Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2018

Condensed Consolidating Financial Information [Abstract]

Condensed Consolidating Statements Of Operations

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in millions)	Parent		Guarantors		Non-Guarantors		Eliminations		Consolidated
Three months ended June 30, 2018:
Operating Revenues:
Gas sales	$	–	$	407	$	–	$	–	$	407
Oil sales		–		44		–		–		44
NGL sales		–		75		–		–		75
Marketing		–		265		–		–		265
Gas gathering		–		24		–		–		24
Other		–		1		–		–		1
		–		816		–		–		816
Operating Costs and Expenses:
Marketing purchases		–		265		–		–		265
Operating expenses		–		193		–		–		193
General and administrative expenses		–		59		–		–		59
Restructuring charges		–		18		–		–		18
Depreciation, depletion and amortization		–		142		–		–		142
Taxes, other than income taxes		–		15		–		–		15
		–		692		–		–		692
Operating Income		–		124		–		–		124
Interest Expense, Net		32		–		–		–		32
Loss on Derivatives		–		(36)		–		–		(36)
Loss on Early Extinguishment of Debt		(8)		–		–		–		(8)
Other Income, Net		–		3		–		–		3
Equity in Earnings of Subsidiaries		91		–		–		(91)		–
Income (Loss) Before Income Taxes		51		91		–		(91)		51
Provision (Benefit) for Income Taxes		–		–		–		–		–
Net Income (Loss)	$	51	$	91	$	–	$	(91)	$	51
Mandatory convertible preferred stock dividend		–		–		–		–		–
Participating securities - mandatory convertible preferred stock		–		–		–		–		–
Net Income (Loss) Attributable to Common Stock	$	51	$	91	$	–	$	(91)	$	51
Net Income (Loss)	$	51	$	91	$	–	$	(91)	$	51
Other comprehensive income		–		–		–		–		–
Comprehensive Income (Loss)	$	51	$	91	$	–	$	(91)	$	51

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in millions)	Parent		Guarantors		Non-Guarantors		Eliminations		Consolidated
Three months ended June 30, 2017:
Operating Revenues:
Gas sales	$	–	$	471	$	–	$	–	$	471
Oil sales		–		23		–		–		23
NGL sales		–		37		–		–		37
Marketing		–		250		–		–		250
Gas gathering		–		30		–		–		30
Other		–		–		–		–		–
		–		811		–		–		811
Operating Costs and Expenses:
Marketing purchases		–		253		–		–		253
Operating expenses		–		164		–		–		164
General and administrative expenses		–		58		–		–		58
Depreciation, depletion and amortization		–		123		–		–		123
Taxes, other than income taxes		–		25		–		–		25
		–		623		–		–		623
Operating Income		–		188		–		–		188
Interest Expense, Net		34		–		–		–		34
Gain on Derivatives		–		134		–		–		134
Loss on Early Extinguishment of Debt		(10)		–		–		–		(10)
Other Income, Net		–		6		–		–		6
Equity in Earnings of Subsidiaries		328		–		–		(328)		–
Income (Loss) Before Income Taxes		284		328		–		(328)		284
Provision (Benefit) for Income Taxes		–		–		–		–		–
Net Income (Loss)	$	284	$	328	$	–	$	(328)	$	284
Mandatory convertible preferred stock dividend		27		–		–		–		27
Participating securities - mandatory convertible preferred stock		33		–		–		–		33
Net Income (Loss) Attributable to Common Stock	$	224	$	328	$	–	$	(328)	$	224
Net Income (Loss)	$	284	$	328	$	–	$	(328)	$	284
Other comprehensive income		1		–		–		–		1
Comprehensive Income (Loss)	$	285	$	328	$	–	$	(328)	$	285

