the period of October 2017 to July 2020. For purchased puts, we would receive settlement payments for prices below the indicated weighted-average price per barrel. For sold puts, we would make settlement payments for prices below the indicated weighted-average price per barrel. From time to time, we use puts in conjunction with other derivatives to increase the efficacy of our hedging activities. Certain of our counterparties have options to increase swap volumes by up to: · 5,000 barrels per day at a weighted-average Brent price of $55.03 for December 2017; · 19,000 barrels per day at a weighted-average Brent price of $60.00 for each quarter of the first half of 2018; · 19,000 barrels per day at a weighted-average Brent price of $60.13 for each quarter of the second half of 2018; · 10,000 barrels per day at a weighted-average Brent price of $60.00 for the first half of 2018 and · 5,000 barrels per day at a weighted-average Brent price of $60.15 for the second half of 2018. Additional hedges for 2018 were put in place after September 30, 2017 that are not included in the table above. Fair Value of Derivatives Our commodity derivatives are measured at fair value using industry-standard models with various inputs, including quoted forward prices, and are all classified as Level 2 in the required fair value hierarchy for the periods presented. The following table presents the fair values (at gross and net) of our outstanding derivatives as of September 30, 2017 and December 31, 2016 (in millions): September 30, 2017 Balance Sheet Gross Gross Net Fair Value Assets Commodity Contracts Other current assets $ $ $ Commodity Contracts Other assets — Liabilities Commodity Contracts Accrued liabilities Commodity Contracts Other long-term liabilities — Total derivatives $ $ — $ December 31, 2016 Balance Sheet Gross Gross Net Fair Value Assets Commodity Contracts Other current assets $ $ $ Commodity Contracts Other assets Liabilities Commodity Contracts Accrued liabilities Commodity Contracts Other long-term liabilities Total derivatives $ $ — $ |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2017 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | NOTE 9 EARNINGS PER SHARE We compute basic and diluted earnings per share (EPS) using the two-class method required for participating securities. Certain restricted and performance stock awards are considered participating securities when such shares have non-forfeitable dividend rights at the same rate as common stock. Under the two-class method, undistributed earnings allocated to participating securities are subtracted from net income attributable to common stock in determining net income available to common stockholders. In loss periods, no allocation is made to participating securities because the participating securities do not share in losses. For basic EPS, the weighted-average number of common shares outstanding excludes outstanding shares related to unvested restricted stock awards. For diluted EPS, the basic shares outstanding are adjusted by adding potentially dilutive securities. For the three and nine months ended September 30, 2017, we issued approximately 51,000 shares and 154,000 shares, respectively, of common stock in connection with our employee stock purchase plan. For the three and nine months ended September 30, 2016, we issued approximately 53,000 shares and 237,000 shares, respectively, of common stock in connection with our employee stock purchase plan. The following table presents the calculation of basic and diluted EPS for the three and nine months ended September 30, 2017 and 2016: Three months ended Nine months ended 2017 2016 (a) 2017 2016 (a) (in millions, except per-share amounts) Basic EPS calculation Net (loss) income $ $ $ $ Net income attributable to noncontrolling interest — — Net (loss) income attributable to common stock Less: net income (loss) allocated to participating securities — — Net (loss) income available to common stockholders $ $ $ $ Weighted-average common shares outstanding - basic Basic EPS $ $ $ $ Diluted EPS calculation Net (loss) income $ $ $ $ Net income attributable to noncontrolling interest — — Net (loss) income attributable to common stock Less: net income (loss) allocated to participating securities — — Net (loss) income available to common stockholders $ $ $ $ Weighted-average common shares outstanding - basic Dilutive effect of potentially dilutive securities — — — — Weighted-average common shares outstanding - diluted Diluted EPS $ $ $ $ (a) Our previously reported basic and diluted earnings per share for the three months ended September 30, 2016 changed from $13.45 to $13.04 and $13.06 to $13.04, respectively. Our previously reported basic earnings per share for the nine months ended September 30, 2016 also changed from $8.97 to $8.79. These changes occurred because of the application of the two-class method of earnings allocation in a period with net income. Unlike other periods in 2016, the third quarter of 2016 resulted in net income because of the non-recurring gain generated from the extinguishment of debt. This represents a 3% and 2% change for the three and nine months ended September 30, 2016, respectively, from the previously reported basic earnings per share amount, which we believe is immaterial based on the absolute amount as well as the non-recurring nature of the third quarter gain, which did not affect any trends embedded in operating results. |
RETIREMENT AND POSTRETIREMENT B
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS | 9 Months Ended |
Sep. 30, 2017 | |
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS | |
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS | NOTE 10 RETIREMENT AND POSTRETIREMENT BENEFIT PLANS The following table sets forth the components of the net periodic benefit costs for our defined benefit pension and postretirement benefit plans: Three months ended September 30, 2017 2016 Pension Postretirement Pension Postretirement (in millions) Service cost $ — $ $ — $ Interest cost Expected return on plan assets — — Recognized actuarial loss — — — Settlement loss — — Total $ $ $ $ Nine months ended September 30, 2017 2016 Pension Postretirement Pension Postretirement (in millions) Service cost $ $ $ $ Interest cost Expected return on plan assets — — Recognized actuarial loss — — Settlement loss — — Total $ $ $ $ During each quarter ended September 30, 2017 and 2016, we contributed $1 million to our defined benefit pension plans. During the nine months ended September 30, 2017 and 2016, we contributed $6 million and $7 million, respectively, to our defined benefit pension plans. We expect to satisfy minimum funding requirements with contributions of $1 million to our defined benefit pension plans during the remainder of 2017. The 2017 and 2016 settlements were associated with early retirements. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2017 | |
INCOME TAXES | |
INCOME TAXES | NOTE 11 INCOME TAXES For the three and nine months ended September 30, 2017, we did not provide any current or deferred tax provision or benefit. The difference between our statutory tax rate and our effective tax rate for the periods is primarily related to an increase in our valuation allowance based on the expectation of a tax loss for the year. Given our recent and anticipated future earnings trends, we have recorded a full valuation allowance against our net deferred tax asset and do not believe any of our valuation allowance as of September 30, 2017 will be released within the next 12 months. The amount of the net deferred tax assets considered realizable could however be adjusted if estimates change. In the first quarter of 2016, we had a deferred tax benefit of $78 million resulting from a change in valuation allowance. |
