Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2019

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)



(in millions)	Parent		Guarantors			Non-Guarantors		Eliminations			Consolidated
Three months ended March 31, 2019
Operating Revenues:
Gas sales	$	—	$	430		$	—	$	—		$	430
Oil sales	—		39			—		—			39
NGL sales	—		81			—		—			81
Marketing	—		438			—		—			438
Other	—		2			—		—			2
	—		990			—		—			990
Operating Costs and Expenses:
Marketing purchases	—		441			—		—			441
Operating expenses	—		165			—		—			165
General and administrative expenses	—		37			—		—			37
Restructuring charges	—		3			—		—			3
Depreciation, depletion and amortization	—		112			—		—			112
Taxes, other than income taxes	—		19			—		—			19
	—		777			—		—			777
Operating Income	—		213			—		—			213
Interest Expense, Net	14		—			—		—			14
Loss on Derivatives	—		(32		)	—		—			(32		)
Other Income, Net	—		1			—		—			1
Equity in Earnings of Subsidiaries	608		—			—		(608		)	—

Income (Loss) Before Income Taxes	594		182			—		(608		)	168
Benefit from Income Taxes	—		(426		)	—		—			(426		)
Net Income (Loss)	594		608			—		(608		)	594

Net Income (Loss)	$	594	$	608		$	—	$	(608	)	$	594
Other comprehensive income	—		—			—		—			—
Comprehensive Income (Loss)	$	594	$	608		$	—	$	(608	)	$	594

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)



(in millions)	Parent		Guarantors			Non-Guarantors		Eliminations			Consolidated
Three months ended March 31, 2018
Operating Revenues:
Gas sales	$	—	$	540		$	—	$	—		$	540
Oil sales	—		35			—		—			35
NGL sales	—		65			—		—			65
Marketing	—		253			—		—			253
Gas gathering	—		24			—		—			24
Other	—		3			—		—			3
	—		920			—		—			920
Operating Costs and Expenses:
Marketing purchases	—		255			—		—			255
Operating expenses	—		189			—		—			189
General and administrative expenses	—		55			—		—			55
Depreciation, depletion and amortization	—		143			—		—			143
Taxes, other than income taxes	—		23			—		—			23
	—		665			—		—			665
Operating Income	—		255			—		—			255
Interest Expense, Net	39		—			—		—			39
Loss on Derivatives	—		(7		)	—		—			(7		)
Other Loss, Net	—		(1		)	—		—			(1		)
Equity in Earnings of Subsidiaries	247		—			—		(247		)	—

Income (Loss) Before Income Taxes	208		247			—		(247		)	208
Provision (Benefit) for Income Taxes	—		—			—		—			—
Net Income (Loss)	$	208	$	247		$	—	$	(247	)	$	208
Participating securities - mandatory convertible preferred stock	3		—			—		—			3
Net Income (Loss) Attributable to Common Stock	$	205	$	247		$	—	$	(247	)	$	205

Net Income (Loss)	$	208	$	247		$	—	$	(247	)	$	208
Other comprehensive income	—		—			—		—			—
Comprehensive Income (Loss)	$	208	$	247		$	—	$	(247	)	$	208

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)



(in millions)	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
March 31, 2019 :
ASSETS
Cash and cash equivalents	$	366		$	—		$	—		$	—		$	366
Accounts receivable, net	—			390			—			—			390
Other current assets	11			120			—			—			131
Total current assets	377			510			—			—			887

Intercompany receivables	7,744			—			—			(7,744		)	—

Natural gas and oil properties, using the full cost method	—			24,433			53			—			24,486
Gathering systems	—			11			27			—			38
Other	197			312			—			—			509
Less: Accumulated depreciation, depletion and amortization	(159		)	(19,947		)	(56		)	—			(20,162		)
Total property and equipment, net	38			4,809			24			—			4,871

Investments in subsidiaries (equity method)	—			23			—			(23		)	—
Other long-term assets	42			646			—			—			688
TOTAL ASSETS	$	8,201		$	5,988		$	24		$	(7,767	)	$	6,446

LIABILITIES AND EQUITY
Accounts payable	$	124		$	502		$	—		$	—		$	626
Other current liabilities	189			128			—			—			317
Total current liabilities	313			630			—			—			943

