Condensed Consolidating Financial Information (Tables)

9 Months Ended

Sep. 30, 2014


CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
(Unaudited)

	Parent		Former Guarantors		Other Subsidiaries		Eliminations		Consolidated
	(in millions)
Three months ended September 30, 2013:
Operating revenues	$	–	$	823	$	131	$	(86)	$	868
Operating costs and expenses:
Gas purchases – midstream services		–		195		–		–		195
Operating expenses		–		140		36		(86)		90
General and administrative expenses		–		44		7		–		51
Depreciation, depletion and amortization		–		192		13		–		205
Taxes, other than income taxes		–		16		2		–		18
Total operating costs and expenses		–		587		58		(86)		559
Operating income		–		236		73		–		309
Gain on derivatives		–		10		2		–		12
Equity in earnings of subsidiaries		186		–		–		(186)		–
Interest expense		–		9		2		–		11
Income before income taxes		186		237		73		(186)		310
Provision for income taxes		–		91		33		–		124
Net income		186		146		40		(186)		186
Comprehensive income	$	139	$	98	$	41	$	(139)	$	139


CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
(Unaudited)

	Parent		Former Guarantors		Other Subsidiaries		Eliminations		Consolidated
	(in millions)
Nine months ended September 30, 2013:
Operating revenues	$	–	$	2,331	$	379	$	(246)	$	2,464
Operating costs and expenses:
Gas purchases – midstream services		–		575		–		–		575
Operating expenses		–		376		107		(246)		237
General and administrative expenses		–		117		19		–		136
Depreciation, depletion and amortization		–		534		37		–		571
Taxes, other than income taxes		–		50		9		–		59
Total operating costs and expenses		–		1,652		172		(246)		1,578
Operating income		–		679		207		–		886
Gain on derivatives		–		74		1		–		75
Equity in earnings of subsidiaries		559		–		–		(559)		–
Interest expense		–		24		5		–		29
Income before income taxes		559		729		203		(559)		932
Provision for income taxes		–		291		82		–		373
Net income		559		438		121		(559)		559
Comprehensive income	$	458	$	337	$	120	$	(457)	$	458


CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
(Unaudited)

	Parent		Former Guarantors		Other Subsidiaries			Eliminations			Consolidated
	(in millions)

Nine months ended September 30, 2013:
Net cash provided by (used in) operating activities	$	(33)	$	1,062		$	349		$	–		$	1,378
Investing activities:
Capital investments		(29)		(1,531)			(168)			–			(1,728)
Proceeds from sale of property and equipment		–		–			3			–			3
Transfers from restricted cash		9		–			–			–			9
Other		(1)		(2)			7			–			4
Net cash used in investing activities		(21)		(1,533)			(158)			–			(1,712)
Financing activities:
Intercompany activities		(275)		465			(190)			–			–
Payments on current portion of long-term debt		(1)		–			–			–			(1)
Payments on revolving long-term debt		(2,135)		–			–			–			(2,135)
Borrowings under revolving long-term debt		2,378		–			–			–			2,378
Other items		57		–			–			–			57
Net cash provided by (used in) financing activities		24		465			(190)			–			299
Increase (decrease) in cash and cash equivalents		(30)		(6)			1			–			(35)
Cash and cash equivalents at beginning of year		48		6			–			–			54
Cash and cash equivalents at end of period	$	18	$	–		$	1		$	–		$	19