Delaware
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25-0996816
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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Title of each class
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Name of each exchange on which registered
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Common Stock, par value $1.00
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New York Stock Exchange
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•
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conditions in the oil and gas industry, including pricing and supply/demand levels for crude oil and condensate, NGLs, natural gas and synthetic crude oil;
|
•
|
changes in expected reserve or production levels;
|
•
|
changes in political or economic conditions in key operating markets, including international markets;
|
•
|
capital available for exploration and development;
|
•
|
well production timing;
|
•
|
availability of drilling rigs, materials and labor;
|
•
|
difficulty in obtaining necessary approvals and permits;
|
•
|
non-performance by third parties of their contractual obligations;
|
•
|
unforeseen hazards such as weather conditions, acts of war or terrorist acts and the governmental or military response thereto;
|
•
|
cyber-attacks;
|
•
|
changes in safety, health, environmental and other regulations;
|
•
|
other geological, operating and economic considerations; and
|
•
|
other factors discussed in Item 1. Business, Item 1A. Risk Factors, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, Item 7A. Quantitative and Qualitative Disclosures About Market Risk, and elsewhere in this report.
|
•
|
North America E&P – explores for, produces and markets crude oil and condensate, NGLs and natural gas in North America;
|
•
|
International E&P – explores for, produces and markets crude oil and condensate, NGLs and natural gas outside of North America and produces and markets products manufactured from natural gas, such as LNG and methanol, in E.G.; and
|
•
|
Oil Sands Mining – mines, extracts and transports bitumen from oil sands deposits in Alberta, Canada, and upgrades the bitumen to produce and market synthetic crude oil and vacuum gas oil.
|
2.
|
Investing in Our People
|
3.
|
Continuous Improvement in Operational and Capital Efficiency
|
4.
|
Driving Profitable and Sustainable Growth
|
5.
|
Rigorous Portfolio Management
|
6.
|
Quality and Material Resource Capture
|
7.
|
Delivering Long-Term Shareholder Value
|
•
|
Reduced our 2015 Capital Program by approximately 50% from the prior year, down to $3 billion
|
•
|
Established our 2016 Capital Program at
$1.4 billion
|
•
|
Exercised cost discipline, significantly reducing drilling and completion, production and general and administrative costs
|
•
|
Drove sustainable operational efficiency gains in the U.S. unconventional resource plays
|
•
|
Scaled back our conventional exploration program to focus on our U.S. unconventional resources plays
|
•
|
Increased our target for non-core asset sales, now $750 million to $1 billion, up from our previous goal of $500 million
|
◦
|
Closed over $300 million of non-core asset sales (excluding closing adjustments)
|
•
|
Protected our liquidity and capital structure:
|
◦
|
Issued $2 billion aggregate principal amount of unsecured senior notes ($1 billion of which was used to repay the 0.90% senior notes that matured in November 2015)
|
◦
|
Increased the capacity of the revolving credit facility from $2.5 billion to $3.0 billion while also extending the maturity date an additional year to May 2020
|
◦
|
Decreased our quarterly dividend from $0.21 to $0.05 per share, saving approximately $425 million of cash on an annualized basis
|
Net Sales Volumes
|
2015
|
|
Increase
(Decrease) |
|
2014
|
|
Increase
(Decrease) |
|
2013
|
|||||
Equivalent Barrels (
mboed
)
|
|
|
|
|
|
|
|
|
|
|||||
Eagle Ford
|
134
|
|
|
20
|
%
|
|
112
|
|
|
38
|
%
|
|
81
|
|
Oklahoma Resource Basins
|
25
|
|
|
39
|
%
|
|
18
|
|
|
29
|
%
|
|
14
|
|
Bakken
|
59
|
|
|
16
|
%
|
|
51
|
|
|
31
|
%
|
|
39
|
|
Other North America
(a)
|
51
|
|
|
(11
|
)%
|
|
57
|
|
|
(15
|
)%
|
|
67
|
|
Total North America E&P (
mboed
)
|
269
|
|
|
13
|
%
|
|
238
|
|
|
18
|
%
|
|
201
|
|
Sales Mix - U.S. Resource Plays - 2015
|
Eagle Ford
|
|
Oklahoma Resource Basins
|
|
Bakken
|
|||
Crude oil and condensate
|
60
|
%
|
|
19
|
%
|
|
87
|
%
|
Natural gas liquids
|
19
|
%
|
|
28
|
%
|
|
7
|
%
|
Natural gas
|
21
|
%
|
|
53
|
%
|
|
6
|
%
|
Drilling Activity - U.S. Resource Plays
|
2015
|
|
2014
|
|
2013
|
|||
Gross Operated
|
|
|
|
|
|
|||
Eagle Ford:
|
|
|
|
|
|
|||
Wells drilled to total depth
|
251
|
|
|
360
|
|
|
299
|
|
Wells brought to sales
|
276
|
|
|
310
|
|
|
307
|
|
Oklahoma Resource Basins:
|
|
|
|
|
|
|||
Wells drilled to total depth
|
20
|
|
|
19
|
|
|
10
|
|
Wells brought to sales
|
21
|
|
|
18
|
|
|
9
|
|
Bakken:
|
|
|
|
|
|
|||
Wells drilled to total depth
|
35
|
|
|
83
|
|
|
76
|
|
Wells brought to sales
|
56
|
|
|
69
|
|
|
77
|
|
Net Sales Volumes
|
2015
|
|
Increase
(Decrease) |
|
2014
|
|
Increase
(Decrease) |
|
2013
|
|||||
Equivalent Barrels (
mboed
)
|
|
|
|
|
|
|
|
|
|
|||||
Equatorial Guinea
|
97
|
|
|
(7
|
)%
|
|
104
|
|
|
(3
|
)%
|
|
107
|
|
United Kingdom
(a)
|
19
|
|
|
19
|
%
|
|
16
|
|
|
(20
|
)%
|
|
20
|
|
Libya
|
—
|
|
|
(100
|
)%
|
|
7
|
|
|
(75
|
)%
|
|
28
|
|
Total International E&P (
mboed
)
|
116
|
|
|
(9
|
)%
|
|
127
|
|
|
(18
|
)%
|
|
155
|
|
Net Sales Volumes of Equity Method Investees
|
|
|
|
|
|
|
|
|
|
|||||
LNG (
mtd
)
|
5,884
|
|
|
(10
|
)%
|
|
6,535
|
|
|
—
|
%
|
|
6,548
|
|
Methanol (
mtd
)
|
937
|
|
|
(14
|
)%
|
|
1,092
|
|
|
(13
|
)%
|
|
1,249
|
|
|
Productive Wells
(a)
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Oil
|
|
Natural Gas
|
|
Service Wells
|
|
Drilling Wells
|
||||||||||||||||
|
Gross
|
|
Net
|
|
Gross
|
|
Net
|
|
Gross
|
|
Net
|
|
Gross
|
|
Net
|
||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
7,198
|
|
|
2,878
|
|
|
1,796
|
|
|
750
|
|
|
2,727
|
|
|
747
|
|
|
29
|
|
|
12
|
|
E.G.
|
—
|
|
|
—
|
|
|
17
|
|
|
11
|
|
|
2
|
|
|
1
|
|
|
—
|
|
|
—
|
|
Other Africa
|
1,071
|
|
|
175
|
|
|
7
|
|
|
1
|
|
|
94
|
|
|
16
|
|
|
4
|
|
|
1
|
|
Total Africa
|
1,071
|
|
|
175
|
|
|
24
|
|
|
12
|
|
|
96
|
|
|
17
|
|
|
4
|
|
|
1
|
|
Other International
|
59
|
|
|
21
|
|
|
39
|
|
|
16
|
|
|
24
|
|
|
8
|
|
|
1
|
|
|
—
|
|
Total
|
8,328
|
|
|
3,074
|
|
|
1,859
|
|
|
778
|
|
|
2,847
|
|
|
772
|
|
|
34
|
|
|
13
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
7,058
|
|
|
2,919
|
|
|
2,246
|
|
|
1,023
|
|
|
2,638
|
|
|
760
|
|
|
|
|
|
||
E.G.
|
—
|
|
|
—
|
|
|
16
|
|
|
11
|
|
|
2
|
|
|
1
|
|
|
|
|
|
||
Other Africa
|
1,071
|
|
|
175
|
|
|
7
|
|
|
1
|
|
|
94
|
|
|
16
|
|
|
|
|
|
||
Total Africa
|
1,071
|
|
|
175
|
|
|
23
|
|
|
12
|
|
|
96
|
|
|
17
|
|
|
|
|
|
||
Other International
|
55
|
|
|
20
|
|
|
39
|
|
|
16
|
|
|
24
|
|
|
8
|
|
|
|
|
|
||
Total
|
8,184
|
|
|
3,114
|
|
|
2,308
|
|
|
1,051
|
|
|
2,758
|
|
|
785
|
|
|
|
|
|
||
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S.
|
6,632
|
|
|
2,568
|
|
|
2,763
|
|
|
1,482
|
|
|
2,349
|
|
|
744
|
|
|
|
|
|
||
E.G.
|
—
|
|
|
—
|
|
|
16
|
|
|
11
|
|
|
2
|
|
|
1
|
|
|
|
|
|
||
Other Africa
|
1,064
|
|
|
174
|
|
|
7
|
|
|
1
|
|
|
94
|
|
|
16
|
|
|
|
|
|
||
Total Africa
|
1,064
|
|
|
174
|
|
|
23
|
|
|
12
|
|
|
96
|
|
|
17
|
|
|
|
|
|
||
Other International
|
56
|
|
|
21
|
|
|
40
|
|
|
16
|
|
|
25
|
|
|
9
|
|
|
|
|
|
||
Total
|
7,752
|
|
|
2,763
|
|
|
2,826
|
|
|
1,510
|
|
|
2,470
|
|
|
770
|
|
|
|
|
|
(a)
|
Of the gross productive wells, wells with multiple completions operated by us totaled
12
,
31
and
31
as of
December 31, 2015
,
2014
and
2013
. Information on wells with multiple completions operated by others is unavailable to us.
|
|
Development
|
|
Exploratory
|
|
|
|||||||||||||||||||||
|
Oil
|
|
Natural
Gas
|
|
Dry
|
|
Total
|
|
Oil
|
|
Natural
Gas
|
|
Dry
|
|
Total
|
|
Total
|
|||||||||
Year Ended December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S.
|
135
|
|
|
36
|
|
|
11
|
|
|
182
|
|
|
49
|
|
|
48
|
|
|
1
|
|
|
98
|
|
|
280
|
|
E.G.
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
2
|
|
Other Africa
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total Africa
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
2
|
|
Other International
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
Total
|
136
|
|
|
37
|
|
|
11
|
|
|
184
|
|
|
49
|
|
|
48
|
|
|
2
|
|
|
99
|
|
|
283
|
|
Year Ended December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S.
|
253
|
|
|
43
|
|
|
1
|
|
|
297
|
|
|
49
|
|
|
19
|
|
|
4
|
|
|
72
|
|
|
369
|
|
E.G.
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
1
|
|
Other Africa
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
Total Africa
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
2
|
|
Other International
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
Total
|
255
|
|
|
43
|
|
|
1
|
|
|
299
|
|
|
49
|
|
|
19
|
|
|
5
|
|
|
73
|
|
|
372
|
|
Year Ended December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S.
|
237
|
|
|
20
|
|
|
—
|
|
|
257
|
|
|
73
|
|
|
13
|
|
|
3
|
|
|
89
|
|
|
346
|
|
E.G.
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other Africa
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
1
|
|
|
—
|
|
|
2
|
|
|
3
|
|
|
7
|
|
Total Africa
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
1
|
|
|
—
|
|
|
2
|
|
|
3
|
|
|
7
|
|
Other International
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
|
3
|
|
Total
|
241
|
|
|
20
|
|
|
—
|
|
|
261
|
|
|
74
|
|
|
13
|
|
|
8
|
|
|
95
|
|
|
356
|
|
|
Developed
|
|
Undeveloped
|
|
Developed and
Undeveloped
|
||||||||||||
(In thousands)
|
Gross
|
|
Net
|
|
Gross
|
|
Net
|
|
Gross
|
|
Net
|
||||||
U.S.
|
1,323
|
|
|
1,035
|
|
|
801
|
|
|
638
|
|
|
2,124
|
|
|
1,673
|
|
Canada
|
—
|
|
|
—
|
|
|
142
|
|
|
54
|
|
|
142
|
|
|
54
|
|
Total North America
|
1,323
|
|
|
1,035
|
|
|
943
|
|
|
692
|
|
|
2,266
|
|
|
1,727
|
|
E.G.
|
45
|
|
|
29
|
|
|
183
|
|
|
164
|
|
|
228
|
|
|
193
|
|
Other Africa
|
12,909
|
|
|
2,108
|
|
|
26,145
|
|
|
9,612
|
|
|
39,054
|
|
|
11,720
|
|
Total Africa
|
12,954
|
|
|
2,137
|
|
|
26,328
|
|
|
9,776
|
|
|
39,282
|
|
|
11,913
|
|
Other International
|
90
|
|
|
32
|
|
|
345
|
|
|
110
|
|
|
435
|
|
|
142
|
|
Total
|
14,367
|
|
|
3,204
|
|
|
27,616
|
|
|
10,578
|
|
|
41,983
|
|
|
13,782
|
|
|
Net Undeveloped Acres Expiring
|
|||||||
|
Year Ended December 31,
|
|||||||
(In thousands)
|
2016
|
|
2017
|
|
2018
|
|||
U.S.
|
68
|
|
|
89
|
|
|
128
|
|
E.G.
|
—
|
|
|
92
|
|
|
36
|
|
Other Africa
|
189
|
|
|
4,352
|
|
|
854
|
|
Total Africa
|
189
|
|
|
4,444
|
|
|
890
|
|
Other International
|
—
|
|
|
—
|
|
|
—
|
|
Total
|
257
|
|
|
4,533
|
|
|
1,018
|
|
|
SEC Pricing 2015
|
2-month Average 2016
|
||||
WTI Crude oil
|
$
|
50.28
|
|
$
|
34.19
|
|
Henry Hub natural gas
|
$
|
2.59
|
|
$
|
2.28
|
|
Brent crude oil
|
$
|
54.25
|
|
$
|
34.86
|
|
Natural gas liquids
|
$
|
17.32
|
|
$
|
12.87
|
|
|
North America
|
|
Africa
|
|
|
|
|
|
|
|
|
||||||||||||||||||
December 31, 2015
|
U.S.
|
|
Canada
|
|
Total
|
|
E.G.
|
|
Other
|
|
Total
|
|
Other Int'l
|
|
Cont Ops
|
|
Disc Ops
|
|
Total
|
||||||||||
Proved Developed Reserves
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Crude oil and condensate
(mmbbl)
|
327
|
|
|
—
|
|
|
327
|
|
|
25
|
|
|
173
|
|
|
198
|
|
|
16
|
|
|
541
|
|
|
—
|
|
|
541
|
|
Natural gas liquids
(mmbbl)
|
92
|
|
|
—
|
|
|
92
|
|
|
12
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
104
|
|
|
—
|
|
|
104
|
|
Natural gas
(bcf)
|
640
|
|
|
—
|
|
|
640
|
|
|
552
|
|
|
94
|
|
|
646
|
|
|
11
|
|
|
1,297
|
|
|
—
|
|
|
1,297
|
|
Synthetic crude oil
(mmbbl)
|
—
|
|
|
698
|
|
|
698
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
698
|
|
|
—
|
|
|
698
|
|
Total proved developed reserves
(mmboe)
|
526
|
|
|
698
|
|
|
1,224
|
|
|
129
|
|
|
189
|
|
|
318
|
|
|
18
|
|
|
1,560
|
|
|
—
|
|
|
1,560
|
|
Proved Undeveloped Reserves
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Crude oil and condensate (
mmbbl
)
|
253
|
|
|
—
|
|
|
253
|
|
|
27
|
|
|
28
|
|
|
55
|
|
|
6
|
|
|
314
|
|
|
—
|
|
|
314
|
|
Natural gas liquids (
mmbbl
)
|
80
|
|
|
—
|
|
|
80
|
|
|
16
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
96
|
|
|
—
|
|
|
96
|
|
Natural gas (
bcf
)
|
511
|
|
|
—
|
|
|
511
|
|
|
538
|
|
|
112
|
|
|
650
|
|
|
4
|
|
|
1,165
|
|
|
—
|
|
|
1,165
|
|
Synthetic crude oil
(mmbbl)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total proved undeveloped reserves (
mmboe
)
|
418
|
|
|
—
|
|
|
418
|
|
|
132
|
|
|
46
|
|
|
178
|
|
|
7
|
|
|
603
|
|
|
—
|
|
|
603
|
|
Total Proved Reserves
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Crude oil and condensate (
mmbbl
)
|
580
|
|
|
—
|
|
|
580
|
|
|
52
|
|
|
201
|
|
|
253
|
|
|
22
|
|
|
855
|
|
|
—
|
|
|
855
|
|
Natural gas liquids (
mmbbl
)
|
172
|
|
|
—
|
|
|
172
|
|
|
28
|
|
|
—
|
|
|
28
|
|
|
—
|
|
|
200
|
|
|
—
|
|
|
200
|
|
Natural gas (
bcf
)
|
1,151
|
|
|
—
|
|
|
1,151
|
|
|
1,090
|
|
|
206
|
|
|
1,296
|
|
|
15
|
|
|
2,462
|
|
|
—
|
|
|
2,462
|
|
Synthetic crude oil (
mmbbl
)
|
—
|
|
|
698
|
|
|
698
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
698
|
|
|
—
|
|
|
698
|
|
Total proved reserves (
mmboe
)
|
944
|
|
|
698
|
|
|
1,642
|
|
|
261
|
|
|
235
|
|
|
496
|
|
|
25
|
|
|
2,163
|
|
|
—
|
|
|
2,163
|
|
|
North America
|
|
Africa
|
|
|
|
|
|
|
|
|
||||||||||||||||||
December 31, 2014
|
U.S.
|
|
Canada
|
|
Total
|
|
E.G.
|
|
Other
|
|
Total
|
|
Other Int'l
|
|
Cont Ops
|
|
Disc Ops
|
|
Total
|
||||||||||
Proved Developed Reserves
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Crude oil and condensate
(mmbbl)
|
294
|
|
|
—
|
|
|
294
|
|
|
30
|
|
|
175
|
|
|
205
|
|
|
19
|
|
|
518
|
|
|
—
|
|
|
518
|
|
Natural gas liquids
(mmbbl)
|
68
|
|
|
—
|
|
|
68
|
|
|
15
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
83
|
|
|
—
|
|
|
83
|
|
Natural gas
(bcf)
|
575
|
|
|
—
|
|
|
575
|
|
|
664
|
|
|
94
|
|
|
758
|
|
|
17
|
|
|
1,350
|
|
|
—
|
|
|
1,350
|
|
Synthetic crude oil
(mmbbl)
|
—
|
|
|
644
|
|
|
644
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
644
|
|
|
—
|
|
|
644
|
|
Total proved developed reserves
(mmboe)
|
458
|
|
|
644
|
|
|
1,102
|
|
|
155
|
|
|
191
|
|
|
346
|
|
|
22
|
|
|
1,470
|
|
|
—
|
|
|
1,470
|
|
Proved Undeveloped Reserves
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Crude oil and condensate
(mmbbl)
|
340
|
|
|
—
|
|
|
340
|
|
|
27
|
|
|
33
|
|
|
60
|
|
|
10
|
|
|
410
|
|
|
—
|
|
|
410
|
|
Natural gas liquids
(mmbbl)
|
93
|
|
|
—
|
|
|
93
|
|
|
15
|
|
|
—
|
|
|
15
|
|
|
1
|
|
|
109
|
|
|
—
|
|
|
109
|
|
Natural gas
(bcf)
|
569
|
|
|
—
|
|
|
569
|
|
|
541
|
|
|
115
|
|
|
656
|
|
|
5
|
|
|
1,230
|
|
|
—
|
|
|
1,230
|
|
Synthetic crude oil
(mmbbl)
|
—
|
|
|
4
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
Total proved undeveloped reserves
(mmboe)
|
528
|
|
|
4
|
|
|
532
|
|
|
133
|
|
|
52
|
|
|
185
|
|
|
11
|
|
|
728
|
|
|
—
|
|
|
728
|
|
Total Proved Reserves
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Crude oil and condensate
(mmbbl)
|
634
|
|
|
—
|
|
|
634
|
|
|
57
|
|
|
208
|
|
|
265
|
|
|
29
|
|
|
928
|
|
|
—
|
|
|
928
|
|
Natural gas liquids
(mmbbl)
|
161
|
|
|
—
|
|
|
161
|
|
|
30
|
|
|
—
|
|
|
30
|
|
|
1
|
|
|
192
|
|
|
—
|
|
|
192
|
|
Natural gas
(bcf)
|
1,144
|
|
|
—
|
|
|
1,144
|
|
|
1,205
|
|
|
209
|
|
|
1,414
|
|
|
22
|
|
|
2,580
|
|
|
—
|
|
|
2,580
|
|
Synthetic crude oil
(mmbbl)
|
—
|
|
|
648
|
|
|
648
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
648
|
|
|
—
|
|
|
648
|
|
Total proved reserves
(mmboe)
|
986
|
|
|
648
|
|
|
1,634
|
|
|
288
|
|
|
243
|
|
|
531
|
|
|
33
|
|
|
2,198
|
|
|
—
|
|
|
2,198
|
|
|
North America
|
|
Africa
|
|
|
|
|
|
|
|
|
||||||||||||||||||
December 31, 2013
|
U.S.
|
|
Canada
|
|
Total
|
|
E.G.
|
|
Other
|
|
Total
|
|
Other Int'l
|
|
Cont Ops
|
|
Disc Ops
|
|
Total
|
||||||||||
Proved Developed Reserves
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Crude oil and condensate
(mmbbl)
|
241
|
|
|
—
|
|
|
241
|
|
|
37
|
|
|
176
|
|
|
213
|
|
|
19
|
|
|
473
|
|
|
77
|
|
|
550
|
|
Natural gas liquids
(mmbbl)
|
51
|
|
|
—
|
|
|
51
|
|
|
18
|
|
|
—
|
|
|
18
|
|
|
1
|
|
|
70
|
|
|
—
|
|
|
70
|
|
Natural gas
(bcf)
|
540
|
|
|
—
|
|
|
540
|
|
|
823
|
|
|
95
|
|
|
918
|
|
|
21
|
|
|
1,479
|
|
|
20
|
|
|
1,499
|
|
Synthetic crude oil
(mmbbl)
|
—
|
|
|
674
|
|
|
674
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
674
|
|
|
—
|
|
|
674
|
|
Total proved developed reserves
(mmboe)
|
382
|
|
|
674
|
|
|
1,056
|
|
|
193
|
|
|
192
|
|
|
385
|
|
|
23
|
|
|
1,464
|
|
|
80
|
|
|
1,544
|
|
Proved Undeveloped Reserves
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Crude oil and condensate
(mmbbl)
|
256
|
|
|
—
|
|
|
256
|
|
|
27
|
|
|
39
|
|
|
66
|
|
|
6
|
|
|
328
|
|
|
14
|
|
|
342
|
|
Natural gas liquids
(mmbbl)
|
68
|
|
|
—
|
|
|
68
|
|
|
16
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
84
|
|
|
—
|
|
|
84
|
|
Natural gas
(bcf)
|
485
|
|
|
—
|
|
|
485
|
|
|
497
|
|
|
110
|
|
|
607
|
|
|
7
|
|
|
1,099
|
|
|
73
|
|
|
1,172
|
|
Synthetic crude oil
(mmbbl)
|
—
|
|
|
6
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
Total proved undeveloped reserves
(mmboe)
|
405
|
|
|
6
|
|
|
411
|
|
|
125
|
|
|
57
|
|
|
182
|
|
|
8
|
|
|
601
|
|
|
26
|
|
|
627
|
|
Total Proved Reserves
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Crude oil and condensate
(mmbbl)
|
497
|
|
|
—
|
|
|
497
|
|
|
64
|
|
|
215
|
|
|
279
|
|
|
25
|
|
|
801
|
|
|
91
|
|
|
892
|
|
Natural gas liquids
(mmbbl)
|
119
|
|
|
—
|
|
|
119
|
|
|
34
|
|
|
—
|
|
|
34
|
|
|
1
|
|
|
154
|
|
|
—
|
|
|
154
|
|
Natural gas
(bcf)
|
1,025
|
|
|
—
|
|
|
1,025
|
|
|
1,320
|
|
|
205
|
|
|
1,525
|
|
|
28
|
|
|
2,578
|
|
|
93
|
|
|
2,671
|
|
Synthetic crude oil
(mmbbl)
|
—
|
|
|
680
|
|
|
680
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
680
|
|
|
—
|
|
|
680
|
|
Total proved reserves
(mmboe)
|
787
|
|
|
680
|
|
|
1,467
|
|
|
318
|
|
|
249
|
|
|
567
|
|
|
31
|
|
|
2,065
|
|
|
106
|
|
|
2,171
|
|
|
North America
|
|
Africa
|
|
|
|
|
|
|
|||||||||||||||||
|
U.S.
|
|
Canada
|
|
Total
|
|
E.G.
|
|
Other
|
|
Total
|
|
Other Int'l
|
|
Disc Ops
|
|
Total
|
|||||||||
Year Ended December 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Crude and condensate
(mbbld)
(a)
|
171
|
|
|
—
|
|
|
171
|
|
|
19
|
|
|
—
|
|
|
19
|
|
|
14
|
|
|
—
|
|
|
204
|
|
Natural gas liquids
(mbbld)
|
39
|
|
|
—
|
|
|
39
|
|
|
10
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
49
|
|
Natural gas
(mmcfd)
(b)
|
351
|
|
|
—
|
|
|
351
|
|
|
410
|
|
|
—
|
|
|
410
|
|
|
21
|
|
|
—
|
|
|
782
|
|
Synthetic crude oil
(mbbld)
(c)
|
—
|
|
|
45
|
|
|
45
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
45
|
|
Total production sold
(mboed)
|
269
|
|
|
45
|
|
|
314
|
|
|
97
|
|
|
—
|
|
|
97
|
|
|
18
|
|
|
—
|
|
|
429
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Crude and condensate
(mbbld)
(a)
|
157
|
|
|
—
|
|
|
157
|
|
|
21
|
|
|
7
|
|
|
28
|
|
|
11
|
|
|
48
|
|
|
244
|
|
Natural gas liquids
(mbbld)
|
29
|
|
|
—
|
|
|
29
|
|
|
10
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
39
|
|
Natural gas
(mmcfd)
(b)
|
310
|
|
|
—
|
|
|
310
|
|
|
439
|
|
|
1
|
|
|
440
|
|
|
21
|
|
|
37
|
|
|
808
|
|
Synthetic crude oil
(mbbld)
(c)
|
—
|
|
|
41
|
|
|
41
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
41
|
|
Total production sold
(mboed)
|
238
|
|
|
41
|
|
|
279
|
|
|
104
|
|
|
7
|
|
|
111
|
|
|
15
|
|
|
54
|
|
|
459
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Crude and condensate
(mbbld)
(a)
|
126
|
|
|
—
|
|
|
126
|
|
|
23
|
|
|
24
|
|
|
47
|
|
|
14
|
|
|
81
|
|
|
268
|
|
Natural gas liquids
(mbbld)
|
23
|
|
|
—
|
|
|
23
|
|
|
11
|
|
|
—
|
|
|
11
|
|
|
1
|
|
|
—
|
|
|
35
|
|
Natural gas
(mmcfd)
(b)
|
312
|
|
|
—
|
|
|
312
|
|
|
442
|
|
|
22
|
|
|
464
|
|
|
25
|
|
|
51
|
|
|
852
|
|
Synthetic crude oil
(mbbld)
(c)
|
—
|
|
|
42
|
|
|
42
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42
|
|
Total production sold
(mboed)
|
201
|
|
|
42
|
|
|
243
|
|
|
107
|
|
|
27
|
|
|
134
|
|
|
20
|
|
|
89
|
|
|
486
|
|
(a)
|
The amounts correspond with the basis for fiscal settlements with governments, representing equity tanker liftings and direct deliveries of liquid hydrocarbons.
|
(b)
|
Excludes volumes acquired from third parties for injection and subsequent resale.
|
(c)
|
Upgraded bitumen excluding blendstocks.
|
|
North America
|
|
Africa
|
|
|
|
|
|
|
||||||||||||||||||||||||||
(Dollars per unit)
|
U.S.
|
|
Canada
|
|
Total
|
|
E.G.
