Condensed Consolidating Financial Information (Tables)

9 Months Ended

Sep. 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 September 30, 2018:
Operating Revenues:
Gas sales	$	–	$	465	$	–	$	–	$	465
Oil sales		–		62		–		–		62
NGL sales		–		112		–		–		112
Marketing		–		287		–		–		287
Gas gathering		–		25		–		–		25
Other		–		–		–		–		–
		–		951		–		–		951
Operating Costs and Expenses:
Marketing purchases		–		288		–		–		288
Operating expenses		–		206		–		–		206
General and administrative expenses		–		51		–		–		51
Restructuring charges		–		2		–		–		2
Depreciation, depletion and amortization		–		151		–		–		151
Impairments		–		161		–		–		161
Taxes, other than income taxes		–		26		–		–		26
		–		885		–		–		885
Operating Income		–		66		–		–		66
Interest Expense, Net		29		–		–		–		29
Loss on Derivatives		–		(65)		–		–		(65)
Loss on Early Extinguishment of Debt		–		–		–		–		–
Other Income, Net		–		(1)		–		–		(1)
Equity in Earnings of Subsidiaries		–		–		–		–		–
Income (Loss) Before Income Taxes		(29)		–		–		–		(29)
Provision (Benefit) for Income Taxes		–		–		–		–		–
Net Income (Loss)		(29)		–		–		–		(29)
Mandatory convertible preferred stock dividend		–		–		–		–		–
Participating securities - mandatory convertible preferred stock		–		–		–		–		–
Net Income (Loss) Attributable to Common Stock	$	(29)	$	–	$	–	$	–	$	(29)
Net Income (Loss)	$	(29)	$	–	$	–	$	–	$	(29)
Other comprehensive income		4		–		–		–		4
Comprehensive Income (Loss)	$	(25)	$	–	$	–	$	–	$	(25)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in millions)	Parent		Guarantors		Non-Guarantors		Eliminations		Consolidated
Three months ended September 30, 2017:
Operating Revenues:
Gas sales	$	–	$	394	$	–	$	–	$	394
Oil sales		–		27		–		–		27
NGL sales		–		55		–		–		55
Marketing		–		233		–		–		233
Gas gathering		–		28		–		–		28
Other		–		–		–		–		–
		–		737		–		–		737
Operating Costs and Expenses:
Marketing purchases		–		236		–		–		236
Operating expenses		–		170		–		–		170
General and administrative expenses		–		62		–		–		62
Depreciation, depletion and amortization		–		135		–		–		135
Taxes, other than income taxes		–		24		–		–		24
		–		627		–		–		627
Operating Income		–		110		–		–		110
Interest Expense, Net		31		–		–		–		31
Gain on Derivatives		–		45		–		–		45
Loss on Early Extinguishment of Debt		(59)		–		–		–		(59)
Other Income, Net		–		(2)		–		–		(2)
Equity in Earnings of Subsidiaries		167		–		–		(167)		–
Income (Loss) Before Income Taxes		77		153		–		(167)		63
Provision (Benefit) for Income Taxes		–		(14)		–		–		(14)
Net Income (Loss)	$	77	$	167	$	–	$	(167)	$	77
Mandatory convertible preferred stock dividend		27		–		–		–		27
Participating securities - mandatory convertible preferred stock		7		–		–		–		7
Net Income (Loss) Attributable to Common Stock	$	43	$	167	$	–	$	(167)	$	43
Net Income (Loss)	$	77	$	167	$	–	$	(167)	$	77
Other comprehensive income		1		–		–		–		1
Comprehensive Income (Loss)	$	78	$	167	$	–	$	(167)	$	78

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in millions)	Parent		Guarantors		Non-Guarantors		Eliminations		Consolidated
Nine months ended September 30, 2018:
Operating Revenues:
Gas sales	$	–	$	1,412	$	–	$	–	$	1,412
Oil sales		–		141		–		–		141
NGL sales		–		252		–		–		252
Marketing		–		805		–		–		805
Gas gathering		–		73		–		–		73
Other		–		4		–		–		4
		–		2,687		–		–		2,687
Operating Costs and Expenses:
Marketing purchases		–		808		–		–		808
Operating expenses		–		588		–		–		588
General and administrative expenses		–		165		–		–		165
Restructuring charges		–		20		–		–		20
Depreciation, depletion and amortization		–		436		–		–		436
Impairments		–		161		–		–		161
Taxes, other than income taxes		–		64		–		–		64
		–		2,242		–		–		2,242
Operating Income		–		445		–		–		445
Interest Expense, Net		100		–		–		–		100
Loss on Derivatives		–		(108)		–		–		(108)
Loss on Early Extinguishment of Debt		(8)		–		–		–		(8)
Other Income, Net		–		1		–		–		1
Equity in Earnings of Subsidiaries		338		−		–		(338)		–
Income (Loss) Before Income Taxes		230		338		–		(338)		230
Provision (Benefit) for Income Taxes		–		–		–		–		–
Net Income (Loss)	$	230	$	338	$	–	$	(338)	$	230
Mandatory convertible preferred stock dividend		–		–		–		–		–
Participating securities - mandatory convertible preferred stock		1		–		–		–		1
Net Income (Loss) Attributable to Common Stock	$	229	$	338	$	–	$	(338)	$	229
Net Income (Loss)	$	230	$	338	$	–	$	(338)	$	230
Other comprehensive income		4		–		–		–		4
Comprehensive Income (Loss)	$	234	$	338	$	–	$	(338)	$	234

