Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 23, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
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 Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 541,156,741 | |
Trading Symbol | SWN |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating Revenues: | ||
Total operating revenues | $ 990 | $ 920 |
Operating Costs and Expenses: | ||
Operating expenses | 165 | 189 |
General and administrative expenses | 37 | 55 |
Restructuring charges | 3 | 0 |
Depreciation, depletion and amortization | 112 | 143 |
Taxes, other than income taxes | 19 | 23 |
Total operating costs and expense | 777 | 665 |
Operating Income | 213 | 255 |
Interest Expense: | ||
Interest on debt | 42 | 65 |
Other interest charges | 1 | 2 |
Interest capitalized | (29) | (28) |
Total Interest Expense | 14 | 39 |
Loss on Derivatives | (32) | (7) |
Other Income (Loss), Net | 1 | (1) |
Income Before Income Taxes | 168 | 208 |
Benefit from Income Taxes: | ||
Current | 0 | 0 |
Deferred | (426) | 0 |
Total Benefit from Income Taxes | (426) | 0 |
Net Income | 594 | 208 |
Participating securities - mandatory convertible preferred stock | 0 | 3 |
Net Income Attributable to Common Stock | $ 594 | $ 205 |
Earnings Per Common Share: | ||
Basic (in dollars per share) | $ 1.10 | $ 0.36 |
Diluted (in dollars per share) | $ 1.10 | $ 0.36 |
Weighted Average Common Shares Outstanding: | ||
Basic (in shares) | 539,721,751 | 571,297,804 |
Diluted (in shares) | 541,320,487 | 573,844,459 |
Gas sales | ||
Operating Revenues: | ||
Total operating revenues | $ 430 | $ 540 |
Oil sales | ||
Operating Revenues: | ||
Total operating revenues | 39 | 35 |
NGL sales | ||
Operating Revenues: | ||
Total operating revenues | 81 | 65 |
Marketing | ||
Operating Revenues: | ||
Total operating revenues | 438 | 253 |
Gas gathering | ||
Operating Revenues: | ||
Total operating revenues | 0 | 24 |
Other | ||
Operating Revenues: | ||
Total operating revenues | 2 | 3 |
Marketing purchases | ||
Operating Costs and Expenses: | ||
Marketing purchases | $ 441 | $ 255 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 594 | $ 208 | |
Change in value of pension and other postretirement liabilities: | |||
Amortization of prior service cost and net gain included in net periodic pension cost | [1] | 0 | 0 |
Comprehensive income | $ 594 | $ 208 | |
[1] | For the three months ended March 31, 2018, deferred tax activity incurred in other comprehensive income was offset by a valuation allowance. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 366 | $ 201 |
Accounts receivable, net | 390 | 581 |
Derivative assets | 87 | 130 |
Other current assets | 44 | 44 |
Total current assets | 887 | 956 |
Natural gas and oil properties, using the full cost method, including $1,673 million as of March 31, 2019 and $1,755 million as of December 31, 2018 excluded from amortization | 24,486 | 24,180 |
Gathering systems | 38 | 38 |
Other | 509 | 487 |
Less: Accumulated depreciation, depletion and amortization | (20,162) | (20,049) |
Total property and equipment, net | 4,871 | 4,656 |
Deferred tax assets | 426 | 0 |
Other long-term assets | 262 | 185 |
TOTAL ASSETS | 6,446 | 5,797 |
Current liabilities: | ||
Current portion of long-term debt | 52 | 0 |
Accounts payable | 626 | 609 |
Taxes payable | 62 | 58 |
Interest payable | 58 | 52 |
Derivative liabilities | 50 | 79 |
Other current liabilities | 95 | 48 |
Total current liabilities | 943 | 846 |
Long-term debt | 2,267 | 2,318 |
Pension and other postretirement liabilities | 43 | 46 |
Other long-term liabilities | 256 | 225 |
Total long-term liabilities | 2,566 | 2,589 |
Commitments and contingencies (Note 13) | ||
Equity: | ||
Common stock, $0.01 par value; 1,250,000,000 shares authorized; issued 585,548,726 shares as of March 31, 2019 and 585,407,107 as of December 31, 2018 | 6 | 6 |
Additional paid-in capital | 4,717 | 4,715 |
Accumulated deficit | (1,548) | (2,142) |
Accumulated other comprehensive loss | (36) | (36) |
Common stock in treasury, 44,353,224 shares as of March 31, 2019 and 39,092,537 shares as of December 31, 2018 | (202) | (181) |
Total equity | 2,937 | 2,362 |
TOTAL LIABILITIES AND EQUITY | $ 6,446 | $ 5,797 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Natural gas and oil properties, using the full cost method, costs excluded from amortization | $ 1,673 | $ 1,755 |
Common stock, par value (in dollars per shares) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,250,000,000 | 1,250,000,000 |
Common stock, shares issued (in shares) | 585,548,726 | 585,407,107 |
Treasury stock, shares (in shares) | 44,353,224 | 39,092,537 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash Flows From Operating Activities: | ||
Net income | $ 594 | $ 208 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 112 | 143 |
Amortization of debt issuance costs | 1 | 2 |
Deferred income taxes | (426) | 0 |
(Gain) loss on derivatives, unsettled | 22 | (2) |
Stock-based compensation | 2 | 4 |
Other | 1 | 3 |
Change in assets and liabilities: | ||
Accounts receivable | 189 | 46 |
Accounts payable | (48) | (17) |
Taxes payable | 4 | (12) |
Interest payable | 2 | (4) |
Other assets and liabilities | (11) | (7) |
Net cash provided by operating activities | 442 | 364 |
Cash Flows From Investing Activities: | ||
Capital investments | (258) | (302) |
Proceeds from sale of property and equipment | 0 | 6 |
Other | 0 | 2 |
Net cash used in investing activities | (258) | (294) |
Cash Flows From Financing Activities: | ||
Change in bank drafts outstanding | 3 | 0 |
Purchase of treasury stock | (21) | 0 |
Preferred stock dividend | 0 | (27) |
Cash paid for tax withholding | (1) | (1) |
Net cash used in financing activities | (19) | (28) |
Increase in cash and cash equivalents | 165 | 42 |
Cash and cash equivalents at beginning of year | 201 | 916 |
Cash and cash equivalents at end of period | $ 366 | $ 958 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Common Stock | Preferred Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Common Stock in Treasury |
Balance beginning at Dec. 31, 2017 | $ 1,979 | $ 5 | $ 4,698 | $ (2,679) | $ (44) | $ (1) | |
Balance (in shares) at Dec. 31, 2017 | 512,134,311 | 1,725,000 | 31,269,000,000 | ||||
Comprehensive income: | |||||||
Net income | 208 | 208 | |||||
Other comprehensive income | 0 | ||||||
Comprehensive income | 208 | ||||||
Stock-based compensation | 7 | 7 | |||||
Conversion of preferred stock (in shares) | 74,998,614 | (1,725,000) | |||||
Conversion of preferred stock | $ 1 | (1) | |||||
Issuance of restricted stock (in shares) | 5,076 | ||||||
Cancellation of restricted stock (in shares) | (160,168) | ||||||
Performance units vested (in shares) | 214,866 | ||||||
Tax withholding - stock compensation (in shares) | (338,808) | ||||||
Tax withholding - stock compensation | (1) | (1) | |||||
Balance (in shares) at Mar. 31, 2018 | 586,853,891 | 0 | 31,269,000,000 | ||||
Balance ending at Mar. 31, 2018 | 2,193 | $ 6 | 4,703 | (2,471) | (44) | $ (1) | |
Balance beginning at Dec. 31, 2017 | 1,979 | $ 5 | 4,698 | (2,679) | (44) | $ (1) | |
Balance (in shares) at Dec. 31, 2017 | 512,134,311 | 1,725,000 | 31,269,000,000 | ||||
Balance (in shares) at Dec. 31, 2018 | 585,407,107 | 39,092,537 | |||||
Balance ending at Dec. 31, 2018 | 2,362 | $ 6 | 4,715 | (2,142) | (36) | $ (181) | |
Comprehensive income: | |||||||
Net income | 594 | 594 | |||||
Other comprehensive income | 0 | 0 | |||||
Comprehensive income | 594 | ||||||
Stock-based compensation | $ 3 | 3 | |||||
Issuance of restricted stock (in shares) | 8,798 | ||||||
Cancellation of restricted stock (in shares) | (128,324) | ||||||
Treasury stock (in shares) | 5,260,687 | 5,260,687 | |||||
Treasury stock | $ (21) | $ (21) | |||||
Performance units vested (in shares) | 535,802 | ||||||
Tax withholding - stock compensation (in shares) | (274,657) | ||||||
Tax withholding - stock compensation | (1) | (1) | |||||
Balance (in shares) at Mar. 31, 2019 | 585,548,726 | 44,353,224 | |||||
Balance ending at Mar. 31, 2019 | $ 2,937 | $ 6 | $ 4,717 | $ (1,548) | $ (36) | $ (202) |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION Southwestern Energy Company (including its subsidiaries, collectively “Southwestern” or the “Company”) is an independent energy company engaged in natural gas, oil and NGL exploration, development and production (“E&P”). The Company is also focused on creating and capturing additional value through its marketing business (“Midstream”). Southwestern conducts most of its business through subsidiaries and operates principally in two segments: E&P and Midstream. The Company also has drilling rigs located in Pennsylvania and West Virginia and provides oilfield products and services, principally serving its E&P operations. The Company’s historical financial and operating results include its Fayetteville Shale E&P and related midstream gathering businesses which were sold in early December 2018 (the “Fayetteville Shale sale”). The sale is discussed in further detail in Note 2 . E&P. Southwestern’s primary business is the exploration for and production of natural gas, oil and NGLs, with ongoing operations focused on the development of unconventional natural gas and oil reservoirs located in Pennsylvania and West Virginia. The Company’s operations in northeast Pennsylvania, herein referred to as “Northeast Appalachia,” are primarily focused on the unconventional natural gas reservoir known as the Marcellus Shale. Operations in West Virginia and southwest Pennsylvania, herein referred to as “Southwest Appalachia,” are focused on the Marcellus Shale, the Utica and the Upper Devonian unconventional natural gas and oil reservoirs. Collectively, Southwestern refers to its properties located in Pennsylvania and West Virginia as the “Appalachian Basin.” Midstream. Southwestern’s marketing activities capture opportunities that arise through the marketing and transportation of natural gas, oil and NGLs produced in its E&P operations. The accompanying 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. The Company believes the disclosures made are adequate to make the information presented not misleading. The 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 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, 2018 (“2018 Annual Report”). |
Divestitures
Divestitures | 3 Months Ended |
Mar. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | DIVESTITURES On August 30, 2018 , the Company entered into an agreement with Flywheel Energy Operating, LLC to sell 100% of the equity in the Company’s subsidiaries that owned and operated its Fayetteville Shale E&P and related midstream gathering assets for $1,865 million in cash, subject to customary closing adjustments, with an economic effective date of July 1, 2018 . On December 3, 2018 , the Company closed on the Fayetteville Shale sale and received approximately $1,650 million, which included preliminary purchase price adjustments of approximately $215 million primarily related to the net cash flows from the economic effective date to the closing date. The Company retained certain contractual commitments related to firm transportation, with the buyer obligated to pay the transportation provider directly for these charges. As of March 31, 2019 , approximately $188 million of these contractual commitments remain of which the Company will reimburse the buyer for certain of these potential obligations up to approximately $94 million through 2020 depending on the buyer’s actual use. At March 31, 2019 , the Company has recorded a $78 million liability for the estimated future payments. From the proceeds received, $914 million was used to repurchase $900 million of the Company’s outstanding senior notes, including premiums and $9 million in accrued interest paid in December 2018 . In addition, $201 million, including approximately $1 million in commissions, was used to repurchase approximately 44 million shares of the Company’s outstanding common stock, including $21 million during the three months ended March 31, 2019 |
Restructuring Charges
Restructuring Charges | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | RESTRUCTURING CHARGES In December 2018 , the Company closed on the sale of the equity in certain of its subsidiaries that owned and operated its Fayetteville Shale E&P and related midstream gathering assets in Arkansas. As part of the transaction, most employees associated with those assets became employees of the buyer although the employment of some was, or will be, terminated. All affected employees were offered a severance package, which included a one-time cash payment depending on length of service and, if applicable, the current value of a portion of equity awards that were forfeited. As of March 31, 2019 , a liability of $2 million for severance payments has been accrued for the remaining Fayetteville Shale sale-related employment terminations in 2019 . The Company has also incurred charges related to office consolidation and has recognized those costs as restructuring charges. The following table presents a summary of the restructuring charges included in Operating Income for the three months ended March 31, 2019 : For the three months ended (in millions) March 31, 2019 Severance (including payroll taxes) $ 2 Office consolidation 1 Total restructuring charges (1) $ 3 (1) Total restructuring charges were $3 million for the Company’s E&P segment for the three months ended March 31, 2019 . The following table presents a summary of the liabilities associated with the Company’s restructuring activities at March 31, 2019 which are reflected in accounts payable on the consolidated balance sheet: For the three months ended (in millions) March 31, 2019 Liability at December 31, 2018 $ 5 Additions 3 Distributions (6 ) Liability at March 31, 2019 $ 2 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | LEASES In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) (“Update 2016-02”), which seeks to increase transparency and comparability among organizations by, among other things, recognizing lease assets and lease liabilities on the balance sheet for leases classified as operating leases under previous GAAP and disclosing key information about leasing arrangements. The codification was amended through additional ASUs. For public entities, Update 2016-02 became effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted ASC 842 with an effective date of January 1, 2019 using the modified retrospective approach for all leases that existed at the date of initial application. The Company elected to apply the transition as of the beginning of the period of adoption. For leases that existed at the period of adoption on January 1, 2019, the incremental borrowing rate as of the application date was used to calculate the present value of remaining lease payments. The standard provides optional practical expedients to ease the burden of transition. The Company has adopted the following practical expedients through implementation: • an election not to apply the recognition requirements in the leases standard to short-term leases and recognize lease payments in the consolidated statement of operations (a lease that at commencement date has an initial term of 12 months or less and does not contain a purchase option that the Company is reasonably certain to exercise); • a package of practical expedients to not reassess: whether a contract is or contains a lease, lease classification and initial direct costs; • a practical expedient that permits combining lease and non-lease components in a contract and accounting for the combination as a lease (elected by asset class); • a practical expedient to not reassess certain land easements in existence prior to January 1, 2019; and • an election to adopt the modified retrospective approach for all leases existing at or entered into after the initial date of adoption which does not require a restatement of prior period. No cumulative-effect adjustment to retained earnings was required as a result of the modified retrospective approach. Upon adoption of ASC 842, the Company recognized a discounted right of use asset and corresponding lease liability with opening balances of approximately $105 million as of January 1, 2019 . The adoption of the standard did not materially change the Company’s consolidated statement of operations or its consolidated statement of cash flows. The Company determines if a contract contains a lease at inception. A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment (an identified asset) for a period of time in exchange for consideration. A right of use asset and lease liability are recognized on the balance sheet at commencement at an amount based on the present value of the remaining lease payments over the lease term. As the implicit rate of the lease is not always readily determinable, the Company uses the incremental borrowing rate to calculate the present value of the lease payments based on information available at commencement date. Operating right of use assets are included in other long-term assets while operating lease liabilities are included in other current and other long-term liabilities on the consolidated balance sheet. The Company does not have any financing lease type of arrangements as of March 31, 2019. By policy election, leases with an initial term of twelve months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis, and variable lease payments are recognized in the period as incurred. Variable lease costs were immaterial through the first quarter ended March 31, 2019. Certain leases contain both lease and non-lease components. The Company has chosen to account for most of these leases as a single lease component instead of separating. However, for compression service leases and fleet vehicle leases, the lease and non-lease components are accounted for separately. The Company leases drilling rigs, pressure pumping equipment, vehicles, office space, certain water transportation lines, an aircraft and other equipment under non-cancelable operating leases expiring through 2032. Certain lease agreements include options to renew the lease, early terminate the lease or purchase the underlying asset(s). The Company determines the lease term at the lease commencement date as the non-cancelable period of the lease, including options to extend or terminate the lease when such an option is reasonably certain to be exercised. The Company’s water transportation lines are the only leases with renewal options that are reasonably certain to be exercised. These renewal options are reflected in the right of use asset and lease liability balances. The Company’s only material residual value guarantee relates to its headquarters building, which would be due only if, at the end of the lease term, the building is either purchased by the Company or marketed to a third party where the purchase price is less than the residual value guarantee. The Company does not consider the residual value guarantee to be probable of being owed; thus, it is not currently included within the minimum lease payments. The Company’s existing operating leases do not contain any material restrictive covenants. As of March 31, 2019, the Company has operating leases of less than $ 1.5 million, primarily for compressor leases that have not yet commenced. These operating leases are planned to commence during 2019 with lease terms expiring through 2022. The components of lease costs are shown below: For the three months ended March 31, 2019 (in millions) Operating lease cost $ 11 Short-term lease cost 12 Variable lease cost — Total lease cost $ 23 Supplemental cash flow information related to leases is set forth below: For the three months ended March 31, 2019 (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 11 Right-of use assets obtained in exchange for new operating liabilities: Operating leases $ 3 Supplemental balance sheet information related to leases is as follows: March 31, 2019 Right-of-use asset balance: (in millions) Operating leases $ 100 Lease liability balance: (in millions) Short-term operating leases $ 38 Long-term operating leases 62 Total operating leases $ 100 Weighted average remaining lease term: (years) Operating leases 4.1 Weighted average discount rate: Operating leases 5.86 % Maturity analysis of operating lease liabilities: (in millions) March 31, 2019 2019 $ 33 2020 32 2021 18 2022 9 2023 8 2024 4 Thereafter 9 Total undiscounted lease liability $ 113 Imputed interest (13 ) Total discounted lease liability $ 100 (in millions) December 31, 2018 2019 $ 38 2020 28 2021 14 2022 6 2023 5 Thereafter 4 Total minimum payments required $ 95 |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | (5) REVENUE RECOGNITION Revenues from Contracts with Customers Natural gas and liquids. Natural gas, oil and natural gas liquid (“NGL”) sales are recognized when control of the product is transferred to the customer at a designated delivery point. The pricing provisions of the Company’s contracts are primarily tied to a market index with certain adjustments based on factors such as delivery, quality of the product and prevailing supply and demand conditions in the geographic areas in which the Company operates. Under the Company’s sales contracts, the delivery of each unit of natural gas, oil and NGLs represents a separate performance obligation, and revenue is recognized at the point in time when the performance obligations are fulfilled. There is no significant financing component to the Company’s revenues as payment terms are typically within 30 to 60 days of control transfer. Furthermore, consideration from a customer corresponds directly with the value to the customer of the Company’s performance completed to date. As a result, the Company recognizes revenue in the amount to which the Company has a right to invoice and has not disclosed information regarding its remaining performance obligations. The Company records revenue from its natural gas and liquids production in the amount of its net revenue interest in sales from its properties. Accordingly, natural gas and liquid sales are not recognized for deliveries in excess of the Company’s net revenue interest, while natural gas and liquid sales are recognized for any under-delivered volumes. Production imbalances are recorded as receivables and payables and not contract assets or contract liabilities as the imbalances are between the Company and other working interest owners, not the end customer. Marketing. The Company, through its marketing affiliate, generally markets natural gas, oil and NGLs for its affiliated E&P companies as well as other joint interest owners who choose to market with Southwestern. In addition, the Company markets some products purchased from third parties. Marketing revenues for natural gas, oil and NGL sales are recognized when control of the product is transferred to the customer at a designated delivery point. The pricing provisions of the Company’s contracts are primarily tied to a market index with certain adjustments based on factors such as delivery, quality of the product and prevailing supply and demand conditions. Under the Company’s marketing contracts, the delivery of each unit of natural gas, oil and NGLs represents a separate performance obligation, and revenue is recognized at the point in time when the performance obligations are fulfilled. Customers are invoiced and revenues are recorded each month as natural gas, oil and NGLs are delivered, and payment terms are typically within 30 to 60 days of control transfer. Furthermore, consideration from a customer corresponds directly with the value to the customer of the Company’s performance completed to date. As a result, the Company recognizes revenue in the amount to which the Company has a right to invoice and has not disclosed information regarding its remaining performance obligations. Gas gathering. Prior to its sale in December 2018 as part of the Fayetteville Shale sale, the Company, through its gathering affiliate, gathered natural gas pursuant to a variety of contracts with customers, including an affiliated E&P company. The performance obligations for gas gathering services included delivery of each unit of natural gas to the designated delivery point, which may include treating of certain natural gas units to meet interstate pipeline specifications. Revenue was recognized at the point in time when performance obligations were fulfilled. Under the Company’s gathering contracts, customers were invoiced and revenue was recognized each month based on the volume of natural gas transported and treated at a contractually agreed upon price per unit. Payment terms were typically within 30 to 60 days of completion of the performance obligations. Furthermore, consideration from a customer corresponded directly with the value to the customer of the Company’s performance completed to date. As a result, the Company recognized revenue in the amount to which the Company had a right to invoice and had not disclosed information regarding its remaining performance obligations. Any imbalances were settled on a monthly basis by cashing-out with the respective shipper. Accordingly, there were no contract assets or contract liabilities related to the Company’s gas gathering revenues. Disaggregation of Revenues The Company presents a disaggregation of E&P revenues by product on the consolidated statements of operations net of intersegment revenues. The following table reconciles operating revenues as presented on the consolidated statements of operations to the operating revenues by segment: (in millions) E&P Midstream Intersegment Revenues Total Three months ended March 31, 2019 Gas sales $ 421 $ — $ 9 $ 430 Oil sales 39 — — 39 NGL sales 81 — — 81 Marketing — 940 (502 ) 438 Other (1) 1 1 — 2 Total $ 542 $ 941 $ (493 ) $ 990 Three months ended March 31, 2018 Gas sales $ 535 $ — $ 5 $ 540 Oil sales 34 — 1 35 NGL sales 65 — — 65 Marketing — 829 (576 ) 253 Gas gathering (2) — 67 (43 ) 24 Other (1) 3 — — 3 Total $ 637 $ 896 $ (613 ) $ 920 (1) Other E&P revenues consists primarily of water sales to third-party operators, and other Midstream revenues consists primarily of sales of gas from storage. (2) The Company’s gas gathering assets were divested in December 2018 as part of the Fayetteville Shale sale. Associated E&P revenues are also disaggregated for analysis on a geographic basis by the core areas in which the Company operates, which are in Pennsylvania and West Virginia. In December 2018, the Company sold 100% of its Fayetteville Shale assets. For the three months ended (in millions) 2019 2018 Northeast Appalachia $ 348 $ 327 Southwest Appalachia 193 156 Fayetteville Shale — 152 Other 1 2 Total $ 542 $ 637 Receivables from Contracts with Customers The following table reconciles the Company’s receivables from contracts with customers to consolidated accounts receivable as presented on the consolidated balance sheet: (in millions) March 31, 2019 December 31, 2018 Receivables from contracts with customers $ 297 $ 494 Other accounts receivable 93 87 Total accounts receivable $ 390 $ 581 Amounts recognized against the Company’s allowance for doubtful accounts related to receivables arising from contracts with customers were immaterial for the three months ended March 31, 2019 and 2018 . The Company has no |
