Segment Information Supplemental Cash Flow Information (Tables)

6 Months Ended

Jun. 30, 2019

Reconciliation of Consolidated Adjusted EBITDAX to Income (Loss) Before Income Taxes

Below is a reconciliation of consolidated Adjusted EBITDAX to income (loss) before income taxes:



	Three Months Ended						Six Months Ended
	June 30,						June 30,
millions	2019			2018			2019			2018
Income (loss) before income taxes	$	(736	)	$	142		$	(474	)	$	442
Interest expense	249			237			502			465
DD&A	1,161			1,003			2,242			1,993
Exploration expense	90			94			139			262
(Gains) losses on divestitures, net	(6		)	(52		)	(1		)	(28		)
Impairments	—			128			—			147
Total (gains) losses on derivatives, net, less net cash from settlement of commodity derivatives	255			267			571			240
Reorganization-related charges	15			—			33			—
Merger transaction costs	1,042			—			1,042			—
Less net income (loss) attributable to noncontrolling interests	80			(12		)	191			41
Consolidated Adjusted EBITDAX	$	1,990		$	1,831		$	3,863		$	3,480

Schedule of Segment Reporting Information, by Segment

The following summarizes selected financial information for Anadarko’s reporting segments:



millions	Exploration & Production				WES Midstream				Other and Intersegment Eliminations				Total
Three Months Ended June 30, 2019
Sales revenues		$	2,852			$	492			$	12		$	3,356
Intersegment revenues		40				193				(233		)	—
Other		(4		)		70				14			80
Total revenues and other ⁽¹⁾		2,888				755				(207		)	3,436
Operating costs and expenses ⁽²⁾		987				381				(4		)	1,364
Net cash from settlement of commodity derivatives		—				—				—			—
Other (income) expense, net ⁽³⁾		—				(59		)		62			3
Net income (loss) attributable to noncontrolling interests		—				—				80			80
Total expenses and other		987				322				138			1,447
Total (gains) losses on derivatives, net included in marketing revenue, less net cash from settlement		—				—				1			1
Adjusted EBITDAX		$	1,901			$	433			$	(344	)	$	1,990

Three Months Ended June 30, 2018
Sales revenues		$	2,772			$	358			$	38		$	3,168
Intersegment revenues		14				160				(174		)	—
Other		3				39				29			71
Total revenues and other ⁽¹⁾		2,789				557				(107		)	3,239
Operating costs and expenses ⁽²⁾		900				246				101			1,247
Net cash from settlement of commodity derivatives		—				—				170			170
Other (income) expense, net ⁽³⁾		—				—				4			4
Net income (loss) attributable to noncontrolling interests		—				—				(12		)	(12		)
Total expenses and other		900				246				263			1,409
Total (gains) losses on derivatives, net included in marketing revenue, less net cash from settlement		—				—				1			1
Adjusted EBITDAX		$	1,889			$	311			$	(369	)	$	1,831


⁽¹⁾	Total revenues and other excludes gains (losses) on divestitures, net since these gains and losses are excluded from Adjusted EBITDAX.


⁽²⁾	Operating costs and expenses excludes exploration expense, DD&A, impairments, reorganization-related charges, and certain other operating expenses since these expenses are excluded from Adjusted EBITDAX.


⁽³⁾	Other (income) expense, net excludes reorganization-related charges since these expenses are excluded from Adjusted EBITDAX.

19. Segment Information (Continued)



millions	Exploration & Production				WES Midstream				Other and Intersegment Eliminations				Total
Six Months Ended June 30, 2019
Sales revenues		$	5,458			$	992			$	32		$	6,482
Intersegment revenues		91				365				(456		)	—
Other		4				132				41			177
Total revenues and other ⁽¹⁾		5,553				1,489				(383		)	6,659
Operating costs and expenses ⁽²⁾		1,979				723				(98		)	2,604
Net cash from settlement of commodity derivatives		—				—				(6		)	(6		)
Other (income) expense, net ⁽³⁾		—				(95		)		100			5
Net income (loss) attributable to noncontrolling interests		—				—				191			191
Total expenses and other		1,979				628				187			2,794
Total (gains) losses on derivatives, net included in marketing revenue, less net cash from settlement		—				—				(2		)	(2		)
Adjusted EBITDAX		$	3,574			$	861			$	(572	)	$	3,863

Six Months Ended June 30, 2018
Sales revenues		$	5,428			$	706			$	60		$	6,194
Intersegment revenues		24				313				(337		)	—
Other		(6		)		80				40			114
Total revenues and other ⁽¹⁾		5,446				1,099				(237		)	6,308
Operating costs and expenses ⁽²⁾		1,770				476				318			2,564
Net cash from settlement of commodity derivatives		—				—				238			238
Other (income) expense, net		—				—				(8		)	(8		)
Net income (loss) attributable to noncontrolling interests		—				—				41			41
Total expenses and other		1,770				476				589			2,835
Total (gains) losses on derivatives, net included in marketing revenue, less net cash from settlement		—				—				7			7
Adjusted EBITDAX		$	3,676			$	623			$	(819	)	$	3,480


⁽¹⁾	Total revenues and other excludes gains (losses) on divestitures, net since these gains and losses are excluded from Adjusted EBITDAX.


⁽²⁾	Operating costs and expenses excludes exploration expense, DD&A, impairments, reorganization-related charges, and certain other operating expenses since these expenses are excluded from Adjusted EBITDAX.


⁽³⁾	Other (income) expense, net excludes reorganization-related charges since these expenses are excluded from Adjusted EBITDAX.

19. Segment Information (Continued)

The following summarizes selected financial information for Anadarko’s reporting segments:



millions	Exploration & Production			WES Midstream			Other and Intersegment Eliminations			Total
June 30, 2019
Net properties and equipment		$	18,306		$	8,794		$	1,991		$	29,091
Capital expenditures ⁽¹⁾		$	1,879		$	571		$	103		$	2,553
Goodwill		$	4,343		$	446		$	—		$	4,789

December 31, 2018
Net properties and equipment		$	18,276		$	8,410		$	1,929		$	28,615
Capital expenditures ⁽¹⁾		$	4,103		$	1,912		$	170		$	6,185
Goodwill		$	4,343		$	446		$	—		$	4,789

⁽¹⁾

WES Midstream includes $49 million at June 30, 2019, and $734 million at December 31, 2018, of capitalized costs incurred by Anadarko prior to the contribution and sale of midstream assets to WES.