Basis of Presentation (Tables)

9 Months Ended

Sep. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Other statements of operations information is as follows:



	Three Months Ended September 30,						Nine Months Ended September 30,
(millions)	2018			2017			2018			2017
Sales of Purchased Oil and Gas and Other
Sales of Purchased Oil and Gas ⁽¹⁾	$	72		$	—		$	191		$	—
Income from Equity Method Investees	44			46			140			125
Midstream Services Revenues – Third Party	21			7			49			12
Total	$	137		$	53		$	380		$	137
Production Expense
Lease Operating Expense	$	124		$	151		$	411		$	414
Production and Ad Valorem Taxes	47			31			151			104
Gathering, Transportation and Processing Expense	97			93			292			333
Other Royalty Expense	5			5			32			15
Total	$	273		$	280		$	886		$	866
Exploration Expense
Leasehold Impairment	$	—		$	33		$	—		$	51
Seismic, Geological and Geophysical	4			7			17			20
Staff Expense	14			11			41			40
Other	7			13			31			25
Total	$	25		$	64		$	89		$	136
Other Operating Expense (Income), Net
Marketing Expense ⁽²⁾	$	11		$	6		$	21		$	39
Purchased Oil and Gas⁽¹⁾	76			—			204			—
Clayton Williams Energy Acquisition Expenses	—			4			—			98
Gain on Asset Retirement Obligation Revisions ⁽³⁾	(10		)	(42		)	(21		)	(42		)
Other, Net	1			17			18			37
Total	$	78		$	(15	)	$	222		$	132
Other Non-Operating (Income) Expense, Net
Gain on Investment in Shares of Tamar Petroleum Ltd., Net⁽⁴⁾	$	(32	)	$	—		$	(6	)	$	—
Loss (Gain) on Extinguishment of Debt, Net	—			98			(3		)	98
Other, Net	(2		)	2			(1		)	(4		)
Total	$	(34	)	$	100		$	(10	)	$	94

⁽¹⁾

As part of the 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, we entered into certain transactions beginning in first quarter 2018 for the purchase of third party natural gas and the subsequent sale of natural gas to other third parties. The natural gas is transported through firm transportation capacity we retained following the Marcellus Shale upstream divestiture in second quarter 2017 and is part of our mitigation efforts to utilize capacity and reduce our financial commitment. See Note 11. Segment Information and Note 12. Marcellus Shale Firm Transportation Contracts.


⁽²⁾	Amounts relate to unutilized firm transportation and shortfalls in delivering or transporting minimum volumes under certain commitments primarily in the DJ Basin for 2018 and in the DJ Basin and Marcellus Shale for 2017 (prior to the Marcellus Shale upstream divestiture in second quarter 2017).


⁽³⁾	Gain resulted from downward asset retirement obligation revisions in locations where we have no remaining assets. See Note 8. Asset Retirement Obligations.

⁽⁴⁾

Amounts for third quarter and first nine months of 2018 include a gain of $15 million and a loss of $25 million, respectively, due to changes in the fair value of our investment in shares of Tamar Petroleum Ltd. In addition, third quarter and first nine months of 2018 include dividend income of $17 million and $31 million, respectively. See Note 6. Fair Value Measurements and Disclosures.

Balance Sheet Information Table

Other balance sheet information is as follows:



(millions)	September 30, 2018			December 31, 2017
Accounts Receivable, Net
Commodity Sales	$	475		$	455
Joint Interest Billings	147			207
Other	90			103
Allowance for Doubtful Accounts	(14		)	(17		)
Total	$	698		$	748
Other Current Assets
Inventories, Materials and Supplies	$	52		$	66
Inventories, Crude Oil	34			16
Assets Held for Sale⁽¹⁾	—			629
Restricted Cash ⁽²⁾	1			38
Investment in Shares of Tamar Petroleum Ltd. ⁽³⁾	165			—
Prepaid Expenses and Other Current Assets	57			31
Total	$	309		$	780
Other Noncurrent Assets
Equity Method Investments ⁽⁴⁾	$	295		$	305
Customer-Related Intangible Assets ⁽⁵⁾	318			—
Mutual Fund Investments	58			57
Net Deferred Income Tax Asset	25			25
Other Assets, Noncurrent	78			74
Total	$	774		$	461
Other Current Liabilities
Production and Ad Valorem Taxes	$	112		$	84
Commodity Derivative Liabilities	294			58
Income Taxes Payable	57			18
Asset Retirement Obligations ⁽⁶⁾	92			51
Interest Payable	87			67
Current Portion of Capital Lease Obligations	44			61
Liabilities Associated with Assets Held for Sale ⁽¹⁾	—			55
Compensation and Benefits Payable	76			98
Other Liabilities, Current	123			86
Total	$	885		$	578
Other Noncurrent Liabilities
Deferred Compensation Liabilities	$	182		$	197
Asset Retirement Obligations ⁽⁶⁾	582			824
Marcellus Shale Firm Transportation Commitment ⁽⁷⁾	69			76
Production and Ad Valorem Taxes	60			69
Commodity Derivative Liabilities	100			15
Other Liabilities, Noncurrent	82			64
Total	$	1,075		$	1,245

⁽¹⁾

There are no assets held for sale at September 30, 2018. 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 investment 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 September 30, 2018 represents Noble Midstream Partners collateral on letters of credit. Balance at December 31, 2017 represents amount held in escrow pending closing of the Saddle Butte acquisition. See Note 3. Acquisitions and Divestitures.


⁽³⁾	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.


⁽⁴⁾	In 2018, we sold our units in CNX Midstream Partners LP, which was previously recorded as an equity method investment. 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 and is net of $22 million of accumulated amortization. See Note 3. Acquisitions and Divestitures.


⁽⁶⁾	The decrease in asset retirement obligations during the nine months ended September 30, 2018 is primarily due to liabilities assumed by purchasers of divested assets during the period, partially offset by revisions, accretion and additional liabilities incurred. See Note 8. Asset Retirement Obligations.

⁽⁷⁾

Amounts relate to the long-term portion of retained firm transportation agreements. The current portion of these obligations is included in other liabilities, current. See Note 12. Marcellus Shale Firm Transportation Contracts.

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:



	Nine Months Ended September 30,
(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	$	720	$	564
Restricted Cash at End of Period	1		—
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	721	$	564

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)	Oct - Dec 2018		2019		2020		Total
Natural Gas Revenues ⁽¹⁾	$	54	$	137	$	169	$	360

⁽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.