Oklahoma | 73-1395733 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
6100 North Western Avenue, Oklahoma City, Oklahoma | 73118 | |
(Address of principal executive offices) | (Zip Code) | |
(405) 848-8000 | ||
(Registrant’s telephone number, including area code) |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES [X] NO [ ] | ||||
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). YES [X] NO [ ] | ||||
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and “emerging growth company” in Rule 12b-2 of the Exchange Act. | ||||
Large Accelerated Filer [X] Accelerated Filer [ ] Non-accelerated Filer [ ] Smaller Reporting Company [ ] Emerging Growth Company [ ] | ||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ] | ||||
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES [ ] NO [X] |
Securities Registered Pursuant to Section 12(b) of the Act: | ||||
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||
Common Stock, par value $0.01 | CHK | New York Stock Exchange | ||
6.625% Senior Notes due 2020 | CHK20A | New York Stock Exchange | ||
6.875% Senior Notes due 2020 | CHK20 | New York Stock Exchange | ||
6.125% Senior Notes due 2021 | CHK21 | New York Stock Exchange | ||
5.375% Senior Notes due 2021 | CHK21A | New York Stock Exchange | ||
4.875% Senior Notes due 2022 | CHK22 | New York Stock Exchange | ||
5.75% Senior Notes due 2023 | CHK23 | New York Stock Exchange | ||
4.5% Cumulative Convertible Preferred Stock | CHK Pr D | New York Stock Exchange | ||
PART I. FINANCIAL INFORMATION | Page | |||
Item 1. | ||||
Condensed Consolidated Balance Sheets as of March 31, 2019 and December 31, 2018 | ||||
for the Three Months Ended March 31, 2019 and 2018 | ||||
for the Three Months Ended March 31, 2019 and 2018 | ||||
for the Three Months Ended March 31, 2019 and 2018 | ||||
for the Three Months Ended March 31, 2019 and 2018 | ||||
Item 2. | ||||
Item 3. | ||||
Item 4. | ||||
PART II. OTHER INFORMATION | ||||
Item 1. | ||||
Item 1A. | ||||
Item 2. | ||||
Item 3. | ||||
Item 4. | ||||
Item 5. | ||||
Item 6. | ||||
ITEM 1. | Condensed Consolidated Financial Statements |
March 31, 2019 | December 31, 2018 | |||||||
($ in millions) | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents ($1 and $1 attributable to our VIE) | $ | 8 | $ | 4 | ||||
Accounts receivable, net | 1,196 | 1,247 | ||||||
Short-term derivative assets | 25 | 209 | ||||||
Other current assets | 136 | 138 | ||||||
Total Current Assets | 1,365 | 1,598 | ||||||
PROPERTY AND EQUIPMENT: | ||||||||
Oil and natural gas properties, at cost based on successful efforts accounting: | ||||||||
Proved oil and natural gas properties ($755 and $755 attributable to our VIE) | 29,259 | 25,407 | ||||||
Unproved properties | 2,262 | 1,561 | ||||||
Other property and equipment | 1,798 | 1,721 | ||||||
Total Property and Equipment, at Cost | 33,319 | 28,689 | ||||||
Less: accumulated depreciation, depletion and amortization (($708) and ($707) attributable to our VIE) | (18,396 | ) | (17,886 | ) | ||||
Property and equipment held for sale, net | 16 | 15 | ||||||
Total Property and Equipment, Net | 14,939 | 10,818 | ||||||
LONG-TERM ASSETS: | ||||||||
Long-term derivative assets | 48 | 76 | ||||||
Other long-term assets | 285 | 243 | ||||||
TOTAL ASSETS | $ | 16,637 | $ | 12,735 | ||||
March 31, 2019 | December 31, 2018 | |||||||
($ in millions) | ||||||||
CURRENT LIABILITIES: | ||||||||
Accounts payable | $ | 751 | $ | 763 | ||||
Current maturities of long-term debt, net | 380 | 381 | ||||||
Accrued interest | 147 | 141 | ||||||
Short-term derivative liabilities | 61 | 3 | ||||||
Other current liabilities ($1 and $2 attributable to our VIE) | 1,591 | 1,599 | ||||||
Total Current Liabilities | 2,930 | 2,887 | ||||||
LONG-TERM LIABILITIES: | ||||||||
Long-term debt, net | 9,167 | 7,341 | ||||||
Long-term derivative liabilities | 15 | — | ||||||
Asset retirement obligations, net of current portion | 177 | 155 | ||||||
Other long-term liabilities | 210 | 219 | ||||||
Total Long-Term Liabilities | 9,569 | 7,715 | ||||||
CONTINGENCIES AND COMMITMENTS (Note 7) | ||||||||
EQUITY: | ||||||||
Chesapeake Stockholders’ Equity (Deficit): | ||||||||
Preferred stock, $0.01 par value, 20,000,000 shares authorized: 5,603,458 shares outstanding | 1,671 | 1,671 | ||||||
Common stock, $0.01 par value, 3,000,000,000 and 2,000,000,000 shares authorized: 1,633,624,993 and 913,715,512 shares issued | 16 | 9 | ||||||
Additional paid-in capital | 16,392 | 14,378 | ||||||
Accumulated deficit | (13,933 | ) | (13,912 | ) | ||||
Accumulated other comprehensive loss | (13 | ) | (23 | ) | ||||
Less: treasury stock, at cost; 5,675,230 and 3,246,553 common shares | (36 | ) | (31 | ) | ||||
Total Chesapeake Stockholders’ Equity | 4,097 | 2,092 | ||||||
Noncontrolling interests | 41 | 41 | ||||||
Total Equity | 4,138 | 2,133 | ||||||
TOTAL LIABILITIES AND EQUITY | $ | 16,637 | $ | 12,735 |
Three Months Ended March 31, | ||||||||
2019 | 2018* | |||||||
($ in millions except per share data) | ||||||||
REVENUES AND OTHER: | ||||||||
Oil, natural gas and NGL | $ | 929 | $ | 1,243 | ||||
Marketing | 1,233 | 1,246 | ||||||
Total Revenues | 2,162 | 2,489 | ||||||
Other | 15 | 16 | ||||||
Gains on sales of assets | 19 | 19 | ||||||
Total Revenues and Other | 2,196 | 2,524 | ||||||
OPERATING EXPENSES: | ||||||||
Oil, natural gas and NGL production | 132 | 147 | ||||||
Oil, natural gas and NGL gathering, processing and transportation | 274 | 356 | ||||||
Production taxes | 34 | 31 | ||||||
Exploration | 24 | 81 | ||||||
Marketing | 1,230 | 1,268 | ||||||
General and administrative | 103 | 87 | ||||||
Restructuring and other termination costs | — | 38 | ||||||
Provision for legal contingencies, net | — | 5 | ||||||
Depreciation, depletion and amortization | 519 | 459 | ||||||
Impairments | 1 | 10 | ||||||
Other operating expense | 61 | — | ||||||
Total Operating Expenses | 2,378 | 2,482 | ||||||
INCOME (LOSS) FROM OPERATIONS | (182 | ) | 42 | |||||
OTHER INCOME (EXPENSE): | ||||||||
Interest expense | (161 | ) | (162 | ) | ||||
Gains (losses) on investments | (1 | ) | 139 | |||||
Other income (expense) | 9 | (1 | ) | |||||
Total Other Expense | (153 | ) | (24 | ) | ||||
INCOME (LOSS) BEFORE INCOME TAXES | (335 | ) | 18 | |||||
Income tax benefit | (314 | ) | — | |||||
NET INCOME (LOSS) | (21 | ) | 18 | |||||
Net income attributable to noncontrolling interests | — | (1 | ) | |||||
NET INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE | (21 | ) | 17 | |||||
Preferred stock dividends | (23 | ) | (23 | ) | ||||
NET LOSS AVAILABLE TO COMMON STOCKHOLDERS | $ | (44 | ) | $ | (6 | ) | ||
EARNINGS (LOSS) PER COMMON SHARE: | ||||||||
Basic | $ | (0.03 | ) | $ | (0.01 | ) | ||
Diluted | $ | (0.03 | ) | $ | (0.01 | ) | ||
WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING (in millions): | ||||||||
Basic | 1,380 | 907 | ||||||
Diluted | 1,380 | 907 |
Three Months Ended March 31, | ||||||||
2019 | 2018* | |||||||
($ in millions) | ||||||||
NET INCOME (LOSS) | $ | (21 | ) | $ | 18 | |||
OTHER COMPREHENSIVE INCOME, NET OF INCOME TAX: | ||||||||
Unrealized gains on derivative instruments(a) | — | — | ||||||
Reclassification of losses on settled derivative instruments(a) | 10 | 10 | ||||||
Other Comprehensive Income | 10 | 10 | ||||||
COMPREHENSIVE INCOME (LOSS) | (11 | ) | 28 | |||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | — | (1 | ) | |||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE | $ | (11 | ) | $ | 27 |
(a) | Deferred tax activity incurred in other comprehensive income was offset by a valuation allowance. |
Three Months Ended March 31, | ||||||||
2019 | 2018* | |||||||
($ in millions) | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
NET INCOME (LOSS) | $ | (21 | ) | $ | 18 | |||
ADJUSTMENTS TO RECONCILE NET INCOME (LOSS) TO CASH PROVIDED BY OPERATING ACTIVITIES: | ||||||||
Depreciation, depletion and amortization | 519 | 459 | ||||||
Deferred income tax benefit | (314 | ) | — | |||||
Derivative losses, net | 304 | 117 | ||||||
Cash receipts on derivative settlements, net | 14 | 13 | ||||||
Stock-based compensation | 6 | 9 | ||||||
Gains on sales of assets | (19 | ) | (19 | ) | ||||
Impairments | 1 | 10 | ||||||
Exploration | 18 | 68 | ||||||
(Gains) losses on investments | 1 | (139 | ) | |||||
Other | 40 | (36 | ) | |||||
Changes in assets and liabilities | (93 | ) | 88 | |||||
Net Cash Provided By Operating Activities | 456 | 588 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Drilling and completion costs | (515 | ) | (420 | ) | ||||
Business combination, net | (353 | ) | — | |||||
Acquisitions of proved and unproved properties | (6 | ) | (17 | ) | ||||
Proceeds from divestitures of proved and unproved properties | 26 | 319 | ||||||
Additions to other property and equipment | (9 | ) | (3 | ) | ||||
Proceeds from sales of other property and equipment | 1 | 68 | ||||||
Proceeds from sales of investments | — | 74 | ||||||
Net Cash Provided By (Used In) Investing Activities | (856 | ) | 21 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from revolving credit facility borrowings | 3,572 | 2,904 | ||||||
Payments on revolving credit facility borrowings | (3,136 | ) | (3,485 | ) | ||||
Cash paid to purchase debt | (1 | ) | — | |||||
Cash paid for preferred stock dividends | (23 | ) | (23 | ) | ||||
Distributions to noncontrolling interest owners | — | (2 | ) | |||||
Other | (8 | ) | (4 | ) | ||||
Net Cash Provided By (Used In) Financing Activities | 404 | (610 | ) | |||||
Net increase (decrease) in cash and cash equivalents | 4 | (1 | ) | |||||
Cash and cash equivalents, beginning of period | 4 | 5 | ||||||
Cash and cash equivalents, end of period | $ | 8 | $ | 4 | ||||
Supplemental disclosures to the condensed consolidated statements of cash flows are presented below: | ||||||||
Three Months Ended March 31, | ||||||||
2019 | 2018* | |||||||
($ in millions) | ||||||||
SUPPLEMENTAL CASH FLOW INFORMATION: | ||||||||
Interest paid, net of capitalized interest | $ | 145 | $ | 170 | ||||
Income taxes paid, net of refunds received | $ | (5 | ) | $ | — | |||
SUPPLEMENTAL DISCLOSURE OF SIGNIFICANT NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||||||||
Common stock issued for business combination | $ | 2,037 | $ | — | ||||
Change in accrued drilling and completion costs | $ | 39 | $ | 103 | ||||
Change in divested proved and unproved properties | $ | 2 | $ | 12 |
Three Months Ended March 31, | ||||||||
2019 | 2018* | |||||||
($ in millions) | ||||||||
PREFERRED STOCK: | ||||||||
Balance, beginning and end of period | $ | 1,671 | $ | 1,671 | ||||
COMMON STOCK: | ||||||||
Balance, beginning of period | 9 | 9 | ||||||
Common shares issued for WildHorse Merger | 7 | — | ||||||
Balance, end of period | 16 | 9 | ||||||
ADDITIONAL PAID-IN CAPITAL: | ||||||||
Balance, beginning of period | 14,378 | 14,437 | ||||||
Common shares issued for WildHorse Merger | 2,030 | — | ||||||
Stock-based compensation | 7 | 5 | ||||||
Dividends on preferred stock | (23 | ) | (23 | ) | ||||
Balance, end of period | 16,392 | 14,419 | ||||||
ACCUMULATED DEFICIT: | ||||||||
Balance, beginning of period | (13,912 | ) | (14,130 | ) | ||||
Net income (loss) attributable to Chesapeake | (21 | ) | 17 | |||||
Cumulative effect of accounting change | — | (8 | ) | |||||
Balance, end of period | (13,933 | ) | (14,121 | ) | ||||
ACCUMULATED OTHER COMPREHENSIVE LOSS: | ||||||||
Balance, beginning of period | (23 | ) | (57 | ) | ||||
Hedging activity | 10 | 10 | ||||||
Balance, end of period | (13 | ) | (47 | ) | ||||
TREASURY STOCK – COMMON: | ||||||||
Balance, beginning of period | (31 | ) | (31 | ) | ||||
Purchase of 2,539,473 and 1,451,478 shares for company benefit plans | (6 | ) | (4 | ) | ||||
Release of 110,796 and 275,407 shares from company benefit plans | 1 | 3 | ||||||
Balance, end of period | (36 | ) | (32 | ) | ||||
TOTAL CHESAPEAKE STOCKHOLDERS’ EQUITY | 4,097 | 1,899 | ||||||
NONCONTROLLING INTERESTS: | ||||||||
Balance, beginning of period | 41 | 44 | ||||||
Net income attributable to noncontrolling interests | — | 1 | ||||||
Distributions to noncontrolling interest owners | — | (2 | ) | |||||
Balance, end of period | 41 | 43 | ||||||
TOTAL EQUITY | $ | 4,138 | $ | 1,942 |
1. | Basis of Presentation and Summary of Significant Accounting Policies |
2. | Change in Accounting Principle |
Three Months Ended March 31, 2019 | ||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | Under Full Cost | Successful Efforts Adjustment | Under Successful Efforts | |||||||||
($ in millions except per share data) | ||||||||||||
REVENUES AND OTHER: | ||||||||||||
Oil, natural gas and NGL | $ | 929 | $ | — | $ | 929 | ||||||
Marketing | 1,233 | — | 1,233 | |||||||||
Total Revenues | 2,162 | — | 2,162 | |||||||||
Other | — | 15 | 15 | |||||||||
Gains on sales of assets | — | 19 | 19 | |||||||||
Total Revenues and Other | 2,162 | 34 | 2,196 | |||||||||
OPERATING EXPENSES: | ||||||||||||
Oil, natural gas and NGL production | 132 | — | 132 | |||||||||
Oil, natural gas and NGL gathering, processing and transportation | 274 | — | 274 | |||||||||
Production taxes | 34 | — | 34 | |||||||||
Exploration | — | 24 | 24 | |||||||||
Marketing | 1,230 | — | 1,230 | |||||||||
General and administrative | 88 | 15 | 103 | |||||||||
Depreciation, depletion and amortization | 357 | 162 | 519 | |||||||||
Impairments | 1 | — | 1 | |||||||||
Other operating expense | 51 | 10 | 61 | |||||||||
Total Operating Expenses | 2,167 | 211 | 2,378 | |||||||||
LOSS FROM OPERATIONS | (5 | ) | (177 | ) | (182 | ) | ||||||
OTHER INCOME (EXPENSE): | ||||||||||||
Interest expense | (135 | ) | (26 | ) | (161 | ) | ||||||
Losses on investments | (1 | ) | — | (1 | ) | |||||||
Other income | 7 | 2 | 9 | |||||||||
Total Other Expense | (129 | ) | (24 | ) | (153 | ) | ||||||
LOSS BEFORE INCOME TAXES | (134 | ) | (201 | ) | (335 | ) | ||||||
Income tax benefit | (314 | ) | — | (314 | ) | |||||||
NET INCOME (LOSS) | 180 | (201 | ) | (21 | ) | |||||||
Net income attributable to noncontrolling interests | (1 | ) | 1 | — | ||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE | 179 | (200 | ) | (21 | ) | |||||||
Preferred stock dividends | (23 | ) | — | (23 | ) | |||||||
NET INCOME (LOSS) AVAILABLE TO COMMON STOCKHOLDERS | $ | 156 | $ | (200 | ) | $ | (44 | ) | ||||
EARNINGS (LOSS) PER COMMON SHARE: | ||||||||||||
Basic | $ | 0.11 | $ | (0.14 | ) | $ | (0.03 | ) | ||||
Diluted | $ | 0.11 | $ | (0.14 | ) | $ | (0.03 | ) | ||||
WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING (in millions): | ||||||||||||
Basic | 1,380 | — | 1,380 | |||||||||
Diluted | 1,380 | — | 1,380 |
Three Months Ended March 31, 2018 | ||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | Under Full Cost | Successful Efforts Adjustment | Under Successful Efforts | |||||||||
($ in millions except per share data) | ||||||||||||
REVENUES AND OTHER: | ||||||||||||
Oil, natural gas and NGL | $ | 1,243 | $ | — | $ | 1,243 | ||||||
Marketing | 1,246 | — | 1,246 | |||||||||
Total Revenues | 2,489 | — | 2,489 | |||||||||
Other | — | 16 | 16 | |||||||||
Gains on sales of assets | — | 19 | 19 | |||||||||
Total Revenues and Other | 2,489 | 35 | 2,524 | |||||||||
OPERATING EXPENSES: | ||||||||||||
Oil, natural gas and NGL production | 147 | — | 147 | |||||||||
Oil, natural gas and NGL gathering, processing and transportation | 356 | — | 356 | |||||||||
Production taxes | 31 | — | 31 | |||||||||
Exploration | — | 81 | 81 | |||||||||
Marketing | 1,268 | — | 1,268 | |||||||||
General and administrative | 72 | 15 | 87 | |||||||||
Restructuring and other termination costs | 38 | — | 38 | |||||||||
Provision for legal contingencies, net | 5 | — | 5 | |||||||||
Depreciation, depletion and amortization | 286 | 173 | 459 | |||||||||
Impairments | — | 10 | 10 | |||||||||
Other operating expense | 8 | (8 | ) | — | ||||||||
Total Operating Expenses | 2,211 | 271 | 2,482 | |||||||||
INCOME FROM OPERATIONS | 278 | (236 | ) | 42 | ||||||||
OTHER INCOME (EXPENSE): | ||||||||||||
Interest expense | (123 | ) | (39 | ) | (162 | ) | ||||||
Gains on investments | 139 | — | 139 | |||||||||
Other expense | — | (1 | ) | (1 | ) | |||||||
Total Other Income (Expense) | 16 | (40 | ) | (24 | ) | |||||||
INCOME BEFORE INCOME TAXES | 294 | (276 | ) | 18 | ||||||||
Income tax expense (benefit) | — | — | — | |||||||||
NET INCOME | 294 | (276 | ) | 18 | ||||||||
Net income attributable to noncontrolling interests | (1 | ) | — | (1 | ) | |||||||
NET INCOME ATTRIBUTABLE TO CHESAPEAKE | 293 | (276 | ) | 17 | ||||||||
Preferred stock dividends | (23 | ) | — | (23 | ) | |||||||
Earnings allocated to participating securities | (2 | ) | 2 | — | ||||||||
NET INCOME (LOSS) AVAILABLE TO COMMON STOCKHOLDERS | $ | 268 | $ | (274 | ) | $ | (6 | ) | ||||
EARNINGS (LOSS) PER COMMON SHARE: | ||||||||||||
Basic | $ | 0.30 | $ | (0.31 | ) | $ | (0.01 | ) | ||||
Diluted | $ | 0.29 | $ | (0.30 | ) | $ | (0.01 | ) | ||||
WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING (in millions): | ||||||||||||
Basic | 907 | — | 907 | |||||||||
Diluted | 1,053 | (146 | ) | 907 |
Three Months Ended March 31, 2019 | ||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | Under Full Cost | Successful Efforts Adjustment | Under Successful Efforts | |||||||||
($ in millions) | ||||||||||||
NET INCOME (LOSS) | $ | 180 | $ | (201 | ) | $ | (21 | ) | ||||
OTHER COMPREHENSIVE INCOME, NET OF INCOME TAX: | ||||||||||||
Unrealized gains on derivative instruments | — | — | — | |||||||||
Reclassification of losses on settled derivative instruments | 10 | — | 10 | |||||||||
Other Comprehensive Income | 10 | — | 10 | |||||||||
COMPREHENSIVE INCOME (LOSS) | 190 | (201 | ) | (11 | ) | |||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | (1 | ) | 1 | — | ||||||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE | $ | 189 | $ | (200 | ) | $ | (11 | ) |
Three Months Ended March 31, 2018 | ||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | Under Full Cost | Successful Efforts Adjustment | Under Successful Efforts | |||||||||
($ in millions) | ||||||||||||
NET INCOME | $ | 294 | $ | (276 | ) | $ | 18 | |||||
OTHER COMPREHENSIVE INCOME, NET OF INCOME TAX: | ||||||||||||
Unrealized gains on derivative instruments | — | — | — | |||||||||
Reclassification of losses on settled derivative instruments | 10 | — | 10 | |||||||||
Other Comprehensive Income | 10 | — | 10 | |||||||||
COMPREHENSIVE INCOME | 304 | (276 | ) | 28 | ||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | (1 | ) | — | (1 | ) | |||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO CHESAPEAKE | $ | 303 | $ | (276 | ) | $ | 27 |
Three Months Ended March 31, 2019 | ||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | Under Full Cost | Successful Efforts Adjustment | Under Successful Efforts | |||||||||
($ in millions) | ||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
NET INCOME (LOSS) | $ | 180 | $ | (201 | ) | $ | (21 | ) | ||||
ADJUSTMENTS TO RECONCILE NET INCOME (LOSS) TO CASH PROVIDED BY OPERATING ACTIVITIES: | ||||||||||||
Depreciation, depletion and amortization | 357 | 162 | 519 | |||||||||
Deferred income tax benefit | (314 | ) | — | (314 | ) | |||||||
Derivative losses, net | 304 | — | 304 | |||||||||
Cash receipts on derivative settlements, net | 14 | — | 14 | |||||||||
Stock-based compensation | 6 | — | 6 | |||||||||
Gains on sales of assets | — | (19 | ) | (19 | ) | |||||||
Impairments | 1 | — | 1 | |||||||||
Exploration | — | 18 | 18 | |||||||||
Losses on investments | 1 | — | 1 | |||||||||
Other | 31 | 9 | 40 | |||||||||
Changes in assets and liabilities | (78 | ) | (15 | ) | (93 | ) | ||||||
Net Cash Provided By Operating Activities | 502 | (46 | ) | 456 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
Drilling and completion costs | (533 | ) | 18 | (515 | ) | |||||||
Business combination, net | (353 | ) | — | (353 | ) | |||||||
Acquisitions of proved and unproved properties | (34 | ) | 28 | (6 | ) | |||||||
Proceeds from divestitures of proved and unproved properties | 26 | — | 26 | |||||||||
Additions to other property and equipment | (9 | ) | — | (9 | ) | |||||||
Proceeds from sales of other property and equipment | 1 | — | 1 | |||||||||
Net Cash Used In Investing Activities | (902 | ) | 46 | (856 | ) | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
Proceeds from revolving credit facility borrowings | 3,572 | — | 3,572 | |||||||||
Payments on revolving credit facility borrowings | (3,136 | ) | — | (3,136 | ) | |||||||
Cash paid to purchase debt | (1 | ) | — | (1 | ) | |||||||
Cash paid for preferred stock dividends | (23 | ) | — | (23 | ) | |||||||
Other | (8 | ) | — | (8 | ) | |||||||
Net Cash Provided By Financing Activities | 404 | — | 404 | |||||||||
Net increase in cash and cash equivalents | 4 | — | 4 | |||||||||
Cash and cash equivalents, beginning of period | 4 | — | 4 | |||||||||
Cash and cash equivalents, end of period | $ | 8 | $ | — | $ | 8 |
Three Months Ended March 31, 2018 | ||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | Under Full Cost | Successful Efforts Adjustment | Under Successful Efforts | |||||||||
($ in millions ) | ||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
NET INCOME | $ | 294 | $ | (276 | ) | $ | 18 | |||||
ADJUSTMENTS TO RECONCILE NET INCOME TO CASH PROVIDED BY OPERATING ACTIVITIES: | ||||||||||||
Depreciation, depletion and amortization | 286 | 173 | 459 | |||||||||
Derivative losses, net | 117 | — | 117 | |||||||||
Cash receipts on derivative settlements, net | 13 | — | 13 | |||||||||
Stock-based compensation | 9 | — | 9 | |||||||||
Gains on sales of assets | — | (19 | ) | (19 | ) | |||||||
Impairments | — | 10 | 10 | |||||||||
Exploration | — | 68 | 68 | |||||||||
Gains on investments | (139 | ) | — | (139 | ) | |||||||
Other | (28 | ) | (8 | ) | (36 | ) | ||||||
Changes in assets and liabilities | 104 | (16 | ) | 88 | ||||||||
Net Cash Provided By Operating Activities | 656 | (68 | ) | 588 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
Drilling and completion costs | (442 | ) | 22 | (420 | ) | |||||||
Acquisitions of proved and unproved properties | (63 | ) | 46 | (17 | ) | |||||||
Proceeds from divestitures of proved and unproved properties | 319 | — | 319 | |||||||||
Additions to other property and equipment | (3 | ) | — | (3 | ) | |||||||
Proceeds from sales of other property and equipment | 68 | — | 68 | |||||||||
Proceeds from sales of investments | 74 | — | 74 | |||||||||
Net Cash Provided by (Used In) Investing Activities | (47 | ) | 68 | 21 | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
Proceeds from revolving credit facility borrowings | 2,904 | — | 2,904 | |||||||||
Payments on revolving credit facility borrowings | (3,485 | ) | — | (3,485 | ) | |||||||
Cash paid for preferred stock dividends | (23 | ) | — | (23 | ) | |||||||
Distributions to noncontrolling interest owners | (2 | ) | — | (2 | ) | |||||||
Other | (4 | ) | — | (4 | ) | |||||||
Net Cash Used In Financing Activities | (610 | ) | — | (610 | ) | |||||||
Net decrease in cash and cash equivalents | (1 | ) | — | (1 | ) | |||||||
Cash and cash equivalents, beginning of period | 5 | — | 5 | |||||||||
Cash and cash equivalents, end of period | $ | 4 | $ | — | $ | 4 |
Three Months Ended March 31, 2019 | ||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY | Under Full Cost | Adjustment | Under Successful Efforts | |||||||||
($ in millions) | ||||||||||||
PREFERRED STOCK: | ||||||||||||
Balance, beginning and end of period | $ | 1,671 | $ | — | $ | 1,671 | ||||||
COMMON STOCK: | ||||||||||||
Balance, beginning of period | 9 | — | 9 | |||||||||
Common shares issued for WildHorse Merger | 7 | — | 7 | |||||||||
Balance, end of period | 16 | — | 16 | |||||||||
ADDITIONAL PAID-IN CAPITAL: | ||||||||||||
Balance, beginning of period | 14,378 | — | 14,378 | |||||||||
Common shares issued for WildHorse Merger | 2,030 | — | 2,030 | |||||||||
Stock-based compensation | 7 | — | 7 | |||||||||
Dividends on preferred stock | (23 | ) | — | (23 | ) | |||||||
Balance, end of period | 16,392 | — | 16,392 | |||||||||
ACCUMULATED DEFICIT: | ||||||||||||
Balance, beginning of period | (15,660 | ) | 1,748 | (13,912 | ) | |||||||
Net income (loss) attributable to Chesapeake | 179 | (200 | ) | (21 | ) | |||||||
Balance, end of period | (15,481 | ) | 1,548 | (13,933 | ) | |||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS: | ||||||||||||
Balance, beginning of period | (23 | ) | — | (23 | ) | |||||||
Hedging activity | 10 | — | 10 | |||||||||
Balance, end of period | (13 | ) | — | (13 | ) | |||||||
TREASURY STOCK – COMMON: | ||||||||||||
Balance, beginning of period | (31 | ) | — | (31 | ) | |||||||
Purchase of 2,539,473 shares for company benefit plans | (6 | ) | — | (6 | ) | |||||||
Release of 110,796 shares from company benefit plans | 1 | — | 1 | |||||||||
Balance, end of period | (36 | ) | — | (36 | ) | |||||||
TOTAL CHESAPEAKE STOCKHOLDERS’ EQUITY | 2,549 | 1,548 | 4,097 | |||||||||
NONCONTROLLING INTERESTS: | ||||||||||||
Balance, beginning of period | 123 | (82 | ) | 41 | ||||||||
Net income attributable to noncontrolling interests | (1 | ) | 1 | — | ||||||||
Distributions to noncontrolling interest owners | — | — | — | |||||||||
Balance, end of period | 122 | (81 | ) | 41 | ||||||||
TOTAL EQUITY | $ | 2,671 | $ | 1,467 | $ | 4,138 |
Three Months Ended March 31, 2018 | ||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY | Under Full Cost | Adjustment | Under Successful Efforts | |||||||||
($ in millions) | ||||||||||||
PREFERRED STOCK: | ||||||||||||
Balance, beginning and end of period | $ | 1,671 | $ | — | $ | 1,671 | ||||||
COMMON STOCK: | ||||||||||||
Balance, beginning of period | 9 | — | 9 | |||||||||
Balance, end of period | 9 | — | 9 | |||||||||
ADDITIONAL PAID-IN CAPITAL: | ||||||||||||
Balance, beginning of period | 14,437 | — | 14,437 | |||||||||
Stock-based compensation | 5 | — | 5 | |||||||||
Dividends on preferred stock | (23 | ) | — | (23 | ) | |||||||
Balance, end of period | 14,419 | — | 14,419 | |||||||||
ACCUMULATED DEFICIT: | ||||||||||||
Balance, beginning of period | (16,525 | ) | 2,395 | (14,130 | ) | |||||||
Net income attributable to Chesapeake | 293 | (276 | ) | 17 | ||||||||
Cumulative effect of accounting change | (8 | ) | — | (8 | ) | |||||||
Balance, end of period | (16,240 | ) | 2,119 | (14,121 | ) | |||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS: | ||||||||||||
Balance, beginning of period | (57 | ) | — | (57 | ) | |||||||
Hedging activity | 10 | — | 10 | |||||||||
Balance, end of period | (47 | ) | — | (47 | ) | |||||||
TREASURY STOCK – COMMON: | ||||||||||||
Balance, beginning of period | (31 | ) | — | (31 | ) | |||||||
Purchase of 1,451,478 shares for company benefit plans | (4 | ) | — | (4 | ) | |||||||
Release of 275,407 shares from company benefit plans | 3 | — | 3 | |||||||||
Balance, end of period | (32 | ) | — | (32 | ) | |||||||
TOTAL CHESAPEAKE STOCKHOLDERS’ EQUITY (DEFICIT) | (220 | ) | 2,119 | 1,899 | ||||||||
NONCONTROLLING INTERESTS: | ||||||||||||
Balance, beginning of period | 124 | (80 | ) | 44 | ||||||||
Net income attributable to noncontrolling interests | 1 | — | 1 | |||||||||
Distributions to noncontrolling interest owners | (2 | ) | — | (2 | ) | |||||||
Balance, end of period | 123 | (80 | ) | 43 | ||||||||
TOTAL EQUITY (DEFICIT) | $ | (97 | ) | $ | 2,039 | $ | 1,942 |
3. | Oil and Natural Gas Property Transactions |
Preliminary Purchase Price Allocation | |||
($ in millions) | |||
Consideration: | |||
Cash | $ | 381 | |
Fair value of Chesapeake’s common stock issued in the Merger (a) | 2,037 | ||
Total consideration | $ | 2,418 | |
Fair Value of Liabilities Assumed: | |||
Current liabilities | $ | 166 | |
Long-term debt | 1,379 | ||
Deferred tax liabilities | 314 | ||
Other long-term liabilities | 36 | ||
Amounts attributable to liabilities assumed | $ | 1,895 | |
Fair Value of Assets Acquired: | |||
Cash and cash equivalents | $ | 28 | |
Other current assets | 128 | ||
Proved oil and natural gas properties | 3,264 | ||
Unproved properties | 756 | ||
Other property and equipment | 77 | ||
Other long-term assets | 60 | ||
Amounts attributable to assets acquired | $ | 4,313 | |
Total identifiable net assets | $ | 2,418 |
(a) | Based on 717,376,170 Chesapeake common shares issued at closing at $2.84 per share (closing price as of February 1, 2019). |
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
($ in millions except per share data) | ||||||||
Revenues | $ | 2,188 | $ | 2,682 | ||||
Net loss available to common stockholders | $ | (59 | ) | $ | (10 | ) | ||
Earnings per common share: | ||||||||
Basic | $ | (0.04 | ) | $ | (0.01 | ) | ||
Diluted | $ | (0.04 | ) | $ | (0.01 | ) |
4. | Capitalized Exploratory Well Costs |
2019 | ||||
($ in millions) | ||||
Balance as of January 1 | $ | 36 | ||
Additions pending the determination of proved reserves | 7 | |||
Divestitures and other | — | |||
Reclassifications to proved properties | (16 | ) | ||
Charges to exploration expense | — | |||
Balance as of March 31 | $ | 27 |
5. | Earnings Per Share |
Three Months Ended March 31, | ||||||
2019 | 2018 | |||||
(in millions) | ||||||
Common stock equivalent of our preferred stock outstanding | 60 | 60 | ||||
Common stock equivalent of our convertible senior notes outstanding | 146 | 146 |
6. | Debt |
March 31, 2019 | December 31, 2018 | ||||||||||||||
Principal Amount | Carrying Amount | Principal Amount | Carrying Amount | ||||||||||||
($ in millions) | |||||||||||||||
Floating rate senior notes due 2019 | 380 | 380 | 380 | 380 | |||||||||||
6.625% senior notes due 2020 | 437 | 437 | 437 | 437 | |||||||||||
6.875% senior notes due 2020 | 227 | 227 | 227 | 227 | |||||||||||
6.125% senior notes due 2021 | 548 | 548 | 548 | 548 | |||||||||||
5.375% senior notes due 2021 | 267 | 267 | 267 | 267 | |||||||||||
4.875% senior notes due 2022 | 451 | 451 | 451 | 451 | |||||||||||
5.75% senior notes due 2023 | 338 | 338 | 338 | 338 | |||||||||||
7.00% senior notes due 2024 | 850 | 850 | 850 | 850 | |||||||||||
6.875% senior notes due 2025(a) | 700 | 704 | — | — | |||||||||||
8.00% senior notes due 2025 | 1,300 | 1,291 | 1,300 | 1,291 | |||||||||||
5.5% convertible senior notes due 2026(b)(c) | 1,250 | 874 | 1,250 | 866 | |||||||||||
7.5% senior notes due 2026 | 400 | 400 | 400 | 400 | |||||||||||
8.00% senior notes due 2027 | 1,300 | 1,299 | 1,300 | 1,299 | |||||||||||
2.25% contingent convertible senior notes due 2038 | — | — | 1 | 1 | |||||||||||
Chesapeake revolving credit facility | 842 | 842 | 419 | 419 | |||||||||||
BVL revolving credit facility(a) | 688 | 688 | — | — | |||||||||||
Debt issuance costs | — | (50 | ) | — | (53 | ) | |||||||||
Interest rate derivatives | — | 1 | — | 1 | |||||||||||
Total debt, net | 9,978 | 9,547 | 8,168 | 7,722 | |||||||||||
Less current maturities of long-term debt, net(d) | (380 | ) | (380 | ) | (381 | ) | (381 | ) | |||||||
Total long-term debt, net | $ | 9,598 | $ | 9,167 | $ | 7,787 | $ | 7,341 |
(a) | On February 1, 2019, we acquired the debt of WildHorse which consisted of 6.875% Senior Notes due 2025 and a revolving credit facility. We now refer to this debt as our BVL Senior Notes and our BVL revolving credit facility, respectively. See further discussion below. |
(b) | We are required to account for the liability and equity components of our convertible debt instrument separately and to reflect interest expense through the first demand repurchase date, as applicable, at the interest rate of similar nonconvertible debt at the time of issuance. The applicable rate for our 5.5% Convertible Senior Notes due 2026 is 11.5%. |
(c) | Prior to maturity under certain circumstances and at the holder’s option, the notes are convertible. During the Current Quarter, the price of our common stock was below the threshold level for conversion and, as a result, the holders do not have the option to convert their notes in the second quarter of 2019. |
(d) | As of March 31, 2019 and December 31, 2018, net current maturities of long-term debt includes our Floating Rate Senior Notes due April 2019. Subsequent to March 31, 2019, we repaid these notes in full upon maturity. |
March 31, 2019 | December 31, 2018 | |||||||||||||||
Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | |||||||||||||
($ in millions) | ||||||||||||||||
Short-term debt (Level 1) | $ | 380 | $ | 379 | $ | 381 | $ | 379 | ||||||||
Long-term debt (Level 1) | $ | 4,200 | $ | 4,240 | $ | 3,495 | $ | 3,173 | ||||||||
Long-term debt (Level 2) | $ | 4,967 | $ | 5,232 | $ | 3,846 | $ | 3,644 |
7. | Contingencies and Commitments |
March 31, 2019 | ||||
($ in millions) | ||||
2019 | $ | 627 | ||
2020 | 783 | |||
2021 | 687 | |||
2022 | 585 | |||
2023 | 472 | |||
2024 – 2035 | 2,443 | |||
Total | $ | 5,597 |
8. | Other Liabilities |
March 31, 2019 | December 31, 2018 | |||||||
($ in millions) | ||||||||
Revenues and royalties due others | $ | 562 | $ | 687 | ||||
Accrued drilling and production costs | 467 | 258 | ||||||
Joint interest prepayments received | 69 | 73 | ||||||
VPP deferred revenue(a) | 58 | 59 | ||||||
Accrued compensation and benefits | 114 | 202 | ||||||
Other accrued taxes | 105 | 108 | ||||||
Other | 216 | 212 | ||||||
Total other current liabilities | $ | 1,591 | $ | 1,599 |
March 31, 2019 | December 31, 2018 | |||||||
($ in millions) | ||||||||
VPP deferred revenue(a) | $ | 49 | $ | 63 | ||||
Unrecognized tax benefits | 53 | 53 | ||||||
Other | 108 | 103 | ||||||
Total other long-term liabilities | $ | 210 | $ | 219 |
(a) | At the inception of our volumetric production payment (VPP) agreements, we (i) removed the proved reserves associated with the VPP, (ii) recognized VPP proceeds as deferred revenue which are being amortized on a unit-of-production basis to other revenue over the term of the VPP, (iii) retained responsibility for the production costs and capital costs related to VPP interests and (iv) ceased recognizing production associated with the VPP volumes. The remaining deferred revenue balance will be recognized in other revenues in the consolidated statement of operations through 2021, assuming the related VPP production volumes are delivered as scheduled. |
9. | Leases |
Financing | Operating | |||||||
($ in millions) | ||||||||
ROU assets | $ | 24 | $ | 32 | ||||
Lease liabilities: | ||||||||
Current lease liabilities | 9 | 19 | ||||||
Long-term lease liabilities | 15 | 15 | ||||||
Total lease liabilities | $ | 24 | $ | 34 |
Three Months Ended March 31, 2019 | ||||
Lease cost: | ($ in millions) | |||
Amortization of ROU assets | $ | 2 | ||
Interest on lease liability | 1 | |||
Finance lease cost | 3 | |||
Operating lease cost | 7 | |||
Short-term lease cost | 22 | |||
Total lease cost(a) | $ | 32 | ||
