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Three months ended September 30, 2016 | Nine months ended September 30, 2016 | ||||||
(Millions) | |||||||
Total revenues(a) | $ | — | $ | 64 | |||
Costs and expenses: | |||||||
Depreciation, depletion and amortization | $ | — | $ | 9 | |||
Lease and facility operating | — | 18 | |||||
Gathering, processing and transportation | 1 | 49 | |||||
Taxes other than income | 1 | 2 | |||||
General and administrative | 1 | 9 | |||||
Other—net | (2 | ) | 4 | ||||
Total costs and expenses | 1 | 91 | |||||
Operating loss | (1 | ) | (27 | ) | |||
Gain on sale of assets | 1 | 53 | |||||
Income from discontinued operations before income taxes | — | 26 | |||||
Income tax provision(b) | 1 | 14 | |||||
Income (loss) from discontinued operations | $ | (1 | ) | $ | 12 |
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Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Millions) | |||||||||||||||
Unproved leasehold property impairment, amortization and expiration | $ | 20 | $ | 9 | $ | 78 | $ | 28 | |||||||
Geologic and geophysical costs | — | 1 | 2 | 2 | |||||||||||
Dry hole costs | — | — | — | 1 | |||||||||||
Total exploration expenses | $ | 20 | $ | 10 | $ | 80 | $ | 31 |
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September 30, 2017 | December 31, 2016 | ||||||
(Millions) | |||||||
Material, supplies and other | $ | 39 | $ | 30 | |||
Crude oil production in transit | 3 | 2 | |||||
Total inventories | $ | 42 | $ | 32 |
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September 30, 2017 | December 31, 2016 | ||||||
(Millions) | |||||||
Credit facility agreement | $ | 285 | $ | — | |||
7.500% Senior Notes due 2020 | 350 | 500 | |||||
6.000% Senior Notes due 2022 | 1,100 | 1,100 | |||||
8.250% Senior Notes due 2023 | 500 | 500 | |||||
5.250% Senior Notes due 2024 | 650 | 500 | |||||
Other | — | 1 | |||||
Total long-term debt | $ | 2,885 | $ | 2,601 | |||
Less: Debt issuance costs on long-term debt(a) | 26 | 26 | |||||
Total long-term debt, net(a) | $ | 2,859 | $ | 2,575 |
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Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Millions) | |||||||||||||||
Current: | |||||||||||||||
Federal | $ | (27 | ) | $ | — | $ | (27 | ) | $ | — | |||||
State | — | (5 | ) | — | (5 | ) | |||||||||
(27 | ) | (5 | ) | (27 | ) | (5 | ) | ||||||||
Deferred: | |||||||||||||||
Federal | (12 | ) | (117 | ) | 39 | (236 | ) | ||||||||
State | 59 | (10 | ) | (14 | ) | 14 | |||||||||
47 | (127 | ) | 25 | (222 | ) | ||||||||||
Total provision (benefit) | $ | 20 | $ | (132 | ) | $ | (2 | ) | $ | (227 | ) |
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September 30, 2017 | December 31, 2016 | ||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
(Millions) | (Millions) | ||||||||||||||||||||||||||||||
Energy derivative assets | $ | — | $ | 95 | $ | — | $ | 95 | $ | — | $ | 38 | $ | — | $ | 38 | |||||||||||||||
Energy derivative liabilities | $ | — | $ | 82 | $ | — | $ | 82 | $ | — | $ | 215 | $ | — | $ | 215 | |||||||||||||||
Total debt(a) | $ | — | $ | 3,007 | $ | — | $ | 3,007 | $ | — | $ | 2,702 | $ | — | $ | 2,702 |
(a) | The carrying value of total debt, excluding capital leases and debt issuance costs, was $2,885 million and $2,600 million as of September 30, 2017 and December 31, 2016, respectively. The fair value of our debt, which also excludes capital leases and debt issuance costs, is determined on market rates and the prices of similar securities with similar terms and credit ratings. |
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Commodity | Period | Contract Type (a) | Location | Notional Volume (b) | Weighted Average Price (c) | ||||||||
Crude Oil | |||||||||||||
Crude Oil | Oct - Dec 2017 | Fixed Price Swaps | WTI | (50,638 | ) | $ | 50.23 | ||||||
Crude Oil | Oct - Dec 2017 | Basis Swaps | Midland-Cushing | (15,000 | ) | $ | (0.62 | ) | |||||
Crude Oil | Oct - Dec 2017 | Fixed Price Calls | WTI | (4,500 | ) | $ | 56.47 | ||||||