Cash and Cash Equivalents
Cash and Cash Equivalents | 3 Months Ended |
Mar. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | CASH AND CASH EQUIVALENTS The following table presents a summary of cash and cash equivalents as of March 31, 2019 and December 31, 2018 : (in millions) March 31, 2019 December 31, 2018 Cash $ 89 $ 32 Marketable securities (1) 277 169 Total $ 366 $ 201 (1) |
Natural Gas and Oil Properties
Natural Gas and Oil Properties | 3 Months Ended |
Mar. 31, 2019 | |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | |
Natural Gas and Oil Properties | 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 properties. 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 are subject to a ceiling test that limits such pooled costs, net of applicable deferred taxes, to the aggregate of the present value of future net revenues attributable to proved natural gas, oil and NGL reserves discounted at 10% (standardized measure). 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, oil and NGL prices may subsequently increase the ceiling. Companies using the full cost method are required to use the average quoted price from the first day of each month from the previous 12 months , including the impact of derivatives designated for hedge accounting, 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 $3.07 per MMBtu, West Texas Intermediate oil of $63.00 per barrel and NGLs of $17.65 per barrel, adjusted for differentials, the Company’s net book value of its United States natural gas and oil properties did not exceed the ceiling amount at March 31, 2019 . The Company had no derivative positions that were designated for hedge accounting as of March 31, 2019 . Decreases in market prices as well as changes in production rates, levels of reserves, evaluation of costs excluded from amortization, future development costs and production costs 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 $3.00 per MMBtu, West Texas Intermediate oil of $49.94 per barrel and NGLs of $14.90 per barrel, adjusted for differentials, the Company’s net book value of its United States natural gas and oil properties did not exceed the ceiling amount at March 31, 2018 . The Company had no derivative positions that were designated for hedge accounting as of March 31, 2018 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Basic earnings per common share is computed by dividing net income attributable to common stock by the weighted average number of common shares outstanding during the reportable period. The diluted earnings per share calculation adds to the weighted average number of common shares outstanding: the incremental shares that would have been outstanding assuming the exercise of dilutive stock options, the vesting of unvested restricted shares of common stock, performance units and the assumed conversion of mandatory convertible preferred stock. An antidilutive impact is an increase in earnings per share or a reduction in net loss per share resulting from the conversion, exercise or contingent issuance of certain securities. In January 2015, the Company issued 34,500,000 depositary shares that entitled the holder to a proportional fractional interest in the rights and preferences of the mandatory convertible preferred stock, including conversion, dividend, liquidation and voting rights. The mandatory convertible preferred stock had the non-forfeitable right to participate on an as-converted basis at the conversion rate then in effect in any common stock dividends declared and, therefore, was considered a participating security. Accordingly, it has been included in the computation of basic and diluted earnings per share, pursuant to the two-class method. In the calculation of basic earnings per share attributable to common shareholders, earnings are allocated to participating securities based on actual dividend distributions received plus a proportionate share of undistributed net income attributable to common shareholders, if any, after recognizing distributed earnings. The Company’s participating securities do not participate in undistributed net losses because they are not contractually obligated to do so. On January 12, 2018 , all outstanding shares of mandatory convertible preferred stock converted to 74,998,614 shares of the Company’s common stock. During the second half of 2018 , the Company repurchased 39,061,269 shares of its outstanding common stock for approximately $180 million at an average price of $4.63 per share. In the first quarter of 2019, the Company completed its share repurchase program by purchasing 5,260,687 shares of its outstanding common stock for approximately $ 21 million at an average price of $ 3.84 per share. The following table presents the computation of earnings per share for the three months ended March 31, 2019 and 2018 : For the three months ended (in millions, except share/per share amounts) 2019 2018 Net income $ 594 $ 208 Participating securities - mandatory convertible preferred stock — 3 Net income attributable to common stock $ 594 $ 205 Number of common shares: Weighted average outstanding 539,721,751 571,297,804 Issued upon assumed exercise of outstanding stock options — — Effect of issuance of non-vested restricted common stock 665,435 914,096 Effect of issuance of non-vested performance units 933,301 1,632,559 Weighted average and potential dilutive outstanding 541,320,487 573,844,459 Earnings per common share: Basic $ 1.10 $ 0.36 Diluted $ 1.10 $ 0.36 The following table presents the common stock shares equivalent excluded from the calculation of diluted earnings per share for the three months ended March 31, 2019 and 2018 , as they would have had an antidilutive effect: For the three months ended 2019 2018 Unexercised stock options 5,128,640 — Unvested share-based payment 1,881,355 5,292,454 Performance units 260,201 574,944 Mandatory convertible preferred stock — 9,999,815 Total 7,270,196 15,867,213 |
Derivatives and Risk Management
Derivatives and Risk Management | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Risk Management | DERIVATIVES AND RISK MANAGEMENT The Company is exposed to volatility in market prices and basis differentials for natural gas, oil and NGLs which impacts the predictability of its cash flows related to the sale of those commodities. These risks are managed by the Company’s use of certain derivative financial instruments. As of March 31, 2019 , the Company’s derivative financial instruments consisted of fixed price swaps, two-way costless collars, three-way costless collars, basis swaps, call options and interest rate swaps. A description of the Company’s derivative financial instruments is provided below: Fixed price swaps If the Company sells a fixed price swap, the Company receives a fixed price for the contract and pays a floating market price to the counterparty. If the Company purchases a fixed price swap, the Company receives a floating market price for the contract and pays a fixed price to the counterparty. Two-way costless collars Arrangements that contain a fixed floor price (purchased put option) and a fixed ceiling price (sold call option) based on an index price which, in aggregate, have no net cost. At the contract settlement date, (1) if the index price is higher than the ceiling price, the Company pays the counterparty the difference between the index price and ceiling price, (2) if the index price is between the floor and ceiling prices, no payments are due from either party, and (3) if the index price is below the floor price, the Company will receive the difference between the floor price and the index price. Three-way costless collars Arrangements that contain a purchased put option, a sold call option and a sold put option based on an index price which, in aggregate, have no net cost. At the contract settlement date, (1) if the index price is higher than the sold call strike price, the Company pays the counterparty the difference between the index price and sold call strike price, (2) if the index price is between the purchased put strike price and the sold call strike price, no payments are due from either party, (3) if the index price is between the sold put strike price and the purchased put strike price, the Company will receive the difference between the purchased put strike price and the index price, and (4) if the index price is below the sold put strike price, the Company will receive the difference between the purchased put strike price and the sold put strike price. Basis swaps Arrangements that guarantee a price differential for natural gas from a specified delivery point. If the Company sells a basis swap, 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. If the Company purchases a basis swap, the Company pays the counterparty if the price differential is greater than the stated terms of the contract and receives a payment from the counterparty if the price differential is less than the stated terms of the contract. Call options The Company purchases and sells call options in exchange for a premium. If the Company purchases a call option, the Company receives from the counterparty the excess (if any) of the market price over the strike price of the call option at the time of settlement, but if the market price is below the call’s strike price, no payment is due from either party. If the Company sells a call option, the Company pays the counterparty the excess (if any) of the market price over the strike price of the call option at the time of settlement, but if the market price is below the call’s strike price, 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. The Company chooses counterparties for its derivative instruments that it believes are creditworthy at the time the transactions are entered into, and the Company actively monitors the credit ratings and credit default swap rates of these counterparties where applicable. However, there can be no assurance that a counterparty will be able to meet its obligations to the Company. The Company presents its derivative positions on a gross basis and does not net the asset and liability positions. As part of the Fayetteville Shale sale, the Company entered into certain natural gas derivative positions which were subsequently novated to the buyer in conjunction with finalization of the sale. The derivatives that were novated to the buyer are not included in the tables below. The following tables provide information about the Company’s financial instruments that are sensitive to changes in commodity prices and that are used to protect the Company’s exposure. None of the financial instruments below are designated for hedge accounting treatment. The tables present the notional amount, the weighted average contract prices and the fair value by expected maturity dates as of March 31, 2019 : Financial Protection on Production Weighted Average Price per MMBtu Volume (Bcf) Swaps Sold Puts Purchased Puts Sold Calls Basis Differential Fair Value at March 31, 2019 (in millions) Natural Gas 2019 Fixed price swaps 195 $ 2.90 $ — $ — $ — $ — $ 23 Two-way costless collars 44 — — 2.78 2.92 — 3 Three-way costless collars 101 — 2.46 2.88 3.22 — 13 Total 340 $ 39 2020 Fixed price swaps 24 $ 2.88 $ — $ — $ — $ — $ 3 Three-way costless collars 122 — 2.35 2.68 2.96 — (2 ) Total 146 $ 1 2021 Three-way costless collars 37 $ — $ 2.35 $ 2.60 $ 2.93 $ — $ (2 ) Basis Swaps 2019 85 $ — $ — $ — $ — $ (0.50 ) $ (13 ) 2020 59 — — — — (0.44 ) (8 ) Total 144 $ (21 ) Volume (MBbls) Weighted Average Strike Price per Bbl Fair Value at March 31, 2019 (in millions) Swaps Sold Puts Purchased Puts Sold Calls Oil 2019 Fixed price swaps (1) 921 $ 62.13 $ — $ — $ — $ 1 Two-way costless collars 248 — — 65.00 72.30 1 Three-way costless collars 412 — 45.00 55.00 63.67 — Total 1,581 $ 2 2020 Fixed price swaps 366 $ 65.68 $ — $ — $ — $ 3 Two-way costless collars 366 — — 60.00 69.80 2 Total 732 $ 5 Propane 2019 Fixed price swaps 2,028 $ 31.25 $ — $ — $ — $ 7 2020 Fixed price swaps 824 $ 27.35 $ — $ — $ — $ — Two-way costless collars 366 — — 25.20 29.40 — Total 1,190 $ — Ethane 2019 Fixed price swaps 2,778 $ 13.90 $ — $ — $ — $ 10 2020 Fixed price swaps 732 $ 13.49 $ — $ — $ — $ 2 (1) Includes 206 MBbls of purchased fixed price oil swaps hedged at $69.10 per barrel with a fair value of ($2) million and 1,127 MBbls of sold fixed price oil swaps hedged at $63.41 with a fair value of $3 million . Other Derivative Contracts Volume (Bcf) Weighted Average Strike Price per MMBtu Fair Value at March 31, 2019 (in millions) Purchased Call Options – Natural Gas 2019 30 $ 3.50 $ — 2020 68 3.63 3 2021 57 3.52 3 Total 155 $ 6 Sold Call Options – Natural Gas 2019 39 $ 3.50 $ (1 ) 2020 137 3.39 (10 ) 2021 114 3.33 (9 ) Total 290 $ (20 ) Volume (Bcf) Weighted Average Strike Price per MMBtu Basis Differential per MMBtu Fair Value at March 31, 2019 ($ in millions) Storage (1) 2019 Purchased fixed price swaps 1 $ 2.87 $ — $ — Purchased basis swaps 1 — (0.53 ) — Total $ — 2020 Fixed price swap 1 $ 3.14 $ — $ — (1) The Company has entered into certain derivatives to protect the value of volumes of natural gas injected into a storage facility that will be withdrawn at a later date. At March 31, 2019, the net fair value of the Company’s financial instruments related to commodities was a $30 million asset. The net fair value of the Company’s interest rate swaps was a $1 million asset as of March 31, 2019. As of March 31, 2019, the Company had no positions designated for hedge accounting treatment. Gains and losses on derivatives that are not designated for hedge accounting treatment, or do not meet hedge accounting requirements, are recorded as a component of gain (loss) on derivatives on the consolidated statements of operations. Accordingly, the gain (loss) on derivatives component of the statement of operations reflects the gain and losses on both settled and unsettled derivatives. The Company calculates gains and losses on settled derivatives as the summation of gains and losses on positions which have settled within the reporting period. Only the settled gains and losses are included in the Company’s realized commodity price calculations. The Company is a party to interest rate swaps that were entered into to mitigate the Company’s exposure to volatility in interest rates. The interest rate swaps have a notional amount of $170 million and expire in June 2020 . The Company did not designate the interest rate swaps for hedge accounting treatment. Changes in the fair value of the interest rate swaps are included in gain (loss) on derivatives on the consolidated statements of operations. The balance sheet classification of the assets and liabilities related to derivative financial instruments (none of which are designated for hedge accounting treatment) is summarized below as of March 31, 2019 and December 31, 2018 : Derivative Assets Balance Sheet Classification Fair Value (in millions) March 31, 2019 December 31, 2018 Derivatives not designated as hedging instruments: Fixed price swaps – natural gas Derivative assets $ 25 $ 32 Fixed price swaps – oil Derivative assets 5 13 Fixed price swaps – propane Derivative assets 7 11 Fixed price swaps – ethane Derivative assets 11 7 Two-way costless collars – natural gas Derivative assets 5 11 Two-way costless collars – oil Derivative assets 2 6 Three-way costless collars – natural gas Derivative assets 25 41 Three-way costless collars – oil Derivative assets 1 — Basis swaps – natural gas Derivative assets 2 8 Purchased call options – natural gas Derivative assets 3 (1) — Interest rate swaps Derivative assets 1 1 Fixed price swaps – natural gas Other long-term assets 4 6 Fixed price swaps – oil Other long-term assets 2 6 Fixed price swaps – ethane Other long-term assets 1 1 Two-way costless collars – oil Other long-term assets 2 5 Three-way costless collars – natural gas Other long-term assets 28 34 Basis swaps – natural gas Other long-term assets — 3 Purchased call options – natural gas Other long-term assets 4 6 Total derivative assets $ 128 $ 191 Derivative Liabilities Balance Sheet Classification Fair Value (in millions) March 31, 2019 December 31, 2018 Derivatives not designated as hedging instruments: Purchased fixed price swap – oil Derivative liabilities $ 2 $ 6 Fixed price swaps – natural gas Derivative liabilities 3 9 Fixed price swaps – oil Derivative liabilities 1 — Fixed price swaps – ethane Derivative liabilities — 3 Two-way costless collars – natural gas Derivative liabilities 2 7 Two-way costless collars – oil Derivative liabilities 1 — Three-way costless collars – natural gas Derivative liabilities 17 33 Three-way costless collars – oil Derivative liabilities 1 — Basis swaps – natural gas Derivative liabilities 16 18 Sold call options – natural gas Derivative liabilities 7 3 Fixed price swaps – natural gas Other long-term liabilities — 1 Two-way costless collars – oil Other long-term liabilities — 1 Three-way costless collars – natural gas Other long-term liabilities 27 35 Basis swap – natural gas Other long-term liabilities 7 4 Sold call options – natural gas Other long-term liabilities 13 19 Total derivative liabilities $ 97 $ 139 (1) Includes $1 million in premiums paid related to certain natural gas purchased call options recognized as a component of derivative assets within current assets on the consolidated balance sheet at March 31, 2019. As certain natural gas purchased call options settle, the premium will be amortized and recognized as a component of gain (loss) on derivatives on the consolidated statements of operations. The following tables summarize the before-tax effect of the Company’s derivative instruments on the consolidated statements of operations for the three months ended March 31, 2019 and 2018 : Unsettled Gain (Loss) on Derivatives Recognized in Earnings Derivative Instrument Consolidated Statement of Operations Classification of Gain (Loss) on Derivatives, Unsettled For the three months ended March 31, 2019 2018 (in millions) Purchased fixed price swaps – oil Gain (Loss) on Derivatives $ 4 $ — Fixed price swaps – natural gas Gain (Loss) on Derivatives (2 ) (3 ) Fixed price swaps – oil Gain (Loss) on Derivatives (13 ) — Fixed price swaps – propane Gain (Loss) on Derivatives (4 ) 3 Fixed price swaps – ethane Gain (Loss) on Derivatives 7 — Two-way costless collars – natural gas Gain (Loss) on Derivatives (1 ) 3 Two-way costless collars – oil Gain (Loss) on Derivatives (7 ) — Three-way costless collars – natural gas Gain (Loss) on Derivatives 2 (5 ) Basis swaps – natural gas Gain (Loss) on Derivatives (10 ) 20 Purchased call options – natural gas Gain (Loss) on Derivatives — 16 Sold call options – natural gas Gain (Loss) on Derivatives 2 (34 ) Interest rate swaps Gain (Loss) on Derivatives — 2 Total gain (loss) on unsettled derivatives $ (22 ) $ 2 Settled Gain (Loss) on Derivatives Recognized in Earnings (1) Derivative Instrument Consolidated Statement of Operations Classification of Gain (Loss) on Derivatives, Settled For the three months ended March 31, 2019 2018 (in millions) Purchased fixed price swaps – oil Gain (Loss) on Derivatives $ (1 ) $ — Sold fixed price swaps – natural gas Gain (Loss) on Derivatives (6 ) — Sold fixed price swaps – oil Gain (Loss) on Derivatives 2 — Sold fixed price swaps – propane Gain (Loss) on Derivatives 2 — Sold fixed price swaps – ethane Gain (Loss) on Derivatives 1 — Two-way costless collars – natural gas Gain (Loss) on Derivatives (1 ) 4 Two-way costless collars – oil Gain (Loss) on Derivatives 1 — Three-way costless collars – natural gas Gain (Loss) on Derivatives (4 ) 7 Sold basis swaps – natural gas Gain (Loss) on Derivatives (4 ) (21 ) Purchased call options – natural gas Gain (Loss) on Derivatives — 2 (2) Sold call options – natural gas Gain (Loss) on Derivatives — (1 ) Total loss on settled derivatives $ (10 ) $ (9 ) Total loss on derivatives $ (32 ) $ (7 ) (1) The Company calculates gain (loss) on derivatives, settled, as the summation of gains and losses on positions that settled within the period. (2) Includes $1 million |
Reclassifications from Accumula
Reclassifications from Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Reclassifications from Accumulated Other Comprehensive Income | RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME In the first quarter of 2019, changes in accumulated other comprehensive income related to the Company’s pension and other postretirement benefits were immaterial. The following tables detail the components of accumulated other comprehensive income and the related tax effects for the three months ended March 31, 2019 : (in millions) Pension and Other Postretirement Foreign Currency Total Beginning balance December 31, 2018 $ (22 ) $ (14 ) $ (36 ) Other comprehensive income before reclassifications — — — Amounts reclassified from other comprehensive income (1) — — — Net current-period other comprehensive income — — — Ending balance March 31, 2019 $ (22 ) $ (14 ) $ (36 ) (1) See separate table below for details about these reclassifications. Details about Accumulated Other Affected Line Item in the Amount Reclassified from Accumulated Other Comprehensive Income For the three months ended March 31, 2019 (in millions) Pension and other postretirement: Amortization of prior service cost and net gain (1) Other Income (Loss), Net $ — Benefit from income taxes — Net income $ — Total reclassifications for the period Net income $ — (1) See Note 15 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Assets and liabilities measured at fair value on a recurring basis The carrying amounts and estimated fair values of the Company’s financial instruments as of March 31, 2019 and December 31, 2018 were as follows: March 31, 2019 December 31, 2018 (in millions) Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents $ 366 $ 366 $ 201 $ 201 2018 revolving credit facility due April 2023 — — — — Senior notes (1) 2,342 2,352 2,342 2,190 Derivative instruments, net 31 (2) 31 (2) 52 52 (1) Excludes unamortized debt issuance costs and debt discounts. (2) Includes $1 million in premiums paid related to certain natural gas purchased call options recognized as a component of derivative assets within current assets on the consolidated balance sheet. The fair value hierarchy 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 carrying values of cash and cash equivalents, including marketable securities, accounts receivable, other current assets, accounts payable and other current liabilities on the 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 value of the Company’s publicly traded debt as determined based on the market prices of the Company’s senior notes. These instruments were previously classified as a Level 2 measurement but substantially all senior notes were updated to a Level 1 measurement in the second quarter of 2018 as the market activity of the Company’s debt has resulted in timely quoted prices. The 4.05% Senior Notes due January 2020 remain a Level 2 measurement due to relative market inactivity. The carrying values of the borrowings under the Company’s revolving credit facility (to the extent utilized) approximates fair value because the interest rate is variable and reflective of market rates. The Company considers the fair value of its revolving credit facility to be a Level 1 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. The Company has classified its derivatives into these levels depending upon the data utilized to determine their fair values. The Company’s fixed price swaps (Level 2) are estimated using third-party discounted cash flow calculations using the NYMEX futures index for natural gas and oil derivatives and Oil Price Information Service (“OPIS”) for ethane and propane derivatives. The Company utilizes discounted cash flow models for valuing its interest rate derivatives (Level 2). The net derivative values attributable to the Company’s interest rate derivative contracts as of March 31, 2019 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 call options, two-way costless collars and three-way costless collars (Level 2) 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 and OPIS futures index, interest rates, volatility and credit worthiness. The Company’s basis swaps (Level 2) are estimated using third-party calculations based upon forward commodity price curves. These instruments were previously classified as a Level 3 measurement in the fair value hierarchy but were updated to a Level 2 measurement in the second quarter of 2018 as a result of the Company’s ability to derive volatility inputs and forward commodity price curves from directly observable sources. Inputs to the Black-Scholes model, including the volatility input, are obtained from a third-party pricing source, with independent verification of the 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: March 31, 2019 Fair Value Measurements Using: (in millions) Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets (Liabilities) at Fair Value Assets Fixed price swap – natural gas $ — $ 29 $ — $ 29 Fixed price swap – oil — 7 — 7 Fixed price swap – propane — 7 — 7 Fixed price swap – ethane — 12 — 12 Two-way costless collar – natural gas — 5 — 5 Two-way costless collar – oil — 4 — 4 Three-way costless collar – natural gas — 53 — 53 Three-way costless collar - oil — 1 — 1 Basis swap – natural gas — 2 — 2 Purchased call option – natural gas (1) — 7 — 7 Interest rate swap — 1 — 1 Liabilities Purchase fixed price swap – oil — (2 ) — (2 ) Fixed price swap – natural gas — (3 ) — (3 ) Fixed price swap – oil — (1 ) — (1 ) Two-way costless collar – natural gas — (2 ) — (2 ) Two-way costless collar – oil — (1 ) — (1 ) Three-way costless collar – natural gas — (44 ) — (44 ) Three-way costless collar – oil — (1 ) — (1 ) Basis swap – natural gas — (23 ) — (23 ) Sold call option – natural gas — (20 ) — (20 ) Total $ — $ 31 $ — $ 31 (1) Includes $1 million in premiums paid related to certain natural gas purchased call options recognized as a component of derivative assets within current assets on the consolidated balance sheet at March 31, 2019. As certain natural gas purchased call options settle, the premium will be amortized and recognized as a component of gain (loss) on derivatives on the consolidated statements of operations. December 31, 2018 Fair Value Measurements Using: (in millions) Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets (Liabilities) at Fair Value Assets Fixed price swap – natural gas $ — $ 38 $ — $ 38 Fixed price swap – oil — 19 — 19 Fixed price swap – propane — 11 — 11 Fixed price swap – ethane — 8 — 8 Two-way costless collar – natural gas — 11 — 11 Two-way costless collar – oil — 11 — 11 Three-way costless collar – natural gas — 75 — 75 Basis swap – natural gas — 11 — 11 Purchased call option – natural gas — 6 — 6 Interest rate swap — 1 — 1 Liabilities Purchase fixed price swap – oil — (6 ) — (6 ) Fixed price swap – natural gas — (10 ) — (10 ) Fixed price swap – ethane — (3 ) — (3 ) Two-way costless collar – natural gas — (7 ) — (7 ) Two-way costless collar – oil — (1 ) — (1 ) Three-way costless collar – natural gas — (68 ) — (68 ) Basis swap – natural gas — (22 ) — (22 ) Sold call option – natural gas — (22 ) — (22 ) Total $ — $ 52 $ — $ 52 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 months ended March 31, 2019 and 2018 . The fair values of Level 3 derivative instruments were estimated using proprietary valuation models that utilized both market observable and unobservable parameters. Level 3 instruments presented in the table consisted of net derivatives valued using pricing models incorporating assumptions that, in the Company’s judgment, reflected reasonable assumptions a marketplace participant would have used as of March 31, 2018 . Commodity derivatives previously presented as Level 3 were transferred to Level 2 in the second quarter of 2018 as the Company moved from using proprietary volatility inputs and forward curves to more widely available published information, increasing market observability. For the three months ended March 31, (in millions) 2019 2018 Balance at beginning of period $ — $ 22 Total gains (losses): Included in earnings — (9 ) Settlements (1) — 9 Transfers into/out of Level 3 — — Balance at end of period $ — $ 22 Change in gains (losses) included in earnings relating to derivatives still held as of March 31 $ — $ — (1) Includes $1 million amortization of premiums paid related to certain natural gas call options for the three months ended March 31, 2018 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | DEBT The components of debt as of March 31, 2019 and December 31, 2018 consisted of the following: March 31, 2019 (in millions) Debt Instrument Unamortized Issuance Expense Unamortized Debt Discount Total Current portion of long-term debt: 4.05% Senior Notes due January 2020 (1) $ 52 $ — $ — $ 52 Total current portion of long-term debt $ 52 $ — $ — $ 52 Long-term debt: Variable rate (3.923% at March 31, 2019) 2018 revolving credit facility, due April 2023 $ — $ — (2) $ — $ — 4.10% Senior Notes due March 2022 213 (1 ) — 212 4.95% Senior Notes due January 2025 (1) 927 (7 ) (1 ) 919 7.50 % Senior Notes due April 2026 650 (8 ) — 642 7.75 % Senior Notes due October 2027 500 (6 ) — 494 Total long-term debt $ 2,290 $ (22 ) $ (1 ) $ 2,267 Total debt $ 2,342 $ (22 ) $ (1 ) $ 2,319 December 31, 2018 (in millions) Debt Instrument Unamortized Issuance Expense Unamortized Debt Discount Total Long-term debt: Variable rate (3.920% at December 31, 2018) 2018 term loan facility, due April 2023 $ — $ — (2) $ — $ — 4.05% Senior Notes due January 2020 (1) 52 — — 52 4.10% Senior Notes due March 2022 213 (1 ) — 212 4.95% Senior Notes due January 2025 (1) 927 (7 ) (1 ) 919 7.50% Senior Notes due April 2026 650 (8 ) — 642 7.75% Senior Notes due October 2027 500 (7 ) — 493 Total long-term debt $ 2,342 $ (23 ) $ (1 ) $ 2,318 (1) In February and June 2016, Moody’s and S&P downgraded certain senior notes, increasing the interest rates by 175 basis points effective July 2016 . As a result of the downgrades, interest rates increased to 5.80% for the 2020 Notes and 6.70% for the 2025 Notes. In April and May 2018, S&P and Moody’s upgraded certain senior notes. As a result of these upgrades, interest rates decreased to 5.30% for the 2020 Notes and 6.20% for the 2025 Notes effective July 2018 . The first coupon payment to the bondholders at the lower interest rate was paid in January 2019 . (2) At March 31, 2019 and December 31, 2018 , unamortized issuance expense of $10 million and $11 million, respectively, associated with the 2018 revolving credit facility is classified as other long-term assets on the consolidated balance sheets. Credit Facilities 2018 Revolving Credit Facility In April 2018, the Company replaced its 2016 credit facility (which consisted of a $1,191 million secured term loan and an unsecured $743 million revolving credit facility) with a new revolving credit facility (the “2018 credit facility”). The 2018 credit facility has an aggregate maximum revolving credit amount of $3.5 billion and, at March 31, 2019 , had a current borrowing base of $2.1 billion with a current aggregate commitment of $2.0 billion. The borrowing base is subject to redetermination twice a year in April and October. On April 4, 2019 , the banks participating in the 2018 credit facility reaffirmed the borrowing base of $2.1 billion. The permitted lien provisions in the senior note indentures currently limit liens securing indebtedness to the greater of $2.0 billion and 25% of adjusted consolidated net tangible assets. The 2018 credit facility matures in April 2023 and is secured by substantially all of the assets owned by the Company and its subsidiaries. Loans under the 2018 credit facility are subject to varying rates of interest based on whether the loan is a Eurodollar loan or an alternate base rate loan. Eurodollar loans bear interest at the Eurodollar rate, which is adjusted LIBOR for such interest period plus the applicable margin (as those terms are defined in the 2018 credit facility documentation). The applicable margin for Eurodollar loans under the 2018 credit facility ranges from 1.50% to 2.50% based on the Company’s utilization of the borrowing base under the 2018 credit facility. Alternate base rate loans bear interest at the alternate base rate plus the applicable margin. The applicable margin for alternate base rate loans under the 2018 credit facility ranges from 0.50% to 1.50% based on the Company’s utilization of the borrowing base under the 2018 credit facility. The 2018 credit facility contains customary representations and warranties and contains covenants including, among others, the following: • a prohibition against incurring debt, subject to permitted exceptions; • a restriction on creating liens on assets, subject to permitted exceptions; • restrictions on mergers and asset dispositions; • restrictions on use of proceeds, investments, transactions with affiliates, or change of principal business; and • maintenance of the following financial covenants, commencing with the fiscal quarter ending June 30, 2018: 1. Minimum current ratio of no less than 1.00 to 1.00 , whereby current ratio is defined as the Company’s consolidated current assets (including unused commitments under the credit agreement, but excluding non-cash derivative assets) to consolidated current liabilities (excluding non-cash derivative obligations and current maturities of long-term debt). 2. Maximum total net leverage ratio of no less than (i) with respect to each fiscal quarter ending during the period from June 30, 2018 through March 31, 2019, 4.50 to 1.00, (ii) with respect to each fiscal quarter ending during the period from June 30, 2019 through March 31, 2020, 4.25 to 1.00, and (iii) with respect to each fiscal quarter ending on or after June 30, 2020, 4.00 to 1.00. Total net leverage ratio is defined as total debt less cash on hand (up to the lesser of 10% of credit limit or $150 million ) divided by consolidated EBITDAX for the last four consecutive quarters. EBITDAX, as defined in the Company’s 2018 credit agreement, excludes the effects of interest expense, depreciation, depletion and amortization, income tax, any non-cash impacts from impairments, certain non-cash hedging activities, stock-based compensation expense, non-cash gains or losses on asset sales, unamortized issuance cost, unamortized debt discount and certain restructuring costs. The 2018 credit facility contains customary events of default that include, among other things, the failure to comply with the financial covenants described above, non-payment of principal, interest or fees, violation of covenants, inaccuracy of representations and warranties, bankruptcy and insolvency events, material judgments and cross-defaults to material indebtedness. If an event of default occurs and is continuing, all amounts outstanding under the 2018 credit facility may become immediately due and payable. As of March 31, 2019 , the Company was in compliance with all of the covenants of the credit agreement. Each United States domestic subsidiary of the Company for which the Company owns 100% guarantees the 2018 credit facility. Pursuant to requirements under the indentures governing its senior notes, each subsidiary that became a guarantor of the 2018 credit facility also became a guarantor of each of the Company’s senior notes. See Note 19 for the Company’s Condensed Consolidated Financial Information, presented in accordance with Rule 3-10 of Regulation S-X. As of March 31, 2019 , the Company had $172 million in letters of credit and no borrowings outstanding under the 2018 revolving credit facility. Senior Notes In January 2015, the Company completed a public offering of $850 million aggregate principal amount of its 4.05% senior notes due 2020 (the “2020 Notes”) and $1.0 billion aggregate principal amount of its 4.95% senior notes due 2025 (the “2025 Notes” together with the 2020 Notes, the “Notes”). The interest rates on the Notes are determined based upon the public bond ratings from Moody’s and S&P. Downgrades on the Notes from either rating agency increase interest costs by 25 basis points per downgrade level and upgrades decrease interest costs by 25 basis points per upgrade level, up to the stated coupon rate, on the following semi-annual bond interest payment. In February and June 2016, Moody’s and S&P downgraded the Notes, increasing the interest rates by 175 basis points effective July 2016 . As a result of these downgrades, interest rates increased to 5.80% for the 2020 Notes and 6.70% for the 2025 Notes. In the event of future downgrades, the coupons for this series of notes are capped at 6.05% and 6.95% , respectively. The first coupon payment to the bondholders at the higher interest rates was paid in January 2017 . S&P and Moody’s upgraded the Notes in April and May 2018, respectively. As a result of these upgrades, interest rates decreased to 5.30% for the 2020 Notes and 6.20% for the 2025 Notes effective July 2018. The first coupon payment to the bondholders at the lower interest rates was paid in January 2019 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Operating Commitments and Contingencies As of March 31, 2019 , the Company’s contractual obligations for demand and similar charges under firm transportation and gathering agreements to guarantee access capacity on natural gas and liquids pipelines and gathering systems totaled approximately $ 9.0 billion, $ 1.4 billion of which related to access capacity on future pipeline and gathering infrastructure projects that still require the granting of regulatory approvals and additional construction efforts. The Company also had guarantee obligations of up to $ 403 million of that amount. As of March 31, 2019 , future payments under non-cancelable firm transportation and gathering agreements were as follows: Payments Due by Period (in millions) Total Less than 1 Year 1 to 3 Years 3 to 5 Years 5 to 8 Years More than 8 Years Infrastructure currently in service $ 7,583 $ 723 $ 1,304 $ 1,135 $ 1,520 $ 2,901 Pending regulatory approval and/or construction (1) 1,411 4 113 167 285 842 Total transportation charges $ 8,994 $ 727 $ 1,417 $ 1,302 $ 1,805 $ 3,743 (1) Based on estimated in-service dates as of March 31, 2019. In December 2018, the Company closed on the Fayetteville Shale sale. The Company retained certain contractual commitments related to firm transportation, with the buyer obligated to pay the transportation provider directly for these charges. As of March 31, 2019 , approximately $ 188 million of these contractual commitments remain of which the Company will reimburse the buyer for certain of these potential obligations up to approximately $ 94 million through 2020 depending on the buyer’s actual use, and has recorded a $ 78 million liability for the estimated future payments, down from $ 88 million recorded at December 31, 2018 . In the first quarter of 2019, the Company agreed to purchase firm transportation with pipelines in the Appalachian Basin starting in 2021 and running through 2032 totaling $ 357 million in total contractual commitments, which is presented in the table above; the seller has agreed to reimburse $ 133 million of these commitments. 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, results of operations or cash flows of the Company. Litigation The Company is subject to various litigation, claims and proceedings that have arisen in the ordinary course of business, such as for alleged breaches of contract, miscalculation of royalties, employment matters, traffic accidents, pollution, contamination, encroachment on others’ property or nuisance. The Company accrues for such items when a liability is both probable and the amount can be reasonably estimated. It is not possible at this time to estimate the amount of any additional loss, or range of loss, that is reasonably possible, but, based on the nature of the claims, management believes that current litigation, claims and proceedings, individually or in aggregate and after taking into account insurance, are not likely to have a material adverse impact on the Company’s financial position, results of operations or cash flows, for the period in which the effect of that outcome becomes reasonably estimable. Many of these matters are in early stages, so the allegations and the damage theories have not been fully developed, and are all subject to inherent uncertainties; therefore, management’s view may change in the future. Arkansas Royalty Litigation The Company has been a defendant in three certified class actions alleging that the Company underpaid lessors of lands in Arkansas by deducting from royalty payments costs for gathering, transportation and compression of natural gas in excess of what is permitted by the relevant leases. Two of the these class actions were filed in Arkansas state courts and the third in the United States District Court for the Eastern District of Arkansas. The Company denied liability in all these cases. Under the agreement for the sale of the Company’s properties in the Fayetteville Shale, the Company retained responsibility for these class actions. In June 2017, the jury returned a verdict in favor of the Company on all counts in Smith v. SEECO, Inc. et al. , the class action in the federal court, whose plaintiff class comprises the vast majority of the lessors in these cases. The plaintiff had asserted claims for, among other things, breach of contract, fraud, civil conspiracy, unjust enrichment and violation of certain Arkansas statutes. Following the verdict, the court entered judgment in favor of the Company on all claims. The trial court denied the plaintiff’s motion for a new trial, and the plaintiff appealed to the United States Court of Appeals for the Eighth Circuit. Independent of the plaintiff’s appeal, several different parties sought to intervene in the Smith case prior to or shortly after trial, and have appealed the trial court’s order denying their request to intervene. Oral argument occurred in January 2019. On April 23, 2019, the Court of Appeals affirmed the trial court’s order denying all requests to intervene in the case, and, in a separate order, affirmed the trial court’s judgment in favor of the Company on all claims. In the second quarter of 2018, the Company entered into an agreement to settle another of the class actions, which has been pending in the Circuit Court of Conway County, Arkansas under the caption Snow et al. v. SEECO, Inc . , et al . The settlement received final approval by the court during the third quarter of 2018, and the deadline to appeal the order approving the settlement passed without any appeals filed. The amount of the settlement is reflected in the Company’s consolidated statement of operations for the second quarter of 2018 and was paid early in the fourth quarter of 2018. The third class action was dismissed in the second quarter of 2018. The Smith and the Snow cases cover all affected lessors, except a small percentage who opted out. Most of those have filed separate actions. The Company does not expect those cases to have a material adverse effect on the results of operations, financial position or cash flows of the Company. Additionally, it is not possible at this time to estimate the amount of any additional loss, or range of loss, that is reasonably possible. Indemnifications The Company provides certain indemnifications in relation to dispositions of assets. These indemnifications typically relate to disputes, litigation or tax matters existing at the date of disposition. The Company likewise obtains indemnification for future matters when it sells assets, although there is no assurance the buyer will be capable of performing those obligations. No |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Expense (Benefit), Continuing Operations [Abstract] | |
Income Taxes | INCOME TAXES The Company’s effective tax rate was approximately (254)% and 0% for the three months ended March 31, 2019 and 2018 , respectively, primarily as a result of the release of valuation allowances previously recorded against deferred tax assets. A valuation allowance for deferred tax assets, including net operating losses, is recognized when it is more likely than not that some or all of the benefit from the deferred tax assets will not be realized. To assess that likelihood, the Company uses estimates and judgment regarding future taxable income, and considers the tax consequences in the jurisdiction where such taxable income is generated, to determine whether a valuation allowance is required. Such evidence can include current financial position, results of operations, both actual and forecasted, the reversal of deferred tax liabilities and tax planning strategies as well as the current and forecasted business economics of the oil and gas industry. For the year ended December 31, 2018, the Company maintained a full valuation allowance against its deferred tax assets based on its conclusion, considering all available evidence (both positive and negative), that it was more likely than not that the deferred tax assets would not be realized. A significant item of objective negative evidence considered was the cumulative pre-tax loss incurred over the three-year period ended December 31, 2018, primarily due to impairments of proved natural gas and oil properties recognized in 2015 and 2016. As of the first quarter of 2019, the Company has sustained a three-year cumulative level of profitability. Based on this factor and other positive evidence including forecasted income, the Company concluded that it is more likely than not that the deferred tax assets would be realized and released substantially all of the valuation allowance. This resulted in a discrete tax benefit recorded for the period of $426 million. The Company expects to keep a valuation allowance of $87 million related to net operating losses in jurisdictions in which it no longer operates. In February 2018, the FASB issued Accounting Standards Update No. 2018-02 amending the FASB Accounting Standards relating to tax effects in accumulated other comprehensive income. See Note 18 – New Accounting Pronouncements |
Pension Plan and Other Postreti
Pension Plan and Other Postretirement Benefits | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Pension Plan and Other Postretirement Benefits | PENSION PLAN AND OTHER POSTRETIREMENT BENEFITS The Company maintains defined pension and other postretirement benefit plans, which cover substantially all of the Company’s employees. Net periodic pension costs include the following components for the three months ended March 31, 2019 and 2018 : Pension Benefits Consolidated Statements of Operations Classification of Net Periodic Benefit Cost (1) For the three months ended March 31, (in millions) 2019 2018 Service cost General and administrative expenses $ 2 $ 3 Interest cost Other Income (Loss), Net 1 2 Expected return on plan assets Other Income (Loss), Net (2 ) (2 ) Amortization of prior service cost Other Income (Loss), Net — — Amortization of net loss Other Income (Loss), Net 1 — Net periodic benefit cost $ 2 $ 3 (1) In the first quarter of 2018, the Company adopted Accounting Standards Update No. 2017-07, which requires the service cost component to be disaggregated from the other components of net benefit cost, which are to be presented outside of income from operations. See Note 18 – New Accounting Pronouncements for more information regarding this update. The Company’s other postretirement benefit plan had a net periodic benefit cost of less than $1 million and $1 million for the three months ended March 31, 2019 and 2018, respectively. As of March 31, 2019 , the Company has contributed $5 million to the pension and other postretirement benefit plans, and expects to contribute an additional $7 million to its pension plan during the remainder of 2019 . The Company recognized a liability of $31 million and $13 million related to its pension and other postretirement benefits, respectively, as of March 31, 2019 , compared to a liability of $34 million and $13 million as of December 31, 2018 . 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 Non-Qualified Plan. Shares of the Company’s common stock purchased under the terms of the Non-Qualified Plan are presented as treasury stock and totaled 5,115 shares and 10,653 shares at March 31, 2019 and December 31, 2018 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Share-based Compensation [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION The Company recognized the following amounts in total employee stock-based compensation costs for the three months ended March 31, 2019 and 2018 : For the three months ended March 31, (in millions) 2019 2018 Stock-based compensation cost – expensed $ 7 $ 5 Stock-based compensation cost – capitalized 4 3 The Company’s stock-based compensation is classified as either equity awards or liability awards in accordance with GAAP. The fair value of an equity-classified award is determined at the grant date and is amortized to general and administrative expense and capitalized expense on a straight-line basis over the vesting period of the award. The fair value of a liability-classified award is determined on a quarterly basis beginning at the grant date until final vesting. Changes in the fair value of liability-classified awards are recorded to general and administrative expense over the vesting period of the award. A portion of this general and administrative expense is capitalized into natural gas and oil properties, included in property and equipment. Generally, stock options granted to employees and directors vest ratably over three years from the grant date and expire seven years from the date of grant. The Company issues shares of restricted stock or restricted stock units to employees and directors which generally vest over four years . Restricted stock, restricted stock units and stock options granted to participants under the 2013 Incentive Plan, as amended and restated, immediately vest upon death, disability or retirement (subject to a minimum of three years of service). The Company issues performance unit awards to employees which historically have vested at or over three years . In December 2018, the Company closed the sale of the equity in certain of its subsidiaries that owned and operated its Fayetteville Shale E&P and related midstream gathering assets in Arkansas. As part of this transaction, most employees associated with those assets became employees of the buyer although the employment of some was or will be terminated. All affected employees were offered a severance package, which included a one-time cash payment depending on length of service and, if applicable, the current value of a portion of equity awards that were forfeited. Stock-based compensation costs recognized prior to the cancellation as either general and administrative expense or capitalized expense were reversed and the severance payments were subsequently recognized as restructuring charges for the year ended December 31, 2018 and the three months ended March 31, 2019 on the consolidated statements of operations. Equity-Classified Awards The Company recognized the following amounts in employee equity-classified stock-based compensation costs for the three months ended March 31, 2019 and 2018 : For the three months ended March 31, (in millions) 2019 2018 Equity-classified awards – expensed $ 2 $ 4 Equity-classified awards – capitalized 1 3 As of March 31, 2019 , there was $14 million of total unrecognized compensation cost related to the Company’s unvested equity-classified stock option grants, equity-classified restricted stock grants and equity-classified performance units. This cost is expected to be recognized over a weighted-average period of one and a half years . Equity-Classified Stock Options The following table summarizes equity-classified stock option activity for the three months ended March 31, 2019 and provides information for options outstanding and options exercisable as of March 31, 2019 : Number of Options Weighted Average Exercise Price (in thousands) Outstanding at December 31, 2018 5,178 $ 17.06 Granted — $ — Exercised — $ — Forfeited or expired (58 ) $ 15.74 Outstanding at March 31, 2019 5,120 $ 17.07 Exercisable at March 31, 2019 4,604 $ 18.16 Equity-Classified Restricted Stock The following table summarizes equity-classified restricted stock activity for the three months ended March 31, 2019 and provides information for unvested shares as of March 31, 2019 : Number of Shares Weighted Average Fair Value (in thousands) Unvested shares at December 31, 2018 2,717 $ 7.91 Granted 9 $ 3.72 Vested (608 ) $ 8.74 Forfeited (145 ) $ 8.38 Unvested shares at March 31, 2019 1,973 $ 7.61 Equity-Classified Performance Units The following table summarizes equity-classified performance unit activity for the three months ended March 31, 2019 and provides information for unvested units as of March 31, 2019 . The performance unit awards granted in 2017 include a market condition based exclusively on the fair value of the Total Shareholder Return (“TSR”), as calculated by a Monte Carlo model. The total fair value of the performance units is amortized to compensation expense on a straight line basis over the vesting period of the award. The grant date fair value is calculated using the closing price of the Company’s common stock at the grant date. Number of Shares (1) Weighted Average Fair Value (in thousands) Unvested units at December 31, 2018 598 $ 10.01 Granted — $ — Vested (371 ) $ 9.73 Forfeited (30 ) $ 10.47 Unvested units at March 31, 2019 197 $ 10.47 (1) The actual payout of shares may range from a minimum of zero shares to a maximum of two shares per unit contingent upon TSR. The performance units have a three-year vesting term and the actual disbursement of shares, if any, is determined during the first quarter following the end of the three -year vesting period. Liability-Classified Awards The Company recognized the following amounts in employee liability-classified stock-based compensation costs for the three months ended March 31, 2019 : For the three months ended March 31, (in millions) 2019 2018 Liability-classified stock-based compensation cost – expensed $ 5 $ 1 Liability-classified stock-based compensation cost – capitalized 3 — Liability-Classified Restricted Stock Units In the first quarter of 2018 and 2019, the Company granted restricted stock units that vest over a period of four years and are payable in either cash or shares at the option of the Compensation Committee of the Company’s Board of Directors. The Company has accounted for these as liability-classified awards, and accordingly changes in the market value of the instruments will be recorded to general and administrative expense and capitalized expense over the vesting period of the award. As of March 31, 2019 , there was $61 million of total unrecognized compensation cost related to liability-classified restricted stock units that is expected to be recognized over a weighted-average period of three years . Number of Units Weighted Average Fair Value (in thousands) Unvested shares at December 31, 2018 8,202 $ 3.41 Granted 8,659 $ 4.34 Vested (2,120 ) $ 4.29 Forfeited (504 ) $ 3.85 Unvested units at March 31, 2019 14,237 $ 4.69 Liability-Classified Performance Units In the first quarter of 2018 and 2019, the Company granted performance units that vest over a three-year period and are payable in either cash or shares at the option of the Compensation Committee of the Company’s Board of Directors. The Company has accounted for these as liability-classified awards, and accordingly changes in the fair market value of the instruments will be recorded to general and administrative expense and capitalized expense over the vesting period of the awards. The performance unit awards granted in 2018 include a performance condition based on cash flow per debt-adjusted share and two market conditions, one based on absolute TSR and the other on relative TSR as compared to a group of the Company’s peers. The performance unit awards granted in 2019 include a performance condition based on return on average capital employed and two market conditions, one based on absolute TSR and the other on relative TSR. The fair values of the two market conditions are calculated by Monte Carlo models on a quarterly basis. As of March 31, 2019 , there was $19 million of total unrecognized compensation cost related to liability-classified performance units. This cost is expected to be recognized over a weighted-average period of three years . The final value of the performance unit awards is contingent upon the Company’s actual performance against these performance measures. Number of Shares Weighted Average Fair Value (in thousands) Unvested shares at December 31, 2018 2,803 $ 3.41 Granted 2,757 $ 4.34 Vested — $ — Forfeited (119 ) $ 4.65 Unvested units at March 31, 2019 5,441 $ 4.69 |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 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 liquids. The Midstream segment generates revenue through the marketing of both Company and third-party produced natural gas and liquids volumes. Prior to December 2018, the Midstream segment included the Company’s natural gas gathering business associated with its Fayetteville Shale assets. With the closing of the Fayetteville Shale sale in December 2018, the Company’s marketing business comprises substantially all of the Company’s Midstream segment. 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 2018 Annual Report. 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, gain (loss) on derivatives and other income (loss). The “Other” column includes items not related to the Company’s reportable segments, including real estate and corporate items. E&P Midstream Other Total Three months ended March 31, 2019 (in millions) Revenues from external customers $ 551 $ 439 $ — $ 990 Intersegment revenues (9 ) 502 — 493 Depreciation, depletion and amortization expense 110 2 — 112 Operating income 210 (1) 3 — 213 Interest expense (2) 14 — — 14 Loss on derivatives (32 ) — — (32 ) Other income, net 1 — — 1 Benefit from income taxes (2) (426 ) — — (426 ) Assets 5,562 (3) 342 542 (4) 6,446 Capital investments (5) 325 — — 325 Three months ended March 31, 2018 Revenues from external customers $ 643 $ 277 $ — $ 920 Intersegment revenues (6 ) 619 — 613 Depreciation, depletion and amortization expense 117 26 (7) — 143 Operating income (6) 238 17 — 255 Interest expense (2) 39 — — 39 Loss on derivatives (7 ) — — (7 ) Other loss, net — (1 ) — (1 ) Assets 5,346 (3) 1,217 1,150 (4) 7,713 Capital investments (5) 334 4 — 338 (1) Operating income for the E&P segment includes $3 million of restructuring charges for the three months ended March 31, 2019 . (2) Interest expense and the benefit from income taxes by segment is an allocation of corporate amounts as they are incurred at the corporate level. (3) Includes office, technology, water infrastructure, drilling rigs and other ancillary equipment not directly related to natural gas and oil properties. Also includes deferred tax assets which are an allocation of corporate amounts as they are incurred at the corporate level. (4) Other assets represent corporate assets not allocated to segments and assets for non-reportable segments. At March 31, 2019 and 2018, other assets included approximately $366 million and $958 million , respectively, in cash and cash equivalents. (5) Capital investments include increases of $66 million and $33 million for the three months ended March 31, 2019 and 2018 , respectively, relating to the change in accrued expenditures between years. (6) Includes the impact of Fayetteville Shale-related E&P and Midstream operations which were divested on December 3, 2018. (7) Includes a $10 million impairment related to certain non-core gathering assets. Included in intersegment revenues of the Midstream segment are $502 million and $576 million for the three months ended March 31, 2019 and 2018 |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | NEW ACCOUNTING PRONOUNCEMENTS New Accounting Standards Implemented In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) (“Update 2016-02”), which seeks to increase transparency and comparability among organizations by, among other things, recognizing lease assets and lease liabilities on the balance sheet for leases classified as operating leases under previous GAAP and disclosing key information about leasing arrangements. The codification was amended through additional ASUs. For public entities, Update 2016-02 became effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted ASC 842 with an effective date of January 1, 2019 using the modified retrospective approach for all leases that existed at the date of initial application. The Company elected to apply the transition as of the beginning of the period of adoption. For leases that existed at the period of adoption on January 1, 2019, the incremental borrowing rate as of the application date was used to calculate the present value of remaining lease payments. Upon adoption of ASC 842, the Company recognized a discounted right of use asset and corresponding lease liability with opening balances of approximately $105 million as of January 1, 2019 . The adoption of the standard did not materially change the Company’s consolidated statement of operations or its consolidated statement of cash flows. Please refer to Note 4 – “Leases” for full disclosure. New Accounting Standards Not Yet Implemented |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 3 Months Ended |
Mar. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Financial Information | CONDENSED CONSOLIDATING FINANCIAL INFORMATION In April, 2018, the Company entered into the 2018 credit facility. Pursuant to requirements under the indentures governing the Company’s senior notes, each 100% owned subsidiary that became a guarantor of the 2018 credit facility also became a guarantor of each of the Company’s senior notes (the “Guarantor Subsidiaries”). The Guarantor Subsidiaries also granted liens and security interests to support their guarantees under the 2018 credit facility but not of the senior notes. These guarantees are full and unconditional and joint and several among the Guarantor Subsidiaries. Certain of the Company’s operating units which are accounted for on a consolidated basis do not guarantee the 2018 credit facility and senior notes (“Non-Guarantor Subsidiaries”). See Note 12 – Debt for additional information on the Company’s 2018 revolving credit facility and senior notes. At the closing of the Fayetteville Shale sale in December 2018, its subsidiaries being sold were released from these guarantees. See Note 2 for additional information on the divestiture of the Company’s Fayetteville Shale-related subsidiaries. The following financial information reflects consolidating financial information of Southwestern Energy Company (the parent and issuer company), its Guarantor Subsidiaries on a combined basis and the Non-Guarantor Subsidiaries on a combined basis, prepared on the equity basis of accounting. The information is presented in accordance with the requirements of Rule 3-10 under the SEC’s Regulation S-X. The financial information may not necessarily be indicative of results of operations, cash flows or financial position had the Guarantor Subsidiaries operated as independent entities. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in millions) Parent Guarantors Non-Guarantors Eliminations Consolidated Three months ended March 31, 2019 Operating Revenues: Gas sales $ — $ 430 $ — $ — $ 430 Oil sales — 39 — — 39 NGL sales — 81 — — 81 Marketing — 438 — — 438 Other — 2 — — 2 — 990 — — 990 Operating Costs and Expenses: Marketing purchases — 441 — — 441 Operating expenses — 165 — — 165 General and administrative expenses — 37 — — 37 Restructuring charges — 3 — — 3 Depreciation, depletion and amortization — 112 — — 112 Taxes, other than income taxes — 19 — — 19 — 777 — — 777 Operating Income — 213 — — 213 Interest Expense, Net 14 — — — 14 Loss on Derivatives — (32 ) — — (32 ) Other Income, Net — 1 — — 1 Equity in Earnings of Subsidiaries 608 — — (608 ) — Income (Loss) Before Income Taxes 594 182 — (608 ) 168 Benefit from Income Taxes — (426 ) — — (426 ) Net Income (Loss) 594 608 — (608 ) 594 Net Income (Loss) $ 594 $ 608 $ — $ (608 ) $ 594 Other comprehensive income — — — — — Comprehensive Income (Loss) $ 594 $ 608 $ — $ (608 ) $ 594 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in millions) Parent Guarantors Non-Guarantors Eliminations Consolidated Three months ended March 31, 2018 Operating Revenues: Gas sales $ — $ 540 $ — $ — $ 540 Oil sales — 35 — — 35 NGL sales — 65 — — 65 Marketing — 253 — — 253 Gas gathering — 24 — — 24 Other — 3 — — 3 — 920 — — 920 Operating Costs and Expenses: Marketing purchases — 255 — — 255 Operating expenses — 189 — — 189 General and administrative expenses — 55 — — 55 Depreciation, depletion and amortization — 143 — — 143 Taxes, other than income taxes — 23 — — 23 — 665 — — 665 Operating Income — 255 — — 255 Interest Expense, Net 39 — — — 39 Loss on Derivatives — (7 ) — — (7 ) Other Loss, Net — (1 ) — — (1 ) Equity in Earnings of Subsidiaries 247 — — (247 ) — Income (Loss) Before Income Taxes 208 247 — (247 ) 208 Provision (Benefit) for Income Taxes — — — — — Net Income (Loss) $ 208 $ 247 $ — $ (247 ) $ 208 Participating securities - mandatory convertible preferred stock 3 — — — 3 Net Income (Loss) Attributable to $ 205 $ 247 $ — $ (247 ) $ 205 Net Income (Loss) $ 208 $ 247 $ — $ (247 ) $ 208 Other comprehensive income — — — — — Comprehensive Income (Loss) $ 208 $ 247 $ — $ (247 ) $ 208 CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in millions) Parent Guarantors Non-Guarantors Eliminations Consolidated March 31, 2019 : ASSETS Cash and cash equivalents $ 366 $ — $ — $ — $ 366 Accounts receivable, net — 390 — — 390 Other current assets 11 120 — — 131 Total current assets 377 510 — — 887 Intercompany receivables 7,744 — — (7,744 ) — Natural gas and oil properties, using the full cost method — 24,433 53 — 24,486 Gathering systems — 11 27 — 38 Other 197 312 — — 509 Less: Accumulated depreciation, depletion and amortization (159 ) (19,947 ) (56 ) — (20,162 ) Total property and equipment, net 38 4,809 24 — 4,871 Investments in subsidiaries (equity method) — 23 — (23 ) — Other long-term assets 42 646 — — 688 TOTAL ASSETS $ 8,201 $ 5,988 $ 24 $ (7,767 ) $ 6,446 LIABILITIES AND EQUITY Accounts payable $ 124 $ 502 $ — $ — $ 626 Other current liabilities 189 128 — — 317 Total current liabilities 313 630 — — 943 Intercompany payables — 7,743 1 (7,744 ) — Long-term debt 2,267 — — — 2,267 Pension and other postretirement liabilities 43 — — — 43 Other long-term liabilities 47 209 — — 256 Negative carrying amount of subsidiaries, net 2,594 — — (2,594 ) — Total long-term liabilities 4,951 209 — (2,594 ) 2,566 Commitments and contingencies Total equity (accumulated deficit) 2,937 (2,594 ) 23 2,571 2,937 TOTAL LIABILITIES AND EQUITY $ 8,201 $ 5,988 $ 24 $ (7,767 ) $ 6,446 CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in millions) Parent Guarantors Non-Guarantors Eliminations Consolidated December 31, 2018 ASSETS Cash and cash equivalents $ 201 $ — $ — $ — $ 201 Accounts receivable, net 4 577 — — 581 Other current assets 8 166 — — 174 Total current assets 213 743 — — 956 Intercompany receivables 7,932 — — (7,932 ) — Natural gas and oil properties, using the full cost method — 24,128 52 — 24,180 Gathering systems — 11 27 — 38 Other 197 290 — — 487 Less: Accumulated depreciation, depletion and amortization (154 ) (19,840 ) (55 ) — (20,049 ) Total property and equipment, net 43 4,589 24 — 4,656 Investments in subsidiaries (equity method) — 24 — (24 ) — Other long-term assets 19 166 — — 185 TOTAL ASSETS $ 8,207 $ 5,522 $ 24 $ (7,956 ) $ 5,797 LIABILITIES AND EQUITY Accounts payable $ 113 $ 496 $ — $ — $ 609 Other current liabilities 115 122 — — 237 Total current liabilities 228 618 — — 846 Intercompany payables — 7,932 — (7,932 ) — Long-term debt 2,318 — — — 2,318 Pension and other postretirement liabilities 46 — — — 46 Other long-term liabilities 54 171 — — 225 Negative carrying amount of subsidiaries, net 3,199 — — (3,199 ) — Total long-term liabilities 5,617 171 — (3,199 ) 2,589 Commitments and contingencies Total equity (accumulated deficit) 2,362 (3,199 ) 24 3,175 2,362 TOTAL LIABILITIES AND EQUITY $ 8,207 $ 5,522 $ 24 $ (7,956 ) $ 5,797 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) (in millions) Parent Guarantors Non-Guarantors Eliminations Consolidated Three months ended March 31, 2019 Net cash provided by (used in) operating activities $ 1,031 $ 19 $ — $ (608 ) $ 442 Investing activities: Capital investments 3 (261 ) — — (258 ) Other — — — — — Net cash used in investing activities 3 (261 ) — — (258 ) Financing activities Intercompany activities (850 ) 242 — 608 — Change in bank drafts outstanding 3 — — — 3 Purchase of treasury stock (21 ) — — — (21 ) Cash paid for tax withholding (1 ) — — — (1 ) Net cash provided by (used in) financing activities (869 ) 242 — 608 (19 ) Increase in cash and cash equivalents 165 — — — 165 Cash and cash equivalents at beginning of year 201 — — — 201 Cash and cash equivalents at end of period $ 366 $ — $ — $ — $ 366 Three months ended March 31, 2018 Net cash provided by (used in) operating activities $ 183 $ 428 $ — $ (247 ) $ 364 Investing activities: Capital investments (5 ) (297 ) — — (302 ) Other — 8 — — 8 Net cash used in investing activities (5 ) (289 ) — — (294 ) Financing activities Intercompany activities (116 ) (131 ) — 247 — Preferred stock dividend (27 ) — — — (27 ) Cash paid for tax withholding (1 ) — — — (1 ) Net cash provided by (used in) financing activities (144 ) (131 ) — 247 (28 ) Increase in cash and cash equivalents 34 8 — — 42 Cash and cash equivalents at beginning of year 914 2 — — 916 Cash and cash equivalents at end of period $ 948 $ 10 $ — $ — $ 958 |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
New Accounting Standards Implemented/New Accounting Standards Not Yet Implemented | New Accounting Standards Implemented In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) (“Update 2016-02”), which seeks to increase transparency and comparability among organizations by, among other things, recognizing lease assets and lease liabilities on the balance sheet for leases classified as operating leases under previous GAAP and disclosing key information about leasing arrangements. The codification was amended through additional ASUs. For public entities, Update 2016-02 became effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted ASC 842 with an effective date of January 1, 2019 using the modified retrospective approach for all leases that existed at the date of initial application. The Company elected to apply the transition as of the beginning of the period of adoption. For leases that existed at the period of adoption on January 1, 2019, the incremental borrowing rate as of the application date was used to calculate the present value of remaining lease payments. Upon adoption of ASC 842, the Company recognized a discounted right of use asset and corresponding lease liability with opening balances of approximately $105 million as of January 1, 2019 . The adoption of the standard did not materially change the Company’s consolidated statement of operations or its consolidated statement of cash flows. Please refer to Note 4 – “Leases” for full disclosure. New Accounting Standards Not Yet Implemented |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring Charges | The following table presents a summary of the restructuring charges included in Operating Income for the three months ended March 31, 2019 : For the three months ended (in millions) March 31, 2019 Severance (including payroll taxes) $ 2 Office consolidation 1 Total restructuring charges (1) $ 3 (1) Total restructuring charges were $3 million for the Company’s E&P segment for the three months ended March 31, 2019 . The following table presents a summary of the liabilities associated with the Company’s restructuring activities at March 31, 2019 which are reflected in accounts payable on the consolidated balance sheet: For the three months ended (in millions) March 31, 2019 Liability at December 31, 2018 $ 5 Additions 3 Distributions (6 ) Liability at March 31, 2019 $ 2 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Lease costs | The components of lease costs are shown below: For the three months ended March 31, 2019 (in millions) Operating lease cost $ 11 Short-term lease cost 12 Variable lease cost — Total lease cost $ 23 Supplemental cash flow information related to leases is set forth below: For the three months ended March 31, 2019 (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 11 Right-of use assets obtained in exchange for new operating liabilities: Operating leases $ 3 |
Supplemental balance sheet information | Supplemental balance sheet information related to leases is as follows: March 31, 2019 Right-of-use asset balance: (in millions) Operating leases $ 100 Lease liability balance: (in millions) Short-term operating leases $ 38 Long-term operating leases 62 Total operating leases $ 100 Weighted average remaining lease term: (years) Operating leases 4.1 Weighted average discount rate: Operating leases 5.86 % |
Lease maturity schedule | aturity analysis of operating lease liabilities: (in millions) March 31, 2019 2019 $ 33 2020 32 2021 18 2022 9 2023 8 2024 4 Thereafter 9 Total undiscounted lease liability $ 113 Imputed interest (13 ) Total discounted lease liability $ 100 (in millions) December 31, 2018 2019 $ 38 2020 28 2021 14 2022 6 2023 5 Thereafter 4 Total minimum payments required $ 95 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue by Segment | The Company presents a disaggregation of E&P revenues by product on the consolidated statements of operations net of intersegment revenues. The following table reconciles operating revenues as presented on the consolidated statements of operations to the operating revenues by segment: (in millions) E&P Midstream Intersegment Revenues Total Three months ended March 31, 2019 Gas sales $ 421 $ — $ 9 $ 430 Oil sales 39 — — 39 NGL sales 81 — — 81 Marketing — 940 (502 ) 438 Other (1) 1 1 — 2 Total $ 542 $ 941 $ (493 ) $ 990 Three months ended March 31, 2018 Gas sales $ 535 $ — $ 5 $ 540 Oil sales 34 — 1 35 NGL sales 65 — — 65 Marketing — 829 (576 ) 253 Gas gathering (2) — 67 (43 ) 24 Other (1) 3 — — 3 Total $ 637 $ 896 $ (613 ) $ 920 (1) Other E&P revenues consists primarily of water sales to third-party operators, and other Midstream revenues consists primarily of sales of gas from storage. (2) |
Disaggregation of Revenue on Geographic Basis | For the three months ended (in millions) 2019 2018 Northeast Appalachia $ 348 $ 327 Southwest Appalachia 193 156 Fayetteville Shale — 152 Other 1 2 Total $ 542 $ 637 |
Reconciliation of Accounts Receivable | The following table reconciles the Company’s receivables from contracts with customers to consolidated accounts receivable as presented on the consolidated balance sheet: (in millions) March 31, 2019 December 31, 2018 Receivables from contracts with customers $ 297 $ 494 Other accounts receivable 93 87 Total accounts receivable $ 390 $ 581 |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Summary of Cash and Cash Equivalents | The following table presents a summary of cash and cash equivalents as of March 31, 2019 and December 31, 2018 : (in millions) March 31, 2019 December 31, 2018 Cash $ 89 $ 32 Marketable securities (1) 277 169 Total $ 366 $ 201 (1) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following table presents the computation of earnings per share for the three months ended March 31, 2019 and 2018 : For the three months ended (in millions, except share/per share amounts) 2019 2018 Net income $ 594 $ 208 Participating securities - mandatory convertible preferred stock — 3 Net income attributable to common stock $ 594 $ 205 Number of common shares: Weighted average outstanding 539,721,751 571,297,804 Issued upon assumed exercise of outstanding stock options — — Effect of issuance of non-vested restricted common stock 665,435 914,096 Effect of issuance of non-vested performance units 933,301 1,632,559 Weighted average and potential dilutive outstanding 541,320,487 573,844,459 Earnings per common share: Basic $ 1.10 $ 0.36 Diluted $ 1.10 $ 0.36 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table presents the common stock shares equivalent excluded from the calculation of diluted earnings per share for the three months ended March 31, 2019 and 2018 , as they would have had an antidilutive effect: For the three months ended 2019 2018 Unexercised stock options 5,128,640 — Unvested share-based payment 1,881,355 5,292,454 Performance units 260,201 574,944 Mandatory convertible preferred stock — 9,999,815 Total 7,270,196 15,867,213 |
Derivatives and Risk Manageme_2
Derivatives and Risk Management (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments Notional Amount, Weighted Average Contract Prices and Fair Value | The following tables provide information about the Company’s financial instruments that are sensitive to changes in commodity prices and that are used to protect the Company’s exposure. None of the financial instruments below are designated for hedge accounting treatment. The tables present the notional amount, the weighted average contract prices and the fair value by expected maturity dates as of March 31, 2019 : Financial Protection on Production Weighted Average Price per MMBtu Volume (Bcf) Swaps Sold Puts Purchased Puts Sold Calls Basis Differential Fair Value at March 31, 2019 (in millions) Natural Gas 2019 Fixed price swaps 195 $ 2.90 $ — $ — $ — $ — $ 23 Two-way costless collars 44 — — 2.78 2.92 — 3 Three-way costless collars 101 — 2.46 2.88 3.22 — 13 Total 340 $ 39 2020 Fixed price swaps 24 $ 2.88 $ — $ — $ — $ — $ 3 Three-way costless collars 122 — 2.35 2.68 2.96 — (2 ) Total 146 $ 1 2021 Three-way costless collars 37 $ — $ 2.35 $ 2.60 $ 2.93 $ — $ (2 ) Basis Swaps 2019 85 $ — $ — $ — $ — $ (0.50 ) $ (13 ) 2020 59 — — — — (0.44 ) (8 ) Total 144 $ (21 ) Volume (MBbls) Weighted Average Strike Price per Bbl Fair Value at March 31, 2019 (in millions) Swaps Sold Puts Purchased Puts Sold Calls Oil 2019 Fixed price swaps (1) 921 $ 62.13 $ — $ — $ — $ 1 Two-way costless collars 248 — — 65.00 72.30 1 Three-way costless collars 412 — 45.00 55.00 63.67 — Total 1,581 $ 2 2020 Fixed price swaps 366 $ 65.68 $ — $ — $ — $ 3 Two-way costless collars 366 — — 60.00 69.80 2 Total 732 $ 5 Propane 2019 Fixed price swaps 2,028 $ 31.25 $ — $ — $ — $ 7 2020 Fixed price swaps 824 $ 27.35 $ — $ — $ — $ — Two-way costless collars 366 — — 25.20 29.40 — Total 1,190 $ — Ethane 2019 Fixed price swaps 2,778 $ 13.90 $ — $ — $ — $ 10 2020 Fixed price swaps 732 $ 13.49 $ — $ — $ — $ 2 (1) Includes 206 MBbls of purchased fixed price oil swaps hedged at $69.10 per barrel with a fair value of ($2) million and 1,127 MBbls of sold fixed price oil swaps hedged at $63.41 with a fair value of $3 million . Other Derivative Contracts Volume (Bcf) Weighted Average Strike Price per MMBtu Fair Value at March 31, 2019 (in millions) Purchased Call Options – Natural Gas 2019 30 $ 3.50 $ — 2020 68 3.63 3 2021 57 3.52 3 Total 155 $ 6 Sold Call Options – Natural Gas 2019 39 $ 3.50 $ (1 ) 2020 137 3.39 (10 ) 2021 114 3.33 (9 ) Total 290 $ (20 ) Volume (Bcf) Weighted Average Strike Price per MMBtu Basis Differential per MMBtu Fair Value at March 31, 2019 ($ in millions) Storage (1) 2019 Purchased fixed price swaps 1 $ 2.87 $ — $ — Purchased basis swaps 1 — (0.53 ) — Total $ — 2020 Fixed price swap 1 $ 3.14 $ — $ — (1) |