|
|
Other
|
|
Total
|
|
Other Int'l
|
|
Disc Ops
|
|
Total
|
||||||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Crude and condensate
(bbl)
|
$
|
43.50
|
|
|
$
|
—
|
|
|
$
|
43.50
|
|
|
$
|
42.83
|
|
|
$
|
—
|
|
|
$
|
42.83
|
|
|
$
|
53.91
|
|
|
$
|
—
|
|
|
$
|
44.14
|
|
Natural gas liquids
(bbl)
|
13.37
|
|
|
—
|
|
|
13.37
|
|
|
1.00
|
|
(a)
|
—
|
|
|
1.00
|
|
|
32.53
|
|
|
—
|
|
|
11.16
|
|
|||||||||
Natural gas
(mcf)
|
2.66
|
|
|
—
|
|
|
2.66
|
|
|
0.24
|
|
(a)
|
—
|
|
|
0.24
|
|
|
6.85
|
|
|
—
|
|
|
1.50
|
|
|||||||||
Synthetic crude oil
(bbl)
|
—
|
|
|
40.13
|
|
|
40.13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
40.13
|
|
|||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Crude and condensate
(bbl)
|
$
|
85.25
|
|
|
$
|
—
|
|
|
$
|
85.25
|
|
|
$
|
81.01
|
|
|
$
|
94.70
|
|
|
$
|
84.48
|
|
|
$
|
94.31
|
|
|
$
|
109.80
|
|
|
$
|
90.37
|
|
Natural gas liquids
(bbl)
|
33.42
|
|
|
—
|
|
|
33.42
|
|
|
1.00
|
|
(a)
|
—
|
|
|
1.00
|
|
|
67.73
|
|
|
—
|
|
|
25.25
|
|
|||||||||
Natural gas
(mcf)
|
4.57
|
|
|
—
|
|
|
4.57
|
|
|
0.24
|
|
(a)
|
3.11
|
|
|
0.25
|
|
|
8.27
|
|
|
9.94
|
|
|
2.55
|
|
|||||||||
Synthetic crude oil
(bbl)
|
—
|
|
|
83.35
|
|
|
83.35
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
83.35
|
|
|||||||||
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Crude and condensate
(bbl)
|
$
|
94.19
|
|
|
$
|
—
|
|
|
$
|
94.19
|
|
|
$
|
90.62
|
|
|
$
|
122.92
|
|
|
$
|
107.31
|
|
|
$
|
110.76
|
|
|
$
|
112.36
|
|
|
$
|
102.81
|
|
Natural gas liquids
(bbl)
|
35.12
|
|
|
—
|
|
|
35.12
|
|
|
1.00
|
|
(a)
|
—
|
|
|
1.00
|
|
|
72.14
|
|
|
—
|
|
|
24.78
|
|
|||||||||
Natural gas
(mcf)
|
3.84
|
|
|
—
|
|
|
3.84
|
|
|
0.24
|
|
(a)
|
5.44
|
|
|
0.49
|
|
|
10.64
|
|
|
13.01
|
|
|
2.75
|
|
|||||||||
Synthetic crude oil
(bbl)
|
—
|
|
|
87.51
|
|
|
87.51
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
87.51
|
|
(a)
|
Primarily represents fixed prices under long-term contracts with Alba Plant LLC, AMPCO and/or EGHoldings, which are equity method investees. We include our share of income from each of these equity method investees in our International E&P Segment.
|
|
North America
|
|
Africa
|
|
|
|
|
|
|
|||||||||||||||||||||||||
(Dollars per boe)
|
U.S.
|
|
Canada
|
|
Total
|
|
E.G.
|
|
Other
|
|
Total
|
|
Other Int'l
|
|
Disc Ops
|
|
Total
|
|||||||||||||||||
2015
|
$
|
10.65
|
|
|
$
|
38.42
|
|
|
$
|
14.69
|
|
|
$
|
2.37
|
|
|
N.M.
|
|
|
$
|
3.23
|
|
|
$
|
27.23
|
|
|
$
|
—
|
|
|
$
|
12.62
|
|
2014
|
13.34
|
|
|
46.63
|
|
|
18.73
|
|
|
4.03
|
|
|
N.M.
|
|
|
5.72
|
|
|
47.06
|
|
|
8.92
|
|
|
15.37
|
|
||||||||
2013
|
13.60
|
|
|
55.42
|
|
|
20.79
|
|
|
2.88
|
|
|
7.40
|
|
|
3.80
|
|
|
38.87
|
|
|
8.24
|
|
|
14.51
|
|
(a)
|
Production, severance and property taxes are excluded; however, shipping and handling as well as other operating expenses are included in the production costs used in this calculation. See Item 8. Financial Statements and Supplementary Data – Supplementary Information on Oil and Gas Producing Activities - Results of Operations for Oil and Gas Production Activities for more information regarding production costs.
|
N.M.
|
Not meaningful information due to limited sales.
|
Lee M. Tillman
|
|
54
|
|
President and Chief Executive Officer
|
John R. Sult
|
|
56
|
|
Executive Vice President and Chief Financial Officer
|
Sylvia J. Kerrigan
|
|
50
|
|
Executive Vice President, General Counsel and Secretary
|
Catherine L. Krajicek
|
|
54
|
|
Vice President—Technology and Innovation
|
T. Mitch Little
|
|
52
|
|
Vice President—Conventional
|
Lance W. Robertson
|
|
43
|
|
Vice President—Resource Plays
|
Patrick J. Wagner
|
|
51
|
|
Vice President, Corporate Development
|
Gary E. Wilson
|
|
54
|
|
Vice President, Controller and Chief Accounting Officer
|
•
|
our Code of Business Conduct and Code of Ethics for Senior Financial Officers;
|
•
|
our Corporate Governance Principles; and
|
•
|
the charters of our Audit and Finance Committee, Compensation Committee, Corporate Governance and Nominating Committee and Health, Environmental, Safety and Corporate Responsibility Committee.
|
•
|
worldwide and domestic supplies of and demand for crude oil and condensate, NGLs, natural gas and synthetic crude oil;
|
•
|
the cost of exploring for, developing and producing crude oil and condensate, NGLs, natural gas and synthetic crude oil;
|
•
|
the ability of the members of OPEC to agree to and maintain production controls;
|
•
|
the level of drilling, completion and production activities by other exploration and production companies, and variability therein, in response to market conditions;
|
•
|
political instability or armed conflict in oil and natural gas producing regions;
|
•
|
changes in weather patterns and climate;
|
•
|
natural disasters such as hurricanes and tornadoes;
|
•
|
the price and availability of alternative and competing forms of energy;
|
•
|
the effect of conservation efforts;
|
•
|
epidemics or pandemics;
|
•
|
technological advances affecting energy consumption and energy supply;
|
•
|
domestic and foreign governmental regulations and taxes; and
|
•
|
general economic conditions worldwide.
|
•
|
reducing the amount of crude oil and condensate, NGLs, natural gas and synthetic crude oil that we can produce economically;
|
•
|
reducing our revenues, operating income and cash flows;
|
•
|
causing us to reduce our capital expenditures, and delay or postpone some of our capital projects;
|
•
|
requiring us to impair the carrying value of our assets;
|
•
|
reducing the standardized measure of discounted future net cash flows relating to crude oil and condensate, NGLs, natural gas and synthetic crude oil; and
|
•
|
increasing the costs of obtaining capital, such as equity and short- and long-term debt.
|
|
SEC Pricing 2015
|
2-month Average 2016
|
||||
WTI Crude oil
|
$
|
50.28
|
|
$
|
34.19
|
|
Henry Hub natural gas
|
$
|
2.59
|
|
$
|
2.28
|
|
Brent crude oil
|
$
|
54.25
|
|
$
|
34.86
|
|
Natural gas liquids
|
$
|
17.32
|
|
$
|
12.87
|
|
•
|
location, size and shape of the accumulation as well as fluid, rock and producing characteristics of the accumulation;
|
•
|
historical production from the area, compared with production from other comparable producing areas;
|
•
|
volumes of bitumen in-place and various factors affecting the recoverability of bitumen and its conversion into synthetic crude oil such as historical upgrader performance;
|
•
|
the assumed effects of regulation by governmental agencies;
|
•
|
assumptions concerning future operating costs, severance and excise taxes, development costs and workover and repair costs; and
|
•
|
industry economic conditions, levels of cash flows from operations and other operating considerations.
|
•
|
the amount and timing of production;
|
•
|
the revenues and costs associated with that production; and
|
•
|
the amount and timing of future development expenditures.
|
•
|
obtaining rights to explore for, develop and produce crude oil and condensate, NGLs, natural gas and synthetic crude oil in promising areas;
|
•
|
drilling success;
|
•
|
the ability to complete long lead-time, capital-intensive projects timely and cost effectively;
|
•
|
the ability to find or acquire additional proved reserves at acceptable costs; and
|
•
|
the ability to fund such activity.
|
•
|
unexpected drilling conditions;
|
•
|
title problems;
|
•
|
pressure or irregularities in formations;
|
•
|
equipment failures or accidents;
|
•
|
fires, explosions, blowouts or surface cratering;
|
•
|
lack of access to pipelines or other transportation methods; and
|
•
|
shortages or delays in the availability of services or delivery of equipment.
|
•
|
denial of or delay in receiving requisite regulatory approvals and/or permits;
|
•
|
unplanned increases in the cost of construction materials or labor;
|
•
|
disruptions in transportation of components or construction materials;
|
•
|
increased costs or operational delays resulting from shortages of water;
|
•
|
adverse weather conditions, natural disasters or other events (such as equipment malfunctions, explosions, fires or spills) affecting our facilities, or those of vendors or suppliers;
|
•
|
shortages of sufficiently skilled labor, or labor disagreements resulting in unplanned work stoppages;
|
•
|
market-related increases in a project’s debt or equity financing costs; and
|
•
|
nonperformance by, or disputes with, vendors, suppliers, contractors or subcontractors.
|
•
|
changes in governmental policies relating to liquid hydrocarbon or natural gas and taxation;
|
•
|
other political, economic or diplomatic developments and international monetary fluctuations;
|
•
|
political and economic instability, war, acts of terrorism, armed conflict and civil disturbances;
|
•
|
the possibility that a government may seize our property with or without compensation, may attempt to renegotiate or revoke existing contractual arrangements or may impose additional taxes or royalty burdens; and
|
•
|
fluctuating currency values, hard currency shortages and currency controls.
|
•
|
volatility in global crude oil prices which could negatively impact the global economy, resulting in slower economic growth rates and reduced demand for our products;
|
•
|
negative impact on the world crude oil supply if transportation avenues are disrupted;
|
•
|
security concerns leading to the prolonged evacuation of our personnel;
|
•
|
damage to, or the inability to access, production facilities or other operating assets; and
|
•
|
inability of our service and equipment providers to deliver items necessary for us to conduct our operations.
|
•
|
we may be more vulnerable to general adverse economic and industry conditions;
|
•
|
a portion of our cash flows from operating activities must be used to service our indebtedness and is not available for other purposes;
|
•
|
our flexibility in planning for, or reacting to, changes in our industry may be limited;
|
•
|
we may be at a competitive disadvantage as compared to similar companies that have less debt; and
|
•
|
additional financing in the future for working capital, capital expenditures, acquisitions or development activities, general corporate or other purposes may have higher costs and more restrictive covenants.
|
|
Column (a)
|
|
|
Column (b)
|
|
Column (c)
|
|
Column (d)
|
||||
Period
|
Total Number of
Shares
Purchased(a)
|
|
|
Average
Price Paid
per Share
|
|
Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
or Programs(c)
|
|
Approximate
Dollar Value of
Shares that May
Yet Be Purchased
Under the Plans
or Programs(c)
|
||||
10/01/15 – 10/31/15
|
46,156
|
|
|
|
$18.44
|
|
—
|
|
|
$
|
1,500,285,529
|
|
11/01/15 – 11/30/15
|
4,179
|
|
|
|
$18.19
|
|
—
|
|
|
$
|
1,500,285,529
|
|
12/01/15 – 12/31/15
|
1,049
|
|
(b)
|
|
$19.18
|
|
—
|
|
|
$
|
1,500,285,529
|
|
Total
|
51,384
|
|
|
|
$18.44
|
|
—
|
|
|
|
(a)
|
51,384
shares of restricted stock were delivered by employees to Marathon Oil, upon vesting, to satisfy tax withholding requirements.
|
(b)
|
Does not include shares repurchased in open-market transactions to satisfy the requirements for dividend reinvestment under the Marathon Oil Corporation Dividend Reinvestment and Direct Stock Purchase Plan (the “Dividend Reinvestment Plan”) by the administrator of the Dividend Reinvestment Plan. On March 9, 2015, the Dividend Reinvestment Plan was terminated. Participants in the Dividend Reinvestment Plan were transferred to Computershare CIP, a Direct Stock Purchase and Dividend Reinvestment Plan, which is sponsored and administered by Computershare Trust Company, N.A.
|
(c)
|
In January 2006, we announced a $2.0 billion share repurchase program. Our Board of Directors subsequently increased the authorization for repurchases under the program by $500 million in January 2007, by $500 million in May 2007, by $2.0 billion in July 2007, and by $1.2 billion in December 2013, for a total authorized amount of $6.2 billion. The remaining share repurchase authorization as of
December 31, 2015
is $1.5 billion. No repurchases were made under the program in 2015.
|
|
Year Ended December 31,
|
||||||||||||||||||
(In millions, except per share data)
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
||||||||||
Statement of Income Data
(a)(b)
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues
|
$
|
5,522
|
|
|
$
|
10,846
|
|
|
$
|
11,325
|
|
|
$
|
11,966
|
|
|
$
|
11,088
|
|
Income (loss) from continuing operations
|
(2,204
|
)
|
|
969
|
|
|
931
|
|
|
856
|
|
|
467
|
|
|||||
Net income (loss)
|
(2,204
|
)
|
|
3,046
|
|
|
1,753
|
|
|
1,582
|
|
|
2,946
|
|
|||||
Per Share Data
(a)(b)
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) from continuing operations
|
$
|
(3.26
|
)
|
|
$
|
1.42
|
|
|
$
|
1.32
|
|
|
$
|
1.21
|
|
|
$
|
0.66
|
|
Net income (loss)
|
$
|
(3.26
|
)
|
|
$
|
4.48
|
|
|
$
|
2.49
|
|
|
$
|
2.24
|
|
|
$
|
4.15
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) from continuing operations
|
$
|
(3.26
|
)
|
|
$
|
1.42
|
|
|
$
|
1.31
|
|
|
$
|
1.21
|
|
|
$
|
0.65
|
|
Net income (loss)
|
$
|
(3.26
|
)
|
|
$
|
4.46
|
|
|
$
|
2.47
|
|
|
$
|
2.23
|
|
|
$
|
4.13
|
|
Statement of Cash Flows Data
(b)
|
|
|
|
|
|
|
|
|
|
||||||||||
Additions to property, plant and equipment related to continuing operations
|
$
|
3,476
|
|
|
$
|
5,160
|
|
|
$
|
4,443
|
|
|
$
|
4,361
|
|
|
$
|
2,767
|
|
Dividends paid
|
460
|
|
|
543
|
|
|
508
|
|
|
480
|
|
|
567
|
|
|||||
Dividends per share
|
$0.68
|
|
$0.80
|
|
$0.72
|
|
$0.68
|
|
$0.80
|
||||||||||
Balance Sheet Data at December 31
(c)
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
32,311
|
|
|
$
|
35,983
|
|
|
$
|
35,588
|
|
|
$
|
35,269
|
|
|
$
|
31,344
|
|
Total long-term debt, including capitalized leases
|
7,276
|
|
|
5,295
|
|
|
6,362
|
|
|
6,475
|
|
|
4,647
|
|
(a)
|
Includes impairments to producing properties of $412 million, $132 million, $96 million, $371 million and $310 million in 2015, 2014, 2013, 2012 and 2011 and impairments to unproved properties of $
964 million
, $306 million, $572 million and $227 million in 2015, 2014, 2013 and 2012 (see Item 8. Financial Statements and Supplementary Data – Note
13
to the consolidated financial statements)). Includes a goodwill impairment of
$340 million
in 2015 related to the N.A. E&P reporting unit. (see Item 8. Financial Statements and Supplementary Data – Note 14 to the consolidated financial statements).
|
(b)
|
We closed the sale of our Angola assets and our Norway business in 2014 (see Item 8. Financial Statements and Supplementary Data – Note
5
to the consolidated financial statements); and our downstream business was spun-off in 2011. The applicable periods have been recast to reflect these businesses as discontinued operations.
|
(c)
|
Prior year periods were adjusted to reflect debt issuance costs as a direct reduction from the associated debt liability in our consolidated balance sheets with the adoption of the debt issuance costs standard in the fourth quarter of 2015. See Note
2
for information.
|
•
|
North America E&P – explores for, produces and markets crude oil and condensate, NGLs and natural gas in North America;
|
•
|
International E&P – explores for, produces and markets crude oil and condensate, NGLs and natural gas outside of North America and produces and markets products manufactured from natural gas, such as LNG and methanol, in E.G.; and
|
•
|
Oil Sands Mining – mines, extracts and transports bitumen from oil sands deposits in Alberta, Canada, and upgrades the bitumen to produce and market synthetic crude oil and vacuum gas oil.
|
•
|
Increased company-wide net sales volumes from continuing operations by 6% to
438
mboed from
415
mboed
|
◦
|
Net sales volumes from our three U.S. resource plays increased
20%
to
218
mboed from
181
mboed
|
•
|
Maintained focus on cost discipline and efficiencies
|
◦
|
Reduced our 2015 Capital Program by approximately 50% from the prior year, down to $3 billion, reflecting continued capital discipline and benefits from operating efficiencies
|
◦
|
Reduced company-wide production expenses per boe in 2015
|
▪
|
North America E&P - 28% reduction to
$7.38
per boe
|
▪
|
International E&P - 28% reduction to
$5.99
per boe
|
◦
|
Rationalized the workforce during 2015, and expect to generate a future annualized net savings of $160 million from a 20% reduction in workforce
|
•
|
Active management of liquidity and capital structure
|
◦
|
At December 31, 2015:
|
▪
|
Liquidity of
$4.2 billion
|
▪
|
Cash-adjusted debt-to-capital ratio was
25%
|
◦
|
Issued $2 billion aggregate principal amount of unsecured senior notes, $1 billion of which was used to repay the 0.90% senior notes that matured in November 2015
|
◦
|
Increased the capacity of the revolving credit facility to $3.0 billion while also extending the maturity date to May 2020
|
◦
|
Repatriated Canadian earnings in a tax efficient manner, providing
$250 million
of cash available for use in U.S. operations
|
◦
|
Reduced the quarterly dividend beginning in the third quarter, from $0.21 per share to $0.05 per share
|
•
|
Portfolio management activities
|
◦
|
We continue to make progress in our non-core asset divestitures, with a goal of $750 million to $1 billion
|
▪
|
Closed on the sale of our East Texas, North Louisiana and Wilburton, Oklahoma natural gas assets in August 2015 for net proceeds of approximately
$100 million
|
▪
|
Closed on the sale of certain Gulf of Mexico properties in December 2015 for net cash proceeds of
$111 million
|
▪
|
Signed an agreement for the sale of our East Africa exploration acreage in Kenya and Ethiopia; the Kenya transaction closed in February 2016 and Ethiopia is expected to close during the first quarter of 2016.
|
◦
|
Loss from continuing operations per diluted share of
$3.26
in 2015 as compared to income from continuing operations of
$1.42
per diluted share in 2014, reflecting the impact of lower commodity prices
|
◦
|
Included in the loss for 2015 are $1.4 billion ($1.7 billion pre-tax) of charges comprised largely of losses and asset impairments resulting from lower forecasted commodity prices, goodwill impairment and changes in our conventional exploration strategy (refer to North America E&P - Exploration and International E&P - Exploration in Item 1. Business)
|
◦
|
Recorded non-cash deferred tax expense of $135 million in 2015 related to the increase in Alberta's provincial corporate income tax rate
|
◦
|
Operating cash flow provided by continuing operations for
2015
was
$1.6 billion
, compared to
$4.7 billion
in 2014, reflecting the lower commodity price environment
|
(In millions)
|
2016 Capital Program
|
Percent of Total
|
|||
North America E&P
|
$
|
1,166
|
|
81
|
%
|
International E&P
|
185
|
|
13
|
%
|
|
Oil Sands Mining
|
41
|
|
3
|
%
|
|
Segment total
|
1,392
|
|
97
|
%
|
|
Corporate and other
|
40
|
|
3
|
%
|
|
Total Capital Program
|
$
|
1,432
|
|
100
|
%
|
Net Sales Volumes
|
2015
|
|
Increase
(Decrease) |
|
2014
|
|
Increase
(Decrease) |
|
2013
|
||
North America E&P
(mboed)
|
269
|
|
13
|
%
|
|
238
|
|
18
|
%
|
|
201
|
International E&P
(mboed)
|
116
|
|
(9
|
)%
|
|
127
|
|
(18
|
)%
|
|
155
|
Oil Sands Mining
(mbbld)
(a)
|
53
|
|
6
|
%
|
|
50
|
|
4
|
%
|
|
48
|
Total Continuing Operations
(mboed)
|
438
|
|
6
|
%
|
|
415
|
|
3
|
%
|
|
404
|
Net Sales Volumes
|
2015
|
|
Increase
(Decrease) |
|
2014
|
|
Increase
(Decrease) |
|
2013
|
|||
Eagle Ford
|
134
|
|
|
20%
|
|
112
|
|
|
38%
|
|
81
|
|
Oklahoma Resource Basins
|
25
|
|
|
39%
|
|
18
|
|
|
29%
|
|
14
|
|
Bakken
|
59
|
|
|
16%
|
|
51
|
|
|
31%
|
|
39
|
|
Other North America
(a)
|
51
|
|
|
(11)%
|
|
57
|
|
|
(15)%
|
|
67
|
|
Total North America E&P
(mboed)
|
269
|
|
|
13%
|
|
238
|
|
|
18%
|
|
201
|
|
Sales Mix - U.S. Resource Plays - 2015
|
Eagle Ford
|
|
Oklahoma Resource Basins
|
|
Bakken
|
Crude oil and condensate
|
60%
|
|
19%
|
|
87%
|
Natural gas liquids
|
19%
|
|
28%
|
|
7%
|
Natural gas
|
21%
|
|
53%
|
|
6%
|
Drilling Activity - U.S. Resource Plays
|
2015
|
|
2014
|
|
2013
|
|||
Gross Operated
|
|
|
|
|
|
|||
Eagle Ford:
|
|
|
|
|
|
|||
Wells drilled to total depth
|
251
|
|
|
360
|
|
|
299
|
|
Wells brought to sales
|
276
|
|
|
310
|
|
|
307
|
|
Oklahoma Resource Basins:
|
|
|
|
|
|
|||
Wells drilled to total depth
|
21
|
|
|
19
|
|
|
10
|
|
Wells brought to sales
|
20
|
|
|
18
|
|
|
9
|
|
Bakken:
|
|
|
|
|
|
|||
Wells drilled to total depth
|
35
|
|
|
83
|
|
|
76
|
|
Wells brought to sales
|
56
|
|
|
69
|
|
|
77
|
|
Net Sales Volumes
|
2015
|
|
Increase
(Decrease) |
|
2014
|
|
Increase
(Decrease) |
|
2013
|
|||||
Equivalent Barrels
(mboed)
|
|
|
|
|
|
|
|
|
|
|||||
Equatorial Guinea
|
97
|
|
|
(7
|
)%
|
|
104
|
|
|
(3
|
)%
|
|
107
|
|
United Kingdom
(a)
|
19
|
|
|
19
|
%
|
|
16
|
|
|
(20
|
)%
|
|
20
|
|
Libya
|
—
|
|
|
(100
|
)%
|
|
7
|
|
|
(75
|
)%
|
|
28
|
|
Total International E&P
(mboed)
|
116
|
|
|
(9
|
)%
|
|
127
|
|
|
(18
|
)%
|
|
155
|
|
Net Sales Volumes of Equity Method Investees
|
|
|
|
|
|
|
|
|
|
|
|
|||
LNG
(mtd)
|
5,884
|
|
|
(10
|
)%
|
|
6,535
|
|
|
—
|
%
|
|
6,548
|
|
Methanol
(mtd)
|
937
|
|
|
(14
|
)%
|
|
1,092
|
|
|
(13
|
)%
|
|
1,249
|
|
|
|
2015
|
|
Decrease
|
|
2014
|
Decrease
|
|
2013
|
|||||||
Average Price Realizations
(a)
|
|
|
|
|
|
|
|
|
|
|||||||
Crude Oil and Condensate
(per bbl)
(b)
|
|
|
$43.50
|
|
|
(49
|
)%
|
|
|
$85.25
|
|
(9
|
)%
|
|
94.19
|
|
Natural Gas Liquids
(per bbl)
|
|
13.37
|
|
|
(60
|
)%
|
|
33.42
|
|
(5
|
)%
|
|
35.12
|
|
||
Total Liquid Hydrocarbons
(per bbl)
|
|
37.85
|
|
|
(51
|
)%
|
|
77.02
|
|
(10
|
)%
|
|
85.20
|
|
||
Natural Gas
(per mcf)
|
|
2.66
|
|
|
(42
|
)%
|
|
4.57
|
|
19
|
%
|
|
3.84
|
|
||
Benchmarks
|
|
|
|
|
|
|
|
|
|
|
|
|||||
WTI crude oil average of daily prices
(per bbl)
|
|
|
$48.76
|
|
|
(48
|
)%
|
|
|
$92.91
|
|
(5
|
)%
|
|
98.05
|
|
LLS crude oil average of daily prices
(per bbl)
|
|
52.33
|
|
|
(46
|
)%
|
|
96.64
|
|
(10
|
)%
|
|
107.36
|
|
||
Mont Belvieu NGLs
(per bbl)
(c)
|
|
16.94
|
|
|
(48
|
)%
|
|
32.52
|
|
(4
|
)%
|
|
33.78
|
|
||
Henry Hub natural gas settlement date average (per
mmbtu)
|
|
2.66
|
|
|
(40
|
)%
|
|
4.42
|
|
21
|
%
|
|
3.65
|
|
(a)
|
Excludes gains or losses on derivative instruments.
|
(b)
|
Inclusion of realized gains (losses) on crude oil derivative instruments would have increased (decreased) average liquid hydrocarbon price realizations per barrel by
$1.24
and
$(0.27)
for
2015
and
2013
. There were no crude oil derivative instruments for
2014
.
|
(c)
|
Bloomberg Finance LLP: Y-grade Mix NGL of 50% ethane, 25% propane, 10% butane, 5% isobutane and 10% natural gasoline.
|
|
|
2015
|
|
Decrease
|
|
2014
|
|
Decrease
|
|
2013
|
||||||||
Average Price Realizations
|
|
|
|
|
|
|
|
|
|
|
||||||||
Crude Oil and Condensate
(per bbl)
|
|
|
$47.50
|
|
|
(46
|
)%
|
|
|
$87.23
|
|
|
(19
|
)%
|
|
|
$108.18
|
|
Natural Gas Liquids
(per bbl)
|
|
2.81
|
|
|
14
|
%
|
|
2.46
|
|
|
(53
|
)%
|
|
5.24
|
|
|||
Total Liquid Hydrocarbons
(per bbl)
|
|
36.67
|
|
|
(47
|
)%
|
|
68.98
|
|
|
(24
|
)%
|
|
91.04
|
|
|||
Natural Gas
(per mcf)
|
|
0.68
|
|
|
(6
|
)%
|
|
0.72
|
|
|
(37
|
)%
|
|
1.15
|
|
|||
Benchmark
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Brent (Europe) crude oil
(per bbl)
(a)
|
|
|
$52.35
|
|
|
(47
|
)%
|
|
|
$99.02
|
|
|
(9
|
)%
|
|
|
$108.64
|
|
(a)
|
Average of monthly prices obtained from EIA website.
|
|
|
2015
|
|
Increase
(Decrease) |
|
2014
|
|
Increase
(Decrease) |
|
2013
|
||||||||
Average Price Realizations
|
|
|
|
|
|
|
|
|
|
|
||||||||
Synthetic Crude Oil
(per bbl)
|
|
|
$40.13
|
|
|
(52
|
%)
|
|
|
$83.35
|
|
|
(5
|
%)
|
|
|
$87.51
|
|
Benchmark
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
WTI crude oil
(per bbl)
|
|
|
$48.76
|
|
|
(48
|
%)
|
|
|
$92.91
|
|
|
(5
|
%)
|
|
|
$98.05
|
|
WCS crude oil
(per bbl)
(a)
|
|
35.28
|
|
|
(52
|
%)
|
|
73.60
|
|
|
1
|
%
|
|
72.77
|
|
(a)
|
Average of monthly prices based upon average WTI adjusted for differentials unique to western Canada.
|
|
Year Ended December 31,
|
|||||
(In millions)
|
2015
|
2014
|
||||
Sales and other operating revenues, including related party
|
|
|
||||
North America E&P
|
$
|
3,358
|
|
$
|
5,770
|
|
International E&P
|
728
|
|
1,410
|
|
||
Oil Sands Mining
|
815
|
|
1,556
|
|
||
Segment sales and other operating revenues, including related party
|
4,901
|
|
8,736
|
|
||
Unrealized gain on crude oil derivative instruments
|
50
|
|
—
|
|
||
Sales and other operating revenues, including related party
|
$
|
4,951
|
|
$
|
8,736
|
|
($ per boe)
|
2015
|
2014
|
||||
North America E&P
|
|
$7.38
|
|
|
$10.25
|
|
International E&P
|
|
$5.99
|
|
|
$8.31
|
|
Oil Sands Mining
(a)
|
|
$36.48
|
|
|
$44.53
|
|
(a)
|
Production expense per synthetic crude oil barrel (before royalties) includes production costs, shipping and handling, taxes other than income and insurance costs and excludes pre-development costs.
