CONCHO RESOURCES INC, 10-Q filed on 5/1/2019
Quarterly Report
v3.19.1
Document and Entity Information - shares
3 Months Ended
Mar. 31, 2019
Apr. 29, 2019
Document Documentand 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  
Trading Symbol CXO  
Entity Registrant Name CONCHO RESOURCES INC  
Entity Central Index Key 0001358071  
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   200,594,025
v3.19.1
Consolidated Balance Sheets - USD ($)
$ in Millions
Mar. 31, 2019
Dec. 31, 2018
Current assets:    
Cash and cash equivalents $ 0 $ 0
Accounts receivable, net of allowance for doubtful accounts:    
Oil and natural gas 530 466
Joint operations and other 413 365
Inventory 34 35
Derivative instruments 1 484
Prepaid costs and other 49 59
Total current assets 1,027 1,409
Property and equipment:    
Oil and natural gas properties, successful efforts method 32,559 31,706
Accumulated depletion and depreciation (10,138) (9,701)
Total oil and natural gas properties, net 22,421 22,005
Other property and equipment, net 350 308
Total property and equipment, net 22,771 22,313
Deferred loan costs, net 9 10
Goodwill 2,229 2,224
Intangible assets, net 18 19
Noncurrent derivative instruments 2 211
Other assets 112 108
Total assets 26,168 26,294
Current liabilities:    
Accounts payable - trade 61 50
Bank overdrafts 105 159
Revenue payable 258 253
Accrued drilling costs 605 574
Derivative instruments 292 0
Other current liabilities 339 320
Total current liabilities 1,660 1,356
Long-term debt 4,567 4,194
Deferred income taxes 1,612 1,808
Noncurrent derivative instruments 75 0
Asset retirement obligations and other long-term liabilities 195 168
Commitments and contingencies (Note 9)
Stockholders' equity:    
Common stock, $0.001 par value; 300,000,000 authorized; 201,755,333 and 201,288,884 shares issued at March 31, 2019 and December 31, 2018, respectively 0 0
Additional paid-in capital 14,797 14,773
Retained earnings 3,406 4,126
Treasury stock, at cost; 1,155,813 and 1,031,655 shares at March 31, 2019 and December 31, 2018, respectively (144) (131)
Total stockholders' equity 18,059 18,768
Total liabilities and stockholders' equity $ 26,168 $ 26,294
v3.19.1
Consolidated Balance Sheets (Parenthetical) - $ / shares
Mar. 31, 2019
Dec. 31, 2018
Statement of Financial Position [Abstract]    
Common stock, par value $ 0.001 $ 0.001
Common stock, shares authorized 300,000,000 300,000,000
Common stock, shares issued 201,755,333 201,288,884
Treasury shares 1,155,813 1,031,655
v3.19.1
Consolidated Statements of Operations - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Operating revenues:    
Total operating revenues $ 1,104 $ 947
Operating costs and expenses:    
Production and ad valorem taxes 86 70
Exploration and abandonments 47 18
Depreciation, depletion and amortization 465 317
Accretion of discount on asset retirement obligations 3 2
General and administrative (including non-cash stock-based compensation of $24 and $17 for the three months ended March 31, 2019 and 2018, respectively) 91 65
Loss on derivatives 1,059 35
Gain on disposition of assets, net (1) (723)
Transaction costs 0 7
Total operating costs and expenses 1,950 (68)
Income (loss) from operations (846) 1,015
Other income (expense):    
Interest expense (47) (30)
Other, net 4 104
Total other income (expense) (43) 74
Income (loss) before income taxes (889) 1,089
Income tax (expense) benefit 194 (254)
Net income (loss) $ (695) $ 835
Earnings per share:    
Basic net income (loss) $ (3.49) $ 5.6
Diluted net income (loss) $ (3.49) $ 5.58
Oil [Member]    
Operating revenues:    
Total operating revenues $ 935 $ 793
Natural Gas [Member]    
Operating revenues:    
Total operating revenues 169 154
Oil And Natural Gas Production [Member]    
Operating costs and expenses:    
Operating costs and expenses 174 130
Gathering, Processing and Transportation    
Operating costs and expenses:    
Operating costs and expenses $ 26 $ 11
v3.19.1
Consolidated Statements of Operations (Parenthetical) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Income Statement [Abstract]    
Non-cash stock-based compensation $ 24 $ 17
v3.19.1
Consolidated Statements of Stockholders Equity - USD ($)
shares in Thousands, $ in Millions
Total
Common Stock [Member]
Additional Paid In Capital [Member]
Retained Earnings [Member]
Treasury Stock [Member]
BALANCE at Dec. 31, 2017 $ 8,915 $ 0 $ 7,142 $ 1,840 $ (67)
BALANCE, Shares at Dec. 31, 2017   149,325     598
Net income (loss) 835 $ 0 0 835 $ 0
Grants of restricted stock, shares   112      
Performance unit share conversion, shares   446      
Cancellation of restricted stock, shares   (13)      
Stock-based compensation 17   17    
Purchase of treasury stock (29)       $ (29)
Purchase of treasury stock, shares         202
BALANCE, Shares at Mar. 31, 2018   149,870     800
BALANCE at Mar. 31, 2018 9,738 $ 0 7,159 2,675 $ (96)
BALANCE at Dec. 31, 2018 18,768 $ 0 14,773 4,126 $ (131)
BALANCE, Shares at Dec. 31, 2018   201,289     1,032
Net income (loss) (695) $ 0 0 (695) $ 0
Common stock dividends ($0.125 per share) (25)     (25)  
Grants of restricted stock, shares   235      
Performance unit share conversion, shares   246      
Cancellation of restricted stock, shares   (15)      
Stock-based compensation 24 $ 0 24 0 0
Purchase of treasury stock (13) $ 0 0 0 $ (13)
Purchase of treasury stock, shares         124
BALANCE, Shares at Mar. 31, 2019   201,755     1,156
BALANCE at Mar. 31, 2019 $ 18,059 $ 0 $ 14,797 $ 3,406 $ (144)
v3.19.1
Consolidated Statements of Stockholders Equity (Parenthetical)
Mar. 31, 2019
$ / shares
Statement of Stockholders' Equity [Abstract]  
Dividends declared, amount per share $ 0.125
v3.19.1
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income (loss) $ (695) $ 835
Adjustments to reconcile net income (loss) to net cash provided by operating activities:    
Depreciation, depletion and amortization 465 317
Accretion of discount on asset retirement obligations 3 2
Exploration and abandonments 38 10
Non-cash stock-based compensation expense 24 17
Deferred income taxes (194) 254
Gain on disposition of assets, net (1) (723)
Loss on derivatives 1,059 35
Net settlements on derivatives 0 (112)
Other 2 (96)
Changes in operating assets and liabilities, net of acquisitions and dispositions:    
Accounts receivable (111) (81)
Prepaid costs and other 9 (2)
Inventory 0 3
Accounts payable 11 (12)
Revenue payable 8 2
Other current liabilities 5 39
Net cash provided by operating activities 623 488
CASH FLOWS FROM INVESTING ACTIVITIES:    
Additions to oil and natural gas properties (885) (474)
Acquisitions of oil and natural gas properties (5) (13)
Additions to property, equipment and other assets (15) (6)
Proceeds from the disposition of assets 5 255
Direct transaction costs for disposition of assets (2) (3)
Distribution from equity method investment 0 148
Net cash used in investing activities (902) (93)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Borrowings under credit facility 1,112 662
Payments on credit facility (739) (984)
Payment of common stock dividends (25) 0
Purchase of treasury stock (13) (29)
Decrease in bank overdrafts (54) (44)
Other (2) 0
Net cash provided by (used in) financing activities 279 (395)
Net increase in cash and cash equivalents 0 0
Cash and cash equivalents at beginning of period 0 0
Cash and cash equivalents at end of period $ 0 $ 0
v3.19.1
Organization and nature of operations
3 Months Ended
Mar. 31, 2019
Organization and nature of operations [Abstract]  
Organization and nature of operations

Note 1Organization and nature of operations

Concho Resources Inc. (the “Company”) is a Delaware corporation formed on February 22, 2006. The Company’s principal business is the acquisition, development, exploration and production of oil and natural gas properties primarily located in the Permian Basin of West Texas and Southeast New Mexico.

v3.19.1
Basis of presentation and summary of significant accounting policies
3 Months Ended
Mar. 31, 2019
Basis of presentation and summary of significant accounting policies [Abstract]  
Basis of presentation and summary of significant accounting policies

Note 2Basis of presentation and summary of significant accounting policies

A complete discussion of the Company’s significant accounting policies is included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 (“2018 Form 10-K”).

Principles of consolidation. The consolidated financial statements of the Company include the accounts of the Company and its 100 percent owned subsidiaries. The Company consolidates the financial statements of these entities. All material intercompany balances and transactions have been eliminated.

Reclassifications. Certain prior period amounts have been reclassified to conform to the 2019 presentation. These reclassifications had no impact on net income (loss), total assets, liabilities and stockholders’ equity or total cash flows.

Use of estimates in the preparation of financial statements. Preparation of financial statements in conformity with Generally Accepted Accounting Principles in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates. Depletion of oil and natural gas properties is determined using estimates of proved oil and natural gas reserves. There are numerous uncertainties inherent in the estimation of quantities of proved oil and natural gas reserves and in the projection of future rates of production and the timing of development expenditures. Similarly, evaluations for impairment of proved and unproved oil and natural gas properties are subject to numerous uncertainties including, among others, estimates of future recoverable reserves, commodity price outlooks and prevailing market rates of other sources of income and costs. Other significant estimates include, but are not limited to, asset retirement obligations, goodwill, fair value of stock-based compensation, fair value of business combinations, fair value of nonmonetary transactions, fair value of derivative financial instruments and income taxes.

Interim financial statements. The accompanying consolidated financial statements of the Company have not been audited by the Company’s independent registered public accounting firm, except that the consolidated balance sheet at December 31, 2018 is derived from audited consolidated financial statements. In the opinion of management, the accompanying consolidated financial statements reflect all adjustments necessary to present fairly the Company’s consolidated financial statements. All such adjustments are of a normal, recurring nature. In preparing the accompanying consolidated financial statements, management has made certain estimates and assumptions that affect reported amounts in the consolidated financial statements and disclosures of contingencies. Actual results may differ from those estimates. The results for interim periods are not necessarily indicative of annual results.

Certain disclosures have been condensed in or omitted from these consolidated financial statements. Accordingly, these condensed notes to the consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s 2018 Form 10-K.

Equity method investments. The Company accounts for its equity method investments under the equity method of accounting and includes the investment balance in other assets on the consolidated balance sheets. Gains and losses incurred from the Company’s equity investments are recorded in other income (expense) on the consolidated statements of operations.

At March 31, 2019, the Company owned a 23.75 percent membership interest in Oryx Southern Delaware Holdings, LLC (“Oryx”), an entity that operates a crude oil gathering and transportation system in the Delaware Basin. In February 2018, Oryx obtained a term loan of $800 million. The proceeds were used in part to fund a cash distribution to its equity holders, of which the Company received a distribution of approximately $157 million. Of this amount, approximately $54 million fully offset the Company’s net investment in Oryx. The remaining distribution of approximately $103 million was recorded in other income (expense) on the Company’s consolidated statement of operations since the lenders to the term loan do not have recourse against the Company, and the Company has no contractual obligation to repay the distribution.

The Company’s net investment in Oryx was zero at March 31, 2019 and December 31, 2018. The Company did not record income or loss on the Oryx investment for the three months ended March 31, 2019, as cumulative net income had yet to exceed the distribution in excess of the Company’s investment. In April 2019, Oryx entered into an agreement to sell 100 percent of its equity interests, which included the Company’s 23.75 percent membership interest.

Litigation contingencies. The Company is a party to proceedings and claims incidental to its business. In each reporting period, the Company assesses these claims in an effort to determine the degree of probability and range of possible loss for potential accrual in its consolidated financial statements. The amount of any resulting losses may differ from these estimates. An accrual is recorded for a material loss contingency when its occurrence is probable and damages are reasonably estimable. See Note 9 for additional information.

Revenue recognition. The Company recognizes revenues from the sales of oil and natural gas to its customers and presents them disaggregated on the Company’s consolidated statements of operations. All revenues are recognized in the geographical region of the Permian Basin.

The Company enters into contracts with customers to sell its oil and natural gas production. Revenue on these contracts is recognized in accordance with the five-step revenue recognition model prescribed in Accounting Standards Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers,” (“ASC 606”). Specifically, revenue is recognized when the Company’s performance obligations under these contracts are satisfied, which generally occurs with the transfer of control of the oil and natural gas to the purchaser. Control is generally considered transferred when the following criteria are met: (i) transfer of physical custody, (ii) transfer of title, (iii) transfer of risk of loss and (iv) relinquishment of any repurchase rights or other similar rights. Given the nature of the products sold, revenue is recognized at a point in time based on the amount of consideration the Company expects to receive in accordance with the price specified in the contract. Consideration under the oil and natural gas marketing contracts is typically received from the purchaser one to two months after production. At March 31, 2019 and December 31, 2018, the Company had receivables related to contracts with customers of approximately $530 million and $466 million, respectively.

Oil Contracts. The majority of the Company’s oil marketing contracts transfer physical custody and title at or near the wellhead, which is generally when control of the oil has been transferred to the purchaser. The majority of the oil produced is sold under contracts using market-based pricing which is then adjusted for differentials based upon delivery location and oil quality. To the extent the differentials are incurred after the transfer of control of the oil, the differentials are included in oil sales on the consolidated statements of operations as they represent part of the transaction price of the contract. If the differentials, or other related costs, are incurred prior to the transfer of control of the oil, those costs are included in gathering, processing and transportation on the Company’s consolidated statements of operations as they represent payment for services performed outside of the contract with the customer.

Natural Gas Contracts. The majority of the Company’s natural gas is sold at the lease location, which is generally when control of the natural gas has been transferred to the purchaser. The natural gas is sold under (i) percentage of proceeds processing contracts, (ii) fee-based contracts or (iii) a hybrid of percentage of proceeds and fee-based contracts. Under the majority of the Company’s contracts, the purchaser gathers the natural gas in the field where it is produced and transports it via pipeline to natural gas processing plants where natural gas liquid products are extracted. The natural gas liquid products and remaining residue gas are then sold by the purchaser. Under the percentage of proceeds and hybrid percentage of proceeds and fee-based contracts, the Company receives a percentage of the value for the extracted liquids and the residue gas. Under the fee-based contracts, the Company receives natural gas liquids and residue gas value, less the fee component, or is invoiced the fee component. To the extent control of the natural gas transfers upstream of the transportation and processing activities, revenue is recognized as the net amount received from the purchaser. To the extent that control transfers downstream of those costs, revenue is recognized on a gross basis, and the related costs are classified in gathering, processing and transportation on the Company’s consolidated statements of operations.

The Company does not disclose the value of unsatisfied performance obligations under its contracts with customers as it applies the practical exemption in accordance with ASC 606. The exemption, as described in ASC 606-10-50-14(a), applies to variable consideration that is recognized as control of the product is transferred to the customer. Since each unit of product represents a separate performance obligation, future volumes are wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations is not required.

General and administrative expense. The Company receives fees for the operation of jointly-owned oil and natural gas properties during the drilling and production phases and records such reimbursements as reductions to general and administrative expense. Such fees totaled approximately $4 million for each of the three months ended March 31, 2019 and 2018.

Recently adopted accounting pronouncements. In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, “Leases (Topic 842)(“ASU 2016-02”), which requires all leases with a term greater than one year to be recognized on the consolidated balance sheet while maintaining similar classifications for finance and operating leases. Lease expense recognition on the consolidated statements of operations was effectively unchanged. The Company adopted this guidance on January 1, 2019. The Company made policy elections not to capitalize short-term leases for all asset classes and not to separate non-lease components from lease components for all asset classes except for vehicles. The Company also did not elect the package of practical expedients that allowed for certain considerations under the original “Leases (Topic 840)” accounting standard (“Topic 840”) to be carried forward upon adoption of ASU 2016-02.

In January 2018, the FASB issued ASU No. 2018-01, “Land Easement Practical Expedient for Transition to Topic 842,” which provides an optional practical expedient not to evaluate land easements that existed or expired before the adoption of ASU 2016-02 and that were not previously accounted for as leases under Topic 840. The Company enters into land easements on a routine basis as part of its ongoing operations and has many such agreements currently in place; however, the Company does not currently account for any land easements under Topic 840. As this guidance serves as an amendment to ASU 2016-02, the Company elected this practical expedient, which became effective upon the date of adoption of ASU 2016-02. The Company will assess any new land easements to determine whether the arrangement should be accounted for as a lease. In July 2018, the FASB issued ASU No. 2018-11, “Targeted Improvements,” which provides a transition election not to restate comparative periods for the effects of applying the new lease standard. This transition election permits entities to change the date of initial application to the beginning of the year of adoption and to recognize the effects of applying the new standard as a cumulative-effect adjustment to the opening balance of retained earnings. The Company elected this transition approach, however the cumulative impact of adoption in the opening balance of retained earnings as of January 1, 2019 was zero.

The Company enters into lease agreements to support its operations. These agreements are for leases on assets such as office space, vehicles, field equipment and drilling rigs. Upon adoption, the Company recognized $35 million of right-of-use assets, of which approximately $19 million and $16 million relate to the Company’s operating and finance leases, respectively, and approximately $37 million of associated lease liabilities. See Note 9 for additional disclosures of the Company’s leases.

In August 2018, the Securities and Exchange Commission (“SEC”) issued a final rule that amends certain of its disclosure requirements that have become redundant, duplicative, overlapping, outdated or superseded, in light of other disclosure requirements, U.S. GAAP or changes in the information environment. The amendments are intended to facilitate the disclosure of information to investors and simplify compliance without significantly altering the total mix of information provided to investors. The final rule amends numerous SEC rules, items and forms covering a diverse group of topics, including, but not limited to, changes in stockholders’ equity. The final rule extends the annual disclosure requirement in SEC Regulation S-X, Rule 3-04, of presenting changes in stockholders’ equity to interim periods. The registrants are required to analyze changes in stockholders’ equity in the form of a reconciliation for the current quarter and year-to-date interim periods and comparative periods in the prior year. As a result, the Company updated its presentation of the consolidated statements of stockholders’ equity to include comparative periods in the prior year. In addition, the final rule requires the presentation of dividends per share to be disclosed in the statement of stockholders’ equity.

