Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 21, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity Registrant Name | 'SOUTHWESTERN ENERGY CO | ' |
Entity Central Index Key | '0000007332 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 353,114,947 |
Trading Symbol | 'SWN | ' |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Operating Revenues: | ' | ' | ' | ' | ||||
Gas sales | $645 | $617 | $2,155 | $1,736 | ||||
Gas marketing | 227 | 201 | 765 | 582 | ||||
Oil sales | 6 | 4 | 13 | 12 | ||||
Gas gathering | 50 | 46 | 143 | 134 | ||||
Total Operating Revenues | 928 | 868 | 3,076 | 2,464 | ||||
Operating Costs and Expenses: | ' | ' | ' | ' | ||||
Gas purchases - midstream services | 220 | 195 | 752 | 575 | ||||
Operating expenses | 108 | 90 | 309 | 237 | ||||
General and administrative expenses | 54 | 51 | 162 | 136 | ||||
Depreciation, depletion and amortization | 238 | 205 | 693 | 571 | ||||
Taxes, other than income taxes | 22 | 18 | 72 | 59 | ||||
Total Operating Costs and Expenses | 642 | 559 | 1,988 | 1,578 | ||||
Operating Income | 286 | 309 | 1,088 | 886 | ||||
Interest Expense: | ' | ' | ' | ' | ||||
Interest on debt | 25 | 25 | 75 | 74 | ||||
Other interest charges | 2 | 1 | 4 | 3 | ||||
Interest capitalized | -14 | -15 | -40 | -48 | ||||
Total Interest Expense | 13 | [1] | 11 | [1] | 39 | [1] | 29 | [1] |
Other Gain, Net | ' | ' | 1 | ' | ||||
Gain (Loss) on Derivatives | 78 | 12 | -29 | 75 | ||||
Income Before Income Taxes | 351 | 310 | 1,021 | 932 | ||||
Provision (Benefit) for Income Taxes: | ' | ' | ' | ' | ||||
Current | 32 | -16 | 34 | ' | ||||
Deferred | 108 | 140 | 375 | 373 | ||||
Total Provision for Income Taxes | 140 | [1] | 124 | [1] | 409 | [1] | 373 | [1] |
Net Income (Loss) | $211 | $186 | $612 | $559 | ||||
Earnings Per Share: | ' | ' | ' | ' | ||||
Basic | $0.60 | $0.53 | $1.74 | $1.60 | ||||
Diluted | $0.60 | $0.53 | $1.74 | $1.59 | ||||
Weighted Average Common Shares Outstanding: | ' | ' | ' | ' | ||||
Basic | 351,457,043 | 350,517,337 | 351,357,913 | 350,334,634 | ||||
Diluted | 352,327,250 | [2],[3] | 351,222,830 | [2],[3] | 352,334,546 | [2],[3] | 351,014,974 | [2],[3] |
[1] | Interest expense and the provision for income taxes by segment are allocated as they are incurred at the corporate level. | |||||||
[2] | Options for 1,254,842 shares and 27,916 shares of restricted stock were excluded from the calculation for the three months ended September 30, 2014 because they would have had an antidilutive effect. Options for 1,550,838 shares and 15,703 shares of restricted stock were excluded from the calculation for the three months ended September 30, 2013 because they would have had an antidilutive effect. | |||||||
[3] | Options for 1,111,128 shares and 24,215 shares of restricted stock were excluded from the calculation for the nine months ended September 30, 2014 because they would have had an antidilutive effect. Options for 1,848,566 shares and 169,261 shares of restricted stock were excluded from the calculation for the nine months ended September 30, 2013 because they would have had an antidilutive effect. |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ' | ' | ' | ' | ||||
Net income | $211 | $186 | $612 | $559 | ||||
Change in derivatives: | ' | ' | ' | ' | ||||
Settlements | -11 | [1] | -56 | [1] | 29 | [1] | -131 | [1] |
Ineffectiveness | -2 | [2] | 1 | [2] | -1 | [2] | 1 | [2] |
Change in fair value of derivative instruments | 48 | [3] | 7 | [3] | -1 | [3] | 30 | [3] |
Total change in derivatives | 35 | -48 | 27 | -100 | ||||
Change in value of pension and other postretirement liabilities: | ' | ' | ' | ' | ||||
Amortization of prior service cost included in net periodic pension cost | ' | ' | ' | 1 | [4] | |||
Change in currency translation adjustment | -4 | 1 | -4 | -2 | ||||
Comprehensive income | $242 | $139 | $635 | $458 | ||||
[1] | Net of $(7), $(37), $19 and $(87) million in taxes for the three months ended September 30, 2014 and 2013, and nine months ended September 30, 2014 and 2013, respectively. | |||||||
[2] | Net of $(1), $0, $0 and $1 million in taxes for the three months ended September 30, 2014 and 2013, and nine months ended September 30, 2014 and 2013, respectively. | |||||||
[3] | Net of $32, $5, $(1) and $21 million in taxes for the three months ended September 30, 2014 and 2013, and nine months ended September 30, 2014 and 2013, respectively. | |||||||
[4] | Net of $0, $0, $0 and $1 million in taxes for the three months ended September 30, 2014 and 2013, and nine months ended September 30, 2014 and 2013, respectively. |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ' | ' | ' | ' |
Settlements tax | ($7) | ($37) | $19 | ($87) |
Ineffectiveness tax | -1 | 0 | 0 | 1 |
Change in fair value of derivative instruments tax | 32 | 5 | -1 | 21 |
Amortization of prior service cost included in net periodic pension cost tax | $0 | $0 | $0 | $1 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Current assets: | ' | ' | ||
Cash and cash equivalents | $20 | $23 | ||
Accounts receivable | 457 | 464 | ||
Inventories | 37 | 38 | ||
Derivative assets | 117 | 71 | ||
Other current assets | 29 | 48 | ||
Total current assets | 660 | 644 | ||
Natural gas and oil properties, using the full cost method, including $1,037 million in 2014 and $957 million in 2013 excluded from amortization | 14,945 | 13,294 | ||
Gathering systems | 1,415 | 1,306 | ||
Other | 685 | 703 | ||
Less: Accumulated depreciation, depletion and amortization | -8,652 | -8,006 | ||
Total property and equipment, net | 8,393 | 7,297 | ||
Other long-term assets | 124 | 107 | ||
TOTAL ASSETS | 9,177 | 8,048 | ||
Current liabilities: | ' | ' | ||
Accounts payable | 690 | 507 | ||
Taxes payable | 69 | 68 | ||
Interest payable | 14 | 33 | ||
Current deferred income taxes | 32 | 24 | ||
Derivative liabilities | 36 | 7 | ||
Other current liabilities | 47 | 49 | ||
Total current liabilities | 888 | 688 | ||
Long-Term Debt | 1,806 | 1,950 | ||
Deferred income taxes | 1,913 | 1,532 | ||
Pension and other postretirement liabilities | 17 | 16 | ||
Other long-term liabilities | 260 | 240 | ||
Total long-term liabilities | 3,996 | 3,738 | ||
Commitments and contingencies (Note 10) | ' | ' | ||
Equity: | ' | ' | ||
Common stock, $0.01 par value; authorized 1,250,000,000 shares; issued 353,125,665 shares in 2014 and 352,938,584 in 2013 | 4 | 4 | ||
Additional paid-in capital | 1,005 | 969 | ||
Retained earnings | 3,265 | 2,653 | ||
Accumulated other comprehensive income (loss) | 19 | [1] | -4 | [1] |
Total equity | 4,293 | 3,622 | ||
TOTAL LIABILITIES AND EQUITY | $9,177 | $8,048 | ||
[1] | All amounts are net of tax. |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
CONDENSED CONSOLIDATED BALANCE SHEETS [Abstract] | ' | ' |
Natural gas and oil properties, using the full cost method, costs excluded from amortization | $1,037 | $957 |
Common Stock, Par Value | $0.01 | $0.01 |
Common Stock, Authorized, Shares | 1,250,000,000 | 1,250,000,000 |
Common Stock, Issued, Shares | 353,125,665 | 352,938,584 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash Flows From Operating Activities | ' | ' |
Net income | $612 | $559 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation, depletion and amortization | 693 | 571 |
Amortization of debt issuance cost | 3 | 3 |
Deferred income taxes | 375 | 373 |
(Gain) loss on derivatives excluding derivatives, settled | 7 | -72 |
Stock-based compensation | 13 | 9 |
Other | -3 | 3 |
Change in assets and liabilities: | ' | ' |
Accounts receivable | 7 | -67 |
Inventories | 2 | -13 |
Accounts payable | 52 | 45 |
Taxes payable (receivable) | 1 | -15 |
Interest payable | -10 | -8 |
Advances from partners | ' | -65 |
Other assets and liabilities | 22 | 55 |
Net cash provided by operating activities | 1,774 | 1,378 |
Cash Flows From Investing Activities | ' | ' |
Capital investments | -1,713 | -1,728 |
Proceeds from sale of property and equipment | 20 | 3 |
Transfers from restricted cash | ' | 9 |
Other | 6 | 4 |
Net cash used in investing activities | -1,687 | -1,712 |
Cash Flows From Financing Activities | ' | ' |
Payments on current portion of long-term debt | -1 | -1 |
Payments on revolving long-term debt | -3,573 | -2,135 |
Borrowings under revolving long-term debt | 3,429 | 2,378 |
Change in bank drafts outstanding | 45 | 50 |
Proceeds from exercise of common stock options | 10 | 7 |
Net cash (used in) provided by financing activities | -90 | 299 |
Decrease in cash and cash equivalents | -3 | -35 |
Cash and cash equivalents at beginning of year | 23 | 54 |
Cash and cash equivalents at end of period | $20 | $19 |
CONDENSED_CONSOLIDATED_STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (USD $) | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Total | |
In Millions, unless otherwise specified | ||||||
Balance at Dec. 31, 2013 | $4 | $969 | $2,653 | ($4) | $3,622 | |
Balance, shares at Dec. 31, 2013 | 353 | ' | ' | ' | ' | |
Comprehensive income: | ' | ' | ' | ' | ' | |
Net income | ' | ' | 612 | ' | 612 | |
Other comprehensive income | ' | ' | ' | 23 | 23 | [1] |
Comprehensive income | ' | ' | 612 | 23 | 635 | |
Stock-based compensation | ' | 26 | ' | ' | 26 | |
Exercise of stock options | ' | 10 | ' | ' | 10 | |
Balance at Sep. 30, 2014 | $4 | $1,005 | $3,265 | $19 | $4,293 | |
Balance, shares at Sep. 30, 2014 | 353 | ' | ' | ' | ' | |
[1] | All amounts are net of tax. |
Basis_Of_Presentation
Basis Of Presentation | 9 Months Ended |
Sep. 30, 2014 | |
Basis Of Presentation [Abstract] | ' |
Basis Of Presentation | ' |
(1) BASIS OF PRESENTATION | |
Southwestern Energy Company (including its subsidiaries, collectively, “we”, “Southwestern” or the “Company”) is an independent energy company engaged in natural gas and oil exploration, development and production. The Company engages in natural gas and oil exploration and production, natural gas gathering and natural gas marketing through its subsidiaries. Southwestern’s exploration, development and production (“E&P”) activities are focused within the United States. The Company is actively engaged in exploration and production activities in Arkansas, where we are targeting the unconventional gas reservoir known as the Fayetteville Shale, in Pennsylvania, where we are targeting the unconventional gas reservoir known as the Marcellus Shale, and to a lesser extent in Colorado, Louisiana, Texas and the Arkoma Basin in Arkansas and Oklahoma. The Company also actively seeks to find and develop new oil and natural gas plays with significant exploration and exploitation potential. Southwestern’s natural gas gathering and marketing (“Midstream Services”) activities primarily support the Company’s E&P activities in Arkansas, Pennsylvania, Louisiana and Texas. | |
The accompanying unaudited condensed consolidated financial statements were prepared using accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission. Certain information relating to the Company’s organization and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been appropriately condensed or omitted in this Quarterly Report on Form 10-Q. The Company believes the disclosures made are adequate to make the information presented not misleading. | |
The unaudited condensed consolidated financial statements contained in this report include all normal and recurring material adjustments that, in the opinion of management, are necessary for a fair statement of the financial position, results of operations and cash flows for the interim periods presented herein. It is recommended that these unaudited condensed consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 (“2013 Annual Report on Form 10-K”). | |
The Company’s significant accounting policies, which have been reviewed and approved by the Audit Committee of the Company’s Board of Directors, are summarized in Note 1 in the Notes to the Consolidated Financial Statements included in the Company’s 2013 Annual Report on Form 10-K. | |
Certain reclassifications have been made to the prior year financial statements to conform to the 2014 presentation. The effects of the reclassifications were not material to the Company’s unaudited condensed consolidated financial statements. | |
Acquisitions_And_Divestitures
Acquisitions And Divestitures | 9 Months Ended |
Sep. 30, 2014 | |
Acquisitions And Divestitures [Abstract] | ' |
Acquisitions And Divestitures | ' |
(2) ACQUISITIONS AND DIVESTITURES | |
In March 2014 and July 2014, the Company entered into several agreements to purchase approximately 380,000 net acres in northwest Colorado principally in the Niobrara formation for approximately $213 million. The Company utilized its Credit Facility to finance these acquisitions. The Company closed the acquisitions in the second and third quarters and accounted for them as asset acquisitions. | |
In April 2013, the Company entered into a definitive purchase agreement to acquire natural gas properties located in Pennsylvania prospective for the Marcellus Shale for approximately $93 million, subject to closing conditions. The Company utilized its previous revolving credit facility to finance the acquisition. The Company closed on the acquisition during the second quarter of 2013 and accounted for it as an asset acquisition. | |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2014 | |
Inventory [Abstract] | ' |
Inventory | ' |
(3) INVENTORY | |
Inventory recorded in current assets includes $33 million at September 30, 2014 and $34 million at December 31, 2013 for tubular and other equipment used in the Company’s E&P segment, and $2 million at September 30, 2014 and $4 million at December 31, 2013 for natural gas in underground storage owned by the E&P segment. Also included at September 30, 2014 was $2 million for natural gas in underground storage owned by Midstream Services segment. | |
Other long-term assets include $16 million at September 30, 2014 and $15 million at December 31, 2013, for inventory held by the Midstream Services segment consisting primarily of pipe that will be used to construct gathering systems. | |
Natural_Gas_And_Oil_Properties
Natural Gas And Oil Properties | 9 Months Ended |
Sep. 30, 2014 | |
Natural Gas And Oil Properties [Abstract] | ' |
Natural Gas And Oil Properties | ' |
(4) NATURAL GAS AND OIL PROPERTIES | |
The Company utilizes the full cost method of accounting for costs related to the exploration, development and acquisition of natural gas and oil reserves. Under this method, all such costs (productive and nonproductive), including salaries, benefits and other internal costs directly attributable to these activities are capitalized on a country by country basis and amortized over the estimated lives of the properties using the units-of-production method. These capitalized costs, less accumulated amortization and related deferred income taxes, are subject to a ceiling test that limits such pooled costs to the aggregate of the present value of future net revenues attributable to proved natural gas and oil reserves, net of taxes, discounted at 10 percent plus the lower of cost or market value of unproved properties. Any costs in excess of the ceiling are written off as a non-cash expense. The expense may not be reversed in future periods, even though higher natural gas and oil prices may subsequently increase the ceiling. Companies utilizing the full-cost method must use the average quoted price from the first day of each month from the previous 12 months, including the impact of derivatives qualifying as cash flow hedges, to calculate the ceiling value of their reserves. | |
Using the average quoted price from the first day of each month from the previous 12 months for Henry Hub natural gas of $4.24 per MMBtu and $95.56 per barrel for West Texas Intermediate oil, adjusted for market differentials, the Company’s net book value of its United States natural gas and oil properties did not exceed the ceiling amount and did not result in a ceiling test impairment at September 30, 2014. Cash flow hedges of natural gas production in place increased the ceiling value by $14 million, net of tax, at September 30, 2014. Decreases in average quoted prices, adjusted for market differentials, from September 30, 2014 levels as well as changes in production rates, levels of reserves, capitalized costs, the evaluation of costs excluded from amortization, future development costs, service costs and taxes could result in future ceiling test impairments. | |
Using the average quoted price from the first day of each month from the previous 12 months for Henry Hub natural gas of $3.60 per MMBtu and $91.56 per barrel for West Texas Intermediate oil, adjusted for market differentials, the Company’s net book value of its United States natural gas and oil properties did not exceed the ceiling amount and did not result in a ceiling test impairment at September 30, 2013. Cash flow hedges of natural gas production in place increased the ceiling by $79 million, net of tax, at September 30, 2013. | |
All of the Company’s costs directly associated with the acquisition and evaluation of properties in Canada relating to its exploration program at September 30, 2014 were unproved and did not exceed the ceiling amount. If the exploration program in Canada is unsuccessful on all or a portion of these properties, including the effects of changes in laws or regulations due to the new government in New Brunswick or otherwise, a ceiling test impairment may result in the future. | |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||||||||||||||
(5) EARNINGS PER SHARE | |||||||||||||||||||||||||||||
Basic earnings per share is computed by dividing net income (the numerator) by the weighted-average number of common shares outstanding for the period (the denominator). Diluted earnings per share is similarly calculated except that the denominator is increased using the treasury stock method to reflect the potential dilution that could occur if outstanding stock options were exercised and unvested restricted stock and performance unit awards were vested at the end of the applicable period. | |||||||||||||||||||||||||||||
