Segment Information (Tables)

9 Months Ended

Sep. 30, 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 September 30, 2019	(in millions)
Revenues from external customers	$	357		$	279		$	—		$	636
Intersegment revenues	(9)			313			—			304
Depreciation, depletion and amortization expense	123			2			—			125
Impairments	—			2			—			2
Operating loss	(21)		⁽¹⁾	(8)			—			(29)
Interest expense ⁽²⁾	17			—			—			17
Gain on derivatives	100			—			—			100
Gain on extinguishment of debt	—			—			7			7
Other income (loss), net	(4)			—			2			(2)
Provision for income taxes ⁽²⁾	10			—			—			10
Assets	6,099		⁽³⁾	272			227		⁽⁴⁾	6,598
Capital investments⁽⁵⁾	239			—			1			240

Three months ended September 30, 2018
Revenues from external customers	$	639		$	312		$	—		$	951
Intersegment revenues	(6)			600			—			594
Depreciation, depletion and amortization expense	140			11			—			151
Impairments	15			145			1			161
Operating income(loss) ⁽⁶⁾	175		⁽¹⁾	(108)			(1)			66
Interest expense ⁽²⁾	29			—			—			29
Loss on derivatives	(65)			—			—			(65)

Other loss, net	—			(1)			—			(1)

Assets	5,732		⁽³⁾	1,115		⁽⁷⁾	211		⁽⁴⁾	7,058
Capital investments ⁽⁵⁾	295			—			3			298


	E&P			Midstream			Other			Total

Nine months ended September 30, 2019	(in millions)
Revenues from external customers	$	1,288		$	1,005		$	—		$	2,293
Intersegment revenues	(27)			1,154			—			1,127
Depreciation, depletion and amortization expense	345			7			—			352
Impairments	6			2			—			8
Operating income (loss)	219		⁽¹⁾	(13)			—			206
Interest expense⁽²⁾	46			—			—			46
Gain on derivatives	220			—			—			220
Gain on early extinguishment of debt	—			—			7			7
Other income (loss), net	(8)			—			1			(7)
Benefit from income taxes ⁽²⁾	(401)			—			—			(401)
Assets	6,099		⁽³⁾	272			227		⁽⁴⁾	6,598
Capital investments⁽⁵⁾	931			—			2			933

Nine months ended September 30, 2018
Revenues from external customers	$	1,809		$	878		$	—		$	2,687
Intersegment revenues	(19)			1,727			—			1,708
Depreciation, depletion and amortization expense	383			43			—			426
Impairments	15			155		⁽⁸⁾	1			171
Operating income (loss) ⁽⁶⁾	510		⁽¹⁾	(64)		⁽⁹⁾	(1)			445
Interest expense⁽²⁾	100			—			—			100
Loss on derivatives	(108)			—			—			(108)
Loss on early extinguishment of debt	—			—			(8)			(8)
Other income (loss), net	3			(2)			—			1

Assets	5,732		⁽³⁾	1,115		⁽⁷⁾	211		⁽⁴⁾	7,058
Capital investments⁽⁵⁾	1,025			9			5			1,039

(1)Operating income for the E&P segment includes $4 million and $2 million of restructuring charges for the three months ended September 30, 2019 and 2018, respectively, and $9 million and $18 million of restructuring charges for the nine months ended September 30, 2019 and 2018, respectively.

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

(3)E&P assets includes office, technology, water infrastructure, drilling rigs and other ancillary equipment not directly related to natural gas and oil properties. This also includes deferred tax assets which are an allocation of corporate amounts as they are incurred at the corporate level. At September 30, 2018, E&P assets included $106 million of assets held for sale.

(4)Other assets represent corporate assets not allocated to segments and assets for non-reportable segments. At September 30, 2019 and 2018, other assets included approximately $29 million and $9 million, respectively, in cash and cash equivalents, $61 million and $89 million, respectively, in income taxes receivable, $31 million and $69 million, respectively, in property, plant and equipment, $9 million and $12 million, respectively, in unamortized debt expense, $7 million and $12 million, respectively, in prepayments and $7 million and $8 million, respectively, in a non-qualified retirement plan. Additionally, the September 30, 2019 asset balance includes $84 million in right-of-use lease assets.

(5)Capital investments include decreases of $53 million and $31 million for the three months ended September 30, 2019 and 2018, respectively, and increases of $52 million and $21 million for the nine months ended September 30, 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)Midstream assets includes $738 million of assets held for sale at September 30, 2018.

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

(9)Operating loss for the Midstream segment includes a $10 million impairment related to certain non-core gathering assets and $2 million related to restructuring charges for the nine months ended September 30, 2018.