New accounting pronouncements issued but not yet adopted. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments–Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“Topic 326”), which replaces the current “incurred loss” methodology for recognizing credit losses with an “expected loss” methodology. This new methodology requires that a financial asset measured at amortized cost be presented at the net amount expected to be collected. This standard is intended to provide more timely decision-useful information about the expected credit losses on financial instruments. In November 2018, the FASB issued ASU No. 2018-19, “Codification Improvements to Topic 326, Financial Instruments–Credit Losses,” which makes amendments to clarify the scope of the guidance, including the amendment clarifying that receivables arising from operating leases are not within the scope of Topic 326. This guidance is effective for fiscal years beginning after December 15, 2019, and early adoption is allowed as early as fiscal years beginning after December 15, 2018. The Company does not believe this new guidance will have a material impact on its consolidated financial statements.

In November 2018, the FASB issued ASU No. 2018-18, “Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606” (“ASU 2018-18”), which, among other things, clarifies that (i) certain transactions between collaborative arrangement participants should be accounted for as revenue under Topic 606 when the collaborative arrangement participant is a customer in the context of a unit of account, (ii) adds unit-of-account guidance in Topic 808 to align with the guidance in Topic 606 and (iii) requires that in a transaction with a collaborative arrangement participant that is not directly related to sales to third parties, presenting the transaction together with revenue recognized under Topic 606 is precluded if the collaborative arrangement participant is not a customer. ASU 2018-18 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years and early adoption is permitted. The amendments in this update should be applied retrospectively to the date of initial application of Topic 606. An entity should recognize the cumulative effect of initially applying the amendments as an adjustment to the opening balance of retained earnings of the later of the earliest annual period presented and the annual period that includes the date of the entity’s initial application of Topic 606. The Company is currently assessing the effect that ASU 2018-18 will have on its financial position, results of operations and disclosures.

v3.19.1
RSP acquisition
3 Months Ended
Mar. 31, 2019
RSP Acquisition [Abstract]  
RSP Acquisition

Note 3. RSP Acquisition

On July 19, 2018, the Company completed the acquisition of RSP Permian, Inc. (“RSP”) through an all-stock transaction (the “RSP Acquisition”) for approximately $7.5 billion.

Purchase price allocation. The RSP Acquisition has been accounted for as a business combination, using the acquisition method. The following table represents the allocation of the total purchase price of RSP to the identifiable assets acquired and the liabilities assumed based on the fair values at the acquisition date, with any excess of the purchase price over the estimated fair value of the identifiable net assets acquired recorded as goodwill. Any value assigned to goodwill is not deductible for income tax purposes.

The following table sets forth the Company’s preliminary purchase price allocation:

(in millions)
Total purchase price $7,549
Fair value of liabilities assumed:
Accounts payable – trade $48
Accrued drilling costs79
Current derivative instruments10
Other current liabilities124
Long-term debt1,758
Deferred income taxes 514
Asset retirement obligations 20
Noncurrent derivative instruments5
Total liabilities assumed$2,558
Total purchase price plus liabilities assumed$10,107
Fair value of assets acquired:
Accounts receivable$194
Current derivative instruments36
Other current assets21
Proved oil and natural gas properties 4,055
Unproved oil and natural gas properties 3,565
Other property and equipment5
Noncurrent derivative instruments2
Implied goodwill2,229
Total assets acquired $10,107

Pro forma data. The following unaudited pro forma combined condensed financial data for the three months ended March 31, 2018 was derived from the historical financial statements of the Company giving effect to the RSP Acquisition as if it had occurred on January 1, 2017. The below information reflects pro forma adjustments for the issuance of the Company’s common stock in exchange for RSP’s outstanding shares of common stock, as well as pro forma adjustments based on available information and certain assumptions that the Company believes are reasonable, including (i) the Company’s common stock issued to convert RSP’s outstanding shares of common stock and equity awards as of the closing date of the RSP Acquisition, (ii) the depletion of RSP’s fair-valued proved oil and natural gas properties and (iii) the estimated tax impacts of the pro forma adjustments.

The pro forma results of operations do not include any cost savings or other synergies that may result from the RSP Acquisition. The pro forma financial data does not include the pro forma results of operations for any other acquisitions made during the period. The pro forma combined condensed financial data has been included for comparative purposes only and is not necessarily indicative of the results that might have occurred had the RSP Acquisition taken place on January 1, 2017 and is not intended to be a projection of future results.

Three Months Ended
(in millions, except per share amounts)March 31, 2018
Operating revenues $1,226
Net income$931
Earnings per share:
Basic net income$4.66
Diluted net income$4.64
v3.19.1
Other acquisitions, divestitures and nonmonetary transactions
3 Months Ended
Mar. 31, 2019
Acquisitions, Divestitures, And Non-Monetary Transactions [Abstract]  
Acquisitions, divestitures and nonmonetary transactions

Note 4Other acquisitions, divestitures and nonmonetary transactions

During the three months ended March 31, 2018, the Company closed the following transactions:

February 2018 acquisition and divestiture. In February 2018, the Company closed an acquisition treated as a business combination where it received producing wells along with approximately 21,000 net acres, primarily located in the Midland Basin. As consideration for the non-cash acquisition, the Company divested of certain producing wells and approximately 34,000 net acres located primarily in the northern portion of the Delaware Basin. The business acquired was valued at approximately $755 million as compared to the historical book value of the divested assets of approximately $180 million, which resulted in a non-cash gain of approximately $575 million, included in gain on disposition of assets, net on the Company’s consolidated statement of operations for the three months ended March 31, 2018.

Delaware Basin divestitures. In January 2018, the Company closed on two asset divestitures of certain non-core assets in Reeves and Ward Counties, Texas, with combined proceeds of approximately $280 million. After direct transaction costs, the Company recorded a pre-tax gain of approximately $134 million, which is included in gain on disposition of assets, net on its consolidated statement of operations for the three months ended March 31, 2018. The assets divested included proved and unproved oil and natural gas properties on approximately 20,000 net acres.

Nonmonetary transactions. During the three months ended March 31, 2018, the Company completed multiple nonmonetary transactions. These transactions included exchanges of both proved and unproved oil and natural gas properties. Certain of these transactions were accounted for at fair value and, as a result, the Company recorded pre-tax gains of approximately $14 million, included in gain on disposition of assets, net on the Company’s consolidated statement of operations for the three months ended March 31, 2018.

v3.19.1
Stock incentive plan
3 Months Ended
Mar. 31, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock incentive plan

Note 5. Stock incentive plan

The Company’s 2015 Stock Incentive Plan (“the Plan”) provides for granting stock options, restricted stock awards and performance unit awards to directors, officers and employees of the Company. The restricted stock awards vest over a period ranging from one to ten years. The holders of unvested restricted stock awards have voting rights and the right to receive dividends.

In January 2019, the Company granted 212,947 performance unit awards. Included in this grant were 38,952 performance unit awards granted to certain officers, of which 19,476 have a three-year performance period and 19,476 have a five-year performance period. At the end of each performance period, each performance unit award will convert into a restricted stock award with the number of shares determined based upon performance criteria, which will then vest at a rate of 20 percent per year commencing on the sixth anniversary of the grant date. The total number of units converted to restricted stock awards will depend on the Company’s performance at the end of each performance period. All other performance unit awards have a three-year performance period.

Shares issued as a result of awards granted under the Plan are generally new common shares.

A summary of the Company’s restricted stock shares and performance unit activity under the Plan for the three months ended March 31, 2019 is presented below:

RestrictedPerformance
Stock SharesUnits
Outstanding at December 31, 2018 1,364,699218,391
Awards granted (a) 235,082212,947(b)
Awards cancelled / forfeited (14,947)-
Lapse of restrictions (146,048)-
Outstanding at March 31, 20191,438,786431,338
(a)Weighted average grant date fair value per share/unit$105.52$144.03
(b)Includes 38,952 performance award units granted to certain officers in January 2019 that may convert into shares of restricted stock awards at the end of each performance period that will be subject to additional vesting conditions.

The following table reflects the future stock-based compensation expense to be recorded for all the stock-based compensation awards that were outstanding at March 31, 2019:

(in millions)
Remaining 2019$61
2020 48
2021 22
2022 4
20232
20241
Thereafter2
Total $140
v3.19.1
Disclosures about fair value measurements
3 Months Ended
Mar. 31, 2019
Fair Value Disclosures [Abstract]  
Disclosures about fair value measurements

Note 6Disclosures about fair value measurements

The Company uses a valuation framework based upon inputs that market participants use in pricing an asset or liability, which are classified into two categories: observable inputs and unobservable inputs. Observable inputs represent market data obtained from independent sources, whereas unobservable inputs reflect a company’s own market assumptions, which are used if observable inputs are not reasonably available without undue cost and effort. These two types of inputs are further prioritized into the following fair value input hierarchy:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. The Company considers active markets to be those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. This category includes those derivative instruments that the Company values using observable market data. Substantially all of these inputs are observable in the marketplace throughout the full term of the derivative instrument, can be derived from observable data, or supported by observable levels at which transactions are executed in the marketplace. Level 2 instruments primarily include non-exchange traded derivatives such as over-the-counter commodity price swaps, basis swaps, collars and floors, investments and interest rate swaps. The Company’s valuation models are primarily industry-standard models that consider various inputs including: (i) quoted forward prices for commodities, (ii) time value, (iii) current market and contractual prices for the underlying instruments and (iv) volatility factors, as well as other relevant economic measures.

Level 3: Prices or valuation models that require inputs that are both significant to the fair value measurement and less observable from objective sources (i.e., supported by little or no market activity). The Company’s valuation models are primarily industry-standard models that consider various inputs including: (i) quoted forward prices for commodities, (ii) time value, (iii) current market and contractual prices for the underlying instruments and (iv) volatility factors, as well as other relevant economic measures.

Financial Assets and Liabilities Measured at Fair Value

The following table presents the carrying amounts and fair values of the Company’s financial instruments at March 31, 2019 and December 31, 2018:

March 31, 2019December 31, 2018
CarryingFairCarryingFair
(in millions)ValueValueValueValue
Assets:
Derivative instruments $3$3$695$695
Liabilities:
Derivative instruments$367$367$-$-
Credit facility$615$615$242$242
$600 million 4.375% senior notes due 2025 (a)$594$617$594$591
$1,000 million 3.75% senior notes due 2027 (a)$989$991$989$939
$1,000 million 4.3% senior notes due 2028 (a)$988$1,033$988$980
$800 million 4.875% senior notes due 2047 (a)$789$849$789$761
$600 million 4.85% senior notes due 2048 (a)$592$634$592$573
(a)The carrying value includes associated deferred loan costs and any discount.

Credit facility. The carrying amount of the Company’s credit facility, as amended and restated (the “Credit Facility”), approximates its fair value, as the applicable interest rates are variable and reflective of market rates.

Senior notes. The fair values of the Company’s senior notes are based on quoted market prices. The debt securities are not actively traded and, therefore, are classified as Level 2 in the fair value hierarchy.

Other financial assets and liabilities. The Company has other financial instruments consisting primarily of receivables, payables and other current assets and liabilities. The carrying amounts approximate fair value due to the short maturity of these instruments.

Derivative instruments. The fair value of the Company’s derivative instruments is estimated by management considering various factors, including closing exchange and over-the-counter quotations and the time value of the underlying commitments. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. The following tables summarize (i) the valuation of each of the Company’s financial instruments by required fair value hierarchy levels and (ii) the gross fair value by the appropriate balance sheet classification, even when the derivative instruments are subject to netting arrangements and qualify for net presentation in the Company’s consolidated balance sheets at March 31, 2019 and December 31, 2018. The Company nets the fair value of derivative instruments by counterparty in the Company’s consolidated balance sheets.

March 31, 2019
Fair Value Measurements UsingNet
Quoted PricesGrossFair Value
in ActiveSignificantAmountsPresented
Markets forOtherSignificantOffset in thein the
IdenticalObservableUnobservableTotalConsolidatedConsolidated
AssetsInputsInputsFairBalanceBalance
(in millions)(Level 1)(Level 2)(Level 3)ValueSheetSheet
Assets:
Current:
Commodity derivatives$-$57$-$57$(56)$1
Noncurrent:
Commodity derivatives- 29 - 29 (27) 2
Liabilities:
Current:
Commodity derivatives-(348)-(348)56(292)
Noncurrent:
Commodity derivatives- (102) - (102) 27 (75)
Net derivative instruments$-$(364)$-$(364)$-$(364)

December 31, 2018
Fair Value Measurements UsingNet
Quoted PricesGrossFair Value
in ActiveSignificantAmountsPresented
Markets forOtherSignificantOffset in thein the
Identical ObservableUnobservableTotalConsolidatedConsolidated
AssetsInputsInputsFairBalanceBalance
(in millions)(Level 1)(Level 2)(Level 3)ValueSheetSheet
Assets:
Current:
Commodity derivatives$-$543$- $ 543 $ (59) $ 484
Noncurrent:
Commodity derivatives- 243 - 243 (32) 211
Liabilities:
Current:
Commodity derivatives- (59) - (59) 59 -
Noncurrent:
Commodity derivatives- (32) - (32) 32 -
Net derivative instruments$-$695$- $ 695 $ - $ 695

Concentrations of credit risk. At March 31, 2019, the Company’s primary concentrations of credit risk are the risk of collecting accounts receivable and the risk of counterparties’ failure to perform under derivative obligations.

The Company has entered into International Swap Dealers Association Master Agreements (“ISDA Agreements”) with each of its derivative counterparties. The terms of the ISDA Agreements provide the Company and the counterparties with rights of set-off upon the occurrence of defined acts of default by either the Company or a counterparty to a derivative, whereby the party not in default may set off all derivative liabilities owed to the defaulting party against all derivative asset receivables from the defaulting party. See Note 7 for additional information regarding the Companys derivative activities and counterparties.

v3.19.1
Derivative financial instruments
3 Months Ended
Mar. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative financial instruments

Note 7Derivative financial instruments

The Company uses derivative financial instruments to manage its exposure to commodity price fluctuations. Commodity derivative instruments are used to (i) reduce the effect of the volatility of price changes on the oil and natural gas the Company produces and sells, (ii) support the Company’s capital budget and expenditure plans and (iii) support the economics associated with acquisitions. The Company does not enter into derivative financial instruments for speculative or trading purposes. The Company also enters into fixed-price forward physical power purchase contracts to manage the volatility of the price of power needed for ongoing operations. The Company may also enter into physical delivery contracts to effectively provide commodity price hedges. Because these physical contracts are not expected to be net cash settled, the Company has elected normal purchase or normal sale treatment and records these contracts at cost.

The Company does not designate its derivative instruments to qualify for hedge accounting. Accordingly, the Company reflects changes in the fair value of its derivative instruments in its consolidated statements of operations as they occur.

The following table summarizes the amounts reported in earnings related to the commodity derivative instruments for the three months ended March 31, 2019 and 2018:

Three Months Ended
March 31,
(in millions)20192018
Loss on derivatives:
Oil derivatives$(1,056)$(33)
Natural gas derivatives(3)(2)
Total$(1,059)$(35)
The following table represents the Company’s net cash receipts from (payments on) derivatives for the three months ended March 31, 2019 and 2018:
Three Months Ended
March 31,
(in millions)20192018
Net cash receipts from (payments on) derivatives:
Oil derivatives$3$(113)
Natural gas derivatives (3) 1
Total$-$(112)

Commodity derivative contracts. The following table sets forth the Company’s outstanding derivative contracts at March 31, 2019. When aggregating multiple contracts, the weighted average contract price is disclosed. All of the Company’s derivative contracts at March 31, 2019 are expected to settle by December 31, 2021.

FirstSecondThirdFourth
QuarterQuarterQuarterQuarterTotal
Oil Price Swaps: (a)
2019:
Volume (Bbl) -15,112,75013,378,00011,232,00039,722,750
Price per Bbl $-$56.59$56.41$55.88$56.33
2020:
Volume (Bbl) 10,502,50010,166,5009,453,0009,218,00039,340,000
Price per Bbl $57.28$57.24$57.18$57.14$57.21
2021:
Volume (Bbl) 2,160,0002,184,0002,024,0002,024,0008,392,000
Price per Bbl $54.57$54.57$54.50$54.50$54.54
Oil Costless Collars: (a)
2019:
Volume (Bbl) -1,213,2501,135,0001,058,0003,406,250
Ceiling price per Bbl $-$64.00$63.47$62.95$63.50
Floor price per Bbl $-$56.06$55.74$55.43$55.76
Oil Basis Swaps: (b)
2019:
Volume (Bbl) -11,965,50012,650,00015,133,00039,748,500
Price per Bbl $-$(3.03)$(2.82)$(2.32)$(2.69)
2020:
Volume (Bbl) 13,013,00010,192,00010,120,00010,120,00043,445,000
Price per Bbl $(0.53)$(0.70)$(0.71)$(0.71)$(0.65)
2021:
Volume (Bbl) 2,070,0002,093,0002,116,0002,116,0008,395,000
Price per Bbl $0.55$0.55$0.55$0.55$0.55
Natural Gas Price Swaps: (c)
2019:
Volume (MMBtu) -17,241,38717,298,53717,209,53551,749,459
Price per MMBtu$-$2.87$2.87$2.87$2.87
2020:
Volume (MMBtu) 6,233,5006,233,5006,118,0006,118,00024,703,000
Price per MMBtu$2.70$2.70$2.70$2.70$2.70
(a)The oil derivative contracts are settled based on the NYMEX – West Texas Intermediate (“WTI”) calendar-month average futures price.
(b)The basis differential price is between Midland – WTI and Cushing – WTI. The majority of these contracts are settled on a calendar-
month basis, while certain contracts assumed in the RSP Acquisition are settled on a trading-month basis.
(c)The natural gas derivative contracts are settled based on the NYMEX – Henry Hub last trading day futures price.

Derivative counterparties.  The Company uses credit and other financial criteria to evaluate the creditworthiness of counterparties to its derivative instruments. The Company believes that all of its derivative counterparties are currently acceptable credit risks. The Company is not required to provide credit support or collateral to any counterparties under its derivative contracts, nor are they required to provide credit support to the Company.

v3.19.1
Debt
3 Months Ended
Mar. 31, 2019
Debt Disclosure [Abstract]  
Debt

Note 8. Debt

The Company’s debt consisted of the following at March 31, 2019 and December 31, 2018:

March 31,December 31,
(in millions)20192018
Credit facility due 2022$615$242
4.375% unsecured senior notes due 2025 (a) 600 600
3.75% unsecured senior notes due 2027 1,000 1,000
4.3% unsecured senior notes due 2028 1,000 1,000
4.875% unsecured senior notes due 2047 800 800
4.85% unsecured senior notes due 2048 600 600
Unamortized original issue discount (10) (10)
Senior notes issuance costs, net(38)(38)
Less: current portion - -
Total long-term debt $4,567$4,194
(a)For each of the twelve-month periods beginning on January 15, 2020, 2021, 2022, 2023 and thereafter, these notes are callable at 103.281%, 102.188%, 101.094% and 100%, respectively.