The following table presents the computation of earnings per share for the three and nine month periods ended September 30, 2014 and 2013: | |||||||||||||||||||||||||||||
For the three months ended | For the nine months ended | ||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
Net income (in millions) | $ | 211 | $ | 186 | $ | 612 | $ | 559 | |||||||||||||||||||||
Number of common shares: | |||||||||||||||||||||||||||||
Weighted average outstanding | 351,457,043 | 350,517,337 | 351,357,913 | 350,334,634 | |||||||||||||||||||||||||
Issued upon assumed exercise of outstanding stock options | 235,944 | 373,152 | 354,940 | 442,678 | |||||||||||||||||||||||||
Effect of issuance of nonvested restricted common stock | 514,668 | 332,341 | 484,786 | 237,662 | |||||||||||||||||||||||||
Effect of issuance of nonvested performance units | 119,595 | – | 136,907 | – | |||||||||||||||||||||||||
Weighted average and potential dilutive outstanding (1)(2) | 352,327,250 | 351,222,830 | 352,334,546 | 351,014,974 | |||||||||||||||||||||||||
Earnings per share: | |||||||||||||||||||||||||||||
Basic | $ | 0.60 | $ | 0.53 | $ | 1.74 | $ | 1.60 | |||||||||||||||||||||
Diluted | $ | 0.60 | $ | 0.53 | $ | 1.74 | $ | 1.59 | |||||||||||||||||||||
-1 | Options for 1,254,842 shares and 27,916 shares of restricted stock were excluded from the calculation for the three months ended September 30, 2014 because they would have had an antidilutive effect. Options for 1,550,838 shares and 15,703 shares of restricted stock were excluded from the calculation for the three months ended September 30, 2013 because they would have had an antidilutive effect. | ||||||||||||||||||||||||||||
-2 | Options for 1,111,128 shares and 24,215 shares of restricted stock were excluded from the calculation for the nine months ended September 30, 2014 because they would have had an antidilutive effect. Options for 1,848,566 shares and 169,261 shares of restricted stock were excluded from the calculation for the nine months ended September 30, 2013 because they would have had an antidilutive effect. | ||||||||||||||||||||||||||||
Derivatives_And_Risk_Managemen
Derivatives And Risk Management | 9 Months Ended | ||||||||||||||
Sep. 30, 2014 | |||||||||||||||
Derivatives And Risk Management [Abstract] | ' | ||||||||||||||
Derivatives And Risk Management | ' | ||||||||||||||
(6) DERIVATIVES AND RISK MANAGEMENT | |||||||||||||||
The Company is exposed to volatility in market prices and basis differentials for natural gas and crude oil which impacts the predictability of its cash flows related to the sale of natural gas and oil, and is exposed to volatility in interest rates. These risks are managed by the Company’s use of certain derivative financial instruments. At September 30, 2014 and December 31, 2013, the Company’s derivative financial instruments consisted of fixed price swaps, basis swaps, fixed price call options, and interest rate swaps. A description of the Company’s derivative financial instruments is provided below: | |||||||||||||||
Fixed price swaps | The Company receives a fixed price for the contract and pays a floating market price to the counterparty. | ||||||||||||||
Basis swaps | Arrangements that guarantee a price differential for natural gas from a specified delivery point. The Company receives a payment from the counterparty if the price differential is greater than the stated terms of the contract and pays the counterparty if the price differential is less than the stated terms of the contract. | ||||||||||||||
Fixed price call options | The Company sells fixed price call options in exchange for a premium. At the time of settlement, if the market price exceeds the fixed price of the call option, the Company pays the counterparty such excess on sold fixed price call options. If the market price settles below the fixed price of the call option, no payment is due from either party. | ||||||||||||||
Interest rate swaps | Interest rate swaps are used to fix or float interest rates on existing or anticipated indebtedness. The purpose of these instruments is to manage the Company’s existing or anticipated exposure to unfavorable interest rate changes. | ||||||||||||||
GAAP requires that all derivatives be recognized in the balance sheet as either an asset or liability and be measured at fair value other than transactions for which normal purchase/normal sale is applied. Certain criteria must be satisfied in order for derivative financial instruments to be classified and accounted for as either a cash flow or a fair value hedge. Accounting for qualifying hedges requires a derivative’s gains and losses to be recorded either in earnings or as a component of other comprehensive income. Gains and losses on derivatives that are not designated for hedge accounting treatment or that do not meet hedge accounting requirements are recorded in earnings as a component of gain (loss) on derivatives. Within the gain (loss) on derivatives component of the statement of operations are gains (losses) on derivatives excluding derivatives, settled and gains (losses) on derivatives, settled. The Company calculates gains (losses) on derivatives, settled, as the summation of gains and losses on positions which have settled within the period. | |||||||||||||||
The Company utilizes counterparties for its derivative instruments that it believes are creditworthy at the time the transactions are entered into and the Company closely monitors the credit ratings of these counterparties. Additionally, the Company performs both quantitative and qualitative assessments of these counterparties based on their credit ratings and credit default swap rates where applicable. However, the events in the financial markets in recent years demonstrate there can be no assurance that a counterparty will be able to meet its obligations to the Company. | |||||||||||||||
The balance sheet classification of the assets related to derivative financial instruments are summarized below at September 30, 2014 and December 31, 2013: | |||||||||||||||
Derivative Assets | |||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||
Balance Sheet Classification | Fair Value | Balance Sheet Classification | Fair Value | ||||||||||||
(in millions) | |||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||
Fixed price swaps | Derivative assets | $ | 52 | Derivative assets | $ | 21 | |||||||||
Fixed price swaps | Other long-term assets | 11 | Other long-term assets | – | |||||||||||
Total derivatives designated as hedging instruments | $ | 63 | $ | 21 | |||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Basis swaps | Derivative assets | $ | 15 | Derivative assets | $ | 13 | |||||||||
Fixed price swaps | Derivative assets | 50 | Derivative assets | 37 | |||||||||||
Basis swaps | Other long-term assets | 3 | Other long-term assets | – | |||||||||||
Fixed price swaps | Other long-term assets | 12 | Other long-term assets | – | |||||||||||
Interest rate swaps | Other long-term assets | 3 | Other long-term assets | 8 | |||||||||||
Total derivatives not designated as hedging instruments | $ | 83 | $ | 58 | |||||||||||
Total derivative assets | $ | 146 | $ | 79 | |||||||||||
Derivative Liabilities | |||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||
Balance Sheet Classification | Fair Value | Balance Sheet Classification | Fair Value | ||||||||||||
(in millions) | |||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||
Fixed price swaps | Derivative liabilities | $ | – | Derivative liabilities | $ | 4 | |||||||||
Total derivatives designated as hedging instruments | $ | – | $ | 4 | |||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Basis swaps | Derivative liabilities | $ | 20 | Derivative liabilities | $ | 2 | |||||||||
Fixed price call options | Derivative liabilities | 13 | Derivative liabilities | – | |||||||||||
Interest rate swaps | Derivative liabilities | 3 | Derivative liabilities | 1 | |||||||||||
Basis swaps | Other long-term liabilities | 3 | Other long-term liabilities | – | |||||||||||
Fixed price call options | Other long-term liabilities | 28 | Other long-term liabilities | 30 | |||||||||||
Interest rate swaps | Other long-term liabilities | 1 | Other long-term liabilities | 3 | |||||||||||
Total derivatives not designated as hedging instruments | $ | 68 | $ | 36 | |||||||||||
Total derivative liabilities | $ | 68 | $ | 40 | |||||||||||
As of September 30, 2014, the Company had fixed price swap derivatives designated as hedges and not designated as hedges on the following volumes of natural gas production (in Bcf): | |||||||||||||||
Year | Fixed price swaps designated for hedge accounting | Fixed price swaps not designated for | Total | ||||||||||||
hedge accounting | |||||||||||||||
2014 | 71 | 46 | 117 | ||||||||||||
2015 | 120 | 120 | 240 | ||||||||||||
Cash Flow Hedges | |||||||||||||||
The reporting of gains and losses on cash flow derivative hedging instruments depends on whether the gains or losses are effective at offsetting changes in the cash flows of the hedged item. The effective portion of the gains and losses on the derivative hedging instruments are recorded in other comprehensive income until recognized in earnings during the period that the hedged transaction takes place. The ineffective portion of the gains and losses from the derivative hedging instrument is recognized in earnings immediately. | |||||||||||||||
As of September 30, 2014, the Company recorded a net gain in accumulated other comprehensive income related to its hedging activities of $36 million net of a deferred income tax liability of $24 million. The amount recorded in accumulated other comprehensive income will be relieved over time and recognized in the statement of operations as the physical transactions being hedged occur. Assuming the market prices of natural gas futures as of September 30, 2014 remain unchanged, the Company would expect to transfer an aggregate after-tax net gain of $30 million from accumulated other comprehensive income to earnings during the next 12 months. Gains or losses from derivative instruments designated as cash flow hedges are reflected as adjustments to natural gas sales in the consolidated statements of operations. Volatility in net income, comprehensive income and accumulated other comprehensive income may occur in the future as a result of the Company’s derivative activities. | |||||||||||||||
The following tables summarize the before tax effect of all cash flow hedges on the unaudited condensed consolidated financial statements for the three and nine month periods ended September 30, 2014 and 2013: | |||||||||||||||
Gain (Loss) Recognized in | |||||||||||||||
Other Comprehensive Income | |||||||||||||||
(Effective Portion) | |||||||||||||||
For the three months ended | For the nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
Derivative Instrument | 2014 | 2013 | 2014 | 2013 | |||||||||||
(in millions) | |||||||||||||||
Fixed price swaps | $ | 80 | $ | 13 | $ | -2 | $ | 51 | |||||||
Classification of Gain (Loss) | Gain (Loss) Reclassified from Accumulated | ||||||||||||||
Reclassified from | Other Comprehensive Income | ||||||||||||||
Accumulated Other | into Earnings (Effective Portion) | ||||||||||||||
Comprehensive Income | For the three months ended | For the nine months ended | |||||||||||||
into Earnings | September 30, | September 30, | |||||||||||||
Derivative Instrument | (Effective Portion) | 2014 | 2013 | 2014 | 2013 | ||||||||||
(in millions) | |||||||||||||||
Fixed price swaps | Gas sales | $ | 18 | $ | 93 | $ | -48 | $ | 218 | ||||||
Gain (Loss) Recognized in | |||||||||||||||
Earnings | |||||||||||||||
(Ineffective Portion) | |||||||||||||||
Classification of Gain (Loss) | For the three months ended | For the nine months ended | |||||||||||||
Recognized in Earnings | September 30, | September 30, | |||||||||||||
Derivative Instrument | (Ineffective Portion) | 2014 | 2013 | 2014 | 2013 | ||||||||||
(in millions) | |||||||||||||||
Fixed price swaps | Gas sales | $ | 3 | $ | -1 | $ | 1 | $ | -2 | ||||||
Other Derivative Contracts | |||||||||||||||
For other derivative contracts, the gain or loss on the derivative instrument as well as the offsetting gain or loss on the hedged item are recognized in earnings immediately. | |||||||||||||||
Although the Company’s basis swaps meet the objective of managing commodity price exposure, these trades are typically not entered into concurrent with the Company’s derivative instruments that qualify as cash flow hedges and therefore do not generally qualify for hedge accounting. Basis swap derivative instruments that are not designated for hedge accounting are recorded on the balance sheet at their fair values under derivative assets, other long-term assets, other current liabilities, and other long-term liabilities, as applicable and all gains and losses related to these contracts are recognized immediately in the consolidated statement of operations as a component of gain (loss) on derivatives. | |||||||||||||||
As of September 30, 2014, the Company had basis swaps on natural gas production that were not designated for hedge accounting of 10 Bcf, 15 Bcf, and 4 Bcf in 2014, 2015, and 2016, respectively. | |||||||||||||||
As of September 30, 2014, the Company had fixed price call options on 200 Bcf and 120 Bcf of natural gas production in 2015 and 2016, respectively, not designated for hedge accounting and fixed price swaps of 46 Bcf and 120 Bcf of natural gas production in 2014 and 2015, respectively, not designated for hedge accounting. | |||||||||||||||
The Company is a party to interest rate swaps that were entered into in order to mitigate the Company’s exposure to volatility in interest rates related to construction of its new corporate office complex. The interest rate swaps build to a notional amount of $170 million and expire in June 2020. The Company did not designate the interest rate swaps for hedge accounting. Changes in the fair value of the interest rate swaps are included in gain (loss) on derivatives in the consolidated statements of operations. | |||||||||||||||
The following table summarizes the before tax effect of fixed price swaps, basis swaps, fixed price call options and interest rate swaps not designated for hedge accounting on the condensed consolidated statements of operations for the three and nine month periods ended September 30, 2014 and 2013: | |||||||||||||||
Gain (Loss) on Derivatives | |||||||||||||||
Excluding Derivatives, Settled | |||||||||||||||
Recognized in Earnings | |||||||||||||||
For the three months ended | For the nine months ended | ||||||||||||||
Consolidated Statement of Operations | September 30, | September 30, | |||||||||||||
Derivative Instrument | Classification of Gain (Loss) on Derivatives, Net of Settlement | 2014 | 2013 | 2014 | 2013 | ||||||||||
(in millions) | |||||||||||||||
Basis swaps | Gain (Loss) on Derivatives | $ | -3 | $ | -5 | $ | -16 | $ | 2 | ||||||
Fixed price call options | Gain (Loss) on Derivatives | $ | 11 | $ | 8 | $ | -11 | $ | -27 | ||||||
Fixed price swaps | Gain (Loss) on Derivatives | $ | 45 | $ | 8 | $ | 24 | $ | 96 | ||||||
Interest rate swaps | Gain (Loss) on Derivatives | $ | 1 | $ | -1 | $ | -4 | $ | 1 | ||||||
Gain (Loss) | |||||||||||||||
on Derivatives, Settled (1) | |||||||||||||||
Recognized in Earnings | |||||||||||||||
Consolidated Statement of Operations | For the three months ended | For the nine months ended | |||||||||||||
Classification of Gain (Loss) | September 30, | September 30, | |||||||||||||
Derivative Instrument | on Derivatives, Settled (1) | 2014 | 2013 | 2014 | 2013 | ||||||||||
(in millions) | |||||||||||||||
Basis swaps | Gain (Loss) on Derivatives | $ | 9 | $ | 2 | $ | – | $ | 3 | ||||||
Fixed price swaps | Gain (Loss) on Derivatives | $ | 15 | $ | – | -21 | – | ||||||||
Interest rate swaps | Gain (Loss) on Derivatives | $ | – | $ | – | $ | -1 | $ | – | ||||||
-1 | The Company calculates gain (loss) on derivatives, settled, as the summation of gains and losses on positions that have settled within the period reported. | ||||||||||||||
Reclassification_From_Accumula
Reclassification From Accumulated Other Comprehensive Income (Loss) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Reclassification From Accumulated Other Comprehensive Income (Loss) [Abstract] | ' | |||||||||||||||
Reclassification From Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||
(7) RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||
The following tables detail the components of accumulated other comprehensive income (loss) and the related tax effects for the nine months ended September 30, 2014: | ||||||||||||||||
For the nine months ended | ||||||||||||||||
30-Sep-14 | ||||||||||||||||
(in millions) (1) | ||||||||||||||||
Gains (Losses) on Cash Flow Hedges | Pension and Other Postretirement | Foreign Currency | Total | |||||||||||||
Balance at December 31, 2013 | $ | 9 | $ | -9 | $ | -4 | $ | -4 | ||||||||
Other comprehensive loss before reclassifications | -1 | – | -4 | -5 | ||||||||||||
Amounts reclassified from accumulated other comprehensive loss (2) | 28 | – | – | 28 | ||||||||||||
Net current-period other comprehensive income (loss) | 27 | – | -4 | 23 | ||||||||||||
Balance at September 30, 2014 | $ | 36 | $ | -9 | $ | -8 | $ | 19 | ||||||||
-1 | All amounts are net of tax. | |||||||||||||||
-2 | See separate table below for details about these reclassifications. | |||||||||||||||
The following table details the amounts reclassified from accumulated other comprehensive income (loss) into earnings for the nine months ended September 30, 2014: | ||||||||||||||||
Details about Accumulated Other Comprehensive Income | Affected Line Item in the Consolidated Statement of Operations | Amount Reclassified from Accumulated Other Comprehensive Loss | ||||||||||||||
For the nine months ended | ||||||||||||||||
30-Sep-14 | ||||||||||||||||
(in millions) | ||||||||||||||||
Gains (losses) on cash flow hedges | ||||||||||||||||
Settlements | Gas sales | $ | -48 | |||||||||||||
Ineffectiveness | Gas sales | 1 | ||||||||||||||
Loss before income taxes | -47 | |||||||||||||||
Benefit for income taxes | -19 | |||||||||||||||
