Segment Information

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Information

Note 3. Segment Information

We have the following reportable segments: US onshore; Eastern Mediterranean (Israel, Egypt and Cyprus); West Africa (Equatorial Guinea, Cameroon and Gabon until June 2020); Other International (Canada, Colombia and New Ventures); and Midstream. The Midstream segment includes the consolidated accounts of Noble Midstream Partners.

The geographical reportable segments (US onshore, Eastern Mediterranean, West Africa and Other International) 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 midstream projects, with current focus areas being the DJ and Delaware Basins. Expenses related to debt, such as interest and other debt-related costs, headquarters depreciation, corporate general and administrative expenses, exit costs, corporate restructurings, and certain costs associated with mitigating the effects of our retained Marcellus Shale transportation agreements, are recorded in the Corporate reportable segment.

The chief operating decision maker analyzes (loss) income before income taxes to assess the performance of Noble Energy's reportable segments as management believes this measure provides useful information in assessing our operating and financial performance across periods.

			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
Three Months Ended June 30, 2020
Crude Oil Sales	$	261	$	230		$	—		$	31	$	—	$	—		$	—		$	—
NGL Sales	40		40			—			—		—		—			—			—
Natural Gas Sales	192		48			139			5		—		—			—			—
Total Crude Oil, NGL and Natural Gas Sales	493		318			139			36		—		—			—			—
Sales of Purchased Oil and Gas	49		4			—			—		—		29			—			16
Income (Loss) from Equity Method Investments and Other	3		(1		)	(1		)	8		—		(3		)	—			—
Midstream Services Revenues – Third Party	26		—			—			—		—		26			—			—
Intersegment Revenues	—		—			—			—		—		92			(92		)	—
Total Revenues	571		321			138			44		—		144			(92		)	16
Lease Operating Expense	98		81			15			20		—		(1		)	(17		)	—
Production and Ad Valorem Taxes	24		23			—			—		—		1			—			—
Gathering, Transportation and Processing Expense	89		133			3			—		—		20			(67		)	—
Other Royalty Expense	3		3			—			—		—		—			—			—
Total Production Expense	214		240			18			20		—		20			(84		)	—
Exploration Expense	15		5			2			5		3		—			—			—

				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
Depreciation, Depletion and Amortization	320			252			16		22			—			26			(8		)	12
Cost of Purchased Oil and Gas	63			4			—		—			—			29			—			30
Asset Impairments	51			—			—		51			—			—			—			—
Loss on Commodity Derivative Instruments	158			149			—		9			—			—			—			—
(Loss) Income Before Income Taxes	(476		)	(359		)	83		(69		)	(6		)	58			11			(194		)
Additions to Long-Lived Assets, Excluding Acquisitions	106			65			13		19			2			5			(4		)	6
Additions to Equity Method Investments	3			—			—		—			—			3			—			—
Three Months Ended June 30, 2019
Crude Oil Sales	$	688		$	617		$	2	$	69		$	—		$	—		$	—		$	—
NGL Sales	84			84			—		—			—			—			—			—
Natural Gas Sales	182			72			105		5			—			—			—			—
Total Crude Oil, NGL and Natural Gas Sales	954			773			107		74			—			—			—			—
Sales of Purchased Oil and Gas	103			28			—		—			—			52			—			23
Income (Loss) from Equity Method Investments and Other	16			1			—		17			—			(2		)	—			—
Midstream Services Revenues – Third Party	20			—			—		—			—			20			—			—
Intersegment Revenues	—			—			—		—			—			91			(91		)	—
Total Revenues	1,093			802			107		91			—			161			(91		)	23
Lease Operating Expense	122			114			9		10			—			1			(12		)	—
Production and Ad Valorem Taxes	41			40			—		—			—			1			—			—
Gathering, Transportation and Processing Expense	96			124			—		—			—			31			(59		)	—
Other Royalty Expense	1			1			—		—			—			—			—			—
Total Production Expense	260			279			9		10			—			33			(71		)	—
Depreciation, Depletion and Amortization	528			457			17		19			—			26			(6		)	15
Cost of Purchased Oil and Gas	113			28			—		—			—			48			—			37
Gain on Commodity Derivative Instruments	(60		)	(58		)	—		(2		)	—			—			—			—
Income (Loss) Before Income Taxes	28			70			65		59			(15		)	46			(15		)	(182		)
Additions to Long-Lived Assets, Excluding Acquisitions	647			478			119		12			2			52			(25		)	9
Additions to Equity Method Investments	144			—			—		—			—			144			—			—
Six Months Ended June 30, 2020
Crude Oil Sales	$	839		$	722		$	1	$	116		$	—		$	—		$	—		$	—
NGL Sales	102			102			—		—			—			—			—			—
Natural Gas Sales	446			108			329		9			—			—			—			—

