☒
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the Fiscal Year Ended
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December 31, 2019
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from _____ to _____
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Commission file number
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1-1513
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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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Trading Symbol
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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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MRO
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New York Stock Exchange
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Large accelerated filer
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þ
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Accelerated filer
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o
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Non-accelerated filer
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o
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Smaller reporting company
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☐
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Emerging growth company
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☐
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Table of Contents
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•
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conditions in the oil and gas industry, including supply and demand levels for crude oil and condensate, NGLs and natural gas and the resulting impact on price;
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•
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changes in expected reserve or production levels;
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•
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changes in political or economic conditions in E.G., including changes in foreign currency exchange rates, interest rates, inflation rates, and global and domestic market conditions;
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•
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risks related to our hedging activities;
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•
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liability resulting from litigation;
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•
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capital available for exploration and development;
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•
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the inability of any party to satisfy closing conditions or delays in execution with respect to our asset acquisitions and dispositions;
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•
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drilling and operating risks;
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•
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lack of, or disruption in, access to pipelines or other transportation methods;
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•
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well production timing;
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•
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availability of drilling rigs, materials and labor, including the costs associated therewith;
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•
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difficulty in obtaining necessary approvals and permits;
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non-performance by third parties of their contractual obligations;
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unforeseen hazards such as weather conditions, acts of war or terrorist acts and the governmental or military response thereto;
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cyber-attacks;
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changes in safety, health, environmental, tax and other regulations, or requirements or initiatives including those addressing the impact of global climate change, air emissions or water management;
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other geological, operating and economic considerations; and
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•
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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.
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•
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United States – explores for, produces and markets crude oil and condensate, NGLs and natural gas in the United States;
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•
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International – explores for, produces and markets crude oil and condensate, NGLs and natural gas outside of the United States as well as produces and markets products manufactured from natural gas, such as LNG and methanol, in E.G.
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Crude Oil and Condensate
(mmbbl)
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Natural Gas Liquids
(mmbbl)
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Natural Gas
(bcf)
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Total
(mmboe)
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Total (%)
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Proved Developed Reserves
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U.S.
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304
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122
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825
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563
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47
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%
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E.G.
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30
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19
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649
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158
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13
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%
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Total proved developed reserves (mmboe)
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334
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141
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1,474
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721
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60
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%
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Proved Undeveloped Reserves
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|||||
U.S.
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315
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82
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453
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473
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39
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%
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E.G.
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3
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2
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41
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11
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1
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%
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Total proved undeveloped reserves (mmboe)
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318
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84
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494
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484
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40
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%
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Total Proved Reserves
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U.S.
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619
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204
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1,278
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1,036
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86
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%
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E.G.
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33
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21
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690
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169
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14
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%
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Total proved reserves (mmboe)
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652
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225
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1,968
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1,205
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100
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%
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Total proved reserves (%)
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54
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%
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19
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%
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27
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%
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100
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%
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Productive Wells
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Oil
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Natural Gas
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Service Wells
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Drilling Wells
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Gross
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Net
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Gross
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Net
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Gross
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Net
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Gross
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Net
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||||||||
2019
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||||||||
U.S.
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4,984
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2,195
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1,550
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615
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204
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20
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30
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15
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E.G.
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—
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—
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19
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12
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—
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—
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—
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—
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Total (a)
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4,984
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2,195
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1,569
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627
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204
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20
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30
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15
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2018
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U.S. (b)
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4,630
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2,056
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1,703
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655
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209
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21
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E.G.
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—
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—
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19
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12
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—
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—
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Other International
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62
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22
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11
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4
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24
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8
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Total (c)
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4,692
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2,078
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1,733
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671
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233
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29
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2017
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U.S.
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5,132
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1,905
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1,690
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676
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799
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70
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E.G.
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—
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—
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19
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12
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—
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—
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Libya
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1,071
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175
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7
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2
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94
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16
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Total Africa
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1,071
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175
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26
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14
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94
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16
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Other International
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61
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22
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19
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7
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23
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8
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Total
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6,264
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2,102
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1,735
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697
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916
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94
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(a)
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Other International was removed from 2019 due to the sale of our U.K. business and our 15% non-operated interest in the Atrush block in Kurdistan. See Item 8. Financial Statements and Supplementary Data - Note 5 to the consolidated financial statements for further information.
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(b)
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The 2018 decrease in gross productive oil wells and gross service wells is a result of the sale of non-core, non-operated conventional properties in the United States segment during the third quarter of 2018. See Item 8. Financial Statements and Supplementary Data - Note 5 to the consolidated financial statements for information about these dispositions.
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(c)
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Libya was removed from 2018 due to the sale of our subsidiary in Libya. See Item 8. Financial Statements and Supplementary Data - Note 5 to the consolidated financial statements for further information.
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Development
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Exploratory
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Oil
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Natural
Gas
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Dry
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Total
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Oil
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Natural
Gas
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Dry
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Total
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Total
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|||||||||
2019
|
|
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||||||||||||||
U.S.
|
197
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|
|
28
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|
—
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|
|
225
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|
|
57
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|
|
26
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|
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2
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|
|
85
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|
|
310
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E.G.
|
—
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|
|
—
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|
|
—
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|
|
—
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|
|
—
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|
|
—
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|
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—
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|
|
—
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|
|
—
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Total (a)
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197
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|
|
28
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|
—
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|
|
225
|
|
|
57
|
|
|
26
|
|
|
2
|
|
|
85
|
|
|
310
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2018
|
|
|
|
|
|
|
|
|
|
|
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|
||||||||||||||
U.S.
|
171
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|
|
25
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|
|
—
|
|
|
196
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|
|
66
|
|
|
36
|
|
|
2
|
|
|
104
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|
|
300
|
|
E.G.
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
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|
|
1
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|
|
1
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|
Other International
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
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|
|
—
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|
|
—
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|
|
—
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|
|
—
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Total (b)
|
171
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|
|
25
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|
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—
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|
|
196
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|
|
66
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|
|
36
|
|
|
3
|
|
|
105
|
|
|
301
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S.
|
107
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|
|
27
|
|
|
—
|
|
|
134
|
|
|
88
|
|
|
16
|
|
|
—
|
|
|
104
|
|
|
238
|
|
E.G.