Net loss | $ | -28 | ||||||||||||||
Total reclassifications for the period | Net loss | $ | -28 | |||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||
Fair Value Measurements | ' | ||||||||||||
(8) FAIR VALUE MEASUREMENTS | |||||||||||||
The carrying amounts and estimated fair values of the Company’s financial instruments as of September 30, 2014 and December 31, 2013 were as follows: | |||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||
Amount | Value | Amount | Value | ||||||||||
(in millions) | |||||||||||||
Cash and cash equivalents | $ | 20 | $ | 20 | $ | 23 | $ | 23 | |||||
Credit facility | $ | 139 | $ | 139 | $ | 283 | $ | 283 | |||||
Senior notes | $ | 1,668 | $ | 1,957 | $ | 1,668 | $ | 1,796 | |||||
Derivative instruments | $ | 78 | $ | 78 | $ | 39 | $ | 39 | |||||
The carrying values of cash and cash equivalents, accounts receivable, accounts payable, other current assets and current liabilities on the unaudited condensed consolidated balance sheets approximate fair value because of their short-term nature. For debt and derivative instruments, the following methods and assumptions were used to estimate fair value: | |||||||||||||
Debt: The fair values of the Company’s senior notes were based on the market for the Company’s publicly traded debt as determined based on yield of the Company’s 7.5% Senior Notes due 2018, which was 2.2% at September 30, 2014 and 2.6% at December 31, 2013, and its 4.10% Senior Notes due 2022, which was 3.6% at September 30, 2014, and 4.2% at December 31, 2013. The carrying value of the borrowings under the Company’s Credit Facility at September 30, 2014, approximates fair value because the interest rate is variable and reflective of market rates. The Company considers the fair value of its debt to be a Level 2 measurement on the fair value hierarchy. | |||||||||||||
Derivative Instruments: The fair value of all derivative instruments is the amount at which the instrument could be exchanged currently between willing parties. The amounts are based on quoted market prices, best estimates obtained from counterparties and an option pricing model, when necessary, for price option contracts. | |||||||||||||
GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. As presented in the tables below, this hierarchy consists of three broad levels: | |||||||||||||
Level 1 valuations - Consist of unadjusted quoted prices in active markets for identical assets and liabilities and have the highest priority. | |||||||||||||
Level 2 valuations - Consist of quoted market information for the calculation of fair market value. | |||||||||||||
Level 3 valuations - Consist of internal estimates and have the lowest priority. | |||||||||||||
The Company has classified its derivatives into these levels depending upon the data utilized to determine their fair values. The Company’s Level 2 fair value measurements include fixed-price swaps and are estimated using internal discounted cash flow calculations using the NYMEX futures index. The Company utilizes discounted cash flow models for valuing its interest rate derivatives. The net derivative values attributable to the Company's interest rate derivative contracts as of September 30, 2014 are based on (i) the contracted notional amounts, (ii) active market-quoted London Interbank Offered Rate (“LIBOR”) yield curves and (iii) the applicable credit-adjusted risk-free rate yield curve. The Company's interest rate derivative asset and liability measurements represent Level 2 inputs in the hierarchy. The Company’s Level 3 fair value measurements include fixed price call options and basis swaps. The Company’s fixed price call options are valued using the Black-Scholes model, an industry standard option valuation model that takes into account inputs such as contract terms, including maturity, and market parameters, including assumptions of the NYMEX futures index, interest rates, volatility and credit worthiness. The Company’s basis swaps are estimated using internal discounted cash flow calculations based upon forward commodity price curves. | |||||||||||||
Inputs to the Black-Scholes model, including the volatility input, which is the significant unobservable input for Level 3 fair value measurements, are obtained from a third-party pricing source, with independent verification of most significant inputs on a monthly basis. An increase (decrease) in volatility would result in an increase (decrease) in fair value measurement, respectively. | |||||||||||||
Assets and liabilities measured at fair value on a recurring basis are summarized below: | |||||||||||||
30-Sep-14 | |||||||||||||
(in millions) | |||||||||||||
Fair Value Measurements Using: | |||||||||||||
Quoted Prices | Significant | ||||||||||||
in Active | Other | Significant | |||||||||||
Markets | Observable Inputs | Unobservable Inputs | Assets (Liabilities) | ||||||||||
(Level 1) | (Level 2) | (Level 3) | at Fair Value | ||||||||||
Derivative assets | $ | – | $ | 128 | $ | 18 | $ | 146 | |||||
Derivative liabilities | – | -4 | -64 | -68 | |||||||||
Total | $ | – | $ | 124 | $ | -46 | $ | 78 | |||||
31-Dec-13 | |||||||||||||
(in millions) | |||||||||||||
Fair Value Measurements Using: | |||||||||||||
Quoted Prices | Significant | ||||||||||||
in Active | Other | Significant | |||||||||||
Markets | Observable Inputs | Unobservable Inputs | Assets (Liabilities) | ||||||||||
(Level 1) | (Level 2) | (Level 3) | at Fair Value | ||||||||||
Derivative assets | $ | – | $ | 66 | $ | 13 | $ | 79 | |||||
Derivative liabilities | – | -8 | -32 | -40 | |||||||||
Total | $ | – | $ | 58 | $ | -19 | $ | 39 | |||||
The table below presents reconciliations for the change in net fair value of derivative assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine month periods ended September 30, 2014 and September 30, 2013. The fair values of Level 3 derivative instruments are estimated using proprietary valuation models that utilize both market observable and unobservable parameters. Level 3 instruments presented in the table consist of net derivatives valued using pricing models incorporating assumptions that, in the Company’s judgment, reflect the assumptions a reasonable marketplace participant would have used at September 30, 2014 and September 30, 2013. | |||||||||||||
For the three months ended | For the nine months ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
(in millions) | |||||||||||||
Balance at beginning of period | $ | -55 | $ | -28 | $ | -19 | $ | – | |||||
Total gains (losses): | |||||||||||||
Included in earnings | 18 | 5 | -27 | -22 | |||||||||
Included in other comprehensive income | – | – | – | – | |||||||||
Purchases, issuances, and settlements: | |||||||||||||
Purchases | – | – | – | – | |||||||||
Issuances | – | – | – | – | |||||||||
Settlements | -9 | -2 | – | -3 | |||||||||
Transfers into/out of Level 3 | – | – | – | – | |||||||||
Balance at end of period | $ | -46 | $ | -25 | $ | -46 | $ | -25 | |||||
Change in gains (losses) included in earnings relating to derivatives still held as of September 30 | $ | 9 | $ | 3 | $ | -27 | $ | -25 | |||||
Debt
Debt | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Debt [Abstract] | ' | ||||||
Debt | ' | ||||||
(9) DEBT | |||||||
The components of debt as of September 30, 2014 and December 31, 2013 consisted of the following: | |||||||
September 30, | December 31, | ||||||
2014 | 2013 | ||||||
(in millions) | |||||||
Short-term debt: | |||||||
7.15% Senior Notes due 2018 | $ | 1 | $ | 1 | |||
Total short-term debt | 1 | 1 | |||||
Long-term debt: | |||||||
Variable rate (1.50% and 1.64% at September 30, 2014 and December 31, 2013, respectively) Credit Facility, expires December 2018 | 139 | 283 | |||||
7.35% Senior Notes due 2017 | 15 | 15 | |||||
7.125% Senior Notes due 2017 | 25 | 25 | |||||
7.15% Senior Notes due 2018 | 28 | 28 | |||||
7.5% Senior Notes due 2018 | 600 | 600 | |||||
4.10% Senior Notes due 2022 | 1,000 | 1,000 | |||||
Unamortized discount | -1 | -1 | |||||
Total long-term debt | 1,806 | 1,950 | |||||
Total debt | $ | 1,807 | $ | 1,951 | |||
Credit Facility | |||||||
Our credit facility provides a borrowing capacity of up to $2.0 billion and matures on December 2018 (“Credit Facility”), with options for two one-year extensions with participating lender approval. The amount available under the Credit Facility may be increased by $500 million upon our agreement with our participating lenders. The interest rate on the Credit Facility is calculated based on our credit rating and is currently 137.5 basis points over the current LIBOR. The Credit Facility is unsecured and is not guaranteed by any of our subsidiaries. The Credit Facility contains covenants that impose certain restrictions on us, including a financial covenant under which we may not issue total debt in excess of 60% of our total adjusted book capital. This financial covenant with respect to capitalization percentages excludes the effects of any full cost ceiling impairments (after December 31, 2011), certain hedging activities and our pension and other postretirement liabilities. As of September 30, 2014, we were in compliance with the covenants of our Credit Facility and other debt agreements. | |||||||
Commitments_And_Contingencies
Commitments And Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments And Contingencies [Abstract] | ' |
Commitments And Contingencies | ' |
(10) COMMITMENTS AND CONTINGENCIES | |
Commitments | |
In the first quarter of 2010, the Company was awarded exclusive licenses by the Province of New Brunswick in Canada to conduct an exploration program covering approximately 2.5 million acres in the province. The licenses require the Company to make certain capital investments in New Brunswick of approximately $47 million Canadian dollars in the aggregate over a three year period. In order to obtain the licenses, the Company provided promissory notes payable on demand to the Minister of Finance of the Province of New Brunswick with an aggregate principal amount of $45 million Canadian dollars. The promissory notes secure the Company’s capital expenditure obligations under the licenses and are returnable to the Company to the extent the Company performs such obligations. If the Company fails to perform fully, the Minister of Finance may retain a portion of the applicable promissory notes in an amount equal to any deficiency. The Company commenced its Canada exploration program in 2010 and, as of September 30, 2014 has invested $44 million Canadian dollars, or $44 million US dollars, in New Brunswick towards the Company’s commitment. With extensions, our exploration license agreements are currently scheduled to expire on March 16, 2015. No liability has been recognized in connection with the promissory notes due to the Company’s investments in New Brunswick as of September 30, 2014 and its future investment plans. | |
The Company enters into natural gas transportation and gathering arrangements with third party pipelines in support of the Company’s production in the Marcellus Shale. As of September 30, 2014, the Company’s obligations for demand and similar charges under the firm transportation agreements and gathering agreements totaled approximately $3.8 billion and the Company has guarantee obligations of up to $100 million of that amount. | |
Environmental Risk | |
The Company is subject to laws and regulations relating to the protection of the environment. Environmental and cleanup related costs of a non-capital nature are accrued when it is both probable that a liability has been incurred and when the amount can be reasonably estimated. Management believes any future remediation or other compliance related costs will not have a material effect on the financial position or reported results of operations of the Company. | |
Litigation | |
Tovah Energy | |
In February 2009, Southwestern Energy Production Company (“SEPCO”) was added as a defendant in a case then styled Tovah Energy, LLC and Toby Berry-Helfand v. David Michael Grimes, et, al., pending in the 273rd District Court in Shelby County, Texas. By the time of trial in December 2010, Ms. Berry-Helfand (the only remaining plaintiff) alleged that, in 2005, she provided SEPCO with proprietary data regarding two prospects in the James Lime formation pursuant to a confidentiality agreement and that SEPCO refused to return the proprietary data to the plaintiff, subsequently acquired leases based upon such proprietary data and profited therefrom. Among other things, she alleged various statutory and common law claims, including, but not limited to, claims of misappropriation of trade secrets, violation of the Texas Theft Liability Act, breach of fiduciary duty and confidential relationships, various fraud based claims and breach of contract, including a claim of breach of a purported right of first refusal on all interests acquired by SEPCO between February 2005 and February 2006. She also sought disgorgement of SEPCO’s profits. A former associate of the plaintiff intervened in the matter claiming to have helped develop the prospect years earlier. | |
The jury found in favor of the plaintiff and the intervenor with respect to all of the statutory and common law claims and awarded $11 million in compensatory damages but no special, punitive or other damages. Separately, the jury determined that SEPCO’s profits for purposes of disgorgement, if ordered as a remedy, were $382 million. (Disgorgement of profits is an equitable remedy determined by the judge, and it is within the judge’s discretion to award none, some or all of unlawfully obtained profits.) In August 2011, a judgment was entered pursuant to which the plaintiff and the intervenor were entitled to recover approximately $11 million in actual damages and approximately $24 million in disgorgement as well as prejudgment interest and attorneys’ fees, which currently are estimated to be up to $9 million, and all costs of court of the plaintiff and intervenor. | |
Both sides appealed and in July 2013, the Texas Court of Appeals in Tyler ordered that (1) the judgment awarding the plaintiff and the intervenor $24 million as disgorgement of illicit gains be reversed and judgment rendered that they take nothing, (2) the award of $11 million for actual damages, insofar as it is based on the jury’s findings of breach of fiduciary duty, fraud, breach of contract, and theft of trade secret be reversed and judgment rendered that the plaintiff and the intervenor take nothing under those theories of recovery, (3) the award of $11 million to the plaintiff and the intervenor as damages for misappropriation of trade secret be affirmed, (4) the case be remanded to the trial court for a determination and award of attorney’s fees for SEPCO as the prevailing party under the Texas Theft Liability Act, and (5) in all other respects, the judgment is affirmed. All parties petitioned for rehearing. The Court of Appeals denied rehearing in November 2013. | |
SEPCO filed a petition for review in the Supreme Court of Texas in February 2014. The plaintiff and the intervenor filed cross-petition for review in April 2014, but conditioned their filing on the court’s granting SEPCO’s petition for review; i.e., if the court denies SEPCO’s petition for review, then the plaintiff and the intervenor are not seeking further review of the court of appeals’ judgment. Based on the Company’s understanding and judgment of the facts and merits of this case, including appellate matters, and after considering the advice of counsel, the Company has determined that, although reasonably possible, a materially adverse final outcome to this action is not probable. As such, the Company has not accrued any amounts with respect to this action. If the Supreme Court declines to hear the case or affirms all aspects of the court of appeals’ judgment, then SEPCO would owe the $11 million in damages, plus interest and attorney’s fees, offset by any award of attorneys’ fees for its prevailing on the theft count. The Company’s assessment may change in the future due to occurrence of certain events, such as the result of the petition or petitions for review at the Supreme Court of Texas, and such a re-assessment could lead to the determination that the potential liability is probable and could be material to the Company’s results of operations, financial position or cash flows. | |
Arkansas Royalty Litigation | |
The Company is a defendant in three cases, two filed in Arkansas state court and one in federal court, on behalf of putative classes of royalty owners on some of our leases located in Arkansas. The chief complaint in all three cases is that the Company underpaid the royalty owners by, among other things, deducting from royalty payments costs for gathering, transportation, and compression of natural gas in excess of what is permitted by the relevant leases. The Company removed the two cases filed in state court to federal court, but both were remanded to state court during the third quarter of 2014; the appeal of those remand orders is ongoing. Despite the ongoing appeal of the remand, in September and October 2014 the judges in the two Arkansas state actions entered orders certifying classes of royalty owners who are citizens of Arkansas. The Company is appealing those orders. Discovery regarding the plantiffs’ theories of liability and amount of claimed damages is in the very early stages. Management believes that the deductions from royalty payments as calculated are permitted and intends to defend the cases vigorously. The Company’s assessment may change in the future due to the occurrence of certain events, such as adverse judgments, and such a re-assessment could lead to the determination that the potential liability is probable and could be material to the Company’s results of operations, financial position or cash flows. | |
Other | |