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in millions)	Parent		Guarantors		Non-Guarantors		Eliminations		Consolidated
Six months ended June 30, 2018:
Operating Revenues:
Gas sales	$	–	$	947	$	–	$	–	$	947
Oil sales		–		79		–		–		79
NGL sales		–		140		–		–		140
Marketing		–		518		–		–		518
Gas gathering		–		48		–		–		48
Other		–		4		–		–		4
		–		1,736		–		–		1,736
Operating Costs and Expenses:
Marketing purchases		–		520		–		–		520
Operating expenses		–		382		–		–		382
General and administrative expenses		–		114		–		–		114
Restructuring charges		–		18		–		–		18
Depreciation, depletion and amortization		–		285		–		–		285
Taxes, other than income taxes		–		38		–		–		38
		–		1,357		–		–		1,357
Operating Income		–		379		–		–		379
Interest Expense, Net		71		–		–		–		71
Loss on Derivatives		–		(43)		–		–		(43)
Loss on Early Extinguishment of Debt		(8)		–		–		–		(8)
Other Income, Net		–		2		–		–		2
Equity in Earnings of Subsidiaries		338		–		–		(338)		–
Income (Loss) Before Income Taxes		259		338		–		(338)		259
Provision (Benefit) for Income Taxes		–		–		–		–		–
Net Income (Loss)	$	259	$	338	$	–	$	(338)	$	259
Mandatory convertible preferred stock dividend		–		–		–		–		–
Participating securities - mandatory convertible preferred stock		2		–		–		–		2
Net Income (Loss) Attributable to Common Stock	$	257	$	338	$	–	$	(338)	$	257
Net Income (Loss)	$	259	$	338	$	–	$	(338)	$	259
Other comprehensive income		–		–		–		–		–
Comprehensive Income (Loss)	$	259	$	338	$	–	$	(338)	$	259

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in millions)	Parent		Guarantors		Non-Guarantors		Eliminations		Consolidated
Six months ended June 30, 2017:
Operating Revenues:
Gas sales	$	–	$	974	$	–	$	–	$	974
Oil sales		–		46		–		–		46
NGL sales		–		77		–		–		77
Marketing		–		503		–		–		503
Gas gathering		–		57		–		–		57
		–		1,657		–		–		1,657
Operating Costs and Expenses:
Marketing purchases		–		504		–		–		504
Operating expenses		–		311		–		–		311
General and administrative expenses		–		108		–		–		108
Depreciation, depletion and amortization		–		229		–		–		229
Taxes, other than income taxes		–		51		–		–		51
		–		1,203		–		–		1,203
Operating Income		–		454		–		–		454
Interest Expense, Net		66		–		–		–		66
Gain on Derivatives		–		250		–		–		250
Loss on Early Extinguishment of Debt		(11)		–		–		–		(11)
Other Income, Net		–		8		–		–		8
Equity in Earnings of Subsidiaries		712		–		–		(712)		–
Income (Loss) Before Income Taxes		635		712		–		(712)		635
Provision (Benefit) for Income Taxes		–		–		–		–		–
Net Income (Loss)	$	635	$	712	$	–	$	(712)	$	635
Mandatory convertible preferred stock dividend		54		–		–		–		54
Participating securities - mandatory convertible preferred stock		76		–		–		–		76
Net Income (Loss) Attributable to Common Stock	$	505	$	712	$	–	$	(712)	$	505
Net Income (Loss)	$	635	$	712	$	–	$	(712)	$	635
Other comprehensive income		1		–		–		–		1
Comprehensive Income (Loss)	$	636	$	712	$	–	$	(712)	$	636

Condensed Consolidating Balance Sheets

CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in millions)	Parent		Guarantors		Non-Guarantors		Eliminations		Consolidated
June 30, 2018:
ASSETS
Cash and cash equivalents	$	29		8		–		–	$	37
Accounts receivable, net		–		416		–		–		416
Other current assets		8		106		–		–		114
Total current assets		37		530		–		–		567
Intercompany receivables		7,954		–		–		(7,954)		–
Natural gas and oil properties, using the full cost method		–		24,557		54		–		24,611
Gathering systems		–		1,295		27		–		1,322
Other		209		367		–		–		576
Less: Accumulated depreciation, depletion and amortization		(149)		(20,070)		(57)		–		(20,276)
Total property and equipment, net		60		6,149		24		–		6,233
Investments in subsidiaries (equity method)		–		24		–		(24)		–
Other long-term assets		22		220		–		–		242
TOTAL ASSETS	$	8,073		6,923		24		(7,978)	$	7,042
LIABILITIES AND EQUITY
Accounts payable	$	82		560		–		–	$	642
Other current liabilities		75		141		–		–		216
Total current liabilities		157		701		–		–		858
Intercompany payables		–		7,954		–		(7,954)		–
Long-term debt		3,570		–		–		–		3,570
Pension and other postretirement liabilities		55		–		–		–		55
Other long-term liabilities		11		298		–		–		309
Negative carrying amount of subsidiaries, net		2,030		–		–		(2,030)		–
Total long-term liabilities		5,666		298		–		(2,030)		3,934
Commitments and contingencies
Total equity (accumulated deficit)		2,250		(2,030)		24		2,006		2,250
TOTAL LIABILITIES AND EQUITY	$	8,073		6,923		24		(7,978)	$	7,042

CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in millions)	Parent		Guarantors		Non-Guarantors		Eliminations		Consolidated
December 31, 2017:
ASSETS
Cash and cash equivalents	$	914	$	2	$	–	$	–	$	916
Accounts receivable, net		–		428		–		–		428
Other current assets		10		155		–		–		165
Total current assets		924		585		–		–		1,509
Intercompany receivables		7,978		–		–		(7,978)		–
Natural gas and oil properties, using the full cost method		–		23,834		56		–		23,890
Gathering systems		–		1,288		27		–		1,315
Other		207		357		–		–		564
Less: Accumulated depreciation, depletion and amortization		(134)		(19,804)		(59)		–		(19,997)
Total property and equipment, net		73		5,675		24		–		5,772
Investments in subsidiaries (equity method)		–		24		–		(24)		–
Other long-term assets		16		224		–		–		240
TOTAL ASSETS	$	8,991	$	6,508	$	24	$	(8,002)	$	7,521
LIABILITIES AND EQUITY
Accounts payable	$	73	$	460	$	–	$	–	$	533
Other current liabilities		110		137		–		–		247
Total current liabilities		183		597		–		–		780
Intercompany payables		–		7,978		–		(7,978)		–
Long-term debt		4,391		–		–		–		4,391
Pension and other postretirement liabilities		58		–		–		–		58
Other long-term liabilities		13		300		–		–		313
Negative carrying amount of subsidiaries, net		2,367		–		–		(2,367)		–
Total long-term liabilities		6,829		300		–		(2,367)		4,762
Commitments and contingencies
Total equity (accumulated deficit)		1,979		(2,367)		24		2,343		1,979
TOTAL LIABILITIES AND EQUITY	$	8,991	$	6,508	$	24	$	(8,002)	$	7,521

Condensed Consolidating Statements Of Cash Flows

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
(in millions)	Parent		Guarantors		Non-Guarantors		Eliminations		Consolidated
Six months ended June 30, 2018:
Net cash provided by (used in) operating activities	$	276	$	725	$	–	$	(337)	$	664
Investing activities:
Capital investments		(6)		(678)		–		–		(684)
Other		–		9		–		–		9
Net cash used in investing activities		(6)		(669)		–		–		(675)
Financing activities
Intercompany activities		(287)		(50)		–		337		–
Payments on long-term debt		(1,191)		–		–		–		(1,191)
Payments on revolving credit facility		(645)		–		–		–		(645)
Borrowings under revolving credit facility		1,005		–		–		–		1,005
Preferred stock dividend		(27)		–		–		–		(27)
Other		(10)		–		–		–		(10)
Net cash provided by (used in) financing activities		(1,155)		(50)		–		337		(868)
Increase (decrease) in cash and cash equivalents		(885)		6		–		–		(879)
Cash and cash equivalents at beginning of year		914		2		–		–		916
Cash and cash equivalents at end of period	$	29	$	8	$	–	$	–	$	37
Six months ended June 30, 2017:
Net cash provided by (used in) operating activities	$	613	$	677	$	–	$	(712)	$	578
Investing activities:
Capital investments		(7)		(609)		(3)		–		(619)
Other		1		12		–		–		13
Net cash used in investing activities		(6)		(597)		(3)		–		(606)
Financing activities
Intercompany activities		(634)		(81)		3		712		–
Payments on long-term debt		(287)		–		–		–		(287)
Other		3		–		–		–		3
Net cash provided by (used in) financing activities		(918)		(81)		3		712		(284)
Increase (decrease) in cash and cash equivalents		(311)		(1)		–		–		(312)
Cash and cash equivalents at beginning of year		1,416		7		–		–		1,423
Cash and cash equivalents at end of period	$	1,105	$	6	$	–	$	–	$	1,111