Basis of Presentation (Tables)

3 Months Ended

Mar. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Other statements of operations information is as follows:



	Three Months Ended March 31,
(millions)	2018			2017
Income From Equity Method Investees and Other
Income from Equity Method Investees	$	47		$	42
Sales of Purchased Oil and Gas ⁽¹⁾	53			—
Midstream Services Revenues – Third Party	13			—
Total	$	113		$	42
Production Expense
Lease Operating Expense	$	155		$	139
Production and Ad Valorem Taxes	54			41
Gathering, Transportation and Processing Expense	95			119
Other Royalty Expense	17			4
Total	$	321		$	303
Exploration Expense
Leasehold Impairment and Amortization	$	—		$	18
Seismic, Geological and Geophysical	11			5
Staff Expense	14			13
Other	10			6
Total	$	35		$	42
Other Operating Expense, Net
Marketing Expense ⁽²⁾	$	5		$	19
Purchased Oil and Gas⁽¹⁾	57			—
Other, Net	8			10
Total	$	70		$	29
Other Non-Operating Expense (Income), Net
Loss on Investment in Tamar Petroleum Ltd., Net⁽³⁾	$	15		$	—
Other	(2		)	(1		)
Total	$	13		$	(1	)

⁽¹⁾

As part of the Midstream Saddle Butte acquisition in first quarter 2018, we acquired certain contracts which include the purchase and sale of crude oil with third parties. In addition, in first quarter 2018, as part of our Marcellus Shale upstream firm transportation mitigation efforts, we entered into certain transactions for the purchase of third party natural gas and the subsequent sale of natural gas to other third parties. The cost to purchase natural gas includes transportation expense incurred of $5 million. See Note 11. Segment Information.


⁽²⁾	Expense relates to unutilized firm transportation and shortfalls in delivering or transporting minimum volumes under certain commitments.

⁽³⁾

Amount includes a $29 million loss related to the change in fair value, net of $14 million of dividend income related to our investment in Tamar Petroleum Ltd. shares.

Balance Sheet Information Table

Other balance sheet information is as follows:



(millions)	March 31, 2018			December 31, 2017
Accounts Receivable, Net
Commodity Sales	$	413		$	455
Joint Interest Billings	234			207
Other	77			103
Allowance for Doubtful Accounts	(17		)	(17		)
Total	$	707		$	748
Other Current Assets
Inventories, Materials and Supplies	$	43		$	66
Inventories, Crude Oil	17			16
Assets Held for Sale⁽¹⁾	751			629
Restricted Cash ⁽²⁾	30			38
Prepaid Expenses and Other Current Assets ⁽³⁾	54			31
Total	$	895		$	780
Other Noncurrent Assets
Equity Method Investments ⁽⁴⁾	$	378		$	305
Customer-Related Intangible Assets ⁽⁵⁾	334			—
Investment in Tamar Petroleum Ltd. ⁽⁶⁾	162			—
Mutual Fund Investments	56			57
Net Deferred Income Tax Asset	25			25
Other Assets, Noncurrent	66			74
Total	$	1,021		$	461
Other Current Liabilities
Production and Ad Valorem Taxes	$	93		$	84
Commodity Derivative Liabilities	112			58
Income Taxes Payable	32			18
Asset Retirement Obligations	51			51
Interest Payable	94			67
Current Portion of Capital Lease Obligations	54			61
Liabilities Associated with Assets Held for Sale ⁽¹⁾	231			55
Other Liabilities, Current	124			184
Total	$	791		$	578
Other Noncurrent Liabilities
Deferred Compensation Liabilities	$	180		$	197
Asset Retirement Obligations	577			824
Marcellus Shale Firm Transportation Commitment ⁽⁷⁾	73			76
Production and Ad Valorem Taxes	86			69
Other Liabilities, Noncurrent	97			79
Total	$	1,013		$	1,245

⁽¹⁾

Assets held for sale at March 31, 2018 include our Gulf of Mexico assets and assets in the Greeley Crescent area of the DJ Basin. Assets held for sale at December 31, 2017 include assets in the Greeley Crescent area of the DJ Basin, a 7.5% interest in the Tamar field, offshore Israel, our interest in Southwest Royalties, Inc. acquired in the Clayton Williams Energy Acquisition, and the CONE investments. Liabilities associated with assets held for sale primarily represent asset retirement obligations and other liabilities to be assumed by the purchaser. See Note 3. Acquisitions and Divestitures.


⁽²⁾	Balance at March 31, 2018 represents amount held in escrow pending closing of the Gulf of Mexico asset sale. Balance at December 31, 2017 represents amount held in escrow pending closing of the Saddle Butte acquisition. See Note 3. Acquisitions and Divestitures.


⁽³⁾	Balance at March 31, 2018 includes $14 million of accrued dividends receivable on shares of Tamar Petroleum Ltd.


⁽⁴⁾	Includes $72 million for our investment in shares of CNX Midstream Partners LP. At December 31, 2017, this investment was included in assets held for sale. See Note 3. Acquisitions and Divestitures and Note 6. Fair Value Measurements and Disclosures.


⁽⁵⁾	Amount relates to intangible assets acquired in the Saddle Butte acquisition. See Note 3. Acquisitions and Divestitures.


⁽⁶⁾	Amount relates to our investment in shares of Tamar Petroleum Ltd. See Note 3. Acquisitions and Divestitures and Note 6. Fair Value Measurements and Disclosures.

⁽⁷⁾

Amounts relate to the long-term portion of retained firm transportation agreements. At March 31, 2018 and December 31, 2017, we recorded $11 million and $14 million, respectively, associated with the current portion of the Marcellus Shale firm transportation commitment. See Note 12. Commitments and Contingencies.

Summary of Cash, Cash Equivalents and Restricted Cash

We define total cash as cash, cash equivalents and restricted cash. The following table provides a reconciliation of total cash:



	Three Months Ended March 31,
(millions)	2018		2017
Cash and Cash Equivalents at Beginning of Period	$	675	$	1,180
Restricted Cash at Beginning of Period	38		30
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period	$	713	$	1,210
Cash and Cash Equivalents at End of Period	$	992	$	787
Restricted Cash at End of Period	30		—
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	1,022	$	787

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction

The following table includes estimated revenues based upon those certain agreements with fixed minimum take-or-pay sales volumes. Our

actual future sales volumes under these agreements may exceed future minimum volume commitments.



(millions)	April - Dec 2018		2019		2020		Total
Natural Gas Revenues ⁽¹⁾	$	215	$	137	$	169	$	521

⁽¹⁾The remaining performance obligations are estimated utilizing the contractual base or floor price provision in effect. Our future revenues from the sale of natural gas under these associated contracts will vary from the amounts presented above due to components of variable consideration above the contractual base or floor provision, such as index-based escalations and market price changes.