Balance Sheet Classification of Derivative Financial Instruments | The balance sheet classification of the assets and liabilities related to derivative financial instruments (none of which are designated for hedge accounting treatment) is summarized below as of March 31, 2019 and December 31, 2018 : Derivative Assets Balance Sheet Classification Fair Value (in millions) March 31, 2019 December 31, 2018 Derivatives not designated as hedging instruments: Fixed price swaps – natural gas Derivative assets $ 25 $ 32 Fixed price swaps – oil Derivative assets 5 13 Fixed price swaps – propane Derivative assets 7 11 Fixed price swaps – ethane Derivative assets 11 7 Two-way costless collars – natural gas Derivative assets 5 11 Two-way costless collars – oil Derivative assets 2 6 Three-way costless collars – natural gas Derivative assets 25 41 Three-way costless collars – oil Derivative assets 1 — Basis swaps – natural gas Derivative assets 2 8 Purchased call options – natural gas Derivative assets 3 (1) — Interest rate swaps Derivative assets 1 1 Fixed price swaps – natural gas Other long-term assets 4 6 Fixed price swaps – oil Other long-term assets 2 6 Fixed price swaps – ethane Other long-term assets 1 1 Two-way costless collars – oil Other long-term assets 2 5 Three-way costless collars – natural gas Other long-term assets 28 34 Basis swaps – natural gas Other long-term assets — 3 Purchased call options – natural gas Other long-term assets 4 6 Total derivative assets $ 128 $ 191 Derivative Liabilities Balance Sheet Classification Fair Value (in millions) March 31, 2019 December 31, 2018 Derivatives not designated as hedging instruments: Purchased fixed price swap – oil Derivative liabilities $ 2 $ 6 Fixed price swaps – natural gas Derivative liabilities 3 9 Fixed price swaps – oil Derivative liabilities 1 — Fixed price swaps – ethane Derivative liabilities — 3 Two-way costless collars – natural gas Derivative liabilities 2 7 Two-way costless collars – oil Derivative liabilities 1 — Three-way costless collars – natural gas Derivative liabilities 17 33 Three-way costless collars – oil Derivative liabilities 1 — Basis swaps – natural gas Derivative liabilities 16 18 Sold call options – natural gas Derivative liabilities 7 3 Fixed price swaps – natural gas Other long-term liabilities — 1 Two-way costless collars – oil Other long-term liabilities — 1 Three-way costless collars – natural gas Other long-term liabilities 27 35 Basis swap – natural gas Other long-term liabilities 7 4 Sold call options – natural gas Other long-term liabilities 13 19 Total derivative liabilities $ 97 $ 139 (1) Includes $1 million in premiums paid related to certain natural gas purchased call options recognized as a component of derivative assets within current assets on the consolidated balance sheet at March 31, 2019. As certain natural gas purchased call options settle, the premium will be amortized and recognized as a component of gain (loss) on derivatives on the consolidated statements of operations. |
Summary of Before Tax Effect of Fair Value Hedges not Designated for Hedge Accounting | The following tables summarize the before-tax effect of the Company’s derivative instruments on the consolidated statements of operations for the three months ended March 31, 2019 and 2018 : Unsettled Gain (Loss) on Derivatives Recognized in Earnings Derivative Instrument Consolidated Statement of Operations Classification of Gain (Loss) on Derivatives, Unsettled For the three months ended March 31, 2019 2018 (in millions) Purchased fixed price swaps – oil Gain (Loss) on Derivatives $ 4 $ — Fixed price swaps – natural gas Gain (Loss) on Derivatives (2 ) (3 ) Fixed price swaps – oil Gain (Loss) on Derivatives (13 ) — Fixed price swaps – propane Gain (Loss) on Derivatives (4 ) 3 Fixed price swaps – ethane Gain (Loss) on Derivatives 7 — Two-way costless collars – natural gas Gain (Loss) on Derivatives (1 ) 3 Two-way costless collars – oil Gain (Loss) on Derivatives (7 ) — Three-way costless collars – natural gas Gain (Loss) on Derivatives 2 (5 ) Basis swaps – natural gas Gain (Loss) on Derivatives (10 ) 20 Purchased call options – natural gas Gain (Loss) on Derivatives — 16 Sold call options – natural gas Gain (Loss) on Derivatives 2 (34 ) Interest rate swaps Gain (Loss) on Derivatives — 2 Total gain (loss) on unsettled derivatives $ (22 ) $ 2 Settled Gain (Loss) on Derivatives Recognized in Earnings (1) Derivative Instrument Consolidated Statement of Operations Classification of Gain (Loss) on Derivatives, Settled For the three months ended March 31, 2019 2018 (in millions) Purchased fixed price swaps – oil Gain (Loss) on Derivatives $ (1 ) $ — Sold fixed price swaps – natural gas Gain (Loss) on Derivatives (6 ) — Sold fixed price swaps – oil Gain (Loss) on Derivatives 2 — Sold fixed price swaps – propane Gain (Loss) on Derivatives 2 — Sold fixed price swaps – ethane Gain (Loss) on Derivatives 1 — Two-way costless collars – natural gas Gain (Loss) on Derivatives (1 ) 4 Two-way costless collars – oil Gain (Loss) on Derivatives 1 — Three-way costless collars – natural gas Gain (Loss) on Derivatives (4 ) 7 Sold basis swaps – natural gas Gain (Loss) on Derivatives (4 ) (21 ) Purchased call options – natural gas Gain (Loss) on Derivatives — 2 (2) Sold call options – natural gas Gain (Loss) on Derivatives — (1 ) Total loss on settled derivatives $ (10 ) $ (9 ) Total loss on derivatives $ (32 ) $ (7 ) (1) The Company calculates gain (loss) on derivatives, settled, as the summation of gains and losses on positions that settled within the period. (2) Includes $1 million |
Reclassifications from Accumu_2
Reclassifications from Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | The following tables detail the components of accumulated other comprehensive income and the related tax effects for the three months ended March 31, 2019 : (in millions) Pension and Other Postretirement Foreign Currency Total Beginning balance December 31, 2018 $ (22 ) $ (14 ) $ (36 ) Other comprehensive income before reclassifications — — — Amounts reclassified from other comprehensive income (1) — — — Net current-period other comprehensive income — — — Ending balance March 31, 2019 $ (22 ) $ (14 ) $ (36 ) (1) |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | Details about Accumulated Other Affected Line Item in the Amount Reclassified from Accumulated Other Comprehensive Income For the three months ended March 31, 2019 (in millions) Pension and other postretirement: Amortization of prior service cost and net gain (1) Other Income (Loss), Net $ — Benefit from income taxes — Net income $ — Total reclassifications for the period Net income $ — (1) See Note 15 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Carrying Amount and Estimated Fair Values of Financial Instruments | The carrying amounts and estimated fair values of the Company’s financial instruments as of March 31, 2019 and December 31, 2018 were as follows: March 31, 2019 December 31, 2018 (in millions) Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents $ 366 $ 366 $ 201 $ 201 2018 revolving credit facility due April 2023 — — — — Senior notes (1) 2,342 2,352 2,342 2,190 Derivative instruments, net 31 (2) 31 (2) 52 52 (1) Excludes unamortized debt issuance costs and debt discounts. (2) Includes $1 million in premiums paid related to certain natural gas purchased call options recognized as a component of derivative assets within current assets on the consolidated balance sheet. |
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below: March 31, 2019 Fair Value Measurements Using: (in millions) Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets (Liabilities) at Fair Value Assets Fixed price swap – natural gas $ — $ 29 $ — $ 29 Fixed price swap – oil — 7 — 7 Fixed price swap – propane — 7 — 7 Fixed price swap – ethane — 12 — 12 Two-way costless collar – natural gas — 5 — 5 Two-way costless collar – oil — 4 — 4 Three-way costless collar – natural gas — 53 — 53 Three-way costless collar - oil — 1 — 1 Basis swap – natural gas — 2 — 2 Purchased call option – natural gas (1) — 7 — 7 Interest rate swap — 1 — 1 Liabilities Purchase fixed price swap – oil — (2 ) — (2 ) Fixed price swap – natural gas — (3 ) — (3 ) Fixed price swap – oil — (1 ) — (1 ) Two-way costless collar – natural gas — (2 ) — (2 ) Two-way costless collar – oil — (1 ) — (1 ) Three-way costless collar – natural gas — (44 ) — (44 ) Three-way costless collar – oil — (1 ) — (1 ) Basis swap – natural gas — (23 ) — (23 ) Sold call option – natural gas — (20 ) — (20 ) Total $ — $ 31 $ — $ 31 (1) Includes $1 million in premiums paid related to certain natural gas purchased call options recognized as a component of derivative assets within current assets on the consolidated balance sheet at March 31, 2019. As certain natural gas purchased call options settle, the premium will be amortized and recognized as a component of gain (loss) on derivatives on the consolidated statements of operations. December 31, 2018 Fair Value Measurements Using: (in millions) Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets (Liabilities) at Fair Value Assets Fixed price swap – natural gas $ — $ 38 $ — $ 38 Fixed price swap – oil — 19 — 19 Fixed price swap – propane — 11 — 11 Fixed price swap – ethane — 8 — 8 Two-way costless collar – natural gas — 11 — 11 Two-way costless collar – oil — 11 — 11 Three-way costless collar – natural gas — 75 — 75 Basis swap – natural gas — 11 — 11 Purchased call option – natural gas — 6 — 6 Interest rate swap — 1 — 1 Liabilities Purchase fixed price swap – oil — (6 ) — (6 ) Fixed price swap – natural gas — (10 ) — (10 ) Fixed price swap – ethane — (3 ) — (3 ) Two-way costless collar – natural gas — (7 ) — (7 ) Two-way costless collar – oil — (1 ) — (1 ) Three-way costless collar – natural gas — (68 ) — (68 ) Basis swap – natural gas — (22 ) — (22 ) Sold call option – natural gas — (22 ) — (22 ) Total $ — $ 52 $ — $ 52 |
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) | 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 months ended March 31, 2019 and 2018 . The fair values of Level 3 derivative instruments were estimated using proprietary valuation models that utilized both market observable and unobservable parameters. Level 3 instruments presented in the table consisted of net derivatives valued using pricing models incorporating assumptions that, in the Company’s judgment, reflected reasonable assumptions a marketplace participant would have used as of March 31, 2018 . Commodity derivatives previously presented as Level 3 were transferred to Level 2 in the second quarter of 2018 as the Company moved from using proprietary volatility inputs and forward curves to more widely available published information, increasing market observability. For the three months ended March 31, (in millions) 2019 2018 Balance at beginning of period $ — $ 22 Total gains (losses): Included in earnings — (9 ) Settlements (1) — 9 Transfers into/out of Level 3 — — Balance at end of period $ — $ 22 Change in gains (losses) included in earnings relating to derivatives still held as of March 31 $ — $ — (1) Includes $1 million amortization of premiums paid related to certain natural gas call options for the three months ended March 31, 2018 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Components of Debt | The components of debt as of March 31, 2019 and December 31, 2018 consisted of the following: March 31, 2019 (in millions) Debt Instrument Unamortized Issuance Expense Unamortized Debt Discount Total Current portion of long-term debt: 4.05% Senior Notes due January 2020 (1) $ 52 $ — $ — $ 52 Total current portion of long-term debt $ 52 $ — $ — $ 52 Long-term debt: Variable rate (3.923% at March 31, 2019) 2018 revolving credit facility, due April 2023 $ — $ — (2) $ — $ — 4.10% Senior Notes due March 2022 213 (1 ) — 212 4.95% Senior Notes due January 2025 (1) 927 (7 ) (1 ) 919 7.50 % Senior Notes due April 2026 650 (8 ) — 642 7.75 % Senior Notes due October 2027 500 (6 ) — 494 Total long-term debt $ 2,290 $ (22 ) $ (1 ) $ 2,267 Total debt $ 2,342 $ (22 ) $ (1 ) $ 2,319 December 31, 2018 (in millions) Debt Instrument Unamortized Issuance Expense Unamortized Debt Discount Total Long-term debt: Variable rate (3.920% at December 31, 2018) 2018 term loan facility, due April 2023 $ — $ — (2) $ — $ — 4.05% Senior Notes due January 2020 (1) 52 — — 52 4.10% Senior Notes due March 2022 213 (1 ) — 212 4.95% Senior Notes due January 2025 (1) 927 (7 ) (1 ) 919 7.50% Senior Notes due April 2026 650 (8 ) — 642 7.75% Senior Notes due October 2027 500 (7 ) — 493 Total long-term debt $ 2,342 $ (23 ) $ (1 ) $ 2,318 (1) In February and June 2016, Moody’s and S&P downgraded certain senior notes, increasing the interest rates by 175 basis points effective July 2016 . As a result of the downgrades, interest rates increased to 5.80% for the 2020 Notes and 6.70% for the 2025 Notes. In April and May 2018, S&P and Moody’s upgraded certain senior notes. As a result of these upgrades, interest rates decreased to 5.30% for the 2020 Notes and 6.20% for the 2025 Notes effective July 2018 . The first coupon payment to the bondholders at the lower interest rate was paid in January 2019 . (2) At March 31, 2019 and December 31, 2018 , unamortized issuance expense of $10 million and $11 million, respectively, associated with the 2018 revolving credit facility is classified as other long-term assets on the consolidated balance sheets. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Obligation under Transportation Agreements | As of March 31, 2019 , future payments under non-cancelable firm transportation and gathering agreements were as follows: Payments Due by Period (in millions) Total Less than 1 Year 1 to 3 Years 3 to 5 Years 5 to 8 Years More than 8 Years Infrastructure currently in service $ 7,583 $ 723 $ 1,304 $ 1,135 $ 1,520 $ 2,901 Pending regulatory approval and/or construction (1) 1,411 4 113 167 285 842 Total transportation charges $ 8,994 $ 727 $ 1,417 $ 1,302 $ 1,805 $ 3,743 (1) |
Pension Plan and Other Postre_2
Pension Plan and Other Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefit Costs | The Company maintains defined pension and other postretirement benefit plans, which cover substantially all of the Company’s employees. Net periodic pension costs include the following components for the three months ended March 31, 2019 and 2018 : Pension Benefits Consolidated Statements of Operations Classification of Net Periodic Benefit Cost (1) For the three months ended March 31, (in millions) 2019 2018 Service cost General and administrative expenses $ 2 $ 3 Interest cost Other Income (Loss), Net 1 2 Expected return on plan assets Other Income (Loss), Net (2 ) (2 ) Amortization of prior service cost Other Income (Loss), Net — — Amortization of net loss Other Income (Loss), Net 1 — Net periodic benefit cost $ 2 $ 3 (1) In the first quarter of 2018, the Company adopted Accounting Standards Update No. 2017-07, which requires the service cost component to be disaggregated from the other components of net benefit cost, which are to be presented outside of income from operations. See Note 18 – New Accounting Pronouncements |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Share-based Compensation [Abstract] | |
Schedule of Stock-Based Compensation Costs | The Company recognized the following amounts in total employee stock-based compensation costs for the three months ended March 31, 2019 and 2018 : For the three months ended March 31, (in millions) 2019 2018 Stock-based compensation cost – expensed $ 7 $ 5 Stock-based compensation cost – capitalized 4 3 |
Schedule of Equity-Classified Stock-Based Compensation Costs | The Company recognized the following amounts in employee equity-classified stock-based compensation costs for the three months ended March 31, 2019 and 2018 : For the three months ended March 31, (in millions) 2019 2018 Equity-classified awards – expensed $ 2 $ 4 Equity-classified awards – capitalized 1 3 |
Summary of Equity-Classified Stock Option Activity | The following table summarizes equity-classified stock option activity for the three months ended March 31, 2019 and provides information for options outstanding and options exercisable as of March 31, 2019 : Number of Options Weighted Average Exercise Price (in thousands) Outstanding at December 31, 2018 5,178 $ 17.06 Granted — $ — Exercised — $ — Forfeited or expired (58 ) $ 15.74 Outstanding at March 31, 2019 5,120 $ 17.07 Exercisable at March 31, 2019 4,604 $ 18.16 |
Summary of Equity-Classified Restricted Stock Activity | The following table summarizes equity-classified restricted stock activity for the three months ended March 31, 2019 and provides information for unvested shares as of March 31, 2019 : Number of Shares Weighted Average Fair Value (in thousands) Unvested shares at December 31, 2018 2,717 $ 7.91 Granted 9 $ 3.72 Vested (608 ) $ 8.74 Forfeited (145 ) $ 8.38 Unvested shares at March 31, 2019 1,973 $ 7.61 |
Summary of Equity-Classified Performance Units Activity | The following table summarizes equity-classified performance unit activity for the three months ended March 31, 2019 and provides information for unvested units as of March 31, 2019 . The performance unit awards granted in 2017 include a market condition based exclusively on the fair value of the Total Shareholder Return (“TSR”), as calculated by a Monte Carlo model. The total fair value of the performance units is amortized to compensation expense on a straight line basis over the vesting period of the award. The grant date fair value is calculated using the closing price of the Company’s common stock at the grant date. Number of Shares (1) Weighted Average Fair Value (in thousands) Unvested units at December 31, 2018 598 $ 10.01 Granted — $ — Vested (371 ) $ 9.73 Forfeited (30 ) $ 10.47 Unvested units at March 31, 2019 197 $ 10.47 (1) The actual payout of shares may range from a minimum of zero shares to a maximum of two shares per unit contingent upon TSR. The performance units have a three-year vesting term and the actual disbursement of shares, if any, is determined during the first quarter following the end of the three -year vesting period. |
Schedule of Liability-Classified Stock-Based Compensation Costs | The Company recognized the following amounts in employee liability-classified stock-based compensation costs for the three months ended March 31, 2019 : For the three months ended March 31, (in millions) 2019 2018 Liability-classified stock-based compensation cost – expensed $ 5 $ 1 Liability-classified stock-based compensation cost – capitalized 3 — |
Summary of Liability-Classified Restricted Stock Unit Activity | As of March 31, 2019 , there was $61 million of total unrecognized compensation cost related to liability-classified restricted stock units that is expected to be recognized over a weighted-average period of three years . Number of Units Weighted Average Fair Value (in thousands) Unvested shares at December 31, 2018 8,202 $ 3.41 Granted 8,659 $ 4.34 Vested (2,120 ) $ 4.29 Forfeited (504 ) $ 3.85 Unvested units at March 31, 2019 14,237 $ 4.69 |
Summary of Liability-Classified Performance Unit Activity | Number of Shares Weighted Average Fair Value (in thousands) Unvested shares at December 31, 2018 2,803 $ 3.41 Granted 2,757 $ 4.34 Vested — $ — Forfeited (119 ) $ 4.65 Unvested units at March 31, 2019 5,441 $ 4.69 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary of Financial Information for Company's Reportable Segments | 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 2018 Annual Report. 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, gain (loss) on derivatives and other income (loss). The “Other” column includes items not related to the Company’s reportable segments, including real estate and corporate items. E&P Midstream Other Total Three months ended March 31, 2019 (in millions) Revenues from external customers $ 551 $ 439 $ — $ 990 Intersegment revenues (9 ) 502 — 493 Depreciation, depletion and amortization expense 110 2 — 112 Operating income 210 (1) 3 — 213 Interest expense (2) 14 — — 14 Loss on derivatives (32 ) — — (32 ) Other income, net 1 — — 1 Benefit from income taxes (2) (426 ) — — (426 ) Assets 5,562 (3) 342 542 (4) 6,446 Capital investments (5) 325 — — 325 Three months ended March 31, 2018 Revenues from external customers $ 643 $ 277 $ — $ 920 Intersegment revenues (6 ) 619 — 613 Depreciation, depletion and amortization expense 117 26 (7) — 143 Operating income (6) 238 17 — 255 Interest expense (2) 39 — — 39 Loss on derivatives (7 ) — — (7 ) Other loss, net — (1 ) — (1 ) Assets 5,346 (3) 1,217 1,150 (4) 7,713 Capital investments (5) 334 4 — 338 (1) Operating income for the E&P segment includes $3 million of restructuring charges for the three months ended March 31, 2019 . (2) Interest expense and the benefit from income taxes by segment is an allocation of corporate amounts as they are incurred at the corporate level. (3) Includes office, technology, water infrastructure, drilling rigs and other ancillary equipment not directly related to natural gas and oil properties. Also includes deferred tax assets which are an allocation of corporate amounts as they are incurred at the corporate level. (4) Other assets represent corporate assets not allocated to segments and assets for non-reportable segments. At March 31, 2019 and 2018, other assets included approximately $366 million and $958 million , respectively, in cash and cash equivalents. (5) Capital investments include increases of $66 million and $33 million for the three months ended March 31, 2019 and 2018 , respectively, relating to the change in accrued expenditures between years. (6) Includes the impact of Fayetteville Shale-related E&P and Midstream operations which were divested on December 3, 2018. (7) Includes a $10 million impairment related to certain non-core gathering assets. |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Statements Of Operations | CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in millions) Parent Guarantors Non-Guarantors Eliminations Consolidated Three months ended March 31, 2019 Operating Revenues: Gas sales $ — $ 430 $ — $ — $ 430 Oil sales — 39 — — 39 NGL sales — 81 — — 81 Marketing — 438 — — 438 Other — 2 — — 2 — 990 — — 990 Operating Costs and Expenses: Marketing purchases — 441 — — 441 Operating expenses — 165 — — 165 General and administrative expenses — 37 — — 37 Restructuring charges — 3 — — 3 Depreciation, depletion and amortization — 112 — — 112 Taxes, other than income taxes — 19 — — 19 — 777 — — 777 Operating Income — 213 — — 213 Interest Expense, Net 14 — — — 14 Loss on Derivatives — (32 ) — — (32 ) Other Income, Net — 1 — — 1 Equity in Earnings of Subsidiaries 608 — — (608 ) — Income (Loss) Before Income Taxes 594 182 — (608 ) 168 Benefit from Income Taxes — (426 ) — — (426 ) Net Income (Loss) 594 608 — (608 ) 594 Net Income (Loss) $ 594 $ 608 $ — $ (608 ) $ 594 Other comprehensive income — — — — — Comprehensive Income (Loss) $ 594 $ 608 $ — $ (608 ) $ 594 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in millions) Parent Guarantors Non-Guarantors Eliminations Consolidated Three months ended March 31, 2018 Operating Revenues: Gas sales $ — $ 540 $ — $ — $ 540 Oil sales — 35 — — 35 NGL sales — 65 — — 65 Marketing — 253 — — 253 Gas gathering — 24 — — 24 Other — 3 — — 3 — 920 — — 920 Operating Costs and Expenses: Marketing purchases — 255 — — 255 Operating expenses — 189 — — 189 General and administrative expenses — 55 — — 55 Depreciation, depletion and amortization — 143 — — 143 Taxes, other than income taxes — 23 — — 23 — 665 — — 665 Operating Income — 255 — — 255 Interest Expense, Net 39 — — — 39 Loss on Derivatives — (7 ) — — (7 ) Other Loss, Net — (1 ) — — (1 ) Equity in Earnings of Subsidiaries 247 — — (247 ) — Income (Loss) Before Income Taxes 208 247 — (247 ) 208 Provision (Benefit) for Income Taxes — — — — — Net Income (Loss) $ 208 $ 247 $ — $ (247 ) $ 208 Participating securities - mandatory convertible preferred stock 3 — — — 3 Net Income (Loss) Attributable to $ 205 $ 247 $ — $ (247 ) $ 205 Net Income (Loss) $ 208 $ 247 $ — $ (247 ) $ 208 Other comprehensive income — — — — — Comprehensive Income (Loss) $ 208 $ 247 $ — $ (247 ) $ 208 |
