Document_And_Entity_Informatio
Document And Entity Information (USD $) | 3 Months Ended | |
In Billions, except Share data, unless otherwise specified | Mar. 31, 2015 | Jun. 30, 2014 |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | NOBLE ENERGY INC | |
Entity Central Index Key | 72207 | |
Current Fiscal Year End Date | -19 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Public Float | $28 | |
Entity Common Stock, Shares Outstanding | 387,004,520 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (unaudited) (USD $) | 3 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Revenues | ||||
Oil, Gas and NGL Sales | $740 | $1,327 | ||
Income from Equity Method Investees | 18 | 52 | ||
Other | 1 | 0 | ||
Total | 759 | 1,379 | ||
Costs and Expenses | ||||
Production Expense | 245 | 229 | ||
Exploration Expense | 65 | 74 | ||
Depreciation, Depletion and Amortization | 454 | 425 | ||
General and Administrative | 94 | 140 | ||
Asset Impairments | 27 | 97 | ||
Other Operating Expense, Net | 8 | 10 | ||
Total | 893 | 975 | ||
Operating Income (Loss) | -134 | 404 | ||
Other (Income) Expense | ||||
(Gain) Loss on Commodity Derivative Instruments | -150 | 75 | ||
Interest, Net of Amount Capitalized | 57 | 47 | ||
Other Non-Operating (Income) Expense, Net | 1 | 5 | ||
Total | -92 | 127 | ||
Income (Loss) Before Income Taxes | -42 | 277 | ||
Income Tax (Benefit) Provision | -20 | 77 | ||
Net Income (Loss) | ($22) | $200 | ||
Earnings Per Share, Basic [Abstract] | ||||
Net Income (in dollars per share) | ($0.06) | $0.56 | ||
Earnings Per Share, Diluted [Abstract] | ||||
Net Income (in dollars per share) | ($0.06) | $0.55 | ||
Weighted Average Number of Shares Outstanding [Abstract] | ||||
Weighted Average Number of Shares Outstanding, Basic (in shares) | 370 | [1] | 360 | [1] |
Weighted Average Number of Shares Outstanding, Diluted (in shares) | 370 | 365 | ||
[1] | The weighted average number of shares outstanding includes the weighted average shares of common stock issued in connection with the underwritten public offering of 24,150,000 shares of common stock of the Company in first quarter 2015. |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (unaudited) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net Income (Loss) | ($22) | $200 |
Net Change in Mutual Fund Investment | -11 | 1 |
Less Tax Benefit | 3 | 0 |
Net Change in Pension and Other | 1 | 4 |
Less Tax Benefit | 0 | -2 |
Other Comprehensive Income (Loss) | -7 | 3 |
Comprehensive Income (Loss) | ($29) | $203 |
Consolidated_Balance_Sheets_un
Consolidated Balance Sheets (unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Current Assets | ||
Cash and Cash Equivalents | $1,709 | $1,183 |
Accounts Receivable, Net | 769 | 857 |
Commodity Derivative Assets, Current | 661 | 710 |
Other Current Assets | 259 | 325 |
Total Current Assets | 3,398 | 3,075 |
Property, Plant and Equipment | ||
Oil and Gas Properties (Successful Efforts Method of Accounting) | 26,337 | 25,599 |
Property, Plant and Equipment, Other | 684 | 630 |
Total Property, Plant and Equipment, Gross | 27,021 | 26,229 |
Accumulated Depreciation, Depletion and Amortization | -8,559 | -8,086 |
Total Property, Plant and Equipment, Net | 18,462 | 18,143 |
Goodwill | 617 | 620 |
Other Noncurrent Assets | 784 | 715 |
Total Assets | 23,261 | 22,553 |
Current Liabilities | ||
Accounts Payable - Trade | 1,269 | 1,578 |
Other Current Liabilities | 874 | 944 |
Total Current Liabilities | 2,143 | 2,522 |
Long-Term Debt | 6,113 | 6,103 |
Deferred Income Taxes, Noncurrent | 2,491 | 2,516 |
Other Noncurrent Liabilities | 1,157 | 1,087 |
Total Liabilities | 11,904 | 12,228 |
Commitments and Contingencies | ||
Shareholders’ Equity | ||
Preferred Stock - Par Value $1.00 per share; 4 Million Shares Authorized, None Issued | 0 | 0 |
Common Stock - Par Value $0.01 per share; 500 Million Shares Authorized; 428 Million and 402 Million Shares Issued, respectively | 4 | 4 |
Additional Paid in Capital | 4,761 | 3,624 |
Accumulated Other Comprehensive Loss | -97 | -90 |
Treasury Stock, at Cost; 38 Million Shares | -683 | -671 |
Retained Earnings | 7,372 | 7,458 |
Total Shareholders’ Equity | 11,357 | 10,325 |
Total Liabilities and Shareholders’ Equity | $23,261 | $22,553 |
Consolidated_Balance_Sheets_un1
Consolidated Balance Sheets (unaudited) (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value per share (in dollars per share) | $1 | $1 |
Preferred stock, shares authorized (in shares) | 4,000,000 | 4,000,000 |
Common stock, par value per share (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 428,000,000 | 402,000,000 |
Treasury stock, shares (in shares) | 38,000,000 | 38,000,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (unaudited) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash Flows From Operating Activities | ||
Net Income (Loss) | ($22) | $200 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities | ||
Depreciation, Depletion and Amortization | 454 | 425 |
Asset Impairments | 27 | 97 |
Dry Hole Cost | 20 | 2 |
Deferred Income Taxes | -30 | 17 |
Income from Equity Method Investees, Net of Dividends | -18 | -13 |
(Gain) Loss on Commodity Derivative Instruments | -150 | 75 |
Net Cash Received (Paid) in Settlement of Commodity Derivative Instruments | 210 | -33 |
Stock Based Compensation | 21 | 23 |
Other Adjustments for Noncash Items Included in Income | 11 | 18 |
Changes in Operating Assets and Liabilities | ||
Decrease in Accounts Receivable | 107 | 28 |
Increase (Decrease) in Accounts Payable | -71 | 57 |
Increase in Current Income Taxes Payable | 3 | 47 |
Decrease in Other Current Assets and Liabilities, Net | -51 | -24 |
Other Operating Assets and Liabilities, Net | 30 | 10 |
Net Cash Provided by Operating Activities | 541 | 929 |
Cash Flows From Investing Activities | ||
Additions to Property, Plant and Equipment | -1,111 | -1,158 |
Additions to Equity Method Investments | -44 | -12 |
Proceeds from Divestitures | 119 | 92 |
Net Cash Used in Investing Activities | -1,036 | -1,078 |
Cash Flows From Financing Activities | ||
Exercise of Stock Options | 4 | 10 |
Excess Tax Benefits from Stock-Based Awards | 0 | 6 |
Dividends Paid, Common Stock | -64 | -50 |
Purchase of Treasury Stock | -12 | -15 |
Proceeds from Issuance of Shares of Common Stock to Public, Net of Offering Costs | 1,112 | 0 |
Proceeds from Credit Facility, Net | 0 | 450 |
Repayment of Capital Lease Obligation | -19 | -15 |
Net Cash Provided by Financing Activities | 1,021 | 386 |
Increase in Cash and Cash Equivalents | 526 | 237 |
Cash and Cash Equivalents at Beginning of Period | 1,183 | 1,117 |
Cash and Cash Equivalents at End of Period | $1,709 | $1,354 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (unaudited) (USD $) | Total | Common Stock | Additional Paid in Capital | Accumulated Other Comprehensive Loss | Treasury Stock at Cost | Retained Earnings |
In Millions, unless otherwise specified | ||||||
Balance at Beginning of Period at Dec. 31, 2013 | $9,184 | $4 | $3,463 | ($117) | ($659) | $6,493 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income (Loss) | 200 | 0 | 0 | 0 | 0 | 200 |
Stock-based Compensation | 23 | 0 | 23 | 0 | 0 | 0 |
Exercise of Stock Options | 10 | 0 | 10 | 0 | 0 | 0 |
Dividends | -50 | 0 | 0 | 0 | 0 | -50 |
Changes in Treasury Stock, Net | -15 | 0 | 0 | 0 | -15 | 0 |
Tax Benefits Related to Exercise of Stock Options | 6 | 0 | 6 | 0 | 0 | 0 |
Net Change in Pension and Other | 3 | 0 | 0 | 3 | 0 | 0 |
Balance at End of Period at Mar. 31, 2014 | 9,361 | 4 | 3,502 | -114 | -674 | 6,643 |
Balance at Beginning of Period at Dec. 31, 2014 | 10,325 | 4 | 3,624 | -90 | -671 | 7,458 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income (Loss) | -22 | 0 | 0 | 0 | 0 | -22 |
Stock-based Compensation | 21 | 0 | 21 | 0 | 0 | 0 |
Exercise of Stock Options | 4 | 0 | 4 | 0 | 0 | 0 |
Dividends | -64 | 0 | 0 | 0 | 0 | -64 |
Changes in Treasury Stock, Net | -12 | 0 | 0 | 0 | -12 | 0 |
Issuance of Shares of Common Stock to Public, Net of Offering Costs | 1,112 | 0 | 1,112 | 0 | 0 | 0 |
Net Change in Pension and Other | -7 | 0 | 0 | -7 | 0 | 0 |
Balance at End of Period at Mar. 31, 2015 | $11,357 | $4 | $4,761 | ($97) | ($683) | $7,372 |
Consolidated_Statements_of_Sha1
Consolidated Statements of Shareholders' Equity (unaudited) (Parenthetical) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash Dividends per share (in dollars per share) | $0.18 | $0.14 |
Organization_and_Nature_of_Ope
Organization and Nature of Operations | 3 Months Ended |
Mar. 31, 2015 | |
Organization and Nature of Operations [Abstract] | |
Organization and Nature of Operations | Organization and Nature of Operations |
Noble Energy, Inc. (Noble Energy, we or us) is a leading independent energy company engaged in worldwide crude oil and natural gas exploration and production. Our core operating areas are onshore US, primarily in the DJ Basin and Marcellus Shale, in the deepwater Gulf of Mexico, offshore Eastern Mediterranean, and offshore West Africa. |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Basis of Presentation [Abstract] | ||||||||
Basis of Presentation | Basis of Presentation | |||||||
Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the US (US GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by US GAAP for complete financial statements. The accompanying consolidated financial statements at March 31, 2015 and December 31, 2014 and for the three months ended March 31, 2015 and 2014 contain all normally recurring adjustments considered necessary for a fair presentation of our financial position, results of operations, cash flows and shareholders’ equity for such periods. Certain prior-period amounts have been reclassified to conform to the current-period presentation. Operating results for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. | ||||||||
These consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2014. | ||||||||
Consolidation Our consolidated accounts include our accounts and the accounts of our wholly-owned subsidiaries. In addition, we use the equity method of accounting for investments in entities that we do not control but over which we exert significant influence. All significant intercompany balances and transactions have been eliminated upon consolidation. | ||||||||
Equity Offering On March 3, 2015, we closed an underwritten public offering of 21,000,000 shares of common stock, par value $0.01 per share, at a price to the public of $47.50 per share. In addition, on March 25, 2015, we completed the issuance of an additional 3,150,000 shares of common stock, par value $0.01 per share, in connection with the exercise of the option of the underwriters to purchase additional shares of common stock. The aggregate net proceeds of the offerings were approximately $1.1 billion (after deducting underwriting discounts and commissions and estimated offering expenses). We used approximately $150 million of the net proceeds to repay outstanding indebtedness under our revolving credit facility and the remainder will be used for general corporate purposes, including the funding of our capital investment program. | ||||||||
Increase in Authorized Shares On April 28, 2015, our stockholders approved an amendment to our Certificate of Incorporation to increase the number of authorized shares of our common stock from 500 million to 1 billion. | ||||||||
Update on Core Area – Israel In March 2014, we and our partners reached an agreement with the Israel Antitrust Authority on various matters (Consent Decree). The Consent Decree, which was subject to final approval by the Antitrust Tribunal, granted the rights, to us and our partners, to jointly market natural gas from the Leviathan field. Also, as a result of the Consent Decree, we agreed to divest our Tanin and Karish natural gas discoveries. | ||||||||
However, on December 23, 2014, we and our partners in the Leviathan field were advised by the Israel Antitrust Authority of its decision to not submit the Consent Decree to the Antitrust Tribunal for final approval. This is a matter that we believed was resolved some time ago and we had received assurances from the Antitrust Authority that approval was forthcoming. We requested an oral hearing with the Antitrust Authority, which took place on January 27, 2015, and await final disposition. | ||||||||
