(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 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 of the Notes to Consolidated Financial Statements included in Item 8 of the 2017 Annual Report. 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 and other income (loss). The “Other” column includes items not related to the Company’s reportable segments, including real estate and corporate items.



	E&P		Midstream			Other			Total
Three months ended March 31, 2018:	(in millions)
Revenues from external customers	$	643	$	277		$	–		$	920
Intersegment revenues		(6)		619			–			613
Depreciation, depletion and amortization expense		117		26	(1)		–			143
Operating income		238		17			–			255
Interest expense (2)		39		–			–			39
Loss on derivatives		(7)		–			–			(7)
Other income (loss), net		–		(1)			–			(1)
Assets		5,346		1,217			1,150	(3)		7,713
Capital investments (4)		334		4			–			338

Three months ended March 31, 2017:
Revenues from external customers	$	566	$	280		$	–		$	846
Intersegment revenues		(3)		578			–			575
Depreciation, depletion and amortization expense		90		16			–			106
Operating income		225		41			–			266
Interest expense (2)		32		–			–			32
Gain on derivatives		116		–			–			116
Other income, net		2		–			(1)			1
Assets		4,413		1,268			1,515	(3)		7,196
Capital investments (4)		283		6			1			290

(1)

Includes a $10 million impairment related to certain non-core gathering assets.

(2)

Interest expense by segment is an allocation of corporate amounts as they are incurred at the corporate level.

(3)

Other assets represent corporate assets not allocated to segments and assets for non-reportable segments. At March 31, 2018 and 2017, other assets includes approximately $958 million and $1.4 billion in cash and cash equivalents, respectively.

(4)

Capital investments includes an increase of $33 million and a decrease of $52 million for the three months ended March 31, 2018 and 2017, respectively, relating to the change in capital accruals between periods.

Included in intersegment revenues of the Midstream segment are $576 million and $524 million for the three months ended March 31, 2018 and 2017, 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 taxes, are allocated to the segments.