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in millions)	Parent		Guarantors		Non-Guarantors		Eliminations		Consolidated
Nine months ended September 30, 2017:
Operating Revenues:
Gas sales	$	–	$	1,368	$	–	$	–	$	1,368
Oil sales		–		73		–		–		73
NGL sales		–		132		–		–		132
Marketing		–		736		–		–		736
Gas gathering		–		85		–		–		85
Other		–		–		–		–		–
		–		2,394		–		–		2,394
Operating Costs and Expenses:
Marketing purchases		–		740		–		–		740
Operating expenses		–		481		–		–		481
General and administrative expenses		–		170		–		–		170
Depreciation, depletion and amortization		–		364		–		–		364
Taxes, other than income taxes		–		75		–		–		75
		–		1,830		–		–		1,830
Operating Income		–		564		–		–		564
Interest Expense, Net		97		–		–		–		97
Gain on Derivatives		–		295		–		–		295
Loss on Early Extinguishment of Debt		(70)		–		–		–		(70)
Other Income, Net		–		6		–		–		6
Equity in Earnings of Subsidiaries		879		–		–		(879)		–
Income (Loss) Before Income Taxes		712		865		–		(879)		698
Provision (Benefit) for Income Taxes		–		(14)		–		–		(14)
Net Income (Loss)	$	712	$	879	$	–	$	(879)	$	712
Mandatory convertible preferred stock dividend		81		–		–		–		81
Participating securities - mandatory convertible preferred stock		83		–		–		–		83
Net Income (Loss) Attributable to Common Stock	$	548	$	879	$	–	$	(879)	$	548
Net Income (Loss)	$	712	$	879	$	–	$	(879)	$	712
Other comprehensive income		2		–		–		–		2
Comprehensive Income (Loss)	$	714	$	879	$	–	$	(879)	$	714

Condensed Consolidating Balance Sheets

CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in millions)	Parent		Guarantors		Non-Guarantors		Eliminations		Consolidated
September 30, 2018:
ASSETS
Cash and cash equivalents	$	9	$	–	$	–	$	–	$	9
Accounts receivable, net		–		397		–		–		397
Other current assets		11		134		–		–		145
Current assets held for sale		–		64		–		–		64
Total current assets		20		595		–		–		615
Intercompany receivables		7,966		–		–		(7,966)		–
Natural gas and oil properties, using the full cost method		–		24,825		55		–		24,880
Gathering systems		–		11		27		–		38
Other		204		275		–		–		479
Less: Accumulated depreciation, depletion and amortization		(153)		(19,717)		(58)		–		(19,928)
Total property and equipment, net		51		5,394		24		–		5,469
Investments in subsidiaries (equity method)		–		24		–		(24)		–
Other long-term assets		21		173		–		–		194
Long-term assets held for sale		–		780		–		–		780
TOTAL ASSETS	$	8,058	$	6,966	$	24	$	(7,990)	$	7,058
LIABILITIES AND EQUITY
Accounts payable	$	122	$	441	$	–	$	–	$	563
Other current liabilities		69		144		–		–		213
Current liabilities held for sale		–		116		–		–		116
Total current liabilities		191		701		–		–		892
Intercompany payables		–		7,966		–		(7,966)		–
Long-term debt		3,572		–		–		–		3,572
Pension and other postretirement liabilities		50		–		–		–		50
Other long-term liabilities		10		152		–		–		162
Long-term liabilities held for sale		–		177		–		–		177
Negative carrying amount of subsidiaries, net		2,030		–		–		(2,030)		–
Total long-term liabilities		5,662		329		–		(2,030)		3,961
Commitments and contingencies
Total equity (accumulated deficit)		2,205		(2,030)		24		2,006		2,205
TOTAL LIABILITIES AND EQUITY	$	8,058	$	6,966	$	24	$	(7,990)	$	7,058

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
Nine months ended September 30, 2018:
Net cash provided by (used in) operating activities	$	57	$	1,396	$	–	$	(482)	$	971
Investing activities:
Capital investments		(12)		(996)		–		–		(1,008)
Other		4		9		–		–		13
Net cash used in investing activities		(8)		(987)		–		–		(995)
Financing activities
Intercompany activities		(71)		(411)		–		482		–
Payments on long-term debt		(1,191)		–		–		–		(1,191)
Payments on revolving credit facility		(1,122)		–		–		–		(1,122)
Borrowings under revolving credit facility		1,482		–		–		–		1,482
Purchase of treasury stock		(25)		–		–		–		(25)
Preferred stock dividend		(27)		–		–		–		(27)
Other		–		–		–		–		–
Net cash provided by (used in) financing activities		(954)		(411)		–		482		(883)
Increase (decrease) in cash and cash equivalents		(905)		(2)		–		–		(907)
Cash and cash equivalents at beginning of year		914		2		–		–		916
Cash and cash equivalents at end of period	$	9	$	–	$	–	$	–	$	9
Nine months ended September 30, 2017:
Net cash provided by (used in) operating activities	$	735	$	933	$	–	$	(879)	$	789
Investing activities:
Capital investments		(30)		(909)		(4)		–		(943)
Other		1		21		–		–		22
Net cash used in investing activities		(29)		(888)		(4)		–		(921)
Financing activities
Intercompany activities		(834)		(48)		4		878		–
Payments on short-term debt		(287)		–		–		–		(287)
Payments on long-term debt		(1,139)		–		–		–		(1,139)
Proceeds from issuance of long-term debt		1,150		–		–		–		1,150
Other		(27)		–		–		1		(26)
Net cash provided by (used in) financing activities		(1,137)		(48)		4		879		(302)
Increase (decrease) in cash and cash equivalents		(431)		(3)		–		–		(434)
Cash and cash equivalents at beginning of year		1,416		7		–		–		1,423
Cash and cash equivalents at end of period	$	985	$	4	$	–	$	–	$	989