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Libya
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
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|
Total Africa
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other International
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
2
|
|
Total
|
107
|
|
|
27
|
|
|
—
|
|
|
134
|
|
|
88
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|
|
16
|
|
|
2
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|
|
106
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|
|
240
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(a)
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Other International was removed from 2019 due to the sale of our U.K. business and our 15% non-operated interest in the Atrush block in Kurdistan. See Item 8. Financial Statements and Supplementary Data - Note 5 to the consolidated financial statements for further information.
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(b)
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Libya was removed from 2018 due to the sale of our subsidiary in Libya. See Item 8. Financial Statements and Supplementary Data - Note 5 to the consolidated financial statements for further information.
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Developed
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Undeveloped
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Developed and
Undeveloped
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(In thousands)
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Gross
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Net
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Gross
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Net
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Gross
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Net
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||||||
U.S.
|
1,388
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|
|
993
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|
|
391
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|
|
306
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|
|
1,779
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|
|
1,299
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|
E.G.
|
82
|
|
|
67
|
|
|
—
|
|
|
—
|
|
|
82
|
|
|
67
|
|
Total
|
1,470
|
|
|
1,060
|
|
|
391
|
|
|
306
|
|
|
1,861
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|
|
1,366
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December 31,
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|||||||
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2019
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2018
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|
2017
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Net Sales Volumes
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|
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Crude oil and condensate (mbbld) (a)
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|
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|
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United States
|
|
|
|
|
|
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Eagle Ford
|
63
|
|
|
63
|
|
|
59
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|
Bakken
|
86
|
|
|
71
|
|
|
46
|
|
Oklahoma
|
21
|
|
|
18
|
|
|
15
|
|
Northern Delaware
|
16
|
|
|
12
|
|
|
4
|
|
Other U.S.
|
4
|
|
|
7
|
|
|
9
|
|
Africa
|
|
|
|
|
|
|||
E.G.
|
15
|
|
|
17
|
|
|
21
|
|
Libya
|
—
|
|
|
7
|
|
|
19
|
|
Other International (b)
|
5
|
|
|
15
|
|
|
12
|
|
Total
|
210
|
|
|
210
|
|
|
185
|
|
Natural gas liquids (mbbld)
|
|
|
|
|
|
|||
United States
|
|
|
|
|
|
|||
Eagle Ford
|
22
|
|
|
23
|
|
|
21
|
|
Bakken
|
9
|
|
|
7
|
|
|
6
|
|
Oklahoma
|
22
|
|
|
20
|
|
|
14
|
|
Northern Delaware
|
6
|
|
|
4
|
|
|
1
|
|
Other U.S.
|
1
|
|
|
1
|
|
|
1
|
|
Africa
|
|
|
|
|
|
|||
E.G.
|
9
|
|
|
11
|
|
|
11
|
|
Other International (b)
|
—
|
|
|
—
|
|
|
1
|
|
Total
|
69
|
|
|
66
|
|
|
55
|
|
Natural gas (mmcfd) (c)
|
|
|
|
|
|
|||
United States
|
|
|
|
|
|
|||
Eagle Ford
|
130
|
|
|
129
|
|
|
125
|
|
Bakken
|
46
|
|
|
35
|
|
|
25
|
|
Oklahoma
|
210
|
|
|
213
|
|
|
149
|
|
Northern Delaware
|
36
|
|
|
26
|
|
|
9
|
|
Other U.S.
|
16
|
|
|
26
|
|
|
40
|
|
Africa
|
|
|
|
|
|
|||
E.G.
|
365
|
|
|
416
|
|
|
459
|
|
Libya
|
—
|
|
|
5
|
|
|
4
|
|
Other International (b)
|
6
|
|
|
14
|
|
|
22
|
|
Total
|
809
|
|
|
864
|
|
|
833
|
|
Total sales volumes (mboed)
|
|
|
|
|
|
|||
United States
|
|
|
|
|
|
|||
Eagle Ford
|
106
|
|
|
108
|
|
|
101
|
|
Bakken
|
103
|
|
|
84
|
|
|
56
|
|
Oklahoma
|
78
|
|
|
74
|
|
|
54
|
|
Northern Delaware
|
28
|
|
|
20
|
|
|
6
|
|
Other U.S.
|
8
|
|
|
12
|
|
|
17
|
|
Africa
|
|
|
|
|
|
|||
E.G.
|
85
|
|
|
97
|
|
|
109
|
|
Libya
|
—
|
|
|
8
|
|
|
20
|
|
Other International (b)
|
6
|
|
|
17
|
|
|
16
|
|
Total
|
414
|
|
|
420
|
|
|
379
|
|
(a)
|
The amounts correspond with the basis for fiscal settlements with governments, representing equity tanker liftings and direct deliveries of liquid hydrocarbons.
|
(b)
|
Other International sales include sales volumes for the U.K. and the Atrush block in Kurdistan, which were both sold in 2019 and sales volumes for the non-operated Sarsang block in Kurdistan which was sold in 2018. See Item 8. Financial Statements and Supplementary Data - Note 5 to the consolidated financial statements for further information.
|
(c)
|
Includes natural gas acquired for injection and subsequent resale.
|
|
December 31,
|
||||||||||
(Dollars per unit)
|
2019
|
|
2018
|
|
2017
|
||||||
Average Sales Price per Unit (a)
|
|
|
|
|
|
||||||
Crude oil and condensate (bbl)
|
|
|
|
|
|
||||||
United States
|
$
|
55.80
|
|
|
$
|
63.11
|
|
|
$
|
49.35
|
|
Africa
|
|
|
|
|
|
||||||
E.G.
