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Supplemental Oil and Gas Disclosures (Tables)

12 Months Ended

Dec. 31, 2019

Oil and Gas Exploration and Production Industries Disclosures [Line Items]

Capitalized Costs Relating to Oil and Gas Producing Activities Disclosure

The following table shows the capitalized costs of natural gas and oil properties and the related accumulated depreciation, depletion and amortization as of December 31, 2019 and 2018:


(in millions)	2019		2018
Proved properties	$	23,744	$	22,425
Unproved properties	1,506		1,755
Total capitalized costs	25,250		24,180
Less: Accumulated depreciation, depletion and amortization	(20,203)		(19,761)
Net capitalized costs	$	5,047	$	4,419

Composition of Net Unevaluated Costs Excluded from Amortization

The table below sets forth the composition of net unevaluated costs excluded from amortization as of December 31, 2019:


(in millions)	2019		2018		2017		Prior		Total
Property acquisition costs	$	45	$	40	$	32	$	1,106	$	1,223
Exploration and development costs	53		23		16		12		104
Capitalized interest	67		47		27		38		179
	$	165	$	110	$	75	$	1,156	$	1,506

Cost Incurred in Oil and Gas Property Acquisition, Exploration, and Development Activities Disclosure

The table below sets forth capitalized costs incurred in natural gas and oil property acquisition, exploration and development activities:


(in millions, except per Mcfe amounts)	2019		2018		2017
Unproved property acquisition costs	$	162	$	164	$	194
Exploration costs	2		5		22
Development costs	936		1,014		1,024
Capitalized costs incurred	$	1,100	$	1,183	$	1,240
Full cost pool amortization per Mcfe	$	0.56	$	0.51	$	0.45

Results of Operations for Oil and Gas Producing Activities Disclosure

The table below sets forth the results of operations from natural gas and oil producing activities:

໿


(in millions)	2019		2018		2017
Sales	$	1,703	$	2,525	$	2,086
Production (lifting) costs	(781)		(974)		(891)
Depreciation, depletion and amortization	(462)		(514)		(440)

	460		1,037		755
Provision for income taxes ⁽¹⁾	110		—		—
Results of operations ⁽²⁾	$	350	$	1,037	$	755

(1)Prior to the recognition of a valuation allowance, in 2018 and 2017 the Company recognized income tax provisions of $254 million and $287 million, respectively.

(2)Results of operations exclude the gain (loss) on unsettled commodity derivative instruments. See Note 6.

Summary of Changes in Reserves

The following table summarizes the changes in the Company’s proved natural gas, oil and NGL reserves for 2019, 2018 and 2017, all of which were located in the United States:໿


	Natural Gas (Bcf)	Oil (MBbls)	NGL (MBbls)	Total (Bcfe)
December 31, 2016	4,866	10,523	53,931	5,253
Revisions of previous estimates due to price	1,327	3,197	57,447	1,691
Revisions of previous estimates other than price	571	(1,529)	13,102	641
Extensions, discoveries and other additions ⁽¹⁾	5,159	55,772	432,220	8,087
Production	(797)	(2,327)	(14,245)	(897)
Acquisition of reserves in place	—	—	—	—
Disposition of reserves in place	—	—	—	—
December 31, 2017	11,126	65,636	542,455	14,775
Revisions of previous estimates due to price	96	788	8,912	154
Revisions of previous estimates other than price	316	410	8,855	372
Extensions, discoveries and other additions	753	5,830	36,823	1,009
Production	(807)	(3,407)	(19,706)	(946)
Acquisition of reserves in place	—	—	—	—
Disposition of reserves in place ⁽²⁾	(3,440)	(250)	(276)	(3,443)
December 31, 2018	8,044	69,007	577,063	11,921
Revisions of previous estimates due to price	(480)	(2,041)	(37,492)	(717)
Revisions of previous estimates other than price⁽³⁾	685	3,707	65,869	1,102
Extensions, discoveries and other additions	992	6,948	26,941	1,195
Production	(609)	(4,696)	(23,620)	(778)
Acquisition of reserves in place	—	—	—	—
Disposition of reserves in place	(2)	—	—	(2)
December 31, 2019	8,630	72,925	608,761	12,721

(1)The 2017 PUD additions are primarily associated with the increase in commodity prices.

(2)The 2018 disposition is primarily associated with the Fayetteville Shale sale.

(3)Revisions of previous estimates other than price includes 109 Bcfe of proved undeveloped reserves reclassified to unproved due to changes in the drilling plan, in accordance with the SEC five-year rule.


