Segment Information

12 Months Ended

Dec. 31, 2018

Note 3. Segment Information

We have the following reportable segments: United States (US onshore and Gulf of Mexico (until April 2018)); Eastern Mediterranean (Israel and Cyprus); West Africa (Equatorial Guinea, Cameroon and Gabon); Other International (Suriname, Falkland Islands, Canada, and New Ventures); and Midstream. The Midstream segment includes the consolidated accounts of Noble Midstream Partners, US onshore equity method investments and other US onshore midstream assets.

The geographical reportable segments are in the business of crude oil and natural gas acquisition and exploration, development, and production (Oil and Gas Exploration and Production). The Midstream reportable segment develops, owns, and operates domestic midstream infrastructure assets, as well as invests in other financially attractive midstream projects, with current focus areas being the DJ and Delaware Basins. To assess the performance of Noble Energy's operating segments, the chief operating decision maker analyzes income (loss) before income taxes. Management believes income (loss) before income taxes provides information useful in assessing the Company's operating and financial performance across periods.

Expenses related to debt, headquarters depreciation, corporate general and administrative expenses, exit costs and certain costs associated with mitigating the effects of our retained Marcellus Shale firm transportation agreements, are recorded at the corporate level.



				Oil and Gas Exploration and Production											Midstream
(millions)	Consolidated			United States			Eastern Mediter- ranean			West Africa		Other Int'l			United States			Intersegment Eliminations and Other ⁽¹⁾			Corporate
Year Ended December 31, 2018
Crude Oil Sales	$	2,945		$	2,548		$	7		$	390	$	—		$	—		$	—		$	—
NGL Sales	587			587			—			—		—			—			—			—
Natural Gas Sales	929			435			473			21		—			—			—			—
Total Crude Oil, NGL and Natural Gas Sales	4,461			3,570			480			411		—			—			—			—
Sales of Purchased Oil and Gas	275			20			—			—		—			142			—			113
Income from Equity Method Investees	172			—			—			132		—			40			—			—
Midstream Services Revenues - Third Party	78			—			—			—		—			78			—			—
Intersegment Revenues	—														351			(351		)
Total Revenues	4,986			3,590			480			543		—			611			(351		)	113
Lease Operating Expense	576			480			26			97		—			—			(27		)	—
Production and Ad Valorem Taxes	190			184			—			—		—			6			—			—
Gathering, Transportation and Processing Expense	393			533			—			—		—			95			(235		)	—
Other Royalty Expense	38			38			—			—		—			—			—			—
Total Production Expense	1,197			1,235			26			97		—			101			(262		)	—
Exploration Expense	129			48			7			6		68			—			—			—
DD&A	1,934			1,642			60			115		2			87			(20		)	48
(Gain) Loss on Divestitures, Net	(843		)	36			(376		)	—		—			(503		)	—			—
Asset Impairments	206			169			—			—		—			37			—			—
Goodwill Impairment	1,281			1,281			—			—		—			—			—			—
Cost of Purchased Oil and Gas	296			20			—			—		—			136			—			140
Gain on Asset Retirement Obligation Revisions	(25		)	—			(8		)	—		(17		)	—			—			—
(Gain) Loss on Commodity Derivative Instruments	(63		)	(70		)	—			7		—			—			—			—
Income (Loss) Before Income Taxes	140			(875		)	742			305		(53		)	726			(60		)	(645		)
Additions to Long Lived Assets	3,253			2,115			671			12		—			521			(91		)	25
Property, Plant and Equipment, Net	18,419			13,044			2,630			805		37			1,742			(145		)	306
Year Ended December 31, 2017
Crude Oil Sales	$	2,346		$	1,993		$	6		$	347	$	—		$	—		$	—		$	—
NGL Sales	493			493			—			—		—			—			—			—
Natural Gas Sales	1,221			670			528			23		—			—			—			—
Total Crude Oil, NGL and Natural Gas Sales	4,060			3,156			534			370		—			—			—			—
Income from Equity Method Investees	177			—			—			120		—			57			—			—
Midstream Services Revenues - Third Party	19			—			—			—		—			19			—			—
Intersegment Revenues	—			—			—			—		—			277			(277		)	—
Total Revenues	4,256			3,156			534			490		—			353			(277		)	—