In the meantime, negotiations are ongoing with the Antitrust Authority and with an inter-ministerial working group, established by the Prime Minister's office for the purpose of agreeing to a comprehensive regulatory framework for investment. We remain prepared to implement the Consent Decree if agreed with the Antitrust Authority but in any case, expect that divestiture of Tanin and Karish will be part of a final regulatory settlement. We therefore continue to hold these assets for sale. | ||||||||
Recently Issued Accounting Standards In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2015-03 (ASU 2015-03): Simplifying the Presentation of Debt Issuance Costs, effective for annual and interim periods beginning after December 15, 2015. ASU 2015-03 requires that all costs incurred to issue debt be presented in the balance sheet as a direct deduction from the carrying value of the debt. It is effective retrospectively for first quarter 2016 and is only expected to impact the presentation of our consolidated balance sheet. As of March 31, 2015 and December 31, 2014, we had $48 million and $50 million of capitalized, unamortized debt issuance costs, respectively. | ||||||||
In February 2015, the FASB issued Accounting Standards Update No. 2015-02 (ASU 2015-02): Consolidation - Amendments to the Consolidation Analysis, effective for annual and interim periods beginning after December 15, 2015. ASU 2015-02 changes the guidance as to whether an entity is a variable interest entity (VIE) or a voting interest entity and how related parties are considered in the VIE model. We are currently evaluating the provisions of ASU 2015-02 and assessing the impact, if any, it may have on our financial position and results of operations. | ||||||||
In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (ASU 2014-09), which creates Topic 606, Revenue from Contracts with Customers, and supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. In addition, ASU 2014-09 supersedes the cost guidance in Subtopic 605-35, Revenue Recognition - Construction-Type and Production-Type Contracts, and creates new Subtopic 340-40, Other Assets and Deferred Costs - Contracts with Customers. In summary, the core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of 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 or services. Additionally, ASU 2014-09 requires enhanced financial statement disclosures over revenue recognition as part of the new accounting guidance. The amendments in ASU 2014-09 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, and early application is not permitted. In April 2015, the FASB proposed to delay the effective date for one year, for annual reporting periods beginning after December 15, 2017. The proposal will be subject to the FASB's due process requirement. We are currently evaluating the provisions of ASU 2014-09 and awaiting implementation guidance to determine the impact, if any, it may have on our financial position and results of operations. | ||||||||
Estimates The preparation of consolidated financial statements in conformity with US GAAP requires us to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. Management evaluates estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic and commodity price environment. | ||||||||
Statements of Operations Information Other statements of operations information is as follows: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
(millions) | 2015 | 2014 | ||||||
Production Expense | ||||||||
Lease Operating Expense | $ | 157 | $ | 142 | ||||
Production and Ad Valorem Taxes | 32 | 49 | ||||||
Transportation and Gathering Expense | 56 | 38 | ||||||
Total | $ | 245 | $ | 229 | ||||
Other Operating (Income) Expense, Net | ||||||||
Midstream Gathering and Processing Expense | $ | 4 | $ | 3 | ||||
Other, Net | 4 | 7 | ||||||
Total | $ | 8 | $ | 10 | ||||
Other Non-Operating (Income) Expense, Net | ||||||||
Deferred Compensation Expense (1) | $ | 2 | $ | 4 | ||||
Other (Income) Expense, Net | (1 | ) | 1 | |||||
Total | $ | 1 | $ | 5 | ||||
(1) | Amounts represent increases in the fair value of shares of our common stock held in a rabbi trust. | |||||||
Balance Sheet Information Other balance sheet information is as follows: | ||||||||
(millions) | March 31, | December 31, | ||||||
2015 | 2014 | |||||||
Accounts Receivable, Net | ||||||||
Commodity Sales | $ | 303 | $ | 405 | ||||
Joint Interest Billings | 343 | 297 | ||||||
Other | 140 | 171 | ||||||
Allowance for Doubtful Accounts | (17 | ) | (16 | ) | ||||
Total | $ | 769 | $ | 857 | ||||
Other Current Assets | ||||||||
Inventories, Materials and Supplies | $ | 89 | $ | 81 | ||||
Inventories, Crude Oil | 28 | 24 | ||||||
Assets Held for Sale (1) | 106 | 180 | ||||||
Prepaid Expenses and Other Current Assets | 36 | 40 | ||||||
Total | $ | 259 | $ | 325 | ||||
Other Noncurrent Assets | ||||||||
Equity Method Investments | $ | 384 | $ | 325 | ||||
Mutual Fund Investments | 112 | 111 | ||||||
Commodity Derivative Assets | 169 | 180 | ||||||
Other Assets | 119 | 99 | ||||||
Total | $ | 784 | $ | 715 | ||||
Other Current Liabilities | ||||||||
Production and Ad Valorem Taxes | $ | 119 | $ | 110 | ||||
Income Taxes Payable | 182 | 180 | ||||||
Deferred Income Taxes, Current | 151 | 158 | ||||||
Accrued Benefit Costs, Current | 109 | 125 | ||||||
Asset Retirement Obligations | 81 | 81 | ||||||
Interest Payable | 83 | 70 | ||||||
Current Portion of Capital Lease Obligations | 65 | 68 | ||||||
Other | 84 | 152 | ||||||
Total | $ | 874 | $ | 944 | ||||
Other Noncurrent Liabilities | ||||||||
Deferred Compensation Liabilities | $ | 224 | $ | 218 | ||||
Asset Retirement Obligations | 706 | 670 | ||||||
Accrued Benefit Costs | 23 | 24 | ||||||
Other | 204 | 175 | ||||||
Total | $ | 1,157 | $ | 1,087 | ||||
(1) Assets held for sale includes $76 million related to our Tanin and Karish natural gas discoveries, offshore Israel. See Update on Core Area – Israel, above. |
Divestitures
Divestitures | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Divestitures [Abstract] | ||||
Divestitures | Divestitures | |||
Onshore US Properties During the first three months of 2015, we sold certain onshore US crude oil and natural gas leases. Properties sold generated net proceeds of $119 million, which were applied to the DJ Basin depletable field, with no recognition of gain or loss. | ||||
Information regarding assets sold during the first three months of 2014 is as follows: | ||||
Three Months Ended | ||||
March 31, | ||||
(millions) | 2014 | |||
Sales Proceeds | $ | 92 | ||
Less | ||||
Net Book Value of Assets Sold | (106 | ) | ||
Goodwill Allocated to Assets Sold | (6 | ) | ||
Asset Retirement Obligations Associated with Assets Sold | 20 | |||
Other Closing Adjustments | (1 | ) | ||
Gain on Divestitures | $ | (1 | ) |
Asset_Impairments_Notes
Asset Impairments (Notes) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Asset Impairments [Abstract] | ||||||||
Asset Impairments | Asset Impairments | |||||||
Pre-tax (non-cash) asset impairment charges were as follows: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
(millions) | 2015 | 2014 | ||||||
Deepwater Gulf of Mexico | 3 | — | ||||||
Eastern Mediterranean | 24 | — | ||||||
North Sea | — | 92 | ||||||
Non-Core US Property | — | 5 | ||||||
Total | $ | 27 | $ | 97 | ||||
Impairments for 2015 were related to facility costs at South Raton (Deepwater Gulf of Mexico) and increases in expected field abandonment costs for the Noa and Pinnacles fields (Eastern Mediterranean). | ||||||||
Impairments for 2014 were primarily related to an increase in expected field abandonment costs and a change in the timing of abandonment activities at the MacCulloch North Sea field. | ||||||||
See Note 2. Basis of Presentation, Note 7. Fair Value Measurements and Disclosures and Note 9. Asset Retirement Obligations. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities | |||||||||||||||||||||||
Objective and Strategies for Using Derivative Instruments We are exposed to fluctuations in crude oil and natural gas prices on the majority of our production. In order to mitigate the effect of commodity price volatility and enhance the predictability of cash flows relating to the marketing of our global crude oil and domestic natural gas, we enter into crude oil and natural gas price hedging arrangements with respect to a portion of our expected production. | ||||||||||||||||||||||||
While these instruments mitigate the cash flow risk of future decreases in commodity prices, they may also curtail benefits from future increases in commodity prices. See Note 7. Fair Value Measurements and Disclosures for a discussion of methods and assumptions used to estimate the fair values of our derivative instruments. | ||||||||||||||||||||||||
Unsettled Commodity Derivative Instruments As of March 31, 2015, we had entered into the following crude oil derivative instruments: | ||||||||||||||||||||||||
Swaps | Collars | |||||||||||||||||||||||
Settlement | Type of Contract | Index | Bbls Per | Weighted | Weighted | Weighted | Weighted | |||||||||||||||||
Period | Day | Average | Average | Average | Average | |||||||||||||||||||
Fixed | Short Put | Floor | Ceiling | |||||||||||||||||||||
Price | Price | Price | Price | |||||||||||||||||||||
Instruments Entered Into as of March 31, 2015 | ||||||||||||||||||||||||
2015 | Swaps | NYMEX WTI | 27,000 | $ | 88.8 | $ | — | $ | — | $ | — | |||||||||||||
2015 | Swaps | Dated Brent | 8,000 | 100.31 | — | — | — | |||||||||||||||||
2015 | Two-Way Collars | NYMEX WTI | 5,000 | — | — | 50 | 64.94 | |||||||||||||||||
2015 | Three-Way Collars | NYMEX WTI | 20,000 | — | 70.5 | 87.55 | 94.41 | |||||||||||||||||
2015 | Three-Way Collars | Dated Brent | 13,000 | — | 76.92 | 96 | 108.49 | |||||||||||||||||
2016 | Swaps | NYMEX WTI | 6,000 | 87.95 | — | — | — | |||||||||||||||||
2016 | Swaps | Dated Brent | 9,000 | 97.96 | — | — | — | |||||||||||||||||
2016 | Three-Way Collars | NYMEX WTI | 6,000 | — | 61 | 72.5 | 86.37 | |||||||||||||||||
2016 | Three-Way Collars | Dated Brent | 8,000 | — | 72.5 | 86.25 | 101.79 | |||||||||||||||||
As of March 31, 2015, we had entered into the following natural gas derivative instruments: | ||||||||||||||||||||||||
Swaps | Collars | |||||||||||||||||||||||
Settlement | Type of Contract | Index | MMBtu | Weighted | Weighted | Weighted | Weighted | |||||||||||||||||
Period | Per Day | Average | Average | Average | Average | |||||||||||||||||||
Fixed | Short Put | Floor | Ceiling | |||||||||||||||||||||
Price | Price | Price | Price | |||||||||||||||||||||
Instruments Entered Into as of March 31, 2015 | ||||||||||||||||||||||||
2015 | Swaps | NYMEX HH | 140,000 | $ | 4.3 | $ | — | $ | — | $ | — | |||||||||||||
2015 | Three-Way Collars | NYMEX HH | 150,000 | — | 3.58 | 4.25 | 5.04 | |||||||||||||||||
2016 | Swaps (1) | NYMEX HH | 40,000 | 3.6 | — | — | — | |||||||||||||||||
2016 | Two-Way Collars | NYMEX HH | 30,000 | — | — | 3 | 3.5 | |||||||||||||||||
2016 | Three-Way Collars | NYMEX HH | 60,000 | — | 2.88 | 3.5 | 4.03 | |||||||||||||||||
(1) | We have entered into natural gas derivative contracts which give counterparties the option to extend for an additional 12-month period. Options covering a notional volume of 30,000 MMBtu/d are exercisable on December 22 and 23, 2016. If the counterparties exercise all such options, the notional volume of our existing natural gas derivative contracts will increase by 30,000 MMBtu/d at an average price of $3.50 per MMBtu for each month during the period January 1, 2017 through December 31, 2017. | |||||||||||||||||||||||
Fair Value Amounts and (Gain) Loss on Commodity Derivative Instruments The fair values of commodity derivative instruments in our consolidated balance sheets were as follows: | ||||||||||||||||||||||||
Fair Value of Derivative Instruments | ||||||||||||||||||||||||
Asset Derivative Instruments | Liability Derivative Instruments | |||||||||||||||||||||||
March 31, | December 31, | March 31, | December 31, | |||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||
(millions) | Balance Sheet Location | Fair | Balance Sheet Location | Fair | Balance Sheet Location | Fair | Balance Sheet Location | Fair | ||||||||||||||||
Value | Value | Value | Value | |||||||||||||||||||||
Commodity Derivative Instruments | Current Assets | $ | 661 | Current Assets | $ | 710 | Current Liabilities | $ | — | Current Liabilities | $ | — | ||||||||||||
Noncurrent Assets | 169 | Noncurrent Assets | 180 | Noncurrent Liabilities | — | Noncurrent Liabilities | — | |||||||||||||||||
Total | $ | 830 | $ | 890 | $ | — | $ | — | ||||||||||||||||