|
48.99
|
|
|
55.28
|
|
|
46.02
|
|
|||
Libya
|
—
|
|
|
73.75
|
|
|
60.72
|
|
|||
Total Africa
|
48.99
|
|
|
60.65
|
|
|
53.11
|
|
|||
Other International (b)
|
64.71
|
|
|
70.39
|
|
|
52.66
|
|
|||
Total
|
$
|
55.54
|
|
|
$
|
63.32
|
|
|
$
|
50.38
|
|
|
|
|
|
|
|
||||||
Natural gas liquids (bbl)
|
|
|
|
|
|
||||||
United States
|
$
|
14.22
|
|
|
$
|
24.54
|
|
|
$
|
20.55
|
|
Africa
|
|
|
|
|
|
||||||
E.G. (d)
|
1.00
|
|
|
1.00
|
|
|
1.00
|
|
|||
Total Africa
|
1.00
|
|
|
1.00
|
|
|
1.00
|
|
|||
Other International (b)
|
37.88
|
|
|
41.66
|
|
|
39.65
|
|
|||
Total
|
$
|
12.46
|
|
|
$
|
20.85
|
|
|
$
|
16.65
|
|
|
|
|
|
|
|
||||||
Natural gas (mcf)
|
|
|
|
|
|
||||||
United States
|
$
|
2.18
|
|
|
$
|
2.65
|
|
|
$
|
2.84
|
|
Africa
|
|
|
|
|
|
||||||
E.G. (c)
|
0.24
|
|
|
0.24
|
|
|
0.24
|
|
|||
Libya
|
—
|
|
|
4.57
|
|
|
5.03
|
|
|||
Total Africa
|
0.24
|
|
|
0.30
|
|
|
0.28
|
|
|||
Other International (b)
|
5.67
|
|
|
8.03
|
|
|
6.28
|
|
|||
Total
|
$
|
1.33
|
|
|
$
|
1.58
|
|
|
$
|
1.51
|
|
|
|
|
|
|
|
||||||
Average Production Costs per Unit (d)
|
|
|
|
|
|
||||||
U.S.
|
$
|
9.08
|
|
|
$
|
9.83
|
|
|
$
|
9.49
|
|
E.G.
|
2.34
|
|
|
1.91
|
|
|
2.12
|
|
|||
Libya
|
—
|
|
|
4.35
|
|
|
6.08
|
|
|||
Other International (b)
|
30.42
|
|
|
30.02
|
|
|
26.61
|
|
|||
Total
|
$
|
8.03
|
|
|
$
|
8.68
|
|
|
$
|
7.90
|
|
(a)
|
Excludes gains or losses on commodity derivative instruments.
|
(b)
|
Other International sales include sales volumes for the U.K. and the Atrush block in Kurdistan, which were both sold in 2019 and sales volumes for the non-operated Sarsang block in Kurdistan which was sold in 2018. See Item 8. Financial Statements and Supplementary Data - Note 5 to the consolidated financial statements for further information.
|
(c)
|
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 segment.
|
(d)
|
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.
|
|
|
2020
|
|
2021
|
|
2022
|
|
Thereafter
|
|
Commitment Period Through
|
||||
Eagle Ford
|
|
|
|
|
|
|
|
|
|
|
||||
Crude and condensate (mbbld)
|
|
51
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2020
|
Natural gas (mmcfd)
|
|
120
|
|
|
56
|
|
|
36
|
|
|
—
|
|
|
2022
|
Bakken
|
|
|
|
|
|
|
|
|
|
|
||||
Crude and condensate (mbbld)
|
|
10
|
|
|
10
|
|
|
10
|
|
|
5 - 10
|
|
|
2027
|
Natural gas (mmcfd)
|
|
3
|
|
|
3
|
|
|
3
|
|
|
3 - 25
|
|
|
2028
|
Other United States
|
|
|
|
|
|
|
|
|
|
|
||||
Natural gas (mmcfd)
|
|
4
|
|
|
4
|
|
|
1
|
|
|
—
|
|
|
2022
|
Lee M. Tillman
|
|
58
|
|
Chairman, President and Chief Executive Officer
|
Dane E. Whitehead
|
|
58
|
|
Executive Vice President and Chief Financial Officer
|
T. Mitch Little
|
|
56
|
|
Executive Vice President—Operations
|
Reginald D. Hedgebeth
|
|
52
|
|
Executive Vice President, General Counsel and Chief Administrative Officer
|
Patrick J. Wagner
|
|
55
|
|
Executive Vice President—Corporate Development and Strategy
|
Gary E. Wilson
|
|
58
|
|
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 and natural gas;
|
•
|
the cost of exploring for, developing and producing crude oil and condensate, NGLs and natural gas;
|
•
|
the ability of the members of OPEC and certain non-OPEC members, such as Russia, to agree to and maintain production controls;
|
•
|
the production levels of non-OPEC countries, including production levels in the shale plays in the United States;
|
•
|
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, such as nuclear, hydroelectric, wind or solar;
|
•
|
the effect of conservation efforts;
|
•
|
epidemics or pandemics;
|
•
|
technological advances affecting energy consumption and energy supply;
|
•
|
domestic and foreign governmental regulations and taxes, including further legislation requiring, subsidizing or providing tax benefits for the use of alternative energy sources and fuels; and
|
•
|
general economic conditions worldwide.
|
•
|
reducing the amount of crude oil and condensate, NGLs and natural gas 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 and natural gas; and
|
•
|
increasing the costs of obtaining capital, such as equity and short- and long-term debt.
|
|
2019 SEC Pricing
|
||
WTI Crude oil (per bbl)
|
$
|
55.69
|
|
Henry Hub natural gas (per mmbtu)
|
$
|
2.58
|
|
Brent crude oil (per bbl)
|
$
|
63.15
|
|
Mont Belvieu NGLs (per bbl)
|
$
|
18.41
|
|
•
|
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 analogous producing areas;
|
•
|
the assumed impacts of regulation by governmental agencies;
|
•
|
assumptions concerning future operating costs, 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 and natural gas in promising areas;
|
•
|
drilling success;
|
•
|
the ability to complete 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;
|
•
|
inflation in exploration and drilling costs;
|
•
|
fires, explosions, blowouts or surface cratering;
|
•
|
lack of, or disruption in, 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.
