Segment Information

12 Months Ended

Dec. 31, 2014

Segment Information [Abstract]

Segment Information

(14) SEGMENT INFORMATION

The Company’s reportable business segments have been identified based on the differences in products or services provided. Revenues for the E&P segment are derived from the production and sale of natural gas and crude oil. The Midstream Services segment generates revenue through the marketing of both Company and third-party produced natural gas volumes and through gathering fees associated with the transportation of natural gas to market.

Summarized financial information for the Company’s reportable segments is shown in the following table. The accounting policies of the segments are the same as those described in Note 1. Management evaluates the performance of its segments based on operating income, defined as operating revenues less operating costs. Income before income taxes, for the purpose of reconciling the operating income amount shown below to consolidated income before income taxes, is the sum of operating income, interest expense, and other income (loss). The “Other” column includes items not related to the Company’s reportable segments including real estate and corporate items.

	Exploration
	and			Midstream
	Production			Services		Other		Total
	(in millions)
2014
Revenues from external customers	$	2,850		$	1,188	$	–	$	4,038
Intersegment revenues		12			3,170		–		3,182
Operating income (loss)		1,013			361		(1)		1,373
Other loss, net		(3)			(1)		–		(4)
Gain (loss) on derivatives		142			(1)		(2)		139
Depreciation, depletion and amortization expense		884			58		–		942
Interest expense(1)		47			12		–		59
Provision for income taxes(1)		402			123		–		525
Assets		13,018	(3)		1,554		353		14,925
Capital investments(4)		7,254			144		49		7,447
2013
Revenues from external customers	$	2,398		$	973	$	–	$	3,371
Intersegment revenues		6			2,374		–		2,380
Operating income		879			325		–		1,204
Other income (loss), net		3			–		(1)		2
Gain on derivatives		26			–		–		26
Depreciation, depletion and amortization expense		735			51		1		787
Interest expense(1)		30			11		1		42
Provision (benefit) for income taxes(1)		368			119		(1)		486
Assets		6,357	(3)		1,427		264		8,048
Capital investments(4)		2,052			158		25		2,235
2012
Revenues from external customers	$	1,965		$	765	$	–	$	2,730
Intersegment revenues		(1)			1,598		3		1,600
Operating income (loss)		(1,396)	(2)		294		1		(1,101)
Other income (loss), net		(1)			–		2		1
Loss on derivatives		(15)			–		–		(15)
Depreciation, depletion and amortization expense		766			44		1		811
Impairment of natural gas and oil properties		1,940			–		–		1,940
Interest expense(1)		20			14		1		35
Provision (benefit) for income taxes(1)		(549)			105		1		(443)
Assets		5,194	(3)		1,273		271		6,738
Capital investments(4)		1,861			165		55		2,081

⁽¹⁾ Interest expense and the provision (benefit) for income taxes by segment are an allocation of corporate amounts as they are incurred at the corporate level.

⁽²⁾ Includes a $1,940 million non-cash ceiling test impairment of the Company’s natural gas and oil properties.

⁽³⁾ Includes office, technology, drilling rigs and other ancillary equipment not directly related to natural gas and oil property acquisition, exploration and development activities.

⁽⁴⁾ Capital investments include an increase of $155 million for 2014 and a decrease of $25 million and $37 million for 2013 and 2012, respectively, related to the change in accrued expenditures between years.

Included in intersegment revenues of the Midstream Services segment are approximately$2.8 billion, $2.0 billion and $1.3 billion for 2014, 2013 and 2012, respectively, for marketing of the Company’s E&P sales.  Corporate assets include cash and cash equivalents, furniture and fixtures, prepaid debt and other costs. Corporate general and administrative costs, depreciation expense and taxes other than income are allocated to the segments. For 2014, 2013,  and 2012, capital investments within the E&P segment include $11 million,  $35 million, and $12respectively, related to the Company’s activities in Canada. As of December 31, 2014,  2013, and 2012, E&P assets include $77 million,  $79 million, $44 million related to the Company’s activities in Canada.