Intercompany payables	—			7,743			1			(7,744		)	—

Long-term debt	2,267			—			—			—			2,267
Pension and other postretirement liabilities	43			—			—			—			43
Other long-term liabilities	47			209			—			—			256
Negative carrying amount of subsidiaries, net	2,594			—			—			(2,594		)	—
Total long-term liabilities	4,951			209			—			(2,594		)	2,566
Commitments and contingencies
Total equity (accumulated deficit)	2,937			(2,594		)	23			2,571			2,937
TOTAL LIABILITIES AND EQUITY	$	8,201		$	5,988		$	24		$	(7,767	)	$	6,446

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)



(in millions)	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
December 31, 2018
ASSETS
Cash and cash equivalents	$	201		$	—		$	—		$	—		$	201
Accounts receivable, net	4			577			—			—			581
Other current assets	8			166			—			—			174
Total current assets	213			743			—			—			956

Intercompany receivables	7,932			—			—			(7,932		)	—

Natural gas and oil properties, using the full cost method	—			24,128			52			—			24,180
Gathering systems	—			11			27			—			38
Other	197			290			—			—			487
Less: Accumulated depreciation, depletion and amortization	(154		)	(19,840		)	(55		)	—			(20,049		)
Total property and equipment, net	43			4,589			24			—			4,656

Investments in subsidiaries (equity method)	—			24			—			(24		)	—
Other long-term assets	19			166			—			—			185
TOTAL ASSETS	$	8,207		$	5,522		$	24		$	(7,956	)	$	5,797

LIABILITIES AND EQUITY
Accounts payable	$	113		$	496		$	—		$	—		$	609
Other current liabilities	115			122			—			—			237
Total current liabilities	228			618			—			—			846

Intercompany payables	—			7,932			—			(7,932		)	—

Long-term debt	2,318			—			—			—			2,318
Pension and other postretirement liabilities	46			—			—			—			46
Other long-term liabilities	54			171			—			—			225
Negative carrying amount of subsidiaries, net	3,199			—			—			(3,199		)	—
Total long-term liabilities	5,617			171			—			(3,199		)	2,589
Commitments and contingencies
Total equity (accumulated deficit)	2,362			(3,199		)	24			3,175			2,362
TOTAL LIABILITIES AND EQUITY	$	8,207		$	5,522		$	24		$	(7,956	)	$	5,797

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)



(in millions)	Parent			Guarantors			Non-Guarantors		Eliminations			Consolidated
Three months ended March 31, 2019
Net cash provided by (used in) operating activities	$	1,031		$	19		$	—	$	(608	)	$	442
Investing activities:
Capital investments	3			(261		)	—		—			(258		)
Other	—			—			—		—			—
Net cash used in investing activities	3			(261		)	—		—			(258		)
Financing activities
Intercompany activities	(850		)	242			—		608			—
Change in bank drafts outstanding	3			—			—		—			3
Purchase of treasury stock	(21		)	—			—		—			(21		)
Cash paid for tax withholding	(1		)	—			—		—			(1		)
Net cash provided by (used in) financing activities	(869		)	242			—		608			(19		)
Increase in cash and cash equivalents	165			—			—		—			165
Cash and cash equivalents at beginning of year	201			—			—		—			201
Cash and cash equivalents at end of period	$	366		$	—		$	—	$	—		$	366

Three months ended March 31, 2018
Net cash provided by (used in) operating activities	$	183		$	428		$	—	$	(247	)	$	364
Investing activities:
Capital investments	(5		)	(297		)	—		—			(302		)
Other	—			8			—		—			8
Net cash used in investing activities	(5		)	(289		)	—		—			(294		)
Financing activities
Intercompany activities	(116		)	(131		)	—		247			—
Preferred stock dividend	(27		)	—			—		—			(27		)
Cash paid for tax withholding	(1		)	—			—		—			(1		)
Net cash provided by (used in) financing activities	(144		)	(131		)	—		247			(28		)
Increase in cash and cash equivalents	34			8			—		—			42
Cash and cash equivalents at beginning of year	914			2			—		—			916
Cash and cash equivalents at end of period	$	948		$	10		$	—	$	—		$	958