Other information: | ||||
Operating cash outflows from finance lease | $ | 1 | ||
Operating cash outflows from operating leases | $ | 2 | ||
Investing cash outflows from operating leases | $ | 27 | ||
Financing cash outflows from finance lease | $ | 2 | ||
Weighted-average remaining lease term - finance lease | 2.75 years | |||
Weighted-average remaining lease term - operating leases | 3.8 years | |||
Weighted-average discount rate - finance lease | 7.50 | % | ||
Weighted-average discount rate - operating leases | 5.09 | % |
(a) | Includes $27 million of capitalized lease costs. |
March 31, 2019 | ||||||||
Financing Lease | Operating Leases | |||||||
($ in millions) | ||||||||
2019 remaining | $ | 7 | $ | 18 | ||||
2020 | 10 | 6 | ||||||
2021 | 10 | 2 | ||||||
2022 | — | 2 | ||||||
2023 | — | 2 | ||||||
Thereafter | — | 7 | ||||||
Total lease payments | 27 | 37 | ||||||
Less imputed interest | (3 | ) | (3 | ) | ||||
Present value of lease liabilities | 24 | 34 | ||||||
Less current maturities | (9 | ) | (19 | ) | ||||
Present value of lease liabilities, less current maturities | $ | 15 | $ | 15 |
December 31, 2018 | ||||||||
Capital Lease | Operating Leases | |||||||
($ in millions) | ||||||||
2019 | $ | 10 | $ | 3 | ||||
2020 | 10 | 1 | ||||||
2021 | 10 | — | ||||||
Total minimum lease payments | $ | 30 | $ | 4 |
10. | Revenue Recognition |
Three Months Ended March 31, 2019 | ||||||||||||||||
Oil | Natural Gas | NGL | Total | |||||||||||||
($ in millions) | ||||||||||||||||
Marcellus | $ | — | $ | 302 | $ | — | $ | 302 | ||||||||
Haynesville | — | 201 | — | 201 | ||||||||||||
Eagle Ford | 331 | 48 | 46 | 425 | ||||||||||||
Brazos Valley | 121 | 4 | 2 | 127 | ||||||||||||
Powder River Basin | 74 | 25 | 10 | 109 | ||||||||||||
Mid-Continent | 40 | 15 | 11 | 66 | ||||||||||||
Revenue from contracts with customers | 566 | 595 | 69 | 1,230 | ||||||||||||
Losses on oil, natural gas and NGL derivatives | (259 | ) | (42 | ) | — | (301 | ) | |||||||||
Oil, natural gas and NGL revenue | $ | 307 | $ | 553 | $ | 69 | $ | 929 | ||||||||
Marketing revenue from contracts with customers | $ | 613 | $ | 413 | $ | 117 | $ | 1,143 | ||||||||
Other marketing revenue | 72 | 20 | — | 92 | ||||||||||||
Losses on oil, natural gas and NGL derivatives | — | (2 | ) | — | (2 | ) | ||||||||||
Marketing revenue | $ | 685 | $ | 431 | $ | 117 | $ | 1,233 | ||||||||
Three Months Ended March 31, 2018 | ||||||||||||||||
Oil | Natural Gas | NGL | Total | |||||||||||||
($ in millions) | ||||||||||||||||
Marcellus | $ | — | $ | 294 | $ | — | $ | 294 | ||||||||
Haynesville | — | 210 | — | 210 | ||||||||||||
Eagle Ford | 364 | 42 | 40 | 446 | ||||||||||||
Powder River Basin | 40 | 12 | 8 | 60 | ||||||||||||
Mid-Continent | 73 | 32 | 17 | 122 | ||||||||||||
Utica | 60 | 116 | 52 | 228 | ||||||||||||
Revenue from contracts with customers | 537 | 706 | 117 | 1,360 | ||||||||||||
Gains (losses) on oil, natural gas and NGL derivatives | (86 | ) | (32 | ) | 1 | (117 | ) | |||||||||
Oil, natural gas and NGL revenue | $ | 451 | $ | 674 | $ | 118 | $ | 1,243 | ||||||||
Marketing revenue from contracts with customers | 686 | 293 | 110 | 1,089 | ||||||||||||
Other marketing revenue | 117 | 40 | — | 157 | ||||||||||||
Marketing revenue | $ | 803 | $ | 333 | $ | 110 | $ | 1,246 |
March 31, 2019 | December 31, 2018 | |||||||
($ in millions) | ||||||||
Oil, natural gas and NGL sales | $ | 887 | $ | 976 | ||||
Joint interest | 262 | 211 | ||||||
Other | 67 | 77 | ||||||
Allowance for doubtful accounts | (20 | ) | (17 | ) | ||||
Total accounts receivable, net | $ | 1,196 | $ | 1,247 |
11. | Income Taxes |
12. | Share-Based Compensation |
Shares of Unvested Restricted Stock | Weighted Average Grant Date Fair Value Per Share | ||||||
(in thousands) | |||||||
Unvested restricted stock as of January 1, 2019 | 11,858 | $ | 4.43 | ||||
Granted | 4,272 | $ | 2.97 | ||||
Vested | (3,937 | ) | $ | 4.49 | |||
Forfeited | (93 | ) | $ | 5.54 | |||
Unvested restricted stock as of March 31, 2019 | 12,100 | $ | 3.89 |
Expected option life – years | 6.0 | ||
Volatility | 65.61 | % | |
Risk-free interest rate | 2.47 | % | |
Dividend yield | — | % |
Number of Shares Underlying Options | Weighted Average Exercise Price Per Share | Weighted Average Contract Life in Years | Aggregate Intrinsic Value(a) | ||||||||||
(in thousands) | ($ in millions) | ||||||||||||
Outstanding as of January 1, 2019 | 18,096 | $ | 7.20 | 7.15 | $ | — | |||||||
Granted | 1,000 | $ | 2.97 | ||||||||||
Exercised | — | $ | — | $ | — | ||||||||
Expired | (87 | ) | $ | 11.23 | |||||||||
Forfeited | (79 | ) | $ | 5.45 | |||||||||
Outstanding as of March 31, 2019 | 18,930 | $ | 6.97 | 7.03 | $ | — | |||||||
Exercisable as of March 31, 2019 | 13,355 | $ | 8.23 | 6.33 | $ | — |
(a) | The intrinsic value of a stock option is the amount by which the current market value or the market value upon exercise of the underlying stock exceeds the exercise price of the option. |
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
($ in millions) | ||||||||
General and administrative expenses | $ | 6 | $ | 7 | ||||
Oil and natural gas properties | 1 | 2 | ||||||
Oil, natural gas and NGL production expenses | 1 | 2 | ||||||
Exploration expenses | — | — | ||||||
Total restricted stock and stock option compensation | $ | 8 | $ | 11 |
Grant Date Assumptions | |||
Assumption | 2017 Awards | ||
Volatility | 80.65 | % | |
Risk-free interest rate | 1.54 | % | |
Dividend yield for value of awards | — | % |
Reporting Period Assumptions | |||
Assumption | 2017 Awards | ||
Volatility | 66.62 | % | |
Risk-free interest rate | 2.41 | % | |
Dividend yield for value of awards | — | % |
Grant Date Fair Value | March 31, 2019 | ||||||||||||||
Units | Fair Value | Vested Liability | |||||||||||||
($ in millions) | ($ in millions) | ||||||||||||||
2019 PSU Awards: | |||||||||||||||
Payable 2020, 2021 and 2022 | 5,359,249 | $ | 16 | $ | 17 | $ | — | ||||||||
2018 PSU Awards: | |||||||||||||||
Payable 2020 and 2021 | 2,639,765 | $ | 8 | $ | 8 | $ | — | ||||||||
2017 PSU Awards: | |||||||||||||||
Payable 2020 | 1,217,774 | $ | 8 | $ | 4 | $ | 2 | ||||||||
2018 CRSU Awards: | |||||||||||||||
Payable 2020 and 2021 | 9,732,557 | $ | 29 | $ | 30 | $ | — |
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
($ in millions) | ||||||||
General and administrative expenses | $ | 9 | $ | 1 | ||||
Oil and natural gas properties | 1 | — | ||||||
Oil, natural gas and NGL production expenses | 3 | — | ||||||
Exploration expenses | 1 | — | ||||||
Total liability-classified awards compensation | $ | 14 | $ | 1 |
13. | Derivative and Hedging Activities |
• | Swaps: We receive a fixed price and pay a floating market price to the counterparty for the hedged commodity. In exchange for higher fixed prices on certain of our swap trades, we may sell call options and call swaptions. |
• | Options: We occasionally sell and buy call and put options in exchange for a premium. At the time of settlement, if the market price exceeds the fixed price of the call option, we pay the counterparty the excess on sold call options and we receive the excess on bought call options. At the time of settlement, if the market price is lower than the fixed price of the put option, we receive the difference on bought put options and pay the counterparty the difference on sold put options. If the market price settles below the fixed price of the call option or above the fixed price of the put option, no payment is due from either party. |
• | Call Swaptions: We sell call swaptions to counterparties in exchange for a premium that allow the counterparty, on a specific date, to extend an existing fixed-price swap for a certain period of time. |
• | Collars: These instruments contain a fixed floor price (put) and ceiling price (call). If the market price exceeds the call strike price or falls below the put strike price, we receive the fixed price and pay the market price. If the market price is between the put and the call strike prices, no payments are due from either party. Three-way collars include the sale by us of an additional put option in exchange for a more favorable strike price on the call option. This eliminates the counterparty’s downside exposure below the second put option strike price. |
• | Basis Protection Swaps: These instruments are arrangements that guarantee a fixed price differential to NYMEX from a specified delivery point. We receive the fixed price differential and pay the floating market price differential to the counterparty for the hedged commodity. |
March 31, 2019 | December 31, 2018 | |||||||||||||
Notional Volume | Fair Value | Notional Volume | Fair Value | |||||||||||
($ in millions) | ($ in millions) | |||||||||||||
Oil (mmbbl): | ||||||||||||||
Fixed-price swaps | 21 | $ | (31 | ) | 12 | $ | 157 | |||||||
Collars | 6 | 24 | 8 | 98 | ||||||||||
Call swaptions | 2 | (7 | ) | — | — | |||||||||
Put options | 2 | (5 | ) | — | — | |||||||||
Basis protection swaps | 6 | 4 | 7 | 5 | ||||||||||
Total oil | 37 | (15 | ) | 27 | 260 | |||||||||
Natural gas (bcf): | ||||||||||||||
Fixed-price swaps | 594 | 21 | 623 | 26 | ||||||||||
Three-way collars | 66 | 3 | 88 | 1 | ||||||||||
Collars | 28 | — | 55 | (3 | ) | |||||||||
Call options | 39 | — | 44 | — | ||||||||||
Call swaptions | 106 | (18 | ) | 106 | (9 | ) | ||||||||
Basis protection swaps | 38 | (1 | ) | 50 | — | |||||||||
Total natural gas | 871 | 5 | 966 | 15 | ||||||||||
Contingent consideration: | ||||||||||||||
Utica divestiture | 7 | 7 | ||||||||||||
Total estimated fair value | $ | (3 | ) | $ | 282 |
Balance Sheet Classification | Gross Fair Value | Amounts Netted in the Consolidated Balance Sheets | Net Fair Value Presented in the Consolidated Balance Sheet | |||||||||
($ in millions) | ||||||||||||
As of March 31, 2019 | ||||||||||||
Commodity Contracts: | ||||||||||||
Short-term derivative asset | $ | 69 | $ | (51 | ) | $ | 18 | |||||
Long-term derivative asset | 61 | (13 | ) | 48 | ||||||||
Short-term derivative liability | (112 | ) | 51 | (61 | ) | |||||||
Long-term derivative liability | (28 | ) | 13 | (15 | ) | |||||||
Contingent Consideration: | ||||||||||||
Short-term derivative asset | 7 | — | 7 | |||||||||
Total derivatives | $ | (3 | ) | $ | — | $ | (3 | ) | ||||
As of December 31, 2018 | ||||||||||||
Commodity Contracts: | ||||||||||||
Short-term derivative asset | $ | 306 | $ | (104 | ) | $ | 202 | |||||
Long-term derivative asset | 117 | (41 | ) | 76 | ||||||||
Short-term derivative liability | (107 | ) | 104 | (3 | ) | |||||||
Long-term derivative liability | (41 | ) | 41 | — | ||||||||
Contingent Consideration: | ||||||||||||
Short-term derivative asset | 7 | — | 7 | |||||||||
Total derivatives | $ | 282 | $ | — | $ | 282 |
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
($ in millions) | ||||||||
Oil, natural gas and NGL revenues | $ | 1,230 | $ | 1,360 | ||||
Losses on undesignated oil, natural gas and NGL derivatives | (291 | ) | (107 | ) | ||||
Losses on terminated cash flow hedges | (10 | ) | (10 | ) | ||||
Total oil, natural gas and NGL revenues | $ | 929 | $ | 1,243 |
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
($ in millions) | ||||||||
Marketing revenues | $ | 1,235 | $ | 1,246 | ||||
Losses on undesignated marketing natural gas derivatives | (2 | ) | — | |||||
Total marketing revenues | $ | 1,233 | $ | 1,246 |
Three Months Ended March 31, | |||||||||||||||
2019 | 2018 | ||||||||||||||
Before Tax | After Tax | Before Tax | After Tax | ||||||||||||
($ in millions) | |||||||||||||||
Balance, beginning of period | $ | (80 | ) | $ | (23 | ) | $ | (114 | ) | (57 | ) | ||||
Losses reclassified to income | 10 | 10 | 10 | 10 | |||||||||||
Balance, end of period | $ | (70 | ) | $ | (13 | ) | (104 | ) | (47 | ) |
Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value | |||||||||||||
($ in millions) | ||||||||||||||||
As of March 31, 2019 | ||||||||||||||||
Derivative Assets (Liabilities): | ||||||||||||||||
Commodity assets | $ | — | $ | 89 | $ | 27 | $ | 116 | ||||||||
Commodity liabilities | — | (102 | ) | (24 | ) | (126 | ) | |||||||||
Utica divestiture contingent consideration | — | — | 7 | 7 | ||||||||||||
Total derivatives | $ | — | $ | (13 | ) | $ | 10 | $ | (3 | ) | ||||||
As of December 31, 2018 | ||||||||||||||||
Derivative Assets (Liabilities): | ||||||||||||||||
Commodity assets | $ | — | $ | 319 | $ | 103 | $ | 422 | ||||||||
Commodity liabilities | — | (131 | ) | (16 | ) | (147 | ) | |||||||||
Utica divestiture contingent consideration | — | — | 7 | 7 | ||||||||||||
Total derivatives | $ | — | $ | 188 | $ | 94 | $ | 282 |
Commodity Derivatives | Utica Contingent Consideration | |||||||
($ in millions) | ||||||||
Balance, as of January 1, 2019 | $ | 87 | $ | 7 | ||||
Total gains (losses) (realized/unrealized): | ||||||||
Included in earnings(a) | (88 | ) | — | |||||
Total purchases, issuances, sales and settlements: | ||||||||
Settlements | 4 | — | ||||||
Balance, as of March 31, 2019 | $ | 3 | $ | 7 | ||||
Balance, as of January 1, 2018 | $ | (15 | ) | $ | — | |||
Total gains (losses) (realized/unrealized): | ||||||||
Included in earnings(a) | (8 | ) | — | |||||
Total purchases, issuances, sales and settlements: | ||||||||
Settlements | (1 | ) | — | |||||
Balance, as of March 31, 2018 | $ | (24 | ) | $ | — |
(a) | Commodity Derivatives | ||||||||
2019 | 2018 | ||||||||
($ in millions) | |||||||||
Total gains (losses) included in earnings for the period | $ | (88 | ) | $ | (8 | ) | |||
Change in unrealized gains (losses) related to assets still held at reporting date | $ | (84 | ) | $ | (10 | ) |
Instrument Type | Unobservable Input | Range | Weighted Average | Fair Value March 31, 2019 | ||||||
($ in millions) | ||||||||||
Oil trades | Oil price volatility curves | 12.58% – 26.61% | 22.44% | $ | 17 | |||||
Natural gas trades | Natural gas price volatility curves | 19.91% – 54.81% | 20.11% | $ | (14 | ) |
14. | Investments |
15. | Other Operating Expenses |
16. | Restructuring and Other Termination Costs |
17. | Fair Value Measurements |
Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value | |||||||||||||
($ in millions) | ||||||||||||||||
As of March 31, 2019 | ||||||||||||||||
Financial Assets (Liabilities): | ||||||||||||||||
Other current assets | $ | 43 | $ | — | $ | — | $ | 43 | ||||||||
Other current liabilities | (44 | ) | — | — | (44 | ) | ||||||||||
Total | $ | (1 | ) | $ | — | $ | — | $ | (1 | ) | ||||||
As of December 31, 2018 | ||||||||||||||||
Financial Assets (Liabilities): | ||||||||||||||||
Other current assets | $ | 50 | $ | — | $ | — | $ | 50 | ||||||||
Other current liabilities | (51 | ) | — | — | (51 | ) | ||||||||||
Total | $ | (1 | ) | $ | — | $ | — | $ | (1 | ) |
18. | Condensed Consolidating Financial Information |
Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
CURRENT ASSETS: | ||||||||||||||||||||
Cash and cash equivalents | $ | 3 | $ | 1 | $ | 6 | $ | (2 | ) | $ | 8 | |||||||||
Other current assets | 53 | 1,208 | 96 | — | 1,357 | |||||||||||||||
Intercompany receivable, net | 6,350 | — | — | (6,350 | ) | — | ||||||||||||||
Total Current Assets | 6,406 | 1,209 | 102 | (6,352 | ) | 1,365 | ||||||||||||||
PROPERTY AND EQUIPMENT: | ||||||||||||||||||||
Oil and natural gas properties at cost, based on successful efforts accounting, net | — | 9,673 | 4,094 | — | 13,767 | |||||||||||||||
Other property and equipment, net | — | 1,077 | 79 | — | 1,156 | |||||||||||||||
Property and equipment held for sale, net | — | 16 | — | — | 16 | |||||||||||||||
Total Property and Equipment, Net | — | 10,766 | 4,173 | — | 14,939 | |||||||||||||||
LONG-TERM ASSETS: | ||||||||||||||||||||
Other long-term assets | 347 | 245 | 51 | (310 | ) | 333 | ||||||||||||||
Investments in subsidiaries and intercompany advances | 5,692 | 2,328 | — | (8,020 | ) | — | ||||||||||||||
TOTAL ASSETS | $ | 12,445 | $ | 14,548 | $ | 4,326 | $ | (14,682 | ) | $ | 16,637 | |||||||||
CURRENT LIABILITIES: | ||||||||||||||||||||
Current liabilities | $ | 521 | $ | 2,203 | $ | 208 | $ | (2 | ) | $ | 2,930 | |||||||||
Intercompany payable, net | — | 6,350 | — | (6,350 | ) | — | ||||||||||||||
Total Current Liabilities | 521 | 8,553 | 208 | (6,352 | ) | 2,930 | ||||||||||||||
LONG-TERM LIABILITIES: | ||||||||||||||||||||
Long-term debt, net | 7,775 | — | 1,392 | — | 9,167 | |||||||||||||||
Other long-term liabilities | 52 | 303 | 357 | (310 | ) | 402 | ||||||||||||||
Total Long-Term Liabilities | 7,827 | 303 | 1,749 | (310 | ) | 9,569 | ||||||||||||||
EQUITY: | ||||||||||||||||||||
Chesapeake stockholders’ equity | 4,097 | 5,692 | 2,328 | (8,020 | ) | 4,097 | ||||||||||||||
Noncontrolling interests | — | — | 41 | — | 41 | |||||||||||||||
Total Equity | 4,097 | 5,692 | 2,369 | (8,020 | ) | 4,138 | ||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 12,445 | $ | 14,548 | $ | 4,326 | $ | (14,682 | ) | $ | 16,637 |
Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
CURRENT ASSETS: | ||||||||||||||||||||
Cash and cash equivalents | $ | 4 | $ | 1 | $ | 1 | $ | (2 | ) | $ | 4 | |||||||||
Other current assets | 60 | 1,532 | 2 | — | 1,594 | |||||||||||||||
Intercompany receivable, net | 6,671 | — | — | (6,671 | ) | — | ||||||||||||||
Total Current Assets | 6,735 | 1,533 | 3 | (6,673 | ) | 1,598 | ||||||||||||||
PROPERTY AND EQUIPMENT: | ||||||||||||||||||||
Oil and natural gas properties at cost, based on successful efforts accounting, net | — | 9,664 | 48 | — | 9,712 | |||||||||||||||
Other property and equipment, net | — | 1,091 | — | — | 1,091 | |||||||||||||||
Property and equipment held for sale, net | — | 15 | — | — | 15 | |||||||||||||||
Total Property and Equipment, Net | — | 10,770 | 48 | — | 10,818 | |||||||||||||||
LONG-TERM ASSETS: | ||||||||||||||||||||
Other long-term assets | 26 | 293 | — | — | 319 | |||||||||||||||
Investments in subsidiaries and intercompany advances | 3,248 | 9 | — | (3,257 | ) | — | ||||||||||||||
TOTAL ASSETS | $ | 10,009 | $ | 12,605 | $ | 51 | $ | (9,930 | ) | $ | 12,735 | |||||||||
CURRENT LIABILITIES: | ||||||||||||||||||||
Current liabilities | $ | 523 | $ | 2,365 | $ | 1 | $ | (2 | ) | $ | 2,887 | |||||||||
Intercompany payable, net | — | 6,671 | — | (6,671 | ) | — | ||||||||||||||
Total Current Liabilities | 523 | 9,036 | 1 | (6,673 | ) | 2,887 | ||||||||||||||
LONG-TERM LIABILITIES: | ||||||||||||||||||||
Long-term debt, net | 7,341 | — | — | — | 7,341 | |||||||||||||||
Other long-term liabilities | 53 | 321 | — | — | 374 | |||||||||||||||
Total Long-Term Liabilities | 7,394 | 321 | — | — | 7,715 | |||||||||||||||
EQUITY: | ||||||||||||||||||||
Chesapeake stockholders’ equity | 2,092 | 3,248 | 9 | (3,257 | ) | 2,092 | ||||||||||||||
Noncontrolling interests | — | — | 41 | — | 41 | |||||||||||||||
Total Equity | 2,092 | 3,248 | 50 | (3,257 | ) | 2,133 | ||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 10,009 | $ | 12,605 | $ | 51 | $ | (9,930 | ) | $ | 12,735 |
Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
REVENUES: | ||||||||||||||||||||
Oil, natural gas and NGL | $ | — | $ | 850 | $ | 79 | $ | — | $ | 929 | ||||||||||
Marketing | — | 1,233 | — | — | 1,233 | |||||||||||||||
Total Revenues | — | 2,083 | 79 | — | 2,162 | |||||||||||||||
Other | — | 15 | — | — | 15 | |||||||||||||||
Gains on sales of assets | — | 19 | — | — | 19 | |||||||||||||||
Total Revenues and Other | — | 2,117 | 79 | — | 2,196 | |||||||||||||||
OPERATING EXPENSES: | ||||||||||||||||||||
Oil, natural gas and NGL production | — | 117 | 15 | — | 132 | |||||||||||||||
Oil, natural gas and NGL gathering, processing and transportation | — | 269 | 5 | — | 274 | |||||||||||||||
Production taxes | — | 28 | 6 | — | 34 | |||||||||||||||
Exploration | — | 20 | 4 | — | 24 | |||||||||||||||
Marketing | — | 1,230 | — | — | 1,230 | |||||||||||||||
General and administrative | — | 85 | 18 | — | 103 | |||||||||||||||
Provision for legal contingencies, net | — | — | — | — | — | |||||||||||||||
Depreciation, depletion and amortization | — | 435 | 84 | — | 519 | |||||||||||||||
Impairments | — | 1 | — | — | 1 | |||||||||||||||
Other operating income | — | 23 | 38 | — | 61 | |||||||||||||||
Total Operating Expenses | — | 2,208 | 170 | — | 2,378 | |||||||||||||||
INCOME FROM OPERATIONS | — | (91 | ) | (91 | ) | — | (182 | ) | ||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||||||
Interest expense | (154 | ) | 5 | (12 | ) | — | (161 | ) | ||||||||||||
Losses on investments | — | — | (1 | ) | — | (1 | ) | |||||||||||||
Other income | — | 9 | — | — | 9 | |||||||||||||||
Equity in net earnings of subsidiary | (177 | ) | (100 | ) | — | 277 | — | |||||||||||||
Total Other Expense | (331 | ) | (86 | ) | (13 | ) | 277 | (153 | ) | |||||||||||
LOSS BEFORE INCOME TAXES | (331 | ) | (177 | ) | (104 | ) | 277 | (335 | ) | |||||||||||
INCOME TAX BENEFIT | (310 | ) | — | (4 | ) | — | (314 | ) | ||||||||||||
NET LOSS | (21 | ) | (177 | ) | (100 | ) | 277 | (21 | ) | |||||||||||
Net income attributable to noncontrolling interests | — | — | — | — | — | |||||||||||||||
NET LOSS ATTRIBUTABLE TO CHESAPEAKE | (21 | ) | (177 | ) | (100 | ) | 277 | (21 | ) | |||||||||||
Other comprehensive income | — | 10 | — | — | 10 | |||||||||||||||
COMPREHENSIVE LOSS ATTRIBUTABLE TO CHESAPEAKE | $ | (21 | ) | $ | (167 | ) | $ | (100 | ) | $ | 277 | $ | (11 | ) |
Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
REVENUES: | ||||||||||||||||||||
Oil, natural gas and NGL | $ | — | $ | 1,238 | $ | 5 | $ | — | $ | 1,243 | ||||||||||
Marketing | — | 1,246 | — | — | 1,246 | |||||||||||||||
Total Revenues | — | 2,484 | 5 | — | 2,489 | |||||||||||||||
Other | — | 16 | — | — | 16 | |||||||||||||||
Gains on sales of assets | — | 19 | — | — | 19 | |||||||||||||||
Total Revenues and Other | — | 2,519 | 5 | — | 2,524 | |||||||||||||||
OPERATING EXPENSES: | ||||||||||||||||||||
Oil, natural gas and NGL production | — | 147 | — | — | 147 | |||||||||||||||
Oil, natural gas and NGL gathering, processing and transportation | — | 355 | 1 | — | 356 | |||||||||||||||
Production taxes | — | 31 | — | — | 31 | |||||||||||||||
Exploration | — | 81 | — | — | 81 | |||||||||||||||
Marketing | — | 1,268 | — | — | 1,268 | |||||||||||||||
General and administrative | — | 87 | — | — | 87 | |||||||||||||||
Restructuring and other termination costs | — | 38 | — | — | 38 | |||||||||||||||
Provision for legal contingencies, net | — | 5 | — | — | 5 | |||||||||||||||
Depreciation, depletion and amortization | — | 457 | 2 | — | 459 | |||||||||||||||
Impairments | — | 10 | — | — | 10 | |||||||||||||||
Total Operating Expenses | — | 2,479 | 3 | — | 2,482 | |||||||||||||||
INCOME FROM OPERATIONS | — | 40 | 2 | — | 42 | |||||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||||||
Interest expense | (162 | ) | — | — | — | (162 | ) | |||||||||||||
Gains on investments | — | 139 | — | — | 139 | |||||||||||||||
Other expense | — | (1 | ) | — | — | (1 | ) | |||||||||||||
Equity in net earnings of subsidiary | 179 | 1 | — | (180 | ) | — | ||||||||||||||
Total Other Income (Expense) | 17 | 139 | — | (180 | ) | (24 | ) | |||||||||||||
INCOME BEFORE INCOME TAXES | 17 | 179 | 2 | (180 | ) | 18 | ||||||||||||||
INCOME TAX EXPENSE | — | — | — | — | — | |||||||||||||||
NET INCOME | 17 | 179 | 2 | (180 | ) | 18 | ||||||||||||||
Net income attributable to noncontrolling interests | — | — | (1 | ) | — | (1 | ) | |||||||||||||
NET INCOME ATTRIBUTABLE TO CHESAPEAKE | 17 | 179 | 1 | (180 | ) | 17 | ||||||||||||||
Other comprehensive income | — | 10 | — | — | 10 | |||||||||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO CHESAPEAKE | $ | 17 | $ | 189 | $ | 1 | $ | (180 | ) | $ | 27 |
Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||||||||
Net Cash Provided By Operating Activities | $ | — | $ | 421 | $ | 36 | $ | (1 | ) | $ | 456 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||||||||
Drilling and completion costs | — | (406 | ) | (109 | ) | — | (515 | ) | ||||||||||||
Business combination, net | — | (381 | ) | 28 | — | (353 | ) | |||||||||||||
Acquisitions of proved and unproved properties | — | (6 | ) | — | — | (6 | ) | |||||||||||||
Proceeds from divestitures of proved and unproved properties | — | 26 | — | — | 26 | |||||||||||||||
Additions to other property and equipment | — | (6 | ) | (3 | ) | — | (9 | ) | ||||||||||||
Other investing activities | — | 1 | — | — | 1 | |||||||||||||||
Net Cash Used In Investing Activities | — | (772 | ) | (84 | ) | — | (856 | ) | ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||||||
Proceeds from revolving credit facility borrowings | 3,449 | — | 123 | — | 3,572 | |||||||||||||||
Payments on revolving credit facility borrowings | (3,026 | ) | — | (110 | ) | — | (3,136 | ) | ||||||||||||
Cash paid to purchase debt | (1 | ) | — | — | — | (1 | ) | |||||||||||||
Cash paid for preferred stock dividends | (23 | ) | — | — | — | (23 | ) | |||||||||||||
Other financing activities | (7 | ) | (1 | ) | (1 | ) | 1 | (8 | ) | |||||||||||
Intercompany advances, net | (393 | ) | 352 | 41 | — | — | ||||||||||||||
Net Cash Provided By (Used In) Financing Activities | (1 | ) | 351 | 53 | 1 | 404 | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | (1 | ) | — | 5 | — | 4 | ||||||||||||||
Cash and cash equivalents, beginning of period | 4 | 1 | 1 | (2 | ) | 4 | ||||||||||||||
Cash and cash equivalents, end of period | $ | 3 | $ | 1 | $ | 6 | $ | (2 | ) | $ | 8 |
Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||||||||
Net Cash Provided By Operating Activities | $ | 78 | $ | 509 | $ | 5 | $ | (4 | ) | $ | 588 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||||||||
Drilling and completion costs | — | (420 | ) | — | — | (420 | ) | |||||||||||||
Acquisitions of proved and unproved properties | — | (17 | ) | — | — | (17 | ) | |||||||||||||
Proceeds from divestitures of proved and unproved properties | — | 319 | — | — | 319 | |||||||||||||||
Additions to other property and equipment | — | (3 | ) | — | — | (3 | ) | |||||||||||||
Other investing activities | — | 142 | — | — | 142 | |||||||||||||||
Net Cash Provided by Investing Activities | — | 21 | — | — | 21 | |||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||||||
Proceeds from revolving credit facility borrowings | 2,904 | — | — | — | 2,904 | |||||||||||||||
Payments on revolving credit facility borrowings | (3,485 | ) | — | — | — | (3,485 | ) | |||||||||||||
Cash paid for preferred stock dividends | (23 | ) | — | — | — | (23 | ) | |||||||||||||
Other financing activities | 25 | (2 | ) | (4 | ) | (25 | ) | (6 | ) | |||||||||||
Intercompany advances, net | 530 | (528 | ) | (2 | ) | — | — | |||||||||||||
Net Cash Used In Financing Activities | (49 | ) | (530 | ) | (6 | ) | (25 | ) | (610 | ) | ||||||||||
Net increase (decrease) in cash and cash equivalents | 29 | — | (1 | ) | (29 | ) | (1 | ) | ||||||||||||
Cash and cash equivalents, beginning of period | 5 | 1 | 2 | (3 | ) | 5 | ||||||||||||||
Cash and cash equivalents, end of period | $ | 34 | $ | 1 | $ | 1 | $ | (32 | ) | $ | 4 |
19. | Subsequent Events |
Amount of Notes Exchanged | ||||
($ in millions) | ||||
6.625% senior notes due 2020 | $ | 229 | ||
6.875% senior notes due 2020 | 134 | |||
6.125% senior notes due 2021 | 381 | |||
5.375% senior notes due 2021 | 140 | |||
Total | $ | 884 |
ITEM 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
• | reduce total leverage to achieve long-term net debt/EBITDAX of 2x; |
• | increase net cash provided by operating activities to fund capital expenditures; |
• | improve margins through financial discipline and operating efficiencies; and |
• | maintain industry leading environmental and safety performance. |
• | acquired WildHorse, an oil and gas company with operations in the Eagle Ford Shale and Austin Chalk formations in southeast Texas, for approximately 717.4 million shares of our common stock and $381 million in cash, and the acquisition of WildHorse’s debt of $1.4 billion as of February 1, 2019. We anticipate the acquisition to materially increase our oil production and enhance our oil production mix as well as significantly reduce costs due to operational synergies that we believe the combined company will achieve. We expect that the WildHorse Merger will provide substantial cost savings with $200 million to $280 million in projected average annual savings, totaling $1 billion to $1.5 billion by 2023, due to operational and capital efficiencies as a result of Chesapeake’s significant expertise with unconventional assets and technical and operational excellence; |
• | extended our debt maturity profile by privately exchanging approximately $884 million aggregate principal amount of our existing senior notes due in 2020 and 2021 for approximately $919 million aggregate principal amount of new 8.00% Senior Notes due 2026; and |
• | improved our cost structure in the Current Quarter compared to the Prior Quarter by reducing combined production, general and administrative, and gathering, processing and transportation expenses by $81 million, or 14%. The primary driver in the reduction is lower gathering, processing and transportation expenses due to certain 2018 divestitures. |
Oil Derivatives(a) | |||||||
Year | Type of Derivative Instrument | Notional Volume | Average NYMEX Price | ||||
(mmbbls) | |||||||
2019 | Swaps | 17 | $59.38 | ||||
2019 | Two-way collars | 4 | $58.00/$67.75 | ||||
2019 | Basis protection swaps | 6 | $5.69 | ||||
2019 | Puts | 2 | $54.08 | ||||
2020 | Swaps | 11 | $59.32 | ||||
2020 | Two-way collars | 2 | $65.00/$83.25 | ||||
2020 | Swaptions(b) | 4 | $62.45 | ||||
Natural Gas Derivatives(a) | |||||||
Year | Type of Derivative Instrument | Notional Volume | Average NYMEX Price | ||||
(bcf) | |||||||
2019 | Swaps | 344 | $2.84 | ||||
2019 | Two-way collars | 28 | $2.75/$2.91 | ||||
2019 | Three-way collars | 66 | $2.50/$2.80/$3.10 | ||||
2019 | Calls | 17 | $12.00 | ||||
2019 | Basis protection swaps | 38 | ($0.62) | ||||
2020 | Swaps | 250 | $2.75 | ||||
2020 | Call swaptions(c) | 106 | $2.77 | ||||
2020 | Calls | 22 | $12.00 |
(a) | Includes amounts settled in April and May 2019. |
(b) | Call options expire June 7, 2019 and December 31, 2019. |
(c) | Call options expire December 31, 2019. |
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
($ in millions) | ||||||||
Cash provided by operating activities | $ | 456 | $ | 588 | ||||
Proceeds from divestitures of proved and unproved properties, net | 26 | 319 | ||||||
Proceeds from revolving credit facility borrowings, net | 436 | — | ||||||
Proceeds from sales of other property and equipment, net | 1 | 68 | ||||||
Proceeds from sales of investments | — | 74 | ||||||
Total sources of cash and cash equivalents | $ | 919 | $ | 1,049 |
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
($ in millions) | ||||||||
Oil and Natural Gas Expenditures: | ||||||||
Drilling and completion costs | $ | 515 | $ | 420 | ||||
Acquisitions of proved and unproved properties | 6 | 17 | ||||||
Total oil and natural gas expenditures | 521 | 437 | ||||||
Other Uses of Cash and Cash Equivalents: | ||||||||
Payments on revolving credit facility borrowings, net | — | 581 | ||||||
Business combination, net | 353 | — | ||||||
Additions to other property and equipment | 9 | 3 | ||||||
Cash paid to purchase debt | 1 | — | ||||||
Dividends paid | 23 | 23 | ||||||
Other | 8 | 6 | ||||||
Total other uses of cash and cash equivalents | 394 | 613 | ||||||
Total uses of cash and cash equivalents | $ | 915 | $ | 1,050 |
Three Months Ended March 31, 2019 | |||||||||||||||||||||||||||
Oil | Natural Gas | NGL | Total | ||||||||||||||||||||||||
mbbl per day | $/bbl | mmcf per day | $/mcf | mbbl per day | $/bbl | mboe per day | % | $/boe | |||||||||||||||||||
Marcellus | — | — | 948 | 3.54 | — | — | 158 | 33 | 21.23 | ||||||||||||||||||
Haynesville | — | — | 759 | 2.94 | — | — | 126 | 26 | 17.63 | ||||||||||||||||||
Eagle Ford | 62 | 59.77 | 149 | 3.58 | 24 | 21.69 | 110 | 23 | 42.97 | ||||||||||||||||||
Brazos Valley(a) | 23 | 59.32 | 23 | 2.04 | 3 | 8.25 | 30 | 6 | 47.55 | ||||||||||||||||||
Powder River Basin | 16 | 50.90 | 82 | 3.38 | 6 | 18.57 | 36 | 7 | 33.72 | ||||||||||||||||||
Mid-Continent | 8 | 52.75 | 61 | 2.82 | 6 | 21.69 | 24 | 5 | 30.57 | ||||||||||||||||||
Retained assets(b) | 109 | 57.81 | 2,022 | 3.27 | 39 | 20.05 | 484 | 100 | 28.23 | ||||||||||||||||||
Divested assets | — | — | 1 | — | — | — | — | — | 6.82 | ||||||||||||||||||
Total | 109 | 57.80 | 2,023 | 3.27 | 39 | 20.03 | 484 | 100 | % | 28.22 | |||||||||||||||||
Three Months Ended March 31, 2018 | |||||||||||||||||||||||||||
Oil | Natural Gas | NGL | Total | ||||||||||||||||||||||||
mbbl per day | $/bbl | mmcf per day | $/mcf | mbbl per day | $/bbl | mboe per day | % | $/boe | |||||||||||||||||||
Marcellus | — | — | 874 | 3.74 | — | — | 146 | 26 | 22.45 | ||||||||||||||||||
Haynesville | — | — | 832 | 2.80 | — | — | 139 | 25 | 16.79 | ||||||||||||||||||
Eagle Ford | 61 | 66.16 | 141 | 3.30 | 18 | 24.72 | 102 | 19 | 48.21 | ||||||||||||||||||
Powder River Basin | 7 | 62.87 | 47 | 2.82 | 3 | 28.77 | 18 | 3 | 37.66 | ||||||||||||||||||
Mid-Continent | 8 | 61.92 | 62 | 2.68 | 4 | 26.06 | 23 | 4 | 34.74 | ||||||||||||||||||
Retained assets(b) | 76 | 65.36 | 1,956 | 3.25 | 25 | 25.38 | 428 | 77 | 28.07 | ||||||||||||||||||
Divested assets | 16 | 60.98 | 510 | 2.92 | 26 | 25.53 | 126 | 23 | 24.54 | ||||||||||||||||||
Total | 92 | 64.61 | 2,466 | 3.18 | 51 | 25.45 | 554 | 100 | % | 27.27 | |||||||||||||||||
(a) | Average production per day since the date of the WildHorse acquisition on February 1, 2019, 59 days, was 35 mbbl, 35 mmcf and 5 mbbl for oil, natural gas and NGL, respectively. |
Three Months Ended March 31, | |||||||||||
2019 | 2018 | Change | |||||||||
($ in millions) | |||||||||||
Oil | $ | 566 | $ | 537 | 5 | % | |||||
Natural gas | 595 | 706 | (16 | )% | |||||||
NGL | 69 | 117 | (41 | )% | |||||||
Oil, natural gas and NGL sales | $ | 1,230 | $ | 1,360 | (10 | )% |
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
($ in millions) | ||||||||
Oil derivatives – realized gains (losses) | $ | 10 | $ | (64 | ) | |||
Oil derivatives – unrealized gains (losses) | (269 | ) | (22 | ) | ||||
Total gains (losses) on oil derivatives | (259 | ) | (86 | ) | ||||
Natural gas derivatives – realized gains (losses) | (36 | ) | 67 | |||||
Natural gas derivatives – unrealized gains (losses) | (6 | ) | (99 | ) | ||||
Total gains (losses) on natural gas derivatives | (42 | ) | (32 | ) | ||||
NGL derivatives – realized gains (losses) | — | (1 | ) | |||||
NGL derivatives – unrealized gains (losses) | — | 2 | ||||||
Total gains (losses) on NGL derivatives | — | 1 | ||||||
Total gains (losses) on oil, natural gas and NGL derivatives | $ | (301 | ) | $ | (117 | ) |
Three Months Ended March 31, | |||||||||||
