Condensed Consolidating Financial Information (Tables)

9 Months Ended

Sep. 30, 2011

Condensed Consolidating Financial Information [Abstract]

Condensed Consolidating Balance Sheet

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF SEPTEMBER 30, 2011

($ in millions)

	Parent			Guarantor Subsidiaries		Non- Guarantor  Subsidiaries		Eliminations			Consolidated
CURRENT ASSETS:
Cash and cash equivalents	$	—		$	88	$	23	$	—		$	111
Other		1			3,194		182		(18	)		3,359
Total Current Assets		1			3,282		205		(18	)		3,470
PROPERTY AND EQUIPMENT:
Natural gas and oil properties, at cost based on full-cost accounting, net		—			29,644		4		—			29,648
Other property and equipment, net		—			3,858		1,632		—			5,490
Total Property and Equipment, Net		—			33,502		1,636		—			35,138
Other assets		166			900		787		(339	)		1,514
Investments in subsidiaries and intercompany advances		2,371			293		—		(2,664	)		—
TOTAL ASSETS	$	2,538		$	37,977	$	2,628	$	(3,021	)	$	40,122
CURRENT LIABILITIES:
Current liabilities	$	216		$	5,704	$	294	$	(19	)	$	6,195
Intercompany payable to (receivable) from parent		(22,574	)		21,331		1,205		38			—
Total Current Liabilities		(22,358	)		27,035		1,499		19			6,195
LONG-TERM LIABILITIES:
Long-term debt, net		8,226			3,236		327		—			11,789
Deferred income tax liabilities		341			3,065		156		(38	)		3,524
Other liabilities		31			2,270		353		(338	)		2,316
Total Long-Term Liabilities		8,598			8,571		836		(376	)		17,629
STOCKHOLDERS' EQUITY:
Total Stockholders' Equity		16,298			2,371		293		(2,664	)		16,298
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	2,538		$	37,977	$	2,628	$	(3,021	)	$	40,122

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2010

($ in millions)

	Parent			Guarantor Subsidiaries		Non- Guarantor   Subsidiaries		Eliminations			Consolidated
CURRENT ASSETS:
Cash and cash equivalents	$	—		$	2	$	100	$	—		$	102
Other		7			3,065		123		(31	)		3,164
Total Current Assets		7			3,067		223		(31	)		3,266
PROPERTY AND EQUIPMENT:
Natural gas and oil properties, at cost based on full-cost accounting, net		—			27,822		4		—			27,826
Other property and equipment, net		—			3,246		1,306		—			4,552
Total Property and Equipment, Net		—			31,068		1,310		—			32,378
Other assets		166			669		700		—			1,535
Investments in subsidiaries and intercompany advances		1,217			269		—		(1,486	)		—
TOTAL ASSETS	$	1,390		$	35,073	$	2,233	$	(1,517	)	$	37,179
CURRENT LIABILITIES:
Current liabilities	$	302		$	4,082	$	137	$	(31	)	$	4,490
Intercompany payable to (receivable) from parent		(23,664	)		21,955		1,596		113			—
Total Current Liabilities		(23,362	)		26,037		1,733		82			4,490
LONG-TERM LIABILITIES:
Long-term debt, net		8,934			3,612		94		—			12,640
Deferred income tax liabilities		482			1,885		130		(113	)		2,384
Other liabilities		72			2,322		7		—			2,401
Total Long-Term Liabilities		9,488			7,819		231		(113	)		17,425
STOCKHOLDERS' EQUITY:
Total Stockholders' Equity		15,264			1,217		269		(1,486	)		15,264
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,390		$	35,073	$	2,233	$	(1,517	)	$	37,179

Condensed Consolidating Statement Of Operations

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

THREE MONTHS ENDED SEPTEMBER 30, 2011

($ in millions)

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
REVENUES:
Natural gas and oil sales	$	—		$	2,402		$	—		$	—		$	2,402
Marketing, gathering and compression sales		—			1,393			55			(26	)		1,422
Oilfield services revenue		—			129			24			—			153
Total Revenues		—			3,924			79			(26	)		3,977
OPERATING COSTS:
Production expenses		—			282			—			—			282
Production taxes		—			50			—			—			50
General and administrative expenses		—			143			8			—			151
Marketing, gathering and compression expenses		—			1,377			30			(15	)		1,392
Oilfield services expense		—			94			24			—			118
Natural gas and oil depreciation, depletion and amortization		—			423			—			—			423
Depreciation and amortization of other assets		—			59			16			—			75
Losses on sales of other property and equipment		—			1			2			—			3
Total Operating Costs		—			2,429			80			(15	)		2,494
INCOME (LOSS) FROM OPERATIONS		—			1,495			(1	)		(11	)		1,483
OTHER INCOME (EXPENSE):
Interest expense		(138	)		(17	)		(7	)		158			(4	)
Earnings on investments		—			4			24			—			28
Other income		152			9			1			(158	)		4
Equity in net earnings of subsidiary		914			4			—			(918	)		—
Total Other Income		928			—			18			(918	)		28
INCOME BEFORE INCOME TAXES		928			1,495			17			(929	)		1,511
INCOME TAX EXPENSE		6			581			6			(4	)		589
NET INCOME	$	922		$	914		$	11		$	(925	)	$	922