CONDENSED CONSOLIDATING FINANCI
CONDENSED CONSOLIDATING FINANCIAL INFORMATION | 9 Months Ended |
Sep. 30, 2017 | |
CONDENSED CONSOLIDATING FINANCIAL INFORMATION | |
CONDENSED CONSOLIDATING FINANCIAL INFORMATION | NOTE 12 CONDENSED CONSOLIDATING FINANCIAL INFORMATION Our Credit Facilities and Second Lien Notes are guaranteed both fully and unconditionally and jointly and severally by our material wholly owned subsidiaries (Guarantor Subsidiaries). Certain of our subsidiaries do not guarantee our Credit Facilities and Second Lien Notes (Non-Guarantor Subsidiaries). The following condensed consolidating balance sheets at September 30, 2017 and December 31, 2016, condensed consolidating statements of operations and statements of cash flows for the nine months ended September 30, 2017 and 2016 reflect the condensed consolidating financial information of our parent company, CRC (Parent), our combined Guarantor Subsidiaries, our combined Non-Guarantor Subsidiaries and the consolidation and elimination entries necessary to arrive at the information for CRC on a consolidated basis. The financial information may not necessarily be indicative of results of operations, cash flows or financial position had the Guarantor Subsidiaries operated as independent entities. Condensed Consolidating Balance Sheet Parent Combined Combined Eliminations Consolidated As of September 30, 2017 (in millions) Total current assets $ $ $ $ $ Total property, plant and equipment, net — Investments in consolidated subsidiaries — — Other assets — — TOTAL ASSETS $ $ $ $ $ Total current liabilities Long-term debt - principal amount — — — Deferred gain and issuance costs, net — — — Other long-term liabilities — Amounts due to (from) affiliates — — — Total equity TOTAL LIABILITIES AND EQUITY $ $ $ $ $ As of December 31, 2016 Total current assets $ $ $ — $ — $ Total property, plant and equipment, net — Investments in consolidated subsidiaries — — Other assets — — — TOTAL ASSETS $ $ $ $ $ Total current liabilities — — Long-term debt - principal amount — — — Deferred gain and issuance costs, net — — — Other long-term liabilities — Amounts due to (from) affiliates — — — Total equity TOTAL LIABILITIES AND EQUITY $ $ $ $ $ Condensed Consolidating Statement of Operations Parent Combined Combined Eliminations Consolidated For the nine months ended September 30, 2017 (in millions) Total revenues and other $ $ $ $ $ Total costs and other Non-operating (loss) income — — Income tax benefit — — — — — NET (LOSS) INCOME — Net income attributable to noncontrolling interest — — — NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCK $ $ $ — $ — $ For the nine months ended September 30, 2016 Total revenues and other $ — $ $ $ — $ Total costs and other — Non-operating income (loss) — — Income tax benefit — — — NET INCOME (LOSS) $ $ $ — $ — $ Condensed Consolidating Statement of Cash Flows Parent Combined Combined Eliminations Consolidated For the nine months ended September 30, 2017 (in millions) Net cash (used) provided by operating activities $ $ $ $ — $ Net cash used by investing activities — Net cash provided (used) by financing activities — Increase (decrease) in cash and cash equivalents — Cash and cash equivalents—beginning of period — — — Cash and cash equivalents— end of period $ $ $ $ — $ For the nine months ended September 30, 2016 Net cash (used) provided by operating activities $ $ $ $ — $ Net cash used by investing activities — — Net cash provided (used) by financing activities — Decrease in cash and cash equivalents — — — Cash and cash equivalents—beginning of period — — — Cash and cash equivalents— end of period $ — $ $ — $ — $ |
THE SPIN-OFF AND BASIS OF PRE19
THE SPIN-OFF AND BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
THE SPIN-OFF AND BASIS OF PRESENTATION | |
Basis of Presentation | Basis of Presentation In the opinion of our management, the accompanying financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to fairly present our financial position as of September 30, 2017 and the statements of operations, comprehensive income, and cash flows for the three and nine months ended September 30, 2017 and 2016, as applicable. We have eliminated all of our significant intercompany transactions and accounts. We have prepared this report pursuant to the rules and regulations of the United States (U.S.) Securities and Exchange Commission applicable to interim financial information, which permit omission of certain disclosures to the extent they have not changed materially since the latest annual financial statements. We believe our disclosures are adequate to make the information not misleading. This Form 10-Q should be read in conjunction with the consolidated and combined financial statements and the notes thereto in our Annual Report on Form 10-K for the year ended December 31, 2016. Certain prior year amounts have been reclassified to conform to the 2017 presentation. On the statements of operations, we reclassified gains on asset divestitures out of other expenses, net. We also moved interest and debt expense, net out of operating income (loss) and into non-operating income (loss). |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
INVENTORIES | |
Schedule of Inventories | September 30, 2017 December 31, 2016 (in millions) Materials and supplies $ $ Finished goods Total $ $ |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt instrument | |
Schedule of Long-term Debt | September 30, December 31, (in millions) 2014 Credit Facilities (Secured First Lien) Revolving Credit Facility $ $ Term Loan Facility 2016 Credit Agreement (Secured First Lien) Second Lien Notes 8% Notes Due 2022 Senior Notes (Unsecured) 5% Notes Due 2020 5 ½% Notes Due 2021 6% Notes Due 2024 Total Debt - Principal Amount Less Current Maturities of Long-Term Debt Long-Term Debt - Principal Amount $ $ |
Schedule of financial performance covenants | 2017 2018 and beyond 9/30 12/31 3/31 6/30 9/30 12/31 Maximum leverage ratio (a) 3.25 to 1.00 3.25 to 1.00 2.25 to 1.00 2.25 to 1.00 2.25 to 1.00 2.25 to 1.00 Minimum interest coverage ratio (b) 1.20 to 1.00 1.20 to 1.00 2.00 to 1.00 2.00 to 1.00 2.00 to 1.00 2.00 to 1.00 Minimum asset coverage ratio (c) N/A 1.20 to 1.00 N/A 1.20 to 1.00 N/A 1.20 to 1.00 Minimum monthly liquidity (d) $250 million (a) The ratio of indebtedness under our 2014 Credit Facilities to trailing four-quarter Adjusted EBITDAX (b) The ratio of Adjusted EBITDAX to consolidated interest charges, adjusted for deferred gain amortization (c) The ratio of PV-10 to total indebtedness under our 2014 Credit Facilities and our 2016 Credit Agreement (d) Measured as of the last day of each calendar month |
Senior Notes (Unsecured) | |
Debt instrument | |
Schedule of Long-term Debt | The following table summarizes the material terms of our Senior Notes outstanding at September 30, 2017: 2020 Notes 2021 Notes 2024 Notes Outstanding principal $165 million $135 million $193 million Interest rate 5% 5.5% 6% Maturity date January 15, 2020 September 15, 2021 November 15, 2024 Interest payment dates January 15 July 15 March 15 September 15 May 15 November 15 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
DERIVATIVES | |