2019 | 2018 | Change | |||||||||
($ in millions) | |||||||||||
Marketing revenues | $ | 1,233 | $ | 1,246 | (1 | )% | |||||
Marketing expenses | 1,230 | 1,268 | (3 | )% | |||||||
Marketing gross margin | $ | 3 | $ | (22 | ) | 114 | % |
Three Months Ended March 31, | |||||||||||
2019 | 2018 | change | |||||||||
($ in millions) | |||||||||||
Other revenue | $ | 15 | $ | 16 | (6 | )% |
Three Months Ended March 31, | |||||||||||
2019 | 2018 | Change | |||||||||
($ in millions) | |||||||||||
Marcellus | 9 | 9 | — | % | |||||||
Haynesville | 14 | 16 | (13 | )% | |||||||
Eagle Ford | 42 | 48 | (13 | )% | |||||||
Brazos Valley | 14 | — | n/a | ||||||||
Powder River Basin | 14 | 12 | 17 | % | |||||||
Mid-Continent | 26 | 27 | (4 | )% | |||||||
Retained Assets(a) | 119 | 112 | 6 | % | |||||||
Divested Assets | (3 | ) | 23 | (113 | )% | ||||||
Total | 116 | 135 | (14 | )% | |||||||
Ad valorem tax | 16 | 12 | 33 | % | |||||||
Total oil, natural gas and NGL production expenses | $ | 132 | $ | 147 | (10 | )% | |||||
($ per boe) | |||||||||||
Marcellus | $ | 0.63 | $ | 0.71 | (11 | )% | |||||
Haynesville | $ | 1.22 | $ | 1.28 | (5 | )% | |||||
Eagle Ford | $ | 4.15 | $ | 5.21 | (20 | )% | |||||
Brazos Valley | $ | 5.38 | $ | — | n/a | ||||||
Powder River Basin | $ | 4.37 | $ | 7.19 | (39 | )% | |||||
Mid-Continent | $ | 11.80 | $ | 12.73 | (7 | )% | |||||
Retained Assets(a) | $ | 2.71 | $ | 2.90 | (7 | )% | |||||
Divested Assets | $ | — | $ | 2.03 | (100 | )% | |||||
Total | $ | 2.65 | $ | 2.70 | (2 | )% | |||||
Ad valorem tax | $ | 0.37 | $ | 0.24 | 54 | % | |||||
Total oil, natural gas and NGL production expenses per boe | $ | 3.02 | $ | 2.94 | 3 | % |
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
($ in millions, except per unit) | ||||||||
Oil, natural gas and NGL gathering, processing and transportation expenses | $ | 274 | $ | 356 | ||||
Oil ($ per bbl) | $ | 3.47 | $ | 4.18 | ||||
Natural gas ($ per mcf) | $ | 1.21 | $ | 1.27 | ||||
NGL ($ per bbl) | $ | 5.57 | $ | 8.83 | ||||
Total ($ per boe) | $ | 6.29 | $ | 7.15 |
Three Months Ended March 31, | |||||||||||
2019 | 2018 | Change | |||||||||
($ in millions, except per unit) | |||||||||||
Production taxes | $ | 34 | $ | 31 | 10 | % | |||||
Production taxes per boe | $ | 0.78 | $ | 0.62 | 26 | % |
Three Months Ended March 31, | |||||||||||
2019 | 2018 | Change | |||||||||
($ in millions, except per unit) | |||||||||||
Impairments of unproved properties | $ | 18 | 47 | (62 | )% | ||||||
Dry hole expense | — | 21 | (100 | )% | |||||||
Geological and geophysical expense and other | 6 | 13 | (54 | )% | |||||||
Exploration expense | $ | 24 | 81 | (70 | )% | ||||||
Exploration expenses per boe | $ | 0.55 | $ | 1.62 | (66 | )% |
Three Months Ended March 31, | |||||||||||
2019 | 2018 | Change | |||||||||
($ in millions, except per unit) | |||||||||||
Gross overhead | $ | 195 | $ | 188 | 4 | % | |||||
Allocated to production expenses | (35 | ) | (40 | ) | (13 | )% | |||||
Allocated to marketing expenses | (4 | ) | (6 | ) | (33 | )% | |||||
Allocated to exploration expenses | (4 | ) | (1 | ) | 300 | % | |||||
Capitalized general and administrative expenses | (13 | ) | (16 | ) | (19 | )% | |||||
Reimbursed from third parties | (36 | ) | (38 | ) | (5 | )% | |||||
General and administrative expenses, net | $ | 103 | $ | 87 | 18 | % | |||||
General and administrative expenses, net per boe | $ | 2.34 | $ | 1.74 | 34 | % |
Three Months Ended March 31, | |||||||||||
2019 | 2018 | Change | |||||||||
($ in millions, except per unit) | |||||||||||
Depreciation, depletion and amortization | $ | 519 | $ | 459 | 13 | % | |||||
Depreciation, depletion and amortization per boe | $ | 11.90 | $ | 9.20 | 29 | % |
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
($ in millions) | ||||||||
Other operating expense | $ | 61 | $ | — |
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
($ in millions, except per unit) | ||||||||
Interest expense on senior notes | $ | 144 | $ | 144 | ||||
Interest expense on term loan | — | 28 | ||||||
Amortization of loan discount, issuance costs and other | 6 | 8 | ||||||
Amortization of premium | — | (24 | ) | |||||
Interest expense on revolving credit facilities | 17 | 10 | ||||||
Realized gains on interest rate derivatives | (1 | ) | (1 | ) | ||||
Unrealized losses on interest rate derivatives | 1 | 1 | ||||||
Capitalized interest | (6 | ) | (4 | ) | ||||
Total interest expense | $ | 161 | $ | 162 | ||||
Interest expense per boe(a) | $ | 3.67 | $ | 3.25 | ||||
Average senior notes borrowings | $ | 8,207 | $ | 7,967 | ||||
Average credit facilities borrowings | $ | 1,021 | $ | 598 | ||||
Average term loan borrowings | $ | — | $ | 1,233 |
(a) | Includes the effects of realized (gains) losses from interest rate derivatives, excludes the effects of unrealized (gains) losses from interest rate derivatives and is shown net of amounts capitalized. |
• | the volatility of oil, natural gas and NGL prices; |
• | uncertainties inherent in estimating quantities of oil, natural gas and NGL reserves and projecting future rates of production and the amount and timing of development expenditures; |
• | our ability to replace reserves and sustain production; |
• | drilling and operating risks and resulting liabilities; |
• | our ability to generate profits or achieve targeted results in drilling and well operations; |
• | the limitations our level of indebtedness may have on our financial flexibility; |
• | our inability to access the capital markets on favorable terms; |
• | the availability of cash flows from operations and other funds to finance reserve replacement costs or satisfy our debt obligations; |
• | adverse developments or losses from pending or future litigation and regulatory proceedings, including royalty claims; |
• | effects of environmental protection laws and regulation on our business; |
• | terrorist activities and/or cyber-attacks adversely impacting our operations; |
• | effects of acquisitions and dispositions, including our acquisition of WildHorse and our ability to realize related synergies and cost savings; |
• | effects of purchase price adjustments and indemnity obligations; and |
• | other factors that are described under Risk Factors in Item 1A of our 2018 Form 10-K. |
ITEM 3. | Quantitative and Qualitative Disclosures About Market Risk |
• | Swaps: We receive a fixed price and pay a floating market price to the counterparty for the hedged commodity. In exchange for higher fixed prices on certain of our swap trades, we may sell call options and call swaptions. |
• | Options: We occasionally sell and buy call and put options in exchange for a premium. At the time of settlement, if the market price exceeds the fixed price of the call option, we pay the counterparty the excess on sold call options and we receive the excess on bought call options. At the time of settlement, if the market price is lower than the fixed price of the put option, we receive the difference on bought put options and pay the counterparty the difference on sold put options. If the market price settles below the fixed price of the call option or above the fixed price of the put option, no payment is due from either party. |
• | Call Swaptions: We sell call swaptions to counterparties in exchange for a premium that allow the counterparty, on a specific date, to extend an existing fixed-price swap for a certain period of time |
• | Collars: These instruments contain a fixed floor price (put) and ceiling price (call). If the market price exceeds the call strike price or falls below the put strike price, we receive the fixed price and pay the market price. If the market price is between the put and the call strike prices, no payments are due from either party. Three-way collars include the sale by us of an additional put option in exchange for a more favorable strike price on the call option. This eliminates the counterparty’s downside exposure below the second put option strike price. |
• | Basis Protection Swaps: These instruments are arrangements that guarantee a fixed price differential to NYMEX from a specified delivery point. We receive the fixed price differential and pay the floating market price differential to the counterparty for the hedged commodity. |
Weighted Average Price | Fair Value | ||||||||||||||||||||||
Volume | Fixed | Call | Put | Differential | Asset (Liability) | ||||||||||||||||||
(mmbbl) | ($ per bbl) | ($ in millions) | |||||||||||||||||||||
Oil: | |||||||||||||||||||||||
Swaps: | |||||||||||||||||||||||
Short-term | 16 | $ | 58.14 | $ | — | $ | — | $ | — | $ | (32 | ) | |||||||||||
Long-term | 5 | $ | 58.36 | $ | — | $ | — | $ | — | 1 | |||||||||||||
Collars: | |||||||||||||||||||||||
Short-term | 5 | $ | — | $ | 69.20 | $ | 58.66 | $ | — | 11 | |||||||||||||
Long-term | 1 | $ | — | $ | 83.25 | $ | 65.00 | $ | — | 13 | |||||||||||||
Call Swaptions: | |||||||||||||||||||||||
Short-term(a) | 2 | $ | 63.15 | $ | — | $ | — | $ | — | (7 | ) | ||||||||||||
Put Options (bought): | |||||||||||||||||||||||
Short-term | 2 | $ | — | $ | — | $ | 54.08 | $ | — | (5 | ) | ||||||||||||
Basis Protection Swaps: | |||||||||||||||||||||||
Short-term | 6 | $ | — | $ | — | $ | — | $ | 5.69 | 4 | |||||||||||||
Total Oil | (15 | ) | |||||||||||||||||||||
(bcf) | ($ per mcf) | ||||||||||||||||||||||
Natural Gas: | |||||||||||||||||||||||
Swaps: | |||||||||||||||||||||||
Short-term | 406 | $ | 2.83 | $ | — | $ | — | $ | — | 2 | |||||||||||||
Long-term | 188 | $ | 2.75 | $ | — | $ | — | $ | — | 19 | |||||||||||||
Three-Way Collars: | |||||||||||||||||||||||
Short-term | 66 | $ | — | $ | 3.10 | $2.50/$2.80 | — | 3 | |||||||||||||||
Collars: | |||||||||||||||||||||||
Short-term | 28 | $ | — | $ | 2.91 | $ | 2.75 | $ | — | — | |||||||||||||
Call Options (sold): | |||||||||||||||||||||||
Short-term | 22 | $ | — | $ | 12.00 | $ | — | $ | — | — | |||||||||||||
Long-term | 17 | $ | — | $ | 12.00 | $ | — | $ | — | — | |||||||||||||
Call Swaptions: | |||||||||||||||||||||||
Short-term(a) | 106 | $ | 2.77 | $ | — | — | — | (18 | ) | ||||||||||||||
Basis Protection Swaps: | |||||||||||||||||||||||
Short-term | 38 | $ | — | $ | — | $ | (0.62 | ) | $ | (0.55 | ) | (1 | ) | ||||||||||
Total Natural Gas | 5 | ||||||||||||||||||||||
Total Commodities | (10 | ) | |||||||||||||||||||||
Contingent Consideration: | |||||||||||||||||||||||
Utica Divestiture: | |||||||||||||||||||||||
Short-term | — | $ | — | $ | — | $ | — | $ | — | 7 | |||||||||||||
$ | (3 | ) |
(a) | Call swaptions include 2020 volumes for sold call options that expire December 2019. |
March 31, 2019 | ||||
($ in millions) | ||||
Short-term | $ | (24 | ) | |
Long-term | (27 | ) | ||
Total | $ | (51 | ) |
March 31, 2019 | ||||
($ in millions) | ||||
Fair value of contracts outstanding, as of January 1, 2019 | $ | 282 | ||
Change in fair value of contracts | (270 | ) | ||
Contracts realized or otherwise settled | (15 | ) | ||
Fair value of contracts outstanding, as of March 31, 2019 | $ | (3 | ) |
Years of Maturity | |||||||||||||||||||||||||||
2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | Total | |||||||||||||||||||||
($ in millions) | |||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||
Debt – fixed rate | $ | — | $ | 664 | $ | 815 | $ | 451 | $ | 338 | $ | 5,800 | $ | 8,068 | |||||||||||||
Average interest rate | — | % | 6.71 | % | 5.88 | % | 4.88 | % | 5.75 | % | 7.14 | % | 6.80 | % | |||||||||||||
Debt – variable rate | $ | 380 | $ | — | $ | 688 | $ | — | $ | 842 | $ | — | $ | 1,910 | |||||||||||||
Average interest rate | 6.04 | % | — | % | 4.51 | % | — | % | 4.22 | % | — | % | 4.69 | % |
ITEM 4. | Controls and Procedures |
ITEM 1. | Legal Proceedings |
ITEM 1A. | Risk Factors |
ITEM 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Period | Total Number of Shares Purchased(a) | Average Price Paid Per Share(a) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs | ||||||||||
($ in millions) | ||||||||||||||
January 1, 2019 through January 31, 2019 | 27,137 | $ | 2.32 | — | $ | — | ||||||||
February 1, 2019 through February 28, 2019 | 2,512,336 | $ | 2.75 | — | $ | — | ||||||||
March 1, 2019 through March 31, 2019 | — | $ | — | — | $ | — | ||||||||
Total | 2,539,473 | $ | — | — |
(a) | Includes shares of common stock purchased on behalf of our deferred compensation plan. |
ITEM 3. | Defaults Upon Senior Securities |
ITEM 4. | Mine Safety Disclosures |
ITEM 5. | Other Information |
ITEM 6. | Exhibits |
Incorporated by Reference | ||||||||||||
Exhibit Number | Exhibit Description | Form | SEC File Number | Exhibit | Filing Date | Filed or Furnished Herewith | ||||||
3.1.1 | 10-K | 001-13726 | 3.1.1 | 2/27/2019 | ||||||||
3.1.2 | 10-Q | 001-13726 | 3.1.4 | 11/10/2008 | ||||||||
3.1.3 | 10-Q | 001-13726 | 3.1.6 | 8/11/2008 | ||||||||
3.1.4 | 8-K | 001-13726 | 3.2 | 5/20/2010 | ||||||||
3.1.5 | 10-Q | 001-13726 | 3.1.5 | 8/9/2010 | ||||||||
3.2 | 8-K | 001-13726 | 3.2 | 6/19/2014 | ||||||||
4.1 | 8-K | 001-37964 | 4.1 | 2/1/2017 | ||||||||
4.2 | 8-K | 001-37964 | 4.1 | 2/1/2019 | ||||||||
4.3 | 10-Q | 001-37964 | 4.6 | 8/9/2018 | ||||||||
4.4 | 10-K | 001-37964 | 4.6 | 3/12/2018 | ||||||||
4.5 | 10-Q | 001-37964 | 4.6 | 8/10/2017 | ||||||||
4.6 | 8-K | 001-13726 | 4.2 | 4/5/2019 | ||||||||
4.7 | 8-K | 001-13726 | 4.4 | 4/5/2019 | ||||||||
10.1 | 8-K | 001-37964 | 10.1 | 2/1/2019 |
10.2 | 10-Q | 001-37964 | 10.1 | 11/8/2018 | ||||||||
10.3 | 8-K | 001-37964 | 10.1 | 10/30/2018 | ||||||||
10.4 | 8-K | 001-37964 | 10.2 | 10/30/2018 | ||||||||
10.5 | 8-K | 001-37964 | 10.3 | 12/22/2016 | ||||||||
10.6 | 8-K | 001-37964 | 10.1 | 10/5/2017 | ||||||||
10.7 | 8-K | 001-37964 | 10.1 | 7/7/2017 | ||||||||
10.8 | 10-Q | 001-37964 | 10.1 | 5/15/2017 | ||||||||
10.9 | 8-K | 001-13726 | 10.1 | 2/1/2019 | ||||||||
10.10† | X | |||||||||||
10.11† | 10-K | 001-13726 | 10.11 | 2/27/2019 | ||||||||
10.12† | 10-K | 001-13726 | 10.3.2 | 2/27/2019 | ||||||||
31.1 | X | |||||||||||
31.2 | X | |||||||||||
32.1 | X | |||||||||||
32.2 | X | |||||||||||
95.1 | X | |||||||||||
101 INS | XBRL Instance Document. | X | ||||||||||
101 SCH | XBRL Taxonomy Extension Schema Document. | X | ||||||||||
101 CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | X | ||||||||||
101 DEF | XBRL Taxonomy Extension Definition Linkbase Document. | X | ||||||||||
101 LAB | XBRL Taxonomy Extension Labels Linkbase Document. | X | ||||||||||
101 PRE | XBRL Taxonomy Extension Presentation Linkbase Document. | X | ||||||||||
† | Management contract or compensatory plan or arrangement |
CHESAPEAKE ENERGY CORPORATION | |||
Date: May 9, 2019 | By: | /s/ ROBERT D. LAWLER | |
Robert D. Lawler President and Chief Executive Officer |
Date: May 9, 2019 | By: | /s/ DOMENIC J. DELL’OSSO, JR. | |
Domenic J. Dell’Osso, Jr. Executive Vice President and Chief Financial Officer |
Notice of PSU Award | Chesapeake Energy Corporation ID: 73-1395733 6100 N. Western Avenue Oklahoma City, OK 73118 | |
Name: Address: | Plan: 2014 Long Term Incentive Plan ID: |
Grant Date Value of Target Award: | $ | ________ | ||||
Grant Date Common Stock Value: | $ | ________ | ||||
Target PSU Allocation: | _______________ | |||||
1-year performance period PSUs: | _______________ | |||||
2-year performance period PSUs: | _______________ | |||||
3-year performance period PSUs: | _______________ | |||||
Last Day of the Performance Period: | ||||||
1-year performance period PSUs: | 12/31/_________ | |||||
2-year performance period PSUs: | 12/31/_________ | |||||
3-year performance period PSUs: | 12/31/_________ | |||||
Payment Date (no later than): | ||||||
1-year performance period PSUs: | 03/15/_________ | |||||
2-year performance period PSUs: | 03/15/_________ | |||||
3-year performance period PSUs: | 03/15/_________ |
Payout % | 1-Year Perf. Period Ratio | 2-Year Perf. Period Ratio | 3-Year Perf. Period Ratio | |||
0 – 100% Payout | ||||||
100% Payout | ||||||
100% – 200% Payout |
1. | Time Vesting Schedule: Your Award will vest in increments on the date(s) shown below. Vesting entitles you to such vested PSUs, subject to final adjustment following the last day of each Performance Period to reflect the level of performance respecting the Performance Measures as described above. You must continuously provide services to the Company on the dates below in order for the corresponding PSUs to vest. In no event shall any payment be made prior to the end of an applicable Performance Period. |
PSUs | Time Vesting Date | |
[Date] |
PSUs | Time Vesting Date | |
[Date] |
PSUs | Time Vesting Date | |
[Date] |
Accepted and Agreed to this ______ day of ___________,2019. | |
By: |
Exhibit 31.1 |
1. | I have reviewed this Quarterly Report on Form 10-Q of Chesapeake Energy Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
May 9, 2019 | By: | /s/ ROBERT D. LAWLER |
Robert D. Lawler | ||
President and Chief Executive Officer |
Exhibit 31.2 |
1. | I have reviewed this Quarterly Report on Form 10-Q of Chesapeake Energy Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
May 9, 2019 | By: | /s/ DOMENIC J. DELL’OSSO, JR. |
Domenic J. Dell’Osso, Jr. | ||
Executive Vice President and Chief Financial Officer |
Exhibit 32.1 |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
May 9, 2019 | By: | /s/ ROBERT D. LAWLER |
Robert D. Lawler President and Chief Executive Officer |
Exhibit 32.2 |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
May 9, 2019 | By: | /s/ DOMENIC J. DELL’OSSO, JR. |
Domenic J. Dell’Osso, Jr. | ||
Executive Vice President and Chief Financial Officer |
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
May 06, 2019 |
|
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | CHK | |
Entity Registrant Name | CHESAPEAKE ENERGY CORPORATION | |
Entity Central Index Key | 0000895126 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 1,633,677,751 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares outstanding (shares) | 0 | 5,603,458 |
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 3,000,000,000 | 2,000,000,000 |
Common stock, shares issued | 1,633,624,993 | 913,715,512 |
Treasury stock, common shares | 5,675,230 | 3,246,553 |
VIE, cash and cash equivalents | $ 8 | $ 4 |
VIE, proved oil and natural gas properties | 29,259 | 25,407 |
VIE, accumulated depreciation, depletion and amortization | (18,396) | (17,886) |
VIE, other current liabilities | 1,591 | 1,599 |
Variable Interest Entities, Primary Beneficiary [Member] | ||
VIE, cash and cash equivalents | 1 | 1 |
VIE, proved oil and natural gas properties | 755 | 755 |
VIE, accumulated depreciation, depletion and amortization | (708) | (707) |
VIE, other current liabilities | $ 1 | $ 2 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions |
3 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
[2] | |||||||
Statement of Comprehensive Income [Abstract] | |||||||||
NET INCOME (LOSS) | $ (21) | $ 18 | [1] | ||||||
OTHER COMPREHENSIVE INCOME, NET OF INCOME TAX: | |||||||||
Unrealized gains on derivative instruments | [3] | 0 | 0 | ||||||
Reclassification of losses on settled derivative instruments | 10 | 10 | [3] | ||||||
Other Comprehensive Income | 10 | 10 | |||||||
COMPREHENSIVE INCOME (LOSS) | (11) | 28 | |||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 0 | (1) | |||||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE | $ (11) | $ 27 | |||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions |
3 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
[1] | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||
NET INCOME (LOSS) | $ (21) | $ 18 | [2] | ||||||
ADJUSTMENTS TO RECONCILE NET INCOME (LOSS) TO CASH PROVIDED BY OPERATING ACTIVITIES: | |||||||||
Depreciation, depletion and amortization | 519 | 459 | [3] | ||||||
Deferred income tax benefit | (314) | 0 | |||||||
Derivative losses, net | 304 | 117 | |||||||
Cash receipts on derivative settlements, net | 14 | 13 | |||||||
Stock-based compensation | 6 | 9 | |||||||
Gains on sales of assets | (19) | (19) | [3] | ||||||
Impairments | 1 | 10 | [3] | ||||||
Exploration | 18 | 68 | |||||||
(Gains) losses on investments | 1 | (139) | |||||||
Other | 40 | (36) | |||||||
Changes in assets and liabilities | (93) | 88 | |||||||
Net Cash Provided By Operating Activities | 456 | 588 | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||
Drilling and completion costs | (515) | (420) | |||||||
Business combination, net | (353) | 0 | |||||||
Acquisitions of proved and unproved properties | (6) | (17) | |||||||
Proceeds from divestitures of proved and unproved properties | 26 | 319 | |||||||
Additions to other property and equipment | (9) | (3) | |||||||
Proceeds from sales of other property and equipment | 1 | 68 | |||||||
Proceeds from sales of investments | 0 | 74 | |||||||
Net Cash Provided By (Used In) Investing Activities | (856) | 21 | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||
Proceeds from revolving credit facility borrowings | 3,572 | 2,904 | |||||||
Payments on revolving credit facility borrowings | (3,136) | (3,485) | |||||||
Cash paid to purchase debt | (1) | ||||||||
Cash paid for preferred stock dividends | (23) | (23) | |||||||
Distributions to noncontrolling interest owners | 0 | (2) | |||||||
Other | (8) | (4) | |||||||
Net Cash Provided By (Used In) Financing Activities | 404 | (610) | |||||||
Net increase (decrease) in cash and cash equivalents | 4 | (1) | |||||||
Cash and cash equivalents, beginning of period | 4 | 5 | |||||||
Cash and cash equivalents, end of period | 8 | 4 | |||||||
SUPPLEMENTAL CASH FLOW INFORMATION: | |||||||||
Interest paid, net of capitalized interest | 145 | 170 | |||||||
Income taxes paid, net of refunds received | (5) | 0 | |||||||
SUPPLEMENTAL DISCLOSURE OF SIGNIFICANT NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||||||||
Common stock issued for business combination | 2,037 | 0 | |||||||
Change in accrued drilling and completion costs | |||||||||
SUPPLEMENTAL DISCLOSURE OF SIGNIFICANT NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||||||||
Change in non-cash investing and financing activities | 39 | 103 | |||||||
Change in divested proved and unproved properties | |||||||||
SUPPLEMENTAL DISCLOSURE OF SIGNIFICANT NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||||||||
Change in non-cash investing and financing activities | $ 2 | $ 12 | |||||||
|
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Millions |
Total |
PREFERRED STOCK: |
COMMON STOCK: |
ADDITIONAL PAID-IN CAPITAL: |
ACCUMULATED DEFICIT: |
ACCUMULATED OTHER COMPREHENSIVE LOSS: |
TREASURY STOCK – COMMON: |
TOTAL CHESAPEAKE STOCKHOLDERS’ EQUITY |
NONCONTROLLING INTERESTS: |
||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Chesapeake stockholders’ equity, beginning of period at Dec. 31, 2017 | $ 1,671 | $ 9 | [1] | $ 14,437 | [1] | $ (14,130) | [1] | $ (57) | [1] | $ (31) | [1] | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||
Common shares issued for WildHorse Merger | [1] | 0 | 0 | ||||||||||||||||||||
Stock-based compensation | [1] | 5 | |||||||||||||||||||||
Dividends on preferred stock | [1] | (23) | |||||||||||||||||||||
Net income (loss) attributable to Chesapeake | $ 17 | [2] | 17 | [1] | |||||||||||||||||||
Hedging activity | [1] | 10 | |||||||||||||||||||||
Purchase of 2,539,473 and 1,451,478 shares for company benefit plans | [1] | (4) | |||||||||||||||||||||
Release of 110,796 and 275,407 shares from company benefit plans | [1] | 3 | |||||||||||||||||||||
Chesapeake stockholders’ equity, end of period at Mar. 31, 2018 | [1] | 1,671 | 9 | 14,419 | (14,121) | (47) | (32) | $ 1,899 | |||||||||||||||
Stockholders' equity attributable to noncontrolling interest, beginning of period at Dec. 31, 2017 | [1] | $ 44 | |||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||
Net income attributable to noncontrolling interests | (1) | [3] | 1 | [1] | |||||||||||||||||||
Distributions to noncontrolling interest owners | [1] | (2) | |||||||||||||||||||||
Stockholders' equity attributable to noncontrolling interest, end of period at Mar. 31, 2018 | [1] | 43 | |||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||
TOTAL EQUITY | [1] | 1,942 | |||||||||||||||||||||
TOTAL EQUITY | 2,133 | ||||||||||||||||||||||
Chesapeake stockholders’ equity, beginning of period at Dec. 31, 2018 | 2,092 | 1,671 | 9 | 14,378 | (13,912) | (23) | (31) | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||
Common shares issued for WildHorse Merger | 7 | 2,030 | |||||||||||||||||||||
Stock-based compensation | 7 | ||||||||||||||||||||||
Dividends on preferred stock | (23) | ||||||||||||||||||||||
Net income (loss) attributable to Chesapeake | (21) | (21) | |||||||||||||||||||||
Hedging activity | 10 | ||||||||||||||||||||||
Purchase of 2,539,473 and 1,451,478 shares for company benefit plans | (6) | ||||||||||||||||||||||
Release of 110,796 and 275,407 shares from company benefit plans | 1 | ||||||||||||||||||||||
Chesapeake stockholders’ equity, end of period at Mar. 31, 2019 | 4,097 | $ 1,671 | $ 16 | $ 16,392 | $ (13,933) | $ (13) | $ (36) | $ 4,097 | |||||||||||||||
Stockholders' equity attributable to noncontrolling interest, beginning of period at Dec. 31, 2018 | 41 | 41 | |||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||
Net income attributable to noncontrolling interests | 0 | 0 | |||||||||||||||||||||
Distributions to noncontrolling interest owners | 0 | ||||||||||||||||||||||
Stockholders' equity attributable to noncontrolling interest, end of period at Mar. 31, 2019 | 41 | $ 41 | |||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||
TOTAL EQUITY | $ 4,138 | ||||||||||||||||||||||
|
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
||||
Chesapeake stockholders’ equity | $ 4,097 | ||||
PREFERRED STOCK: | |||||
Chesapeake stockholders’ equity | 1,671 | $ 1,671 | [1] | ||
TREASURY STOCK – COMMON: | |||||
Chesapeake stockholders’ equity | $ (36) | $ (32) | [1] | ||
Purchase of shares for company benefit plans (in shares) | 2,539,473 | 1,451,478 | |||
Release of shares from company benefit plans (in shares) | 110,796 | 275,407 | |||
|
Basis of Presentation and Summary of Significant Accounting Policies |
3 Months Ended |
---|---|
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The accompanying condensed consolidated financial statements of Chesapeake were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the SEC. Pursuant to such rules and regulations, certain disclosures have been condensed or omitted. This Form 10-Q relates to the three months ended March 31, 2019 (the “Current Quarter”) and the three months ended March 31, 2018 (the “Prior Quarter”). Our Form 8-K dated May 9, 2019 should be read in conjunction with this Form 10-Q. The accompanying condensed consolidated financial statements reflect all normal recurring adjustments which, in the opinion of management, are necessary for a fair statement of our condensed consolidated financial statements and accompanying notes and include the accounts of our direct and indirect wholly owned subsidiaries and entities in which we have a controlling financial interest. Intercompany accounts and balances have been eliminated. Recast Financial Information for Change in Accounting Principle In the Current Quarter, we voluntarily changed our method of accounting for oil and natural gas exploration and development activities from the full cost method to the successful efforts method. Accordingly, financial information for prior periods has been recast to reflect retrospective application of the successful efforts method. Although the full cost method of accounting for oil and natural gas exploration and development activities continues to be an accepted alternative, the successful efforts method of accounting is the generally preferred method of the SEC and, because it is more widely used in the industry, we expect the change to improve the comparability of our financial statements to our peers. We also believe the successful efforts method provides a more representational depiction of assets and operating results and provides for our investments in oil and natural gas properties to be assessed for impairment in accordance with Accounting Standards Codification (ASC) Topic 360, Property Plant and Equipment, rather than valuations based on prices and costs prescribed under the full cost method as of the balance sheet date. For detailed information regarding the effects of the change to the successful efforts method, see Note 2. Oil and Natural Gas Properties We follow the successful efforts method of accounting for our oil and natural gas properties. Under this method, exploration costs, such as exploratory geological and geophysical costs, expiration of unproved leasehold, delay rentals and exploration overhead are expensed as incurred. All costs related to production, general corporate overhead and similar activities are also expensed as incurred. All property acquisition costs and development costs are capitalized when incurred. Exploratory drilling costs are initially capitalized, or suspended, pending the determination of proved reserves. If proved reserves are found, drilling costs remain capitalized and are classified as proved properties. Costs of unsuccessful wells are charged to exploration expense. For exploratory wells that find reserves that cannot be classified as proved when drilling is completed, costs continue to be capitalized as suspended exploratory drilling costs if there have been sufficient reserves found to justify completion as a producing well and sufficient progress is being made in assessing the reserves and the economic and operational viability of the project. If we determine that future appraisal drilling or development activities are unlikely to occur, associated suspended exploratory well costs are expensed. In some instances, this determination may take longer than one year. We review the status of all suspended exploratory drilling costs quarterly. Costs to develop proved reserves, including the costs of all development wells and related equipment used in the production of oil and natural gas, are capitalized. Costs of drilling and equipping successful wells, costs to construct or acquire facilities, and associated asset retirement costs are depreciated using the unit-of-production (UOP) method based on total estimated proved developed oil and gas reserves. Costs of acquiring proved properties, including leasehold acquisition costs transferred from unproved properties, are depleted using the UOP method based on total estimated proved developed and undeveloped reserves. Proceeds from the sales of individual oil and natural gas properties and the capitalized costs of individual properties sold or abandoned are credited and charged, respectively, to accumulated depreciation, depletion and amortization, if doing so does not materially impact the depletion rate of an amortization base. Generally, no gain or loss is recognized until an entire amortization base is sold. However, a gain or loss is recognized from the sale of less than an entire amortization base if the disposition is significant enough to materially impact the depletion rate of the remaining properties in the amortization base. When circumstances indicate that the carrying value of proved oil and gas properties may not be recoverable, we compare unamortized capitalized costs to the expected undiscounted pre-tax future cash flows for the associated assets grouped at the lowest level for which identifiable cash flows are independent of cash flows of other assets. If the expected undiscounted pre-tax future cash flows, based on our estimate of future crude oil and natural gas prices, operating costs, anticipated production from proved reserves and other relevant data, are lower than the unamortized capitalized costs, the capitalized costs are reduced to fair value. Fair value is generally estimated using the income approach described in the ASC 820, Fair Value Measurements. If applicable, we utilize prices and other relevant information generated by market transactions involving assets and liabilities that are identical or comparable to the item being measured as the basis for determining fair value. The expected future cash flows used for impairment reviews and related fair value measurements are typically based on judgmental assessments of future production volumes, commodity prices, operating costs, and capital investment plans, considering all available information at the date of review. These assumptions are applied to develop future cash flow projections that are then discounted to estimated fair value, using a discount rate believed to be consistent with those applied by market participants. We have classified these fair value measurements as Level 3 in the fair value hierarchy. Capitalized Interest Interest from external borrowings is capitalized on significant investments in major development projects until the asset is ready for service using the weighted average borrowing rate of outstanding borrowings. Capitalized interest is determined by multiplying our weighted average borrowing cost on debt by the average amount of qualifying costs incurred. Capitalized interest is depreciated over the useful lives of the assets in the same manner as the depreciation of the underlying asset. Recently Issued Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASC 842”), which requires lessees to recognize a lease liability and a right-of-use (ROU) asset on the balance sheet for all leases, including operating leases, with terms in excess of 12 months. As the implicit rate of the lease is not always readily determinable, the company uses its incremental borrowing rate to calculate the present value of lease payments based on information available at the commencement date. Operating ROU assets are included in other long-term assets while operating lease liabilities are included in other current and other long-term liabilities on the condensed consolidated balance sheet. Finance ROU assets are reflected in total property and equipment, net while finance lease liabilities are included in other current and other long-term liabilities on the condensed consolidated balance sheet. ASC 842 does not apply to our leases of mineral rights to explore for or use oil and natural gas resources, including the intangible rights to explore for those natural resources and rights to use the land in which those natural resources are contained. We adopted the new standard on January 1, 2019 and as permitted by ASU 2018-11, Leases (Topic 842): Targeted Improvements, we will not adjust comparative-period financial statements and will continue to apply the guidance in Topic 840, including its disclosure requirements, in the comparative periods presented prior to adoption. No cumulative-effect adjustment to retained earnings was required as a result of the modified retrospective approach. Upon adoption of ASC 842, we made certain elections permitting us to not reassess: (1) whether any expired or existing contracts contained leases (2) the lease classification for any expired or existing leases, and (3) initial direct costs for any existing leases. Upon adoption of ASC 842, we also made an election permitting us to continue applying our current policy for land easements. The adoption of ASC 842 did not result in a material impact on our balance sheet, results of operations or cash flows. Short-term leases will not be recognized on the balance sheet as an asset or a liability, and the related rental expense will be expensed as incurred. We have short-term lease agreements related to most of our drilling rig arrangements and hydraulic fracturing arrangements and some of our compressor rental arrangements. See Note 9 for further information regarding leases. |
