Properties and Equipment

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Properties and Equipment

Properties and Equipment

Properties and equipment is carried at cost and consists of the following:

	Estimated Useful Life(a) (Years)	December 31,
		2019		2018
		(Millions)
Proved properties	(b)	$	8,719	$	7,289
Unproved properties and land	(c)	1,765		1,891
Gathering, processing and other facilities	15-25	403		294
Construction in progress	(c)	224		350
Other	3-40	133		125
Total properties and equipment, at cost		11,244		9,949
Accumulated depreciation, depletion and amortization		(3,654)		(2,683)
Properties and equipment—net		$	7,590	$	7,266

__________

(a) Estimated useful lives are presented as of December 31, 2019.

(b) Proved properties are depreciated, depleted and amortized using the units-of-production method (see Note 1).

(c) Unproved properties, land and construction in progress are not subject to depreciation and depletion.

Unproved properties consist primarily of non-producing leasehold in the Delaware Basin.

In first-quarter 2019, we closed a $100 million purchase of 14,000 surface acres within our Stateline operations of which a portion was allocated to unproved properties and the remainder to land.

In December 2018, we signed an agreement to sell certain non-core properties in the Delaware Basin, which closed in the first quarter of 2019. These properties are reflected in assets classified as held for sale on the Consolidated Balance Sheet for December 31, 2018 (see Note 4).

Asset Retirement Obligations 

Our asset retirement obligations relate to producing wells, gathering well connections and related facilities. At the end of the useful life of each respective asset, we are legally obligated to plug producing wells and remove any related surface equipment and to cap gathering well connections at the wellhead and remove any related facility surface equipment. Asset retirement obligations are reported in other noncurrent liabilities on the Consolidated Balance Sheets.

A rollforward of our asset retirement obligations for the years ended 2019 and 2018 is presented below.

	2019		2018
	(Millions)
Balance, January 1	$	72	$	39
Liabilities incurred	11		8
Liabilities settled	(4)		(7)
Estimate revisions	14		30
Accretion expense(a)	4		2
Balance, December 31	$	97	$	72
Amount reflected as current	$	5	$	5

__________

(a) Accretion expense is included in lease and facility operating expense on the Consolidated Statements of Operations.