|
|
Year Ended December 31,
|
|||||
(In millions)
|
2015
|
2014
|
||||
Unproved property impairments
|
$
|
964
|
|
$
|
306
|
|
Dry well costs
|
250
|
|
317
|
|
||
Geological and geophysical
|
31
|
|
85
|
|
||
Other
|
73
|
|
85
|
|
||
Total exploration expenses
|
$
|
1,318
|
|
$
|
793
|
|
($ per boe)
|
2015
|
2014
|
||||
North America E&P
|
|
$24.24
|
|
|
$26.95
|
|
International E&P
|
|
$6.95
|
|
|
$5.79
|
|
Oil Sands Mining
|
|
$12.48
|
|
|
$12.07
|
|
|
Year Ended December 31,
|
|||||
(In millions)
|
2015
|
2014
|
||||
Production and severance
|
$
|
131
|
|
$
|
240
|
|
Ad valorem
|
39
|
|
74
|
|
||
Other
|
64
|
|
92
|
|
||
Total
|
$
|
234
|
|
$
|
406
|
|
|
Year Ended December 31,
|
||||||
(In millions)
|
2015
|
|
2014
|
||||
North America E&P
|
$
|
(486
|
)
|
|
$
|
693
|
|
International E&P
|
112
|
|
|
568
|
|
||
Oil Sands Mining
|
(113
|
)
|
|
235
|
|
||
Segment income (loss)
|
(487
|
)
|
|
1,496
|
|
||
Items not allocated to segments, net of income taxes
|
(1,717
|
)
|
|
(527
|
)
|
||
Income (loss) from continuing operations
|
(2,204
|
)
|
|
969
|
|
||
Discontinued operations
|
—
|
|
|
2,077
|
|
||
Net income (loss)
|
$
|
(2,204
|
)
|
|
$
|
3,046
|
|
|
Year Ended December 31,
|
|||||
(In millions)
|
2014
|
2013
|
||||
Sales and other operating revenues, including related party
|
|
|
||||
North America E&P
|
$
|
5,770
|
|
$
|
5,068
|
|
International E&P
|
1,410
|
|
2,654
|
|
||
Oil Sands Mining
|
1,556
|
|
1,576
|
|
||
Segment sales and other operating revenues, including related party
|
8,736
|
|
9,298
|
|
||
Unrealized gain (loss) on crude oil derivative instruments
|
—
|
|
(52
|
)
|
||
Sales and other operating revenues, including related party
|
$
|
8,736
|
|
$
|
9,246
|
|
($ per boe)
|
2014
|
2013
|
||||
North America E&P
|
|
$10.25
|
|
|
$10.86
|
|
International E&P
|
|
$8.31
|
|
|
$6.36
|
|
Oil Sands Mining
(a)
|
|
$44.53
|
|
|
$46.30
|
|
(a)
|
Production expense per synthetic crude oil barrel (before royalties) includes production costs, shipping and handling, taxes other than income and insurance costs and excludes pre-development costs.
|
|
Year Ended December 31,
|
|||||
(In millions)
|
2014
|
2013
|
||||
Unproved property impairments
|
$
|
306
|
|
$
|
572
|
|
Dry well costs
|
317
|
|
148
|
|
||
Geological and geophysical
|
85
|
|
80
|
|
||
Other
|
85
|
|
91
|
|
||
Total exploration expenses
|
$
|
793
|
|
$
|
891
|
|
($ per boe)
|
2014
|
2013
|
||||
North America E&P
|
|
$26.95
|
|
|
$26.23
|
|
International E&P
|
|
$5.79
|
|
|
$5.86
|
|
Oil Sands Mining
|
|
$12.07
|
|
|
$12.39
|
|
|
Year Ended December 31,
|
|||||
(In millions)
|
2014
|
2013
|
||||
Production and severance
|
$
|
240
|
|
$
|
202
|
|
Ad valorem
|
74
|
|
61
|
|
||
Other
|
92
|
|
82
|
|
||
Total
|
$
|
406
|
|
$
|
345
|
|
|
Year Ended December 31,
|
||||||
(In millions)
|
2014
|
|
2013
|
||||
North America E&P
|
$
|
693
|
|
|
$
|
529
|
|
International E&P
|
568
|
|
|
758
|
|
||
Oil Sands Mining
|
235
|
|
|
206
|
|
||
Segment income
|
1,496
|
|
|
1,493
|
|
||
Items not allocated to segments, net of income taxes
|
(527
|
)
|
|
(562
|
)
|
||
Income from continuing operations
|
969
|
|
|
931
|
|
||
Discontinued operations
|
2,077
|
|
|
822
|
|
||
Net income
|
$
|
3,046
|
|
|
$
|
1,753
|
|
•
|
Decreased our quarterly dividend from $0.21 to $0.05 per share, saving $425 million of cash on an annualized basis
|
•
|
Improved cost structure by reducing North America and International E&P production expenses 24% versus 2014
|
•
|
Expect future G&A costs to be lower by $160 million on an annualized basis as a result of 2015 workforce reductions
|
•
|
Issued $2 billion aggregate principal amount of unsecured senior notes, $1 billion of which was used to repay the 0.90% senior notes that matured in November 2015
|
•
|
Increased the capacity of the revolving credit facility from $2.5 billion to $3.0 billion while also extending the maturity date an additional year to May 2020
|
•
|
Repatriated Canadian earnings in a tax efficient manner, providing
$250 million
of cash available for use in U.S. operations
|
|
Year Ended December 31,
|
||||||||||
(In millions)
|
2015
|
|
2014
|
|
2013
|
||||||
Sources of cash and cash equivalents
|
|
|
|
|
|
|
|
||||
Continuing operations
|
$
|
1,565
|
|
|
$
|
4,736
|
|
|
$
|
4,388
|
|
Discontinued operations
|
—
|
|
|
751
|
|
|
882
|
|
|||
Disposals of assets
|
225
|
|
|
3,760
|
|
|
450
|
|
|||
Maturities of short-term investment
|
925
|
|
|
—
|
|
|
—
|
|
|||
Borrowings, net
|
1,996
|
|
|
—
|
|
|
—
|
|
|||
Other
|
91
|
|
|
214
|
|
|
189
|
|
|||
Total sources of cash and cash equivalents
|
$
|
4,802
|
|
|
$
|
9,461
|
|
|
$
|
5,909
|
|
Uses of cash and cash equivalents
|
|
|
|
|
|
||||||
Cash additions to property, plant and equipment
|
$
|
(3,476
|
)
|
|
$
|
(5,160
|
)
|
|
$
|
(4,443
|
)
|
Purchases of short-term investments
|
(925
|
)
|
|
—
|
|
|
—
|
|
|||
Investing activities of discontinued operations
|
—
|
|
|
(376
|
)
|
|
(550
|
)
|
|||
Acquisitions
|
—
|
|
|
(21
|
)
|
|
(74
|
)
|
|||
Purchases of common stock
|
—
|
|
|
(1,000
|
)
|
|
(500
|
)
|
|||
Commercial paper, net
|
—
|
|
|
(135
|
)
|
|
(65
|
)
|
|||
Debt repayments
|
(1,069
|
)
|
|
(68
|
)
|
|
(182
|
)
|
|||
Debt issuance costs
|
(19
|
)
|
|
—
|
|
|
—
|
|
|||
Dividends paid
|
(460
|
)
|
|
(543
|
)
|
|
(508
|
)
|
|||
Other
|
(30
|
)
|
|
(24
|
)
|
|
(7
|
)
|
|||
Total uses of cash and cash equivalents
|
$
|
(5,979
|
)
|
|
$
|
(7,327
|
)
|
|
$
|
(6,329
|
)
|
|
Year Ended December 31,
|
||||||||||
(In millions)
|
2015
|
|
2014
|
|
2013
|
||||||
North America E&P
|
$
|
2,553
|
|
|
$
|
4,698
|
|
|
$
|
3,649
|
|
International E&P
|
368
|
|
|
534
|
|
|
456
|
|
|||
Oil Sands Mining
(a)
|
(10
|
)
|
|
212
|
|
|
286
|
|
|||
Corporate
|
25
|
|
|
51
|
|
|
58
|
|
|||
Total capital expenditures
|
2,936
|
|
|
5,495
|
|
|
4,449
|
|
|||
Change in capital expenditure accrual
|
540
|
|
|
(335
|
)
|
|
(6
|
)
|
|||
Additions to property, plant and equipment
|
$
|
3,476
|
|
|
$
|
5,160
|
|
|
$
|
4,443
|
|
(Dollars in millions)
|
2015
|
|
2014
|
||||
Long-term debt due within one year
|
$
|
1
|
|
|
$
|
1,068
|
|
Long-term debt
|
7,276
|
|
|
5,295
|
|
||
Total debt
|
$
|
7,277
|
|
|
$
|
6,363
|
|
Cash and cash equivalents
|
$
|
1,221
|
|
|
$
|
2,398
|
|
Equity
|
$
|
18,553
|
|
|
$
|
21,020
|
|
Calculation
|
|
|
|
||||
Total debt
|
$
|
7,277
|
|
|
$
|
6,363
|
|
Minus cash and cash equivalents
|
1,221
|
|
|
2,398
|
|
||
Total debt minus cash and cash equivalents
|
6,056
|
|
|
3,965
|
|
||
Total debt
|
$
|
7,277
|
|
|
$
|
6,363
|
|
Plus equity
|
18,553
|
|
|
21,020
|
|
||
Minus cash and cash equivalents
|
1,221
|
|
|
2,398
|
|
||
Total debt plus equity minus cash, cash equivalents
|
$
|
24,609
|
|
|
$
|
24,985
|
|
Cash-adjusted debt-to-capital ratio
|
25
|
%
|
|
16
|
%
|
(In millions)
|
Total
|
|
2016
|
|
2017-
2018
|
|
2019-
2020
|
|
Later
Years
|
||||||||||
Short and long-term debt (includes interest)
(a)
|
$
|
11,870
|
|
|
$
|
365
|
|
|
$
|
2,196
|
|
|
$
|
1,354
|
|
|
$
|
7,955
|
|
Lease obligations
|
178
|
|
|
30
|
|
|
52
|
|
|
50
|
|
|
46
|
|
|||||
Purchase obligations:
|
|
|
|
|
|
|
|
|
|
||||||||||
Oil and gas activities
(b)
|
382
|
|
|
263
|
|
|
70
|
|
|
37
|
|
|
12
|
|
|||||
Service and materials contracts
(c)
|
761
|
|
|
90
|
|
|
128
|
|
|
37
|
|
|
506
|
|
|||||
Transportation and related contracts
|
1,768
|
|
|
256
|
|
|
495
|
|
|
393
|
|
|
624
|
|
|||||
Drilling rigs and fracturing crews
(d)
|
270
|
|
|
119
|
|
|
151
|
|
|
—
|
|
|
—
|
|
|||||
Other
(g)
|
141
|
|
|
26
|
|
|
29
|
|
|
30
|
|
|
56
|
|
|||||
Total purchase obligations
|
3,322
|
|
|
754
|
|
|
873
|
|
|
497
|
|
|
1,198
|
|
|||||
Other long-term liabilities reported in the consolidated balance sheet
(e)
|
618
|
|
|
94
|
|
|
158
|
|
|
113
|
|
|
253
|
|
|||||
Total contractual cash obligations
(f)
|
$
|
15,988
|
|
|
$
|
1,243
|
|
|
$
|
3,279
|
|
|
$
|
2,014
|
|
|
$
|
9,452
|
|
(a)
|
Includes anticipated cash payments for interest of
$365 million
for
2016
,
$660 million
for 2017-2018,
$526 million
for 2019-2020 and
$3,018 million
for the remaining years for a total of
$4,569 million
.
|
(b)
|
Oil and gas activities include contracts to acquire property, plant and equipment and commitments for oil and gas exploration such as costs related to contractually obligated exploratory work programs that are expensed immediately.
|
(c)
|
Service and materials contracts include contracts to purchase services such as utilities, supplies and various other maintenance and operating services.
|
(d)
|
Some contracts may be canceled at an amount less than the contract amount. Were we to elect that option where possible at December 31, 2015 our minimum commitment would be $163 million.
|
(e)
|
Primarily includes obligations for pension and other postretirement benefits including medical and life insurance. We have estimated projected funding requirements through 2025. Although unrecognized tax benefits are not a contractual obligation, they are presented in this table because they represent potential demands on our liquidity.
|
(f)
|
This table does not include the estimated discounted liability for dismantlement, abandonment and restoration costs of oil and gas properties of
$1,635 million
. See Item 8. Financial Statements and Supplementary Data – Note
18
to the consolidated financial statements.
|
(g)
|
We expect to make severance payments of approximately
$8 million
in 2016 related to the workforce reduction in 2015.
|
|
Unweighted 12-month 2015 Average
|
Unweighted 2-month 2016 Average
|
||||
WTI Crude oil
|
$
|
50.28
|
|
$
|
34.19
|
|
Henry Hub natural gas
|
$
|
2.59
|
|
$
|
2.28
|
|
Brent crude oil
|
$
|
54.25
|
|
$
|
34.86
|
|
Natural gas liquids
|
$
|
17.32
|
|
$
|
12.87
|
|
|
Impact of a Ten% Increase in Proved Reserves
|
|
Impact of a Ten% Decrease in Proved Reserves
|
||||||||||||
(In millions, except per boe)
|
DD&A per boe
|
|
Pretax Income
|
|
DD&A per boe
|
|
Pretax Income
|
||||||||
North America E&P
|
$
|
(2.20
|
)
|
|
$
|
216
|
|
|
$
|
2.69
|
|
|
$
|
(264
|
)
|
International E&P
|
$
|
(0.63
|
)
|
|
$
|
27
|
|
|
$
|
0.77
|
|
|
$
|
(33
|
)
|
Oil Sands Mining
|
$
|
(1.04
|
)
|
|
$
|
17
|
|
|
$
|
1.46
|
|
|
$
|
(24
|
)
|
•
|
Level 1 – Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets as of the measurement date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.
|
•
|
Level 2 – Observable market-based inputs or unobservable inputs that are corroborated by market data. These are inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the measurement date.
|
•
|
Level 3 – Unobservable inputs that are not corroborated by market data and may be used with internally developed methodologies that result in management’s best estimate of fair value.
|
•
|
impairment assessments of long-lived assets;
|
•
|
impairment assessments of goodwill; and
|
•
|
recorded value of derivative instruments.
|
•
|
Future crude oil and condensate, NGLs, natural gas and synthetic crude oil prices.
Our estimates of future prices are based on our analysis of market supply and demand and consideration of market price indicators. Although these commodity prices may experience extreme volatility in any given year, we believe long-term industry prices are driven by global market supply and demand. To estimate supply, we consider numerous factors, including the worldwide resource base, depletion rates and OPEC production policies. We believe demand is largely driven by global economic factors, such as population and income growth, governmental policies and vehicle stocks. The prices we use in our fair value estimates are consistent with those used in our planning and capital investment reviews. There has been significant volatility in crude oil and condensate, NGLs, natural gas and synthetic crude oil prices and estimates of such future prices are inherently imprecise.
|
•
|
Estimated quantities of crude oil and condensate, NGLs, natural gas and synthetic crude oil.
Such quantities are based on a combination of proved and risk-weighted probable reserves such that the combined volumes represent the most likely expectation of recovery.
|
•
|
Expected timing of production.
Production forecasts are the outcome of engineer studies which estimate reserves, as well as expected capital development programs. The actual timing of the production could be different than the projection. Cash flows realized later in the projection period are less valuable than those realized earlier due to the time value of money. The expected timing of production that we use in our fair value estimates is consistent with that used in our planning and capital investment reviews.
|
•
|
Discount rate commensurate with the risks involved.
We apply a discount rate to our expected cash flows based on a variety of factors, including market and economic conditions, operational risk, regulatory risk and political risk. A higher discount rate decreases the net present value of cash flows.
|
•
|
Future capital requirements.
Our estimates of future capital requirements are based upon a combination of authorized spending and internal forecasts.
|
•
|
the discount rate for measuring the present value of future plan obligations;
|
•
|
the expected long-term return on plan assets;
|
•
|
the rate of future increases in compensation levels; and
|
•
|
health care cost projections.
|
|
Impact of a 0.25% Increase in Discount Rate
|
|
Impact of a 0.25% Decrease in Discount Rate
|
||||||||||||
(In millions)
|
Obligation
|
|
Expense
|
|
Obligation
|
|
Expense
|
||||||||
U.S. pension plans
|
$
|
(14
|
)
|
|
$
|
(1
|
)
|
|
$
|
14
|
|
|
$
|
1
|
|
Other U.S. postretirement benefit plans
|
$
|
(6
|
)
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
—
|
|
Financial Instrument
|
Weighted Average Price
|
Barrels per day
|
Remaining Term
|
Three-Way Collars
|
|
|
|
Ceiling
|
$60.03
|
10,000
|
January - March 2016
(a)
|
Floor
|
$50.20
|
|
|
Sold put
|
$41.60
|
|
|
|
|
|
|
Ceiling
|
$71.84
|
12,000
|
January- December 2016
|
Floor
|
$60.48
|
|
|
Sold put
|
$50.00
|
|
|
|
|
|
|
Ceiling
|
$73.13
|
2,000
|
January- June 2016
(b)
|
Floor
|
$65.00
|
|
|
Sold put
|
$50.00
|
|
|
Sold Call Options
|
$72.39
|
10,000
|
January- December 2016
(c)
|
(a)
|
Counterparties have the option, exercisable on March 31, 2016, to extend these collars through September of 2016 at the same volume and weighted average price as the underlying three-way collars.
|
(b)
|
Counterparty has the option, exercisable on June 30, 2016, to extend these collars through the remainder of 2016 at the same volume and weighted average price as the underlying three-way collars.
|
(c)
|
Call options settle monthly.
|
(In millions)
|
Hypothetical Price Increase of 10%
|
Hypothetical Price Decrease of 10%
|
||
Crude oil commodity derivatives
|
(8
|
)
|
5
|
|
(a)
|
Fair values of cash and cash equivalents, receivables, commercial paper, accounts payable and accrued interest approximate carrying value and are relatively insensitive to changes in interest rates due to the short-term maturity of the instruments. Accordingly, these instruments are excluded from the table.
|
(b)
|
Fair value was based on market prices where available, or current borrowing rates for financings with similar terms and maturities.
|
(c)
|
Excludes capital leases.
|
|
Page
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Lee M. Tillman
|
|
/s/ John R. Sult
|
|
|
President and Chief Executive Officer
|
|
Executive Vice President and Chief Financial Officer
|
|
|
/s/ Lee M. Tillman
|
|
/s/ John R. Sult
|
|
President and Chief Executive Officer
|
|
Executive Vice President and Chief Financial Officer
|
|
|
Year Ended December 31,
|
||||||||||
(In millions, except per share data)
|
2015
|
|
2014
|
|
2013
|
||||||
Revenues and other income:
|
|
|
|
|
|
||||||
Sales and other operating revenues, including related party
|
$
|
4,951
|
|
|
$
|
8,736
|
|
|
$
|
9,246
|
|
Marketing revenues
|
571
|
|
|
2,110
|
|
|
2,079
|
|
|||
Income from equity method investments
|
145
|
|
|
424
|
|
|
423
|
|
|||
Net gain (loss) on disposal of assets
|
120
|
|
|
(90
|
)
|
|
(29
|
)
|
|||
Other income
|
74
|
|
|
78
|
|
|
64
|
|
|||
Total revenues and other income
|
5,861
|
|
|
11,258
|
|
|
11,783
|
|
|||
Costs and expenses:
|
|
|
|
|
|
||||||
Production
|
1,694
|
|
|
2,246
|
|
|
2,156
|
|
|||
Marketing, including purchases from related parties
|
569
|
|
|
2,105
|
|
|
2,076
|
|
|||
Other operating
|
438
|
|
|
462
|
|
|
389
|
|
|||
Exploration
|
1,318
|
|
|
793
|
|
|
891
|
|
|||
Depreciation, depletion and amortization
|
2,957
|
|
|
2,861
|
|
|
2,500
|
|
|||
Impairments
|
752
|
|
|
132
|
|
|
96
|
|
|||
Taxes other than income
|
234
|
|
|
406
|
|
|
345
|
|
|||
General and administrative
|
590
|
|
|
654
|
|
|
659
|
|
|||
Total costs and expenses
|
8,552
|
|
|
9,659
|
|
|
9,112
|
|
|||
Income (loss) from operations
|
(2,691
|
)
|
|
1,599
|
|
|
2,671
|
|
|||
Net interest and other
|
(267
|
)
|
|
(238
|
)
|
|
(278
|
)
|
|||
Income (loss) from continuing operations before income taxes
|
(2,958
|
)
|
|
1,361
|
|
|
2,393
|
|
|||
Provision (benefit) for income taxes
|
(754
|
)
|
|
392
|
|
|
1,462
|
|
|||
Income (loss) from continuing operations
|
(2,204
|
)
|
|
969
|
|
|
931
|
|
|||
Discontinued operations
|
—
|
|
|
2,077
|
|
|
822
|
|
|||
Net income (loss)
|
$
|
(2,204
|
)
|
|
$
|
3,046
|
|
|
$
|
1,753
|
|
Per Share Data
|
|
|
|
|
|
||||||
Basic:
|
|
|
|
|
|
||||||
Income (loss) from continuing operations
|
$
|
(3.26
|
)
|
|
$
|
1.42
|
|
|
$
|
1.32
|
|
Discontinued operations
|
$
|
—
|
|
|
$
|
3.06
|
|
|
$
|
1.17
|
|
Net income (loss)
|
$
|
(3.26
|
)
|
|
$
|
4.48
|
|
|
$
|
2.49
|
|
Diluted:
|
|
|
|
|
|
||||||
Income (loss) from continuing operations
|
$
|
(3.26
|
)
|
|
$
|
1.42
|
|
|
$
|
1.31
|
|
Discontinued operations
|
$
|
—
|
|
|
$
|
3.04
|
|
|
$
|
1.16
|
|
Net income (loss)
|
$
|
(3.26
|
)
|
|
$
|
4.46
|
|
|
$
|
2.47
|
|
Dividends
|
$
|
0.68
|
|
|
$
|
0.80
|
|
|
$
|
0.72
|
|
Weighted average shares:
|
|
|
|
|
|
||||||
Basic
|
677
|
|
|
680
|
|
|
705
|
|
|||
Diluted
|
677
|
|
|
683
|
|
|
709
|
|
|
Year Ended December 31,
|
||||||||||
(In millions)
|
2015
|
|
2014
|
|
2013
|
||||||
Net income (loss)
|
$
|
(2,204
|
)
|
|
$
|
3,046
|
|
|
$
|
1,753
|
|
Other comprehensive income (loss)
|
|
|
|
|
|
||||||
Postretirement and postemployment plans
|
|
|
|
|
|
||||||
Change in actuarial loss and other
|
228
|
|
|
(52
|
)
|
|
300
|
|
|||
Income tax benefit (provision)
|
(86
|
)
|
|
25
|
|
|
(112
|
)
|
|||
Postretirement and postemployment plans, net of tax
|
142
|
|
|
(27
|
)
|
|
188
|
|
|||
Derivative hedges
|
|
|
|
|
|
||||||
Net unrecognized gain
|
—
|
|
|
1
|
|
|
1
|
|
|||
Income tax provision
|
—
|
|
|
—
|
|
|
—
|
|
|||
Derivative hedges, net of tax
|
—
|
|
|
1
|
|
|
1
|
|
|||
Foreign currency translation and other
|
|
|
|
|
|
||||||
Unrealized loss
|
—
|
|
|
—
|
|
|
(3
|
)
|
|||
Income tax benefit (provision)
|
—
|
|
|
(1
|
)
|
|
1
|
|
|||
Foreign currency translation and other, net of tax
|
—
|
|
|
(1
|
)
|
|
(2
|
)
|
|||
Other comprehensive income (loss)
|
142
|
|
|
(27
|
)
|
|
187
|
|
|||
Comprehensive income (loss)
|
$
|
(2,062
|
)
|
|
$
|
3,019
|
|
|
$
|
1,940
|
|
|
December 31,
|
||||||
(In millions, except par values and share amounts)
|
2015
|
|
2014
|
||||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
1,221
|
|
|
$
|
2,398
|
|
Receivables, less reserve of $4 and $3
|
912
|
|
|
1,729
|
|
||
Inventories
|
313
|
|
|
357
|
|
||
Other current assets
|
144
|
|
|
109
|
|
||
Total current assets
|
2,590
|
|
|
4,593
|
|
||
Equity method investments
|
1,003
|
|
|
1,113
|
|
||
Property, plant and equipment, less accumulated depreciation,
|
|
|
|
|
|
||
depletion and amortization of $23,260 and $21,884
|
27,061
|
|
|
29,040
|
|
||
Goodwill
|
115
|
|
|
459
|
|
||
Other noncurrent assets
|
1,542
|
|
|
778
|
|
||
Total assets
|
$
|
32,311
|
|
|
$
|
35,983
|
|
Liabilities
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
1,313
|
|
|
2,545
|
|
||
Payroll and benefits payable
|
133
|
|
|
191
|
|
||
Accrued taxes
|
132
|
|
|
285
|
|
||
Other current liabilities
|
150
|
|
|
290
|
|
||
Long-term debt due within one year
|
1
|
|
|
1,068
|
|
||
Total current liabilities
|
1,729
|
|
|
4,379
|
|
||
Long-term debt
|
7,276
|
|
|
5,295
|
|
||
Deferred tax liabilities
|
2,441
|
|
|
2,486
|
|
||
Defined benefit postretirement plan obligations
|
403
|
|
|
598
|
|
||
Asset retirement obligations
|
1,601
|
|
|
1,917
|
|
||
Deferred credits and other liabilities
|
308
|
|
|
288
|
|
||
Total liabilities
|
13,758
|
|
|
14,963
|
|
||
Commitments and contingencies
|
|
|
|
|
|||
Stockholders’ Equity
|
|
|
|
||||
Preferred stock - no shares issued or outstanding (no par value,
|
|
|
|
||||
26 million shares authorized)
|
—
|
|
|
—
|
|
||
Common stock:
|
|
|
|
||||
Issued – 770 million shares (par value $1 per share, 1.1 billion shares authorized)
|
770
|
|
|
770
|
|
||
Securities exchangeable into common stock – no shares issued
|
|
|
|
|
|
||
or outstanding (no par value, 29 million shares authorized)
|
—
|
|
|
—
|
|
||
Held in treasury, at cost – 93 million and 95 million shares
|
(3,554
|
)
|
|
(3,642
|
)
|
||
Additional paid-in capital
|
6,498
|
|
|
6,531
|
|
||
Retained earnings
|
14,974
|
|
|
17,638
|
|
||
Accumulated other comprehensive loss
|
(135
|
)
|
|
(277
|
)
|
||
Total stockholders' equity
|
18,553
|
|
|
21,020
|
|
||
Total liabilities and stockholders' equity
|
$
|
32,311
|
|
|
$
|
35,983
|
|
|
Year Ended December 31,
|
||||||||||
(In millions)
|
2015
|
|
2014
|
|
2013
|
||||||
Increase (decrease) in cash and cash equivalents
|
|
|
|
|
|
||||||
Operating activities:
|
|
|
|
|
|
|
|||||
Net income (loss)
|
$
|
(2,204
|
)
|
|
$
|
3,046
|
|
|
$
|
1,753
|
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
|
|
|
|
|
|
|||||
Discontinued operations
|
—
|
|
|
(2,077
|
)
|
|
(822
|
)
|
|||
Deferred income taxes
|
(806
|
)
|
|
88
|
|
|
(34
|
)
|
|||
Depreciation, depletion and amortization
|
2,957
|
|
|
2,861
|
|
|
2,500
|
|
|||
Impairments
|
752
|
|
|
132
|
|
|
96
|
|
|||
Pension and other postretirement benefits, net
|
1
|
|
|
(34
|
)
|
|
45
|
|
|||
Exploratory dry well costs and unproved property impairments
|
1,214
|
|
|
623
|
|
|
720
|
|
|||
Net (gain) loss on disposal of assets
|
(120
|
)
|
|
90
|
|
|
29
|
|
|||
Equity method investments, net
|
33
|
|
|
27
|
|
|
12
|
|
|||
Changes in:
|
|
|
|
|
|
||||||
Current receivables
|
817
|
|
|
119
|
|
|
217
|
|
|||
Inventories
|
36
|
|
|
(11
|
)
|
|
(19
|
)
|
|||
Current accounts payable and accrued liabilities
|
(965
|
)
|
|
(33
|
)
|
|
(208
|
)
|
|||
All other operating, net
|
(150
|
)
|
|
(95
|
)
|
|
99
|
|
|||
Net cash provided by continuing operations
|
1,565
|
|
|
4,736
|
|
|
4,388
|
|
|||
Net cash provided by discontinued operations
|
—
|
|
|
751
|
|
|
882
|
|
|||
Net cash provided by operating activities
|
1,565
|
|
|
5,487
|
|
|
5,270
|
|
|||
Investing activities:
|
|
|
|
|
|
||||||
Acquisitions, net of cash acquired
|
—
|
|
|
(21
|
)
|
|
(74
|
)
|
|||
Additions to property, plant and equipment
|
(3,476
|
)
|
|
(5,160
|
)
|
|
(4,443
|
)
|
|||
Disposal of assets
|
225
|
|
|
3,760
|
|
|
450
|
|
|||
Investments - return of capital
|
77
|
|
|
61
|
|
|
61
|
|
|||
Investing activities of discontinued operations
|
—
|
|
|
(376
|
)
|
|
(550
|
)
|
|||
Purchases of short term investments
|
(925
|
)
|
|
—
|
|
|
—
|
|
|||
Maturities of short term investments
|
925
|
|
|
—
|
|
|
—
|
|
|||
All other investing, net
|
(28
|
)
|
|
(10
|
)
|
|
35
|
|
|||
Net cash used in investing activities
|
(3,202
|
)
|
|
(1,746
|
)
|
|
(4,521
|
)
|
|||
Financing activities:
|
|
|
|
|
|
||||||
Commercial paper, net
|
—
|
|
|
(135
|
)
|
|
(65
|
)
|
|||
Borrowings
|
1,996
|
|
|
—
|
|
|
—
|
|
|||
Debt issuance costs
|
(19
|
)
|
|
—
|
|
|
—
|
|
|||
Debt repayments
|
(1,069
|
)
|
|
(68
|
)
|
|
(182
|
)
|
|||
Purchases of common stock
|
—
|
|
|
(1,000
|
)
|
|
(500
|
)
|
|||
Dividends paid
|
(460
|
)
|
|
(543
|
)
|
|
(508
|
)
|
|||
All other financing, net
|
14
|
|
|
153
|
|
|
93
|
|
|||
Net cash provided by (used in) financing activities
|
462
|
|
|
(1,593
|
)
|
|
(1,162
|
)
|
|||
Effect of exchange rate changes on cash:
|
|
|
|
|
|
||||||
Continuing operations
|
(2
|
)
|
|
(2
|
)
|
|
(3
|
)
|
|||
Discontinued operations
|
—
|
|
|
(12
|
)
|
|
(4
|
)
|
|||
Net increase (decrease) in cash and cash equivalents
|
(1,177
|
)
|
|
2,134
|
|
|
(420
|
)
|
|||
Cash and cash equivalents at beginning of period
|
2,398
|
|
|
264
|
|
|
684
|
|
|||
Cash and cash equivalents at end of period
|
$
|
1,221
|
|
|
$
|
2,398
|
|
|
$
|
264
|
|
|
Total Equity of Marathon Oil Stockholders
|
|
|
||||||||||||||||||||||||||||
(In millions)
|
Preferred
Stock
|
|
Common
Stock
|
|
Securities
Exchangeable
into Common
Stock
|
|
Treasury
Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Total
Equity
|
||||||||||||||||
December 31, 2012 Balance
|
$
|
—
|
|
|
$
|
770
|
|
|
$
|
—
|
|
|
$
|
(2,560
|
)
|
|
$
|
6,616
|
|
|
$
|
13,890
|
|
|
$
|
(433
|
)
|
|
$
|
18,283
|
|
Shares issued - stock-based
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
170
|
|
|
(44
|
)
|
|
—
|
|
|
—
|
|
|
126
|
|
||||||||
Shares repurchased
|
—
|
|
|
—
|
|
|
—
|
|
|
(513
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(513
|
)
|
||||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
—
|
|
|
20
|
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,753
|
|
|
—
|
|
|
1,753
|
|
||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
183
|
|
|
183
|
|
||||||||
Dividends paid
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(508
|
)
|
|
—
|
|
|
(508
|
)
|
||||||||
December 31, 2013 Balance
|
$
|
—
|
|
|
$
|
770
|
|
|
$
|
—
|
|
|
$
|
(2,903
|
)
|
|
$
|
6,592
|
|
|
$
|
15,135
|
|
|
$
|
(250
|
)
|
|
$
|
19,344
|
|
Shares issued - stock-based
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
276
|
|
|
(57
|
)
|
|
—
|
|
|
—
|
|
|
219
|
|
||||||||
Shares repurchased
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,015
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,015
|
)
|
||||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,046
|
|
|
—
|
|
|
3,046
|
|
||||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(27
|
)
|
|
(27
|
)
|
||||||||
Dividends paid
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(543
|
)
|
|
—
|
|
|
(543
|
)
|
||||||||
December 31, 2014 Balance
|
$
|
—
|
|
|
$
|
770
|
|
|
$
|
—
|
|
|
$
|
(3,642
|
)
|
|
$
|
6,531
|
|
|
$
|
17,638
|
|
|
$
|
(277
|
)
|
|
$
|
21,020
|
|
Shares issued - stock-based
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
96
|
|
|
(32
|
)
|
|
—
|
|
|
—
|
|
|
64
|
|
||||||||
Shares repurchased
|
—
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
||||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||||||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,204
|
)
|
|
—
|
|
|
(2,204
|
)
|
||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
142
|
|
|
142
|
|
||||||||
Dividends paid
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(460
|
)
|
|
—
|
|
|
(460
|
)
|
||||||||
December 31, 2015 Balance
|
$
|
—
|
|
|
$
|
770
|
|
|
$
|
—
|
|
|
$
|
(3,554
|
)
|
|
$
|
6,498
|
|
|
$
|
14,974
|
|
|
$
|
(135
|
)
|
|
$
|
18,553
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
(Shares in millions)
|
Preferred
Stock
|
|
Common
Stock
|
|
Securities
Exchangeable
into Common
Stock
|
|
Treasury
Stock
|
|
|
|
|
|
|
|
|
||||||||||||||||
December 31, 2012 Balance
|
—
|
|
|
770
|
|
|
—
|
|
|
63
|
|
|
|
|
|
|
|
|
|
||||||||||||
Shares issued - stock-based
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
|
|
|
|
|
|
|
||||||||||||
Shares repurchased
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
|
|
|
|
|
|
|
||||||||||||
December 31, 2013 Balance
|
—
|
|
|
770
|
|
|
—
|
|
|
73
|
|
|
|
|
|
|
|
|
|
||||||||||||
Shares issued - stock-based
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
|
|
|
|
|
|
|
||||||||||||
Shares repurchased
|
—
|
|
|
—
|
|
|
—
|
|
|
29
|
|
|
|
|
|
|
|
|
|
||||||||||||
December 31, 2014 Balance
|
—
|
|
|
770
|
|
|
—
|
|
|
95
|
|
|
|
|
|
|
|
|
|
||||||||||||
Shares issued - stock-based
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
|
|
|
|
|
|
|
||||||||||||
Shares repurchased
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
||||||||||||
December 31, 2015 Balance
|
—
|
|
|
770
|
|
|
—
|
|
|
93
|
|
|
|
|
|
|
|
|
|
Type of Asset
|
|
Range of Useful Lives
|
Office furniture, equipment and computer hardware
|
|
3 to 15 years
|
Pipelines
|
|
10 to 40 years
|
Plants, facilities, mine equipment and infrastructure
|
|
1 to 40 years
|
3.