Change in Accounting Principle |
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Accounting Changes and Error Corrections [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in Accounting Principle | Change in Accounting Principle In the Current Quarter, we voluntarily changed our method of accounting for oil and natural gas exploration and development activities from the full cost method to the successful efforts method. Accordingly, financial information for prior periods has been recast to reflect retrospective application of the successful efforts method. In general, under successful efforts, exploration costs such as exploratory dry holes, exploratory geophysical and geological costs, delay rentals, unproved leasehold impairments and exploration overhead are charged against earnings as incurred, versus being capitalized under the full cost method of accounting. The successful efforts method also provides for the assessment of potential property impairments by comparing the net carrying value of oil and natural gas properties to associated projected undiscounted pre-tax future net cash flows. If the expected undiscounted pre-tax future net cash flows are lower than the unamortized capitalized costs, the capitalized costs are reduced to fair value. Under the full cost method of accounting, a write-down would be required if the net carrying value of oil and natural gas properties exceeds a full cost ceiling using an unweighted arithmetic average of commodity prices in effect on the first day of each of the previous 12 months. In addition, gains or losses, if applicable, are generally recognized on the disposition of oil and natural gas property and equipment under the successful efforts method, as opposed to an adjustment to the net carrying value of the assets remaining under the full cost method. Our condensed consolidated financial statements have been recast to reflect these differences.
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Oil and Natural Gas Property Transactions |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Oil and Natural Gas Property Transactions | Oil and Natural Gas Property Transactions WildHorse Acquisition On February 1, 2019, we acquired WildHorse Resource Development Corporation (“WildHorse”), an oil and gas company with operations in the Eagle Ford Shale and Austin Chalk formations in southeast Texas for approximately 717.4 million shares of our common stock and $381 million in cash. We funded the cash portion of the consideration through borrowings under the Chesapeake revolving credit facility. In connection with the closing, we acquired all of WildHorse’s debt. See Note 6 for additional information on the acquired debt. Purchase Price Allocation The acquisition of WildHorse and its corresponding merger (the “Merger”) with and into our wholly owned subsidiary, Brazos Valley Longhorn, L.L.C. (“Brazos Valley Longhorn” or “BVL”) has been accounted for as a business combination, using the acquisition method. The following table represents the preliminary allocation of the total purchase price of WildHorse to the identifiable assets acquired and the liabilities assumed based on the fair values as of the acquisition date. Certain data necessary to complete the purchase price allocation is not yet available, and includes, but is not limited to, valuation of pre-acquisition contingencies, final tax returns that provide the underlying tax basis of WildHorse’s assets and liabilities and final appraisals of assets acquired and liabilities assumed. We expect to complete the purchase price allocation during the 12-month period following the acquisition date, during which time the value of the assets and liabilities may be revised as appropriate.
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We included in our condensed consolidated statements of operations revenues of $75 million, direct operating expenses of $164 million and other expenses of $12 million for the period from February 1, 2019 to March 31, 2019. Pro Forma Financial Information The following unaudited pro forma financial information for the three months ended March 31, 2019 and 2018, respectively, is based on our historical consolidated financial statements adjusted to reflect as if the WildHorse acquisition had occurred on January 1, 2018. The information below reflects pro forma adjustments based on available information and certain assumptions that we believe are reasonable, including adjustments to conform the classification of expenses in WildHorse’s statements of operations to our classification for similar expenses and the estimated tax impact of pro forma adjustments.
This unaudited pro forma information has been derived from historical information. The unaudited pro forma financial information is not necessarily indicative of what actually would have occurred if the acquisition had been completed as of the beginning of the periods presented, nor is it necessarily indicative of future results. Divestitures In the Current Quarter, we received proceeds of approximately $26 million, subject to customary closing adjustments, for the sale of other oil and natural gas properties covering various operating areas. In the Prior Quarter, we sold portions of our acreage, producing properties and other related property and equipment in the Mid-Continent, including our Mississippian Lime assets, for approximately $420 million, subject to certain customary closing adjustments. Included in the sales were approximately 171,000 net acres and interests in approximately 2,150 wells. Also in the Prior Quarter, we received proceeds of approximately $18 million, subject to customary closing adjustments, for the sale of other oil and natural gas properties covering various operating areas. |
Capitalized Exploratory Well Costs |
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Extractive Industries [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Capitalized Exploratory Well Costs | Capitalized Exploratory Well Costs A summary of the changes in our capitalized well costs for the Current Quarter is detailed below. Additions pending the determination of proved reserves excludes amounts capitalized and subsequently charged to expense within the same year.
As of March 31, 2019, approximately $1 million of drilling and completion costs on exploratory wells pending determination of proved reserves have been capitalized for greater than one year. |
Earnings Per Share |
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Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share Basic earnings per share (EPS) is calculated using the weighted average number of common shares outstanding during the period and includes the effect of any participating securities as appropriate. Participating securities consist of unvested restricted stock issued to our employees and non-employee directors that provide dividend rights. Diluted EPS is calculated assuming the issuance of common shares for all potentially dilutive securities, provided the effect is not antidilutive. For all periods presented, our convertible senior notes did not have a dilutive effect and, therefore, were excluded from the calculation of diluted EPS. Shares of common stock for the following securities were excluded from the calculation of diluted EPS as the effect was antidilutive:
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Our long-term debt consisted of the following as of March 31, 2019 and December 31, 2018:
Chesapeake Revolving Credit Facility Our Chesapeake revolving credit facility matures in September 2023 and the aggregate initial commitment of the lenders and borrowing base under the facility is $3.0 billion. The revolving credit facility provides for an accordion feature, pursuant to which the aggregate commitments thereunder may be increased to up to $4.0 billion from time to time, subject to agreement of the participating lenders and certain other customary conditions. Scheduled borrowing base redeterminations will continue to occur semiannually, and our next borrowing base redetermination is scheduled for the second quarter of 2019. As of March 31, 2019, we had outstanding borrowings of $842 million under the Chesapeake revolving credit facility and had used $61 million of the Chesapeake revolving credit facility for various letters of credit. As of March 31, 2019, we had $2.097 billion of borrowing capacity available under the Chesapeake revolving credit facility. On February 1, 2019, we entered into a first amendment to our Chesapeake credit agreement. Among other things, the amendment (i) designated our subsidiary, Brazos Valley Longhorn, and its subsidiaries as unrestricted subsidiaries under the Chesapeake revolving credit facility and (ii) expressly permitted our initial investment in WildHorse under the limitations on investments covenant. As a result of BVL and its subsidiaries being designated as unrestricted subsidiaries under the Chesapeake revolving credit facility, transactions between BVL and its subsidiaries, on the one hand, and Chesapeake and its subsidiaries (other than BVL and its subsidiaries), on the other hand, are required to be on an arm’s-length basis, subject to certain exceptions, and Chesapeake is limited in the amount of investments it can make in BVL and its subsidiaries. Borrowings under the Chesapeake revolving credit facility bear interest at an alternative base rate (ABR) or LIBOR, at our election, plus an applicable margin ranging from 0.50%-2.00% per annum for ABR loans and 1.50%-3.00% per annum for LIBOR loans, depending on the percentage of the borrowing base then being utilized and whether our leverage ratio exceeds 4.00 to 1.00. The Chesapeake revolving credit facility is subject to various financial and other covenants. The terms of the Chesapeake credit agreement include covenants limiting, among other things, our ability to incur additional indebtedness, make investments or loans, incur liens, consummate mergers and similar fundamental changes, make restricted payments, make investments in unrestricted subsidiaries and enter into transactions with affiliates. The Chesapeake credit agreement contains financial covenants that require us to maintain (i) a leverage ratio of not more than 5.50 to 1 through the fiscal quarter ending September 30, 2019, which threshold decreases over time to 4.00 to 1.00 for the fiscal quarter ending March 31, 2021 and each fiscal quarter thereafter, (ii) a secured leverage ratio of not more than 2.50 to 1.00 until the later of (x) the fiscal quarter ending March 31, 2021 or (y) the first fiscal quarter in which the Company’s leverage ratio does not exceed 4.00 to 1.00 and (iii) a fixed charge coverage ratio of not less than 2.00 to 1.00 through the fiscal quarter ending December 31, 2019; not less than 2.25 to 1.00 through the fiscal quarter ending June 30, 2020; and not less than 2.50 to 1.00 for the fiscal quarter ended September 30, 2020 and thereafter. As of March 31, 2019, we were in compliance with all applicable financial covenants under the credit agreement and we were able to borrow up to the full availability under the Chesapeake revolving credit facility. BVL Revolving Credit Facility In connection with the acquisition of WildHorse, our subsidiary, BVL, became the borrower under the WildHorse revolving credit facility (as amended, the “BVL revolving credit facility”). The BVL revolving credit facility has a maximum credit amount of $2.0 billion, with current aggregate elected commitments and a borrowing base of $1.3 billion. The BVL revolving credit facility matures in December 2021. The borrowing base under the BVL revolving credit facility is subject to redetermination, on at least a semi-annual basis, primarily on the basis of estimated proved reserves. The next scheduled redetermination is in the second quarter of 2019. As of March 31, 2019, we had outstanding borrowings of $688 million and $47 million utilized as a letter of credit. The BVL revolving credit facility is guaranteed by certain of BVL’s subsidiaries (the “BVL Guarantors”) and is required to be secured by substantially all of the assets of BVL and BVL Guarantors, including mortgages on not less than 85% of the proved reserves of their oil and gas properties. On February 1, 2019, BVL, as successor by merger to WildHorse, entered into a sixth amendment to the BVL credit agreement. Among other things, the amendment (i) amended the merger covenant and the definition of change of control to permit our acquisition of WildHorse and (ii) permits borrowings under the BVL revolving credit facility to be used to redeem or repurchase the BVL senior notes so long as certain conditions are met. The obligations under the BVL revolving credit facility are the senior secured obligations of BVL and the BVL Guarantors. The obligations under the BVL revolving credit facility are not obligations of Chesapeake or any of its other subsidiaries. The obligations under the BVL revolving credit facility rank equally in right of payment with all other senior secured indebtedness of Brazos Valley Longhorn and the other BVL Guarantors, and are effectively senior to the BVL and the BVL Guarantors’ senior unsecured indebtedness, including their obligations under the BVL Senior Notes, to the extent of the value of the collateral securing the BVL revolving credit facility. The BVL revolving credit facility is used for the liquidity and expenses of BVL and its subsidiaries and not Chesapeake and its other subsidiaries. Revolving loans under the BVL revolving credit facility bear interest at the alternate base rate, Eurodollar rate or LIBOR market index rate at BVL’s election, plus an applicable margin (ranging from 0.50%-1.50% per annum for alternate base rate loans, 1.50%-2.50% per annum for Eurodollar loans and 1.50%-2.50% per annum for LIBOR market index rate loans), depending on Brazos Valley Longhorn’s total commitment usage. The unused portion of the total commitments are subject to a commitment fee that varies from 0.375% to 0.500%, depending on BVL’s total commitment usage. The terms of the BVL credit agreement include covenants limiting, among other things, the ability of BVL and its restricted subsidiaries (as defined in the BVL credit agreement) to incur additional indebtedness, make investments or loans, incur liens, consummate mergers or similar fundamental changes, make restricted payments, including distributions to Chesapeake, and enter into transactions with affiliates, including Chesapeake and its other subsidiaries. The BVL credit agreement also contains financial covenants that require BVL to maintain (i)(x) if there are no loans outstanding thereunder, a ratio of net debt to EBITDAX (as defined in the BVL credit agreement) of not more than 4.00 to 1.00 as of the last day of each fiscal quarter or (y) if there are such loans outstanding, a ratio of total funded debt to EBITDAX of not more than 4.00 to 1.00 as of the last day of each fiscal quarter and (ii) a ratio of current assets (including availability under the BVL revolving credit facility) to current liabilities of not less than 1.00 to 1.00 as of the last day of each fiscal quarter. As of March 31, 2019, we were in compliance with all applicable financial covenants under the BVL credit agreement and we were able to borrow up to the full availability under the BVL revolving credit facility. BVL Senior Notes As a result of the completion of the acquisition of WildHorse, BVL assumed the obligations under WildHorse’s $700 million aggregate principal amount of 6.875% Senior Notes due 2025 (the “BVL Senior Notes”) and Brazos Valley Longhorn Finance Corp. (“BVL Finance Corp.”), a wholly owned subsidiary of BVL, became a co-issuer of the BVL Senior Notes. On February 1, 2019, BVL, as successor by merger to WildHorse, and BVL Finance Corp. entered into a fourth supplemental indenture (the “BVL supplemental indenture”) to the indenture governing the BVL Senior Notes (as supplemented, the “BVL indenture”). Pursuant to the BVL supplemental indenture, (i) BVL assumed the rights and obligations of WildHorse as issuer under the BVL indenture and (ii) BVL Finance Corp. was named as a co-issuer of the BVL senior notes under the BVL indenture. The BVL Senior Notes are the senior unsecured obligations of BVL, BVL Finance Corp. and the other BVL Guarantors. The BVL Senior Notes are not obligations of Chesapeake or any of its other subsidiaries. The BVL Senior Notes rank equally in right of payment with all other senior unsecured indebtedness of BVL, BVL Finance Corp. and the other BVL Guarantors, and will be effectively subordinated to BVL’s, BVL Finance Corp.’s and the other BVL Guarantors’ senior secured indebtedness, including their obligations under the BVL revolving credit facility, to the extent of the value of the collateral securing such indebtedness. The BVL indenture contains customary reporting covenants (including furnishing quarterly and annual reports to the holders of the BVL Senior Notes) and restrictive covenants that, among other things, limit the ability of BVL and its subsidiaries to: (i) pay dividends on, purchase or redeem BVL’s equity interests or purchase or redeem subordinated debt, unless such distributions, purchases or redemptions are permitted by certain exceptions, including for amounts based on BVL’s operating results, subject to the satisfaction of certain conditions, and a $25 million basket; (ii) make certain investments; (iii) incur or guarantee additional indebtedness or issue certain types of equity securities; (iv) create or incur certain secured debt; (v) sell assets; (vi) consolidate, merge or transfer all or substantially all of BVL’s assets; (vii) enter into agreements that restrict distributions or other payments from BVL’s restricted subsidiaries to BVL; (viii) engage in transactions with affiliates, including Chesapeake and its other subsidiaries; and (ix) create unrestricted subsidiaries. These covenants are subject to a number of important qualifications and limitations. In addition, most of the covenants will be terminated before the BVL Senior Notes mature if at any time no default or event of default exists under the BVL indenture and the BVL Senior Notes receive an investment grade rating from both of two specified ratings agencies. The BVL indenture also contains customary events of default. The BVL credit agreement and the BVL indenture constrain the ability of BVL and its subsidiaries to make distributions or otherwise provide funds to, or guarantee the obligations of, Chesapeake and its other subsidiaries. The provisions of the BVL credit agreement and the BVL indenture require that all transactions between BVL and its subsidiaries, on the one hand, and Chesapeake and its other subsidiaries, on the other hand, be on an arm's-length basis, subject to certain exceptions. Fair Value of Debt We estimate the fair value of our senior notes based on the market value of our publicly traded debt as determined based on the yield of our senior notes (Level 1). The fair value of all other debt is based on a market approach using estimates provided by an independent investment financial data services firm (Level 2). Fair value is compared to the carrying value, excluding the impact of interest rate derivatives, in the table below:
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Contingencies and Commitments |
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Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contingencies and Commitments | Contingencies and Commitments There have been no material developments in previously reported legal or environmental contingencies or commitments other than the items discussed below. For a discussion of commitments and contingencies, see “Contingencies and Commitments,” Note 4 to the Consolidated Financial Statements in our 2018 Form 10-K. Contingencies Litigation and Regulatory Proceedings We are involved in a number of litigation and regulatory proceedings including those described below. Many of these proceedings are in early stages, and many of them seek or may seek damages and penalties, the amount of which is indeterminate. Our total accrued liability in respect of litigation and regulatory proceedings is determined on a case-by-case basis and represents an estimate of probable losses after considering, among other factors, the progress of each case or proceeding, our experience and the experience of others in similar cases or proceedings, and the opinions and views of legal counsel. Significant judgment is required in making these estimates and our final liabilities may ultimately be materially different. Business Operations. We are involved in various lawsuits and disputes incidental to our business operations, including commercial disputes, personal injury claims, royalty claims, property damage claims and contract actions. We and other natural gas producers have been named in various lawsuits alleging underpayment of royalties and other shares of the proceeds of production. The suits against us allege, among other things, that we used below-market prices, made improper deductions, utilized improper measurement techniques entered into arrangements with affiliates that resulted in underpayment of amounts owed in connection with the production and sale of natural gas and NGL, or similar theories. These lawsuits include cases filed by individual royalty owners and putative class actions, some of which seek to certify a statewide class. The lawsuits seek compensatory, consequential, treble, and punitive damages, restitution and disgorgement of profits, declaratory and injunctive relief regarding our payment practices, pre-and post-judgment interest, and attorney’s fees and costs. Royalty plaintiffs have varying provisions in their respective leases, oil and gas law varies from state to state, and royalty owners and producers differ in their interpretation of the legal effect of lease provisions governing royalty calculations. We have resolved a number of these claims through negotiated settlements of past and future royalty obligations and have prevailed in various other lawsuits. We are currently defending numerous lawsuits seeking damages with respect to underpayment of royalties or other shares of the proceeds of production in multiple states where we have operated, including those discussed below. On December 9, 2015, the Commonwealth of Pennsylvania, by the Office of Attorney General, filed a lawsuit in the Bradford County Court of Common Pleas related to royalty underpayment and lease acquisition and accounting practices with respect to properties in Pennsylvania. The lawsuit, which primarily relates to the Marcellus Shale and Utica Shale, alleges that we violated the Pennsylvania Unfair Trade Practices and Consumer Protection Law (UTPCPL) by making improper deductions and entering into arrangements with affiliates that resulted in underpayment of royalties. The lawsuit includes other UTPCPL claims and antitrust claims, including that a joint exploration agreement to which we are a party established unlawful market allocation for the acquisition of leases. The lawsuit seeks statutory restitution, civil penalties and costs, as well as a temporary injunction from exploration and drilling activities in Pennsylvania until restitution, penalties and costs have been paid, and a permanent injunction from further violations of the UTPCPL. Putative statewide class actions in Pennsylvania and Ohio and purported class arbitrations in Pennsylvania have been filed on behalf of royalty owners asserting various claims for damages related to alleged underpayment of royalties as a result of the divestiture of substantially all of our midstream business and most of our gathering assets in 2012 and 2013. These cases include claims for violation of and conspiracy to violate the federal Racketeer Influenced and Corrupt Organizations Act and for an unlawful market allocation agreement for mineral rights, intentional interference with contractual relations, and violations of antitrust laws related to purported markets for gas mineral rights, operating rights and gas gathering sources. These lawsuits seek in aggregate compensatory, consequential, treble, and punitive damages, restitution and disgorgement of profits, declaratory and injunctive relief regarding our royalty payment practices, pre-and post-judgment interest, and attorney’s fees and costs. On December 20, 2017 and August 9, 2018, we reached tentative settlements to resolve substantially all Pennsylvania civil royalty cases for a total of approximately $35 million. We believe losses are reasonably possible in certain of the pending royalty cases for which we have not accrued a loss contingency, but we are currently unable to estimate an amount or range of loss or the impact the actions could have on our future results of operations or cash flows. Uncertainties in pending royalty cases generally include the complex nature of the claims and defenses, the potential size of the class in class actions, the scope and types of the properties and agreements involved, and the applicable production years. We also previously disclosed defending lawsuits alleging various violations of the Sherman Antitrust Act and state antitrust laws. In 2016, putative class action lawsuits were filed in the U.S. District Court for the Western District of Oklahoma and in Oklahoma state courts, and an individual lawsuit was filed in the U.S. District Court of Kansas, in each case against us and other defendants. The lawsuits generally allege that, since 2007 and continuing through April 2013, the defendants conspired to rig bids and depress the market for the purchases of oil and natural gas leasehold interests and properties in the Anadarko Basin containing producing oil and natural gas wells. The lawsuits seek damages, attorney’s fees, costs and interest, as well as enjoinment from adopting practices or plans that would restrain competition in a similar manner as alleged in the lawsuits. On April 12, 2018, we reached a tentative settlement to resolve substantially all Oklahoma civil class action antitrust cases for an insignificant amount. The final fairness hearing was held on April 25, 2019 and the settlement was approved. On July 24, 2018, Healthcare of Ontario Pension Plan (HOOPP) filed a demand for arbitration with the American Arbitration Association regarding HOOPP’s purchase of our interest in Chaparral Energy, Inc. stock for $215 million on January 5, 2014. HOOPP claims that we engaged in material misrepresentations and fraud, and that we violated the Securities Exchange Act of 1934 (the “Exchange Act”) and Oklahoma Uniform Securities Act. HOOPP seeks either rescission or $215 million in monetary damages, and in either case, interest, attorney’s fees, disgorgement and punitive damages. We intend to vigorously defend these claims. In January 2019, putative class action lawsuits were filed in U.S. District Courts for the Southern District of New York against WildHorse and other defendants. The lawsuits generally allege various violations of the Exchange Act in connection with the disclosure contained in the joint proxy statement/prospectus filed in connection with the Merger. The lawsuits seek rescission of the Merger or rescissory damages and, in each case, attorney's fees, costs and interest. We intend to vigorously defend these claims. In February 2019, a putative class action lawsuit was filed in the District Court of Dallas County, Texas against FTS International, Inc. (“FTSI”), certain investment banks, FTSI’s directors including certain of our officers and certain shareholders of FTSI including us. The lawsuit alleges various violations of Sections 11 (with respect to certain of our officers in their capacities as directors of FTSI) and 15 (with respect to such officers and us) of the Securities Act of 1933 in connection with public disclosure made during the initial public offering of FTSI. The suit seeks damages in excess of $1,000,000 and attorneys’ fees and other expenses. We intend to vigorously defend these claims. Environmental Contingencies The nature of the oil and gas business carries with it certain environmental risks for us and our subsidiaries. We have implemented various policies, programs, procedures, training and audits to reduce and mitigate such environmental risks. We conduct periodic reviews, on a company-wide basis, to assess changes in our environmental risk profile. Environmental reserves are established for environmental liabilities for which economic losses are probable and reasonably estimable. We manage our exposure to environmental liabilities in acquisitions by using an evaluation process that seeks to identify pre-existing contamination or compliance concerns and address the potential liability. Depending on the extent of an identified environmental concern, we may, among other things, exclude a property from the transaction, require the seller to remediate the property to our satisfaction in an acquisition or agree to assume liability for the remediation of the property. We are named as a defendant in numerous lawsuits in Oklahoma alleging that we and other companies have engaged in activities that have caused earthquakes. These lawsuits seek compensation for injury to real and personal property, diminution of property value, economic losses due to business interruption, interference with the use and enjoyment of property, annoyance and inconvenience, personal injury and emotional distress. In addition, they seek the reimbursement of insurance premiums and the award of punitive damages, attorneys’ fees, costs, expenses and interest. We intend to vigorously defend these claims. Other Matters Based on management’s current assessment, we are of the opinion that no pending or threatened lawsuit or dispute relating to our business operations is likely to have a material adverse effect on our future consolidated financial position, results of operations or cash flows. The final resolution of such matters could exceed amounts accrued, however, and actual results could differ materially from management’s estimates. Commitments Gathering, Processing and Transportation Agreements We have contractual commitments with midstream service companies and pipeline carriers for future gathering, processing and transportation of oil, natural gas and NGL to move certain of our production to market. Working interest owners and royalty interest owners, where appropriate, will be responsible for their proportionate share of these costs. Commitments related to gathering, processing and transportation agreements are not recorded as obligations in the accompanying consolidated balance sheets; however, they are reflected in our estimates of proved reserves. The aggregate undiscounted commitments under our gathering, processing and transportation agreements, excluding any reimbursement from working interest and royalty interest owners, credits for third-party volumes or future costs under cost-of-service agreements, are presented below:
In addition, we have entered into long-term agreements for certain natural gas gathering and related services within specified acreage dedication areas in exchange for cost-of-service based fees redetermined annually, or tiered fees based on volumes delivered relative to scheduled volumes. Future gathering fees may vary with the applicable agreement. |
Other Liabilities |
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Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities | Other Liabilities Other current liabilities as of March 31, 2019 and December 31, 2018 are detailed below:
Other long-term liabilities as of March 31, 2019 and December 31, 2018 are detailed below:
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Leases |
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Leases | Leases We are a lessee under various agreements for compressors, office space, vehicles and other equipment. As of March 31, 2019, these leases have remaining terms ranging from one month to 7.8 years as of March 31, 2019. Certain of our lease agreements include options to renew the lease, terminate the lease early or purchase the underlying asset at the end of the lease. We determine the lease term at the lease commencement date as the non-cancelable period of the lease, including options to extend or terminate the lease when we are reasonably certain to exercise the option. The company’s vehicles are the only leases with renewal options that we are reasonably certain to exercise. The renewals are reflected in the ROU asset and lease liability balances. Upon adoption of ASC 842 on January 1, 2019, we recognized a nominal operating lease liability and a nominal related ROU asset related to vehicles we lease. On February 1, 2019, we acquired WildHorse and, as part of the purchase price allocation, we recognized additional operating lease liabilities of $40 million, a related ROU asset of $38 million, and lease incentives of $2 million related to two office space leases, a long-term hydraulic fracturing agreement and other equipment leases. Regarding our long-term hydraulic fracturing agreements, we made a policy election to treat both lease and non-lease components as a single lease component. In 2018, we sold our wholly owned subsidiary, Midcon Compression, L.L.C., to a third party and subsequently leased back some natural gas compressors for 38 months. The lease is accounted for as a finance lease liability. The following table presents our ROU assets and lease liabilities as of March 31, 2019.