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

THREE MONTHS ENDED SEPTEMBER 30, 2010

($ in millions)

	Parent			Guarantor Subsidiaries			Non- Guarantor  Subsidiaries			Eliminations			Consolidated
REVENUES:
Natural gas and oil sales	$	—		$	1,639		$	—		$	—		$	1,639
Marketing, gathering and compression sales		—			856			69			(42	)		883
Oilfield services revenue		—			59			—			—			59
Total Revenues		—			2,554			69			(42	)		2,581
OPERATING COSTS:
Production expenses		—			231			—			—			231
Production taxes		—			34			—			—			34
General and administrative expenses		2			113			10			—			125
Marketing, gathering and compression expenses		—			838			37			(24	)		851
Oilfield services expense		—			52			—			—			52
Natural gas and oil depreciation, depletion and amortization		—			378			—			—			378
Depreciation and amortization of other assets		—			43			13			—			56
Losses on sales of other property and equipment		—			2			15			—			17
Other impairments		—			1			19			—			20
Total Operating Costs		2			1,692			94			(24	)		1,764
INCOME (LOSS) FROM OPERATIONS		(2	)		862			(25	)		(18	)		817
OTHER INCOME (EXPENSE):
Interest expense		(153	)		(17	)		—			167			(3	)
Earnings on investments		—			43			108			—			151
Losses on purchases or exchanges of debt		(59	)		—			—			—			(59	)
Impairment of investments		—			(16	)		—			—			(16	)
Other income		167			4			13			(167	)		17
Equity in net earnings of subsidiary		587			48			—			(635	)		—
Total Other Income		542			62			121			(635	)		90
INCOME BEFORE INCOME TAXES		540			924			96			(653	)		907
INCOME TAX EXPENSE (BENEFIT)		(18	)		337			37			(7	)		349
NET INCOME	$	558		$	587		$	59		$	(646	)	$	558

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

NINE MONTHS ENDED SEPTEMBER 30, 2011

($ in millions)

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
REVENUES:
Natural gas and oil sales	$	—		$	4,688		$	—		$	—		$	4,688
Marketing, gathering and compression sales		—			3,766			153			(75	)		3,844
Oilfield services revenue		—			351			25			—			376
Total Revenues		—			8,805			178			(75	)		8,908
OPERATING COSTS:
Production expenses		—			782			—			—			782
Production taxes		—			140			—			—			140
General and administrative expenses		—			387			23			—			410
Marketing, gathering and compression expenses		—			3,698			96			(50	)		3,744
Oilfield services expense		—			262			25			—			287
Natural gas and oil depreciation, depletion and amortization		—			1,147			—			—			1,147
Depreciation and amortization of other assets		—			166			40			—			206
(Gains) losses on sales of other property and equipment		—			6			(3	)		—			3
Other impairments		—			—			4			—			4
Total Operating Costs		—			6,588			185			(50	)		6,723
INCOME (LOSS) FROM OPERATIONS		—			2,217			(7	)		(25	)		2,185
OTHER INCOME (EXPENSE):
Interest expense		(488	)		(42	)		(9	)		502			(37	)
Earnings on investments		—			36			64			—			100
Losses on purchases or exchanges of debt		(176	)		—			—			—			(176	)
Other income		494			14			3			(502	)		9
Equity in net earnings of subsidiary		1,373			16			—			(1,389	)		—
Total Other Income (Expense)		1,203			24			58			(1,389	)		(104	)
INCOME BEFORE INCOME TAXES		1,203			2,241			51			(1,414	)		2,081
INCOME TAX EXPENSE (BENEFIT)		(66	)		868			20			(10	)		812
NET INCOME	$	1,269		$	1,373		$	31		$	(1,404	)	$	1,269

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

NINE MONTHS ENDED SEPTEMBER 30, 2010

($ in millions)