|
Variable Interest Entities
|
|
Year Ended December 31,
|
||||||
(In millions)
|
2014
|
|
2013
|
||||
Revenues applicable to discontinued operations
|
$
|
1,981
|
|
|
$
|
3,176
|
|
Pretax income from discontinued operations
|
$
|
1,693
|
|
|
$
|
2,537
|
|
Pretax gain on disposition of discontinued operations
|
$
|
1,406
|
|
|
$
|
—
|
|
|
Year Ended December 31,
|
|||||||
(In millions)
|
|
2014
|
|
2013
|
||||
Revenues applicable to discontinued operations
|
|
$
|
58
|
|
|
$
|
361
|
|
Pretax income from discontinued operations
|
|
$
|
51
|
|
|
$
|
247
|
|
Pretax gain on disposition of discontinued operations
|
|
$
|
426
|
|
|
$
|
—
|
|
|
Year Ended December 31,
|
||||||||||
(In millions, except per share data)
|
2015
|
|
2014
|
|
2013
|
||||||
Income (loss) from continuing operations
|
$
|
(2,204
|
)
|
|
$
|
969
|
|
|
$
|
931
|
|
Discontinued operations
|
—
|
|
|
2,077
|
|
|
822
|
|
|||
Net income (loss)
|
$
|
(2,204
|
)
|
|
$
|
3,046
|
|
|
$
|
1,753
|
|
|
|
|
|
|
|
||||||
Weighted average common shares outstanding
|
677
|
|
|
680
|
|
|
705
|
|
|||
Effect of dilutive securities
|
—
|
|
|
3
|
|
|
4
|
|
|||
Weighted average common shares, diluted
|
677
|
|
|
683
|
|
|
709
|
|
|||
Per basic share:
|
|
|
|
|
|
|
|
||||
Income (loss) from continuing operations
|
$
|
(3.26
|
)
|
|
$
|
1.42
|
|
|
$
|
1.32
|
|
Discontinued operations
|
$
|
—
|
|
|
$
|
3.06
|
|
|
$
|
1.17
|
|
Net income (loss)
|
$
|
(3.26
|
)
|
|
$
|
4.48
|
|
|
$
|
2.49
|
|
Per diluted share:
|
|
|
|
|
|
||||||
Income (loss) from continuing operations
|
$
|
(3.26
|
)
|
|
$
|
1.42
|
|
|
$
|
1.31
|
|
Discontinued operations
|
$
|
—
|
|
|
$
|
3.04
|
|
|
$
|
1.16
|
|
Net income (loss)
|
$
|
(3.26
|
)
|
|
$
|
4.46
|
|
|
$
|
2.47
|
|
•
|
North America E&P ("N.A. E&P") – explores for, produces and markets crude oil and condensate, NGLs and natural gas in North America;
|
•
|
International E&P ("Int'l E&P") – explores for, produces and markets crude oil and condensate, NGLs and natural gas outside of North America and produces and markets products manufactured from natural gas, such as LNG and methanol, in E.G.; and
|
•
|
Oil Sands Mining (“OSM”) – mines, extracts and transports bitumen from oil sands deposits in Alberta, Canada, and upgrades the bitumen to produce and market synthetic crude oil and vacuum gas oil.
|
Year Ended December 31, 2015
|
|
|
Not Allocated
|
|
|
||||||||||||||
(In millions)
|
N.A. E&P
|
|
Int'l E&P
|
|
OSM
|
|
to Segments
|
|
Total
|
||||||||||
Sales and other operating revenues
|
$
|
3,358
|
|
|
$
|
728
|
|
|
$
|
815
|
|
|
$
|
50
|
|
(c)
|
$
|
4,951
|
|
Marketing revenues
|
396
|
|
|
103
|
|
|
72
|
|
|
—
|
|
|
571
|
|
|||||
Total revenues
|
3,754
|
|
|
831
|
|
|
887
|
|
|
50
|
|
|
5,522
|
|
|||||
Income (loss) from equity method investments
|
—
|
|
|
157
|
|
|
—
|
|
|
(12
|
)
|
(d)
|
145
|
|
|||||
Net gain on disposal of assets and other income
|
24
|
|
|
27
|
|
|
21
|
|
|
122
|
|
(e)
|
194
|
|
|||||
Less:
|
|
|
|
|
|
|
|
|
|
||||||||||
Production expenses
|
724
|
|
|
255
|
|
|
715
|
|
|
—
|
|
|
1,694
|
|
|||||
Marketing costs
|
401
|
|
|
99
|
|
|
69
|
|
|
—
|
|
|
569
|
|
|||||
Exploration expenses
|
362
|
|
|
101
|
|
|
—
|
|
|
855
|
|
(f)
|
1,318
|
|
|||||
Depreciation, depletion and amortization
|
2,377
|
|
|
295
|
|
|
236
|
|
|
49
|
|
|
2,957
|
|
|||||
Impairments
|
2
|
|
|
—
|
|
|
5
|
|
|
745
|
|
(g)
|
752
|
|
|||||
Other expenses
(a)
|
462
|
|
|
92
|
|
|
34
|
|
|
440
|
|
(h)
|
1,028
|
|
|||||
Taxes other than income
|
215
|
|
|
—
|
|
|
18
|
|
|
1
|
|
|
234
|
|
|||||
Net interest and other
|
—
|
|
|
—
|
|
|
—
|
|
|
267
|
|
|
267
|
|
|||||
Income tax provision (benefit)
|
(279
|
)
|
|
61
|
|
|
(56
|
)
|
|
(480
|
)
|
(i)
|
(754
|
)
|
|||||
Segment income (loss)/Income (loss) from continuing operations
|
$
|
(486
|
)
|
|
$
|
112
|
|
|
$
|
(113
|
)
|
|
$
|
(1,717
|
)
|
|
$
|
(2,204
|
)
|
Capital expenditures
(b)
|
$
|
2,553
|
|
|
$
|
368
|
|
|
$
|
(10
|
)
|
|
$
|
25
|
|
|
$
|
2,936
|
|
(a)
|
Includes other operating expenses and general and administrative expenses.
|
(b)
|
Includes accruals.
|
(c)
|
Unrealized gain on crude oil derivative instruments.
|
(d)
|
Partial impairment of investment in equity method investee (See Note
15
).
|
(e)
|
Primarily related to gain on sale of our properties and interests in the Gulf of Mexico, partially offset by the loss on sale of East Africa exploration acreage
(see Note
5
).
|
(g)
|
Goodwill impairment (see Note
14
) and proved property impairments (see Note
15
).
|
(h)
|
Includes pension settlement loss of
$119 million
(see Note
20
) and severance related expenses associated with workforce reductions of $
55 million
.
|
(i)
|
Includes
$135 million
of deferred tax expense related to Alberta provincial corporate tax rate increase (see Note
9
).
|
Year Ended December 31, 2014
|
|
|
Not Allocated
|
|
|
||||||||||||||
(In millions)
|
N.A. E&P
|
|
Int'l E&P
|
|
OSM
|
|
to Segments
|
|
Total
|
||||||||||
Sales and other operating revenues
|
$
|
5,770
|
|
|
$
|
1,410
|
|
|
$
|
1,556
|
|
|
$
|
—
|
|
|
$
|
8,736
|
|
Marketing revenues
|
1,839
|
|
|
219
|
|
|
52
|
|
|
—
|
|
|
2,110
|
|
|||||
Total revenues
|
7,609
|
|
|
1,629
|
|
|
1,608
|
|
|
—
|
|
|
10,846
|
|
|||||
Income from equity method investments
|
—
|
|
|
424
|
|
|
—
|
|
|
—
|
|
|
424
|
|
|||||
Net gain (loss) on disposal of assets and other income
|
23
|
|
|
57
|
|
|
4
|
|
|
(96
|
)
|
(c)
|
(12
|
)
|
|||||
Less:
|
|
|
|
|
|
|
|
|
|
||||||||||
Production expenses
|
891
|
|
|
386
|
|
|
969
|
|
|
—
|
|
|
2,246
|
|
|||||
Marketing costs
|
1,836
|
|
|
217
|
|
|
52
|
|
|
—
|
|
|
2,105
|
|
|||||
Exploration expenses
|
608
|
|
|
185
|
|
|
—
|
|
|
—
|
|
|
793
|
|
|||||
Depreciation, depletion and amortization
|
2,342
|
|
|
269
|
|
|
206
|
|
|
44
|
|
|
2,861
|
|
|||||
Impairments
|
23
|
|
|
—
|
|
|
—
|
|
|
109
|
|
(d)
|
132
|
|
|||||
Other expenses
(a)
|
473
|
|
|
197
|
|
|
54
|
|
|
392
|
|
(e)
|
1,116
|
|
|||||
Taxes other than income
|
385
|
|
|
—
|
|
|
20
|
|
|
1
|
|
|
406
|
|
|||||
Net interest and other
|
—
|
|
|
—
|
|
|
—
|
|
|
238
|
|
|
238
|
|
|||||
Income tax provision (benefit)
|
381
|
|
|
288
|
|
|
76
|
|
|
(353
|
)
|
|
392
|
|
|||||
Segment income/Income from continuing operations
|
$
|
693
|
|
|
$
|
568
|
|
|
$
|
235
|
|
|
$
|
(527
|
)
|
|
$
|
969
|
|
Capital expenditures
(b)
|
$
|
4,698
|
|
|
$
|
534
|
|
|
$
|
212
|
|
|
$
|
51
|
|
|
$
|
5,495
|
|
Year Ended December 31, 2013
|
|
|
Not Allocated
|
|
|
||||||||||||||
(In millions)
|
N.A. E&P
|
|
Int'l E&P
|
|
OSM
|
|
to Segments
|
|
Total
|
||||||||||
Sales and other operating revenues
|
$
|
5,068
|
|
|
$
|
2,654
|
|
|
$
|
1,576
|
|
|
$
|
(52
|
)
|
(c)
|
$
|
9,246
|
|
Marketing revenues
|
1,797
|
|
|
264
|
|
|
18
|
|
|
—
|
|
|
2,079
|
|
|||||
Total revenues
|
6,865
|
|
|
2,918
|
|
|
1,594
|
|
|
(52
|
)
|
|
11,325
|
|
|||||
Income from equity method investments
|
—
|
|
|
427
|
|
|
—
|
|
|
(4
|
)
|
(d)
|
423
|
|
|||||
Net gain (loss) on disposal of assets and other income
|
12
|
|
|
50
|
|
|
5
|
|
|
(32
|
)
|
(e)
|
35
|
|
|||||
Less:
|
|
|
|
|
|
|
|
|
|
||||||||||
Production expenses
|
797
|
|
|
359
|
|
|
1,000
|
|
|
—
|
|
|
2,156
|
|
|||||
Marketing costs
|
1,796
|
|
|
262
|
|
|
18
|
|
|
—
|
|
|
2,076
|
|
|||||
Exploration expenses
|
725
|
|
|
166
|
|
|
—
|
|
|
—
|
|
|
891
|
|
|||||
Depreciation, depletion and amortization
|
1,927
|
|
|
331
|
|
|
218
|
|
|
24
|
|
|
2,500
|
|
|||||
Impairments
|
41
|
|
|
—
|
|
|
—
|
|
|
55
|
|
(f)
|
96
|
|
|||||
Other expenses
(a)
|
420
|
|
|
161
|
|
|
66
|
|
|
401
|
|
(g)
|
1,048
|
|
|||||
Taxes other than income
|
318
|
|
|
—
|
|
|
22
|
|
|
5
|
|
|
345
|
|
|||||
Net interest and other
|
—
|
|
|
—
|
|
|
—
|
|
|
278
|
|
|
278
|
|
|||||
Income tax provision (benefit)
|
324
|
|
|
1,358
|
|
|
69
|
|
|
(289
|
)
|
|
1,462
|
|
|||||
Segment income/Income from continuing operations
|
$
|
529
|
|
|
$
|
758
|
|
|
$
|
206
|
|
|
$
|
(562
|
)
|
|
$
|
931
|
|
Capital expenditures
(b)
|
$
|
3,649
|
|
|
$
|
456
|
|
|
$
|
286
|
|
|
$
|
58
|
|
|
$
|
4,449
|
|
|
Year Ended December 31,
|
||||||||||
(In millions)
|
2015
|
|
2014
|
|
2013
|
||||||
United States
|
$
|
3,804
|
|
|
$
|
7,609
|
|
|
$
|
6,813
|
|
Canada
|
887
|
|
|
1,608
|
|
|
1,594
|
|
|||
Libya
(a)
|
—
|
|
|
244
|
|
|
1,106
|
|
|||
Other international
|
831
|
|
|
1,385
|
|
|
1,812
|
|
|||
Total revenues
|
$
|
5,522
|
|
|
$
|
10,846
|
|
|
$
|
11,325
|
|
(a)
|
See Note
12
for discussion of Libya operations.
|
|
Year Ended December 31,
|
||||||||||
(In millions)
|
2015
|
|
2014
|
|
2013
|
||||||
Crude oil and condensate
|
$
|
3,963
|
|
|
$
|
8,170
|
|
|
$
|
8,688
|
|
Natural gas liquids
|
203
|
|
|
371
|
|
|
313
|
|
|||
Natural gas
|
464
|
|
|
693
|
|
|
693
|
|
|||
Synthetic crude oil
|
781
|
|
|
1,525
|
|
|
1,542
|
|
|||
Other
|
111
|
|
|
87
|
|
|
89
|
|
|||
Total revenues
|
$
|
5,522
|
|
|
$
|
10,846
|
|
|
$
|
11,325
|
|
|
December 31,
|
||||||
(In millions)
|
2015
|
|
2014
|
||||
United States
|
$
|
15,353
|
|
|
$
|
16,518
|
|
Canada
|
9,197
|
|
|
9,802
|
|
||
Equatorial Guinea
|
1,917
|
|
|
1,949
|
|
||
Other international
|
1,597
|
|
|
1,884
|
|
||
Total long-lived assets
|
$
|
28,064
|
|
|
$
|
30,153
|
|
|
Year Ended December 31,
|
||||||||||
(In millions)
|
2015
|
|
2014
|
|
2013
|
||||||
Interest:
|
|
|
|
|
|
||||||
Interest income
|
$
|
9
|
|
|
$
|
7
|
|
|
$
|
5
|
|
Interest expense
|
(358
|
)
|
|
(309
|
)
|
|
(319
|
)
|
|||
Income on interest rate swaps
|
11
|
|
|
12
|
|
|
9
|
|
|||
Interest capitalized
|
26
|
|
|
20
|
|
|
12
|
|
|||
Total interest
|
(312
|
)
|
|
(270
|
)
|
|
(293
|
)
|
|||
Other:
|
|
|
|
|
|
||||||
Net foreign currency gains
|
23
|
|
|
21
|
|
|
14
|
|
|||
Other
|
22
|
|
|
11
|
|
|
1
|
|
|||
Total other
|
45
|
|
|
32
|
|
|
15
|
|
|||
Net interest and other
|
$
|
(267
|
)
|
|
$
|
(238
|
)
|
|
$
|
(278
|
)
|
|
Year Ended December 31,
|
||||||||||
(In millions)
|
2015
|
|
2014
|
|
2013
|
||||||
Net interest and other
|
$
|
23
|
|
|
$
|
21
|
|
|
$
|
14
|
|
Provision for income taxes
|
(11
|
)
|
|
(12
|
)
|
|
(2
|
)
|
|||
Aggregate foreign currency gains
|
$
|
12
|
|
|
$
|
9
|
|
|
$
|
12
|
|
|
Year Ended December 31,
|
||||||||||||||||||||||||||||||||||
|
2015
|
|
2014
|
|
2013
|
||||||||||||||||||||||||||||||
(In millions)
|
Current
|
|
Deferred
|
|
Total
|
|
Current
|
|
Deferred
|
|
Total
|
|
Current
|
|
Deferred
|
|
Total
|
||||||||||||||||||
Federal
|
$
|
(43
|
)
|
|
$
|
(687
|
)
|
|
$
|
(730
|
)
|
|
$
|
15
|
|
|
$
|
62
|
|
|
$
|
77
|
|
|
$
|
83
|
|
|
$
|
(47
|
)
|
|
$
|
36
|
|
State and local
|
(8
|
)
|
|
(18
|
)
|
|
(26
|
)
|
|
8
|
|
|
(58
|
)
|
|
(50
|
)
|
|
39
|
|
|
(6
|
)
|
|
33
|
|
|||||||||
Foreign
|
103
|
|
|
(101
|
)
|
|
2
|
|
|
281
|
|
|
84
|
|
|
365
|
|
|
1,374
|
|
|
19
|
|
|
1,393
|
|
|||||||||
Total
|
$
|
52
|
|
|
$
|
(806
|
)
|
|
$
|
(754
|
)
|
|
$
|
304
|
|
|
$
|
88
|
|
|
$
|
392
|
|
|
$
|
1,496
|
|
|
$
|
(34
|
)
|
|
$
|
1,462
|
|
|
Year Ended December 31,
|
|||||||
|
2015
|
|
2014
|
|
2013
|
|||
Statutory rate applied to income (loss) from continuing operations before income taxes
|
(35
|
)%
|
|
35
|
%
|
|
35
|
%
|
Effects of foreign operations, including foreign tax credits
|
(2
|
)
|
|
(6
|
)
|
|
26
|
|
Change in permanent reinvestment assertion
|
—
|
|
|
(19
|
)
|
|
—
|
|
Adjustments to valuation allowances
|
3
|
|
|
21
|
|
|
(1
|
)
|
Change in tax law
|
5
|
|
|
—
|
|
|
—
|
|
Goodwill impairment
|
4
|
|
|
—
|
|
|
—
|
|
Other
|
—
|
|
|
(2
|
)
|
|
1
|
|
Effective income tax expense (benefit) rate on continuing operations
|
(25
|
)%
|
|
29
|
%
|
|
61
|
%
|
|
Year Ended December 31,
|
||||||
(In millions)
|
2015
|
|
2014
|
||||
Deferred tax assets:
|
|
|
|
||||
Employee benefits
|
$
|
260
|
|
|
$
|
364
|
|
Operating loss carryforwards
|
563
|
|
|
245
|
|
||
Capital loss carryforwards
|
17
|
|
|
89
|
|
||
Foreign tax credits
|
4,335
|
|
|
4,062
|
|
||
Other credit carryforwards
|
35
|
|
|
—
|
|
||
Investments in subsidiaries and affiliates
|
17
|
|
|
—
|
|
||
Other
|
73
|
|
|
116
|
|
||
Valuation allowances:
|
|
|
|
||||
Federal
|
(2,820
|
)
|
|
(2,775
|
)
|
||
State, net of federal benefit
|
(56
|
)
|
|
(58
|
)
|
||
Foreign
|
(162
|
)
|
|
(108
|
)
|
||
Total deferred tax assets
|
2,262
|
|
|
1,935
|
|
||
Deferred tax liabilities:
|
|
|
|
||||
Property, plant and equipment
|
3,376
|
|
|
3,737
|
|
||
Investments in subsidiaries and affiliates
|
—
|
|
|
66
|
|
||
Other
|
105
|
|
|
67
|
|
||
Total deferred tax liabilities
|
3,481
|
|
|
3,870
|
|
||
Net deferred tax liabilities
|
$
|
1,219
|
|
|
$
|
1,935
|
|
|
December 31,
|
||||||
(In millions)
|
2015
|
|
2014
|
||||
Assets:
|
|
|
|
||||
Other current assets
|
$
|
—
|
|
|
$
|
29
|
|
Other noncurrent assets
|
1,222
|
|
|
525
|
|
||
Liabilities:
|
|
|
|
||||
Other current liabilities
|
—
|
|
|
3
|
|
||
Noncurrent deferred tax liabilities
|
2,441
|
|
|
2,486
|
|
||
Net deferred tax liabilities
|
$
|
1,219
|
|
|
$
|
1,935
|
|
United States
(a)
|
2004-2014
|
Canada
|
2010-2014
|
Equatorial Guinea
|
2007-2014
|
Libya
|
2012-2014
|
United Kingdom
|
2008-2014
|
(a)
|
Includes federal and state jurisdictions.
|
(In millions)
|
2015
|
|
2014
|
|
2013
|
||||||
Beginning balance
|
$
|
80
|
|
|
$
|
146
|
|
|
$
|
98
|
|
Additions for tax positions related to the current year
|
—
|
|
|
—
|
|
|
14
|
|
|||
Additions for tax positions of prior years
|
1
|
|
|
11
|
|
|
66
|
|
|||
Reductions for tax positions of prior years
|
—
|
|
|
(68
|
)
|
|
(25
|
)
|
|||
Settlements
|
(7
|
)
|
|
(9
|
)
|
|
(5
|
)
|
|||
Statute of limitations
|
(9
|
)
|
|
—
|
|
|
(2
|
)
|
|||
Ending balance
|
$
|
65
|
|
|
$
|
80
|
|
|
$
|
146
|
|
|
December 31,
|
||||||
(In millions)
|
2015
|
|
2014
|
||||
Liquid hydrocarbons, natural gas and bitumen
|
$
|
35
|
|
|
$
|
58
|
|
Supplies and other items
|
278
|
|
|
299
|
|
||
Inventories at cost
|
$
|
313
|
|
|
$
|
357
|
|
•
|
EGHoldings, in which we have a
60%
noncontrolling interest. EGHoldings is engaged in LNG production activity.
|
•
|
AMPCO, in which we have a
45%
interest. AMPCO is engaged in methanol production activity.
|
|
Ownership as of
|
|
December 31,
|
||||||
(In millions)
|
December 31, 2015
|
|
2015
|
|
2014
|
||||
EGHoldings
|
60%
|
|
$
|
603
|
|
|
$
|
693
|
|
Alba Plant LLC
|
52%
|
|
230
|
|
|
225
|
|
||
AMPCO
|
45%
|
|
169
|
|
|
194
|
|
||
Other investments
|
|
|
1
|
|
|
1
|
|
||
Total
|
|
|
$
|
1,003
|
|
|
$
|
1,113
|
|
(In millions)
|
2015
|
|
2014
|
|
2013
|
||||||
Income data – year:
|
|
|
|
|
|
||||||
Revenues and other income
|
$
|
769
|
|
|
$
|
1,349
|
|
|
$
|
1,444
|
|
Income from operations
|
313
|
|
|
826
|
|
|
849
|
|
|||
Net income
|
280
|
|
|
728
|
|
|
727
|
|
|||
Balance sheet data – December 31:
|
|
|
|
|
|
||||||
Current assets
|
$
|
467
|
|
|
$
|
639
|
|
|
|
||
Noncurrent assets
|
1,317
|
|
|
1,451
|
|
|
|
||||
Current liabilities
|
211
|
|
|
371
|
|
|
|
||||
Noncurrent liabilities
|
41
|
|
|
39
|
|
|
|
|
December 31,
|
||||||
(In millions)
|
2015
|
|
2014
|
||||
North America E&P
|
$
|
15,226
|
|
|
$
|
16,717
|
|
International E&P
|
2,533
|
|
|
2,741
|
|
||
Oil Sands Mining
|
9,197
|
|
|
9,455
|
|
||
Corporate
|
105
|
|
|
127
|
|
||
Net property, plant and equipment
|
$
|
27,061
|
|
|
$
|
29,040
|
|
|
December 31,
|
||||||||||
(In millions)
|
2015
|
|
2014
|
|
2013
|
||||||
Amounts capitalized less than one year after completion of drilling
|
$
|
352
|
|
|
$
|
484
|
|
|
$
|
512
|
|
Amounts capitalized greater than one year after completion of drilling
|
85
|
|
|
126
|
|
|
281
|
|
|||
Total deferred exploratory well costs
|
$
|
437
|
|
|
$
|
610
|
|
|
$
|
793
|
|
Number of projects with costs capitalized greater than one year after
|
|
|
|
|
|
||||||
completion of drilling
|
2
|
|
|
3
|
|
|
7
|
|
|||
|
|
||||||||||
(In millions)
|
2015
|
|
2014
|
|
2013
|
||||||
Beginning balance
|
$
|
610
|
|
|
$
|
793
|
|
|
$
|
617
|
|
Additions
|
610
|
|
|
647
|
|
|
624
|
|
|||
Charges to expense
|
(148
|
)
|
|
(45
|
)
|
|
(25
|
)
|
|||
Transfers to development
|
(635
|
)
|
|
(579
|
)
|
|
(414
|
)
|
|||
Dispositions
(a)
|
—
|
|
|
(206
|
)
|
|
(9
|
)
|
|||
Ending balance
|
$
|
437
|
|
|
$
|
610
|
|
|
$
|
793
|
|
(a)
|
Includes sale of Angola assets and Norway business in 2014.