Additional information for the Company’s operating and finance leases is presented below:
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Maturity analysis of finance lease liabilities and operating lease liabilities are presented below:
The aggregate undiscounted minimum future lease payments under previous lease accounting standard, ASC 840, are presented below:
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Leases | Leases We are a lessee under various agreements for compressors, office space, vehicles and other equipment. As of March 31, 2019, these leases have remaining terms ranging from one month to 7.8 years as of March 31, 2019. Certain of our lease agreements include options to renew the lease, terminate the lease early or purchase the underlying asset at the end of the lease. We determine the lease term at the lease commencement date as the non-cancelable period of the lease, including options to extend or terminate the lease when we are reasonably certain to exercise the option. The company’s vehicles are the only leases with renewal options that we are reasonably certain to exercise. The renewals are reflected in the ROU asset and lease liability balances. Upon adoption of ASC 842 on January 1, 2019, we recognized a nominal operating lease liability and a nominal related ROU asset related to vehicles we lease. On February 1, 2019, we acquired WildHorse and, as part of the purchase price allocation, we recognized additional operating lease liabilities of $40 million, a related ROU asset of $38 million, and lease incentives of $2 million related to two office space leases, a long-term hydraulic fracturing agreement and other equipment leases. Regarding our long-term hydraulic fracturing agreements, we made a policy election to treat both lease and non-lease components as a single lease component. In 2018, we sold our wholly owned subsidiary, Midcon Compression, L.L.C., to a third party and subsequently leased back some natural gas compressors for 38 months. The lease is accounted for as a finance lease liability. The following table presents our ROU assets and lease liabilities as of March 31, 2019.
Additional information for the Company’s operating and finance leases is presented below:
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Maturity analysis of finance lease liabilities and operating lease liabilities are presented below:
The aggregate undiscounted minimum future lease payments under previous lease accounting standard, ASC 840, are presented below:
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Revenue Recognition |
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Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue Recognition The FASB issued Revenue from Contracts with Customers (Topic 606) superseding virtually all existing revenue recognition guidance. We adopted this new standard in the Prior Quarter using the modified retrospective approach. We applied the new standard to all contracts that were not completed as of January 1, 2018 and reflected the aggregate effect of all modifications in determining and allocating the transaction price. The cumulative effect of adoption of $8 million in the Prior Quarter did not have a material impact on our consolidated financial statements. The following table shows revenue disaggregated by operating area and product type, for the Current Quarter and the Prior Quarter:
Accounts Receivable Our accounts receivable are primarily from purchasers of oil, natural gas and NGL and from exploration and production companies that own interests in properties we operate. This industry concentration could affect our overall exposure to credit risk, either positively or negatively, because our purchasers and joint working interest owners may be similarly affected by changes in economic, industry or other conditions. We monitor the creditworthiness of all our counterparties and we generally require letters of credit or parent guarantees for receivables from parties deemed to have sub-standard credit, unless the credit risk can otherwise be mitigated. We utilize an allowance method in accounting for bad debt based on historical trends in addition to specifically identifying receivables that we believe may be uncollectible. Accounts receivable as of March 31, 2019 and December 31, 2018 are detailed below:
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Income Taxes |
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Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We estimate our annual effective tax rate for continuing operations in recording our quarterly income tax provision (or benefit) for the various jurisdictions in which we operate. The tax effects of statutory rate changes, significant unusual or infrequent items, and certain changes in the assessment of the realizability of deferred tax assets are excluded from the determination of our estimated annual effective tax rate as such items are recognized as discrete items in the quarter in which they occur. For the Current Quarter, our estimated annual effective tax rate is 0.0% as a result of maintaining a full valuation allowance against our net deferred tax asset. Taking into account our projected operating results for the subsequent 2019 quarters, we project remaining in a net deferred tax asset position as of December 31, 2019. Based on all available positive and negative evidence, including projections of future taxable income, we believe it is more likely than not that these deferred tax assets will not be realized. A significant piece of objectively verifiable negative evidence evaluated is the cumulative loss incurred over the rolling thirty-six month period ended March 31, 2019. Such evidence limits our ability to consider various forms of subjective positive evidence, such as our projections for future growth and earnings. However, based on our current forecast, we may come out of a thirty-six month cumulative loss position in the foreseeable future. Should we return to a level of sustained profitability, consideration will need to be given to projections of future taxable income to determine whether such projections provide an adequate source of taxable income for the realization of our deferred tax assets. A full valuation allowance was recorded against our net deferred tax asset position as of December 31, 2018 and March 31, 2019. On February 1, 2019, we completed the acquisition of WildHorse. For federal income tax purposes, the transaction qualified as a tax-free merger under Section 368 of the Internal Revenue Code of 1986, as amended, (the “Code”) and, as a result, we acquired carryover tax basis in WildHorse’s assets and liabilities. We recorded a net deferred tax liability of $314 million, as part of the business combination accounting for WildHorse. As a consequence of maintaining a full valuation allowance against our net deferred tax asset position, a partial release of the valuation allowance was recorded as a discrete income tax benefit of $314 million through the condensed consolidated statement of operations for the Current Quarter. The net deferred tax liability acquired includes deferred tax liabilities on plant, property and equipment and prepaid compensation totaling $401 million, partially offset by deferred tax assets totaling $87 million relating to federal net operating loss carryforwards, a disallowed interest carryforward and certain other less significant deferred tax assets. These carryforwards will be subject to an annual limitation under Section 382 of the Code of approximately $61 million. We determined that no separate valuation allowances were required to be established through business combination accounting against any of the individual deferred tax assets acquired. We are subject to U.S. federal income tax as well as income and capital taxes in various state jurisdictions in which we operate. We recorded an income tax benefit of $314 million for the Current Quarter. This benefit was a result of the aforementioned discrete item relating to the partial release of the valuation allowance in the amount of $314 million and a nominal amount of state income tax refunds resulting from the filing of amended state income tax returns reporting federal audit adjustments. |
Share-Based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation | Share-Based Compensation Our share-based compensation program consists of restricted stock, stock options, performance share units (PSUs) and cash restricted stock units (CRSUs) granted to employees and restricted stock granted to non-employee directors under our long-term incentive plans. The restricted stock and stock options are equity-classified awards and the PSUs and CRSUs are liability-classified awards. Equity-Classified Awards Restricted Stock. We grant restricted stock units to employees and non-employee directors. A summary of the changes in unvested restricted stock during the Current Quarter is presented below:
The aggregate intrinsic value of restricted stock that vested during the Current Quarter was approximately $12 million based on the stock price at the time of vesting. As of March 31, 2019, there was approximately $40 million of total unrecognized compensation expense related to unvested restricted stock. The expense is expected to be recognized over a weighted average period of approximately 2.22 years. Stock Options. In the Current Quarter and the Prior Quarter, we granted members of management stock options that vest ratably over a three-year period. Each stock option award has an exercise price equal to the closing price of our common stock on the grant date. Outstanding options expire seven years to ten years from the date of grant. We utilize the Black-Scholes option pricing model to measure the fair value of stock options. The expected life of an option is determined using the simplified method. Volatility assumptions are estimated based on the average historical volatility of Chesapeake stock over the expected life of an option. The risk-free interest rate is based on the U.S. Treasury rate in effect at the time of the grant over the expected life of the option. The dividend yield is based on an annual dividend yield, taking into account our dividend policy, over the expected life of the option. We used the following weighted average assumptions to estimate the grant date fair value of the stock options granted in the Current Quarter:
The following table provides information related to stock option activity in the Current Quarter:
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As of March 31, 2019, there was $11 million of total unrecognized compensation expense related to stock options. The expense is expected to be recognized over a weighted average period of approximately 1.39 years, net of actual forfeitures. Restricted Stock and Stock Option Compensation. We recognized the following compensation costs related to restricted stock and stock options for the Current Quarter and the Prior Quarter:
Liability-Classified Awards Performance Share Units. In the Current Quarter and the Prior Quarter, we granted PSUs to senior management that vest ratably over a three-year performance period and are settled in cash. The ultimate amount earned is based on achievement of performance metrics established by the Compensation Committee of the Board of Directors. Compensation expense associated with PSU awards is recognized over the service period based on the graded-vesting method. The value of the PSU awards at the end of each reporting period is dependent upon our estimates of the underlying performance measures. For PSUs granted in 2017, performance metrics include a total shareholder return (TSR) component, which can range from 0% to 100% and an operational performance component based on finding and development costs, which can range from 0% to 100%, resulting in a maximum payout of 200%. The payout percentage for the 2017 PSU awards is capped at 100% if our absolute TSR is less than zero. The PSUs are settled in cash on the third anniversary of the awards. We utilized a Monte Carlo simulation for the TSR performance measure and the following assumptions to determine the grant date fair value and the reporting date fair value of the 2017 awards.
As the above assumptions and expected satisfaction of performance metrics change, the PSU liabilities will be adjusted quarterly through the end of the performance period. For PSUs granted in 2018 and 2019, performance metrics include an operational performance component based on a ratio of cumulative earnings before interest expense, income taxes, and depreciation, depletion and amortization expense (EBITDA) to capital expenditures, for which payout can range from 0% to 200%. The vested PSUs are settled in cash on each of the three annual vesting dates. We used the closing price of our common stock on the grant date to determine the grant date fair value of the PSUs. The PSU liability will be adjusted quarterly, based on changes in our stock price and expected satisfaction of performance metrics, through the end of the performance period. Cash Restricted Stock Units. In 2018, we granted CRSUs to employees that vest straight-line over a three-year period and are settled in cash on each of the three annual vesting dates. The ultimate amount earned is based on the closing price of our common stock on each of the vesting dates. We used the closing price of our common stock on the grant date to determine the grant date fair value of the CRSUs. The CRSU liability will be adjusted quarterly, based on changes in our stock price, through the end of the vesting period. The following table presents a summary of our liability-classified awards:
We recognized the following compensation costs, net of actual forfeitures, related to our liability-classified awards for the Current Quarter and the Prior Quarter.
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Derivative and Hedging Activities |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative and Hedging Activities | Derivative and Hedging Activities We use derivative instruments to reduce our exposure to fluctuations in future commodity prices and to protect our expected operating cash flow against significant market movements or volatility. All of our oil, natural gas and NGL derivative instruments are net settled based on the difference between the fixed-price payment and the floating-price payment, resulting in a net amount due to or from the counterparty. None of our open oil, natural gas or NGL derivative instruments were designated for hedge accounting as of March 31, 2019 or December 31, 2018. Oil, Natural Gas and NGL Derivatives As of March 31, 2019 and December 31, 2018, our oil, natural gas and NGL derivative instruments consisted of the following types of instruments:
The estimated fair values of our oil, natural gas and NGL derivative instrument assets (liabilities) as of March 31, 2019 and December 31, 2018 are provided below:
We have terminated certain commodity derivative contracts that were previously designated as cash flow hedges for which the original contract months are yet to occur. See further discussion below under Effect of Derivative Instruments – Accumulated Other Comprehensive Income (Loss). Contingent Consideration Arrangements In 2018, we sold our Utica Shale position to EAP Ohio, LLC (“Encino”). The purchase and sale agreement with Encino provides for additional contingent payments to us of up to $100 million comprised of $50 million in consideration in each case if, on or prior to December 31, 2019, there is a period of twenty (20) trading days out of a period of thirty (30) consecutive trading days where (i) the average of the NYMEX natural gas strip prices for the months comprising the year 2022 equals or exceeds $3.00/mmbtu as calculated pursuant to the purchase agreement, and (ii) the average of the NYMEX natural gas strip price for the months comprising the year 2023 equals or exceeds $3.25/mmbtu as calculated pursuant to the purchase and sale agreement. Effect of Derivative Instruments – Condensed Consolidated Balance Sheets The following table presents the fair value and location of each classification of derivative instrument included in the condensed consolidated balance sheets as of March 31, 2019 and December 31, 2018 on a gross basis and after same-counterparty netting:
Effect of Derivative Instruments – Condensed Consolidated Statements of Operations The components of oil, natural gas and NGL revenues for the Current Quarter and the Prior Quarter are presented below:
The components of marketing revenues for the Current Quarter and the Prior Quarter are presented below:
Gains as result of changes in the fair value of our contingent consideration arrangements are recognized in gains on sales of assets in the condensed consolidated statement of operations. Effect of Derivative Instruments – Accumulated Other Comprehensive Income (Loss) A reconciliation of the changes in accumulated other comprehensive income (loss) in our condensed consolidated statements of stockholders’ equity related to our cash flow hedges is presented below:
The accumulated other comprehensive loss as of March 31, 2019 represents the net deferred loss associated with commodity derivative contracts that were previously designated as cash flow hedges for which the original contract months are yet to occur. Remaining deferred gain or loss amounts will be recognized in earnings in the month for which the original contract months are to occur. As of March 31, 2019, we expect to transfer approximately $34 million of net loss included in accumulated other comprehensive income to net income (loss) during the next 12 months. The remaining amounts will be transferred by December 31, 2022. Credit Risk Considerations Our derivative instruments expose us to our counterparties’ credit risk. To mitigate this risk, we enter into derivative contracts only with counterparties that have a high credit rating or are deemed by us to have acceptable credit strength, and are deemed by management to be competent and competitive market-makers, and we attempt to limit our exposure to non-performance by any single counterparty. As of March 31, 2019, our oil, natural gas and NGL derivative instruments were spread among 15 counterparties. Hedging Arrangements Certain of our hedging arrangements are with counterparties that are also lenders (or affiliates of lenders) under the Chesapeake revolving credit facility and/or the BVL revolving credit facility. The contracts entered into with these counterparties are secured by the same collateral that secures the revolving credit facilities. In addition, we enter into bilateral hedging agreements with other counterparties. The counterparties’ and our obligations under the bilateral hedging agreements must be secured by cash or letters of credit to the extent that any mark-to-market amounts owed to us or by us exceed defined thresholds. As of March 31, 2019, we posted an insignificant amount in letters of credit as collateral for our commodity derivatives. No cash was posted as collateral for our commodity derivatives. Fair Value The fair value of our derivatives is based on third-party pricing models which utilize inputs that are either readily available in the public market, such as oil, natural gas and NGL forward curves and discount rates, or can be corroborated from active markets or broker quotes. These values are compared to the values given by our counterparties for reasonableness. Since oil, natural gas and NGL swaps do not include optionality and therefore generally have no unobservable inputs, they are classified as Level 2. All other derivatives have some level of unobservable input, such as volatility curves, and are therefore classified as Level 3. Derivatives are also subject to the risk that either party to a contract will be unable to meet its obligations. We factor non-performance risk into the valuation of our derivatives using current published credit default swap rates. To date, this has not had a material impact on the values of our derivatives. The following table provides information for financial assets (liabilities) measured at fair value on a recurring basis as of March 31, 2019 and December 31, 2018:
A summary of the changes in the fair values of our financial assets (liabilities) classified as Level 3 during the Current Quarter and the Prior Quarter is presented below:
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Qualitative and Quantitative Disclosures about Unobservable Inputs for Level 3 Fair Value Measurements The significant unobservable inputs for Level 3 derivative contracts include market volatility. Changes in market volatility impact the fair value measurement of our derivative contracts, which is based on an estimate derived from option models. For example, an increase or decrease in the forward prices and volatility of oil and natural gas prices decreases or increases the fair value of oil and natural gas derivatives. The following table presents quantitative information about Level 3 inputs used in the fair value measurement of our commodity derivative contracts at fair value as of March 31, 2019:
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Other Operating Expenses |
3 Months Ended |
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Mar. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Other Operating Expenses | Other Operating Expenses In the Current Quarter, we recorded approximately $23 million of costs related to our acquisition of WildHorse which included financial advisory fees, legal fees and travel and lodging expenses. Additionally, we recorded approximately $38 million of severance expense as a result of the acquisition of WildHorse. A majority of the WildHorse executives and employees were terminated. These executives and employees were entitled to severance benefits in accordance with existing employment agreements. |
Investments |
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Mar. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | Investments In the Current Quarter in connection with the acquisition of WildHorse, we obtained a 50% membership interest in JWH Midstream LLC (JWH). The carrying value of our investment in JWH, which is being accounted for as an equity method investment, was approximately $17 million as of March 31, 2019. In the Prior Quarter, FTS International, Inc. (NYSE: FTSI) completed an initial public offering. Due to the offering, the ownership percentage of our equity method investment in FTSI decreased from approximately 29% to 24% and resulted in a gain of approximately $78 million. In addition, we sold approximately 4.3 million shares of FTSI in the offering for net proceeds of approximately $74 million and recognized a gain of approximately $61 million decreasing our ownership percentage to approximately 20%. We continue to hold approximately 22.0 million shares in the publicly traded company. |
Restructuring and Other Termination Costs |
3 Months Ended |
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Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Termination Costs | Restructuring and Other Termination Costs On January 30, 2018, we underwent a reduction in workforce impacting approximately 13% of employees across all functions, primarily on our Oklahoma City campus. In connection with the reduction, we incurred a total charge in the Prior Quarter of approximately $38 million for one-time termination benefits. |
Fair Value Measurements |
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Fair Value Measurements | Fair Value Measurements Recurring Fair Value Measurements Other Current Assets. Assets related to our deferred compensation plan are included in other current assets. The fair value of these assets is determined using quoted market prices, as they consist of exchange-traded securities. Other Current Liabilities. Liabilities related to our deferred compensation plan are included in other current liabilities. The fair values of these liabilities are determined using quoted market prices, as the plan consists of exchange-traded mutual funds. Financial Assets (Liabilities). The following table provides fair value measurement information for the above-noted financial assets (liabilities) measured at fair value on a recurring basis as of March 31, 2019 and December 31, 2018:
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Condensed Consolidating Financial Information |
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Condensed Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Financial Information | Condensed Consolidating Financial Information Chesapeake Energy Corporation is a holding company, owns no operating assets and has no significant operations independent of its subsidiaries. Our obligations under our outstanding senior notes, convertible senior notes and Chesapeake revolving credit facility listed in Note 6 are fully and unconditionally guaranteed, jointly and severally, by certain of our 100% owned subsidiaries. Our BVL subsidiaries are not guarantors of Chesapeake’s indebtedness and are subject to covenants under the BVL credit agreement and BVL indenture. Subsidiaries with noncontrolling interests, consolidated variable interest entities and certain de minimis subsidiaries are also non-guarantors. The tables below are condensed consolidating financial statements for Chesapeake Energy Corporation (parent) on a stand-alone, unconsolidated basis, and its combined guarantor and combined non-guarantor subsidiaries as of March 31, 2019 and December 31, 2018 and for the three months ended March 31, 2019 and 2018. This financial information may not necessarily be indicative of our results of operations, cash flows or financial position had these subsidiaries operated as independent entities. CONDENSED CONSOLIDATING BALANCE SHEET AS OF MARCH 31, 2019 ($ in millions)
CONDENSED CONSOLIDATING BALANCE SHEET AS OF DECEMBER 31, 2018 ($ in millions)
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS THREE MONTHS ENDED MARCH 31, 2019 ($ in millions)
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS THREE MONTHS ENDED MARCH 31, 2018 ($ in millions)
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2019 ($ in millions)
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2018 ($ in millions)
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Subsequent Events |
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Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
Subsequent Events [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Subsequent Events | Subsequent Events On April 3, 2019, we issued at par approximately $919 million of 8.00% Senior Notes due 2026 (“2026 notes”) pursuant to a private exchange offer for the following outstanding senior unsecured notes:
We may redeem some or all of the 2026 notes at any time prior to March 15, 2022 at a price equal to 100% of the principal amount of the notes to be redeemed plus a “make-whole” premium. At any time prior to March 15, 2022, we also may redeem up to 35% of the aggregate principal amount of each series of notes with an amount of cash not greater than the net cash proceeds of certain equity offerings at a specified redemption price. In addition, we may redeem some or all of the 2026 notes at any time on or after March 15, 2022 at the redemption prices in accordance with the terms of the notes, the indenture and supplemental indenture governing the notes. These senior notes are unsecured obligations of Chesapeake and rank equally in right of payment with all of our other existing and future senior unsecured indebtedness and rank senior in right of payment to all of our future subordinated indebtedness. Our obligations under the senior notes are jointly and severally, fully and unconditionally guaranteed by all of our wholly owned subsidiaries that guarantee the Chesapeake revolving credit facility and certain other unsecured senior notes. On April 15, 2019, we repaid upon maturity $380 million principal amount of our Floating Rate Senior Notes due April 2019 with borrowings from our Chesapeake revolving credit facility. |
Basis of Presentation and Summary of Significant Accounting Policies (Policy) |
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Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements of Chesapeake were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the SEC. Pursuant to such rules and regulations, certain disclosures have been condensed or omitted. |
Recast Financial Information for Change in Accounting Principle | Recast Financial Information for Change in Accounting Principle In the Current Quarter, we voluntarily changed our method of accounting for oil and natural gas exploration and development activities from the full cost method to the successful efforts method. Accordingly, financial information for prior periods has been recast to reflect retrospective application of the successful efforts method. Although the full cost method of accounting for oil and natural gas exploration and development activities continues to be an accepted alternative, the successful efforts method of accounting is the generally preferred method of the SEC and, because it is more widely used in the industry, we expect the change to improve the comparability of our financial statements to our peers. We also believe the successful efforts method provides a more representational depiction of assets and operating results and provides for our investments in oil and natural gas properties to be assessed for impairment in accordance with Accounting Standards Codification (ASC) Topic 360, Property Plant and Equipment, rather than valuations based on prices and costs prescribed under the full cost method as of the balance sheet date. For detailed information regarding the effects of the change to the successful efforts method, see Note 2. |
Oil and Natural Gas Properties | Oil and Natural Gas Properties We follow the successful efforts method of accounting for our oil and natural gas properties. Under this method, exploration costs, such as exploratory geological and geophysical costs, expiration of unproved leasehold, delay rentals and exploration overhead are expensed as incurred. All costs related to production, general corporate overhead and similar activities are also expensed as incurred. All property acquisition costs and development costs are capitalized when incurred. Exploratory drilling costs are initially capitalized, or suspended, pending the determination of proved reserves. If proved reserves are found, drilling costs remain capitalized and are classified as proved properties. Costs of unsuccessful wells are charged to exploration expense. For exploratory wells that find reserves that cannot be classified as proved when drilling is completed, costs continue to be capitalized as suspended exploratory drilling costs if there have been sufficient reserves found to justify completion as a producing well and sufficient progress is being made in assessing the reserves and the economic and operational viability of the project. If we determine that future appraisal drilling or development activities are unlikely to occur, associated suspended exploratory well costs are expensed. In some instances, this determination may take longer than one year. We review the status of all suspended exploratory drilling costs quarterly. Costs to develop proved reserves, including the costs of all development wells and related equipment used in the production of oil and natural gas, are capitalized. Costs of drilling and equipping successful wells, costs to construct or acquire facilities, and associated asset retirement costs are depreciated using the unit-of-production (UOP) method based on total estimated proved developed oil and gas reserves. Costs of acquiring proved properties, including leasehold acquisition costs transferred from unproved properties, are depleted using the UOP method based on total estimated proved developed and undeveloped reserves. Proceeds from the sales of individual oil and natural gas properties and the capitalized costs of individual properties sold or abandoned are credited and charged, respectively, to accumulated depreciation, depletion and amortization, if doing so does not materially impact the depletion rate of an amortization base. Generally, no gain or loss is recognized until an entire amortization base is sold. However, a gain or loss is recognized from the sale of less than an entire amortization base if the disposition is significant enough to materially impact the depletion rate of the remaining properties in the amortization base. When circumstances indicate that the carrying value of proved oil and gas properties may not be recoverable, we compare unamortized capitalized costs to the expected undiscounted pre-tax future cash flows for the associated assets grouped at the lowest level for which identifiable cash flows are independent of cash flows of other assets. If the expected undiscounted pre-tax future cash flows, based on our estimate of future crude oil and natural gas prices, operating costs, anticipated production from proved reserves and other relevant data, are lower than the unamortized capitalized costs, the capitalized costs are reduced to fair value. Fair value is generally estimated using the income approach described in the ASC 820, Fair Value Measurements. If applicable, we utilize prices and other relevant information generated by market transactions involving assets and liabilities that are identical or comparable to the item being measured as the basis for determining fair value. The expected future cash flows used for impairment reviews and related fair value measurements are typically based on judgmental assessments of future production volumes, commodity prices, operating costs, and capital investment plans, considering all available information at the date of review. These assumptions are applied to develop future cash flow projections that are then discounted to estimated fair value, using a discount rate believed to be consistent with those applied by market participants. We have classified these fair value measurements as Level 3 in the fair value hierarchy. |
Capitalized Interest | Capitalized Interest Interest from external borrowings is capitalized on significant investments in major development projects until the asset is ready for service using the weighted average borrowing rate of outstanding borrowings. Capitalized interest is determined by multiplying our weighted average borrowing cost on debt by the average amount of qualifying costs incurred. Capitalized interest is depreciated over the useful lives of the assets in the same manner as the depreciation of the underlying asset. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASC 842”), which requires lessees to recognize a lease liability and a right-of-use (ROU) asset on the balance sheet for all leases, including operating leases, with terms in excess of 12 months. As the implicit rate of the lease is not always readily determinable, the company uses its incremental borrowing rate to calculate the present value of lease payments based on information available at the commencement date. Operating ROU assets are included in other long-term assets while operating lease liabilities are included in other current and other long-term liabilities on the condensed consolidated balance sheet. Finance ROU assets are reflected in total property and equipment, net while finance lease liabilities are included in other current and other long-term liabilities on the condensed consolidated balance sheet. ASC 842 does not apply to our leases of mineral rights to explore for or use oil and natural gas resources, including the intangible rights to explore for those natural resources and rights to use the land in which those natural resources are contained. We adopted the new standard on January 1, 2019 and as permitted by ASU 2018-11, Leases (Topic 842): Targeted Improvements, we will not adjust comparative-period financial statements and will continue to apply the guidance in Topic 840, including its disclosure requirements, in the comparative periods presented prior to adoption. No cumulative-effect adjustment to retained earnings was required as a result of the modified retrospective approach. Upon adoption of ASC 842, we made certain elections permitting us to not reassess: (1) whether any expired or existing contracts contained leases (2) the lease classification for any expired or existing leases, and (3) initial direct costs for any existing leases. Upon adoption of ASC 842, we also made an election permitting us to continue applying our current policy for land easements. The adoption of ASC 842 did not result in a material impact on our balance sheet, results of operations or cash flows. Short-term leases will not be recognized on the balance sheet as an asset or a liability, and the related rental expense will be expensed as incurred. We have short-term lease agreements related to most of our drilling rig arrangements and hydraulic fracturing arrangements and some of our compressor rental arrangements. See Note 9 for further information regarding leases. |
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Changes and Error Corrections [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes in accounting principles |
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Oil and Natural Gas Property Transactions (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of preliminary allocation of the total purchase price | The following table represents the preliminary allocation of the total purchase price of WildHorse to the identifiable assets acquired and the liabilities assumed based on the fair values as of the acquisition date. Certain data necessary to complete the purchase price allocation is not yet available, and includes, but is not limited to, valuation of pre-acquisition contingencies, final tax returns that provide the underlying tax basis of WildHorse’s assets and liabilities and final appraisals of assets acquired and liabilities assumed. We expect to complete the purchase price allocation during the 12-month period following the acquisition date, during which time the value of the assets and liabilities may be revised as appropriate.
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Schedule of pro forma financial information | The following unaudited pro forma financial information for the three months ended March 31, 2019 and 2018, respectively, is based on our historical consolidated financial statements adjusted to reflect as if the WildHorse acquisition had occurred on January 1, 2018. The information below reflects pro forma adjustments based on available information and certain assumptions that we believe are reasonable, including adjustments to conform the classification of expenses in WildHorse’s statements of operations to our classification for similar expenses and the estimated tax impact of pro forma adjustments.
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Capitalized Exploratory Well Costs (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Extractive Industries [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of changes in capitalized well costs | A summary of the changes in our capitalized well costs for the Current Quarter is detailed below. Additions pending the determination of proved reserves excludes amounts capitalized and subsequently charged to expense within the same year.
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Earnings Per Share (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of basic EPS and diluted EPS | Shares of common stock for the following securities were excluded from the calculation of diluted EPS as the effect was antidilutive:
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Reconciliation of basic EPS and diluted EPS | Shares of common stock for the following securities were excluded from the calculation of diluted EPS as the effect was antidilutive:
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Debt (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of long-term debt | Our long-term debt consisted of the following as of March 31, 2019 and December 31, 2018:
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Schedule of fair value of debt | Fair value is compared to the carrying value, excluding the impact of interest rate derivatives, in the table below:
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Contingencies and Commitments (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of contractual obligation | The aggregate undiscounted commitments under our gathering, processing and transportation agreements, excluding any reimbursement from working interest and royalty interest owners, credits for third-party volumes or future costs under cost-of-service agreements, are presented below:
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Other Liabilities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other current liabilities | Other current liabilities as of March 31, 2019 and December 31, 2018 are detailed below:
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Other long-term liabilities | Other long-term liabilities as of March 31, 2019 and December 31, 2018 are detailed below:
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Leases (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of ROU assets and lease liabilities | The following table presents our ROU assets and lease liabilities as of March 31, 2019.
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Schedule of operating and financing lease additional information | Additional information for the Company’s operating and finance leases is presented below:
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Schedule of maturity analysis of finance lease liabilities and operating lease liabilities | Maturity analysis of finance lease liabilities and operating lease liabilities are presented below:
The aggregate undiscounted minimum future lease payments under previous lease accounting standard, ASC 840, are presented below:
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Schedule of maturity analysis of finance lease liabilities and operating lease liabilities | Maturity analysis of finance lease liabilities and operating lease liabilities are presented below:
The aggregate undiscounted minimum future lease payments under previous lease accounting standard, ASC 840, are presented below:
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Revenue Recognition (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of revenue | The following table shows revenue disaggregated by operating area and product type, for the Current Quarter and the Prior Quarter:
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Accounts receivable | Accounts receivable as of March 31, 2019 and December 31, 2018 are detailed below:
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Share-Based Compensation (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of the changes in unvested restricted stock | A summary of the changes in unvested restricted stock during the Current Quarter is presented below:
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Weighted average assumptions to estimate grant date fair value of the stock options granted | We used the following weighted average assumptions to estimate the grant date fair value of the stock options granted in the Current Quarter:
We utilized a Monte Carlo simulation for the TSR performance measure and the following assumptions to determine the grant date fair value and the reporting date fair value of the 2017 awards.