The effect of commodity derivative instruments on our consolidated statements of operations was as follows: | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
(millions) | 2015 | 2014 | ||||||||||||||||||||||
Cash (Received) Paid in Settlement of Commodity Derivative Instruments | ||||||||||||||||||||||||
Crude Oil | $ | (185 | ) | $ | 27 | |||||||||||||||||||
Natural Gas | (25 | ) | 6 | |||||||||||||||||||||
Total Cash (Received) Paid in Settlement of Commodity Derivative Instruments | (210 | ) | 33 | |||||||||||||||||||||
Non-cash Portion of (Gain) Loss on Commodity Derivative Instruments | ||||||||||||||||||||||||
Crude Oil | 55 | 28 | ||||||||||||||||||||||
Natural Gas | 5 | 14 | ||||||||||||||||||||||
Total Non-cash Portion of (Gain) Loss on Commodity Derivative Instruments | 60 | 42 | ||||||||||||||||||||||
(Gain) Loss on Commodity Derivative Instruments | ||||||||||||||||||||||||
Crude Oil | (130 | ) | 55 | |||||||||||||||||||||
Natural Gas | (20 | ) | 20 | |||||||||||||||||||||
Total (Gain) Loss on Commodity Derivative Instruments | $ | (150 | ) | $ | 75 | |||||||||||||||||||
Debt
Debt | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Debt [Abstract] | ||||||||||||||||
Debt | Debt | |||||||||||||||
Debt consists of the following: | ||||||||||||||||
March 31, | December 31, | |||||||||||||||
2015 | 2014 | |||||||||||||||
(millions, except percentages) | Debt | Interest Rate | Debt | Interest Rate | ||||||||||||
Credit Facility, due October 3, 2018 | $ | — | — | % | $ | — | — | % | ||||||||
Capital Lease and Other Obligations | 419 | — | % | 413 | — | % | ||||||||||
8.25% Senior Notes, due March 1, 2019 | 1,000 | 8.25 | % | 1,000 | 8.25 | % | ||||||||||
4.15% Senior Notes, due December 15, 2021 | 1,000 | 4.15 | % | 1,000 | 4.15 | % | ||||||||||
7.25% Senior Notes, due October 15, 2023 | 100 | 7.25 | % | 100 | 7.25 | % | ||||||||||
3.90% Senior Notes, due November 15, 2024 | 650 | 3.9 | % | 650 | 3.9 | % | ||||||||||
8.00% Senior Notes, due April 1, 2027 | 250 | 8 | % | 250 | 8 | % | ||||||||||
6.00% Senior Notes, due March 1, 2041 | 850 | 6 | % | 850 | 6 | % | ||||||||||
5.25% Senior Notes, due November 15, 2043 | 1,000 | 5.25 | % | 1,000 | 5.25 | % | ||||||||||
5.05% Senior Notes, due November 15, 2044 | 850 | 5.05 | % | 850 | 5.05 | % | ||||||||||
7.25% Senior Debentures, due August 1, 2097 | 84 | 7.25 | % | 84 | 7.25 | % | ||||||||||
Total | 6,203 | 6,197 | ||||||||||||||
Unamortized Discount | (25 | ) | (26 | ) | ||||||||||||
Total Debt, Net of Discount | 6,178 | 6,171 | ||||||||||||||
Less Amounts Due Within One Year | ||||||||||||||||
Capital Lease Obligations | (65 | ) | (68 | ) | ||||||||||||
Long-Term Debt Due After One Year | $ | 6,113 | $ | 6,103 | ||||||||||||
Credit Facility Our Credit Agreement provides for a $4.0 billion unsecured revolving credit facility (Credit Facility), which is available for general corporate purposes. The Credit Facility (i) provides for facility fee rates that range from 12.5 basis points to 30 basis points per year depending upon our credit rating, (ii) includes sub-facilities for short-term loans and letters of credit up to an aggregate amount of $500 million under each sub-facility and (iii) provides for interest rates that are based upon the Eurodollar rate plus a margin that ranges from 100 basis points to 145 basis points depending upon our credit rating. | ||||||||||||||||
See Note 7. Fair Value Measurements and Disclosures for a discussion of methods and assumptions used to estimate the fair values of debt. |
Fair_Value_Measurements_and_Di
Fair Value Measurements and Disclosures | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||
Fair Value Measurements and Disclosures | Fair Value Measurements and Disclosures | |||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||||||||||||||||||||
Certain assets and liabilities are measured at fair value on a recurring basis in our consolidated balance sheets. The following methods and assumptions were used to estimate the fair values: | ||||||||||||||||||||
Cash, Cash Equivalents, Accounts Receivable and Accounts Payable The carrying amounts approximate fair value due to the short-term nature or maturity of the instruments. | ||||||||||||||||||||
Mutual Fund Investments Our mutual fund investments, which primarily include assets held in a rabbi trust, consist of various publicly-traded mutual funds that include investments ranging from equities to money market instruments. The fair values are based on quoted market prices for identical assets. | ||||||||||||||||||||
Commodity Derivative Instruments Our commodity derivative instruments may include: variable to fixed price commodity swaps, two-way collars, and/or three-way collars. We estimate the fair values of these instruments based on published forward commodity price curves as of the date of the estimate. The discount rate used in the discounted cash flow projections is based on published LIBOR rates, Eurodollar futures rates and interest swap rates. The fair values of commodity derivative instruments in an asset position include a measure of counterparty nonperformance risk, and the fair values of commodity derivative instruments in a liability position include a measure of our own nonperformance risk, each based on the current published credit default swap rates. In addition, for collars, we estimate the option values of the put options sold and the contract floors and ceilings using an option pricing model which takes into account market volatility, market prices and contract terms. See Note 5. Derivative Instruments and Hedging Activities. | ||||||||||||||||||||
Deferred Compensation Liability The value is dependent upon the fair values of mutual fund investments and shares of our common stock held in a rabbi trust. See Mutual Fund Investments above. | ||||||||||||||||||||
Measurement information for assets and liabilities that are measured at fair value on a recurring basis was as follows: | ||||||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||||||
Quoted Prices in | Significant Other | Significant | Adjustment (4) | Fair Value Measurement | ||||||||||||||||
Active Markets | Observable Inputs | Unobservable | ||||||||||||||||||
(Level 1) (1) | (Level 2) (2) | Inputs (Level 3) (3) | ||||||||||||||||||
(millions) | ||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||
Financial Assets | ||||||||||||||||||||
Mutual Fund Investments | $ | 112 | $ | — | $ | — | $ | — | $ | 112 | ||||||||||
Commodity Derivative Instruments | — | 832 | — | (2 | ) | 830 | ||||||||||||||
Financial Liabilities | ||||||||||||||||||||
Commodity Derivative Instruments | — | (2 | ) | — | 2 | — | ||||||||||||||
Portion of Deferred Compensation Liability Measured at Fair Value | (137 | ) | — | — | — | (137 | ) | |||||||||||||
December 31, 2014 | ||||||||||||||||||||
Financial Assets | ||||||||||||||||||||
Mutual Fund Investments | $ | 111 | $ | — | $ | — | $ | — | $ | 111 | ||||||||||
Commodity Derivative Instruments | — | 890 | — | — | 890 | |||||||||||||||
Financial Liabilities | ||||||||||||||||||||
Commodity Derivative Instruments | — | — | — | — | — | |||||||||||||||
Portion of Deferred Compensation Liability Measured at Fair Value | (134 | ) | — | — | — | (134 | ) | |||||||||||||
(1) | Level 1 measurements are fair value measurements which use quoted market prices (unadjusted) in active markets for identical assets or liabilities. We use Level 1 inputs when available as Level 1 inputs generally provide the most reliable evidence of fair value. | |||||||||||||||||||
(2) | Level 2 measurements are fair value measurements which use inputs, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly. | |||||||||||||||||||
(3) | Level 3 measurements are fair value measurements which use unobservable inputs. | |||||||||||||||||||
(4) | Amount represents the impact of netting provisions within our master agreements that allow us to net cash settle asset and liability positions with the same counterparty. | |||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | ||||||||||||||||||||
Certain assets and liabilities are measured at fair value on a nonrecurring basis in our consolidated balance sheets. The following methods and assumptions were used to estimate the fair values: | ||||||||||||||||||||
Asset Impairments Information about impaired assets is as follows: | ||||||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||||||
Description | Quoted Prices in | Significant Other | Significant | Net Book Value (1) | Total Pre-tax (Non-cash) Impairment Loss | |||||||||||||||
Active Markets | Observable Inputs | Unobservable | ||||||||||||||||||
(Level 1) | (Level 2) | Inputs (Level 3) | ||||||||||||||||||
millions | ||||||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||
Impaired Oil and Gas Properties | $ | — | $ | — | $ | — | $ | 27 | $ | 27 | ||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||
Impaired Oil and Gas Properties | — | — | 6 | 103 | 97 | |||||||||||||||
(1) Amount represents net book value at the date of assessment. | ||||||||||||||||||||
The fair value of impaired oil and gas properties was determined as of the date of the assessment using a discounted cash flow model based on management’s expectations of future crude oil and natural gas production prior to abandonment date, commodity prices based on NYMEX WTI, NYMEX Henry Hub, and Brent future price curves as of the date of the estimate, estimated operating and abandonment costs, and a risk-adjusted discount rate of 10%. First quarter 2015 impairments were due primarily to increases in asset carrying values associated with increases in estimated abandonment costs. See Note 4. Asset Impairments. | ||||||||||||||||||||
Additional Fair Value Disclosures | ||||||||||||||||||||
Debt The fair value of public, fixed-rate debt is estimated based on the published market prices for the same or similar issues. As such, we consider the fair value of our public, fixed-rate debt to be a Level 1 measurement on the fair value hierarchy. | ||||||||||||||||||||
As such, we consider the fair values of our Credit Facility to be a Level 2 measurement on the fair value hierarchy. See Note 6. Debt. | ||||||||||||||||||||
Fair value information regarding our debt is as follows: | ||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
(millions) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||||
Total Debt, Net of Unamortized Discount (1) | $ | 5,759 | $ | 6,385 | $ | 5,758 | $ | 6,179 | ||||||||||||
(1) | Excludes capital lease and other obligations. |
Capitalized_Exploratory_Well_C
Capitalized Exploratory Well Costs | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Capitalized Exploratory Well Costs [Abstract] | ||||||||
Capitalized Exploratory Well Costs | Capitalized Exploratory Well Costs | |||||||
We capitalize exploratory well costs until a determination is made that the well has found proved reserves or is deemed noncommercial. If a well is deemed to be noncommercial, the well costs are charged to exploration expense as dry hole cost. | ||||||||
Changes in capitalized exploratory well costs are as follows and exclude amounts that were capitalized and subsequently expensed in the same period: | ||||||||
(millions) | Three Months Ended March 31, 2015 | |||||||
Capitalized Exploratory Well Costs, Beginning of Period | $ | 1,337 | ||||||
Additions to Capitalized Exploratory Well Costs Pending Determination of Proved Reserves | 59 | |||||||
Reclassified to Proved Oil and Gas Properties Based on Determination of Proved Reserves | (6 | ) | ||||||
Capitalized Exploratory Well Costs Charged to Expense (1) | (17 | ) | ||||||
Capitalized Exploratory Well Costs, End of Period | $ | 1,373 | ||||||
(1) Relates to onshore US exploration activity. | ||||||||
The following table provides an aging of capitalized exploratory well costs based on the date that drilling commenced, and the number of projects that have been capitalized for a period greater than one year: | ||||||||
(millions) | March 31, | December 31, | ||||||
2015 | 2014 | |||||||
Exploratory Well Costs Capitalized for a Period of One Year or Less | $ | 272 | $ | 247 | ||||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 1,101 | 1,090 | ||||||
Balance at End of Period | $ | 1,373 | $ | 1,337 | ||||
Number of Projects with Exploratory Well Costs That Have Been Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 13 | 13 | ||||||