|
|
Year Ended December 31,
|
||||||||||
(in millions)
|
2015
|
|
2014
|
|
2013
|
||||||
Total impairments
|
$
|
752
|
|
|
$
|
132
|
|
|
$
|
96
|
|
|
Year Ended December 31,
|
||||||||||
(In millions)
|
2015
|
|
2014
|
|
2013
|
||||||
Exploration Expenses
|
|
|
|
|
|
||||||
Unproved property impairments
|
$
|
964
|
|
|
$
|
306
|
|
|
$
|
572
|
|
Dry well costs
|
250
|
|
|
317
|
|
|
148
|
|
|||
Geological and geophysical
|
31
|
|
|
85
|
|
|
80
|
|
|||
Other
|
73
|
|
|
85
|
|
|
91
|
|
|||
Total exploration expenses
|
$
|
1,318
|
|
|
$
|
793
|
|
|
$
|
891
|
|
(In millions)
|
N.A. E&P
|
|
Int'l E&P
|
|
OSM
|
|
Total
|
||||||||
2014
|
|
|
|
|
|
|
|
||||||||
Beginning balance, gross
|
$
|
347
|
|
|
$
|
152
|
|
|
$
|
1,412
|
|
|
$
|
1,911
|
|
Less: accumulated impairments
|
—
|
|
|
—
|
|
|
(1,412
|
)
|
|
(1,412
|
)
|
||||
Beginning balance, net
|
347
|
|
|
152
|
|
|
—
|
|
|
499
|
|
||||
Dispositions
|
(3
|
)
|
|
(37
|
)
|
|
—
|
|
|
(40
|
)
|
||||
Ending balance, net
|
$
|
344
|
|
|
$
|
115
|
|
|
$
|
—
|
|
|
$
|
459
|
|
2015
|
|
|
|
|
|
|
|
||||||||
Beginning balance, gross
|
$
|
344
|
|
|
$
|
115
|
|
|
$
|
1,412
|
|
|
$
|
1,871
|
|
Less: accumulated impairments
|
—
|
|
|
—
|
|
|
(1,412
|
)
|
|
(1,412
|
)
|
||||
Beginning balance, net
|
344
|
|
|
115
|
|
|
—
|
|
|
459
|
|
||||
Dispositions
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
||||
Impairment
|
(340
|
)
|
|
—
|
|
|
—
|
|
|
(340
|
)
|
||||
Ending balance, net
|
$
|
—
|
|
|
$
|
115
|
|
|
$
|
—
|
|
|
$
|
115
|
|
|
December 31, 2015
|
||||||||||||||
(In millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Derivative instruments, assets
|
|
|
|
|
|
|
|
||||||||
Commodity
|
$
|
—
|
|
|
$
|
51
|
|
|
$
|
—
|
|
|
$
|
51
|
|
Interest rate
|
—
|
|
|
8
|
|
|
—
|
|
|
8
|
|
||||
Derivative instruments, assets
|
$
|
—
|
|
|
$
|
59
|
|
|
$
|
—
|
|
|
$
|
59
|
|
Derivative instruments, liabilities
|
|
|
|
|
|
|
|
||||||||
Commodity
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
Derivative instruments, liabilities
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
|
|
|
|
|
|
|
||||||||
|
December 31, 2014
|
||||||||||||||
(In millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Derivative instruments, assets
|
|
|
|
|
|
|
|
||||||||
Interest rate
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
8
|
|
Derivative instruments, assets
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
2015
|
|
2014
|
|
2013
|
||||||||||||||||||
(In millions)
|
Fair Value
|
|
Impairment
|
|
Fair Value
|
|
Impairment
|
|
Fair Value
|
|
Impairment
|
||||||||||||
Long-lived assets held for use
|
$
|
56
|
|
|
$
|
412
|
|
|
$
|
43
|
|
|
$
|
132
|
|
|
$
|
5
|
|
|
$
|
96
|
|
|
December 31,
|
||||||||||||||
|
2015
|
|
2014
|
||||||||||||
(In millions)
|
Fair
Value
|
|
Carrying
Amount
|
|
Fair
Value
|
|
Carrying
Amount
|
||||||||
Financial assets
|
|
|
|
|
|
|
|
||||||||
Other noncurrent assets
|
$
|
104
|
|
|
$
|
118
|
|
|
$
|
132
|
|
|
$
|
129
|
|
Total financial assets
|
$
|
104
|
|
|
$
|
118
|
|
|
$
|
132
|
|
|
$
|
129
|
|
Financial liabilities
|
|
|
|
|
|
|
|
||||||||
Other current liabilities
|
$
|
34
|
|
|
$
|
33
|
|
|
$
|
13
|
|
|
$
|
13
|
|
Long-term debt, including current portion
(a)
|
6,723
|
|
|
7,291
|
|
|
6,887
|
|
|
6,360
|
|
||||
Deferred credits and other liabilities
|
97
|
|
|
95
|
|
|
69
|
|
|
68
|
|
||||
Total financial liabilities
|
$
|
6,854
|
|
|
$
|
7,419
|
|
|
$
|
6,969
|
|
|
$
|
6,441
|
|
(a)
|
Excludes capital leases.
|
|
December 31, 2015
|
|
|
||||||||||
(In millions)
|
Asset
|
|
Liability
|
|
Net Asset
|
|
Balance Sheet Location
|
||||||
Fair Value Hedges
|
|
|
|
|
|
|
|
|
|||||
Interest rate
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
Other noncurrent assets
|
Total Designated Hedges
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Not Designated as Hedges
|
|
|
|
|
|
|
|
||||||
Commodity
|
$
|
51
|
|
|
$
|
1
|
|
|
$
|
50
|
|
|
Other current assets
|
Total Not Designated as Hedges
|
$
|
51
|
|
|
$
|
1
|
|
|
$
|
50
|
|
|
|
Total
|
$
|
59
|
|
|
$
|
1
|
|
|
$
|
58
|
|
|
|
|
December 31, 2014
|
|
|
||||||||||
(In millions)
|
Asset
|
|
Liability
|
|
Net Asset
|
|
Balance Sheet Location
|
||||||
Fair Value Hedges
|
|
|
|
|
|
|
|
||||||
Interest rate
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
Other noncurrent assets
|
Total Designated Hedges
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||
|
Aggregate Notional Amount
|
Weighted Average, LIBOR-Based,
|
|
Aggregate Notional Amount
|
Weighted Average, LIBOR-Based,
|
||||||
Maturity Dates
|
(in millions)
|
Floating Rate
|
|
(in millions)
|
Floating Rate
|
||||||
October 1, 2017
|
$
|
600
|
|
4.73
|
%
|
|
$
|
600
|
|
4.64
|
%
|
March 15, 2018
|
$
|
300
|
|
4.66
|
%
|
|
$
|
300
|
|
4.49
|
%
|
|
|
Gain (Loss)
|
||||||||||
|
|
Year Ended December 31,
|
||||||||||
(In millions)
|
Income Statement Location
|
2015
|
|
2014
|
|
2013
|
||||||
Derivative
|
|
|
|
|
|
|
||||||
Interest rate
|
Net interest and other
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(13
|
)
|
Foreign currency
|
Discontinued operations
|
—
|
|
|
(36
|
)
|
|
(44
|
)
|
|||
Hedged Item
|
|
|
|
|
|
|
|
|
||||
Long-term debt
|
Net interest and other
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
13
|
|
Accrued taxes
|
Discontinued operations
|
—
|
|
|
36
|
|
|
44
|
|
Financial Instrument
|
Weighted Average Price
|
Barrels per day
|
Remaining Term
|
Three-Way Collars
|
|
|
|
Ceiling
|
$60.03
|
10,000
|
January - March 2016
(a)
|
Floor
|
$50.20
|
|
|
Sold put
|
$41.60
|
|
|
|
|
|
|
Ceiling
|
$71.84
|
12,000
|
January- December 2016
|
Floor
|
$60.48
|
|
|
Sold put
|
$50.00
|
|
|
|
|
|
|
Ceiling
|
$73.13
|
2,000
|
January- June 2016
(b)
|
Floor
|
$65.00
|
|
|
Sold put
|
$50.00
|
|
|
Sold Call Options
|
$72.39
|
10,000
|
January- December 2016
(c)
|
(a)
|
Counterparties have the option, exercisable on March 31, 2016, to extend these collars through September of 2016 at the same volume and weighted average price as the underlying three-way collars.
|
(b)
|
Counterparty has the option, exercisable on June 30, 2016, to extend these collars through the remainder of 2016 at the same volume and weighted average price as the underlying three-way collars.
|
(c)
|
Call options settle monthly.
|
|
December 31,
|
||||||
(In millions)
|
2015
|
|
2014
|
||||
Senior unsecured notes:
|
|
|
|
||||
0.900% notes due 2015
|
$
|
—
|
|
|
$
|
1,000
|
|
6.000% notes due 2017
(a)
|
682
|
|
|
682
|
|
||
5.900% notes due 2018
(a)
|
854
|
|
|
854
|
|
||
7.500% notes due 2019
(a)
|
228
|
|
|
228
|
|
||
2.700% notes due 2020
(a)
|
600
|
|
|
—
|
|
||
2.800% notes due 2022
(a)
|
1,000
|
|
|
1,000
|
|
||
9.375% notes due 2022
(b)
|
32
|
|
|
32
|
|
||
Series A notes due 2022
(b)
|
3
|
|
|
3
|
|
||
8.500% notes due 2023
(b)
|
70
|
|
|
70
|
|
||
8.125% notes due 2023
(b)
|
131
|
|
|
131
|
|
||
3.850% notes due 2025
(a)
|
900
|
|
|
—
|
|
||
6.800% notes due 2032
(a)
|
550
|
|
|
550
|
|
||
6.600% notes due 2037
(a)
|
750
|
|
|
750
|
|
||
5.200% notes due 2045
(a)
|
500
|
|
|
—
|
|
||
Capital leases:
|
|
|
|
||||
Capital lease obligation of consolidated subsidiary due 2016 – 2049
|
9
|
|
|
9
|
|
||
Other obligations:
|
|
|
|
||||
4.550% promissory note, semi-annual payments due 2015
|
—
|
|
|
68
|
|
||
5.125% obligation relating to revenue bonds due 2037
|
1,000
|
|
|
1,000
|
|
||
Total
(b)
|
7,309
|
|
|
6,377
|
|
||
Unamortized discount
|
(10
|
)
|
|
(8
|
)
|
||
Fair value adjustments
(c)
|
17
|
|
|
22
|
|
||
Unamortized debt issuance cost
(d)
|
(39
|
)
|
|
(28
|
)
|
||
Amounts due within one year
|
(1
|
)
|
|
(1,068
|
)
|
||
Total long-term debt
|
$
|
7,276
|
|
|
$
|
5,295
|
|
(a)
|
These notes contain a make-whole provision allowing us to repay the debt at a premium to market price.
|
(b)
|
In the event of a change in control, as defined in the related agreements, debt obligations totaling
$236 million
at
December 31, 2015
may be declared immediately due and payable.
|
(c)
|
See Notes
15
and
16
for information on interest rate swaps.
|
(d)
|
After the adoption of the debt issuance costs standard, these costs are now reflected as a direct reduction from the associated debt liability in our consolidated balance sheets. See Note
2
for information.
|
(In millions)
|
|
||
2016
|
$
|
1
|
|
2017
|
682
|
|
|
2018
|
854
|
|
|
2019
|
228
|
|
|
2020
|
600
|
|
|
Thereafter
|
4,944
|
|
|
Total long-term debt, including current portion
|
$
|
7,309
|
|
|
For Year Ended December 31,
|
||||||
(In millions)
|
2015
|
|
2014
|
||||
Beginning balance
|
$
|
1,958
|
|
|
$
|
2,096
|
|
Incurred liabilities, including acquisitions
|
47
|
|
|
89
|
|
||
Settled liabilities, including dispositions
|
(289
|
)
|
|
(426
|
)
|
||
Accretion expense (included in depreciation, depletion and amortization)
|
105
|
|
|
104
|
|
||
Revisions of estimates
|
(132
|
)
|
|
95
|
|
||
Held for sale
|
(54
|
)
|
|
—
|
|
||
Ending balance
|
$
|
1,635
|
|
|
$
|
1,958
|
|
|
Year Ended December 31,
|
||||||||||
(In millions)
|
2015
|
|
2014
|
|
2013
|
||||||
Net cash used in operating activities:
|
|
|
|
|
|
||||||
Interest paid (net of amounts capitalized)
|
$
|
(325
|
)
|
|
$
|
(279
|
)
|
|
$
|
(289
|
)
|
Income taxes paid to taxing authorities
(a)
|
(171
|
)
|
|
(1,679
|
)
|
|
(3,904
|
)
|
|||
Net cash provided by (used in) financing activities:
|
|
|
|
|
|
||||||
Commercial paper, net:
|
|
|
|
|
|
||||||
Issuances
|
$
|
—
|
|
|
$
|
2,345
|
|
|
$
|
10,870
|
|
Repayments
|
—
|
|
|
(2,480
|
)
|
|
(10,935
|
)
|
|||
Commercial paper, net
|
$
|
—
|
|
|
$
|
(135
|
)
|
|
$
|
(65
|
)
|
Noncash investing activities, related to continuing operations:
|
|
|
|
|
|
||||||
Asset retirement cost increase (decrease)
|
$
|
(85
|
)
|
|
$
|
151
|
|
|
$
|
290
|
|
Increase in capital expenditure accrual
|
—
|
|
|
335
|
|
|
6
|
|
|||
Asset retirement obligations assumed by buyer
|
251
|
|
|
359
|
|
|
92
|
|
(a)
|
Income taxes paid to taxing authorities includes
$1,312 million
and
$2,270 million
in
2014
, and
2013
related to discontinued operations.
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||||||||||
(In millions)
|
U.S.
|
|
Int’l
|
|
U.S.
|
|
Int’l
|
|
U.S.
|
|
U.S.
|
||||||||||||
Accumulated benefit obligation
|
518
|
|
|
579
|
|
|
793
|
|
|
610
|
|
|
260
|
|
279
|
||||||||
Change in benefit obligations:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Beginning balance
|
$
|
894
|
|
|
$
|
651
|
|
|
$
|
933
|
|
|
$
|
649
|
|
|
$
|
279
|
|
|
$
|
279
|
|
Service cost
|
29
|
|
|
14
|
|
|
31
|
|
|
16
|
|
|
3
|
|
|
3
|
|
||||||
Interest cost
|
25
|
|
|
25
|
|
|
35
|
|
|
27
|
|
|
11
|
|
|
13
|
|
||||||
Plan amendment
(a)
|
(88
|
)
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(42
|
)
|
||||||
Actuarial loss (gain)
(b)
|
26
|
|
|
(29
|
)
|
|
174
|
|
|
46
|
|
|
(20
|
)
|
|
42
|
|
||||||
Foreign currency exchange rate changes
|
—
|
|
|
(35
|
)
|
|
—
|
|
|
(39
|
)
|
|
—
|
|
|
—
|
|
||||||
Divestiture
(c)
|
—
|
|
|
—
|
|
|
—
|
|
|
(29
|
)
|
|
—
|
|
|
—
|
|
||||||
Liability (gain)/loss due to curtailment
(d)
|
(18
|
)
|
|
(23
|
)
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
||||||
Settlements paid
|
(335
|
)
|
|
—
|
|
|
(271
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Benefits paid
|
(8
|
)
|
|
(25
|
)
|
|
(8
|
)
|
|
(19
|
)
|
|
(15
|
)
|
|
(16
|
)
|
||||||
Ending balance
|
$
|
525
|
|
|
$
|
579
|
|
|
$
|
894
|
|
|
$
|
651
|
|
|
$
|
260
|
|
|
$
|
279
|
|
Change in fair value of plan assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Beginning balance
|
$
|
574
|
|
|
$
|
622
|
|
|
$
|
625
|
|
|
$
|
597
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Actual return on plan assets
|
8
|
|
|
8
|
|
|
59
|
|
|
59
|
|
|
—
|
|
|
—
|
|
||||||
Employer contributions
|
115
|
|
|
36
|
|
|
169
|
|
|
37
|
|
|
15
|
|
|
16
|
|
||||||
Foreign currency exchange rate changes
|
—
|
|
|
(33
|
)
|
|
—
|
|
|
(39
|
)
|
|
—
|
|
|
—
|
|
||||||
Divestiture
(c)
|
—
|
|
|
—
|
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
|
—
|
|
||||||
Settlements paid
|
(335
|
)
|
|
—
|
|
|
(271
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Benefits paid
|
(8
|
)
|
|
(25
|
)
|
|
(8
|
)
|
|
(19
|
)
|
|
(15
|
)
|
|
(16
|
)
|
||||||
Ending balance
|
$
|
354
|
|
|
$
|
608
|
|
|
$
|
574
|
|
|
$
|
622
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Funded status of plans at December 31
|
$
|
(171
|
)
|
|
$
|
29
|
|
|
$
|
(320
|
)
|
|
$
|
(29
|
)
|
|
$
|
(260
|
)
|
|
$
|
(279
|
)
|
Amounts recognized in the consolidated balance sheets:
|
|||||||||||||||||||||||
Noncurrent assets
|
—
|
|
|
29
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Current liabilities
|
(8
|
)
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
|
(20
|
)
|
|
(19
|
)
|
||||||
Noncurrent liabilities
|
(163
|
)
|
|
—
|
|
|
(309
|
)
|
|
(29
|
)
|
|
(240
|
)
|
|
(260
|
)
|
||||||
Accrued benefit cost
|
$
|
(171
|
)
|
|
$
|
29
|
|
|
$
|
(320
|
)
|
|
$
|
(29
|
)
|
|
$
|
(260
|
)
|
|
$
|
(279
|
)
|
Pretax amounts in accumulated other comprehensive loss:
|
|||||||||||||||||||||||
Net loss (gain)
|
$
|
171
|
|
|
$
|
61
|
|
|
$
|
283
|
|
|
$
|
91
|
|
|
$
|
14
|
|
|
$
|
34
|
|
Prior service cost (credit)
|
(65
|
)
|
|
4
|
|
|
10
|
|
|
8
|
|
|
(28
|
)
|
|
(41
|
)
|
(a)
|
The plan amendment in 2015 was a freeze of the final average pay used in the legacy formula of the defined benefit pension plan. Activity in 2014 represents a change in plan design related to the health care benefits provided under the postretirement plan.
|
(b)
|
Activity in 2014 includes the increase in the U.S. pension and postretirement benefit obligations of
$13 million
and
$15 million
respectively, due to the adoption of the 2014 mortality table.
|
(c)
|
Related to the sale of our Norway business in the fourth quarter of 2014.
|
(d)
|
Related to workforce reductions, which reduced the future expected years of service for employees participating in the plans and the impact of discontinuing accruals for future benefits under the U.K. pension plan effective December 31, 2015.
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||||||||||||||||||||||||||
|
Year Ended December 31,
|
|
Year Ended December 31,
|
||||||||||||||||||||||||||||||||
|
2015
|
|
2014
|
|
2013
|
|
2015
|
|
2014
|
|
2013
|
||||||||||||||||||||||||
(In millions)
|
U.S.
|
|
Int’l
|
|
U.S.
|
|
Int’l
|
|
U.S.
|
|
Int’l
|
|
U.S.
|
|
U.S.
|
|
U.S.
|
||||||||||||||||||
Components of net periodic benefit cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Service cost
|
$
|
29
|
|
|
$
|
14
|
|
|
$
|
31
|
|
|
$
|
16
|
|
|
$
|
33
|
|
|
$
|
17
|
|
|
$
|
3
|
|
|
$
|
3
|
|
|
$
|
4
|
|
Interest cost
|
25
|
|
|
25
|
|
|
35
|
|
|
27
|
|
|
40
|
|
|
23
|
|
|
11
|
|
|
13
|
|
|
12
|
|
|||||||||
Expected return on plan assets
|
(30
|
)
|
|
(37
|
)
|
|
(34
|
)
|
|
(32
|
)
|
|
(43
|
)
|
|
(24
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
- prior service cost (credit)
|
(7
|
)
|
|
1
|
|
|
5
|
|
|
1
|
|
|
6
|
|
|
1
|
|
|
(4
|
)
|
|
(6
|
)
|
|
(6
|
)
|
|||||||||
- actuarial loss
|
22
|
|
|
2
|
|
|
29
|
|
|
1
|
|
|
43
|
|
|
4
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|||||||||
Net curtailment loss (gain)
(a)
|
(5
|
)
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|||||||||
Net settlement loss
(b)
|
119
|
|
|
—
|
|
|
99
|
|
|
—
|
|
|
45
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Net periodic benefit cost
(c)
|
$
|
153
|
|
|
$
|
9
|
|
|
$
|
165
|
|
|
$
|
13
|
|
|
$
|
124
|
|
|
$
|
21
|
|
|
$
|
4
|
|
|
$
|
10
|
|
|
$
|
10
|
|
Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss (pretax):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Actuarial loss (gain)
(d)
|
$
|
30
|
|
|
$
|
(25
|
)
|
|
$
|
149
|
|
|
$
|
33
|
|
|
$
|
(161
|
)
|
|
$
|
(15
|
)
|
|
$
|
(21
|
)
|
|
$
|
42
|
|
|
$
|
(31
|
)
|
Amortization of actuarial gain (loss)
|
(134
|
)
|
|
(2
|
)
|
|
(128
|
)
|
|
(1
|
)
|
|
(88
|
)
|
|
(4
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|||||||||
Prior service cost (credit)
|
(89
|
)
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(42
|
)
|
|
—
|
|
|||||||||
Amortization of prior service credit (cost)
|
7
|
|
|
(5
|
)
|
|
(5
|
)
|
|
(1
|
)
|
|
(6
|
)
|
|
(1
|
)
|
|
13
|
|
|
6
|
|
|
6
|
|
|||||||||
Total recognized in other comprehensive (income) loss
|
$
|
(186
|
)
|
|
$
|
(31
|
)
|
|
$
|
16
|
|
|
$
|
31
|
|
|
$
|
(255
|
)
|
|
$
|
(20
|
)
|
|
$
|
(9
|
)
|
|
$
|
6
|
|
|
$
|
(25
|
)
|
Total recognized in net periodic benefit cost and other comprehensive (income) loss
|
$
|
(33
|
)
|
|
$
|
(22
|
)
|
|
$
|
181
|
|
|
$
|
44
|
|
|
$
|
(131
|
)
|
|
$
|
1
|
|
|
$
|
(5
|
)
|
|
$
|
16
|
|
|
$
|
(15
|
)
|
(a)
|
Related to workforce reductions, which reduced the future expected years of service for employees participating in the plans and the impact of discontinuing accruals for future benefits under the U.K. pension plan effective December 31, 2015.
|
(b)
|
Settlement losses are recorded when lump sum payments from a plan in a period exceed the plan’s total service and interest costs for the period. Such settlements occurred in one or more of our U.S. pension plans in all periods presented.
|
(c)
|
Net periodic benefit cost reflects a calculated market-related value of plan assets which recognizes changes in fair value over three years.
|
(d)
|
Activity in 2014 includes the impact of the sale of our Norway business in the fourth quarter of 2014.
|
(a)
|
No future benefits will be incurred for the UK plan after December 31, 2015. Therefore, rate of compensation increase is no longer applicable to this plan.
|
|
December 31, 2015
|
||||||||||||||||||||||||||||||
(In millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||||||||||||||||
|
U.S.
|
|
Int’l
|
|
U.S.
|
|
Int’l
|
|
U.S.
|
|
Int’l
|
|
U.S.
|
|
Int’l
|
||||||||||||||||
Cash and cash equivalents
|
$
|
47
|
|
|
$
|
6
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
48
|
|
|
$
|
6
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common and preferred stock
|
115
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
115
|
|
|
—
|
|
||||||||
REIT and private equity
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
—
|
|
|
24
|
|
|
—
|
|
||||||||
Mutual and pooled funds
|
—
|
|
|
218
|
|
|
—
|
|
|
152
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
370
|
|
||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. treasury notes and ETFs
|
12
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
—
|
|
||||||||
Corporate and other bonds
|
—
|
|
|
—
|
|
|
105
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
105
|
|
|
—
|
|
||||||||
Commingled and pooled funds
|
—
|
|
|
—
|
|
|
23
|
|
|
232
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
232
|
|
||||||||
REIT and swaps
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
||||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|
—
|
|
|
25
|
|
|
—
|
|
||||||||
Total investments, at fair value
|
$
|
175
|
|
|
$
|
224
|
|
|
$
|
131
|
|
|
$
|
384
|
|
|
$
|
48
|
|
|
$
|
—
|
|
|
$
|
354
|
|
|
$
|
608
|
|
|
December 31, 2014
|
||||||||||||||||||||||||||||||
(In millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||||||||||||||||
|
U.S.
|
|
Int’l
|
|
U.S.
|
|
Int’l
|
|
U.S.
|
|
Int’l
|
|
U.S.
|
|
Int’l
|
||||||||||||||||
Cash and cash equivalents
|
$
|
26
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
26
|
|
|
$
|
1
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common and preferred stock
|
230
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
230
|
|
|
—
|
|
||||||||
REIT and private equity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|
—
|
|
|
25
|
|
|
—
|
|
||||||||
Mutual and pooled funds
|
—
|
|
|
221
|
|
|
—
|
|
|
164
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
385
|
|
||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. treasury notes and ETFs
|
33
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
33
|
|
|
—
|
|
||||||||
Corporate and other bonds
|
—
|
|
|
—
|
|
|
190
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
190
|
|
|
—
|
|
||||||||
Commingled and pooled funds
|
—
|
|
|
—
|
|
|
40
|
|
|
236
|
|
|
—
|
|
|
—
|
|
|
40
|
|
|
236
|
|
||||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30
|
|
|
—
|
|
|
30
|
|
|
—
|
|
||||||||
Total investments, at fair value
|
$
|
289
|
|
|
$
|
222
|
|
|
$
|
230
|
|
|
$
|
400
|
|
|
$
|
55
|
|
|
$
|
—
|
|
|
$
|
574
|
|
|
$
|
622
|
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||
(In millions)
|
U.S.
|
|
Int’l
|
|
U.S.
|
||||||
2016
|
$
|
61
|
|
|
$
|
16
|
|
|
$
|
21
|
|
2017
|
61
|
|
|
17
|
|
|
21
|
|
|||
2018
|
59
|
|
|
20
|
|
|
20
|
|
|||
2019
|
55
|
|
|
21
|
|
|
20
|
|
|||
2020
|
53
|
|
|
22
|
|
|
20
|
|
|||
2021 through 2025
|
224
|
|
|
125
|
|
|
89
|
|
|
2015
|
|
2014
|
|
2013
|
|||
Exercise price per share
|
$29.06
|
|
$34.49
|
|
$33.54
|
|||
Expected annual dividend yield
|
2.9
|
%
|
|
2.3
|
%
|
|
2.1
|
%
|
Expected life in years
|
6.2
|
|
|
5.9
|
|
|
6.1
|
|
Expected volatility
|
32
|
%
|
|
38
|
%
|
|
38
|
%
|
Risk-free interest rate
|
1.7
|
%
|
|
1.8
|
%
|
|
1.6
|
%
|
Weighted average grant date fair value of stock option awards granted
|
$6.84
|
|
$10.50
|
|
$10.25
|
|
Number
|
|
Weighted Average
|
|
Weighted Average
Remaining
|
|
Average Intrinsic Value
|
|||
|
of Shares
|
|
Exercise Price
|
|
Contractual Term
|
|
(in millions)
|
|||
Outstanding at beginning of year
|
13,427,836
|
|
$29.68
|
|
|
|
|
|||
Granted
|
724,082
|
|
$29.06
|
|
|
|
|
|||
Exercised
|
(553,401)
|
|
$16.85
|
|
|
|
|
|||
Canceled
|
(933,098)
|
|
$32.99
|
|
|
|
|
|||
Outstanding at end of year
|
12,665,419
|
|
$29.97
|
|
4 years
|
|
$
|
—
|
|
|
Exercisable at end of year
|
10,654,799
|
|
|
$29.50
|
|
3 years
|
|
$
|
—
|
|
Expected to vest
|
1,996,175
|
|
|
$32.45
|
|
8 years
|
|
$
|
—
|
|
|
Awards
|
|
Weighted Average
Grant Date
Fair Value
|
|
Unvested at beginning of year
|
3,448,353
|
|
|
$34.04
|
Granted
|
2,994,558
|
|
|
$28.90
|
Vested & Exercised
|
(1,350,344
|
)
|
|
$33.40
|
Canceled
|
(1,075,223
|
)
|
|
$32.70
|
Unvested at end of year
|
4,017,344
|
|
|
$30.76
|
|
2015
|
|
2014
|
|
2013
|
|||
Valuation date stock price
|
$12.59
|
|
$12.59
|
|
$12.98
|
|||
Expected annual dividend yield
|
1.5
|
%
|
|
1.5
|
%
|
|
1.5
|
%
|
Expected volatility
|
37
|
%
|
|
46
|
%
|
|
62
|
%
|
Risk-free interest rate
|
1.1
|
%
|
|
0.7
|
%
|
|
0.1
|
%
|
Fair value of stock-based performance units outstanding
|
$7.08
|
|
$6.04
|
|
$0.18
|
|
Year Ended December 31,
|
|
|
|||||
(In millions)
|
2015
|
2014
|
|
Income Statement Line
|
||||
Postretirement and postemployment plans
|
|
|
|
|||||
Amortization of actuarial loss
|
$
|
(24
|
)
|
$
|
(30
|
)
|
|
General and administrative
|
Net settlement loss
|
(119
|
)
|
(99
|
)
|
|
General and administrative
|
||
Net curtailment gain
|
8
|
|
—
|
|
|
General and administrative
|
||
|
(135
|
)
|
(129
|
)
|
|
Income (loss) from operations
|
||
|
51
|
|
62
|
|
|
Provision for income taxes
|
||
Other insignificant items, net of tax
|
—
|
|
(1
|
)
|
|
|
||
Total reclassifications
|
$
|
(84
|
)
|
$
|
(68
|
)
|
|
Income (loss) from continuing operations
|
(In millions)
|
Capital
Lease
Obligations
|
|
Operating
Lease
Obligations
|
||||
2016
|
$
|
1
|
|
|
$
|
30
|
|
2017
|
1
|
|
|
26
|
|
||
2018
|
1
|
|
|
24
|
|
||
2019
|
1
|
|
|
24
|
|
||
2020
|
1
|
|
|
24
|
|
||
Later years
|
16
|
|
|
30
|
|
||
Sublease rentals
|
—
|
|
|
(1
|
)
|
||
Total minimum lease payments
|
$
|
21
|
|
|
$
|
157
|
|
Less imputed interest costs
|
(12
|
)
|
|
|
|||
Present value of net minimum lease payments
|
$
|
9
|
|
|
|
|
2015
|
|
2014
|
||||||||||||||||||||||||||||
(In millions, except per share data)
|
1st Qtr.
|
|
2nd Qtr.
|
|
3rd Qtr.
|
|
4th Qtr.
|
|
1st Qtr.
|
|
2nd Qtr.
|
|
3rd Qtr.
|
|
4th Qtr.
|
||||||||||||||||
Revenues
|
$
|
1,484
|
|
|
$
|
1,490
|
|
|
$
|
1,384
|
|
|
$
|
1,164
|
|
|
$
|
2,690
|
|
|
$
|
2,888
|
|
|
$
|
2,870
|
|
|
$
|
2,398
|
|
Income (loss) from continuing operations before income taxes
|
(420
|
)
|
|
(392
|
)
|
|
(1,145
|
)
|
|
(1,001
|
)
|
|
598
|
|
|
511
|
|
|
453
|
|
|
(201
|
)
|
||||||||
Income (loss) from continuing operations
|
(276
|
)
|
|
(386
|
)
|
|
(749
|
)
|
|
(793
|
)
|
|
398
|
|
|
360
|
|
|
304
|
|
|
(93
|
)
|
||||||||
Discontinued operations
(a)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
751
|
|
|
180
|
|
|
127
|
|
|
1,019
|
|
||||||||
Net income (loss)
|
$
|
(276
|
)
|
|
$
|
(386
|
)
|
|
$
|
(749
|
)
|
|
$
|
(793
|
)
|
|
$
|
1,149
|
|
|
$
|
540
|
|
|
$
|
431
|
|
|
$
|
926
|
|
Income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Continuing operations
|
$(0.41)
|
|
$(0.57)
|
|
$(1.11)
|
|
$(1.17)
|
|
$0.58
|
|
$0.53
|
|
$0.45
|
|
$(0.14)
|
||||||||||||||||
Discontinued operations
(a)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$1.08
|
|
$0.27
|
|
$0.19
|
|
$1.51
|
||||||||||||
Net income (loss)
|
($0.41)
|
|
($0.57)
|
|
($1.11)
|
|
($1.17)
|
|
$1.66
|
|
$0.80
|
|
$0.64
|
|
$1.37
|
||||||||||||||||
Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Continuing operations
|
($0.41)
|
|
($0.57)
|
|
($1.11)
|
|
($1.17)
|
|
$0.57
|
|
$0.53
|
|
$0.45
|
|
($0.14)
|
||||||||||||||||
Discontinued operations
(a)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$1.08
|
|
$0.27
|
|
$0.19
|
|
$1.51
|
||||||||||||
Net income (loss)
|
($0.41)
|
|
($0.57)
|
|
($1.11)
|
|
($1.17)
|
|
$1.65
|
|
$0.80
|
|
$0.64
|
|
$1.37
|
||||||||||||||||
Dividends paid per share
|
$0.21
|
|
$0.21
|
|
$0.21
|
|
$0.05
|
|
$0.19
|
|
$0.19
|
|
$0.21
|
|
$0.21
|
|
SEC Pricing 2015
|
2-month Average 2016
|
||||
WTI Crude oil
|
$
|
50.28
|
|
$
|
34.19
|
|
Henry Hub natural gas
|
$
|
2.59
|
|
$
|
2.28
|
|
Brent crude oil
|
$
|
54.25
|
|
$
|
34.86
|
|
Natural gas liquids
|
$
|
17.32
|
|
$
|
12.87
|
|
(mmbbl)
|
U.S.
|
|
Canada
|
|
E.G.
