Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 12 Months Ended | |
Dec. 31, 2015 | Jun. 30, 2015 | |
Document Information [Line Items] | ||
Entity Registrant Name | NOBLE ENERGY INC | |
Entity Central Index Key | 72,207 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Public Float | $ 16.5 | |
Entity Common Stock, Shares Outstanding | 428,843,495 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | FY | |
Document Type | 10-K | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2015 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues | |||
Oil, Gas and NGL Sales | $ 3,043 | $ 4,931 | $ 4,809 |
Income from Equity Method Investees | 90 | 170 | 206 |
Total Revenues | 3,133 | 5,101 | 5,015 |
Costs and Expenses | |||
Production Expense | 962 | 947 | 844 |
Exploration Expense | 488 | 498 | 415 |
Depreciation, Depletion and Amortization | 2,131 | 1,759 | 1,568 |
General and Administrative | 396 | 503 | 433 |
Asset Impairments | 533 | 500 | 86 |
Goodwill Impairment | 779 | 0 | 0 |
Other Operating (Income) Expense, Net | 316 | (24) | 13 |
Total Operating Expenses | 5,605 | 4,183 | 3,359 |
Operating Income (Loss) | (2,472) | 918 | 1,656 |
Other (Income) Expense | |||
(Gain) Loss on Commodity Derivative Instruments | (501) | (976) | 133 |
Interest, Net of Amount Capitalized | 263 | 210 | 158 |
Other Non-Operating (Income) Expense, Net | (15) | (26) | 21 |
Total Other (Income) Expense | (253) | (792) | 312 |
Income (Loss) from Continuing Operations Before Income Taxes | (2,219) | 1,710 | 1,344 |
Income Tax Provision | 222 | 496 | 437 |
Income (Loss) from Continuing Operations | (2,441) | 1,214 | 907 |
Discontinued Operations, Net of Tax | 0 | 0 | 71 |
Net Income (Loss) | $ (2,441) | $ 1,214 | $ 978 |
Earnings (Loss) Per Share, Basic | |||
Income (loss) from Continuing Operations (in dollars per share) | $ (6.07) | $ 3.36 | $ 2.53 |
Discontinued Operations, Net of Tax (in dollars per share) | 0 | 0 | 0.19 |
Net Income (in dollars per share) | (6.07) | 3.36 | 2.72 |
Earnings (Loss) Per Share, Diluted | |||
Income (loss) from Continuing Operations (in dollars per share) | (6.07) | 3.27 | 2.50 |
Discontinued Operations, Net of Tax (in dollars per share) | 0 | 0 | 0.19 |
Net Income (in dollars per share) | $ (6.07) | $ 3.27 | $ 2.69 |
Weighted Average Number of Shares Outstanding, Basic (in shares) | 402 | 361 | 359 |
Weighted Average Number of Shares Outstanding, Diluted (in shares) | 402 | 367 | 363 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income (Loss) | $ (2,441) | $ 1,214 | $ 978 |
Other Items of Comprehensive Income (Loss) | |||
Net Change in Mutual Fund Investment | (11) | 0 | 0 |
Less Tax Expense | 4 | 0 | 0 |
Net Change in Pension and Other | 99 | 42 | (6) |
Less Tax (Benefit) Expense | (35) | (15) | 2 |
Other Comprehensive Income (Loss) | 57 | 27 | (4) |
Comprehensive Income (Loss) | $ (2,384) | $ 1,241 | $ 974 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash and Cash Equivalents | $ 1,028 | $ 1,183 |
Accounts Receivable, Net | 450 | 857 |
Commodity Derivative Assets, Current | 582 | 710 |
Other Current Assets | 216 | 325 |
Total Current Assets | 2,276 | 3,075 |
Property, Plant and Equipment | ||
Oil and Gas Properties (Successful Efforts Method of Accounting) | 31,220 | 25,599 |
Property, Plant and Equipment, Other | 858 | 630 |
Total Property, Plant and Equipment, Gross | 32,078 | 26,229 |
Accumulated Depreciation, Depletion and Amortization | (10,778) | (8,086) |
Total Property, Plant and Equipment, Net | 21,300 | 18,143 |
Goodwill | 0 | 620 |
Other Noncurrent Assets | 620 | 680 |
Total Assets | 24,196 | 22,518 |
Current Liabilities | ||
Accounts Payable - Trade | 1,128 | 1,578 |
Other Current Liabilities | 677 | 944 |
Total Current Liabilities | 1,805 | 2,522 |
Long-Term Debt | 7,976 | 6,068 |
Deferred Income Taxes, Noncurrent | 2,826 | 2,516 |
Other Noncurrent Liabilities | 1,219 | 1,087 |
Total Liabilities | 13,826 | 12,193 |
Shareholders’ Equity | ||
Preferred Stock - Par Value $1.00 per share; 4 Million Shares Authorized, None Issued | 0 | 0 |
Common Stock - Par Value $0.01; 1 Billion and 500 Million Shares Authorized; 470 Million and 402 Million Shares Issued, Respectively | 5 | 4 |
Additional Paid in Capital | 6,360 | 3,624 |
Accumulated Other Comprehensive Loss | (33) | (90) |
Treasury Stock, at Cost; 38 Million Shares | (688) | (671) |
Retained Earnings | 4,726 | 7,458 |
Total Shareholders’ Equity | 10,370 | 10,325 |
Total Liabilities and Shareholders’ Equity | $ 24,196 | $ 22,518 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 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) | 1,000,000,000 | 500,000,000 |
Common Stock, Shares, Issued | 469,718,512 | 402,329,325 |
Treasury Stock, Shares | 37,925,625 | 37,635,890 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash Flows From Operating Activities [Abstract] | |||
Net Income (Loss) | $ (2,441) | $ 1,214 | $ 978 |
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities | |||
Depreciation, Depletion and Amortization | 2,131 | 1,759 | 1,570 |
Asset Impairments | 533 | 500 | 86 |
Goodwill Impairment | 779 | 0 | 0 |
Dry Hole Cost | 266 | 226 | 149 |
Deferred Income Taxes | 117 | 268 | 269 |
(Income) Loss from Equity Method Investees, Net of Dividends | (14) | 33 | (17) |
(Gain) Loss on Commodity Derivative Instruments | (501) | (976) | 133 |
Net Cash Received (Paid) in Settlement of Commodity Derivative Instruments | 1,009 | 29 | (2) |
(Gain) Loss on Divestitures | 0 | (73) | (93) |
Loss on Fair Value Adjustment to Inventory | 20 | 0 | 0 |
Stock Based Compensation | 86 | 87 | 80 |
Non-cash Pension Termination Expense | 82 | 0 | 0 |
Expiration and Amortization of Unproved Leaseholds | 113 | 43 | 30 |
Other Adjustments for Noncash Items Included in Income | 11 | (16) | 45 |
Changes in Operating Assets and Liabilities, Net of Assets Acquired and Liabilities Assumed | |||
(Increase) Decrease in Accounts Receivable | 453 | 29 | (239) |
Increase (Decrease) in Accounts Payable | (364) | 318 | (87) |
Increase (Decrease) in Current Income Taxes Payable | (94) | 18 | (47) |
Increase (Decrease) in Other Current Liabilities | (70) | 45 | 20 |
Other Operating Assets and Liabilities, Net | (54) | 2 | 62 |
Net Cash Provided by Operating Activities | 2,062 | 3,506 | 2,937 |
Cash Flows From Investing Activities | |||
Additions to Property, Plant and Equipment | (2,979) | (4,871) | (3,947) |
Proceeds from Divestitures | 151 | 321 | 327 |
Rosetta Merger | 61 | 0 | 0 |
Additions to Equity Method Investments | (104) | (71) | (48) |
Distributions from Equity Method Investments | 0 | 156 | 0 |
Other | 0 | 0 | (7) |
Net Cash Used in Investing Activities | (2,871) | (4,465) | (3,675) |
Cash Flows From Financing Activities | |||
Exercise of Stock Options | 8 | 48 | 51 |
Excess Tax Benefits from Stock-Based Awards | (1) | 19 | 20 |
Dividends Paid, Common Stock | (291) | (249) | (198) |
Purchase of Treasury Stock | (21) | (16) | (14) |
Proceeds from Issuance of Shares of Common Stock to Public, Net of Offering Costs | 1,112 | 0 | 0 |
Proceeds from Credit Facilities | 0 | 1,050 | 900 |
Repayment of Credit Facilities | (70) | (1,050) | (900) |
Proceeds from Issuance of Senior Long-Term Debt, Net | 0 | 1,478 | 985 |
Repayment of Senior Notes | (12) | (200) | 0 |
Repayment of Capital Lease Obligation | (67) | (55) | (48) |
Repayment of Installment Loan and Other | (4) | 0 | (328) |
Net Cash Provided By Financing Activities | 654 | 1,025 | 468 |
Increase (Decrease) in Cash and Cash Equivalents | (155) | 66 | (270) |
Cash and Cash Equivalents at Beginning of Period | 1,183 | 1,117 | 1,387 |
Cash and Cash Equivalents at End of Period | $ 1,028 | $ 1,183 | $ 1,117 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid in Capital | Accumulated Other Comprehensive Loss | Treasury Stock at Cost | Retained Earnings |
Shareholders Equity, Beginning Balance at Dec. 31, 2012 | $ 8,258 | $ 4 | $ 3,302 | $ (113) | $ (648) | $ 5,713 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income (Loss) | 978 | 0 | 0 | 0 | 0 | 978 |
Stock-based Compensation | 80 | 0 | 80 | 0 | 0 | 0 |
Exercise of Stock Options | 51 | 0 | 51 | 0 | 0 | 0 |
Tax Benefits Related to Exercise of Stock Options | 20 | 0 | 20 | 0 | 0 | 0 |
Dividends | (198) | 0 | 0 | 0 | 0 | (198) |
Changes in Treasury Stock, Net | (14) | 0 | 0 | 0 | (14) | 0 |
Rabbi Trust Shares Sold | 13 | 0 | 10 | 0 | 3 | 0 |
Net Change in Pension and Other | (4) | 0 | 0 | (4) | 0 | 0 |
Shareholders Equity, Ending Balance at Dec. 31, 2013 | 9,184 | 4 | 3,463 | (117) | (659) | 6,493 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income (Loss) | 1,214 | 0 | 0 | 0 | 0 | 1,214 |
Stock-based Compensation | 87 | 0 | 87 | 0 | 0 | 0 |
Exercise of Stock Options | 48 | 0 | 48 | 0 | 0 | 0 |
Tax Benefits Related to Exercise of Stock Options | 19 | 0 | 19 | 0 | 0 | 0 |
Dividends | (249) | 0 | 0 | 0 | 0 | (249) |
Changes in Treasury Stock, Net | (16) | 0 | 0 | 0 | (16) | 0 |
Rabbi Trust Shares Sold | 11 | 0 | 7 | 0 | 4 | 0 |
Net Change in Pension and Other | 27 | 0 | 0 | 27 | 0 | 0 |
Shareholders Equity, Ending Balance at Dec. 31, 2014 | 10,325 | 4 | 3,624 | (90) | (671) | 7,458 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income (Loss) | (2,441) | 0 | 0 | 0 | 0 | (2,441) |
Rosetta Merger | 1,529 | 1 | 1,528 | 0 | 0 | 0 |
Stock-based Compensation | 86 | 0 | 86 | 0 | 0 | 0 |
Exercise of Stock Options | 8 | 0 | 8 | 0 | 0 | 0 |
Tax Benefits Related to Exercise of Stock Options | (1) | 0 | (1) | 0 | 0 | 0 |
Dividends | (291) | 0 | 0 | 0 | 0 | (291) |
Changes in Treasury Stock, Net | (21) | 0 | 0 | 0 | (21) | 0 |
Rabbi Trust Shares Sold | 7 | 0 | 3 | 0 | 4 | 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 | 57 | 0 | 0 | 57 | 0 | 0 |
Shareholders Equity, Ending Balance at Dec. 31, 2015 | $ 10,370 | $ 5 | $ 6,360 | $ (33) | $ (688) | $ 4,726 |
Consolidated Statements of Sha8
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Stockholders' Equity [Abstract] | |||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.72 | $ 0.68 | $ 0.55 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1. Summary of Significant Accounting Policies General Noble Energy, Inc. (Noble Energy, we or us) is a leading independent energy company engaged in worldwide oil and natural gas exploration and production. Our core operating areas are onshore US (DJ Basin, Marcellus Shale, Eagle Ford Shale, and Permian Basin), deepwater Gulf of Mexico, offshore Eastern Mediterranean and offshore West Africa. Basis of Presentation and Consolidation Accounting policies used by us and our subsidiaries conform to US GAAP. Significant policies are discussed below. Our consolidated accounts include our accounts and the accounts of our wholly-owned subsidiaries. We use the equity method of accounting for investments in entities that we do not control but over which we exert significant influence. We carry equity method investments at our share of net assets of the equity investees plus our loans and advances. Differences in the basis of the investment and the separate net asset value of the investee, if any, are amortized into income over the remaining useful life of the underlying assets. See Note 7. Equity Method Investments . All significant intercompany balances and transactions have been eliminated upon consolidation. Use of 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. Estimated quantities of crude oil, natural gas and NGL reserves are the most significant of our estimates. All the reserves data included in this Form 10-K are estimates. Reservoir engineering is a subjective process of estimating underground accumulations of crude oil, natural gas and NGLs. There are numerous uncertainties inherent in estimating quantities of proved crude oil, natural gas and NGL reserves. The accuracy of any reserves estimate is a function of the quality of available data and of engineering and geological interpretation and judgment. As a result, reserves estimates may be different from the quantities of crude oil, natural gas and NGLs that are ultimately recovered. Qualified petroleum engineers in our Houston and Denver offices prepare all reserves estimates for our different geographical regions. These reserves estimates are reviewed and approved by senior engineering staff and division management with final approval by the Senior Vice President – Corporate Development and certain members of senior management. See Supplemental Oil and Gas Information (Unaudited). Other items subject to estimates and assumptions include the carrying amounts of inventory, property, plant and equipment, goodwill and asset retirement obligations, valuation allowances for receivables and deferred income tax assets, and valuation of derivative instruments, among others. Management evaluates estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic and commodity price environment. The volatility of commodity prices results in increased uncertainty inherent in such estimates and assumptions. Further declines in commodity prices could result in a reduction in our fair value estimates and cause us to perform analyses to determine if our oil and gas properties are impaired. As future commodity prices cannot be determined accurately, actual results could differ significantly from our estimates. See Supplemental Oil and Gas Information (Unaudited). Reclassification Certain reclassifications have been made to the 2014 and 2013 consolidated financial statements to conform to the 2015 presentation. These reclassifications were not material to the financial statements. Fair Value Measurements Fair value measurements are based on a hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three levels. The fair value hierarchy is as follows: • Level 1 measurements are fair value measurements which use quoted market prices (unadjusted) in active markets for identical assets or liabilities. • 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. • Level 3 measurements are fair value measurements which use unobservable inputs. The fair value hierarchy gives the highest priority to Level 1 measurements and the lowest priority to Level 3 measurements. We use Level 1 inputs when available as Level 1 inputs generally provide the most reliable evidence of fair value. See Note 13. Fair Value Measurements and Disclosures . Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include unrestricted cash on hand and investments with original maturities of three months or less at the time of purchase. Allowance for Doubtful Accounts We routinely assess the recoverability of all material trade and other receivables to determine their collectibility. We accrue a reserve on a receivable when, based on management’s judgment, it is probable that a receivable will not be collected and the amount of such reserve may be reasonably estimated. Inventories Inventories consist primarily of tubular goods and production equipment used in our oil and gas operations, and crude oil produced but not yet sold. Materials and supplies inventories are stated at the lower of average cost or market. The cost of crude oil inventory includes production costs and DD&A of oil and gas properties. See Note 2. Additional Financial Statement Information . Property, Plant and Equipment Significant accounting policies for our property, plant and equipment are as follows: Successful Efforts Method We account for crude oil and natural gas properties under the successful efforts method of accounting. Under this method, costs to acquire mineral interests in crude oil and natural gas properties, drill and equip exploratory wells that find proved reserves, and drill and equip development wells are capitalized. Capitalized costs of producing crude oil and natural gas properties, along with support equipment and facilities, are amortized to expense by the unit-of-production method based on proved crude oil, natural gas and NGL reserves on a field-by-field basis, as estimated by our qualified petroleum engineers. Our policy is to use quarter-end reserves and add back current period production to compute quarterly DD&A expense. Costs of certain gathering facilities or processing plants serving a number of properties or used for third-party processing are depreciated using the straight-line method over the useful lives of the assets ranging from three to thirty years. Upon sale or retirement of depreciable or depletable property, the cost and related accumulated DD&A are eliminated from the accounts and the resulting gain or loss is recognized. Repairs and maintenance are expensed as incurred. Proved Property Impairment We review individually significant proved oil and gas properties and other long-lived assets for impairment at least semi-annually, at year-end and mid-year, or quarterly when events and circumstances indicate a decline in the recoverability of the carrying values of such properties, such as a negative revision of reserves estimates or sustained decrease in commodity prices. We estimate future cash flows expected in connection with the properties and compare such future cash flows to the carrying amount of the properties to determine if the carrying amount is recoverable. When the carrying amount of a property exceeds its estimated undiscounted future cash flows, the carrying amount is reduced to estimated fair value. Fair value may be estimated using comparable market data, a discounted cash flow method, or a combination of the two. In the discounted cash flow method, estimated future cash flows are based on management’s expectations for the future and include estimates of future crude oil and natural gas production, commodity prices based on published forward commodity price curves or contract prices as of the date of the estimate, operating and development costs, and a risk-adjusted discount rate. We recorded proved property impairment charges in 2015 , 2014 , and 2013 . It is likely that other proved oil and gas properties could become impaired in the future due to commodity price declines and/or field performance. See Note 5. Asset Impairments . Unproved Property Impairment Our unproved properties consist of leasehold costs and allocated value to probable and possible reserves from acquisitions. We assess individually significant unproved properties for impairment on a quarterly basis and recognize a loss at the time of impairment by providing an impairment allowance. In determining whether a significant unproved property is impaired we consider numerous factors including, but not limited to, current exploration plans, favorable or unfavorable exploration activity on the property being evaluated and/or adjacent properties, our geologists' evaluation of the property, and the remaining months in the lease term for the property. When we have allocated fair value to an unproved property as the result of a transaction accounted for as a business combination, we use a future cash flow analysis to assess the unproved property for impairment. Cash flows used in the impairment analysis are determined based on management’s estimates of crude oil, natural gas and NGL reserves, future commodity prices and future costs to produce the reserves. Cash flow estimates related to probable and possible reserves are reduced by additional risk-weighting factors. Other individually insignificant unproved properties are amortized on a composite method based on our experience of successful drilling and average holding period. It is reasonably possible that unproved oil and gas properties could become impaired in the future if commodity prices decline. See Note 5. Asset Impairments . Properties Acquired in Business Combinations When sufficient market data is not available, we determine the fair values of proved and unproved properties acquired in transactions accounted for as business combinations by preparing our own estimates of cash flows from the production of crude oil, natural gas and NGL reserves. We estimate future prices to apply to the estimated reserves quantities acquired, and estimate future operating and development costs, to arrive at estimates of future net cash flows. For the fair value assigned to proved reserves, future net cash flows are discounted using a market-based weighted average cost of capital rate determined appropriate at the time of the business combination. To compensate for the inherent risk of estimating and valuing unproved reserves, discounted future net cash flows of probable and possible reserves are reduced by additional risk-weighting factors. Assets Held for Sale We occasionally market non-core oil and gas properties. At the end of each reporting period, we evaluate our properties being marketed to determine whether any should be reclassified as held for sale. The held for sale criteria include a commitment to a plan to sell; the asset is available for immediate sale; an active program to locate a buyer exists; the sale of the asset is probable and expected to be completed within one year; the asset is being actively marketed for sale; and it is unlikely that significant changes to the plan will be made. If each of these criteria is met, the property is reclassified as held for sale in our consolidated balance sheets. See Note 3. Merger, Acquisitions and Divestitures . Exploration Costs Geological and geophysical costs, delay rentals, amortization of unproved leasehold costs, and costs to drill exploratory wells that do not find proved reserves are expensed as oil and gas exploration. We carry the costs of an exploratory well as an asset if the well finds a sufficient quantity of reserves to justify its capitalization as a producing well and as long as we are making sufficient progress assessing the reserves and the economic and operating viability of the project. For certain capital-intensive deepwater Gulf of Mexico or international projects, it may take us more than one year to evaluate the future potential of the exploratory well and make a determination of its economic viability. Our ability to move forward on a project may be dependent on gaining access to transportation or processing facilities or obtaining permits and government or partner approval, the timing of which is beyond our control. In such cases, exploratory well costs remain suspended as long as we are actively pursuing access to necessary facilities and access to such permits and approvals and believe they will be obtained. We assess the status of suspended exploratory well costs on a quarterly basis. See Note 6. Capitalized Exploratory Well Costs . Other Property Other property includes automobiles, trucks, airplanes, office furniture, computer equipment and other fixed assets such as buildings and leasehold improvements. These items are recorded at cost and are depreciated on the straight-line method based on expected lives of the individual assets or group of assets, which range from 3 to 30 years . Capitalization of Interest We capitalize interest costs associated with the development and construction of significant properties or projects to bring them to a condition and location necessary for their intended use, which for crude oil and natural gas assets is at first production from the field. Interest is capitalized using an interest rate equivalent to the weighted average rate we pay on long-term debt, including our unsecured revolving credit facility (Credit Facility) and bonds. Capitalized interest is included in the cost of oil and gas assets and amortized with other costs on a unit-of-production basis. Capitalized interest totaled $144 million in 2015 , $116 million in 2014 , and $121 million in 2013 . Asset Retirement Obligations Asset retirement obligations consist of estimated costs of dismantlement, removal, site reclamation and similar activities associated with our oil and gas properties. We recognize the fair value of a liability for an ARO in the period in which it is incurred when we have an existing legal obligation associated with the retirement of our oil and gas properties that can reasonably be estimated, with the associated asset retirement cost capitalized as part of the carrying cost of the oil and gas asset. The asset retirement cost is recorded at estimated fair value, measured by reference to the expected future cash outflows required to satisfy the retirement obligation discounted at our credit-adjusted risk-free rate. After initial recording, the liability is increased for the passage of time, with the increase being reflected as accretion expense and included in our DD&A expense in the statement of operations. Subsequent adjustments in the cost estimate are reflected in the liability and the amounts continue to be amortized over the useful life of the related long-lived asset. See Note 9. Asset Retirement Obligations . Goodwill Goodwill represents the excess of the cost of an acquired entity over the net amounts assigned to assets acquired and liabilities assumed. Goodwill is subject to annual impairment testing in December (or more frequently as circumstances dictate). Noble has allocated goodwill to the US reporting unit. As of December 31, 2015, our goodwill was fully impaired. See Note 4. Goodwill . Derivative Instruments and Hedging Activities All derivative instruments (including certain derivative instruments embedded in other contracts) are recorded in our consolidated balance sheets as either an asset or liability and measured at fair value. We account for our commodity derivative instruments using mark-to-market accounting and recognize all gains and losses in earnings during the period in which they occur. Our consolidated statements of cash flows includes the non-cash portion of gain and loss on commodity derivative instruments, which represented the difference between the total gain and loss on commodity derivative instruments and the cash received or paid on settlements of commodity derivative instruments during the period. We offset the fair value amounts recognized for derivative instruments and the fair value amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral. The cash collateral (commonly referred to as a “margin”) must arise from derivative instruments recognized at fair value that are executed with the same counterparty under a master arrangement with netting clauses. Stock-Based Compensation Stock options and other stock-based compensation issued to employees and directors are recorded at grant-date fair value. Expense is recognized on a straight-line basis over the employee’s and director’s requisite service period (generally the vesting period of the award) in the consolidated statements of operations. See Note 12. Stock-Based and Other Compensation Plans . Pension and Other Postretirement Benefit Plans We recognize the funded status (the difference between the fair value of plan assets and the projected benefit obligation) of our defined benefit pension, restoration and other postretirement benefit plans in the consolidated balance sheets, with a corresponding adjustment to AOCL, net of tax. The amount remaining in AOCL at December 31, 2015 represents unrecognized net actuarial loss and unrecognized prior service cost related to our restoration plan. These amounts are currently being recognized as net periodic benefit cost pursuant to our historical accounting policy for amortizing such amounts. Any actuarial gains and losses that arise during the plan year, but which are not required to be recognized as net periodic benefit cost in the same period, are recognized as a component of AOCL. In third quarter 2015, we completed the process of terminating our noncontributory, tax-qualified defined benefit pension plan through the purchase of annuities for the remaining participants. As a result, we reclassified all remaining unamortized prior service cost and actuarial losses relating to the pension plan from AOCL to earnings. See Note 12. Stock-Based and Other Compensation Plans . Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized when items of income and expense are recognized in the financial statements in different periods than when recognized in the applicable tax return. Deferred tax assets arise when expenses are recognized in the financial statements before the tax return or when income items are recognized in the tax return prior to the financial statements. Deferred tax assets also arise when operating losses or tax credits are available to offset tax payments due in future years. Deferred tax liabilities arise when income items are recognized in the financial statements before the tax returns or when expenses are recognized in the tax return prior to the financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the date when the change in the tax rate was enacted. In addition, we provide a deferred tax liability for the US and foreign tax rate differences for the future additional US tax liability on accumulated undistributed foreign earnings of our foreign subsidiaries, net of estimated foreign tax credits. See Note 11. Income Taxes . Treasury Stock We record treasury stock purchases at cost, which includes incremental direct transaction costs. Amounts are recorded as reductions in shareholders’ equity in the consolidated balance sheets. Revenue Recognition and Imbalances We record revenues from the sales of crude oil, natural gas and NGLs when the product is delivered at a fixed or determinable price, title has transferred and collectibility is reasonably assured. When we have an interest with other producers in properties from which natural gas is produced, we use the entitlements method to account for any imbalances. Imbalances occur when we sell more or less product than we are entitled to under our ownership percentage. Revenue is recognized only on the entitlement percentage of volumes sold. Any amount that we sell in excess of our entitlement is treated as a liability and is not recognized as revenue. Any amount of entitlement in excess of the amount we sell is recognized as revenue and a receivable is accrued. Basic and Diluted Earnings (Loss) Per Share Basic earnings (loss) per share (EPS) of our common stock is computed on the basis of the weighted average number of shares outstanding during each period. The diluted EPS of our common stock includes the effect of outstanding common stock equivalents such as stock options, shares of restricted stock, and/or shares of our stock held in a rabbi trust, except in periods in which there is a net loss. On April 22, 2013, Noble Energy’s Board of Directors approved a 2 -for-1 split of its common stock to be effected in the form of a stock dividend. The stock dividend was distributed on May 28, 2013 to shareholders of record as of May 14, 2013. Earnings per share and common shares outstanding are reported giving retrospective effect to the common stock split. See Note 14. Earnings (Loss) Per Share . Contingencies We are subject to legal proceedings, claims and liabilities that arise in the ordinary course of business. We accrue for losses associated with legal claims when such losses are considered probable and the amounts can be reasonably estimated. See Note 18. Commitments and Contingencies . We self-insure the medical and dental coverage provided to certain employees, and the deductibles for workers’ compensation, automobile liability and general liability coverage. Liabilities are accrued for self-insured claims, or when estimated losses exceed coverage limits, and when sufficient information is available to reasonably estimate the amount of the loss. Foreign Currency The US dollar is considered the functional currency for each of our international operations. Transactions that are completed in foreign currencies are remeasured into US dollars and recorded in the financial statements at prevailing foreign exchange rates. Transaction gains or losses are included in other non-operating (income) expense, net in the consolidated statements of operations. Segment Information Accounting policies for geographical segments are the same as those described above. Transfers between segments are accounted for at market value. We do not consider interest income and expense or income tax benefit or expense in our evaluation of the performance of geographical segments. See Note 15. Segment Information . Changes in Shareholders’ Equity On April 28, 2015, our shareholders voted to approve an amendment to the Company’s Certificate of Incorporation to increase the number of authorized shares of our common stock from 500 million to 1 billion shares. Recently Issued Accounting Standards Income Taxes In November 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2015-17 (ASU 2015-17): Income Taxes (Topic 940) , effective for annual and interim reporting periods beginning after December 15, 2016, with early adoption permitted. ASU 2015-17 requires that all deferred tax liabilities and assets, as well as any related valuation allowance, be classified in the balance sheet as noncurrent. This guidance may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. We elected to early adopt ASU 2015-17 as of December 31, 2015 with prospective application. See Note 10. Income Taxes. Business Combinations In September 2015, the FASB issued Accounting Standards Update No. 2015-16 (ASU 2015-16): Business Combinations (Topic 805), effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period, to simplify the accounting for measurement-period adjustments for an acquirer in a business combination. ASU 2015-16 requires an acquirer to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The acquirer is required to adjust its financial statements for the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts calculated as if the accounting had been completed at the acquisition date. We are currently evaluating the provisions of ASU 2015-16 and assessing the impact, if any, it may have on our financial position and results of operations. Inventory In July 2015, the FASB issued Accounting Standards Update No. 2015-11 (ASU 2015-11): Simplifying the Measurement of Inventory , effective for annual and interim periods beginning after December 15, 2016. ASU 2015-11 changes the inventory measurement principle for entities using the first-in, first out (FIFO) or average cost methods. For entities utilizing one of these methods, the inventory measurement principle will change from lower of cost or market to the lower of cost and net realizable value. We follow the average cost method and are currently evaluating the provisions of ASU 2015-11 and assessing the impact, if any, it may have on our financial position and results of operations. Debt Issuance Costs In April 2015, the 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 all prior periods presented in the financial statements beginning in first quarter 2016 and is only expected to impact the presentation of our consolidated balance sheet. In August 2015, the FASB issued ASU 2015-15 to specifically address the presentation and subsequent measurement of debt issuance costs related to line-of-credit arrangements. ASU 2015-15 allows entities to defer and present debt issuance costs related to line-of-credit arrangements as an asset and amortize the costs ratably over the term of the line-of-credit arrangement. We elected to early adopt ASU 2015-03 as of December 31, 2015 and have applied the new guidance to debt issuance costs related to our senior notes. Debt issuance costs related to our Credit Facility will continue to be presented as an asset and amortized over the term of the Credit Facility. As of December 31, 2015 and 2014, we had $12 million and $15 million of capitalized, unamortized debt issuance costs, respectively, related to our Credit Facility included in other noncurrent assets in our consolidated balance sheet. See Note 10. Long-Term Debt . Consolidation 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. Revenue Recognition 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. Initially, the amendments in ASU 2014-09 were effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, and early application was not permitted. In August 2015, the FASB agreed to give companies an extra year to comply with the new standard through the issuance of ASU 2015-14. The standard will be effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. We are currently evaluating the provisions of ASU 2014-09 and implementation guidance to determine the impact, if any, it may have on our financial position and results of operations. |