Condensed Consolidating Balance Sheets | CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in millions) Parent Guarantors Non-Guarantors Eliminations Consolidated March 31, 2019 : ASSETS Cash and cash equivalents $ 366 $ — $ — $ — $ 366 Accounts receivable, net — 390 — — 390 Other current assets 11 120 — — 131 Total current assets 377 510 — — 887 Intercompany receivables 7,744 — — (7,744 ) — Natural gas and oil properties, using the full cost method — 24,433 53 — 24,486 Gathering systems — 11 27 — 38 Other 197 312 — — 509 Less: Accumulated depreciation, depletion and amortization (159 ) (19,947 ) (56 ) — (20,162 ) Total property and equipment, net 38 4,809 24 — 4,871 Investments in subsidiaries (equity method) — 23 — (23 ) — Other long-term assets 42 646 — — 688 TOTAL ASSETS $ 8,201 $ 5,988 $ 24 $ (7,767 ) $ 6,446 LIABILITIES AND EQUITY Accounts payable $ 124 $ 502 $ — $ — $ 626 Other current liabilities 189 128 — — 317 Total current liabilities 313 630 — — 943 Intercompany payables — 7,743 1 (7,744 ) — Long-term debt 2,267 — — — 2,267 Pension and other postretirement liabilities 43 — — — 43 Other long-term liabilities 47 209 — — 256 Negative carrying amount of subsidiaries, net 2,594 — — (2,594 ) — Total long-term liabilities 4,951 209 — (2,594 ) 2,566 Commitments and contingencies Total equity (accumulated deficit) 2,937 (2,594 ) 23 2,571 2,937 TOTAL LIABILITIES AND EQUITY $ 8,201 $ 5,988 $ 24 $ (7,767 ) $ 6,446 CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in millions) Parent Guarantors Non-Guarantors Eliminations Consolidated December 31, 2018 ASSETS Cash and cash equivalents $ 201 $ — $ — $ — $ 201 Accounts receivable, net 4 577 — — 581 Other current assets 8 166 — — 174 Total current assets 213 743 — — 956 Intercompany receivables 7,932 — — (7,932 ) — Natural gas and oil properties, using the full cost method — 24,128 52 — 24,180 Gathering systems — 11 27 — 38 Other 197 290 — — 487 Less: Accumulated depreciation, depletion and amortization (154 ) (19,840 ) (55 ) — (20,049 ) Total property and equipment, net 43 4,589 24 — 4,656 Investments in subsidiaries (equity method) — 24 — (24 ) — Other long-term assets 19 166 — — 185 TOTAL ASSETS $ 8,207 $ 5,522 $ 24 $ (7,956 ) $ 5,797 LIABILITIES AND EQUITY Accounts payable $ 113 $ 496 $ — $ — $ 609 Other current liabilities 115 122 — — 237 Total current liabilities 228 618 — — 846 Intercompany payables — 7,932 — (7,932 ) — Long-term debt 2,318 — — — 2,318 Pension and other postretirement liabilities 46 — — — 46 Other long-term liabilities 54 171 — — 225 Negative carrying amount of subsidiaries, net 3,199 — — (3,199 ) — Total long-term liabilities 5,617 171 — (3,199 ) 2,589 Commitments and contingencies Total equity (accumulated deficit) 2,362 (3,199 ) 24 3,175 2,362 TOTAL LIABILITIES AND EQUITY $ 8,207 $ 5,522 $ 24 $ (7,956 ) $ 5,797 |
Condensed Consolidating Statements Of Cash Flows | CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) (in millions) Parent Guarantors Non-Guarantors Eliminations Consolidated Three months ended March 31, 2019 Net cash provided by (used in) operating activities $ 1,031 $ 19 $ — $ (608 ) $ 442 Investing activities: Capital investments 3 (261 ) — — (258 ) Other — — — — — Net cash used in investing activities 3 (261 ) — — (258 ) Financing activities Intercompany activities (850 ) 242 — 608 — Change in bank drafts outstanding 3 — — — 3 Purchase of treasury stock (21 ) — — — (21 ) Cash paid for tax withholding (1 ) — — — (1 ) Net cash provided by (used in) financing activities (869 ) 242 — 608 (19 ) Increase in cash and cash equivalents 165 — — — 165 Cash and cash equivalents at beginning of year 201 — — — 201 Cash and cash equivalents at end of period $ 366 $ — $ — $ — $ 366 Three months ended March 31, 2018 Net cash provided by (used in) operating activities $ 183 $ 428 $ — $ (247 ) $ 364 Investing activities: Capital investments (5 ) (297 ) — — (302 ) Other — 8 — — 8 Net cash used in investing activities (5 ) (289 ) — — (294 ) Financing activities Intercompany activities (116 ) (131 ) — 247 — Preferred stock dividend (27 ) — — — (27 ) Cash paid for tax withholding (1 ) — — — (1 ) Net cash provided by (used in) financing activities (144 ) (131 ) — 247 (28 ) Increase in cash and cash equivalents 34 8 — — 42 Cash and cash equivalents at beginning of year 914 2 — — 916 Cash and cash equivalents at end of period $ 948 $ 10 $ — $ — $ 958 |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2019segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of segments | 2 |
Divestitures (Details)
Divestitures (Details) - USD ($) $ in Millions | Dec. 03, 2018 | Aug. 30, 2018 | Dec. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Contractual commitments assumed by buyer | $ 188 | ||||
Potential amount to be reimbursed to buyer | 94 | ||||
Liability for estimated future payments | $ 88 | 78 | $ 88 | ||
Treasury stock acquired | 201 | $ 21 | $ 180 | ||
Commissions | $ 1 | ||||
Treasury stock acquired (in shares) | 44,000,000 | 5,260,687 | 39,061,269 | ||
Fayetteville Shale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Ownership interest prior to disposal | 100.00% | ||||
Consideration | $ 1,865 | ||||
Proceeds from disposal | $ 1,650 | ||||
Adjustment due to differences from economic effective date to close date | $ 215 | ||||
Senior Notes | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Repayment of debt | $ 914 | ||||
Repayments of long-term debt | 900 | ||||
Cash paid for interest | $ 9 |
Restructuring Charges (Summary
Restructuring Charges (Summary of Restructuring Charges) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring charges | $ 3 | $ 0 | |
E&P | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring charges | 3 | ||
Workforce Reduction | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring liability | 2 | $ 5 | |
Severance (including payroll taxes) | 2 | ||
Office consolidation | 1 | ||
Total restructuring charges | 3 | ||
Workforce Reduction | E&P | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring charges | $ 3 |
Restructuring Charges (Restruct
Restructuring Charges (Restructuring Rollforward) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring Reserve [Roll Forward] | ||
Additions | $ 3 | $ 0 |
Workforce Reduction | ||
Restructuring Reserve [Roll Forward] | ||
Liability at December 31, 2018 | 5 | |
Additions | 3 | |
Distributions | (6) | |
Liability at March 31, 2019 | $ 2 |
Leases (New Accounting) (Detail
Leases (New Accounting) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Right-of-use asset | $ 100 | |
Lease liability balance | $ 100 | |
ASU 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Right-of-use asset | $ 105 | |
Lease liability balance | $ 105 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended |
Dec. 31, 2018 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Contract asset associated with revenues from contracts with customers | $ 0 | |
Contract liability associated with revenues from contracts with customers | $ 0 | |
Minimum | NGL sales | ||
Disaggregation of Revenue [Line Items] | ||
Payment terms | 30 days | |
Minimum | Marketing | ||
Disaggregation of Revenue [Line Items] | ||
Payment terms | 30 days | |
Minimum | Gas gathering | ||
Disaggregation of Revenue [Line Items] | ||
Payment terms | 30 days | |
Maximum | NGL sales | ||
Disaggregation of Revenue [Line Items] | ||
Payment terms | 60 days | |
Maximum | Marketing | ||
Disaggregation of Revenue [Line Items] | ||
Payment terms | 60 days | |
Maximum | Gas gathering | ||
Disaggregation of Revenue [Line Items] | ||
Payment terms | 60 days | |
Fayetteville Shale | ||
Disaggregation of Revenue [Line Items] | ||
Percentage of assets sold | 100.00% |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Millions | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
Operating leases not yet commenced (less than) | $ 1.5 |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregation of Revenue by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | $ 990 | $ 920 |
E&P | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 551 | 643 |
Midstream | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 439 | 277 |
Operating Segments | E&P | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 542 | 637 |
Operating Segments | Midstream | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 941 | 896 |
Intersegment Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 493 | 613 |
Intersegment Revenues | E&P | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | (9) | (6) |
Intersegment Revenues | Midstream | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 502 | 619 |
Gas sales | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 430 | 540 |
Gas sales | Operating Segments | E&P | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 421 | 535 |
Gas sales | Operating Segments | Midstream | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 0 | 0 |
Gas sales | Intersegment Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | (9) | (5) |
Oil sales | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 39 | 35 |
Oil sales | Operating Segments | E&P | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 39 | 34 |
Oil sales | Operating Segments | Midstream | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 0 | 0 |
Oil sales | Intersegment Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 0 | (1) |
NGL sales | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 81 | 65 |
NGL sales | Operating Segments | E&P | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 81 | 65 |
NGL sales | Operating Segments | Midstream | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 0 | 0 |
NGL sales | Intersegment Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 0 | 0 |
Marketing | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 438 | 253 |
Marketing | Operating Segments | E&P | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 0 | 0 |
Marketing | Operating Segments | Midstream | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 940 | 829 |
Marketing | Intersegment Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 502 | 576 |
Marketing | Intersegment Revenues | Midstream | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 502 | 576 |
Gas gathering | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 0 | 24 |
Gas gathering | Operating Segments | E&P | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 0 | |
Gas gathering | Operating Segments | Midstream | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 67 | |
Gas gathering | Intersegment Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 43 | |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 2 | 3 |
Other | Operating Segments | E&P | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 1 | 3 |
Other | Operating Segments | Midstream | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 1 | 0 |
Other | Intersegment Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | $ 0 | $ 0 |
Leases (Components of Lease Cos
Leases (Components of Lease Costs) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 11 |
Short-term lease cost | 12 |
Variable lease cost | 0 |
Total lease cost | $ 23 |
Revenue Recognition (Disaggre_2
Revenue Recognition (Disaggregation of Revenue on Geographic Basis) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | $ 990 | $ 920 |
E&P | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 551 | 643 |
Operating Segments | E&P | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 542 | 637 |
Operating Segments | E&P | Northeast Appalachia | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 348 | 327 |
Operating Segments | E&P | Southwest Appalachia | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 193 | 156 |
Operating Segments | E&P | Fayetteville Shale | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | 0 | 152 |
Operating Segments | E&P | Other | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenues | $ 1 | $ 2 |
Leases (Supplemental Informatio
Leases (Supplemental Information) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 11 |
Right-of use assets obtained in exchange for new operating liabilities | 3 |
Right-of-use asset balance | 100 |
Lease liability balance: (in millions) | |
Short-term operating leases | 38 |
Long-term operating leases | 62 |
Total operating leases | $ 100 |
Weighted average remaining lease term | 4 years 1 month 6 days |
Weighted average discount rate | 5.86% |
Revenue Recognition (Reconcilia
Revenue Recognition (Reconciliation of Accounts Receivable) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Receivables from contracts with customers | $ 297 | $ 494 |
Other accounts receivable | 93 | 87 |
Total accounts receivable | $ 390 | $ 581 |
Leases (Maturity Schedule) (Det
Leases (Maturity Schedule) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
2019 | $ 33 | $ 38 |
2020 | 32 | 28 |
2021 | 18 | 14 |
2022 | 9 | 6 |
2023 | 8 | 5 |
2024 | 4 | |
Thereafter 2023 | 4 | |
Thereafter 2024 | 9 | |
Total undiscounted lease liability | 113 | $ 95 |
Imputed interest | (13) | |
Total discounted lease liability | $ 100 |
Cash and Cash Equivalents (Summ
Cash and Cash Equivalents (Summary of Cash and Cash Equivalents) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Cash and Cash Equivalents [Abstract] | ||
Cash | $ 89 | $ 32 |
Marketable securities | 277 | 169 |
Total | $ 366 | $ 201 |
Natural Gas and Oil Properties
Natural Gas and Oil Properties (Narrative) (Details) | 3 Months Ended | |
Mar. 31, 2019derivative_position$ / bbl$ / MMBTU | Mar. 31, 2018derivative_position$ / bbl$ / MMBTU | |
Natural Gas and Oil Properties [Line Items] | ||
Natural gas, oil and NGL reserves discount | 10.00% | |
Period of time needed to calculate ceiling value of reserves | 12 months | |
Number of hedge positions designated for hedge accounting | derivative_position | 0 | 0 |
Natural Gas | Henry Hub | ||
Natural Gas and Oil Properties [Line Items] | ||
Full cost ceiling test, price per MMBtu (in dollars per MMBtu) | $ / MMBTU | 3.07 | 3 |
Oil | West Texas Intermediate | ||
Natural Gas and Oil Properties [Line Items] | ||
Full cost ceiling test, price per barrel (in dollars per bbl) | 63 | 49.94 |
NGL | West Texas Intermediate | ||
Natural Gas and Oil Properties [Line Items] | ||
Full cost ceiling test, price per barrel (in dollars per bbl) | 17.65 | 14.90 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2018 | Jan. 31, 2015 | Mar. 31, 2019 | Dec. 31, 2018 | Jan. 12, 2018 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Treasury stock acquired (in shares) | 44,000,000 | 5,260,687 | 39,061,269 | ||
Treasury stock acquired | $ 201 | $ 21 | $ 180 | ||
Treasury stock acquired, average cost per share (in dollars per share) | $ 3.84 | $ 4.63 | |||
Depositary Shares | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Shares issued (in shares) | 34,500,000 | ||||
Common Stock | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Shares issued upon conversion (in shares) | 74,998,614 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net income | $ 594 | $ 208 |
Participating securities - mandatory convertible preferred stock | 0 | 3 |
Net Income Attributable to Common Stock | $ 594 | $ 205 |
Number of common shares: | ||
Weighted average outstanding (in shares) | 539,721,751 | 571,297,804 |
Issued upon assumed exercise of outstanding stock options (in shares) | 0 | 0 |
Effect of issuance of non-vested restricted common stock (in shares) | 665,435 | 914,096 |
Effect of issuance of non-vested performance units (in shares) | 933,301 | 1,632,559 |
Weighted average and potential dilutive outstanding (in shares) | 541,320,487 | 573,844,459 |
Earnings per common share: | ||
Basic (in dollars per share) | $ 1.10 | $ 0.36 |
Diluted (in dollars per share) | $ 1.10 | $ 0.36 |
Earnings Per Share (Schedule _2
Earnings Per Share (Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share) (Details) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 7,270,196 | 15,867,213 |
Unexercised stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 5,128,640 | 0 |
Unvested share-based payment | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1,881,355 | 5,292,454 |
Performance units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 260,201 | 574,944 |
Mandatory convertible preferred stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 9,999,815 |
Derivatives and Risk Manageme_3
Derivatives and Risk Management (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Commodities | ||
Derivative [Line Items] | ||
Derivative assets | $ 30 | |
Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative assets | 1 | $ 1 |
Not Designated as Hedging Instrument | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 170 |
Derivatives and Risk Manageme_4
Derivatives and Risk Management (Schedule of Derivative Instruments Notional Amount, Weighted Average Contract Prices and Fair Value) (Details) - Not Designated as Hedging Instrument MBbls in Thousands, $ in Millions, Bcf in Billions | 3 Months Ended |
Mar. 31, 2019USD ($)$ / bbl$ / MMBTUMBblsBcf | |
Sold Fixed Price Swaps - 2019 | Natural Gas | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | Bcf | 195 |
Average price (in dollars per MMBtu, Bbl) | $ / MMBTU | 2.90 |
Fair Value | $ 23 |
Sold Fixed Price Swaps - 2019 | Oil | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | MBbls | 921 |
Average price (in dollars per MMBtu, Bbl) | $ / bbl | 62.13 |
Fair Value | $ 1 |
Sold Fixed Price Swaps - 2019 | Propane | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | MBbls | 2,028 |
Average price (in dollars per MMBtu, Bbl) | $ / bbl | 31.25 |
Fair Value | $ 7 |
Sold Fixed Price Swaps - 2019 | Ethane | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | MBbls | 2,778 |
Average price (in dollars per MMBtu, Bbl) | $ / bbl | 13.90 |
Fair Value | $ 10 |
Two-way Costless-collars - 2019 | Natural Gas | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | Bcf | 44 |
Fair Value | $ 3 |
Two-way Costless-collars - 2019 | Oil | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | MBbls | 248 |
Fair Value | $ 1 |
Two-way Costless-collars - 2019 Sold Calls | Natural Gas | |
Derivative [Line Items] | |
Cap price (in dollars per MMBtu, Bbl) | $ / MMBTU | 2.92 |
Two-way Costless-collars - 2019 Sold Calls | Oil | |
Derivative [Line Items] | |
Cap price (in dollars per MMBtu, Bbl) | $ / bbl | 72.30 |
Three-way Costless-collars - 2019 | Natural Gas | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | Bcf | 101 |
Fair Value | $ 13 |
Three-way Costless-collars - 2019 | Oil | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | MBbls | 412 |
Three-way Costless-collars - 2019 Sold Calls | Natural Gas | |
Derivative [Line Items] | |
Cap price (in dollars per MMBtu, Bbl) | $ / MMBTU | 3.22 |
Three-way Costless-collars - 2019 Sold Calls | Oil | |
Derivative [Line Items] | |
Cap price (in dollars per MMBtu, Bbl) | $ / bbl | 63.67 |
Financial protection on production - 2019 | Natural Gas | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | Bcf | 340 |
Fair Value | $ 39 |
Financial protection on production - 2019 | Oil | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | MBbls | 1,581 |
Fair Value | $ 2 |
Sold Fixed Price Swaps - 2020 | Natural Gas | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | Bcf | 24 |
Average price (in dollars per MMBtu, Bbl) | $ / MMBTU | 2.88 |
Fair Value | $ 3 |
Sold Fixed Price Swaps - 2020 | Oil | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | MBbls | 366 |
Average price (in dollars per MMBtu, Bbl) | $ / bbl | 65.68 |
Fair Value | $ 3 |
Sold Fixed Price Swaps - 2020 | Propane | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | MBbls | 824 |
Average price (in dollars per MMBtu, Bbl) | $ / bbl | 27.35 |
Sold Fixed Price Swaps - 2020 | Ethane | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | MBbls | 732 |
Average price (in dollars per MMBtu, Bbl) | $ / bbl | 13.49 |
Fair Value | $ 2 |
Two-way Costless-collars - 2020 | Oil | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | MBbls | 366 |
Fair Value | $ 2 |
Two-way Costless-collars - 2020 | Propane | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | MBbls | 366 |
Two-way Costless-collars - 2020 Sold Calls | Oil | |
Derivative [Line Items] | |
Cap price (in dollars per MMBtu, Bbl) | $ / bbl | 69.80 |
Two-way Costless-collars - 2020 Sold Calls | Propane | |
Derivative [Line Items] | |
Cap price (in dollars per MMBtu, Bbl) | $ / bbl | 29.40 |
Three-Way Costless Collars - 2020 | Natural Gas | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | Bcf | 122 |
Fair Value | $ (2) |
Three-way Costless-collars - 2020 Sold Calls | Natural Gas | |
Derivative [Line Items] | |
Cap price (in dollars per MMBtu, Bbl) | $ / MMBTU | 2.96 |
Financial protection on production - 2020 | Natural Gas | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | Bcf | 146 |
Fair Value | $ 1 |
Financial protection on production - 2020 | Oil | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | MBbls | 732 |
Fair Value | $ 5 |
Financial protection on production - 2020 | Propane | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | MBbls | 1,190 |
Three-way Costless-collars - 2021 | Natural Gas | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | Bcf | 37 |
Fair Value | $ (2) |
Three-Way Costless Collars - 2021 Sold Calls | Natural Gas | |
Derivative [Line Items] | |
Cap price (in dollars per MMBtu, Bbl) | $ / MMBTU | 2.93 |
Sold Basis Swaps - 2019 | Natural Gas | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | Bcf | 85 |
Basis differential per MMBtu | $ / MMBTU | (0.50) |
Fair Value | $ (13) |
Sold Basis Swaps - 2020 | Natural Gas | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | Bcf | 59 |
Basis differential per MMBtu | $ / MMBTU | (0.44) |
Fair Value | $ (8) |
Sold Basis Swaps | Natural Gas | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | Bcf | 144 |
Fair Value | $ (21) |
Purchased fixed price swaps | Oil | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | MBbls | 206 |
Average price (in dollars per MMBtu, Bbl) | $ / bbl | 69.10 |
Fair Value | $ (2) |
Sold fixed price swaps | Oil | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | MBbls | 1,127 |
Average price (in dollars per MMBtu, Bbl) | $ / bbl | 63.41 |
Fair Value | $ 3 |
Purchased Call Options 2019 | Natural Gas | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | Bcf | 30 |
Cap price (in dollars per MMBtu, Bbl) | $ / MMBTU | 3.50 |
Fair Value | $ 0 |
Purchased Call Options - 2020 | Natural Gas | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | Bcf | 68 |
Cap price (in dollars per MMBtu, Bbl) | $ / MMBTU | 3.63 |
Fair Value | $ 3 |
Purchased Call Options - 2021 | Natural Gas | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | Bcf | 57 |
Cap price (in dollars per MMBtu, Bbl) | $ / MMBTU | 3.52 |
Fair Value | $ 3 |
Purchased call options | Natural Gas | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | Bcf | 155 |
Fair Value | $ 6 |
Sold Call Options - 2019 | Natural Gas | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | Bcf | 39 |
Cap price (in dollars per MMBtu, Bbl) | $ / MMBTU | 3.50 |
Fair Value | $ (1) |
Sold Call Options - 2020 | Natural Gas | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | Bcf | 137 |
Cap price (in dollars per MMBtu, Bbl) | $ / MMBTU | 3.39 |
Fair Value | $ (10) |
Sold Call Options - 2021 | Natural Gas | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | Bcf | 114 |
Cap price (in dollars per MMBtu, Bbl) | $ / MMBTU | 3.33 |
Fair Value | $ (9) |
Sold call options | Natural Gas | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | Bcf | 290 |
Fair Value | $ (20) |
Purchased Fixed Price Swaps, Storage, 2019 | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | Bcf | 1 |
Average price (in dollars per MMBtu, Bbl) | $ / MMBTU | 2.87 |
Basis differential per MMBtu | $ / MMBTU | 0 |
Fair Value | $ 0 |
Purchased Basis Swaps Storage, 2019 | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | Bcf | 1 |
Average price (in dollars per MMBtu, Bbl) | $ / MMBTU | 0 |
Basis differential per MMBtu | $ / MMBTU | (0.53) |
Fair Value | $ 0 |
Storage 2019 | |
Derivative [Line Items] | |
Fair Value | $ 0 |
Fixed Price Swap, Storage, 2020 | |
Derivative [Line Items] | |
Volume (Bcf, MBbls) | Bcf | 1 |
Average price (in dollars per MMBtu, Bbl) | $ / MMBTU | 3.14 |
Basis differential per MMBtu | $ / MMBTU | 0 |
Fair Value | $ 0 |
Short Puts | Three-way Costless-collars - 2019 Sold Puts | Natural Gas | |
Derivative [Line Items] | |
Floor price (in dollars per MMBtu, Bbl) | $ / MMBTU | 2.46 |
Short Puts | Three-way Costless-collars - 2019 Sold Puts | Oil | |
Derivative [Line Items] | |
Floor price (in dollars per MMBtu, Bbl) | $ / bbl | 45 |
Short Puts | Three-way Costless-collars - 2020 Sold Puts | Natural Gas | |
Derivative [Line Items] | |
Floor price (in dollars per MMBtu, Bbl) | $ / MMBTU | 2.35 |
Short Puts | Three-Way Costless Collars - 2021 Sold Puts | Natural Gas | |
Derivative [Line Items] | |
Floor price (in dollars per MMBtu, Bbl) | $ / MMBTU | 2.35 |
Purchased Puts | Two-way Costless-collars - 2019 Purchased Puts | Natural Gas | |
Derivative [Line Items] | |
Floor price (in dollars per MMBtu, Bbl) | $ / MMBTU | 2.78 |
Purchased Puts | Two-way Costless-collars - 2019 Purchased Puts | Oil | |
Derivative [Line Items] | |
Floor price (in dollars per MMBtu, Bbl) | $ / bbl | 65 |
Purchased Puts | Three-way Costless-collars - 2019 Purchased Puts | Natural Gas | |
Derivative [Line Items] | |
Floor price (in dollars per MMBtu, Bbl) | $ / MMBTU | 2.88 |
Purchased Puts | Three-way Costless-collars - 2019 Purchased Puts | Oil | |
Derivative [Line Items] | |
Floor price (in dollars per MMBtu, Bbl) | $ / bbl | 55 |
Purchased Puts | Two-way Costless-collars - 2020 Purchased Puts | Oil | |
Derivative [Line Items] | |
Floor price (in dollars per MMBtu, Bbl) | $ / bbl | 60 |
Purchased Puts | Two-way Costless-collars - 2020 Purchased Puts | Propane | |
Derivative [Line Items] | |
Floor price (in dollars per MMBtu, Bbl) | $ / bbl | 25.20 |
Purchased Puts | Three-way Costless-collars - 2020 Purchased Puts | Natural Gas | |
Derivative [Line Items] | |
Floor price (in dollars per MMBtu, Bbl) | $ / MMBTU | 2.68 |
Purchased Puts | Three-Way Costless Collars - 2021 Purchased Puts | Natural Gas | |
Derivative [Line Items] | |
Floor price (in dollars per MMBtu, Bbl) | $ / MMBTU | 2.60 |
Derivatives and Risk Manageme_5
Derivatives and Risk Management (Balance Sheet Classification of Derivative Financial Instruments) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 128 | $ 191 |
Derivative liabilities | 97 | 139 |
Not Designated as Hedging Instrument | Interest rate swaps | Derivative assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 1 | 1 |
Natural Gas | Purchased call options | ||
Derivatives, Fair Value [Line Items] | ||
Premium paid | 1 | |
Natural Gas | Not Designated as Hedging Instrument | Fixed price swaps | Derivative assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 25 | 32 |
Natural Gas | Not Designated as Hedging Instrument | Fixed price swaps | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 4 | 6 |
Natural Gas | Not Designated as Hedging Instrument | Fixed price swaps | Derivative liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 3 | 9 |
Natural Gas | Not Designated as Hedging Instrument | Fixed price swaps | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 0 | 1 |
Natural Gas | Not Designated as Hedging Instrument | Two-way costless collars | Derivative assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 5 | 11 |
Natural Gas | Not Designated as Hedging Instrument | Two-way costless collars | Derivative liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 2 | 7 |
