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Leases (Tables)

3 Months Ended

Mar. 31, 2019

ROU assets and lease liabilities are as follows:



(millions)	Balance Sheet Location	March 31, 2019
ROU Assets
Operating Leases ⁽¹⁾	Other Noncurrent Assets	$	273
Finance Leases ⁽²⁾	Total Property, Plant and Equipment, Net	179
Total ROU Assets		$	452
Lease Liabilities
Current Liabilities
Operating Leases	Other Current Liabilities	$	86
Finance Leases	Other Current Liabilities	41
Noncurrent Liabilities
Operating Leases	Other Noncurrent Liabilities	194
Finance Leases	Long-Term Debt	174
Total Lease Liabilities		$	495


⁽¹⁾	Operating lease ROU assets include primarily office space of $107 million, compressors of $87 million, and drilling rigs of $40 million.

⁽²⁾

Finance lease ROU assets are recorded net of accumulated amortization of $449 million as of March 31, 2019. Assets include primarily office space of $96 million, net. Other information related to our leases is as follows:



	March 31, 2019
Weighted-Average Remaining Lease Term
Operating Leases	6.7 years
Finance Leases	8.0 years
Weighted-Average Discount Rate
Operating Leases	4.45	%
Finance Leases	5.61	%

Lease Expense

The components of lease cost are as follows:



(millions)	Statement of Operations Location	Three Months Ended March 31, 2019
Operating Lease Cost	⁽¹⁾	$	25
Finance Lease Cost
Amortization Expense on ROU Assets	Depreciation, Depletion and Amortization	8
Interest Expense on Lease Liabilities	Interest, Net of Amount Capitalized	3
Short-term Lease Cost ⁽²⁾	⁽¹⁾	126
Variable Lease Cost ⁽³⁾	⁽¹⁾	—
Sublease Income	General and Administrative	(1		)
Total Lease Cost		$	161


⁽¹⁾	Cost classification varies depending on the leased asset. Costs are primarily included within production expense and general and administrative expense. In addition, in accordance with the successful efforts method of accounting, certain lease costs may be capitalized when incurred, as part of oil and gas properties on our consolidated balance sheet.

⁽²⁾

Short-term lease costs relate primarily to hydraulic fracturing services, well-to-well drilling rig contracts and other miscellaneous lease agreements. Amount excludes costs for leases with a term of one month or less.

Supplemental Cash Flow Information

Supplemental cash flow information is as follows:



	Three Months Ended March 31, 2019
(millions)	Operating Leases		Finance Leases
Cash Paid for Amounts Included in the Measurement of Lease Liabilities
Operating Cash Flows	$	15	$	3
Financing Cash Flows	—		10
Investing Cash Flows	9		—
ROU Assets Obtained in Exchange for Lease Liabilities ⁽¹⁾	34		2

⁽¹⁾

Amounts exclude the impact from adopting ASC 842 on January 1, 2019. See Note 2. Basis of Presentation.

Operating Lease Liability Maturity

lease liabilities as of March 31, 2019 are as follows:



(millions)	Operating Leases		Finance Leases		Total
Remainder of 2019	$	73	$	37	$	110
2020	83		47		130
2021	47		32		79
2022	32		22		54
2023	19		20		39
2024 and Thereafter	67		105		172
Total Lease Liabilities, Undiscounted	321		263		584
Less: Imputed Interest	41		48
Total Lease Liabilities ⁽¹⁾	$	280	$	215

⁽¹⁾

Includes the current portion of $86 million and $41 million for operating and finance leases, respectively.

Finance Lease Liability Maturity

lease liabilities as of March 31, 2019 are as follows:



(millions)	Operating Leases		Finance Leases		Total
Remainder of 2019	$	73	$	37	$	110
2020	83		47		130
2021	47		32		79
2022	32		22		54
2023	19		20		39
2024 and Thereafter	67		105		172
Total Lease Liabilities, Undiscounted	321		263		584
Less: Imputed Interest	41		48
Total Lease Liabilities ⁽¹⁾	$	280	$	215

⁽¹⁾

Includes the current portion of $86 million and $41 million for operating and finance leases, respectively.

Schedule of Future Minimum Rental Payments for Operating Leases

Lease commitments as of December 31, 2018 were as follows:



(millions)	Operating Leases		Finance Leases		Total
2019	$	91	$	52	$	143
2020	74		46		120
2021	59		31		90
2022	62		22		84
2023	50		20		70
2024 and Thereafter	176		104		280
Total Lease Liabilities, Undiscounted	$	512	$	275	$	787

Schedule of Future Minimum Lease Payments for Finance Leases

Lease commitments as of December 31, 2018 were as follows:



(millions)	Operating Leases		Finance Leases		Total
2019	$	91	$	52	$	143
2020	74		46		120
2021	59		31		90
2022	62		22		84
2023	50		20		70
2024 and Thereafter	176		104		280
Total Lease Liabilities, Undiscounted	$	512	$	275	$	787