Additional Financial Statement
Additional Financial Statement Information | 12 Months Ended |
Dec. 31, 2015 | |
Additional Financial Statement Information [Abstract] | |
Additional Financial Statement Information | Note 2. Additional Financial Statement Information Additional statements of operations information is as follows: Year Ended December 31, (millions) 2015 2014 2013 Production Expense Lease Operating Expense $ 563 $ 593 $ 524 Production and Ad Valorem Taxes 127 184 188 Transportation Expense 272 170 132 Total $ 962 $ 947 $ 844 Other Operating Expense, Net Midstream Gathering and Processing (Income) Expense, Net $ 9 $ 11 $ 6 Corporate Restructuring Expense (1) 51 — — Stacked Drilling Rig Expense (2) 30 — — Pension Plan Expense (3) 88 — — Rosetta Merger Expense (4) 81 — — (Gain) Loss on Divestitures — (73 ) (36 ) Inventory Adjustment (5) 20 — — Other, Net 37 38 43 Total $ 316 $ (24 ) $ 13 Other Non-Operating (Income) Expense, Net Deferred Compensation (Income) Expense (6) $ (12 ) $ (25 ) $ 26 Other (Income) Expense, Net (3 ) (1 ) (5 ) Total $ (15 ) $ (26 ) $ 21 (1) Amount represents expenses associated with the relocation of our Ardmore, Oklahoma office to our corporate headquarters in Houston and other organizational activities. (2) Amount represents the day rate cost associated with drilling rigs under contract, but not currently being utilized in our US onshore drilling programs. (3) Amount includes reclassification of the actuarial loss from AOCL related to the re-measurement and termination of our defined benefit pension plan to net income (loss). (4) Amount represents expenses associated with the completion of the Rosetta Merger. See Note 3. Merger, Acquisitions and Divestitures . (5) Amount represents lower of cost or market adjustment to materials and supplies inventory. See Note 13. Fair Value Measurements . (6) Amounts represent increases (decreases) in the fair values of shares of our common stock held in a rabbi trust and mutual funds. Additional balance sheet information is as follows: December 31, (millions) 2015 2014 Accounts Receivable, Net Commodity Sales $ 298 $ 405 Joint Interest Billings 20 297 Other 151 171 Allowance for Doubtful Accounts (19 ) (16 ) Total $ 450 $ 857 Other Current Assets Inventories, Materials and Supplies $ 92 $ 81 Inventories, Crude Oil 23 24 Assets Held for Sale (1) 67 180 Prepaid Expenses and Other Assets, Current 34 40 Total $ 216 $ 325 Other Noncurrent Assets Equity Method Investments $ 453 $ 325 Mutual Fund Investments 90 111 Commodity Derivative Assets, Noncurrent 10 180 Other Assets, Noncurrent 67 64 Total $ 620 $ 680 Other Current Liabilities Production and Ad Valorem Taxes $ 166 $ 110 Income Taxes Payable 86 180 Deferred Income Taxes, Current — 158 Asset Retirement Obligations, Current 128 81 Accrued Benefit Costs, Current 3 125 Interest Payable 83 70 Current Portion of Capital Lease and Other Obligations 53 68 Other Liabilities, Current 158 152 Total $ 677 $ 944 Other Noncurrent Liabilities Deferred Compensation Liabilities, Noncurrent $ 217 $ 218 Asset Retirement Obligations, Noncurrent 861 670 Accrued Benefit Costs, Noncurrent 25 24 Other Liabilities, Noncurrent 116 175 Total $ 1,219 $ 1,087 (1) Assets held for sale at December 31, 2015 include the Karish and Tanin natural gas discoveries, offshore Israel. Supplemental statements of cash flow information is as follows: Year Ended December 31, (millions) 2015 2014 2013 Cash Paid During the Year For Interest, Net of Amount Capitalized $ 260 $ 189 $ 137 Income Taxes Paid, Net 202 150 165 Non-Cash Financing and Investing Activities Increase in Capital Lease and Other Obligations 55 110 96 |
Merger, Acquisitions and Divest
Merger, Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Merger, Acquisitions and Divestitures | Note 3. Merger, Acquisitions and Divestitures Rosetta Merger On July 20, 2015, Noble Energy completed the merger of Rosetta into a subsidiary of Noble Energy (Rosetta Merger). The results of Rosetta's operations since the merger date are included in our consolidated statement of operations. The merger was effected through the issuance of approximately 41 million shares of Noble Energy common stock in exchange for all outstanding shares of Rosetta using a ratio of 0.542 of a share of Noble Energy common stock for each share of Rosetta common stock and the assumption of Rosetta's liabilities, including approximately $2 billion fair value of outstanding debt. The merger adds two new onshore US shale positions to our portfolio including approximately 50,000 net acres in the Eagle Ford Shale and 54,000 net acres in the Permian Basin ( 45,000 acres in the Delaware Basin and 9,000 acres in the Midland Basin). In connection with the Rosetta Merger, we incurred merger-related costs of approximately $81 million to date, including (i) $66 million of severance, consulting, investment, advisory, legal and other merger-related fees, and (ii) $15 million of noncash share-based compensation expense, all of which were expensed and are included in Other Operating (Income) Expense, Net. Allocation of Purchase Price The merger has been accounted for as a business combination, using the acquisition method. The following table represents the preliminary allocation of the total purchase price of Rosetta to the assets acquired and the liabilities assumed based on the fair value at the merger date, with any excess of the purchase price over the estimated fair value of the identifiable net assets acquired recorded as goodwill. Certain data necessary to complete the purchase price allocation is not yet available, and includes, but is not limited to, valuation of pre-merger contingencies, final tax returns that provide the underlying tax basis of Rosetta's assets and liabilities, and final appraisals of assets acquired and liabilities assumed. We expect to complete the purchase price allocation during the 12-month period following the merger date, in line with the acquisition method of accounting, during which time the value of the assets and liabilities may be revised as appropriate. The following table sets forth our preliminary purchase price allocation which was based on fair values of assets acquired and liabilities assumed at the merger date, July 20, 2015, with the excess of the purchase price over the estimated fair value of the identifiable net assets acquired recorded as goodwill: (in millions, except stock price) Shares of Noble Energy common stock issued to Rosetta shareholders 41 Noble Energy common stock price on July 20, 2015 $ 36.97 Fair value of common stock issued $ 1,518 Plus: fair value of Rosetta's restricted stock awards and performance awards assumed 10 Plus: Rosetta stock options assumed 1 Total purchase price 1,529 Plus: liabilities assumed by Noble Energy Accounts Payable 100 Current Liabilities 37 Long-Term Deferred Tax Liability 8 Long-Term Debt 1,992 Other Long Term Liabilities 23 Asset Retirement Obligation 27 Total purchase price plus liabilities assumed $ 3,716 Fair Value of Rosetta Assets Cash and Equivalents $ 61 Other Current Assets 76 Derivative Instruments 209 Oil and Gas Properties: Proved Properties 1,613 Undeveloped Leaseholds 1,355 Gathering and Processing Assets 207 Asset Retirement Obligation 27 Other Property Plant and Equipment 5 Implied Goodwill (1) 163 Total Asset Value $ 3,716 (1) Goodwill was fully impaired at December 31, 2015. See Note 4. Goodwill . The fair value measurements of derivative instruments assumed were determined based on published forward commodity price curves as of the date of the merger and represent Level 2 inputs. 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. The fair value measurements of long-term debt were estimated based on published market prices and represent Level 1 inputs. The long-term debt balance includes amounts outstanding under Rosetta's credit facility which was assumed by Noble and repaid subsequent to the merger in third quarter 2015. The fair value measurements of oil and natural gas properties and asset retirement obligations are based on inputs that are not observable in the market and therefore represent Level 3 inputs. The fair values of oil and natural gas properties and asset retirement obligations were measured using valuation techniques that convert future cash flows to a single discounted amount. Significant inputs to the valuation of oil and natural gas properties included estimates of: (i) recoverable reserves; (ii) production rates; (iii) future operating and development costs; (iv) future commodity prices; and (v) a market-based weighted average cost of capital rate. These inputs required significant judgments and estimates by management at the time of the valuation and are the most sensitive and may be subject to change. The results of operations attributable to Rosetta are included in our consolidated statement of operations beginning on July 21, 2015. Revenues of $181 million and pre-tax net loss of $120 million , inclusive of $163 million goodwill impairment, from Rosetta were generated from July 21, 2015 to December 31, 2015. Proforma Financial Information The following pro forma condensed combined financial information was derived from the historical financial statements of Noble Energy and Rosetta and gives effect to the merger as if it had occurred on January 1, 2014. The below information reflects pro forma adjustments based on available information and certain assumptions that we believe are reasonable, including (i) Noble Energy's common stock and equity awards issued to convert Rosetta's outstanding shares of common stock and equity awards as of the closing date of the merger, (ii) adjustments to conform Rosetta's historical policy of accounting for its oil and natural gas properties from the full cost method to the successful efforts method of accounting, (iii) depletion of Rosetta's fair-valued proved oil and gas properties, and (iv) the estimated tax impacts of the pro forma adjustments. Additionally, pro forma earnings for the year ended December 31, 2015 were adjusted to exclude $81 million of merger-related costs incurred by Noble Energy and $37 million incurred by Rosetta. The pro forma results of operations do not include any cost savings or other synergies that may result from the Rosetta Merger or any estimated costs that have been or will be incurred by us to integrate the Rosetta assets. The pro forma condensed combined financial information has been included for comparative purposes and is not necessarily indicative of the results that might have actually occurred had the Rosetta Merger taken place on January 1, 2014; furthermore, the financial information is not intended to be a projection of future results. Year Ended December 31, (in millions, except per share amounts) 2015 2014 Revenues $ 3,428 $ 6,112 Net Income (Loss) $ (2,393 ) $ 1,607 Earnings (Loss) Per Share Basic $ (5.64 ) $ 4.01 Diluted $ (5.64 ) $ 3.94 Sale of Non-Core Onshore US Properties During the past three years, we closed the sales of non-core onshore US crude oil and natural gas properties. The information regarding the assets sold is as follows: Year Ended December 31, (millions) 2015 2014 2013 Cash Proceeds $ 151 $ 135 $ 150 Less Net Book Value of Assets Sold (156 ) (150 ) (117 ) Goodwill Allocated to Assets Sold (1) (4 ) (7 ) (8 ) Asset Retirement Obligations Associated with Assets Sold 8 48 8 Other Closing Adjustments 1 10 3 Gain on Divestitures $ — $ 36 $ 36 (1) See Note 4. Goodwill . China In June 2014, we sold our China assets. We determined the sale of our China assets did not meet the criteria for discontinued operations presentation under ASU 2014-08. The information regarding the China assets sold is as follows: Year Ended December 31, 2014 (millions) 2014 Sales Proceeds $ 186 Less Net Book Value of Assets Sold (149 ) Other Closing Adjustments (2 ) Gain on Divestiture $ 35 Assets Held for Sale In November 2015, we executed an agreement to divest our 47% interest in the Alon A and Alon C offshore Israel licenses, which include the Karish and Tanin fields, for a total transaction value of $73 million ( $67 million for asset consideration and $6 million from adjustment of costs). These assets were held for sale as of December 31, 2015, and the transaction closed in January 2016. DJ Basin Acreage Exchange In October 2013, we closed an acreage exchange agreement with another operator related to our position in the DJ Basin. Each party exchanged approximately 50,000 net acres within the same field. The exchange consolidated our acreage into large contiguous blocks, which has provided the opportunity to optimize drilling, production, and gathering activities and add more extended-reach lateral wells to our development program. In accordance with guidance for oil and gas property conveyances, the transaction was accounted for at net book value, with no gain or loss recognized. We received $105 million in cash related to reimbursement of capital expenditures and other normal closing adjustments from the effective date of January 1, 2013 to closing date, which was recorded as a reduction in the net book value of the field. North Sea Properties During 2013, we sold additional non-operated, North Sea properties. The 2013 sales resulted in a $65 million gain based on net sales proceeds of $56 million . During 2013, the North Sea geographical segment was presented as discontinued operations in our consolidated statements of operations. However, we were unable to locate purchasers for the remaining properties, and as of January 1, 2014, we no longer considered a sale probable. Therefore, the remaining assets were reclassified to assets held and used. See Note 5. Asset Impairments . Summarized results of discontinued operations are as follows: Year Ended December 31, (millions) 2013 Oil and Gas Sales $ 37 Income Before Income Taxes 12 Income Tax Expense 6 Operating Income, Net of Tax 6 Gain on Sale, Net of Tax 65 Discontinued Operations, Net of Tax $ 71 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Note 4. Goodwill Our goodwill relates primarily to the excess purchase price over amounts assigned to assets and liabilities from the Rosetta Merger in 2015 and the Patina Merger in 2005 and is associated with our US reporting unit. During 2015, goodwill increased $163 million due to the Rosetta Merger and decreased $4 million due to allocations of goodwill to onshore US properties sold. During 2015, we reviewed our goodwill balance for impairment in accordance with our accounting policy and identified factors, including continuing declines in commodity prices and the market value of our common stock, indicating that the fair value of our goodwill could have fallen below its book value. As of December 31 2015, we determined that our goodwill was fully impaired and recognized a loss of $779 million . For purposes of determining the goodwill impairment, we estimated the implied fair value of the goodwill using a variety of valuation methods, including the income and market approaches. Our estimate of fair value required us to use significant unobservable inputs, representative of a Level 3 fair value measurement, including assumptions for future crude oil and natural gas production, commodity prices based on forward commodity price curves, operating and development costs and other factors. The analysis supported that the implied fair value of goodwill is zero and, as such, goodwill was fully impaired. |
Asset Impairments
Asset Impairments | 12 Months Ended |
Dec. 31, 2015 | |
Asset Impairment Charges [Abstract] | |
Asset Impairments | Note 5. Asset Impairments Pre-tax (non-cash) asset impairment charges were as follows: Year Ended December 31, (millions) 2015 2014 2013 Onshore US $ — $ 42 $ 39 Deepwater Gulf of Mexico 158 350 — Equatorial Guinea 339 — — Eastern Mediterranean 36 14 47 North Sea — 94 — Total $ 533 $ 500 $ 86 2015 Asset Impairments During 2015, certain deepwater Gulf of Mexico, Eastern Mediterranean and Equatorial Guinea properties were written down to their estimated fair values using a discounted cash flow model. The cash flow model included management’s estimates of future crude oil and natural gas production, commodity prices based on forward commodity price curves or contract prices as of the date of the estimate, operating and development costs, and discount rates. Impairment charges of $481 million resulted from reductions in the forward crude oil prices as of December 31, 2015. In addition, we recorded approximately $47 million of impairment primarily related to revisions in expected field abandonment and other costs for deepwater Gulf of Mexico and Eastern Mediterranean properties. During fourth quarter 2015, we executed an agreement to divest our interest in the Alon A and Alon C offshore Israel licenses, which include the Karish and Tanin fields. As a result, these assets were written down to expected proceeds less costs to sell, resulting in a $5 million impairment. 2014 Asset Impairments As a result of declining crude oil prices at the end of 2014, we recorded impairment charges of $250 million related to certain onshore US and deepwater Gulf of Mexico properties. During 2014, South Raton in the deepwater Gulf of Mexico was shut-in due to mechanical issues; therefore, we recorded additional impairment charges of $74 million for South Raton in fourth quarter 2014. Additionally, the asset carrying values of certain crude oil and natural gas properties in the deepwater Gulf of Mexico and offshore Israel increased when we recorded associated increases in asset retirement obligations. We determined that the recorded carrying values of some of these assets were not recoverable from future cash flows and recorded impairment expense of $51 million . During third quarter 2014, we reclassified certain non-core properties as assets held for sale. The assets were written down to expected proceeds less costs to sell, resulting in a $31 million impairment. In March 2014, the operator of the MacCulloch North Sea field notified the working interest owners that expected field abandonment costs would be higher than originally projected, and that field abandonment would occur sooner than anticipated. As a result of this new information, we adjusted the asset retirement obligation to reflect the updated estimate of abandonment costs and timing. We assessed the asset for impairment and determined that it was impaired. 2013 Asset Impairments We recorded impairments of the Mari-B field, due to natural field decline, and certain non-core, onshore US properties upon reclassification to assets held for sale. The Mari-B field was written down to its estimated fair value using a discounted cash flow model, as described above. The fair values of onshore US assets held for sale were based on anticipated sales proceeds less costs to sell. See Note 13. Fair Value Measurements and Disclosures . |
Capitalized Exploratory Well Co
Capitalized Exploratory Well Costs | 12 Months Ended |
Dec. 31, 2015 | |
Capitalized Exploratory Well Costs [Abstract] | |
Capitalized Exploratory Well Costs | Note 6. 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 immediately 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: Year Ended December 31, (millions) 2015 2014 2013 Capitalized Exploratory Well Costs, Beginning of Period $ 1,337 $ 1,301 $ 900 Additions to Capitalized Exploratory Well Costs Pending Determination of Proved Reserves 123 316 581 Reclassified to Proved Oil and Gas Properties Based on Determination of Proved Reserves or to Assets Held for Sale (1) (19 ) (196 ) (177 ) Capitalized Exploratory Well Costs Charged to Expense (2) (88 ) (84 ) (3 ) Capitalized Exploratory Well Costs, End of Period $ 1,353 $ 1,337 $ 1,301 (1) The 2015 amount relates primarily to onshore US exploration activity. The 2014 amount relates primarily to the Dantzler well (deepwater Gulf of Mexico), for which we sanctioned a development plan, and the Karish and Tanin wells (offshore Israel), which were reclassified to assets held for sale. The 2013 amount relates primarily to Gunflint (deepwater Gulf of Mexico), for which we sanctioned a development plan. (2) The 2015 amount relates primarily to northeast Nevada. After assessing its commercial viability in the current commodity price environment, we elected to discontinue our exploration efforts. The 2014 amount relates to non-core onshore US exploratory well costs and the Scotia exploratory well (offshore Falkland Islands) which were determined to be non-commercial. 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: December 31, (millions) 2015 2014 2013 Exploratory Well Costs Capitalized for a Period of One Year or Less $ 95 $ 247 $ 568 Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling 1,258 1,090 733 Balance at End of Period $ 1,353 $ 1,337 $ 1,301 Number of Projects with Exploratory Well Costs That Have Been Capitalized for a Period Greater Than One Year Since Commencement of Drilling 14 13 13 The following table provides a further aging of those exploratory well costs that have been capitalized for a period greater than one year since the commencement of drilling as of December 31, 2015 : Suspended Since Country/Project (millions) Total 2013 - 2014 2011 - 2012 2010 & Prior Progress Deepwater Gulf of Mexico Troubadour 49 48 1 — Evaluating development scenarios for this 2013 natural gas discovery including subsea tieback to existing infrastructure. Katmai 91 91 — — Anticipate drilling an appraisal well in 2016 to test the resource potential of this 2014 crude oil discovery. Offshore Equatorial Guinea Diega (Block O) and Carmen (Block I) 233 135 45 53 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 (Block O) 177 133 44 — 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. Yolanda/Felicita 66 18 4 44 Evaluating regional development plans for these 2007/2008 condensate and natural gas discoveries. Natural gas development teams are working with the governments of Equatorial Guinea and Cameroon to evaluate natural gas monetization options and finalize data exchange agreements between the two countries. Offshore Cameroon YoYo 51 6 11 34 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 Leviathan 191 44 106 41 During 2015, the Government of Israel approved the Natural Gas Framework. We are engaged in natural gas marketing activities both for export and, since the enactment of the Natural Gas Framework, for domestic Israeli customers. We continue to refine our development concepts and are preparing to submit a Plan of Development to the Government of Israel. We also continue to pursue financing arrangements to support development. Leviathan-1 Deep 80 7 73 — 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 5 3 20 Submitted a development plan to the government to develop this 2009 natural gas discovery as a tie-in to existing infrastructure. Dolphin 1 26 3 23 — Reviewing regional development scenarios for this 2011 natural gas discovery, including a potential tieback to Leviathan. We have applied to the government for a commerciality ruling. Offshore Cyprus Cyprus 214 140 74 — During 2015, we submitted a Declaration of Commerciality and a Development Plan to the Government of Cyprus. We continue to work with the Government of Cyprus to obtain approval of the development plan and the subsequent issuance of an Exploitation License. Receiving an Exploitation License will allow us and our partners to perform the necessary engineering and design studies and progress the project to final investment decision. Other Projects less than $20 million 52 41 — 11 Continuing to drill and evaluate wells Total $ 1,258 $ 671 $ 384 $ 203 |
Equity Method Investments
Equity Method Investments | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Note 7. Equity Method Investments Equity Method Investments Equity method investments are included in other noncurrent assets in the consolidated balance sheets, and our share of earnings is reported as income from equity method investees in the consolidated statements of operations. Our share of income taxes incurred directly by the equity method investees is reported in income from equity method investees and is not included in our income tax provision in our consolidated statements of operations. Investments accounted for under the equity method consist primarily of the following: • 45% interest in Atlantic Methanol Production Company, LLC (AMPCO), which owns and operates a methanol plant and related facilities in Equatorial Guinea; • 28% interest in Alba Plant LLC (Alba Plant), which owns and operates a liquefied petroleum gas processing plant in Equatorial Guinea; • 50% interest in CONE Gathering LLC (CONE Gathering), which owns and operates natural gas gathering facilities servicing our joint venture properties in the Marcellus Shale; and • 32% interest in CONE Midstream Partners, LP (CONE Midstream), which constructs, owns and operates natural gas gathering and other midstream energy assets in support of our Marcellus Shale joint venture activities. Midstream IPO On September 24, 2014, our equity method investee, CONE Gathering, contributed a significant majority of its existing assets to a newly-formed master limited partnership, CONE Midstream, concurrently with an initial public offering of limited partner units. CONE Gathering subsequently distributed $204 million of offering proceeds to us, which is reflected within cash flows from operating activities ( $48 million ) and cash flows from investing activities ( $156 million ) within our consolidated statement of cash flows. Equity method investments are as follows: December 31, (millions) 2015 2014 Equity Method Investments AMPCO $ 120 $ 141 Alba Plant 87 82 CONE Investments (1) 214 82 Other 32 20 Total Equity Method Investments $ 453 $ 325 (1) CONE Investments includes our investments in CONE Midstream and CONE Gathering. Other At December 31, 2015 , consolidated retained earnings included $106 million related to the undistributed earnings of equity method investees. The carrying value of our AMPCO investment was $8 million higher than the underlying net assets of the investee at December 31, 2015 . The difference is related to capitalized interest which is being amortized into earnings over the remaining useful life of the plant. Summarized, 100% combined financial information for equity method investees is as follows: December 31, (millions) 2015 2014 Balance Sheet Information Current Assets $ 343 $ 412 Noncurrent Assets 1,418 1,169 Current Liabilities 229 374 Noncurrent Liabilities 108 33 Year Ended December 31, (millions) 2015 2014 2013 Statements of Operations Information Operating Revenues $ 645 $ 1,142 $ 1,256 Operating Expenses 393 405 388 Operating Income 252 737 868 Other (Income) Net (9 ) (9 ) (14 ) Income Before Income Taxes 261 746 882 Income Tax Provision 46 172 212 Net Income $ 215 $ 574 $ 670 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Note 8. Derivative Instruments and Hedging Activities Objective and Strategies for Using Derivative Instruments In order to mitigate the effect of commodity price volatility and enhance the predictability of cash flows relating to the marketing of our crude oil and natural gas, we enter into crude oil and natural gas price hedging arrangements. The derivative instruments we use may include variable to fixed price commodity swaps, enhanced swaps, two-way and three-way collars, basis swaps and/or put options. The fixed price swap and two-way collar contracts entitle us (floating price payor) to receive settlement from the counterparty (fixed price payor) for each calculation period in amounts, if any, by which the settlement price for the scheduled trading days applicable for each calculation period is less than the fixed strike price or floor price. We would pay the counterparty if the settlement price for the scheduled trading days applicable for each calculation period is more than the fixed strike price or ceiling price. The amount payable by us, if the floating price is above the fixed or ceiling price, is the product of the notional quantity per calculation period and the excess of the floating price over the fixed or ceiling price in respect of each calculation period. The amount payable by the counterparty, if the floating price is below the fixed or floor price, is the product of the notional quantity per calculation period and the excess of the fixed or floor price over the floating price in respect of each calculation period. A three-way collar consists of a two-way collar contract combined with a put option contract sold by us with a strike price below the floor price of the two-way collar. We receive price protection at the purchased put option floor price of the two-way collar if commodity prices are above the sold put option strike price. If commodity prices fall below the sold put option strike price, we receive the cash market price plus the delta between the two put option strike prices. This type of instrument allows us to capture more value in a rising commodity price environment, but limits our benefits in a downward commodity price environment. For put options, we typically pay a premium to the counterparty in exchange for the sale of the instrument. If the index price is below the floor price of the put option, we receive the difference between the floor price and the index price multiplied by the contract volumes less the option premium at the time of settlement. If the index price settles at or above the floor price of the put option, we pay only the put option premium at the time of settlement. We had no outstanding put options as of December 31, 2015 . We also may enter into forward contracts to hedge anticipated exposure to interest rate risk associated with public debt financing. As of December 31, 2015 we did not have any interest rate derivatives outstanding. While these instruments mitigate the cash flow risk of future reductions in commodity prices or increases in interest rates, they may also curtail benefits from future increases in commodity prices or decreases in interest rates. See Note 13. Fair Value Measurements and Disclosures for a discussion of methods and assumptions used to estimate the fair values of our derivative instruments. Counterparty Credit Risk Derivative instruments expose us to counterparty credit risk. Our commodity