Credit facility. The Company’s Credit Facility has a maturity date of May 9, 2022. At March 31, 2019, the Company’s commitments from its bank group were $2.0 billion, of which $1.4 billion was unused commitments, net of letters of credit. During the three months ended March 31, 2019, the weighted average interest rate on the Credit Facility was 4.4 percent. At March 31, 2019, certain of the Company’s 100 percent owned subsidiaries were guarantors under the Credit Facility.

Senior notes. Interest on the Company’s senior notes is paid in arrears semi-annually. The senior notes are fully and unconditionally guaranteed on a senior unsecured basis by certain of the Company’s 100 percent owned subsidiaries, subject to customary release provisions as described in Note 13, and rank equally in right of payments with one another.

At March 31, 2019, the Company was in compliance with the covenants under all of its debt instruments.

Interest expense. The following amounts have been incurred and charged to interest expense for the three months ended March 31, 2019 and 2018:

Three Months Ended
March 31,
(in millions)20192018
Cash payments for interest $63$18
Non-cash interest11
Net changes in accruals (13)12
Interest costs incurred5131
Less: capitalized interest(4)(1)
Total interest expense $47$30
v3.19.1
Commitments and contingencies
3 Months Ended
Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]  
Commitments and contingencies

Note 9Commitments and contingencies

Legal actions. The Company is a party to proceedings and claims incidental to its business. Assessing contingencies is highly subjective and requires judgment about uncertain future events. When evaluating contingencies related to legal proceedings, the Company may be unable to estimate losses due to a number of factors, including potential defenses, the procedural status of the matter in question, the presence of complex legal and/or factual issues, the ongoing discovery and/or development of information important to the matter. For material matters that the Company believes an unfavorable outcome is reasonably possible, it would disclose the nature of the matter and a range of potential exposure, unless an estimate cannot be made at this time. The Company does not believe that the loss for any other litigation matters and claims that are reasonably possible to occur will have a material adverse effect on its financial position, results of operations or liquidity. The Company will continue to evaluate proceedings and claims involving the Company on a regular basis and will establish and adjust any estimated accruals as appropriate.

Severance tax, royalty and joint interest audits The Company is subject to routine severance, royalty and joint interest audits from regulatory bodies and non-operators and makes accruals as necessary for estimated exposure when deemed probable and estimable. Additionally, the Company is subject to various possible contingencies that arise primarily from interpretations affecting the oil and natural gas industry. Such contingencies include differing interpretations as to the prices at which oil and natural gas sales may be made, the prices at which royalty owners may be paid for production from their leases, allowable costs under joint interest arrangements and other matters. Although the Company believes that it has estimated its exposure with respect to the various laws and regulations, administrative rulings and interpretations thereof, adjustments could be required as new interpretations and regulations are issued.

Commitments. The Company periodically enters into contractual arrangements under which the Company is committed to expend funds. These contractual arrangements relate to purchase agreements the Company has entered into including water commitment agreements, throughput volume delivery commitments, fixed and variable power commitments, sand commitment agreements, fixed asset commitments and maintenance commitments. The Company’s drilling rig commitments are considered leases under ASU 2016-02 and are included within the tables under the “Leases” section below. The following table summarizes the Company’s commitments at March 31, 2019:

(in millions)
Remaining 2019$35
202075
202176
202236
202333
202434
Thereafter96
Total$385

At March 31, 2019, the Company’s delivery commitments covered the following gross volumes of oil and natural gas:

OilNatural Gas
(MMBbl)(MMcf)
Remaining 2019122,697
20203610,286
20213921,627
20224116,425
20233316,425
20243316,470
Thereafter11432,850
Total308116,780
 

Other commitments. In May 2018, the Company entered into a one-year term oil marketing contract with a third-party purchaser. The contract requires the Company to deliver not less than seven thousand barrels per day. Should there be a delivery shortfall in any given month, the Company retains an option to deliver the shortfall volume in any two subsequent months; however, failure to meet this volume delivery commitment would result in a penalty equal to the volume shortfall multiplied by the then market price for oil. If production is not sufficient to meet the sales commitment, the Company may purchase commodities in the market to satisfy its commitment.

In January 2019, the Company entered into a firm sales agreement with a third-party purchaser. The purchaser provides integrated transportation and marketing optionality, including dock capacity in Corpus Christi, Texas. The agreement has a term that ends five years after the startup of Cactus II Pipeline system and requires the Company to deliver 50,000 barrels of oil per day that will receive waterborne market pricing.

Leases. The Company leases office space, office equipment, drilling rigs, field equipment and vehicles. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet. The Company elected a practical expedient to not separate non-lease components from lease components for the following asset types: office space, office equipment, drilling rigs, and field equipment. The Company did not elect this practical expedient for vehicle leases.

The following table provides supplemental consolidated balance sheet information related to leases at March 31, 2019:

(in millions) ClassificationMarch 31, 2019
Assets
Operating lease right-of-use assetsOther property and equipment, net$18
Finance lease right-of-use assetsOther property and equipment, net15
Total lease right-of-use assets (a)$33
Liabilities
Current:
Operating Other current liabilities$7
Finance Other current liabilities6
Noncurrent:
Operating Asset retirement obligations and other long-term liabilities13
Finance Asset retirement obligations and other long-term liabilities10
Total lease liabilities (a)$36
(a) Total lease right-of-use assets and lease liabilities are gross amounts and a portion of these costs will be reimbursed by other working interest owners.

The following table provides the components of lease cost, excluding lease cost related to short-term leases, for the three months ended March 31, 2019:

Three Months Ended
(in millions) ClassificationMarch 31, 2019
Operating lease costGeneral and administrative$2
Finance lease costDepreciation, depletion, and amortization (a)2
Total lease cost$4
(a)Interest on lease liabilities related to finance leases was immaterial during the three months ended March 31, 2019.

The Company’s short-term leases are comprised primarily of drilling rigs and certain field equipment. During the three months ended March 31, 2019, the Company’s gross lease cost related to its short-term leases was $94 million, of which $67 million was capitalized as part of oil and natural gas properties. A portion of these costs was reimbursed to the Company by other working interest owners.

The following table summarizes supplemental cash flow information related to leases for the three months ended March 31, 2019:

Three Months Ended
(in millions) March 31, 2019
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases$2
Financing cash flows from finance leases$2
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$-
Finance leases$3

The following table provides lease terms and discount rates related to leases at March 31, 2019:

March 31, 2019
Weighted average remaining lease term (years):
Operating leases3.5
Finance leases2.9
Weighted average discount rate:
Operating leases4.9%
Finance leases4.4%

The following table provides maturities of lease liabilities at March 31, 2019:

(in millions) Operating LeasesFinance Leases
Remaining 2019$6$5
202086
202164
202212
Thereafter 1-
Total lease payments2217
Less: interest(2)(1)
Present value of lease liabilities$20$16

As discussed in Note 2, the Company elected a transition method to recognize the effects of applying the new standard as a cumulative-effect adjustment to the opening balance of retained earnings. Per ASU 2016-02, an entity electing this transition method should provide the required disclosures under Topic 840 for all periods that continue to be in accordance with Topic 840. As such, the Company included the future minimum lease commitments table below as of December 31, 2018. In addition, lease payments associated with these operating leases were $3 million for the three months ended March 31, 2018.

Future minimum lease commitments under non-cancellable leases at December 31, 2018 were as follows:

(in millions)
2019$14
202012
202110
20223
2023-
Thereafter 1
Total $40
v3.19.1
Income taxes
3 Months Ended
Mar. 31, 2019
Income Tax Disclosure [Abstract]  
Income taxes

Note 10. Income taxes

 

The Company’s provision for income taxes is based on the estimated annual effective tax rate plus discrete items. For the three months ended March 31, 2019 and 2018, the Company recorded an income tax benefit of approximately $194 million and an income tax expense of approximately $254 million, respectively. The change is primarily due to the pre-tax loss for the three months ended March 31, 2019 as compared to the pre-tax income for the three months ended March 31, 2018.

The effective income tax rates were 22 percent and 23 percent for the three months ended March 31, 2019 and 2018, respectively.

The difference between the Company’s effective tax rates for the three months ended March 31, 2019 as compared to 2018 is primarily due to the research and development credit, net of unrecognized tax benefits, partially offset by the impact of other items. The Company recorded a discrete income tax benefit related to stock-based awards of approximately $2 million for each of the three months ended March 31, 2019 and 2018.

The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based upon the technical merits of the position. At December 31, 2018, the Company had cumulative unrecognized tax benefits of approximately $63 million, primarily related to research and development credits. As of March 31, 2019, the Company estimated an increase in cumulative unrecognized tax benefits for the 2019 tax year of approximately $16 million. If all or a portion of the unrecognized tax benefit is sustained upon examination by the taxing authorities, the tax benefit will be recognized as a reduction to the Company's deferred tax liability and will affect the Company's effective tax rate in the period recognized. The timing as to when the Company will substantially resolve the uncertainties associated with the unrecognized tax benefit is uncertain

v3.19.1
Related party transactions
3 Months Ended
Mar. 31, 2019
Related Party Transactions [Abstract]  
Related party transactions

Note 11. Related party transactions

The Company paid royalties on certain properties to a partnership in which a director of the Company is the general partner and owns a 3.5 percent partnership interest.

At March 31, 2019, the Company had an ownership interest in an entity that operates and manages various water infrastructure assets located in the Permian Basin and accounts for this investment using the equity method. The Company also has a water management services agreement with this entity under which the Company pays a fee for each barrel of produced water.

The payments to the Company’s related parties totaled approximately $6 million and $1 million for the three months ended March 31, 2019 and 2018, respectively.

v3.19.1
Earnings per share
3 Months Ended
Mar. 31, 2019
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract]  
Earnings per share

Note 12. Earnings per share

The Company uses the two-class method of calculating earnings per share because certain of the Company’s unvested share-based awards qualify as participating securities.

The Company’s basic earnings (loss) per share attributable to common stockholders is computed as (i) net income (loss) as reported, (ii) less participating basic earnings (iii) divided by weighted average basic common shares outstanding. The Company’s diluted earnings (loss) per share attributable to common stockholders is computed as (i) basic earnings (loss) attributable to common stockholders, (ii) plus reallocation of participating earnings (iii) divided by weighted average diluted common shares outstanding.

The following table reconciles the Company’s earnings (loss) from operations and earnings (loss) attributable to common stockholders to the basic and diluted earnings (loss) used to determine the Company’s earnings (loss) per share amounts for the three months ended March 31, 2019 and 2018, respectively, under the two-class method:

Three Months Ended
March 31,
(in millions)20192018
Net income (loss) as reported$(695)$835
Participating basic earnings (a)-(6)
Basic earnings (loss) attributable to common stockholders(695)829
Reallocation of participating earnings--
Diluted earnings (loss) attributable to common stockholders$(695)$829
(a)Unvested restricted stock awards represent participating securities because they participate in nonforfeitable dividends or distributions with the common equity holders of the Company. Participating earnings represent the distributed and undistributed earnings of the Company attributable to the participating securities. Unvested restricted stock awards do not participate in undistributed net losses as they are not contractually obligated to do so.

The following table is a reconciliation of the basic weighted average common shares outstanding to diluted weighted average common shares outstanding for the three months ended March 31, 2019 and 2018:

Three Months Ended
March 31,
(in thousands)20192018
Weighted average common shares outstanding:
Basic 199,148147,925
Dilutive performance units -537
Diluted 199,148148,462

The following table is a summary of the performance units that were not included in the computation of diluted earnings per share, as inclusion of these items would be antidilutive:

Three Months Ended
March 31,
(in thousands)20192018
Number of antidilutive units:
Performance units 324-

Performance unit awards. The number of shares of common stock that will ultimately be issued for performance units will be determined by a combination of (i) comparing the Company’s total shareholder return relative to the total shareholder return of a predetermined group of peer companies at the end of the performance period and (ii) the Company’s absolute total shareholder return at the end of the performance period. The performance period on these awards can range from three to five years. The actual payout of shares will be between zero and 300 percent. See Note 5 for additional information on performance unit awards.

v3.19.1
Subsidiary guarantors
3 Months Ended
Mar. 31, 2019
Guarantees [Abstract]  
Subsidiary guarantors

Note 13. Subsidiary guarantors

At March 31, 2019, certain of the Company’s 100 percent owned subsidiaries have fully and unconditionally guaranteed the Company’s senior notes. The indentures governing the Company’s senior notes provide that the guarantees of its subsidiary guarantors will be released in certain customary circumstances including (i) in connection with any sale, exchange or other disposition, whether by merger, consolidation or otherwise, of the capital stock of that guarantor to a person that is not the Company or a restricted subsidiary of the Company, such that, after giving effect to such transaction, such guarantor would no longer constitute a subsidiary of the Company, (ii) in connection with any sale, exchange or other disposition (other than a lease) of all or substantially all of the assets of that guarantor to a person that is not the Company or a restricted subsidiary of the Company, (iii) upon the merger of a guarantor into the Company or any other guarantor or the liquidation or dissolution of a guarantor, (iv) if the Company designates any restricted subsidiary that is a guarantor to be an unrestricted subsidiary in accordance with the indenture, (v) upon legal defeasance or satisfaction and discharge of the indenture and (vi) upon written notice of such release or discharge by the Company to the trustee following the release or discharge of all guarantees by such guarantor of any indebtedness that resulted in the creation of such guarantee, except a discharge or release by or as a result of payment under such guarantee.

See Note 8 for a summary of the Company’s senior notes. In accordance with practices accepted by the SEC, the Company has prepared condensed consolidating financial statements in order to quantify the assets, results of operations and cash flows of such subsidiaries as subsidiary guarantors. In addition, certain of the Company’s subsidiaries do not guarantee the Company’s senior notes and are included in the Company’s consolidated financial statements. These entities are 100 percent owned subsidiaries and are referred to as a “Subsidiary Non-Guarantor” in the tables below. The Company’s less than 100 percent owned subsidiaries, primarily equity method investments, do not guarantee the Company’s senior notes.

The following condensed consolidating balance sheets at March 31, 2019 and December 31, 2018, condensed consolidating statements of operations for the three months ended March 31, 2019 and 2018 and condensed consolidating statements of cash flows for the three months ended March 31, 2019 and 2018, present financial information for Concho Resources Inc. as the parent on a stand-alone basis (carrying any investments in subsidiaries under the equity method), financial information for the subsidiary guarantors on a stand-alone basis (carrying any investment in non-guarantor subsidiaries under the equity method), financial information for the subsidiary non-guarantors on a stand-alone basis and the consolidation and elimination entries necessary to arrive at the information for the Company on a consolidated basis. All current and deferred income taxes are recorded on Concho Resources Inc., as the subsidiaries are flow-through entities for income tax purposes. The subsidiary guarantors and subsidiary non-guarantors are not restricted from making distributions to the Company.

Condensed Consolidating Balance Sheet
March 31, 2019
ParentSubsidiarySubsidiaryConsolidating
(in millions)  Issuer  GuarantorsNon-GuarantorEntries  Total
ASSETS        
Accounts receivable - related parties   $18,518$-$-$(18,518)$-
Other current assets   61,021--1,027
Oil and natural gas properties, net   -22,40516-22,421
Property and equipment, net   -350--350
Investment in subsidiaries   5,629--(5,629)-
Goodwill-2,229--2,229
Other long-term assets   15126--141
Total assets   $24,168    $26,131$16    $(24,147)    $26,168
        
LIABILITIES AND EQUITY      
Accounts payable - related parties   $-$18,502$16$(18,518)$-
Other current liabilities   3681,292--1,660
Long-term debt   4,567---4,567
Other long-term liabilities   1,174708--1,882
Equity   18,0595,629-(5,629)18,059
Total liabilities and equity   $24,168  $26,131$16  $(24,147)  $26,168

Condensed Consolidating Balance Sheet
December 31, 2018
ParentSubsidiarySubsidiaryConsolidating
(in millions)  Issuer  GuarantorsNon-GuarantorEntries  Total
ASSETS      
Accounts receivable - related parties   $18,155$-$-$(18,155)$-
Other current assets   534875--1,409
Oil and natural gas properties, net   -21,98817-22,005
Property and equipment, net   -308--308
Investment in subsidiaries   5,411--(5,411)-
Goodwill  -2,224--2,224
Other long-term assets   224124--348
Total assets   $24,324    $25,519$17$(23,566)    $26,294
      
LIABILITIES AND EQUITY    
Accounts payable - related parties   $-$18,138$17$(18,155)$-
Other current liabilities   701,286--1,356
Long-term debt   4,194---4,194
Other long-term liabilities   1,292684--1,976
Equity   18,7685,411-(5,411)18,768
Total liabilities and equity   $24,324  $25,519$17$(23,566)  $26,294

Condensed Consolidating Statement of Operations
Three Months Ended March 31, 2019
ParentSubsidiarySubsidiaryConsolidating
(in millions)  IssuerGuarantorsNon-GuarantorEntries  Total
  
Total operating revenues $ - $ 1,104 $ - $ - $ 1,104
Total operating costs and expenses (1,060)(890)--(1,950)
Income (loss) from operations (1,060)214--(846)
Interest expense (47)---(47)
Other, net 2184-(218)4
Income (loss) before income taxes (889)218-(218)(889)
Income tax benefit 194---194
Net income (loss) $(695)$218$-$(218)$(695)

Condensed Consolidating Statement of Operations
Three Months Ended March 31, 2018
ParentSubsidiarySubsidiaryConsolidating
(in millions)  IssuerGuarantorsNon-GuarantorsEntries  Total
  
Total operating revenues $ - $ 942 $ 5 $ - $ 947
Total operating costs and expenses (34)105(3)-68
Income (loss) from operations (34)1,0472-1,015
Interest expense (30)---(30)
Other, net 1,153104-(1,153)104
Income before income taxes 1,0891,1512(1,153)1,089
Income tax expense (254)---(254)
Net income $835$1,151$2$(1,153)$835

Condensed Consolidating Statement of Cash Flows
Three Months Ended March 31, 2019
ParentSubsidiarySubsidiaryConsolidating
(in millions)  IssuerGuarantorsNon-GuarantorEntriesTotal
  
Net cash flows provided by (used in) operating activities$(335)$958$-$-$623
Net cash flows used in investing activities-(902)--(902)
Net cash flows provided by (used in) financing activities335(56)--279
Net increase in cash and cash equivalents-----
Cash and cash equivalents at beginning of period-----
Cash and cash equivalents at end of period $-$-$-$-$-

Condensed Consolidating Statement of Cash Flows
Three Months Ended March 31, 2018
ParentSubsidiarySubsidiaryConsolidating
(in millions)  IssuerGuarantorsNon-GuarantorEntriesTotal
  
Net cash flows provided by operating activities$351$137$-$-$488
Net cash flows used in investing activities-(93)--(93)
Net cash flows used in financing activities(351)(44)--(395)
Net increase in cash and cash equivalents-----
Cash and cash equivalents at beginning of period-----
Cash and cash equivalents at end of period $-$-$-$-$-
v3.19.1
Subsequent events
3 Months Ended
Mar. 31, 2019
Subsequent Events [Abstract]  
Subsequent events

Note 14. Subsequent events

Oryx divestiture. In April 2019, Oryx entered into an agreement to sell 100 percent of its equity interests. The Company expects to receive approximately $300 million, net of closing costs, for its 23.75 percent membership interest.