|
•
|
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;
|
•
|
a financial covenant in our Credit Agreement stipulates that our total debt to capitalization ratio will not exceed 65% as of the last day of any fiscal quarter, and if exceeded, may make additional borrowings more expensive and affect our ability to plan for and react to changes in the economy and our industry;
|
•
|
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.
|
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(b)
|
|
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs(b)
|
||||||
10/01/2019 - 10/31/2019
|
1,619,594
|
|
|
$
|
11.65
|
|
|
1,567,951
|
|
|
$
|
1,452,022,646
|
|
11/01/2019 - 11/30/2019
|
155,575
|
|
|
$
|
11.56
|
|
|
150,386
|
|
|
$
|
1,450,286,198
|
|
12/01/2019 - 12/31/2019
|
3,515,651
|
|
|
$
|
12.86
|
|
|
3,514,490
|
|
|
$
|
1,405,076,614
|
|
Total
|
5,290,820
|
|
|
$
|
12.45
|
|
|
5,232,827
|
|
|
|
(a)
|
57,993 shares of restricted stock were delivered by employees to Marathon Oil, upon vesting, to satisfy tax withholding requirements.
|
(b)
|
In January 2006, we announced a $2 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 billion in July 2007, by $1.2 billion in December 2013 and by $950 million in July 2019 for a total authorized amount of $7.2 billion.
|
|
Year Ended December 31,
|
||||||||||||||||||
(In millions, except per share data)
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Statement of Income Data(a)
|
|
|
|
|
|
|
|
|
|
||||||||||
Total revenues and other income
|
$
|
5,190
|
|
|
$
|
6,582
|
|
|
$
|
4,765
|
|
|
$
|
3,787
|
|
|
$
|
4,953
|
|
Income (loss) from continuing operations
|
480
|
|
|
1,096
|
|
|
(830
|
)
|
|
(2,087
|
)
|
|
(1,701
|
)
|
|||||
Discontinued operations(b)
|
—
|
|
|
—
|
|
|
(4,893
|
)
|
|
(53
|
)
|
|
(503
|
)
|
|||||
Net income (loss)
|
480
|
|
|
1,096
|
|
|
(5,723
|
)
|
|
(2,140
|
)
|
|
(2,204
|
)
|
|||||
Per Share Data(a)
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) from continuing operations
|
$
|
0.59
|
|
|
$
|
1.30
|
|
|
$
|
(0.97
|
)
|
|
$
|
(2.55
|
)
|
|
$
|
(2.51
|
)
|
Discontinued operations(b)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(5.76
|
)
|
|
$
|
(0.06
|
)
|
|
$
|
(0.75
|
)
|
Net income (loss)
|
$
|
0.59
|
|
|
$
|
1.30
|
|
|
$
|
(6.73
|
)
|
|
$
|
(2.61
|
)
|
|
$
|
(3.26
|
)
|
Diluted:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) from continuing operations
|
$
|
0.59
|
|
|
$
|
1.29
|
|
|
$
|
(0.97
|
)
|
|
$
|
(2.55
|
)
|
|
$
|
(2.51
|
)
|
Discontinued operations(b)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(5.76
|
)
|
|
$
|
(0.06
|
)
|
|
$
|
(0.75
|
)
|
Net income (loss)
|
$
|
0.59
|
|
|
$
|
1.29
|
|
|
$
|
(6.73
|
)
|
|
$
|
(2.61
|
)
|
|
$
|
(3.26
|
)
|
Statement of Cash Flows Data
|
|
|
|
|
|
|
|
|
|
||||||||||
Additions to property, plant and equipment related to continuing operations
|
$
|
(2,550
|
)
|
|
$
|
(2,753
|
)
|
|
$
|
(1,974
|
)
|
|
$
|
(1,204
|
)
|
|
$
|
(3,485
|
)
|
Dividends paid
|
(162
|
)
|
|
(169
|
)
|
|
(170
|
)
|
|
(162
|
)
|
|
(460
|
)
|
|||||
Dividends per share
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
$
|
0.68
|
|
Balance Sheet Data at December 31
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
20,245
|
|
|
$
|
21,321
|
|
|
$
|
22,012
|
|
|
$
|
31,094
|
|
|
$
|
32,311
|
|
Total long-term debt, including capitalized leases
|
5,501
|
|
|
5,499
|
|
|
5,494
|
|
|
6,581
|
|
|
7,268
|
|
|||||
Leases:(c)
|
|
|
|
|
|
|
|
|
|
||||||||||
ROU asset
|
199
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Current portion of long-term lease liability
|
101
|
|
|
62
|
|
|
29
|
|
|
30
|
|
|
31
|
|
|||||
Long-term lease liability
|
107
|
|
|
155
|
|
|
90
|
|
|
146
|
|
|
147
|
|
(a)
|
December 31, 2016 includes the increase of a valuation allowance on certain of our deferred tax assets for $1,346 million.
|
(b)
|
We closed on the sale of our Canada business in 2017 and have reflected this business as Discontinued Operations in the periods presented.
|
(c)
|
Note the prospective adoption of the lease accounting standard on January 1, 2019. Therefore, current and long-term portions for leases in years 2018 through 2015 do not reflect adoption of the new lease accounting standard. See Item 8. Financial Statements and Supplementary Data - Note 2 and Note 13 to the consolidated financial statements for further information.
|
|
Year Ended December 31,
|
||||||||||||||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Proved property impairment
|
$
|
24
|
|
|
$
|
75
|
|
|
$
|
229
|
|
|
$
|
67
|
|
|
$
|
381
|
|
Unproved property impairment
|
98
|
|
|
208
|
|
|
246
|
|
|
195
|
|
|
655
|
|
|||||
Goodwill impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
340
|
|
•
|
United States – explores for, produces and markets crude oil and condensate, NGLs and natural gas in the United States;
|
•
|
International – explores for, produces and markets crude oil and condensate, NGLs and natural gas outside of the United States and produces and markets products manufactured from natural gas, such as LNG and methanol, in E.G.
|
•
|
In the first quarter of 2019, we closed the sale of our working interest in the Droshky field (Gulf of Mexico) for a pre-tax gain of $42 million.