derivative instruments are currently with a diversified group of major banks or market participants, and we monitor and manage our level of financial exposure. Our commodity derivative contracts are executed under master agreements which allow us, in the event of default, to elect early termination of all contracts with the defaulting counterparty. If we choose to elect early termination, all asset and liability positions with the defaulting counterparty would be net settled at the time of election. We monitor the creditworthiness of our commodity derivatives counterparties. However, we are not able to predict sudden changes in counterparties’ creditworthiness. In addition, even if such changes are not sudden, we may be limited in our ability to mitigate an increase in counterparty credit risk. Possible actions would be to transfer our position to another counterparty or request a voluntary termination of the derivative contracts resulting in a cash settlement. Should one of these financial counterparties not perform, we may not realize the benefit of some of our derivative instruments under lower commodity prices or higher interest rates, and could incur a loss. Unsettled Derivative Instruments As of December 31, 2015 , we had entered into the following crude oil derivative instruments: Swaps Collars Settlement Period Type of Contract Index Bbls Per Day Weighted Average Fixed Price Weighted Average Short Put Price Weighted Average Floor Price Weighted Average Ceiling Price 1H16 (1) Swaps NYMEX WTI 17,000 $ 68.50 $ — $ — $ — 2H16 (1) Swaps NYMEX WTI 12,000 74.47 — — — 2H16 (1) Call Option (2) NYMEX WTI 5,000 — — — 54.16 2016 Swaps Dated Brent 9,000 97.96 — — — 2016 Swaps (3) (4) 6,000 90.28 — — — — 2016 Two -Way Collars NYMEX WTI 1,000 — — 60.00 70.00 2016 Three-Way Collars NYMEX WTI 6,000 — 61.00 72.50 86.37 2016 Three-Way Collars Dated Brent 8,000 — 72.50 86.25 101.79 1H17 (1) Swaps NYMEX WTI 3,000 60.12 — — — 1H17 (1) Swaps (5) Dated Brent 3,000 62.80 — — — 2H17 (1) Call Option (2) NYMEX WTI 3,000 — — — 60.12 2017 Call Option (2) NYMEX WTI 3,000 — — — 57.00 2017 Two-Way Collars NYMEX WTI 5,000 — — 40.00 54.00 (1) We traditionally enter into a hedge contract term of one year. For 2016 and 2017 we have entered into various derivative hedging arrangements with a contract term of six months resulting in non-uniform annual volumes and weighted average prices. (2) We have entered into crude oil derivative enhanced swaps with strike prices that are above the market value as of trade commencement. To effect the enhanced non-cash swap structure, we sold call options to the applicable counterparty to receive the above market terms. (3) Includes derivative instruments assumed by our subsidiary, NBL Texas, LLC, in connection with the Rosetta Merger. (4) The index for these derivative instruments is NYMEX WTI and Argus LLS indices. (5) We have entered into certain Dated Brent derivative contracts (swaptions), which give counterparties the option to extend for an additional 6-month period. Options covering a notional volume of 3,000 Bbls/d are exercisable on June 30, 2017. If the counterparties exercise all such options, the notional volume of our existing Dated Brent derivative contracts will increase by 3,000 Bbls/d at an average price of $62.80 per Bbl for each month during the period July 1, 2017 through December 31, 2017. As of December 31, 2015 , we had entered into the following natural gas derivative instruments: Swaps Collars Settlement Period Type of Contract Index MMBtu Per Day Weighted Average Fixed Price Weighted Average Short Put Price Weighted Average Floor Price Weighted Average Ceiling Price 2016 Swaps (1) NYMEX HH 40,000 $ 3.60 $ — $ — $ — 2016 Swaps (2) Houston Ship Channel 30,000 4.04 — — — 2016 Two-Way Collars NYMEX HH 30,000 — — 3.00 3.50 2016 Two-Way Collars (2) Houston Ship Channel 30,000 — — 3.50 5.60 2016 Three-Way Collars NYMEX HH 90,000 — 2.83 3.42 3.90 (1) We have entered into certain natural gas derivative contracts (swaptions), 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. (2) Includes derivative instruments assumed by our subsidiary, NBL Texas, LLC, in connection with the Rosetta Merger. Fair Value Amounts and Gains and Losses on Derivative Instruments The fair values of derivative instruments in our consolidated balance sheets were as follows: Fair Value of Derivative Instruments Asset Derivative Instruments Liability Derivative Instruments December 31, December 31, December 31, December 31, Balance Sheet Location Fair Value Balance Sheet Location Fair Value Balance Sheet Location Fair Value Balance Sheet Location Fair Value (millions) Commodity Derivative Instruments Current Assets $ 582 Current Assets $ 710 Current Liabilities $ — Current Liabilities $ — Noncurrent Assets 10 Noncurrent Assets 180 Noncurrent Liabilities — Noncurrent Liabilities — Total $ 592 $ 890 $ — $ — The effect of derivative instruments on our consolidated statements of operations was as follows: Year Ended December 31, (millions) 2015 2014 2013 Cash (Received) Paid in Settlement of Commodity Derivative Instruments Crude Oil $ (844 ) $ (34 ) $ 52 Natural Gas (147 ) 5 (50 ) NGLs (1) (18 ) — — Total Cash (Received) Paid in Settlement of Commodity Derivative Instruments (1,009 ) (29 ) 2 Non-cash Portion of (Gain) Loss on Commodity Derivative Instruments Crude Oil 423 (863 ) 87 Natural Gas 65 (84 ) 44 NGLs (1) 20 — — Total Non-cash Portion of (Gain) Loss on Commodity Derivative Instruments 508 (947 ) 131 (Gain) Loss on Commodity Derivative Instruments Crude Oil (421 ) (897 ) 139 Natural Gas (82 ) (79 ) (6 ) NGLs (1) 2 — — Total (Gain) Loss on Commodity Derivative Instruments $ (501 ) $ (976 ) $ 133 (1) Amounts for NGLs relate to commodity derivative instruments, acquired in the Rosetta Merger, which expired as of December 31, 2015. |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Note 9. Asset Retirement Obligations Asset retirement obligations (ARO) consist primarily of estimated costs of dismantlement, removal, site reclamation and similar activities associated with our oil and gas properties. Changes in asset retirement obligations were as follows: Year Ended December 31, (millions) 2015 2014 Asset Retirement Obligations, Beginning Balance $ 751 $ 586 Liabilities Incurred 67 75 Liabilities Settled (38 ) (101 ) Revision of Estimate 166 155 Accretion Expense 43 36 Asset Retirement Obligations, Ending Balance $ 989 $ 751 For the year ended December 31, 2015 Liabilities incurred were due to new wells and facilities and included $22 million primarily for onshore US, $16 million for deepwater Gulf of Mexico and $29 million for Rosetta Merger related assets. We settled liabilities of $23 million for the DJ Basin, $2 million for deepwater Gulf of Mexico and $13 million for the North Sea. Revisions were primarily due to changes in estimated costs for future abandonment activities and acceleration of timing of abandonment and included $96 million for the DJ Basin, $48 million for Eastern Mediterranean, $35 million for deepwater Gulf of Mexico, and decreases of $10 million for Equatorial Guinea and $3 million for other non-core, onshore US developments. For the year ended December 31, 2014 Liabilities incurred were due to new wells and facilities and included $20 million for onshore US, $25 million for deepwater Gulf of Mexico, $2 million for Cameroon, and $10 million for Eastern Mediterranean. Additional liabilities of $18 million were incurred for wells in Equatorial Guinea. We settled liabilities of $33 million for the DJ Basin, $62 million for deepwater Gulf of Mexico, and $28 million for other non-core, onshore US developments and $1 million for China. At December 31, 2013, our non-operated North Sea fields were classified as held for sale, which included the related ARO for these fields. During 2014, the unsold North Sea properties were reclassified as held and used, resulting in an offset of $23 million to the balance of liabilities settled. Revisions were primarily due to changes in estimated costs for future abandonment activities and acceleration of timing of abandonment and included $33 million for DJ Basin, $29 million for deepwater Gulf of Mexico, $16 million for Equatorial Guinea, $8 million for Eastern Mediterranean, and $69 million related to a non-operated North Sea field. Accretion expense is included in DD&A expense in the consolidated statements of operations. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Note 10. Long-Term Debt Our debt consists of the following: December 31, December 31, (millions, except percentages) Debt Interest Rate Debt Interest Rate Credit Facility, due August 27, 2020 $ — — $ — — Capital Lease and Other Obligations 403 — 413 — 8.25% Senior Notes, due March 1, 2019 1,000 8.25 % 1,000 8.25 % 5.625% Senior Notes, due May 1, 2021 (1) 693 5.63 % — — % 4.15% Senior Notes, due December 15, 2021 1,000 4.15 % 1,000 4.15 % 5.875% Senior Notes, due June 1, 2022 (1) 597 5.88 % — — % 7.25% Senior Notes, due October 15, 2023 100 7.25 % 100 7.25 % 5.875% Senior Notes, due June 1, 2024 (1) 499 5.88 % — — 3.90% Senior Notes, due November 15, 2024 650 3.90 % 650 3.90 % 8.00% Senior Notes, due April 1, 2027 250 8.00 % 250 8.00 % 6.00% Senior Notes, due March 1, 2041 850 6.00 % 850 6.00 % 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 $ 7,976 $ 6,197 Unamortized Discount (24 ) (26 ) Unamortized Premium (2) 113 — Unamortized Debt Issuance Costs (36 ) (35 ) Total Debt, Net of Discount $ 8,029 $ 6,136 Less Amounts Due Within One Year Capital Lease and Other Obligations (53 ) (68 ) Long-Term Debt Due After One Year $ 7,976 $ 6,068 (1) Represents senior notes assumed in the Rosetta Merger. See Note 3. Merger, Acquisitions and Divestitures. (2) Debt premium is attributable to senior notes assumed in the Rosetta Merger. All of our long-term debt is senior unsecured debt and is, therefore, pari passu with respect to the payment of both principal and interest. The indenture documents of each of our notes provide that we may prepay the instruments by creating a defeasance trust. The defeasance provisions require that the trust be funded with securities sufficient, in the opinion of a nationally recognized accounting firm, to pay all scheduled principal and interest due under the respective agreements. Interest on each of these issues is payable semi-annually. Debt issuance costs of approximately $12 million related to our Credit Facility remain and are being amortized to expense over the life of the Credit Facility. Credit Facility On August 27, 2015 , we amended our $4.0 billion Credit Facility to extend the maturity date to August 27, 2020. We periodically borrow amounts for working capital purposes. Our Credit Facility (i) provides for facility fee rates that range from 10 basis points to 25 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 90 basis points to 150 basis points depending upon our credit rating. The Credit Agreement requires that our total debt to capitalization ratio (as defined in the Credit Agreement), expressed as a percentage, not exceed 65% at any time. A violation of this covenant could result in a default under the Credit Agreement, which would permit the participating banks to restrict our ability to access the Credit Facility and require the immediate repayment of any outstanding advances under the Credit Facility. As of December 31, 2015 , we were in compliance with our debt covenants. The Credit Facility is available for general corporate purposes. Certain lenders that are a party to the Credit Agreement have in the past performed, and may in the future from time to time perform, investment banking, financial advisory, lending or commercial banking services for us for which they have received, and may in the future receive, customary compensation and reimbursement of expenses. Debt Exchange On July 29, 2015, we completed our debt exchange offers to exchange all validly tendered and accepted senior notes assumed in the Rosetta Merger. We were able to exchange 99.4% of the outstanding Rosetta senior notes, whereby we issued (i) $693 million senior unsecured 5.625% notes due May 1, 2021 , (ii) $597 million senior unsecured 5.875% notes due June 1, 2022 and (iii) $499 million senior unsecured 5.875% notes due June 1, 2024 . We incurred financing costs of $12 million related to the debt exchange. We also repaid the balance outstanding under, and terminated, Rosetta's credit facility of $70 million . 2014 Debt Offering On November 7, 2014 , we closed an offering of $ 650 million senior unsecured 3.90% notes due November 15, 2024 and $ 850 million senior unsecured 5.05% notes due November 15, 2044 , receiving aggregate net proceeds of almost $ 1.5 billion . Both notes pay interest semiannually. Approximately $1.1 billion of the net proceeds were used to repay outstanding indebtedness under our Credit Facility and the balance of the proceeds has been used for general corporate purposes. Capital Lease and Other Obligations The amounts of the capital lease obligations are based on the discounted present value of future minimum lease payments, and therefore do not reflect future cash lease payments. Amounts due within one year equal the amount by which the capital lease obligations are expected to be reduced during the next 12 months. See Note 18. Commitments and Contingencies for future capital lease payments. Annual Debt Maturities Annual maturities of outstanding debt, excluding capital lease payments, are as follows: (millions) Debt Principal Payments December 31, 2015 2016 $ — 2017 — 2018 — 2019 1,000 2020 — Thereafter 6,573 Total $ 7,573 Subsequent Event On January 6, 2016, we entered into a term loan agreement with Citibank, N.A., as administrative agent, Mizuho Bank, Ltd., as syndication agent, and certain other financial institutions party thereto, which provides for a three -year term loan facility for a principal amount of up to $1.4 billion . Provisions of the term loan are consistent with those in the Credit Facility. Borrowings under the term loan agreement may be prepaid prior to maturity without premium. In connection with the term loan, we launched cash tender offers for the 5.875% Senior Notes due June 1, 2024 , 5.875% Senior Notes due June 1, 2022 and 5.625% Senior Notes due May 1, 2021 , all of which were assumed as part of the Rosetta Merger. The borrowings under the term loan will be used solely to fund the tender offers. As of January 21, 2016, approximately $1.38 billion of notes had been validly tendered and accepted by the Company, with a corresponding amount borrowed under the new term loan. We are currently evaluating the accounting for the tendered notes to determine the impact, if any, it may have on our financial position and results of operations. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11. Income Taxes Components of income (loss) from continuing operations before income taxes are as follows: Year Ended December 31, (millions) 2015 2014 2013 Domestic $ (2,338 ) $ 282 $ 202 Foreign 119 1,428 1,142 Total $ (2,219 ) $ 1,710 $ 1,344 The income tax provision from continuing operations consists of the following: Year Ended December 31, (millions) 2015 2014 2013 Current Taxes Federal $ (1 ) $ 19 $ 21 State — 1 1 Foreign 107 208 144 Total Current 106 228 166 Deferred Taxes Federal 216 237 96 State (5 ) 13 1 Foreign (95 ) 18 174 Total Deferred 116 268 271 Total Income Tax Provision $ 222 $ 496 $ 437 Effective Tax Rate (10.0 )% 29.0 % 32.5 % A reconciliation of the federal statutory tax rate to the effective tax rate is as follows: Year Ended December 31, (percentages) 2015 2014 2013 Federal Statutory Rate 35.0 % 35.0 % 35.0 % Effect of Earnings of Equity Method Investees 0.6 (3.3 ) (5.3 ) State Taxes, Net of Federal Benefit 0.3 0.8 0.1 Difference Between US and Foreign Rates 2.6 (14.2 ) (6.3 ) Foreign Exploration Loss 2.7 — 2.7 Change in Valuation Allowance — 1.9 3.8 Oil Profits Tax - Israel 0.1 0.2 0.3 Tax Contingency 0.4 0.1 0.4 Accumulated Undistributed Foreign Earnings (37.7 ) 8.2 — Goodwill Impairment (12.3 ) — — Other, Net (1.7 ) 0.3 1.8 Effective Rate (10.0 )% 29.0 % 32.5 % Deferred tax assets and liabilities resulted from the following: December 31, (millions) 2015 2014 Deferred Tax Assets Loss Carryforwards $ 468 $ 170 Employee Compensation and Benefits 151 149 Foreign Tax Credits — 67 Other 81 51 Total Deferred Tax Assets $ 700 $ 437 Valuation Allowance - Foreign Loss Carryforwards (206 ) (145 ) Valuation Allowance - Foreign Tax Credits — (67 ) Valuation Allowance - Capital Loss Carryforwards — (1 ) Net Deferred Tax Assets $ 494 $ 224 Deferred Tax Liabilities Mark to Market of Commodity Derivative Instruments (128 ) (209 ) Accumulated Undistributed Foreign Earnings (368 ) (141 ) Property, Plant and Equipment, Principally Due to Differences in Depreciation, Amortization, Lease Impairment and Abandonments (2,824 ) (2,548 ) Total Deferred Tax Liability $ (3,320 ) $ (2,898 ) Net Deferred Tax Liability $ (2,826 ) $ (2,674 ) Net deferred tax liabilities were classified in the consolidated balance sheets as follows: December 31, (millions) 2015 2014 Deferred Income Tax Liability - Current (1) $ — $ (158 ) Deferred Income Tax Liability - Noncurrent (1) (2,826 ) (2,516 ) Net Deferred Tax Liability $ (2,826 ) $ (2,674 ) (1) As discussed in Note 1. Summary of Significant Accounting Policies , we have elected to early adopt and apply the presentation requirements of ASU 2015-17, Balance Sheet Classification of Deferred Taxes , as of December 31, 2015. Prior periods have not been retrospectively adjusted. Deferred Tax Assets In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in the appropriate tax jurisdictions during the periods in which those temporary differences become deductible. We consider the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, we believe it is more likely than not that we will realize the benefits of these deductible differences at December 31, 2015 . The amount of the deferred tax assets considered realizable could be reduced in the future if estimates of future taxable income during the carryforward period are reduced. The valuation allowance on the deferred tax assets associated with foreign loss carryforwards totaled $206 million in 2015 and $145 million in 2014 . The changes to the valuation allowance for the loss carryforwards between periods were attributable to changes in losses on projects in new venture activities which are not yet commercial. During 2015, as a result of cash repatriation, we released a valuation allowance of $60 million on our foreign tax credits. During fourth quarter 2014, fluctuations in crude oil and natural gas prices resulted in an inability to determine whether we would be able to utilize all of our foreign tax credits in the future. Therefore, we set up a deferred tax liability of $141 million on our accumulated undistributed foreign earnings and a corresponding valuation allowance of $36 million on our foreign tax credits. Rosetta Merger On July 20, 2015, we completed the Rosetta Merger. For federal income tax purposes, the merger qualified as a tax free merger and we acquired carryover tax basis in Rosetta’s assets and liabilities. Rosetta had a net deferred tax asset resulting from its federal net operating loss (NOL) estimated at $681 million through the date of acquisition. The merger resulted in a change of control for federal income tax purposes, and the NOL’s usage will be subject to an annual limitation in part based on Rosetta’s value at the date of the merger. We anticipate full utilization of the total NOL prior to its expiration. Accumulated Undistributed Earnings of Foreign Subsidiaries Our foreign subsidiaries’ undistributed earnings of approximately $1.6 billion at December 31, 2015 are no longer considered to be indefinitely reinvested outside the United States and, accordingly, we recorded $227 million in deferred income taxes in 2015, net of estimated foreign tax credits. We based our change in the indefinite reinvestment assertion on the continued and prolonged decline in global commodity prices and an evaluation of our operations’ anticipated capital requirements and projected foreign cash positions given the adoption of the Israel Natural Gas Framework in December 2015. The actual tax impact upon distribution would depend on our tax positions at the time of repatriation and could be significantly different from this estimate. Effective Tax Rate Our effective tax rate decreased in 2015 as compared with 2014 primarily due to a shift from pre-tax earnings in 2014 to a pre-tax loss in 2015 and the removal of our permanent reinvestment assertion discussed above. In the case of a pre-tax loss, our favorable permanent differences, such as income from equity method investees, have the effect of increasing the tax benefit which, in turn, increases the effective tax rate. Unfavorable permanent differences, such as non-deductible goodwill impairment expense, have the effect of decreasing the tax benefit which, in turn, decreases the effective tax rate. The decrease in the effective tax rate was partially offset by a release of the valuation allowance on foreign tax credits due to usage and losses from funding foreign exploration projects. Our effective tax rate decreased in 2014 as compared with 2013 primarily due to our ability to benefit from previously unrecognized foreign tax credits, increased earnings in our foreign jurisdictions with rates that vary from the US statutory rate, and a decrease in our Israeli oil profits tax, offset by a change in our state tax estimates and foreign dividend repatriation. Changes in Israeli Tax Law In July 2013 , the Israeli government increased the corporate income tax rate from 25% to 26.5% , effective January 2014. The change increased the deferred tax expense for 2013 by $12 million , which is reported in other, net within our effective rate reconciliation above. Unrecognized Tax Benefits We file a consolidated income tax return in the US federal jurisdiction, and we file income tax returns in various states and foreign jurisdictions. Our income tax returns are routinely audited by the applicable revenue authorities, and provisions are routinely made in the financial statements for differences between positions taken in tax returns and amounts recognized in the financial statements in anticipation of the results of these audits. In our major tax jurisdictions, the earliest years remaining open to examination are: US - 2012 , Equatorial Guinea - 2010 and Israel - 2011 . Our policy is to recognize any interest and penalties related to unrecognized tax benefits in income tax expense. A reconciliation of our beginning and ending amounts of unrecognized tax benefits follows: (millions) Twelve Months Ended December 31, 2015 Unrecognized Tax Benefits, Beginning Balance $ 29 Additions for Tax Positions Related to Current Year — Additions for Tax Positions of Prior Years 3 Reductions for Tax Positions of Prior Years (4 ) Settlements (20 ) Unrecognized Tax Benefits, Ending Balance $ 8 As of December 31, 2015 , approximately $8 million of unrecognized tax benefits would impact our effective tax rate if recognized. The changes to our unrecognized tax benefits during 2015 primarily resulted from changes in various foreign tax return filings, positions and audit settlements. The adjustments to our reserves for uncertain tax positions had a de minimis impact on our net income. During 2015 , we recognized and accrued a de minimis amount of interest and none in penalties. As of December 31, 2014 , approximately $29 million of unrecognized tax benefits would impact our effective tax rate if recognized. The changes to our unrecognized tax benefits during 2014 primarily resulted from changes in various foreign tax return filings and positions. The adjustments to our reserves for uncertain tax positions had a de minimis impact on our net income. During 2014 , we recognized and accrued a de minimis amount of interest and none in penalties. We expect that our unrecognized tax benefits could continue to change due to the settlement of audits and the expiration of statutes of limitation in the next twelve months; however, we do not anticipate any such change to have a significant impact on our results of operations, financial position or cash flows in the next twelve months. |
Stock-Based and Other Compensat
Stock-Based and Other Compensation Plans | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation [Abstract] | |
Stock-Based and Other Compensation Plans | Note 12. Stock-Based and Other Compensation Plans We recognized total stock-based compensation expense as follows: Year Ended December 31, (millions) 2015 2014 2013 Stock-Based Compensation Expense Included in General and Administrative Expense $ 50 $ 63 $ 58 Exploration Expense and Other 36 24 22 Total Stock-Based Compensation Expense $ 86 $ 87 $ 80 Tax Benefit Recognized $ (30 ) $ (31 ) $ (28 ) Stock Option and Restricted Stock Plans Our stock option and restricted stock plans are described below. 1992 Stock Option and Restricted Stock Plan Under the Noble Energy, Inc. 1992 Stock Option and Restricted Stock Plan, as amended (the 1992 Plan), the Compensation, Benefits and Stock Option Committee of the Board of Directors (the Committee) may grant stock options and stock appreciation rights and award restricted stock and cash awards to our officers or other employees and those of our subsidiaries. The maximum number of shares that may be granted under the 1992 Plan is 77,400,000 shares of common stock. At December 31, 2015 , 35,850,503 shares of our common stock were reserved for issuance, including 16,019,550 shares available for future grants and awards, under the 1992 Plan. Stock options are issued with an exercise price equal to the fair market value of our common stock on the date of grant, and are subject to such other terms and conditions as may be determined by the Committee. Unless granted by the Committee for a shorter term, the options expire 10 years from the grant date. Option grants generally vest ratably over a three -year period. Restricted stock awards made under the 1992 Plan are subject to such restrictions, terms and conditions, including forfeitures, if any, as may be determined by the Committee. During the period during which such restrictions apply, unless specifically provided otherwise in accordance with the terms of the 1992 Plan, the recipient of restricted stock would be the record owner of the shares and have all the rights of a stockholder with respect to the shares, including the right to vote and the right to receive dividends or other distributions made or paid with respect to the shares. The dividends or other distributions pertaining to the restricted shares will be held by the Company until the restriction period ends and the shares vest or forfeit. If the restricted shares forfeit, then the recipient shall not be entitled to receive the dividend or distribution which will transfer to the Company. Restricted stock awards with a time-vested restriction vest over a three year period ( 20% after year one, an additional 30% after year two and the remaining 50% after year three) or over a two year period ( 40% after year one and the remaining 60% after year two). Restricted stock awards with a performance-vested restriction cliff vest after a three year period if the Company achieves certain levels of total shareholder return relative to a pre-determined industry peer group. 2015 Stock Plan for Non-Employee Directors The 2015 Stock Plan for Non-Employee Directors of Noble Energy, Inc., as amended (the 2015 Plan) provides for grants of stock options and awards of restricted stock to our non-employee directors. The 2015 Plan superseded and replaced the 2005 Stock Plan for Non-Employee Directors of Noble Energy, Inc. The total number of shares of our common stock that may be issued under the 2015 Plan is 708,996 . At December 31, 2015 , 705,615 shares of our common stock were reserved for issuance including 693,665 shares available for future grants and awards, under the 2015 Plan. 2005 Stock Plan for Non-Employee Directors The 2005 Stock Plan for Non-Employee Directors of Noble Energy, Inc., as amended (the 2005 Plan) provides for grants of stock options and awards of restricted stock to our non-employee directors. The 2005 Plan superseded and replaced the 1988 Nonqualified Stock Option Plan for Non-Employee Directors of Noble Energy, Inc. The total number of shares of our common stock that may be issued under the 2005 Plan is 1,600,000 . At December 31, 2015 , 469,597 shares of our common stock were reserved for issuance. Prior to March 17, 2011, the 2005 Plan provided for the automatic granting to a non-employee director of up to a maximum of 11,200 stock options on the date of election to the Board of Directors, annual grants of 2,800 options per non-employee director on February 1 of each year, and discretionary grants by the Board of Directors (with the February 1 annual and the discretionary grants made to a non-employee director during any calendar year being limited to a combined maximum of 11,200 options). The 2005 Plan was amended so that no automatic option grants would be made under the 2005 Plan on or after March 17, 2011. Discretionary grants by the Board of Directors continue to be permitted under the 2005 Plan (with the grants made to a non-employee director during any calendar year being limited to a maximum of 22,400 ). Options are issued with an exercise price equal to the market price of our common stock on the date of grant and may be exercised one year after the date of grant. Unless granted by the Board of Directors for a shorter term, the options expire 10 years from the date of grant. Prior to March 17, 2011, the 2005 Plan also provided for the awarding to a non-employee director of up to a maximum of 4,800 shares of restricted stock on the date of election to the Board of Directors, annual awards of 1,200 shares of restricted stock per non-employee director on February 1 of each year, and discretionary awards by the Board of Directors (with the February 1 annual and the discretionary awards made to a non-employee director during any calendar year being limited to a combined maximum of 4,800 shares of restricted stock). The 2005 Plan was amended so that no automatic grants of restricted stock awards would be made under the 2005 Plan on or after March 17, 2011. Discretionary grants by the Board of Directors continue to be permitted under the 2005 Plan (with the grants made to a non-employee director during any calendar year limited to a maximum of 9,600 ). Restricted stock is restricted for a period of at least one year from the date of award. 