Midstream joint venture. In April 2019, the Company entered into a midstream joint venture, Beta Holding Company, LLC (“Beta Holding”), to construct a pipeline to gather and transport oil production in the Midland Basin. The Company also entered into a ten-year dedication agreement with an affiliate of Beta Holding to transport the Company’s oil production in the Midland Basin. The Company owns a 50 percent membership interest in Beta Holding.

2019 dividends. On April 30, 2019, the Company’s board of directors approved a cash dividend of $0.125 per share for the second quarter of 2019 that is expected to be paid on June 28, 2019 to stockholders of record as of May 10, 2019.

New commodity derivative contracts. After March 31, 2019, the Company entered into the following derivative contracts to hedge additional amounts of estimated future production

FirstSecondThirdFourth
QuarterQuarterQuarterQuarterTotal
Oil Price Swaps: (a)
2019:
Volume (Bbl) -1,707,0001,451,0001,281,0004,439,000
Price per Bbl $-$62.64$63.14$63.43$63.03
2021:
Volume (Bbl) 1,170,0001,183,0001,196,0001,196,0004,745,000
Price per Bbl $56.72$56.72$56.72$56.72$56.72
Oil Basis Swaps: (b)
2019:
Volume (Bbl) --92,000920,0001,012,000
Price per Bbl $-$-$(1.05)$(0.07)$(0.16)
2020:
Volume (Bbl) 1,092,000---1,092,000
Price per Bbl $0.10$-$-$-$0.10
2021:
Volume (Bbl) 540,000546,000552,000552,0002,190,000
Price per Bbl $0.50$0.50$0.50$0.50$0.50
(a) The oil derivative contracts are settled based on the NYMEX – WTI calendar-month average futures price.
(b) The basis differential price is between Midland – WTI and Cushing – WTI. These contracts are settled on a calendar-month basis.
v3.19.1
Supplementary Information
3 Months Ended
Mar. 31, 2019
Supplementary Information [Abstract]  
Supplementary information

Note 15. Supplementary information

Capitalized costs

March 31,December 31,
(in millions)20192018
Oil and natural gas properties:
Proved $26,000$24,992
Unproved 6,5596,714
Less: accumulated depletion (10,138)(9,701)
Net capitalized costs for oil and natural gas properties $ 22,421 $ 22,005

Costs incurred for oil and natural gas producing activities

Three Months Ended
March 31,
(in millions)20192018
Property acquisition costs:
Proved $-$-
Unproved 413
Exploration 462243
Development 464207
Total costs incurred for oil and natural gas properties $930$463
v3.19.1
Basis of presentation and summary of significant accounting policies (Policies)
3 Months Ended
Mar. 31, 2019
Basis of presentation and summary of significant accounting policies [Abstract]  
Principles of consolidation

Principles of consolidation. The consolidated financial statements of the Company include the accounts of the Company and its 100 percent owned subsidiaries. The Company consolidates the financial statements of these entities. All material intercompany balances and transactions have been eliminated.

Reclassifications

Reclassifications. Certain prior period amounts have been reclassified to conform to the 2019 presentation. These reclassifications had no impact on net income (loss), total assets, liabilities and stockholders’ equity or total cash flows.

Use of estimates in the preparation of financial statements

Use of estimates in the preparation of financial statements. Preparation of financial statements in conformity with Generally Accepted Accounting Principles in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates. Depletion of oil and natural gas properties is determined using estimates of proved oil and natural gas reserves. There are numerous uncertainties inherent in the estimation of quantities of proved oil and natural gas reserves and in the projection of future rates of production and the timing of development expenditures. Similarly, evaluations for impairment of proved and unproved oil and natural gas properties are subject to numerous uncertainties including, among others, estimates of future recoverable reserves, commodity price outlooks and prevailing market rates of other sources of income and costs. Other significant estimates include, but are not limited to, asset retirement obligations, goodwill, fair value of stock-based compensation, fair value of business combinations, fair value of nonmonetary transactions, fair value of derivative financial instruments and income taxes.

Interim financial statements

Interim financial statements. The accompanying consolidated financial statements of the Company have not been audited by the Company’s independent registered public accounting firm, except that the consolidated balance sheet at December 31, 2018 is derived from audited consolidated financial statements. In the opinion of management, the accompanying consolidated financial statements reflect all adjustments necessary to present fairly the Company’s consolidated financial statements. All such adjustments are of a normal, recurring nature. In preparing the accompanying consolidated financial statements, management has made certain estimates and assumptions that affect reported amounts in the consolidated financial statements and disclosures of contingencies. Actual results may differ from those estimates. The results for interim periods are not necessarily indicative of annual results.

Certain disclosures have been condensed in or omitted from these consolidated financial statements. Accordingly, these condensed notes to the consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s 2018 Form 10-K.

Equity method investments

Equity method investments. The Company accounts for its equity method investments under the equity method of accounting and includes the investment balance in other assets on the consolidated balance sheets. Gains and losses incurred from the Company’s equity investments are recorded in other income (expense) on the consolidated statements of operations.

At March 31, 2019, the Company owned a 23.75 percent membership interest in Oryx Southern Delaware Holdings, LLC (“Oryx”), an entity that operates a crude oil gathering and transportation system in the Delaware Basin. In February 2018, Oryx obtained a term loan of $800 million. The proceeds were used in part to fund a cash distribution to its equity holders, of which the Company received a distribution of approximately $157 million. Of this amount, approximately $54 million fully offset the Company’s net investment in Oryx. The remaining distribution of approximately $103 million was recorded in other income (expense) on the Company’s consolidated statement of operations since the lenders to the term loan do not have recourse against the Company, and the Company has no contractual obligation to repay the distribution.

The Company’s net investment in Oryx was zero at March 31, 2019 and December 31, 2018. The Company did not record income or loss on the Oryx investment for the three months ended March 31, 2019, as cumulative net income had yet to exceed the distribution in excess of the Company’s investment. In April 2019, Oryx entered into an agreement to sell 100 percent of its equity interests, which included the Company’s 23.75 percent membership interest.

Litigation contingencies

Litigation contingencies. The Company is a party to proceedings and claims incidental to its business. In each reporting period, the Company assesses these claims in an effort to determine the degree of probability and range of possible loss for potential accrual in its consolidated financial statements. The amount of any resulting losses may differ from these estimates. An accrual is recorded for a material loss contingency when its occurrence is probable and damages are reasonably estimable. See Note 9 for additional information.

Revenue recognition

Revenue recognition. The Company recognizes revenues from the sales of oil and natural gas to its customers and presents them disaggregated on the Company’s consolidated statements of operations. All revenues are recognized in the geographical region of the Permian Basin.

The Company enters into contracts with customers to sell its oil and natural gas production. Revenue on these contracts is recognized in accordance with the five-step revenue recognition model prescribed in Accounting Standards Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers,” (“ASC 606”). Specifically, revenue is recognized when the Company’s performance obligations under these contracts are satisfied, which generally occurs with the transfer of control of the oil and natural gas to the purchaser. Control is generally considered transferred when the following criteria are met: (i) transfer of physical custody, (ii) transfer of title, (iii) transfer of risk of loss and (iv) relinquishment of any repurchase rights or other similar rights. Given the nature of the products sold, revenue is recognized at a point in time based on the amount of consideration the Company expects to receive in accordance with the price specified in the contract. Consideration under the oil and natural gas marketing contracts is typically received from the purchaser one to two months after production. At March 31, 2019 and December 31, 2018, the Company had receivables related to contracts with customers of approximately $530 million and $466 million, respectively.

Oil Contracts. The majority of the Company’s oil marketing contracts transfer physical custody and title at or near the wellhead, which is generally when control of the oil has been transferred to the purchaser. The majority of the oil produced is sold under contracts using market-based pricing which is then adjusted for differentials based upon delivery location and oil quality. To the extent the differentials are incurred after the transfer of control of the oil, the differentials are included in oil sales on the consolidated statements of operations as they represent part of the transaction price of the contract. If the differentials, or other related costs, are incurred prior to the transfer of control of the oil, those costs are included in gathering, processing and transportation on the Company’s consolidated statements of operations as they represent payment for services performed outside of the contract with the customer.

Natural Gas Contracts. The majority of the Company’s natural gas is sold at the lease location, which is generally when control of the natural gas has been transferred to the purchaser. The natural gas is sold under (i) percentage of proceeds processing contracts, (ii) fee-based contracts or (iii) a hybrid of percentage of proceeds and fee-based contracts. Under the majority of the Company’s contracts, the purchaser gathers the natural gas in the field where it is produced and transports it via pipeline to natural gas processing plants where natural gas liquid products are extracted. The natural gas liquid products and remaining residue gas are then sold by the purchaser. Under the percentage of proceeds and hybrid percentage of proceeds and fee-based contracts, the Company receives a percentage of the value for the extracted liquids and the residue gas. Under the fee-based contracts, the Company receives natural gas liquids and residue gas value, less the fee component, or is invoiced the fee component. To the extent control of the natural gas transfers upstream of the transportation and processing activities, revenue is recognized as the net amount received from the purchaser. To the extent that control transfers downstream of those costs, revenue is recognized on a gross basis, and the related costs are classified in gathering, processing and transportation on the Company’s consolidated statements of operations.

The Company does not disclose the value of unsatisfied performance obligations under its contracts with customers as it applies the practical exemption in accordance with ASC 606. The exemption, as described in ASC 606-10-50-14(a), applies to variable consideration that is recognized as control of the product is transferred to the customer. Since each unit of product represents a separate performance obligation, future volumes are wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations is not required.

General and administrative expense

General and administrative expense. The Company receives fees for the operation of jointly-owned oil and natural gas properties during the drilling and production phases and records such reimbursements as reductions to general and administrative expense. Such fees totaled approximately $4 million for each of the three months ended March 31, 2019 and 2018.

Recently adopted accounting pronouncements and new accounting pronouncements issued but not yet adopted

Recently adopted accounting pronouncements. In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, “Leases (Topic 842)(“ASU 2016-02”), which requires all leases with a term greater than one year to be recognized on the consolidated balance sheet while maintaining similar classifications for finance and operating leases. Lease expense recognition on the consolidated statements of operations was effectively unchanged. The Company adopted this guidance on January 1, 2019. The Company made policy elections not to capitalize short-term leases for all asset classes and not to separate non-lease components from lease components for all asset classes except for vehicles. The Company also did not elect the package of practical expedients that allowed for certain considerations under the original “Leases (Topic 840)” accounting standard (“Topic 840”) to be carried forward upon adoption of ASU 2016-02.

In January 2018, the FASB issued ASU No. 2018-01, “Land Easement Practical Expedient for Transition to Topic 842,” which provides an optional practical expedient not to evaluate land easements that existed or expired before the adoption of ASU 2016-02 and that were not previously accounted for as leases under Topic 840. The Company enters into land easements on a routine basis as part of its ongoing operations and has many such agreements currently in place; however, the Company does not currently account for any land easements under Topic 840. As this guidance serves as an amendment to ASU 2016-02, the Company elected this practical expedient, which became effective upon the date of adoption of ASU 2016-02. The Company will assess any new land easements to determine whether the arrangement should be accounted for as a lease. In July 2018, the FASB issued ASU No. 2018-11, “Targeted Improvements,” which provides a transition election not to restate comparative periods for the effects of applying the new lease standard. This transition election permits entities to change the date of initial application to the beginning of the year of adoption and to recognize the effects of applying the new standard as a cumulative-effect adjustment to the opening balance of retained earnings. The Company elected this transition approach, however the cumulative impact of adoption in the opening balance of retained earnings as of January 1, 2019 was zero.

The Company enters into lease agreements to support its operations. These agreements are for leases on assets such as office space, vehicles, field equipment and drilling rigs. Upon adoption, the Company recognized $35 million of right-of-use assets, of which approximately $19 million and $16 million relate to the Company’s operating and finance leases, respectively, and approximately $37 million of associated lease liabilities. See Note 9 for additional disclosures of the Company’s leases.

In August 2018, the Securities and Exchange Commission (“SEC”) issued a final rule that amends certain of its disclosure requirements that have become redundant, duplicative, overlapping, outdated or superseded, in light of other disclosure requirements, U.S. GAAP or changes in the information environment. The amendments are intended to facilitate the disclosure of information to investors and simplify compliance without significantly altering the total mix of information provided to investors. The final rule amends numerous SEC rules, items and forms covering a diverse group of topics, including, but not limited to, changes in stockholders’ equity. The final rule extends the annual disclosure requirement in SEC Regulation S-X, Rule 3-04, of presenting changes in stockholders’ equity to interim periods. The registrants are required to analyze changes in stockholders’ equity in the form of a reconciliation for the current quarter and year-to-date interim periods and comparative periods in the prior year. As a result, the Company updated its presentation of the consolidated statements of stockholders’ equity to include comparative periods in the prior year. In addition, the final rule requires the presentation of dividends per share to be disclosed in the statement of stockholders’ equity.

New accounting pronouncements issued but not yet adopted. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments–Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“Topic 326”), which replaces the current “incurred loss” methodology for recognizing credit losses with an “expected loss” methodology. This new methodology requires that a financial asset measured at amortized cost be presented at the net amount expected to be collected. This standard is intended to provide more timely decision-useful information about the expected credit losses on financial instruments. In November 2018, the FASB issued ASU No. 2018-19, “Codification Improvements to Topic 326, Financial Instruments–Credit Losses,” which makes amendments to clarify the scope of the guidance, including the amendment clarifying that receivables arising from operating leases are not within the scope of Topic 326. This guidance is effective for fiscal years beginning after December 15, 2019, and early adoption is allowed as early as fiscal years beginning after December 15, 2018. The Company does not believe this new guidance will have a material impact on its consolidated financial statements.

In November 2018, the FASB issued ASU No. 2018-18, “Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606” (“ASU 2018-18”), which, among other things, clarifies that (i) certain transactions between collaborative arrangement participants should be accounted for as revenue under Topic 606 when the collaborative arrangement participant is a customer in the context of a unit of account, (ii) adds unit-of-account guidance in Topic 808 to align with the guidance in Topic 606 and (iii) requires that in a transaction with a collaborative arrangement participant that is not directly related to sales to third parties, presenting the transaction together with revenue recognized under Topic 606 is precluded if the collaborative arrangement participant is not a customer. ASU 2018-18 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years and early adoption is permitted. The amendments in this update should be applied retrospectively to the date of initial application of Topic 606. An entity should recognize the cumulative effect of initially applying the amendments as an adjustment to the opening balance of retained earnings of the later of the earliest annual period presented and the annual period that includes the date of the entity’s initial application of Topic 606. The Company is currently assessing the effect that ASU 2018-18 will have on its financial position, results of operations and disclosures.

v3.19.1
RSP acquisition (Tables)
3 Months Ended
Mar. 31, 2019
Business Acquisition [Line Items]  
Purchase Price Allocation

The following table sets forth the Company’s preliminary purchase price allocation:

(in millions)
Total purchase price $7,549
Fair value of liabilities assumed:
Accounts payable – trade $48
Accrued drilling costs79
Current derivative instruments10
Other current liabilities124
Long-term debt1,758
Deferred income taxes 514
Asset retirement obligations 20
Noncurrent derivative instruments5
Total liabilities assumed$2,558
Total purchase price plus liabilities assumed$10,107
Fair value of assets acquired:
Accounts receivable$194
Current derivative instruments36
Other current assets21
Proved oil and natural gas properties 4,055
Unproved oil and natural gas properties 3,565
Other property and equipment5
Noncurrent derivative instruments2
Implied goodwill2,229
Total assets acquired $10,107
Schedule of Pro Forma Information

The pro forma results of operations do not include any cost savings or other synergies that may result from the RSP Acquisition. The pro forma financial data does not include the pro forma results of operations for any other acquisitions made during the period. The pro forma combined condensed financial data has been included for comparative purposes only and is not necessarily indicative of the results that might have occurred had the RSP Acquisition taken place on January 1, 2017 and is not intended to be a projection of future results.