Schedule of current oil hedge positions | Q4 Q1 Q2 Q3 Q4 FY 2019 FY 2020 Sold Calls: Barrels per day Weighted-average price per barrel $ $ $ $ $ $ $ Purchased Puts: Barrels per day Weighted-average price per barrel $ $ $ $ $ $ $ Sold Puts: Barrels per day — — — Weighted-average price per barrel $ — $ $ $ $ $ — $ — Swaps: Barrels per day — — Weighted-average price per barrel $ $ $ $ $ $ — $ — |
Schedule of fair value (at gross and net) of outstanding derivatives | The following table presents the fair values (at gross and net) of our outstanding derivatives as of September 30, 2017 and December 31, 2016 (in millions): September 30, 2017 Balance Sheet Gross Gross Net Fair Value Assets Commodity Contracts Other current assets $ $ $ Commodity Contracts Other assets — Liabilities Commodity Contracts Accrued liabilities Commodity Contracts Other long-term liabilities — Total derivatives $ $ — $ December 31, 2016 Balance Sheet Gross Gross Net Fair Value Assets Commodity Contracts Other current assets $ $ $ Commodity Contracts Other assets Liabilities Commodity Contracts Accrued liabilities Commodity Contracts Other long-term liabilities Total derivatives $ $ — $ |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
EARNINGS PER SHARE | |
Calculation of basic and diluted EPS | Three months ended Nine months ended 2017 2016 (a) 2017 2016 (a) (in millions, except per-share amounts) Basic EPS calculation Net (loss) income $ $ $ $ Net income attributable to noncontrolling interest — — Net (loss) income attributable to common stock Less: net income (loss) allocated to participating securities — — Net (loss) income available to common stockholders $ $ $ $ Weighted-average common shares outstanding - basic Basic EPS $ $ $ $ Diluted EPS calculation Net (loss) income $ $ $ $ Net income attributable to noncontrolling interest — — Net (loss) income attributable to common stock Less: net income (loss) allocated to participating securities — — Net (loss) income available to common stockholders $ $ $ $ Weighted-average common shares outstanding - basic Dilutive effect of potentially dilutive securities — — — — Weighted-average common shares outstanding - diluted Diluted EPS $ $ $ $ (a) Our previously reported basic and diluted earnings per share for the three months ended September 30, 2016 changed from $13.45 to $13.04 and $13.06 to $13.04, respectively. Our previously reported basic earnings per share for the nine months ended September 30, 2016 also changed from $8.97 to $8.79. These changes occurred because of the application of the two-class method of earnings allocation in a period with net income. Unlike other periods in 2016, the third quarter of 2016 resulted in net income because of the non-recurring gain generated from the extinguishment of debt. This represents a 3% and 2% change for the three and nine months ended September 30, 2016, respectively, from the previously reported basic earnings per share amount, which we believe is immaterial based on the absolute amount as well as the non-recurring nature of the third quarter gain, which did not affect any trends embedded in operating results. |
RETIREMENT AND POSTRETIREMENT24
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS | |
Components of the net periodic benefit costs | Three months ended September 30, 2017 2016 Pension Postretirement Pension Postretirement (in millions) Service cost $ — $ $ — $ Interest cost Expected return on plan assets — — Recognized actuarial loss — — — Settlement loss — — Total $ $ $ $ Nine months ended September 30, 2017 2016 Pension Postretirement Pension Postretirement (in millions) Service cost $ $ $ $ Interest cost Expected return on plan assets — — Recognized actuarial loss — — Settlement loss — — Total $ $ $ $ |
CONDENSED CONSOLIDATING FINAN25
CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables) - Parent | 9 Months Ended |
Sep. 30, 2017 | |
Schedule of Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet Parent Combined Combined Eliminations Consolidated As of September 30, 2017 (in millions) Total current assets $ $ $ $ $ Total property, plant and equipment, net — Investments in consolidated subsidiaries — — Other assets — — TOTAL ASSETS $ $ $ $ $ Total current liabilities Long-term debt - principal amount — — — Deferred gain and issuance costs, net — — — Other long-term liabilities — Amounts due to (from) affiliates — — — Total equity TOTAL LIABILITIES AND EQUITY $ $ $ $ $ As of December 31, 2016 Total current assets $ $ $ — $ — $ Total property, plant and equipment, net — Investments in consolidated subsidiaries — — Other assets — — — TOTAL ASSETS $ $ $ $ $ Total current liabilities — — Long-term debt - principal amount — — — Deferred gain and issuance costs, net — — — Other long-term liabilities — Amounts due to (from) affiliates — — — Total equity TOTAL LIABILITIES AND EQUITY $ $ $ $ $ |
Schedule of Condensed Consolidating Statement of Operations | Condensed Consolidating Statement of Operations Parent Combined Combined Eliminations Consolidated For the nine months ended September 30, 2017 (in millions) Total revenues and other $ $ $ $ $ Total costs and other Non-operating (loss) income — — Income tax benefit — — — — — NET (LOSS) INCOME — Net income attributable to noncontrolling interest — — — NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCK $ $ $ — $ — $ For the nine months ended September 30, 2016 Total revenues and other $ — $ $ $ — $ Total costs and other — Non-operating income (loss) — — Income tax benefit — — — NET INCOME (LOSS) $ $ $ — $ — $ |
Schedule of Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows Parent Combined Combined Eliminations Consolidated For the nine months ended September 30, 2017 (in millions) Net cash (used) provided by operating activities $ $ $ $ — $ Net cash used by investing activities — Net cash provided (used) by financing activities — Increase (decrease) in cash and cash equivalents — Cash and cash equivalents—beginning of period — — — Cash and cash equivalents— end of period $ $ $ $ — $ For the nine months ended September 30, 2016 Net cash (used) provided by operating activities $ $ $ $ — $ Net cash used by investing activities — — Net cash provided (used) by financing activities — Decrease in cash and cash equivalents — — — Cash and cash equivalents—beginning of period — — — Cash and cash equivalents— end of period $ — $ $ — $ — $ |
THE SPIN-OFF AND BASIS OF PRE26
THE SPIN-OFF AND BASIS OF PRESENTATION - (Details) | Nov. 30, 2014 |
Spinoff - CRC | Occidental Petroleum | |
Separation and Spin Off Transactions | |
Percentage of outstanding shares of common stock initially retained by Occidental | 18.50% |
OTHER INFORMATION (Details)
OTHER INFORMATION (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Cash restricted for capital investment | $ 17 | ||
Interest paid | 251 | $ 244 | |
Other current assets | |||
Amount due from joint interest partners | 71 | $ 51 | |
Derivative assets from commodities contracts | 46 | 39 | |
Assets held for sale | 12 | 19 | |
Accrued liabilities | |||
Net greenhouse gas obligations | 104 | 89 | |
Accrued interest | 66 | 25 | |
Accrued employee-related costs | 63 | 91 | |
Derivative liabilities from commodities contracts | 60 | 103 | |
Liabilities held for sale | 0 | 7 | |
Other long-term liabilities | |||
Non-current asset retirement obligation | $ 410 | $ 397 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
INVENTORIES | ||
Materials and supplies | $ 54 | $ 55 |
Finished goods | 4 | 3 |
Total | $ 58 | $ 58 |
DEBT - Schedule of long-term de
DEBT - Schedule of long-term debt (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Oct. 31, 2014 |