1988 Nonqualified Stock Option Plan for Non-Employee Directors The 1988 Nonqualified Stock Option Plan for Non-Employee Directors of Noble Energy, Inc., as amended, (the 1988 Plan) provided for the issuance of stock options to our non-employee directors. Options issued under the 1988 Plan may be exercised one year after grant and expire 10 years from the grant date. The 1988 Plan provided for the granting of a fixed number of stock options to each non-employee director annually ( 20,000 stock options for the first calendar year of service and 10,000 stock options for each year thereafter) on February 1 of each year. The 1988 Plan was terminated in 2005, and no additional options can be granted thereunder. Stock Option Grants The fair value of each stock option granted was estimated on the date of grant using a Black-Scholes-Merton option valuation model that used the assumptions described below: • Expected term The expected term represents the period of time that options granted are expected to be outstanding, which is the grant date to the date of expected exercise or other expected settlement for options granted. The hypothetical midpoint scenario we use considers our actual exercise and post-vesting cancellation history and expectations for future periods, which assumes that all vested, outstanding options are settled halfway between the current date and their expiration date. • Expected volatility The expected volatility represents the extent to which our stock price is expected to fluctuate between the grant date and the expected term of the award. We use the historical volatility of our common stock for a period equal to the expected term of the option prior to the date of grant. We believe that historical volatility produces an estimate that is representative of our expectations about the future volatility of our common stock over the expected term. • Risk-free rate The risk-free rate is the implied yield available on US Treasury securities with a remaining term equal to the expected term of the option. We base our risk-free rate on a weighting of five and seven year US Treasury securities as of the date of grant. • Dividend yield The dividend yield represents the value of our stock’s annualized dividend as compared to our stock’s average price for the three -year period ended prior to the date of grant. It is calculated by dividing one full year of our expected dividends by our average stock price over the three -year period ended prior to the date of grant. The assumptions used in valuing stock options granted were as follows: Year Ended December 31, (weighted averages) 2015 2014 2013 Expected Term (in Years) 6.0 5.9 5.7 Expected Volatility 32.6 % 35.1 % 36.4 % Risk-Free Rate 1.4 % 1.8 % 1.1 % Expected Dividend Yield 1.2 % 1.1 % 1.2 % Weighted Average Grant-Date Fair Value $ 13.93 $ 20.31 $ 17.08 Stock option activity was as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (per share) (in years) (in millions) Outstanding at December 31, 2014 13,008,322 $ 43.98 Granted 2,714,185 47.25 Exercised (343,145 ) 23.35 Forfeited (808,350 ) 52.24 Outstanding at December 31, 2015 14,571,012 $ 44.59 5.6 $ 21 Exercisable at December 31, 2015 10,659,799 $ 41.53 4.5 $ 21 The total intrinsic value of options exercised was $7 million in 2015, $58 million in 2014, and $64 million in 2013. As of December 31, 2015 , $34 million of compensation cost related to unvested stock options granted under the Plans remained to be recognized. The cost is expected to be recognized over a weighted-average period of 1.3 years . We issue new shares of our common stock to settle option exercises. Dividends are not paid on unexercised options. Restricted Stock Awards Awards of time-vested restricted stock (shares subject to service conditions) are valued at the price of our common stock at the date of award. The fair values of market based restricted stock awards are estimated on the date of award using a Monte Carlo valuation model that uses the assumptions in the following table. The Monte Carlo model is based on random projections of stock price paths and must be repeated numerous times to achieve a probabilistic assessment. Expected volatility represents the extent to which our stock price is expected to fluctuate between now and the award’s anticipated term. We use the historical volatility of Noble Energy common stock for the three -year period ended prior to the date of award. The risk-free rate is based on a three-year period for U.S. Treasury securities as of the year ended prior to the date of award. The assumptions used in valuing market based restricted stock awards granted were as follows: Year Ended December 31, 2015 2014 Number of Simulations 500,000 500,000 Expected Volatility 30 % 30 % Risk-Free Rate 0.8 % 0.7 % Restricted stock activity was as follows: Subject to Time Vesting Subject to Market Conditions Number of Shares Weighted Average Award Date Fair Value Number of Shares Weighted Average Award Date Fair Value (per share) (per share) Outstanding at December 31, 2014 1,048,800 $ 55.68 1,518,336 $ 29.10 Awarded 1,554,002 39.57 762,786 27.30 Vested (1,464,374 ) 46.57 (1,172 ) 42.21 Forfeited (118,958 ) 51.36 (350,028 ) 28.41 Outstanding at December 31, 2015 1,019,470 $ 45.55 1,929,922 $ 28.50 The total fair value of restricted stock that vested was $62 million in 2015, $50 million in 2014, and $43 million in 2013. The weighted average award-date fair value of restricted stock awarded was $35.53 per share in 2015 , $41.22 per share in 2014 , and $38.07 per share in 2013 . As of December 31, 2015 , $42 million of compensation cost related to all of our unvested restricted stock awarded under the Plans remained to be recognized. The cost is expected to be recognized over a weighted-average period of 1.7 years . Common stock dividends accrue on restricted stock awards and are paid upon vesting. We issue new shares of our common stock when awarding restricted stock. Other Compensation Plans 401(k) Plan We sponsor a 401(k) savings plan. All regular employees are eligible to participate. We make contributions to match employee contributions up to the first 6% of compensation deferred into the plan, and certain profit sharing contributions for employees hired on or after May 1, 2006, based upon their ages and salaries. We made cash contributions of $35 million in 2015 , $26 million in 2014 , and $21 million in 2013 . As a result of the termination of the pension plan (see below), employees who were hired prior to May 1, 2006 became eligible to receive profit sharing contributions effective January 1, 2014. In addition, certain of these employees are eligible to receive transition contributions related to the termination of the plan. Deferred Compensation Plans We have a non-qualified deferred compensation plan for which participant-directed investments are held in a rabbi trust and are available to satisfy the claims of our creditors in the event of bankruptcy or insolvency. Participants in that nonqualified deferred compensation plan may elect to receive distributions in either cash or shares of our common stock. Components of that rabbi trust are as follows: December 31, (millions, except share amounts) 2015 2014 Rabbi Trust Assets Mutual Fund Investments $ 63 $ 83 Noble Energy Common Stock (at Fair Value) 35 51 Total Rabbi Trust Assets $ 98 $ 134 Liability Under Related Deferred Compensation Plan $ 98 $ 134 Number of Shares of Noble Energy Common Stock Held by Rabbi Trust 872,277 1,073,286 Assets of that rabbi trust, other than our common stock, are invested in certain mutual funds that cover an investment spectrum ranging from equities to money market instruments. These mutual funds have published market prices and are reported at fair value. See Note 13. Fair Value Measurements and Disclosures . The mutual funds are included in the mutual fund investments account in other noncurrent assets in the consolidated balance sheets. Shares of our common stock held by the rabbi trust holding common stock are accounted for as treasury stock (recorded at cost, $16.72 per share) in the shareholders’ equity section of the consolidated balance sheets. Amounts payable to plan participants are included in other noncurrent liabilities in the consolidated balance sheets and include the market value of the shares of our common stock. Approximately 800,000 shares, or 92% , of our common stock held in respect of one nonqualified deferred compensation plan at December 31, 2015 were attributable to a member of our Board of Directors. The shares are being distributed in equal installments over the next four years. Distributions of 200,000 shares were made in 2015 and 200,000 shares in 2014 . In addition, plan participants sold 1,009 shares of our common stock in 2015 , 19,049 shares in 2014 , and 1,008 shares in 2013 . Proceeds were invested in mutual funds and/or distributed to plan participants. Distributions to plan participants were valued at $18 million in 2015 , $22 million in 2014 and $25 million in 2013 . All fluctuations in market value of the deferred compensation liability have been reflected in other non-operating (income) expense, net in the consolidated statements of operations. We recognized deferred compensation expense (income) of $(16) million in 2015 , $(25) million in 2014 and $26 million in 2013 . We also maintain other nonqualified deferred compensation plan (besides the restoration plan described below) for the benefit of certain of our employees. Deferred compensation liabilities of $119 million and $84 million were outstanding at December 31, 2015 and 2014 , respectively, under those other plans. Pension and Other Postretirement Benefit Plans We have had a noncontributory, tax-qualified defined benefit pension plan (pension plan) covering employees who were hired prior to May 1, 2006, and an unfunded, nonqualified restoration plan that provided the pension plan formula benefits that could not be provided by the qualified pension plan because of pay deferrals and the compensation and benefit limitations imposed on the pension plan by the Internal Revenue Code of 1986, as amended. We have also sponsored other plans, which include plans offering medical and life insurance benefits, for the benefit of our employees and retirees. During 2015, we completed the termination of the pension plan. We liquidated the associated pension obligation through lump-sum payments to participants or the purchase of annuities on their behalf. Upon termination of the pension plan, all unamortized prior service cost and net actuarial loss remaining in AOCL was charged to expense. This amount totaled $88 million . In coordination with the termination and liquidation of the pension plan, we also amended our restoration plan to freeze the accrual of benefits. Payments under the restoration plan will continue to be made in ordinary course without acceleration. Restoration plan participants who remain employed by us upon final liquidation and distribution of assets of the pension plan were given the option to have the lump sum present value of their restoration plan benefits converted into an account balance under our nonqualified deferred compensation plan. During 2014, we curtailed the retiree medical program, resulting in a gain of $21 million, and, at December 31, 2014, accrued a one-time taxable cash payment of $ 20 million to certain employees who would have been eligible for retiree medical benefits at any point during the next 10 years. The benefit obligations, plan assets and AOCL balances for the pension, restoration and other postretirement benefit plans are summarized below as of December 31: Retirement and Restoration Plans (1) Medical and Life Plans (millions) 2015 2014 2015 2014 Pension or Other Benefit Obligation $ (24 ) $ (363 ) $ (5 ) $ (7 ) Fair Value of Plan Assets — 242 — — Net Amount Recognized in Consolidated Balance Sheet (24 ) (121 ) (5 ) (7 ) Current Liabilities (2 ) (102 ) (1 ) (2 ) Noncurrent Liabilities (22 ) (19 ) (4 ) (5 ) Net Prior Service (Cost) Credit, Before Tax $ (15 ) $ (75 ) $ 2 $ 2 Net Gains (Losses), Before Tax (4 ) (42 ) — — Accumulated Other Comprehensive Income (Loss) $ (19 ) $ (117 ) $ 2 $ 2 (1) The retirement (pension) plan was terminated during 2015. Balances at December 31, 2015 relate to the restoration plan only. At December 31, 2014, pension plan assets were invested in cash and separately managed accounts consisting primarily of short term fixed income securities. Net periodic benefit cost related to these plans totaled $16 million in 2015 , $11 million in 2014 , and $37 million in 2013 . |
Fair Value Measurements and Dis
Fair Value Measurements and Disclosures | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 13. 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 sheet. 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. Inventories We carry inventory consisting primarily of tubular goods and production equipment used in our oil and gas operations, and crude oil produced but not yet sold. Materials and supplies inventories are stated at the lower of average cost or market. Mutual Fund Investments Our mutual fund investments 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, three-way collars, swaptions and extendable/enhanced swaps. We estimate the fair values of these instruments using 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 8. 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 (millions) Quoted Prices in Active Markets (Level 1) (1) Significant Other Observable Inputs (Level 2) (1) Significant Unobservable Inputs (Level 3) (1) Adjustment (2) Fair Value Measurement December 31, 2015 Financial Assets Mutual Fund Investments $ 90 $ — $ — $ — $ 90 Commodity Derivative Instruments — 600 — (8 ) 592 Financial Liabilities Commodity Derivative Instruments — (8 ) — 8 — Portion of Deferred Compensation Liability Measured at Fair Value (98 ) — — — (98 ) 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) See Note 1. Summary of Significant Accounting Policies - Fair Value Measurements for a description of the fair value hierarchy. (2) Amount represents the impact of netting clauses 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: Inventory Impairment We determined that the carrying amount of certain of our materials and supplies inventory was not recoverable from future cash flows and, therefore, was impaired. Inventory was reduced to its estimated market value. Asset Impairments We determined that the carrying amounts of certain oil and gas assets were not recoverable from future cash flows and, therefore, were impaired. The assets were reduced to their estimated fair values. Information about the impaired assets is as follows: Fair Value Measurements Using Description Quoted Prices in Active Markets (Level 1) (1) Significant Other Observable Inputs (Level 2) (1) Significant Unobservable Inputs (Level 3) (1) Net Book Value (2) Total Pre-tax (Non-cash) Impairment Loss (millions) Year Ended December 31, 2015 Impaired Oil and Gas Properties $ — $ — $ 752 $ 1,285 $ 533 Impaired Materials and Supplies Inventory — — 61 81 20 Year Ended December 31, 2014 Impaired Oil and Gas Properties — — 100 600 500 Year Ended December 31, 2013 Impaired Oil and Gas Properties — — 113 199 86 (1) See Note 1. Summary of Significant Accounting Policies - Fair Value Measurements for a description of the fair value hierarchy. (2) Amount represents net book value at the date of assessment. The fair values of the properties held and used were determined as of the date of the assessment using discounted cash flow models. The discounted cash flows were based on management’s expectations for the future. Inputs included estimates of future crude oil and natural gas production, commodity prices based on sales contract terms or commodity price curves as of the date of the estimate, estimated operating and development costs, and a risk-adjusted discount rate of 10% . The fair values of assets held for sale were based on anticipated sales proceeds less costs to sell. See Note 5. Asset Impairments . Additional Fair Value Disclosures Debt The fair value of fixed-rate, public 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. See Note 10. Long-Term Debt. Fair value information regarding our debt is as follows: December 31, December 31, (millions) Carrying Amount Fair Value Carrying Amount Fair Value Long-Term Debt, Net (1) $ 7,626 $ 7,105 $ 5,758 $ 6,179 (1) Net of unamortized discount, premium and debt issuance costs and excludes capital lease and other obligations. No floating rate debt was outstanding at December 31, 2015 or December 31, 2014 . |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Note 14. Earnings (Loss) Per Share Basic earnings (loss) per share of common stock is computed using the weighted average number of shares of common stock outstanding during each period. The diluted earnings (loss) 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 (loss) per share: Year Ended December 31, (millions, except per share amounts) 2015 2014 2013 Income (Loss) from Continuing Operations $ (2,441 ) $ 1,214 $ 907 Earnings Adjustment from Assumed Conversion of Dilutive Shares of Common Stock in Rabbi Trust (1) — (17 ) — Income (Loss) from Continuing Operations Used for Diluted Earnings (Loss) Per Share Calculation $ (2,441 ) $ 1,197 $ 907 Weighted Average Number of Shares Outstanding, Basic (2) 402 361 359 Incremental Shares From Assumed Conversion of Dilutive Stock Options, Restricted Stock, and Shares of Common Stock in Rabbi Trust (1) — 6 4 Weighted Average Number of Shares Outstanding, Diluted 402 367 363 Earnings (Loss) from Continuing Operations Per Share, Basic $ (6.07 ) $ 3.36 $ 2.53 Earnings (Loss) from Continuing Operations Per Share, Diluted (6.07 ) 3.27 2.50 Additional Information Number of antidilutive stock options, shares of restricted stock and shares of common stock in rabbi trust excluded from calculation above 10 3 3 Weighted average option exercise price per share $ 52.39 $ 60.30 $ 53.40 (1) For the year ended December 31, 2015, all outstanding options and non-vested restricted shares have been excluded from the calculation of diluted earnings (loss) per share as Noble Energy incurred a loss from continuing operations. Therefore, inclusion of outstanding options and non-vested restricted shares in the calculation of diluted earnings (loss) per share would be anti-dilutive. Consistent with GAAP, when dilutive, deferred compensation gains or losses, net of tax, are excluded from net income while our common shares held in the rabbi trust are included in the diluted share count. For this reason, the diluted earnings (loss) per share calculation for the year ended December 31, 2014 excludes deferred compensation gains, net of tax. (2) The weighted average number of shares outstanding includes the weighted average shares of common stock issued in connection with the underwritten public offering of 24.15 million shares of Noble Energy common stock in first quarter 2015 and issued in connection with the exchange of approximately 41 million shares for all outstanding shares of Rosetta common stock on July 20, 2015. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Note 15. Segment Information We have operations throughout the world and manage our operations by region. The following information is grouped into four components that are all primarily in the business of crude oil, natural gas and NGL exploration, development, production and acquisition: the United States; West Africa (Equatorial Guinea, Cameroon, Gabon and Sierra Leone (which we have exited)); Eastern Mediterranean (Israel and Cyprus); and Other International and Corporate. Other International includes the Falkland Islands, Suriname, the North Sea, China (through June 2014), Nicaragua (which we have exited) and new ventures. The North Sea geographical segment is included in continuing operations in 2015 and 2014 and in discontinued operations in 2013. Income (loss) from continuing operations before income taxes for the United States and West Africa includes gains and losses on commodity derivative instruments. Consolidated United States West Africa Eastern Mediterranean Other Int'l & Corporate Year Ended December 31, 2015 Revenues from Third Parties (1) $ 3,043 $ 1,961 $ 580 $ 497 $ 5 Income from Equity Method Investees 90 51 39 — — Total Revenues 3,133 2,012 619 497 5 DD&A 2,131 1,692 326 70 43 Asset Impairments 533 158 339 36 — Goodwill Impairment 779 779 — — — Gain on Commodity Derivative Instruments (501 ) (347 ) (154 ) — — Income (Loss) from Continuing Operations Before Income Taxes (2,219 ) (1,553 ) (77 ) 306 (895 ) Equity Method Investments 453 226 227 — — Additions to Long-Lived Assets 3,062 2,534 124 147 257 Goodwill at End of Year (2) — — — — — Total Assets at End of Year (3) 24,196 18,831 2,299 2,677 389 Year Ended December 31, 2014 Revenues from Third Parties (1) $ 4,931 $ 3,175 $ 1,177 $ 479 $ 100 Income from Equity Method Investees 170 9 161 — — Total Revenues 5,101 3,184 1,338 479 100 DD&A 1,759 1,318 299 63 79 Asset Impairments 500 392 — 14 94 Gain on Divestitures (73 ) (34 ) — — (39 ) Gain on Commodity Derivative Instruments (976 ) (604 ) (372 ) — — Income (Loss) from Continuing Operations Before Income Taxes 1,710 1,150 1,222 284 (946 ) Equity Method Investments 325 82 223 — 20 Additions to Long-Lived Assets 5,152 4,389 261 201 301 Goodwill at End of Year (2) 620 620 — — — Total Assets at End of Year (3) 22,518 16,365 2,763 2,806 584 Year Ended December 31, 2013 Revenues from Third Parties (1) $ 4,809 $ 3,004 $ 1,252 $ 391 $ 162 Income from Equity Method Investees 206 — 206 — — Total Revenues 5,015 3,004 1,458 391 162 DD&A 1,568 1,117 261 97 93 Asset Impairments 86 39 — 47 — Gain on Divestitures (36 ) (36 ) — — — Loss on Commodity Derivative Instruments 133 67 66 — — Income (Loss) from Continuing Operations Before Income Taxes 1,344 790 936 162 (544 ) Equity Method Investments 437 184 234 — 19 Additions to Long-Lived Assets 4,534 3,475 453 420 186 Goodwill at End of Year (2) 627 627 — — — Total Assets at End of Year (3) 19,598 13,094 3,199 2,753 552 (1) Revenues from third parties for all foreign countries, in total, were $1.1 billion in 2015 and $1.8 billion in both 2014 and 2013 . (2) As of December 31, 2015, our goodwill was fully impaired. See Note 4. Goodwill. (3) Long-lived assets located in all foreign countries, in total, were $3.9 billion , $4.4 billion , and $4.5 billion at December 31, 2015 , 2014 , and 2013 , respectively. |
Concentration of Risk
Concentration of Risk | 12 Months Ended |
Dec. 31, 2015 | |
Concentration of Risk [Abstract] | |
Concentration of Risk | Note 16. Concentration of Risk Concentration of Market Risk The largest single non-affiliated purchasers of our production were as follows: Percentage of Crude Oil Sales Percentage of Total Oil, Gas & NGL Sales Year Ended December 31, 2015 Glencore Energy UK Ltd 30 % 18 % Shell (1) 18 % 11 % Year Ended December 31, 2014 Glencore Energy UK Ltd 32 % 22 % Shell (1) 15 % 10 % Year Ended December 31, 2013 Glencore Energy UK Ltd 34 % 25 % Shell (1) 17 % 13 % (1) Includes sales to both Shell Trading (US) Company and Shell International Trading and Shipping Limited. We believe the loss of any one purchaser would not have a material effect on our financial position or results of operations since there are numerous potential purchasers of our production. Concentration of Credit Risk Certain of our financial instruments, including cash equivalents, trade and joint interest receivables and derivative instruments, may expose us to credit risk. A significant portion of our cash is located in our foreign subsidiaries. The cash is denominated in US dollars and invested in highly liquid money market funds and short term deposits with original maturities of three months or less at the time of purchase. Although our cash and cash equivalents are deposited with major international banks and financial institutions, concentrations of cash in certain foreign locations may increase credit risk. We monitor the creditworthiness of the banks and financial institutions with which we invest and review the securities underlying our investment accounts. We believe that losses from nonperformance are unlikely to occur; however, we are not able to predict sudden changes in creditworthiness. Our accounts receivable result from sales of crude oil, natural gas and NGL production, and joint interest billings to our partners for their share of expenses on joint venture projects for which we are the operator. Joint venture projects, especially in deepwater, can be very capital cost intensive. Thus the receivables from our joint venture partners can become significant. Our accounts receivable reflect a broad national and international customer base, which limits our exposure to concentrations of credit risk. The majority of these receivables have payment terms of 30 days or less . We continually monitor the creditworthiness of the counterparties, some of which are not as creditworthy as we are and may experience liquidity problems. We have obtained credit enhancements from some parties in the way of parental guarantees or letters of credit, including our largest crude oil purchaser. However, we do not have all of our trade credit or joint interest receivables protected through guarantees or credit support. Nonperformance by a trade creditor or joint venture partner could result in losses. Our hedging activity may increase our counterparty credit risk, especially during periods of falling commodity prices. We conduct our hedging activities with a diverse group of investment grade major banks and market participants. We monitor the creditworthiness of our hedge counterparties, and our internal hedge policies provide for mark-to-market exposure limits. We use master agreements which allow us, in the event of default, to elect early termination of all contracts with the defaulting counterparty. If we choose to elect early termination, all asset and liability positions with the defaulting counterparty would be “net settled” at the time of election. |
Additional Shareholders' Equity
Additional Shareholders' Equity Information | 12 Months Ended |
Dec. 31, 2015 | |
Additional Shareholders' Equity Information [Abstract] | |
Additional Shareholders' Equity Information | Note 17. Additional Shareholders’ Equity Information Equity Offerings On March 3, 2015, we closed an underwritten public offering of 21 million shares of common stock, par value $0.01 per share, at a price of $47.50 per share. In addition, on March 25, 2015, we completed the issuance of an additional 3.15 million 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 offering expenses). We used approximately $150 million of the net proceeds to repay outstanding indebtedness under our revolving credit facility and the remainder was used for general corporate purposes, including the funding of our capital investment program. Activity in shares of our common stock and treasury stock was as follows: Year Ended December 31, 2015 2014 Common Stock Shares Issued Shares, Beginning of Period 402,329,325 399,841,717 Exercise of Common Stock Options 343,145 1,459,490 Restricted Stock Awards, Net of Forfeitures 1,847,802 1,028,118 Public Equity Offering 24,150,000 — Shares Exchanged in Rosetta Merger 41,048,240 — Shares, End of Period 469,718,512 402,329,325 Treasury Stock Shares, Beginning of Period 37,635,890 37,600,051 Shares Received From Employees in Payment of Withholding Taxes Due on Vesting of Shares of Restricted Stock 490,744 254,888 Rabbi Trust Shares Distributed and/or Sold (201,009 ) (219,049 ) Shares, End of Period 37,925,625 37,635,890 Accumulated other comprehensive loss in the shareholders’ equity section of the balance sheet included: Accumulated Other Comprehensive Loss (millions) Interest Rate Cash Flow Hedges Pension- Related and Other Total December 31, 2012 $ (25 ) $ (88 ) $ (113 ) Realized Amounts Reclassified Into Earnings 1 12 13 Unrealized Change in Fair Value — (17 ) (17 ) December 31, 2013 (24 ) (93 ) (117 ) Realized Amounts Reclassified Into Earnings 1 11 12 Unrealized Change in Fair Value — 15 15 December 31, 2014 (23 ) (67 ) (90 ) Realized Amounts Reclassified Into Earnings 1 62 63 Unrealized Change in Fair Value — (6 ) (6 ) December 31, 2015 $ (22 ) $ (11 ) $ (33 ) All amounts in the table above are reported net of tax, using an effective income tax rate of 35% . AOCL at December 31, 2015 included deferred losses of $22 million , net of tax, related to interest rate derivative instruments. This amount will be reclassified to earnings as an adjustment to interest expense over the terms of our senior notes due March 2041. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 18. Commitments and Contingencies 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. Colorado Air Matter In April 2015, we entered into a joint consent decree (Consent Decree) with the US Environmental Protection Agency, US Department of Justice, and State of Colorado to improve emission control systems at a number of our condensate storage tanks that are part of our upstream oil and natural gas operations within the Non-Attainment Area of the DJ Basin. The Consent Decree was entered by the Court on June 2, 2015. The Consent Decree, which alleges violations of the Colorado Air Pollution Prevention and Control Act and Colorado’s federal approved State Implementation Plan, specifically Colorado Air Quality Control Commission Regulation Number 7, requires us to perform certain injunctive relief activities to complete mitigation projects and supplemental environmental projects (SEP), and pay a civil penalty. Costs associated with the settlement consist of $4.95 million in civil penalties, $4.5 million in mitigation projects, and $4 million in SEPs. Costs associated with the injunctive relief are not yet precisely quantifiable as they will be determined in accordance with the outcome of evaluations on the adequate design, operation, and maintenance of certain aspects of tank systems to handle potential peak instantaneous vapor flow rates between now and mid-2017. Compliance with the Consent Decree could result in the temporary shut in or permanent plugging and abandonment of certain wells and associated tank batteries. The Consent Decree sets forth a detailed compliance schedule with deadlines for achievement of milestones through early 2019. The Consent Decree contains additional obligations for ongoing inspection and monitoring beyond that which is required under existing Colorado regulations. Inspection and monitoring findings may influence decisions to temporarily shut in or permanently plug and abandon wells and associated tank batteries. We have concluded that the penalties, injunctive relief, and mitigation expenditures that resulted from this settlement did not have, and based on currently available information will not have, a material adverse effect on our financial position, results of operations or cash flows. Colorado Air Compliance Order on Consent In December 2015, we received a proposed Compliance Order on Consent (COC) from the Colorado Department of Public Health and Environment's Air Pollution Control Division to resolve allegations of noncompliance associated with certain engines subject to various General Permit 02 conditions and/or individual permit conditions as well as certain emission control devices subject to various individual permit conditions. The COC, which provides for an opportunity to further discuss the offer of settlement, has not yet been executed. At present, the COC seeks payment of a reduced penalty of $247,625 and provides the opportunity to mitigate up to 80% of the reduced penalty by pursuing a SEP or SEPs. Given the inherent uncertainty in administrative actions of this nature, we are unable to predict the ultimate outcome of this action at this time. However, we believe that the resolution of these proceedings through settlement or adverse judgment will not have a material adverse effect on our financial position, results of operations or cash flows. 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 December 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. Due to low natural gas prices, the CONSOL Carried Cost Obligation was suspended from the end of 2011 until February 28, 2014. We began funding a portion of CONSOL's working interest share of certain drilling and completion costs as of March 1, 2014; however, the funding was suspended again in November 2014 due to lower natural gas prices. Based on the December 31, 2015 NYMEX Henry Hub natural gas price curve, we forecast the CONSOL Carried Cost Obligation will be suspended in 2016. Marcellus Shale Firm Transportation Agreements During 2014, we signed precedent agreements for firm transportation (the Agreements) to flow approximately 320 MMBtu per day of our Marcellus Shale natural gas production to various markets outside of the Marcellus Basin. The Agreements are for firm transportation services on new pipeline projects to be constructed by, and connecting to, existing and new interstate pipeline systems. The pipeline projects are expected to be complete and operational in 2017 and 2018. Our financial commitment for these Agreements is approximately $1.5 billion, undiscounted, over a 15 -year period. Final agreements are subject to various conditions, including regulatory approval of the pipeline projects. The commitment is included in the table below. Non-Cancelable Leases and Other Commitments We hold leases and other commitments for drilling rigs, buildings, equipment and other property. Rental expense for office buildings and oil and gas operations equipment was $84 million in 2015 , $69 million in 2014 , and $50 million in 2013 . Minimum commitments as of December 31, 2015 consist of the following: (millions) Drilling, Equipment, and Purchase Obligations Transportation and Gathering Obligations Operating Lease Obligations Capital Lease and Other Obligations (1) Total 2016 $ 291 $ 217 $ 42 $ 76 $ 626 2017 167 248 44 81 540 2018 22 314 39 79 454 2019 16 305 26 50 397 2020 10 270 26 47 353 2021 and Thereafter 9 1,816 168 179 2,172 Total $ 515 $ 3,170 $ 345 $ 512 $ 4,542 (1) Annual lease payments, net to our interest, exclude regular maintenance and operational costs. See Note 10. Long-Term Debt . |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation Accounting policies used by us and our subsidiaries conform to US GAAP. Significant policies are discussed below. Our consolidated accounts include our accounts and the accounts of our wholly-owned subsidiaries. We use the equity method of accounting for investments in entities that we do not control but over which we exert significant influence. We carry equity method investments at our share of net assets of the equity investees plus our loans and advances. Differences in the basis of the investment and the separate net asset value of the investee, if any, are amortized into income over the remaining useful life of the underlying assets. See Note 7. Equity Method Investments . All significant intercompany balances and transactions have been eliminated upon consolidation. |