	Parent			Guarantor Subsidiaries			Non- Guarantor  Subsidiaries			Eliminations			Consolidated
REVENUES:
Natural gas and oil sales	$	—		$	4,698		$	—		$	—		$	4,698
Marketing, gathering and compression sales		—			2,437			179			(96	)		2,520
Oilfield services revenue		—			173			—			—			173
Total Revenues		—			7,308			179			(96	)		7,391
OPERATING COSTS:
Production expenses		—			652			—			—			652
Production taxes		—			119			—			—			119
General and administrative expenses		2			315			23			—			340
Marketing, gathering and compression expenses		—			2,383			90			(44	)		2,429
Oilfield services expense		—			154			—			—			154
Natural gas and oil depreciation, depletion and amortization		—			1,025			—			—			1,025
Depreciation and amortization of other assets		—			124			35			—			159
Losses on sales of other property and equipment		—			2			15			—			17
Other impairments		—			1			19			—			20
Total Operating Costs		2			4,775			182			(44	)		4,915
INCOME (LOSS) FROM OPERATIONS		(2	)		2,533			(3	)		(52	)		2,476
OTHER INCOME (EXPENSE):
Interest expense		(451	)		(109	)		(1	)		549			(12	)
Earnings on investments		—			39			151			—			190
Losses on purchases or exchanges of debt		(130	)		—			—			—			(130	)
Impairment of investments		—			(16	)		—			—			(16	)
Other income		549			9			3			(549	)		12
Equity in net earnings of subsidiary		1,571			60			—			(1,631	)		—
Total Other Income (Expense)		1,539			(17	)		153			(1,631	)		44
INCOME BEFORE INCOME TAXES		1,537			2,516			150			(1,683	)		2,520
INCOME TAX EXPENSE (BENEFIT)		(13	)		945			58			(20	)		970
NET INCOME	$	1,550		$	1,571		$	92		$	(1,663	)	$	1,550

Condensed Consolidating Statement Of Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

NINE MONTHS ENDED SEPTEMBER 30, 2011

($ in millions)

	Parent			Guarantor   Subsidiaries			Non- Guarantor   Subsidiaries			Eliminations			Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES	$	—		$	3,783		$	166		$	(225	)	$	3,724
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to natural gas and oil properties		—			(9,118	)		—			—			(9,118	)
Proceeds from divestitures of proved and unproved properties		—			6,357			—			—			6,357
Additions to other property and equipment		—			(632	)		(784	)		—			(1,416	)
Other investing activities		—			(30	)		93			399			462
Cash used in investing activities		—			(3,423	)		(691	)		399			(3,715	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from credit facilities borrowings		—			10,791			1,123			—			11,914
Payments on credit facilities borrowings		—			(11,167	)		(890	)		—			(12,057	)
Proceeds from issuance of senior notes, net of offering costs		977			—			—			—			977
Cash paid to purchase debt		(2,015	)		—			—			—			(2,015	)
Other financing activities		(388	)		1,558			185			(174	)		1,181
Intercompany advances, net		1,426			(1,456	)		30			—			—
Cash provided by (used in) financing activities		—			(274	)		448			(174	)		—
Net increase (decrease) in cash and cash equivalents		—			86			(77	)		—			9
Cash and cash equivalents, beginning of period		—			2			100			—			102
Cash and cash equivalents, end of period	$	—		$	88		$	23		$	—		$	111

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

NINE MONTHS ENDED SEPTEMBER 30, 2010

($ in millions)

	Parent			Guarantor   Subsidiaries			Non- Guarantor   Subsidiaries			Eliminations		Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES	$	—		$	3,793		$	178		$	—	$	3,971
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to natural gas and oil properties		—			(7,935	)		—			—		(7,935	)
Proceeds from divestitures of proved and unproved properties		—			3,107			—			—		3,107
Additions to other property and equipment		—			(412	)		(556	)		—		(968	)
Other investing activities		—			—			131			—		131
Cash used in investing activities		—			(5,240	)		(425	)		—		(5,665	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from credit facilities borrowings		—			10,076			382			—		10,458
Payments on credit facilities borrowings		—			(9,736	)		(127	)		—		(9,863	)
Proceeds from issuance of preferred stock, net of offering costs		2,562			—			—			—		2,562
Proceeds from issuance of senior notes, net of offering costs		1,967			—			—			—		1,967
Cash paid to purchase debt		(3,434	)		—			—			—		(3,434	)
Other financing activities		(243	)		543			6			—		306
Intercompany advances, net		(852	)		858			(6	)		—		—
Cash provided by financing activities		—			1,741			255			—		1,996
Net increase in cash and cash equivalents		—			294			8			—		302
Cash and cash equivalents, beginning of period		—			293			14			—		307
Cash and cash equivalents, end of period	$	—		$	587		$	22		$	—	$	609