Debt | ||||
Total Debt - Principal Amount | $ 5,139 | $ 5,268 | ||
Less Current Maturities of Long-Term Debt | (100) | (100) | ||
Long-Term Debt - Principal Amount | 5,039 | 5,168 | ||
Deferred gain and issuance costs, net | 356 | 397 | ||
Deferred gains | 434 | 489 | ||
Deferred issuance costs | 78 | 92 | ||
2016 Credit Agreement (Secured First Lien) | ||||
Debt | ||||
Total Debt - Principal Amount | 1,000 | 1,000 | ||
Second Lien Notes | 8% Notes Due 2022 | ||||
Debt | ||||
Total Debt - Principal Amount | $ 2,250 | $ 2,250 | ||
Debt instrument interest rate stated percentage | 8.00% | 8.00% | 8.00% | |
Senior Notes (Unsecured) | 5% Notes Due 2020 | ||||
Debt | ||||
Total Debt - Principal Amount | $ 165 | $ 193 | ||
Debt instrument interest rate stated percentage | 5.00% | 5.00% | 5.00% | |
Senior Notes (Unsecured) | 5.5% Notes Due 2021 | ||||
Debt | ||||
Total Debt - Principal Amount | $ 135 | $ 135 | ||
Debt instrument interest rate stated percentage | 5.50% | 5.50% | 5.50% | |
Senior Notes (Unsecured) | 6% Notes Due 2024 | ||||
Debt | ||||
Total Debt - Principal Amount | $ 193 | $ 193 | ||
Debt instrument interest rate stated percentage | 6.00% | 6.00% | 6.00% | |
Revolving Credit Facility | 2014 Credit Facilities (Secured First Lien) | ||||
Debt | ||||
Total Debt - Principal Amount | $ 837 | $ 847 | ||
Term Loan Facility | 2014 Credit Facilities (Secured First Lien) | ||||
Debt | ||||
Total Debt - Principal Amount | $ 559 | $ 650 |
DEBT - 2014 Credit Facilities (
DEBT - 2014 Credit Facilities (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 21 Months Ended | |||||||||
Feb. 28, 2017USD ($) | Aug. 31, 2016USD ($) | Sep. 30, 2017USD ($)item | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Sep. 30, 2017USD ($)item | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)item | Nov. 01, 2017USD ($) | |
Debt | |||||||||||||
Aggregate payments of term loan | $ 91 | $ 329 | |||||||||||
2014 Credit Facilities (Secured First Lien) | |||||||||||||
Debt | |||||||||||||
Maximum borrowing capacity | $ 2,000 | 2,000 | $ 2,000 | ||||||||||
Borrowing base | $ 2,300 | ||||||||||||
Maximum principal amount of unsecured senior notes that may be repurchased at less than a significant discount to par from the net cash proceeds from asset sales | $ 140 | $ 140 | $ 140 | ||||||||||
Minimum percent of asset sale proceeds must be in cash | 75.00% | 75.00% | 75.00% | ||||||||||
Percentage of proceeds from non-borrowing base asset sales used to repurchase debt if leverage ratio less than 4:00 to 1:00 | 40.00% | 40.00% | 40.00% | ||||||||||
Leverage ratio less than of which the percent of net cash proceeds from non-borrowing base asset sales that may be used to repurchase unsecured senior at a discount to par, general corporate purposes or oil and gas expenditures falls to 40% | 4.00% | 4.00% | 4.00% | ||||||||||
Approval percentage measured by total exposure of lenders for approval of increases in borrowing base | 80.00% | 80.00% | 80.00% | ||||||||||
Approval percentage measured by total exposure of lenders to request a special redetermination | 67.00% | 67.00% | 67.00% | ||||||||||
Percent of commitment required to decrease or affirm the borrowing base | 67.00% | 67.00% | 67.00% | ||||||||||
Number of consecutive redeterminations between which CRC or lenders can request a special redetermination | item | 3 | 3 | 3 | ||||||||||
Financial performance covenants | |||||||||||||
Minimum monthly liquidity | $ 250 | $ 250 | $ 250 | ||||||||||
Percent of net cash proceeds from asset sales which must be used (other than permitted development joint ventures and other transactions) to repay loans outstanding under the 2014 First-Out Credit Facilities | 100.00% | 100.00% | 100.00% | ||||||||||
Maximum percent of net cash proceeds from non-borrowing base asset sales that may be used to repurchase unsecured senior notes at a discount to par, general corporate purposes or oil and gas expenditures | 50.00% | 50.00% | 50.00% | ||||||||||
Maximum additional non-Credit Facility indebtedness | $ 50 | $ 50 | $ 50 | ||||||||||
Amount of cash on hand above which amounts owed under the Revolving Credit Facility must be repaid | $ 150 | $ 150 | $ 150 | ||||||||||
2014 Credit Facilities (Secured First Lien) | Federal fund rate | |||||||||||||
Debt | |||||||||||||
Interest rate added to variable rate basis (as a percent) | 0.50% | ||||||||||||
2014 Credit Facilities (Secured First Lien) | One-Month LIBOR | |||||||||||||
Debt | |||||||||||||
Interest rate added to variable rate basis (as a percent) | 1.00% | ||||||||||||
2014 Credit Facilities (Secured First Lien) | Quarter ending through September 30, 2017 | |||||||||||||
Financial performance covenants | |||||||||||||
Maximum leverage ratio | 3.25 | 3.25 | 3.25 | ||||||||||
Minimum interest coverage ratio | 1.20 | 1.20 | 1.20 | ||||||||||
2014 Credit Facilities (Secured First Lien) | Quarter ending through December 31, 2017 | |||||||||||||
Financial performance covenants | |||||||||||||
Maximum leverage ratio | 3.25 | 3.25 | 3.25 | ||||||||||
Minimum interest coverage ratio | 1.20 | 1.20 | 1.20 | ||||||||||
Minimum asset coverage ratio | 1.20 | 1.20 | 1.20 | ||||||||||
2014 Credit Facilities (Secured First Lien) | Quarter ending through March 31, 2018 | |||||||||||||
Financial performance covenants | |||||||||||||
Maximum leverage ratio | 2.25 | 2.25 | 2.25 | ||||||||||
Minimum interest coverage ratio | 2 | 2 | 2 | ||||||||||
2014 Credit Facilities (Secured First Lien) | Quarter ending through June 30, 2018 | |||||||||||||
Financial performance covenants | |||||||||||||
Maximum leverage ratio | 2.25 | 2.25 | 2.25 | ||||||||||
Minimum interest coverage ratio | 2 | 2 | 2 | ||||||||||
Minimum asset coverage ratio | 1.20 | 1.20 | 1.20 | ||||||||||
2014 Credit Facilities (Secured First Lien) | Quarter ending through September 30, 2018 | |||||||||||||
Financial performance covenants | |||||||||||||
Maximum leverage ratio | 2.25 | 2.25 | 2.25 | ||||||||||
Minimum interest coverage ratio | 2 | 2 | 2 | ||||||||||
2014 Credit Facilities (Secured First Lien) | Quarter ending through December 31, 2018 | |||||||||||||
Financial performance covenants | |||||||||||||
Maximum leverage ratio | 2.25 | 2.25 | 2.25 | ||||||||||
Minimum interest coverage ratio | 2 | 2 | 2 | ||||||||||
Minimum asset coverage ratio | 1.20 | 1.20 | 1.20 | ||||||||||
2014 Credit Facilities (Secured First Lien) | 5% Notes Due 2020 and 5.50% Notes Due 2021 | |||||||||||||
Debt | |||||||||||||
Outstanding amount that triggers accelerated payment | $ 100 | $ 100 | $ 100 | ||||||||||
Financial performance covenants | |||||||||||||
Period before maturity of the specified notes | 182 days | ||||||||||||
Minimum | 2014 Credit Facilities (Secured First Lien) | |||||||||||||
Financial performance covenants | |||||||||||||
Total leverage ratio when applicable margins on LIBOR and ABR loans apply | 3 | 3 | 3 | ||||||||||
Minimum | 2014 Credit Facilities (Secured First Lien) | Applicable margin on Alternate Base Rate loans | |||||||||||||
Debt | |||||||||||||
Interest rate added to variable rate basis (as a percent) | 2.50% | ||||||||||||
Minimum | 2014 Credit Facilities (Secured First Lien) | Applicable margin on LIBOR loans | |||||||||||||
Debt | |||||||||||||
Interest rate added to variable rate basis (as a percent) | 1.50% | ||||||||||||
Maximum | 2014 Credit Facilities (Secured First Lien) | Applicable margin on Alternate Base Rate loans | |||||||||||||
Debt | |||||||||||||
Interest rate added to variable rate basis (as a percent) | 3.50% | ||||||||||||
