Segment Information

12 Months Ended

Dec. 31, 2016

Segment Information [Abstract]

Segment Information

(13) 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 liquids. The Midstream Services segment generates revenue through the marketing of both Company and third-party produced natural gas and liquids 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 – Organization and Summary of Significant Accounting Policies. 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,gain (loss) on derivatives, loss on early extinguishment of debt 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)
2016
Revenues from external customers	$	1,435		$	1,001		$	–		$	2,436
Intersegment revenues		(22)			1,568			–			1,546
Depreciation, depletion and amortization expense		371			65			–			436
Impairment of natural gas and oil properties		2,321			–			–			2,321
Operating income (loss)		(2,404)	(1)		209	(2)		–			(2,195)
Interest expense (3)		87			1			–			88
Gain (loss) on derivatives		(338)			(1)			–			(339)
Loss on early extinguishment of debt		–			–			(51)			(51)
Other income (loss), net		5			(2)			(2)			1
Provision (benefit) for income taxes(3)		(29)			–			–			(29)
Assets		4,178	(4)		1,331			1,567	(5)		7,076
Capital investments(6)		623			21			4			648
2015
Revenues from external customers	$	2,095		$	1,038		$	–		$	3,133
Intersegment revenues		(21)			2,081			–			2,060
Depreciation, depletion and amortization expense		1,028			62			1			1,091
Impairment of natural gas and oil properties		6,950			–			–			6,950
Operating income (loss)		(7,104)			583	(7)		(1)			(6,522)
Interest expense (3)		47			9			–			56
Gain (loss) on derivatives		51			–			(4)			47
Other loss, net		(21)			(9)			–			(30)
Provision (benefit) for income taxes (3)		(2,273)			268			–			(2,005)
Assets		6,588	(4)		1,290			208			8,086
Capital investments (6)		2,258			167			12			2,437
2014
Revenues from external customers	$	2,850		$	1,188		$	–		$	4,038
Intersegment revenues		12			3,170			–			3,182
Depreciation, depletion and amortization expense		884			58			–			942
Operating income (loss)		1,013			361			(1)			1,373
Interest expense (3)		47			12			–			59
Gain (loss) on derivatives		142			(1)			(2)			139
Other loss, net		(3)			(1)			–			(4)
Provision for income taxes (3)		402			123			–			525
Assets		13,018	(4)		1,554			343			14,915
Capital investments (6)		7,254			144			49			7,447

(1) Operating loss for the E&P segment includes $86 million related to restructuring and other one-time charges for the year ended December 31, 2016.

(2) Operating income for the Midstream Services segment includes $3 million related to restructuring charges for the year ended December 31, 2016.

(3) 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.

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

(5) Other assets represent corporate assets not allocated to segments and assets for non-reportable segments. At December 31, 2016, other assets includes approximately $1.4 billion in cash and cash equivalents.

(6) Capital investments include an increase of $43 million for 2016, a decrease of $33 million for 2015 and an increase of $155 million for 2014 related to the change in accrued expenditures between years.

(7) Operating income (loss) for the Midstream Services segment includes a $277 million gain on sale of assets for the year ended December 31, 2015.

Included in intersegment revenues of the Midstream Services segment are$1.3  billion, $1.8 billion and $2.8 billion for 2016, 2015 and 2014, respectively, for marketing of the Company’s E&P sales.  Corporate assets include cash and cash equivalents, furniture and fixtures and other costs. Corporate general and administrative costs, depreciation expense and taxes other than income are allocated to the segments.