The following table includes exploratory well costs that have been capitalized for a period greater than one year since the commencement of drilling as of March 31, 2015: | ||||||||
(millions) | Total by Project | Progress | ||||||
Country/Project: | ||||||||
Onshore US | ||||||||
Northeast Nevada | $ | 26 | Analyzing results from our first four exploratory vertical wells and evaluating potential for production tests. | |||||
Deepwater Gulf of Mexico | ||||||||
Troubadour | 47 | Evaluating development scenarios for this 2013 natural gas discovery including subsea tieback to existing infrastructure. | ||||||
Offshore Equatorial Guinea (Blocks O and I) | ||||||||
Diega/Carmen | 221 | Evaluating regional development scenarios for this 2008 crude oil discovery. We drilled subsequent appraisal wells. During 2014, we conducted additional seismic activity over Blocks O and I and are engaged in processing the newly-acquired seismic data. | ||||||
Carla | 154 | Evaluating regional development scenarios for this 2011 crude oil discovery. We drilled subsequent appraisal wells. During 2014, we conducted additional seismic activity over Blocks O and I and are engaged in processing the newly-acquired seismic data. | ||||||
Felicita | 39 | Evaluating regional development plans for this 2008 condensate and natural gas discovery. A natural gas development team is working with the governments of Equatorial Guinea and Cameroon to evaluate natural gas monetization options and finalize a data exchange agreement between the two countries. | ||||||
Yolanda | 20 | Evaluating regional development plans for this 2007 condensate and natural gas discovery. A natural gas development team is working with the governments of Equatorial Guinea and Cameroon to evaluate natural gas monetization options and finalize a data exchange agreement between the two countries. | ||||||
Offshore Cameroon | ||||||||
YoYo | 48 | Working with the government to assess commercialization of this 2007 condensate and natural gas discovery. A natural gas development team is working with the governments of Equatorial Guinea and Cameroon to evaluate natural gas monetization options and finalize a data exchange agreement between the two countries. | ||||||
Offshore Israel (1) | ||||||||
Leviathan | 185 | During 2014, we received the Leviathan Development and Production Leases, submitted a development plan to the government, completed substantial engineering and procurement activities and engaged in natural gas marketing activities. | ||||||
Leviathan-1 Deep | 79 | Well did not reach the target interval; developing future drilling plans to test this deep oil concept, which is held by the Leviathan Development and Production Leases. We are working on potential well design and placement. | ||||||
Dalit | 28 | Submitted a development plan to the government to develop this 2009 natural gas discovery as a tie-in to existing infrastructure. | ||||||
Dolphin 1 | 25 | Reviewing regional development scenarios for this 2011 natural gas discovery, including a potential tieback to Leviathan. We have applied to the Israeli government for a commerciality ruling. | ||||||
Offshore Cyprus | ||||||||
Cyprus | 203 | Discussing monetization options with the Cyprus government for this 2011 natural gas discovery. In May 2014, our application for renewal of the PSC for two additional years was approved. We plan to submit a plan of development to the government in 2015. | ||||||
Other | ||||||||
Individual Projects Less than $20 million | 26 | Continuing to drill and evaluate wells. | ||||||
Total | $ | 1,101 | ||||||
(1) We are currently working to resolve antitrust and other regulatory matters with the Israeli government to enable Leviathan and other development to move forward. See Note 2. Basis of Presentation – Update on Core Area – Israel. |
Asset_Retirement_Obligations
Asset Retirement Obligations | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Asset Retirement Obligation Disclosure [Abstract] | ||||||||
Asset Retirement Obligations | Asset Retirement Obligations | |||||||
Asset retirement obligations (ARO) consists primarily of estimated costs of dismantlement, removal, site reclamation and similar activities associated with our oil and gas properties. Changes in ARO are as follows: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
(millions) | 2015 | 2014 | ||||||
Asset Retirement Obligations, Beginning Balance | $ | 751 | $ | 586 | ||||
Liabilities Incurred | 10 | 1 | ||||||
Liabilities Settled | (8 | ) | (14 | ) | ||||
Revision of Estimate | 24 | 72 | ||||||
Accretion Expense (1) | 10 | 10 | ||||||
Asset Retirement Obligations, Ending Balance | $ | 787 | $ | 655 | ||||
(1) Accretion expense is included in DD&A expense in the consolidated statements of operations. | ||||||||
For the three months ended March 31, 2015 | ||||||||
Liabilities incurred were due to new wells and facilities and included $4 million for onshore US and $6 million for deepwater Gulf of Mexico. Liabilities settled in 2015 relate primarily to non-core US properties classified as held for sale. | ||||||||
Revisions in estimate for 2015 relate to changes in cost estimates for Eastern Mediterranean. | ||||||||
For the three months ended March 31, 2014 | ||||||||
Liabilities settled in 2014 include $24 million for onshore US and deepwater Gulf of Mexico abandonments and $17 million related to properties classified as held for sale, offset by $27 million as a result of reclassifying remaining North Sea assets from held for sale to held and used. | ||||||||
Revision in estimate for 2014 included an increase of $67 million related to the non-operated MacCulloch North Sea field due to an increase in costs and a change in timing. See Note 3. Divestitures. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Earnings Per Share | Earnings Per Share | |||||||
Basic earnings per share of common stock is computed using the weighted average number of shares of common stock outstanding during each period. The diluted earnings per share of common stock include the effect of outstanding stock options, shares of restricted stock, or shares of our common stock held in a rabbi trust (when dilutive). The following table summarizes the calculation of basic and diluted earnings per share: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
(millions, except per share amounts) | 2015 | 2014 | ||||||
Net Income (Loss) | $ | (22 | ) | $ | 200 | |||
Weighted Average Number of Shares Outstanding, Basic (1) | 370 | 360 | ||||||
Incremental Shares from Assumed Conversion of Dilutive Stock Options, Restricted Stock, and Shares of Common Stock in Rabbi Trust (2) | — | 5 | ||||||
Weighted Average Number of Shares Outstanding, Diluted | 370 | 365 | ||||||
Earnings (Loss) Per Share, Basic | $ | (0.06 | ) | $ | 0.56 | |||
Earnings (Loss) Per Share, Diluted | (0.06 | ) | 0.55 | |||||
Number of Antidilutive Stock Options, Shares of Restricted Stock, and Shares of Common Stock in Rabbi Trust Excluded from Calculation Above | 9 | 6 | ||||||
(1) | The weighted average number of shares outstanding includes the weighted average shares of common stock issued in connection with the underwritten public offering of 24,150,000 shares of common stock of the Company in first quarter 2015. | |||||||
(2) | For the three months ended March 31, 2015, all outstanding options and non-vested restricted shares have been excluded from the calculation of diluted EPS as the Company incurred a loss for the quarter. Therefore, inclusion of outstanding options and non-vested restricted shares in the calculation of diluted EPS would be anti-dilutive. |
Income_Taxes
Income Taxes | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Income Taxes | Income Taxes | |||||||
The income tax provision relating to continuing operations consists of the following: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
(millions) | 2015 | 2014 | ||||||
Current | $ | 10 | $ | 60 | ||||
Deferred | (30 | ) | 17 | |||||
Total Income Tax (Benefit) Provision | $ | (20 | ) | $ | 77 | |||
Effective Tax Rate | 47.6 | % | 27.6 | % | ||||
Our effective tax rate (ETR) for the three months ended March 31, 2015 increased as compared with the three months ended March 31, 2014 primarily as a result of a tax benefit divided by a pre-tax loss. In the case of a pre-tax loss, our favorable permanent differences, such as income from equity method investees and increased earnings in our foreign jurisdictions with rates that vary from the US statutory rate, have the effect of increasing the tax benefit which, in turn, increases the ETR. | ||||||||
In our major tax jurisdictions, the earliest years remaining open to examination are as follows: US – 2011, Equatorial Guinea – 2009 and Israel – 2010. |
Segment_Information
Segment Information | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||
Segment Information | Segment Information | |||||||||||||||||||
We have operations throughout the world and manage our operations by country. The following information is grouped into four components that are all in the business of crude oil and natural gas exploration, development, production, and acquisition: the United States; West Africa (Equatorial Guinea, Cameroon, Sierra Leone, and Gabon); Eastern Mediterranean (Israel and Cyprus); and Other International and Corporate. Other International includes the North Sea, China (through June 30, 2014), Falkland Islands, Nicaragua and new ventures. Income (loss) from continuing operations before income taxes for the United States and West Africa includes gains and losses on commodity derivative instruments. | ||||||||||||||||||||
(millions) | Consolidated | United | West | Eastern | Other Int'l & | |||||||||||||||
States | Africa | Mediterranean | Corporate | |||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||
Revenues from Third Parties | $ | 740 | $ | 478 | $ | 138 | $ | 120 | $ | 4 | ||||||||||
Income from Equity Method Investees | 18 | 11 | 7 | — | — | |||||||||||||||
Gathering, Marketing and Processing | 1 | 1 | — | — | — | |||||||||||||||
Total Revenues | 759 | 490 | 145 | 120 | 4 | |||||||||||||||
DD&A | 454 | 357 | 77 | 15 | 5 | |||||||||||||||
Asset Impairments | 27 | 3 | — | 24 | — | |||||||||||||||
Gain on Commodity Derivative Instruments | (150 | ) | (105 | ) | (45 | ) | — | — | ||||||||||||
Income (Loss) Before Income Taxes | (42 | ) | (1 | ) | 74 | 51 | (166 | ) | ||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||
Revenues from Third Parties | $ | 1,327 | $ | 842 | $ | 323 | $ | 112 | $ | 50 | ||||||||||
Income from Equity Method Investees | 52 | — | 52 | — | — | |||||||||||||||
Total Revenues | 1,379 | 842 | 375 | 112 | 50 | |||||||||||||||
DD&A | 425 | 308 | 76 | 14 | 27 | |||||||||||||||
Asset Impairments | 97 | 5 | — | — | 92 | |||||||||||||||
Loss on Commodity Derivative Instruments | 75 | 76 | (1 | ) | — | — | ||||||||||||||
Income (Loss) from Before Income Taxes | 277 | 183 | 261 | 77 | (244 | ) | ||||||||||||||
March 31, 2015 | ||||||||||||||||||||
Total Assets | $ | 23,261 | $ | 16,998 | $ | 2,732 | $ | 2,840 | $ | 691 | ||||||||||
December 31, 2014 | ||||||||||||||||||||
Total Assets | 22,553 | 16,400 | 2,763 | 2,806 | 584 | |||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies |
CONSOL Carried Cost Obligation In accordance with our Marcellus Shale joint venture arrangement with a subsidiary of CONSOL Energy Inc. (CONSOL), we agreed to fund one-third of CONSOL's 50% working interest share of future drilling and completion costs, capped at $400 million each year (CONSOL Carried Cost Obligation). The remaining obligation totaled approximately $1.6 billion at March 31, 2015. | |
The CONSOL Carried Cost Obligation is suspended if average Henry Hub natural gas prices fall and remain below $4.00 per MMBtu in any three consecutive month period and remain suspended until average Henry Hub natural gas prices equal or exceed $4.00 per MMBtu for three consecutive months. The CONSOL Carried Cost Obligation is currently suspended due to low natural gas prices. Based on the March 31, 2015 NYMEX Henry Hub natural gas price curve, we expect that the CONSOL Carried Cost Obligation will be suspended for the next 12 months. | |
Legal Proceedings We are involved in various legal proceedings in the ordinary course of business. These proceedings are subject to the uncertainties inherent in any litigation. We are defending ourselves vigorously in all such matters and we believe that the ultimate disposition of such proceedings will not have a material adverse effect on our financial position, results of operations or cash flows. |