Use of Estimates | Use of 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. Estimated quantities of crude oil, natural gas and NGL reserves are the most significant of our estimates. All the reserves data included in this Form 10-K are estimates. Reservoir engineering is a subjective process of estimating underground accumulations of crude oil, natural gas and NGLs. There are numerous uncertainties inherent in estimating quantities of proved crude oil, natural gas and NGL reserves. The accuracy of any reserves estimate is a function of the quality of available data and of engineering and geological interpretation and judgment. As a result, reserves estimates may be different from the quantities of crude oil, natural gas and NGLs that are ultimately recovered. Qualified petroleum engineers in our Houston and Denver offices prepare all reserves estimates for our different geographical regions. These reserves estimates are reviewed and approved by senior engineering staff and division management with final approval by the Senior Vice President – Corporate Development and certain members of senior management. See Supplemental Oil and Gas Information (Unaudited). Other items subject to estimates and assumptions include the carrying amounts of inventory, property, plant and equipment, goodwill and asset retirement obligations, valuation allowances for receivables and deferred income tax assets, and valuation of derivative instruments, among others. Management evaluates estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic and commodity price environment. The volatility of commodity prices results in increased uncertainty inherent in such estimates and assumptions. Further declines in commodity prices could result in a reduction in our fair value estimates and cause us to perform analyses to determine if our oil and gas properties are impaired. As future commodity prices cannot be determined accurately, actual results could differ significantly from our estimates. See Supplemental Oil and Gas Information (Unaudited). |
Reclassification | Reclassification Certain reclassifications have been made to the 2014 and 2013 consolidated financial statements to conform to the 2015 presentation. These reclassifications were not material to the financial statements. |
Fair Value Measurements | Fair Value Measurements Fair value measurements are based on a hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three levels. The fair value hierarchy is as follows: • Level 1 measurements are fair value measurements which use quoted market prices (unadjusted) in active markets for identical assets or liabilities. • 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. • Level 3 measurements are fair value measurements which use unobservable inputs. The fair value hierarchy gives the highest priority to Level 1 measurements and the lowest priority to Level 3 measurements. We use Level 1 inputs when available as Level 1 inputs generally provide the most reliable evidence of fair value. See Note 13. Fair Value Measurements and Disclosures . |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include unrestricted cash on hand and investments with original maturities of three months or less at the time of purchase. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts We routinely assess the recoverability of all material trade and other receivables to determine their collectibility. We accrue a reserve on a receivable when, based on management’s judgment, it is probable that a receivable will not be collected and the amount of such reserve may be reasonably estimated. |
Inventories | Inventories Inventories consist primarily of tubular goods and production equipment used in our oil and gas operations, and crude oil produced but not yet sold. Materials and supplies inventories are stated at the lower of average cost or market. The cost of crude oil inventory includes production costs and DD&A of oil and gas properties. |
Property, Plant and Equipment | Property, Plant and Equipment Significant accounting policies for our property, plant and equipment are as follows: Successful Efforts Method We account for crude oil and natural gas properties under the successful efforts method of accounting. Under this method, costs to acquire mineral interests in crude oil and natural gas properties, drill and equip exploratory wells that find proved reserves, and drill and equip development wells are capitalized. Capitalized costs of producing crude oil and natural gas properties, along with support equipment and facilities, are amortized to expense by the unit-of-production method based on proved crude oil, natural gas and NGL reserves on a field-by-field basis, as estimated by our qualified petroleum engineers. Our policy is to use quarter-end reserves and add back current period production to compute quarterly DD&A expense. Costs of certain gathering facilities or processing plants serving a number of properties or used for third-party processing are depreciated using the straight-line method over the useful lives of the assets ranging from three to thirty years. Upon sale or retirement of depreciable or depletable property, the cost and related accumulated DD&A are eliminated from the accounts and the resulting gain or loss is recognized. Repairs and maintenance are expensed as incurred. Proved Property Impairment We review individually significant proved oil and gas properties and other long-lived assets for impairment at least semi-annually, at year-end and mid-year, or quarterly when events and circumstances indicate a decline in the recoverability of the carrying values of such properties, such as a negative revision of reserves estimates or sustained decrease in commodity prices. We estimate future cash flows expected in connection with the properties and compare such future cash flows to the carrying amount of the properties to determine if the carrying amount is recoverable. When the carrying amount of a property exceeds its estimated undiscounted future cash flows, the carrying amount is reduced to estimated fair value. Fair value may be estimated using comparable market data, a discounted cash flow method, or a combination of the two. In the discounted cash flow method, estimated future cash flows are based on management’s expectations for the future and include estimates of future crude oil and natural gas production, commodity prices based on published forward commodity price curves or contract prices as of the date of the estimate, operating and development costs, and a risk-adjusted discount rate. We recorded proved property impairment charges in 2015 , 2014 , and 2013 . It is likely that other proved oil and gas properties could become impaired in the future due to commodity price declines and/or field performance. See Note 5. Asset Impairments . Unproved Property Impairment Our unproved properties consist of leasehold costs and allocated value to probable and possible reserves from acquisitions. We assess individually significant unproved properties for impairment on a quarterly basis and recognize a loss at the time of impairment by providing an impairment allowance. In determining whether a significant unproved property is impaired we consider numerous factors including, but not limited to, current exploration plans, favorable or unfavorable exploration activity on the property being evaluated and/or adjacent properties, our geologists' evaluation of the property, and the remaining months in the lease term for the property. When we have allocated fair value to an unproved property as the result of a transaction accounted for as a business combination, we use a future cash flow analysis to assess the unproved property for impairment. Cash flows used in the impairment analysis are determined based on management’s estimates of crude oil, natural gas and NGL reserves, future commodity prices and future costs to produce the reserves. Cash flow estimates related to probable and possible reserves are reduced by additional risk-weighting factors. Other individually insignificant unproved properties are amortized on a composite method based on our experience of successful drilling and average holding period. It is reasonably possible that unproved oil and gas properties could become impaired in the future if commodity prices decline. See Note 5. Asset Impairments . Properties Acquired in Business Combinations When sufficient market data is not available, we determine the fair values of proved and unproved properties acquired in transactions accounted for as business combinations by preparing our own estimates of cash flows from the production of crude oil, natural gas and NGL reserves. We estimate future prices to apply to the estimated reserves quantities acquired, and estimate future operating and development costs, to arrive at estimates of future net cash flows. For the fair value assigned to proved reserves, future net cash flows are discounted using a market-based weighted average cost of capital rate determined appropriate at the time of the business combination. To compensate for the inherent risk of estimating and valuing unproved reserves, discounted future net cash flows of probable and possible reserves are reduced by additional risk-weighting factors. Assets Held for Sale We occasionally market non-core oil and gas properties. At the end of each reporting period, we evaluate our properties being marketed to determine whether any should be reclassified as held for sale. The held for sale criteria include a commitment to a plan to sell; the asset is available for immediate sale; an active program to locate a buyer exists; the sale of the asset is probable and expected to be completed within one year; the asset is being actively marketed for sale; and it is unlikely that significant changes to the plan will be made. If each of these criteria is met, the property is reclassified as held for sale in our consolidated balance sheets. See Note 3. Merger, Acquisitions and Divestitures . Exploration Costs Geological and geophysical costs, delay rentals, amortization of unproved leasehold costs, and costs to drill exploratory wells that do not find proved reserves are expensed as oil and gas exploration. We carry the costs of an exploratory well as an asset if the well finds a sufficient quantity of reserves to justify its capitalization as a producing well and as long as we are making sufficient progress assessing the reserves and the economic and operating viability of the project. For certain capital-intensive deepwater Gulf of Mexico or international projects, it may take us more than one year to evaluate the future potential of the exploratory well and make a determination of its economic viability. Our ability to move forward on a project may be dependent on gaining access to transportation or processing facilities or obtaining permits and government or partner approval, the timing of which is beyond our control. In such cases, exploratory well costs remain suspended as long as we are actively pursuing access to necessary facilities and access to such permits and approvals and believe they will be obtained. We assess the status of suspended exploratory well costs on a quarterly basis. See Note 6. Capitalized Exploratory Well Costs . Other Property Other property includes automobiles, trucks, airplanes, office furniture, computer equipment and other fixed assets such as buildings and leasehold improvements. These items are recorded at cost and are depreciated on the straight-line method based on expected lives of the individual assets or group of assets, which range from 3 to 30 years . Capitalization of Interest We capitalize interest costs associated with the development and construction of significant properties or projects to bring them to a condition and location necessary for their intended use, which for crude oil and natural gas assets is at first production from the field. Interest is capitalized using an interest rate equivalent to the weighted average rate we pay on long-term debt, including our unsecured revolving credit facility (Credit Facility) and bonds. Capitalized interest is included in the cost of oil and gas assets and amortized with other costs on a unit-of-production basis. Capitalized interest totaled $144 million in 2015 , $116 million in 2014 , and $121 million in 2013 . Asset Retirement Obligations Asset retirement obligations consist of estimated costs of dismantlement, removal, site reclamation and similar activities associated with our oil and gas properties. We recognize the fair value of a liability for an ARO in the period in which it is incurred when we have an existing legal obligation associated with the retirement of our oil and gas properties that can reasonably be estimated, with the associated asset retirement cost capitalized as part of the carrying cost of the oil and gas asset. The asset retirement cost is recorded at estimated fair value, measured by reference to the expected future cash outflows required to satisfy the retirement obligation discounted at our credit-adjusted risk-free rate. After initial recording, the liability is increased for the passage of time, with the increase being reflected as accretion expense and included in our DD&A expense in the statement of operations. Subsequent adjustments in the cost estimate are reflected in the liability and the amounts continue to be amortized over the useful life of the related long-lived asset. |
Goodwill | Goodwill Goodwill represents the excess of the cost of an acquired entity over the net amounts assigned to assets acquired and liabilities assumed. Goodwill is subject to annual impairment testing in December (or more frequently as circumstances dictate). Noble has allocated goodwill to the US reporting unit. As of December 31, 2015, our goodwill was fully impaired. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities All derivative instruments (including certain derivative instruments embedded in other contracts) are recorded in our consolidated balance sheets as either an asset or liability and measured at fair value. We account for our commodity derivative instruments using mark-to-market accounting and recognize all gains and losses in earnings during the period in which they occur. Our consolidated statements of cash flows includes the non-cash portion of gain and loss on commodity derivative instruments, which represented the difference between the total gain and loss on commodity derivative instruments and the cash received or paid on settlements of commodity derivative instruments during the period. We offset the fair value amounts recognized for derivative instruments and the fair value amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral. The cash collateral (commonly referred to as a “margin”) must arise from derivative instruments recognized at fair value that are executed with the same counterparty under a master arrangement with netting clauses. |
Share-Based Compensation | Stock-Based Compensation Stock options and other stock-based compensation issued to employees and directors are recorded at grant-date fair value. Expense is recognized on a straight-line basis over the employee’s and director’s requisite service period (generally the vesting period of the award) in the consolidated statements of operations. |
Pension and Other Postretirement Benefit Plans | Pension and Other Postretirement Benefit Plans We recognize the funded status (the difference between the fair value of plan assets and the projected benefit obligation) of our defined benefit pension, restoration and other postretirement benefit plans in the consolidated balance sheets, with a corresponding adjustment to AOCL, net of tax. The amount remaining in AOCL at December 31, 2015 represents unrecognized net actuarial loss and unrecognized prior service cost related to our restoration plan. These amounts are currently being recognized as net periodic benefit cost pursuant to our historical accounting policy for amortizing such amounts. Any actuarial gains and losses that arise during the plan year, but which are not required to be recognized as net periodic benefit cost in the same period, are recognized as a component of AOCL. In third quarter 2015, we completed the process of terminating our noncontributory, tax-qualified defined benefit pension plan through the purchase of annuities for the remaining participants. As a result, we reclassified all remaining unamortized prior service cost and actuarial losses relating to the pension plan from AOCL to earnings. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized when items of income and expense are recognized in the financial statements in different periods than when recognized in the applicable tax return. Deferred tax assets arise when expenses are recognized in the financial statements before the tax return or when income items are recognized in the tax return prior to the financial statements. Deferred tax assets also arise when operating losses or tax credits are available to offset tax payments due in future years. Deferred tax liabilities arise when income items are recognized in the financial statements before the tax returns or when expenses are recognized in the tax return prior to the financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the date when the change in the tax rate was enacted. In addition, we provide a deferred tax liability for the US and foreign tax rate differences for the future additional US tax liability on accumulated undistributed foreign earnings of our foreign subsidiaries, net of estimated foreign tax credits. |
Treasury Stock | Treasury Stock We record treasury stock purchases at cost, which includes incremental direct transaction costs. Amounts are recorded as reductions in shareholders’ equity in the consolidated balance sheets. |
Revenue Recognition and Imbalances | Revenue Recognition and Imbalances We record revenues from the sales of crude oil, natural gas and NGLs when the product is delivered at a fixed or determinable price, title has transferred and collectibility is reasonably assured. When we have an interest with other producers in properties from which natural gas is produced, we use the entitlements method to account for any imbalances. Imbalances occur when we sell more or less product than we are entitled to under our ownership percentage. Revenue is recognized only on the entitlement percentage of volumes sold. Any amount that we sell in excess of our entitlement is treated as a liability and is not recognized as revenue. Any amount of entitlement in excess of the amount we sell is recognized as revenue and a receivable is accrued. |
Basic and Diluted Earnings (Loss) Per Share | Basic and Diluted Earnings (Loss) Per Share Basic earnings (loss) per share (EPS) of our common stock is computed on the basis of the weighted average number of shares outstanding during each period. The diluted EPS of our common stock includes the effect of outstanding common stock equivalents such as stock options, shares of restricted stock, and/or shares of our stock held in a rabbi trust, except in periods in which there is a net loss. On April 22, 2013, Noble Energy’s Board of Directors approved a 2 -for-1 split of its common stock to be effected in the form of a stock dividend. The stock dividend was distributed on May 28, 2013 to shareholders of record as of May 14, 2013. Earnings per share and common shares outstanding are reported giving retrospective effect to the common stock split. |
Contingencies | Contingencies We are subject to legal proceedings, claims and liabilities that arise in the ordinary course of business. We accrue for losses associated with legal claims when such losses are considered probable and the amounts can be reasonably estimated. See Note 18. Commitments and Contingencies . We self-insure the medical and dental coverage provided to certain employees, and the deductibles for workers’ compensation, automobile liability and general liability coverage. Liabilities are accrued for self-insured claims, or when estimated losses exceed coverage limits, and when sufficient information is available to reasonably estimate the amount of the loss. |
Foreign Currency | Foreign Currency The US dollar is considered the functional currency for each of our international operations. Transactions that are completed in foreign currencies are remeasured into US dollars and recorded in the financial statements at prevailing foreign exchange rates. Transaction gains or losses are included in other non-operating (income) expense, net in the consolidated statements of operations. |
Segment Information | Segment Information Accounting policies for geographical segments are the same as those described above. Transfers between segments are accounted for at market value. We do not consider interest income and expense or income tax benefit or expense in our evaluation of the performance of geographical segments. |
Changes in Shareholders' Equity | Changes in Shareholders’ Equity On April 28, 2015, our shareholders voted to approve an amendment to the Company’s Certificate of Incorporation to increase the number of authorized shares of our common stock from 500 million to 1 billion shares. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Income Taxes In November 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2015-17 (ASU 2015-17): Income Taxes (Topic 940) , effective for annual and interim reporting periods beginning after December 15, 2016, with early adoption permitted. ASU 2015-17 requires that all deferred tax liabilities and assets, as well as any related valuation allowance, be classified in the balance sheet as noncurrent. This guidance may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. We elected to early adopt ASU 2015-17 as of December 31, 2015 with prospective application. See Note 10. Income Taxes. Business Combinations In September 2015, the FASB issued Accounting Standards Update No. 2015-16 (ASU 2015-16): Business Combinations (Topic 805), effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period, to simplify the accounting for measurement-period adjustments for an acquirer in a business combination. ASU 2015-16 requires an acquirer to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The acquirer is required to adjust its financial statements for the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts calculated as if the accounting had been completed at the acquisition date. We are currently evaluating the provisions of ASU 2015-16 and assessing the impact, if any, it may have on our financial position and results of operations. Inventory In July 2015, the FASB issued Accounting Standards Update No. 2015-11 (ASU 2015-11): Simplifying the Measurement of Inventory , effective for annual and interim periods beginning after December 15, 2016. ASU 2015-11 changes the inventory measurement principle for entities using the first-in, first out (FIFO) or average cost methods. For entities utilizing one of these methods, the inventory measurement principle will change from lower of cost or market to the lower of cost and net realizable value. We follow the average cost method and are currently evaluating the provisions of ASU 2015-11 and assessing the impact, if any, it may have on our financial position and results of operations. Debt Issuance Costs In April 2015, the 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 all prior periods presented in the financial statements beginning in first quarter 2016 and is only expected to impact the presentation of our consolidated balance sheet. In August 2015, the FASB issued ASU 2015-15 to specifically address the presentation and subsequent measurement of debt issuance costs related to line-of-credit arrangements. ASU 2015-15 allows entities to defer and present debt issuance costs related to line-of-credit arrangements as an asset and amortize the costs ratably over the term of the line-of-credit arrangement. We elected to early adopt ASU 2015-03 as of December 31, 2015 and have applied the new guidance to debt issuance costs related to our senior notes. Debt issuance costs related to our Credit Facility will continue to be presented as an asset and amortized over the term of the Credit Facility. As of December 31, 2015 and 2014, we had $12 million and $15 million of capitalized, unamortized debt issuance costs, respectively, related to our Credit Facility included in other noncurrent assets in our consolidated balance sheet. See Note 10. Long-Term Debt . Consolidation 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. Revenue Recognition 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. Initially, the amendments in ASU 2014-09 were effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, and early application was not permitted. In August 2015, the FASB agreed to give companies an extra year to comply with the new standard through the issuance of ASU 2015-14. The standard will be effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. We are currently evaluating the provisions of ASU 2014-09 and implementation guidance to determine the impact, if any, it may have on our financial position and results of operations. |
Additional Financial Statemen28
Additional Financial Statement Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Additional Financial Statement Information [Abstract] | |
Statement of Operations Information | Additional statements of operations information is as follows: Year Ended December 31, (millions) 2015 2014 2013 Production Expense Lease Operating Expense $ 563 $ 593 $ 524 Production and Ad Valorem Taxes 127 184 188 Transportation Expense 272 170 132 Total $ 962 $ 947 $ 844 Other Operating Expense, Net Midstream Gathering and Processing (Income) Expense, Net $ 9 $ 11 $ 6 Corporate Restructuring Expense (1) 51 — — Stacked Drilling Rig Expense (2) 30 — — Pension Plan Expense (3) 88 — — Rosetta Merger Expense (4) 81 — — (Gain) Loss on Divestitures — (73 ) (36 ) Inventory Adjustment (5) 20 — — Other, Net 37 38 43 Total $ 316 $ (24 ) $ 13 Other Non-Operating (Income) Expense, Net Deferred Compensation (Income) Expense (6) $ (12 ) $ (25 ) $ 26 Other (Income) Expense, Net (3 ) (1 ) (5 ) Total $ (15 ) $ (26 ) $ 21 (1) Amount represents expenses associated with the relocation of our Ardmore, Oklahoma office to our corporate headquarters in Houston and other organizational activities. (2) Amount represents the day rate cost associated with drilling rigs under contract, but not currently being utilized in our US onshore drilling programs. (3) Amount includes reclassification of the actuarial loss from AOCL related to the re-measurement and termination of our defined benefit pension plan to net income (loss). (4) Amount represents expenses associated with the completion of the Rosetta Merger. See Note 3. Merger, Acquisitions and Divestitures . (5) Amount represents lower of cost or market adjustment to materials and supplies inventory. See Note 13. Fair Value Measurements . (6) Amounts represent increases (decreases) in the fair values of shares of our common stock held in a rabbi trust and mutual funds. |
Balance Sheet Information Table | Amount represents expenses associated with the relocation of our Ardmore, Oklahoma office to our corporate headquarters in Houston and other organizational activities. (2) Amount represents the day rate cost associated with drilling rigs under contract, but not currently being utilized in our US onshore drilling programs. (3) Amount includes reclassification of the actuarial loss from AOCL related to the re-measurement and termination of our defined benefit pension plan to net income (loss). (4) Amount represents expenses associated with the completion of the Rosetta Merger. See Note 3. Merger, Acquisitions and Divestitures . (5) Amount represents lower of cost or market adjustment to materials and supplies inventory. See Note 13. Fair Value Measurements . (6) Amounts represent increases (decreases) in the fair values of shares of our common stock held in a rabbi trust and mutual funds. Additional balance sheet information is as follows: December 31, (millions) 2015 2014 Accounts Receivable, Net Commodity Sales $ 298 $ 405 Joint Interest Billings 20 297 Other 151 171 Allowance for Doubtful Accounts (19 ) (16 ) Total $ 450 $ 857 Other Current Assets Inventories, Materials and Supplies $ 92 $ 81 Inventories, Crude Oil 23 24 Assets Held for Sale (1) 67 180 Prepaid Expenses and Other Assets, Current 34 40 Total $ 216 $ 325 Other Noncurrent Assets Equity Method Investments $ 453 $ 325 Mutual Fund Investments 90 111 Commodity Derivative Assets, Noncurrent 10 180 Other Assets, Noncurrent 67 64 Total $ 620 $ 680 Other Current Liabilities Production and Ad Valorem Taxes $ 166 $ 110 Income Taxes Payable 86 180 Deferred Income Taxes, Current — 158 Asset Retirement Obligations, Current 128 81 Accrued Benefit Costs, Current 3 125 Interest Payable 83 70 Current Portion of Capital Lease and Other Obligations 53 68 Other Liabilities, Current 158 152 Total $ 677 $ 944 Other Noncurrent Liabilities Deferred Compensation Liabilities, Noncurrent $ 217 $ 218 Asset Retirement Obligations, Noncurrent 861 670 Accrued Benefit Costs, Noncurrent 25 24 Other Liabilities, Noncurrent 116 175 Total $ 1,219 $ 1,087 (1) Assets held for sale at December 31, 2015 include the Karish and Tanin natural gas discoveries, offshore Israel. |
Supplemental Cash Flow Disclosure | Supplemental statements of cash flow information is as follows: Year Ended December 31, (millions) 2015 2014 2013 Cash Paid During the Year For Interest, Net of Amount Capitalized $ 260 $ 189 $ 137 Income Taxes Paid, Net 202 150 165 Non-Cash Financing and Investing Activities Increase in Capital Lease and Other Obligations 55 110 96 |
Merger, Acquisitions and Dive29
Merger, Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table sets forth our preliminary purchase price allocation which was based on fair values of assets acquired and liabilities assumed at the merger date, July 20, 2015, with the excess of the purchase price over the estimated fair value of the identifiable net assets acquired recorded as goodwill: (in millions, except stock price) Shares of Noble Energy common stock issued to Rosetta shareholders 41 Noble Energy common stock price on July 20, 2015 $ 36.97 Fair value of common stock issued $ 1,518 Plus: fair value of Rosetta's restricted stock awards and performance awards assumed 10 Plus: Rosetta stock options assumed 1 Total purchase price 1,529 Plus: liabilities assumed by Noble Energy Accounts Payable 100 Current Liabilities 37 Long-Term Deferred Tax Liability 8 Long-Term Debt 1,992 Other Long Term Liabilities 23 Asset Retirement Obligation 27 Total purchase price plus liabilities assumed $ 3,716 Fair Value of Rosetta Assets Cash and Equivalents $ 61 Other Current Assets 76 Derivative Instruments 209 Oil and Gas Properties: Proved Properties 1,613 Undeveloped Leaseholds 1,355 Gathering and Processing Assets 207 Asset Retirement Obligation 27 Other Property Plant and Equipment 5 Implied Goodwill (1) 163 Total Asset Value $ 3,716 |
Business Acquisition, Pro Forma Information | The pro forma condensed combined financial information has been included for comparative purposes and is not necessarily indicative of the results that might have actually occurred had the Rosetta Merger taken place on January 1, 2014; furthermore, the financial information is not intended to be a projection of future results. Year Ended December 31, (in millions, except per share amounts) 2015 2014 Revenues $ 3,428 $ 6,112 Net Income (Loss) $ (2,393 ) $ 1,607 Earnings (Loss) Per Share Basic $ (5.64 ) $ 4.01 Diluted $ (5.64 ) $ 3.94 |
Schedule of Disposal Groups, Gain on Divestitures - Onshore US | The information regarding the assets sold is as follows: Year Ended December 31, (millions) 2015 2014 2013 Cash Proceeds $ 151 $ 135 $ 150 Less Net Book Value of Assets Sold (156 ) (150 ) (117 ) Goodwill Allocated to Assets Sold (1) (4 ) (7 ) (8 ) Asset Retirement Obligations Associated with Assets Sold 8 48 8 Other Closing Adjustments 1 10 3 Gain on Divestitures $ — $ 36 $ 36 (1) See Note 4. Goodwill . |
Schedule of Disposal Groups, Gain on Divestitures - China | The information regarding the China assets sold is as follows: Year Ended December 31, 2014 (millions) 2014 Sales Proceeds $ 186 Less Net Book Value of Assets Sold (149 ) Other Closing Adjustments (2 ) Gain on Divestiture $ 35 |
Summary of Discontinued Operations | Summarized results of discontinued operations are as follows: Year Ended December 31, (millions) 2013 Oil and Gas Sales $ 37 Income Before Income Taxes 12 Income Tax Expense 6 Operating Income, Net of Tax 6 Gain on Sale, Net of Tax 65 Discontinued Operations, Net of Tax $ 71 |
Asset Impairments (Tables)
Asset Impairments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Asset Impairment Charges [Abstract] | |
Asset Impairment Charges Pre Tax (non-cash) | Pre-tax (non-cash) asset impairment charges were as follows: Year Ended December 31, (millions) 2015 2014 2013 Onshore US $ — $ 42 $ 39 Deepwater Gulf of Mexico 158 350 — Equatorial Guinea 339 — — Eastern Mediterranean 36 14 47 North Sea — 94 — Total $ 533 $ 500 $ 86 |
Capitalized Exploratory Well 31
Capitalized Exploratory Well Costs (Tables) | 12 Months Ended |
Dec. 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: Year Ended December 31, (millions) 2015 2014 2013 Capitalized Exploratory Well Costs, Beginning of Period $ 1,337 $ 1,301 $ 900 Additions to Capitalized Exploratory Well Costs Pending Determination of Proved Reserves 123 316 581 Reclassified to Proved Oil and Gas Properties Based on Determination of Proved Reserves or to Assets Held for Sale (1) (19 ) (196 ) (177 ) Capitalized Exploratory Well Costs Charged to Expense (2) (88 ) (84 ) (3 ) Capitalized Exploratory Well Costs, End of Period $ 1,353 $ 1,337 $ 1,301 (1) The 2015 amount relates primarily to onshore US exploration activity. The 2014 amount relates primarily to the Dantzler well (deepwater Gulf of Mexico), for which we sanctioned a development plan, and the Karish and Tanin wells (offshore Israel), which were reclassified to assets held for sale. The 2013 amount relates primarily to Gunflint (deepwater Gulf of Mexico), for which we sanctioned a development plan. (2) The 2015 amount relates primarily to northeast Nevada. After assessing its commercial viability in the current commodity price environment, we elected to discontinue our exploration efforts. The 2014 amount relates to non-core onshore US exploratory well costs and the Scotia exploratory well (offshore Falkland Islands) which were determined to be non-commercial. |