Maximum | 2014 Credit Facilities (Secured First Lien) | Applicable margin on LIBOR loans | |||||||||||||
Debt | |||||||||||||
Interest rate added to variable rate basis (as a percent) | 2.50% | ||||||||||||
Term Loan Facility | 2014 Credit Facilities (Secured First Lien) | |||||||||||||
Debt | |||||||||||||
Maximum borrowing capacity | $ 559 | $ 559 | $ 559 | ||||||||||
Quarterly installment payment of Term Loan | 25 | $ 25 | $ 25 | $ 25 | $ 25 | $ 25 | $ 25 | ||||||
Aggregate payments of term loan | 175 | ||||||||||||
Prepayment of term loan from proceeds of non-core asset sale | $ 16 | ||||||||||||
Prepayment of term loan from proceeds of 2016 Credit Agreement | $ 250 | ||||||||||||
Revolving Credit Facility | 2014 Credit Facilities (Secured First Lien) | |||||||||||||
Debt | |||||||||||||
Maximum borrowing capacity | 1,400 | 1,400 | 1,400 | ||||||||||
Maximum sub-limit on borrowing capacity for issuance of letters of credit | 400 | 400 | 400 | ||||||||||
Increase to maximum borrowing capacity with lender approval | 245 | $ 245 | 245 | ||||||||||
Commitment fees on unused portion of the Revolving Credit Facility | 0.50% | ||||||||||||
Available borrowing capacity, subject to minimum liquidity requirement | $ 431 | $ 431 | $ 431 |
DEBT - Credit Facilities Amendm
DEBT - Credit Facilities Amendments (Details) $ in Millions | Nov. 08, 2017USD ($) |
2016 Credit Agreement, Second Lien Notes and Senior Notes | Amendment to the 2014 Credit Facilities | |
Financial performance covenants | |
Percentage of proceeds from the power plant monetization that may be use to prepay debts | 50.00% |
2016 Credit Agreement, Second Lien Notes and Senior Notes | Amendment to the 2014 Credit Facilities | Up to $500 million | |
Financial performance covenants | |
Maximum percent of net cash proceeds from non-borrowing base asset sales that may be used to repurchase notes or prepay our 2016 Credit Agreement, Second Lien Notes and Senior Notes | 75.00% |
2016 Credit Agreement, Second Lien Notes and Senior Notes | Amendment to the 2014 Credit Facilities | $500 million and $1 billion | |
Financial performance covenants | |
Maximum percent of net cash proceeds from non-borrowing base asset sales that may be used to repurchase notes or prepay our 2016 Credit Agreement, Second Lien Notes and Senior Notes | 50.00% |
2016 Credit Agreement, Second Lien Notes and Senior Notes | Amendment to the 2014 Credit Facilities | In excess of $1 billion | |
Financial performance covenants | |
Maximum percent of net cash proceeds from non-borrowing base asset sales that may be used to repurchase notes or prepay our 2016 Credit Agreement, Second Lien Notes and Senior Notes | 25.00% |
2014 Credit Facilities (Secured First Lien), Amended | Amendment to the 2014 Credit Facilities | |
Financial performance covenants | |
Minimum new term loan proceeds required to be used to repay our 2014 Credit Facilities for amendment to become effective | $ 900 |
Minimum liquidity at closing of amendments to credit facility | $ 500 |
Minimum interest coverage ratio | 1.20 |
2014 Credit Facilities (Secured First Lien), Amended | 5% Notes Due 2020 | Amendment to the 2014 Credit Facilities | |
Debt | |
Outstanding amount that triggers accelerated payment prior to June 30, 2021 | $ 100 |
Financial performance covenants | |
Period before maturity of the specified notes | 273 days |
2014 Credit Facilities (Secured First Lien), Amended | 5.5% Notes Due 2021 | Amendment to the 2014 Credit Facilities | |
Debt | |
Outstanding amount that triggers accelerated payment prior to June 30, 2021 | $ 100 |
Financial performance covenants | |
Period before maturity of the specified notes | 273 days |
Minimum | 2016 Credit Agreement, Second Lien Notes and Senior Notes | Amendment to the 2014 Credit Facilities | $500 million and $1 billion | |
Financial performance covenants | |
Proceeds from non-borrowing base asset sales that may be used to prepay our 2016 Credit Agreement, Second Lien Notes and Senior Notes | $ 500 |
Minimum | 2016 Credit Agreement, Second Lien Notes and Senior Notes | Amendment to the 2014 Credit Facilities | In excess of $1 billion | |
Financial performance covenants | |
Proceeds from non-borrowing base asset sales that may be used to prepay our 2016 Credit Agreement, Second Lien Notes and Senior Notes | $ 1,000 |
Minimum | 2014 Credit Facilities (Secured First Lien), Amended | Amendment to the 2014 Credit Facilities | Applicable margin on Alternate Base Rate loans | |
Debt | |
Interest rate added to variable rate basis (as a percent) | 3.25% |
Minimum | 2014 Credit Facilities (Secured First Lien), Amended | Amendment to the 2014 Credit Facilities | Applicable margin on LIBOR loans | |
Debt | |
Interest rate added to variable rate basis (as a percent) | 2.25% |
Maximum | 2016 Credit Agreement, Second Lien Notes and Senior Notes | Amendment to the 2014 Credit Facilities | Up to $500 million | |
Financial performance covenants | |
Proceeds from non-borrowing base asset sales that may be used to prepay our 2016 Credit Agreement, Second Lien Notes and Senior Notes | $ 500 |
Maximum | 2016 Credit Agreement, Second Lien Notes and Senior Notes | Amendment to the 2014 Credit Facilities | $500 million and $1 billion | |
Financial performance covenants | |
Proceeds from non-borrowing base asset sales that may be used to prepay our 2016 Credit Agreement, Second Lien Notes and Senior Notes | $ 1,000 |
Maximum | 2014 Credit Facilities (Secured First Lien), Amended | Amendment to the 2014 Credit Facilities | Applicable margin on Alternate Base Rate loans | |
Debt | |
Interest rate added to variable rate basis (as a percent) | 4.00% |
Maximum | 2014 Credit Facilities (Secured First Lien), Amended | Amendment to the 2014 Credit Facilities | Applicable margin on LIBOR loans | |
Debt | |
Interest rate added to variable rate basis (as a percent) | 3.00% |
Term Loan Facility | 2014 Credit Facilities (Secured First Lien), Amended | September 30, 2019 and thereafter | |
Financial performance covenants | |
Quarterly installment payments under amended agreement | $ 12.5 |
Revolving Credit Facility | 2014 Credit Facilities (Secured First Lien), Amended | Amendment to the 2014 Credit Facilities | |
Financial performance covenants | |
Minimum monthly liquidity | 150 |
Commitment amount | $ 1,000 |
2014 Credit Facilities and New Term Loan | 2014 Credit Facilities (Secured First Lien), Amended | Amendment to the 2014 Credit Facilities | Through 2019 | |
Financial performance covenants | |
Maximum leverage ratio | 1.90 |
2014 Credit Facilities and New Term Loan | 2014 Credit Facilities (Secured First Lien), Amended | Amendment to the 2014 Credit Facilities | After 2019 | |
Financial performance covenants | |
Maximum leverage ratio | 1.50 |
DEBT - 2016 Credit Agreement (D
DEBT - 2016 Credit Agreement (Details) $ in Millions | 1 Months Ended | 9 Months Ended | |||
Aug. 31, 2016USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | Oct. 31, 2014USD ($) | |
Debt | |||||
Repayment of revolving credit facility | $ 1,010 | $ 1,728 | |||
2016 Credit Agreement (Secured First Lien) | |||||
Debt | |||||
Original issue discount | $ 10 | ||||
Aggregate principal amount issued | $ 1,000 | 1,000 | $ 1,000 | ||
2016 Credit Agreement (Secured First Lien) | Applicable margin on Alternate Base Rate loans | |||||
Debt | |||||
Interest rate added to variable rate basis (as a percent) | 10.375% | ||||
Floor rate (as a percent) | 1.00% | ||||
2016 Credit Agreement (Secured First Lien) | Applicable margin on LIBOR loans | |||||