Natural Gas | Not Designated as Hedging Instrument | Three-way costless collars | Derivative assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 25 | 41 |
Natural Gas | Not Designated as Hedging Instrument | Three-way costless collars | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 28 | 34 |
Natural Gas | Not Designated as Hedging Instrument | Three-way costless collars | Derivative liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 17 | 33 |
Natural Gas | Not Designated as Hedging Instrument | Three-way costless collars | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 27 | 35 |
Natural Gas | Not Designated as Hedging Instrument | Basis swaps | Derivative assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 2 | 8 |
Natural Gas | Not Designated as Hedging Instrument | Basis swaps | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 3 |
Natural Gas | Not Designated as Hedging Instrument | Basis swaps | Derivative liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 16 | 18 |
Natural Gas | Not Designated as Hedging Instrument | Basis swaps | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 7 | 4 |
Natural Gas | Not Designated as Hedging Instrument | Sold call options | Derivative liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 7 | 3 |
Natural Gas | Not Designated as Hedging Instrument | Sold call options | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 13 | 19 |
Natural Gas | Not Designated as Hedging Instrument | Purchased call options | Derivative assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 3 | 0 |
Premium paid | 1 | |
Natural Gas | Not Designated as Hedging Instrument | Purchased call options | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 4 | 6 |
Oil | Not Designated as Hedging Instrument | Purchased fixed price swaps | Derivative liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 2 | 6 |
Oil | Not Designated as Hedging Instrument | Fixed price swaps | Derivative assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 5 | 13 |
Oil | Not Designated as Hedging Instrument | Fixed price swaps | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 2 | 6 |
Oil | Not Designated as Hedging Instrument | Fixed price swaps | Derivative liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 1 | 0 |
Oil | Not Designated as Hedging Instrument | Two-way costless collars | Derivative assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 2 | 6 |
Oil | Not Designated as Hedging Instrument | Two-way costless collars | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 2 | 5 |
Oil | Not Designated as Hedging Instrument | Two-way costless collars | Derivative liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 1 | 0 |
Oil | Not Designated as Hedging Instrument | Two-way costless collars | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 0 | 1 |
Oil | Not Designated as Hedging Instrument | Three-way costless collars | Derivative assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 1 | 0 |
Oil | Not Designated as Hedging Instrument | Three-way costless collars | Derivative liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 1 | 0 |
Propane | Not Designated as Hedging Instrument | Fixed price swaps | Derivative assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 7 | 11 |
Ethane | Not Designated as Hedging Instrument | Fixed price swaps | Derivative assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 11 | 7 |
Ethane | Not Designated as Hedging Instrument | Fixed price swaps | Other long-term assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 1 | 1 |
Ethane | Not Designated as Hedging Instrument | Fixed price swaps | Derivative liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ 0 | $ 3 |
Derivatives and Risk Manageme_6
Derivatives and Risk Management (Summary of Before Tax Effect of Fair Value Hedges not Designated for Hedge Accounting) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unsettled Gain (Loss) on Derivatives Recognized in Earnings | $ (22) | $ 2 |
Settled Gain (Loss) on Derivatives Recognized in Earnings | (10) | (9) |
Total gain (loss) on derivatives | (32) | (7) |
Purchased fixed price swaps | Oil | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unsettled Gain (Loss) on Derivatives Recognized in Earnings | 4 | 0 |
Settled Gain (Loss) on Derivatives Recognized in Earnings | (1) | 0 |
Fixed price swaps | Oil | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unsettled Gain (Loss) on Derivatives Recognized in Earnings | (13) | 0 |
Settled Gain (Loss) on Derivatives Recognized in Earnings | 2 | 0 |
Fixed price swaps | Natural Gas | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unsettled Gain (Loss) on Derivatives Recognized in Earnings | (2) | (3) |
Settled Gain (Loss) on Derivatives Recognized in Earnings | (6) | 0 |
Fixed price swaps | Propane | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unsettled Gain (Loss) on Derivatives Recognized in Earnings | (4) | 3 |
Settled Gain (Loss) on Derivatives Recognized in Earnings | 2 | 0 |
Fixed price swaps | Ethane | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unsettled Gain (Loss) on Derivatives Recognized in Earnings | 7 | 0 |
Settled Gain (Loss) on Derivatives Recognized in Earnings | 1 | 0 |
Two-way costless collars | Oil | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unsettled Gain (Loss) on Derivatives Recognized in Earnings | (7) | 0 |
Settled Gain (Loss) on Derivatives Recognized in Earnings | 1 | 0 |
Two-way costless collars | Natural Gas | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unsettled Gain (Loss) on Derivatives Recognized in Earnings | (1) | 3 |
Settled Gain (Loss) on Derivatives Recognized in Earnings | (1) | 4 |
Three-way costless collars | Natural Gas | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unsettled Gain (Loss) on Derivatives Recognized in Earnings | 2 | (5) |
Settled Gain (Loss) on Derivatives Recognized in Earnings | (4) | 7 |
Basis swaps | Natural Gas | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unsettled Gain (Loss) on Derivatives Recognized in Earnings | (10) | 20 |
Settled Gain (Loss) on Derivatives Recognized in Earnings | (4) | (21) |
Purchased call options | Natural Gas | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unsettled Gain (Loss) on Derivatives Recognized in Earnings | 0 | 16 |
Settled Gain (Loss) on Derivatives Recognized in Earnings | 0 | 2 |
Amortization of premium paid | 1 | |
Sold call options | Natural Gas | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unsettled Gain (Loss) on Derivatives Recognized in Earnings | 2 | (34) |
Settled Gain (Loss) on Derivatives Recognized in Earnings | 0 | (1) |
Interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unsettled Gain (Loss) on Derivatives Recognized in Earnings | $ 0 | $ 2 |
Reclassifications from Accumu_3
Reclassifications from Accumulated Other Comprehensive Income (Components of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance beginning | $ 2,362 | $ 1,979 |
Net current-period other comprehensive income | 0 | 0 |
Balance ending | 2,937 | 2,193 |
Pension and Other Postretirement | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance beginning | (22) | |
Other comprehensive income before reclassifications | 0 | |
Amounts reclassified from other comprehensive income | 0 | |
Net current-period other comprehensive income | 0 | |
Balance ending | (22) | |
Foreign Currency | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance beginning | (14) | |
Other comprehensive income before reclassifications | 0 | |
Amounts reclassified from other comprehensive income | 0 | |
Net current-period other comprehensive income | 0 | |
Balance ending | (14) | |
Total | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance beginning | (36) | (44) |
Other comprehensive income before reclassifications | 0 | |
Amounts reclassified from other comprehensive income | 0 | |
Net current-period other comprehensive income | 0 | |
Balance ending | $ (36) | $ (44) |
Reclassifications from Accumu_4
Reclassifications from Accumulated Other Comprehensive Income (Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other Income (Loss), Net | $ 1 | $ (1) |
Benefit from income taxes | (426) | 0 |
Net income | 594 | $ 208 |
Amount Reclassified from Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net income | 0 | |
Amortization of prior service cost and net gain | Amount Reclassified from Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other Income (Loss), Net | 0 | |
Benefit from income taxes | 0 | |
Net income | $ 0 |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Amount and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments, net | $ 31 | $ 52 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 366 | 201 |
Derivative instruments, net | 31 | 52 |
Carrying Amount | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior notes | 2,342 | 2,342 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 366 | 201 |
Derivative instruments, net | 31 | 52 |
Fair Value | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior notes | 2,352 | 2,190 |
2018 revolving credit facility due April 2023 | Carrying Amount | Long-term debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Credit facility | 0 | 0 |
2018 revolving credit facility due April 2023 | Fair Value | Long-term debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Credit facility | 0 | $ 0 |
Purchased call options | Natural Gas | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Premium paid | $ 1 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) | Mar. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2016 | Jan. 31, 2015 |
Long-term debt | 4.05% Senior Notes due January 2020 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 6.05% | 5.30% | 5.80% | 4.05% |
Fair Value Measurements (Summar
Fair Value Measurements (Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 31 | $ 52 |
Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 31 | 52 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Fixed price swaps | Natural Gas | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 29 | 38 |
Derivative liabilities | (3) | (10) |
Fixed price swaps | Natural Gas | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fixed price swaps | Natural Gas | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 29 | 38 |
Derivative liabilities | (3) | (10) |
Fixed price swaps | Natural Gas | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fixed price swaps | Oil | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 7 | 19 |
Derivative liabilities | (1) | |
Fixed price swaps | Oil | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | |
Fixed price swaps | Oil | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 7 | 19 |
Derivative liabilities | (1) | |
Fixed price swaps | Oil | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | |
Fixed price swaps | Propane | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 7 | 11 |
Fixed price swaps | Propane | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Fixed price swaps | Propane | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 7 | 11 |
Fixed price swaps | Propane | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Fixed price swaps | Ethane | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 12 | 8 |
Derivative liabilities | (3) | |
Fixed price swaps | Ethane | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | |
Fixed price swaps | Ethane | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 12 | 8 |
Derivative liabilities | (3) | |
Fixed price swaps | Ethane | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | |
Two-way costless collars | Natural Gas | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 5 | 11 |
Derivative liabilities | (2) | (7) |
Two-way costless collars | Natural Gas | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Two-way costless collars | Natural Gas | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 5 | 11 |
Derivative liabilities | (2) | (7) |
Two-way costless collars | Natural Gas | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Two-way costless collars | Oil | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 4 | 11 |
Derivative liabilities | (1) | (1) |
Two-way costless collars | Oil | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Two-way costless collars | Oil | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 4 | 11 |
Derivative liabilities | (1) | (1) |
Two-way costless collars | Oil | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Three-way costless collars | Natural Gas | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 53 | 75 |
Derivative liabilities | (44) | (68) |
Three-way costless collars | Natural Gas | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Three-way costless collars | Natural Gas | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 53 | 75 |
Derivative liabilities | (44) | (68) |
Three-way costless collars | Natural Gas | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Three-way costless collars | Oil | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 1 | |
Derivative liabilities | (1) | |
Three-way costless collars | Oil | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | |
Derivative liabilities | 0 | |
Three-way costless collars | Oil | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 1 | |
Derivative liabilities | (1) | |
Three-way costless collars | Oil | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | |
Derivative liabilities | 0 | |
Basis swaps | Natural Gas | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 2 | 11 |
Derivative liabilities | (23) | (22) |
Basis swaps | Natural Gas | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Basis swaps | Natural Gas | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 2 | 11 |
Derivative liabilities | (23) | (22) |
Basis swaps | Natural Gas | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Purchased call options | Natural Gas | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 7 | 6 |
Purchased call options | Natural Gas | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Purchased call options | Natural Gas | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 7 | 6 |
Purchased call options | Natural Gas | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 1 | 1 |
Interest rate swaps | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Interest rate swaps | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 1 | 1 |
Interest rate swaps | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Purchased fixed price swaps | Oil | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | (2) | (6) |
Purchased fixed price swaps | Oil | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Purchased fixed price swaps | Oil | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | (2) | (6) |
Purchased fixed price swaps | Oil | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Sold call options | Natural Gas | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | (20) | (22) |
Sold call options | Natural Gas | Quoted Prices in Active Markets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Sold call options | Natural Gas | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | (20) | (22) |
Sold call options | Natural Gas | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | $ 0 | $ 0 |
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 ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Balance at beginning of period | $ 0 | $ 22 |
Included in earnings | 0 | (9) |
Settlements | 0 | 9 |
Transfers into/out of Level 3 | 0 | 0 |
Balance at end of period | 0 | 22 |
Change in gains (losses) included in earnings relating to derivatives still held as of March 31 | $ 0 | 0 |
Natural Gas | Call Option | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Amortization of premium paid | $ 1 |
Debt (Components of Debt) (Deta
Debt (Components of Debt) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Jul. 31, 2016 | Feb. 29, 2016 | Mar. 31, 2019 | Dec. 31, 2018 | Jul. 31, 2018 | Jan. 31, 2015 | |
Debt Instrument [Line Items] | ||||||
Debt Instrument, long-term debt | $ 2,290 | |||||
Debt Instrument | 2,342 | $ 2,342 | ||||
Unamortized Issuance Expense | (22) | (23) | ||||
Unamortized Debt Discount | (1) | (1) | ||||
Total, current portion of long-term debt | 52 | 0 | ||||
Total, long-term debt | 2,267 | 2,318 | ||||
Total debt | 2,319 | 2,318 | ||||
Unamortized issuance expense | 22 | 23 | ||||
Other long-term assets | 688 | 185 | ||||
Line of Credit | 2018 revolving credit facility, due April 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, long-term debt | 0 | |||||
Unamortized Issuance Expense | 0 | |||||
Unamortized Debt Discount | 0 | |||||
Total, long-term debt | $ 0 | |||||
Variable interest rate | 3.923% | |||||
Unamortized issuance expense | $ 0 | |||||
Line of Credit | 2018 term loan facility, due April 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument | 0 | |||||
Unamortized Issuance Expense | 0 | |||||
Unamortized Debt Discount | 0 | |||||
Total debt | $ 0 | |||||
Variable interest rate | 3.92% | |||||
Unamortized issuance expense | $ 0 | |||||
Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, current portion of long-term debt | 52 | |||||
Unamortized Issuance Expense | 0 | |||||
Unamortized Debt Discount | 0 | |||||
Total, current portion of long-term debt | 52 | |||||
Unamortized issuance expense | 0 | |||||
Senior Notes | 4.05% Senior Notes due January 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, current portion of long-term debt | 52 | |||||
Debt Instrument | 52 | |||||
Unamortized Issuance Expense | 0 | 0 | ||||
Unamortized Debt Discount | 0 | 0 | ||||
Total, current portion of long-term debt | $ 52 | |||||
Total debt | 52 | |||||
Stated interest rate | 4.05% | |||||
Unamortized issuance expense | $ 0 | 0 | ||||
Senior Notes | 4.10% Senior Notes due March 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, long-term debt | 213 | |||||
Debt Instrument | 213 | |||||
Unamortized Issuance Expense | (1) | (1) | ||||
Unamortized Debt Discount | 0 | 0 | ||||
Total, long-term debt | $ 212 | |||||
Total debt | 212 | |||||
Stated interest rate | 4.10% | |||||
Unamortized issuance expense | $ 1 | 1 | ||||
Senior Notes | 4.95% Senior Notes due January 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, long-term debt | 927 | |||||
Debt Instrument | 927 | |||||
Unamortized Issuance Expense | (7) | (7) | ||||
Unamortized Debt Discount | (1) | (1) | ||||
Total, long-term debt | $ 919 | |||||
Total debt | 919 | |||||
Stated interest rate | 4.95% | |||||
Unamortized issuance expense | $ 7 | 7 | ||||
Senior Notes | 7.50% Senior Notes due April 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, long-term debt | 650 | |||||
Debt Instrument | 650 | |||||
Unamortized Issuance Expense | (8) | (8) | ||||
Unamortized Debt Discount | 0 | 0 | ||||
Total, long-term debt | $ 642 | |||||
Total debt | 642 | |||||
Stated interest rate | 7.50% | |||||
Unamortized issuance expense | $ 8 | 8 | ||||
Senior Notes | 7.75% Senior Notes due October 2027 | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, long-term debt | 500 | |||||
Debt Instrument | 500 | |||||
Unamortized Issuance Expense | (6) | (7) | ||||
Unamortized Debt Discount | 0 | 0 | ||||
Total, long-term debt | $ 494 | |||||
Total debt | 493 | |||||
Stated interest rate | 7.75% | |||||
Unamortized issuance expense | $ 6 | 7 | ||||
Long-term debt | 4.05% Senior Notes due January 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate | 5.80% | 6.05% | 5.30% | 4.05% | ||
Long-term debt | 4.95% Senior Notes due January 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate | 6.70% | 6.95% | 6.20% | 4.95% | ||
LIBOR | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Increase in basis spread | 1.75% | 1.75% | ||||
Other long-term assets | Line of Credit | 2018 revolving credit facility, due April 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized Issuance Expense | $ (10) | (11) | ||||
Unamortized issuance expense | $ 10 | $ 11 |
Debt (2018 Revolving Credit Fac
Debt (2018 Revolving Credit Facility - Narrative) (Details) | 1 Months Ended | 3 Months Ended | ||
Apr. 30, 2018USD ($) | Mar. 31, 2019USD ($) | Apr. 04, 2019USD ($) | Dec. 31, 2018USD ($) | |
Debt Instrument [Line Items] | ||||
Debt instrument | $ 2,342,000,000 | $ 2,342,000,000 | ||
Subsidiary ownership | 100.00% | |||
2018 revolving credit facility due April 2023 | ||||
Debt Instrument [Line Items] | ||||
Amount outstanding | $ 0 | |||
Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Amount outstanding | 172,000,000 | |||
Long-term debt | 2016 Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Debt instrument | $ 743,000,000 | |||
Long-term debt | 2018 revolving credit facility due April 2023 | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 3,500,000,000 | |||
Current borrowing capacity | 2,100,000,000 | |||
Limit on securing indebtedness | $ 2,000,000,000 | |||
Percentage of consolidated net tangible assets | 25.00% | |||
Minimum interest coverage ratio | 1 | |||
Amount outstanding | $ 2,000,000,000 | |||
Long-term debt | 2018 revolving credit facility due April 2023 | Maximum | ||||
Debt Instrument [Line Items] | ||||
Leverage ratio, percentage of credit limit | 10.00% | |||
Leverage ratio, amount of credit limit | $ 150,000,000 | |||
Long-term debt | 2018 revolving credit facility due April 2023 | Eurodollar | Minimum | ||||
Debt Instrument [Line Items] | ||||
Basis points | 1.50% | |||
Long-term debt | 2018 revolving credit facility due April 2023 | Eurodollar | Maximum | ||||
Debt Instrument [Line Items] | ||||
Basis points | 2.50% | |||
Long-term debt | 2018 revolving credit facility due April 2023 | Base Rate | Minimum | ||||
Debt Instrument [Line Items] | ||||
Basis points | 0.50% | |||
Long-term debt | 2018 revolving credit facility due April 2023 | Base Rate | Maximum | ||||
Debt Instrument [Line Items] | ||||
Basis points | 1.50% | |||
2016 Term Loan due December 2020 | Long-term debt | ||||
Debt Instrument [Line Items] | ||||
Debt instrument | $ 1,191,000,000 | |||
June 30, 2018 Through March 31, 2019 | Long-term debt | 2018 revolving credit facility due April 2023 | Maximum | ||||
Debt Instrument [Line Items] | ||||
Leverage ratio | 4.50 | |||
June 30, 2019 Through March 31, 2020 | Long-term debt | 2018 revolving credit facility due April 2023 | Maximum | ||||
Debt Instrument [Line Items] | ||||
Leverage ratio | 4.25 | |||
After June 30, 2020 | Long-term debt | 2018 revolving credit facility due April 2023 | Maximum | ||||
Debt Instrument [Line Items] | ||||
Leverage ratio | 4 | |||
Subsequent event | Long-term debt | 2018 revolving credit facility due April 2023 | ||||
Debt Instrument [Line Items] | ||||
Current borrowing capacity | $ 2,100,000,000 |
Debt (Senior Notes - Narrative)
Debt (Senior Notes - Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | ||||
Jul. 31, 2016 | Feb. 29, 2016 | Jan. 31, 2015 | Mar. 31, 2019 | Jul. 31, 2018 | |
Senior Notes | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Incremental increase in basis points resulting from downgrades | 0.25% | ||||
Incremental decrease in basis points resulting from upgrades | 0.25% | ||||
Increase in basis spread | 1.75% | 1.75% | |||
4.05% Senior Notes due January 2020 | Long-term debt | |||||
Debt Instrument [Line Items] | |||||
Senior notes | $ 850 | ||||
Stated interest rate | 5.80% | 4.05% | 6.05% | 5.30% | |
4.05% Senior Notes due January 2020 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 4.05% | ||||
4.95% Senior Notes due January 2025 | Long-term debt | |||||
Debt Instrument [Line Items] | |||||
Senior notes | $ 1,000 | ||||
Stated interest rate | 6.70% | 4.95% | 6.95% | 6.20% | |
4.95% Senior Notes due January 2025 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 4.95% |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Commitments And Contingencies [Line Items] | ||
Obligation under transportation agreements | $ 8,994,000,000 | |
Guarantee obligations relative to the firms transportation agreements and gathering project and services | 403,000,000 | |
Contractual commitments assumed by buyer | 188,000,000 | |
Potential amount to be reimbursed to buyer | 94,000,000 | |
Liability for estimated future payments | 78,000,000 | $ 88,000,000 |
Indemnification liability | 0 | |
Pending regulatory approval and/or construction | ||
Commitments And Contingencies [Line Items] | ||
Obligation under transportation agreements | 1,411,000,000 | |
Appalachian Basin | ||
Commitments And Contingencies [Line Items] | ||
Obligation under transportation agreements | 357,000,000 | |
Reimbursed by seller | $ 133,000,000 |
Commitments and Contingencies_3
Commitments and Contingencies (Schedule of Future Obligation under Transportation Agreements) (Details) $ in Millions | Mar. 31, 2019USD ($) |
Other Commitments [Line Items] | |
Total | $ 8,994 |
Less than 1 year | 727 |
1 to 3 years | 1,417 |
3 to 5 years | 1,302 |
5 to 8 years | 1,805 |
More than 8 years | 3,743 |
Infrastructure currently in service | |
Other Commitments [Line Items] | |
Total | 7,583 |
Less than 1 year | 723 |
1 to 3 years | 1,304 |
3 to 5 years | 1,135 |
5 to 8 years | 1,520 |
More than 8 years | 2,901 |
Pending regulatory approval and/or construction | |
Other Commitments [Line Items] | |
Total | 1,411 |
Less than 1 year | 4 |
1 to 3 years | 113 |
3 to 5 years | 167 |
5 to 8 years | 285 |
More than 8 years | $ 842 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||
Effective tax rate | (254.00%) | 0.00% |
Increase (decrease) in valuation allowance | $ 426 | |
Valuation allowance related to operating loss | $ 87 |
Pension Plan and Other Postre_3
Pension Plan and Other Postretirement Benefits (Pension and Other Postretirement Benefit Costs) (Details) - Pension Benefits - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 2 | $ 3 |
Interest cost | 1 | 2 |
Expected return on plan assets | (2) | (2) |
Amortization of prior service cost | 0 | 0 |
Amortization of net loss | 1 | 0 |
Net periodic benefit cost | $ 2 | $ 3 |
Pension Plan and Other Postre_4
Pension Plan and Other Postretirement Benefits (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Employer contributions | $ 5 | ||||
Additional contributions for remainder of year | $ 7 | ||||
Treasury stock acquired (in shares) | 44,000,000 | 5,260,687 | 39,061,269 | ||
Other Postretirement Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic benefit cost (gain) | $ 1 | $ 1 | |||
Benefit obligation | $ 13 | 13 | $ 13 | $ 13 | |
Pension Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic benefit cost (gain) | 2 | $ 3 | |||