				Oil and Gas Exploration and Production											Midstream
(millions)	Consolidated			United States			Eastern Mediter- ranean			West Africa		Other Int'l			United States		Intersegment Eliminations and Other ⁽¹⁾			Corporate
Lease Operating Expense	571			466			29			90		—			—		(14		)	—
Production and Ad Valorem Taxes	118			115			—			—		—			3		—			—
Gathering, Transportation and Processing Expense	432			550			—			—		—			70		(188		)	—
Other Royalty Expense	20			20			—			—		—			—		—			—
Total Production Expense	1,141			1,151			29			90		—			73		(202		)	—
Exploration Expense	188			102			2			5		79			—		—			—
DD&A	2,053			1,739			76			146		4			30		(5		)	63
Loss on Marcellus Shale Upstream Divestiture and Other	2,379			2,286			—			—		—			—		—			93
Gain on Divestitures, Net	(326		)	(325		)	(1		)	—		—			—		—			—
Asset Impairments	70			63			—			—		7			—		—			—
Clayton Williams Energy Acquisition Expenses	100			100			—			—		—			—		—			—
Gain on Asset Retirement Obligation Revision	(42		)	—			—			—		(42		)	—		—			—
(Gain) Loss on Commodity Derivative Instruments	(63		)	(92		)	—			29		—			—		—			—
Loss on Debt Extinguishment	98			—			—			—		—			—		—			98
(Loss) Income Before Income Taxes	(2,191		)	(2,365		)	413			203		(54		)	233		(62		)	(559		)
Additions to Long Lived Assets	2,851			1,994			411			34		(34		)	423		(79		)	102
Property, Plant and Equipment, Net	17,502			13,348			2,005			863		25			1,027		(74		)	308
Year Ended December 31, 2016
Crude Oil Sales	$	1,854		$	1,439		$	5		$	410	$	—		$	—	$	—		$	—
NGL Sales	296			296			—			—		—			—		—			—
Natural Gas Sales	1,239			681			535			23		—			—		—			—
Total Crude Oil, NGL and Natural Gas Sales	3,389			2,416			540			433		—			—		—			—
Income from Equity Method Investees	102			—			—			50		—			52		—			—
Intersegment Revenues	—			—			—			—		—			200		(200		)	—
Total Revenues	3,491			2,416			540			483		—			252		(200		)	—
Lease Operating Expense	542			418			37			105		—			—		(18		)	—
Production and Ad Valorem Taxes	57			55			—			—		—			2		—			—
Gathering, Transportation and Processing Expense	480			564			—			—		—			44		(128		)	—
Other Royalty Expense	21			21			—			—		—			—		—			—
Total Production Expense	1,100			1,058			37			105		—			46		(146		)	—
Exploration Expense	925			245			34			483		163			—		—			—
DD&A	2,454			2,103			81			205		6			19		—			40
(Gain) Loss on Divestitures, Net	(238		)	23			(261		)	—		—			—		—			—
Asset Impairments	92			—			88			—		4			—		—			—



			Oil and Gas Exploration and Production							Midstream
(millions)	Consolidated		United States		Eastern Mediter- ranean	West Africa		Other Int'l		United States	Intersegment Eliminations and Other ⁽¹⁾		Corporate
Loss on Commodity Derivative Instruments	139		126		—	13		—		—	—		—
(Loss) Income Before Income Taxes	(1,772	)	(1,277	)	543	(338	)	(199	)	176	(51	)	(626	)
Additions to Long Lived Assets	1,526		1,353		88	54		(6	)	58	(53	)	32
Property, Plant and Equipment, Net	18,548		14,755		1,872	980		15		594	—		332


⁽¹⁾	Intersegment eliminations related to income (loss) before income taxes are the result of Midstream expenditures. These costs are presented as property, plant and equipment within the E&P business on an unconsolidated basis, in accordance with the successful efforts method of accounting, and are eliminated upon consolidation.

The largest single non-affiliated purchasers of our production were as follows:



	Percentage of Crude Oil Sales		Percentage of Total Oil, NGL & Gas Sales
Year Ended December 31, 2018
BP ⁽¹⁾	31	%	17	%
Shell ⁽²⁾	22	%	14	%
Year Ended December 31, 2017
BP ⁽¹⁾	15	%	10	%
Shell ⁽²⁾	22	%	13	%
Year Ended December 31, 2016
Glencore Energy UK Ltd	22	%	12	%
Shell ⁽²⁾	24	%	13	%

⁽¹⁾Includes sales to BP North American Funding Company, BP Company Commercial and/or BP Company.

⁽²⁾Includes sales to Shell Trading (US) Company and/or Shell International Trading and Shipping Limited.

Both BP and Shell purchased crude oil and condensate domestically from our US onshore operations and from our Gulf of Mexico operations prior to selling the Gulf of Mexico assets in second quarter 2018. No other single purchaser accounted for 10% or more of crude oil, NGL and natural gas sales in 2018. We maintain credit insurance associated with specific purchasers and believe that the loss of any one purchaser would not have a material effect on our financial position or results of operations as there are numerous potential purchasers of our production.