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Schedule of stock option activity | The following table provides information related to stock option activity in the Current Quarter:
___________________________________________
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Restricted stock and stock option compensation | We recognized the following compensation costs related to restricted stock and stock options for the Current Quarter and the Prior Quarter:
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Summary of liability classified awards | The following table presents a summary of our liability-classified awards:
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Derivative and Hedging Activities (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of estimated fair values of oil, natural gas and NGL derivative instruments | The estimated fair values of our oil, natural gas and NGL derivative instrument assets (liabilities) as of March 31, 2019 and December 31, 2018 are provided below:
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Schedule of effect of derivative instruments, condensed consolidated balance sheets | The following table presents the fair value and location of each classification of derivative instrument included in the condensed consolidated balance sheets as of March 31, 2019 and December 31, 2018 on a gross basis and after same-counterparty netting:
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Schedule of effect of derivative instruments, condensed consolidated statements of operations | The components of oil, natural gas and NGL revenues for the Current Quarter and the Prior Quarter are presented below:
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Schedule of effect of derivative instruments, accumulated other comprehensive income (loss) | A reconciliation of the changes in accumulated other comprehensive income (loss) in our condensed consolidated statements of stockholders’ equity related to our cash flow hedges is presented below:
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Schedule of financial assets (liabilities) | The following table provides information for financial assets (liabilities) measured at fair value on a recurring basis as of March 31, 2019 and December 31, 2018:
A summary of the changes in the fair values of our financial assets (liabilities) classified as Level 3 during the Current Quarter and the Prior Quarter is presented below:
___________________________________________
The following table provides fair value measurement information for the above-noted financial assets (liabilities) measured at fair value on a recurring basis as of March 31, 2019 and December 31, 2018:
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Schedule of quantitative information about level 3 inputs used | The following table presents quantitative information about Level 3 inputs used in the fair value measurement of our commodity derivative contracts at fair value as of March 31, 2019:
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Fair Value Measurements (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of fair value measurement of financial assets (liabilities) measured at fair value on a recurring basis | The following table provides information for financial assets (liabilities) measured at fair value on a recurring basis as of March 31, 2019 and December 31, 2018:
A summary of the changes in the fair values of our financial assets (liabilities) classified as Level 3 during the Current Quarter and the Prior Quarter is presented below:
___________________________________________
The following table provides fair value measurement information for the above-noted financial assets (liabilities) measured at fair value on a recurring basis as of March 31, 2019 and December 31, 2018:
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Condensed Consolidating Financial Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidated Balance Sheets | CONDENSED CONSOLIDATING BALANCE SHEET AS OF MARCH 31, 2019 ($ in millions)
CONDENSED CONSOLIDATING BALANCE SHEET AS OF DECEMBER 31, 2018 ($ in millions)
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Condensed Consolidated Income Statements | CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS THREE MONTHS ENDED MARCH 31, 2019 ($ in millions)
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS THREE MONTHS ENDED MARCH 31, 2018 ($ in millions)
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Condensed Consolidated Cash Flow Statements | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2019 ($ in millions)
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2018 ($ in millions)
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Subsequent Events (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
Subsequent Events [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Schedule of private exchange offer for outstanding senior unsecured notes | On April 3, 2019, we issued at par approximately $919 million of 8.00% Senior Notes due 2026 (“2026 notes”) pursuant to a private exchange offer for the following outstanding senior unsecured notes:
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Change in Accounting Principle - Statements of Operations (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | ||||||||
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Mar. 31, 2019 |
Mar. 31, 2018 |
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REVENUES AND OTHER: | |||||||||
Revenues | $ 2,196 | $ 2,524 | [1] | ||||||
Gains on sales of assets | 19 | 19 | [1],[2] | ||||||
OPERATING EXPENSES: | |||||||||
Production taxes | 34 | 31 | [1] | ||||||
General and administrative | 103 | 87 | [1] | ||||||
Restructuring and other termination costs | 0 | 38 | [1] | ||||||
Provision for legal contingencies, net | 0 | 5 | [1] | ||||||
Depreciation, depletion and amortization | 519 | 459 | [1],[2] | ||||||
Impairments | 1 | 10 | [1],[2] | ||||||
Other operating expense | 61 | 0 | [1] | ||||||
Total Operating Expenses | 2,378 | 2,482 | [1] | ||||||
INCOME (LOSS) FROM OPERATIONS | (182) | 42 | [1] | ||||||
OTHER INCOME (EXPENSE): | |||||||||
Interest expense | (161) | (162) | [1] | ||||||
Gains (losses) on investments | (1) | 139 | [1] | ||||||
Other income (expense) | 9 | (1) | [1] | ||||||
Total Other Expense | (153) | (24) | [1] | ||||||
INCOME (LOSS) BEFORE INCOME TAXES | (335) | 18 | [1] | ||||||
INCOME TAX BENEFIT | (314) | 0 | [1] | ||||||
NET INCOME (LOSS) | (21) | 18 | [2],[3] | ||||||
Net income attributable to noncontrolling interests | 0 | (1) | [3] | ||||||
NET INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE | (21) | 17 | [1] | ||||||
Preferred stock dividends | (23) | (23) | [1] | ||||||
Earnings allocated to participating securities | 0 | ||||||||
NET LOSS AVAILABLE TO COMMON STOCKHOLDERS | $ (44) | $ (6) | [1] | ||||||
EARNINGS (LOSS) PER COMMON SHARE: | |||||||||
Basic (in dollars per share) | $ (0.03) | $ (0.01) | [1] | ||||||
Diluted (in dollars per share) | $ (0.03) | $ (0.01) | [1] | ||||||
WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING (in millions): | |||||||||
Basic (in shares) | 1,380 | 907 | [1] | ||||||
Diluted (in shares) | 1,380 | 907 | [1] | ||||||
Oil, natural gas and NGL | |||||||||
REVENUES AND OTHER: | |||||||||
Revenues | $ 929 | $ 1,243 | [1] | ||||||
Marketing | |||||||||
REVENUES AND OTHER: | |||||||||
Revenues | 1,233 | 1,246 | [1] | ||||||
OPERATING EXPENSES: | |||||||||
Expense | 1,230 | 1,268 | [1] | ||||||
Oil, natural gas and NGL and Marketing | |||||||||
REVENUES AND OTHER: | |||||||||
Revenues | 2,162 | 2,489 | [1] | ||||||
Other | |||||||||
REVENUES AND OTHER: | |||||||||
Revenues | 15 | 16 | [1] | ||||||
Oil, natural gas and NGL production | |||||||||
OPERATING EXPENSES: | |||||||||
Expense | 132 | 147 | [1] | ||||||
Oil, natural gas and NGL gathering, processing and transportation | |||||||||
OPERATING EXPENSES: | |||||||||
Expense | 274 | 356 | [1] | ||||||
Exploration | |||||||||
OPERATING EXPENSES: | |||||||||
Expense | 24 | 81 | [1] | ||||||
Under Full Cost | |||||||||
REVENUES AND OTHER: | |||||||||
Revenues | 2,162 | 2,489 | |||||||
Gains on sales of assets | 0 | 0 | |||||||
OPERATING EXPENSES: | |||||||||
Production taxes | 34 | 31 | |||||||
General and administrative | 88 | 72 | |||||||
Restructuring and other termination costs | 38 | ||||||||
Provision for legal contingencies, net | 5 | ||||||||
Depreciation, depletion and amortization | 357 | 286 | |||||||
Impairments | 1 | 0 | |||||||
Other operating expense | 51 | 8 | |||||||
Total Operating Expenses | 2,167 | 2,211 | |||||||
INCOME (LOSS) FROM OPERATIONS | (5) | 278 | |||||||
OTHER INCOME (EXPENSE): | |||||||||
Interest expense | (135) | (123) | |||||||
Gains (losses) on investments | (1) | 139 | |||||||
Other income (expense) | 7 | 0 | |||||||
Total Other Expense | (129) | 16 | |||||||
INCOME (LOSS) BEFORE INCOME TAXES | (134) | 294 | |||||||
INCOME TAX BENEFIT | (314) | 0 | |||||||
NET INCOME (LOSS) | 180 | 294 | |||||||
Net income attributable to noncontrolling interests | (1) | (1) | |||||||
NET INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE | 179 | 293 | |||||||
Preferred stock dividends | (23) | (23) | |||||||
Earnings allocated to participating securities | (2) | ||||||||
NET LOSS AVAILABLE TO COMMON STOCKHOLDERS | $ 156 | $ 268 | |||||||
EARNINGS (LOSS) PER COMMON SHARE: | |||||||||
Basic (in dollars per share) | $ 0.11 | $ 0.30 | |||||||
Diluted (in dollars per share) | $ 0.11 | $ 0.29 | |||||||
WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING (in millions): | |||||||||
Basic (in shares) | 1,380 | 907 | |||||||
Diluted (in shares) | 1,380 | 1,053 | |||||||
Under Full Cost | Oil, natural gas and NGL | |||||||||
REVENUES AND OTHER: | |||||||||
Revenues | $ 929 | $ 1,243 | |||||||
Under Full Cost | Marketing | |||||||||
REVENUES AND OTHER: | |||||||||
Revenues | 1,233 | 1,246 | |||||||
OPERATING EXPENSES: | |||||||||
Expense | 1,230 | 1,268 | |||||||
Under Full Cost | Oil, natural gas and NGL and Marketing | |||||||||
REVENUES AND OTHER: | |||||||||
Revenues | 2,162 | 2,489 | |||||||
Under Full Cost | Other | |||||||||
REVENUES AND OTHER: | |||||||||
Revenues | 0 | 0 | |||||||
Under Full Cost | Oil, natural gas and NGL production | |||||||||
OPERATING EXPENSES: | |||||||||
Expense | 132 | 147 | |||||||
Under Full Cost | Oil, natural gas and NGL gathering, processing and transportation | |||||||||
OPERATING EXPENSES: | |||||||||
Expense | 274 | 356 | |||||||
Under Full Cost | Exploration | |||||||||
OPERATING EXPENSES: | |||||||||
Expense | 0 | 0 | |||||||
Successful Efforts Adjustment | |||||||||
REVENUES AND OTHER: | |||||||||
Revenues | 34 | 35 | |||||||
Gains on sales of assets | 19 | 19 | |||||||
OPERATING EXPENSES: | |||||||||
Production taxes | 0 | 0 | |||||||
General and administrative | 15 | 15 | |||||||
Restructuring and other termination costs | 0 | ||||||||
Provision for legal contingencies, net | 0 | ||||||||
Depreciation, depletion and amortization | 162 | 173 | |||||||
Impairments | 0 | 10 | |||||||
Other operating expense | 10 | (8) | |||||||
Total Operating Expenses | 211 | 271 | |||||||
INCOME (LOSS) FROM OPERATIONS | (177) | (236) | |||||||
OTHER INCOME (EXPENSE): | |||||||||
Interest expense | (26) | (39) | |||||||
Gains (losses) on investments | 0 | 0 | |||||||
Other income (expense) | 2 | (1) | |||||||
Total Other Expense | (24) | (40) | |||||||
INCOME (LOSS) BEFORE INCOME TAXES | (201) | (276) | |||||||
INCOME TAX BENEFIT | 0 | 0 | |||||||
NET INCOME (LOSS) | (201) | (276) | |||||||
Net income attributable to noncontrolling interests | 1 | 0 | |||||||
NET INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE | (200) | (276) | |||||||
Preferred stock dividends | 0 | 0 | |||||||
Earnings allocated to participating securities | 2 | ||||||||
NET LOSS AVAILABLE TO COMMON STOCKHOLDERS | $ (200) | $ (274) | |||||||
EARNINGS (LOSS) PER COMMON SHARE: | |||||||||
Basic (in dollars per share) | $ (0.14) | $ (0.31) | |||||||
Diluted (in dollars per share) | $ (0.14) | $ (0.30) | |||||||
WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING (in millions): | |||||||||
Basic (in shares) | 0 | 0 | |||||||
Diluted (in shares) | 0 | (146) | |||||||
Successful Efforts Adjustment | Oil, natural gas and NGL | |||||||||
REVENUES AND OTHER: | |||||||||
Revenues | $ 0 | $ 0 | |||||||
Successful Efforts Adjustment | Marketing | |||||||||
REVENUES AND OTHER: | |||||||||
Revenues | 0 | 0 | |||||||
OPERATING EXPENSES: | |||||||||
Expense | 0 | 0 | |||||||
Successful Efforts Adjustment | Oil, natural gas and NGL and Marketing | |||||||||
REVENUES AND OTHER: | |||||||||
Revenues | 0 | 0 | |||||||
Successful Efforts Adjustment | Other | |||||||||
REVENUES AND OTHER: | |||||||||
Revenues | 15 | 16 | |||||||
Successful Efforts Adjustment | Oil, natural gas and NGL production | |||||||||
OPERATING EXPENSES: | |||||||||
Expense | 0 | 0 | |||||||
Successful Efforts Adjustment | Oil, natural gas and NGL gathering, processing and transportation | |||||||||
OPERATING EXPENSES: | |||||||||
Expense | 0 | 0 | |||||||
Successful Efforts Adjustment | Exploration | |||||||||
OPERATING EXPENSES: | |||||||||
Expense | $ 24 | $ 81 | |||||||
|
Change in Accounting Principle - Statements of Comprehensive Income (Loss) (Details) - USD ($) $ in Millions |
3 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
NET INCOME (LOSS) | $ (21) | $ 18 | [1],[2] | |||||||
OTHER COMPREHENSIVE INCOME, NET OF INCOME TAX: | ||||||||||
Unrealized gains on derivative instruments | [3] | 0 | 0 | [2] | ||||||
Reclassification of losses on settled derivative instruments | 10 | 10 | [2],[3] | |||||||
Other Comprehensive Income | 10 | 10 | [2] | |||||||
COMPREHENSIVE INCOME (LOSS) | (11) | 28 | [2] | |||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 0 | (1) | ||||||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE | (11) | 27 | [2] | |||||||
Under Full Cost | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
NET INCOME (LOSS) | 180 | 294 | ||||||||
OTHER COMPREHENSIVE INCOME, NET OF INCOME TAX: | ||||||||||
Unrealized gains on derivative instruments | [3] | 0 | 0 | |||||||
Reclassification of losses on settled derivative instruments | 10 | 10 | ||||||||
Other Comprehensive Income | 10 | 10 | ||||||||
COMPREHENSIVE INCOME (LOSS) | 190 | 304 | ||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | (1) | (1) | ||||||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE | 189 | 303 | ||||||||
Successful Efforts Adjustment | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
NET INCOME (LOSS) | (201) | (276) | ||||||||
OTHER COMPREHENSIVE INCOME, NET OF INCOME TAX: | ||||||||||
Unrealized gains on derivative instruments | [3] | 0 | 0 | |||||||
Reclassification of losses on settled derivative instruments | 0 | 0 | ||||||||
Other Comprehensive Income | 0 | 0 | ||||||||
COMPREHENSIVE INCOME (LOSS) | (201) | (276) | ||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 1 | 0 | ||||||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE | $ (200) | $ (276) | ||||||||
|
Change in Accounting Principle - Statements of Cash Flows (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Sep. 30, 2017 |
[1] | ||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||||
NET INCOME (LOSS) | $ (21) | $ 18 | [1],[2] | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Depreciation, depletion and amortization | 519 | 459 | [1],[3] | ||||||||
Deferred income tax benefit | (314) | 0 | [1] | ||||||||
Derivative losses, net | 304 | 117 | [1] | ||||||||
Cash receipts on derivative settlements, net | 14 | 13 | [1] | ||||||||
Stock-based compensation | 6 | 9 | [1] | ||||||||
Gains on sales of assets | (19) | (19) | [1],[3] | ||||||||
Impairments | 1 | 10 | [1],[3] | ||||||||
Exploration | 18 | 68 | [1] | ||||||||
(Gains) losses on investments | 1 | (139) | [1] | ||||||||
Other | 40 | (36) | [1] | ||||||||
Changes in assets and liabilities | (93) | 88 | [1] | ||||||||
Net Cash Provided By Operating Activities | 456 | 588 | [1] | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Drilling and completion costs | (515) | (420) | [1] | ||||||||
Business combination, net | (353) | 0 | [1] | ||||||||
Acquisitions of proved and unproved properties | (6) | (17) | [1] | ||||||||
Proceeds from divestitures of proved and unproved properties | 26 | 319 | [1] | ||||||||
Additions to other property and equipment | (9) | (3) | [1] | ||||||||
Proceeds from sales of other property and equipment | 1 | 68 | [1] | ||||||||
Proceeds from sales of investments | 0 | 74 | [1] | ||||||||
Net Cash Provided By (Used In) Investing Activities | (856) | 21 | [1] | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Proceeds from revolving credit facility borrowings | 3,572 | 2,904 | [1] | ||||||||
Payments on revolving credit facility borrowings | (3,136) | (3,485) | [1] | ||||||||
Cash paid to purchase debt | (1) | $ 0 | |||||||||
Cash paid for preferred stock dividends | (23) | (23) | [1] | ||||||||
Distributions to noncontrolling interest owners | 0 | (2) | [1] | ||||||||
Other | (8) | (4) | [1] | ||||||||
Net Cash Provided By (Used In) Financing Activities | 404 | (610) | [1] | ||||||||
Net increase (decrease) in cash and cash equivalents | 4 | (1) | [1] | ||||||||
Cash and cash equivalents, beginning of period | 4 | 5 | [1] | ||||||||
Cash and cash equivalents, end of period | 8 | 4 | [1] | ||||||||
Under Full Cost | |||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||||
NET INCOME (LOSS) | 180 | 294 | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Depreciation, depletion and amortization | 357 | 286 | |||||||||
Deferred income tax benefit | (314) | ||||||||||
Derivative losses, net | 304 | 117 | |||||||||
Cash receipts on derivative settlements, net | 14 | 13 | |||||||||
Stock-based compensation | 6 | 9 | |||||||||
Gains on sales of assets | 0 | 0 | |||||||||
Impairments | 1 | 0 | |||||||||
Exploration | 0 | 0 | |||||||||
(Gains) losses on investments | 1 | (139) | |||||||||
Other | 31 | (28) | |||||||||
Changes in assets and liabilities | (78) | 104 | |||||||||
Net Cash Provided By Operating Activities | 502 | 656 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Drilling and completion costs | (533) | (442) | |||||||||
Business combination, net | (353) | ||||||||||
Acquisitions of proved and unproved properties | (34) | (63) | |||||||||
Proceeds from divestitures of proved and unproved properties | 26 | 319 | |||||||||
Additions to other property and equipment | (9) | (3) | |||||||||
Proceeds from sales of other property and equipment | 1 | 68 | |||||||||
Proceeds from sales of investments | 74 | ||||||||||
Net Cash Provided By (Used In) Investing Activities | (902) | (47) | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Proceeds from revolving credit facility borrowings | 3,572 | 2,904 | |||||||||
Payments on revolving credit facility borrowings | (3,136) | (3,485) | |||||||||
Cash paid to purchase debt | (1) | ||||||||||
Cash paid for preferred stock dividends | (23) | (23) | |||||||||
Distributions to noncontrolling interest owners | (2) | ||||||||||
Other | (8) | (4) | |||||||||
Net Cash Provided By (Used In) Financing Activities | 404 | (610) | |||||||||
Net increase (decrease) in cash and cash equivalents | 4 | (1) | |||||||||
Cash and cash equivalents, beginning of period | 4 | 5 | |||||||||
Cash and cash equivalents, end of period | 8 | 4 | |||||||||
Successful Efforts Adjustment | |||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||||
NET INCOME (LOSS) | (201) | (276) | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Depreciation, depletion and amortization | 162 | 173 | |||||||||
Deferred income tax benefit | 0 | ||||||||||
Derivative losses, net | 0 | 0 | |||||||||
Cash receipts on derivative settlements, net | 0 | 0 | |||||||||
Stock-based compensation | 0 | 0 | |||||||||
Gains on sales of assets | (19) | (19) | |||||||||
Impairments | 0 | 10 | |||||||||
Exploration | 18 | 68 | |||||||||
(Gains) losses on investments | 0 | 0 | |||||||||
Other | 9 | (8) | |||||||||
Changes in assets and liabilities | (15) | (16) | |||||||||
Net Cash Provided By Operating Activities | (46) | (68) | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Drilling and completion costs | 18 | 22 | |||||||||
Business combination, net | 0 | ||||||||||
Acquisitions of proved and unproved properties | 28 | 46 | |||||||||
Proceeds from divestitures of proved and unproved properties | 0 | 0 | |||||||||
Additions to other property and equipment | 0 | 0 | |||||||||
Proceeds from sales of other property and equipment | 0 | 0 | |||||||||
Proceeds from sales of investments | 0 | ||||||||||
Net Cash Provided By (Used In) Investing Activities | 46 | 68 | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Proceeds from revolving credit facility borrowings | 0 | 0 | |||||||||
Payments on revolving credit facility borrowings | 0 | 0 | |||||||||
Cash paid to purchase debt | 0 | ||||||||||
Cash paid for preferred stock dividends | 0 | 0 | |||||||||
Distributions to noncontrolling interest owners | 0 | ||||||||||
Other | 0 | 0 | |||||||||
Net Cash Provided By (Used In) Financing Activities | 0 | 0 | |||||||||
Net increase (decrease) in cash and cash equivalents | 0 | 0 | |||||||||
Cash and cash equivalents, beginning of period | 0 | 0 | |||||||||
Cash and cash equivalents, end of period | $ 0 | $ 0 | |||||||||
|
Change in Accounting Principle - Statements of Shareholders' Equity (Details) - USD ($) $ in Millions |
3 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Jan. 01, 2019 |
Dec. 31, 2018 |
Jan. 01, 2018 |
|||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Chesapeake stockholders’ equity, beginning of period | $ 2,092 | ||||||||||||
Net income (loss) attributable to Chesapeake | (21) | $ 17 | [1] | ||||||||||
Chesapeake stockholders’ equity, end of period | 4,097 | ||||||||||||
Stockholders' equity attributable to noncontrolling interest, beginning of period | 41 | ||||||||||||
Net income attributable to noncontrolling interests | 0 | (1) | [2] | ||||||||||
Stockholders' equity attributable to noncontrolling interest, end of period | 41 | ||||||||||||
TOTAL EQUITY | 4,138 | 1,942 | [3] | $ 2,133 | |||||||||
Under Full Cost | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Net income (loss) attributable to Chesapeake | 179 | 293 | |||||||||||
Net income attributable to noncontrolling interests | (1) | (1) | |||||||||||
TOTAL EQUITY | 2,671 | (97) | |||||||||||
Successful Efforts Adjustment | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Net income (loss) attributable to Chesapeake | (200) | (276) | |||||||||||
Net income attributable to noncontrolling interests | 1 | 0 | |||||||||||
TOTAL EQUITY | 1,467 | 2,039 | |||||||||||
PREFERRED STOCK: | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Chesapeake stockholders’ equity, beginning of period | 1,671 | 1,671 | |||||||||||
Chesapeake stockholders’ equity, end of period | 1,671 | 1,671 | [3] | ||||||||||
PREFERRED STOCK: | Under Full Cost | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Chesapeake stockholders’ equity, beginning of period | 1,671 | 1,671 | |||||||||||
PREFERRED STOCK: | Successful Efforts Adjustment | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Chesapeake stockholders’ equity, beginning of period | 0 | 0 | |||||||||||
COMMON STOCK: | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Chesapeake stockholders’ equity, beginning of period | 9 | 9 | [3] | ||||||||||
Common shares issued for WildHorse Merger | 7 | 0 | [3] | ||||||||||
Chesapeake stockholders’ equity, end of period | 16 | 9 | [3] | ||||||||||
COMMON STOCK: | Under Full Cost | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Chesapeake stockholders’ equity, beginning of period | 9 | 9 | |||||||||||
Common shares issued for WildHorse Merger | 7 | ||||||||||||
Chesapeake stockholders’ equity, end of period | 16 | 9 | |||||||||||
COMMON STOCK: | Successful Efforts Adjustment | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Chesapeake stockholders’ equity, beginning of period | 0 | 0 | |||||||||||
Common shares issued for WildHorse Merger | 0 | ||||||||||||
Chesapeake stockholders’ equity, end of period | 0 | 0 | |||||||||||
ADDITIONAL PAID-IN CAPITAL: | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Chesapeake stockholders’ equity, beginning of period | 14,378 | 14,437 | [3] | ||||||||||
Common shares issued for WildHorse Merger | 2,030 | 0 | [3] | ||||||||||
Stock-based compensation | 7 | 5 | [3] | ||||||||||
Dividends on preferred stock | (23) | (23) | [3] | ||||||||||
Chesapeake stockholders’ equity, end of period | 16,392 | 14,419 | [3] | ||||||||||
ADDITIONAL PAID-IN CAPITAL: | Under Full Cost | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Chesapeake stockholders’ equity, beginning of period | 14,378 | 14,437 | |||||||||||
Common shares issued for WildHorse Merger | 2,030 | ||||||||||||
Stock-based compensation | 7 | 5 | |||||||||||
Dividends on preferred stock | (23) | (23) | |||||||||||
Chesapeake stockholders’ equity, end of period | 16,392 | 14,419 | |||||||||||
ADDITIONAL PAID-IN CAPITAL: | Successful Efforts Adjustment | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Chesapeake stockholders’ equity, beginning of period | 0 | 0 | |||||||||||
Common shares issued for WildHorse Merger | 0 | ||||||||||||
Stock-based compensation | 0 | 0 | |||||||||||
Dividends on preferred stock | 0 | 0 | |||||||||||
Chesapeake stockholders’ equity, end of period | 0 | 0 | |||||||||||
ACCUMULATED DEFICIT: | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Chesapeake stockholders’ equity, beginning of period | (13,912) | (14,130) | [3] | ||||||||||
Net income (loss) attributable to Chesapeake | (21) | 17 | [3] | ||||||||||
Cumulative effect of accounting change | $ 0 | $ (8) | [3] | ||||||||||
Chesapeake stockholders’ equity, end of period | (13,933) | (14,121) | [3] | ||||||||||
ACCUMULATED DEFICIT: | Under Full Cost | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Chesapeake stockholders’ equity, beginning of period | (15,660) | (16,525) | |||||||||||
Net income (loss) attributable to Chesapeake | 179 | 293 | |||||||||||
Cumulative effect of accounting change | (8) | ||||||||||||
Chesapeake stockholders’ equity, end of period | (15,481) | (16,240) | |||||||||||
ACCUMULATED DEFICIT: | Successful Efforts Adjustment | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Chesapeake stockholders’ equity, beginning of period | 1,748 | 2,395 | |||||||||||
Net income (loss) attributable to Chesapeake | (276) | ||||||||||||
Cumulative effect of accounting change | $ 0 | ||||||||||||
Chesapeake stockholders’ equity, end of period | 1,548 | 2,119 | |||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS: | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Chesapeake stockholders’ equity, beginning of period | (23) | (57) | [3] | ||||||||||
Hedging activity | 10 | 10 | [3] | ||||||||||
Chesapeake stockholders’ equity, end of period | (13) | (47) | [3] | ||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS: | Under Full Cost | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Chesapeake stockholders’ equity, beginning of period | (23) | (57) | |||||||||||
Hedging activity | 10 | 10 | |||||||||||
Chesapeake stockholders’ equity, end of period | (13) | (47) | |||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS: | Successful Efforts Adjustment | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Chesapeake stockholders’ equity, beginning of period | 0 | 0 | |||||||||||
Hedging activity | 0 | 0 | |||||||||||
Chesapeake stockholders’ equity, end of period | 0 | 0 | |||||||||||
TREASURY STOCK – COMMON: | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Chesapeake stockholders’ equity, beginning of period | (31) | (31) | [3] | ||||||||||
Purchase of 2,539,473 and 1,451,478 shares for company benefit plans | (6) | (4) | [3] | ||||||||||
Release of 110,796 and 275,407 shares from company benefit plans | 1 | 3 | [3] | ||||||||||
Chesapeake stockholders’ equity, end of period | (36) | (32) | [3] | ||||||||||
TREASURY STOCK – COMMON: | Under Full Cost | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Chesapeake stockholders’ equity, beginning of period | (31) | (31) | |||||||||||
Purchase of 2,539,473 and 1,451,478 shares for company benefit plans | (6) | (4) | |||||||||||
Release of 110,796 and 275,407 shares from company benefit plans | 1 | 3 | |||||||||||
Chesapeake stockholders’ equity, end of period | (36) | (32) | |||||||||||
TREASURY STOCK – COMMON: | Successful Efforts Adjustment | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Chesapeake stockholders’ equity, beginning of period | 0 | 0 | |||||||||||
Purchase of 2,539,473 and 1,451,478 shares for company benefit plans | 0 | 0 | |||||||||||
Release of 110,796 and 275,407 shares from company benefit plans | 0 | 0 | |||||||||||
Chesapeake stockholders’ equity, end of period | 0 | 0 | |||||||||||
TOTAL CHESAPEAKE STOCKHOLDERS’ EQUITY | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Chesapeake stockholders’ equity, end of period | 4,097 | 1,899 | [3] | ||||||||||
TOTAL CHESAPEAKE STOCKHOLDERS’ EQUITY | Under Full Cost | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Chesapeake stockholders’ equity, end of period | 2,549 | (220) | |||||||||||
TOTAL CHESAPEAKE STOCKHOLDERS’ EQUITY | Successful Efforts Adjustment | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Chesapeake stockholders’ equity, end of period | 1,548 | 2,119 | |||||||||||
NONCONTROLLING INTERESTS: | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Stockholders' equity attributable to noncontrolling interest, beginning of period | 41 | 44 | [3] | ||||||||||
Net income attributable to noncontrolling interests | 0 | 1 | [3] | ||||||||||
Distributions to noncontrolling interest owners | 0 | (2) | [3] | ||||||||||
Stockholders' equity attributable to noncontrolling interest, end of period | 41 | 43 | [3] | ||||||||||
NONCONTROLLING INTERESTS: | Under Full Cost | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Stockholders' equity attributable to noncontrolling interest, beginning of period | 123 | 124 | |||||||||||
Net income attributable to noncontrolling interests | (1) | 1 | |||||||||||
Distributions to noncontrolling interest owners | 0 | (2) | |||||||||||
Stockholders' equity attributable to noncontrolling interest, end of period | 122 | 123 | |||||||||||
NONCONTROLLING INTERESTS: | Successful Efforts Adjustment | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Stockholders' equity attributable to noncontrolling interest, beginning of period | (82) | (80) | |||||||||||
Net income attributable to noncontrolling interests | 1 | 0 | |||||||||||
Distributions to noncontrolling interest owners | 0 | 0 | |||||||||||
Stockholders' equity attributable to noncontrolling interest, end of period | $ (81) | $ (80) | |||||||||||
|
Oil and Natural Gas Property Transactions - Narrative (Details) shares in Millions, $ in Millions |
2 Months Ended | 3 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Feb. 01, 2019
USD ($)
shares
|
Mar. 31, 2019
USD ($)
|
Mar. 31, 2019
USD ($)
|
Mar. 31, 2018
USD ($)
a
well
|
||||||
Business Acquisition [Line Items] | |||||||||
Revenues | $ 2,196 | $ 2,524 | [1] | ||||||
Proceeds from divestitures of proved and unproved properties | 26 | 319 | [2] | ||||||
Mid-Continent | |||||||||
Business Acquisition [Line Items] | |||||||||
Proceeds from divestitures of proved and unproved properties | $ 420 | ||||||||
Productive gas wells, number of wells, net | well | 2,150 | ||||||||
Number of net acres | a | 171,000 | ||||||||
Other properties | |||||||||
Business Acquisition [Line Items] | |||||||||
Proceeds from divestitures of proved and unproved properties | $ 18 | ||||||||
Wildhorse Resource Development Corporation | |||||||||
Business Acquisition [Line Items] | |||||||||
Common stock issued in the merger (in shares) | shares | 717.4 | ||||||||
Cash | $ 381 | ||||||||
Revenues | $ 75 | ||||||||
Operating expenses | 164 | ||||||||
Other expenses | $ 12 | ||||||||
Other property sales | |||||||||
Business Acquisition [Line Items] | |||||||||
Proceeds from divestitures of proved and unproved properties | $ 26 | ||||||||
|
Oil and Natural Gas Property Transactions - Purchase Price Allocation (Details) $ / shares in Units, $ in Millions |
Feb. 01, 2019
USD ($)
$ / shares
shares
|
---|---|
Fair Value of Assets Acquired: | |
Common shares, outstanding (in shares) | shares | 717,376,170 |
Share price (in dollars per share) | $ / shares | $ 2.84 |
Wildhorse Resource Development Corporation | |
Consideration: | |
Cash | $ 381 |
Fair value of Chesapeake’s common stock issued in the Merger (a) | 2,037 |
Total consideration | 2,418 |
Fair Value of Liabilities Assumed: | |
Current liabilities | 166 |
Long-term debt | 1,379 |
Deferred tax liabilities | 314 |
Other long-term liabilities | 36 |
Amounts attributable to liabilities assumed | 1,895 |
Fair Value of Assets Acquired: | |
Cash and cash equivalents | 28 |
Other current assets | 128 |
Proved oil and natural gas properties | 3,264 |
Unproved properties | 756 |
Other property and equipment | 77 |
Other long-term assets | 60 |
Amounts attributable to assets acquired | 4,313 |
Total identifiable net assets | $ 2,418 |
Oil and Natural Gas Property Transactions - Pro Forma Financial Information (Details) - Wildhorse Resource Development Corporation - USD ($) $ / shares in Thousands, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Business Acquisition [Line Items] | ||
Revenues | $ 2,188 | $ 2,682 |
Net loss available to common stockholders | $ (59) | $ (10) |
Basic (in dollars per share) | $ (40) | $ (10) |
Diluted (in dollars per share) | $ (40) | $ (10) |
Capitalized Exploratory Well Costs (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2019
USD ($)
| |
Changes in Capitalized Well Costs | |
Beginning balance | $ 36 |
Additions pending the determination of proved reserves | 7 |
Divestitures and other | 0 |
Reclassifications to proved properties | (16) |
Charges to exploration expense | 0 |
Ending balance | 27 |
Capitalized exploratory well costs that have been capitalized for period greater than one year | $ 1,000 |
Earnings Per Share - Antidilutive Securities Excluded from Computation of EPS Table (Details) - shares shares in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Common stock equivalent of our convertible senior notes outstanding | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares of common stock that were excluded from the calculation of diluted EPS (in shares) | 146 | 146 |
Common stock equivalent of our preferred stock outstanding | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares of common stock that were excluded from the calculation of diluted EPS (in shares) | 60 | 60 |
Debt - Long-Term Debt Table (Details) - USD ($) |
Mar. 31, 2019 |
Feb. 01, 2019 |
Dec. 31, 2018 |
---|---|---|---|
Long-Term Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 9,978,000,000 | $ 8,168,000,000 | |
Long-term Debt, Gross | 9,547,000,000 | 7,722,000,000 | |
Debt issuance costs | (50,000,000) | (53,000,000) | |
Debt, current | (380,000,000) | (381,000,000) | |
Current maturities of long-term debt, net | (380,000,000) | (381,000,000) | |
Long-term debt, fair value | 9,598,000,000 | 7,787,000,000 | |
Long-term debt, net | 9,167,000,000 | 7,341,000,000 | |
Interest rate derivatives | |||
Long-Term Debt Instrument [Line Items] | |||
Debt instrument, face amount | 0 | 0 | |
Interest rate derivatives | 1,000,000 | 1,000,000 | |
Senior notes | Floating rate senior notes due 2019 | |||
Long-Term Debt Instrument [Line Items] | |||
Debt instrument, face amount | 380,000,000 | 380,000,000 | |
Long-term Debt, Gross | 380,000,000 | 380,000,000 | |
Senior notes | 6.625% senior notes due 2020 | |||
Long-Term Debt Instrument [Line Items] | |||
Debt instrument, face amount | 437,000,000 | 437,000,000 | |
Long-term Debt, Gross | $ 437,000,000 | 437,000,000 | |
Interest rate, stated percentage | 6.625% | ||
Senior notes | 6.875% senior notes due 2020 | |||
Long-Term Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 227,000,000 | 227,000,000 | |
Long-term Debt, Gross | $ 227,000,000 | 227,000,000 | |
Interest rate, stated percentage | 6.875% | ||
Senior notes | 6.125% senior notes due 2021 | |||
Long-Term Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 548,000,000 | 548,000,000 | |
Long-term Debt, Gross | $ 548,000,000 | 548,000,000 | |
Interest rate, stated percentage | 6.125% | ||
Senior notes | 5.375% senior notes due 2021 | |||
Long-Term Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 267,000,000 | 267,000,000 | |