Benefit obligation | $ 34 | $ 31 | $ 34 | $ 34 | |
Non-Qualified Supplemental Employee Retirement Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Treasury stock acquired (in shares) | 5,115 | 10,653 |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule of Stock-Based Compensation Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation [Abstract] | ||
Stock-based compensation cost – expensed | $ 7 | $ 5 |
Stock-based compensation cost – capitalized | $ 4 | $ 3 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation [Line Items] | ||
Service period | 3 years | |
Stock options | ||
Share-based Compensation [Line Items] | ||
Vesting period | 3 years | |
Expiration period | 7 years | |
Equity-classified awards, unrecognized compensation cost | $ 14 | |
Weighted average period over which unrecognized cost is recognized, years | 1 year 6 months | |
Restricted stock | ||
Share-based Compensation [Line Items] | ||
Vesting period | 4 years | |
RSUs | ||
Share-based Compensation [Line Items] | ||
Vesting period | 4 years | 4 years |
Weighted average period over which unrecognized cost is recognized, years | 3 years | |
Liability classified awards, unrecognized compensation costs | $ 61 | |
Performance units | ||
Share-based Compensation [Line Items] | ||
Vesting period | 3 years | 3 years |
Weighted average period over which unrecognized cost is recognized, years | 3 years | |
Liability classified awards, unrecognized compensation costs | $ 19 |
Stock-Based Compensation (Sch_2
Stock-Based Compensation (Schedule of Equity-Classified Stock-Based Compensation Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation [Abstract] | ||
Equity-classified awards – expensed | $ 2 | $ 4 |
Equity-classified awards – capitalized | $ 1 | $ 3 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Equity-Classified Stock Option Activity) (Details) - Stock options shares in Thousands | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Number of Options | |
Beginning balance (in shares) | shares | 5,178 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | 0 |
Forfeited or expired (in shares) | shares | (58) |
Ending balance (in shares) | shares | 5,120 |
Exercisable (in shares) | shares | 4,604 |
Weighted Average Exercise Price | |
Beginning balance (in dollars per share) | $ / shares | $ 17.06 |
Granted (in dollars per share) | $ / shares | 0 |
Exercised (in dollars per share) | $ / shares | 0 |
Forfeited or expired (in dollars per share) | $ / shares | 15.74 |
Ending balance (in dollars per share) | $ / shares | 17.07 |
Exercisable (in dollars per share) | $ / shares | $ 18.16 |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary of Equity-Classified Restricted Stock Activity) (Details) - Restricted stock shares in Thousands | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Number of Shares | |
Beginning balance (in shares) | shares | 2,717 |
Granted (in shares) | shares | 9 |
Vested (in shares) | shares | (608) |
Forfeited (in shares) | shares | (145) |
Ending balance (in shares) | shares | 1,973 |
Weighted Average Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 7.91 |
Granted (in dollars per share) | $ / shares | 3.72 |
Vested (in dollars per share) | $ / shares | 8.74 |
Forfeited (in dollars per share) | $ / shares | 8.38 |
Ending balance (in dollars per share) | $ / shares | $ 7.61 |
Stock-Based Compensation (Sum_3
Stock-Based Compensation (Summary of Equity-Classified Performance Units Activity) (Details) - Performance units - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Number of Shares | ||
Beginning balance (in shares) | 598,000 | |
Granted (in shares) | 0 | |
Vested (in shares) | (371,000) | |
Forfeited (in shares) | (30,000) | |
Ending balance (in shares) | 197,000 | |
Weighted Average Fair Value | ||
Beginning balance (in dollars per share) | $ 10.01 | |
Granted (in dollars per share) | 0 | |
Vested (in dollars per share) | 9.73 | |
Forfeited (in dollars per share) | 10.47 | |
Ending balance (in dollars per share) | $ 10.47 | |
Vesting period | 3 years | 3 years |
Minimum | ||
Number of Shares | ||
Granted (in shares) | 0 | |
Maximum | ||
Number of Shares | ||
Granted (in shares) | 2 |
Stock-Based Compensation (Sch_3
Stock-Based Compensation (Schedule of Liability-Classified Stock-Based Compensation Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation [Abstract] | ||
Liability-classified stock-based compensation cost – expensed | $ 5 | $ 1 |
Liability-classified stock-based compensation cost – capitalized | $ 3 | $ 0 |
Stock-Based Compensation (Sum_4
Stock-Based Compensation (Summary of Liability-Classified Restricted Stock Unit Activity) (Details) - RSUs shares in Thousands | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Number of Shares | |
Beginning balance (in shares) | shares | 8,202 |
Granted (in shares) | shares | 8,659 |
Vested (in shares) | shares | (2,120) |
Forfeited (in shares) | shares | (504) |
Ending balance (in shares) | shares | 14,237 |
Weighted Average Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 3.41 |
Granted (in dollars per share) | $ / shares | 4.34 |
Vested (in dollars per share) | $ / shares | 4.29 |
Forfeited (in dollars per share) | $ / shares | 3.85 |
Ending balance (in dollars per share) | $ / shares | $ 4.69 |
Stock-Based Compensation (Sum_5
Stock-Based Compensation (Summary of Liability-Classified Performance Unit Activity) (Details) - Performance units shares in Thousands | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Number of Shares | |
Beginning balance (in shares) | shares | 2,803 |
Granted (in shares) | shares | 2,757 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | (119) |
Ending balance (in shares) | shares | 5,441 |
Weighted Average Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 3.41 |
Granted (in dollars per share) | $ / shares | 4.34 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 4.65 |
Ending balance (in dollars per share) | $ / shares | $ 4.69 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Total operating revenues | $ 990 | $ 920 | |
Depreciation, depletion and amortization expense | 112 | 143 | |
Operating income | 213 | 255 | |
Interest expense | 14 | 39 | |
Loss on Derivatives | (32) | (7) | |
Other Income (Loss), Net | 1 | (1) | |
Benefit for income taxes | (426) | 0 | |
Assets | 6,446 | 7,713 | $ 5,797 |
Capital investments | 325 | 338 | |
Restructuring charges | 3 | 0 | |
Cash and cash equivalents | 366 | $ 201 | |
Change in accrued expenditures | 66 | 33 | |
Intersegment Revenues | |||
Segment Reporting Information [Line Items] | |||
Total operating revenues | 493 | 613 | |
E&P | |||
Segment Reporting Information [Line Items] | |||
Total operating revenues | 551 | 643 | |
Depreciation, depletion and amortization expense | 110 | 117 | |
Operating income | 210 | 238 | |
Interest expense | 14 | 39 | |
Loss on Derivatives | (32) | (7) | |
Other Income (Loss), Net | 1 | 0 | |
Benefit for income taxes | (426) | ||
Assets | 5,562 | 5,346 | |
Capital investments | 325 | 334 | |
Restructuring charges | 3 | ||
E&P | Intersegment Revenues | |||
Segment Reporting Information [Line Items] | |||
Total operating revenues | (9) | (6) | |
Midstream | |||
Segment Reporting Information [Line Items] | |||
Total operating revenues | 439 | 277 | |
Depreciation, depletion and amortization expense | 2 | 26 | |
Operating income | 3 | 17 | |
Interest expense | 0 | 0 | |
Loss on Derivatives | 0 | 0 | |
Other Income (Loss), Net | 0 | (1) | |
Benefit for income taxes | 0 | ||
Assets | 342 | 1,217 | |
Capital investments | 0 | 4 | |
Midstream | Intersegment Revenues | |||
Segment Reporting Information [Line Items] | |||
Total operating revenues | 502 | 619 | |
Other | |||
Segment Reporting Information [Line Items] | |||
Total operating revenues | 0 | 0 | |
Depreciation, depletion and amortization expense | 0 | 0 | |
Operating income | 0 | 0 | |
Interest expense | 0 | 0 | |
Loss on Derivatives | 0 | 0 | |
Other Income (Loss), Net | 0 | 0 | |
Benefit for income taxes | 0 | ||
Assets | 542 | 1,150 | |
Capital investments | 0 | 0 | |
Cash and cash equivalents | 366 | 958 | |
Other | Intersegment Revenues | |||
Segment Reporting Information [Line Items] | |||
Total operating revenues | 0 | 0 | |
Marketing | |||
Segment Reporting Information [Line Items] | |||
Total operating revenues | 438 | 253 | |
Marketing | Intersegment Revenues | |||
Segment Reporting Information [Line Items] | |||
Total operating revenues | 502 | 576 | |
Marketing | Midstream | Intersegment Revenues | |||
Segment Reporting Information [Line Items] | |||
Total operating revenues | $ 502 | 576 | |
Non-Core Gathering Assets | Midstream | |||
Segment Reporting Information [Line Items] | |||
Impairments | $ 10 |
New Accounting Pronouncements -
New Accounting Pronouncements - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Right-of-use asset | $ 100 | |
Lease liability balance | $ 100 | |
ASU 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Right-of-use asset | $ 105 | |
Lease liability balance | $ 105 |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Information (Condensed Consolidating Statement of Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Condensed Income Statements, Captions [Line Items] | ||
Total operating revenues | $ 990 | $ 920 |
Operating expenses | 165 | 189 |
General and administrative expenses | 37 | 55 |
Restructuring charges | 3 | 0 |
Depreciation, depletion and amortization | 112 | 143 |
Taxes, other than income taxes | 19 | 23 |
Total operating costs and expense | 777 | 665 |
Operating Income | 213 | 255 |
Interest Expense, Net | 14 | 39 |
Loss on Derivatives | (32) | (7) |
Other Income (Loss), Net | 1 | (1) |
Equity in Earnings of Subsidiaries | 0 | 0 |
Income (Loss) Before Income Taxes | 168 | 208 |
Benefit from income taxes | (426) | 0 |
Net Income | 594 | 208 |
Participating securities - mandatory convertible preferred stock | 0 | 3 |
Net Income Attributable to Common Stock | 594 | 205 |
Other comprehensive income | 0 | 0 |
Comprehensive income | 594 | 208 |
Eliminations | ||
Condensed Income Statements, Captions [Line Items] | ||
Total operating revenues | 0 | 0 |
Operating expenses | 0 | 0 |
General and administrative expenses | 0 | 0 |
Restructuring charges | 0 | |
Depreciation, depletion and amortization | 0 | 0 |
Taxes, other than income taxes | 0 | 0 |
Total operating costs and expense | 0 | 0 |
Operating Income | 0 | 0 |
Interest Expense, Net | 0 | 0 |
Loss on Derivatives | 0 | 0 |
Other Income (Loss), Net | 0 | 0 |
Equity in Earnings of Subsidiaries | (608) | (247) |
Income (Loss) Before Income Taxes | (608) | (247) |
Benefit from income taxes | 0 | 0 |
Net Income | (608) | (247) |
Participating securities - mandatory convertible preferred stock | 0 | |
Net Income Attributable to Common Stock | (247) | |
Other comprehensive income | 0 | 0 |
Comprehensive income | (608) | (247) |
Parent | ||
Condensed Income Statements, Captions [Line Items] | ||
Total operating revenues | 0 | 0 |
Operating expenses | 0 | 0 |
General and administrative expenses | 0 | 0 |
Restructuring charges | 0 | |
Depreciation, depletion and amortization | 0 | 0 |
Taxes, other than income taxes | 0 | 0 |
Total operating costs and expense | 0 | 0 |
Operating Income | 0 | 0 |
Interest Expense, Net | 14 | 39 |
Loss on Derivatives | 0 | 0 |
Other Income (Loss), Net | 0 | 0 |
Equity in Earnings of Subsidiaries | 608 | 247 |
Income (Loss) Before Income Taxes | 594 | 208 |
Benefit from income taxes | 0 | 0 |
Net Income | 594 | 208 |
Participating securities - mandatory convertible preferred stock | 3 | |
Net Income Attributable to Common Stock | 205 | |
Other comprehensive income | 0 | 0 |
Comprehensive income | 594 | 208 |
Guarantors | ||
Condensed Income Statements, Captions [Line Items] | ||
Total operating revenues | 990 | 920 |
Operating expenses | 165 | 189 |
General and administrative expenses | 37 | 55 |
Restructuring charges | 3 | |
Depreciation, depletion and amortization | 112 | 143 |
Taxes, other than income taxes | 19 | 23 |
Total operating costs and expense | 777 | 665 |
Operating Income | 213 | 255 |
Interest Expense, Net | 0 | 0 |
Loss on Derivatives | (32) | (7) |
Other Income (Loss), Net | 1 | (1) |
Equity in Earnings of Subsidiaries | 0 | 0 |
Income (Loss) Before Income Taxes | 182 | 247 |
Benefit from income taxes | (426) | 0 |
Net Income | 608 | 247 |
Participating securities - mandatory convertible preferred stock | 0 | |
Net Income Attributable to Common Stock | 247 | |
Other comprehensive income | 0 | 0 |
Comprehensive income | 608 | 247 |
Non-Guarantors | ||
Condensed Income Statements, Captions [Line Items] | ||
Total operating revenues | 0 | 0 |
Operating expenses | 0 | 0 |
General and administrative expenses | 0 | 0 |
Restructuring charges | 0 | |
Depreciation, depletion and amortization | 0 | 0 |
Taxes, other than income taxes | 0 | 0 |
Total operating costs and expense | 0 | 0 |
Operating Income | 0 | 0 |
Interest Expense, Net | 0 | 0 |
Loss on Derivatives | 0 | 0 |
Other Income (Loss), Net | 0 | 0 |
Equity in Earnings of Subsidiaries | 0 | 0 |
Income (Loss) Before Income Taxes | 0 | 0 |
Benefit from income taxes | 0 | 0 |
Net Income | 0 | 0 |
Participating securities - mandatory convertible preferred stock | 0 | |
Net Income Attributable to Common Stock | 0 | |
Other comprehensive income | 0 | 0 |
Comprehensive income | 0 | 0 |
Gas sales | ||
Condensed Income Statements, Captions [Line Items] | ||
Total operating revenues | 430 | 540 |
Gas sales | Eliminations | ||
Condensed Income Statements, Captions [Line Items] | ||
Total operating revenues | 0 | 0 |
Gas sales | Parent | ||
Condensed Income Statements, Captions [Line Items] | ||
Total operating revenues | 0 | 0 |
Gas sales | Guarantors | ||
Condensed Income Statements, Captions [Line Items] | ||
Total operating revenues | 430 | 540 |
Gas sales | Non-Guarantors | ||
Condensed Income Statements, Captions [Line Items] | ||
Total operating revenues | 0 | 0 |
Oil sales | ||
Condensed Income Statements, Captions [Line Items] | ||
Total operating revenues | 39 | 35 |
Oil sales | Eliminations | ||
Condensed Income Statements, Captions [Line Items] | ||
Total operating revenues | 0 | 0 |
Oil sales | Parent | ||
Condensed Income Statements, Captions [Line Items] | ||
Total operating revenues | 0 | 0 |
Oil sales | Guarantors | ||
Condensed Income Statements, Captions [Line Items] | ||
Total operating revenues | 39 | 35 |
Oil sales | Non-Guarantors | ||
Condensed Income Statements, Captions [Line Items] | ||
Total operating revenues | 0 | 0 |
NGL sales | ||
Condensed Income Statements, Captions [Line Items] | ||
Total operating revenues | 81 | 65 |
NGL sales | Eliminations | ||
Condensed Income Statements, Captions [Line Items] | ||
Total operating revenues | 0 | 0 |
NGL sales | Parent | ||
Condensed Income Statements, Captions [Line Items] | ||
Total operating revenues | 0 | 0 |
NGL sales | Guarantors | ||
Condensed Income Statements, Captions [Line Items] | ||
Total operating revenues | 81 | 65 |
NGL sales | Non-Guarantors | ||
Condensed Income Statements, Captions [Line Items] | ||
Total operating revenues | 0 | 0 |
Marketing | ||
Condensed Income Statements, Captions [Line Items] | ||
Total operating revenues | 438 | 253 |
Marketing | Eliminations | ||
Condensed Income Statements, Captions [Line Items] | ||
Total operating revenues | 0 | 0 |
Marketing | Parent | ||
Condensed Income Statements, Captions [Line Items] | ||
Total operating revenues | 0 | 0 |
Marketing | Guarantors | ||
Condensed Income Statements, Captions [Line Items] | ||
Total operating revenues | 438 | 253 |
Marketing | Non-Guarantors | ||
Condensed Income Statements, Captions [Line Items] | ||
Total operating revenues | 0 | 0 |
Gas gathering | ||
Condensed Income Statements, Captions [Line Items] | ||
Total operating revenues | 0 | 24 |
Gas gathering | Eliminations | ||
Condensed Income Statements, Captions [Line Items] | ||
Total operating revenues | 0 | |
Gas gathering | Parent | ||
Condensed Income Statements, Captions [Line Items] | ||
Total operating revenues | 0 | |
Gas gathering | Guarantors | ||
Condensed Income Statements, Captions [Line Items] | ||
Total operating revenues | 24 | |
Gas gathering | Non-Guarantors | ||
Condensed Income Statements, Captions [Line Items] | ||
Total operating revenues | 0 | |
Other | ||
Condensed Income Statements, Captions [Line Items] | ||
Total operating revenues | 2 | 3 |
Other | Eliminations | ||
Condensed Income Statements, Captions [Line Items] | ||
Total operating revenues | 0 | 0 |
Other | Parent | ||
Condensed Income Statements, Captions [Line Items] | ||
Total operating revenues | 0 | 0 |
Other | Guarantors | ||
Condensed Income Statements, Captions [Line Items] | ||
Total operating revenues | 2 | 3 |
Other | Non-Guarantors | ||
Condensed Income Statements, Captions [Line Items] | ||
Total operating revenues | 0 | 0 |
Marketing purchases | ||
Condensed Income Statements, Captions [Line Items] | ||
Marketing purchases | 441 | 255 |
Marketing purchases | Eliminations | ||
Condensed Income Statements, Captions [Line Items] | ||
Marketing purchases | 0 | 0 |
Marketing purchases | Parent | ||
Condensed Income Statements, Captions [Line Items] | ||
Marketing purchases | 0 | 0 |
Marketing purchases | Guarantors | ||
Condensed Income Statements, Captions [Line Items] | ||
Marketing purchases | 441 | 255 |
Marketing purchases | Non-Guarantors | ||
Condensed Income Statements, Captions [Line Items] | ||
Marketing purchases | $ 0 | $ 0 |
Condensed Consolidating Finan_4
Condensed Consolidating Financial Information (Condensed Consolidating Balance Sheets) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||||
Cash and cash equivalents | $ 366 | $ 201 | ||
Accounts receivable, net | 390 | 581 | ||
Other current assets | 131 | 174 | ||
Total current assets | 887 | 956 | ||
Intercompany receivables | 0 | 0 | ||
Natural gas and oil properties, using the full cost method | 24,486 | 24,180 | ||
Gathering systems | 38 | 38 | ||
Other | 509 | 487 | ||
Less: Accumulated depreciation, depletion and amortization | (20,162) | (20,049) | ||
Total property and equipment, net | 4,871 | 4,656 | ||
Investments in subsidiaries (equity method) | 0 | 0 | ||
Other long-term assets | 688 | 185 | ||
TOTAL ASSETS | 6,446 | 5,797 | $ 7,713 | |
Current liabilities: | ||||
Accounts payable | 626 | 609 | ||
Other current liabilities | 317 | 237 | ||
Total current liabilities | 943 | 846 | ||
Intercompany payables | 0 | 0 | ||
Long-term debt | 2,267 | 2,318 | ||
Pension and other postretirement liabilities | 43 | 46 | ||
Other long-term liabilities | 256 | 225 | ||
Negative carrying amount of subsidiaries, net | 0 | 0 | ||
Total long-term liabilities | 2,566 | 2,589 | ||
Commitments and contingencies (Note 13) | ||||
Total equity | 2,937 | 2,362 | $ 2,193 | $ 1,979 |
TOTAL LIABILITIES AND EQUITY | 6,446 | 5,797 | ||
Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Intercompany receivables | (7,744) | (7,932) | ||
Natural gas and oil properties, using the full cost method | 0 | 0 | ||
Gathering systems | 0 | 0 | ||
Other | 0 | 0 | ||
Less: Accumulated depreciation, depletion and amortization | 0 | 0 | ||
Total property and equipment, net | 0 | 0 | ||
Investments in subsidiaries (equity method) | (23) | (24) | ||
Other long-term assets | 0 | 0 | ||
TOTAL ASSETS | (7,767) | (7,956) | ||
Current liabilities: | ||||
Accounts payable | 0 | 0 | ||
Other current liabilities | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Intercompany payables | (7,744) | (7,932) | ||
Long-term debt | 0 | 0 | ||
Pension and other postretirement liabilities | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Negative carrying amount of subsidiaries, net | (2,594) | (3,199) | ||
Total long-term liabilities | (2,594) | (3,199) | ||
Commitments and contingencies (Note 13) | ||||
Total equity | 2,571 | 3,175 | ||
TOTAL LIABILITIES AND EQUITY | (7,767) | (7,956) | ||
Parent | ||||
Current assets: | ||||
Cash and cash equivalents | 366 | 201 | ||
Accounts receivable, net | 0 | 4 | ||
Other current assets | 11 | 8 | ||
Total current assets | 377 | 213 | ||
Intercompany receivables | 7,744 | 7,932 | ||
Natural gas and oil properties, using the full cost method | 0 | 0 | ||
Gathering systems | 0 | 0 | ||
Other | 197 | 197 | ||
Less: Accumulated depreciation, depletion and amortization | (159) | (154) | ||
Total property and equipment, net | 38 | 43 | ||
Investments in subsidiaries (equity method) | 0 | 0 | ||
Other long-term assets | 42 | 19 | ||
TOTAL ASSETS | 8,201 | 8,207 | ||
Current liabilities: | ||||
Accounts payable | 124 | 113 | ||
Other current liabilities | 189 | 115 | ||
Total current liabilities | 313 | 228 | ||
Intercompany payables | 0 | 0 | ||
Long-term debt | 2,267 | 2,318 | ||
Pension and other postretirement liabilities | 43 | 46 | ||
Other long-term liabilities | 47 | 54 | ||
Negative carrying amount of subsidiaries, net | 2,594 | 3,199 | ||
Total long-term liabilities | 4,951 | 5,617 | ||
Commitments and contingencies (Note 13) | ||||
Total equity | 2,937 | 2,362 | ||
TOTAL LIABILITIES AND EQUITY | 8,201 | 8,207 | ||
Guarantors | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Accounts receivable, net | 390 | 577 | ||
Other current assets | 120 | 166 | ||
Total current assets | 510 | 743 | ||
Intercompany receivables | 0 | 0 | ||
Natural gas and oil properties, using the full cost method | 24,433 | 24,128 | ||
Gathering systems | 11 | 11 | ||
Other | 312 | 290 | ||
Less: Accumulated depreciation, depletion and amortization | (19,947) | (19,840) | ||
Total property and equipment, net | 4,809 | 4,589 | ||
Investments in subsidiaries (equity method) | 23 | 24 | ||
Other long-term assets | 646 | 166 | ||
TOTAL ASSETS | 5,988 | 5,522 | ||
Current liabilities: | ||||
Accounts payable | 502 | 496 | ||
Other current liabilities | 128 | 122 | ||
Total current liabilities | 630 | 618 | ||
Intercompany payables | 7,743 | 7,932 | ||
Long-term debt | 0 | 0 | ||
Pension and other postretirement liabilities | 0 | 0 | ||
Other long-term liabilities | 209 | 171 | ||
Negative carrying amount of subsidiaries, net | 0 | 0 | ||
Total long-term liabilities | 209 | 171 | ||
Commitments and contingencies (Note 13) | ||||
Total equity | (2,594) | (3,199) | ||
TOTAL LIABILITIES AND EQUITY | 5,988 | 5,522 | ||
Non-Guarantors | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Intercompany receivables | 0 | 0 | ||
Natural gas and oil properties, using the full cost method | 53 | 52 | ||
Gathering systems | 27 | 27 | ||
Other | 0 | 0 | ||
Less: Accumulated depreciation, depletion and amortization | (56) | (55) | ||
Total property and equipment, net | 24 | 24 | ||
Investments in subsidiaries (equity method) | 0 | 0 | ||
Other long-term assets | 0 | 0 | ||
TOTAL ASSETS | 24 | 24 | ||
Current liabilities: | ||||
Accounts payable | 0 | 0 | ||
Other current liabilities | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Intercompany payables | 1 | 0 | ||
Long-term debt | 0 | 0 | ||
Pension and other postretirement liabilities | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Negative carrying amount of subsidiaries, net | 0 | 0 | ||
Total long-term liabilities | 0 | 0 | ||
Commitments and contingencies (Note 13) | ||||
Total equity | 23 | 24 | ||
TOTAL LIABILITIES AND EQUITY | $ 24 | $ 24 |
Condensed Consolidating Finan_5
Condensed Consolidating Financial Information (Condensed Consolidating Statements of Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | $ 442 | $ 364 |
Investing activities: | ||
Capital investments | (258) | (302) |
Other | 0 | 8 |
Net cash used in investing activities | (258) | (294) |
Financing activities | ||
Intercompany activities | 0 | 0 |
Change in bank drafts outstanding | 3 | 0 |
Purchase of treasury stock | (21) | 0 |
Preferred stock dividend | 0 | (27) |
Cash paid for tax withholding | (1) | (1) |
Net cash used in financing activities | (19) | (28) |
Increase in cash and cash equivalents | 165 | 42 |
Cash and cash equivalents at beginning of year | 201 | 916 |
Cash and cash equivalents at end of period | 366 | 958 |
Parent | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 1,031 | 183 |
Investing activities: | ||
Capital investments | 3 | (5) |
Other | 0 | 0 |
Net cash used in investing activities | 3 | (5) |
Financing activities | ||
Intercompany activities | (850) | (116) |
Change in bank drafts outstanding | 3 | |
Purchase of treasury stock | (21) | |
Preferred stock dividend | (27) | |
Cash paid for tax withholding | (1) | (1) |
Net cash used in financing activities | (869) | (144) |
Increase in cash and cash equivalents | 165 | 34 |
Cash and cash equivalents at beginning of year | 201 | 914 |
Cash and cash equivalents at end of period | 366 | 948 |
Guarantors | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 19 | 428 |
Investing activities: | ||
Capital investments | (261) | (297) |
Other | 0 | 8 |
Net cash used in investing activities | (261) | (289) |
Financing activities | ||
Intercompany activities | 242 | (131) |
Change in bank drafts outstanding | 0 | |
Purchase of treasury stock | 0 | |
Preferred stock dividend | 0 | |
Cash paid for tax withholding | 0 | 0 |
Net cash used in financing activities | 242 | (131) |
Increase in cash and cash equivalents | 0 | 8 |
Cash and cash equivalents at beginning of year | 0 | 2 |
Cash and cash equivalents at end of period | 0 | 10 |
Non-Guarantors | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 0 | 0 |
Investing activities: | ||
Capital investments | 0 | 0 |
Other | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Financing activities | ||
Intercompany activities | 0 | 0 |
Change in bank drafts outstanding | 0 | |
Purchase of treasury stock | 0 | |
Preferred stock dividend | 0 | |
Cash paid for tax withholding | 0 | 0 |
Net cash used in financing activities | 0 | 0 |
Increase in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of year | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
Eliminations | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | (608) | (247) |
Investing activities: | ||
Capital investments | 0 | 0 |
Other | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Financing activities | ||
Intercompany activities | 608 | 247 |
Change in bank drafts outstanding | 0 | |
Purchase of treasury stock | 0 | |
Preferred stock dividend | 0 | |
Cash paid for tax withholding | 0 | 0 |
Net cash used in financing activities | 608 | 247 |
Increase in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of year | 0 | 0 |
Cash and cash equivalents at end of period | $ 0 | $ 0 |