Segment Information (Tables)

3 Months Ended

Mar. 31, 2019

Summary of Financial Information for Company's Reportable Segments

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 2018 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, 2019	(in millions)
Revenues from external customers	$	551			$	439			$	—		$	990
Intersegment revenues	(9		)		502				—			493
Depreciation, depletion and amortization expense	110				2				—			112
Operating income	210			⁽¹⁾	3				—			213
Interest expense ⁽²⁾	14				—				—			14
Loss on derivatives	(32		)		—				—			(32		)
Other income, net	1				—				—			1
Benefit from income taxes ⁽²⁾	(426		)		—				—			(426		)
Assets	5,562			⁽³⁾	342				542		⁽⁴⁾	6,446
Capital investments⁽⁵⁾	325				—				—			325

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


(1)	Operating income for the E&P segment includes $3 million of restructuring charges for the three months ended March 31, 2019.


(2)	Interest expense and the benefit from income taxes by segment is an allocation of corporate amounts as they are incurred at the corporate level.


(3)	Includes office, technology, water infrastructure, drilling rigs and other ancillary equipment not directly related to natural gas and oil properties. Also includes deferred tax assets which are an allocation of corporate amounts as they are incurred at the corporate level.


(4)	Other assets represent corporate assets not allocated to segments and assets for non-reportable segments. At March 31, 2019 and 2018, other assets included approximately $366 million and $958 million, respectively, in cash and cash equivalents.


(5)	Capital investments include increases of $66 million and $33 million for the three months ended March 31, 2019 and 2018, respectively, relating to the change in accrued expenditures between years.


(6)	Includes the impact of Fayetteville Shale-related E&P and Midstream operations which were divested on December 3, 2018.


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