|
•
|
In the second quarter of 2019, we closed on the sale of our 15% non-operated interest in the Atrush block in Kurdistan for proceeds of $63 million, before closing adjustments.
|
•
|
In July 2019, we closed on the sale of our U.K. business for proceeds of approximately $95 million, reflecting the assumption by the buyer of working capital and cash equivalent balances, asset retirement obligations of $966 million, as well as pension obligations.
|
•
|
In the third quarter of 2019, we secured a 25% non-operated working interest partner in our Louisiana Austin Chalk acreage.
|
•
|
During the fourth quarter of 2019, we acquired approximately 18,000 net acres in the Eagle Ford for $191 million and approximately 40,000 acres in a Texas Delaware oil play in West Texas for $106 million.
|
•
|
In July 2019, the Board of Directors authorized a $950 million increase to our share purchase program. During 2019, we returned additional capital to shareholders by acquiring 24 million of common shares at a cost of $345 million, with $1.4 billion of repurchase authorization remaining at year-end.
|
•
|
Cash provided by operating activities from continuing operations decreased by 15%, compared to the same period last year, to $2.7 billion primarily as a result of decreased commodity price realizations.
|
•
|
During the fourth quarter 2019, completed three leverage neutral finance transactions that extend maturities, generate annual cash cost savings, and reflect our commitment to maintaining a strong balance sheet and investment grade credit ratings at all primary rating agencies.
|
•
|
Total net sales volumes for the year were 414 mboed, including 323 mboed in the U.S. Our U.S. net sales volumes increased 8% and our wells to sales increased 11% compared to 2018.
|
•
|
Added proved reserves of 110 mmboe for a reserve replacement ratio of 74%.
|
•
|
Our net income per share from continuing operations was $0.59 in 2019 as compared to a net income per share of $1.30 last year. Included in 2019 net income are:
|
◦
|
A decrease in revenues of approximately 14% compared to 2018, as a result of decreased commodity price realizations and lower net sales volumes in our International segment due to dispositions, partially offset by
|
◦
|
Our net gain on disposal of assets decreased $269 million in 2019 primarily due to the sale of our Libya subsidiary for a pre-tax gain of $255 million in 2018.
|
◦
|
Exploration and impairment expenses decreased by $191 million to $173 million, year over year, primarily a result of non-cash impairment charges on proved and unproved properties in the prior year. See Item 8. Financial Statements and Supplementary Data - Note 11 to the consolidated financial statements for further detail.
|
◦
|
Production expense decreased 15% during 2019 as a result of dispositions in our International segment and our focus on reducing costs in our U.S. resource plays.
|
◦
|
Income tax benefit was $88 million in 2019 primarily as a result of the $126 million settlement of the 2010-2011 U.S. Federal Tax Audit, primarily related to AMT credits. See Consolidated Results of Operations: 2019 compared to 2018 section below and Item 8. Financial Statements and Supplementary Data - Note 8 and Note 25 to the consolidated financial statements for further detail.
|
(In millions)
|
Capital Budget
|
||
United States(a)
|
$
|
2,370
|
|
International and corporate other(b)
|
30
|
|
|
Total Capital Budget
|
$
|
2,400
|
|
(a)
|
Includes approximately $200 million of spend to fund REx.
|
(b)
|
International and corporate other includes our International segment and other corporate items.
|
Net Sales Volumes
|
2019
|
|
Increase
(Decrease) |
|
2018
|
|
Increase
(Decrease) |
|
2017
|
|||
United States (mboed)
|
323
|
|
|
8
|
%
|
|
298
|
|
27
|
%
|
|
234
|
International (mboed)(a)
|
91
|
|
|
(25
|
)%
|
|
122
|
|
(16
|
)%
|
|
145
|
Total continuing operations (mboed)
|
414
|
|
|
(1
|
)%
|
|
420
|
|
11
|
%
|
|
379
|
(a)
|
We closed on the sale of our Libya subsidiary in the first quarter of 2018, our interest in the Atrush block in Kurdistan in the second quarter of 2019 and our U.K. business in the third quarter of 2019. See Item 8. Financial Statements and Supplementary Data - Note 5 to the consolidated financial statements for further information on dispositions.
|
Net Sales Volumes
|
2019
|
|
Increase
(Decrease) |
|
2018
|
|
Increase
(Decrease) |
|
2017
|
|||||
Equivalent Barrels (mboed)
|
|
|
|
|
|
|
|
|
|
|||||
Eagle Ford
|
106
|
|
|
(2
|
)%
|
|
108
|
|
|
7
|
%
|
|
101
|
|
Bakken
|
103
|
|
|
23
|
%
|
|
84
|
|
|
50
|
%
|
|
56
|
|
Oklahoma
|
78
|
|
|
5
|
%
|
|
74
|
|
|
37
|
%
|
|
54
|
|
Northern Delaware
|
28
|
|
|
40
|
%
|
|
20
|
|
|
233
|
%
|
|
6
|
|
Other United States
|
8
|
|
|
(33
|
)%
|
|
12
|
|
|
(29
|
)%
|
|
17
|
|
Total United States (mboed)
|
323
|
|
|
8
|
%
|
|
298
|
|
|
27
|
%
|
|
234
|
|
Sales Mix - U.S. Resource Plays - 2019
|
Eagle Ford
|
|
Bakken
|
|
Oklahoma
|
|
Northern Delaware
|
|
Total
|
Crude oil and condensate
|
59%
|
|
84%
|
|
27%
|
|
58%
|
|
59%
|
Natural gas liquids
|
21%
|
|
9%
|
|
28%
|
|
20%
|
|
18%
|
Natural gas
|
20%
|
|
7%
|
|
45%
|
|
22%
|
|
23%
|
•
|
Eagle Ford – In 2019, our net sales volumes were 106 mboed including oil sales of 63 mbbld. We brought 146 gross company-operated wells to sales across Karnes, Atascosa, and Gonzales counties with strong initial production rates. The third and fourth quarters of 2019 represented the two strongest quarters in the history of the asset on a 30-day initial production basis for oil. Eagle Ford fourth quarter oil mix increased to 63%, up from 57% in the prior-year quarter. Completed well costs during fourth quarter averaged $5.1 million, or 8% below the 2018 average.
