Asset Sales, Impairments and Exploration Expenses

12 Months Ended

Dec. 31, 2019

Extractive Industries [Abstract]

Asset Sales,Other Expenses and Exploration Expenses

Asset Sales, Exploration Expenses and Other

Asset Sales

2019

During the first quarter of 2019, we closed on the sale of certain non-core properties, primarily proved, in the Delaware Basin which were held for sale at December 31, 2018. We received approximately $83 million in proceeds. No gain or loss was recorded on this transaction.

2017

Net gain on sales of assets for the year ended December 31, 2017 primarily reflect total gains of $103 million from exchanges of leasehold acreage in the Permian Basin, $48 million from the recognition of deferred gains related to the completion of commitments from the sale in 2015 of a North Dakota gathering system and $8 million recognized on the sales of certain Green River Basin and Appalachian Basin assets.

In conjunction with exchanges of leasehold, we estimated the fair value of the leasehold through discounted cash flow models and consideration of market data. Our estimates and assumptions included future commodity prices, projection of estimated quantities of oil and natural gas reserves, expectations for future development and operating costs and risk adjusted discount rates, all of which are Level 3 inputs.

Exploration Expenses

The following table presents a summary of exploration expenses.

	Years Ended December 31,
	2019		2018		2017
	(Millions)
Unproved leasehold property impairments, amortization and expiration	$	89	$	69	$	84
Geologic and geophysical costs	6		$	6	3
Total exploration expenses	$	95	$	75	$	87

Unproved leasehold property impairment, amortization and expiration for 2017 includes costs in excess of the accumulated amortization balance associated with certain leases in the Permian Basin that expired during the first quarter of 2017. These leases were renewed in second-quarter 2017.

Other

In third-quarter 2019, we recorded an $11 million charge included in other-net on the Consolidated Statements of Operations associated with an offer made by us to settle certain contractual disputes in the Williston Basin. The offer is still pending.