Debt | |||||
Interest rate added to variable rate basis (as a percent) | 9.375% | ||||
2016 Credit Agreement (Secured First Lien) | Any June 30 and December 31 | |||||
Debt | |||||
Minimum asset coverage ratio | 1.20 | ||||
2016 Credit Agreement (Secured First Lien) | 5% Notes Due 2020 | |||||
Debt | |||||
Outstanding amount that triggers accelerated payment | $ 100 | ||||
Period before maturity of the specified notes | 91 days | ||||
2016 Credit Agreement (Secured First Lien) | 5.5% Notes Due 2021 | |||||
Debt | |||||
Outstanding amount that triggers accelerated payment | $ 100 | ||||
Period before maturity of the specified notes | 91 days | ||||
Senior Notes (Unsecured) | |||||
Debt | |||||
Aggregate principal amount issued | $ 5,000 | ||||
Senior Notes (Unsecured) | 5% Notes Due 2020 | |||||
Debt | |||||
Aggregate principal amount issued | 1,000 | ||||
Senior Notes (Unsecured) | 5.5% Notes Due 2021 | |||||
Debt | |||||
Aggregate principal amount issued | $ 1,750 | ||||
Term Loan Facility | 2014 Credit Facilities (Secured First Lien) | |||||
Debt | |||||
Proceeds used to repay 2014 revolving credit facility | $ 250 | ||||
Revolving Credit Facility | 2014 Credit Facilities (Secured First Lien) | |||||
Debt | |||||
Repayment of revolving credit facility | $ 740 |
DEBT - Second Lien Notes (Detai
DEBT - Second Lien Notes (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2015 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Oct. 31, 2014 | |
Debt | ||||||
Outstanding borrowings | $ 5,139 | $ 5,268 | ||||
Pre-tax deferred gain on repurchase of debt from proceeds of Second Lien Notes | $ 660 | $ 4 | $ 793 | |||
Second Lien Notes | ||||||
Debt | ||||||
Percentage of principal amount at which notes can be redeemed in case of change control | 101.00% | |||||
Second Lien Notes | 8% Notes Due 2022 | ||||||
Debt | ||||||
Interest rate (as a percent) | 8.00% | 8.00% | 8.00% | |||
Outstanding borrowings | $ 2,250 | $ 2,250 | ||||
Aggregate principal amount issued | $ 2,250 | |||||
Second Lien Notes | 8% Notes Due 2022 | Prior to December 15, 2017, from proceeds of certain equity offerings | ||||||
Debt | ||||||
Percentage of principal amount at which notes can be redeemed prior to their maturity date | 108.00% | |||||
Redemption period start | Dec. 1, 2015 | |||||
Redemption period end | Dec. 14, 2017 | |||||
Second Lien Notes | 8% Notes Due 2022 | Prior to December 15, 2018 | ||||||
Debt | ||||||
Percentage of principal amount at which notes can be redeemed prior to their maturity date | 100.00% | |||||
Redemption period start | Dec. 15, 2017 | |||||
Redemption period end | Dec. 14, 2018 | |||||
Second Lien Notes | 8% Notes Due 2022 | On or after December 15, 2018 | ||||||
Debt | ||||||
Redemption period start | Dec. 15, 2018 | |||||
Redemption period end | Dec. 31, 2018 | |||||
Second Lien Notes | 8% Notes Due 2022 | 2019 and thereafter | ||||||
Debt | ||||||
Percentage of principal amount at which notes can be redeemed prior to their maturity date | 100.00% | |||||
Redemption period start | Jan. 1, 2019 | |||||
Redemption period end | Dec. 15, 2022 | |||||
Senior Notes (Unsecured) | ||||||
Debt | ||||||
Proceeds from Second Lien Notes used to reduce principal amount of senior note debt through exchange | 2,800 | |||||
Pre-tax deferred gain on repurchase of debt from proceeds of Second Lien Notes | $ 560 | |||||
Aggregate principal amount issued | $ 5,000 | |||||
Percentage of principal amount at which notes can be redeemed in case of change control | 101.00% | |||||
Percentage of principal amount at which notes can be redeemed prior to their maturity date | 100.00% | |||||
Minimum | Second Lien Notes | 8% Notes Due 2022 | On or after December 15, 2018 | ||||||
Debt | ||||||
Percentage of principal amount at which notes can be redeemed prior to their maturity date | 102.00% | |||||
Maximum | Second Lien Notes | 8% Notes Due 2022 | Prior to December 15, 2017, from proceeds of certain equity offerings | ||||||
Debt | ||||||
Percentage of principal amount that may be redeemed | 35.00% | |||||
Maximum | Second Lien Notes | 8% Notes Due 2022 | On or after December 15, 2018 | ||||||
Debt | ||||||
Percentage of principal amount at which notes can be redeemed prior to their maturity date | 104.00% |
DEBT - Senior Notes (Details)
DEBT - Senior Notes (Details) - USD ($) shares in Millions, $ in Millions | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||
Oct. 31, 2014 | Sep. 30, 2017 | Dec. 31, 2016 | Mar. 31, 2017 | Dec. 31, 2015 | |
Debt | |||||
Outstanding borrowings | $ 5,139 | $ 5,268 | |||
Senior Notes (Unsecured) | |||||
Debt | |||||
Principal amount of debt reduction through payment or repurchase | 1,500 | ||||
Repurchase value of the principal amounts | $ 750 | ||||
Aggregate principal amount issued | $ 5,000 | ||||
Net proceeds from issuance of senior notes used to make cash distribution to Occidental | $ 4,950 | ||||
Number of common stock shares exchanged to pay down unsecured senior notes | 3.4 | ||||
Debt reduction from exchange of common stock shares | $ 100 | ||||
Percentage of principal amount at which notes can be redeemed in case of change control | 101.00% | ||||
Percentage of principal amount at which notes can be redeemed prior to their maturity date | 100.00% | ||||
Senior Notes (Unsecured) | 5% Notes Due 2020 | |||||
Debt | |||||
Interest rate (as a percent) | 5.00% | 5.00% | 5.00% | ||
Outstanding borrowings | $ 165 | $ 193 | |||
Principal amount of debt reduction through payment or repurchase | $ 28 | $ 33 | |||
Repurchase value of the principal amounts | $ 24 | $ 13 | |||
Aggregate principal amount issued | $ 1,000 | ||||
Senior Notes (Unsecured) | 5.5% Notes Due 2021 | |||||
Debt | |||||
Interest rate (as a percent) | 5.50% | 5.50% | 5.50% | ||
Outstanding borrowings | $ 135 | $ 135 | |||
Aggregate principal amount issued | $ 1,750 | ||||
Senior Notes (Unsecured) | 6% Notes Due 2024 | |||||
Debt | |||||
Interest rate (as a percent) | 6.00% | 6.00% | 6.00% | ||
Outstanding borrowings | $ 193 | $ 193 | |||
Aggregate principal amount issued | $ 2,250 |
DEBT - Other (Details)
DEBT - Other (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Other Fixed-Rate and Variable-Rate Debt Disclosures | ||
Estimated fair value of long-term debt | $ 4,100 | $ 4,900 |
Debt carrying value | 5,139 | 5,268 |
Letter of Credit | Revolving Credit Facility | ||
Other Variable-Rate Debt Disclosures | ||
Aggregate letters of credit issued | $ 137 | $ 130 |
Pro Forma | Credit Facilities | ||
Other Variable-Rate Debt Disclosures | ||
Percentage of change in the variable interest rates | 0.125% | |
Effect of 1/8 percent change in annual interest expense | $ 3 |
ACQUISITIONS, DIVESTITURES AN36
ACQUISITIONS, DIVESTITURES AND OTHER (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Jul. 31, 2017USD ($)item | Apr. 30, 2017USD ($) | Mar. 31, 2017USD ($)item | Feb. 28, 2017USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | |
Acquisition | |||||||
Proceeds from sale of non-core assets | $ 32 | ||||||
Gains on asset divestitures | 21 | $ 21 | $ 31 | ||||
Contributions | 98 | ||||||
Distributions | 6 | ||||||
Net loss attributable to noncontrolling interest | $ 1 | 1 | |||||
Noncontrolling Interest | Joint venture with BSP | |||||||
Acquisition | |||||||
Contributions | 98 | ||||||
Contribution issuance discounts | 2 | ||||||
Distributions | 6 | ||||||
Net loss attributable to noncontrolling interest | 1 | ||||||
Joint venture with BSP | BSP | |||||||
Acquisition | |||||||
Maximum commitment contribution | 250 | ||||||