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: December 31, (millions) 2015 2014 2013 Exploratory Well Costs Capitalized for a Period of One Year or Less $ 95 $ 247 $ 568 Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling 1,258 1,090 733 Balance at End of Period $ 1,353 $ 1,337 $ 1,301 Number of Projects with Exploratory Well Costs That Have Been Capitalized for a Period Greater Than One Year Since Commencement of Drilling 14 13 13 |
Aging of Exploratory Well Costs | The following table provides a further aging of those exploratory well costs that have been capitalized for a period greater than one year since the commencement of drilling as of December 31, 2015 : Suspended Since Country/Project (millions) Total 2013 - 2014 2011 - 2012 2010 & Prior Progress Deepwater Gulf of Mexico Troubadour 49 48 1 — Evaluating development scenarios for this 2013 natural gas discovery including subsea tieback to existing infrastructure. Katmai 91 91 — — Anticipate drilling an appraisal well in 2016 to test the resource potential of this 2014 crude oil discovery. Offshore Equatorial Guinea Diega (Block O) and Carmen (Block I) 233 135 45 53 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 (Block O) 177 133 44 — 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. Yolanda/Felicita 66 18 4 44 Evaluating regional development plans for these 2007/2008 condensate and natural gas discoveries. Natural gas development teams are working with the governments of Equatorial Guinea and Cameroon to evaluate natural gas monetization options and finalize data exchange agreements between the two countries. Offshore Cameroon YoYo 51 6 11 34 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 Leviathan 191 44 106 41 During 2015, the Government of Israel approved the Natural Gas Framework. We are engaged in natural gas marketing activities both for export and, since the enactment of the Natural Gas Framework, for domestic Israeli customers. We continue to refine our development concepts and are preparing to submit a Plan of Development to the Government of Israel. We also continue to pursue financing arrangements to support development. Leviathan-1 Deep 80 7 73 — 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 5 3 20 Submitted a development plan to the government to develop this 2009 natural gas discovery as a tie-in to existing infrastructure. Dolphin 1 26 3 23 — Reviewing regional development scenarios for this 2011 natural gas discovery, including a potential tieback to Leviathan. We have applied to the government for a commerciality ruling. Offshore Cyprus Cyprus 214 140 74 — During 2015, we submitted a Declaration of Commerciality and a Development Plan to the Government of Cyprus. We continue to work with the Government of Cyprus to obtain approval of the development plan and the subsequent issuance of an Exploitation License. Receiving an Exploitation License will allow us and our partners to perform the necessary engineering and design studies and progress the project to final investment decision. Other Projects less than $20 million 52 41 — 11 Continuing to drill and evaluate wells Total $ 1,258 $ 671 $ 384 $ 203 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity method investments | Equity method investments are as follows: December 31, (millions) 2015 2014 Equity Method Investments AMPCO $ 120 $ 141 Alba Plant 87 82 CONE Investments (1) 214 82 Other 32 20 Total Equity Method Investments $ 453 $ 325 (1) CONE Investments includes our investments in CONE Midstream and CONE Gathering. Other At December 31, 2015 , consolidated retained earnings included $106 million related to the undistributed earnings of equity method investees. The carrying value of our AMPCO investment was $8 million higher than the underlying net assets of the investee at December 31, 2015 . The difference is related to capitalized interest which is being amortized into earnings over the remaining useful life of the plant. Summarized, 100% combined financial information for equity method investees is as follows: December 31, (millions) 2015 2014 Balance Sheet Information Current Assets $ 343 $ 412 Noncurrent Assets 1,418 1,169 Current Liabilities 229 374 Noncurrent Liabilities 108 33 Year Ended December 31, (millions) 2015 2014 2013 Statements of Operations Information Operating Revenues $ 645 $ 1,142 $ 1,256 Operating Expenses 393 405 388 Operating Income 252 737 868 Other (Income) Net (9 ) (9 ) (14 ) Income Before Income Taxes 261 746 882 Income Tax Provision 46 172 212 Net Income $ 215 $ 574 $ 670 |
Derivative Instruments and He33
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Unsettled Derivative Instruments | Unsettled Derivative Instruments As of December 31, 2015 , we had entered into the following crude oil derivative instruments: Swaps Collars Settlement Period Type of Contract Index Bbls Per Day Weighted Average Fixed Price Weighted Average Short Put Price Weighted Average Floor Price Weighted Average Ceiling Price 1H16 (1) Swaps NYMEX WTI 17,000 $ 68.50 $ — $ — $ — 2H16 (1) Swaps NYMEX WTI 12,000 74.47 — — — 2H16 (1) Call Option (2) NYMEX WTI 5,000 — — — 54.16 2016 Swaps Dated Brent 9,000 97.96 — — — 2016 Swaps (3) (4) 6,000 90.28 — — — — 2016 Two -Way Collars NYMEX WTI 1,000 — — 60.00 70.00 2016 Three-Way Collars NYMEX WTI 6,000 — 61.00 72.50 86.37 2016 Three-Way Collars Dated Brent 8,000 — 72.50 86.25 101.79 1H17 (1) Swaps NYMEX WTI 3,000 60.12 — — — 1H17 (1) Swaps (5) Dated Brent 3,000 62.80 — — — 2H17 (1) Call Option (2) NYMEX WTI 3,000 — — — 60.12 2017 Call Option (2) NYMEX WTI 3,000 — — — 57.00 2017 Two-Way Collars NYMEX WTI 5,000 — — 40.00 54.00 (1) We traditionally enter into a hedge contract term of one year. For 2016 and 2017 we have entered into various derivative hedging arrangements with a contract term of six months resulting in non-uniform annual volumes and weighted average prices. (2) We have entered into crude oil derivative enhanced swaps with strike prices that are above the market value as of trade commencement. To effect the enhanced non-cash swap structure, we sold call options to the applicable counterparty to receive the above market terms. (3) Includes derivative instruments assumed by our subsidiary, NBL Texas, LLC, in connection with the Rosetta Merger. (4) The index for these derivative instruments is NYMEX WTI and Argus LLS indices. (5) We have entered into certain Dated Brent derivative contracts (swaptions), which give counterparties the option to extend for an additional 6-month period. Options covering a notional volume of 3,000 Bbls/d are exercisable on June 30, 2017. If the counterparties exercise all such options, the notional volume of our existing Dated Brent derivative contracts will increase by 3,000 Bbls/d at an average price of $62.80 per Bbl for each month during the period July 1, 2017 through December 31, 2017. As of December 31, 2015 , we had entered into the following natural gas derivative instruments: Swaps Collars Settlement Period Type of Contract Index MMBtu Per Day Weighted Average Fixed Price Weighted Average Short Put Price Weighted Average Floor Price Weighted Average Ceiling Price 2016 Swaps (1) NYMEX HH 40,000 $ 3.60 $ — $ — $ — 2016 Swaps (2) Houston Ship Channel 30,000 4.04 — — — 2016 Two-Way Collars NYMEX HH 30,000 — — 3.00 3.50 2016 Two-Way Collars (2) Houston Ship Channel 30,000 — — 3.50 5.60 2016 Three-Way Collars NYMEX HH 90,000 — 2.83 3.42 3.90 (1) We have entered into certain natural gas derivative contracts (swaptions), 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. (2) Includes derivative instruments assumed by our subsidiary, NBL Texas, LLC, in connection with the Rosetta Merger. |
Fair Value of Derivative Instruments | The fair values of derivative instruments in our consolidated balance sheets were as follows: Fair Value of Derivative Instruments Asset Derivative Instruments Liability Derivative Instruments December 31, December 31, December 31, December 31, Balance Sheet Location Fair Value Balance Sheet Location Fair Value Balance Sheet Location Fair Value Balance Sheet Location Fair Value (millions) Commodity Derivative Instruments Current Assets $ 582 Current Assets $ 710 Current Liabilities $ — Current Liabilities $ — Noncurrent Assets 10 Noncurrent Assets 180 Noncurrent Liabilities — Noncurrent Liabilities — Total $ 592 $ 890 $ — $ — |
Effect of derivative instruments on consolidated statement of operations | The effect of derivative instruments on our consolidated statements of operations was as follows: Year Ended December 31, (millions) 2015 2014 2013 Cash (Received) Paid in Settlement of Commodity Derivative Instruments Crude Oil $ (844 ) $ (34 ) $ 52 Natural Gas (147 ) 5 (50 ) NGLs (1) (18 ) — — Total Cash (Received) Paid in Settlement of Commodity Derivative Instruments (1,009 ) (29 ) 2 Non-cash Portion of (Gain) Loss on Commodity Derivative Instruments Crude Oil 423 (863 ) 87 Natural Gas 65 (84 ) 44 NGLs (1) 20 — — Total Non-cash Portion of (Gain) Loss on Commodity Derivative Instruments 508 (947 ) 131 (Gain) Loss on Commodity Derivative Instruments Crude Oil (421 ) (897 ) 139 Natural Gas (82 ) (79 ) (6 ) NGLs (1) 2 — — Total (Gain) Loss on Commodity Derivative Instruments $ (501 ) $ (976 ) $ 133 (1) Amounts for NGLs relate to commodity derivative instruments, acquired in the Rosetta Merger, which expired as of December 31, 2015. |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Change in Asset Retirement Obligation | Changes in asset retirement obligations were as follows: Year Ended December 31, (millions) 2015 2014 Asset Retirement Obligations, Beginning Balance $ 751 $ 586 Liabilities Incurred 67 75 Liabilities Settled (38 ) (101 ) Revision of Estimate 166 155 Accretion Expense 43 36 Asset Retirement Obligations, Ending Balance $ 989 $ 751 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Our debt consists of the following: December 31, December 31, (millions, except percentages) Debt Interest Rate Debt Interest Rate Credit Facility, due August 27, 2020 $ — — $ — — Capital Lease and Other Obligations 403 — 413 — 8.25% Senior Notes, due March 1, 2019 1,000 8.25 % 1,000 8.25 % 5.625% Senior Notes, due May 1, 2021 (1) 693 5.63 % — — % 4.15% Senior Notes, due December 15, 2021 1,000 4.15 % 1,000 4.15 % 5.875% Senior Notes, due June 1, 2022 (1) 597 5.88 % — — % 7.25% Senior Notes, due October 15, 2023 100 7.25 % 100 7.25 % 5.875% Senior Notes, due June 1, 2024 (1) 499 5.88 % — — 3.90% Senior Notes, due November 15, 2024 650 3.90 % 650 3.90 % 8.00% Senior Notes, due April 1, 2027 250 8.00 % 250 8.00 % 6.00% Senior Notes, due March 1, 2041 850 6.00 % 850 6.00 % 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 $ 7,976 $ 6,197 Unamortized Discount (24 ) (26 ) Unamortized Premium (2) 113 — Unamortized Debt Issuance Costs (36 ) (35 ) Total Debt, Net of Discount $ 8,029 $ 6,136 Less Amounts Due Within One Year Capital Lease and Other Obligations (53 ) (68 ) Long-Term Debt Due After One Year $ 7,976 $ 6,068 (1) Represents senior notes assumed in the Rosetta Merger. See Note 3. Merger, Acquisitions and Divestitures. (2) Debt premium is attributable to senior notes assumed in the Rosetta Merger. |
Annual maturities of outstanding debt | Annual Debt Maturities Annual maturities of outstanding debt, excluding capital lease payments, are as follows: (millions) Debt Principal Payments December 31, 2015 2016 $ — 2017 — 2018 — 2019 1,000 2020 — Thereafter 6,573 Total $ 7,573 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Components of Income Before Income Taxes Table | Components of income (loss) from continuing operations before income taxes are as follows: Year Ended December 31, (millions) 2015 2014 2013 Domestic $ (2,338 ) $ 282 $ 202 Foreign 119 1,428 1,142 Total $ (2,219 ) $ 1,710 $ 1,344 |
Components of Income Tax Provision Table | The income tax provision from continuing operations consists of the following: Year Ended December 31, (millions) 2015 2014 2013 Current Taxes Federal $ (1 ) $ 19 $ 21 State — 1 1 Foreign 107 208 144 Total Current 106 228 166 Deferred Taxes Federal 216 237 96 State (5 ) 13 1 Foreign (95 ) 18 174 Total Deferred 116 268 271 Total Income Tax Provision $ 222 $ 496 $ 437 Effective Tax Rate (10.0 )% 29.0 % 32.5 % |
Tax Rate Reconciliation Table | A reconciliation of the federal statutory tax rate to the effective tax rate is as follows: Year Ended December 31, (percentages) 2015 2014 2013 Federal Statutory Rate 35.0 % 35.0 % 35.0 % Effect of Earnings of Equity Method Investees 0.6 (3.3 ) (5.3 ) State Taxes, Net of Federal Benefit 0.3 0.8 0.1 Difference Between US and Foreign Rates 2.6 (14.2 ) (6.3 ) Foreign Exploration Loss 2.7 — 2.7 Change in Valuation Allowance — 1.9 3.8 Oil Profits Tax - Israel 0.1 0.2 0.3 Tax Contingency 0.4 0.1 0.4 Accumulated Undistributed Foreign Earnings (37.7 ) 8.2 — Goodwill Impairment (12.3 ) — — Other, Net (1.7 ) 0.3 1.8 Effective Rate (10.0 )% 29.0 % 32.5 % |
Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities resulted from the following: December 31, (millions) 2015 2014 Deferred Tax Assets Loss Carryforwards $ 468 $ 170 Employee Compensation and Benefits 151 149 Foreign Tax Credits — 67 Other 81 51 Total Deferred Tax Assets $ 700 $ 437 Valuation Allowance - Foreign Loss Carryforwards (206 ) (145 ) Valuation Allowance - Foreign Tax Credits — (67 ) Valuation Allowance - Capital Loss Carryforwards — (1 ) Net Deferred Tax Assets $ 494 $ 224 Deferred Tax Liabilities Mark to Market of Commodity Derivative Instruments (128 ) (209 ) Accumulated Undistributed Foreign Earnings (368 ) (141 ) Property, Plant and Equipment, Principally Due to Differences in Depreciation, Amortization, Lease Impairment and Abandonments (2,824 ) (2,548 ) Total Deferred Tax Liability $ (3,320 ) $ (2,898 ) Net Deferred Tax Liability $ (2,826 ) $ (2,674 ) |
Deferred Tax Liability Balance Sheet Classifcation | Net deferred tax liabilities were classified in the consolidated balance sheets as follows: December 31, (millions) 2015 2014 Deferred Income Tax Liability - Current (1) $ — $ (158 ) Deferred Income Tax Liability - Noncurrent (1) (2,826 ) (2,516 ) Net Deferred Tax Liability $ (2,826 ) $ (2,674 ) (1) As discussed in Note 1. Summary of Significant Accounting Policies , we have elected to early adopt and apply the presentation requirements of ASU 2015-17, Balance Sheet Classification of Deferred Taxes , as of December 31, 2015. Prior periods have not been retrospectively adjusted. |
Schedule of Unrecognized Tax Benefits | A reconciliation of our beginning and ending amounts of unrecognized tax benefits follows: (millions) Twelve Months Ended December 31, 2015 Unrecognized Tax Benefits, Beginning Balance $ 29 Additions for Tax Positions Related to Current Year — Additions for Tax Positions of Prior Years 3 Reductions for Tax Positions of Prior Years (4 ) Settlements (20 ) Unrecognized Tax Benefits, Ending Balance $ 8 |
Stock-Based and Other Compens37
Stock-Based and Other Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation [Abstract] | |
Stock-based compensation expense | We recognized total stock-based compensation expense as follows: Year Ended December 31, (millions) 2015 2014 2013 Stock-Based Compensation Expense Included in General and Administrative Expense $ 50 $ 63 $ 58 Exploration Expense and Other 36 24 22 Total Stock-Based Compensation Expense $ 86 $ 87 $ 80 Tax Benefit Recognized $ (30 ) $ (31 ) $ (28 ) |
Share-based Compensation Awards | The assumptions used in valuing stock options granted were as follows: Year Ended December 31, (weighted averages) 2015 2014 2013 Expected Term (in Years) 6.0 5.9 5.7 Expected Volatility 32.6 % 35.1 % 36.4 % Risk-Free Rate 1.4 % 1.8 % 1.1 % Expected Dividend Yield 1.2 % 1.1 % 1.2 % Weighted Average Grant-Date Fair Value $ 13.93 $ 20.31 $ 17.08 Stock option activity was as follows: Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (per share) (in years) (in millions) Outstanding at December 31, 2014 13,008,322 $ 43.98 Granted 2,714,185 47.25 Exercised (343,145 ) 23.35 Forfeited (808,350 ) 52.24 Outstanding at December 31, 2015 14,571,012 $ 44.59 5.6 $ 21 Exercisable at December 31, 2015 10,659,799 $ 41.53 4.5 $ 21 The total intrinsic value of options exercised was $7 million in 2015, $58 million in 2014, and $64 million in 2013. As of December 31, 2015 , $34 million of compensation cost related to unvested stock options granted under the Plans remained to be recognized. The cost is expected to be recognized over a weighted-average period of 1.3 years . We issue new shares of our common stock to settle option exercises. Dividends are not paid on unexercised options. Restricted Stock Awards Awards of time-vested restricted stock (shares subject to service conditions) are valued at the price of our common stock at the date of award. The fair values of market based restricted stock awards are estimated on the date of award using a Monte Carlo valuation model that uses the assumptions in the following table. The Monte Carlo model is based on random projections of stock price paths and must be repeated numerous times to achieve a probabilistic assessment. Expected volatility represents the extent to which our stock price is expected to fluctuate between now and the award’s anticipated term. We use the historical volatility of Noble Energy common stock for the three -year period ended prior to the date of award. The risk-free rate is based on a three-year period for U.S. Treasury securities as of the year ended prior to the date of award. The assumptions used in valuing market based restricted stock awards granted were as follows: Year Ended December 31, 2015 2014 Number of Simulations 500,000 500,000 Expected Volatility 30 % 30 % Risk-Free Rate 0.8 % 0.7 % Restricted stock activity was as follows: Subject to Time Vesting Subject to Market Conditions Number of Shares Weighted Average Award Date Fair Value Number of Shares Weighted Average Award Date Fair Value (per share) (per share) Outstanding at December 31, 2014 1,048,800 $ 55.68 1,518,336 $ 29.10 Awarded 1,554,002 39.57 762,786 27.30 Vested (1,464,374 ) 46.57 (1,172 ) 42.21 Forfeited (118,958 ) 51.36 (350,028 ) 28.41 Outstanding at December 31, 2015 1,019,470 $ 45.55 1,929,922 $ 28.50 |
Schedule of components for Rabbi Trust | Deferred Compensation Plans We have a non-qualified deferred compensation plan for which participant-directed investments are held in a rabbi trust and are available to satisfy the claims of our creditors in the event of bankruptcy or insolvency. Participants in that nonqualified deferred compensation plan may elect to receive distributions in either cash or shares of our common stock. Components of that rabbi trust are as follows: December 31, (millions, except share amounts) 2015 2014 Rabbi Trust Assets Mutual Fund Investments $ 63 $ 83 Noble Energy Common Stock (at Fair Value) 35 51 Total Rabbi Trust Assets $ 98 $ 134 Liability Under Related Deferred Compensation Plan $ 98 $ 134 Number of Shares of Noble Energy Common Stock Held by Rabbi Trust 872,277 1,073,286 |
Schedule of benefit obligation, plant assets and AOCL balances for pension, restoration and other postretirement benefit plans | The benefit obligations, plan assets and AOCL balances for the pension, restoration and other postretirement benefit plans are summarized below as of December 31: Retirement and Restoration Plans (1) Medical and Life Plans (millions) 2015 2014 2015 2014 Pension or Other Benefit Obligation $ (24 ) $ (363 ) $ (5 ) $ (7 ) Fair Value of Plan Assets — 242 — — Net Amount Recognized in Consolidated Balance Sheet (24 ) (121 ) (5 ) (7 ) Current Liabilities (2 ) (102 ) (1 ) (2 ) Noncurrent Liabilities (22 ) (19 ) (4 ) (5 ) Net Prior Service (Cost) Credit, Before Tax $ (15 ) $ (75 ) $ 2 $ 2 Net Gains (Losses), Before Tax (4 ) (42 ) — — Accumulated Other Comprehensive Income (Loss) $ (19 ) $ (117 ) $ 2 $ 2 (1) The retirement (pension) plan was terminated during 2015. Balances at December 31, 2015 relate to the restoration plan only. |
Fair Value Measurements and D38
Fair Value Measurements and Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measured at fair value on a 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 (millions) Quoted Prices in Active Markets (Level 1) (1) Significant Other Observable Inputs (Level 2) (1) Significant Unobservable Inputs (Level 3) (1) Adjustment (2) Fair Value Measurement December 31, 2015 Financial Assets Mutual Fund Investments $ 90 $ — $ — $ — $ 90 Commodity Derivative Instruments — 600 — (8 ) 592 Financial Liabilities Commodity Derivative Instruments — (8 ) — 8 — Portion of Deferred Compensation Liability Measured at Fair Value (98 ) — — — (98 ) 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) See Note 1. Summary of Significant Accounting Policies - Fair Value Measurements for a description of the fair value hierarchy. (2) Amount represents the impact of netting clauses 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 noncurring basis | Information about the impaired assets is as follows: Fair Value Measurements Using Description Quoted Prices in Active Markets (Level 1) (1) Significant Other Observable Inputs (Level 2) (1) Significant Unobservable Inputs (Level 3) (1) Net Book Value (2) Total Pre-tax (Non-cash) Impairment Loss (millions) Year Ended December 31, 2015 Impaired Oil and Gas Properties $ — $ — $ 752 $ 1,285 $ 533 Impaired Materials and Supplies Inventory — — 61 81 20 Year Ended December 31, 2014 Impaired Oil and Gas Properties — — 100 600 500 Year Ended December 31, 2013 Impaired Oil and Gas Properties — — 113 199 86 (1) See Note 1. Summary of Significant Accounting Policies - Fair Value Measurements for a description of the fair value hierarchy. (2) Amount represents net book value at the date of assessment. |
Additional fair value disclosures | Fair value information regarding our debt is as follows: December 31, December 31, (millions) Carrying Amount Fair Value Carrying Amount Fair Value Long-Term Debt, Net (1) $ 7,626 $ 7,105 $ 5,758 $ 6,179 (1) Net of unamortized discount, premium and debt issuance costs and excludes capital lease and other obligations. No floating rate debt was outstanding at December 31, 2015 or December 31, 2014 . |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Earnings (Loss) Per Share | The following table summarizes the calculation of basic and diluted earnings (loss) per share: Year Ended December 31, (millions, except per share amounts) 2015 2014 2013 Income (Loss) from Continuing Operations $ (2,441 ) $ 1,214 $ 907 Earnings Adjustment from Assumed Conversion of Dilutive Shares of Common Stock in Rabbi Trust (1) — (17 ) — Income (Loss) from Continuing Operations Used for Diluted Earnings (Loss) Per Share Calculation $ (2,441 ) $ 1,197 $ 907 Weighted Average Number of Shares Outstanding, Basic (2) 402 361 359 Incremental Shares From Assumed Conversion of Dilutive Stock Options, Restricted Stock, and Shares of Common Stock in Rabbi Trust (1) — 6 4 Weighted Average Number of Shares Outstanding, Diluted 402 367 363 Earnings (Loss) from Continuing Operations Per Share, Basic $ (6.07 ) $ 3.36 $ 2.53 Earnings (Loss) from Continuing Operations Per Share, Diluted (6.07 ) 3.27 2.50 Additional Information Number of antidilutive stock options, shares of restricted stock and shares of common stock in rabbi trust excluded from calculation above 10 3 3 Weighted average option exercise price per share $ 52.39 $ 60.30 $ 53.40 (1) For the year ended December 31, 2015, all outstanding options and non-vested restricted shares have been excluded from the calculation of diluted earnings (loss) per share as Noble Energy incurred a loss from continuing operations. Therefore, inclusion of outstanding options and non-vested restricted shares in the calculation of diluted earnings (loss) per share would be anti-dilutive. Consistent with GAAP, when dilutive, deferred compensation gains or losses, net of tax, are excluded from net income while our common shares held in the rabbi trust are included in the diluted share count. For this reason, the diluted earnings (loss) per share calculation for the year ended December 31, 2014 excludes deferred compensation gains, net of tax. (2) The weighted average number of shares outstanding includes the weighted average shares of common stock issued in connection with the underwritten public offering of 24.15 million shares of Noble Energy common stock in first quarter 2015 and issued in connection with the exchange of approximately 41 million shares for all outstanding shares of Rosetta common stock on July 20, 2015. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Consolidated United States West Africa Eastern Mediterranean Other Int'l & Corporate Year Ended December 31, 2015 Revenues from Third Parties (1) $ 3,043 $ 1,961 $ 580 $ 497 $ 5 Income from Equity Method Investees 90 51 39 — — Total Revenues 3,133 2,012 619 497 5 DD&A 2,131 1,692 326 70 43 Asset Impairments 533 158 339 36 — Goodwill Impairment 779 779 — — — Gain on Commodity Derivative Instruments (501 ) (347 ) (154 ) — — Income (Loss) from Continuing Operations Before Income Taxes (2,219 ) (1,553 ) (77 ) 306 (895 ) Equity Method Investments 453 226 227 — — Additions to Long-Lived Assets 3,062 2,534 124 147 257 Goodwill at End of Year (2) — — — — — Total Assets at End of Year (3) 24,196 18,831 2,299 2,677 389 Year Ended December 31, 2014 Revenues from Third Parties (1) $ 4,931 $ 3,175 $ 1,177 $ 479 $ 100 Income from Equity Method Investees 170 9 161 — — Total Revenues 5,101 3,184 1,338 479 100 DD&A 1,759 1,318 299 63 79 Asset Impairments 500 392 — 14 94 Gain on Divestitures (73 ) (34 ) — — (39 ) Gain on Commodity Derivative Instruments (976 ) (604 ) (372 ) — — Income (Loss) from Continuing Operations Before Income Taxes 1,710 1,150 1,222 284 (946 ) Equity Method Investments 325 82 223 — 20 Additions to Long-Lived Assets 5,152 4,389 261 201 301 Goodwill at End of Year (2) 620 620 — — — Total Assets at End of Year (3) 22,518 16,365 2,763 2,806 584 Year Ended December 31, 2013 Revenues from Third Parties (1) $ 4,809 $ 3,004 $ 1,252 $ 391 $ 162 Income from Equity Method Investees 206 — 206 — — Total Revenues 5,015 3,004 1,458 391 162 DD&A 1,568 1,117 261 97 93 Asset Impairments 86 39 — 47 — Gain on Divestitures (36 ) (36 ) — — — Loss on Commodity Derivative Instruments 133 67 66 — — Income (Loss) from Continuing Operations Before Income Taxes 1,344 790 936 162 (544 ) Equity Method Investments 437 184 234 — 19 Additions to Long-Lived Assets 4,534 3,475 453 420 186 Goodwill at End of Year (2) 627 627 — — — Total Assets at End of Year (3) 19,598 13,094 3,199 2,753 552 (1) Revenues from third parties for all foreign countries, in total, were $1.1 billion in 2015 and $1.8 billion in both 2014 and 2013 . (2) As of December 31, 2015, our goodwill was fully impaired. See Note 4. Goodwill. (3) Long-lived assets located in all foreign countries, in total, were $3.9 billion , $4.4 billion , and $4.5 billion at December 31, 2015 , 2014 , and 2013 , respectively. |
Concentration of Risk (Tables)
Concentration of Risk (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Concentration of Risk [Abstract] | |
Schedules of Concentration of Risk, by Risk Factor | The largest single non-affiliated purchasers of our production were as follows: Percentage of Crude Oil Sales Percentage of Total Oil, Gas & NGL Sales Year Ended December 31, 2015 Glencore Energy UK Ltd 30 % 18 % Shell (1) 18 % 11 % Year Ended December 31, 2014 Glencore Energy UK Ltd 32 % 22 % Shell (1) 15 % 10 % Year Ended December 31, 2013 Glencore Energy UK Ltd 34 % 25 % Shell (1) 17 % 13 % (1) Includes sales to both Shell Trading (US) Company and Shell International Trading and Shipping Limited. |
Additional Shareholders' Equi42
Additional Shareholders' Equity Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Additional Shareholders' Equity Information [Abstract] | |
Schedule Of Activity In Shares Of Common And Treasury Stock | Activity in shares of our common stock and treasury stock was as follows: Year Ended December 31, 2015 2014 Common Stock Shares Issued Shares, Beginning of Period 402,329,325 399,841,717 Exercise of Common Stock Options 343,145 1,459,490 Restricted Stock Awards, Net of Forfeitures 1,847,802 1,028,118 Public Equity Offering 24,150,000 — Shares Exchanged in Rosetta Merger 41,048,240 — Shares, End of Period 469,718,512 402,329,325 Treasury Stock Shares, Beginning of Period 37,635,890 37,600,051 Shares Received From Employees in Payment of Withholding Taxes Due on Vesting of Shares of Restricted Stock 490,744 254,888 Rabbi Trust Shares Distributed and/or Sold (201,009 ) (219,049 ) Shares, End of Period 37,925,625 37,635,890 |
Accumulated other comprehensive income (loss) in the shareholders' equity section of the balance sheet | Accumulated other comprehensive loss in the shareholders’ equity section of the balance sheet included: Accumulated Other Comprehensive Loss (millions) Interest Rate Cash Flow Hedges Pension- Related and Other Total December 31, 2012 $ (25 ) $ (88 ) $ (113 ) Realized Amounts Reclassified Into Earnings 1 12 13 Unrealized Change in Fair Value — (17 ) (17 ) December 31, 2013 (24 ) (93 ) (117 ) Realized Amounts Reclassified Into Earnings 1 11 12 Unrealized Change in Fair Value — 15 15 December 31, 2014 (23 ) (67 ) (90 ) Realized Amounts Reclassified Into Earnings 1 62 63 Unrealized Change in Fair Value — (6 ) (6 ) December 31, 2015 $ (22 ) $ (11 ) $ (33 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Minimum commitments | Minimum commitments as of December 31, 2015 consist of the following: (millions) Drilling, Equipment, and Purchase Obligations Transportation and Gathering Obligations Operating Lease Obligations Capital Lease and Other Obligations (1) Total 2016 $ 291 $ 217 $ 42 $ 76 $ 626 2017 167 248 44 81 540 2018 22 314 39 79 454 2019 16 305 26 50 397 2020 10 270 26 47 353 2021 and Thereafter 9 1,816 168 179 2,172 Total $ 515 $ 3,170 $ 345 $ 512 $ 4,542 (1) Annual lease payments, net to our interest, exclude regular maintenance and operational costs. See Note 10. Long-Term Debt . |
Summary of Significant Accoun44
Summary of Significant Accounting Policies (Details) $ in Millions | Apr. 22, 2013 | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Property, Plant and Equipment [Line Items] | ||||
Total capitalized interest | $ (144) | $ 116 | $ 121 | |
Common Stock Split [Abstract] | ||||
Two-for-One Stock Split | 2 | |||
Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful lives of gathering facilitates and processing plants (in years) | 3 years | |||
Useful lives of other property (in years) | 3 years | |||
Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful lives of gathering facilitates and processing plants (in years) | 30 years | |||
Useful lives of other property (in years) | 30 years |
Summary of Significant Accoun45
Summary of Significant Accounting Policies (Details 2) - USD ($) $ in Millions | Dec. 31, 2015 | Apr. 28, 2015 | Dec. 31, 2014 |
Change in Stockholder Equity Due to Shareholder Amendment [Line Items] | |||
Common Stock, shares authorized (in shares) | 1,000,000,000 | 500,000,000 | |
Unamortized Debt Issuance Expense | $ 12 | $ 15 | |
Common Stock Authorized prior to Certificate of Incorporation Amendment | |||
Change in Stockholder Equity Due to Shareholder Amendment [Line Items] | |||
Common Stock, shares authorized (in shares) | 500,000,000 | ||
Common Stock Authorized after Certificate of Incorporation Amendment | |||
Change in Stockholder Equity Due to Shareholder Amendment [Line Items] | |||
Common Stock, shares authorized (in shares) | 1,000,000,000 |
Additional Financial Statemen46
Additional Financial Statement Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Production Expense | |||
Lease Operating Expense | $ 563 | $ 593 | $ 524 |
Production and Ad Valorem Taxes | 127 | 184 | 188 |
Transportation Expense | 272 | 170 | 132 |
Total | 962 | 947 | 844 |
Other Operating Expense, Net | |||
Midstream Gathering and Processing (Income) Expense, Net | 9 | 11 | 6 |
Corporate Restructuring Charges | 51 | 0 | 0 |
Stacked Drilling Rig Expense | 30 | 0 | 0 |
Pension Plan Expense | 88 | 0 | 0 |
Rosetta Merger Expense | 81 | 0 | 0 |
(Gain) Loss on Divestitures | 0 | (73) | (36) |
Inventory Adjustment | 20 | 0 | 0 |
Other, Net | 37 | 38 | 43 |
Total | 316 | (24) | 13 |
Other Non-Operating (Income) Expense, Net | |||
Deferred Compensation (Income) Expense | (12) | (25) | 26 |
Other (Income) Expense, Net | (3) | (1) | (5) |
Total | (15) | (26) | 21 |
Accounts Receivable, Net | |||
Commodity Sales | 298 | 405 | |
Joint Interest Billings | 20 | 297 | |
Other | 151 | 171 | |
Allowance for Doubtful Accounts | (19) | (16) | |
Total | 450 | 857 | |
Other Current Assets | |||
Inventories, Materials and Supplies | 92 | 81 | |
Inventories, Crude Oil | 23 | 24 | |
Assets Held for Sale | 67 | 180 | |