(a)
|
|
Other
Africa
|
|
Other Int'l
|
|
Cont Ops
|
|
Disc Ops
|
|
Total
|
||||||||
Crude oil and condensate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Proved developed and undeveloped reserves:
|
|||||||||||||||||||||||
Beginning of year - 2013
|
387
|
|
|
—
|
|
|
72
|
|
|
209
|
|
|
24
|
|
|
692
|
|
|
82
|
|
|
774
|
|
Revisions of previous estimates
|
33
|
|
|
—
|
|
|
(1
|
)
|
|
12
|
|
|
6
|
|
|
50
|
|
|
19
|
|
|
69
|
|
Improved recovery
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
11
|
|
Purchases of reserves in place
|
12
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
12
|
|
Extensions, discoveries and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
other additions
|
112
|
|
|
—
|
|
|
1
|
|
|
3
|
|
|
—
|
|
|
116
|
|
|
8
|
|
|
124
|
|
Production
|
(46
|
)
|
|
—
|
|
|
(8
|
)
|
|
(9
|
)
|
|
(5
|
)
|
|
(68
|
)
|
|
(29
|
)
|
|
(97
|
)
|
Sales of reserves in place
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
End of year - 2013
|
497
|
|
|
—
|
|
|
64
|
|
|
215
|
|
|
25
|
|
|
801
|
|
|
91
|
|
|
892
|
|
Revisions of previous estimates
|
36
|
|
|
—
|
|
|
(1
|
)
|
|
(4
|
)
|
|
1
|
|
|
32
|
|
|
10
|
|
|
42
|
|
Improved recovery
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
Purchases of reserves in place
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
Extensions, discoveries and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
other additions
|
153
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
7
|
|
|
161
|
|
|
3
|
|
|
164
|
|
Production
|
(57
|
)
|
|
—
|
|
|
(7
|
)
|
|
(3
|
)
|
|
(4
|
)
|
|
(71
|
)
|
|
(17
|
)
|
|
(88
|
)
|
Sales of reserves in place
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(87
|
)
|
|
(90
|
)
|
End of year - 2014
|
634
|
|
|
—
|
|
|
57
|
|
|
208
|
|
|
29
|
|
|
928
|
|
|
—
|
|
|
928
|
|
Revisions of previous estimates
|
(109
|
)
|
|
—
|
|
|
2
|
|
|
(7
|
)
|
|
(2
|
)
|
|
(116
|
)
|
|
—
|
|
|
(116
|
)
|
Improved recovery
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
Extensions, discoveries and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
other additions
|
122
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
122
|
|
|
—
|
|
|
122
|
|
Production
|
(62
|
)
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(5
|
)
|
|
(74
|
)
|
|
—
|
|
|
(74
|
)
|
Sales of reserves in place
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
(6
|
)
|
End of year - 2015
|
580
|
|
|
—
|
|
|
52
|
|
|
201
|
|
|
22
|
|
|
855
|
|
|
—
|
|
|
855
|
|
Proved developed reserves:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Beginning of year - 2013
|
169
|
|
|
—
|
|
|
45
|
|
|
168
|
|
|
20
|
|
|
402
|
|
|
63
|
|
|
465
|
|
End of year - 2013
|
241
|
|
|
—
|
|
|
37
|
|
|
176
|
|
|
19
|
|
|
473
|
|
|
77
|
|
|
550
|
|
End of year - 2014
|
294
|
|
|
—
|
|
|
30
|
|
|
175
|
|
|
19
|
|
|
518
|
|
|
—
|
|
|
518
|
|
End of year - 2015
|
327
|
|
|
—
|
|
|
25
|
|
|
173
|
|
|
16
|
|
|
541
|
|
|
—
|
|
|
541
|
|
Proved undeveloped reserves:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Beginning of year - 2013
|
218
|
|
|
—
|
|
|
27
|
|
|
41
|
|
|
4
|
|
|
290
|
|
|
19
|
|
|
309
|
|
End of year - 2013
|
256
|
|
|
—
|
|
|
27
|
|
|
39
|
|
|
6
|
|
|
328
|
|
|
14
|
|
|
342
|
|
End of year - 2014
|
340
|
|
|
—
|
|
|
27
|
|
|
33
|
|
|
10
|
|
|
410
|
|
|
—
|
|
|
410
|
|
End of year - 2015
|
253
|
|
|
—
|
|
|
27
|
|
|
28
|
|
|
6
|
|
|
314
|
|
|
—
|
|
|
314
|
|
(mmbbl)
|
U.S.
|
|
Canada
|
|
E.G.
(a)
|
|
Other
Africa
|
|
Other Int'l
|
|
Cont Ops
|
|
Disc Ops
|
|
Total
|
||||||||
Natural gas liquids
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Proved developed and undeveloped reserves:
|
|||||||||||||||||||||||
Beginning of year - 2013
|
88
|
|
|
—
|
|
|
38
|
|
|
—
|
|
|
1
|
|
|
127
|
|
|
—
|
|
|
127
|
|
Revisions of previous estimates
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
13
|
|
Purchases of reserves in place
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
Extensions, discoveries and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
other additions
|
25
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|
—
|
|
|
25
|
|
Production
|
(9
|
)
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
|
(13
|
)
|
End of year - 2013
|
119
|
|
|
—
|
|
|
34
|
|
|
—
|
|
|
1
|
|
|
154
|
|
|
—
|
|
|
154
|
|
Revisions of previous estimates
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
Improved recovery
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
Extensions, discoveries and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
other additions
|
48
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
48
|
|
|
—
|
|
|
48
|
|
Production
|
(11
|
)
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
(15
|
)
|
|
—
|
|
|
(15
|
)
|
End of year - 2014
|
161
|
|
|
—
|
|
|
30
|
|
|
—
|
|
|
1
|
|
|
192
|
|
|
—
|
|
|
192
|
|
Revisions of previous estimates
|
(31
|
)
|
|
—
|
|
|
2
|
|
|
—
|
|
|
(1
|
)
|
|
(30
|
)
|
|
—
|
|
|
(30
|
)
|
Extensions, discoveries and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
other additions
|
57
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
57
|
|
|
—
|
|
|
57
|
|
Production
|
(14
|
)
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
(18
|
)
|
|
—
|
|
|
(18
|
)
|
Sales of reserves in place
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
End of year - 2015
|
172
|
|
|
—
|
|
|
28
|
|
|
—
|
|
|
—
|
|
|
200
|
|
|
—
|
|
|
200
|
|
Proved developed reserves:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Beginning of year - 2013
|
29
|
|
|
—
|
|
|
23
|
|
|
—
|
|
|
1
|
|
|
53
|
|
|
—
|
|
|
53
|
|
End of year - 2013
|
51
|
|
|
—
|
|
|
18
|
|
|
—
|
|
|
1
|
|
|
70
|
|
|
—
|
|
|
70
|
|
End of year - 2014
|
68
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
83
|
|
|
—
|
|
|
83
|
|
End of year - 2015
|
92
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
104
|
|
|
—
|
|
|
104
|
|
Proved undeveloped reserves:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Beginning of year - 2013
|
59
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
74
|
|
|
—
|
|
|
74
|
|
End of year - 2013
|
68
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
84
|
|
|
—
|
|
|
84
|
|
End of year - 2014
|
93
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
1
|
|
|
109
|
|
|
—
|
|
|
109
|
|
End of year - 2015
|
80
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
96
|
|
|
—
|
|
|
96
|
|
(bcf)
|
U.S.
|
|
Canada
|
|
E.G.
(a)
|
|
Other
Africa
|
|
Other Int'l
|
|
Cont Ops
|
|
Disc Ops
|
|
Total
|
||||||||
Natural gas
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Proved developed and undeveloped reserves:
|
|||||||||||||||||||||||
Beginning of year - 2013
|
1,043
|
|
|
—
|
|
|
1,424
|
|
|
209
|
|
|
14
|
|
|
2,690
|
|
|
89
|
|
|
2,779
|
|
Revisions of previous estimates
|
(4
|
)
|
|
—
|
|
|
45
|
|
|
4
|
|
|
23
|
|
|
68
|
|
|
20
|
|
|
88
|
|
Purchases of reserves in place
|
13
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
16
|
|
Extensions, discoveries and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
other additions
|
163
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
172
|
|
|
3
|
|
|
175
|
|
Production
(b)
|
(114
|
)
|
|
—
|
|
|
(161
|
)
|
|
(8
|
)
|
|
(9
|
)
|
|
(292
|
)
|
|
(19
|
)
|
|
(311
|
)
|
Sales of reserves in place
|
(76
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(76
|
)
|
|
—
|
|
|
(76
|
)
|
End of year - 2013
|
1,025
|
|
|
—
|
|
|
1,320
|
|
|
205
|
|
|
28
|
|
|
2,578
|
|
|
93
|
|
|
2,671
|
|
Revisions of previous estimates
|
(24
|
)
|
|
—
|
|
|
1
|
|
|
5
|
|
|
2
|
|
|
(16
|
)
|
|
7
|
|
|
(9
|
)
|
Purchases of reserves in place
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
Extensions, discoveries and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
other additions
|
290
|
|
|
—
|
|
|
44
|
|
|
—
|
|
|
—
|
|
|
334
|
|
|
2
|
|
|
336
|
|
Production
(b)
|
(113
|
)
|
|
—
|
|
|
(160
|
)
|
|
(1
|
)
|
|
(8
|
)
|
|
(282
|
)
|
|
(13
|
)
|
|
(295
|
)
|
Sales of reserves in place
|
(39
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(39
|
)
|
|
(89
|
)
|
|
(128
|
)
|
End of year - 2014
|
1,144
|
|
|
—
|
|
|
1,205
|
|
|
209
|
|
|
22
|
|
|
2,580
|
|
|
—
|
|
|
2,580
|
|
Revisions of previous estimates
|
(191
|
)
|
|
—
|
|
|
35
|
|
|
(3
|
)
|
|
1
|
|
|
(158
|
)
|
|
—
|
|
|
(158
|
)
|
Purchases of reserves in place
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
Extensions, discoveries and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
other additions
|
394
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
394
|
|
|
—
|
|
|
394
|
|
Production
(b)
|
(128
|
)
|
|
—
|
|
|
(150
|
)
|
|
—
|
|
|
(8
|
)
|
|
(286
|
)
|
|
—
|
|
|
(286
|
)
|
Sales of reserves in place
|
(69
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(69
|
)
|
|
—
|
|
|
(69
|
)
|
End of year - 2015
|
1,151
|
|
|
—
|
|
|
1,090
|
|
|
206
|
|
|
15
|
|
|
2,462
|
|
|
—
|
|
|
2,462
|
|
Proved developed reserves:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Beginning of year - 2013
|
546
|
|
|
—
|
|
|
980
|
|
|
99
|
|
|
8
|
|
|
1,633
|
|
|
20
|
|
|
1,653
|
|
End of year - 2013
|
540
|
|
|
—
|
|
|
823
|
|
|
95
|
|
|
21
|
|
|
1,479
|
|
|
20
|
|
|
1,499
|
|
End of year - 2014
|
575
|
|
|
—
|
|
|
664
|
|
|
94
|
|
|
17
|
|
|
1,350
|
|
|
—
|
|
|
1,350
|
|
End of year - 2015
|
640
|
|
|
—
|
|
|
552
|
|
|
94
|
|
|
11
|
|
|
1,297
|
|
|
—
|
|
|
1,297
|
|
Proved undeveloped reserves:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Beginning of year - 2013
|
497
|
|
|
—
|
|
|
444
|
|
|
110
|
|
|
6
|
|
|
1,057
|
|
|
69
|
|
|
1,126
|
|
End of year - 2013
|
485
|
|
|
—
|
|
|
497
|
|
|
110
|
|
|
7
|
|
|
1,099
|
|
|
73
|
|
|
1,172
|
|
End of year - 2014
|
569
|
|
|
—
|
|
|
541
|
|
|
115
|
|
|
5
|
|
|
1,230
|
|
|
—
|
|
|
1,230
|
|
End of year - 2015
|
511
|
|
|
—
|
|
|
538
|
|
|
112
|
|
|
4
|
|
|
1,165
|
|
|
—
|
|
|
1,165
|
|
(mmbbl)
|
U.S.
|
|
Canada
|
|
E.G.
(a)
|
|
Other
Africa
|
|
Other Int'l
|
|
Cont Ops
|
|
Disc Ops
|
|
Total
|
||||||||
Synthetic crude oil
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Proved developed and undeveloped reserves:
|
|||||||||||||||||||||||
Beginning of year - 2013
|
—
|
|
|
653
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
653
|
|
|
—
|
|
|
653
|
|
Revisions of previous estimates
|
—
|
|
|
36
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
36
|
|
|
—
|
|
|
36
|
|
Extensions, discoveries and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
other additions
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
Production
|
—
|
|
|
(15
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15
|
)
|
|
—
|
|
|
(15
|
)
|
End of year - 2013
|
—
|
|
|
680
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
680
|
|
|
—
|
|
|
680
|
|
Revisions of previous estimates
|
—
|
|
|
(55
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(55
|
)
|
|
—
|
|
|
(55
|
)
|
Purchases of reserves in place
|
—
|
|
|
38
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38
|
|
|
—
|
|
|
38
|
|
Production
|
—
|
|
|
(15
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15
|
)
|
|
—
|
|
|
(15
|
)
|
End of year - 2014
|
—
|
|
|
648
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
648
|
|
|
—
|
|
|
648
|
|
Revisions of previous estimates
|
—
|
|
|
67
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
67
|
|
|
—
|
|
|
67
|
|
Production
|
—
|
|
|
(17
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(17
|
)
|
|
—
|
|
|
(17
|
)
|
End of year - 2015
|
—
|
|
|
698
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
698
|
|
|
—
|
|
|
698
|
|
Proved developed reserves:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Beginning of year - 2013
|
—
|
|
|
653
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
653
|
|
|
—
|
|
|
653
|
|
End of year - 2013
|
—
|
|
|
674
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
674
|
|
|
—
|
|
|
674
|
|
End of year - 2014
|
—
|
|
|
644
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
644
|
|
|
—
|
|
|
644
|
|
End of year - 2015
|
—
|
|
|
698
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
698
|
|
|
—
|
|
|
698
|
|
Proved undeveloped reserves:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
End of year - 2013
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
End of year - 2014
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
(mmboe)
|
U.S.
|
|
Canada
|
|
E.G.
(a)
|
|
Other
Africa
|
|
Other Int'l
|
|
Cont Ops
|
|
Disc Ops
|
|
Total
|
||||||||
Total Proved Reserves
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Proved developed and undeveloped reserves:
|
|||||||||||||||||||||||
Beginning of year - 2013
|
649
|
|
|
653
|
|
|
347
|
|
|
244
|
|
|
27
|
|
|
1,920
|
|
|
97
|
|
|
2,017
|
|
Revisions of previous estimates
|
45
|
|
|
36
|
|
|
7
|
|
|
12
|
|
|
11
|
|
|
111
|
|
|
21
|
|
|
132
|
|
Improved recovery
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
11
|
|
Purchases of reserves in place
|
16
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
17
|
|
Extensions, discoveries and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
other additions
|
164
|
|
|
6
|
|
|
2
|
|
|
3
|
|
|
—
|
|
|
175
|
|
|
9
|
|
|
184
|
|
Production
(b)
|
(74
|
)
|
|
(15
|
)
|
|
(39
|
)
|
|
(10
|
)
|
|
(7
|
)
|
|
(145
|
)
|
|
(32
|
)
|
|
(177
|
)
|
Sales of reserves in place
|
(13
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
(13
|
)
|
|
—
|
|
|
(13
|
)
|
|
End of year - 2013
|
787
|
|
|
680
|
|
|
318
|
|
|
249
|
|
|
31
|
|
|
2,065
|
|
|
106
|
|
|
2,171
|
|
Revisions of previous estimates
|
36
|
|
|
(55
|
)
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(22
|
)
|
|
11
|
|
|
(11
|
)
|
Improved recovery
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
Purchases of reserves in place
|
8
|
|
|
38
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
46
|
|
|
—
|
|
|
46
|
|
Extensions, discoveries and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|||||
other additions
|
250
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
7
|
|
|
265
|
|
|
3
|
|
|
268
|
|
Production
(b)
|
(87
|
)
|
|
(15
|
)
|
|
(38
|
)
|
|
(3
|
)
|
|
(5
|
)
|
|
(148
|
)
|
|
(19
|
)
|
|
(167
|
)
|
Sales of reserves in place
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
(101
|
)
|
|
(111
|
)
|
End of year - 2014
|
986
|
|
|
648
|
|
|
288
|
|
|
243
|
|
|
33
|
|
|
2,198
|
|
|
—
|
|
|
2,198
|
|
Revisions of previous estimates
|
(173
|
)
|
|
67
|
|
|
8
|
|
|
(8
|
)
|
|
(2
|
)
|
|
(108
|
)
|
|
—
|
|
|
(108
|
)
|
Improved recovery
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
Purchases of reserves in place
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
Extensions, discoveries and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
other additions
|
245
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
246
|
|
|
—
|
|
|
246
|
|
Production
(b)
|
(98
|
)
|
|
(17
|
)
|
|
(36
|
)
|
|
—
|
|
|
(6
|
)
|
|
(157
|
)
|
|
—
|
|
|
(157
|
)
|
Sales of reserves in place
|
(18
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(18
|
)
|
|
—
|
|
|
(18
|
)
|
End of year - 2015
|
944
|
|
|
698
|
|
|
261
|
|
|
235
|
|
|
25
|
|
|
2,163
|
|
|
—
|
|
|
2,163
|
|
Proved developed reserves:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Beginning of year - 2013
|
289
|
|
|
653
|
|
|
231
|
|
|
185
|
|
|
22
|
|
|
1,380
|
|
|
66
|
|
|
1,446
|
|
End of year - 2013
|
382
|
|
|
674
|
|
|
193
|
|
|
192
|
|
|
23
|
|
|
1,464
|
|
|
80
|
|
|
1,544
|
|
End of year - 2014
|
458
|
|
|
644
|
|
|
155
|
|
|
191
|
|
|
22
|
|
|
1,470
|
|
|
—
|
|
|
1,470
|
|
End of year - 2015
|
526
|
|
|
698
|
|
|
129
|
|
|
189
|
|
|
18
|
|
|
1,560
|
|
|
—
|
|
|
1,560
|
|
Proved undeveloped reserves:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Beginning of year - 2013
|
360
|
|
|
—
|
|
|
116
|
|
|
59
|
|
|
5
|
|
|
540
|
|
|
31
|
|
|
571
|
|
End of year - 2013
|
405
|
|
|
6
|
|
|
125
|
|
|
57
|
|
|
8
|
|
|
601
|
|
|
26
|
|
|
627
|
|
End of year - 2014
|
528
|
|
|
4
|
|
|
133
|
|
|
52
|
|
|
11
|
|
|
728
|
|
|
—
|
|
|
728
|
|
End of year - 2015
|
418
|
|
|
—
|
|
|
132
|
|
|
46
|
|
|
7
|
|
|
603
|
|
|
—
|
|
|
603
|
|
(a)
|
Consists of estimated reserves from properties governed by production sharing contracts.
|
(b)
|
Excludes the resale of purchased natural gas used in reservoir management.
|
|
Year Ended December 31,
|
||||||||||||||||||||||
(In millions)
|
U.S.
|
|
Canada
|
|
E.G.
|
|
Other
Africa
|
|
Other Int'l
|
|
Total
|
||||||||||||
2015 Capitalized Costs:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Proved properties
|
$
|
27,816
|
|
|
$
|
9,538
|
|
|
$
|
1,955
|
|
|
$
|
828
|
|
|
$
|
5,741
|
|
|
$
|
45,878
|
|
Unproved properties
|
1,625
|
|
|
1,389
|
|
|
86
|
|
|
465
|
|
|
242
|
|
|
3,807
|
|
||||||
Total
|
29,441
|
|
|
10,927
|
|
|
2,041
|
|
|
1,293
|
|
|
5,983
|
|
|
49,685
|
|
||||||
Accumulated depreciation,
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
depletion and amortization:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Proved properties
|
13,656
|
|
|
1,420
|
|
|
1,105
|
|
|
263
|
|
|
5,195
|
|
|
21,639
|
|
||||||
Unproved properties
(a)
|
675
|
|
|
310
|
|
|
—
|
|
|
107
|
|
|
114
|
|
|
1,206
|
|
||||||
Total
|
14,331
|
|
|
1,730
|
|
|
1,105
|
|
|
370
|
|
|
5,309
|
|
|
22,845
|
|
||||||
Net capitalized costs
|
$
|
15,110
|
|
|
$
|
9,197
|
|
|
$
|
936
|
|
|
$
|
923
|
|
|
$
|
674
|
|
|
$
|
26,840
|
|
2014 Capitalized Costs:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Proved properties
|
$
|
28,334
|
|
|
$
|
9,481
|
|
|
$
|
1,804
|
|
|
$
|
823
|
|
|
$
|
5,707
|
|
|
$
|
46,149
|
|
Unproved properties
|
1,861
|
|
|
1,505
|
|
|
64
|
|
|
460
|
|
|
237
|
|
|
4,127
|
|
||||||
Total
|
30,195
|
|
|
10,986
|
|
|
1,868
|
|
|
1,283
|
|
|
5,944
|
|
|
50,276
|
|
||||||
Accumulated depreciation,
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
depletion and amortization:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Proved properties
|
13,746
|
|
|
1,183
|
|
|
1,010
|
|
|
260
|
|
|
5,075
|
|
|
21,274
|
|
||||||
Unproved properties
|
189
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
199
|
|
||||||
Total
|
13,935
|
|
|
1,184
|
|
|
1,010
|
|
|
260
|
|
|
5,084
|
|
|
21,473
|
|
||||||
Net capitalized costs
|
$
|
16,260
|
|
|
$
|
9,802
|
|
|
$
|
858
|
|
|
$
|
1,023
|
|
|
$
|
860
|
|
|
$
|
28,803
|
|
(In millions)
|
U.S.
|
|
Canada
|
|
E.G.
|
|
Other
Africa
|
|
Other Int'l
|
|
Cont Ops
|
|
Disc Ops
|
|
Total
|
||||||||||||||||
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Property acquisition:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Proved
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
4
|
|
Unproved
|
61
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
62
|
|
|
—
|
|
|
62
|
|
||||||||
Exploration
|
959
|
|
|
1
|
|
|
60
|
|
|
38
|
|
|
50
|
|
|
1,108
|
|
|
—
|
|
|
1,108
|
|
||||||||
Development
|
1,477
|
|
|
—
|
|
|
150
|
|
|
13
|
|
|
31
|
|
(c)
|
1,671
|
|
|
—
|
|
|
1,671
|
|
||||||||
Total
|
$
|
2,501
|
|
|
$
|
1
|
|
(b)
|
$
|
210
|
|
|
$
|
52
|
|
|
$
|
81
|
|
|
$
|
2,845
|
|
|
$
|
—
|
|
|
$
|
2,845
|
|
December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Property acquisition:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Proved
|
$
|
26
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
26
|
|
|
$
|
—
|
|
|
$
|
26
|
|
Unproved
|
202
|
|
|
3
|
|
|
—
|
|
|
53
|
|
|
2
|
|
|
260
|
|
|
1
|
|
|
261
|
|
||||||||
Exploration
|
1,140
|
|
|
4
|
|
|
35
|
|
|
119
|
|
|
119
|
|
|
1,417
|
|
|
6
|
|
|
1,423
|
|
||||||||
Development
|
3,532
|
|
|
196
|
|
|
139
|
|
|
16
|
|
|
94
|
|
|
3,977
|
|
|
418
|
|
|
4,395
|
|
||||||||
Total
|
$
|
4,900
|
|
|
$
|
203
|
|
|
$
|
174
|
|
|
$
|
188
|
|
|
$
|
215
|
|
|
$
|
5,680
|
|
|
$
|
425
|
|
|
$
|
6,105
|
|
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Property acquisition:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Proved
|
$
|
51
|
|
|
$
|
30
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
90
|
|
|
$
|
—
|
|
|
$
|
90
|
|
Unproved
|
157
|
|
|
—
|
|
|
—
|
|
|
44
|
|
|
21
|
|
|
222
|
|
|
—
|
|
|
222
|
|
||||||||
Exploration
|
885
|
|
|
9
|
|
|
4
|
|
|
124
|
|
|
151
|
|
|
1,173
|
|
|
98
|
|
|
1,271
|
|
||||||||
Development
|
2,876
|
|
|
280
|
|
|
84
|
|
|
46
|
|
|
83
|
|
|
3,369
|
|
|
499
|
|
|
3,868
|
|
||||||||
Total
|
$
|
3,969
|
|
|
$
|
319
|
|
|
$
|
97
|
|
|
$
|
214
|
|
|
$
|
255
|
|
|
$
|
4,854
|
|
|
$
|
597
|
|
|
$
|
5,451
|
|
(a)
|
Includes costs incurred whether capitalized or expensed.
|
(b)
|
Reflects reimbursements earned from the governments of Canada and Alberta related to funds previously expended for Quest CCS capital equipment.
|
(c)
|
Includes negative revisions to asset retirement costs primarily due to lower estimated costs for future abandonments as well as changes in timing of these activities in the U.K.
|
|
U.S.
|
|
Canada
|
|
E.G.