Long-term Debt, Gross | $ 267,000,000 | 267,000,000 | |
Interest rate, stated percentage | 5.375% | ||
Senior notes | 4.875% senior notes due 2022 | |||
Long-Term Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 451,000,000 | 451,000,000 | |
Long-term Debt, Gross | $ 451,000,000 | 451,000,000 | |
Interest rate, stated percentage | 4.875% | ||
Senior notes | 5.75% senior notes due 2023 | |||
Long-Term Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 338,000,000 | 338,000,000 | |
Long-term Debt, Gross | $ 338,000,000 | 338,000,000 | |
Interest rate, stated percentage | 5.75% | ||
Senior notes | 7.00% senior notes due 2024 | |||
Long-Term Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 850,000,000 | 850,000,000 | |
Long-term Debt, Gross | $ 850,000,000 | 850,000,000 | |
Interest rate, stated percentage | 7.00% | ||
Senior notes | 6.875% senior notes due 2025(a) | |||
Long-Term Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 700,000,000 | $ 700,000,000 | 0 |
Long-term Debt, Gross | $ 704,000,000 | 0 | |
Interest rate, stated percentage | 6.875% | 6.875% | |
Senior notes | 8.00% senior notes due 2025 | |||
Long-Term Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 1,300,000,000 | 1,300,000,000 | |
Long-term Debt, Gross | $ 1,291,000,000 | 1,291,000,000 | |
Interest rate, stated percentage | 8.00% | ||
Senior notes | 7.5% senior notes due 2026 | |||
Long-Term Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 400,000,000 | 400,000,000 | |
Long-term Debt, Gross | 400,000,000 | 400,000,000 | |
Senior notes | 8.00% senior notes due 2027 | |||
Long-Term Debt Instrument [Line Items] | |||
Debt instrument, face amount | 1,300,000,000 | 1,300,000,000 | |
Long-term Debt, Gross | $ 1,299,000,000 | 1,299,000,000 | |
Interest rate, stated percentage | 8.00% | ||
Convertible debt | 5.5% convertible senior notes due 2026(b)(c) | |||
Long-Term Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 1,250,000,000 | 1,250,000,000 | |
Long-term Debt, Gross | $ 874,000,000 | 866,000,000 | |
Interest rate, stated percentage | 5.50% | ||
Interest rate, effective percentage | 11.50% | ||
Convertible debt | 7.5% senior notes due 2026 | |||
Long-Term Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 7.50% | ||
Convertible debt | 2.25% contingent convertible senior notes due 2038 | |||
Long-Term Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 0 | 1,000,000 | |
Long-term Debt, Gross | $ 0 | 1,000,000 | |
Interest rate, stated percentage | 2.25% | ||
Line of credit | Chesapeake revolving credit facility | Revolving credit facility | |||
Long-Term Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 842,000,000 | 419,000,000 | |
Chesapeake revolving credit facility | 842,000,000 | 419,000,000 | |
Line of credit | BVL revolving credit facility(a) | Revolving credit facility | |||
Long-Term Debt Instrument [Line Items] | |||
Debt instrument, face amount | 688,000,000 | 0 | |
Chesapeake revolving credit facility | $ 688,000,000 | $ 0 |
Debt - Narrative (Details) |
Feb. 01, 2019
USD ($)
|
Mar. 31, 2021 |
Sep. 30, 2020 |
Jun. 30, 2020 |
Sep. 30, 2019 |
Mar. 31, 2019
USD ($)
|
Dec. 31, 2018
USD ($)
|
---|---|---|---|---|---|---|---|
Long-Term Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 9,978,000,000 | $ 8,168,000,000 | |||||
Senior notes | 6.875% senior notes due 2025 | |||||||
Long-Term Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 700,000,000 | $ 700,000,000 | 0 | ||||
Interest rate, stated percentage | 6.875% | 6.875% | |||||
Debt covenant, basket | $ 25,000,000 | ||||||
Revolving credit facility | Chesapeake revolving credit facility | |||||||
Long-Term Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 3,000,000,000 | ||||||
Line of credit facility, maximum borrowing capacity, increased maximum | 4,000,000,000 | ||||||
Letters of credit outstanding, amount | $ 61,000,000 | ||||||
Leverage ratio | 4.00 | ||||||
Fixed charge coverage ratio | 2.00 | ||||||
Revolving credit facility | BVL revolving credit facility | |||||||
Long-Term Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 2,000,000,000 | ||||||
Line of credit facility, current borrowing capacity | 1,300,000,000 | ||||||
Letters of credit outstanding, amount | $ 47,000,000 | ||||||
Mortgage guarantee, secured percent on proved reserves | 85.00% | ||||||
Ratio of net debt to EBITDAX | 4.00 | ||||||
Ratio of funded debt o EBITDAX | 4.00 | ||||||
Current Ratio | 1.00 | ||||||
Revolving credit facility | Line of credit | Chesapeake revolving credit facility | |||||||
Long-Term Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 842,000,000 | 419,000,000 | |||||
Borrowing capacity available | 2,097,000,000 | ||||||
Revolving credit facility | Line of credit | BVL revolving credit facility | |||||||
Long-Term Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 688,000,000 | $ 0 | |||||
Minimum | Revolving credit facility | BVL revolving credit facility | |||||||
Long-Term Debt Instrument [Line Items] | |||||||
Commitment fee | 0.375% | ||||||
Minimum | Alternative Base Rate (ABR) | Revolving credit facility | Chesapeake revolving credit facility | |||||||
Long-Term Debt Instrument [Line Items] | |||||||
Variable rate percentage | 0.50% | ||||||
Minimum | Alternative Base Rate (ABR) | Revolving credit facility | BVL revolving credit facility | |||||||
Long-Term Debt Instrument [Line Items] | |||||||
Variable rate percentage | 0.50% | ||||||
Minimum | Eurodollar | Revolving credit facility | BVL revolving credit facility | |||||||
Long-Term Debt Instrument [Line Items] | |||||||
Variable rate percentage | 1.50% | ||||||
Minimum | London Interbank Offered Rate (LIBOR) | Revolving credit facility | Chesapeake revolving credit facility | |||||||
Long-Term Debt Instrument [Line Items] | |||||||
Variable rate percentage | 1.50% | ||||||
Minimum | London Interbank Offered Rate (LIBOR) | Revolving credit facility | BVL revolving credit facility | |||||||
Long-Term Debt Instrument [Line Items] | |||||||
Variable rate percentage | 1.50% | ||||||
Maximum | Revolving credit facility | BVL revolving credit facility | |||||||
Long-Term Debt Instrument [Line Items] | |||||||
Commitment fee | 0.50% | ||||||
Maximum | Alternative Base Rate (ABR) | Revolving credit facility | Chesapeake revolving credit facility | |||||||
Long-Term Debt Instrument [Line Items] | |||||||
Variable rate percentage | 2.00% | ||||||
Maximum | Alternative Base Rate (ABR) | Revolving credit facility | BVL revolving credit facility | |||||||
Long-Term Debt Instrument [Line Items] | |||||||
Variable rate percentage | 1.50% | ||||||
Maximum | Eurodollar | Revolving credit facility | BVL revolving credit facility | |||||||
Long-Term Debt Instrument [Line Items] | |||||||
Variable rate percentage | 2.50% | ||||||
Maximum | London Interbank Offered Rate (LIBOR) | Revolving credit facility | Chesapeake revolving credit facility | |||||||
Long-Term Debt Instrument [Line Items] | |||||||
Variable rate percentage | 3.00% | ||||||
Maximum | London Interbank Offered Rate (LIBOR) | Revolving credit facility | BVL revolving credit facility | |||||||
Long-Term Debt Instrument [Line Items] | |||||||
Variable rate percentage | 2.50% | ||||||
Forecast | Revolving credit facility | Chesapeake revolving credit facility | |||||||
Long-Term Debt Instrument [Line Items] | |||||||
Leverage ratio | 4.00 | 5.50 | |||||
Secured leverage ratio | 2.50 | ||||||
Fixed charge coverage ratio | 2.50 | 2.25 |
Debt - Fair Value of Debt Table (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | $ 9,598 | $ 7,787 |
Fair Value, Inputs, Level 1 | Reported Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term debt, fair value | 380 | 381 |
Long-term debt, fair value | 4,200 | 3,495 |
Fair Value, Inputs, Level 1 | Estimate of Fair Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term debt, fair value | 379 | 379 |
Long-term debt, fair value | 4,240 | 3,173 |
Fair Value, Inputs, Level 2 | Reported Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | 4,967 | 3,846 |
Fair Value, Inputs, Level 2 | Estimate of Fair Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | $ 5,232 | $ 3,644 |
Contingencies and Commitments - Narrative (Details) - USD ($) |
1 Months Ended | ||
---|---|---|---|
Aug. 09, 2018 |
Jan. 05, 2014 |
Feb. 28, 2019 |
|
Loss Contingencies [Line Items] | |||
Settlement amount | $ 35,000,000 | ||
Chaparral Energy, Inc. | Healthcare of Ontario Pension Plan (HOOPP) | Pending litigation | |||
Loss Contingencies [Line Items] | |||
Loss contingency, damages sought, value | $ 215,000,000 | ||
FTS International, Inc. | Putative class action lawsuit | Pending litigation | |||
Loss Contingencies [Line Items] | |||
Loss contingency, damages sought, value | $ 1,000,000 |
Contingencies and Commitments - Gathering Processing and Transportation Commitments Table (Details) - Gathering, processing and transportation agreement $ in Millions |
Mar. 31, 2019
USD ($)
|
---|---|
Other Commitments [Line Items] | |
Gathering, processing and transportation commitment, 2019 | $ 627 |
Gathering, processing and transportation commitment, 2020 | 783 |
Gathering, processing and transportation commitment, 2021 | 687 |
Gathering, processing and transportation commitment, 2022 | 585 |
Gathering, processing and transportation commitment, 2023 | 472 |
Gathering, processing and transportation commitment, 2024-2035 | 2,443 |
Gathering, processing and transportation commitment, total | $ 5,597 |
Other Liabilities - Current Table (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Other Liabilities Disclosure [Abstract] | ||
Revenues and royalties due others | $ 562 | $ 687 |
Accrued drilling and production costs | 467 | 258 |
Joint interest prepayments received | 69 | 73 |
Joint interest prepayments received | 58 | 59 |
Accrued compensation and benefits | 114 | 202 |
Other accrued taxes | 105 | 108 |
Other | 216 | 212 |
Total other current liabilities | $ 1,591 | $ 1,599 |
Other Liabilities - Long-Term Table (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Other Liabilities Disclosure [Abstract] | ||
VPP deferred revenue(a) | $ 49 | $ 63 |
Unrecognized tax benefits | 53 | 53 |
Other | 108 | 103 |
Total other long-term liabilities | $ 210 | $ 219 |
Leases - Narrative (Details) $ in Millions |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Feb. 01, 2019
contract
|
Mar. 31, 2019
USD ($)
|
Dec. 31, 2018 |
Jan. 01, 2019
USD ($)
|
|
Lessee, Lease, Description [Line Items] | ||||
Operating lease liability | $ 34.0 | |||
Operating lease, right-of-use asset | $ 32.0 | |||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease, remaining lease term | 1 month | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease, remaining lease term | 7 years 9 months 18 days | |||
Natural Gas Compressors | Midcon Compression, L.L.C. | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease terms | 38 months | |||
Wildhorse Resource Development Corporation | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease liability | $ 40.0 | |||
Operating lease, right-of-use asset | 38.0 | |||
Lease incentive | $ 2.0 | |||
Number of leases | contract | 2 |
Leases - ROU Assets and Liabilities (Details) $ in Millions |
Mar. 31, 2019
USD ($)
|
---|---|
Assets and Liabilities, Lessee [Abstract] | |
Financing, ROU assets | $ 24 |
Financing, current lease liabilities | 9 |
Financing, long-term lease liabilities | 15 |
Present value of lease liabilities | 24 |
Operating, ROU assets | 32 |
Operating, current lease liabilities | 19 |
Operating, long-term lease liabilities | 15 |
Present value of lease liabilities | $ 34 |
Leases - Additional Information (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2019
USD ($)
| |
Lease cost: | |
Amortization of ROU assets | $ 2 |
Interest on lease liability | 1 |
Finance lease cost | 3 |
Operating lease cost | 7 |
Short-term lease cost | 22 |
Total lease cost | 32 |
Other information: | |
Operating cash outflows from finance lease | 1 |
Operating cash outflows from operating leases | 2 |
Investing cash outflows from operating leases | 27 |
Financing cash outflows from finance lease | $ 2 |
Weighted-average remaining lease term - finance lease | 2 years 9 months |
Weighted-average remaining lease term - operating leases | 3 years 9 months 18 days |
Weighted-average discount rate - finance lease | 7.50% |
Weighted-average discount rate - operating leases | 5.09% |
Capitalized lease costs | $ 27 |
Leases - Maturity Analysis of Finance and Operating Lease Liabilities (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Finance Leases, After Adoption of 842: | ||
2019 remaining | $ 7 | |
2020 | 10 | |
2021 | 10 | |
2022 | 0 | |
2023 | 0 | |
Thereafter | 0 | |
Total lease payments | 27 | |
Less imputed interest | (3) | |
Present value of lease liabilities | 24 | |
Less current maturities | (9) | |
Present value of lease liabilities, less current maturities | 15 | |
Operating Leases, After Adoption of 842: | ||
2019 remaining | 18 | |
2020 | 6 | |
2021 | 2 | |
2022 | 2 | |
2023 | 2 | |
Thereafter | 7 | |
Total lease payments | 37 | |
Less imputed interest | (3) | |
Present value of lease liabilities | 34 | |
Less current maturities | (19) | |
Present value of lease liabilities, less current maturities | $ 15 | |
Capital Leases, Before Adoption of 842: | ||
2019 | $ 10 | |
2020 | 10 | |
2021 | 10 | |
Total minimum lease payments | 30 | |
Operating Leases, After Before of 842: | ||
2019 | 3 | |
2020 | 1 | |
2021 | 0 | |
Total minimum lease payments | $ 4 |
Revenue Recognition - Additional Information (Details) - Retained Earnings - USD ($) $ in Millions |
Jan. 01, 2019 |
Jan. 01, 2018 |
|||
---|---|---|---|---|---|
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Cumulative effect of accounting change | $ 0 | $ (8) | [1] | ||
ASU 2014-09 | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Cumulative effect of accounting change | $ (8) | ||||
|
Revenue Recognition - Disaggregated Revenue (Details) - USD ($) $ in Millions |
3 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | $ 1,230 | $ 1,360 | |||||
Gains (losses) on oil, natural gas and NGL derivatives | (301) | (117) | |||||
Gains on sales of assets | 19 | 19 | [1],[2] | ||||
Revenues | 2,196 | 2,524 | [1] | ||||
Oil, natural gas and NGL | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 929 | 1,243 | [1] | ||||
Marketing | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 1,143 | 1,089 | |||||
Gains (losses) on oil, natural gas and NGL derivatives | (2) | ||||||
Revenues | 1,233 | 1,246 | [1] | ||||
Other marketing revenue | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 92 | 157 | |||||
Other | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 15 | 16 | [1] | ||||
Marcellus | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 302 | 294 | |||||
Haynesville | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 201 | 210 | |||||
Eagle Ford | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 425 | 446 | |||||
Brazos Valley | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 127 | ||||||
Powder River Basin | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 109 | 60 | |||||
Mid-Continent | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 66 | 122 | |||||
Utica | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 228 | ||||||
Oil | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 566 | 537 | |||||
Gains (losses) on oil, natural gas and NGL derivatives | (259) | (86) | |||||
Oil | Oil, natural gas and NGL | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 307 | 451 | |||||
Oil | Marketing | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 613 | 686 | |||||
Gains (losses) on oil, natural gas and NGL derivatives | 0 | ||||||
Revenues | 685 | 803 | |||||
Oil | Other marketing revenue | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 72 | 117 | |||||
Oil | Marcellus | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 0 | 0 | |||||
Oil | Haynesville | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 0 | 0 | |||||
Oil | Eagle Ford | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 331 | 364 | |||||
Oil | Brazos Valley | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 121 | ||||||
Oil | Powder River Basin | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 74 | 40 | |||||
Oil | Mid-Continent | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 40 | 73 | |||||
Oil | Utica | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 60 | ||||||
Natural Gas | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 595 | 706 | |||||
Gains (losses) on oil, natural gas and NGL derivatives | (42) | (32) | |||||
Natural Gas | Oil, natural gas and NGL | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 553 | 674 | |||||
Natural Gas | Marketing | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 413 | 293 | |||||
Gains (losses) on oil, natural gas and NGL derivatives | (2) | ||||||
Revenues | 431 | 333 | |||||
Natural Gas | Other marketing revenue | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 20 | 40 | |||||
Natural Gas | Marcellus | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 302 | 294 | |||||
Natural Gas | Haynesville | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 201 | 210 | |||||
Natural Gas | Eagle Ford | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 48 | 42 | |||||
Natural Gas | Brazos Valley | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 4 | ||||||
Natural Gas | Powder River Basin | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 25 | 12 | |||||
Natural Gas | Mid-Continent | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 15 | 32 | |||||
Natural Gas | Utica | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 116 | ||||||
NGL | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 69 | 117 | |||||
Gains (losses) on oil, natural gas and NGL derivatives | 0 | 1 | |||||
NGL | Oil, natural gas and NGL | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 69 | 118 | |||||
NGL | Marketing | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 117 | 110 | |||||
Gains (losses) on oil, natural gas and NGL derivatives | 0 | ||||||
Revenues | 117 | 110 | |||||
NGL | Other marketing revenue | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 0 | 0 | |||||
NGL | Marcellus | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 0 | 0 | |||||
NGL | Haynesville | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 0 | 0 | |||||
NGL | Eagle Ford | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 46 | 40 | |||||
NGL | Brazos Valley | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 2 | ||||||
NGL | Powder River Basin | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | 10 | 8 | |||||
NGL | Mid-Continent | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | $ 11 | 17 | |||||
NGL | Utica | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Revenues | $ 52 | ||||||
|
Revenue Recognition - Accounts Receivable (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Disaggregation of Revenue [Line Items] | ||
Allowance for doubtful accounts | $ (20) | $ (17) |
Total accounts receivable, net | 1,196 | 1,247 |
Oil, natural gas and NGL sales | ||
Disaggregation of Revenue [Line Items] | ||
Accounts receivable, gross | 887 | 976 |
Joint interest | ||
Disaggregation of Revenue [Line Items] | ||
Accounts receivable, gross | 262 | 211 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Accounts receivable, gross | $ 67 | $ 77 |
Income Taxes Income Taxes - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
[1] | Feb. 01, 2019 |
|||
Business Acquisition [Line Items] | ||||||
Effective income tax rate | 0.00% | |||||
Income tax benefit | $ 314 | $ 0 | ||||
Wildhorse Resource Development Corporation | ||||||
Business Acquisition [Line Items] | ||||||
Deferred tax liabilities | $ 314 | |||||
Income tax benefit | 314 | |||||
Deferred tax liability, plant, property and equipment and prepaid compensation | 401 | |||||
Deferred tax assets, operating loss carryforward, limitations | $ 61 | |||||
Wildhorse Resource Development Corporation | Federal | ||||||
Business Acquisition [Line Items] | ||||||
Deferred tax asset, operating loss carryforward | $ 87 | |||||
|
Share-Based Compensation - Restricted Stock Table (Details) - Restricted stock shares in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2019
$ / shares
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Unvested restricted stock, beginning balance (in shares) | shares | 11,858 |
Granted (in shares) | shares | 4,272 |
Vested (in shares) | shares | (3,937) |
Forfeited (in shares) | shares | (93) |
Unvested restricted stock, beginning balance (in shares) | shares | 12,100 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted average grant date fair value, unvested restricted stock, beginning balance (in dollars per share) | $ / shares | $ 4.43 |
Weighted average grant date fair value, granted (in dollars per share) | $ / shares | 2.97 |
Weighted average grant date fair value, vested (in dollars per share) | $ / shares | 4.49 |
Weighted average grant date fair value, forfeited (in dollars per share) | $ / shares | 5.54 |
Weighted average grant date fair value, unvested restricted stock, ending balance (in dollars per share) | $ / shares | $ 3.89 |
Share-Based Compensation - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Restricted stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Intrinsic value of restricted stock, vested | $ 12 | |
Unrecognized compensation expense | $ 40 | |
Share-based compensation expense, weighted average period for recognition | 2 years 2 months 19 days | |
Stock option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense, weighted average period for recognition | 1 year 4 months 20 days | |
Fair value method used | Black-Scholes option pricing model | |
Unrecognized compensation expense | $ 11 | |
Stock option | Management | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation, award vesting period | 3 years | |
Stock option | Management | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration period | 7 years | |
Stock option | Management | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration period | 10 years | |
Performance Share Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation, award vesting period | 3 years | |
Fair value method used | Monte Carlo simulation | |
Performance Share Units | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance share units maximum payout percentage | 0.00% | |
Performance Share Units | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance share units maximum payout percentage | 200.00% | |
Performance Share Units | Management | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation, award vesting period | 3 years | |
Performance share units maximum payout percentage | 200.00% | |
Performance share grant maximum payout percentage | 100.00% | |
Terms of award | less than zero | |
Performance Share Units | Management | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
TSR component percentage performance share units | 0.00% | |
Operational component percentage performance share ufnits | 0.00% | |
Performance Share Units | Management | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
TSR component percentage performance share units | 100.00% | |
Operational component percentage performance share ufnits | 100.00% | |
Cash Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation, award vesting period | 3 years |
Share-Based Compensation - Equity-Classified Valuation Table (Details) - Stock option |
3 Months Ended |
---|---|
Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected option life – years | 6 years |
Volatility | 65.61% |
Risk-free interest rate | 2.47% |
Dividend yield | 0.00% |
Share-Based Compensation - Stock Option Activity Table (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding, beginning balance (in shares options) | 18,096 | |
Granted (in shares options) | 1,000 | |
Exercised (in shares options) | 0 | |
Expired (in shares options) | (87) | |
Forfeited (in shares options) | (79) | |
Outstanding, ending balance (in shares options) | 18,930 | 18,096 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted average exercise price, beginning (in dollars per share) | $ 7.20 | |
Weighted average exercise price, granted (in dollars per share) | 2.97 | |
Weighted average exercise price, exercised (in dollars per share) | 0.00 | |
Weighted average exercise price, expired (in dollars per share) | 11.23 | |
Weighted average exercise price, forfeited (in dollars per share) | 5.45 | |
Weighted average exercise price, ending (in dollars per share) | $ 6.97 | $ 7.20 |
Weighted average contract life, outstanding (in years) | 7 years 10 days | 7 years 1 month 24 days |
Aggregate intrinsic value, outstanding, beginning balance | $ 0 | |
Aggregate intrinsic value, exercised | 0 | |
Aggregate intrinsic value, outstanding, ending balance | $ 0 | $ 0 |
Exercisable (in shares options) | 13,355 | |
Weighted average exercise price, exercisable (in dollars per share) | $ 8.23 | |
Weighted average contract life, exercisable (in years) | 6 years 3 months 29 days | |
Aggregate intrinsic value, exercisable | $ 0 |
Share-Based Compensation - Equity-Classified Compensation Table (Details) - Restricted stock and stock options - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 8 | $ 11 |
General and administrative expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | 6 | 7 |
Oil and natural gas properties | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | 1 | 2 |
Oil, natural gas and NGL production expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | 1 | 2 |
Exploration expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 0 | $ 0 |
Share-Based Compensation - Liability Classified Valuation Table (Details) - 2017 Awards - Performance Share Units |
3 Months Ended |
---|---|
Mar. 31, 2019 | |
Grant Date Assumptions | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Volatility | 80.65% |
Risk-free interest rate | 1.54% |
Dividend yield | 0.00% |
Reporting Period Assumptions | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Volatility | 66.62% |
Risk-free interest rate | 2.41% |
Dividend yield | 0.00% |
Share-Based Compensation - Performance Share Unit Breakout (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Jan. 01, 2018 |
---|---|---|
Performance Share Units | Award Year 2019, Payable 2020, 2021 and 2022 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Units | 5,359,249 | |
Fair Value | $ 17 | $ 16 |
Vested Liability | $ 0 | |
Performance Share Units | Award Year 2018, Payable 2020 and 2021 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Units | 2,639,765 | |
Fair Value | $ 8 | 8 |
Vested Liability | $ 0 | |
Performance Share Units | Award Year 2017, Payable 2020 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Units | 1,217,774 | |
Fair Value | $ 4 | 8 |
Vested Liability | $ 2 | |
Cash Restricted Stock Units | Award Year 2018, Payable 2020 and 2021 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Units | 9,732,557 | |
Fair Value | $ 30 | $ 29 |
Vested Liability | $ 0 |
Share-Based Compensation - Liability-Classified Compensation Table (Details) - Performance Share Units - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 14 | $ 1 |
General and administrative expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | 9 | 1 |
Oil and natural gas properties | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | 1 | 0 |
Oil, natural gas and NGL production expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | 3 | 0 |
Exploration expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 1 | $ 0 |
Other Operating Expenses - Narrative (Details) - Wildhorse Resource Development Corporation $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2019
USD ($)
| |
Business Acquisition [Line Items] | |
Acquisition related costs | $ 23 |
Severance expense | $ 38 |
Derivative and Hedging Activities - Derivative Instruments Table (Details) MMBbls in Millions, $ in Millions, MMBTU in Trillions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2019
USD ($)
MMBTU
MMBbls
|
Dec. 31, 2017
MMBTU
MMBbls
|
Dec. 31, 2018
USD ($)
|
|
Derivative [Line Items] | |||
Derivative assets (liabilities), at fair value, net | $ (3) | $ 282 | |
Energy related derivative | |||
Derivative [Line Items] | |||
Derivative assets (liabilities), at fair value, net | $ (3) | 282 | |
Energy related derivative | Oil | |||
Derivative [Line Items] | |||
Derivative, nonmonetary notional amount, volume | MMBbls | 37 | 27 | |
Derivative assets (liabilities), at fair value, net | $ (15) | 260 | |
Energy related derivative | Oil | Fixed-price swaps | |||
Derivative [Line Items] | |||
Derivative, nonmonetary notional amount, volume | MMBbls | 21 | 12 | |
Derivative assets (liabilities), at fair value, net | $ (31) | 157 | |
Energy related derivative | Oil | Collars | |||
Derivative [Line Items] | |||
Derivative, nonmonetary notional amount, volume | MMBbls | 6 | 8 | |
Derivative assets (liabilities), at fair value, net | $ 24 | 98 | |
Energy related derivative | Oil | Call swaptions | |||
Derivative [Line Items] | |||
Derivative, nonmonetary notional amount, volume | MMBbls | 2 | ||
Derivative assets (liabilities), at fair value, net | $ (7) | ||
Energy related derivative | Oil | Put options | |||
Derivative [Line Items] | |||
Derivative, nonmonetary notional amount, volume | MMBbls | 2 | ||
Derivative assets (liabilities), at fair value, net | $ (5) | ||
Energy related derivative | Oil | Basis protection swaps | |||
Derivative [Line Items] | |||
Derivative, nonmonetary notional amount, volume | MMBbls | 6 | 7 | |
Derivative assets (liabilities), at fair value, net | $ 4 | 5 | |
Energy related derivative | Natural Gas | |||
Derivative [Line Items] | |||
Derivative, nonmonetary notional amount, energy measure | MMBTU | 871 | 966 | |
Derivative assets (liabilities), at fair value, net | $ 5 | 15 | |
Energy related derivative | Natural Gas | Fixed-price swaps | |||
Derivative [Line Items] | |||
Derivative, nonmonetary notional amount, energy measure | MMBTU | 594 | 623 | |
Derivative assets (liabilities), at fair value, net | $ 21 | 26 | |
Energy related derivative | Natural Gas | Three-way collars | |||
Derivative [Line Items] | |||
Derivative, nonmonetary notional amount, energy measure | MMBTU | 66 | 88 | |
Derivative assets (liabilities), at fair value, net | $ 3 | 1 | |
Energy related derivative | Natural Gas | Collars | |||
Derivative [Line Items] | |||
Derivative, nonmonetary notional amount, energy measure | MMBTU | 28 | 55 | |
Derivative assets (liabilities), at fair value, net | $ 0 | (3) | |
Energy related derivative | Natural Gas | Call options | |||
Derivative [Line Items] | |||
Derivative, nonmonetary notional amount, energy measure | MMBTU | 39 | 44 | |
Derivative assets (liabilities), at fair value, net | $ 0 | 0 | |
Energy related derivative | Natural Gas | Call swaptions | |||
Derivative [Line Items] | |||
Derivative, nonmonetary notional amount, energy measure | MMBTU | 106 | 106 | |
Derivative assets (liabilities), at fair value, net | $ (18) | (9) | |
Energy related derivative | Natural Gas | Basis protection swaps | |||
Derivative [Line Items] | |||
Derivative, nonmonetary notional amount, energy measure | MMBTU | 38 | 50 | |
Derivative assets (liabilities), at fair value, net | $ (1) | 0 | |
Future Natural Gas Prices | Energy related derivative | Utica Shale | |||
Derivative [Line Items] | |||
Derivative assets (liabilities), at fair value, net | $ 7 | $ 7 |
Derivative and Hedging Activities - Derivative Instruments in Balance Sheet Table (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Derivative, fair value, net | $ (3) | $ 282 |
Energy related derivative | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, fair value, net | (3) | 282 |
Not designated as hedging instrument | Commodity contract | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value, gross liability | (3) | 282 |
Derivative liability, fair value, gross asset | 0 | 0 |
Derivative, fair value, net | (3) | 282 |
Short-term derivative asset | Not designated as hedging instrument | Commodity contract | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 69 | 306 |
Derivative asset, fair value, gross liability | (51) | (104) |
Derivative, fair value, net | 18 | 202 |
Long-term derivative asset | Not designated as hedging instrument | Commodity contract | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 61 | 117 |
Derivative asset, fair value, gross liability | (13) | (41) |
Derivative, fair value, net | 48 | 76 |
Short-term derivative liability | Not designated as hedging instrument | Commodity contract | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value, gross liability | (112) | (107) |
Derivative liability, fair value, gross asset | 51 | 104 |
Derivative, fair value, net | (61) | (3) |
Long-term derivative liability | Not designated as hedging instrument | Commodity contract | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value, gross liability | (28) | (41) |
Derivative liability, fair value, gross asset | 13 | 41 |
Derivative, fair value, net | (15) | 0 |
Future Natural Gas Prices | Short-term derivative asset | Not designated as hedging instrument | Energy related derivative | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 7 | 7 |
Derivative asset, fair value, gross liability | 0 | 0 |
Derivative, fair value, net | $ 7 | $ 7 |
Derivative and Hedging Activities - Oil, Natural Gas and NGL Revenues Table (Details) - USD ($) $ in Millions |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
||||
Derivative [Line Items] | |||||
Losses on undesignated oil, natural gas and NGL derivatives | $ (301) | $ (117) | |||
Revenues | 2,196 | 2,524 | [1] | ||
Oil, natural gas and NGL sales | |||||
Derivative [Line Items] | |||||
Losses on terminated cash flow hedges | (10) | (10) | |||
Oil, natural gas and NGL sales | Commodity contract | Not designated as hedging instrument | |||||
Derivative [Line Items] | |||||
Losses on undesignated oil, natural gas and NGL derivatives | (291) | (107) | |||
Oil, natural gas and NGL | |||||
Derivative [Line Items] | |||||
Oil, natural gas and NGL revenues | 1,230 | 1,360 | |||
Revenues | $ 929 | $ 1,243 | [1] | ||
|
Derivative and Hedging Actitities - Marketing Revenues Table (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Derivative [Line Items] | ||
Revenues | $ 1,230 | $ 1,360 |
Losses on undesignated oil, natural gas and NGL derivatives | (301) | (117) |
Marketing, Gathering And Compression | Other contract | ||
Derivative [Line Items] | ||
Losses on undesignated oil, natural gas and NGL derivatives | (2) | 0 |
Marketing | ||
Derivative [Line Items] | ||
Revenues | 1,143 | 1,089 |
Losses on undesignated oil, natural gas and NGL derivatives | (2) | |
Revenues | 1,233 | 1,246 |
Marketing | Marketing, Gathering And Compression | ||
Derivative [Line Items] | ||
Revenues | $ 1,235 | $ 1,246 |
Derivative and Hedging Activities - Cash Flow Hedges Components of AOCI Table (Details) - USD ($) $ in Millions |
3 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
AOCI, after tax, beginning of period | $ (23) | ||||||
Losses reclassified to income, after tax | 10 | $ 10 | [1],[2] | ||||
AOCI, after tax, end of period | (13) | ||||||
Cash flow hedging | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
AOCI, before tax, beginning of period | (80) | (114) | |||||
AOCI, after tax, beginning of period | (23) | (57) | |||||
Losses reclassified to income, before tax | 10 | 10 | |||||
Losses reclassified to income, after tax | 10 | 10 | |||||
AOCI, before tax, end of period | (70) | (104) | |||||
AOCI, after tax, end of period | $ (13) | $ (47) | |||||
|
Derivative and Hedging Activities - Fair Value of Recurring Assets and Liabilities Table (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|---|---|
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Derivative assets (liabilities), at fair value, net | $ (3) | $ 282 | ||
Commodity contract | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Derivative Asset | 116 | 422 | ||
Derivative Liability | (126) | (147) | ||
Energy related derivative | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Derivative assets (liabilities), at fair value, net | (3) | 282 | ||
Energy related derivative | Future Natural Gas Prices | Utica Shale | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Derivative Asset | 7 | |||
Derivative assets (liabilities), at fair value, net | 7 | 7 | ||
Fair Value, Inputs, Level 1 | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Derivative assets (liabilities), at fair value, net | 0 | 0 | ||