Basis_of_Presentation_Tables
Basis of Presentation (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Basis of Presentation [Abstract] | ||||||||
Statement of Operations Information | Statements of Operations Information Other statements of operations information is as follows: | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
(millions) | 2015 | 2014 | ||||||
Production Expense | ||||||||
Lease Operating Expense | $ | 157 | $ | 142 | ||||
Production and Ad Valorem Taxes | 32 | 49 | ||||||
Transportation and Gathering Expense | 56 | 38 | ||||||
Total | $ | 245 | $ | 229 | ||||
Other Operating (Income) Expense, Net | ||||||||
Midstream Gathering and Processing Expense | $ | 4 | $ | 3 | ||||
Other, Net | 4 | 7 | ||||||
Total | $ | 8 | $ | 10 | ||||
Other Non-Operating (Income) Expense, Net | ||||||||
Deferred Compensation Expense (1) | $ | 2 | $ | 4 | ||||
Other (Income) Expense, Net | (1 | ) | 1 | |||||
Total | $ | 1 | $ | 5 | ||||
(1) | Amounts represent increases in the fair value of shares of our common stock held in a rabbi trust. | |||||||
Balance Sheet Information Table | Balance Sheet Information Other balance sheet information is as follows: | |||||||
(millions) | March 31, | December 31, | ||||||
2015 | 2014 | |||||||
Accounts Receivable, Net | ||||||||
Commodity Sales | $ | 303 | $ | 405 | ||||
Joint Interest Billings | 343 | 297 | ||||||
Other | 140 | 171 | ||||||
Allowance for Doubtful Accounts | (17 | ) | (16 | ) | ||||
Total | $ | 769 | $ | 857 | ||||
Other Current Assets | ||||||||
Inventories, Materials and Supplies | $ | 89 | $ | 81 | ||||
Inventories, Crude Oil | 28 | 24 | ||||||
Assets Held for Sale (1) | 106 | 180 | ||||||
Prepaid Expenses and Other Current Assets | 36 | 40 | ||||||
Total | $ | 259 | $ | 325 | ||||
Other Noncurrent Assets | ||||||||
Equity Method Investments | $ | 384 | $ | 325 | ||||
Mutual Fund Investments | 112 | 111 | ||||||
Commodity Derivative Assets | 169 | 180 | ||||||
Other Assets | 119 | 99 | ||||||
Total | $ | 784 | $ | 715 | ||||
Other Current Liabilities | ||||||||
Production and Ad Valorem Taxes | $ | 119 | $ | 110 | ||||
Income Taxes Payable | 182 | 180 | ||||||
Deferred Income Taxes, Current | 151 | 158 | ||||||
Accrued Benefit Costs, Current | 109 | 125 | ||||||
Asset Retirement Obligations | 81 | 81 | ||||||
Interest Payable | 83 | 70 | ||||||
Current Portion of Capital Lease Obligations | 65 | 68 | ||||||
Other | 84 | 152 | ||||||
Total | $ | 874 | $ | 944 | ||||
Other Noncurrent Liabilities | ||||||||
Deferred Compensation Liabilities | $ | 224 | $ | 218 | ||||
Asset Retirement Obligations | 706 | 670 | ||||||
Accrued Benefit Costs | 23 | 24 | ||||||
Other | 204 | 175 | ||||||
Total | $ | 1,157 | $ | 1,087 | ||||
Divestitures_Tables
Divestitures (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Divestitures [Abstract] | ||||
Schedule of gin on asset divestitures | Information regarding assets sold during the first three months of 2014 is as follows: | |||
Three Months Ended | ||||
March 31, | ||||
(millions) | 2014 | |||
Sales Proceeds | $ | 92 | ||
Less | ||||
Net Book Value of Assets Sold | (106 | ) | ||
Goodwill Allocated to Assets Sold | (6 | ) | ||
Asset Retirement Obligations Associated with Assets Sold | 20 | |||
Other Closing Adjustments | (1 | ) | ||
Gain on Divestitures | $ | (1 | ) |
Asset_Impairments_Tables
Asset Impairments (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Asset Impairments [Abstract] | ||||||||
Summary of details of impairment of long-lived assets | Pre-tax (non-cash) asset impairment charges were as follows: | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
(millions) | 2015 | 2014 | ||||||
Deepwater Gulf of Mexico | 3 | — | ||||||
Eastern Mediterranean | 24 | — | ||||||
North Sea | — | 92 | ||||||
Non-Core US Property | — | 5 | ||||||
Total | $ | 27 | $ | 97 | ||||
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||
Unsettled Derivative Instruments | Unsettled Commodity Derivative Instruments As of March 31, 2015, we had entered into the following crude oil derivative instruments: | |||||||||||||||||||||||
Swaps | Collars | |||||||||||||||||||||||
Settlement | Type of Contract | Index | Bbls Per | Weighted | Weighted | Weighted | Weighted | |||||||||||||||||
Period | Day | Average | Average | Average | Average | |||||||||||||||||||
Fixed | Short Put | Floor | Ceiling | |||||||||||||||||||||
Price | Price | Price | Price | |||||||||||||||||||||
Instruments Entered Into as of March 31, 2015 | ||||||||||||||||||||||||
2015 | Swaps | NYMEX WTI | 27,000 | $ | 88.8 | $ | — | $ | — | $ | — | |||||||||||||
2015 | Swaps | Dated Brent | 8,000 | 100.31 | — | — | — | |||||||||||||||||
2015 | Two-Way Collars | NYMEX WTI | 5,000 | — | — | 50 | 64.94 | |||||||||||||||||
2015 | Three-Way Collars | NYMEX WTI | 20,000 | — | 70.5 | 87.55 | 94.41 | |||||||||||||||||
2015 | Three-Way Collars | Dated Brent | 13,000 | — | 76.92 | 96 | 108.49 | |||||||||||||||||
2016 | Swaps | NYMEX WTI | 6,000 | 87.95 | — | — | — | |||||||||||||||||
2016 | Swaps | Dated Brent | 9,000 | 97.96 | — | — | — | |||||||||||||||||
2016 | Three-Way Collars | NYMEX WTI | 6,000 | — | 61 | 72.5 | 86.37 | |||||||||||||||||
2016 | Three-Way Collars | Dated Brent | 8,000 | — | 72.5 | 86.25 | 101.79 | |||||||||||||||||
As of March 31, 2015, we had entered into the following natural gas derivative instruments: | ||||||||||||||||||||||||
Swaps | Collars | |||||||||||||||||||||||
Settlement | Type of Contract | Index | MMBtu | Weighted | Weighted | Weighted | Weighted | |||||||||||||||||
Period | Per Day | Average | Average | Average | Average | |||||||||||||||||||
Fixed | Short Put | Floor | Ceiling | |||||||||||||||||||||
Price | Price | Price | Price | |||||||||||||||||||||
Instruments Entered Into as of March 31, 2015 | ||||||||||||||||||||||||
2015 | Swaps | NYMEX HH | 140,000 | $ | 4.3 | $ | — | $ | — | $ | — | |||||||||||||
2015 | Three-Way Collars | NYMEX HH | 150,000 | — | 3.58 | 4.25 | 5.04 | |||||||||||||||||
2016 | Swaps (1) | NYMEX HH | 40,000 | 3.6 | — | — | — | |||||||||||||||||
2016 | Two-Way Collars | NYMEX HH | 30,000 | — | — | 3 | 3.5 | |||||||||||||||||
2016 | Three-Way Collars | NYMEX HH | 60,000 | — | 2.88 | 3.5 | 4.03 | |||||||||||||||||
Fair Value of Derivative Instruments | Fair Value Amounts and (Gain) Loss on Commodity Derivative Instruments The fair values of commodity derivative instruments in our consolidated balance sheets were as follows: | |||||||||||||||||||||||
Fair Value of Derivative Instruments | ||||||||||||||||||||||||
Asset Derivative Instruments | Liability Derivative Instruments | |||||||||||||||||||||||
March 31, | December 31, | March 31, | December 31, | |||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||
(millions) | Balance Sheet Location | Fair | Balance Sheet Location | Fair | Balance Sheet Location | Fair | Balance Sheet Location | Fair | ||||||||||||||||
Value | Value | Value | Value | |||||||||||||||||||||
Commodity Derivative Instruments | Current Assets | $ | 661 | Current Assets | $ | 710 | Current Liabilities | $ | — | Current Liabilities | $ | — | ||||||||||||
Noncurrent Assets | 169 | Noncurrent Assets | 180 | Noncurrent Liabilities | — | Noncurrent Liabilities | — | |||||||||||||||||
Total | $ | 830 | $ | 890 | $ | — | $ | — | ||||||||||||||||
Derivative Instruments, (Gain) Loss | The effect of commodity derivative instruments on our consolidated statements of operations was as follows: | |||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
(millions) | 2015 | 2014 | ||||||||||||||||||||||
Cash (Received) Paid in Settlement of Commodity Derivative Instruments | ||||||||||||||||||||||||
Crude Oil | $ | (185 | ) | $ | 27 | |||||||||||||||||||
Natural Gas | (25 | ) | 6 | |||||||||||||||||||||
Total Cash (Received) Paid in Settlement of Commodity Derivative Instruments | (210 | ) | 33 | |||||||||||||||||||||
Non-cash Portion of (Gain) Loss on Commodity Derivative Instruments | ||||||||||||||||||||||||
Crude Oil | 55 | 28 | ||||||||||||||||||||||
Natural Gas | 5 | 14 | ||||||||||||||||||||||
Total Non-cash Portion of (Gain) Loss on Commodity Derivative Instruments | 60 | 42 | ||||||||||||||||||||||
(Gain) Loss on Commodity Derivative Instruments | ||||||||||||||||||||||||
Crude Oil | (130 | ) | 55 | |||||||||||||||||||||
Natural Gas | (20 | ) | 20 | |||||||||||||||||||||
Total (Gain) Loss on Commodity Derivative Instruments | $ | (150 | ) | $ | 75 | |||||||||||||||||||
Debt_Tables
Debt (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Debt [Abstract] | ||||||||||||||||
Schedule of debt | Debt consists of the following: | |||||||||||||||
March 31, | December 31, | |||||||||||||||
2015 | 2014 | |||||||||||||||
(millions, except percentages) | Debt | Interest Rate | Debt | Interest Rate | ||||||||||||
Credit Facility, due October 3, 2018 | $ | — | — | % | $ | — | — | % | ||||||||
Capital Lease and Other Obligations | 419 | — | % | 413 | — | % | ||||||||||
8.25% Senior Notes, due March 1, 2019 | 1,000 | 8.25 | % | 1,000 | 8.25 | % | ||||||||||
4.15% Senior Notes, due December 15, 2021 | 1,000 | 4.15 | % | 1,000 | 4.15 | % | ||||||||||
7.25% Senior Notes, due October 15, 2023 | 100 | 7.25 | % | 100 | 7.25 | % | ||||||||||
3.90% Senior Notes, due November 15, 2024 | 650 | 3.9 | % | 650 | 3.9 | % | ||||||||||
8.00% Senior Notes, due April 1, 2027 | 250 | 8 | % | 250 | 8 | % | ||||||||||
6.00% Senior Notes, due March 1, 2041 | 850 | 6 | % | 850 | 6 | % | ||||||||||
5.25% Senior Notes, due November 15, 2043 | 1,000 | 5.25 | % | 1,000 | 5.25 | % | ||||||||||
5.05% Senior Notes, due November 15, 2044 | 850 | 5.05 | % | 850 | 5.05 | % | ||||||||||
7.25% Senior Debentures, due August 1, 2097 | 84 | 7.25 | % | 84 | 7.25 | % | ||||||||||
Total | 6,203 | 6,197 | ||||||||||||||
Unamortized Discount | (25 | ) | (26 | ) | ||||||||||||
Total Debt, Net of Discount | 6,178 | 6,171 | ||||||||||||||
Less Amounts Due Within One Year | ||||||||||||||||
Capital Lease Obligations | (65 | ) | (68 | ) | ||||||||||||
Long-Term Debt Due After One Year | $ | 6,113 | $ | 6,103 | ||||||||||||
Fair_Value_Measurements_and_Di1
Fair Value Measurements and Disclosures (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Measurement information for assets and liabilities that are measured at fair value on a recurring basis was as follows: | |||||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||||||
Quoted Prices in | Significant Other | Significant | Adjustment (4) | Fair Value Measurement | ||||||||||||||||
Active Markets | Observable Inputs | Unobservable | ||||||||||||||||||
(Level 1) (1) | (Level 2) (2) | Inputs (Level 3) (3) | ||||||||||||||||||
(millions) | ||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||
Financial Assets | ||||||||||||||||||||
Mutual Fund Investments | $ | 112 | $ | — | $ | — | $ | — | $ | 112 | ||||||||||
Commodity Derivative Instruments | — | 832 | — | (2 | ) | 830 | ||||||||||||||
Financial Liabilities | ||||||||||||||||||||
Commodity Derivative Instruments | — | (2 | ) | — | 2 | — | ||||||||||||||
Portion of Deferred Compensation Liability Measured at Fair Value | (137 | ) | — | — | — | (137 | ) | |||||||||||||
December 31, 2014 | ||||||||||||||||||||
Financial Assets | ||||||||||||||||||||
Mutual Fund Investments | $ | 111 | $ | — | $ | — | $ | — | $ | 111 | ||||||||||
Commodity Derivative Instruments | — | 890 | — | — | 890 | |||||||||||||||
Financial Liabilities | ||||||||||||||||||||
Commodity Derivative Instruments | — | — | — | — | — | |||||||||||||||
Portion of Deferred Compensation Liability Measured at Fair Value | (134 | ) | — | — | — | (134 | ) | |||||||||||||
(1) | Level 1 measurements are fair value measurements which use quoted market prices (unadjusted) in active markets for identical assets or liabilities. We use Level 1 inputs when available as Level 1 inputs generally provide the most reliable evidence of fair value. | |||||||||||||||||||
(2) | Level 2 measurements are fair value measurements which use inputs, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly. | |||||||||||||||||||
(3) | Level 3 measurements are fair value measurements which use unobservable inputs. | |||||||||||||||||||
(4) | Amount represents the impact of netting provisions within our master agreements that allow us to net cash settle asset and liability positions with the same counterparty. | |||||||||||||||||||