The Company is subject to various other litigation, claims and proceedings that have arisen in the ordinary course of business, such as for alleged breaches of contract, miscalculation of royalties and pollution, contamination or nuisance. Management believes that such litigation, claims and proceedings, individually or in aggregate and after taking into account insurance, are not likely to have a material adverse impact on our financial position, results of operations or cash flows. Many of these matters are in early stages, so the allegations and the damage theories have not been fully developed, and all subject to inherent uncertainties; therefore, management’s view may change in the future. If an unfavorable final outcome were to occur, there exists the possibility of a material impact on the Company’s financial position, results of operations or cash flows for the period in which the effect becomes reasonably estimable. The Company accrues for such items when a liability is both probable and the amount can be reasonably estimated. | |
Supplemental_Disclosures_Of_Ca
Supplemental Disclosures Of Cash Flow Information | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Supplemental Disclosures Of Cash Flow Information [Abstract] | ' | ||||||||||||
Supplemental Disclosures Of Cash Flow Information | ' | ||||||||||||
(11) SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||||||||||||
Supplemental disclosures of cash flow information: | |||||||||||||
For the three months ended | For the nine months ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
(in millions) | |||||||||||||
Cash paid for interest (1) | $ | 45 | $ | 45 | $ | 95 | $ | 95 | |||||
Cash paid for income taxes | $ | – | $ | 1 | $ | – | $ | 19 | |||||
Noncash property and equipment changes | $ | 57 | $ | -12 | $ | 128 | $ | 34 | |||||
-1 | Cash paid for interest includes capitalized interest of $14 million and $15 million for the three months ended September 30, 2014 and 2013, respectively, and capitalized interest of $40 million and $48 million for the nine months ended September 30, 2014 and 2013, respectively. | ||||||||||||
Pension_Plan_And_Other_Postret
Pension Plan And Other Postretirement Benefits | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Pension Plan And Other Postretirement Benefits [Abstract] | ' | ||||||||||||
Pension Plan And Other Postretirement Benefits | ' | ||||||||||||
(12) PENSION PLAN AND OTHER POSTRETIREMENT BENEFITS | |||||||||||||
The Company has defined pension and postretirement benefit plans which cover substantially all of the Company’s employees. Net periodic pension costs include the following components for the three and nine months ended September 30, 2014 and 2013: | |||||||||||||
Pension Benefits | |||||||||||||
For the three months ended | For the nine months ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
(in millions) | |||||||||||||
Service cost | $ | 3 | $ | 3 | $ | 10 | $ | 10 | |||||
Interest cost | 1 | 1 | 4 | 3 | |||||||||
Expected return on plan assets | -1 | -1 | -5 | -4 | |||||||||
Amortization of prior service cost | – | – | – | – | |||||||||
Amortization of net loss | – | – | – | 1 | |||||||||
Net periodic benefit cost | $ | 3 | $ | 3 | $ | 9 | $ | 10 | |||||
The Company’s postretirement benefit plan had a net periodic benefit cost of $1, $1, $2 and $2 million as of the three months ended September 30, 2014 and 2013 and nine months ended September 30, 2014 and 2013, respectively. As of September 30, 2014, the Company has contributed $9 million to the pension plan, and expects to contribute an additional $3 million to the pension plan in 2014. | |||||||||||||
The Company maintains a non-qualified deferred compensation supplemental retirement savings plan (“Non-Qualified Plan”) for certain key employees who may elect to defer and contribute a portion of their compensation, as permitted by the plan. Shares of the Company’s common stock purchased under the terms of the Non-Qualified Plan are presented as treasury stock and totaled 10,763 shares at September 30, 2014 compared to 9,924 shares at December 31, 2013. | |||||||||||||
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Stock-Based Compensation [Abstract] | ' | ||||||||||||
Stock-Based Compensation | ' | ||||||||||||
(13) STOCK-BASED COMPENSATION | |||||||||||||
The Company recognized the following amounts in employee stock-based compensation costs for the three and nine months ended September 30, 2014 and 2013: | |||||||||||||
For the three months ended | For the nine months ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
(in millions) | |||||||||||||
Stock-based compensation cost – expensed | $ | 4 | $ | 3 | $ | 13 | $ | 9 | |||||
Stock-based compensation cost – capitalized | $ | 4 | $ | 3 | $ | 13 | $ | 9 | |||||
As of September 30, 2014, there was $64 million of total unrecognized compensation cost related to the Company’s unvested stock option grants, restricted stock grants, and performance units. This cost is expected to be recognized over a weighted-average period of 3 years. | |||||||||||||
The following table summarizes stock option activity for the nine months ended September 30, 2014 and provides information for options outstanding and options exercisable as of September 30, 2014: | |||||||||||||
Weighted | |||||||||||||
Average | |||||||||||||
Number | Exercise | ||||||||||||
of Options | Price | ||||||||||||
(in thousands) | |||||||||||||
Outstanding at December 31, 2013 | 3,313 | $ | 35.70 | ||||||||||
Granted | 90 | 46.55 | |||||||||||
Exercised | -279 | 32.07 | |||||||||||
Forfeited or expired | -102 | 38.42 | |||||||||||
Outstanding at September 30, 2014 | 3,022 | 36.27 | |||||||||||
Exercisable at September 30, 2014 | 1,844 | $ | 35.39 | ||||||||||
The following table summarizes restricted stock activity for the nine months ended September 30, 2014 and provides information for unvested shares as of September 30, 2014: | |||||||||||||
Weighted | |||||||||||||
Average | |||||||||||||
Number | Grant Date | ||||||||||||
of Shares | Fair Value | ||||||||||||
(in thousands) | |||||||||||||
Unvested shares at December 31, 2013 | 1,771 | $ | 37.55 | ||||||||||
Granted | 25 | 45.81 | |||||||||||
Vested | -22 | 36.62 | |||||||||||
Forfeited | -117 | 37.94 | |||||||||||
Unvested shares at September 30, 2014 | 1,657 | $ | 37.66 | ||||||||||
The following table summarizes performance unit activity to be paid out in Company stock for the nine months ended September 30, 2014 and provides information for unvested units as of September 30, 2014. The performance units include a market condition based on Relative Total Shareholder Return (“TSR”) and a performance condition based on the Company's Present Value Index (“PVI”). The fair value of the TSR market condition of the performance units is based on a Monte Carlo model and is amortized to compensation expense on a straight-line basis over the vesting period of the award. The fair value of the PVI performance condition of the performance units is based on the closing price of the Company's common stock at the grant date and amortized to compensation expense on a straight line basis over the vesting period of the award. | |||||||||||||
Weighted | |||||||||||||
Average | |||||||||||||
Number | Grant Date | ||||||||||||
of Units | Fair Value | ||||||||||||
(in thousands) | |||||||||||||
Unvested units at December 31, 2013 | – | $ | – | ||||||||||
Granted | 359 | 40.44 | |||||||||||
Vested | – | – | |||||||||||
Forfeited | -25 | 40.44 | |||||||||||
Unvested units at September 30, 2014 | 334 | $ | 40.44 | ||||||||||
Liability-Classified Performance Units | |||||||||||||
Certain employees were provided performance units vesting equally over three years. The payout of these units is based on certain metrics, such as total shareholder return and reserve replacement efficiency, compared to a predetermined group of peer companies and Company goal. At the end of each performance period, the value of the vested performance units, if any, is paid in cash. As of September 30, 2014 and December 31, 2013, the Company’s liability under the performance unit agreements was $48 million and $45 million, respectively. | |||||||||||||
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Segment Information [Abstract] | ' | ||||||||||||
Segment Information | ' | ||||||||||||
(14) SEGMENT INFORMATION | |||||||||||||
The Company’s reportable business segments have been identified based on the differences in products or services provided. Revenues for the E&P segment are derived from the production and sale of natural gas and crude oil. The Midstream Services segment generates revenue through the marketing of both Company and third-party produced natural gas volumes and through gathering fees associated with the transportation of natural gas to market. | |||||||||||||
Summarized financial information for the Company’s reportable segments is shown in the following table. The accounting policies of the segments are the same as those described in Note 1 of the Notes to Consolidated Financial Statements included in Item 8 of the 2013 Annual Report on Form 10-K. Management evaluates the performance of its segments based on operating income, defined as operating revenues less operating costs. Income before income taxes, for the purpose of reconciling the operating income amount shown below to consolidated income before income taxes, is the sum of operating income, interest expense, and other income (loss). The “Other” column includes items not related to the Company’s reportable segments including real estate and corporate items. | |||||||||||||
Exploration | |||||||||||||
and | Midstream | ||||||||||||
Production | Services | Other | Total | ||||||||||
(in millions) | |||||||||||||
Three months ended September 30, 2014: | |||||||||||||
Revenues from external customers | $ | 652 | $ | 276 | $ | – | $ | 928 | |||||
Intersegment revenues | 3 | 707 | – | 710 | |||||||||
Operating income | 189 | 97 | – | 286 | |||||||||
Gain (loss) on derivatives | 79 | – | -1 | 78 | |||||||||
Depreciation, depletion and amortization expense | 223 | 15 | – | 238 | |||||||||
Interest expense(1) | 10 | 2 | 1 | 13 | |||||||||
Provision (benefit) for income taxes(1) | 107 | 34 | -1 | 140 | |||||||||
Assets | 7,461 | 1,494 | 222 | -2 | 9,177 | ||||||||
Capital investments(3) | 531 | 34 | 9 | 574 | |||||||||
Three months ended September 30, 2013: | |||||||||||||
Revenues from external customers | $ | 622 | $ | 246 | $ | – | $ | 868 | |||||
Intersegment revenues | 1 | 601 | – | 602 | |||||||||
Operating income | 223 | 86 | – | 309 | |||||||||
Gain on derivatives | 11 | 1 | – | 12 | |||||||||
Depreciation, depletion and amortization expense | 192 | 13 | – | 205 | |||||||||
Interest expense(1) | 9 | 2 | – | 11 | |||||||||
Provision for income taxes(1) | 88 | 36 | – | 124 | |||||||||
Assets | 6,265 | 1,388 | 241 | -2 | 7,894 | ||||||||
Capital investments(3) | 496 | 40 | 6 | 542 | |||||||||
Exploration | |||||||||||||
and | Midstream | ||||||||||||
Production | Services | Other | Total | ||||||||||
(in millions) | |||||||||||||
Nine months ended September 30, 2014: | |||||||||||||
Revenues from external customers | $ | 2,169 | $ | 907 | $ | – | $ | 3,076 | |||||
Intersegment revenues | 13 | 2,437 | – | 2,450 | |||||||||
Operating income (loss) | 817 | 272 | -1 | 1,088 | |||||||||
Other gain, net | 1 | – | – | 1 | |||||||||
Loss on derivatives | -27 | -1 | -1 | -29 | |||||||||
Depreciation, depletion and amortization expense | 650 | 43 | – | 693 | |||||||||
Interest expense(1) | 29 | 9 | 1 | 39 | |||||||||
Provision (benefit) for income taxes(1) | 309 | 101 | -1 | 409 | |||||||||
Assets | 7,461 | 1,494 | 222 | -2 | 9,177 | ||||||||
Capital investments(3) | 1,706 | 109 | 22 | 1,837 | |||||||||
Nine months ended September 30, 2013: | |||||||||||||
Revenues from external customers | $ | 1,749 | $ | 715 | $ | – | $ | 2,464 | |||||
Intersegment revenues | 4 | 1,740 | – | 1,744 | |||||||||
Operating income | 651 | 235 | – | 886 | |||||||||
Gain on derivatives | 74 | 1 | – | 75 | |||||||||
Depreciation, depletion and amortization expense | 534 | 37 | – | 571 | |||||||||
Interest expense(1) | 21 | 8 | – | 29 | |||||||||
Provision for income taxes(1) | 282 | 91 | – | 373 | |||||||||
Assets | 6,265 | 1,388 | 241 | -2 | 7,894 | ||||||||
Capital investments(3) | 1,603 | 135 | 17 | 1,755 | |||||||||
-1 | Interest expense and the provision for income taxes by segment are allocated as they are incurred at the corporate level. | ||||||||||||
-2 | Other assets represent corporate assets not allocated to segments and assets for non reportable segments. | ||||||||||||
-3 | Capital investments includes increases of $53 million and decreases of $15 million for the three month periods ended September 30, 2014 and 2013, respectively, and increases of $114 million and $26 million for the nine month periods ended September 30, 2014 and 2013, respectively, relating to the change in accrued expenditures between periods. | ||||||||||||
Included in intersegment revenues of the Midstream Services segment are $612 million and $515 million for the three months ended September 30, 2014 and 2013, respectively, and $2,161 million and $1,494 million for the nine months ended September 30, 2014 and 2013, respectively, for marketing of the Company’s E&P sales. Corporate assets include cash and cash equivalents, furniture and fixtures, prepaid debt and other costs. Corporate general and administrative costs, depreciation expense and taxes other than income are allocated to the segments. At September 30, 2014, E&P segment assets included $78 million and at September 30, 2013, E&P segment assets included $65 million related to the Company’s activities in Canada. | |||||||||||||
New_Accounting_Pronouncements_
New Accounting Pronouncements Not Yet Adopted | 9 Months Ended |
Sep. 30, 2014 | |
New Accounting Pronouncements Not Yet Adopted [Abstract] | ' |
New Accounting Pronouncements Not Yet Adopted | ' |
(15) NEW ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED | |
In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“Update 2014-09”), which seeks to provide clarity for recognizing revenue. Topic 606 Revenue from Contracts with Customers will supersede the revenue recognition requirements in Topic 605 Revenue Recognition. Update 2014-09 requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled for those goods or services. Entities may apply the amendments in Update 2014-09 either (a) retrospectively to each prior reporting period presented, and the entity may elect a practical expedient per the Update, or (b) retrospectively with the cumulative effect of initially applying Update 2014-09 recognized at the date of initial application - if an entity elects this transition method it also should provide the additional disclosures in reporting periods. For public entities, Update 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. We are currently evaluating the provisions of Update 2014-09 and assessing the impact, if any, it may have on the Company’s consolidated results of operations, financial position or cash flows. | |
In June 2014, the FASB issued Accounting Standards Update No. 2014-12, Compensation-Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could be Achieved After the Requisite Service Period (“Update 2014-12”), which clarifies the accounting treatment of such awards in practice. Update 2014-12 requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. Entities may apply the amendments in Update 2014-12 either (a) prospectively to all awards granted or modified after the effective date, or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. Update 2014-12 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015, and early adoption is permitted. We are currently evaluating the provisions of Update 2014-12 and assessing the impact, if any, it may have on the Company’s consolidated results of operations, financial position or cash flows. | |
Condensed_Consolidating_Financ
Condensed Consolidating Financial Information | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||||
Condensed Consolidating Financial Information [Abstract] | ' | |||||||||||||||||||||||||||||||
Condensed Consolidating Financial Information | ' | |||||||||||||||||||||||||||||||
(16) CONDENSED CONSOLIDATING FINANCIAL INFORMATION | ||||||||||||||||||||||||||||||||
As of December 16, 2013, following the release of all guarantees under the 7.15%, 7.5%, 7.35%, 7.125%, and 4.10% Senior Notes and our former revolving credit facility upon entering into the new Credit Facility, all of our wholly-owned subsidiaries have been released of their guarantees. Prior to that date, the Company’s obligation under registered public debt and outstanding senior notes as listed in Note 9 were fully and unconditionally guaranteed, jointly and severally, by all of our wholly owned subsidiaries, other than minor subsidiaries, on a senior unsecured basis, and the Company, as a parent company, had no independent assets or operations. The subsidiary guarantees (i) ranked equally in right of payment with all of the existing and future senior debt of the subsidiary guarantors; (ii) ranked senior to all of the existing and future subordinated debt of the subsidiary guarantors; (iii) were effectively subordinated to any future secured obligations of the subsidiary guarantors to the extent of the value of the assets securing such obligations; and (iv) were structurally subordinated to all debt and other obligations of the subsidiaries of the guarantors. In the case of each series of notes, if no default or event of default had occurred and was continuing, these guarantees would have been released (i) automatically upon any sale, exchange or transfer of all the Company’s interest in the guarantor; (ii) automatically upon the liquidation and dissolution of a guarantor; (iii) following delivery of notice to the trustee of the release of the guarantor of its obligation under the Company’s revolving credit facility; and (iv) upon legal or covenant defeasance or other satisfaction of the obligations under the notes. In addition, there were no significant restrictions on the ability of the Company or a guarantor to obtain funds from its subsidiaries by dividend or loan, and none of the assets of the Company or a guarantor represented restricted net assets pursuant to rule 4-08(e)(3) of Regulation S-X under the Securities Act of 1933, as amended. | ||||||||||||||||||||||||||||||||
