Oil and Gas Assets:

Property and Equipment

Property and equipment consisted of the following at December 31:



	2014			2013
	(In millions)
Oil and gas properties:
Subject to amortization	$	15,707		$	15,107
Not subject to amortization	677			1,300
Gross oil and gas properties	16,384			16,407
Accumulated depreciation, depletion and amortization	(8,152		)	(8,306		)
Net oil and gas properties	$	8,232		$	8,101
Other property and equipment:
Furniture, fixtures and equipment	$	144		$	139
Gathering systems and equipment	114			104
Accumulated depreciation and amortization	(76		)	(69		)
Net other property and equipment	$	182		$	174

Oil and gas properties not subject to amortization represent investments in unproved properties and major development projects in which we own an interest. These unproved property costs include unevaluated leasehold acreage, geological and geophysical data costs associated with leasehold or drilling interests, costs associated with wells in progress at year-end and capitalized internal costs. We exclude these costs on a country-by-country basis until proved reserves are found or until it is determined that the costs are impaired. Unproved property costs are grouped by major prospect area where individual property costs are not significant and are assessed individually when individual costs are significant. Costs associated with wells in progress are transferred to the amortization base upon the determination of whether proved reserves can be assigned to the properties, which is generally based on drilling results. All other costs excluded from the amortization base are reviewed quarterly to determine if impairment has occurred. The amount of any impairment is transferred to the amortization base or a charge is made against earnings for international operations if a reserve base has not yet been established.

During the fourth quarter of 2014, crude oil and natural gas prices declined to price levels that are likely to change our future development plans in certain operating areas of our domestic business. Accordingly, we transferred approximately $760 million of costs that were previously withheld from the full cost pool into the full cost pool amortization base.

Oil and gas properties not subject to amortization as of December 31, 2014, consisted of the following:



	Costs Incurred In
	2014		2013		2012		2011 and Prior		Total
	(In millions)
Acquisition costs	$	185	$	159	$	41	$	84	$	469
Exploration costs	111		—		—		3		114
Fee mineral interests	—		1		—		23		24
Capitalized interest	53		17		—		—		70
Total oil and gas properties not subject to amortization	$	349	$	177	$	41	$	110	$	677

Granite Wash Asset Sale

In September 2014, we closed on the sale of our Granite Wash assets, located primarily in Texas, for approximately $588 million, subject to customary post-closing purchase price adjustments. The sale of our Granite Wash assets did not significantly alter the relationship between capitalized costs and proved reserves, and as such, all proceeds were recorded as adjustments to our domestic full cost pool with no gain or loss recognized. These consolidated financial statements include the results of our Granite Wash operations through the date of sale.

Gulf of Mexico Asset Sale

In October 2012, we closed the sale of our remaining assets in the Gulf of Mexico to W&T Offshore, Inc. for approximately $208 million, subject to customary post-closing adjustments. The sale of our remaining assets in the Gulf of Mexico did not significantly alter the relationship between capitalized costs and proved reserves, and as such, all proceeds were recorded as adjustments to our domestic full cost pool with no gain or loss recognized. These consolidated financial statements include the results of our Gulf of Mexico operations through the date of sale.

Other Asset Acquisitions and Sales

During 2014, 2013 and 2012, we acquired various other oil and gas properties for approximately $33 million, $72 million and $9 million, respectively, and sold certain other oil and gas properties for proceeds of approximately $69 million, $36 million and $422 million, respectively. The cash flows and results of operations for the assets included in a sale are included in our consolidated financial statements up to the date of sale. All of the proceeds associated with our asset sales were recorded as adjustments to our domestic full cost pool.