Three Months Ended
(in millions, except per share amounts)March 31, 2018
Operating revenues $1,226
Net income$931
Earnings per share:
Basic net income$4.66
Diluted net income$4.64
v3.19.1
Stock incentive plan (Tables)
3 Months Ended
Mar. 31, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Summary of restricted stock shares and preformance unit activity

A summary of the Company’s restricted stock shares and performance unit activity under the Plan for the three months ended March 31, 2019 is presented below:

RestrictedPerformance
Stock SharesUnits
Outstanding at December 31, 2018 1,364,699218,391
Awards granted (a) 235,082212,947(b)
Awards cancelled / forfeited (14,947)-
Lapse of restrictions (146,048)-
Outstanding at March 31, 20191,438,786431,338
(a)Weighted average grant date fair value per share/unit$105.52$144.03
(b)Includes 38,952 performance award units granted to certain officers in January 2019 that may convert into shares of restricted stock awards at the end of each performance period that will be subject to additional vesting conditions.
Future stock-based compensation expense to be recorded for all the stock-based compensation awards that were outstanding

The following table reflects the future stock-based compensation expense to be recorded for all the stock-based compensation awards that were outstanding at March 31, 2019:

(in millions)
Remaining 2019$61
2020 48
2021 22
2022 4
20232
20241
Thereafter2
Total $140
v3.19.1
Disclosures about fair value measurements (Tables)
3 Months Ended
Mar. 31, 2019
Fair Value Disclosures [Abstract]  
Carrying amounts and fair values of the Company's financial instruments

The following table presents the carrying amounts and fair values of the Company’s financial instruments at March 31, 2019 and December 31, 2018:

March 31, 2019December 31, 2018
CarryingFairCarryingFair
(in millions)ValueValueValueValue
Assets:
Derivative instruments $3$3$695$695
Liabilities:
Derivative instruments$367$367$-$-
Credit facility$615$615$242$242
$600 million 4.375% senior notes due 2025 (a)$594$617$594$591
$1,000 million 3.75% senior notes due 2027 (a)$989$991$989$939
$1,000 million 4.3% senior notes due 2028 (a)$988$1,033$988$980
$800 million 4.875% senior notes due 2047 (a)$789$849$789$761
$600 million 4.85% senior notes due 2048 (a)$592$634$592$573
(a)The carrying value includes associated deferred loan costs and any discount.
Net basis derivative fair values as reported in the consolidated balance sheets

The following tables summarize (i) the valuation of each of the Company’s financial instruments by required fair value hierarchy levels and (ii) the gross fair value by the appropriate balance sheet classification, even when the derivative instruments are subject to netting arrangements and qualify for net presentation in the Company’s consolidated balance sheets at March 31, 2019 and December 31, 2018. The Company nets the fair value of derivative instruments by counterparty in the Company’s consolidated balance sheets.

March 31, 2019
Fair Value Measurements UsingNet
Quoted PricesGrossFair Value
in ActiveSignificantAmountsPresented
Markets forOtherSignificantOffset in thein the
IdenticalObservableUnobservableTotalConsolidatedConsolidated
AssetsInputsInputsFairBalanceBalance
(in millions)(Level 1)(Level 2)(Level 3)ValueSheetSheet
Assets:
Current:
Commodity derivatives$-$57$-$57$(56)$1
Noncurrent:
Commodity derivatives- 29 - 29 (27) 2
Liabilities:
Current:
Commodity derivatives-(348)-(348)56(292)
Noncurrent:
Commodity derivatives- (102) - (102) 27 (75)
Net derivative instruments$-$(364)$-$(364)$-$(364)

December 31, 2018
Fair Value Measurements UsingNet
Quoted PricesGrossFair Value
in ActiveSignificantAmountsPresented
Markets forOtherSignificantOffset in thein the
Identical ObservableUnobservableTotalConsolidatedConsolidated
AssetsInputsInputsFairBalanceBalance
(in millions)(Level 1)(Level 2)(Level 3)ValueSheetSheet
Assets:
Current:
Commodity derivatives$-$543$- $ 543 $ (59) $ 484
Noncurrent:
Commodity derivatives- 243 - 243 (32) 211
Liabilities:
Current:
Commodity derivatives- (59) - (59) 59 -
Noncurrent:
Commodity derivatives- (32) - (32) 32 -
Net derivative instruments$-$695$- $ 695 $ - $ 695
v3.19.1
Derivative financial instruments (Tables)
3 Months Ended
Mar. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of the gains and losses reported in earnings related to the commodity derivative instruments

The following table summarizes the amounts reported in earnings related to the commodity derivative instruments for the three months ended March 31, 2019 and 2018:

Three Months Ended
March 31,
(in millions)20192018
Loss on derivatives:
Oil derivatives$(1,056)$(33)
Natural gas derivatives(3)(2)
Total$(1,059)$(35)
The following table represents the Company’s net cash receipts from (payments on) derivatives for the three months ended March 31, 2019 and 2018:
Three Months Ended
March 31,
(in millions)20192018
Net cash receipts from (payments on) derivatives:
Oil derivatives$3$(113)
Natural gas derivatives (3) 1
Total$-$(112)
Company's outstanding derivative contracts

The following table sets forth the Company’s outstanding derivative contracts at March 31, 2019. When aggregating multiple contracts, the weighted average contract price is disclosed. All of the Company’s derivative contracts at March 31, 2019 are expected to settle by December 31, 2021.

FirstSecondThirdFourth
QuarterQuarterQuarterQuarterTotal
Oil Price Swaps: (a)
2019:
Volume (Bbl) -15,112,75013,378,00011,232,00039,722,750
Price per Bbl $-$56.59$56.41$55.88$56.33
2020:
Volume (Bbl) 10,502,50010,166,5009,453,0009,218,00039,340,000
Price per Bbl $57.28$57.24$57.18$57.14$57.21
2021:
Volume (Bbl) 2,160,0002,184,0002,024,0002,024,0008,392,000
Price per Bbl $54.57$54.57$54.50$54.50$54.54
Oil Costless Collars: (a)
2019:
Volume (Bbl) -1,213,2501,135,0001,058,0003,406,250
Ceiling price per Bbl $-$64.00$63.47$62.95$63.50
Floor price per Bbl $-$56.06$55.74$55.43$55.76
Oil Basis Swaps: (b)
2019:
Volume (Bbl) -11,965,50012,650,00015,133,00039,748,500
Price per Bbl $-$(3.03)$(2.82)$(2.32)$(2.69)
2020:
Volume (Bbl) 13,013,00010,192,00010,120,00010,120,00043,445,000
Price per Bbl $(0.53)$(0.70)$(0.71)$(0.71)$(0.65)
2021:
Volume (Bbl) 2,070,0002,093,0002,116,0002,116,0008,395,000
Price per Bbl $0.55$0.55$0.55$0.55$0.55
Natural Gas Price Swaps: (c)
2019:
Volume (MMBtu) -17,241,38717,298,53717,209,53551,749,459
Price per MMBtu$-$2.87$2.87$2.87$2.87
2020:
Volume (MMBtu) 6,233,5006,233,5006,118,0006,118,00024,703,000
Price per MMBtu$2.70$2.70$2.70$2.70$2.70
(a)The oil derivative contracts are settled based on the NYMEX – West Texas Intermediate (“WTI”) calendar-month average futures price.
(b)The basis differential price is between Midland – WTI and Cushing – WTI. The majority of these contracts are settled on a calendar-
month basis, while certain contracts assumed in the RSP Acquisition are settled on a trading-month basis.
(c)The natural gas derivative contracts are settled based on the NYMEX – Henry Hub last trading day futures price.
v3.19.1
Debt (Tables)
3 Months Ended
Mar. 31, 2019
Debt Disclosure [Abstract]  
Company's debt

The Company’s debt consisted of the following at March 31, 2019 and December 31, 2018:

March 31,December 31,
(in millions)20192018
Credit facility due 2022$615$242
4.375% unsecured senior notes due 2025 (a) 600 600
3.75% unsecured senior notes due 2027 1,000 1,000
4.3% unsecured senior notes due 2028 1,000 1,000
4.875% unsecured senior notes due 2047 800 800
4.85% unsecured senior notes due 2048 600 600
Unamortized original issue discount (10) (10)
Senior notes issuance costs, net(38)(38)
Less: current portion - -
Total long-term debt $4,567$4,194
(a)For each of the twelve-month periods beginning on January 15, 2020, 2021, 2022, 2023 and thereafter, these notes are callable at 103.281%, 102.188%, 101.094% and 100%, respectively.
Interest expense

The following amounts have been incurred and charged to interest expense for the three months ended March 31, 2019 and 2018:

Three Months Ended
March 31,
(in millions)20192018
Cash payments for interest $63$18
Non-cash interest11
Net changes in accruals (13)12
Interest costs incurred5131
Less: capitalized interest(4)(1)
Total interest expense $47$30
v3.19.1
Commitments and contingencies (Tables)
3 Months Ended
Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]  
Summary of the Company's future commitments

The following table summarizes the Company’s commitments at March 31, 2019:

(in millions)
Remaining 2019$35
202075
202176
202236
202333
202434
Thereafter96
Total$385
Oil and natural gas delivery commitments

At March 31, 2019, the Company’s delivery commitments covered the following gross volumes of oil and natural gas:

OilNatural Gas
(MMBbl)(MMcf)
Remaining 2019122,697
20203610,286
20213921,627
20224116,425
20233316,425
20243316,470
Thereafter11432,850
Total308116,780
 
Supplemental balance sheet information related to leases

The following table provides supplemental consolidated balance sheet information related to leases at March 31, 2019:

(in millions) ClassificationMarch 31, 2019
Assets
Operating lease right-of-use assetsOther property and equipment, net$18
Finance lease right-of-use assetsOther property and equipment, net15
Total lease right-of-use assets (a)$33
Liabilities
Current:
Operating Other current liabilities$7
Finance Other current liabilities6
Noncurrent:
Operating Asset retirement obligations and other long-term liabilities13
Finance Asset retirement obligations and other long-term liabilities10
Total lease liabilities (a)$36
(a) Total lease right-of-use assets and lease liabilities are gross amounts and a portion of these costs will be reimbursed by other working interest owners.
Components of lease expense

The following table provides the components of lease cost, excluding lease cost related to short-term leases, for the three months ended March 31, 2019:

Three Months Ended
(in millions) ClassificationMarch 31, 2019
Operating lease costGeneral and administrative$2
Finance lease costDepreciation, depletion, and amortization (a)2
Total lease cost$4
(a)Interest on lease liabilities related to finance leases was immaterial during the three months ended March 31, 2019.
Supplemental cash flow information related to leases

The following table summarizes supplemental cash flow information related to leases for the three months ended March 31, 2019:

Three Months Ended
(in millions) March 31, 2019
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases$2
Financing cash flows from finance leases$2
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$-
Finance leases$3
Lease terms and discount rates related to leases

The following table provides lease terms and discount rates related to leases at March 31, 2019:

March 31, 2019
Weighted average remaining lease term (years):
Operating leases3.5
Finance leases2.9
Weighted average discount rate:
Operating leases4.9%
Finance leases4.4%
Maturity and present value of lease liabilities

The following table provides maturities of lease liabilities at March 31, 2019:

(in millions) Operating LeasesFinance Leases
Remaining 2019$6$5
202086
202164
202212
Thereafter 1-
Total lease payments2217
Less: interest(2)(1)
Present value of lease liabilities$20$16
Future minimum lease commitments under non-cancellable operating leases

Future minimum lease commitments under non-cancellable leases at December 31, 2018 were as follows:

(in millions)
2019$14
202012
202110
20223
2023-
Thereafter 1
Total $40
v3.19.1
Earnings per share (Tables)
3 Months Ended
Mar. 31, 2019
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract]  
Reconciliation of earnings attributable to common shares, basic and diluted

The following table reconciles the Company’s earnings (loss) from operations and earnings (loss) attributable to common stockholders to the basic and diluted earnings (loss) used to determine the Company’s earnings (loss) per share amounts for the three months ended March 31, 2019 and 2018, respectively, under the two-class method:

Three Months Ended
March 31,
(in millions)20192018
Net income (loss) as reported$(695)$835
Participating basic earnings (a)-(6)
Basic earnings (loss) attributable to common stockholders(695)829
Reallocation of participating earnings--
Diluted earnings (loss) attributable to common stockholders$(695)$829
(a)Unvested restricted stock awards represent participating securities because they participate in nonforfeitable dividends or distributions with the common equity holders of the Company. Participating earnings represent the distributed and undistributed earnings of the Company attributable to the participating securities. Unvested restricted stock awards do not participate in undistributed net losses as they are not contractually obligated to do so.
Reconciliation of the basic weighted average common shares outstanding to diluted weighted average common shares outstanding

The following table is a reconciliation of the basic weighted average common shares outstanding to diluted weighted average common shares outstanding for the three months ended March 31, 2019 and 2018:

Three Months Ended
March 31,
(in thousands)20192018
Weighted average common shares outstanding:
Basic 199,148147,925
Dilutive performance units -537
Diluted 199,148148,462
Summary of the performance units that were not included in the computation of diluted net income per share

The following table is a summary of the performance units that were not included in the computation of diluted earnings per share, as inclusion of these items would be antidilutive:

Three Months Ended
March 31,
(in thousands)20192018
Number of antidilutive units:
Performance units 324-
v3.19.1
Subsidiary guarantors (Tables)
3 Months Ended
Mar. 31, 2019
Guarantees [Abstract]  
Condensed Consolidating Balance Sheet

The following condensed consolidating balance sheets at March 31, 2019 and December 31, 2018, condensed consolidating statements of operations for the three months ended March 31, 2019 and 2018 and condensed consolidating statements of cash flows for the three months ended March 31, 2019 and 2018, present financial information for Concho Resources Inc. as the parent on a stand-alone basis (carrying any investments in subsidiaries under the equity method), financial information for the subsidiary guarantors on a stand-alone basis (carrying any investment in non-guarantor subsidiaries under the equity method), financial information for the subsidiary non-guarantors on a stand-alone basis and the consolidation and elimination entries necessary to arrive at the information for the Company on a consolidated basis. All current and deferred income taxes are recorded on Concho Resources Inc., as the subsidiaries are flow-through entities for income tax purposes. The subsidiary guarantors and subsidiary non-guarantors are not restricted from making distributions to the Company.

Condensed Consolidating Balance Sheet
March 31, 2019
ParentSubsidiarySubsidiaryConsolidating
(in millions)  Issuer  GuarantorsNon-GuarantorEntries  Total
ASSETS        
Accounts receivable - related parties   $18,518$-$-$(18,518)$-
Other current assets   61,021--1,027
Oil and natural gas properties, net   -22,40516-22,421
Property and equipment, net   -350--350
Investment in subsidiaries   5,629--(5,629)-
Goodwill-2,229--2,229
Other long-term assets   15126--141
Total assets   $24,168    $26,131$16    $(24,147)    $26,168
        
LIABILITIES AND EQUITY      
Accounts payable - related parties   $-$18,502$16$(18,518)$-
Other current liabilities   3681,292--1,660
Long-term debt   4,567---4,567
Other long-term liabilities   1,174708--1,882
Equity   18,0595,629-(5,629)18,059
Total liabilities and equity   $24,168  $26,131$16  $(24,147)  $26,168

Condensed Consolidating Balance Sheet
December 31, 2018
ParentSubsidiarySubsidiaryConsolidating
(in millions)  Issuer  GuarantorsNon-GuarantorEntries  Total
ASSETS      
Accounts receivable - related parties   $18,155$-$-$(18,155)$-
Other current assets   534875--1,409
Oil and natural gas properties, net   -21,98817-22,005
Property and equipment, net   -308--308
Investment in subsidiaries   5,411--(5,411)-
Goodwill  -2,224--2,224
Other long-term assets   224124--348
Total assets   $24,324    $25,519$17$(23,566)    $26,294
      
LIABILITIES AND EQUITY    
Accounts payable - related parties   $-$18,138$17$(18,155)$-
Other current liabilities   701,286--1,356
Long-term debt   4,194---4,194
Other long-term liabilities   1,292684--1,976
Equity   18,7685,411-(5,411)18,768
Total liabilities and equity   $24,324  $25,519$17$(23,566)  $26,294
Condensed Consolidating Statement of Operations

The following condensed consolidating balance sheets at March 31, 2019 and December 31, 2018, condensed consolidating statements of operations for the three months ended March 31, 2019 and 2018 and condensed consolidating statements of cash flows for the three months ended March 31, 2019 and 2018, present financial information for Concho Resources Inc. as the parent on a stand-alone basis (carrying any investments in subsidiaries under the equity method), financial information for the subsidiary guarantors on a stand-alone basis (carrying any investment in non-guarantor subsidiaries under the equity method), financial information for the subsidiary non-guarantors on a stand-alone basis and the consolidation and elimination entries necessary to arrive at the information for the Company on a consolidated basis. All current and deferred income taxes are recorded on Concho Resources Inc., as the subsidiaries are flow-through entities for income tax purposes. The subsidiary guarantors and subsidiary non-guarantors are not restricted from making distributions to the Company.

Condensed Consolidating Statement of Operations
Three Months Ended March 31, 2019
ParentSubsidiarySubsidiaryConsolidating
(in millions)  IssuerGuarantorsNon-GuarantorEntries  Total
  
Total operating revenues $ - $ 1,104 $ - $ - $ 1,104
Total operating costs and expenses (1,060)(890)--(1,950)
Income (loss) from operations (1,060)214--(846)
Interest expense (47)---(47)
Other, net 2184-(218)4
Income (loss) before income taxes (889)218-(218)(889)
Income tax benefit 194---194
Net income (loss) $(695)$218$-$(218)$(695)

Condensed Consolidating Statement of Operations
Three Months Ended March 31, 2018
ParentSubsidiarySubsidiaryConsolidating
(in millions)  IssuerGuarantorsNon-GuarantorsEntries  Total
  
Total operating revenues $ - $ 942 $ 5 $ - $ 947
Total operating costs and expenses (34)105(3)-68
Income (loss) from operations (34)1,0472-1,015
Interest expense (30)---(30)
Other, net 1,153104-(1,153)104
Income before income taxes 1,0891,1512(1,153)1,089
Income tax expense (254)---(254)
Net income $835$1,151$2$(1,153)$835
Condensed Consolidating Statement of Cash Flows

The following condensed consolidating balance sheets at March 31, 2019 and December 31, 2018, condensed consolidating statements of operations for the three months ended March 31, 2019 and 2018 and condensed consolidating statements of cash flows for the three months ended March 31, 2019 and 2018, present financial information for Concho Resources Inc. as the parent on a stand-alone basis (carrying any investments in subsidiaries under the equity method), financial information for the subsidiary guarantors on a stand-alone basis (carrying any investment in non-guarantor subsidiaries under the equity method), financial information for the subsidiary non-guarantors on a stand-alone basis and the consolidation and elimination entries necessary to arrive at the information for the Company on a consolidated basis. All current and deferred income taxes are recorded on Concho Resources Inc., as the subsidiaries are flow-through entities for income tax purposes. The subsidiary guarantors and subsidiary non-guarantors are not restricted from making distributions to the Company.