Fair Value Measurements, Nonrecurring | Asset Impairments Information about impaired assets is as follows: | |||||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||||||
Description | Quoted Prices in | Significant Other | Significant | Net Book Value (1) | Total Pre-tax (Non-cash) Impairment Loss | |||||||||||||||
Active Markets | Observable Inputs | Unobservable | ||||||||||||||||||
(Level 1) | (Level 2) | Inputs (Level 3) | ||||||||||||||||||
millions | ||||||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||
Impaired Oil and Gas Properties | $ | — | $ | — | $ | — | $ | 27 | $ | 27 | ||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||
Impaired Oil and Gas Properties | — | — | 6 | 103 | 97 | |||||||||||||||
(1) Amount represents net book value at the date of assessment. | ||||||||||||||||||||
Additional fair value disclosures | Fair value information regarding our debt is as follows: | |||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
(millions) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||||
Total Debt, Net of Unamortized Discount (1) | $ | 5,759 | $ | 6,385 | $ | 5,758 | $ | 6,179 | ||||||||||||
(1) | Excludes capital lease and other obligations. |
Capitalized_Exploratory_Well_C1
Capitalized Exploratory Well Costs (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Capitalized Exploratory Well Costs [Abstract] | ||||||||
Changes in Capitalized Exploratory Well Costs | Changes in capitalized exploratory well costs are as follows and exclude amounts that were capitalized and subsequently expensed in the same period: | |||||||
(millions) | Three Months Ended March 31, 2015 | |||||||
Capitalized Exploratory Well Costs, Beginning of Period | $ | 1,337 | ||||||
Additions to Capitalized Exploratory Well Costs Pending Determination of Proved Reserves | 59 | |||||||
Reclassified to Proved Oil and Gas Properties Based on Determination of Proved Reserves | (6 | ) | ||||||
Capitalized Exploratory Well Costs Charged to Expense (1) | (17 | ) | ||||||
Capitalized Exploratory Well Costs, End of Period | $ | 1,373 | ||||||
(1) Relates to onshore US exploration activity. | ||||||||
Aging of Capitalized Well Costs | The following table provides an aging of capitalized exploratory well costs based on the date that drilling commenced, and the number of projects that have been capitalized for a period greater than one year: | |||||||
(millions) | March 31, | December 31, | ||||||
2015 | 2014 | |||||||
Exploratory Well Costs Capitalized for a Period of One Year or Less | $ | 272 | $ | 247 | ||||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 1,101 | 1,090 | ||||||
Balance at End of Period | $ | 1,373 | $ | 1,337 | ||||
Number of Projects with Exploratory Well Costs That Have Been Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 13 | 13 | ||||||
Aging of Exploratory Well Costs | The following table includes exploratory well costs that have been capitalized for a period greater than one year since the commencement of drilling as of March 31, 2015: | |||||||
(millions) | Total by Project | Progress | ||||||
Country/Project: | ||||||||
Onshore US | ||||||||
Northeast Nevada | $ | 26 | Analyzing results from our first four exploratory vertical wells and evaluating potential for production tests. | |||||
Deepwater Gulf of Mexico | ||||||||
Troubadour | 47 | Evaluating development scenarios for this 2013 natural gas discovery including subsea tieback to existing infrastructure. | ||||||
Offshore Equatorial Guinea (Blocks O and I) | ||||||||
Diega/Carmen | 221 | Evaluating regional development scenarios for this 2008 crude oil discovery. We drilled subsequent appraisal wells. During 2014, we conducted additional seismic activity over Blocks O and I and are engaged in processing the newly-acquired seismic data. | ||||||
Carla | 154 | Evaluating regional development scenarios for this 2011 crude oil discovery. We drilled subsequent appraisal wells. During 2014, we conducted additional seismic activity over Blocks O and I and are engaged in processing the newly-acquired seismic data. | ||||||
Felicita | 39 | Evaluating regional development plans for this 2008 condensate and natural gas discovery. A natural gas development team is working with the governments of Equatorial Guinea and Cameroon to evaluate natural gas monetization options and finalize a data exchange agreement between the two countries. | ||||||
Yolanda | 20 | Evaluating regional development plans for this 2007 condensate and natural gas discovery. A natural gas development team is working with the governments of Equatorial Guinea and Cameroon to evaluate natural gas monetization options and finalize a data exchange agreement between the two countries. | ||||||
Offshore Cameroon | ||||||||
YoYo | 48 | Working with the government to assess commercialization of this 2007 condensate and natural gas discovery. A natural gas development team is working with the governments of Equatorial Guinea and Cameroon to evaluate natural gas monetization options and finalize a data exchange agreement between the two countries. | ||||||
Offshore Israel (1) | ||||||||
Leviathan | 185 | During 2014, we received the Leviathan Development and Production Leases, submitted a development plan to the government, completed substantial engineering and procurement activities and engaged in natural gas marketing activities. | ||||||
Leviathan-1 Deep | 79 | Well did not reach the target interval; developing future drilling plans to test this deep oil concept, which is held by the Leviathan Development and Production Leases. We are working on potential well design and placement. | ||||||
Dalit | 28 | Submitted a development plan to the government to develop this 2009 natural gas discovery as a tie-in to existing infrastructure. | ||||||
Dolphin 1 | 25 | Reviewing regional development scenarios for this 2011 natural gas discovery, including a potential tieback to Leviathan. We have applied to the Israeli government for a commerciality ruling. | ||||||
Offshore Cyprus | ||||||||
Cyprus | 203 | Discussing monetization options with the Cyprus government for this 2011 natural gas discovery. In May 2014, our application for renewal of the PSC for two additional years was approved. We plan to submit a plan of development to the government in 2015. | ||||||
Other | ||||||||
Individual Projects Less than $20 million | 26 | Continuing to drill and evaluate wells. | ||||||
Total | $ | 1,101 | ||||||
(1) We are currently working to resolve antitrust and other regulatory matters with the Israeli government to enable Leviathan and other development to move forward. See Note 2. Basis of Presentation – Update on Core Area – Israel. |
Asset_Retirement_Obligations_T
Asset Retirement Obligations (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Asset Retirement Obligation Disclosure [Abstract] | ||||||||
Changes in Asset Retirement Obligations | Changes in ARO are as follows: | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
(millions) | 2015 | 2014 | ||||||
Asset Retirement Obligations, Beginning Balance | $ | 751 | $ | 586 | ||||
Liabilities Incurred | 10 | 1 | ||||||
Liabilities Settled | (8 | ) | (14 | ) | ||||
Revision of Estimate | 24 | 72 | ||||||
Accretion Expense (1) | 10 | 10 | ||||||
Asset Retirement Obligations, Ending Balance | $ | 787 | $ | 655 | ||||
(1) Accretion expense is included in DD&A expense in the consolidated statements of operations. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Schedule of earnings per share | The following table summarizes the calculation of basic and diluted earnings per share: | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
(millions, except per share amounts) | 2015 | 2014 | ||||||
Net Income (Loss) | $ | (22 | ) | $ | 200 | |||
Weighted Average Number of Shares Outstanding, Basic (1) | 370 | 360 | ||||||
Incremental Shares from Assumed Conversion of Dilutive Stock Options, Restricted Stock, and Shares of Common Stock in Rabbi Trust (2) | — | 5 | ||||||
Weighted Average Number of Shares Outstanding, Diluted | 370 | 365 | ||||||
Earnings (Loss) Per Share, Basic | $ | (0.06 | ) | $ | 0.56 | |||
Earnings (Loss) Per Share, Diluted | (0.06 | ) | 0.55 | |||||
Number of Antidilutive Stock Options, Shares of Restricted Stock, and Shares of Common Stock in Rabbi Trust Excluded from Calculation Above | 9 | 6 | ||||||
(1) | The weighted average number of shares outstanding includes the weighted average shares of common stock issued in connection with the underwritten public offering of 24,150,000 shares of common stock of the Company in first quarter 2015. | |||||||
(2) | For the three months ended March 31, 2015, all outstanding options and non-vested restricted shares have been excluded from the calculation of diluted EPS as the Company incurred a loss for the quarter. Therefore, inclusion of outstanding options and non-vested restricted shares in the calculation of diluted EPS would be anti-dilutive. |
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Income Tax Provision (Benefit) | The income tax provision relating to continuing operations consists of the following: | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
(millions) | 2015 | 2014 | ||||||
Current | $ | 10 | $ | 60 | ||||
Deferred | (30 | ) | 17 | |||||
Total Income Tax (Benefit) Provision | $ | (20 | ) | $ | 77 | |||
Effective Tax Rate | 47.6 | % | 27.6 | % | ||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||
Segment Information | ||||||||||||||||||||
(millions) | Consolidated | United | West | Eastern | Other Int'l & | |||||||||||||||
States | Africa | Mediterranean | Corporate | |||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||
Revenues from Third Parties | $ | 740 | $ | 478 | $ | 138 | $ | 120 | $ | 4 | ||||||||||
Income from Equity Method Investees | 18 | 11 | 7 | — | — | |||||||||||||||
Gathering, Marketing and Processing | 1 | 1 | — | — | — | |||||||||||||||
Total Revenues | 759 | 490 | 145 | 120 | 4 | |||||||||||||||
DD&A | 454 | 357 | 77 | 15 | 5 | |||||||||||||||
Asset Impairments | 27 | 3 | — | 24 | — | |||||||||||||||
Gain on Commodity Derivative Instruments | (150 | ) | (105 | ) | (45 | ) | — | — | ||||||||||||
Income (Loss) Before Income Taxes | (42 | ) | (1 | ) | 74 | 51 | (166 | ) | ||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||
Revenues from Third Parties | $ | 1,327 | $ | 842 | $ | 323 | $ | 112 | $ | 50 | ||||||||||
Income from Equity Method Investees | 52 | — | 52 | — | — | |||||||||||||||
Total Revenues | 1,379 | 842 | 375 | 112 | 50 | |||||||||||||||
DD&A | 425 | 308 | 76 | 14 | 27 | |||||||||||||||
Asset Impairments | 97 | 5 | — | — | 92 | |||||||||||||||
Loss on Commodity Derivative Instruments | 75 | 76 | (1 | ) | — | — | ||||||||||||||
Income (Loss) from Before Income Taxes | 277 | 183 | 261 | 77 | (244 | ) | ||||||||||||||
March 31, 2015 | ||||||||||||||||||||
Total Assets | $ | 23,261 | $ | 16,998 | $ | 2,732 | $ | 2,840 | $ | 691 | ||||||||||
December 31, 2014 | ||||||||||||||||||||
Total Assets | 22,553 | 16,400 | 2,763 | 2,806 | 584 | |||||||||||||||
Basis_of_Presentation_Details
Basis of Presentation (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | |||||
In Millions, except Share data, unless otherwise specified | Mar. 03, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Mar. 03, 2015 | |||
Underwritten public offering (in shares) | 21,000,000 | |||||||
Common stock, par value per share (in dollars per share) | $0.01 | $0.01 | $0.01 | $0.01 | ||||
Sale of stock (in dollars per share) | $47.50 | $47.50 | ||||||
Proceeds from Issuance of Shares of Common Stock to Public, Net of Offering Costs | $1,112 | $0 | ||||||
Repayment of outstanding indebtedness | 150 | |||||||
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 | ||||||
Debt Issuance Cost | 48 | 50 | ||||||
Production Expense | ||||||||
Lease Operating Expense | 157 | 142 | ||||||
Production and Ad Valorem Taxes | 32 | 49 | ||||||
Transportation and Gathering Expense | 56 | 38 | ||||||
Total | 245 | 229 | ||||||
Other Operating Expense Net [Abstract] | ||||||||
Midstream Gathering and Processing Expense | 4 | 3 | ||||||
Other, Net | -4 | -7 | ||||||
Total | 8 | 10 | ||||||
Other Non-Operating (Income) Expense, Net | ||||||||
Deferred Compensation Expense | 2 | [1] | 4 | [1] | ||||
Other (Income) Expense, Net | -1 | 1 | ||||||
Total | 1 | 5 | ||||||
Accounts Receivable, Net | ||||||||
Commodity Sales | 303 | 405 | ||||||
Joint Interest Billings | 343 | 297 | ||||||
Other | 140 | 171 | ||||||
Allowance for Doubtful Accounts | -17 | -16 | ||||||
Total | 769 | 857 | ||||||