Number of $50 commitments funded | item | 1 | 1 | |||||
Additional payment to redeem preferred interest | $ 0 | ||||||
Commitment contributed | $ 50 | $ 50 | |||||
Joint venture with MIRA | |||||||
Acquisition | |||||||
Working interest retained by CRC (as a percent) | 10.00% | ||||||
CRC's working interest after MIRA achieves it rate of return (as a percent) | 75.00% | ||||||
Joint venture with MIRA | MIRA | |||||||
Acquisition | |||||||
Maximum commitment contribution | $ 300 | ||||||
Commitment contributed | $ 38 | ||||||
Working interest acquired by MIRA | 90.00% | ||||||
Funding provided by MIRA for development of properties (as a percent) | 100.00% | ||||||
Initial commitment | $ 160 | ||||||
Investment period of initial commitment | 2 years |
DERIVATIVES - General (Details)
DERIVATIVES - General (Details) - Crude Oil | Sep. 30, 2017bbl / d$ / bblbbl |
Swaps | December 2017 Production | |
Derivatives | |
Maximum increase in volume for the period of crude oil counterparties swaps (in barrels per day) | bbl | 5,000 |
Weighted-average strike price (in dollars per barrel) | 55.03 |
Swaps | Q4 2017 | |
Derivatives | |
Daily Volume (in Bbl) | bbl / d | 30,000 |
Weighted-average price (in dollars per barrel) | 55 |
Swaps | Q1 2018 | |
Derivatives | |
Daily Volume (in Bbl) | bbl / d | 29,000 |
Weighted-average price (in dollars per barrel) | 60 |
Swaps | Q2 2018 | |
Derivatives | |
Daily Volume (in Bbl) | bbl / d | 29,000 |
Weighted-average price (in dollars per barrel) | 60 |
Swaps | Q3 2018 | |
Derivatives | |
Daily Volume (in Bbl) | bbl / d | 19,000 |
Weighted-average price (in dollars per barrel) | 60.13 |
Swaps | Q4 2018 | |
Derivatives | |
Daily Volume (in Bbl) | bbl / d | 19,000 |
Weighted-average price (in dollars per barrel) | 60.13 |
Swaps | First half of 2018 production | |
Derivatives | |
Maximum increase in volume per quarter of crude oil counter-party swaps (in barrels) | bbl | 19,000 |
Weighted-average price (in dollars per barrel) | 60 |
Maximum increase in volume for the period of crude oil counterparties swaps (in barrels per day) | bbl | 10,000 |
Weighted-average strike price (in dollars per barrel) | 60 |
Swaps | Second half of 2018 production | |
Derivatives | |
Maximum increase in volume per quarter of crude oil counter-party swaps (in barrels) | bbl | 19,000 |
Weighted-average price (in dollars per barrel) | 60.13 |
Maximum increase in volume for the period of crude oil counterparties swaps (in barrels per day) | bbl | 5,000 |
Weighted-average strike price (in dollars per barrel) | 60.15 |
Purchased | Puts | Q4 2017 | |
Derivatives | |
Daily Volume (in Bbl) | bbl / d | 11,300 |
Weighted-average price (in dollars per barrel) | 47.75 |
Purchased | Puts | Q1 2018 | |
Derivatives | |
Daily Volume (in Bbl) | bbl / d | 1,200 |
Weighted-average price (in dollars per barrel) | 45.82 |
Purchased | Puts | Q2 2018 | |
Derivatives | |
Daily Volume (in Bbl) | bbl / d | 1,200 |
Weighted-average price (in dollars per barrel) | 45.83 |
Purchased | Puts | Q3 2018 | |
Derivatives | |
Daily Volume (in Bbl) | bbl / d | 1,100 |
Weighted-average price (in dollars per barrel) | 45.83 |
Purchased | Puts | Q4 2018 | |
Derivatives | |
Daily Volume (in Bbl) | bbl / d | 1,100 |
Weighted-average price (in dollars per barrel) | 45.85 |
Purchased | Puts | FY 2019 | |
Derivatives | |
Daily Volume (in Bbl) | bbl / d | 1,000 |
Weighted-average price (in dollars per barrel) | 45.84 |
Purchased | Puts | FY 2020 | |
Derivatives | |
Daily Volume (in Bbl) | bbl / d | 900 |
Weighted-average price (in dollars per barrel) | 43.91 |
Sold | Calls | Q4 2017 | |
Derivatives | |
Daily Volume (in Bbl) | bbl / d | 6,300 |
Weighted-average price (in dollars per barrel) | 57.80 |
Sold | Calls | Q1 2018 | |
Derivatives | |
Daily Volume (in Bbl) | bbl / d | 16,800 |
Weighted-average price (in dollars per barrel) | 58.86 |
Sold | Calls | Q2 2018 | |
Derivatives | |
Daily Volume (in Bbl) | bbl / d | 16,200 |
Weighted-average price (in dollars per barrel) | 58.92 |
Sold | Calls | Q3 2018 | |
Derivatives | |
Daily Volume (in Bbl) | bbl / d | 16,100 |
Weighted-average price (in dollars per barrel) | 58.91 |
Sold | Calls | Q4 2018 | |
Derivatives | |
Daily Volume (in Bbl) | bbl / d | 16,100 |
Weighted-average price (in dollars per barrel) | 58.91 |
Sold | Calls | FY 2019 | |
Derivatives | |
Daily Volume (in Bbl) | bbl / d | 1,000 |
Weighted-average price (in dollars per barrel) | 60 |
Sold | Calls | FY 2020 | |
Derivatives | |
Daily Volume (in Bbl) | bbl / d | 900 |
Weighted-average price (in dollars per barrel) | 60 |
Sold | Puts | Q1 2018 | |
Derivatives | |
Daily Volume (in Bbl) | bbl / d | 29,000 |
Weighted-average price (in dollars per barrel) | 45 |
Sold | Puts | Q2 2018 | |
Derivatives | |
Daily Volume (in Bbl) | bbl / d | 29,000 |
Weighted-average price (in dollars per barrel) | 45 |
Sold | Puts | Q3 2018 | |
Derivatives | |
Daily Volume (in Bbl) | bbl / d | 19,000 |
Weighted-average price (in dollars per barrel) | 45 |
Sold | Puts | Q4 2018 | |
Derivatives | |
Daily Volume (in Bbl) | bbl / d | 19,000 |
Weighted-average price (in dollars per barrel) | 45 |
DERIVATIVES - Fair Value (Detai
DERIVATIVES - Fair Value (Details) - Commodity Contracts - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Presented in the Balance Sheet | ||
Fair Value of Derivatives | ||
Total derivatives | $ (20) | $ (97) |
Presented in the Balance Sheet | Other current assets | ||
Fair Value of Derivatives | ||
Net Fair Value Presented in the Balance Sheet | 46 | 39 |
Presented in the Balance Sheet | Other assets | ||
Fair Value of Derivatives | ||
Net Fair Value Presented in the Balance Sheet | 13 | 19 |
Presented in the Balance Sheet | Accrued liabilities | ||
Fair Value of Derivatives | ||
Net Fair Value Presented in the Balance Sheet | (60) | (103) |
Presented in the Balance Sheet | Other long-term liabilities | ||
Fair Value of Derivatives | ||
Net Fair Value Presented in the Balance Sheet | (19) | (52) |
Recognized Fair Value | ||
Fair Value of Derivatives | ||
Total derivatives | (20) | (97) |
Recognized Fair Value | Other current assets | ||
Fair Value of Derivatives | ||
Gross Amounts Recognized at Fair Value | 52 | 88 |
Gross Amounts Offset in the Balance Sheet | (6) | (49) |
Recognized Fair Value | Other assets | ||
Fair Value of Derivatives | ||
Gross Amounts Recognized at Fair Value | 13 | 25 |
Gross Amounts Offset in the Balance Sheet | (6) | |
Recognized Fair Value | Accrued liabilities | ||
Fair Value of Derivatives | ||
Gross Amounts Recognized at Fair Value | (66) | (152) |
Gross Amounts Offset in the Balance Sheet | 6 | 49 |
Recognized Fair Value | Other long-term liabilities | ||
Fair Value of Derivatives | ||
Gross Amounts Recognized at Fair Value | $ (19) | (58) |
Gross Amounts Offset in the Balance Sheet | $ 6 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
EARNINGS PER SHARE | ||||
Common stock issued in connection with employee stock purchase plan | 51,000 | 53,000 | 154,000 | 237,000 |
EARNINGS PER SHARE - Calculatio
EARNINGS PER SHARE - Calculation of EPS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Basic EPS calculation | ||||
Net (loss) income | $ (132) | $ 546 | $ (127) | $ 356 |
Net income attributable to noncontrolling interest | (1) | (1) | ||
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCK | (133) | 546 | (128) | 356 |
Less: net income (loss) allocated to participating securities | 0 | (14) | 0 | (7) |
Net (loss) income available to common stockholders | $ (133) | $ 532 | $ (128) | $ 349 |