Crude Oil | 2018 | Fixed Price Swaps | WTI | (55,500 | ) | $ | (52.69 | ) | |||||
Crude Oil | 2018 | Basis Swaps | Midland-Cushing | (17,521 | ) | $ | (0.91 | ) | |||||
Crude Oil | 2018 | Basis Swaps | Nymex CMA Roll | (16,000 | ) | $ | 0.03 | ||||||
Crude Oil | 2018 | Fixed Price Calls | WTI | (13,000 | ) | $ | 58.89 | ||||||
Crude Oil | 2019 | Fixed Price Swaps | WTI | (22,000 | ) | $ | 50.85 | ||||||
Crude Oil | 2019 | Basis Swaps | Midland-Cushing | (19,000 | ) | $ | (0.93 | ) | |||||
Crude Oil | 2019 | Basis Swaps | Nymex CMA Roll | (4,000 | ) | $ | 0.07 | ||||||
Crude Oil | 2019 | Fixed Price Calls | WTI | (5,000 | ) | $ | 54.08 | ||||||
Crude Oil | 2020 | Basis Swaps | Midland-Cushing | (5,000 | ) | $ | (1.16 | ) | |||||
Natural Gas | |||||||||||||
Natural Gas | Oct - Dec 2017 | Fixed Price Swaps | Henry Hub | (170 | ) | $ | 3.02 | ||||||
Natural Gas | Oct - Dec 2017 | Basis Swaps | Permian | (73 | ) | $ | (0.20 | ) | |||||
Natural Gas | Oct - Dec 2017 | Basis Swaps | San Juan | (98 | ) | $ | (0.18 | ) | |||||
Natural Gas | Oct - Dec 2017 | Fixed Price Calls | Henry Hub | (15 | ) | $ | 4.50 | ||||||
Natural Gas | 2018 | Fixed Price Swaps | Henry Hub | (185 | ) | $ | 2.98 | ||||||
Natural Gas | 2018 | Basis Swaps | Permian | (43 | ) | $ | (0.28 | ) | |||||
Natural Gas | 2018 | Basis Swaps | San Juan | (50 | ) | $ | (0.34 | ) | |||||
Natural Gas | 2018 | Basis Swaps | Waha | (40 | ) | $ | 0.02 | ||||||
Natural Gas | 2018 | Basis Swaps | Houston Ship | (23 | ) | $ | (0.08 | ) | |||||
Natural Gas | 2018 | Fixed Price Swaptions | Henry Hub | (20 | ) | $ | 3.33 | ||||||
Natural Gas | 2018 | Fixed Price Calls | Henry Hub | (16 | ) | $ | 4.75 | ||||||
Natural Gas | 2019 | Basis Swaps | Permian | (20 | ) | $ | (0.34 | ) | |||||
Natural Gas | 2019 | Basis Swaps | Waha | (70 | ) | $ | (0.15 | ) | |||||
Natural Gas | 2019 | Basis Swaps | Houston Ship | (10 | ) | $ | (0.09 | ) |
(a) | Derivatives related to crude oil production are fixed price swaps settled on the business day average, basis swaps, fixed price calls and swaptions. The derivatives related to natural gas production are fixed price swaps, basis swaps, fixed price calls and swaptions. In connection with several crude oil and natural gas swaps entered into, we granted swaptions to the swap counterparties in exchange for receiving premium hedged prices on the crude oil and natural gas swaps. These swaptions grant the counterparty the option to enter into future swaps with us. Basis swaps for the Nymex CMA (Calendar Monthly Average) Roll location are pricing adjustments to the trade month versus the delivery month for contract pricing. |
(b) | Crude oil volumes are reported in Bbl/day and natural gas volumes are reported in BBtu/day. |
(c) | The weighted average price for crude oil is reported in $/Bbl and natural gas is reported in $/MMBtu. |
Gross Amount Presented on Balance Sheet | Netting Adjustments (a) | Net Amount | |||||||||
September 30, 2017 | (Millions) | ||||||||||
Derivative assets with right of offset or master netting agreements | $ | 95 | $ | (55 | ) | $ | 40 | ||||
Derivative liabilities with right of offset or master netting agreements | $ | (82 | ) | $ | 55 | $ | (27 | ) | |||
December 31, 2016 | |||||||||||
Derivative assets with right of offset or master netting agreements | $ | 38 | $ | (33 | ) | $ | 5 | ||||
Derivative liabilities with right of offset or master netting agreements | $ | (215 | ) | $ | 33 | $ | (182 | ) |
(a) | With all of our financial trading counterparties, we have agreements in place that allow for the financial right of offset for derivative assets and derivative liabilities at settlement or in the event of a default under the agreements. Additionally, we have negotiated master netting agreements with some of our counterparties. These master netting agreements allow multiple entities that have multiple underlying agreements the ability to net derivative assets and derivative liabilities at settlement or in the event of a default or a termination under one or more of the underlying contracts. |