Other Current Assets | ||||||||
Inventories, Materials and Supplies | 89 | 81 | ||||||
Inventories, Crude Oil | 28 | 24 | ||||||
Assets Held-for-Sale | 106 | [2] | 180 | [2] | ||||
Prepaid Expenses and Other Current Assets | 36 | 40 | ||||||
Total | 259 | 325 | ||||||
Other Noncurrent Assets | ||||||||
Equity Method Investments | 384 | 325 | ||||||
Mutual Fund Investments | 112 | 111 | ||||||
Commodity Derivative Assets | 169 | 180 | ||||||
Other Assets | 119 | 99 | ||||||
Total | 784 | 715 | ||||||
Other Current Liabilities | ||||||||
Production and Ad Valorem Taxes | 119 | 110 | ||||||
Income Taxes Payable | 182 | 180 | ||||||
Deferred Income Taxes, Current | 151 | 158 | ||||||
Accrued Benefit Costs, Current | 109 | 125 | ||||||
Asset Retirement Obligations | 81 | 81 | ||||||
Interest Payable | 83 | 70 | ||||||
Current Portion of Capital Lease Obligations | 65 | 68 | ||||||
Other | 84 | 152 | ||||||
Total | 874 | 944 | ||||||
Other Noncurrent Liabilities | ||||||||
Deferred Compensation Liabilities | 224 | 218 | ||||||
Asset Retirement Obligations | 706 | 670 | ||||||
Accrued Benefit Costs | 23 | 24 | ||||||
Other | 204 | 175 | ||||||
Total | 1,157 | 1,087 | ||||||
Offshore Israel | ||||||||
Other Current Assets | ||||||||
Assets Held-for-Sale | $76 | [2] | ||||||
Additional Shares Issued - shoe [Member] | ||||||||
Underwritten public offering (in shares) | 3,150,000 | |||||||
Common Stock Authorized after Stock Issuance [Member] | ||||||||
Common stock, shares authorized (in shares) | 1,000,000,000 | |||||||
[1] | Amounts represent increases in the fair value of shares of our common stock held in a rabbi trust. | |||||||
[2] | (1) Assets held for sale includes $76 million related to our Tanin and Karish natural gas discoveries, offshore Israel. See Update on Core Area – Israel, above. |
Divestitures_Details
Divestitures (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Sales Proceeds | $119 | $92 |
Asset Retirement Obligations Associated with Assets Sold | 8 | 14 |
US Onshore Assets Sold [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Sales Proceeds | 119 | 92 |
Net Book Value of Assets Sold | -106 | |
Goodwill Allocated to Assets Sold | -6 | |
Asset Retirement Obligations Associated with Assets Sold | 20 | |
Other Closing Adjustments | -1 | |
Gain on Divestitures | ($1) |
Asset_Impairments_Details
Asset Impairments (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Asset Impairments | $27 | $97 |
Deepwater Gulf of Mexico (US Properties) [Member] | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Asset Impairments | 3 | 0 |
Eastern Mediterranean [Member] | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Asset Impairments | 24 | 0 |
North Sea [Member] | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Asset Impairments | 0 | 92 |
Non-Core US Property [Member] | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Asset Impairments | $0 | $5 |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activities (Details) | 3 Months Ended | |
Mar. 31, 2015 | ||
Crude Oil Commodity Contract [Member] | Swaps - NYMEX WTI 2015 | ||
Derivative [Line Items] | ||
Settlement Period | 2015 | |
Index | NYMEX WTI | |
Bbls Per Day | 27,000 | |
Weighted Average Fixed Price | 88.8 | |
Crude Oil Commodity Contract [Member] | Swaps - Dated Brent 2015 | ||
Derivative [Line Items] | ||
Settlement Period | 2015 | |
Index | Dated Brent | |
Bbls Per Day | 8,000 | |
Weighted Average Fixed Price | 100.31 | |
Crude Oil Commodity Contract [Member] | Two Way Collars - NYMEX WTI 2015 | ||
Derivative [Line Items] | ||
Settlement Period | 2015 | |
Index | NYMEX WTI | |
Bbls Per Day | 5,000 | |
Weighted Average Floor Price | 50 | |
Weighted Average Ceiling Price | 64.94 | |
Crude Oil Commodity Contract [Member] | Three Way Collars - NYMEX WTI 2015 | ||
Derivative [Line Items] | ||
Settlement Period | 2015 | |
Index | NYMEX WTI | |
Bbls Per Day | 20,000 | |
Weighted Average Short Put Price | 70.5 | |
Weighted Average Floor Price | 87.55 | |
Weighted Average Ceiling Price | 94.41 | |
Crude Oil Commodity Contract [Member] | Three Way Collars - Dated Brent 2015 | ||
Derivative [Line Items] | ||
Settlement Period | 2015 | |
Index | Dated Brent | |
Bbls Per Day | 13,000 | |
Weighted Average Short Put Price | 76.92 | |
Weighted Average Floor Price | 96 | |
Weighted Average Ceiling Price | 108.49 | |
Crude Oil Commodity Contract [Member] | Swaps - NYMEX WTI 2016 | ||
Derivative [Line Items] | ||
Settlement Period | 2016 | |
Index | NYMEX WTI | |
Bbls Per Day | 6,000 | |
Weighted Average Fixed Price | 87.95 | |
Crude Oil Commodity Contract [Member] | Swaps - Dated Brent 2016 | ||
Derivative [Line Items] | ||
Settlement Period | 2016 | |
Index | Dated Brent | |
Bbls Per Day | 9,000 | |
Weighted Average Fixed Price | 97.96 | |
Crude Oil Commodity Contract [Member] | Three Way Collars - NYMEX WTI 2016 | ||
Derivative [Line Items] | ||
Settlement Period | 2016 | |
Index | NYMEX WTI | |
Bbls Per Day | 6,000 | |
Weighted Average Short Put Price | 61 | |
Weighted Average Floor Price | 72.5 | |
Weighted Average Ceiling Price | 86.37 | |
Crude Oil Commodity Contract [Member] | Three Way Collars - Dated Brent 2016 | ||
Derivative [Line Items] | ||
Settlement Period | 2016 | |
Index | Dated Brent | |
Bbls Per Day | 8,000 | |
Weighted Average Short Put Price | 72.5 | |
Weighted Average Floor Price | 86.25 | |
Weighted Average Ceiling Price | 101.79 | |
Natural Gas Commodity Contract | Swaps - NYMEX HH 2015 | ||
Derivative [Line Items] | ||
Settlement Period | 2015 | |
Index | NYMEX HH | |
Bbls Per Day | 140,000 | |
Weighted Average Fixed Price | 4.3 | |
Natural Gas Commodity Contract | Three Way Collars - NYMEX HH 2015 | ||
Derivative [Line Items] | ||
Settlement Period | 2015 | |
Index | NYMEX HH | |
Bbls Per Day | 150,000 | |
Weighted Average Short Put Price | 3.58 | |
Weighted Average Floor Price | 4.25 | |
Weighted Average Ceiling Price | 5.04 | |
Natural Gas Commodity Contract | Swaps - NYMEX HH 2016 | ||
Derivative [Line Items] | ||
Settlement Period | 2016 | |
Index | NYMEX HH | |
Bbls Per Day | 40,000 | [1] |
Weighted Average Fixed Price | 3.6 | [1] |
Natural Gas Commodity Contract | Two Way Collars - NYMEX HH 2016 | ||
Derivative [Line Items] | ||
Settlement Period | 2016 | |
Index | NYMEX HH | |
Bbls Per Day | 30,000 | |
Weighted Average Floor Price | 3 | |
Weighted Average Ceiling Price | 3.5 | |
Natural Gas Commodity Contract | Three Way Collars - NYMEX HH 2016 | ||
Derivative [Line Items] | ||
Settlement Period | 2016 | |
Index | NYMEX HH | |
Bbls Per Day | 60,000 | |
Weighted Average Short Put Price | 2.88 | |
Weighted Average Floor Price | 3.5 | |
Weighted Average Ceiling Price | 4.03 | |
Natural Gas Commodity Contract | Swaps - NYMEX HH Extension | ||
Derivative [Line Items] | ||
Bbls Per Day | 30,000 | |
Natural Gas Commodity Contract | Swaps - NYMEX HH Increase | ||
Derivative [Line Items] | ||
Bbls Per Day | 30,000 | |
Weighted Average Fixed Price | 3.5 | [1] |
[1] | (1)Â We have entered into natural gas derivative contracts which give counterparties the option to extend for an additional 12-month period. Options covering a notional volume of 30,000 MMBtu/d are exercisable on December 22 and 23, 2016. If the counterparties exercise all such options, the notional volume of our existing natural gas derivative contracts will increase by 30,000 MMBtu/d at an average price of $3.50 per MMBtu for each month during the period January 1, 2017 through December 31, 2017. |
Derivative_Instruments_and_Hed3
Derivative Instruments and Hedging Activities (Details 2) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value | $830 | $890 | |
Derivative Liability, Fair Value | 0 | 0 | |
Non-cash Portion of (Gain) Loss on Commodity Derivative Instruments | -210 | 33 | |
(Gain) Loss on Commodity Derivative Instruments | 60 | 42 | |
(Gain) Loss on Commodity Derivative Instruments | -150 | 75 | |
Current Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value | 661 | 710 | |
Derivative Liability, Fair Value | 0 | 0 | |
Noncurrent Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Asset, Fair Value | 169 | 180 | |
Derivative Liability, Fair Value | 0 | 0 | |
Crude Oil [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Non-cash Portion of (Gain) Loss on Commodity Derivative Instruments | -185 | 27 | |
(Gain) Loss on Commodity Derivative Instruments | 55 | 28 | |
(Gain) Loss on Commodity Derivative Instruments | -130 | 55 | |
Natural Gas [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Non-cash Portion of (Gain) Loss on Commodity Derivative Instruments | -25 | 6 | |
(Gain) Loss on Commodity Derivative Instruments | 5 | 14 | |
(Gain) Loss on Commodity Derivative Instruments | ($20) | $20 |
Debt_Details
Debt (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Oct. 03, 2013 | |
Debt Instrument [Line Items] | ||||
Debt | $6,203,000,000 | $6,197,000,000 | ||
Unamortized Discount | -25,000,000 | -26,000,000 | ||
Total Debt, Net of Discount | 6,178,000,000 | 6,171,000,000 | ||
Capital Lease Obligations, Current | -65,000,000 | -68,000,000 | ||
Long-term Debt Due After One Year | 6,113,000,000 | 6,103,000,000 | 6,103,000,000 | |
Credit Facility, due October 3, 2018 | ||||
Debt Instrument [Line Items] | ||||
Debt | 0 | 0 | ||
Interest Rate (percentage in hundredths) | 0.00% | 0.00% | ||
Debt instrument, maturity date | 3-Oct-18 | 3-Oct-18 | ||
Revolving Credit Facility Maximum Borrowing Capacity | 4,000,000,000 | |||
Credit facility fee rate basis points, minimum | 0.13% | |||
Credit facility fee rate basis points, maximum | 0.30% | |||
Credit facility aggregate short-term loans and letters of credit, maximum | 500,000,000 | |||
Credit facility interest rate, Eurodollar rate plus, minimum | 1.00% | |||
Credit facility interest rate, Eurodollar rate plus, maximum | 1.45% | |||
Capital Lease and Other Obligations | ||||
Debt Instrument [Line Items] | ||||
Debt | 419,000,000 | 413,000,000 | ||
Interest Rate (percentage in hundredths) | 0.00% | 0.00% | ||
Capital Lease Obligations, Current | -65,000,000 | -68,000,000 | ||
8.25% Senior Notes, due March 1, 2019 | ||||
Debt Instrument [Line Items] | ||||
Debt | 1,000,000,000 | 1,000,000,000 | ||
Interest Rate (percentage in hundredths) | 8.25% | 8.25% | ||
Debt instrument, maturity date | 1-Mar-19 | 1-Mar-19 | ||
4.15% Senior Notes, due December 15, 2021 | ||||
Debt Instrument [Line Items] | ||||
Debt | 1,000,000,000 | 1,000,000,000 | ||
Interest Rate (percentage in hundredths) | 4.15% | 4.15% | ||
Debt instrument, maturity date | 15-Dec-21 | 15-Dec-21 | ||
7.25% Senior Notes, due October 15, 2023 | ||||
Debt Instrument [Line Items] | ||||
Debt | 100,000,000 | 100,000,000 | ||
Interest Rate (percentage in hundredths) | 7.25% | 7.25% | ||
Debt instrument, maturity date | 15-Oct-23 | 15-Oct-23 | ||
3.90% Senior Notes, due November 15, 2024 | ||||
Debt Instrument [Line Items] | ||||
Debt | 650,000,000 | 650,000,000 | ||
Interest Rate (percentage in hundredths) | 3.90% | 3.90% | ||
Debt instrument, maturity date | 15-Nov-24 | |||
8.00% Senior Notes, due April 1, 2027 | ||||
Debt Instrument [Line Items] | ||||
Debt | 250,000,000 | 250,000,000 | ||
Interest Rate (percentage in hundredths) | 8.00% | 8.00% | ||
Debt instrument, maturity date | 1-Apr-27 | 1-Apr-27 | ||
6.00% Senior Notes, due March 1, 2041 | ||||
Debt Instrument [Line Items] | ||||
Debt | 850,000,000 | 850,000,000 | ||
Interest Rate (percentage in hundredths) | 6.00% | 6.00% | ||
Debt instrument, maturity date | 1-Mar-41 | 1-Mar-41 | ||
5.25% Senior Notes, due November 15, 2043 | ||||
Debt Instrument [Line Items] | ||||
Debt | 1,000,000,000 | 1,000,000,000 | ||
Interest Rate (percentage in hundredths) | 5.25% | 5.25% | ||
5.05% Senior Notes, due November 15, 2044 | ||||
Debt Instrument [Line Items] | ||||
Debt | 850,000,000 | 850,000,000 | ||
Interest Rate (percentage in hundredths) | 5.05% | 5.05% | ||
Debt instrument, maturity date | 15-Nov-44 | |||
7.25% Senior Debentures, due August 1, 2097 | ||||
Debt Instrument [Line Items] | ||||
Debt | $84,000,000 | $84,000,000 | ||
Interest Rate (percentage in hundredths) | 7.25% | 7.25% | ||
Debt instrument, maturity date | 1-Aug-97 | 1-Aug-97 |
Fair_Value_Measurements_and_Di2
Fair Value Measurements and Disclosures of Assets and Liabilities Measured on a Recurring Basis (Details) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Financial Assets [Abstract] | ||||
Mutual Fund Investments | $112 | $111 | ||
Commodity Derivative Instruments | 830 | 890 | ||