|
|
Other
Africa
|
|
Other Int'l
|
|
Cont Ops
|
|
Disc Ops
|
|
Total
|
||||||||||||||||
Year Ended December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Revenues and other income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Sales
|
$
|
3,374
|
|
|
$
|
700
|
|
|
$
|
40
|
|
|
$
|
—
|
|
|
$
|
329
|
|
|
$
|
4,443
|
|
|
$
|
—
|
|
|
$
|
4,443
|
|
Transfers
|
—
|
|
|
—
|
|
|
296
|
|
|
—
|
|
|
—
|
|
|
296
|
|
|
—
|
|
|
296
|
|
||||||||
Other income
(a)
|
230
|
|
|
—
|
|
|
—
|
|
|
(109
|
)
|
|
1
|
|
|
122
|
|
|
—
|
|
|
122
|
|
||||||||
Total revenues and other income
|
3,604
|
|
|
700
|
|
|
336
|
|
|
(109
|
)
|
|
330
|
|
|
4,861
|
|
|
—
|
|
|
4,861
|
|
||||||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Production costs
|
(1,259
|
)
|
|
(660
|
)
|
|
(84
|
)
|
|
(31
|
)
|
|
(177
|
)
|
|
(2,211
|
)
|
|
—
|
|
|
(2,211
|
)
|
||||||||
Exploration expenses
(b)
|
(750
|
)
|
|
(348
|
)
|
|
(41
|
)
|
|
(36
|
)
|
|
(143
|
)
|
|
(1,318
|
)
|
|
—
|
|
|
(1,318
|
)
|
||||||||
Depreciation, depletion and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
amortization
(c)
|
(2,758
|
)
|
|
(266
|
)
|
|
(92
|
)
|
|
(5
|
)
|
|
(163
|
)
|
|
(3,284
|
)
|
|
—
|
|
|
(3,284
|
)
|
||||||||
Technical support and other
|
(47
|
)
|
|
(2
|
)
|
|
(6
|
)
|
|
(2
|
)
|
|
(3
|
)
|
|
(60
|
)
|
|
—
|
|
|
(60
|
)
|
||||||||
Total expenses
|
(4,814
|
)
|
|
(1,276
|
)
|
|
(223
|
)
|
|
(74
|
)
|
|
(486
|
)
|
|
(6,873
|
)
|
|
—
|
|
|
(6,873
|
)
|
||||||||
Results before income taxes
|
(1,210
|
)
|
|
(576
|
)
|
|
113
|
|
|
(183
|
)
|
|
(156
|
)
|
|
(2,012
|
)
|
|
—
|
|
|
(2,012
|
)
|
||||||||
Income tax provision
|
437
|
|
|
31
|
|
|
(33
|
)
|
|
87
|
|
|
86
|
|
|
608
|
|
|
—
|
|
|
608
|
|
||||||||
Results of operations
|
$
|
(773
|
)
|
|
$
|
(545
|
)
|
|
$
|
80
|
|
|
$
|
(96
|
)
|
|
$
|
(70
|
)
|
|
$
|
(1,404
|
)
|
|
$
|
—
|
|
|
$
|
(1,404
|
)
|
Year Ended December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Revenues and other income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Sales
|
$
|
5,754
|
|
|
$
|
1,316
|
|
|
$
|
43
|
|
|
$
|
244
|
|
|
$
|
440
|
|
|
$
|
7,797
|
|
|
$
|
189
|
|
|
$
|
7,986
|
|
Transfers
|
3
|
|
|
—
|
|
|
588
|
|
|
—
|
|
|
3
|
|
|
594
|
|
|
1,848
|
|
|
2,442
|
|
||||||||
Other income
(a)
|
(85
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(85
|
)
|
|
1,832
|
|
|
1,747
|
|
||||||||
Total revenues and other income
|
5,672
|
|
|
1,316
|
|
|
631
|
|
|
244
|
|
|
443
|
|
|
8,306
|
|
|
3,869
|
|
|
12,175
|
|
||||||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Production costs
|
(1,544
|
)
|
|
(803
|
)
|
|
(154
|
)
|
|
(79
|
)
|
|
(253
|
)
|
|
(2,833
|
)
|
|
(181
|
)
|
|
(3,014
|
)
|
||||||||
Exploration expenses
|
(607
|
)
|
|
(1
|
)
|
|
(26
|
)
|
|
(103
|
)
|
|
(56
|
)
|
|
(793
|
)
|
|
(5
|
)
|
|
(798
|
)
|
||||||||
Depreciation, depletion and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
amortization
(c)
|
(2,474
|
)
|
|
(206
|
)
|
|
(93
|
)
|
|
(9
|
)
|
|
(115
|
)
|
|
(2,897
|
)
|
|
(105
|
)
|
|
(3,002
|
)
|
||||||||
Technical support and other
|
(193
|
)
|
|
(15
|
)
|
|
(31
|
)
|
|
(21
|
)
|
|
(14
|
)
|
|
(274
|
)
|
|
(7
|
)
|
|
(281
|
)
|
||||||||
Total expenses
|
(4,818
|
)
|
|
(1,025
|
)
|
|
(304
|
)
|
|
(212
|
)
|
|
(438
|
)
|
|
(6,797
|
)
|
|
(298
|
)
|
|
(7,095
|
)
|
||||||||
Results before income taxes
|
854
|
|
|
291
|
|
|
327
|
|
|
32
|
|
|
5
|
|
|
1,509
|
|
|
3,571
|
|
|
5,080
|
|
||||||||
Income tax provision
|
(302
|
)
|
|
(71
|
)
|
|
(117
|
)
|
|
(32
|
)
|
|
(18
|
)
|
|
(540
|
)
|
|
(1,496
|
)
|
|
(2,036
|
)
|
||||||||
Results of operations
|
$
|
552
|
|
|
$
|
220
|
|
|
$
|
210
|
|
|
$
|
—
|
|
|
$
|
(13
|
)
|
|
$
|
969
|
|
|
$
|
2,075
|
|
|
$
|
3,044
|
|
Year Ended December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Revenues and other income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Sales
|
$
|
5,059
|
|
|
$
|
1,376
|
|
|
$
|
33
|
|
|
$
|
1,106
|
|
|
$
|
687
|
|
|
$
|
8,261
|
|
|
$
|
599
|
|
|
$
|
8,860
|
|
Transfers
|
3
|
|
|
—
|
|
|
715
|
|
|
—
|
|
|
6
|
|
|
724
|
|
|
2,935
|
|
|
3,659
|
|
||||||||
Other income
(a)
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
(17
|
)
|
|
—
|
|
|
(17
|
)
|
||||||||
Total revenues and other income
|
5,053
|
|
|
1,376
|
|
|
748
|
|
|
1,106
|
|
|
685
|
|
|
8,968
|
|
|
3,534
|
|
|
12,502
|
|
||||||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Production costs
|
(1,318
|
)
|
|
(867
|
)
|
|
(113
|
)
|
|
(73
|
)
|
|
(271
|
)
|
|
(2,642
|
)
|
|
(273
|
)
|
|
(2,915
|
)
|
||||||||
Exploration expenses
|
(717
|
)
|
|
(8
|
)
|
|
(3
|
)
|
|
(65
|
)
|
|
(98
|
)
|
|
(891
|
)
|
|
(107
|
)
|
|
(998
|
)
|
||||||||
Depreciation, depletion and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|||||||||||||
amortization
(c)
|
(1,980
|
)
|
|
(218
|
)
|
|
(97
|
)
|
|
(28
|
)
|
|
(151
|
)
|
|
(2,474
|
)
|
|
(345
|
)
|
|
(2,819
|
)
|
||||||||
Technical support and other
|
(185
|
)
|
|
(21
|
)
|
|
(30
|
)
|
|
(19
|
)
|
|
(15
|
)
|
|
(270
|
)
|
|
(38
|
)
|
|
(308
|
)
|
||||||||
Total expenses
|
(4,200
|
)
|
|
(1,114
|
)
|
|
(243
|
)
|
|
(185
|
)
|
|
(535
|
)
|
|
(6,277
|
)
|
|
(763
|
)
|
|
(7,040
|
)
|
||||||||
Results before income taxes
|
853
|
|
|
262
|
|
|
505
|
|
|
921
|
|
|
150
|
|
|
2,691
|
|
|
2,771
|
|
|
5,462
|
|
||||||||
Income tax provision
|
(323
|
)
|
|
(66
|
)
|
|
(182
|
)
|
|
(920
|
)
|
|
(117
|
)
|
|
(1,608
|
)
|
|
(1,948
|
)
|
|
(3,556
|
)
|
||||||||
Results of operations
|
$
|
530
|
|
|
$
|
196
|
|
|
$
|
323
|
|
|
$
|
1
|
|
|
$
|
33
|
|
|
$
|
1,083
|
|
|
$
|
823
|
|
|
$
|
1,906
|
|
(a)
|
Includes net gain (loss) on dispositions (see Note
5
).
|
(b)
|
Includes unproved property impairments (see Note
13
).
|
(c)
|
Includes long-lived asset impairments (see Note
13
).
|
|
Year Ended December 31,
|
||||||||||
(In millions)
|
2015
|
|
2014
|
|
2013
|
||||||
Results of operations
|
$
|
(1,404
|
)
|
|
$
|
3,044
|
|
|
$
|
1,906
|
|
Discontinued operations
|
—
|
|
|
(2,075
|
)
|
|
(823
|
)
|
|||
Results of continuing operations
|
(1,404
|
)
|
|
969
|
|
|
1,083
|
|
|||
Items not included in results of oil and gas operations, net of tax:
|
|
|
|
|
|
||||||
Marketing income and other non-oil and gas producing related activities
|
(75
|
)
|
|
73
|
|
|
40
|
|
|||
Income from equity method investments
|
127
|
|
|
327
|
|
|
340
|
|
|||
Items not allocated to segment income, net of tax:
|
|
|
|
|
|
||||||
Loss (gain) on asset dispositions
|
(57
|
)
|
|
58
|
|
|
20
|
|
|||
Long-lived asset impairments
|
819
|
|
|
69
|
|
|
10
|
|
|||
Unrealized gain on derivatives
|
(32
|
)
|
|
—
|
|
|
—
|
|
|||
Alberta provincial corporate tax rate increase
|
135
|
|
|
—
|
|
|
—
|
|
|||
Segment income
|
$
|
(487
|
)
|
|
$
|
1,496
|
|
|
$
|
1,493
|
|
(In millions)
|
U.S.
|
|
Canada
|
|
E.G.
|
|
Other
Africa
|
|
Other Int'l
|
|
Total
|
||||||||||||
Year Ended December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Future cash inflows
|
$
|
31,026
|
|
|
$
|
31,087
|
|
|
$
|
2,671
|
|
|
$
|
12,157
|
|
|
$
|
1,281
|
|
|
$
|
78,222
|
|
Future production and support costs
|
(12,270
|
)
|
|
(27,459
|
)
|
|
(1,095
|
)
|
|
(901
|
)
|
|
(902
|
)
|
|
(42,627
|
)
|
||||||
Future development costs
|
(6,637
|
)
|
|
(2,929
|
)
|
|
(94
|
)
|
|
(689
|
)
|
|
(1,537
|
)
|
|
(11,886
|
)
|
||||||
Future income tax expenses
|
(778
|
)
|
|
—
|
|
|
(369
|
)
|
|
(9,857
|
)
|
|
602
|
|
|
(10,402
|
)
|
||||||
Future net cash flows
|
$
|
11,341
|
|
|
$
|
699
|
|
|
$
|
1,113
|
|
|
$
|
710
|
|
|
$
|
(556
|
)
|
(a)
|
$
|
13,307
|
|
10% annual discount for timing of cash flows
|
(6,082
|
)
|
|
(534
|
)
|
|
(380
|
)
|
|
(441
|
)
|
|
352
|
|
|
(7,085
|
)
|
||||||
Standardized measure of discounted future net cash flows-
|
|||||||||||||||||||||||
-related to continuing operations
|
$
|
5,259
|
|
|
$
|
165
|
|
|
$
|
733
|
|
|
$
|
269
|
|
|
$
|
(204
|
)
|
|
$
|
6,222
|
|
-related to discontinued operations
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
—
|
|
||
Year Ended December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Future cash inflows
|
$
|
66,307
|
|
|
$
|
55,675
|
|
|
$
|
5,027
|
|
|
$
|
23,803
|
|
|
$
|
3,040
|
|
|
$
|
153,852
|
|
Future production and support costs
|
(19,504
|
)
|
|
(34,838
|
)
|
|
(1,270
|
)
|
|
(803
|
)
|
|
(1,452
|
)
|
|
(57,867
|
)
|
||||||
Future development costs
|
(14,626
|
)
|
|
(9,754
|
)
|
|
(259
|
)
|
|
(680
|
)
|
|
(1,669
|
)
|
|
(26,988
|
)
|
||||||
Future income tax expenses
|
(8,124
|
)
|
|
(2,190
|
)
|
|
(922
|
)
|
|
(21,008
|
)
|
|
(9
|
)
|
|
(32,253
|
)
|
||||||
Future net cash flows
|
$
|
24,053
|
|
|
$
|
8,893
|
|
|
$
|
2,576
|
|
|
$
|
1,312
|
|
|
$
|
(90
|
)
|
|
$
|
36,744
|
|
10% annual discount for timing of cash flows
|
(12,138
|
)
|
|
(6,613
|
)
|
|
(915
|
)
|
|
(742
|
)
|
|
221
|
|
|
(20,187
|
)
|
||||||
Standardized measure of discounted future net cash flows-
|
|||||||||||||||||||||||
-related to continuing operations
|
$
|
11,915
|
|
|
$
|
2,280
|
|
|
$
|
1,661
|
|
|
$
|
570
|
|
|
$
|
131
|
|
|
$
|
16,557
|
|
-related to discontinued operations
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Year Ended December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Future cash inflows
|
$
|
54,099
|
|
|
$
|
59,585
|
|
|
$
|
5,911
|
|
|
$
|
28,195
|
|
|
$
|
3,178
|
|
|
$
|
150,968
|
|
Future production and support costs
|
(16,774
|
)
|
|
(35,954
|
)
|
|
(1,619
|
)
|
|
(976
|
)
|
|
(1,191
|
)
|
|
(56,514
|
)
|
||||||
Future development costs
|
(9,685
|
)
|
|
(9,694
|
)
|
|
(367
|
)
|
|
(793
|
)
|
|
(1,302
|
)
|
|
(21,841
|
)
|
||||||
Future income tax expenses
|
(7,592
|
)
|
|
(3,098
|
)
|
|
(1,032
|
)
|
|
(24,982
|
)
|
|
(643
|
)
|
|
(37,347
|
)
|
||||||
Future net cash flows
|
$
|
20,048
|
|
|
$
|
10,839
|
|
|
$
|
2,893
|
|
|
$
|
1,444
|
|
|
$
|
42
|
|
|
$
|
35,266
|
|
10% annual discount for timing of cash flows
|
(9,940
|
)
|
|
(8,300
|
)
|
|
(1,084
|
)
|
|
(828
|
)
|
|
128
|
|
|
(20,024
|
)
|
||||||
Standardized measure of discounted future net cash flows-
|
|||||||||||||||||||||||
-related to continuing operations
|
$
|
10,108
|
|
|
$
|
2,539
|
|
|
$
|
1,809
|
|
|
$
|
616
|
|
|
$
|
170
|
|
|
$
|
15,242
|
|
-related to discontinued operations
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,302
|
|
|
$
|
1,228
|
|
|
$
|
2,530
|
|
(a)
|
Future cash flows for Other International reflects the impact of future abandonment costs related to the U.K.
|
|
Year Ended December 31,
|
||||||||||
(In millions)
|
2015
|
|
2014
|
|
2013
|
||||||
Sales and transfers of oil and gas produced, net of production and support costs
|
$
|
(2,460
|
)
|
|
$
|
(5,284
|
)
|
|
$
|
(6,080
|
)
|
Net changes in prices and production and support costs related to future production
|
(25,239
|
)
|
(b)
|
(2,688
|
)
|
|
(336
|
)
|
|||
Extensions, discoveries and improved recovery, less related costs
|
1,100
|
|
|
3,539
|
|
|
3,415
|
|
|||
Development costs incurred during the period
|
1,694
|
|
|
4,088
|
|
|
3,429
|
|
|||
Changes in estimated future development costs
|
9,397
|
|
|
(1,423
|
)
|
|
898
|
|
|||
Revisions of previous quantity estimates
(a)
|
(7,625
|
)
|
|
(3,193
|
)
|
|
1,330
|
|
|||
Net changes in purchases and sales of minerals in place
|
(460
|
)
|
|
(168
|
)
|
|
(229
|
)
|
|||
Accretion of discount
|
2,967
|
|
|
3,132
|
|
|
2,657
|
|
|||
Net change in income taxes
|
10,291
|
|
|
3,312
|
|
|
(1,930
|
)
|
|||
Net change for the year
|
(10,335
|
)
|
|
1,315
|
|
|
3,154
|
|
|||
Beginning of the year related to continuing operations
|
16,557
|
|
|
15,242
|
|
|
12,088
|
|
|||
End of the year related to continuing operations
|
$
|
6,222
|
|
|
$
|
16,557
|
|
|
$
|
15,242
|
|
Net change for the year related to discontinued operations
|
$
|
—
|
|
|
$
|
(2,530
|
)
|
|
$
|
399
|
|
(a)
|
Includes amounts resulting from changes in the timing of production.
|
(b)
|
Decrease primarily due to lower realized prices.
|
•
|
Marathon Oil Corporation 2012 Incentive Compensation Plan (the "2012 Plan")
|
•
|
Marathon Oil Corporation 2007 Incentive Compensation Plan (the "2007 Plan") – No additional awards will be granted under this plan.
|
•
|
Marathon Oil Corporation 2003 Incentive Compensation Plan (the "2003 Plan") – No additional awards will be granted under this plan.
|
•
|
Deferred Compensation Plan for Non-Employee Directors – No additional awards will be granted under this plan.
|
Plan category
|
Number of securities to be issued upon
exercise of outstanding options, warrants and rights
|
|
Weighted-average
exercise price of
outstanding options,
warrants and rights
(c)
|
|
Number of securities
remaining available for future issuance
under equity compensation plans
|
|
||
Equity compensation plans approved by stockholders
|
13,715,861
|
|
(a)
|
$29.97
|
|
30,434,538
|
|
(d)
|
Equity compensation plans not approved by stockholders
|
12,291
|
|
(b)
|
N/A
|
|
—
|
|
|
Total
|
13,728,152
|
|
|
N/A
|
|
30,434,538
|
|
|
(a)
|
Includes the following:
|
•
|
3,513,104
stock options outstanding under the 2012 Plan;
8,479,140
stock options outstanding under the 2007 Plan;
673,175
stock options outstanding under the 2003 Plan;
|
•
|
294,800
common stock units that have been credited to non-employee directors pursuant to the non-employee director deferred compensation program and the annual director stock award program established under the 2012 Plan, 2007 Plan and 2003 Plan; common stock units credited under the 2012 Plan, 2007 Plan and 2003 Plan were
97,292
,
163,513
and
33,995
, respectively;
|
•
|
755,642
restricted stock units granted to non-officers under the 2012 Plan and 2007 Plan and outstanding as of
December 31, 2015
.
|
(b)
|
Reflects awards of common stock units made to non-employee directors under the Deferred Compensation Plan for Non-Employee Directors prior to April 30, 2003. When a non-employee director leaves the Board, he or she will be issued actual shares of Marathon Oil common stock in place of the common stock units.
|
(c)
|
The weighted-average exercise prices do not take the restricted stock units or common stock units into account as these awards have no exercise price.
|
(d)
|
Reflects the shares available for issuance under the 2012 Plan. No more than
14,592,300
of these shares may be issued for awards other than stock options or stock appreciation rights. In addition, shares related to grants that are forfeited, terminated, canceled or expire unexercised shall again immediately become available for issuance.
|
February 25, 2016
|
|
MARATHON OIL CORPORATION
|
|
|
|
|
|
By: /s/ GARY E. WILSON
|
|
|
Gary E. Wilson
|
|
|
Vice President, Controller and Chief Accounting Officer
|
Signature
|
|
Title
|
|
|
|
/
S
/ LEE M. TILLMAN
|
|
President and Chief Executive Officer and Director
|
Lee M. Tillman
|
|
|
|
|
|
/
S
/ JOHN R. SULT
|
|
Executive Vice President and Chief Financial Officer
|
John R. Sult
|
|
|
|
|
|
/s/ GARY E. WILSON
|
|
Vice President, Controller and Chief Accounting Officer
|
Gary E. Wilson
|
|
|
|
|
|
/
S
/ DENNIS H. REILLEY
|
|
Chairman of the Board
|
Dennis H. Reilley
|
|
|
|
|
|
/s/ GAURDIE E. BANISTER, JR.
|
|
Director
|
Gaurdie E. Banister, Jr.
|
|
|
|
|
|
/
S
/ GREGORY H. BOYCE
|
|
Director
|
Gregory H. Boyce
|
|
|
|
|
|
/
S
/ PIERRE BRONDEAU
|
|
Director
|
Pierre Brondeau
|
|
|
|
|
|
/S/ CHADWICK C. DEATON
|
|
Director
|
Chadwick C. Deaton
|
|
|
|
|
|
/
S
/ MARCELA E. DONADIO
|
|
Director
|
Marcela E. Donadio
|
|
|
|
|
|
/
S
/ PHILIP LADER
|
|
Director
|
Philip Lader
|
|
|
|
|
|
/
S
/ MICHAEL E. J. PHELPS
|
|
Director
|
Michael E. J. Phelps
|
|
|
Exhibit
|
|
|
Incorporated by Reference (File No. 001-05153, unless otherwise indicated)
|
||||
Number
|
|
Exhibit Description
|
Form
|
|
Exhibit
|
|
Filing Date
|
3
|
|
Articles of Incorporation and By-laws
|
|||||
3.1
|
|
Restated Certificate of Incorporation of Marathon Oil Corporation
|
10-Q
|
|
3.1
|
|
8/8/2013
|
3.2
|
|
Marathon Oil Corporation By-laws (Amended and restated as of September 1, 2015)
|
8-K
|
|
3.1
|
|
8/28/2015
|
3.3
|
|
Specimen of Common Stock Certificate
|
10-K
|
|
3.3
|
|
2/28/2014
|
4
|
|
Instruments Defining the Rights of Security Holders, Including Indentures
|
|||||
4.1
|
|
Indenture, dated as of February 26, 2002, between Marathon Oil Corporation and The Bank of New York Trust Company, N.A., successor in interest to JPMorgan Chase Bank as Trustee, relating to senior debt securities of Marathon Oil Corporation. Pursuant to CFR 229.601(b)(4)(iii), instruments with respect to long-term debt issues have been omitted where the amount of securities authorized under such instruments does not exceed 10% of the total consolidated assets of Marathon Oil. Marathon Oil hereby agrees to furnish a copy of any such instrument to the Securities and Exchange Commission upon its request
|
10-K
|
|
4.2
|
|
2/28/2014
|
10
|
|
Material Contracts
|
|
|
|
|
|
10.1
|
|
Amended and Restated Credit Agreement, dated as of May 28, 2014, among Marathon Oil Corporation, as borrower, The Royal Bank of Scotland plc, as syndication agent, Citibank, N.A., Morgan Stanley Senior Funding, Inc. and The Bank of Nova Scotia, as documentation agents, JPMorgan Chase Bank, N.A., as administrative agent, and certain other financial institutions named therein
|
8-K
|
|
4.1
|
|
6/2/2014
|
10.2
|
|
First Amendment, dated as of May 5, 2015, to the Amended and Restated Credit Agreement dated as of May 28, 2014, by and among Marathon Oil Corporation, as borrower, JPMorgan Chase Bank, N.A., as administrative agent, and certain other financial institutions named therein
|
10-Q
|
|
10.1
|
|
5/7/2015
|
10.3
†
|
|
Marathon Oil Corporation 2012 Incentive Compensation Plan
|
DEF 14A
|
|
App. III
|
|
3/8/2012
|
10.4
†
|
|
Form of Marathon Oil Corporation 2012 Incentive Compensation Plan Non-Qualified Stock Option Award Agreement
|
8-K
|
|
10.1
|
|
8/1/2014
|
10.5
†
|
|
Form of Performance Unit Award Agreement 2014 - 2016 Performance Cycle for Section 16 Officers
|
10-Q
|
|
10.1
|
|
5/7/2014
|
10.6
†
|
|
Form of Performance Unit Award Agreement 2014 - 2016 Performance Cycle for Officers
|
10-Q
|
|
10.2
|
|
5/7/2014
|
10.7†
|
|
Form of Initial CEO Option Grant Agreement granted under the Marathon Oil Corporation 2012 Incentive Compensation Plan
|
10-Q
|
|
10.1
|
|
11/6/2013
|
10.8†
|
|
Form of CEO Restricted Stock Agreement granted under the Marathon Oil Corporation 2012 Incentive Compensation Plan (3-year prorata vesting)
|
10-Q
|
|
10.2
|
|
11/6/2013
|
10.9†
|
|
Form of CEO Restricted Stock Award Agreement granted under the Marathon Oil Corporation 2012 Incentive Compensation Plan (3-year cliff vesting)
|
10-Q
|
|
10.3
|
|
11/6/2013
|
10.10†
|
|
Form of Performance Unit Award Agreement (2013-2015 Performance Cycle) for Section 16 Officers granted under the Marathon Oil Corporation 2012 Incentive Compensation Plan
|
10-Q
|
|
10.1
|
|
5/10/2013
|
Exhibit
|
|
|
Incorporated by Reference (File No. 001-05153, unless otherwise indicated)
|
||||
Number
|
|
Exhibit Description
|
Form
|
|
Exhibit
|
|
Filing Date
|
10.11†
|
|
Form of Performance Unit Award Agreement (2013-2015 Performance Cycle) for Officers granted under the Marathon Oil Corporation 2012 Incentive Compensation Plan
|
10-Q
|
|
10.2
|
|
5/10/2013
|
10.12†
|
|
Form of Nonqualified Stock Option Award Agreement for Section 16 Officers granted under the Marathon Oil Corporation 2012 Incentive Compensation Plan (3-year prorata vesting)
|
10-K
|
|
10.5
|
|
2/22/2013
|
10.13†
|
|
Form of Nonqualified Stock Option Award Agreement for Officers granted under the Marathon Oil Corporation 2012 Incentive Compensation Plan (3-year prorata vesting)
|
10-K
|
|
10.6
|
|
2/22/2013
|
10.14†
|
|
Form of Restricted Stock Award Agreement for Section 16 Officers granted under the Marathon Oil Corporation 2012 Incentive Compensation Plan (3-year cliff vesting)
|
10-K
|
|
10.7
|
|
2/22/2013
|
10.15†
|
|
Form of Restricted Stock Award Agreement for Officers granted under the Marathon Oil Corporation 2012 Incentive Compensation Plan (3-year cliff vesting)
|
10-K
|
|
10.8
|
|
2/22/2013
|
10.16
†
|
|
Form of Restricted Stock Award Agreement for Section 16 Officers granted under the Marathon Oil Corporation 2012 Incentive Compensation Plan (3-year prorata vesting)
|
10-K
|
|
10.9
|
|
2/22/2013
|
10.17
†
|
|
Form of Restricted Stock Award Agreement for Officers granted under the Marathon Oil Corporation 2012 Incentive Compensation Plan (3-year prorata vesting)
|
10-K
|
|
10.10
|
|
2/22/2013
|
10.18
†
|
|
Form of Nonqualified Stock Option Award Agreement for non-officers granted under the Marathon Oil Corporation 2012 Incentive Compensation Plan (3-year prorata vesting)
|
10-K
|
|
10.11
|
|
2/22/2013
|
10.19
†
|
|
Form of Nonqualified Stock Option Award Agreement for non-officers in Canada granted under the Marathon Oil Corporation 2012 Incentive Compensation Plan (3-year prorata vesting)
|
10-K
|
|
10.12
|
|
2/22/2013
|
10.20
†
|
|
Form of Restricted Stock Award Agreement for non-officers granted under the Marathon Oil Corporation 2012 Incentive Compensation Plan (3-year prorata vesting)
|
10-K
|
|
10.13
|
|
2/22/2013
|
10.21
†
|
|
Form of Restricted Stock Unit Award Agreement for non-officers granted under the Marathon Oil Corporation 2012 Incentive Compensation Plan (3-year prorata vesting)
|
10-K
|
|
10.14
|
|
2/22/2013
|
10.22
†
|
|
Marathon Oil Corporation 2007 Incentive Compensation Plan
|
10-K
|
|
10.5
|
|
2/29/2012
|
10.23
†
|
|
Form of Nonqualified Stock Option Award Agreement for Officers granted under the Marathon Oil Corporation 2007 Incentive Compensation Plan
|
10-K
|
|
10.6
|
|
2/29/2012
|
10.24
†
|
|
Form of Nonqualified Stock Option Award Agreement for Officers granted under the Marathon Oil Corporation 2007 Incentive Compensation Plan
|
10-K
|
|
10.5
|
|
2/28/2011
|
10.25†
|
|
Form of Nonqualified Stock Option Award Agreement granted under the Marathon Oil Corporation 2007 Incentive Compensation Plan
|
10-K
|
|
10.26
|
|
2/26/2010
|
10.26†
|
|
Marathon Oil Corporation 2003 Incentive Compensation Plan, Effective January 1, 2003
|
10-K
|
|
10.9
|
|
2/26/2010
|
Exhibit
|
|
|
Incorporated by Reference (File No. 001-05153, unless otherwise indicated)
|
||||
Number
|
|
Exhibit Description
|
Form
|
|
Exhibit
|
|
Filing Date
|
10.27†
|
|
Form of Nonqualified Stock Option Award Agreement for Officers granted under the Marathon Oil Corporation 2003 Incentive Compensation Plan
|
10-K
|
|
10.22
|
|
2/26/2010
|
10.28†
|
|
Marathon Oil Corporation Deferred Compensation Plan for Non-Employee Directors (Amended and Restated as of January 1, 2012)
|
10-Q
|
|
10.3
|
|
5/7/2014
|
10.29†
|
|
Marathon Oil Company Deferred Compensation Plan Amended and Restated Effective June 30, 2011
|
10-K
|
|
10.32
|
|
2/29/2012
|
10.30†
|
|
Marathon Oil Company Excess Benefit Plan Amended and Restated
|
10-K
|
|
10.31
|
|
2/29/2012
|
10.31†
|
|
Marathon Oil Corporation 2011 Officer Change in Control Severance Benefits Plan (as amended, effective November 1, 2014)
|
10-K
|
|
10.36
|
|
3/2/2015
|
10.32
†
|
|
Marathon Oil Corporation Policy for Repayment of Annual Cash Bonus Amounts
|
10-K
|
|
10.10
|
|
2/28/2011
|
10.33
†
|
|
Marathon Oil Executive Tax, Estate, and Financial Planning Program, Amended and Restated, Effective January 1, 2009
|
10-K
|
|
10.32
|
|
2/27/2009
|
10.34
†
|
|
Marathon Oil Corporation Bonus Agreement Upon Commencement of Employment for Lee M. Tillman
|
10-Q
|
|
10.4
|
|
11/6/2013
|
10.35
|
|
Tax Sharing Agreement dated as of May 25, 2011 among Marathon Oil Corporation, Marathon Petroleum Corporation and MPC Investment LLC
|
8-K
|
|
10.1
|
|
5/26/2011
|
12.1*
|
|
Computation of Ratio of Earnings to Fixed Charges
|
|
|
|
|
|
21.1*
|
|
List of Significant Subsidiaries
|
|
|
|
|
|
23.1*
|
|
Consent of Independent Registered Public Accounting Firm
|
|
|
|
|
|
23.2*
|
|
Consent of GLJ Petroleum Consultants LTD., independent petroleum engineers and geologists
|
|
|
|
|
|
23.3*
|
|
Consent of Ryder Scott Company, L.P., independent petroleum engineers and geologists
|
|
|
|
|
|
23.4*
|
|
Consent of Netherland, Sewell & Associates, Inc., independent petroleum engineers and geologists
|
|
|
|
|
|
31.1*
|
|
Certification of President and Chief Executive Officer pursuant to Rule 13(a)-14 and 15(d)-14 under the Securities Exchange Act of 1934
|
|
|
|
|
|
31.2*
|
|
Certification of Executive Vice President and Chief Financial Officer pursuant to Rule 13(a)-14 and 15(d)-14 under the Securities Exchange Act of 1934
|
|
|
|
|
|
32.1*
|
|
Certification of President and Chief Executive Officer pursuant to 18 U.S.C. Section 1350
|
|
|
|
|
|
32.2*
|
|
Certification of Executive Vice President and Chief Financial Officer pursuant to 18 U.S.C. Section 1350
|
|
|
|
|
|
99.1*
|
|
Report of GLJ Petroleum Consultants LTD., independent petroleum engineers and geologists for 2015
|
|
|
|
|
|
99.2
|
|
Report of GLJ Petroleum Consultants LTD., independent petroleum engineers and geologists for 2014
|
10-K
|
|
99.1
|
|
3/2/2015
|
99.3
|
|
Report of GLJ Petroleum Consultants LTD., independent petroleum engineers and geologists for 2013
|
10-K
|
|
99.1
|
|
2/28/2014
|
|
|
Year Ended
|
||||||||||||||||||
|
|
December 31,
|
||||||||||||||||||
(In millions)
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) from continuing operations before income taxes
|
|
$
|
(2,958
|
)
|
|
$
|
1,361
|
|
|
$
|
2,393
|
|
|
$
|
3,104
|
|
|
$
|
1,615
|
|
Income from equity method investments
|
|
145
|
|
|
424
|
|
|
423
|
|
|
370
|
|
|
462
|
|
|||||
Income (loss) from continuing operations before income taxes and income from equity method investments
|
|
(3,103
|
)
|
|
937
|
|
|
1,970
|
|
|
2,734
|
|
|
1,153
|
|
|||||
Add (deduct)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed charges
|
|
382
|
|
|
352
|
|
|
360
|
|
|
338
|
|
|
504
|
|
|||||
Capitalized interest
|
|
(26
|
)
|
|
(33
|
)
|
|
(27
|
)
|
|
(68
|
)
|
|
(208
|
)
|
|||||
Amortization of capitalized interest
|
|
5
|
|
|
8
|
|
|
21
|
|
|
45
|
|
|
107
|
|
|||||
Distributed income from equity investees
|
|
178
|
|
|
454
|
|
|
430
|
|
|
382
|
|
|
499
|
|
|||||
Earnings as defined
|
|
(2,564
|
)
|
|
1,718
|
|
|
2,754
|
|
|
3,431
|
|
|
2,055
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest expense (including discontinued operations)
|
|
321
|
|
|
277
|
|
|
297
|
|
|
236
|
|
|
245
|
|
|||||
Capitalized interest (including discontinued operations)
|
|
26
|
|
|
33
|
|
|
27
|
|
|
68
|
|
|
208
|
|
|||||
Interest portion of rental expense (including discontinued operations)
|
|
35
|
|
|
42
|
|
|
36
|
|
|
34
|
|
|
51
|
|
|||||
Fixed charges as defined
|
|
382
|
|
|
352
|
|
|
360
|
|
|
338
|
|
|
504
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ratio of earnings to fixed charges
|
|
(6.71
|
)
|
|
4.88
|
|
|
7.65
|
|
|
10.15
|
|
|
4.08
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Amount by which earnings were insufficient to cover fixed charges
|
|
$
|
2,946
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Subsidiaries of Marathon Oil
|
Exhibit 21.1
|
Company Name
|
Country
|
Country Region
|
Alba Associates LLC
|
Cayman Islands
|
|
Alba Equatorial Guinea Partnership, L.P.