The Company is providing condensed consolidating financial information for SEECO, SEPCO, and SES, its subsidiaries that were guarantors of the Company’s registered public debt and outstanding senior notes, and for its other subsidiaries that were not guarantors of such debt for the three and nine months ended September 30, 2013, as applicable. The Company has not provided comparative financial statements for 2014 because all guarantees were released in 2013. The Company has not presented separate financial and narrative information for each of the former subsidiary guarantors because it believes that such financial and narrative financial information would not provide any additional information that would be material in evaluating the sufficiency of the guarantees. The following condensed consolidating financial information summarizes the results of operations and cash flow for the Company’s former guarantors and other subsidiaries. | ||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | ||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
Parent | Former Guarantors | Other Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||
Three months ended September 30, 2013: | ||||||||||||||||||||||||||||||||
Operating revenues | $ | – | $ | 823 | $ | 131 | $ | -86 | $ | 868 | ||||||||||||||||||||||
Operating costs and expenses: | ||||||||||||||||||||||||||||||||
Gas purchases – midstream services | – | 195 | – | – | 195 | |||||||||||||||||||||||||||
Operating expenses | – | 140 | 36 | -86 | 90 | |||||||||||||||||||||||||||
General and administrative expenses | – | 44 | 7 | – | 51 | |||||||||||||||||||||||||||
Depreciation, depletion and amortization | – | 192 | 13 | – | 205 | |||||||||||||||||||||||||||
Taxes, other than income taxes | – | 16 | 2 | – | 18 | |||||||||||||||||||||||||||
Total operating costs and expenses | – | 587 | 58 | -86 | 559 | |||||||||||||||||||||||||||
Operating income | – | 236 | 73 | – | 309 | |||||||||||||||||||||||||||
Gain on derivatives | – | 10 | 2 | – | 12 | |||||||||||||||||||||||||||
Equity in earnings of subsidiaries | 186 | – | – | -186 | – | |||||||||||||||||||||||||||
Interest expense | – | 9 | 2 | – | 11 | |||||||||||||||||||||||||||
Income before income taxes | 186 | 237 | 73 | -186 | 310 | |||||||||||||||||||||||||||
Provision for income taxes | – | 91 | 33 | – | 124 | |||||||||||||||||||||||||||
Net income | 186 | 146 | 40 | -186 | 186 | |||||||||||||||||||||||||||
Comprehensive income | $ | 139 | $ | 98 | $ | 41 | $ | -139 | $ | 139 | ||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | ||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
Parent | Former Guarantors | Other Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||
Nine months ended September 30, 2013: | ||||||||||||||||||||||||||||||||
Operating revenues | $ | – | $ | 2,331 | $ | 379 | $ | -246 | $ | 2,464 | ||||||||||||||||||||||
Operating costs and expenses: | ||||||||||||||||||||||||||||||||
Gas purchases – midstream services | – | 575 | – | – | 575 | |||||||||||||||||||||||||||
Operating expenses | – | 376 | 107 | -246 | 237 | |||||||||||||||||||||||||||
General and administrative expenses | – | 117 | 19 | – | 136 | |||||||||||||||||||||||||||
Depreciation, depletion and amortization | – | 534 | 37 | – | 571 | |||||||||||||||||||||||||||
Taxes, other than income taxes | – | 50 | 9 | – | 59 | |||||||||||||||||||||||||||
Total operating costs and expenses | – | 1,652 | 172 | -246 | 1,578 | |||||||||||||||||||||||||||
Operating income | – | 679 | 207 | – | 886 | |||||||||||||||||||||||||||
Gain on derivatives | – | 74 | 1 | – | 75 | |||||||||||||||||||||||||||
Equity in earnings of subsidiaries | 559 | – | – | -559 | – | |||||||||||||||||||||||||||
Interest expense | – | 24 | 5 | – | 29 | |||||||||||||||||||||||||||
Income before income taxes | 559 | 729 | 203 | -559 | 932 | |||||||||||||||||||||||||||
Provision for income taxes | – | 291 | 82 | – | 373 | |||||||||||||||||||||||||||
Net income | 559 | 438 | 121 | -559 | 559 | |||||||||||||||||||||||||||
Comprehensive income | $ | 458 | $ | 337 | $ | 120 | $ | -457 | $ | 458 | ||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
Parent | Former Guarantors | Other Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||
Nine months ended September 30, 2013: | ||||||||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | -33 | $ | 1,062 | $ | 349 | $ | – | $ | 1,378 | ||||||||||||||||||||||
Investing activities: | ||||||||||||||||||||||||||||||||
Capital investments | -29 | -1,531 | -168 | – | -1,728 | |||||||||||||||||||||||||||
Proceeds from sale of property and equipment | – | – | 3 | – | 3 | |||||||||||||||||||||||||||
Transfers from restricted cash | 9 | – | – | – | 9 | |||||||||||||||||||||||||||
Other | -1 | -2 | 7 | – | 4 | |||||||||||||||||||||||||||
Net cash used in investing activities | -21 | -1,533 | -158 | – | -1,712 | |||||||||||||||||||||||||||
Financing activities: | ||||||||||||||||||||||||||||||||
Intercompany activities | -275 | 465 | -190 | – | – | |||||||||||||||||||||||||||
Payments on current portion of long-term debt | -1 | – | – | – | -1 | |||||||||||||||||||||||||||
Payments on revolving long-term debt | -2,135 | – | – | – | -2,135 | |||||||||||||||||||||||||||
Borrowings under revolving long-term debt | 2,378 | – | – | – | 2,378 | |||||||||||||||||||||||||||
Other items | 57 | – | – | – | 57 | |||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | 24 | 465 | -190 | – | 299 | |||||||||||||||||||||||||||
Increase (decrease) in cash and cash equivalents | -30 | -6 | 1 | – | -35 | |||||||||||||||||||||||||||
Cash and cash equivalents at beginning of year | 48 | 6 | – | – | 54 | |||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 18 | $ | – | $ | 1 | $ | – | $ | 19 | ||||||||||||||||||||||
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
(17) SUBSEQUENT EVENTS | |
On October 16, 2014, we announced that we have signed a purchase and sale agreement with Chesapeake Energy Corporation to acquire certain oil and gas assets covering approximately 413,000 net acres in West Virginia and southwest Pennsylvania targeting natural gas, natural gas liquids and crude oil contained in the Upper Devonian, Marcellus and Utica shales for approximately $5.375 billion. The transaction is subject to consent of the principal co-owner of this acreage, which also has a 30-day preferential right to purchase, and to other customary conditions and is currently expected to close by year-end. We have received a commitment from Bank of America, N.A. for a $5.0 billion 364-day senior unsecured bridge term loan credit facility that, together with the Company’s existing revolving credit facility, is available to fund the transaction. | |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||||
Schedule Of Earnings Per Share | ' | ||||||||||||||||||
For the three months ended | For the nine months ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Net income (in millions) | $ | 211 | $ | 186 | $ | 612 | $ | 559 | |||||||||||
Number of common shares: | |||||||||||||||||||
Weighted average outstanding | 351,457,043 | 350,517,337 | 351,357,913 | 350,334,634 | |||||||||||||||
Issued upon assumed exercise of outstanding stock options | 235,944 | 373,152 | 354,940 | 442,678 | |||||||||||||||
Effect of issuance of nonvested restricted common stock | 514,668 | 332,341 | 484,786 | 237,662 | |||||||||||||||
Effect of issuance of nonvested performance units | 119,595 | – | 136,907 | – | |||||||||||||||
Weighted average and potential dilutive outstanding (1)(2) | 352,327,250 | 351,222,830 | 352,334,546 | 351,014,974 | |||||||||||||||
Earnings per share: | |||||||||||||||||||
Basic | $ | 0.60 | $ | 0.53 | $ | 1.74 | $ | 1.60 | |||||||||||
Diluted | $ | 0.60 | $ | 0.53 | $ | 1.74 | $ | 1.59 | |||||||||||
-1 | Options for 1,254,842 shares and 27,916 shares of restricted stock were excluded from the calculation for the three months ended September 30, 2014 because they would have had an antidilutive effect. Options for 1,550,838 shares and 15,703 shares of restricted stock were excluded from the calculation for the three months ended September 30, 2013 because they would have had an antidilutive effect. | ||||||||||||||||||
-2 | Options for 1,111,128 shares and 24,215 shares of restricted stock were excluded from the calculation for the nine months ended September 30, 2014 because they would have had an antidilutive effect. Options for 1,848,566 shares and 169,261 shares of restricted stock were excluded from the calculation for the nine months ended September 30, 2013 because they would have had an antidilutive effect. | ||||||||||||||||||
Derivatives_And_Risk_Managemen1
Derivatives And Risk Management (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2014 | |||||||||||||||
Derivatives And Risk Management [Abstract] | ' | ||||||||||||||
Balance Sheet Classification Of Derivative Financial Instruments | ' | ||||||||||||||
Derivative Assets | |||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||
Balance Sheet Classification | Fair Value | Balance Sheet Classification | Fair Value | ||||||||||||
(in millions) | |||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||
Fixed price swaps | Derivative assets | $ | 52 | Derivative assets | $ | 21 | |||||||||
Fixed price swaps | Other long-term assets | 11 | Other long-term assets | – | |||||||||||
Total derivatives designated as hedging instruments | $ | 63 | $ | 21 | |||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Basis swaps | Derivative assets | $ | 15 | Derivative assets | $ | 13 | |||||||||
Fixed price swaps | Derivative assets | 50 | Derivative assets | 37 | |||||||||||
Basis swaps | Other long-term assets | 3 | Other long-term assets | – | |||||||||||
Fixed price swaps | Other long-term assets | 12 | Other long-term assets | – | |||||||||||
Interest rate swaps | Other long-term assets | 3 | Other long-term assets | 8 | |||||||||||
Total derivatives not designated as hedging instruments | $ | 83 | $ | 58 | |||||||||||
Total derivative assets | $ | 146 | $ | 79 | |||||||||||
Derivative Liabilities | |||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||
Balance Sheet Classification | Fair Value | Balance Sheet Classification | Fair Value | ||||||||||||
(in millions) | |||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||
Fixed price swaps | Derivative liabilities | $ | – | Derivative liabilities | $ | 4 | |||||||||
Total derivatives designated as hedging instruments | $ | – | $ | 4 | |||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Basis swaps | Derivative liabilities | $ | 20 | Derivative liabilities | $ | 2 | |||||||||
Fixed price call options | Derivative liabilities | 13 | Derivative liabilities | – | |||||||||||
Interest rate swaps | Derivative liabilities | 3 | Derivative liabilities | 1 | |||||||||||
Basis swaps | Other long-term liabilities | 3 | Other long-term liabilities | – | |||||||||||
Fixed price call options | Other long-term liabilities | 28 | Other long-term liabilities | 30 | |||||||||||
Interest rate swaps | Other long-term liabilities | 1 | Other long-term liabilities | 3 | |||||||||||
Total derivatives not designated as hedging instruments | $ | 68 | $ | 36 | |||||||||||
Total derivative liabilities | $ | 68 | $ | 40 | |||||||||||
Schedule Of Derivative Instruments, Volumes Of Natural Gas Production | ' | ||||||||||||||
Year | Fixed price swaps designated for hedge accounting | Fixed price swaps not designated for | Total | ||||||||||||
hedge accounting | |||||||||||||||
2014 | 71 | 46 | 117 | ||||||||||||
2015 | 120 | 120 | 240 | ||||||||||||
Summary Of Before Tax Effect Of Cash Flow Hedges On Consolidated Financial Statements | ' | ||||||||||||||
Gain (Loss) Recognized in | |||||||||||||||
Other Comprehensive Income | |||||||||||||||
(Effective Portion) | |||||||||||||||
For the three months ended | For the nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
Derivative Instrument | 2014 | 2013 | 2014 | 2013 | |||||||||||
(in millions) | |||||||||||||||
Fixed price swaps | $ | 80 | $ | 13 | $ | -2 | $ | 51 | |||||||
Classification of Gain (Loss) | Gain (Loss) Reclassified from Accumulated | ||||||||||||||
Reclassified from | Other Comprehensive Income | ||||||||||||||
Accumulated Other | into Earnings (Effective Portion) | ||||||||||||||
Comprehensive Income | For the three months ended | For the nine months ended | |||||||||||||
into Earnings | September 30, | September 30, | |||||||||||||
Derivative Instrument | (Effective Portion) | 2014 | 2013 | 2014 | 2013 | ||||||||||
(in millions) | |||||||||||||||
Fixed price swaps | Gas sales | $ | 18 | $ | 93 | $ | -48 | $ | 218 | ||||||
Gain (Loss) Recognized in | |||||||||||||||
Earnings | |||||||||||||||
(Ineffective Portion) | |||||||||||||||
Classification of Gain (Loss) | For the three months ended | For the nine months ended | |||||||||||||
Recognized in Earnings | September 30, | September 30, | |||||||||||||
Derivative Instrument | (Ineffective Portion) | 2014 | 2013 | 2014 | 2013 | ||||||||||
(in millions) | |||||||||||||||
Fixed price swaps | Gas sales | $ | 3 | $ | -1 | $ | 1 | $ | -2 | ||||||
Summary Of Before Tax Effect Of Fair Value Hedges Not Designated For Hedge Accounting | ' | ||||||||||||||
Gain (Loss) on Derivatives | |||||||||||||||
Excluding Derivatives, Settled | |||||||||||||||
Recognized in Earnings | |||||||||||||||
For the three months ended | For the nine months ended | ||||||||||||||
Consolidated Statement of Operations | September 30, | September 30, | |||||||||||||
Derivative Instrument | Classification of Gain (Loss) on Derivatives, Net of Settlement | 2014 | 2013 | 2014 | 2013 | ||||||||||
(in millions) | |||||||||||||||
Basis swaps | Gain (Loss) on Derivatives | $ | -3 | $ | -5 | $ | -16 | $ | 2 | ||||||
Fixed price call options | Gain (Loss) on Derivatives | $ | 11 | $ | 8 | $ | -11 | $ | -27 | ||||||
Fixed price swaps | Gain (Loss) on Derivatives | $ | 45 | $ | 8 | $ | 24 | $ | 96 | ||||||
Interest rate swaps | Gain (Loss) on Derivatives | $ | 1 | $ | -1 | $ | -4 | $ | 1 | ||||||
Gain (Loss) | |||||||||||||||
on Derivatives, Settled (1) | |||||||||||||||
Recognized in Earnings | |||||||||||||||
Consolidated Statement of Operations | For the three months ended | For the nine months ended | |||||||||||||
Classification of Gain (Loss) | September 30, | September 30, | |||||||||||||
Derivative Instrument | on Derivatives, Settled (1) | 2014 | 2013 | 2014 | 2013 | ||||||||||
(in millions) | |||||||||||||||
Basis swaps | Gain (Loss) on Derivatives | $ | 9 | $ | 2 | $ | – | $ | 3 | ||||||
Fixed price swaps | Gain (Loss) on Derivatives | $ | 15 | $ | – | -21 | – | ||||||||
Interest rate swaps | Gain (Loss) on Derivatives | $ | – | $ | – | $ | -1 | $ | – | ||||||
-1 | The Company calculates gain (loss) on derivatives, settled, as the summation of gains and losses on positions that have settled within the period reported. | ||||||||||||||
Reclassification_From_Accumula1
Reclassification From Accumulated Other Comprehensiv Income (Loss) (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Reclassification From Accumulated Other Comprehensive Income (Loss) [Abstract] | ' | |||||||||||||||
Components Of Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||
For the nine months ended | ||||||||||||||||
30-Sep-14 | ||||||||||||||||
(in millions) (1) | ||||||||||||||||
Gains (Losses) on Cash Flow Hedges | Pension and Other Postretirement | Foreign Currency | Total | |||||||||||||
Balance at December 31, 2013 | $ | 9 | $ | -9 | $ | -4 | $ | -4 | ||||||||
Other comprehensive loss before reclassifications | -1 | – | -4 | -5 | ||||||||||||
Amounts reclassified from accumulated other comprehensive loss (2) | 28 | – | – | 28 | ||||||||||||
Net current-period other comprehensive income (loss) | 27 | – | -4 | 23 | ||||||||||||
Balance at September 30, 2014 | $ | 36 | $ | -9 | $ | -8 | $ | 19 | ||||||||
-1 | All amounts are net of tax. | |||||||||||||||
-2 | See separate table below for details about these reclassifications. | |||||||||||||||
Amounts Reclassified From Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||
Details about Accumulated Other Comprehensive Income | Affected Line Item in the Consolidated Statement of Operations | Amount Reclassified from Accumulated Other Comprehensive Loss | ||||||||||||||
For the nine months ended | ||||||||||||||||
30-Sep-14 | ||||||||||||||||
(in millions) | ||||||||||||||||
Gains (losses) on cash flow hedges | ||||||||||||||||
Settlements | Gas sales | $ | -48 | |||||||||||||
Ineffectiveness | Gas sales | 1 | ||||||||||||||
Loss before income taxes | -47 | |||||||||||||||
Benefit for income taxes | -19 | |||||||||||||||
Net loss | $ | -28 | ||||||||||||||
Total reclassifications for the period | Net loss | $ | -28 | |||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||
Carrying Amount And Estimated Fair Values Of Financial Instruments | ' | ||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||
Amount | Value | Amount | Value | ||||||||||
(in millions) | |||||||||||||
Cash and cash equivalents | $ | 20 | $ | 20 | $ | 23 | $ | 23 | |||||
Credit facility | $ | 139 | $ | 139 | $ | 283 | $ | 283 | |||||
Senior notes | $ | 1,668 | $ | 1,957 | $ | 1,668 | $ | 1,796 | |||||
Derivative instruments | $ | 78 | $ | 78 | $ | 39 | $ | 39 | |||||
Summary Assets And Liabilities Measured At Fair Value On Recurring Basis | ' | ||||||||||||
30-Sep-14 | |||||||||||||
(in millions) | |||||||||||||
Fair Value Measurements Using: | |||||||||||||
Quoted Prices | Significant | ||||||||||||
in Active | Other | Significant | |||||||||||
Markets | Observable Inputs | Unobservable Inputs | Assets (Liabilities) | ||||||||||
(Level 1) | (Level 2) | (Level 3) | at Fair Value | ||||||||||
Derivative assets | $ | – | $ | 128 | $ | 18 | $ | 146 | |||||
Derivative liabilities | – | -4 | -64 | -68 | |||||||||
Total | $ | – | $ | 124 | $ | -46 | $ | 78 | |||||
31-Dec-13 | |||||||||||||
(in millions) | |||||||||||||
Fair Value Measurements Using: | |||||||||||||
Quoted Prices | Significant | ||||||||||||
in Active | Other | Significant | |||||||||||
Markets | Observable Inputs | Unobservable Inputs | Assets (Liabilities) | ||||||||||