Financial Liabilities [Abstract] | ||||
Commodity Derivative Instruments | 0 | 0 | ||
Portion of Deferred Compensation Liability Measured at Fair Value | -137 | -134 | ||
Quoted Prices in Active Markets (Level 1) | ||||
Financial Assets [Abstract] | ||||
Mutual Fund Investments | 112 | [1] | 111 | [1] |
Commodity Derivative Instruments | 0 | [1] | 0 | [1] |
Financial Liabilities [Abstract] | ||||
Commodity Derivative Instruments | 0 | [1] | 0 | [1] |
Portion of Deferred Compensation Liability Measured at Fair Value | -137 | [1] | -134 | [1] |
Significant Other Observable Inputs (Level 2) | ||||
Financial Assets [Abstract] | ||||
Mutual Fund Investments | 0 | [2] | 0 | [2] |
Commodity Derivative Instruments | 832 | [2] | 890 | [2] |
Financial Liabilities [Abstract] | ||||
Commodity Derivative Instruments | -2 | [2] | 0 | [2] |
Portion of Deferred Compensation Liability Measured at Fair Value | 0 | [2] | 0 | [2] |
Significant Unobservable Inputs (Level 3) | ||||
Financial Assets [Abstract] | ||||
Mutual Fund Investments | 0 | [3] | 0 | [3] |
Commodity Derivative Instruments | 0 | [3] | 0 | [3] |
Financial Liabilities [Abstract] | ||||
Commodity Derivative Instruments | 0 | [3] | 0 | [3] |
Portion of Deferred Compensation Liability Measured at Fair Value | 0 | [3] | 0 | [3] |
Adjustment | ||||
Financial Assets [Abstract] | ||||
Mutual Fund Investments | 0 | [4] | 0 | [4] |
Commodity Derivative Instruments | -2 | [4] | 0 | [4] |
Financial Liabilities [Abstract] | ||||
Commodity Derivative Instruments | 2 | [4] | 0 | [4] |
Portion of Deferred Compensation Liability Measured at Fair Value | $0 | [4] | $0 | [4] |
[1] | Level 1 measurements are fair value measurements which use quoted market prices (unadjusted) in active markets for identical assets or liabilities. We use Level 1 inputs when available as Level 1 inputs generally provide the most reliable evidence of fair value. | |||
[2] | Level 2 measurements are fair value measurements which use inputs, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly. | |||
[3] | Level 3 measurements are fair value measurements which use unobservable inputs. | |||
[4] | Amount represents the impact of netting provisions within our master agreements that allow us to net cash settle asset and liability positions with the same counterparty. |
Fair_Value_Measurements_and_Di3
Fair Value Measurements and Disclosures of Assets and Liabilities Measured on a Nonrecurring Basis (Details 2) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Asset Impairment Charges [Abstract] | ||
Impaired of Oil and Gas Properties | $27 | $97 |
Oil and Gas Property, Full Cost Method, Net | 27 | 103 |
Discount Rate for Impairment Model | 10.00% | 10.00% |
Quoted Prices in Active Markets (Level 1) | ||
Asset Impairment Charges [Abstract] | ||
Impaired of Oil and Gas Properties | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Asset Impairment Charges [Abstract] | ||
Impaired of Oil and Gas Properties | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Asset Impairment Charges [Abstract] | ||
Impaired of Oil and Gas Properties | $0 | $6 |
Fair_Value_Measurements_and_Di4
Fair Value Measurements and Disclosures (Details 3) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Reported Value Measurement [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term Debt, Fair Value | $5,759 | [1] | $5,758 | [1] |
Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term Debt, Fair Value | $6,385 | [1] | $6,179 | [1] |
[1] | Excludes capital lease and other obligations. |
Capitalized_Exploratory_Well_C2
Capitalized Exploratory Well Costs (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | |
Capitalized Exploratory Well Costs [Roll Forward] | |||
Capitalized Exploratory Well Costs, Beginning of Period | $1,337 | ||
Additions to Capitalized Exploratory Well Costs Pending Determination of Proved Reserves | 59 | ||
Reclassified to Proved Oil and Gas Properties Based on Determination of Proved Reserves | -6 | ||
Capitalized Exploratory Well Cost, Charged to Expense | -17 | [1] | |
Capitalized Exploratory Well Costs, End of Period | 1,373 | ||
Exploratory Well Costs Capitalized for a Period of One Year or Less | 272 | 247 | |
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 1,101 | 1,090 | |
Capitalized Exploratory Well Costs, End of Period | 1,373 | ||
Number of Projects with Exploratory Well Costs That Have Been Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 13 | 13 | |
Northeast Nevada Onshore US [Member] | |||
Capitalized Exploratory Well Costs [Roll Forward] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 26 | ||
Troubadour Deepwater Gulf of Mexico [Member] | |||
Capitalized Exploratory Well Costs [Roll Forward] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 47 | ||
Diega (including Carmen) Offshore Equatorial Guinea [Member] | |||
Capitalized Exploratory Well Costs [Roll Forward] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 221 | ||
Carla Offshore Equatorial Guinea [Member] | |||
Capitalized Exploratory Well Costs [Roll Forward] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 154 | ||
Felicita Offshore Equatorial Guinea [Member] | |||
Capitalized Exploratory Well Costs [Roll Forward] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 39 | ||
Yolanda Offshore Equatorial Guinea [Member] | |||
Capitalized Exploratory Well Costs [Roll Forward] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 20 | ||
YoYo Offshore Cameron [Member] | |||
Capitalized Exploratory Well Costs [Roll Forward] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 48 | ||
Leviathan Offshore Israel [Member] | |||
Capitalized Exploratory Well Costs [Roll Forward] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 185 | [2] | |
Leviathan-1 Deep Offshore Israel [Member] | |||
Capitalized Exploratory Well Costs [Roll Forward] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 79 | [2] | |
Dalit Offshore Israel [Member] | |||
Capitalized Exploratory Well Costs [Roll Forward] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 28 | [2] | |
Dolphin 1 Offshore Israel [Member] | |||
Capitalized Exploratory Well Costs [Roll Forward] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 25 | [2] | |
Cyprus [Member] | |||
Capitalized Exploratory Well Costs [Roll Forward] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 203 | ||
Other - Projects of $20 million or less each [Member] | |||
Capitalized Exploratory Well Costs [Roll Forward] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | $26 | ||
[1] | (1) Relates to onshore US exploration activity. | ||
[2] | (1) We are currently working to resolve antitrust and other regulatory matters with the Israeli government to enable Leviathan and other development to move forward. See Note 2. Basis of Presentation – Update on Core Area – Israel. |
Asset_Retirement_Obligations_D
Asset Retirement Obligations (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||
Asset Retirement Obligations, Beginning Balance | $751 | $586 | ||
Liabilities Incurred | 10 | 1 | ||
Liabilities Settled | -8 | -14 | ||
Revision of Estimate | 24 | 72 | ||
Accretion Expense | -10 | [1] | -10 | [1] |
Asset Retirement Obligations, Ending Balance | 787 | 655 | ||
Onshore US [Member] | ||||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||
Liabilities Incurred | 4 | |||
Liabilities Settled | -24 | |||
Deepwater Gulf of Mexico [Member] | ||||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||
Liabilities Incurred | 6 | |||
Other (Onshore US) [Member] | ||||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||
Liabilities Settled | -17 | |||
North Sea [Member] | ||||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||
Liabilities Settled | -27 | |||
Revision of Estimate | $67 | |||
[1] | Accretion expense is included in DD&A expense in the consolidated statements of operations. |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Earnings Per Share [Abstract] | ||||
Net Income (Loss) | ($22) | $200 | ||
Weighted Average Number of Shares Outstanding, Basic (in shares) | 370,000,000 | [1] | 360,000,000 | [1] |
Incremental Shares from Assumed Conversion of Dilutive Stock Options, Restricted Stock, and Shares of Common Stock in Rabbi Trust (in shares) | 0 | [2] | 5,000,000 | [2] |
Weighted Average Number of Shares Outstanding, Diluted (in shares) | 370,000,000 | 365,000,000 | ||
Earnings (Loss) from Continuing Operations Per Share, Basic (in dollars per share) | ($0.06) | $0.56 | ||
Earnings (Loss) from Continuing Operations Per Share, Diluted (in dollars per share) | ($0.06) | $0.55 | ||
Number of antidilutive stock options, shares of restricted stock and shares of common stock in rabbi trust excluded from calculation above (in shares) | 9,000,000 | 6,000,000 | ||
Underwritten public offering (in shares) | 24,150,000 | |||
[1] | The weighted average number of shares outstanding includes the weighted average shares of common stock issued in connection with the underwritten public offering of 24,150,000 shares of common stock of the Company in first quarter 2015. | |||
[2] | (2)Â For the three months ended March 31, 2015, all outstanding options and non-vested restricted shares have been excluded from the calculation of diluted EPS as the Company incurred a loss for the quarter. Therefore, inclusion of outstanding options and non-vested restricted shares in the calculation of diluted EPS would be anti-dilutive. |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Tax Examination [Line Items] | ||
Current | $10 | $60 |
Deferred | -30 | 17 |
Total Income Tax (Benefit) Provision | ($20) | $77 |
Effective Tax Rate | 47.60% | 27.60% |
US | ||
Income Tax Examination [Line Items] | ||
Income Tax Examination, Year under Examination | 2011 | |
Equatorial Guinea | ||
Income Tax Examination [Line Items] | ||
Income Tax Examination, Year under Examination | 2009 | |
Israel | ||
Income Tax Examination [Line Items] | ||
Income Tax Examination, Year under Examination | 2010 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | |||
Revenues from Third Parties | $740 | $1,327 | |
Income from Equity Method Investees | 18 | 52 | |
Other | 1 | 0 | |
DD&A | 454 | 425 | |
Asset Impairments | 27 | 97 | |
Loss on Commodity Derivative Instruments | 150 | -75 | |
Total Revenues | 759 | 1,379 | |
Income (Loss) Before Income Taxes | -42 | 277 | |
Total Assets | 23,261 | 22,553 | |
United States [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from Third Parties | 478 | 842 | |
Income from Equity Method Investees | 11 | 0 | |
Other | 1 | ||
DD&A | 357 | 308 | |
Asset Impairments | 3 | 5 | |
Loss on Commodity Derivative Instruments | 105 | -76 | |
Total Revenues | 490 | 842 | |
Income (Loss) Before Income Taxes | -1 | 183 | |
Total Assets | 16,998 | 16,400 | |
West Africa [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from Third Parties | 138 | 323 | |
Income from Equity Method Investees | 7 | 52 | |
Other | 0 | ||
DD&A | 77 | 76 | |
Asset Impairments | 0 | 0 | |
Loss on Commodity Derivative Instruments | 45 | 1 | |
Total Revenues | 145 | 375 | |
Income (Loss) Before Income Taxes | 74 | 261 | |
Total Assets | 2,732 | 2,763 | |
Eastern Mediterranean [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from Third Parties | 120 | 112 | |
Income from Equity Method Investees | 0 | 0 | |
Other | 0 | ||
DD&A | 15 | 14 | |
Asset Impairments | 24 | 0 | |
Loss on Commodity Derivative Instruments | 0 | 0 | |
Total Revenues | 120 | 112 | |
Income (Loss) Before Income Taxes | 51 | 77 | |
Total Assets | 2,840 | 2,806 | |
Other Int'l & Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from Third Parties | 4 | 50 | |
Income from Equity Method Investees | 0 | 0 | |
Other | 0 | ||
DD&A | 5 | 27 | |
Asset Impairments | 0 | 92 | |
Loss on Commodity Derivative Instruments | 0 | 0 | |
Total Revenues | 4 | 50 | |
Income (Loss) Before Income Taxes | -166 | -244 | |
Total Assets | $691 | $584 |
Commitments_and_Contingencies_
Commitments and Contingencies Commitments and Contingencies (Details) (CONSOL Carried Cost Obligation [Member], USD $) | 3 Months Ended |
Mar. 31, 2015 | |
CONSOL Carried Cost Obligation [Member] | |
Other Commitments [Line Items] | |
Equity method investment, ownership percentage | 50.00% |
Maximum amount to be paid each calendar year for funding of future drilling and completion costs | $400,000,000 |
Funding of joint venture's future drilling and completion costs | 1,600,000,000 |
Natural gas price agreed upon benchmark, average | $4 |