Fair Value, Inputs, Level 1 | Commodity contract | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Derivative Asset | 0 | 0 | ||
Derivative Liability | 0 | 0 | ||
Fair Value, Inputs, Level 1 | Energy related derivative | Future Natural Gas Prices | Utica Shale | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Derivative Asset | 0 | |||
Fair Value, Inputs, Level 2 | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Derivative assets (liabilities), at fair value, net | (13) | 188 | ||
Fair Value, Inputs, Level 2 | Commodity contract | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Derivative Asset | 89 | 319 | ||
Derivative Liability | (102) | (131) | ||
Fair Value, Inputs, Level 2 | Energy related derivative | Future Natural Gas Prices | Utica Shale | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Derivative Asset | 0 | |||
Fair Value, Inputs, Level 3 | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Derivative assets (liabilities), at fair value, net | 10 | 94 | ||
Fair Value, Inputs, Level 3 | Commodity contract | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Derivative Asset | 27 | 103 | ||
Derivative Liability | (24) | (16) | ||
Derivative assets (liabilities), at fair value, net | 3 | 87 | $ (24) | $ (15) |
Fair Value, Inputs, Level 3 | Energy related derivative | Future Natural Gas Prices | Utica Shale | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Derivative Asset | 7 | |||
Derivative assets (liabilities), at fair value, net | $ 7 | $ 7 | $ 0 | $ 0 |
Derivative and Hedging Activities - Fair Value Level 3 Measurements Table (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Derivative assets (liabilities), at fair value, net, beginning of period | $ 282 | |
Derivative assets (liabilities), at fair value, net, end of period | (3) | |
Energy related derivative | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Derivative assets (liabilities), at fair value, net, beginning of period | 282 | |
Derivative assets (liabilities), at fair value, net, end of period | (3) | |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Derivative assets (liabilities), at fair value, net, beginning of period | 94 | |
Derivative assets (liabilities), at fair value, net, end of period | 10 | |
Fair Value, Inputs, Level 3 | Oil, natural gas and NGL sales | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Gains (loses) included in earnings | (88) | $ (8) |
Change in unrealized gains (losses) related to assets still held at reporting date | (84) | (10) |
Fair Value, Inputs, Level 3 | Commodity contract | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Derivative assets (liabilities), at fair value, net, beginning of period | 87 | (15) |
Gains (loses) included in earnings | (88) | (8) |
Settlements | 4 | (1) |
Derivative assets (liabilities), at fair value, net, end of period | 3 | (24) |
Future Natural Gas Prices | Utica Shale | Energy related derivative | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Derivative assets (liabilities), at fair value, net, beginning of period | 7 | |
Derivative assets (liabilities), at fair value, net, end of period | 7 | |
Future Natural Gas Prices | Utica Shale | Fair Value, Inputs, Level 3 | Energy related derivative | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Derivative assets (liabilities), at fair value, net, beginning of period | 7 | 0 |
Gains (loses) included in earnings | 0 | 0 |
Settlements | 0 | 0 |
Derivative assets (liabilities), at fair value, net, end of period | $ 7 | $ 0 |
Derivative and Hedging Activities - Quantitative Disclosures Level 3 Table (Details) - Energy related derivative $ in Millions |
Mar. 31, 2019
USD ($)
|
---|---|
Oil | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |
Fair value, measurement with unobservable inputs reconciliations, recurring basis, asset value | $ 17 |
Natural Gas | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |
Fair value, measurement with unobservable inputs reconciliations, recurring basis, liability value | $ (14) |
Measurement Input, Price Volatility [Member] | Oil | Weighted average | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |
Measurement input | 0.2244 |
Measurement Input, Price Volatility [Member] | Oil | Minimum | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |
Measurement input | 0.1258 |
Measurement Input, Price Volatility [Member] | Oil | Maximum | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |
Measurement input | 0.2661 |
Measurement Input, Price Volatility [Member] | Natural Gas | Weighted average | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |
Measurement input | 0.2011 |
Measurement Input, Price Volatility [Member] | Natural Gas | Minimum | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |
Measurement input | 0.1991 |
Measurement Input, Price Volatility [Member] | Natural Gas | Maximum | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |
Measurement input | 0.5481 |
Derivative and Hedging Activities - Narrative (Details) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2018
USD ($)
day
derivative
$ / BTU
|
Mar. 31, 2019
USD ($)
counterparty
derivative
|
|
Derivative [Line Items] | ||
Expected amount to be transferred of during the next 12 months | $ 34 | |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, number of instruments held | derivative | 0 | 0 |
Credit Risk | ||
Derivative [Line Items] | ||
Number of counterparties in hedge facility | counterparty | 15 | |
Disposal group, disposed of by sale, not discontinued operations | Utica Shale | Future Natural Gas Prices | ||
Derivative [Line Items] | ||
Disposal group, including discontinued operation, consideration | $ 100 | |
Debt Iistrument, convertible, threshold trading days | day | 20 | |
Debt instrument, convertible, threshold consecutive trading days | day | 30 | |
2022 NYMEX Natural Gas | Disposal group, disposed of by sale, not discontinued operations | Utica Shale | Future Natural Gas Prices | ||
Derivative [Line Items] | ||
Disposal group, including discontinued operation, consideration | $ 50 | |
2022 NYMEX Natural Gas | Disposal group, disposed of by sale, not discontinued operations | Utica Shale | Future Natural Gas Prices 2022 | ||
Derivative [Line Items] | ||
Average sales prices | $ / BTU | 3.00 | |
2022 NYMEX Natural Gas | Disposal group, disposed of by sale, not discontinued operations | Utica Shale | Future Natural Gas Prices 2023 | ||
Derivative [Line Items] | ||
Average sales prices | $ / BTU | 3.25 |
Investments - Narrative (Details) - USD ($) shares in Millions, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
|
JWH Midstream LLC (JWH) | ||
Schedule of Equity Method Investments [Line Items] | ||
Business acquisition, percent acquired | 50.00% | |
Equity method investments | $ 17 | |
FTS International, Inc. | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment, ownership percentage | 20.00% | 29.00% |
Investment, realized gain (loss) | $ 61 | |
Number of shares sold (in shares) | 4.3 | |
Proceeds from sale of equity method investments | $ 74 | |
Shares held (in shares) | 22.0 | |
FTS International, Inc. | IPO | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment, ownership percentage | 24.00% | |
Investment, realized gain (loss) | $ 78 |
Restructuring and Other Termination Costs Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Jan. 30, 2018 |
Mar. 31, 2019 |
Mar. 31, 2018 |
[1] | |||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and other termination costs, number of positions eliminated, period percent | 13.00% | |||||
Restructuring Reserve [Roll Forward] | ||||||
Restructuring and other termination costs | $ 0 | $ 38 | ||||
One-time termination benefits | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Restructuring and other termination costs | $ 38 | |||||
|
Fair Value Measurements - Assets and Liabilities Table (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value, net asset (liability), total | $ (1) | $ (1) |
Short-term derivative asset | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other current assets | 43 | 50 |
Short-term derivative liability | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other current liabilities | (44) | (51) |
Fair Value, Inputs, Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value, net asset (liability), total | (1) | (1) |
Fair Value, Inputs, Level 1 | Short-term derivative asset | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other current assets | 43 | 50 |
Fair Value, Inputs, Level 1 | Short-term derivative liability | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other current liabilities | (44) | (51) |
Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value, net asset (liability), total | 0 | 0 |
Fair Value, Inputs, Level 2 | Short-term derivative asset | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other current assets | 0 | 0 |
Fair Value, Inputs, Level 2 | Short-term derivative liability | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other current liabilities | 0 | 0 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value, net asset (liability), total | 0 | 0 |
Fair Value, Inputs, Level 3 | Short-term derivative asset | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other current assets | 0 | 0 |
Fair Value, Inputs, Level 3 | Short-term derivative liability | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other current liabilities | $ 0 | $ 0 |
Condensed Consolidating Financial Information - Narrative (Details) |
Mar. 31, 2019 |
---|---|
Owned subsidiaries | Senior notes | |
Condensed Financial Statements, Captions [Line Items] | |
Noncontrolling interest, ownership percentage by parent | 100.00% |
Condensed Consolidating Financial Information - Balance Sheets Table (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
Mar. 31, 2018 |
[1] | ||
---|---|---|---|---|---|---|
CURRENT ASSETS: | ||||||
Cash and cash equivalents | $ 8 | $ 4 | ||||
Other current assets | 1,357 | 1,594 | ||||
Intercompany receivable, net | 0 | 0 | ||||
Total Current Assets | 1,365 | 1,598 | ||||
PROPERTY AND EQUIPMENT: | ||||||
Oil and natural gas properties at cost, based on successful efforts accounting, net | 13,767 | 9,712 | ||||
Other property and equipment, net | 1,156 | 1,091 | ||||
Property and equipment held for sale, net | 16 | 15 | ||||
Total Property and Equipment, Net | 14,939 | 10,818 | ||||
LONG-TERM ASSETS: | ||||||
Other long-term assets | 333 | 319 | ||||
Investments in subsidiaries and intercompany advances | 0 | 0 | ||||
TOTAL ASSETS | 16,637 | 12,735 | ||||
CURRENT LIABILITIES: | ||||||
Current liabilities | 2,930 | 2,887 | ||||
Intercompany payable, net | 0 | 0 | ||||
Total Current Liabilities | 2,930 | 2,887 | ||||
LONG-TERM LIABILITIES: | ||||||
Long-term debt, net | 9,167 | 7,341 | ||||
Other long-term liabilities | 402 | 374 | ||||
Total Long-Term Liabilities | 9,569 | 7,715 | ||||
EQUITY: | ||||||
Chesapeake stockholders’ equity | 4,097 | 2,092 | ||||
Noncontrolling interests | 41 | 41 | ||||
Total Equity | 4,138 | 2,133 | $ 1,942 | |||
TOTAL LIABILITIES AND EQUITY | 16,637 | 12,735 | ||||
Eliminations | ||||||
CURRENT ASSETS: | ||||||
Cash and cash equivalents | (2) | (2) | ||||
Other current assets | 0 | 0 | ||||
Intercompany receivable, net | (6,350) | (6,671) | ||||
Total Current Assets | (6,352) | (6,673) | ||||
PROPERTY AND EQUIPMENT: | ||||||
Oil and natural gas properties at cost, based on successful efforts accounting, net | 0 | 0 | ||||
Other property and equipment, net | 0 | 0 | ||||
Property and equipment held for sale, net | 0 | 0 | ||||
Total Property and Equipment, Net | 0 | 0 | ||||
LONG-TERM ASSETS: | ||||||
Other long-term assets | (310) | 0 | ||||
Investments in subsidiaries and intercompany advances | (8,020) | (3,257) | ||||
TOTAL ASSETS | (14,682) | (9,930) | ||||
CURRENT LIABILITIES: | ||||||
Current liabilities | (2) | (2) | ||||
Intercompany payable, net | (6,350) | (6,671) | ||||
Total Current Liabilities | (6,352) | (6,673) | ||||
LONG-TERM LIABILITIES: | ||||||
Long-term debt, net | 0 | 0 | ||||
Other long-term liabilities | (310) | 0 | ||||
Total Long-Term Liabilities | (310) | 0 | ||||
EQUITY: | ||||||
Chesapeake stockholders’ equity | (8,020) | (3,257) | ||||
Noncontrolling interests | 0 | 0 | ||||
Total Equity | (8,020) | (3,257) | ||||
TOTAL LIABILITIES AND EQUITY | (14,682) | (9,930) | ||||
Parent | Reportable legal entities | ||||||
CURRENT ASSETS: | ||||||
Cash and cash equivalents | 3 | 4 | ||||
Other current assets | 53 | 60 | ||||
Intercompany receivable, net | 6,350 | 6,671 | ||||
Total Current Assets | 6,406 | 6,735 | ||||
PROPERTY AND EQUIPMENT: | ||||||
Oil and natural gas properties at cost, based on successful efforts accounting, net | 0 | 0 | ||||
Other property and equipment, net | 0 | 0 | ||||
Property and equipment held for sale, net | 0 | 0 | ||||
Total Property and Equipment, Net | 0 | 0 | ||||
LONG-TERM ASSETS: | ||||||
Other long-term assets | 347 | 26 | ||||
Investments in subsidiaries and intercompany advances | 5,692 | 3,248 | ||||
TOTAL ASSETS | 12,445 | 10,009 | ||||
CURRENT LIABILITIES: | ||||||
Current liabilities | 521 | 523 | ||||
Intercompany payable, net | 0 | 0 | ||||
Total Current Liabilities | 521 | 523 | ||||
LONG-TERM LIABILITIES: | ||||||
Long-term debt, net | 7,775 | 7,341 | ||||
Other long-term liabilities | 52 | 53 | ||||
Total Long-Term Liabilities | 7,827 | 7,394 | ||||
EQUITY: | ||||||
Chesapeake stockholders’ equity | 4,097 | 2,092 | ||||
Noncontrolling interests | 0 | 0 | ||||
Total Equity | 4,097 | 2,092 | ||||
TOTAL LIABILITIES AND EQUITY | 12,445 | 10,009 | ||||
Guarantor Subsidiaries | Reportable legal entities | ||||||
CURRENT ASSETS: | ||||||
Cash and cash equivalents | 1 | 1 | ||||
Other current assets | 1,208 | 1,532 | ||||
Intercompany receivable, net | 0 | 0 | ||||
Total Current Assets | 1,209 | 1,533 | ||||
PROPERTY AND EQUIPMENT: | ||||||
Oil and natural gas properties at cost, based on successful efforts accounting, net | 9,673 | 9,664 | ||||
Other property and equipment, net | 1,077 | 1,091 | ||||
Property and equipment held for sale, net | 16 | 15 | ||||
Total Property and Equipment, Net | 10,766 | 10,770 | ||||
LONG-TERM ASSETS: | ||||||
Other long-term assets | 245 | 293 | ||||
Investments in subsidiaries and intercompany advances | 2,328 | 9 | ||||
TOTAL ASSETS | 14,548 | 12,605 | ||||
CURRENT LIABILITIES: | ||||||
Current liabilities | 2,203 | 2,365 | ||||
Intercompany payable, net | 6,350 | 6,671 | ||||
Total Current Liabilities | 8,553 | 9,036 | ||||
LONG-TERM LIABILITIES: | ||||||
Long-term debt, net | 0 | 0 | ||||
Other long-term liabilities | 303 | 321 | ||||
Total Long-Term Liabilities | 303 | 321 | ||||
EQUITY: | ||||||
Chesapeake stockholders’ equity | 5,692 | 3,248 | ||||
Noncontrolling interests | 0 | 0 | ||||
Total Equity | 5,692 | 3,248 | ||||
TOTAL LIABILITIES AND EQUITY | 14,548 | 12,605 | ||||
Non-Guarantor Subsidiaries | Reportable legal entities | ||||||
CURRENT ASSETS: | ||||||
Cash and cash equivalents | 6 | 1 | ||||
Other current assets | 96 | 2 | ||||
Intercompany receivable, net | 0 | 0 | ||||
Total Current Assets | 102 | 3 | ||||
PROPERTY AND EQUIPMENT: | ||||||
Oil and natural gas properties at cost, based on successful efforts accounting, net | 4,094 | 48 | ||||
Other property and equipment, net | 79 | 0 | ||||
Property and equipment held for sale, net | 0 | 0 | ||||
Total Property and Equipment, Net | 4,173 | 48 | ||||
LONG-TERM ASSETS: | ||||||
Other long-term assets | 51 | 0 | ||||
Investments in subsidiaries and intercompany advances | 0 | 0 | ||||
TOTAL ASSETS | 4,326 | 51 | ||||
CURRENT LIABILITIES: | ||||||
Current liabilities | 208 | 1 | ||||
Intercompany payable, net | 0 | 0 | ||||
Total Current Liabilities | 208 | 1 | ||||
LONG-TERM LIABILITIES: | ||||||
Long-term debt, net | 1,392 | 0 | ||||
Other long-term liabilities | 357 | 0 | ||||
Total Long-Term Liabilities | 1,749 | 0 | ||||
EQUITY: | ||||||
Chesapeake stockholders’ equity | 2,328 | 9 | ||||
Noncontrolling interests | 41 | 41 | ||||
Total Equity | 2,369 | 50 | ||||
TOTAL LIABILITIES AND EQUITY | $ 4,326 | $ 51 | ||||
|
Condensed Consolidating Financial Information - Income Statements Table (Details) - USD ($) $ in Millions |
3 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
||||||||
REVENUES AND OTHER: | |||||||||
Revenues | $ 2,196 | $ 2,524 | [1] | ||||||
Gains on sales of assets | 19 | 19 | [1],[2] | ||||||
OPERATING EXPENSES: | |||||||||
Production taxes | 34 | 31 | [1] | ||||||
General and administrative | 103 | 87 | [1] | ||||||
Restructuring and other termination costs | 0 | 38 | [1] | ||||||
Provision for legal contingencies, net | 0 | 5 | [1] | ||||||
Depreciation, depletion and amortization | 519 | 459 | [1],[2] | ||||||
Impairments | 1 | 10 | [1],[2] | ||||||
Other operating expense | 61 | 0 | [1] | ||||||
Total Operating Expenses | 2,378 | 2,482 | [1] | ||||||
INCOME (LOSS) FROM OPERATIONS | (182) | 42 | [1] | ||||||
OTHER INCOME (EXPENSE): | |||||||||
Interest expense | (161) | (162) | [1] | ||||||
Gains (losses) on investments | (1) | 139 | [1] | ||||||
Other income (expense) | 9 | (1) | [1] | ||||||
Equity in net earnings of subsidiary | 0 | 0 | |||||||
Total Other Expense | (153) | (24) | [1] | ||||||
INCOME (LOSS) BEFORE INCOME TAXES | (335) | 18 | [1] | ||||||
INCOME TAX BENEFIT | (314) | 0 | [1] | ||||||
NET INCOME (LOSS) | (21) | 18 | [2],[3] | ||||||
Net income attributable to noncontrolling interests | 0 | (1) | [3] | ||||||
NET INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE | (21) | 17 | [1] | ||||||
Other comprehensive income | 10 | 10 | [3] | ||||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE | (11) | 27 | [3] | ||||||
Eliminations | |||||||||
REVENUES AND OTHER: | |||||||||
Revenues | 0 | 0 | |||||||
Gains on sales of assets | 0 | 0 | |||||||
OPERATING EXPENSES: | |||||||||
Production taxes | 0 | 0 | |||||||
General and administrative | 0 | 0 | |||||||
Restructuring and other termination costs | 0 | ||||||||
Provision for legal contingencies, net | 0 | 0 | |||||||
Depreciation, depletion and amortization | 0 | 0 | |||||||
Impairments | 0 | 0 | |||||||
Other operating expense | 0 | ||||||||
Total Operating Expenses | 0 | 0 | |||||||
INCOME (LOSS) FROM OPERATIONS | 0 | 0 | |||||||
OTHER INCOME (EXPENSE): | |||||||||
Interest expense | 0 | 0 | |||||||
Gains (losses) on investments | 0 | 0 | |||||||
Other income (expense) | 0 | 0 | |||||||
Equity in net earnings of subsidiary | 277 | (180) | |||||||
Total Other Expense | 277 | (180) | |||||||
INCOME (LOSS) BEFORE INCOME TAXES | 277 | (180) | |||||||
INCOME TAX BENEFIT | 0 | 0 | |||||||
NET INCOME (LOSS) | 277 | (180) | |||||||
Net income attributable to noncontrolling interests | 0 | 0 | |||||||
NET INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE | 277 | (180) | |||||||
Other comprehensive income | 0 | 0 | |||||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE | 277 | (180) | |||||||
Parent | Reportable legal entities | |||||||||
REVENUES AND OTHER: | |||||||||
Revenues | 0 | 0 | |||||||
Gains on sales of assets | 0 | 0 | |||||||
OPERATING EXPENSES: | |||||||||
Production taxes | 0 | 0 | |||||||
General and administrative | 0 | 0 | |||||||
Restructuring and other termination costs | 0 | ||||||||
Provision for legal contingencies, net | 0 | 0 | |||||||
Depreciation, depletion and amortization | 0 | 0 | |||||||
Impairments | 0 | 0 | |||||||
Other operating expense | 0 | ||||||||
Total Operating Expenses | 0 | 0 | |||||||
INCOME (LOSS) FROM OPERATIONS | 0 | 0 | |||||||
OTHER INCOME (EXPENSE): | |||||||||
Interest expense | (154) | (162) | |||||||
Gains (losses) on investments | 0 | 0 | |||||||
Other income (expense) | 0 | 0 | |||||||
Equity in net earnings of subsidiary | (177) | 179 | |||||||
Total Other Expense | (331) | 17 | |||||||
INCOME (LOSS) BEFORE INCOME TAXES | (331) | 17 | |||||||
INCOME TAX BENEFIT | (310) | 0 | |||||||
NET INCOME (LOSS) | (21) | 17 | |||||||
Net income attributable to noncontrolling interests | 0 | 0 | |||||||
NET INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE | (21) | 17 | |||||||
Other comprehensive income | 0 | 0 | |||||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE | (21) | 17 | |||||||
Guarantor Subsidiaries | Reportable legal entities | |||||||||
REVENUES AND OTHER: | |||||||||
Revenues | 2,117 | 2,519 | |||||||
Gains on sales of assets | 19 | 19 | |||||||
OPERATING EXPENSES: | |||||||||
Production taxes | 28 | 31 | |||||||
General and administrative | 85 | 87 | |||||||
Restructuring and other termination costs | 38 | ||||||||
Provision for legal contingencies, net | 0 | 5 | |||||||
Depreciation, depletion and amortization | 435 | 457 | |||||||
Impairments | 1 | 10 | |||||||
Other operating expense | 23 | ||||||||
Total Operating Expenses | 2,208 | 2,479 | |||||||
INCOME (LOSS) FROM OPERATIONS | (91) | 40 | |||||||
OTHER INCOME (EXPENSE): | |||||||||
Interest expense | 5 | 0 | |||||||
Gains (losses) on investments | 0 | 139 | |||||||
Other income (expense) | 9 | (1) | |||||||
Equity in net earnings of subsidiary | (100) | 1 | |||||||
Total Other Expense | (86) | 139 | |||||||
INCOME (LOSS) BEFORE INCOME TAXES | (177) | 179 | |||||||
INCOME TAX BENEFIT | 0 | 0 | |||||||
NET INCOME (LOSS) | (177) | 179 | |||||||
Net income attributable to noncontrolling interests | 0 | 0 | |||||||
NET INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE | (177) | 179 | |||||||
Other comprehensive income | 10 | 10 | |||||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE | (167) | 189 | |||||||
Non-Guarantor Subsidiaries | Reportable legal entities | |||||||||
REVENUES AND OTHER: | |||||||||
Revenues | 79 | 5 | |||||||
Gains on sales of assets | 0 | 0 | |||||||
OPERATING EXPENSES: | |||||||||
Production taxes | 6 | 0 | |||||||
General and administrative | 18 | 0 | |||||||
Restructuring and other termination costs | 0 | ||||||||
Provision for legal contingencies, net | 0 | 0 | |||||||
Depreciation, depletion and amortization | 84 | 2 | |||||||
Impairments | 0 | 0 | |||||||
Other operating expense | 38 | ||||||||
Total Operating Expenses | 170 | 3 | |||||||
INCOME (LOSS) FROM OPERATIONS | (91) | 2 | |||||||
OTHER INCOME (EXPENSE): | |||||||||
Interest expense | (12) | 0 | |||||||
Gains (losses) on investments | (1) | 0 | |||||||
Other income (expense) | 0 | 0 | |||||||
Equity in net earnings of subsidiary | 0 | 0 | |||||||
Total Other Expense | (13) | 0 | |||||||
INCOME (LOSS) BEFORE INCOME TAXES | (104) | 2 | |||||||
INCOME TAX BENEFIT | (4) | 0 | |||||||
NET INCOME (LOSS) | (100) | 2 | |||||||
Net income attributable to noncontrolling interests | 0 | (1) | |||||||
NET INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE | (100) | 1 | |||||||
Other comprehensive income | 0 | 0 | |||||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE | (100) | 1 | |||||||
Oil, natural gas and NGL | |||||||||
REVENUES AND OTHER: | |||||||||
Revenues | 929 | 1,243 | [1] | ||||||
Oil, natural gas and NGL | Eliminations | |||||||||
REVENUES AND OTHER: | |||||||||
Revenues | 0 | 0 | |||||||
Oil, natural gas and NGL | Parent | Reportable legal entities | |||||||||
REVENUES AND OTHER: | |||||||||
Revenues | 0 | 0 | |||||||
Oil, natural gas and NGL | Guarantor Subsidiaries | Reportable legal entities | |||||||||
REVENUES AND OTHER: | |||||||||
Revenues | 850 | 1,238 | |||||||
Oil, natural gas and NGL | Non-Guarantor Subsidiaries | Reportable legal entities | |||||||||
REVENUES AND OTHER: | |||||||||
Revenues | 79 | 5 | |||||||
Marketing | |||||||||
REVENUES AND OTHER: | |||||||||
Revenues | 1,233 | 1,246 | [1] | ||||||
Revenues | 1,233 | 1,246 | |||||||
OPERATING EXPENSES: | |||||||||
Expense | 1,230 | 1,268 | [1] | ||||||
Marketing | Eliminations | |||||||||
REVENUES AND OTHER: | |||||||||
Revenues | 0 | 0 | |||||||
OPERATING EXPENSES: | |||||||||
Expense | 0 | 0 | |||||||
Marketing | Parent | Reportable legal entities | |||||||||
REVENUES AND OTHER: | |||||||||
Revenues | 0 | 0 | |||||||
OPERATING EXPENSES: | |||||||||
Expense | 0 | 0 | |||||||
Marketing | Guarantor Subsidiaries | Reportable legal entities | |||||||||
REVENUES AND OTHER: | |||||||||
Revenues | 1,233 | 1,246 | |||||||
OPERATING EXPENSES: | |||||||||
Expense | 1,230 | 1,268 | |||||||
Marketing | Non-Guarantor Subsidiaries | Reportable legal entities | |||||||||
REVENUES AND OTHER: | |||||||||
Revenues | 0 | 0 | |||||||
OPERATING EXPENSES: | |||||||||
Expense | 0 | 0 | |||||||
Oil, natural gas and NGL and Marketing | |||||||||
REVENUES AND OTHER: | |||||||||
Revenues | 2,162 | 2,489 | [1] | ||||||
Oil, natural gas and NGL and Marketing | Eliminations | |||||||||
REVENUES AND OTHER: | |||||||||
Revenues | 0 | 0 | |||||||
Oil, natural gas and NGL and Marketing | Parent | Reportable legal entities | |||||||||
REVENUES AND OTHER: | |||||||||
Revenues | 0 | 0 | |||||||
Oil, natural gas and NGL and Marketing | Guarantor Subsidiaries | Reportable legal entities | |||||||||
REVENUES AND OTHER: | |||||||||
Revenues | 2,083 | 2,484 | |||||||
Oil, natural gas and NGL and Marketing | Non-Guarantor Subsidiaries | Reportable legal entities | |||||||||
REVENUES AND OTHER: | |||||||||
Revenues | 79 | 5 | |||||||
Other | |||||||||
REVENUES AND OTHER: | |||||||||
Revenues | 15 | 16 | [1] | ||||||
Other | Eliminations | |||||||||
REVENUES AND OTHER: | |||||||||
Revenues | 0 | 0 | |||||||
Other | Parent | Reportable legal entities | |||||||||
REVENUES AND OTHER: | |||||||||
Revenues | 0 | 0 | |||||||
Other | Guarantor Subsidiaries | Reportable legal entities | |||||||||
REVENUES AND OTHER: | |||||||||
Revenues | 15 | 16 | |||||||
Other | Non-Guarantor Subsidiaries | Reportable legal entities | |||||||||
REVENUES AND OTHER: | |||||||||
Revenues | 0 | 0 | |||||||
Oil, natural gas and NGL production | |||||||||
OPERATING EXPENSES: | |||||||||
Expense | 132 | 147 | [1] | ||||||
Oil, natural gas and NGL production | Eliminations | |||||||||
OPERATING EXPENSES: | |||||||||
Expense | 0 | 0 | |||||||
Oil, natural gas and NGL production | Parent | Reportable legal entities | |||||||||
OPERATING EXPENSES: | |||||||||
Expense | 0 | 0 | |||||||
Oil, natural gas and NGL production | Guarantor Subsidiaries | Reportable legal entities | |||||||||
OPERATING EXPENSES: | |||||||||
Expense | 117 | 147 | |||||||
Oil, natural gas and NGL production | Non-Guarantor Subsidiaries | Reportable legal entities | |||||||||
OPERATING EXPENSES: | |||||||||
Expense | 15 | 0 | |||||||
Oil, natural gas and NGL gathering, processing and transportation | |||||||||
OPERATING EXPENSES: | |||||||||
Expense | 274 | 356 | [1] | ||||||
Oil, natural gas and NGL gathering, processing and transportation | Eliminations | |||||||||
OPERATING EXPENSES: | |||||||||
Expense | 0 | 0 | |||||||
Oil, natural gas and NGL gathering, processing and transportation | Parent | Reportable legal entities | |||||||||
OPERATING EXPENSES: | |||||||||
Expense | 0 | 0 | |||||||
Oil, natural gas and NGL gathering, processing and transportation | Guarantor Subsidiaries | Reportable legal entities | |||||||||
OPERATING EXPENSES: | |||||||||
Expense | 269 | 355 | |||||||
Oil, natural gas and NGL gathering, processing and transportation | Non-Guarantor Subsidiaries | Reportable legal entities | |||||||||
OPERATING EXPENSES: | |||||||||
Expense | 5 | 1 | |||||||
Exploration | |||||||||
OPERATING EXPENSES: | |||||||||
Expense | 24 | 81 | [1] | ||||||
Exploration | Eliminations | |||||||||
OPERATING EXPENSES: | |||||||||
Expense | 0 | 0 | |||||||
Exploration | Parent | Reportable legal entities | |||||||||
OPERATING EXPENSES: | |||||||||
Expense | 0 | 0 | |||||||
Exploration | Guarantor Subsidiaries | Reportable legal entities | |||||||||
OPERATING EXPENSES: | |||||||||
Expense | 20 | 81 | |||||||
Exploration | Non-Guarantor Subsidiaries | Reportable legal entities | |||||||||
OPERATING EXPENSES: | |||||||||
Expense | $ 4 | $ 0 | |||||||
|
Condensed Consolidating Financial Information - Information Statements of Cash Flows Tables (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Sep. 30, 2017 |
[1] | ||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net Cash Provided By Operating Activities | $ 456 | $ 588 | [1] | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Drilling and completion costs | (515) | (420) | [1] | ||||
Business combination, net | (353) | 0 | [1] | ||||
Acquisitions of proved and unproved properties | (6) | (17) | [1] | ||||
Proceeds from divestitures of proved and unproved properties | 26 | 319 | [1] | ||||
Additions to other property and equipment | (9) | (3) | [1] | ||||
Other investing activities | 1 | 142 | |||||
Net Cash Provided By (Used In) Investing Activities | (856) | 21 | [1] | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Proceeds from revolving credit facility borrowings | 3,572 | 2,904 | [1] | ||||
Payments on revolving credit facility borrowings | (3,136) | (3,485) | [1] | ||||
Cash paid to purchase debt | (1) | $ 0 | |||||
Cash paid for preferred stock dividends | (23) | (23) | [1] | ||||
Other financing activities | (8) | (6) | |||||
Intercompany advances, net | 0 | 0 | |||||
Net Cash Provided By (Used In) Financing Activities | 404 | (610) | [1] | ||||
Net increase (decrease) in cash and cash equivalents | 4 | (1) | [1] | ||||
Cash and cash equivalents, beginning of period | 4 | 5 | [1] | ||||
Cash and cash equivalents, end of period | 8 | 4 | [1] | ||||
Eliminations | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net Cash Provided By Operating Activities | (1) | (4) | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Drilling and completion costs | 0 | 0 | |||||
Business combination, net | 0 | ||||||
Acquisitions of proved and unproved properties | 0 | 0 | |||||
Proceeds from divestitures of proved and unproved properties | 0 | 0 | |||||
Additions to other property and equipment | 0 | 0 | |||||
Other investing activities | 0 | 0 | |||||
Net Cash Provided By (Used In) Investing Activities | 0 | 0 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Proceeds from revolving credit facility borrowings | 0 | 0 | |||||
Payments on revolving credit facility borrowings | 0 | 0 | |||||
Cash paid to purchase debt | 0 | ||||||
Cash paid for preferred stock dividends | 0 | 0 | |||||
Other financing activities | 1 | (25) | |||||
Intercompany advances, net | 0 | 0 | |||||
Net Cash Provided By (Used In) Financing Activities | 1 | (25) | |||||
Net increase (decrease) in cash and cash equivalents | 0 | (29) | |||||
Cash and cash equivalents, beginning of period | (2) | (3) | |||||
Cash and cash equivalents, end of period | (2) | (32) | |||||
Parent | Reportable legal entities | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net Cash Provided By Operating Activities | 0 | 78 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Drilling and completion costs | 0 | 0 | |||||
Business combination, net | 0 | ||||||
Acquisitions of proved and unproved properties | 0 | 0 | |||||
Proceeds from divestitures of proved and unproved properties | 0 | 0 | |||||
Additions to other property and equipment | 0 | 0 | |||||
Other investing activities | 0 | 0 | |||||
Net Cash Provided By (Used In) Investing Activities | 0 | 0 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Proceeds from revolving credit facility borrowings | 3,449 | 2,904 | |||||
Payments on revolving credit facility borrowings | (3,026) | (3,485) | |||||
Cash paid to purchase debt | (1) | ||||||
Cash paid for preferred stock dividends | (23) | (23) | |||||
Other financing activities | (7) | 25 | |||||
Intercompany advances, net | (393) | 530 | |||||
Net Cash Provided By (Used In) Financing Activities | (1) | (49) | |||||
Net increase (decrease) in cash and cash equivalents | (1) | 29 | |||||
Cash and cash equivalents, beginning of period | 4 | 5 | |||||
Cash and cash equivalents, end of period | 3 | 34 | |||||
Guarantor Subsidiaries | Reportable legal entities | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net Cash Provided By Operating Activities | 421 | 509 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Drilling and completion costs | (406) | (420) | |||||
Business combination, net | (381) | ||||||
Acquisitions of proved and unproved properties | (6) | (17) | |||||
Proceeds from divestitures of proved and unproved properties | 26 | 319 | |||||
Additions to other property and equipment | (6) | (3) | |||||
Other investing activities | 1 | 142 | |||||
Net Cash Provided By (Used In) Investing Activities | (772) | 21 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Proceeds from revolving credit facility borrowings | 0 | 0 | |||||
Payments on revolving credit facility borrowings | 0 | 0 | |||||
Cash paid to purchase debt | 0 | ||||||
Cash paid for preferred stock dividends | 0 | 0 | |||||
Other financing activities | (1) | (2) | |||||
Intercompany advances, net | 352 | (528) | |||||
Net Cash Provided By (Used In) Financing Activities | 351 | (530) | |||||
Net increase (decrease) in cash and cash equivalents | 0 | 0 | |||||
Cash and cash equivalents, beginning of period | 1 | 1 | |||||
Cash and cash equivalents, end of period | 1 | 1 | |||||
Non-Guarantor Subsidiaries | Reportable legal entities | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net Cash Provided By Operating Activities | 36 | 5 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Drilling and completion costs | (109) | 0 | |||||
Business combination, net | 28 | ||||||
Acquisitions of proved and unproved properties | 0 | 0 | |||||
Proceeds from divestitures of proved and unproved properties | 0 | 0 | |||||
Additions to other property and equipment | (3) | 0 | |||||
Other investing activities | 0 | 0 | |||||
Net Cash Provided By (Used In) Investing Activities | (84) | 0 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Proceeds from revolving credit facility borrowings | 123 | 0 | |||||
Payments on revolving credit facility borrowings | (110) | 0 | |||||
Cash paid to purchase debt | 0 | ||||||
Cash paid for preferred stock dividends | 0 | 0 | |||||
Other financing activities | (1) | (4) | |||||
Intercompany advances, net | 41 | (2) | |||||
Net Cash Provided By (Used In) Financing Activities | 53 | (6) | |||||
Net increase (decrease) in cash and cash equivalents | 5 | (1) | |||||
Cash and cash equivalents, beginning of period | 1 | 2 | |||||
Cash and cash equivalents, end of period | $ 6 | $ 1 | |||||
|
Subsequent Events (Details) - USD ($) shares in Millions |
Apr. 15, 2019 |
Apr. 03, 2019 |
Mar. 31, 2019 |
Feb. 01, 2019 |
Dec. 31, 2018 |
---|---|---|---|---|---|
Subsequent Event [Line Items] | |||||
Debt instrument, face amount | $ 9,978,000,000 | $ 8,168,000,000 | |||
Senior notes | 6.625% senior notes due 2020 | |||||
Subsequent Event [Line Items] | |||||
Debt instrument, face amount | $ 437,000,000 | 437,000,000 | |||
Interest rate, stated percentage | 6.625% | ||||
Senior notes | 6.875% senior notes due 2025 | |||||
Subsequent Event [Line Items] | |||||
Debt instrument, face amount | $ 700,000,000 | $ 700,000,000 | 0 | ||
Interest rate, stated percentage | 6.875% | 6.875% | |||
Senior notes | 6.125% senior notes due 2021 | |||||
Subsequent Event [Line Items] | |||||
Debt instrument, face amount | $ 548,000,000 | 548,000,000 | |||
Interest rate, stated percentage | 6.125% | ||||
Senior notes | 5.375% senior notes due 2021 | |||||
Subsequent Event [Line Items] | |||||
Debt instrument, face amount | $ 267,000,000 | $ 267,000,000 | |||
Interest rate, stated percentage | 5.375% | ||||
Subsequent Event | Senior notes | |||||
Subsequent Event [Line Items] | |||||
Amount of Notes Exchanged | 884 | ||||
Debt redemption, percent of principal amount of notes to be redeemed | 100.00% | ||||
Debt redemption, percent of aggregate amount of notes to be redeemed | 35.00% | ||||
Repayments of senior debt | $ 380,000,000 | ||||
Subsequent Event | Senior notes | 8.00% Senior Notes due 2026 | |||||
Subsequent Event [Line Items] | |||||
Debt instrument, face amount | $ 919,000,000 | ||||
Interest rate, stated percentage | 8.00% | ||||
Subsequent Event | Senior notes | 6.625% senior notes due 2020 | |||||
Subsequent Event [Line Items] | |||||
Amount of Notes Exchanged | 229 | ||||
Subsequent Event | Senior notes | 6.875% senior notes due 2025 | |||||
Subsequent Event [Line Items] | |||||
Amount of Notes Exchanged | 134 | ||||
Subsequent Event | Senior notes | 6.125% senior notes due 2021 | |||||
Subsequent Event [Line Items] | |||||
Amount of Notes Exchanged | 381 | ||||
Subsequent Event | Senior notes | 5.375% senior notes due 2021 | |||||
Subsequent Event [Line Items] | |||||
Amount of Notes Exchanged | 140 |
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