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Three months ended September 30, 2016 | Nine months ended September 30, 2016 | ||||||
(Millions) | |||||||
Total revenues(a) | $ | — | $ | 64 | |||
Costs and expenses: | |||||||
Depreciation, depletion and amortization | $ | — | $ | 9 | |||
Lease and facility operating | — | 18 | |||||
Gathering, processing and transportation | 1 | 49 | |||||
Taxes other than income | 1 | 2 | |||||
General and administrative | 1 | 9 | |||||
Other—net | (2 | ) | 4 | ||||
Total costs and expenses | 1 | 91 | |||||
Operating loss | (1 | ) | (27 | ) | |||
Gain on sale of assets | 1 | 53 | |||||
Income from discontinued operations before income taxes | — | 26 | |||||
Income tax provision(b) | 1 | 14 | |||||
Income (loss) from discontinued operations | $ | (1 | ) | $ | 12 |
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Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Millions) | |||||||||||||||
Unproved leasehold property impairment, amortization and expiration | $ | 20 | $ | 9 | $ | 78 | $ | 28 | |||||||
Geologic and geophysical costs | — | 1 | 2 | 2 | |||||||||||
Dry hole costs | — | — | — | 1 | |||||||||||
Total exploration expenses | $ | 20 | $ | 10 | $ | 80 | $ | 31 |
|
September 30, 2017 | December 31, 2016 | ||||||
(Millions) | |||||||
Material, supplies and other | $ | 39 | $ | 30 | |||
Crude oil production in transit | 3 | 2 | |||||
Total inventories | $ | 42 | $ | 32 |
|
September 30, 2017 | December 31, 2016 | ||||||
(Millions) | |||||||
Credit facility agreement | $ | 285 | $ | — | |||
7.500% Senior Notes due 2020 | 350 | 500 | |||||
6.000% Senior Notes due 2022 | 1,100 | 1,100 | |||||
8.250% Senior Notes due 2023 | 500 | 500 | |||||
5.250% Senior Notes due 2024 | 650 | 500 | |||||
Other | — | 1 | |||||
Total long-term debt | $ | 2,885 | $ | 2,601 | |||
Less: Debt issuance costs on long-term debt(a) | 26 | 26 | |||||
Total long-term debt, net(a) | $ | 2,859 | $ | 2,575 |
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Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(Millions) | |||||||||||||||
Current: | |||||||||||||||
Federal | $ | (27 | ) | $ | — | $ | (27 | ) | $ | — | |||||
State | — | (5 | ) | — | (5 | ) | |||||||||
(27 | ) | (5 | ) | (27 | ) | (5 | ) | ||||||||
Deferred: | |||||||||||||||
Federal | (12 | ) | (117 | ) | 39 | (236 | ) | ||||||||
State | 59 | (10 | ) | (14 | ) | 14 | |||||||||
47 | (127 | ) | 25 | (222 | ) | ||||||||||
Total provision (benefit) | $ | 20 | $ | (132 | ) | $ | (2 | ) | $ | (227 | ) |
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September 30, 2017 | December 31, 2016 | ||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
(Millions) | (Millions) | ||||||||||||||||||||||||||||||
Energy derivative assets | $ | — | $ | 95 | $ | — | $ | 95 | $ | — | $ | 38 | $ | — | $ | 38 | |||||||||||||||
Energy derivative liabilities | $ | — | $ | 82 | $ | — | $ | 82 | $ | — | $ | 215 | $ | — | $ | 215 | |||||||||||||||
Total debt(a) | $ | — | $ | 3,007 | $ | — | $ | 3,007 | $ | — | $ | 2,702 | $ | — | $ | 2,702 |
(a) | The carrying value of total debt, excluding capital leases and debt issuance costs, was $2,885 million and $2,600 million as of September 30, 2017 and December 31, 2016, respectively. The fair value of our debt, which also excludes capital leases and debt issuance costs, is determined on market rates and the prices of similar securities with similar terms and credit ratings. |
|
Commodity | Period | Contract Type (a) | Location | Notional Volume (b) | Weighted Average Price (c) | ||||||||
Crude Oil | |||||||||||||
Crude Oil | Oct - Dec 2017 | Fixed Price Swaps | WTI | (50,638 | ) | $ | 50.23 | ||||||
Crude Oil | Oct - Dec 2017 | Basis Swaps | Midland-Cushing | (15,000 | ) | $ | (0.62 | ) | |||||
Crude Oil | Oct - Dec 2017 | Fixed Price Calls | WTI | (4,500 | ) | $ | 56.47 | ||||||
Crude Oil | 2018 | Fixed Price Swaps | WTI | (55,500 | ) | $ | (52.69 | ) | |||||