Weighed-average common shares outstanding - basic | 42.7 | 40.8 | 42.5 | 39.7 |
Basic EPS (in dollars per share) | $ (3.11) | $ 13.04 | $ (3.01) | $ 8.79 |
Diluted EPS calculation | ||||
Net (loss) income | $ (132) | $ 546 | $ (127) | $ 356 |
Net income attributable to noncontrolling interest | (1) | (1) | ||
Net (loss) income attributable to common stock | (133) | 546 | (128) | 356 |
Less: net income (loss) allocated to participating securities | 0 | (14) | 0 | (7) |
Net (loss) income available to common stockholders | $ (133) | $ 532 | $ (128) | $ 349 |
Weighed-average common shares outstanding - basic | 42.7 | 40.8 | 42.5 | 39.7 |
Dilutive effect of potentially dilutive securities | 0 | 0 | 0 | 0 |
Weighted-average common shares outstanding - diluted | 42.7 | 40.8 | 42.5 | 39.7 |
Diluted EPS (in dollars per share) | $ (3.11) | $ 13.04 | $ (3.01) | $ 8.79 |
Previously reported | ||||
Basic EPS calculation | ||||
Basic EPS (in dollars per share) | 13.45 | $ 8.97 | ||
Diluted EPS calculation | ||||
Diluted EPS (in dollars per share) | $ 13.06 | |||
Percentage of change in basic earnings per share | 3.00% | 2.00% |
RETIREMENT AND POSTRETIREMENT41
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net periodic benefit costs: | ||||
Employer contributions to pension plan | $ 1 | $ 1 | $ 6 | $ 7 |
Expected contribution to defined benefit pension plans during the reminder of 2017 | 1 | |||
Pension Benefit | ||||
Net periodic benefit costs: | ||||
Service cost | 1 | 1 | ||
Interest cost | 1 | 1 | 2 | 2 |
Expected return on plan assets | (1) | (1) | (2) | (2) |
Recognized actuarial loss | 1 | 1 | 1 | |
Settlement loss | 1 | 1 | 4 | 6 |
Total | 1 | 2 | 6 | 8 |
Postretirement Benefit | ||||
Net periodic benefit costs: | ||||
Service cost | 1 | 1 | 3 | 3 |
Interest cost | 1 | 1 | 3 | 3 |
Total | $ 2 | $ 2 | $ 6 | $ 6 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Mar. 31, 2016 | Sep. 30, 2016 | |
INCOME TAXES | ||
Deferred tax benefit resulting from change in valuation allowance | $ 78 | $ 78 |
CONDENSED CONSOLIDATING FINAN43
CONDENSED CONSOLIDATING FINANCIAL INFORMATION - Balance sheet (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Total current assets | $ 452 | $ 425 |
Total property, plant and equipment, net | 5,692 | 5,885 |
Other assets | 39 | 44 |
TOTAL ASSETS | 6,183 | 6,354 |
Total current liabilities | 746 | 726 |
Long-Term Debt - Principal Amount | 5,039 | 5,168 |
Deferred gain and issuance costs, net | 356 | 397 |
Other long-term liabilities | 616 | 620 |
Total equity | (574) | (557) |
TOTAL LIABILITIES AND EQUITY | 6,183 | 6,354 |
Eliminations | ||
Assets | ||
Total current assets | (2) | |
Investments in consolidated subsidiaries | (6,563) | (6,250) |
TOTAL ASSETS | (6,565) | (6,250) |
Total current liabilities | (2) | |
Total equity | (6,563) | (6,250) |
TOTAL LIABILITIES AND EQUITY | (6,565) | (6,250) |
Parent | Reportable Legal Entity | ||
Assets | ||
Total current assets | 9 | 7 |
Total property, plant and equipment, net | 24 | 25 |
Investments in consolidated subsidiaries | 5,981 | 5,713 |
TOTAL ASSETS | 6,014 | 5,745 |
Total current liabilities | 234 | 221 |
Long-Term Debt - Principal Amount | 5,039 | 5,168 |
Deferred gain and issuance costs, net | 356 | 397 |
Other long-term liabilities | 138 | 132 |
Amounts due to (from) affiliates | 914 | 384 |
Total equity | (667) | (557) |
TOTAL LIABILITIES AND EQUITY | 6,014 | 5,745 |
Combined Guarantor Subsidiaries | Reportable Legal Entity | ||
Assets | ||
Total current assets | 425 | 418 |
Total property, plant and equipment, net | 5,589 | 5,856 |
Investments in consolidated subsidiaries | 582 | 537 |
Other assets | 37 | 44 |
TOTAL ASSETS | 6,633 | 6,855 |
Total current liabilities | 513 | 505 |
Other long-term liabilities | 475 | 487 |
Amounts due to (from) affiliates | (914) | (384) |
Total equity | 6,559 | 6,247 |
TOTAL LIABILITIES AND EQUITY | 6,633 | 6,855 |
Combined Non-Guarantor Subsidiaries | Reportable Legal Entity | ||
Assets | ||
Total current assets | 20 | |
Total property, plant and equipment, net | 79 | 4 |
Other assets | 2 | |
TOTAL ASSETS | 101 | 4 |
Total current liabilities | 1 | |
Other long-term liabilities | 3 | 1 |
Total equity | 97 | 3 |
TOTAL LIABILITIES AND EQUITY | $ 101 | $ 4 |
CONDENSED CONSOLIDATING FINAN44
CONDENSED CONSOLIDATING FINANCIAL INFORMATION - Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCK | ||||
Total revenues and other | $ 445 | $ 456 | $ 1,551 | $ 1,095 |
Total costs and other | 492 | 475 | 1,448 | 1,398 |
Non-operating (loss) income | (230) | 581 | ||
Income tax benefit | 78 | |||
NET (LOSS) INCOME | (132) | 546 | (127) | 356 |
Net income attributable to noncontrolling interest | (1) | (1) | ||
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCK | $ (133) | $ 546 | (128) | 356 |
Reportable Legal Entity | Parent | ||||
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCK | ||||
Total revenues and other | 22 | |||
Total costs and other | 168 | 153 | ||
Non-operating (loss) income | (253) | 547 | ||
Income tax benefit | 78 | |||
NET (LOSS) INCOME | (399) | 472 | ||
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCK | (399) | |||
Reportable Legal Entity | Combined Guarantor Subsidiaries | ||||
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCK | ||||
Total revenues and other | 1,551 | 1,093 | ||
Total costs and other | 1,303 | 1,243 | ||
Non-operating (loss) income | 23 | 34 | ||
NET (LOSS) INCOME | 271 | (116) | ||
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCK | 271 | |||
Reportable Legal Entity | Combined Non-Guarantor Subsidiaries | ||||
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCK | ||||
Total revenues and other | 10 | 2 | ||
Total costs and other | 9 | $ 2 | ||
NET (LOSS) INCOME | 1 | |||
Net income attributable to noncontrolling interest | (1) | |||
Eliminations | ||||
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCK | ||||
Total revenues and other | (32) | |||
Total costs and other | $ (32) |
CONDENSED CONSOLIDATING FINAN45
CONDENSED CONSOLIDATING FINANCIAL INFORMATION - Statement of Cash Flows (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Net cash (used) provided by operating activities | $ 225 | $ 145 |
Net cash used by investing activities | (174) | (31) |
Net cash provided (used) by financing activities | (35) | (116) |
Increase (decrease) in cash and cash equivalents | 16 | (2) |
Cash and cash equivalents-beginning of period | 12 | 12 |
Cash and cash equivalents-end of period | 28 | 10 |
Parent | Reportable Legal Entity | ||
Net cash (used) provided by operating activities | (403) | (419) |
Net cash used by investing activities | (2) | (1) |
Net cash provided (used) by financing activities | 409 | 420 |
Increase (decrease) in cash and cash equivalents | 4 | |
Cash and cash equivalents-end of period | 4 | |
Combined Guarantor Subsidiaries | Reportable Legal Entity | ||
Net cash (used) provided by operating activities | 621 | 563 |
Net cash used by investing activities | (90) | (30) |
Net cash provided (used) by financing activities | (536) | (535) |
Increase (decrease) in cash and cash equivalents | (5) | (2) |
Cash and cash equivalents-beginning of period | 12 | 12 |
Cash and cash equivalents-end of period | 7 | 10 |
Combined Non-Guarantor Subsidiaries | Reportable Legal Entity | ||
Net cash (used) provided by operating activities | 7 | 1 |
Net cash used by investing activities | (82) | |
Net cash provided (used) by financing activities | 92 | $ (1) |
Increase (decrease) in cash and cash equivalents | 17 | |
Cash and cash equivalents-end of period | $ 17 |