Condensed Consolidating Statement of Cash Flows
Three Months Ended March 31, 2019
ParentSubsidiarySubsidiaryConsolidating
(in millions)  IssuerGuarantorsNon-GuarantorEntriesTotal
  
Net cash flows provided by (used in) operating activities$(335)$958$-$-$623
Net cash flows used in investing activities-(902)--(902)
Net cash flows provided by (used in) financing activities335(56)--279
Net increase in cash and cash equivalents-----
Cash and cash equivalents at beginning of period-----
Cash and cash equivalents at end of period $-$-$-$-$-

Condensed Consolidating Statement of Cash Flows
Three Months Ended March 31, 2018
ParentSubsidiarySubsidiaryConsolidating
(in millions)  IssuerGuarantorsNon-GuarantorEntriesTotal
  
Net cash flows provided by operating activities$351$137$-$-$488
Net cash flows used in investing activities-(93)--(93)
Net cash flows used in financing activities(351)(44)--(395)
Net increase in cash and cash equivalents-----
Cash and cash equivalents at beginning of period-----
Cash and cash equivalents at end of period $-$-$-$-$-
v3.19.1
Subsequent Events (Tables)
3 Months Ended
Mar. 31, 2019
Subsequent Events [Abstract]  
New commodity derivative contracts

After March 31, 2019, the Company entered into the following derivative contracts to hedge additional amounts of estimated future production:

FirstSecondThirdFourth
QuarterQuarterQuarterQuarterTotal
Oil Price Swaps: (a)
2019:
Volume (Bbl) -1,707,0001,451,0001,281,0004,439,000
Price per Bbl $-$62.64$63.14$63.43$63.03
2021:
Volume (Bbl) 1,170,0001,183,0001,196,0001,196,0004,745,000
Price per Bbl $56.72$56.72$56.72$56.72$56.72
Oil Basis Swaps: (b)
2019:
Volume (Bbl) --92,000920,0001,012,000
Price per Bbl $-$-$(1.05)$(0.07)$(0.16)
2020:
Volume (Bbl) 1,092,000---1,092,000
Price per Bbl $0.10$-$-$-$0.10
2021:
Volume (Bbl) 540,000546,000552,000552,0002,190,000
Price per Bbl $0.50$0.50$0.50$0.50$0.50
(a) The oil derivative contracts are settled based on the NYMEX – WTI calendar-month average futures price.
(b) The basis differential price is between Midland – WTI and Cushing – WTI. These contracts are settled on a calendar-month basis.
v3.19.1
Supplementary Information (Tables)
3 Months Ended
Mar. 31, 2019
Supplementary Information [Abstract]  
Capitalized costs

Capitalized costs

March 31,December 31,
(in millions)20192018
Oil and natural gas properties:
Proved $26,000$24,992
Unproved 6,5596,714
Less: accumulated depletion (10,138)(9,701)
Net capitalized costs for oil and natural gas properties $ 22,421 $ 22,005
Costs incurred for oil and natural gas producing activities