Prepaid Expenses and Other Assets, Current | 34 | 40 | |
Total | 216 | 325 | |
Other Noncurrent Assets | |||
Equity Method Investments | 453 | 325 | $ 437 |
Mutual Fund Investments | 90 | 111 | |
Commodity Derivative Assets, Noncurrent | 10 | 180 | |
Other Assets, Noncurrent | 67 | 64 | |
Total | 620 | 680 | |
Other Current Liabilities | |||
Production and Ad Valorem Taxes | 166 | 110 | |
Income Taxes Payable | 86 | 180 | |
Deferred Income Taxes, Current | 0 | 158 | |
Asset Retirement Obligations, Current | 128 | 81 | |
Accrued Benefit Costs, Current | 3 | 125 | |
Interest Payable | 83 | 70 | |
Current Portion of Capital Lease and Other Obligations | 53 | 68 | |
Other Liabilities, Current | 158 | 152 | |
Total | 677 | 944 | |
Other Noncurrent Liabilities | |||
Deferred Compensation Liabilities, Noncurrent | 217 | 218 | |
Asset Retirement Obligations, Noncurrent | 861 | 670 | |
Accrued Benefit Costs, Noncurrent | 25 | 24 | |
Other Liabilities, Noncurrent | 116 | 175 | |
Total | $ 1,219 | $ 1,087 |
Additional Financial Statemen47
Additional Financial Statement Information (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash Paid During the Year For | |||
Interest, Net of Amount Capitalized | $ 260 | $ 189 | $ 137 |
Income Taxes Paid, Net | 202 | 150 | 165 |
Non-Cash Financing and Investing Activities | |||
Increase in Capital Lease and Other Obligations | $ 55 | $ 110 | $ 96 |
Merger, Acquisitions and Dive48
Merger, Acquisitions and Divestitures - Narrative (Details) a in Thousands, $ in Millions | Jul. 20, 2015USD ($)abusinessshares | Oct. 31, 2013USD ($)a | Dec. 31, 2015USD ($) | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013USD ($) | Nov. 30, 2015USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Shares of Noble Energy common stock issued to Rosetta shareholders | shares | 41,048,240 | 0 | |||||
Severance, consulting, investment, advistory, legal and other related merger-related fees | $ 81 | $ 0 | $ 0 | ||||
Goodwill Impairment | 779 | 0 | 0 | ||||
Land Exchanged In Agreement (in acres) | a | 50 | ||||||
Cash Received For Reimbursement of Capital Expenditures and Other Normal Closing Adjustments | $ 105 | ||||||
Proceeds from Divestitures | 151 | $ 321 | 327 | ||||
Alon A And Alon C | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Disposal Group, Including Discontinued Operations, Adjustment of Costs Offsetting Consideration | $ 6 | ||||||
Ownership interest in equity method investments (in hundredths) | 47.00% | ||||||
Total consideration value | $ 73 | ||||||
North Sea Assets | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Gain on Sale, Net of Tax | 65 | ||||||
Proceeds from Divestitures | $ 56 | ||||||
Rosetta Resources, Inc | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Shares of Noble Energy common stock issued to Rosetta shareholders | shares | 41,000,000 | ||||||
Number of Businesses Acquired | business | 2 | ||||||
Merger-related costs incurred | 81 | ||||||
Severance, consulting, investment, advistory, legal and other related merger-related fees | 66 | ||||||
Noncash share-based compensation expense | 15 | ||||||
Revenue since acquisition | $ 181 | ||||||
Pre-tax loss since acquisition | 120 | ||||||
Goodwill Impairment | $ 163 | ||||||
Common Stock | Rosetta Resources, Inc | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Business Combination, stock exchange ratio | 0.542 | ||||||
Midland Basin | Rosetta Resources, Inc | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Long-term Debt, Fair Value | $ 2,000 | ||||||
Business Combination, Gas And Oil Area Acquired | a | 9 | ||||||
Eagle Ford Shale | Rosetta Resources, Inc | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Business Combination, Gas And Oil Area Acquired | a | 50 | ||||||
Permian | Rosetta Resources, Inc | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Business Combination, Gas And Oil Area Acquired | a | 54 | ||||||
Delaware Basin | Rosetta Resources, Inc | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Business Combination, Gas And Oil Area Acquired | a | 45 | ||||||
Rosetta Resources, Inc | Rosetta Resources, Inc | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Severance, consulting, investment, advistory, legal and other related merger-related fees | $ 37 |
Merger, Acquisitions, and Dives
Merger, Acquisitions, and Divestitures Merger, Acquisitions and Divestitures - Merger (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 20, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ||||
Shares of Noble Energy common stock issued to Rosetta shareholders | 41,048,240 | 0 | ||
Goodwill at End of Year (2) | $ 0 | $ 620 | $ 627 | |
Business Acquisition, Pro Forma Information [Abstract] | ||||
Business Acquisition, Pro Forma Revenue | 3,428 | 6,112 | ||
Business Acquisition, Pro Forma Net Income (Loss) | $ (2,393) | $ 1,607 | ||
Business Acquisition, Pro Forma Earnings Per Share, Basic | $ (5.64) | $ 4.01 | ||
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $ (5.64) | $ 3.94 | ||
Rosetta Resources, Inc | ||||
Business Acquisition [Line Items] | ||||
Shares of Noble Energy common stock issued to Rosetta shareholders | 41,000,000 | |||
Noble Energy common stock price on July 20, 2015 (in dollars per share) | $ 36.97 | |||
Fair value of common stock issued | $ 1,518 | |||
Plus: fair value of Rosetta's restricted stock awards and performance awards assumed | 10 | |||
Plus: Rosetta stock options assumed | 1 | |||
Total purchase price | 1,529 | |||
Accounts Payable | 100 | |||
Current Liabilities | 37 | |||
Long-Term Deferred Tax Liability | 8 | |||
Long-Term Debt | 1,992 | |||
Other Long Term Liabilities | 23 | |||
Asset Retirement Obligation | 27 | |||
Total purchase price plus liabilities assumed | 3,716 | |||
Cash and Equivalents | 61 | |||
Other Current Assets | 76 | |||
Derivative Instruments | 209 | |||
Proved Properties | 1,613 | |||
Undeveloped Leaseholds | 1,355 | |||
Gathering and Processing Assets | 207 | |||
Asset Retirement Obligation | 27 | |||
Other Property Plant and Equipment | 5 | |||
Goodwill at End of Year (2) | 163 | |||
Total Asset Value | $ 3,716 |
Merger, Acquisitions and Dive50
Merger, Acquisitions and Divestitures - Sales Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Business Acquisition [Line Items] | |||
Proceeds from Divestitures | $ 151 | $ 321 | $ 327 |
Asset Retirement Obligations Associated with Assets Sold | 38 | 101 | |
Gain on Divestitures | 0 | 73 | 36 |
US Onshore Assets Sold | |||
Business Acquisition [Line Items] | |||
Proceeds from Divestitures | 151 | 135 | 150 |
Net Book Value of Assets Sold | (156) | (150) | (117) |
Goodwill Allocated to Assets Sold | (4) | (7) | (8) |
Asset Retirement Obligations Associated with Assets Sold | 8 | 48 | 8 |
Other Closing Adjustments | 1 | 10 | 3 |
Gain on Divestitures | 0 | $ 36 | $ 36 |
China | |||
Business Acquisition [Line Items] | |||
Proceeds from Divestitures | 186 | ||
Net Book Value of Assets Sold | (149) | ||
Other Closing Adjustments | 2 | ||
Gain on Divestitures | $ (35) |
Merger, Acquisitions and Dive51
Merger, Acquisitions and Divestitures - Discontinued Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Discontinued Operations, Net of Tax | $ 0 | $ 0 | $ 71 |
North Sea Assets | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Oil and Gas Sales | 37 | ||
Income Before Income Taxes | 12 | ||
Income Tax Expense | 6 | ||
Operating Income, Net of Tax | 6 | ||
Gain on Sale, Net of Tax | $ 65 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | 5 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 20, 2015 | |
Goodwill [Line Items] | |||||
Goodwill | $ 0 | $ 0 | $ 620 | $ 627 | |
Goodwill Impairment | 779 | 0 | 0 | ||
US Onshore Assets Sold | |||||
Goodwill [Line Items] | |||||
Goodwill | 163 | 163 | |||
Goodwill, Written off Related to Sale of Business Unit | $ 4 | $ 7 | $ 8 | ||
Rosetta Resources, Inc | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 163 | ||||
Goodwill Impairment | $ 163 |
Asset Impairments (Details)
Asset Impairments (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Asset Impairments | $ 5 | $ 31 | $ 533 | $ 500 | $ 86 |
Onshore US | |||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Asset Impairments | 0 | 42 | 39 | ||
Deepwater Gulf of Mexico | |||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Asset Impairments | 158 | 350 | 0 | ||
Equatorial Guinea | |||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Asset Impairments | 339 | 0 | 0 | ||
Eastern Mediterranean | |||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Asset Impairments | 36 | 14 | 47 | ||
North Sea | |||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Asset Impairments | $ 0 | $ 94 | $ 0 |
Asset Impairments Impaired Long
Asset Impairments Impaired Long-Lived Assets Held and Used- text (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Asset Impairments | $ 5 | $ 31 | $ 533 | $ 500 | $ 86 |
Other (Onshore US) | |||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Asset Impairments | 481 | ||||
Gulf of Mexico and Eastern Mediterranean | |||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Asset Impairments | $ 47 | ||||
United States | |||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Asset Impairments | 250 | ||||
South Raton (Deepwater Gulf of Mexico) | |||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Asset Impairments | 74 | ||||
Other Deepwater Gulf of Mexico | |||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||
Asset Impairments | $ 51 |
Capitalized Exploratory Well 55
Capitalized Exploratory Well Costs (Details) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Increase (Decrease) in Capitalized Exploratory Well Costs that are Pending Determination of Proved Reserves [Roll Forward] | ||||||
Capitalized Exploratory Well Costs, Beginning of Period | $ 1,337 | $ 1,301 | $ 900 | |||
Additions to Capitalized Exploratory Well Costs Pending Determination of Proved Reserves | 123 | 316 | 581 | |||
Reclassified to Proved Oil and Gas Properties Based on Determination of Proved Reserves or to Assets Held for Sale(1) | (19) | (196) | (177) | |||
Capitalized Exploratory Well Costs Charged to Expense | (88) | (84) | (3) | |||
Capitalized Exploratory Well Costs, End of Period | 1,353 | 1,337 | 1,301 | |||
Exploratory Well Costs Capitalized for a Period of One Year or Less | $ 95 | $ 247 | $ 568 | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 1,258 | 1,090 | 733 | |||
Capitalized Exploratory Well Costs, | $ 1,337 | $ 1,301 | $ 900 | $ 1,353 | $ 1,337 | $ 1,301 |
Number of Projects with Exploratory Well Costs That Have Been Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 14 | 13 | 13 |
Capitalized Exploratory Well 56
Capitalized Exploratory Well Costs (Details 2) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | $ 1,258 | $ 1,090 | $ 733 |
Suspended Since 2013 and 2014 | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 671 | ||
Suspended Since 2011 and 2012 | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 384 | ||
Suspended Since 2010 and Prior | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 203 | ||
Troubadour | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 49 | ||
Troubadour | Suspended Since 2013 and 2014 | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 48 | ||
Troubadour | Suspended Since 2011 and 2012 | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 1 | ||
Troubadour | Suspended Since 2010 and Prior | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 0 | ||
Katmai | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 91 | ||
Katmai | Suspended Since 2013 and 2014 | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 91 | ||
Katmai | Suspended Since 2011 and 2012 | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 0 | ||
Katmai | Suspended Since 2010 and Prior | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 0 | ||
Diega Offshore Equatorial Guinea | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 233 | ||
Diega Offshore Equatorial Guinea | Suspended Since 2013 and 2014 | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 135 | ||
Diega Offshore Equatorial Guinea | Suspended Since 2011 and 2012 | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 45 | ||
Diega Offshore Equatorial Guinea | Suspended Since 2010 and Prior | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 53 | ||
Carla (Block O) | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 177 | ||
Carla (Block O) | Suspended Since 2013 and 2014 | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 133 | ||
Carla (Block O) | Suspended Since 2011 and 2012 | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 44 | ||
Carla (Block O) | Suspended Since 2010 and Prior | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 0 | ||
Yolanda/Felicita | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 66 | ||
Yolanda/Felicita | Suspended Since 2013 and 2014 | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 18 | ||
Yolanda/Felicita | Suspended Since 2011 and 2012 | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 4 | ||
Yolanda/Felicita | Suspended Since 2010 and Prior | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 44 | ||
YoYo | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 51 | ||
YoYo | Suspended Since 2013 and 2014 | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 6 | ||
YoYo | Suspended Since 2011 and 2012 | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 11 | ||
YoYo | Suspended Since 2010 and Prior | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 34 | ||
Leviathan | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 191 | ||
Leviathan | Suspended Since 2013 and 2014 | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 44 | ||
Leviathan | Suspended Since 2011 and 2012 | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 106 | ||
Leviathan | Suspended Since 2010 and Prior | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 41 | ||
Leviathan-1 Deep | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 80 | ||
Leviathan-1 Deep | Suspended Since 2013 and 2014 | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 7 | ||
Leviathan-1 Deep | Suspended Since 2011 and 2012 | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 73 | ||
Leviathan-1 Deep | Suspended Since 2010 and Prior | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 0 | ||
Dalit | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 28 | ||
Dalit | Suspended Since 2013 and 2014 | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 5 | ||
Dalit | Suspended Since 2011 and 2012 | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 3 | ||
Dalit | Suspended Since 2010 and Prior | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 20 | ||
Dolphin 1 | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 26 | ||
Dolphin 1 | Suspended Since 2013 and 2014 | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 3 | ||
Dolphin 1 | Suspended Since 2011 and 2012 | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 23 | ||
Dolphin 1 | Suspended Since 2010 and Prior | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 0 | ||
Cyprus | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 214 | ||
Cyprus | Suspended Since 2013 and 2014 | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 140 | ||
Cyprus | Suspended Since 2011 and 2012 | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 74 | ||
Cyprus | Suspended Since 2010 and Prior | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 0 | ||
Projects less than $20 million | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 52 | ||
Projects less than $20 million | Suspended Since 2013 and 2014 | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 41 | ||
Projects less than $20 million | Suspended Since 2011 and 2012 | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | 0 | ||
Projects less than $20 million | Suspended Since 2010 and Prior | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling | $ 11 |
Equity Method Investments (Deta
Equity Method Investments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Equity Method Investments [Line Items] | |||
Income (Loss) from Equity Method Investments, Net of Dividends or Distributions | $ 14 | $ (33) | $ 17 |
Distributions from Equity Method Investments | 0 | 156 | 0 |
Equity Method Investments | 453 | 325 | 437 |
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | |||
Retained earnings related to undistributed earnings of equity method investees | 106 | ||
AMPCO Equity Method Investment, Difference Between Carrying Amount and Underlying Equity [Abstract] | |||
Difference between the carrying value of an equity method investment and the underlying net assets of the investee | 8 | ||
Balance Sheet Information | |||
Current Assets | 343 | 412 | |
Noncurrent Assets | 1,418 | 1,169 | |
Current Liabilities | 229 | 374 | |
Noncurrent Liabilities | 108 | 33 | |
Statements of Operations Information | |||
Operating Revenues | 645 | 1,142 | 1,256 |
Operating Expenses | 393 | 405 | 388 |
Operating Income | 252 | 737 | 868 |
Other (Income) Net | (9) | (9) | (14) |
Income Before Income Taxes | 261 | 746 | 882 |
Income Tax Provision | 46 | 172 | 212 |
Net Income | $ 215 | 574 | $ 670 |
AMPCO | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest in equity method investments (in hundredths) | 45.00% | ||
Equity Method Investments | $ 120 | 141 | |
Alba Plant | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest in equity method investments (in hundredths) | 28.00% | ||
Equity Method Investments | $ 87 | 82 | |
CONE Investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest in equity method investments (in hundredths) | 50.00% | ||
Distribution from Offering Proceeds | 204 | ||
Income (Loss) from Equity Method Investments, Net of Dividends or Distributions | 48 | ||
Distributions from Equity Method Investments | 156 | ||
Equity Method Investments | $ 214 | 82 | |
CONE Midstream | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest in equity method investments (in hundredths) | 32.00% | ||
Other | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investments | $ 32 | $ 20 |
Derivative Instruments and He58
Derivative Instruments and Hedging Activities (Details) bbl / d in Thousands, MMBTU / d in Thousands | 12 Months Ended |
Dec. 31, 2015bbl / dMMBTU / d$ / bbl$ / MMBTU | |
Crude Oil Commodity Contract | Swaps - NYMEX WTI 2016 | |
Derivative [Line Items] | |
Settlement Period | 2,016 |
Index | (4) |
Volume Per Day | bbl / d | 6 |
Weighted Average Fixed Price | 90.28 |
Crude Oil Commodity Contract | Swaps - Dated Brent 2016 | |
Derivative [Line Items] | |
Settlement Period | 2,016 |
Index | Dated Brent |
Volume Per Day | bbl / d | 9 |
Weighted Average Fixed Price | 97.96 |
Crude Oil Commodity Contract | Three Way Collars - NYMEX WTI 2016 | |
Derivative [Line Items] | |
Settlement Period | 2,016 |
Index | NYMEX WTI |
Volume Per Day | bbl / d | 6 |
Weighted Average Short Put Price | 61 |
Weighted Average Floor Price | 72.50 |
Weighted Average Ceiling Price | 86.37 |
Crude Oil Commodity Contract | Three Way Collars - Dated Brent 2016 | |
Derivative [Line Items] | |
Settlement Period | 2,016 |
Index | Dated Brent |
Volume Per Day | bbl / d | 8 |
Weighted Average Short Put Price | 72.50 |
Weighted Average Floor Price | 86.25 |
Weighted Average Ceiling Price | 101.79 |
Crude Oil Commodity Contract | Swaps - Dated Brent 2017 | |
Derivative [Line Items] | |
Volume Per Day | MMBTU / d | 3 |
Weighted Average Fixed Price | $ / MMBTU | 62.80 |
Crude Oil Commodity Contract | Call - NYMEX WTI 2017 | |
Derivative [Line Items] | |
Settlement Period | 2,017 |
Index | NYMEX WTI |
Volume Per Day | bbl / d | 3 |
Weighted Average Ceiling Price | 57 |
Crude Oil Commodity Contract | Two Way Collars - NYMEX WTI 2017 | |
Derivative [Line Items] | |
Settlement Period | 2,017 |
Index | NYMEX WTI |
Volume Per Day | bbl / d | 5 |
Weighted Average Floor Price | 40 |
Weighted Average Ceiling Price | 54 |
Crude Oil Commodity Contract | Two Way Collars - NYMEX HH 2016 | |
Derivative [Line Items] | |
Settlement Period | 2,016 |
Index | NYMEX WTI |
Volume Per Day | bbl / d | 1 |
Weighted Average Floor Price | 60 |
Weighted Average Ceiling Price | 70 |
Natural Gas Commodity Contract | Swaps - NYMEX HH Extension | |
Derivative [Line Items] | |
Volume Per Day | MMBTU / d | 30 |
Natural Gas Commodity Contract | Swaps - NYMEX HH 2016 | |
Derivative [Line Items] | |
Settlement Period | 2,016 |
Index | NYMEX HH |
Volume Per Day | MMBTU / d | 40 |
Weighted Average Fixed Price | $ / MMBTU | 3.60 |
Natural Gas Commodity Contract | Three Way Collars - NYMEX HH 2016 | |
Derivative [Line Items] | |
Settlement Period | 2,016 |
Index | NYMEX HH |
Volume Per Day | MMBTU / d | 90 |
Weighted Average Short Put Price | $ / MMBTU | 2.83 |
Weighted Average Floor Price | $ / MMBTU | 3.42 |
Weighted Average Ceiling Price | $ / MMBTU | 3.90 |
Natural Gas Commodity Contract | Two Way Collars - NYMEX HH 2016 | |
Derivative [Line Items] | |
Settlement Period | 2,016 |
Index | NYMEX HH |
Volume Per Day | MMBTU / d | 30 |
Weighted Average Floor Price | $ / MMBTU | 3 |
Weighted Average Ceiling Price | $ / MMBTU | 3.50 |
Natural Gas Commodity Contract | Swaps - Houston Ship Channel and Tennessee Zone 0 2016 | |
Derivative [Line Items] | |
Settlement Period | 2,016 |
Index | Houston Ship Channel |
Volume Per Day | MMBTU / d | 30 |
Weighted Average Fixed Price | $ / MMBTU | 4.04 |
Natural Gas Commodity Contract | Two Way Collars - Houston Ship Channel and Tennessee Zone 0 2016 | |
Derivative [Line Items] | |
Settlement Period | 2,016 |
Index | Houston Ship Channel |
Volume Per Day | MMBTU / d | 30 |
Weighted Average Floor Price | $ / MMBTU | 3.50 |
Weighted Average Ceiling Price | $ / MMBTU | 5.60 |
Natural Gas Commodity Contract | Swaps - NYMEX HH Increase | |
Derivative [Line Items] | |
Volume Per Day | MMBTU / d | 30 |
Weighted Average Fixed Price | $ / MMBTU | 3.50 |
First half 2016 | Crude Oil Commodity Contract | Swaps - NYMEX WTI 2016 | |
Derivative [Line Items] | |
Settlement Period | 1H16 (1) |
Index | NYMEX WTI |
Volume Per Day | bbl / d | 17 |
Weighted Average Fixed Price | 68.50 |
Second half 2016 | Crude Oil Commodity Contract | Swaps - NYMEX WTI 2016 | |
Derivative [Line Items] | |
Settlement Period | 2H16 (1) |
Index | NYMEX WTI |
Volume Per Day | bbl / d | 12 |
Weighted Average Fixed Price | 74.47 |
Second half 2016 | Crude Oil Commodity Contract | Call - NYMEX WTI 2016 | |
Derivative [Line Items] | |
Settlement Period | 2H16 (1) |
Index | NYMEX WTI |
Volume Per Day | bbl / d | 5 |
Weighted Average Ceiling Price | 54.16 |
First half 2017 | Crude Oil Commodity Contract | Swaps - NYMEX WTI 2017 | |
Derivative [Line Items] | |
Settlement Period | 1H17 (1) |
Index | NYMEX WTI |
Volume Per Day | bbl / d | 3 |
Weighted Average Fixed Price | 60.12 |
First half 2017 | Crude Oil Commodity Contract | Swaps - Dated Brent 2017 | |
Derivative [Line Items] | |
Settlement Period | 1H17 (1) |
Index | Dated Brent |
Volume Per Day | bbl / d | 3 |
Weighted Average Fixed Price | 62.80 |
Second half 2017 | Crude Oil Commodity Contract | Call - NYMEX WTI 2017 | |
Derivative [Line Items] | |
Settlement Period | 2H17 (1) |
Index | NYMEX WTI |
Volume Per Day | bbl / d | 3 |
Weighted Average Ceiling Price | 60.12 |
Derivative Instruments and He59
Derivative Instruments and Hedging Activities (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivatives, Fair Value [Line Items] | |||
Asset Derivative Instruments | $ 592 | $ 890 | |
Liability Derivative Instruments | 0 | 0 | |
Cash (Received) Paid in Settlement of Commodity Derivative Instruments | (501) | (976) | $ 133 |
Total Cash (Received) Paid in Settlement of Commodity Derivative Instruments | (1,009) | (29) | 2 |
Total Non-cash Portion of (Gain) Loss on Commodity Derivative Instruments | 508 | (947) | 131 |
Total (Gain) Loss on Commodity Derivative Instruments | (501) | (976) | 133 |
Crude Oil | |||
Derivatives, Fair Value [Line Items] | |||
Cash (Received) Paid in Settlement of Commodity Derivative Instruments | (844) | (34) | 52 |
Total Non-cash Portion of (Gain) Loss on Commodity Derivative Instruments | 423 | (863) | 87 |
Total (Gain) Loss on Commodity Derivative Instruments | (421) | (897) | 139 |
Natural Gas | |||
Derivatives, Fair Value [Line Items] | |||
Cash (Received) Paid in Settlement of Commodity Derivative Instruments | (147) | 5 | (50) |
Total Non-cash Portion of (Gain) Loss on Commodity Derivative Instruments | 65 | (84) | 44 |
Total (Gain) Loss on Commodity Derivative Instruments | (82) | (79) | (6) |
Natural Gas Liquids | |||
Derivatives, Fair Value [Line Items] | |||
Cash (Received) Paid in Settlement of Commodity Derivative Instruments | (18) | 0 | 0 |
Total Non-cash Portion of (Gain) Loss on Commodity Derivative Instruments | 20 | 0 | 0 |
Total (Gain) Loss on Commodity Derivative Instruments | 2 | 0 | $ 0 |
Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivative Instruments | 582 | 710 | |
Current Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Liability Derivative Instruments | 0 | 0 | |
Noncurrent Assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivative Instruments | 10 | 180 | |
Noncurrent Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Liability Derivative Instruments | $ 0 | $ 0 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Asset Retirement Obligations, Beginning Balance | $ 751 | $ 586 |
Liabilities Incurred | 67 | 75 |
Liabilities Settled | (38) | (101) |
Revision of Estimate | 166 | 155 |
Accretion Expense | 43 | 36 |
Asset Retirement Obligations, Ending Balance | 989 | 751 |
Deepwater Gulf of Mexico | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Liabilities Incurred | 16 | 25 |
Liabilities Settled | (2) | (62) |
Revision of Estimate | 35 | 29 |
Eagle Ford Shale and Permian Delaware Basin | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Liabilities Incurred | 29 | |
Cameroon | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Liabilities Incurred | 2 | |
DJ Basin (Onshore US) | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Liabilities Settled | (23) | (33) |
Revision of Estimate | 96 | 33 |
Onshore US | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Liabilities Incurred | 22 | 20 |
Equatorial Guinea | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Liabilities Incurred | 18 | |
Revision of Estimate | (10) | 16 |
Eastern Mediterranean | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Liabilities Incurred | 10 | |
Revision of Estimate | 48 | 8 |
Non-Core Onshore US | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Liabilities Settled | (28) | |
Revision of Estimate | (3) | |
Offshore China | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Other | 1 | |
North Sea | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Liabilities Settled | $ (13) | (23) |
Revision of Estimate | $ 69 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) | Jan. 21, 2016 | Jan. 06, 2016 | Nov. 07, 2014 | Nov. 08, 2013 | Oct. 03, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Aug. 27, 2015 | Jul. 29, 2015 |
Debt Instrument [Line Items] | ||||||||||
Debt | $ 7,976,000,000 | $ 6,197,000,000 | ||||||||
Unamortized Discount | (24,000,000) | (26,000,000) | ||||||||
Debt Instrument, Unamortized Premium | 113,000,000 | 0 | ||||||||
Unamortized Debt Issuance Expense | (12,000,000) | (15,000,000) | ||||||||
Total Debt, Net of Discount | 8,029,000,000 | 6,136,000,000 | ||||||||
Capital Lease Obligations, Current | (53,000,000) | (68,000,000) | ||||||||
Long-Term Debt Due After One Year | 7,976,000,000 | 6,068,000,000 | ||||||||
Unamortized Debt Issuance Costs | 12,000,000 | |||||||||
Debt Exchange, Percent of Outstanding Notes Tendered for Exchange | 99.40% | |||||||||
Deferred Finance Costs, Net | 12,000,000 | |||||||||
Repayments of Lines of Credit | 70,000,000 | |||||||||
Repayments of Long-term Lines of Credit | 70,000,000 | 1,050,000,000 | $ 900,000,000 | |||||||
Repayments of Long-term Debt [Abstract] | ||||||||||
2,014 | 0 | |||||||||
2,015 | 0 | |||||||||
2,016 | 0 | |||||||||
2,017 | 1,000,000,000 | |||||||||
2,018 | 0 | |||||||||
Thereafter | 6,573,000,000 | |||||||||
Total | 7,573,000,000 | |||||||||
Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt | $ 0 | $ 0 | ||||||||
Interest Rate | 0.00% | 0.00% | ||||||||
Debt Instrument, Offering Date | Aug. 27, 2015 | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 4,000,000,000 | |||||||||
Credit facility aggregate short-term loans and letters of credit, maximum | $ 500,000,000 | |||||||||
Credit facility covenant term debt to capitalization ratio maximum | 65.00% | |||||||||
Credit facility interest rate, Eurodollar rate plus, minimum | 0.90% | |||||||||
Credit facility fee rate basis points, minimum | 0.10% | |||||||||
Credit facility fee rate basis points, maximum | 0.25% | |||||||||
Credit facility interest rate, Eurodollar rate plus, maximum | 1.50% | |||||||||
Capital Lease and Other Obligations | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt | $ 403,000,000 | $ 413,000,000 | ||||||||
Interest Rate | 0.00% | 0.00% | ||||||||
Capital Lease Obligations, Current | $ (53,000,000) | $ (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 | 8.25% | 8.25% | ||||||||
Senior Notes, due May 1, 2021 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt | $ 693,000,000 | $ 0 | ||||||||
Interest Rate | 5.625% | 0.00% | ||||||||
4.15% Senior Notes, due December 15, 2021 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt | $ 1,000,000,000 | $ 1,000,000,000 | ||||||||
Interest Rate | 4.15% | 4.15% | ||||||||
Senior Notes, due June 1, 2022 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt | $ 597,000,000 | $ 0 | ||||||||
Interest Rate | 5.875% | 0.00% | ||||||||
7.25% Senior Notes, due October 15, 2023 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt | $ 100,000,000 | $ 100,000,000 | ||||||||
Interest Rate | 7.25% | 7.25% | ||||||||
Unamortized Debt Issuance Expense | $ (36,000,000) | $ (35,000,000) | ||||||||
Senior Notes, due June 1, 2024 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt | $ 499,000,000 | $ 0 | ||||||||
Interest Rate | 5.875% | 0.00% | ||||||||
Senior Notes Due November 15, 2024 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt | $ 650,000,000 | $ 650,000,000 | $ 650,000,000 | |||||||
Interest Rate | 3.90% | 3.90% | 3.90% | |||||||
Debt Instrument, Offering Date | Nov. 7, 2014 | |||||||||
Debt Instrument, Maturity Date | Nov. 15, 2024 | |||||||||
8.00% Senior Notes, due April 1, 2027 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt | $ 250,000,000 | $ 250,000,000 | ||||||||
Interest Rate | 8.00% | 8.00% | ||||||||
6.00% Senior Notes, due March 1, 2041 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt | $ 850,000,000 | $ 850,000,000 | ||||||||
Interest Rate | 6.00% | 6.00% | ||||||||
5.25% Senior Notes, due November 15, 2043 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt | $ 1,000,000,000 | $ 1,000,000,000 | ||||||||
Interest Rate | 5.25% | 5.25% | ||||||||
Senior Notes, due November 15, 2044 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt | $ 850,000,000 | $ 850,000,000 | $ 850,000,000 | |||||||
Interest Rate | 5.05% | 5.05% | 5.05% | |||||||
Debt Instrument, Maturity Date | Nov. 15, 2044 | |||||||||
Debt offerings proceeds, net of discount and underwriting fees | $ 1,500,000,000 | |||||||||
7.25% Senior Debentures, due August 1, 2097 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt | $ 84,000,000 | $ 84,000,000 | ||||||||
Interest Rate | 7.25% | 7.25% | ||||||||
Subsequent Event | Senior Notes, due May 1, 2021 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest Rate | 5.625% | |||||||||
Debt Instrument, Maturity Date | May 1, 2021 | |||||||||
Subsequent Event | Senior Notes, due June 1, 2022 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest Rate | 5.875% | |||||||||
Debt Instrument, Maturity Date | Jun. 1, 2022 | |||||||||
Subsequent Event | Senior Notes, due June 1, 2024 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest Rate | 5.875% | |||||||||
Debt Instrument, Maturity Date | Jun. 1, 2024 | |||||||||
Line of Credit | Subsequent Event | Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Term | 3 years | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,400,000,000 | |||||||||
Repayments of Long-term Debt [Abstract] | ||||||||||
Proceeds from Lines of Credit | $ 1,380,000,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Jul. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 20, 2015 | |
Components of income (loss) before income taxes [Abstract] | ||||||
Domestic | $ (2,338) | $ 282 | $ 202 | |||
Foreign | 119 | 1,428 | 1,142 | |||
Income (Loss) from Continuing Operations Before Income Taxes | (2,219) | 1,710 | 1,344 | |||
Current Taxes | ||||||
Federal | (1) | 19 | 21 | |||
State | 0 | 1 | 1 | |||
Foreign | 107 | 208 | 144 | |||
Total Current | 106 | 228 | 166 | |||
Deferred Taxes | ||||||
Federal | 216 | 237 | 96 | |||
State | (5) | 13 | 1 | |||
Foreign | (95) | 18 | 174 | |||
Total Deferred | 116 | 268 | 271 | |||
Total Income Tax Provision | $ 222 | $ 496 | $ 437 | |||
Effective Tax Rate (in hundredths) | (10.00%) | 29.00% | 32.50% | |||
Federal statutory tax rate reconciliation [Abstract] | ||||||
Federal Statutory Rate (in hundredths) | 35.00% | 35.00% | 35.00% | |||
Effect of | ||||||
Earnings of Equity Method Investees (in hundredths) | 0.60% | (3.30%) | (5.30%) | |||
State Taxes, Net of Federal Benefit (in hundredths) | 0.30% | 0.80% | 0.10% | |||