(Level 1) | (Level 2) | (Level 3) | at Fair Value | ||||||||||
Derivative assets | $ | – | $ | 66 | $ | 13 | $ | 79 | |||||
Derivative liabilities | – | -8 | -32 | -40 | |||||||||
Total | $ | – | $ | 58 | $ | -19 | $ | 39 | |||||
Reconciliations For Change In Net Fair Value Of Derivative Assets And Liabilities Measured At Fair Value On A Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | ||||||||||||
For the three months ended | For the nine months ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
(in millions) | |||||||||||||
Balance at beginning of period | $ | -55 | $ | -28 | $ | -19 | $ | – | |||||
Total gains (losses): | |||||||||||||
Included in earnings | 18 | 5 | -27 | -22 | |||||||||
Included in other comprehensive income | – | – | – | – | |||||||||
Purchases, issuances, and settlements: | |||||||||||||
Purchases | – | – | – | – | |||||||||
Issuances | – | – | – | – | |||||||||
Settlements | -9 | -2 | – | -3 | |||||||||
Transfers into/out of Level 3 | – | – | – | – | |||||||||
Balance at end of period | $ | -46 | $ | -25 | $ | -46 | $ | -25 | |||||
Change in gains (losses) included in earnings relating to derivatives still held as of September 30 | $ | 9 | $ | 3 | $ | -27 | $ | -25 | |||||
Debt_Tables
Debt (Tables) | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Debt [Abstract] | ' | ||||||
Components Of Debt | ' | ||||||
September 30, | December 31, | ||||||
2014 | 2013 | ||||||
(in millions) | |||||||
Short-term debt: | |||||||
7.15% Senior Notes due 2018 | $ | 1 | $ | 1 | |||
Total short-term debt | 1 | 1 | |||||
Long-term debt: | |||||||
Variable rate (1.50% and 1.64% at September 30, 2014 and December 31, 2013, respectively) Credit Facility, expires December 2018 | 139 | 283 | |||||
7.35% Senior Notes due 2017 | 15 | 15 | |||||
7.125% Senior Notes due 2017 | 25 | 25 | |||||
7.15% Senior Notes due 2018 | 28 | 28 | |||||
7.5% Senior Notes due 2018 | 600 | 600 | |||||
4.10% Senior Notes due 2022 | 1,000 | 1,000 | |||||
Unamortized discount | -1 | -1 | |||||
Total long-term debt | 1,806 | 1,950 | |||||
Total debt | $ | 1,807 | $ | 1,951 | |||
Supplemental_Disclosures_Of_Ca1
Supplemental Disclosures Of Cash Flow Information (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Supplemental Cash Flow Information [Abstract] | ' | ||||||||||||
Schedule Of Supplemental Disclosures Of Cash Flow Information | ' | ||||||||||||
For the three months ended | For the nine months ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
(in millions) | |||||||||||||
Cash paid for interest (1) | $ | 45 | $ | 45 | $ | 95 | $ | 95 | |||||
Cash paid for income taxes | $ | – | $ | 1 | $ | – | $ | 19 | |||||
Noncash property and equipment changes | $ | 57 | $ | -12 | $ | 128 | $ | 34 | |||||
-1 | Cash paid for interest includes capitalized interest of $14 million and $15 million for the three months ended September 30, 2014 and 2013, respectively, and capitalized interest of $40 million and $48 million for the nine months ended September 30, 2014 and 2013, respectively. | ||||||||||||
Pension_Plan_And_Other_Postret1
Pension Plan And Other Postretirement Benefits (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Pension Plan And Other Postretirement Benefits [Abstract] | ' | ||||||||||||
Net Periodic Pension And Other Postretirement Benefit Costs | ' | ||||||||||||
Pension Benefits | |||||||||||||
For the three months ended | For the nine months ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
(in millions) | |||||||||||||
Service cost | $ | 3 | $ | 3 | $ | 10 | $ | 10 | |||||
Interest cost | 1 | 1 | 4 | 3 | |||||||||
Expected return on plan assets | -1 | -1 | -5 | -4 | |||||||||
Amortization of prior service cost | – | – | – | – | |||||||||
Amortization of net loss | – | – | – | 1 | |||||||||
Net periodic benefit cost | $ | 3 | $ | 3 | $ | 9 | $ | 10 | |||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Stock-Based Compensation [Abstract] | ' | ||||||||||||
Schedule Of Employee Stock-Based Compensation Costs | ' | ||||||||||||
For the three months ended | For the nine months ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
(in millions) | |||||||||||||
Stock-based compensation cost – expensed | $ | 4 | $ | 3 | $ | 13 | $ | 9 | |||||
Stock-based compensation cost – capitalized | $ | 4 | $ | 3 | $ | 13 | $ | 9 | |||||
Summary Of Stock Option Activity | ' | ||||||||||||
Weighted | |||||||||||||
Average | |||||||||||||
Number | Exercise | ||||||||||||
of Options | Price | ||||||||||||
(in thousands) | |||||||||||||
Outstanding at December 31, 2013 | 3,313 | $ | 35.70 | ||||||||||
Granted | 90 | 46.55 | |||||||||||
Exercised | -279 | 32.07 | |||||||||||
Forfeited or expired | -102 | 38.42 | |||||||||||
Outstanding at September 30, 2014 | 3,022 | 36.27 | |||||||||||
Exercisable at September 30, 2014 | 1,844 | $ | 35.39 | ||||||||||
Summary Of Restricted Stock Activity | ' | ||||||||||||
Weighted | |||||||||||||
Average | |||||||||||||
Number | Grant Date | ||||||||||||
of Shares | Fair Value | ||||||||||||
(in thousands) | |||||||||||||
Unvested shares at December 31, 2013 | 1,771 | $ | 37.55 | ||||||||||
Granted | 25 | 45.81 | |||||||||||
Vested | -22 | 36.62 | |||||||||||
Forfeited | -117 | 37.94 | |||||||||||
Unvested shares at September 30, 2014 | 1,657 | $ | 37.66 | ||||||||||
Summary Of Performance Unit Activity | ' | ||||||||||||
Weighted | |||||||||||||
Average | |||||||||||||
Number | Grant Date | ||||||||||||
of Units | Fair Value | ||||||||||||
(in thousands) | |||||||||||||
Unvested units at December 31, 2013 | – | $ | – | ||||||||||
Granted | 359 | 40.44 | |||||||||||
Vested | – | – | |||||||||||
Forfeited | -25 | 40.44 | |||||||||||
Unvested units at September 30, 2014 | 334 | $ | 40.44 | ||||||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Segment Information [Abstract] | ' | ||||||||||||
Summary Financial Information For Company's Reportable Segments | ' | ||||||||||||
Exploration | |||||||||||||
and | Midstream | ||||||||||||
Production | Services | Other | Total | ||||||||||
(in millions) | |||||||||||||
Three months ended September 30, 2014: | |||||||||||||
Revenues from external customers | $ | 652 | $ | 276 | $ | – | $ | 928 | |||||
Intersegment revenues | 3 | 707 | – | 710 | |||||||||
Operating income | 189 | 97 | – | 286 | |||||||||
Gain (loss) on derivatives | 79 | – | -1 | 78 | |||||||||
Depreciation, depletion and amortization expense | 223 | 15 | – | 238 | |||||||||
Interest expense(1) | 10 | 2 | 1 | 13 | |||||||||
Provision (benefit) for income taxes(1) | 107 | 34 | -1 | 140 | |||||||||
Assets | 7,461 | 1,494 | 222 | -2 | 9,177 | ||||||||
Capital investments(3) | 531 | 34 | 9 | 574 | |||||||||
Three months ended September 30, 2013: | |||||||||||||
Revenues from external customers | $ | 622 | $ | 246 | $ | – | $ | 868 | |||||
Intersegment revenues | 1 | 601 | – | 602 | |||||||||
Operating income | 223 | 86 | – | 309 | |||||||||
Gain on derivatives | 11 | 1 | – | 12 | |||||||||
Depreciation, depletion and amortization expense | 192 | 13 | – | 205 | |||||||||
Interest expense(1) | 9 | 2 | – | 11 | |||||||||
Provision for income taxes(1) | 88 | 36 | – | 124 | |||||||||
Assets | 6,265 | 1,388 | 241 | -2 | 7,894 | ||||||||
Capital investments(3) | 496 | 40 | 6 | 542 | |||||||||
Exploration | |||||||||||||
and | Midstream | ||||||||||||
Production | Services | Other | Total | ||||||||||
(in millions) | |||||||||||||
Nine months ended September 30, 2014: | |||||||||||||
Revenues from external customers | $ | 2,169 | $ | 907 | $ | – | $ | 3,076 | |||||
Intersegment revenues | 13 | 2,437 | – | 2,450 | |||||||||
Operating income (loss) | 817 | 272 | -1 | 1,088 | |||||||||
Other gain, net | 1 | – | – | 1 | |||||||||
Loss on derivatives | -27 | -1 | -1 | -29 | |||||||||
Depreciation, depletion and amortization expense | 650 | 43 | – | 693 | |||||||||
Interest expense(1) | 29 | 9 | 1 | 39 | |||||||||
Provision (benefit) for income taxes(1) | 309 | 101 | -1 | 409 | |||||||||
Assets | 7,461 | 1,494 | 222 | -2 | 9,177 | ||||||||
Capital investments(3) | 1,706 | 109 | 22 | 1,837 | |||||||||
Nine months ended September 30, 2013: | |||||||||||||
Revenues from external customers | $ | 1,749 | $ | 715 | $ | – | $ | 2,464 | |||||
Intersegment revenues | 4 | 1,740 | – | 1,744 | |||||||||
Operating income | 651 | 235 | – | 886 | |||||||||
Gain on derivatives | 74 | 1 | – | 75 | |||||||||
Depreciation, depletion and amortization expense | 534 | 37 | – | 571 | |||||||||
Interest expense(1) | 21 | 8 | – | 29 | |||||||||
Provision for income taxes(1) | 282 | 91 | – | 373 | |||||||||
Assets | 6,265 | 1,388 | 241 | -2 | 7,894 | ||||||||
Capital investments(3) | 1,603 | 135 | 17 | 1,755 | |||||||||
-1 | Interest expense and the provision for income taxes by segment are allocated as they are incurred at the corporate level. | ||||||||||||
-2 | Other assets represent corporate assets not allocated to segments and assets for non reportable segments. | ||||||||||||
-3 | Capital investments includes increases of $53 million and decreases of $15 million for the three month periods ended September 30, 2014 and 2013, respectively, and increases of $114 million and $26 million for the nine month periods ended September 30, 2014 and 2013, respectively, relating to the change in accrued expenditures between periods. | ||||||||||||
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Information (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||||
Condensed Consolidating Financial Information [Abstract] | ' | |||||||||||||||||||||||||||||||
Condensed Consolidating Statements Of Operations | ' | |||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | ||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
Parent | Former Guarantors | Other Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||
Three months ended September 30, 2013: | ||||||||||||||||||||||||||||||||
Operating revenues | $ | – | $ | 823 | $ | 131 | $ | -86 | $ | 868 | ||||||||||||||||||||||
Operating costs and expenses: | ||||||||||||||||||||||||||||||||
Gas purchases – midstream services | – | 195 | – | – | 195 | |||||||||||||||||||||||||||
Operating expenses | – | 140 | 36 | -86 | 90 | |||||||||||||||||||||||||||
General and administrative expenses | – | 44 | 7 | – | 51 | |||||||||||||||||||||||||||
Depreciation, depletion and amortization | – | 192 | 13 | – | 205 | |||||||||||||||||||||||||||
Taxes, other than income taxes | – | 16 | 2 | – | 18 | |||||||||||||||||||||||||||
Total operating costs and expenses | – | 587 | 58 | -86 | 559 | |||||||||||||||||||||||||||
Operating income | – | 236 | 73 | – | 309 | |||||||||||||||||||||||||||
Gain on derivatives | – | 10 | 2 | – | 12 | |||||||||||||||||||||||||||
Equity in earnings of subsidiaries | 186 | – | – | -186 | – | |||||||||||||||||||||||||||
Interest expense | – | 9 | 2 | – | 11 | |||||||||||||||||||||||||||
Income before income taxes | 186 | 237 | 73 | -186 | 310 | |||||||||||||||||||||||||||
Provision for income taxes | – | 91 | 33 | – | 124 | |||||||||||||||||||||||||||
Net income | 186 | 146 | 40 | -186 | 186 | |||||||||||||||||||||||||||
Comprehensive income | $ | 139 | $ | 98 | $ | 41 | $ | -139 | $ | 139 | ||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | ||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
Parent | Former Guarantors | Other Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||
Nine months ended September 30, 2013: | ||||||||||||||||||||||||||||||||
Operating revenues | $ | – | $ | 2,331 | $ | 379 | $ | -246 | $ | 2,464 | ||||||||||||||||||||||
Operating costs and expenses: | ||||||||||||||||||||||||||||||||
Gas purchases – midstream services | – | 575 | – | – | 575 | |||||||||||||||||||||||||||
Operating expenses | – | 376 | 107 | -246 | 237 | |||||||||||||||||||||||||||
General and administrative expenses | – | 117 | 19 | – | 136 | |||||||||||||||||||||||||||
Depreciation, depletion and amortization | – | 534 | 37 | – | 571 | |||||||||||||||||||||||||||
Taxes, other than income taxes | – | 50 | 9 | – | 59 | |||||||||||||||||||||||||||
Total operating costs and expenses | – | 1,652 | 172 | -246 | 1,578 | |||||||||||||||||||||||||||
Operating income | – | 679 | 207 | – | 886 | |||||||||||||||||||||||||||
Gain on derivatives | – | 74 | 1 | – | 75 | |||||||||||||||||||||||||||
Equity in earnings of subsidiaries | 559 | – | – | -559 | – | |||||||||||||||||||||||||||
Interest expense | – | 24 | 5 | – | 29 | |||||||||||||||||||||||||||
Income before income taxes | 559 | 729 | 203 | -559 | 932 | |||||||||||||||||||||||||||
Provision for income taxes | – | 291 | 82 | – | 373 | |||||||||||||||||||||||||||
Net income | 559 | 438 | 121 | -559 | 559 | |||||||||||||||||||||||||||
Comprehensive income | $ | 458 | $ | 337 | $ | 120 | $ | -457 | $ | 458 | ||||||||||||||||||||||
Condensed Consolidating Statements Of Cash Flows | ' | |||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
Parent | Former Guarantors | Other Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||
Nine months ended September 30, 2013: | ||||||||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | -33 | $ | 1,062 | $ | 349 | $ | – | $ | 1,378 | ||||||||||||||||||||||
Investing activities: | ||||||||||||||||||||||||||||||||
Capital investments | -29 | -1,531 | -168 | – | -1,728 | |||||||||||||||||||||||||||
Proceeds from sale of property and equipment | – | – | 3 | – | 3 | |||||||||||||||||||||||||||
Transfers from restricted cash | 9 | – | – | – | 9 | |||||||||||||||||||||||||||
Other | -1 | -2 | 7 | – | 4 | |||||||||||||||||||||||||||
Net cash used in investing activities | -21 | -1,533 | -158 | – | -1,712 | |||||||||||||||||||||||||||
Financing activities: | ||||||||||||||||||||||||||||||||
Intercompany activities | -275 | 465 | -190 | – | – | |||||||||||||||||||||||||||
Payments on current portion of long-term debt | -1 | – | – | – | -1 | |||||||||||||||||||||||||||
Payments on revolving long-term debt | -2,135 | – | – | – | -2,135 | |||||||||||||||||||||||||||
Borrowings under revolving long-term debt | 2,378 | – | – | – | 2,378 | |||||||||||||||||||||||||||
Other items | 57 | – | – | – | 57 | |||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | 24 | 465 | -190 | – | 299 | |||||||||||||||||||||||||||
Increase (decrease) in cash and cash equivalents | -30 | -6 | 1 | – | -35 | |||||||||||||||||||||||||||
Cash and cash equivalents at beginning of year | 48 | 6 | – | – | 54 | |||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 18 | $ | – | $ | 1 | $ | – | $ | 19 | ||||||||||||||||||||||
Acquisitions_And_Divestitures_
Acquisitions And Divestitures (Details) (USD $) | 1 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Apr. 30, 2013 | Sep. 30, 2014 |
Marcellus Shale In Pennsylvania [Member] | Niobrara Formation In Colorado [Member] | |
acre | ||
Business Acquisition [Line Items] | ' | ' |
Cost to acquire property | $93 | $213 |
Area of land purchased | ' | 380,000 |
Inventory_Details
Inventory (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Exploration and Production [Member] | ' | ' |
Inventory [Line Items] | ' | ' |
Current assets inventory, tubulars & other equipment | $33 | $34 |
Current assets inventory, underground storage | 2 | 4 |
Midstream Services [Member] | ' | ' |
Inventory [Line Items] | ' | ' |
Current assets inventory, underground storage | 2 | ' |
Other assets non-current inventory, gathering systems pipe | $16 | $15 |
Natural_Gas_And_Oil_Properties1
Natural Gas And Oil Properties (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | ' | ' |
Period of time needed to calculate ceiling value of reserves | '12 months | ' |
Discount rate of natural gas and oil reserves | 10.00% | ' |
Cash flow hedges impact on ceiling value, net of tax | $14 | $79 |
Henry Hub Natural Gas [Member] | ' | ' |
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | ' | ' |
Period of time needed to calculate ceiling value of reserves | '12 months | '12 months |
Full cost ceiling test, price | 4.24 | 3.6 |
West Texas Intermediate Oil [Member] | ' | ' |
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items] | ' | ' |
Period of time needed to calculate ceiling value of reserves | '12 months | '12 months |
Full cost ceiling test, price | 95.56 | 91.56 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ||||
Net income | $211 | $186 | $612 | $559 | ||||
Number of common shares, Weighted average outstanding | 351,457,043 | 350,517,337 | 351,357,913 | 350,334,634 | ||||
Number of common shares, Issued upon assumed exercise of outstanding stock options | 235,944 | 373,152 | 354,940 | 442,678 | ||||
Diluted | 352,327,250 | [1],[2] | 351,222,830 | [1],[2] | 352,334,546 | [1],[2] | 351,014,974 | [1],[2] |
Basic | $0.60 | $0.53 | $1.74 | $1.60 | ||||
Diluted | $0.60 | $0.53 | $1.74 | $1.59 | ||||
Stock Options [Member] | ' | ' | ' | ' | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ||||
Antidilutive securities excluded from computation of earnings per share, shares | 1,254,842 | 1,550,838 | 1,111,128 | 1,848,566 | ||||
Restricted Stock [Member] | ' | ' | ' | ' | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ||||
Number of common shares, Effect of issuance of nonvested shares | 514,668 | 332,341 | 484,786 | 237,662 | ||||
Antidilutive securities excluded from computation of earnings per share, shares | 27,916 | 15,703 | 24,215 | 169,261 | ||||
Performance Units [Member] | ' | ' | ' | ' | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ||||
Number of common shares, Effect of issuance of nonvested shares | 119,595 | ' | 136,907 | ' | ||||
[1] | Options for 1,254,842 shares and 27,916 shares of restricted stock were excluded from the calculation for the three months ended September 30, 2014 because they would have had an antidilutive effect. Options for 1,550,838 shares and 15,703 shares of restricted stock were excluded from the calculation for the three months ended September 30, 2013 because they would have had an antidilutive effect. | |||||||
[2] | Options for 1,111,128 shares and 24,215 shares of restricted stock were excluded from the calculation for the nine months ended September 30, 2014 because they would have had an antidilutive effect. Options for 1,848,566 shares and 169,261 shares of restricted stock were excluded from the calculation for the nine months ended September 30, 2013 because they would have had an antidilutive effect. |