Costs incurred for oil and natural gas producing activities

Three Months Ended
March 31,
(in millions)20192018
Property acquisition costs:
Proved $-$-
Unproved 413
Exploration 462243
Development 464207
Total costs incurred for oil and natural gas properties $930$463
v3.19.1
Basis Of Presentation And Summary Of Significant Accounting Policies (Narrative) (Details) - USD ($)
1 Months Ended 3 Months Ended
Apr. 30, 2019
Feb. 28, 2018
Mar. 31, 2019
Mar. 31, 2018
Jan. 01, 2019
Dec. 31, 2018
Significant Accounting Policies Disclosure [Line Items]            
Receivables related to contracts with customers     $ 530,000,000     $ 466,000,000
Fees related to operation of jointly owned oil and natural gas properties     4,000,000 $ 4,000,000    
Right of use asset [1]     33,000,000      
Right of use asset, operating leases     18,000,000      
Right of use asset, finance leases     15,000,000      
Lease liabilities     $ 36,000,000      
Accounting Standards Update 2018-01 [Member]            
Significant Accounting Policies Disclosure [Line Items]            
Cumulative effect adjustment         $ 0  
Accounting Standards Update 2016-02 [Member]            
Significant Accounting Policies Disclosure [Line Items]            
Right of use asset         35,000,000  
Right of use asset, operating leases         19,000,000  
Right of use asset, finance leases         16,000,000  
Lease liabilities         $ 37,000,000  
Oryx Southern Delaware Holdings [Member]            
Significant Accounting Policies Disclosure [Line Items]            
Equity method investment ownership percentage     23.75%      
Total distribution from equity method investment   $ 157,000,000        
Portion of equity method investment distribution that offset Company's net investment   54,000,000        
Total equity method investment     $ 0     $ 0
Income (loss) from equity method investments   103,000,000 $ 0      
Oryx Southern Delaware Holdings [Member] | Disposal Group Heldforsale Not Discontinued Operations [Member] | Scenario Forecast [Member]            
Significant Accounting Policies Disclosure [Line Items]            
Equity method investment ownership percentage 23.75%          
Percentage of interest sold 100.00%          
Oryx Southern Delaware Holdings [Member] | Loans Payable [Member]            
Significant Accounting Policies Disclosure [Line Items]            
Face amount of debt   $ 800,000,000        
[1]
Total lease right-of-use assets and lease liabilities are gross amounts and a portion of these costs will be reimbursed by other working interest owners.
v3.19.1
RSP Acquisition (Narrative) (Details) - RSP Permian [Member] - USD ($)
$ in Millions
3 Months Ended
Jul. 19, 2018
Mar. 31, 2019
Business Acquisition [Line Items]    
Acquisition close date   Jul. 19, 2018
Consideration paid $ 7,549  
v3.19.1
RSP Acquisition (Purchase Price Allocation) (Details) - USD ($)
$ in Millions
Jul. 19, 2018
Mar. 31, 2019
Dec. 31, 2018
Business Acquisition [Line Items]      
Implied goodwill   $ 2,229 $ 2,224
RSP Permian [Member]      
Business Acquisition [Line Items]      
Total purchase price $ 7,549    
Accounts payable - trade 48    
Accrued drilling costs 79    
Current derivative instruments 10    
Other current liabilities 124    
Long-term debt 1,758    
Deferred income taxes 514    
Asset retirement obligations 20    
Noncurrent derivative instruments 5    
Total liabilities assumed 2,558    
Accounts receivable 194    
Current derivative instruments 36    
Other current assets 21    
Proved oil and natural gas properties 4,055    
Unproved oil and natural gas properties 3,565    
Other property and equipment 5    
Noncurrent derivative instruments 2    
Implied goodwill 2,229    
Total assets acquired $ 10,107    
v3.19.1
RSP Acquisition (Schedule Of Pro Forma Information) (Details) - RSP Permian [Member]
$ / shares in Units, $ in Millions
3 Months Ended
Mar. 31, 2018
USD ($)
$ / shares
Business Acquisition [Line Items]  
Operating revenues | $ $ 1,226
Net income | $ $ 931
Earnings per share, Basic net income | $ / shares $ 4.66
Earnings per share, Diluted net income | $ / shares $ 4.64
v3.19.1
Other Aquisitions, Divestitures And Nonmonetary Transactions (Narrative) (Details)
$ in Millions
1 Months Ended 3 Months Ended
Feb. 28, 2018
USD ($)
a
Jan. 31, 2018
USD ($)
a
Mar. 31, 2019
USD ($)
Mar. 31, 2018
USD ($)
Business Acquisition [Line Items]        
Pre-tax gain (loss)     $ 1 $ 723
February 2018 Acquisition Divestiture [Member]        
Business Acquisition [Line Items]        
Net acreage | a 21,000      
Pre-tax gain (loss)       575
Fair value of acquired assets $ 755      
Book value of divested assets $ 180      
February 2018 Acquisition Divestiture [Member] | Disposal Group Disposed Of By Means Other Than Sale Not Discontinued Operations Exchange [Member]        
Business Acquisition [Line Items]        
Net acreage | a 34,000      
Delaware Basin [Member]        
Business Acquisition [Line Items]        
Net acreage | a   20,000    
Pre-tax gain (loss)       134
Net proceeds from divestiture   $ 280    
Nonmonetary Transactions [Member]        
Business Acquisition [Line Items]        
Pre-tax gain (loss)       $ 14
v3.19.1
Stock incentive Plan (Narrative) (Details) - shares
1 Months Ended 3 Months Ended
Jan. 31, 2019
Mar. 31, 2019
Restricted Stock [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Awards granted [1]   235,082
Performance Units [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Awards granted 212,947 212,947 [2],[3]
Performance Units [Member] | Officer [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Awards granted 38,952  
Performance Units [Member] | Three Year Vesting Period [Member] | Officer [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Vesting period   3 years
Awards granted 19,476  
Vesting percentage 20.00%  
Performance Units [Member] | Five Year Vesting Period [Member] | Officer [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Vesting period   5 years
Awards granted 19,476  
Vesting percentage 20.00%  
Other Performance Units [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Vesting period   3 years
Minimum [Member] | Restricted Stock [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Vesting period   1 year
Maximum [Member] | Restricted Stock [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Vesting period   10 years
[1]
Weighted average grant date fair value per share is $105.52
[2]
Includes 38,952 performance award units granted to certain officers in January 2019 that may convert into shares of restricted stock awards at the end of each performance period that will be subject to additional vesting conditions.
[3]
Weighted average grant date fair value per unit is $144.03
v3.19.1
Stock Incentive Plan (Summary Of Restricted Stock Shares and Performance Unit Activity) (Details) - $ / shares
1 Months Ended 3 Months Ended
Jan. 31, 2019
Mar. 31, 2019
Restricted Stock [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Outstanding at beginning of period 1,364,699 1,364,699
Awards granted [1]   235,082
Awards cancelled / forfeited   (14,947)
Lapse of restrictions   (146,048)
Outstanding at end of period   1,438,786
Awards granted - Weighted average grant date fair value per share / unit   $ 105.52
Performance Units [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Outstanding at beginning of period 218,391 218,391
Awards granted 212,947 212,947 [2],[3]
Awards cancelled / forfeited   0
Lapse of restrictions   0
Outstanding at end of period   431,338
Awards granted - Weighted average grant date fair value per share / unit   $ 144.03
[1]
Weighted average grant date fair value per share is $105.52
[2]
Includes 38,952 performance award units granted to certain officers in January 2019 that may convert into shares of restricted stock awards at the end of each performance period that will be subject to additional vesting conditions.
[3]
Weighted average grant date fair value per unit is $144.03
v3.19.1
Stock Incentive Plan (Summary For Future Stock-Based Compensation Expense) (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Stock-based compensation expense $ 24 $ 17
Remaining 2019 And Thereafter [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Stock-based compensation expense 140  
Remaining 2019 [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Stock-based compensation expense 61  
2020 [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Stock-based compensation expense 48  
2021 [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Stock-based compensation expense 22  
2022 [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Stock-based compensation expense 4  
2023 [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Stock-based compensation expense 2  
2024 [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Stock-based compensation expense 1  
Thereafter [Member]    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Stock-based compensation expense $ 2  
v3.19.1
Disclosures About Fair Value Measurements (Carrying Amounts And Fair Values Of The Company's Financial Instruments) (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Dec. 31, 2018
Fair Value Disclosure Item Amounts [Domain] | 4.375% senior notes due 2025    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Face amount of debt $ 600  
Interest rate 4.375%  
Debt maturity year 2025  
Fair Value Disclosure Item Amounts [Domain] | 3.75% senior notes due 2027    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Face amount of debt $ 1,000  
Interest rate 3.75%  
Debt maturity year 2027  
Fair Value Disclosure Item Amounts [Domain] | 4.3% senior notes due 2028    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Face amount of debt $ 1,000  
Interest rate 4.30%  
Debt maturity year 2028  
Fair Value Disclosure Item Amounts [Domain] | 4.875% senior notes due 2047    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Face amount of debt $ 800  
Interest rate 4.875%  
Debt maturity year 2047  
Fair Value Disclosure Item Amounts [Domain] | 4.85% senior notes due 2048    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Face amount of debt $ 600  
Interest rate 4.85%  
Debt maturity year 2048  
Derivative instruments, Assets $ 3 $ 695
Derivative instruments, Liabilities 367 0
Credit facility 615 242
4.375% senior notes due 2025    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Senior notes 617 591
Face amount of debt [1] $ 600 $ 600
Interest rate 4.375% 4.375%
Debt maturity year 2025  
3.75% senior notes due 2027    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Senior notes $ 991 $ 939
Face amount of debt $ 1,000 $ 1,000
Interest rate 3.75% 3.75%
Debt maturity year 2027  
4.3% senior notes due 2028    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Senior notes $ 1,033 $ 980
Face amount of debt $ 1,000 $ 1,000
Interest rate 4.30% 4.30%
Debt maturity year 2028  
4.875% senior notes due 2047    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Senior notes $ 849 $ 761
Face amount of debt $ 800 $ 800
Interest rate 4.875% 4.875%
Debt maturity year 2047  
4.85% senior notes due 2048    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Senior notes $ 634 $ 573
Face amount of debt $ 600 $ 600
Interest rate 4.85% 4.85%
Debt maturity year 2048  
Carrying Reported Amount Fair Value Disclosure [Member]    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Derivative instruments, Assets $ 3 $ 695
Derivative instruments, Liabilities 367 0
Credit facility 615 242
Carrying Reported Amount Fair Value Disclosure [Member] | 4.375% senior notes due 2025    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Senior notes [2] 594 594
Carrying Reported Amount Fair Value Disclosure [Member] | 3.75% senior notes due 2027    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Senior notes [2] 989 989
Carrying Reported Amount Fair Value Disclosure [Member] | 4.3% senior notes due 2028    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Senior notes [2] 988 988
Carrying Reported Amount Fair Value Disclosure [Member] | 4.875% senior notes due 2047    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Senior notes [2] 789 789
Carrying Reported Amount Fair Value Disclosure [Member] | 4.85% senior notes due 2048    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Senior notes [2] $ 592 $ 592
[1]
For each of the twelve month periods beginning on January 15, 2020, 2021, 2022, 2023 and thereafter, these notes are callable at 103.281%, 102.188%, 101.094% and 100%, respectively.
[2]
The carrying value includes associated deferred loan costs and any discount.
v3.19.1
Disclosures About Fair Value Measurements (Company's Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($)
$ in Millions
Mar. 31, 2019
Dec. 31, 2018
Fair Value Of Derivatives Disclosure Information [Line Items]    
Derivative, Fair Value, Net $ (364) $ 695
Commodity Derivative [Member] | Derivative Asset Current [Member]    
Fair Value Of Derivatives Disclosure Information [Line Items]    
Derivative Asset, Fair Value, Gross Asset 57 543
Derivative Asset, Fair Value, Gross Liability (56) (59)
Derivative Asset, Fair Value, Amount Not Offset Against Collateral 1 484
Commodity Derivative [Member] | Derivative Asset Noncurrent [Member]    
Fair Value Of Derivatives Disclosure Information [Line Items]    
Derivative Asset, Fair Value, Gross Asset 29 243
Derivative Asset, Fair Value, Gross Liability (27) (32)
Derivative Asset, Fair Value, Amount Not Offset Against Collateral 2 211
Commodity Derivative [Member] | Derivative Liability Current [Member]    
Fair Value Of Derivatives Disclosure Information [Line Items]    
Derivative Liability, Fair Value, Gross Liability (348) (59)
Derivative Liability, Fair Value, Gross Asset 56 59
Derivative Liability, Fair Value, Amount Not Offset Against Collateral (292) 0
Commodity Derivative [Member] | Derivative Liability Noncurrent [Member]    
Fair Value Of Derivatives Disclosure Information [Line Items]    
Derivative Liability, Fair Value, Gross Liability (102) (32)
Derivative Liability, Fair Value, Gross Asset 27 32
Derivative Liability, Fair Value, Amount Not Offset Against Collateral (75) 0
Fair Value Inputs Level 1 [Member]    
Fair Value Of Derivatives Disclosure Information [Line Items]    
Derivative, Fair Value, Net 0 0
Fair Value Inputs Level 1 [Member] | Commodity Derivative [Member] | Derivative Asset Current [Member]    
Fair Value Of Derivatives Disclosure Information [Line Items]    
Derivative Asset, Fair Value, Gross Asset 0 0
Fair Value Inputs Level 1 [Member] | Commodity Derivative [Member] | Derivative Asset Noncurrent [Member]    
Fair Value Of Derivatives Disclosure Information [Line Items]    
Derivative Asset, Fair Value, Gross Asset 0 0
Fair Value Inputs Level 1 [Member] | Commodity Derivative [Member] | Derivative Liability Current [Member]    
Fair Value Of Derivatives Disclosure Information [Line Items]    
Derivative Liability, Fair Value, Gross Liability 0 0
Fair Value Inputs Level 1 [Member] | Commodity Derivative [Member] | Derivative Liability Noncurrent [Member]    
Fair Value Of Derivatives Disclosure Information [Line Items]    
Derivative Liability, Fair Value, Gross Liability 0 0
Fair Value Inputs Level 2 [Member]    
Fair Value Of Derivatives Disclosure Information [Line Items]    
Derivative, Fair Value, Net (364) 695
Fair Value Inputs Level 2 [Member] | Commodity Derivative [Member] | Derivative Asset Current [Member]    
Fair Value Of Derivatives Disclosure Information [Line Items]    
Derivative Asset, Fair Value, Gross Asset 57 543
Fair Value Inputs Level 2 [Member] | Commodity Derivative [Member] | Derivative Asset Noncurrent [Member]    
Fair Value Of Derivatives Disclosure Information [Line Items]    
Derivative Asset, Fair Value, Gross Asset 29 243
Fair Value Inputs Level 2 [Member] | Commodity Derivative [Member] | Derivative Liability Current [Member]    
Fair Value Of Derivatives Disclosure Information [Line Items]    
Derivative Liability, Fair Value, Gross Liability (348) (59)
Fair Value Inputs Level 2 [Member] | Commodity Derivative [Member] | Derivative Liability Noncurrent [Member]    
Fair Value Of Derivatives Disclosure Information [Line Items]    
Derivative Liability, Fair Value, Gross Liability (102) (32)
Fair Value Inputs Level 3 [Member]    
Fair Value Of Derivatives Disclosure Information [Line Items]    
Derivative, Fair Value, Net 0 0
Fair Value Inputs Level 3 [Member] | Commodity Derivative [Member] | Derivative Asset Current [Member]    
Fair Value Of Derivatives Disclosure Information [Line Items]    
Derivative Asset, Fair Value, Gross Asset 0 0
Fair Value Inputs Level 3 [Member] | Commodity Derivative [Member] | Derivative Asset Noncurrent [Member]    
Fair Value Of Derivatives Disclosure Information [Line Items]    
Derivative Asset, Fair Value, Gross Asset 0 0
Fair Value Inputs Level 3 [Member] | Commodity Derivative [Member] | Derivative Liability Current [Member]    
Fair Value Of Derivatives Disclosure Information [Line Items]    
Derivative Liability, Fair Value, Gross Liability 0 0
Fair Value Inputs Level 3 [Member] | Commodity Derivative [Member] | Derivative Liability Noncurrent [Member]    
Fair Value Of Derivatives Disclosure Information [Line Items]    
Derivative Liability, Fair Value, Gross Liability $ 0 $ 0
v3.19.1
Derivative Financial Instruments (Summary Of The Gains And Losses Reported In Earnings Related To The Commodity Derivative Instruments) (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Derivative Financial Instruments Gains And Losses Reported In Earnings Related To Commodity And Interest Rate Derivative Instruments [Line Items]    
Gain (loss) on derivatives $ (1,059) $ (35)
Net settlements received from (paid on) derivatives 0 (112)
Oil Commodity Derivative [Member]    
Derivative Financial Instruments Gains And Losses Reported In Earnings Related To Commodity And Interest Rate Derivative Instruments [Line Items]    
Gain (loss) on derivatives (1,056) (33)
Net settlements received from (paid on) derivatives 3 (113)
Natural Gas Commodity Derivative [Member]    
Derivative Financial Instruments Gains And Losses Reported In Earnings Related To Commodity And Interest Rate Derivative Instruments [Line Items]    
Gain (loss) on derivatives (3) (2)
Net settlements received from (paid on) derivatives $ (3) $ 1
v3.19.1
Derivative Financial Instruments (Outstanding Commodity Derivative Contracts) (Details)
3 Months Ended
Mar. 31, 2019
MMBTU
$ / bbl
$ / MMBTU
bbl
Oil Price Swaps 2019 [Member]  
Derivative [Line Items]  
Volume | bbl 39,722,750 [1]
Price 56.33 [1]
Oil Price Swaps Q2 2019 [Member]  
Derivative [Line Items]  
Volume | bbl 15,112,750 [1]
Price 56.59 [1]
Oil Price Swaps Q3 2019 [Member]  
Derivative [Line Items]  
Volume | bbl 13,378,000 [1]
Price 56.41 [1]
Oil Price Swaps Q4 2019 [Member]  
Derivative [Line Items]  
Volume | bbl 11,232,000 [1]
Price 55.88 [1]
Oil Price Swaps 2020 [Member]  
Derivative [Line Items]  
Volume | bbl 39,340,000 [1]
Price 57.21 [1]
Oil Price Swaps Q1 2020 [Member]  
Derivative [Line Items]  
Volume | bbl 10,502,500 [1]
Price 57.28 [1]
Oil Price Swaps Q2 2020 [Member]  
Derivative [Line Items]  
Volume | bbl 10,166,500 [1]
Price 57.24 [1]
Oil Price Swaps Q3 2020 [Member]  
Derivative [Line Items]  
Volume | bbl 9,453,000 [1]
Price 57.18 [1]
Oil Price Swaps Q4 2020 [Member]  
Derivative [Line Items]  
Volume | bbl 9,218,000 [1]
Price 57.14 [1]
Oil Price Swaps 2021 [Member]  
Derivative [Line Items]  
Volume | bbl 8,392,000 [1]
Price 54.54 [1]
Oil Price Swaps Q1 2021 [Member]  
Derivative [Line Items]  
Volume | bbl 2,160,000 [1]
Price 54.57 [1]
Oil Price Swaps Q2 2021 [Member]  
Derivative [Line Items]  
Volume | bbl 2,184,000 [1]
Price 54.57 [1]
Oil Price Swaps Q3 2021 [Member]  
Derivative [Line Items]  
Volume | bbl 2,024,000 [1]
Price 54.5 [1]
Oil Price Swaps Q4 2021 [Member]  
Derivative [Line Items]  
Volume | bbl 2,024,000 [1]
Price 54.5 [1]
Oil Costless Collars 2019 [Member]  
Derivative [Line Items]  
Volume | bbl 3,406,250 [1]
Oil Costless Collars 2019 [Member] | Minimum [Member]  
Derivative [Line Items]  
Price 55.76 [1]
Oil Costless Collars 2019 [Member] | Maximum [Member]  
Derivative [Line Items]  
Price 63.5 [1]
Oil Costless Collars Q2 2019 [Member]  
Derivative [Line Items]  
Volume | bbl 1,213,250 [1]
Oil Costless Collars Q2 2019 [Member] | Minimum [Member]  
Derivative [Line Items]  
Price 56.06 [1]
Oil Costless Collars Q2 2019 [Member] | Maximum [Member]  
Derivative [Line Items]  
Price 64 [1]
Oil Costless Collars Q3 2019 [Member]  
Derivative [Line Items]  
Volume | bbl 1,135,000 [1]
Oil Costless Collars Q3 2019 [Member] | Minimum [Member]  
Derivative [Line Items]  
Price 55.74 [1]
Oil Costless Collars Q3 2019 [Member] | Maximum [Member]  
Derivative [Line Items]  
Price 63.47 [1]
Oil Costless Collars Q4 2019 [Member]  
Derivative [Line Items]  
Volume | bbl 1,058,000 [1]
Oil Costless Collars Q4 2019 [Member] | Minimum [Member]  
Derivative [Line Items]  
Price 55.43 [1]
Oil Costless Collars Q4 2019 [Member] | Maximum [Member]  
Derivative [Line Items]  
Price 62.95 [1]
Oil Basis Swaps 2019 [Member]  
Derivative [Line Items]  
Volume | bbl 39,748,500 [2]
Price (2.69) [2]
Oil Basis Swaps Q2 2019 [Member]  
Derivative [Line Items]  
Volume | bbl 11,965,500 [2]
Price (3.03) [2]
Oil Basis Swaps Q3 2019 [Member]  
Derivative [Line Items]  
Volume | bbl 12,650,000 [2]
Price (2.82) [2]
Oil Basis Swaps Q4 2019 [Member]  
Derivative [Line Items]  
Volume | bbl 15,133,000 [2]
Price (2.32) [2]
Oil Basis Swaps 2020 [Member]  
Derivative [Line Items]  
Volume | bbl 43,445,000 [2]
Price (0.65) [2]
Oil Basis Swaps Q1 2020 [Member]  
Derivative [Line Items]  
Volume | bbl 13,013,000 [2]
Price (0.53) [2]
Oil Basis Swaps Q2 2020 [Member]  
Derivative [Line Items]  
Volume | bbl 10,192,000 [2]
Price (0.7) [2]
Oil Basis Swaps Q3 2020 [Member]  
Derivative [Line Items]  
Volume | bbl 10,120,000 [2]
Price (0.71) [2]
Oil Basis Swaps Q4 2020 [Member]  
Derivative [Line Items]  
Volume | bbl 10,120,000 [2]
Price (0.71) [2]
Oil Basis Swaps 2021 [Member]  
Derivative [Line Items]  
Volume | bbl 8,395,000 [2]
Price 0.55 [2]
Oil Basis Swaps Q1 2021 [Member]  
Derivative [Line Items]  
Volume | bbl 2,070,000 [2]
Price 0.55 [2]
Oil Basis Swaps Q2 2021 [Member]  
Derivative [Line Items]  
Volume | bbl 2,093,000 [2]
Price 0.55 [2]
Oil Basis Swaps Q3 2021 [Member]  
Derivative [Line Items]  
Volume | bbl 2,116,000 [2]
Price 0.55 [2]
Oil Basis Swaps Q4 2021 [Member]  
Derivative [Line Items]  
Volume | bbl 2,116,000 [2]
Price 0.55 [2]
Natural Gas Price Swaps 2019 [Member]  
Derivative [Line Items]  
Energy | MMBTU 51,749,459 [3]
Price | $ / MMBTU 2.87 [3]
Natural Gas Price Swaps Q2 2019 [Member]  
Derivative [Line Items]  
Energy | MMBTU 17,241,387 [3]
Price | $ / MMBTU 2.87 [3]
Natural Gas Price Swaps Q3 2019 [Member]  
Derivative [Line Items]  
Energy | MMBTU 17,298,537 [3]
Price | $ / MMBTU 2.87 [3]
Natural Gas Price Swaps Q4 2019 [Member]  
Derivative [Line Items]  
Energy | MMBTU 17,209,535 [3]
Price | $ / MMBTU 2.87 [3]
Natural Gas Price Swaps 2020 [Member]  
Derivative [Line Items]  
Energy | MMBTU 24,703,000 [3]
Price | $ / MMBTU 2.7 [3]
Natural Gas Price Swaps Q1 2020 [Member]  
Derivative [Line Items]  
Energy | MMBTU 6,233,500 [3]
Price | $ / MMBTU 2.7 [3]
Natural Gas Price Swaps Q2 2020 [Member]  
Derivative [Line Items]  
Energy | MMBTU 6,233,500 [3]
Price | $ / MMBTU 2.7 [3]
Natural Gas Price Swaps Q3 2020 [Member]  
Derivative [Line Items]  
Energy | MMBTU 6,118,000 [3]
Price | $ / MMBTU 2.7 [3]
Natural Gas Price Swaps Q4 2020 [Member]  
Derivative [Line Items]  
Energy | MMBTU 6,118,000 [3]
Price | $ / MMBTU 2.7 [3]
[1]
The oil derivative contracts are settled based on the NYMEX – West Texas Intermediate (“WTI”) calendar-month average futures price.
[2]
The basis differential price is between Midland – WTI and Cushing – WTI. The majority of these contracts are settled on a calendar-month basis, while certain contracts assumed in the RSP Acquisition are settled on a trading-month basis.
[3]
The natural gas derivative contracts are settled based on the NYMEX – Henry Hub last trading day futures price.
v3.19.1
Debt (Narrative) (Details) - Credit Facility [Member]
$ in Billions
3 Months Ended
Mar. 31, 2019
USD ($)
Debt Disclosure [Line Items]  
Line of credit maturity date May 09, 2022
Aggregate lender commitments $ 2.0
Unused lender commitments $ 1.4
Debt weighted average interest rate 4.40%
v3.19.1
Debt (Summary Of Long-Term Debt) (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Dec. 31, 2018
Debt Instrument [Line Items]    
Credit facility $ 615 $ 242
Unamortized original issue premium (discount), net (10) (10)
Senior notes issuance costs, net (38) (38)
Less: current portion 0 0
Total long-term debt 4,567 4,194
4.375% senior notes due 2025    