|
United States
|
Delaware
|
Alba Plant LLC
|
Cayman Islands
|
|
Albian Sands Energy Inc.
|
Canada
|
|
Alchemix Corporation
|
United States
|
Arizona
|
AMPCO Marketing, L.L.C.
|
United States
|
Michigan
|
AMPCO Services, L.L.C.
|
United States
|
Michigan
|
Atlantic Methanol Associates LLC
|
Cayman Islands
|
|
Atlantic Methanol Production Company LLC
|
Cayman Islands
|
|
E.G. Global LNG Services, Ltd.
|
United States
|
Delaware
|
Equatorial Guinea LNG Company, S.A.
|
Equatorial Guinea
|
|
Equatorial Guinea LNG Holdings Limited
|
Bahamas
|
|
Equatorial Guinea LNG Operations, S.A.
|
Equatorial Guinea
|
|
Equatorial Guinea LNG Train 1, S.A.
|
Equatorial Guinea
|
|
FWA Equipment & Mud Company, Inc.
|
United States
|
Delaware
|
In-Depth Systems, Inc.
|
United States
|
Texas
|
Marathon Alpha Holdings LLC
|
United States
|
Delaware
|
Marathon Canada Holdings Limited
|
Canada
|
Nova Scotia
|
Marathon Canada Petroleum ULC
|
Canada
|
Nova Scotia
|
Marathon Delta Investment Limited
|
Cayman Islands
|
|
Marathon E.G. Alba Limited
|
Cayman Islands
|
|
Marathon E.G. Holding Limited
|
Cayman Islands
|
|
Marathon E.G. International Limited
|
Cayman Islands
|
|
Marathon E.G. LNG Holding Limited
|
Cayman Islands
|
|
Marathon E.G. LPG Limited
|
Cayman Islands
|
|
Marathon E.G. Offshore Limited
|
Cayman Islands
|
|
Marathon E.G. Oil Operations Limited
|
Cayman Islands
|
|
Marathon E.G. Production Limited
|
Cayman Islands
|
|
Marathon Eagle Ford Midstream LLC
|
United States
|
Delaware
|
Marathon East Texas Holdings LLC
|
United States
|
Delaware
|
Marathon Ethiopia Limited B.V.
|
Netherlands
|
|
Marathon Financing Trust I
|
United States
|
Delaware
|
Marathon Financing Trust II
|
United States
|
Delaware
|
Marathon Global Services, Ltd.
|
United States
|
Delaware
|
Marathon Green B.V.
|
Netherlands
|
|
Marathon GTF Technology, Ltd.
|
United States
|
Delaware
|
Marathon International Oil (G.B.) Limited
|
United Kingdom
|
England and Wales
|
Marathon International Oil Angola Block 31 Limited
|
Cayman Islands
|
|
Marathon International Oil Angola Block 32 Limited
|
Cayman Islands
|
|
Marathon International Oil Canada, Ltd.
|
United States
|
Delaware
|
Marathon International Oil Company
|
United States
|
Delaware
|
Marathon International Oil Holdings LLC
|
United States
|
Delaware
|
Marathon International Oil Libya Limited
|
Cayman Islands
|
|
Marathon International Oil Portfolio Coöperatief U.A.
|
Netherlands
|
|
Marathon International Oil Supply Company (G.B.) Limited
|
United Kingdom
|
England and Wales
|
Marathon International Oil Ventures Limited
|
Cayman Islands
|
|
Marathon International Petroleum Indonesia Limited
|
Cayman Islands
|
|
Marathon International Services Limited
|
Cayman Islands
|
|
Marathon International Upstream, Ltd.
|
United States
|
Delaware
|
Marathon Kenya Limited B.V.
|
Netherlands
|
|
Marathon LNG Marketing LLC
|
United States
|
Delaware
|
Marathon Methanol Holding LLC
|
United States
|
Delaware
|
Marathon Canada Investment Coöperatief U.A.
|
Netherlands
|
|
Marathon Offshore Alpha Limited
|
Cayman Islands
|
|
Marathon Offshore Investment Limited
|
Cayman Islands
|
|
Marathon Offshore Libya Service Company, Ltd.
|
United States
|
Delaware
|
Marathon Oil (East Texas) L.P.
|
United States
|
Texas
|
Marathon Oil (Suisse) SA
|
Switzerland
|
|
Marathon Oil (West Texas) L.P.
|
United States
|
Texas
|
Marathon Oil Canada Corporation
|
Canada
|
Alberta
|
Marathon Oil Canada Holdings LLC
|
United States
|
Delaware
|
Marathon Oil Canada Investment LLC
|
United States
|
Delaware
|
Marathon Oil Canada LLC
|
United States
|
Delaware
|
Marathon Oil Cap Bon, Ltd.
|
United States
|
Delaware
|
Marathon Oil Company
|
United States
|
Ohio
|
Marathon Oil Corporation
|
United States
|
Delaware
|
Marathon Oil Decommissioning Services LLC
|
United States
|
Delaware
|
Marathon Oil Dutch Holdings B.V.
|
Netherlands
|
|
Marathon Oil Dutch Holdings Coöperatief U.A.
|
Netherlands
|
|
Marathon Oil Dutch Investment C.V.
|
Netherlands
|
|
Marathon Oil Eastern, Ltd.
|
United States
|
Delaware
|
Marathon Oil EF II LLC
|
United States
|
Delaware
|
Marathon Oil EF LLC
|
United States
|
Delaware
|
Marathon Oil Exploration Limited
|
Cayman Islands
|
|
Marathon Oil Holdings (Barbados) Inc.
|
Barbados
|
|
Marathon Oil Holdings Limited
|
Cayman Islands
|
|
Marathon Oil Holdings U.K. Limited
|
United Kingdom
|
England and Wales
|
Marathon Oil International Holding C.V.
|
Netherlands
|
|
Marathon Oil International LLC
|
United States
|
Delaware
|
Marathon Oil Investment LLC
|
United States
|
Delaware
|
Marathon Oil Jenein Limited
|
Cayman Islands
|
|
Marathon Oil KDV B.V.
|
Netherlands
|
|
Marathon Oil Libya Limited
|
Cayman Islands
|
|
Marathon Oil Marketing, Ltd.
|
United States
|
Delaware
|
Marathon Oil Netherlands One B.V.
|
Netherlands
|
|
Marathon Oil Netherlands Two B.V.
|
Netherlands
|
|
Marathon Oil North Sea (G.B.) Limited
|
United Kingdom
|
England and Wales
|
Marathon Oil Polska Sp. z o.o.
|
Poland
|
|
Marathon Oil Sands (U.S.A.) Inc.
|
United States
|
Delaware
|
Marathon Oil Switzerland B.V.
|
Netherlands
|
|
Marathon Oil Timor Gap West, Ltd.
|
United States
|
Delaware
|
Marathon Oil U.K. LLC
|
United States
|
Delaware
|
Marathon Oil Venus Limited
|
Cayman Islands
|
|
Marathon Oil West of Shetlands Limited
|
United Kingdom
|
England and Wales
|
Marathon Service (G.B.) Limited
|
United Kingdom
|
England and Wales
|
Marathon Service Company
|
United States
|
Delaware
|
Marathon Upstream Gabon Limited
|
Cayman Islands
|
|
Marathon Upstream Nigeria Limited
|
Nigeria
|
|
Marathon US Holdings Inc.
|
United States
|
Delaware
|
Marathon West Texas Holdings LLC
|
United States
|
Delaware
|
Marathon Western Saudi Arabia Limited
|
Cayman Islands
|
|
Miltiades Limited
|
United Kingdom
|
England and Wales
|
MOC Portfolio Delaware, Inc.
|
United States
|
Delaware
|
Navatex Gathering LLC
|
United States
|
Delaware
|
Form S-3ASR:
|
|
Relating to:
|
|
|
|
|
|
||
Reg. No.
|
|
333-194226
|
|
Marathon Oil Corporation Debt Securities, Common Stock, Preferred Stock, Warrants and Stock Purchase Contracts/Units
|
|
|
|
||
Form S-8:
|
|
Relating to:
|
|
|
|
|
|
||
Reg. No.
|
|
33-56828
|
|
Marathon Oil Company Thrift Plan
|
|
|
333-29699
|
|
1990 Stock Plan
|
|
|
333-29709
|
|
Marathon Oil Company Thrift Plan
|
|
|
333-52751
|
|
1990 Stock Plan
|
|
|
33-41864
|
|
1990 Stock Plan
|
|
|
333-104910
|
|
Marathon Oil Corporation 2003 Incentive Compensation Plan
|
|
|
333-143010
|
|
Marathon Oil Corporation 2007 Incentive Compensation Plan
|
|
|
333-181301
|
|
Marathon Oil Corporation 2012 Incentive Compensation Plan
|
1.
|
I have reviewed this report on Form 10-K of Marathon Oil 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 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 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.
|
Date:
|
February 25, 2016
|
|
/s/ Lee M. Tillman
|
|
|
|
Lee M. Tillman
|
|
|
|
President and Chief Executive Officer
|
1.
|
I have reviewed this report on Form 10-K of Marathon Oil 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 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 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.
|
Date:
|
February 25, 2016
|
|
/s/ John R. Sult
|
|
|
|
John R. Sult
|
|
|
|
Executive Vice President and Chief Financial Officer
|
(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.
|
February 25, 2016
|
|
|
|
/s/ Lee M. Tillman
|
|
Lee M. Tillman
|
|
President and Chief Executive Officer
|
|
(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.
|
February 25, 2016
|
|
|
|
/s/ John R. Sult
|
|
John R. Sult
|
|
Executive Vice President and Chief Financial Officer
|
|
i.
|
We have prepared an independent evaluation of the Canadian mineable oil sands reserves of Marathon Oil Corporation (the "Company") for the management and the board of directors of the Company. The primary purpose of our evaluation report was to provide estimates of reserves information in support of the Company’s year-end reserves reporting requirements under US Securities Regulation S-K and for other internal business and financial needs of the Company.
|
ii.
|
We have evaluated and reviewed certain reserves of the Company as at December 31, 2015. The completion (transmittal) date of our report is February 18, 2016.
|
iii.
|
The following table sets forth the total Company proved net after royalty reserves under constant prices and costs, and the proportion of those volumes evaluated by GLJ.
|
iv.
|
Our report covered 100 percent of the Company’s mineable, synthetic crude oil (SCO) reserves; our evaluation coverage from the perspective of the Company’s total reserves is provided above in item iii. We carried out our evaluation in accordance with standards set out in the Canadian Oil and Gas Evaluation Handbook (the "COGE Handbook") with the necessary modifications to reflect definitions and standards under the U.S. Financial Accounting Standards Board policies (the “FASB Standards”) and the legal requirements under the U.S. Securities and Exchange Commission (“SEC requirements”).
|
v.
|
As required under SEC Regulation S-X, reserves are those quantities of oil and gas that are estimated to be economically producible under existing economic conditions. As specified, in determining economic production, constant product reference prices have been based on a 12 month average price, calculated as the unweighted arithmetic average of the first-day-of-the-month price for each month within the 12 month period prior to the effective date of our report. In our economic analysis, operating
|
vi.
|
Our report has been prepared assuming the continuation of existing regulatory and fiscal conditions subject to the guidance in the COGE Handbook and SEC regulations. Notwithstanding that the Company currently has regulatory approval to produce the reserves identified in our report, there is no assurance that changes in regulation will not occur; such changes, which cannot reliably be predicted, could impact the Company’s ability to recover the estimated reserves.
|
vii.
|
Oil and gas reserves estimates have an inherent degree of associated uncertainty, the degree of which is affected by many factors. Reserves estimates will vary due to the limited and imprecise nature of data upon which the estimates of reserves are predicated. Moreover, the methods and data used in estimating reserves are often necessarily indirect or analogical in character rather than direct or deductive. Furthermore, the persons involved in the preparation of reserves estimates and associated information are required, in applying geosciences, engineering and evaluation principles, to make numerous unbiased judgments based upon their educational background, professional training, and professional experience. The extent and significance of the judgments to be made are, in themselves, sufficient to render reserves estimates inherently imprecise.
Reserves estimates may change substantially as additional data becomes available and as economic conditions impacting oil and gas prices and costs change. Reserves estimates will also change over time due to other factors such as depletion, knowledge and technology, fiscal and economic conditions, and contractual, statutory and regulatory provisions.
|
viii.
|
In our opinion, the reserves information evaluated by us have, in all material respects, been determined in accordance with all appropriate industry standards, methods and procedures applicable for the filing of reserves information under U.S. SEC Regulation S-K.
|
ix.
|
A summary of the Company reserves evaluated by us was provided for item iii. Of the 698 MMbbl SCO total proved net after royalty reserves evaluated by us, all are classified as proved developed.
|
|
|
Gross (100%) Reserves
|
||||
|
|
Gas
|
|
Condensate
|
|
LPG
|
Category
|
|
(BCF)
|
|
(MMBBL)
|
|
(MMBBL)
|
|
|
|
|
|
|
|
Proved Developed (PD)
|
|
1,196
|
|
54
|
|
28
|
Proved (1P)
|
|
2,056
|
|
91
|
|
50
|
(i)
|
Same geological formation (but not necessarily in pressure communication with the reservoir of interest);
|
(ii)
|
Same environment of deposition;
|
(iii)
|
Similar geological structure; and
|
(iv)
|
Same drive mechanism.
|
(i)
|
Through existing wells with existing equipment and operating methods or in which the cost of the required equipment is relatively minor compared to the cost of a new well; and
|
(ii)
|
Through installed extraction equipment and infrastructure operational at the time of the reserves estimate if the extraction is by means not involving a well.
|
(i)
|
Gain access to and prepare well locations for drilling, including surveying well locations for the purpose of determining specific development drilling sites, clearing ground, draining, road building, and relocating public roads, gas lines, and power lines, to the extent necessary in developing the proved reserves.
|
(ii)
|
Drill and equip development wells, development-type stratigraphic test wells, and service wells, including the costs of platforms and of well equipment such as casing, tubing, pumping equipment, and the wellhead assembly.
|
(iii)
|
Acquire, construct, and install production facilities such as lease flow lines, separators, treaters, heaters, manifolds, measuring devices, and production storage tanks, natural gas cycling and processing plants, and central utility and waste disposal systems.
|
(iv)
|
Provide improved recovery systems.
|
(i)
|
Costs of topographical, geographical and geophysical studies, rights of access to properties to conduct those studies, and salaries and other expenses of geologists, geophysical crews, and others conducting those studies. Collectively, these are sometimes referred to as geological and geophysical or "G&G" costs.
|
(ii)
|
Costs of carrying and retaining undeveloped properties, such as delay rentals, ad valorem taxes on properties, legal costs for title defense, and the maintenance of land and lease records.
|
(iii)
|
Dry hole contributions and bottom hole contributions.
|
(iv)
|
Costs of drilling and equipping exploratory wells.
|
(v)
|
Costs of drilling exploratory-type stratigraphic test wells.
|
(i)
|
Oil and gas producing activities include:
|
(A)
|
The search for crude oil, including condensate and natural gas liquids, or natural gas ("oil and gas") in their natural states and original locations;
|
(B)
|
The acquisition of property rights or properties for the purpose of further exploration or for the purpose of removing the oil or gas from such properties;
|
(C)
|
The construction, drilling, and production activities necessary to retrieve oil and gas from their natural reservoirs, including the acquisition, construction, installation, and maintenance of field gathering and storage systems, such as:
|
(1)
|
Lifting the oil and gas to the surface; and
|
(2)
|
Gathering, treating, and field processing (as in the case of processing gas to extract liquid hydrocarbons); and
|
(D)
|
Extraction of saleable hydrocarbons, in the solid, liquid, or gaseous state, from oil sands, shale, coalbeds, or other nonrenewable natural resources which are intended to be upgraded into synthetic oil or gas, and activities undertaken with a view to such extraction.
|
a.
|
The first point at which oil, gas, or gas liquids, natural or synthetic, are delivered to a main pipeline, a common carrier, a refinery, or a marine terminal; and
|
b.
|
In the case of natural resources that are intended to be upgraded into synthetic oil or gas, if those natural resources are delivered to a purchaser prior to upgrading, the first point at which the natural resources are delivered to a main pipeline, a common carrier, a refinery, a marine terminal, or a facility which upgrades such natural resources into synthetic oil or gas.
|
(ii)
|
Oil and gas producing activities do not include:
|
(A)
|
Transporting, refining, or marketing oil and gas;
|
(B)
|
Processing of produced oil, gas, or natural resources that can be upgraded into synthetic oil or gas by a registrant that does not have the legal right to produce or a revenue interest in such production;
|
(C)
|
Activities relating to the production of natural resources other than oil, gas, or natural resources from which synthetic oil and gas can be extracted; or
|
(D)
|
Production of geothermal steam.
|
(i)
|
When deterministic methods are used, the total quantities ultimately recovered from a project have a low probability of exceeding proved plus probable plus possible reserves. When probabilistic methods are used, there should be at least a 10% probability that the total quantities ultimately recovered will equal or exceed the proved plus probable plus possible reserves estimates.
|
(ii)
|
Possible reserves may be assigned to areas of a reservoir adjacent to probable reserves where data control and interpretations of available data are progressively less certain. Frequently, this will be in areas where geoscience and engineering data are unable to define clearly the area and vertical limits of commercial production from the reservoir by a defined project.
|
(iii)
|
Possible reserves also include incremental quantities associated with a greater percentage recovery of the hydrocarbons in place than the recovery quantities assumed for probable reserves.
|
(iv)
|
The proved plus probable and proved plus probable plus possible reserves estimates must be based on reasonable alternative technical and commercial interpretations within the reservoir or subject project that are clearly documented, including comparisons to results in successful similar projects.
|
(v)
|
Possible reserves may be assigned where geoscience and engineering data identify directly adjacent portions of a reservoir within the same accumulation that may be separated from proved areas by faults with displacement less than formation thickness or other geological discontinuities and that have not been penetrated by a wellbore, and the registrant believes that such adjacent portions are in communication with the known (proved) reservoir. Possible reserves may be assigned to areas that are structurally higher or lower than the proved area if these areas are in communication with the proved reservoir.
|
(vi)
|
Pursuant to paragraph (a)(22)(iii) of this section, where direct observation has defined a highest known oil (HKO) elevation and the potential exists for an associated gas cap, proved oil reserves should be assigned in the structurally higher portions of the reservoir above the HKO only if the higher contact can be established with reasonable certainty through reliable technology. Portions of the reservoir that do not meet this reasonable certainty criterion may be assigned as probable and possible oil or gas based on reservoir fluid properties and pressure gradient interpretations.
|
(i)
|
When deterministic methods are used, it is as likely as not that actual remaining quantities recovered will exceed the sum of estimated proved plus probable reserves. When probabilistic methods are used, there should be at least a 50% probability that the actual quantities recovered will equal or exceed the proved plus probable reserves estimates.
|
(ii)
|
Probable reserves may be assigned to areas of a reservoir adjacent to proved reserves where data control or interpretations of available data are less certain, even if the interpreted reservoir continuity of structure or productivity does not meet the reasonable certainty criterion. Probable reserves may be assigned to areas that are structurally higher than the proved area if these areas are in communication with the proved reservoir.
|
(iii)
|
Probable reserves estimates also include potential incremental quantities associated with a greater percentage recovery of the hydrocarbons in place than assumed for proved reserves.
|
(iv)
|
See also guidelines in paragraphs (a)(17)(iv) and (a)(17)(vi) of this section.
|
(i)
|
Costs incurred to operate and maintain wells and related equipment and facilities, including depreciation and applicable operating costs of support equipment and facilities and other costs of operating and maintaining those wells and related equipment and facilities. They become part of the cost of oil and gas produced. Examples of production costs (sometimes called lifting costs) are:
|
(A)
|
Costs of labor to operate the wells and related equipment and facilities.
|
(B)
|
Repairs and maintenance.
|
(C)
|
Materials, supplies, and fuel consumed and supplies utilized in operating the wells and related equipment and facilities.
|
(D)
|
Property taxes and insurance applicable to proved properties and wells and related equipment and facilities.
|
(E)
|
Severance taxes.
|
(ii)
|
Some support equipment or facilities may serve two or more oil and gas producing activities and may also serve transportation, refining, and marketing activities. To the extent that the support equipment and facilities are used in oil and gas producing activities, their depreciation and applicable operating costs become exploration, development or production costs, as appropriate. Depreciation, depletion, and amortization of capitalized acquisition, exploration, and development costs are not production costs but also become part of the cost of oil and gas produced along with production (lifting) costs identified above.
|
(i)
|
The area of the reservoir considered as proved includes:
|
(A)
|
The area identified by drilling and limited by fluid contacts, if any, and
|
(B)
|
Adjacent undrilled portions of the reservoir that can, with reasonable certainty, be judged to be continuous with it and to contain economically producible oil or gas on the basis of available geoscience and engineering data.
|
(ii)
|
In the absence of data on fluid contacts, proved quantities in a reservoir are limited by the lowest known hydrocarbons (LKH) as seen in a well penetration unless geoscience, engineering, or performance data and reliable technology establishes a lower contact with reasonable certainty.
|
(iii)
|
Where direct observation from well penetrations has defined a highest known oil (HKO) elevation and the potential exists for an associated gas cap, proved oil reserves may be assigned in the structurally higher portions of the reservoir only if geoscience, engineering, or performance data and reliable technology establish the higher contact with reasonable certainty.
|
(iv)
|
Reserves which can be produced economically through application of improved recovery techniques (including, but not limited to, fluid injection) are included in the proved classification when:
|
(A)
|
Successful testing by a pilot project in an area of the reservoir with properties no more favorable than in the reservoir as a whole, the operation of an installed program in the reservoir or an analogous reservoir, or other evidence using reliable technology establishes the reasonable certainty of the engineering analysis on which the project or program was based; and
|
(B)
|
The project has been approved for development by all necessary parties and entities, including governmental entities.
|
(v)
|
Existing economic conditions include prices and costs at which economic producibility from a reservoir is to be determined. The price shall be the average price during the 12-month period prior to the ending date of the period covered by the report, determined as an unweighted arithmetic average of the first-day-of-the-month price for each month within such period, unless prices are defined by contractual arrangements, excluding escalations based upon future conditions.
|
(i)
|
Reserves on undrilled acreage shall be limited to those directly offsetting development spacing areas that are reasonably certain of production when drilled, unless evidence using reliable technology exists that establishes reasonable certainty of economic producibility at greater distances.
|
(ii)
|
Undrilled locations can be classified as having undeveloped reserves only if a development plan has been adopted indicating that they are scheduled to be drilled within five years, unless the specific circumstances, justify a longer time.
|
(iii)
|
Under no circumstances shall estimates for undeveloped reserves be attributable to any acreage for which an application of fluid injection or other improved recovery technique is contemplated, unless such techniques have been proved effective by actual projects in the same reservoir or an analogous reservoir, as defined in paragraph (a)(2) of this section, or by other evidence using reliable technology establishing reasonable certainty.
|
\s\ Jeffrey D. Wilson
|
Jeffrey D. Wilson, P.E.
|
TBPE License No. 86426
|
Managing Senior Vice President
|
As of December 31, 2014
|
|
|
Proved
|
|||||
|
|
|
|
|
|
Total
|
|
|
|
Developed
|
|
Undeveloped
|
|
Proved
|
|
Net Reserves of Properties
Audited by Ryder Scott
|
|
|
|
|
|
|
|
Oil/Condensate - MBarrels
|
|
38,661
|
|
72,108
|
|
110,769
|
|
Plant Products - MBarrels
|
|
4,039
|
|
5,991
|
|
10,030
|
|
Gas - MMCF
|
|
15,108
|
|
26,439
|
|
41,547
|
|
MBOE
|
|
45,218
|
|
82,506
|
|
127,724
|
Geographic Area
|
Product
|
Price
Reference
|
Average Benchmark Prices
|
Average Realized
Prices
|
North America
|
|
|
|
|
|
Oil/Condensate
|
WTI Cushing
|
$94.99/bbl
|
$83.21/bbl
|
North Dakota
|
NGL
|
Contract
|
N/A
|
$43.89/bbl
|
|
Gas
|
Henry Hub
|
$4.31/Mcf
|
$5.18/Mcf
|
(1)
|
completion intervals which are open at the time of the estimate, but which have not started producing;
|
(2)
|
wells which were shut-in for market conditions or pipeline connections; or
|
(3)
|
wells not capable of production for mechanical reasons.
|
(i)
|
Reserves on undrilled acreage shall be limited to those directly offsetting development spacing areas that are reasonably certain of production when drilled, unless evidence using reliable technology exists that establishes reasonable certainty of economic producibility at greater distances.
|