Crude Oil | 2018 | Basis Swaps | Midland-Cushing | (17,521 | ) | $ | (0.91 | ) | |||||
Crude Oil | 2018 | Basis Swaps | Nymex CMA Roll | (16,000 | ) | $ | 0.03 | ||||||
Crude Oil | 2018 | Fixed Price Calls | WTI | (13,000 | ) | $ | 58.89 | ||||||
Crude Oil | 2019 | Fixed Price Swaps | WTI | (22,000 | ) | $ | 50.85 | ||||||
Crude Oil | 2019 | Basis Swaps | Midland-Cushing | (19,000 | ) | $ | (0.93 | ) | |||||
Crude Oil | 2019 | Basis Swaps | Nymex CMA Roll | (4,000 | ) | $ | 0.07 | ||||||
Crude Oil | 2019 | Fixed Price Calls | WTI | (5,000 | ) | $ | 54.08 | ||||||
Crude Oil | 2020 | Basis Swaps | Midland-Cushing | (5,000 | ) | $ | (1.16 | ) | |||||
Natural Gas | |||||||||||||
Natural Gas | Oct - Dec 2017 | Fixed Price Swaps | Henry Hub | (170 | ) | $ | 3.02 | ||||||
Natural Gas | Oct - Dec 2017 | Basis Swaps | Permian | (73 | ) | $ | (0.20 | ) | |||||
Natural Gas | Oct - Dec 2017 | Basis Swaps | San Juan | (98 | ) | $ | (0.18 | ) | |||||
Natural Gas | Oct - Dec 2017 | Fixed Price Calls | Henry Hub | (15 | ) | $ | 4.50 | ||||||
Natural Gas | 2018 | Fixed Price Swaps | Henry Hub | (185 | ) | $ | 2.98 | ||||||
Natural Gas | 2018 | Basis Swaps | Permian | (43 | ) | $ | (0.28 | ) | |||||
Natural Gas | 2018 | Basis Swaps | San Juan | (50 | ) | $ | (0.34 | ) | |||||
Natural Gas | 2018 | Basis Swaps | Waha | (40 | ) | $ | 0.02 | ||||||
Natural Gas | 2018 | Basis Swaps | Houston Ship | (23 | ) | $ | (0.08 | ) | |||||
Natural Gas | 2018 | Fixed Price Swaptions | Henry Hub | (20 | ) | $ | 3.33 | ||||||
Natural Gas | 2018 | Fixed Price Calls | Henry Hub | (16 | ) | $ | 4.75 | ||||||
Natural Gas | 2019 | Basis Swaps | Permian | (20 | ) | $ | (0.34 | ) | |||||
Natural Gas | 2019 | Basis Swaps | Waha | (70 | ) | $ | (0.15 | ) | |||||
Natural Gas | 2019 | Basis Swaps | Houston Ship | (10 | ) | $ | (0.09 | ) |
(a) | Derivatives related to crude oil production are fixed price swaps settled on the business day average, basis swaps, fixed price calls and swaptions. The derivatives related to natural gas production are fixed price swaps, basis swaps, fixed price calls and swaptions. In connection with several crude oil and natural gas swaps entered into, we granted swaptions to the swap counterparties in exchange for receiving premium hedged prices on the crude oil and natural gas swaps. These swaptions grant the counterparty the option to enter into future swaps with us. Basis swaps for the Nymex CMA (Calendar Monthly Average) Roll location are pricing adjustments to the trade month versus the delivery month for contract pricing. |
(b) | Crude oil volumes are reported in Bbl/day and natural gas volumes are reported in BBtu/day. |
(c) | The weighted average price for crude oil is reported in $/Bbl and natural gas is reported in $/MMBtu. |
Gross Amount Presented on Balance Sheet | Netting Adjustments (a) | Net Amount | |||||||||
September 30, 2017 | (Millions) | ||||||||||
Derivative assets with right of offset or master netting agreements | $ | 95 | $ | (55 | ) | $ | 40 | ||||
Derivative liabilities with right of offset or master netting agreements | $ | (82 | ) | $ | 55 | $ | (27 | ) | |||
December 31, 2016 | |||||||||||
Derivative assets with right of offset or master netting agreements | $ | 38 | $ | (33 | ) | $ | 5 | ||||
Derivative liabilities with right of offset or master netting agreements | $ | (215 | ) | $ | 33 | $ | (182 | ) |
(a) | With all of our financial trading counterparties, we have agreements in place that allow for the financial right of offset for derivative assets and derivative liabilities at settlement or in the event of a default under the agreements. Additionally, we have negotiated master netting agreements with some of our counterparties. These master netting agreements allow multiple entities that have multiple underlying agreements the ability to net derivative assets and derivative liabilities at settlement or in the event of a default or a termination under one or more of the underlying contracts. |
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