|
•
|
Bakken – In 2019, our net sales volumes of 103 mboed with oil sales volume of 86 mbbld. We brought 105 gross company-operated wells to sales in 2019. Fourth quarter 2019 was characterized by strong operations with the asset establishing new quarterly records for both drilling feet per day and completion stages per day. We continue to deliver capital efficiency and accretive financial returns, highlighted by a recent four-well pad in Myrmidon at an average completed well cost of $4.3 million. Wells to sales during the fourth quarter 2019 had an average completed well cost below $5 million, 17% below the 2018 average.
|
•
|
Oklahoma – In 2019, our net sales volumes were 78 mboed including oil sales volumes of 21 mbbld. During the fourth quarter, oil mix rose to 29% in 2019 from 24% in the fourth quarter 2018. We brought 69 gross company-operated wells to sales in 2019, including nine wells targeting the Springer formation in the SCOOP in the fourth quarter 2019. The nine Springer wells are demonstrating solid productivity.
|
•
|
Northern Delaware – Our 2019 net sales volumes were 28 mboed with oil sales volumes of 16 mbbld. We brought 54 gross company-operated wells to sales, with a focus on the delineation of our Red Hills acreage in 2019. Since this transition to Red Hills delineation, we have brought online nine Upper Wolfcamp wells and four Bone Spring wells. We continue to advance learnings, reduce cost structure, and improve margins, exiting the year with about 90% of water and oil on pipe.
|
Net Sales Volumes
|
2019
|
|
Increase
(Decrease) |
|
2018
|
|
Increase
(Decrease) |
|
2017
|
|||||
Equivalent Barrels (mboed)
|
|
|
|
|
|
|
|
|
|
|||||
Equatorial Guinea
|
85
|
|
|
(12
|
)%
|
|
97
|
|
|
(11
|
)%
|
|
109
|
|
United Kingdom(a)
|
5
|
|
|
(62
|
)%
|
|
13
|
|
|
(7
|
)%
|
|
14
|
|
Libya
|
—
|
|
|
(100
|
)%
|
|
8
|
|
|
(60
|
)%
|
|
20
|
|
Other International
|
1
|
|
|
(75
|
)%
|
|
4
|
|
|
100
|
%
|
|
2
|
|
Total International
|
91
|
|
|
(25
|
)%
|
|
122
|
|
|
(16
|
)%
|
|
145
|
|
Equity Method Investees
|
|
|
|
|
|
|
|
|
|
|
|
|||
LNG (mtd)
|
4,933
|
|
|
(15
|
)%
|
|
5,805
|
|
|
(10
|
)%
|
|
6,423
|
|
Methanol (mtd)
|
1,082
|
|
|
(13
|
)%
|
|
1,241
|
|
|
(10
|
)%
|
|
1,374
|
|
Condensate and LPG (boed)
|
11,104
|
|
|
(15
|
)%
|
|
13,034
|
|
|
(10
|
)%
|
|
14,501
|
|
•
|
Equatorial Guinea – Net sales volumes in 2019 were lower than 2018 as a result of the planned triennial turnaround completed in 2019 and natural field decline.
|
•
|
United Kingdom – During 2019, we closed on the sale of our U.K. business. See Note 5 to the consolidated financial statements for further information.
|
•
|
Libya – During the first quarter of 2018, we closed on the sale of our subsidiary in Libya. See Note 5 to the consolidated financial statements for further information.
|
•
|
Equity Method Investees – Net sales volumes in 2019 are tied to the volumes in Equatorial Guinea which were lower in the current year as noted above.
|
|
2019
|
|
Increase (Decrease)
|
|
2018
|
|
Increase (Decrease)
|
|
2017
|
||||||||
Average Price Realizations(a)
|
|
|
|
|
|
|
|
|
|
||||||||
Crude oil and condensate (per bbl)(b)
|
$
|
55.80
|
|
|
(12
|
)%
|
|
$
|
63.11
|
|
|
28
|
%
|
|
$
|
49.35
|
|
Natural gas liquids (per bbl)
|
14.22
|
|
|
(42
|
)%
|
|
24.54
|
|
|
19
|
%
|
|
20.55
|
|
|||
Natural gas (per mcf)(c)
|
2.18
|
|
|
(18
|
)%
|
|
2.65
|
|
|
(7
|
)%
|
|
2.84
|
|
|||
Benchmarks
|
|
|
|
|
|
|
|
|
|
|
|
||||||
WTI crude oil average of daily prices (per bbl)
|
$
|
57.04
|
|
|
(12
|
)%
|
|
$
|
64.90
|
|
|
28
|
%
|
|
$
|
50.85
|
|
Magellan East Houston (“MEH”) crude oil average of daily prices (per bbl)(d)
|
61.96
|
|
|
|
|
|
|
|
|
|
|||||||
LLS crude oil average of daily prices (per bbl)(d)
|
|
|
|
|
|
70.04
|
|
|
30
|
%
|
|
54.04
|
|
||||
Mont Belvieu NGLs (per bbl)(e)
|
17.81
|
|
|
(33
|
)%
|
|
26.75
|
|
|
21
|
%
|
|
22.04
|
|
|||
Henry Hub natural gas settlement date average (per mmbtu)
|
2.63
|
|
|
(15
|
)%
|
|
3.09
|
|
|
(1
|
)%
|
|
3.11
|
|
(a)
|
Excludes gains or losses on commodity derivative instruments.
|
(b)
|
Inclusion of realized gains (losses) on crude oil derivative instruments would have impacted average price realizations by $0.67 per bbl, $(4.60) per bbl, and $0.75 per bbl for 2019, 2018, and 2017.
|
(c)
|
Inclusion of realized gains (losses) on natural gas derivative instruments would have a minimal impact on average price realizations for the periods presented.
|
(d)
|
Benchmark change due to industry shift to MEH in the first quarter of 2019.