Difference Between US and Foreign Rates (in hundredths) | 2.60% | (14.20%) | (6.30%) | |||
Foreign Exploration Loss (in hundredths) | 2.70% | 0.00% | 2.70% | |||
Change in Valuation Allowance (in hundredths) | 0.00% | 1.90% | 3.80% | |||
Oil Profits Tax - Israel (in hundredths) | 0.10% | 0.20% | 0.30% | |||
Tax Contingency (in hundredths) | 0.40% | 0.10% | 0.40% | |||
Indefinite Reinvestment of Foreign Earnings (in hundredths) | (37.70%) | 8.20% | 0.00% | |||
Goodwill Impairment | (12.30%) | 0.00% | 0.00% | |||
Other, Net (in hundredths) | (1.70%) | 0.30% | 1.80% | |||
Effective Tax Rate (in hundredths) | (10.00%) | 29.00% | 32.50% | |||
Deferred Tax Assets | ||||||
Loss Carryforwards | $ 468 | $ 468 | $ 170 | |||
Employee Compensation and Benefits | 151 | 151 | 149 | |||
Foreign Tax Credits | 0 | 0 | 67 | |||
Other | 81 | 81 | 51 | |||
Total Deferred Tax Assets | 700 | 700 | 437 | |||
Net Deferred Tax Assets | 494 | 494 | 224 | |||
Deferred Tax Liabilities | ||||||
Mark to Market of Commodity Derivative Instruments | (128) | (128) | (209) | |||
Accumulated Undistributed Foreign Earnings | 368 | 368 | 141 | |||
Property, Plant and Equipment, Principally Due to Differences in Depreciation, Amortization, Lease Impairment and Abandonments | (2,824) | (2,824) | (2,548) | |||
Deferred Tax Liabilities, Gross | 3,320 | 3,320 | 2,898 | |||
Total Deferred Tax Liability | (2,826) | (2,826) | (2,674) | |||
Deferred Tax Liabilities, Deferred Expense | $ 12 | |||||
Deferred Tax Asset and Liability Classification [Abstract] | ||||||
Deferred Tax Liabilities, Net, Current | 0 | 0 | (158) | |||
Deferred Income Tax Liability - Noncurrent | (2,826) | (2,826) | (2,516) | |||
Accumulated Undistributed Earnings of Foreign Subsidiaries [Abstract] | ||||||
Accumulated undistributed earnings of foreign subsidiaries | 1,600 | 1,600 | ||||
Estimated future US taxes on the eventual remittance of accumulated undistributed foreign subsidiary earnings | 227 | $ 227 | ||||
US [Member] | ||||||
Earliest Year Open to Examination [Abstract] | ||||||
Income Tax Examination, Year under Examination | 2,012 | |||||
Equatorial Guinea [Member] | ||||||
Earliest Year Open to Examination [Abstract] | ||||||
Income Tax Examination, Year under Examination | 2,010 | |||||
Israel [Member] | ||||||
Effect of | ||||||
Difference Between US and Foreign Rates (in hundredths) | 25.00% | |||||
Statutory Federal Corporate Tax Rate Future Year | 26.50% | |||||
Earliest Year Open to Examination [Abstract] | ||||||
Income Tax Examination, Year under Examination | 2,011 | |||||
Foreign Loss Carryforward [Member] | ||||||
Deferred Tax Assets | ||||||
Deferred Tax Assets, Valuation Allowance | (206) | $ (206) | (145) | |||
Deferred Tax Liabilities | ||||||
Valuation Allowance Deferred Tax Asset Reversal | 60 | |||||
Foreign Tax Credit [Member] | ||||||
Deferred Tax Assets | ||||||
Deferred Tax Assets, Valuation Allowance | 0 | 0 | (67) | |||
Deferred Tax Liabilities | ||||||
Accumulated Undistributed Foreign Earnings | 141 | 141 | ||||
Valuation Allowance Deferred Tax Asset Reversal | 36 | |||||
Capital Loss Carryforward [Member] | ||||||
Deferred Tax Assets | ||||||
Deferred Tax Assets, Valuation Allowance | $ 0 | $ 0 | $ (1) | |||
Rosetta Resources, Inc | ||||||
Deferred Tax Liabilities | ||||||
Operating Loss Carryforwards | $ 681 |
Income Taxes Income Taxes (Deta
Income Taxes Income Taxes (Details 2) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |
Unrecognized Tax Benefits, Beginning Balance | $ 29 |
Additions for Tax Positions Related to Current Year | 0 |
Additions for Tax Positions of Prior Years | 3 |
Reductions for Tax Positions of Prior Years | (4) |
Settlements | (20) |
Unrecognized Tax Benefits, Ending Balance | 8 |
Unrecognized tax benefits that would impact our effective tax rate if recognized | $ 29 |
Stock-Based and Other Compens64
Stock-Based and Other Compensation Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total Stock-Based Compensation Expense | $ 86 | $ 87 | $ 80 |
Tax Benefit Recognized | (30) | (31) | (28) |
General and Administrative Expense | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total Stock-Based Compensation Expense | 50 | 63 | 58 |
Exploration Expense and Other | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total Stock-Based Compensation Expense | $ 36 | $ 24 | $ 22 |
Stock-Based and Other Compens65
Stock-Based and Other Compensation Plans (Details 2) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock option activity [Rollforward] | |||
Exercised (in shares) | (343,145) | (1,459,490) | |
Stock Option | |||
Assumptions used to value stock option awards [Abstract] | |||
Expected term (in years) | 6 years | 5 years 10 months 24 days | 5 years 8 months |
Expected volatility (in hundredths) | 32.60% | 35.10% | 36.40% |
Risk-free rate (in hundredths) | 1.40% | 1.80% | 1.10% |
Expected dividend yield (in hundredths) | 1.20% | 1.10% | 1.20% |
Weighted-average grant-date fair value of options granted (in dollars per share) | $ 13.93 | $ 20.31 | $ 17.08 |
Stock option activity [Rollforward] | |||
Outstanding, beginning balance (in shares) | 13,008,322 | ||
Granted (in shares) | 2,714,185 | ||
Exercised (in shares) | (343,145) | ||
Forfeited (in shares) | (808,350) | ||
Outstanding, ending balance (in shares) | 14,571,012 | 13,008,322 | |
Exercisable (in shares) | 10,659,799 | ||
Stock option activity, additional disclosures [Abstract] | |||
Weighted average exercise price per share outstanding, beginning balance (in dollars per share) | $ 43.98 | ||
Weighted average exercise price per share granted (in dollars per share) | 47.25 | ||
Weighted average exercise price per share exercised (in dollars per share) | 23.35 | ||
Weighted average exercise price per share forfeited (in dollars per share) | 52.24 | ||
Weighted average exercise price per share outstanding, ending balance (in dollars per share) | 44.59 | $ 43.98 | |
Weighted average exercise price per exercisable share (in dollars per share) | $ 41.53 | ||
Weighted average remaining contractual term of shares outstanding (in years) | 5 years 7 months 6 days | ||
Aggregate intrinsic value of shares outstanding | $ 21 | ||
Weighted average remaining contractual term, exercisable shares (in years) | 4 years 6 months | ||
Aggregate intrinsic value, exercisable shares | $ 21 | ||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |||
Minimum term to maturity on US Treasuries used to determine the risk free rate assumption in valuing stock options | 5 years | ||
Maximum term to maturity on US Treasuries used to determine the risk free rate assumption in valuing stock options | 7 years | ||
The period ended, prior to the date of grant, over which an average of daily stock prices is computed in determining the dividend yield | 3 years | ||
Duration of dividends | 1 year | ||
Total intrinsic value of options exercised | $ 7 | $ 58 | $ 64 |
Unrecognized compensation cost related to nonvested awards | $ 34 | ||
The weighted-average period over which unrecognized compensation cost is to be recognized (in years) | 1 year 3 months 18 days | ||
Restricted Stock | |||
Assumptions used to value stock option awards [Abstract] | |||
Expected volatility (in hundredths) | 30.00% | 30.00% | |
Risk-free rate (in hundredths) | 0.80% | 0.70% | |
Restricted stock awards, shares subject to service conditions, additional disclosures [Abstract] | |||
Weighted average award date fair value, shares awarded (in dollars per share) | $ 35.53 | $ 41.22 | $ 38.07 |
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |||
The period ended, prior to the date of grant, over which an average of daily stock prices is computed in determining the dividend yield | 3 years | ||
Unrecognized compensation cost related to nonvested awards | $ 42 | ||
The weighted-average period over which unrecognized compensation cost is to be recognized (in years) | 1 year 8 months 12 days | ||
Weighted average award date fair value, shares awarded (in dollars per share) | $ 35.53 | $ 41.22 | $ 38.07 |
Total fair value of vested restricted stock | $ 62 | $ 50 | $ 43 |
Stock Option And Restricted Stock Plan 1992 | |||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |||
Maximum number of shares of common stock authorized for issuance After April 26, 2011 (in shares) | 77,400,000 | ||
Number of shares of common stock reserved for issuance (in shares) | 35,850,503 | ||
Shares of common stock available for future grants and awards (in shares) | 16,019,550 | ||
Expiration period (in years) | 10 years | ||
Stock option vesting period | 3 years | ||
Percentage of restricted stock awards that time-vest one year from date of grant (in hundredths) | 20.00% | ||
Additional percentage of restricted stock awards that time-vest two years from date of grant (in hundredths) | 30.00% | ||
Remaining percentage of restricted stock awards that time-vest three years from date of grant (in hundredths) | 50.00% | ||
2015 Stock Plan for Non-Employee Directors | |||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |||
Maximum number of shares of common stock authorized for issuance After April 26, 2011 (in shares) | 708,996 | ||
Number of shares of common stock reserved for issuance (in shares) | 705,615 | ||
Shares of common stock available for future grants and awards (in shares) | 693,665 | ||
Stock Plan for Non-Employee Directors 2005 | |||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |||
Maximum number of shares of common stock authorized for issuance After April 26, 2011 (in shares) | 1,600,000 | ||
Number of shares of common stock reserved for issuance (in shares) | 469,597 | ||
Expiration period (in years) | 10 years | ||
Stock option vesting period | 1 year | ||
The maximum number of stock options authorized for annual and discretionary grants per non-employee director (in shares) | 22,400 | ||
The number of stock options authorized for annual grants per non-employee director (in shares) | 2,800 | ||
The maximum number of shares of restricted stock authorized for annual and discretionary grants per non-employee director (in shares) | 9,600 | ||
The number of shares of restricted stock authorized for annual grants per non-employee director (in shares) | 1,200 | ||
Stock Plan For Nonemployee Directors 2005, Prior to March 17, 2011 | |||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |||
The maximum number of stock options authorized for annual and discretionary grants per non-employee director (in shares) | 11,200 | ||
The maximum number of shares of restricted stock authorized for annual and discretionary grants per non-employee director (in shares) | 4,800 | ||
Nonqualified Stock Option Plan for Non-Employee Directors 1988 | |||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |||
Shares of common stock available for future grants and awards (in shares) | 0 | ||
Expiration period (in years) | 10 years | ||
Stock option vesting period | 1 year | ||
The number of stock options authorized for annual grants per non-employee director (in shares) | 10,000 | ||
The number of stock options granted during the first calendar year of service (in shares) | 20,000 | ||
Subject to Time Vesting | Restricted Stock | |||
Restricted Stock Awards Activity [Roll Forward] | |||
Outstanding, beginning balance (in shares) | 1,048,800 | ||
Awarded (in shares) | 1,554,002 | ||
Vested (in shares) | (1,464,374) | ||
Forfeited (in shares) | (118,958) | ||
Outstanding, ending balance (in shares) | 1,019,470 | 1,048,800 | |
Restricted stock awards, shares subject to service conditions, additional disclosures [Abstract] | |||
Weighted average award date fair value, beginning of period (in dollars per share) | $ 55.68 | ||
Weighted average award date fair value, shares awarded (in dollars per share) | 39.57 | ||
Weighted average award date fair value, shares vested (in dollars per share) | 46.57 | ||
Weighted average award date fair value, shares forfeited (in dollars per share) | 51.36 | ||
Weighted average award date fair value, end of period (in dollars per share) | 45.55 | $ 55.68 | |
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |||
Weighted average award date fair value, shares awarded (in dollars per share) | $ 39.57 | ||
Subject to Market Conditions | Restricted Stock | |||
Restricted Stock Awards Activity [Roll Forward] | |||
Outstanding, beginning balance (in shares) | 1,518,336 | ||
Awarded (in shares) | 762,786 | ||
Vested (in shares) | (1,172) | ||
Forfeited (in shares) | (350,028) | ||
Outstanding, ending balance (in shares) | 1,929,922 | 1,518,336 | |
Restricted stock awards, shares subject to service conditions, additional disclosures [Abstract] | |||
Weighted average award date fair value, beginning of period (in dollars per share) | $ 29.10 | ||
Weighted average award date fair value, shares awarded (in dollars per share) | 27.30 | ||
Weighted average award date fair value, shares vested (in dollars per share) | 42.21 | ||
Weighted average award date fair value, shares forfeited (in dollars per share) | 28.41 | ||
Weighted average award date fair value, end of period (in dollars per share) | 28.50 | $ 29.10 | |
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |||
Weighted average award date fair value, shares awarded (in dollars per share) | $ 27.30 | ||
Second Vesting Option | Stock Option And Restricted Stock Plan 1992 | |||
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | |||
Stock option vesting period | 2 years | ||
Percentage of restricted stock awards that time-vest one year from date of grant (in hundredths) | 40.00% | ||
Additional percentage of restricted stock awards that time-vest two years from date of grant (in hundredths) | 60.00% |
Stock-Based and Other Compens66
Stock-Based and Other Compensation Plans Stock-Based and Other Compensation Plans (Details 3) - Restricted Stock - simulation | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Simulations | 500,000 | 500,000 |
Expected volatility (in hundredths) | 30.00% | 30.00% |
Risk-free rate (in hundredths) | 0.80% | 0.70% |
Stock-Based and Other Compens67
Stock-Based and Other Compensation Plans (Details 4) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Deferred Compensation (Income) Expense | $ (12) | $ (25) | $ 26 |
401K Plan Employer Matching Contribution, Percent | 6.00% | ||
401K Plan Employer Cash Contributions | $ 35 | 26 | $ 21 |
Mutual Fund Investments | 63 | 83 | |
Noble Energy Common Stock (at Fair Value) | 35 | 51 | |
Total Rabbi Trust Assets | 98 | 134 | |
Liability Under Related Deferred Compensation Plan | $ 98 | $ 134 | |
Number of Shares of Noble Energy Common Stock Held by Rabbi Trust | 872,276.87 | 1,073,285.68 | |
Shares of common stock held by rabbi trust (in dollars per share) | $ 16.72 | ||
Deferred compensation arrangement most shares held by individual | 800,000 | ||
Deferred compensation arrangement, percent of the most shares held by individual | 92.00% | ||
Deferred compensation distribution timeline | 4 years | ||
Deferred compensation arrangement plan, distribution amount | 200,000 | 200,000 | |
Deferred compensation arrangement shares sold | 1,009 | 19,049 | 1,008 |
Deferred compensation arrangements trust plan, distribution amount | $ 18 | $ 22 | $ 25 |
Deferred compensation liabilities | 119 | $ 84 | |
Net Prior Service (Cost) Credit, Before Tax | 88 | ||
Rabbi Trust [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Deferred Compensation (Income) Expense | $ (16) |
Stock-Based and Other Compens68
Stock-Based and Other Compensation Plans Stock-Based and Other Compensation Plans (Details 5) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined benefit plan, recognized net gain due to curtailments | $ 21 | |||
Defined benefit plan, curtailments | $ 20 | |||
Defined benefit plan, eligibility period threshold | 10 years | |||
Noncurrent Liabilities | $ (25) | $ (24) | ||
Net Prior Service (Cost) Credit, Before Tax | (88) | |||
Accumulated Other Comprehensive Income (Loss) | (33) | (90) | $ (117) | $ (113) |
Net periodic benefit cost | 16 | 11 | $ 37 | |
Retirement and Restoration Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Pension or Other Benefit Obligation | (24) | (363) | ||
Fair Value of Plan Assets | 0 | 242 | ||
Net Amount Recognized in Consolidated Balance Sheet | (24) | (121) | ||
Current Liabilities | (2) | (102) | ||
Noncurrent Liabilities | (22) | (19) | ||
Net Prior Service (Cost) Credit, Before Tax | (15) | (75) | ||
Net Gains (Losses), Before Tax | 4 | 42 | ||
Accumulated Other Comprehensive Income (Loss) | (19) | (117) | ||
Medical and Life Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Pension or Other Benefit Obligation | (5) | (7) | ||
Fair Value of Plan Assets | 0 | 0 | ||
Net Amount Recognized in Consolidated Balance Sheet | (5) | (7) | ||
Current Liabilities | (1) | (2) | ||
Noncurrent Liabilities | (4) | (5) | ||
Net Prior Service (Cost) Credit, Before Tax | 2 | 2 | ||
Net Gains (Losses), Before Tax | 0 | 0 | ||
Accumulated Other Comprehensive Income (Loss) | $ 2 | $ 2 |
Fair Value Measurements and D69
Fair Value Measurements and Disclosures of Assets and Liabilities Measured on a Nonrecurring Basis (Details\ - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015 | Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Financial Assets | ||||||
Mutual Fund Investments | $ 90 | $ 90 | $ 111 | |||
Commodity Derivative Instruments | 592 | 592 | 890 | |||
Financial Liabilities | ||||||
Commodity Derivative Instruments | 0 | 0 | 0 | |||
Portion of Deferred Compensation Liability Measured at Fair Value | (98) | (98) | (134) | |||
Asset Impairment Charges [Abstract] | ||||||
Impaired Oil and Gas Properties | 5 | $ 31 | 533 | 500 | $ 86 | |
Oil and Gas Property, Net Book Value | 1,285 | 600 | ||||
Impaired Materials and Supplies Inventory | 20 | |||||
Material and Supply Inventory, Net Book Value | $ 81 | |||||
Impaired Oil and Gas Properties, Net Book Value | $ 199 | |||||
Discount Rate for Impairment Model | 10.00% | |||||
Quoted Prices in Active Markets (Level 1) | ||||||
Financial Assets | ||||||
Mutual Fund Investments | 90 | $ 90 | 111 | |||
Commodity Derivative Instruments | 0 | 0 | 0 | |||
Financial Liabilities | ||||||
Commodity Derivative Instruments | 0 | 0 | 0 | |||
Portion of Deferred Compensation Liability Measured at Fair Value | (98) | (98) | (134) | |||
Asset Impairment Charges [Abstract] | ||||||
Impaired Oil and Gas Properties | 0 | 0 | 0 | |||
Impaired Materials and Supplies Inventory | 0 | |||||
Significant Other Observable Inputs (Level 2) | ||||||
Financial Assets | ||||||
Mutual Fund Investments | 0 | 0 | 0 | |||
Commodity Derivative Instruments | 600 | 600 | 890 | |||
Financial Liabilities | ||||||
Commodity Derivative Instruments | (8) | (8) | 0 | |||
Portion of Deferred Compensation Liability Measured at Fair Value | 0 | 0 | 0 | |||
Asset Impairment Charges [Abstract] | ||||||
Impaired Oil and Gas Properties | 0 | 0 | 0 | |||
Impaired Materials and Supplies Inventory | 0 | |||||
Significant Unobservable Inputs (Level 3) | ||||||
Financial Assets | ||||||
Mutual Fund Investments | 0 | 0 | $ 0 | |||
Commodity Derivative Instruments | 0 | 0 | ||||
Financial Liabilities | ||||||
Commodity Derivative Instruments | 0 | 0 | $ 0 | |||
Portion of Deferred Compensation Liability Measured at Fair Value | 0 | 0 | 0 | |||
Asset Impairment Charges [Abstract] | ||||||
Impaired Oil and Gas Properties | 752 | 100 | $ 113 | |||
Impaired Materials and Supplies Inventory | 61 | |||||
Adjustment | ||||||
Financial Assets | ||||||
Mutual Fund Investments | 0 | 0 | 0 | |||
Commodity Derivative Instruments | (8) | (8) | 0 | |||
Financial Liabilities | ||||||
Commodity Derivative Instruments | 8 | 8 | 0 | |||
Portion of Deferred Compensation Liability Measured at Fair Value | $ 0 | $ 0 | $ 0 |
Fair Value Measurements and D70
Fair Value Measurements and Disclosures (Details 2) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt, Net of Unamortized Discount | $ 7,105 | $ 6,179 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt, Net of Unamortized Discount | $ 7,626 | $ 5,758 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 20, 2015 | Mar. 03, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||
Income (Loss) from Continuing Operations | $ (2,441) | $ 1,214 | $ 907 | ||||
Earnings Adjustment from Assumed Conversion of Dilutive Shares of Common Stock in Rabbi Trust | [1] | 0 | (17) | 0 | |||
Income (Loss) from Continuing Operations Used for Diluted Earnings (Loss) Per Share Calculation | $ (2,441) | $ 1,197 | $ 907 | ||||
Weighted Average Number of Shares Outstanding, Basic (in shares) | 402,000,000 | 361,000,000 | 359,000,000 | ||||
Incremental Shares From Assumed Conversion of Dilutive Stock Options and Restricted Stock (in shares) | 0 | 6,000,000 | 4,000,000 | ||||
Weighted Average Number of Shares Outstanding, Diluted (in shares) | 402,000,000 | 367,000,000 | 363,000,000 | ||||
Earnings (Loss) from Continuing Operations Per Share, Basic (in dollars per share) | $ (6.07) | $ 3.36 | $ 2.53 | ||||
Earnings (Loss) from Continuing Operations Per Share, Diluted (in dollars per share) | $ (6.07) | $ 3.27 | $ 2.50 | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 10,000,000 | 3,000,000 | 3,000,000 | ||||
Weighted average Exercise Price of antidilutive options (in dollars per share) | $ 52.39 | $ 60.30 | $ 53.40 | ||||
Shares issued | 24,150,000 | 0 | |||||
Shares of Noble Energy common stock issued to Rosetta shareholders | 41,048,240 | 0 | |||||
Underwritten Public Offering | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||
Shares issued | 21,000,000 | 24,150,000 | |||||
Rosetta Resources, Inc | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||
Shares of Noble Energy common stock issued to Rosetta shareholders | 41,000,000 | ||||||
[1] | Consistent with GAAP, when dilutive, deferred compensation gains or losses, net of tax, are excluded from net income while our common shares held in the rabbi trust are included in the diluted share count. For this reason, the diluted earnings (loss) per share calculation for the year ended December 31, 2014 excludes deferred compensation gains, net of tax.(2) The weighted average number of shares outstanding includes the weighted average shares of common stock issued in connection with the underwritten public offering of 24.15 million shares of Noble Energy common stock in first quarter 2015 and issued in connection with the exchange of approximately 41 million shares for all outstanding shares of Rosetta common stock on July 20, 2015. |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2015USD ($)Operating_Segments | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | |
Segment Reporting Information [Line Items] | ||||||
Number of Operating Segments | Operating_Segments | 4 | |||||
Oil and Gas Sales Revenue | $ 3,043 | $ 4,931 | $ 4,809 | |||
Income from Equity Method Investees | 90 | 170 | 206 | |||
Revenues | 3,133 | 5,101 | 5,015 | |||
DD&A | 2,131 | 1,759 | 1,568 | |||
Asset Impairments | $ 5 | $ 31 | 533 | 500 | 86 | |
Goodwill Impairment | 779 | 0 | 0 | |||
(Gain) Loss on Divestitures | 0 | (73) | (36) | |||
Cash (Received) Paid in Settlement of Commodity Derivative Instruments | (501) | (976) | 133 | |||
Income (Loss) from Continuing Operations Before Income Taxes | (2,219) | 1,710 | 1,344 | |||
Equity Method Investments | 453 | 453 | 325 | 437 | ||
Additions to Long-Lived Assets | 3,062 | 5,152 | 4,534 | |||
Goodwill at End of Year (2) | 0 | 0 | 620 | 627 | ||
Total Assets at End of Year | 24,196 | 24,196 | 22,518 | 19,598 | ||
Foreign Countries | ||||||
Segment Reporting Information [Line Items] | ||||||
Other Revenue, Net | 1,100 | 1,800 | 1,800 | |||
Total Assets at End of Year | 3,900 | 3,900 | 4,400 | $ 4,500 | ||
United States | ||||||
Segment Reporting Information [Line Items] | ||||||
Oil and Gas Sales Revenue | 1,961 | 3,175 | 3,004 | |||
Income from Equity Method Investees | 51 | 9 | 0 | |||
Revenues | 2,012 | 3,184 | 3,004 | |||
DD&A | 1,692 | 1,318 | 1,117 | |||
Asset Impairments | 158 | 392 | 39 | |||
Goodwill Impairment | 779 | |||||
(Gain) Loss on Divestitures | (34) | (36) | ||||
Cash (Received) Paid in Settlement of Commodity Derivative Instruments | (347) | (604) | 67 | |||
Income (Loss) from Continuing Operations Before Income Taxes | (1,553) | 1,150 | 790 | |||
Equity Method Investments | 226 | 226 | 82 | 184 | ||
Additions to Long-Lived Assets | 2,534 | 4,389 | 3,475 | |||
Goodwill at End of Year (2) | 0 | 0 | 620 | 627 | ||
Total Assets at End of Year | 18,831 | 18,831 | 16,365 | 13,094 | ||
West Africa | ||||||
Segment Reporting Information [Line Items] | ||||||
Oil and Gas Sales Revenue | 580 | 1,177 | 1,252 | |||
Income from Equity Method Investees | 39 | 161 | 206 | |||
Revenues | 619 | 1,338 | 1,458 | |||
DD&A | 326 | 299 | 261 | |||
Asset Impairments | 339 | 0 | 0 | |||
Goodwill Impairment | 0 | |||||
(Gain) Loss on Divestitures | 0 | 0 | ||||
Cash (Received) Paid in Settlement of Commodity Derivative Instruments | (154) | (372) | 66 | |||
Income (Loss) from Continuing Operations Before Income Taxes | (77) | 1,222 | 936 | |||
Equity Method Investments | 227 | 227 | 223 | 234 | ||
Additions to Long-Lived Assets | 124 | 261 | 453 | |||
Goodwill at End of Year (2) | 0 | 0 | 0 | 0 | ||
Total Assets at End of Year | 2,299 | 2,299 | 2,763 | 3,199 | ||
Eastern Mediterranean | ||||||
Segment Reporting Information [Line Items] | ||||||
Oil and Gas Sales Revenue | 497 | 479 | 391 | |||
Income from Equity Method Investees | 0 | 0 | 0 | |||
Revenues | 497 | 479 | 391 | |||
DD&A | 70 | 63 | 97 | |||
Asset Impairments | 36 | 14 | 47 | |||
Goodwill Impairment | 0 | |||||
(Gain) Loss on Divestitures | 0 | 0 | ||||
Cash (Received) Paid in Settlement of Commodity Derivative Instruments | 0 | 0 | 0 | |||
Income (Loss) from Continuing Operations Before Income Taxes | 306 | 284 | 162 | |||
Equity Method Investments | 0 | 0 | 0 | 0 | ||
Additions to Long-Lived Assets | 147 | 201 | 420 | |||
Goodwill at End of Year (2) | 0 | 0 | 0 | 0 | ||
Total Assets at End of Year | 2,677 | 2,677 | 2,806 | 2,753 | ||
Other Int'l & Corporate | ||||||
Segment Reporting Information [Line Items] | ||||||
Oil and Gas Sales Revenue | 5 | 100 | 162 | |||
Income from Equity Method Investees | 0 | 0 | 0 | |||
Revenues | 5 | 100 | 162 | |||
DD&A | 43 | 79 | 93 | |||
Asset Impairments | 0 | 94 | 0 | |||
Goodwill Impairment | 0 | |||||
(Gain) Loss on Divestitures | (39) | 0 | ||||
Cash (Received) Paid in Settlement of Commodity Derivative Instruments | 0 | 0 | 0 | |||
Income (Loss) from Continuing Operations Before Income Taxes | (895) | (946) | (544) | |||
Equity Method Investments | 0 | 0 | 20 | 19 | ||
Additions to Long-Lived Assets | 257 | 301 | 186 | |||
Goodwill at End of Year (2) | 0 | 0 | 0 | 0 | ||
Total Assets at End of Year | $ 389 | $ 389 | $ 584 | $ 552 |
Concentration of Risk (Details)
Concentration of Risk (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Concentration of credit risk [Abstract] | |||
Short term deposits original maturities at time of purchase, description | three months or less | ||
Accounts receivables, majority of accounts payment terms, description | 30 days or less | ||
Glencore Energy UK Ltd | |||
Concentration Risk [Line Items] | |||
Percentage of crude oil sales (in hundredths) | 30.00% | 32.00% | 34.00% |
Percentage of total oil, gas & NGL sales (in hundredths) | 18.00% | 22.00% | 25.00% |
Shell | |||
Concentration Risk [Line Items] | |||
Percentage of crude oil sales (in hundredths) | 18.00% | 15.00% | 17.00% |
Percentage of total oil, gas & NGL sales (in hundredths) | 11.00% | 10.00% | 13.00% |
Additional Shareholders' Equi74
Additional Shareholders' Equity Information (Details) - USD ($) $ / shares in Units, $ in Millions | Mar. 25, 2015 | Mar. 03, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Components And Changes In Accumulated Other Comprehensive Income [Line Items] | ||||||
Common Stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 | ||||
Proceeds from Issuance of Shares of Common Stock to Public, Net of Offering Costs | $ 1,112 | $ 0 | $ 0 | |||
Repayments of Long-term Lines of Credit | $ 70 | $ 1,050 | $ 900 | |||
Common stock shares issued [Rollforward] | ||||||
Shares, beginning of period (in shares) | 402,329,325 | 402,329,325 | 399,841,717 | |||
Exercise of common stock options (in shares) | 343,145 | 1,459,490 | ||||
Restricted stock awards, net of forfeitures (in shares) | 1,847,802 | 1,028,118 | ||||
Public Equity Offering (in shares) | 24,150,000 | 0 | ||||
Shares exchanged in Rosetta Merger (in shares) | 41,048,240 | 0 | ||||
Shares, end of period (in shares) | 469,718,512 | 402,329,325 | ||||
Treasury stock [Rollforward] | ||||||
Shares, beginning of period (in shares) | 37,635,890 | 37,635,890 | 37,600,051 | |||
Shares received from employees in payment of withholding taxes due on vesting of shares of restricted stock (in shares) | 490,744 | 254,888 | ||||
Rabbi Trust Shares Distributed and/or Sold (in shares) | (201,009) | (219,049) | ||||
Shares, end of period (in shares) | 37,925,625 | 37,635,890 | ||||
Accumulated Other Comprehensive Loss | ||||||
Beginning Balance | $ (90) | $ (90) | $ (117) | $ (113) | ||
Realized Amounts Reclassified Into Earnings | 63 | 12 | 13 | |||
Unrealized Change in Fair Value | (6) | 15 | (17) | |||
End Balance | $ (33) | $ (90) | $ (117) | |||
Effective income tax rate applied to AOCI (in hundredths) | 35.00% | 35.00% | 35.00% | |||
Deferred loss | $ (22) | |||||
Interest Rate Cash Flow Hedges | ||||||
Accumulated Other Comprehensive Loss | ||||||
Beginning Balance | (23) | (23) | $ (24) | $ (25) | ||
Realized Amounts Reclassified Into Earnings | 1 | 1 | 1 | |||
Unrealized Change in Fair Value | 0 | 0 | 0 | |||
End Balance | (22) | (23) | (24) | |||
Pension- Related and Other | ||||||
Accumulated Other Comprehensive Loss | ||||||
Beginning Balance | $ (67) | (67) | (93) | (88) | ||
Realized Amounts Reclassified Into Earnings | 62 | 11 | 12 | |||
Unrealized Change in Fair Value | (6) | 15 | (17) | |||
End Balance | (11) | $ (67) | $ (93) | |||
Underwritten Public Offering | ||||||
Components And Changes In Accumulated Other Comprehensive Income [Line Items] | ||||||
Common Stock, par value per share (in dollars per share) | $ 0.01 | |||||
Sales price (in dollars per share) | $ 47.50 | |||||
Proceeds from Issuance of Shares of Common Stock to Public, Net of Offering Costs | 1,100 | |||||
Repayments of Long-term Lines of Credit | $ 150 | |||||
Common stock shares issued [Rollforward] | ||||||
Public Equity Offering (in shares) | 21,000,000 | 24,150,000 | ||||
Over-Allotment Option | ||||||
Components And Changes In Accumulated Other Comprehensive Income [Line Items] | ||||||
Common Stock, par value per share (in dollars per share) | $ 0.01 | |||||
Common stock shares issued [Rollforward] | ||||||
Public Equity Offering (in shares) | 3.15 |
Commitments and Contingencies75
Commitments and Contingencies (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2015USD ($) | Mar. 31, 2012USD ($) | Dec. 31, 2015USD ($)$ / MMBTUMMBTU / d | Dec. 31, 2014USD ($) | |
Other Commitments [Line Items] | ||||
Rental Expense for office buildings and oil and gas operations equipment | $ 50,000,000 | $ 84,000,000 | $ 69,000,000 | |
Consent Decree | ||||
Other Commitments [Line Items] | ||||
Civil penalty | 4,950,000 | |||
Mitigation projects | $ 4,500,000 | |||
Supplemental environmental projects | $ 4,000,000 | |||
CONSOL Carried Cost Obligation | ||||
Other Commitments [Line Items] | ||||
Ownership interest in equity method investments (in hundredths) | 50.00% | 50.00% | ||
Maximum amount to be paid each calendar year for funding of future drilling and completion costs | $ 400,000,000 | |||
Remaining obligation of joint venture's future drilling and completion costs | $ 1,600,000,000 | $ 1,600,000,000 | ||
Natural gas price agreed upon benchmark, average | $ / MMBTU | 4 | |||
Marcellus Shale Firm Transportation Agreement | ||||
Other Commitments [Line Items] | ||||
Oil and Gas Delivery Commitments and Contracts, Daily Production | MMBTU / d | 320 | |||
Long-term Purchase Commitment, Amount | $ 1,500,000,000 | |||
Long Term Purchase Commitment, Time Period, Term | 15 years | |||
Pending Litigation | Unfavorable Regulatory Action | ||||
Other Commitments [Line Items] | ||||
Reduced penalty | $ 247,625 | |||
Maximum reduction to penalty | 80.00% |
Commitments and Contingencies76
Commitments and Contingencies (Details 2) $ in Millions | Dec. 31, 2015USD ($) |
Other Commitments [Line Items] | |
2,016 | $ 626 |
2,017 | 540 |
2,018 | 454 |
2,019 | 397 |
2,020 | 353 |
2021 and Thereafter | 2,172 |
Total | 4,542 |
Drilling, Equipment, and Purchase Obligations | |
Other Commitments [Line Items] | |
2,016 | 291 |
2,017 | 167 |
2,018 | 22 |
2,019 | 16 |
2,020 | 10 |
2021 and Thereafter | 9 |
Total | 515 |
Transportation and Gathering Obligations | |
Other Commitments [Line Items] | |
2,016 | 217 |
2,017 | 248 |
2,018 | 314 |
2,019 | 305 |
2,020 | 270 |
2021 and Thereafter | 1,816 |
Total | 3,170 |
Operating Lease Obligations | |
Other Commitments [Line Items] | |
2,016 | 42 |
2,017 | 44 |
2,018 | 39 |
2,019 | 26 |
2,020 | 26 |
2021 and Thereafter | 168 |
Total | 345 |
Capital Lease and Other Obligations | |
Other Commitments [Line Items] | |
2,016 | 76 |
2,017 | 81 |
2,018 | 79 |
2,019 | 50 |
2,020 | 47 |
2021 and Thereafter | 179 |
Total | $ 512 |