Impairments (Notes)

3 Months Ended

Mar. 31, 2020

Other Income and Expenses [Abstract]

Note 4. Impairments

We performed a number of impairment assessments during first quarter 2020.These assessments included using various valuation techniques and Level 3 inputs on the fair value hierarchy. See Note 2. Basis of Presentation.

Information regarding impairments recorded in first quarter 2020 is as follows:



(millions)	Statement of Operations Location	Net Book Value ⁽¹⁾		Pre-tax Impairment
Proved Property Impairment - Delaware Basin	Asset Impairments	$	3,613	$	2,703

Leasehold Impairment - Delaware Basin	Exploration Expense	1,915		1,385
Leasehold Impairment - Eagle Ford Shale	Exploration Expense	100		100
Total Exploration Expense		$	2,015	$	1,485

Goodwill Impairment - Noble Midstream Partners	Goodwill Impairment	$	110	$	110
Finance Lease Right-of-Use Asset Impairment	Other Operating Expense, Net	88		40


⁽¹⁾	Represents net book value at the date of assessment prior to recording pre-tax impairment.

Property Impairments In first quarter 2020, following our impairment analysis, we recorded impairment expense as follows:

•

Delaware Basin Assets The fair values of our Delaware Basin assets were estimated using the income approach and resulted in fair values of approximately $910 million and $530 million associated with proved properties (inclusive of associated midstream assets) and unproved properties, respectively. We recognized total impairment expense of $4.1 billion for the excess of the carrying value above the fair value of the properties.


•	Eagle Ford Shale Unproved Properties After assessing future development scenarios and in contemplation of the current commodity and supply/demand environment, we determined that all $100 million of remaining unproved leasehold costs were impaired due to the likelihood of future drilling in certain zones in this area.

Goodwill Impairment Noble Midstream Partners concluded the fair value of its Black Diamond reporting unit was less than its carrying value and therefore performed a fair value assessment. Based on the assessment, Noble Midstream Partners concluded that the entire carrying amount of goodwill was fully impaired and recorded goodwill impairment expense of $110 million. Of the $110 million of goodwill impairment expense included in our consolidated statements of operations, approximately $38 million is attributable to Noble Energy relating to our ownership interests in the Black Diamond entity, while the remainder of $72 million is attributable to noncontrolling interests.

Finance Lease Right-of-Use Asset Impairment During the quarter, we recognized impairment expense for the excess of the carrying value above the fair value of the right-of-use asset relating to a corporate real estate lease. The impairment, which was recorded at the Corporate level, is the result of economic facts and circumstances and plans pertaining to the future use of the asset.