|
(e)
|
Bloomberg Finance LLP: Y-grade Mix NGL of 55% ethane, 25% propane, 5% butane, 8% isobutane and 7% natural gasoline.
|
|
2019
|
|
Increase (Decrease)
|
|
2018
|
|
Increase (Decrease)
|
|
2017
|
||||||||
Average Price Realizations
|
|
|
|
|
|
|
|
|
|
||||||||
Crude oil and condensate (per bbl)
|
$
|
53.09
|
|
|
(17
|
)%
|
|
$
|
64.25
|
|
|
21
|
%
|
|
$
|
53.05
|
|
Natural gas liquids (per bbl)
|
1.40
|
|
|
(38
|
)%
|
|
2.27
|
|
|
(28
|
)%
|
|
3.15
|
|
|||
Natural gas (per mcf)
|
0.33
|
|
|
(39
|
)%
|
|
0.54
|
|
|
(2
|
)%
|
|
0.55
|
|
|||
Benchmark
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Brent (Europe) crude oil (per bbl)(a)
|
$
|
64.36
|
|
|
(9
|
)%
|
|
$
|
71.06
|
|
|
31
|
%
|
|
$
|
54.25
|
|
(a)
|
Average of monthly prices obtained from the United States Energy Information Agency website.
|
|
Year Ended December 31,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Revenues from contracts with customers
|
|
|
|
||||
United States
|
$
|
4,602
|
|
|
$
|
4,886
|
|
International
|
461
|
|
|
1,016
|
|
||
Segment revenues from contracts with customers
|
$
|
5,063
|
|
|
$
|
5,902
|
|
|
Year Ended December 31,
|
|||||||||
(In millions)
|
2019
|
|
2018
|
|
Increase (Decrease)
|
|||||
Exploration Expenses
|
|
|
|
|
|
|||||
Unproved property impairments
|
$
|
98
|
|
|
$
|
208
|
|
|
(53
|
)%
|
Dry well costs
|
16
|
|
|
47
|
|
|
(66
|
)%
|
||
Geological and geophysical
|
18
|
|
|
21
|
|
|
(14
|
)%
|
||
Other
|
17
|
|
|
13
|
|
|
31
|
%
|
||
Total exploration expenses
|
$
|
149
|
|
|
$
|
289
|
|
|
(48
|
)%
|
(In millions/$ per boe)
|
2019
|
2018
|
Increase (Decrease)
|
|
2019
|
2018
|
Increase (Decrease)
|
||||||||||
DD&A Expense and DD&A Expense Rate
|
Expense
|
|
Rate
|
||||||||||||||
United States
|
$
|
2,250
|
|
$
|
2,217
|
|
1
|
%
|
|
$
|
19.07
|
|
$
|
20.39
|
|
(6
|
)%
|
International
|
$
|
121
|
|
$
|
197
|
|
(39
|
)%
|
|
$
|
3.61
|
|
$
|
4.44
|
|
(19
|
)%
|
|
Year Ended December 31,
|
|||||||||
(In millions)
|
2019
|
|
2018
|
|
Increase (Decrease)
|
|||||
United States
|
$
|
675
|
|
|
$
|
608
|
|
|
11
|
%
|
International
|
233
|
|
|
473
|
|
|
(51
|
)%
|
||
Segment income
|
908
|
|
|
1,081
|
|
|
(16
|
)%
|
||
Items not allocated to segments, net of income taxes(a)
|
(428
|
)
|
|
15
|
|
|
(2,953
|
)%
|
||
Net income
|
$
|
480
|
|
|
$
|
1,096
|
|
|
(56
|
)%
|
(a)
|
See Item 8. Financial Statements and Supplementary Data - Note 7 to the consolidated financial statements for further detail about items not allocated to segments.
|
•
|
We returned capital to shareholders by executing $345 million of share repurchases along with $162 million in dividend payments.
|
•
|
Asset acquisitions during the year of $293 million were paid with cash on hand.
|
•
|
Cash and cash equivalents decreased $604 million to $858 million at December 31, 2019.
|
•
|
During the fourth quarter, we completed three leverage neutral finance transactions which extend maturities and generate annual cash savings.
|
|
Year Ended December 31,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Sources of cash and cash equivalents
|
|
|
|
|
|
||
Operating activities
|
$
|
2,749
|
|
|
$
|
3,234
|
|
Disposal of assets, net of cash transferred to the buyer
|
(76
|
)
|
|
1,264
|
|
||
Borrowings
|
600
|
|
|
—
|
|
||
Other
|
65
|
|
|
93
|
|
||
Total sources of cash and cash equivalents
|
$
|
3,338
|
|
|
$
|
4,591
|
|
Uses of cash and cash equivalents
|
|
|
|
||||
Additions to property, plant and equipment
|
$
|
(2,550
|
)
|
|
$
|
(2,753
|
)
|
Additions to other assets
|
36
|
|
|
(26
|
)
|
||
Acquisitions, net of cash acquired
|
(293
|
)
|
|
(25
|
)
|
||
Purchases of common stock
|
(362
|
)
|
|
(713
|
)
|
||
Debt repayments
|
(600
|
)
|
|
—
|
|
||
Dividends paid
|
(162
|
)
|
|
(169
|
)
|
||
Other
|
(11
|
)
|
|
(6
|
)
|
||
Total uses of cash and cash equivalents
|
$
|
(3,942
|
)
|
|
$
|
(3,692
|
)
|
|
Year Ended December 31,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
United States (a)
|
$
|
2,550
|
|
|
$
|
2,620
|
|
International
|
16
|
|
|
39
|
|
||
Corporate
|
25
|
|
|
26
|
|
||
Total capital expenditures
|
2,591
|
|
|
2,685
|
|
||
Change in capital expenditure accrual(a)
|
(41
|
)
|
|
68
|
|
||
Total use of cash and cash equivalents for property, plant and equipment
|
$
|
2,550
|
|
|
$
|
2,753
|
|
(a)
|
The change in capital expenditure accrual includes activity for assets classified as held for sale for the years presented.