Debt Instrument [Line Items]    
Unsecured senior notes [1] $ 600 $ 600
Interest rate 4.375% 4.375%
Debt maturity year 2025  
4.375% senior notes due 2025 | January 15, 2020 [Member]    
Debt Instrument [Line Items]    
Callable price 103.281%  
4.375% senior notes due 2025 | January 15, 2021 [Member]    
Debt Instrument [Line Items]    
Callable price 102.188%  
4.375% senior notes due 2025 | January 15, 2022 [Member]    
Debt Instrument [Line Items]    
Callable price 101.094%  
4.375% senior notes due 2025 | January 15, 2023 [Member]    
Debt Instrument [Line Items]    
Callable price 100.00%  
3.75% senior notes due 2027    
Debt Instrument [Line Items]    
Unsecured senior notes $ 1,000 $ 1,000
Interest rate 3.75% 3.75%
Debt maturity year 2027  
4.3% senior notes due 2028    
Debt Instrument [Line Items]    
Unsecured senior notes $ 1,000 $ 1,000
Interest rate 4.30% 4.30%
Debt maturity year 2028  
4.875% senior notes due 2047    
Debt Instrument [Line Items]    
Unsecured senior notes $ 800 $ 800
Interest rate 4.875% 4.875%
Debt maturity year 2047  
4.85% senior notes due 2048    
Debt Instrument [Line Items]    
Unsecured senior notes $ 600 $ 600
Interest rate 4.85% 4.85%
Debt maturity year 2048  
[1]
For each of the twelve month periods beginning on January 15, 2020, 2021, 2022, 2023 and thereafter, these notes are callable at 103.281%, 102.188%, 101.094% and 100%, respectively.
v3.19.1
Debt (Summary Of Interest Expense) (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Disclosure Debt Summary Of Interest Expense [Abstract]    
Cash payments for interest $ 63 $ 18
Non-cash interest 1 1
Net changes in accruals (13) 12
Interest costs incurred 51 31
Less: capitalized interest (4) (1)
Total interest expense $ 47 $ 30
v3.19.1
Commitments And Contingencies (Narrative) (Details)
3 Months Ended
Mar. 31, 2019
USD ($)
bbl / d
Mar. 31, 2018
USD ($)
Commitments [Line Items]    
Gross lease cost related to short-term leases $ 94,000,000  
Short-term lease costs capitalized $ 67,000,000  
Operating leases, lease payments   $ 3,000,000
May 2018 Commitment [Member]    
Commitments [Line Items]    
Commitment term 1 year  
Shortfall makeup period 2 months  
May 2018 Commitment [Member] | Minimum [Member]    
Commitments [Line Items]    
Daily production commitment (barrels per day) | bbl / d 7,000  
January 2019 Commitment [Member]    
Commitments [Line Items]    
Commitment term 5 years  
Daily production commitment (barrels per day) | bbl / d 50,000  
v3.19.1
Commitments And Contingencies (Summary Of The Company's Future Commitments) (Details)
$ in Millions
Mar. 31, 2019
USD ($)
Oil And Gas Delivery Commitments And Contracts [Line Items]  
Remaining 2019 $ 35
2020 75
2021 76
2022 36
2023 33
2024 34
Thereafter 96
Total $ 385
v3.19.1
Commitments And Contingencies (Oil And Natural Gas Delivery Commitments) (Details)
Mcf in Thousands, bbl in Millions
3 Months Ended
Mar. 31, 2019
bbl
Mcf
Oil [Member]  
Long Term Purchase Commitment [Line Items]  
Remaining 2019 | bbl 12
2020 | bbl 36
2021 | bbl 39
2022 | bbl 41
2023 | bbl 33
2024 | bbl 33
Thereafter | bbl 114
Total | bbl 308
Natural Gas [Member]  
Long Term Purchase Commitment [Line Items]  
Remaining 2019 | Mcf 2,697
2020 | Mcf 10,286
2021 | Mcf 21,627
2022 | Mcf 16,425
2023 | Mcf 16,425
2024 | Mcf 16,470
Thereafter | Mcf 32,850
Total | Mcf 116,780
v3.19.1
Commitments And Contingencies (Supplemental Balance Sheet Information Related To Leases) (Details)
$ in Millions
Mar. 31, 2019
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Operating lease right-of-use assets $ 18
Finance lease right-of-use assets 15
Total lease right-of-use assets 33 [1]
Current operating lease liabilities 7
Current finance lease liabilities 6
Noncurrent operating lease liabilities 13
Noncurrent finance lease laibilities 10
Total lease liabilities $ 36
[1]
Total lease right-of-use assets and lease liabilities are gross amounts and a portion of these costs will be reimbursed by other working interest owners.
v3.19.1
Commitments And Contingencies (Components Of Lease Expense) (Details)
$ in Millions
3 Months Ended
Mar. 31, 2019
USD ($)
Lessee Lease Description [Line Items]  
Finance lease cost $ 2 [1]
Net lease cost 4
General And Administrative [Member]  
Lessee Lease Description [Line Items]  
Operating lease cost $ 2
[1]
Interest on lease liabilities related to finance leases was immaterial during the three months ended March 31, 2019.
v3.19.1
Commitments And Contingencies (Supplemental Cash Flow Information Related To Leases) (Details)
$ in Millions
3 Months Ended
Mar. 31, 2019
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Cash paid for amounts included in measurement of lease liabilities, Operating cash flows from operating leases $ 2
Cash paid for amounts included in measurement of lease liabilities, Financing cash flows from finance leases 2
Right-of-use assets obtained in exchange for lease obligations, Operating leases 0
Right-of-use assets obtained in exchange for lease obligations, Finance leases $ 3
v3.19.1
Commitments And Contingencies (Lease Terms And Discount Rates Related To Leases) (Details)
Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]  
Weighted average remaining lease term, Operating leases 3 years 6 months
Weighted average remaining lease term, Finance leases 2 years 10 months 24 days
Weighted average discount rate, Operating leases 4.90%
Weighted average discount rate, Finance leases 4.40%
v3.19.1
Commitments And Contingencies (Maturity Of Lease Liabilities) (Details)
$ in Millions
Mar. 31, 2019
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Operating Leases, Remaining 2019 $ 6
Operating Leases, 2020 8
Operating Leases, 2021 6
Operating Leases, 2022 1
Operating Leases, Thereafter 1
Operating Leases, Total lease payments 22
Finance Leases, Remaining 2019 5
Finance Leases, 2020 6
Finance Leases, 2021 4
Finance Leases, 2022 2
Finance Leases, Thereafter 0
Finance Leases, Total lease payments $ 17
v3.19.1
Commitments and Contingencies (Present Value Of Lease Liabilities) (Details)
$ in Millions
Mar. 31, 2019
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Operating Leases, Total lease payments $ 22
Operating Leases, Less: Interest (2)
Operating Leases, Present value of lease liabilities 20
Finance Leases, Total lease payments 17
Finance Leases, Less: Interest (1)
Finance Leases, Present value of lease liabilities $ 16
v3.19.1
Commitments And Contingencies (Future Minimum Lease Commitments Under Non-Cancellable Operating Leases) (Details)
$ in Millions
Dec. 31, 2018
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
2019 $ 14
2020 12
2021 10
2022 3
2023 0
Thereafter 1
Total $ 40
v3.19.1
Income Taxes (Narrative) (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Dec. 31, 2018
Disclosure Income Taxes Narrative [Abstract]      
Income tax (expense) benefit $ 194 $ (254)  
Discrete income tax expense (benefit) $ (2) $ (2)  
Effective tax rate 22.00% 23.00%  
Unrecognized tax benefits that would impact effective tax rate     $ 63
Increase in unrecongized tax benefits for current year $ 16    
v3.19.1
Related Party Transactions (Narrative) (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Related Party Transaction [Line Items]    
Amounts paid $ 6 $ 1
Director [Member]    
Related Party Transaction [Line Items]    
Ownership interest in partnership 3.50%  
v3.19.1
Earnings Per Share (Narrative) (Details) - Performance Units [Member]
3 Months Ended
Mar. 31, 2019
Minimum [Member]  
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]  
Vesting period 3 years
Vesting percentage 0.00%
Maximum [Member]  
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]  
Vesting period 5 years
Vesting percentage 300.00%
v3.19.1
Earnings Per Share (Reconciliation Of Earnings Attributable To Common Shares Basic And Diluted) (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Earnings Per Share Reconciliation [Abstract]    
Net income (loss) as reported $ (695) $ 835
Participating basic earnings [1] 0 (6)
Basic earnings (loss) attributable to common stockholders (695) 829
Reallocation of participating earnings 0 0
Diluted earnings (loss) attributable to common stockholders $ (695) $ 829
[1]
Unvested restricted stock awards represent participating securities because they participate in nonforfeitable dividends or distributions with the common equity holders of the Company. Participating earnings represent the distributed and undistributed earnings of the Company attributable to the participating securities. Unvested restricted stock awards do not participate in undistributed net losses as they are not contractually obligated to do so.
v3.19.1
Earnings Per Share (Reconciliation Of The Weighted Average Common Shares Outstanding) (Details) - shares
shares in Thousands
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Disclosure Net Income Per Share Reconciliation Of The Weighted Average Common Shares Outstanding [Abstract]    
Basic 199,148 147,925
Dilutive performance shares 0 537
Diluted 199,148 148,462
v3.19.1
Earnings Per Share (Summary Of The Common Stock Options And Restricted Stock) (Details) - shares
shares in Thousands
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Performance Units [Member]    
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]    
Antidilutive common shares 324 0
v3.19.1
Subsidiary Guarantors (Condensed Consolidating Balance Sheet) (Details) - USD ($)
$ in Millions
Mar. 31, 2019
Dec. 31, 2018
Mar. 31, 2018
Dec. 31, 2017
ASSETS        
Accounts receivable - related parties $ 0 $ 0    
Other current assets 1,027 1,409    
Oil and natural gas properties, net 22,421 22,005    
Property and equipment, net 350 308    
Investment in subsidiaries 0 0    
Goodwill 2,229 2,224    
Other long-term assets 141 348    
Total assets 26,168 26,294    
LIABILITIES AND EQUITY        
Accounts payable - related parties 0 0    
Other current liabilities 1,660 1,356    
Long-term debt 4,567 4,194    
Other long-term liabilities 1,882 1,976    
Equity 18,059 18,768 $ 9,738 $ 8,915
Total liabilities and stockholders' equity 26,168 26,294    
Consolidating Entries [Member]        
ASSETS        
Accounts receivable - related parties (18,518) (18,155)    
Other current assets 0 0    
Oil and natural gas properties, net 0 0    
Property and equipment, net 0 0    
Investment in subsidiaries (5,629) (5,411)    
Goodwill 0 0    
Other long-term assets 0 0    
Total assets (24,147) (23,566)    
LIABILITIES AND EQUITY        
Accounts payable - related parties (18,518) (18,155)    
Other current liabilities 0 0    
Long-term debt 0 0    
Other long-term liabilities 0 0    
Equity (5,629) (5,411)    
Total liabilities and stockholders' equity (24,147) (23,566)    
Parent Company [Member] | Reportable Legal Entities [Member]        
ASSETS        
Accounts receivable - related parties 18,518 18,155    
Other current assets 6 534    
Oil and natural gas properties, net 0 0    
Property and equipment, net 0 0    
Investment in subsidiaries 5,629 5,411    
Goodwill 0 0    
Other long-term assets 15 224    
Total assets 24,168 24,324    
LIABILITIES AND EQUITY        
Accounts payable - related parties 0 0    
Other current liabilities 368 70    
Long-term debt 4,567 4,194    
Other long-term liabilities 1,174 1,292    
Equity 18,059 18,768    
Total liabilities and stockholders' equity 24,168 24,324    
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member]        
ASSETS        
Accounts receivable - related parties 0 0    
Other current assets 1,021 875    
Oil and natural gas properties, net 22,405 21,988    
Property and equipment, net 350 308    
Investment in subsidiaries 0 0    
Goodwill 2,229 2,224    
Other long-term assets 126 124    
Total assets 26,131 25,519    
LIABILITIES AND EQUITY        
Accounts payable - related parties 18,502 18,138    
Other current liabilities 1,292 1,286    
Long-term debt 0 0    
Other long-term liabilities 708 684    
Equity 5,629 5,411    
Total liabilities and stockholders' equity 26,131 25,519    
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member]        
ASSETS        
Accounts receivable - related parties 0 0    
Other current assets 0 0    
Oil and natural gas properties, net 16 17    
Property and equipment, net 0 0    
Investment in subsidiaries 0 0    
Goodwill 0 0    
Other long-term assets 0 0    
Total assets 16 17    
LIABILITIES AND EQUITY        
Accounts payable - related parties 16 17    
Other current liabilities 0 0    
Long-term debt 0 0    
Other long-term liabilities 0 0    
Equity 0 0    
Total liabilities and stockholders' equity $ 16 $ 17    
v3.19.1
Subsidiary Guarantors (Condensed Consolidating Statement Of Operations) (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Condensed Financial Statements Captions [Line Items]    
Total operating revenues $ 1,104 $ 947
Total operating costs and expenses (1,950) 68
Income (loss) from operations (846) 1,015
Interest expense (47) (30)
Other, net 4 104
Income (loss) before income taxes (889) 1,089
Income tax (expense) benefit 194 (254)
Net income (loss) (695) 835
Consolidation Eliminations [Member]    
Condensed Financial Statements Captions [Line Items]    
Total operating revenues 0 0
Total operating costs and expenses 0 0
Income (loss) from operations 0 0
Interest expense 0 0
Other, net (218) (1,153)
Income (loss) before income taxes (218) (1,153)
Income tax (expense) benefit 0 0
Net income (loss) (218) (1,153)
Parent Company [Member] | Reportable Legal Entities [Member]    
Condensed Financial Statements Captions [Line Items]    
Total operating revenues 0 0
Total operating costs and expenses (1,060) (34)
Income (loss) from operations (1,060) (34)
Interest expense (47) (30)
Other, net 218 1,153
Income (loss) before income taxes (889) 1,089
Income tax (expense) benefit 194 (254)
Net income (loss) (695) 835
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member]    
Condensed Financial Statements Captions [Line Items]    
Total operating revenues 1,104 942
Total operating costs and expenses (890) 105
Income (loss) from operations 214 1,047
Interest expense 0 0
Other, net 4 104
Income (loss) before income taxes 218 1,151
Income tax (expense) benefit 0 0
Net income (loss) 218 1,151
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member]    
Condensed Financial Statements Captions [Line Items]    
Total operating revenues 0 5
Total operating costs and expenses 0 (3)
Income (loss) from operations 0 2
Interest expense 0 0
Other, net 0 0
Income (loss) before income taxes 0 2
Income tax (expense) benefit 0 0
Net income (loss) $ 0 $ 2
v3.19.1
Subsidiary Guarantors (Condensed Consolidating Statement Of Cash Flows) (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Condensed Financial Statements Captions [Line Items]    
Net cash provided by (used in) operating activities $ 623 $ 488
Net cash flows provided by (used in) investing activities (902) (93)
Net cash flows provided by (used in) financing activities 279 (395)
Net increase in cash and cash equivalents 0 0
Cash and cash equivalents at beginning of period 0 0
Cash and cash equivalents at end of period 0 0
Consolidation Eliminations [Member]    
Condensed Financial Statements Captions [Line Items]    
Net cash provided by (used in) operating activities 0 0
Net cash flows provided by (used in) investing activities 0 0
Net cash flows provided by (used in) financing activities 0 0
Net increase in cash and cash equivalents 0 0
Cash and cash equivalents at beginning of period 0 0
Cash and cash equivalents at end of period 0 0
Parent Company [Member] | Reportable Legal Entities [Member]    
Condensed Financial Statements Captions [Line Items]    
Net cash provided by (used in) operating activities (335) 351
Net cash flows provided by (used in) investing activities 0 0
Net cash flows provided by (used in) financing activities 335 (351)
Net increase in cash and cash equivalents 0 0
Cash and cash equivalents at beginning of period 0 0
Cash and cash equivalents at end of period 0 0
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member]    
Condensed Financial Statements Captions [Line Items]    
Net cash provided by (used in) operating activities 958 137
Net cash flows provided by (used in) investing activities (902) (93)
Net cash flows provided by (used in) financing activities (56) (44)
Net increase in cash and cash equivalents 0 0
Cash and cash equivalents at beginning of period 0 0
Cash and cash equivalents at end of period 0 0
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member]    
Condensed Financial Statements Captions [Line Items]    
Net cash provided by (used in) operating activities 0 0
Net cash flows provided by (used in) investing activities 0 0
Net cash flows provided by (used in) financing activities 0 0
Net increase in cash and cash equivalents 0 0
Cash and cash equivalents at beginning of period 0 0
Cash and cash equivalents at end of period $ 0 $ 0
v3.19.1
Subsequent Events (Narrative) (Details) - USD ($)
$ / shares in Units, $ in Millions
1 Months Ended
Apr. 30, 2019
Apr. 30, 2019
Mar. 31, 2019
Subsequent Event [Line Items]      
Dividends declared, amount per share     $ 0.125
Subsequent Event [Member]      
Subsequent Event [Line Items]      
Dividends declared, date declared Apr. 30, 2019    
Dividends declared, amount per share $ 0.125 $ 0.125  
Dividends declared, date payable Jun. 28, 2019    
Dividends declared, date of record May 10, 2019    
Oryx Southern Delaware Holdings [Member]      
Subsequent Event [Line Items]      
Equity method investment ownership percentage     23.75%
Beta Holding [Member] | Subsequent Event [Member]      
Subsequent Event [Line Items]      
Equity method investment ownership percentage 50.00% 50.00%  
Transportation agreement period   10 years  
Disposal Group Heldforsale Not Discontinued Operations [Member] | Oryx Southern Delaware Holdings [Member] | Scenario Forecast [Member]      
Subsequent Event [Line Items]      
Percentage of interest sold   100.00%  
Proceeds from the sale of equity investment   $ 300  
Equity method investment ownership percentage 23.75% 23.75%  
v3.19.1
Subsequent Events (New Commodity Derivative Contracts) (Details)
3 Months Ended
May 01, 2019
$ / bbl
bbl
Mar. 31, 2019
$ / bbl
bbl
Oil Price Swaps 2019 [Member]    
Subsequent Event [Line Items]    
Volume | bbl [1]   39,722,750
Price | $ / bbl [1]   56.33
Oil Price Swaps Q2 2019 [Member]    
Subsequent Event [Line Items]    
Volume | bbl [1]   15,112,750
Price | $ / bbl [1]   56.59
Oil Price Swaps Q3 2019 [Member]    
Subsequent Event [Line Items]    
Volume | bbl [1]   13,378,000
Price | $ / bbl [1]   56.41
Oil Price Swaps Q4 2019 [Member]    
Subsequent Event [Line Items]    
Volume | bbl [1]   11,232,000
Price | $ / bbl [1]   55.88
Oil Price Swaps 2021 [Member]    
Subsequent Event [Line Items]    
Volume | bbl [1]   8,392,000
Price | $ / bbl [1]   54.54
Oil Price Swaps Q1 2021 [Member]    
Subsequent Event [Line Items]    
Volume | bbl [1]   2,160,000
Price | $ / bbl [1]   54.57
Oil Price Swaps Q2 2021 [Member]    
Subsequent Event [Line Items]    
Volume | bbl [1]   2,184,000
Price | $ / bbl [1]   54.57
Oil Price Swaps Q3 2021 [Member]    
Subsequent Event [Line Items]    
Volume | bbl [1]   2,024,000
Price | $ / bbl [1]   54.5
Oil Price Swaps Q4 2021 [Member]    
Subsequent Event [Line Items]    
Volume | bbl [1]   2,024,000
Price | $ / bbl [1]   54.5
Oil Basis Swaps 2019 [Member]    
Subsequent Event [Line Items]    
Volume | bbl [2]   39,748,500
Price | $ / bbl [2]   (2.69)
Oil Basis Swaps Q3 2019 [Member]    
Subsequent Event [Line Items]    
Volume | bbl [2]   12,650,000
Price | $ / bbl [2]   (2.82)
Oil Basis Swaps Q4 2019 [Member]    
Subsequent Event [Line Items]    
Volume | bbl [2]   15,133,000
Price | $ / bbl [2]   (2.32)
Oil Basis Swaps 2020 [Member]    
Subsequent Event [Line Items]    
Volume | bbl [2]   43,445,000
Price | $ / bbl [2]   (0.65)
Oil Basis Swaps Q1 2020 [Member]    
Subsequent Event [Line Items]    
Volume | bbl [2]   13,013,000
Price | $ / bbl [2]   (0.53)
Oil Basis Swaps 2021 [Member]    
Subsequent Event [Line Items]    
Volume | bbl [2]   8,395,000
Price | $ / bbl [2]   0.55
Oil Basis Swaps Q1 2021 [Member]    
Subsequent Event [Line Items]    
Volume | bbl [2]   2,070,000
Price | $ / bbl [2]   0.55
Oil Basis Swaps Q2 2021 [Member]    
Subsequent Event [Line Items]    
Volume | bbl [2]   2,093,000
Price | $ / bbl [2]   0.55
Oil Basis Swaps Q3 2021 [Member]    
Subsequent Event [Line Items]    
Volume | bbl [2]   2,116,000
Price | $ / bbl [2]   0.55
Oil Basis Swaps Q4 2021 [Member]    
Subsequent Event [Line Items]    
Volume | bbl [2]   2,116,000
Price | $ / bbl [2]   0.55
Subsequent Event [Member] | Oil Price Swaps 2019 [Member]    
Subsequent Event [Line Items]    
Volume | bbl [3] 4,439,000  
Price | $ / bbl [3] 63.03  
Subsequent Event [Member] | Oil Price Swaps Q2 2019 [Member]    
Subsequent Event [Line Items]    
Volume | bbl [3] 1,707,000  
Price | $ / bbl [3] 62.64  
Subsequent Event [Member] | Oil Price Swaps Q3 2019 [Member]    
Subsequent Event [Line Items]    
Volume | bbl [3] 1,451,000  
Price | $ / bbl [3] 63.14  
Subsequent Event [Member] | Oil Price Swaps Q4 2019 [Member]    
Subsequent Event [Line Items]    
Volume | bbl [3] 1,281,000  
Price | $ / bbl [3] 63.43  
Subsequent Event [Member] | Oil Price Swaps 2021 [Member]    
Subsequent Event [Line Items]    
Volume | bbl [3] 4,745,000  
Price | $ / bbl [3] 56.72  
Subsequent Event [Member] | Oil Price Swaps Q1 2021 [Member]    
Subsequent Event [Line Items]    
Volume | bbl [3] 1,170,000  
Price | $ / bbl [3] 56.72  
Subsequent Event [Member] | Oil Price Swaps Q2 2021 [Member]    
Subsequent Event [Line Items]    
Volume | bbl [3] 1,183,000  
Price | $ / bbl [3] 56.72  
Subsequent Event [Member] | Oil Price Swaps Q3 2021 [Member]    
Subsequent Event [Line Items]    
Volume | bbl [3] 1,196,000  
Price | $ / bbl [3] 56.72  
Subsequent Event [Member] | Oil Price Swaps Q4 2021 [Member]    
Subsequent Event [Line Items]    
Volume | bbl [3] 1,196,000  
Price | $ / bbl [3] 56.72  
Subsequent Event [Member] | Oil Basis Swaps 2019 [Member]    
Subsequent Event [Line Items]    
Volume | bbl [4] 1,012,000  
Price | $ / bbl [4] (0.16)  
Subsequent Event [Member] | Oil Basis Swaps Q3 2019 [Member]    
Subsequent Event [Line Items]    
Volume | bbl [4] 92,000  
Price | $ / bbl [4] (1.05)  
Subsequent Event [Member] | Oil Basis Swaps Q4 2019 [Member]    
Subsequent Event [Line Items]    
Volume | bbl [4] 920,000  
Price | $ / bbl [4] (0.07)  
Subsequent Event [Member] | Oil Basis Swaps 2020 [Member]    
Subsequent Event [Line Items]    
Volume | bbl [4] 1,092,000  
Price | $ / bbl [4] 0.1  
Subsequent Event [Member] | Oil Basis Swaps Q1 2020 [Member]    
Subsequent Event [Line Items]    
Volume | bbl [4] 1,092,000  
Price | $ / bbl [4] 0.1  
Subsequent Event [Member] | Oil Basis Swaps 2021 [Member]    
Subsequent Event [Line Items]    
Volume | bbl [4] 2,190,000  
Price | $ / bbl [4] 0.5  
Subsequent Event [Member] | Oil Basis Swaps Q1 2021 [Member]    
Subsequent Event [Line Items]    
Volume | bbl [4] 540,000  
Price | $ / bbl [4] 0.5  
Subsequent Event [Member] | Oil Basis Swaps Q2 2021 [Member]    
Subsequent Event [Line Items]    
Volume | bbl [4] 546,000  
Price | $ / bbl [4] 0.5  
Subsequent Event [Member] | Oil Basis Swaps Q3 2021 [Member]    
Subsequent Event [Line Items]    
Volume | bbl [4] 552,000  
Price | $ / bbl [4] 0.5  
Subsequent Event [Member] | Oil Basis Swaps Q4 2021 [Member]    
Subsequent Event [Line Items]    
Volume | bbl [4] 552,000  
Price | $ / bbl [4] 0.5  
[1]
The oil derivative contracts are settled based on the NYMEX – West Texas Intermediate (“WTI”) calendar-month average futures price.
[2]
The basis differential price is between Midland – WTI and Cushing – WTI. The majority of these contracts are settled on a calendar-month basis, while certain contracts assumed in the RSP Acquisition are settled on a trading-month basis.
[3]
The oil derivative contracts are settled based on the NYMEX – WTI calendar-month average futures price.
[4]
The basis differential price is between Midland – WTI and Cushing – WTI. These contracts are settled on a calendar-month basis.
v3.19.1
Supplementary information (Capitalized Costs) (Details) - USD ($)
$ in Millions
Mar. 31, 2019
Dec. 31, 2018
Supplementary Information [Abstract]    
Proved $ 26,000 $ 24,992
Unproved 6,559 6,714
Less: accumulated depletion (10,138) (9,701)
Net capitalized costs for oil and natural gas properties $ 22,421 $ 22,005
v3.19.1
Supplementary Information (Costs Incurred For Oil And Natural Gas Producing Activities) (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Supplementary Information [Abstract]    
Proved $ 0 $ 0
Unproved 4 13
Exploration 462 243
Development 464 207
Total costs incurred for oil and natural gas properties $ 930 $ 463