Derivatives_And_Risk_Managemen2
Derivatives And Risk Management (Narrative) (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
Derivative [Line Items] | ' |
Accumulated other comprehensive income, net gain related to hedging activities | $36 |
Deferred income tax liability, accumulated other comprehensive income | 24 |
Cash flow hedge after-tax net gain to be transferred from accumulated other comprehensive income to earnings during the next twelve months | 30 |
Year 2014 [Member] | Fixed Price Swaps [Member] | ' |
Derivative [Line Items] | ' |
Volume of natural gas production | 117,000,000,000 |
Year 2015 [Member] | Fixed Price Swaps [Member] | ' |
Derivative [Line Items] | ' |
Volume of natural gas production | 240,000,000,000 |
Designated as Hedging Instrument [Member] | Year 2014 [Member] | Fixed Price Swaps [Member] | ' |
Derivative [Line Items] | ' |
Volume of natural gas production | 71,000,000,000 |
Designated as Hedging Instrument [Member] | Year 2015 [Member] | Fixed Price Swaps [Member] | ' |
Derivative [Line Items] | ' |
Volume of natural gas production | 120,000,000,000 |
Not Designated as Hedging Instrument [Member] | Interest Rate Swaps [Member] | ' |
Derivative [Line Items] | ' |
Notional amount | $170 |
Not Designated as Hedging Instrument [Member] | Year 2014 [Member] | Basis Swaps [Member] | ' |
Derivative [Line Items] | ' |
Volume of natural gas production | 10,000,000,000 |
Not Designated as Hedging Instrument [Member] | Year 2014 [Member] | Fixed Price Swaps [Member] | ' |
Derivative [Line Items] | ' |
Volume of natural gas production | 46,000,000,000 |
Not Designated as Hedging Instrument [Member] | Year 2015 [Member] | Basis Swaps [Member] | ' |
Derivative [Line Items] | ' |
Volume of natural gas production | 15,000,000,000 |
Not Designated as Hedging Instrument [Member] | Year 2015 [Member] | Fixed Price Call Options [Member] | ' |
Derivative [Line Items] | ' |
Volume of natural gas production | 200,000,000,000 |
Not Designated as Hedging Instrument [Member] | Year 2015 [Member] | Fixed Price Swaps [Member] | ' |
Derivative [Line Items] | ' |
Volume of natural gas production | 120,000,000,000 |
Not Designated as Hedging Instrument [Member] | Year 2016 [Member] | Basis Swaps [Member] | ' |
Derivative [Line Items] | ' |
Volume of natural gas production | 4,000,000,000 |
Not Designated as Hedging Instrument [Member] | Year 2016 [Member] | Fixed Price Call Options [Member] | ' |
Derivative [Line Items] | ' |
Volume of natural gas production | 120,000,000,000 |
Derivatives_And_Risk_Managemen3
Derivatives And Risk Management (Balance Sheet Classification Of Derivative Financial Instruments) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative assets | $146 | $79 |
Derivative liabilities | 68 | 40 |
Designated as Hedging Instrument [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative assets | 63 | 21 |
Derivative liabilities | ' | 4 |
Designated as Hedging Instrument [Member] | Fixed Price Swaps [Member] | Derivative Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative assets | 52 | 21 |
Designated as Hedging Instrument [Member] | Fixed Price Swaps [Member] | Other Long-Term Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative assets | 11 | ' |
Designated as Hedging Instrument [Member] | Fixed Price Swaps [Member] | Derivative Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative liabilities | ' | 4 |
Not Designated as Hedging Instrument [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative assets | 83 | 58 |
Derivative liabilities | 68 | 36 |
Not Designated as Hedging Instrument [Member] | Fixed Price Swaps [Member] | Derivative Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative assets | 50 | 37 |
Not Designated as Hedging Instrument [Member] | Fixed Price Swaps [Member] | Other Long-Term Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative assets | 12 | ' |
Not Designated as Hedging Instrument [Member] | Basis Swaps [Member] | Derivative Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative assets | 15 | 13 |
Not Designated as Hedging Instrument [Member] | Basis Swaps [Member] | Other Long-Term Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative assets | 3 | ' |
Not Designated as Hedging Instrument [Member] | Basis Swaps [Member] | Derivative Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative liabilities | 20 | 2 |
Not Designated as Hedging Instrument [Member] | Basis Swaps [Member] | Other Long-Term Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative liabilities | 3 | ' |
Not Designated as Hedging Instrument [Member] | Interest Rate Swaps [Member] | Other Long-Term Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative assets | 3 | 8 |
Not Designated as Hedging Instrument [Member] | Interest Rate Swaps [Member] | Derivative Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative liabilities | 3 | 1 |
Not Designated as Hedging Instrument [Member] | Interest Rate Swaps [Member] | Other Long-Term Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative liabilities | 1 | 3 |
Not Designated as Hedging Instrument [Member] | Fixed Price Call Options [Member] | Derivative Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative liabilities | 13 | ' |
Not Designated as Hedging Instrument [Member] | Fixed Price Call Options [Member] | Other Long-Term Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative liabilities | $28 | $30 |
Derivatives_And_Risk_Managemen4
Derivatives And Risk Management (Schedule Of Derivative Instruments, Volumes Of Natural Gas Production) (Details) (Fixed Price Swaps [Member]) | 9 Months Ended |
Sep. 30, 2014 | |
ft3 | |
Year 2014 [Member] | ' |
Derivative [Line Items] | ' |
Volume of natural gas production | 117,000,000,000 |
Year 2014 [Member] | Designated as Hedging Instrument [Member] | ' |
Derivative [Line Items] | ' |
Volume of natural gas production | 71,000,000,000 |
Year 2014 [Member] | Not Designated as Hedging Instrument [Member] | ' |
Derivative [Line Items] | ' |
Volume of natural gas production | 46,000,000,000 |
Year 2015 [Member] | ' |
Derivative [Line Items] | ' |
Volume of natural gas production | 240,000,000,000 |
Year 2015 [Member] | Designated as Hedging Instrument [Member] | ' |
Derivative [Line Items] | ' |
Volume of natural gas production | 120,000,000,000 |
Year 2015 [Member] | Not Designated as Hedging Instrument [Member] | ' |
Derivative [Line Items] | ' |
Volume of natural gas production | 120,000,000,000 |
Derivatives_And_Risk_Managemen5
Derivatives And Risk Management (Summary Of Before Tax Effect Of Cash Flow Hedges On Consolidated Financial Statements) (Details) (Fixed Price Swaps [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income, Effective Portion | $80 | $13 | ($2) | $51 |
Gas Sales [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Earnings, Effective Portion | 18 | 93 | -48 | 218 |
Derivative Instruments, Gain (Loss) Recognized in Earnings, Ineffective Portion | $3 | ($1) | $1 | ($2) |
Derivatives_And_Risk_Managemen6
Derivatives And Risk Management (Summary Of Before Tax Effect Of Fair Value Hedges Not Designated For Hedge Accounting) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Basis Swaps [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) on Derivatives, Net of Settlement | ($3) | ($5) | ($16) | $2 |
Derivative Instruments, Gain (Loss) on Derivatives, Settled | 9 | 2 | ' | 3 |
Fixed Price Call Options [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) on Derivatives, Net of Settlement | 11 | 8 | -11 | -27 |
Fixed Price Swaps [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) on Derivatives, Net of Settlement | 45 | 8 | 24 | 96 |
Derivative Instruments, Gain (Loss) on Derivatives, Settled | 15 | ' | -21 | ' |
Interest Rate Swaps [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) on Derivatives, Net of Settlement | 1 | -1 | -4 | 1 |
Derivative Instruments, Gain (Loss) on Derivatives, Settled | ' | ' | ($1) | ' |
Reclassification_From_Accumula2
Reclassification From Accumulated Other Comprehensive Income (Loss) (Components Of Accumulated Other Comprehensive Income (Loss)) (Details) (USD $) | 9 Months Ended | 9 Months Ended | ||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | |||||
Gains (Losses) On Cash Flow Hedges [Member] | Pension And Other Postretirement [Member] | Pension And Other Postretirement [Member] | Foreign Currency [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | |||||
Beginning balance | ($4) | [1] | $9 | [1] | ($9) | [1] | ($9) | [1] | ($4) | [1] |
Other comprehensive loss before reclassifications | -5 | [1] | -1 | [1] | ' | ' | -4 | [1] | ||
Amounts reclassified from accumulated other comprehensive loss | 28 | [1],[2] | 28 | [1],[2] | ' | ' | ' | |||
Net current-period other comprehensive income (loss) | 23 | [1] | 27 | [1] | ' | ' | -4 | [1] | ||
Ending balance | $19 | [1] | $36 | [1] | ($9) | [1] | ($9) | [1] | ($8) | [1] |
[1] | All amounts are net of tax. | |||||||||
[2] | See separate table below for details about these reclassifications. |
Reclassification_From_Accumula3
Reclassification From Accumulated Other Comprehensive Income (Loss) (Amounts Reclassified From Accumulated Other Comprehensive Income (Loss)) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Gas sales | $645 | $617 | $2,155 | $1,736 | ||||
Loss before income taxes | 351 | 310 | 1,021 | 932 | ||||
Benefit for income taxes | 140 | [1] | 124 | [1] | 409 | [1] | 373 | [1] |
Net Income (Loss) | 211 | 186 | 612 | 559 | ||||
Reclassification Out Of Accumulated Other Comprehensive Loss [Member] | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Net Income (Loss) | ' | ' | -28 | ' | ||||
Gains (Losses) On Cash Flow Hedges [Member] | Reclassification Out Of Accumulated Other Comprehensive Loss [Member] | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Loss before income taxes | ' | ' | -47 | ' | ||||
Benefit for income taxes | ' | ' | -19 | ' | ||||
Net Income (Loss) | ' | ' | -28 | ' | ||||
Gains (Losses) On Cash Flow Hedges [Member] | Reclassification Out Of Accumulated Other Comprehensive Loss [Member] | Settlements [Member] | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Gas sales | ' | ' | -48 | ' | ||||
Gains (Losses) On Cash Flow Hedges [Member] | Reclassification Out Of Accumulated Other Comprehensive Loss [Member] | Ineffectiveness [Member] | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Gas sales | ' | ' | $1 | ' | ||||
[1] | Interest expense and the provision for income taxes by segment are allocated as they are incurred at the corporate level. |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Details) | Sep. 30, 2014 | Dec. 31, 2013 |
7.5% Senior Notes Due 2018 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, interest rate, stated percentage | 7.50% | ' |
Yield, Publicly-traded debt market | 2.20% | 2.60% |
4.10% Senior Notes Due 2022 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, interest rate, stated percentage | 4.10% | ' |
Yield, Publicly-traded debt market | 3.60% | 4.20% |
Fair_Value_Measurements_Carryi
Fair Value Measurements (Carrying Amount And Estimated Fair Values Of Financial Instruments) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Carrying Amount [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash and cash equivalents | $20 | $23 |
Credit facility | 139 | 283 |
Senior notes | 1,668 | 1,668 |
Derivative instruments | 78 | 39 |
Fair Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash and cash equivalents | 20 | 23 |
Credit facility | 139 | 283 |
Senior notes | 1,957 | 1,796 |
Derivative instruments | $78 | $39 |
Fair_Value_Measurements_Summar
Fair Value Measurements (Summary Assets And Liabilities Measured At Fair Value On Recurring Basis) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Quoted Prices in Active Markets for Identical Assets, Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative assets | ' | ' |
Derivative liabilities | ' | ' |
Total | ' | ' |
Significant Observable Inputs, Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative assets | 128 | 66 |
Derivative liabilities | -4 | -8 |
Total | 124 | 58 |
Significant Unobservable Inputs, Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative assets | 18 | 13 |
Derivative liabilities | -64 | -32 |
Total | -46 | -19 |
Fair Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative assets | 146 | 79 |
Derivative liabilities | -68 | -40 |
Total | $78 | $39 |
Fair_Value_Measurements_Reconc
Fair Value Measurements (Reconciliations For Change In Net Fair Value Of Derivative Assets And Liabilities Measured At Fair Value On A Recurring Basis Using Significant Unobservable Inputs (Level 3)) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Fair Value Measurements [Abstract] | ' | ' | ' | ' |
Balance at beginning of period | ($55) | ($28) | ($19) | ' |
Included in earnings | 18 | 5 | -27 | -22 |
Included in other comprehensive income | ' | ' | ' | ' |
Purchases, issuances, and settlements: | ' | ' | ' | ' |
Purchases | ' | ' | ' | ' |
Issuances | ' | ' | ' | ' |
Settlements | -9 | -2 | ' | -3 |
Transfers into/out of Level 3 | ' | ' | ' | ' |
Balance at end of period | -46 | -25 | -46 | -25 |
Change in gains (losses) included in earnings relating to derivatives still held as of September 30 | $9 | $3 | ($27) | ($25) |
Debt_Narrative_Details
Debt (Narrative) (Details) (Credit Facility [Member], USD $) | 9 Months Ended |
Sep. 30, 2014 | |
item | |
Debt Instrument [Line Items] | ' |
Unsecured revolving credit facility, borrowing capacity | $2,000,000,000 |
Unsecured revolving credit facility, maturity date | 1-Dec-18 |
Number of extension options | 2 |
Extension term | '1 year |
Unsecured revolving credit facility, increase in current borrowing capacity potential | $500,000,000 |
Debt percentage of adjusted book capital structure covenant | 60.00% |
Over LIBOR [Member] | ' |
Debt Instrument [Line Items] | ' |
Basis points | 1.38% |
Debt_Components_Of_Debt_Detail
Debt (Components Of Debt) (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ' | ' |
Short-term debt | $1 | $1 |
Unamortized discount | -1 | -1 |
Long-Term Debt | 1,806 | 1,950 |
Total debt | 1,807 | 1,951 |
Credit Facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Variable rate (1.50% and 1.64% at September 30, 2014 and December 31, 2013, respectively) Credit Facility, expires December 2018 | 139 | 283 |
Variable interest rate | 1.50% | 1.64% |
Credit facility, maturity date | 1-Dec-18 | ' |
7.35% Senior Notes due 2017 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Stated interest rate | 7.35% | ' |
Maturity date | '2017 | ' |
7.125% Senior Notes due 2017 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Stated interest rate | 7.13% | ' |
Maturity date | '2017 | ' |
7.15% Senior Notes due 2018 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Stated interest rate | 7.15% | ' |
Maturity date | '2018 | ' |
7.5% Senior Notes Due 2018 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Stated interest rate | 7.50% | ' |
Maturity date | '2018 | ' |
4.10% Senior Notes Due 2022 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Stated interest rate | 4.10% | ' |
Maturity date | '2022 | ' |
Senior Notes [Member] | 7.35% Senior Notes due 2017 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Senior Notes | 15 | 15 |
Senior Notes [Member] | 7.125% Senior Notes due 2017 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Senior Notes | 25 | 25 |
Senior Notes [Member] | 7.15% Senior Notes due 2018 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Short-term debt | 1 | 1 |
Senior Notes | 28 | 28 |
Senior Notes [Member] | 7.5% Senior Notes Due 2018 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Senior Notes | 600 | 600 |
Senior Notes [Member] | 4.10% Senior Notes Due 2022 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Senior Notes | $1,000 | $1,000 |
Commitments_And_Contingencies_
Commitments And Contingencies (Details) | 0 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | ||||||||
Aug. 24, 2011 | Jul. 31, 2013 | Dec. 31, 2010 | Sep. 30, 2014 | Sep. 30, 2014 | Feb. 28, 2014 | Mar. 31, 2010 | Feb. 28, 2009 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2012 | |
USD ($) | USD ($) | item | USD ($) | CAD | USD ($) | CAD | USD ($) | Arkansas Royalty Litigation [Member] | Arkansas Royalty Litigation [Member] | Arkansas Royalty Litigation [Member] | Licensing Agreement [Member] | |
acre | lawsuit | Arkansas State Court [Member] | Federal Court [Member] | |||||||||
lawsuit | lawsuit | |||||||||||
Commitments And Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecorded capital investments obligation, Exploration program acres coverage (acres) | ' | ' | ' | ' | ' | ' | 2,500,000 | ' | ' | ' | ' | ' |
Unrecorded capital investments obligation | ' | ' | ' | ' | ' | ' | 47,000,000 | ' | ' | ' | ' | ' |
Period licenses require capital investments be made, years | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecorded promissory note payable | ' | ' | ' | ' | ' | ' | 45,000,000 | ' | ' | ' | ' | ' |
Obligations for demand and similar charges under transportation agreements | ' | ' | ' | 44,000,000 | 44,000,000 | ' | ' | ' | ' | ' | ' | ' |
Extension expiration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16-Mar-15 |
Promissory note payable, liability recognized | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Obligation under transportation agreements | ' | ' | ' | 3,800,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Guarantee obligations relative to the firms transportation agreements and gathering project and services | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of prospects | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation settlement, gross | 11,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation, portion of profits considered for disgorgement | ' | ' | ' | ' | ' | ' | ' | 382,000,000 | ' | ' | ' | ' |
Disgorgement damages awarded in favor of the plaintiff and intervenor | 24,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation, interest and attorney's fees claimed by plaintiffs | 9,000,000 | ' | ' | ' | ' | 11,000,000 | ' | ' | ' | ' | ' | ' |
