Leases

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases of Lessee Disclosure [Text Block]

Leases

Our contracts that are leases or contain leases primarily relate to drilling rigs, compression units and office space. Leases are recorded on the balance sheet when the lease term exceeds one year and we direct the use of an identified asset while receiving substantially all of the economic benefit of the asset. Right-of-use assets are included in other noncurrent assets on the Consolidated Balance Sheet. Lease liabilities are included in accrued and other current liabilities and other noncurrent liabilities on the Consolidated Balance Sheet. We have elected to include both lease and non-lease components for all significant asset classes as a single lease component for measurement purposes. Leases with an initial term of 12 months or less are not recorded on the balance sheet and lease expense for these leases is recognized as incurred. We have elected to include lease costs associated with lease terms of one month or less in our short-term lease disclosure below.

We use judgments and assumptions to determine our discount rate and whether a contract contains a lease. The discount rate used to determine the lease payment liability is based on our estimated incremental borrowing rate.

Certain of our leases include rental payments adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. From time to time we may enter into lease contracts that commence in future periods. Lease contracts that will commence subsequent to December 31, 2019 are not significant.

The following tables include quantitative disclosures related to our leases.

	Twelve months ended December 31, 2019
	(Millions)
Lease Costs:
Leases recorded on the Consolidated Balance Sheet:
Operating lease cost—drilling rigs(a)	$	42
Operating lease cost—other(a)	19
Variable lease cost—drilling rigs(a)	6
Variable lease cost—other(a)	3
Short-term leases:
Drilling rigs(b)	41
Other(b)	116
Total lease cost	$	227
Other Information:
Cash paid for amount included in the measurement of lease liabilities:
Operating cash flows used for operating leases(a)	$	19
Investing cash flows used for operating leases(a)	$	42
Right-of-use assets obtained in exchange for new operating lease liabilities	$	44
Weighted-average remaining lease term (in years)	1.36 years
Weighted-average discount rate—operating leases	5		%

__________

(a)Amounts are presented before recovery of amounts billed to or reimbursed by other working interest owners.

(b)Includes variable lease costs on short-term leases.

The following tables include quantitative disclosures related to our leases as of December 31, 2019.

	Drilling Rigs		Real Estate, Compression and Other		Total Undiscounted Cash Flows
	(Millions)
Maturity of Lease Liabilities:
2020	$	44	$	18	$	62
2021	5		10		15
2022	—		1		1
2023	—		—		—
2024	—		—		—
Thereafter	—		—		—
					$	78
Lease Liabilities:
Current lease liabilities	$	43	$	17	$	60
Noncurrent lease liabilities	5		11		16
Total lease liabilities	$	48	$	28	$	76
Difference between undiscounted cash flows and discounted cash flows					$	2
Total right-of-use assets on Consolidated Balance Sheet					$	76