Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2019

Condensed Financial Information Disclosure [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, 2019
Operating Revenues:
Gas sales	$	—	$	275		$	—	$	—		$	275
Oil sales	—		47			—		—			47
NGL sales	—		58			—		—			58
Marketing	—		287			—		—			287
	—		667			—		—			667
Operating Costs and Expenses:
Marketing purchases	—		293			—		—			293
Operating expenses	—		169			—		—			169
General and administrative expenses	—		40			—		—			40
Loss on sale of operating assets	—		3			—		—			3
Restructuring charges	—		2			—		—			2
Depreciation, depletion and amortization	—		121			—		—			121
Taxes, other than income taxes	—		17			—		—			17
	—		645			—		—			645
Operating Income	—		22			—		—			22
Interest Expense, Net	15		—			—		—			15
Gain on Derivatives	—		152			—		—			152
Other Loss, Net	—		(6		)	—		—			(6		)
Equity in Earnings of Subsidiaries	153		—			—		(153		)	—
Income (Loss) Before Income Taxes	138		168			—		(153		)	153
Provision for Income Taxes	—		15			—		—			15
Net Income (Loss)	$	138	$	153		$	—	$	(153	)	$	138
Net Income (Loss)	$	138	$	153		$	—	$	(153	)	$	138
Other Comprehensive Income	4		—			—		—			4
Comprehensive Income (Loss)	$	142	$	153		$	—	$	(153	)	$	142

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 for Income Taxes	—			—			—		—			—
Net Income (Loss)	$	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
Six months ended June 30, 2019
Operating Revenues:
Gas sales	$	—	$	705		$	—	$	—		$	705
Oil sales	—		86			—		—			86
NGL sales	—		139			—		—			139
Marketing	—		725			—		—			725
Other	—		2			—		—			2
	—		1,657			—		—			1,657
Operating Costs and Expenses:
Marketing purchases	—		734			—		—			734
Operating expenses	—		334			—		—			334
General and administrative expenses	—		77			—		—			77
Loss on sale of operating assets	—		3			—		—			3
Restructuring charges	—		5			—		—			5
Depreciation, depletion and amortization	—		233			—		—			233
Taxes, other than income taxes	—		36			—		—			36
	—		1,422			—		—			1,422
Operating Income	—		235			—		—			235
Interest Expense, Net	29		—			—		—			29
Gain on Derivatives	—		120			—		—			120
Other Loss, Net	—		(5		)	—		—			(5		)
Equity in Earnings of Subsidiaries	761		—			—		(761		)	—
Income (Loss) Before Income Taxes	732		350			—		(761		)	321
Benefit from Income Taxes	—		(411		)	—		—			(411		)
Net Income (Loss)	$	732	$	761		$	—	$	(761	)	$	732
Net Income (Loss)	$	732	$	761		$	—	$	(761	)	$	732
Other Comprehensive Income	4		—			—		—			4
Comprehensive Income (Loss)	$	736	$	761		$	—	$	(761	)	$	736

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 for Income Taxes	—			—			—		—			—
Net Income (Loss)	$	259		$	338		$	—	$	(338	)	$	259
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 Consolidating Balance Sheets

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in millions)	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
June 30, 2019
ASSETS
Cash and cash equivalents	$	155		$	—		$	—		$	—		$	155
Accounts receivable, net	—			358			—			—			358
Other current assets	5			246			—			—			251
Total current assets	160			604			—			—			764
Intercompany receivables	7,894			—			—			(7,894		)	—
Natural gas and oil properties, using the full cost method	—			24,769			54			—			24,823
Other	196			330			29			—			555
Less: Accumulated depreciation, depletion and amortization	(162		)	(20,059		)	(58		)	—			(20,279		)
Total property and equipment, net	34			5,040			25			—			5,099
Investments in subsidiaries (equity method)	—			23			—			(23		)	—
Other long-term assets	45			637			—			—			682
TOTAL ASSETS	$	8,133		$	6,304		$	25		$	(7,917	)	$	6,545
LIABILITIES AND EQUITY
Accounts payable	$	72		$	513		$	—		$	—		$	585
Other current liabilities	193			134			—			—			327
Total current liabilities	265			647			—			—			912
Intercompany payables	—			7,892			2			(7,894		)	—
Long-term debt	2,267			—			—			—			2,267
Pension and other postretirement liabilities	39			—			—			—			39
Other long-term liabilities	39			206			—			—			245
Negative carrying amount of subsidiaries, net	2,441			—			—			(2,441		)	—
Total long-term liabilities	4,786			206			—			(2,441		)	2,551
Commitments and contingencies
Total equity (accumulated deficit)	3,082			(2,441		)	23			2,418			3,082
TOTAL LIABILITIES AND EQUITY	$	8,133		$	6,304		$	25		$	(7,917	)	$	6,545

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
Other	197			301			27			—			525
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 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, 2019
Net cash provided by (used in) operating activities	$	1,124		$	179		$	—		$	(760	)	$	543
Investing activities:
Capital investments	(1		)	(584		)	(1		)	—			(586		)
Proceeds from sale	—			26			—			—			26
Net cash used in investing activities	(1		)	(558		)	(1		)	—			(560		)
Financing activities:
Intercompany activities	(1,140		)	379			1			760			—
Change in bank drafts outstanding	(7		)	—			—			—			(7		)
Purchase of treasury stock	(21		)	—			—			—			(21		)
Cash paid for tax withholding	(1		)	—			—			—			(1		)
Net cash provided by (used in) financing activities	(1,169		)	379			1			760			(29		)
Decrease in cash and cash equivalents	(46		)	—			—			—			(46		)
Cash and cash equivalents at beginning of year	201			—			—			—			201
Cash and cash equivalents at end of period	$	155		$	—		$	—		$	—		$	155
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