Disgorgement recoverable by plaintiff to be reversed | ' | 24,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Actual damages recoverable by plaintiff to be reversed | ' | 11,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation settlement upheld | ' | $11,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of cases | ' | ' | ' | ' | ' | ' | ' | ' | 3 | 2 | 1 | ' |
Supplemental_Disclosures_Of_Ca2
Supplemental Disclosures Of Cash Flow Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Supplemental Disclosures Of Cash Flow Information [Abstract] | ' | ' | ' | ' | ||||
Cash paid for interest | $45 | [1] | $45 | [1] | $95 | [1] | $95 | [1] |
Cash paid for income taxes | ' | 1 | ' | 19 | ||||
Noncash property and equipment changes | 57 | -12 | 128 | 34 | ||||
Interest paid, capitalized | $14 | $15 | $40 | $48 | ||||
[1] | Cash paid for interest includes capitalized interest of $14 million and $15 million for the three months ended September 30, 2014 and 2013, respectively, and capitalized interest of $40 million and $48 million for the nine months ended September 30, 2014 and 2013, respectively. |
Pension_Plan_And_Other_Postret2
Pension Plan And Other Postretirement Benefits (Narrative) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, except Share data, unless otherwise specified | Defined Contribution Pension [Member] | Defined Contribution Pension [Member] | Pension Benefits [Member] | Pension Benefits [Member] | Pension Benefits [Member] | Pension Benefits [Member] | Other Postretirement Benefits [Member] | Other Postretirement Benefits [Member] | Other Postretirement Benefits [Member] | Other Postretirement Benefits [Member] |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net periodic benefit cost | ' | ' | $3 | $3 | $9 | $10 | $1 | $1 | $2 | $2 |
Employer contributions | ' | ' | ' | ' | 9 | ' | ' | ' | ' | ' |
Company's expected additional annual contribution | ' | ' | ' | ' | $3 | ' | ' | ' | ' | ' |
Common stock purchased under the terms of the Non-Qualified Plan presented as treasury stock | 10,763 | 9,924 | ' | ' | ' | ' | ' | ' | ' | ' |
Pension_Plan_And_Other_Postret3
Pension Plan And Other Postretirement Benefits (Net Periodic Pension And Other Postretirement Benefit Costs) (Details) (Pension Benefits [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Pension Benefits [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | $3 | $3 | $10 | $10 |
Interest cost | 1 | 1 | 4 | 3 |
Expected return on plan assets | -1 | -1 | -5 | -4 |
Amortization of net loss | ' | ' | ' | 1 |
Net periodic benefit cost | $3 | $3 | $9 | $10 |
StockBased_Compensation_Narrat
Stock-Based Compensation (Narrative) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Unrecognized compensation cost related to the Company's unvested stock option grants, restricted stock grants, and performance units | $64 | ' |
Weighted average period over which cost is recognized, years | '3 years | ' |
Performance Units [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Vesting period for stock awards from grant date | '3 years | ' |
Performance unit liability | $48 | $45 |
StockBased_Compensation_Schedu
Stock-Based Compensation (Schedule Of Employee Stock-Based Compensation Costs) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Stock-Based Compensation [Abstract] | ' | ' | ' | ' |
Stock-based compensation costs - expensed | $4 | $3 | $13 | $9 |
Stock-based compensation costs - capitalized | $4 | $3 | $13 | $9 |
StockBased_Compensation_Summar
Stock-Based Compensation (Summary of Stock Option Activity) (Details) (USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Stock-Based Compensation [Abstract] | ' |
Stock options, Outstanding at December 31, 2013, Number of options | 3,313,000 |
Stock options, Granted, Number of options | 90,000 |
Stock options, Exercised, Number of options | -279,000 |
Stock options, Forfeited or expired, Number of options | -102,000 |
Stock options, Outstanding at September 30, 2014, Number of options | 3,022,000 |
Stock options, Outstanding at December 31, 2013, Weighted average exercise price | $35.70 |
Stock options, Granted, Weighted average exercise price | $46.55 |
Stock options, Exercised, Weighted average exercise price | $32.07 |
Stock options, Forfeited or expired, Weighted average exercise price | $38.42 |
Stock options, Outstanding at September 30, 2014, Weighted average exercise price | $36.27 |
Stock options, Exercisable at September 30, 2014 | 1,844,000 |
Stock options, Exercisable at September 30, 2014, Weighted average exercise price | $35.39 |
StockBased_Compensation_Summar1
Stock-Based Compensation (Summary Of Restricted Stock Activity) (Details) (Restricted Stock [Member], USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Restricted Stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Unvested shares/units at December 31, 2013, Number of Shares | 1,771,000 |
Granted, Number of Shares/Units | 25,000 |
Vested, Number of Shares/Units | -22,000 |
Forfeited, Number of Shares/Units | -117,000 |
Unvested shares/units at September 30, 2014, Number of Shares | 1,657,000 |
Unvested shares/units at December 31, 2013, Weighted Average Grant Date Fair Value | $37.55 |
Granted, Weighted Average Grant Date Fair Value | $45.81 |
Vested, Weighted Average Grant Date Fair Value | $36.62 |
Forfeited, Weighted Average Grant Date Fair Value | $37.94 |
Unvested shares at September 30, 2014, Weighted Average Grant Date Fair Value | $37.66 |
StockBased_Compensation_Summar2
Stock-Based Compensation (Summary Of Performance Unit Activity) (Details) (Performance Units [Member], USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Performance Units [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Unvested shares/units at December 31, 2013, Number of Shares | ' |
Granted, Number of Shares/Units | 359,000 |
Vested, Number of Shares/Units | ' |
Forfeited, Number of Shares/Units | -25,000 |
Unvested shares/units at September 30, 2014, Number of Shares | 334,000 |
Unvested shares/units at December 31, 2013, Weighted Average Grant Date Fair Value | ' |
Granted, Weighted Average Grant Date Fair Value | $40.44 |
Vested, Weighted Average Grant Date Fair Value | ' |
Forfeited, Weighted Average Grant Date Fair Value | $40.44 |
Unvested shares at September 30, 2014, Weighted Average Grant Date Fair Value | $40.44 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Revenues | $928 | $868 | $3,076 | $2,464 | ' | ||||
Operating income (loss) | 286 | 309 | 1,088 | 886 | ' | ||||
Other Gain, Net | ' | ' | 1 | ' | ' | ||||
Gain (loss) on derivatives | 78 | 12 | -29 | 75 | ' | ||||
Depreciation, depletion and amortization | 238 | 205 | 693 | 571 | ' | ||||
Interest expense | 13 | [1] | 11 | [1] | 39 | [1] | 29 | [1] | ' |
Provision (benefit) for income taxes | 140 | [1] | 124 | [1] | 409 | [1] | 373 | [1] | ' |
Assets | 9,177 | 7,894 | 9,177 | 7,894 | 8,048 | ||||
Capital investments | 574 | [2] | 542 | [2] | 1,837 | [2] | 1,755 | [2] | ' |
Change in accrued expenditures | 53 | 15 | 114 | 26 | ' | ||||
Intersegment Eliminations [Member] | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Revenues | -710 | -602 | -2,450 | -1,744 | ' | ||||
Exploration and Production [Member] | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Revenues | 652 | 622 | 2,169 | 1,749 | ' | ||||
Operating income (loss) | 189 | 223 | 817 | 651 | ' | ||||
Other Gain, Net | ' | ' | 1 | ' | ' | ||||
Gain (loss) on derivatives | 79 | 11 | -27 | 74 | ' | ||||
Depreciation, depletion and amortization | 223 | 192 | 650 | 534 | ' | ||||
Interest expense | 10 | [1] | 9 | [1] | 29 | [1] | 21 | [1] | ' |
Provision (benefit) for income taxes | 107 | [1] | 88 | [1] | 309 | [1] | 282 | [1] | ' |
Assets | 7,461 | 6,265 | 7,461 | 6,265 | ' | ||||
Capital investments | 531 | [2] | 496 | [2] | 1,706 | [2] | 1,603 | [2] | ' |
Exploration and Production [Member] | Intersegment Eliminations [Member] | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Revenues | -3 | -1 | -13 | -4 | ' | ||||
Exploration and Production [Member] | Canada [Member] | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Assets | 78 | 65 | 78 | 65 | ' | ||||
Midstream Services [Member] | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Revenues | 276 | 246 | 907 | 715 | ' | ||||
Operating income (loss) | 97 | 86 | 272 | 235 | ' | ||||
Gain (loss) on derivatives | ' | 1 | -1 | 1 | ' | ||||
Depreciation, depletion and amortization | 15 | 13 | 43 | 37 | ' | ||||
Interest expense | 2 | [1] | 2 | [1] | 9 | [1] | 8 | [1] | ' |
Provision (benefit) for income taxes | 34 | [1] | 36 | [1] | 101 | [1] | 91 | [1] | ' |
Assets | 1,494 | 1,388 | 1,494 | 1,388 | ' | ||||
Capital investments | 34 | [2] | 40 | [2] | 109 | [2] | 135 | [2] | ' |
Midstream Services [Member] | Intersegment Eliminations [Member] | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Revenues | -707 | -601 | -2,437 | -1,740 | ' | ||||
Other [Member] | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Operating income (loss) | ' | ' | -1 | ' | ' | ||||
Gain (loss) on derivatives | -1 | ' | -1 | ' | ' | ||||
Interest expense | 1 | [1] | ' | 1 | [1] | ' | ' | ||
Provision (benefit) for income taxes | -1 | [1] | ' | -1 | [1] | ' | ' | ||
Assets | 222 | [3] | 241 | [3] | 222 | [3] | 241 | [3] | ' |
Capital investments | 9 | [2] | 6 | [2] | 22 | [2] | 17 | [2] | ' |
Marketing [Member] | Midstream Services [Member] | Intersegment Eliminations [Member] | ' | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ||||
Revenues | ($612) | ($515) | ($2,161) | ($1,494) | ' | ||||
[1] | Interest expense and the provision for income taxes by segment are allocated as they are incurred at the corporate level. | ||||||||
[2] | Capital investments includes increases of $53 million and decreases of $15 million for the three month periods ended September 30, 2014 and 2013, respectively, and increases of $114 million and $26 million for the nine month periods ended September 30, 2014 and 2013, respectively, relating to the change in accrued expenditures between periods. | ||||||||
[3] | Other assets represent corporate assets not allocated to segments and assets for non reportable segments. |
Condensed_Consolidating_Financ2
Condensed Consolidating Financial Information (Condensed Consolidating Statement of Operations) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Condensed Income Statements, Captions [Line Items] | ' | ' | ' | ' | ||||
Operating revenues | $928 | $868 | $3,076 | $2,464 | ||||
Gas purchases - midstream services | 220 | 195 | 752 | 575 | ||||
Operating expenses | 108 | 90 | 309 | 237 | ||||
General and administrative expenses | 54 | 51 | 162 | 136 | ||||
Depreciation, depletion and amortization | 238 | 205 | 693 | 571 | ||||
Taxes, other than income taxes | 22 | 18 | 72 | 59 | ||||
Total Operating Costs and Expenses | 642 | 559 | 1,988 | 1,578 | ||||
Operating Income | 286 | 309 | 1,088 | 886 | ||||
Other Gain, Net | ' | ' | 1 | ' | ||||
Gain (loss) on derivatives | 78 | 12 | -29 | 75 | ||||
Interest expense | 13 | [1] | 11 | [1] | 39 | [1] | 29 | [1] |
Income Before Income Taxes | 351 | 310 | 1,021 | 932 | ||||
Provision (benefit) for income taxes | 140 | [1] | 124 | [1] | 409 | [1] | 373 | [1] |
Net Income (Loss) | 211 | 186 | 612 | 559 | ||||
Comprehensive income | 242 | 139 | 635 | 458 | ||||
Eliminations [Member] | ' | ' | ' | ' | ||||
Condensed Income Statements, Captions [Line Items] | ' | ' | ' | ' | ||||
Operating revenues | ' | -86 | ' | -246 | ||||
Operating expenses | ' | -86 | ' | -246 | ||||
Total Operating Costs and Expenses | ' | -86 | ' | -246 | ||||
Equity in earnings of subsidiaries | ' | -186 | ' | -559 | ||||
Income Before Income Taxes | ' | -186 | ' | -559 | ||||
Net Income (Loss) | ' | -186 | ' | -559 | ||||
Comprehensive income | ' | -139 | ' | -457 | ||||
Parent [Member] | ' | ' | ' | ' | ||||
Condensed Income Statements, Captions [Line Items] | ' | ' | ' | ' | ||||
Equity in earnings of subsidiaries | ' | 186 | ' | 559 | ||||
Income Before Income Taxes | ' | 186 | ' | 559 | ||||
Net Income (Loss) | ' | 186 | ' | 559 | ||||
Comprehensive income | ' | 139 | ' | 458 | ||||
Former Guarantors [Member] | ' | ' | ' | ' | ||||
Condensed Income Statements, Captions [Line Items] | ' | ' | ' | ' | ||||
Operating revenues | ' | 823 | ' | 2,331 | ||||
Gas purchases - midstream services | ' | 195 | ' | 575 | ||||
Operating expenses | ' | 140 | ' | 376 | ||||
General and administrative expenses | ' | 44 | ' | 117 | ||||
Depreciation, depletion and amortization | ' | 192 | ' | 534 | ||||
Taxes, other than income taxes | ' | 16 | ' | 50 | ||||
Total Operating Costs and Expenses | ' | 587 | ' | 1,652 | ||||
Operating Income | ' | 236 | ' | 679 | ||||
Gain (loss) on derivatives | ' | 10 | ' | 74 | ||||
Interest expense | ' | 9 | ' | 24 | ||||
Income Before Income Taxes | ' | 237 | ' | 729 | ||||
Provision (benefit) for income taxes | ' | 91 | ' | 291 | ||||
Net Income (Loss) | ' | 146 | ' | 438 | ||||
Comprehensive income | ' | 98 | ' | 337 | ||||
Other Subsidiaries [Member] | ' | ' | ' | ' | ||||
Condensed Income Statements, Captions [Line Items] | ' | ' | ' | ' | ||||
Operating revenues | ' | 131 | ' | 379 | ||||
Operating expenses | ' | 36 | ' | 107 | ||||
General and administrative expenses | ' | 7 | ' | 19 | ||||
Depreciation, depletion and amortization | ' | 13 | ' | 37 | ||||
Taxes, other than income taxes | ' | 2 | ' | 9 | ||||
Total Operating Costs and Expenses | ' | 58 | ' | 172 | ||||
Operating Income | ' | 73 | ' | 207 | ||||
Gain (loss) on derivatives | ' | 2 | ' | 1 | ||||
Interest expense | ' | 2 | ' | 5 | ||||
Income Before Income Taxes | ' | 73 | ' | 203 | ||||
Provision (benefit) for income taxes | ' | 33 | ' | 82 | ||||
Net Income (Loss) | ' | 40 | ' | 121 | ||||
Comprehensive income | ' | $41 | ' | $120 | ||||
7.35% Senior Notes due 2017 [Member] | ' | ' | ' | ' | ||||
Condensed Income Statements, Captions [Line Items] | ' | ' | ' | ' | ||||
Stated interest rate | 7.35% | ' | 7.35% | ' | ||||
7.125% Senior Notes due 2017 [Member] | ' | ' | ' | ' | ||||
Condensed Income Statements, Captions [Line Items] | ' | ' | ' | ' | ||||
Stated interest rate | 7.13% | ' | 7.13% | ' | ||||
7.15% Senior Notes due 2018 [Member] | ' | ' | ' | ' | ||||
Condensed Income Statements, Captions [Line Items] | ' | ' | ' | ' | ||||
Stated interest rate | 7.15% | ' | 7.15% | ' | ||||
7.5% Senior Notes Due 2018 [Member] | ' | ' | ' | ' | ||||
Condensed Income Statements, Captions [Line Items] | ' | ' | ' | ' | ||||
Stated interest rate | 7.50% | ' | 7.50% | ' | ||||
4.10% Senior Notes Due 2022 [Member] | ' | ' | ' | ' | ||||
Condensed Income Statements, Captions [Line Items] | ' | ' | ' | ' | ||||
Stated interest rate | 4.10% | ' | 4.10% | ' | ||||
[1] | Interest expense and the provision for income taxes by segment are allocated as they are incurred at the corporate level. |
Condensed_Consolidating_Financ3
Condensed Consolidating Financial Information (Condensed Consolidating Statements of Cash Flows) (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Condensed Cash Flow Statements, Captions [Line Items] | ' | ' |
Net cash provided by (used in) operating activities | $1,774 | $1,378 |
Capital investments | -1,713 | -1,728 |
Proceeds from sale of property and equipment | 20 | 3 |
Transfers from restricted cash | ' | 9 |
Other | 6 | 4 |
Net cash used in investing activities | -1,687 | -1,712 |
Payments on current portion of long-term debt | -1 | -1 |
Payments on revolving long-term debt | -3,573 | -2,135 |
Borrowings under revolving long-term debt | 3,429 | 2,378 |
Other Items | ' | 57 |
Net cash provided by (used in) financing activities | -90 | 299 |
Increase (decrease) in cash and cash equivalents | -3 | -35 |
Cash and cash equivalents at beginning of year | 23 | 54 |
Cash and cash equivalents at end of period | 20 | 19 |
Parent [Member] | ' | ' |
Condensed Cash Flow Statements, Captions [Line Items] | ' | ' |
Net cash provided by (used in) operating activities | ' | -33 |
Capital investments | ' | -29 |
Transfers from restricted cash | ' | 9 |
Other | ' | -1 |
Net cash used in investing activities | ' | -21 |
Intercompany activities | ' | -275 |
Payments on current portion of long-term debt | ' | -1 |
Payments on revolving long-term debt | ' | -2,135 |
Borrowings under revolving long-term debt | ' | 2,378 |
Other Items | ' | 57 |
Net cash provided by (used in) financing activities | ' | 24 |
Increase (decrease) in cash and cash equivalents | ' | -30 |
Cash and cash equivalents at beginning of year | ' | 48 |
Cash and cash equivalents at end of period | ' | 18 |
Former Guarantors [Member] | ' | ' |
Condensed Cash Flow Statements, Captions [Line Items] | ' | ' |
Net cash provided by (used in) operating activities | ' | 1,062 |
Capital investments | ' | -1,531 |
Other | ' | -2 |
Net cash used in investing activities | ' | -1,533 |
Intercompany activities | ' | 465 |
Net cash provided by (used in) financing activities | ' | 465 |
Increase (decrease) in cash and cash equivalents | ' | -6 |
Cash and cash equivalents at beginning of year | ' | 6 |
Other Subsidiaries [Member] | ' | ' |
Condensed Cash Flow Statements, Captions [Line Items] | ' | ' |
Net cash provided by (used in) operating activities | ' | 349 |
Capital investments | ' | -168 |
Proceeds from sale of property and equipment | ' | 3 |
Other | ' | 7 |
Net cash used in investing activities | ' | -158 |
Intercompany activities | ' | -190 |
Net cash provided by (used in) financing activities | ' | -190 |
Increase (decrease) in cash and cash equivalents | ' | 1 |
Cash and cash equivalents at end of period | ' | $1 |
Subsequent_Events_Details
Subsequent Events (Details) (Subsequent Event [Member], Purchase And Sale Agreement With Chesapeake Energy Corporation [Member], USD $) | 0 Months Ended | |
Oct. 16, 2014 | Oct. 16, 2014 | |
acre | ||
Subsequent Event [Line Items] | ' | ' |
Net acreage to be acquired | ' | 413,000 |
Capitalized costs incurred | $5,375,000,000 | ' |
Preferential right to purchase, term | '30 days | ' |
Bridge Loan [Member] | ' | ' |
Subsequent Event [Line Items] | ' | ' |
Commitment from bank | ' | 5,000,000,000 |
Debt instrument, term | '364 days | ' |