	Natural Gas (Bcf)	Oil (MBbls)	NGL (MBbls)	Total (Bcfe)
Proved developed reserves as of:
December 31, 2017	6,979	14,513	142,213	7,920
December 31, 2018	4,395	18,037	175,480	5,557
December 31, 2019	4,906	26,124	226,271	6,421
Proved undeveloped reserves as of:
December 31, 2017	4,147	51,123	400,242	6,855
December 31, 2018	3,649	50,970	401,583	6,364
December 31, 2019	3,724	46,801	382,490	6,300

The following table summarizes the changes in reserves for 2017, 2018 and 2019:໿


	Appalachia			Fayetteville
(in Bcfe)	Northeast	Southwest	Shale ⁽¹⁾	Other ⁽²⁾	Total
December 31, 2016	1,574	677	2,997	5	5,253
Net revisions
Price revisions	903	738	49	1	1,691
Performance and production revisions	154	125	358	4	641
Total net revisions	1,057	863	407	5	2,332
Extensions, discoveries and other additions
Proved developed	790	419	48	1	1,258
Proved undeveloped	1,100	5,186	543	—	6,829
Total reserve additions	1,890	5,605	591	1	8,087
Production	(395)	(183)	(316)	(3)	(897)
Acquisition of reserves in place	—	—	—	—	—
Disposition of reserves in place	—	—	—	—	—
December 31, 2017	4,126	6,962	3,679	8	14,775
Net revisions
Price revisions	41	106	6	1	154
Performance and production revisions	107	272	(6)	(1)	372
Total net revisions	148	378	—	—	526
Extensions, discoveries and other additions
Proved developed	154	22	1	—	177
Proved undeveloped	397	435	—	—	832
Total reserve additions	551	457	1	—	1,009
Production	(459)	(243)	(243)	(1)	(946)
Acquisition of reserves in place	—	—	—	—	—
Disposition of reserves in place	—	—	(3,437)	(6)	(3,443)
December 31, 2018	4,366	7,554	—	1	11,921
Net revisions
Price revisions	(57)	(660)	—	—	(717)
Performance and production revisions⁽³⁾	127	975	—	—	1,102
Total net revisions	70	315	—	—	385
Extensions, discoveries and other additions
Proved developed	185	6	—	—	191
Proved undeveloped	677	327	—	—	1,004
Total reserve additions	862	333	—	—	1,195
Production	(459)	(319)	—	—	(778)
Acquisition of reserves in place	—	—	—	—	—
Disposition of reserves in place	(2)	—	—	—	(2)
December 31, 2019	4,837	7,883	—	1	12,721

(1)The Fayetteville Shale E&P assets and associated reserves were divested in December 2018.

(2)Other includes properties outside of Appalachia and Fayetteville Shale.

(3)Performance and production revisions includes 109 Bcfe of proved undeveloped reserves reclassified to unproved due to changes in the drilling plan, in accordance with the SEC five-year rule.

Standardized Measure of Discounted Future Cash Flows Relating to Proved Reserves Disclosure

The following standardized measures of discounted future net cash flows relating to proved natural gas, oil and NGL reserves as of December 31, 2019, 2018 and 2017 are calculated after income taxes, discounted using a 10% annual discount rate and do not purport to present the fair market value of the Company’s proved gas, oil and NGL reserves:


(in millions)	2019		2018		2017
Future cash inflows	$	27,003	$	34,523	$	36,576
Future production costs	(14,981)		(15,347)		(18,390)
Future development costs ⁽¹⁾	(3,246)		(4,095)		(4,676)
Future income tax expense	(476)		(2,079)		(1,342)
Future net cash flows	8,300		13,002		12,168
10% annual discount for estimated timing of cash flows	(4,600)		(7,003)		(6,606)
Standardized measure of discounted future net cash flows	$	3,700	$	5,999	$	5,562

(1)Includes abandonment costs.

Schedule of Prices used for Standardized Measure of Discounted Future Cash Flows Relating to Proved Reserves Disclosure

Prices used for the standardized measure above were as follows:


(in millions)	2019		2018		2017
Natural gas (per MMBtu)	$	2.58	$	3.10	$	2.98
Oil (per Bbl)	55.69		65.56		47.79
NGLs (per Bbl)	11.58		17.64		14.41

Schedule of Analysis of Changes in Standardized Measure

Following is an analysis of changes in the standardized measure during 2019, 2018 and 2017:


(in millions)	2019		2018		2017
Standardized measure, beginning of year	$	5,999	$	5,562	$	1,665
Sales and transfers of natural gas and oil produced, net of production costs	(923)		(1,564)		(1,191)
Net changes in prices and production costs	(3,510)		2,162		1,963
Extensions, discoveries, and other additions, net of future production and development costs	234		335		1,715
Acquisition of reserves in place	—		—		—
Sales of reserves in place	(2)		(2,022)		—
Revisions of previous quantity estimates	152		361		1,721
Net change in income taxes	491		(304)		(222)
Changes in estimated future development costs	621		(166)		(6)
Previously estimated development costs incurred during the year	704		536		55
Changes in production rates (timing) and other	(718)		521		(304)
Accretion of discount	652		578		166
Standardized measure, end of year	$	3,700	$	5,999	$	5,562

- Definition

Tabular disclosure of the net quantities of an enterprise's interests in proved developed and undeveloped reserves of (a) crude oil (including condensate and natural gas liquids), (b) natural gas (including coal bed methane), (c) synthetic oil, (d) synthetic gas, and (e) other nonrenewable natural resources that are intended to be upgraded during the period as of the beginning of the period, changes in quantities during the period, and as of the end of the period.

+ References + Details

- Definition

Tabular disclosure of the future net cash flows relating to proved oil and gas reserves and oil and gas subject to purchase under long-term agreements in which the enterprise participates in the operation of the properties on which the oil and gas is located or otherwise serves as the producer. This information is presented in aggregate and for each geographic area for which reserve quantities are disclosed.

+ References + Details