DEBT (Tables)

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Schedule of short-term debt

As of September 30, 2020 and December 31, 2019, our short-term debtor-in-possession (DIP) financing and current portion of long-term debt consisted of the following:

	Outstanding Principal				Interest Rate	Security
	September 30, 2020		December 31, 2019
	($ in millions)
Senior DIP Facility	$	83	$	—	LIBOR plus 4.5% ABR plus 3.5%	Secured Superpriority
Junior DIP Facility	650		—		LIBOR plus 9.0% ABR plus 8.0%	Secured Superpriority
Current portion of long-term debt	—		100
Total short-term borrowings and current maturities	$	733	$	100

Schedule of long-term debt

As of September 30, 2020 and December 31, 2019, our long-term debt consisted of the following credit agreements, Second Lien Notes and Senior Notes:

	Outstanding Principal				Interest Rate	Security
	September 30, 2020		December 31, 2019
	($ in millions)
Credit Agreements
2014 Revolving Credit Facility(a)	—		518		LIBOR plus 3.25%-4.00% ABR plus 2.25%-3.00%	Shared First-Priority Lien
2017 Credit Agreement	1,300		1,300		LIBOR plus 4.75% ABR plus 3.75%	Shared First-Priority Lien
2016 Credit Agreement	1,000		1,000		LIBOR plus 10.375% ABR plus 9.375%	First-Priority Lien
Second Lien Notes
Second Lien Notes	1,808		1,815		8%	Second-Priority Lien
Senior Notes
5% Senior Notes due 2020	—		100		5%	Unsecured
5.5% Senior Notes due 2021	100		100		5.5%	Unsecured
6% Senior Notes due 2024	144		144		6%	Unsecured
Outstanding long-term debt	$	4,352	$	4,977
Less: Current portion of long-term debt	—		(100)
Less: Amounts reclassified to LSTC	(4,352)		—
Total long-term debt	$	—	$	4,877

Note:     For a detailed description of our credit agreements, Second Lien Notes and Senior Notes, please see our most recent Form 10-K for the year ended December 31, 2019.

(a)The proceeds from our debtor-in-possession credit agreements were used to repay the balance of our 2014 Revolving Credit Facility. Borrowings under our debtor-in-possession credit agreements are classified as a current liability on our condensed consolidated balance sheet at September 30, 2020.

Schedule of financial performance covenants

Financial Covenants – Our Revolving Credit Facility includes the following financial covenants:

Ratio	Components	Required Levels	Tested
Consolidated Total Net Leverage Ratio	Ratio of consolidated total secured debt to consolidated EBITDAX(a)	Not greater than 3.00 to 1.00(c)	Quarterly
Current Ratio	Ratio of consolidated current assets to consolidated current liabilities(b)	Not less than 1.00 to 1.00	Quarterly

(a)EBITDAX is calculated as defined in the credit agreement.

(b)The available credit under our Revolving Credit Facility is included in consolidated current assets as part of the calculation of the current ratio.

(c)In the event that the EHP Notes are not paid in full prior to December 31, 2021 (and until the EHP Notes are repaid in full), the Consolidated Total Net Leverage Ratio for the Test Period ending on December 31, 2021 and as of the last day of any Test Period ending thereafter may not exceed 2.50 to 1.00.

Financial Covenants – Our Second Lien Term Loan includes the following financial covenants:

Ratio	Components	Required Levels	Tested
Consolidated Total Net Leverage Ratio	Ratio of consolidated total debt to consolidated EBITDAX(a)	Not greater than 3.45 to 1.00(c)	Quarterly
Current Ratio	Ratio of consolidated current assets to consolidated current liabilities(b)	Not less than 0.85 to 1.00	Quarterly

(a)EBITDAX is calculated as defined in the credit agreement.

(b)The available credit under our Revolving Credit Facility is included in consolidated current assets as part of the calculation of the current ratio.

(c)In the event that the EHP Notes are not paid in full prior to December 31, 2021 (and until the EHP Notes are repaid in full), the Consolidated Total Net Leverage Ratio for the Test Period ending on December 31, 2021 and as of the last day of any Test Period ending thereafter may not exceed 2.875 to 1.00.