				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
Total Crude Oil, NGL and Natural Gas Sales	1,387			932			330			125			—			—			—			—
Sales of Purchased Oil and Gas	174			29			—			—			—			112			—			33
Loss from Equity Method Investments and Other	(21		)	(1		)	(3		)	(9		)	—			(8		)	—			—
Midstream Services Revenues – Third Party	51			—			—			—			—			51			—			—
Intersegment Revenues	—			—			—			—			—			207			(207		)	—
Total Revenues	1,591			960			327			116			—			362			(207		)	33
Lease Operating Expense	236			189			28			50			—			—			(31		)	—
Production and Ad Valorem Taxes	63			60			—			—			—			3			—			—
Gathering, Transportation and Processing Expense	184			279			6			—			—			41			(142		)	—
Other Royalty Expense	7			7			—			—			—			—			—			—
Total Production Expense	490			535			34			50			—			44			(173		)	—
Exploration Expense	1,519			1,499			4			8			8			—			—			—
Depreciation, Depletion and Amortization	812			671			35			46			—			52			(17		)	25
Cost of Purchased Oil and Gas	202			32			—			—			—			109			—			61
Asset Impairments	2,754			2,703			—			51			—			—			—			—
Goodwill Impairment	110			—			—			—			—			110			—			—
(Gain) Loss on Commodity Derivative Instruments	(231		)	(240		)	—			9			—			—			—			—
(Loss) Income Before Income Taxes	(4,494		)	(4,276		)	228			(59		)	(12		)	27			—			(402		)
Additions to Long-Lived Assets, Excluding Acquisitions	548			422			44			38			11			48			(28		)	13
Additions to Equity Method Investments	155			—			—			—			—			155			—			—
Six Months Ended June 30, 2019
Crude Oil Sales	$	1,300		$	1,162		$	3		$	135		$	—		$	—		$	—		$	—
NGL Sales	180			180			—			—			—			—			—			—
Natural Gas Sales	411			180			222			9			—			—			—			—
Total Crude Oil, NGL and Natural Gas Sales	1,891			1,522			225			144			—			—			—			—
Sales of Purchased Oil and Gas	177			42			—			—			—			85			—			50
Income from Equity Method Investments and Other	33			1			—			32			—			—			—			—
Midstream Services Revenues – Third Party	44			—			—			—			—			44			—			—
Intersegment Revenues	—			—			—			—			—			197			(197		)	—
Total Revenues	2,145			1,565			225			176			—			326			(197		)	50
Lease Operating Expense	273			239			19			34			—			2			(21		)	—
Production and Ad Valorem Taxes	90			87			—			—			—			3			—			—
Gathering, Transportation and Processing Expense	198			266			—			—			—			60			(128		)	—

				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
Other Royalty Expense	4			4			—		—		—			—		—			—
Total Production Expense	565			596			19		34		—			65		(149		)	—
Depreciation, Depletion and Amortization	1,036			896			33		39		—			51		(13		)	30
Cost of Purchased Oil and Gas	200			42			—		—		—			79		—			79
Firm Transportation Exit Cost	92			—			—		—		—			—		—			92
Loss on Commodity Derivative Instruments	152			130			—		22		—			—		—			—
(Loss) Income Before Income Taxes	(345		)	(177		)	149		70		(31		)	119		(29		)	(446		)
Additions to Long-Lived Assets, Excluding Acquisitions	1,359			990			251		18		12			118		(48		)	18
Investments in Equity Method Investees	415			—			—		—		—			415		—			—
June 30, 2020
Property, Plant and Equipment, Net	$	12,986		$	7,473		$	3,058	$	737	$	55		$	1,721	$	(222	)	$	164
December 31, 2019
Property, Plant and Equipment, Net	$	17,451		$	11,859		$	3,041	$	793	$	44		$	1,721	$	(223	)	$	216

⁽¹⁾ 

Intersegment eliminations related to loss before income taxes are the result of midstream expenditures. Certain of these expenditures 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. Other expenditures are presented as production expense. Intercompany revenues and expenses are eliminated upon consolidation.