|
(In millions)
|
Total
|
|
2020
|
|
2021-
2022
|
|
2023-
2024
|
|
Later
Years
|
||||||||||
Short and long-term debt (includes interest)(a)
|
$
|
8,320
|
|
|
$
|
252
|
|
|
$
|
1,538
|
|
|
$
|
1,016
|
|
|
$
|
5,514
|
|
Lease obligations(b)
|
276
|
|
|
114
|
|
|
98
|
|
|
6
|
|
|
58
|
|
|||||
Purchase obligations:
|
|
|
|
|
|
|
|
|
|
||||||||||
Oil and gas activities(c)
|
52
|
|
|
42
|
|
|
2
|
|
|
1
|
|
|
7
|
|
|||||
Service and materials contracts(d)
|
126
|
|
|
69
|
|
|
54
|
|
|
3
|
|
|
—
|
|
|||||
Transportation and related contracts
|
1,872
|
|
|
225
|
|
|
520
|
|
|
476
|
|
|
651
|
|
|||||
Other (e)
|
33
|
|
|
29
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|||||
Total purchase obligations
|
2,083
|
|
|
365
|
|
|
580
|
|
|
480
|
|
|
658
|
|
|||||
Other long-term liabilities reported in the consolidated balance sheet(f)
|
410
|
|
|
32
|
|
|
52
|
|
|
48
|
|
|
278
|
|
|||||
Total contractual cash obligations(g)
|
$
|
11,089
|
|
|
$
|
763
|
|
|
$
|
2,268
|
|
|
$
|
1,550
|
|
|
$
|
6,508
|
|
(a)
|
Includes anticipated cash payments for interest of $252 million for 2020, $503 million for 2021-2022, $415 million for 2023-2024 and $1.6 billion for the remaining years for a total of $2.8 billion.
|
(b)
|
Includes project costs incurred as of December 31, 2019 for new build-to-suit office building in Houston, Texas. See Item 8. Financial Statements and Supplementary Data – Note 13 to the consolidated financial statements and Off-Balance Sheet Arrangements section below.
|
(c)
|
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.
|
(d)
|
Service and materials contracts include contracts to purchase services such as utilities, supplies and various other maintenance and operating services.
|
(e)
|
Includes any drilling rigs and fracturing crews that are not considered lease obligations.
|
(f)
|
Primarily includes obligations for pension and other postretirement benefits including medical and life insurance. We have estimated projected funding requirements through 2027. Although unrecognized tax benefits are not a contractual obligation, they are presented in this table because they represent potential demands on our liquidity.
|
(g)
|
This table does not include the estimated discounted liability for dismantlement, abandonment and restoration costs of oil and gas properties of $254 million. See Item 8. Financial Statements and Supplementary Data – Note 12 to the consolidated financial statements.
|
|
2019 SEC Pricing
|
||
WTI Crude oil (per bbl)
|
$
|
55.69
|
|
Henry Hub natural gas (per mmbtu)
|
$
|
2.58
|
|
Brent crude oil (per bbl)
|
$
|
63.15
|
|
Mont Belvieu NGLs (per bbl)
|
$
|
18.41
|
|
|
Impact of a 10% Increase in Proved Reserves
|
|
Impact of a 10% Decrease in Proved Reserves
|
||||||||||||
(In millions, except per boe)
|
DD&A per boe
|
|
Pretax Income
|
|
DD&A per boe
|
|
Pretax Income
|
||||||||
United States
|
$
|
(1.73
|
)
|
|
$
|
205
|
|
|
$
|
2.12
|
|
|
$
|
(250
|
)
|
International
|
$
|
(0.33
|
)
|
|
$
|
11
|
|
|
$
|
0.40
|
|
|
$
|
(13
|
)
|
•
|
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.
|
•
|
assets and liabilities acquired in a business combination;
|
•
|
assets acquired in an asset acquisition;
|
•
|
impairment assessments of long-lived assets;
|
•
|
impairment assessments of goodwill;
|
•
|
recorded value of derivative instruments; and
|
•
|
recorded value of pension plan assets.
|
•
|
Future crude oil and condensate, NGLs and natural gas 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 and natural gas prices and estimates of such future prices are inherently imprecise. See Item 1A. Risk Factors for further discussion on commodity prices.
|
•
|
Estimated quantities of crude oil and condensate, NGLs and natural gas. Such quantities are based on a combination of proved reserves and risk-weighted probable reserves and resources such that the combined volumes represent the most likely expectation of recovery. See Item 1A. Risk Factors for further discussion on reserves.
|
•
|
Expected timing of production. Production forecasts are the outcome of engineering studies which estimate reserves, as well as expected capital 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
|
(In millions)
|
Hypothetical Price Increase of 10%
|
|
Hypothetical Price Decrease of 10%
|
||||
Crude oil derivatives
|
$
|
(65
|
)
|
|
$
|
50
|
|
Natural gas derivatives
|
(1
|
)
|
|
—
|
|
||
Total
|
$
|
(66
|
)
|
|
$
|
50
|
|
|
Page
|
|
|
/s/ Lee M. Tillman
|
|
/s/ Dane E. Whitehead
|
|
Chairman, President and Chief Executive Officer
|
|
Executive Vice President and Chief Financial Officer
|
|
/s/ Lee M. Tillman
|
|
/s/ Dane E. Whitehead
|
|
Chairman, President and Chief Executive Officer
|
|
Executive Vice President and Chief Financial Officer
|
|
|
Year Ended December 31,
|
||||||||||
(In millions, except per share data)
|
2019
|
|
2018
|
|
2017
|
||||||
Revenues and other income:
|
|
|
|
|
|
||||||
Revenues from contracts with customers
|
$
|
5,063
|
|
|
$
|
5,902
|
|
|
$
|
4,247
|
|
Net loss on commodity derivatives
|
(72
|
)
|
|
(14
|
)
|
|
(36
|
)
|
|||
Marketing revenues
|
—
|
|
|
—
|
|
|
162
|
|
|||
Income from equity method investments
|
87
|
|
|
225
|
|
|
256
|
|
|||
Net gain on disposal of assets
|
50
|
|
|
319
|
|
|
58
|
|
|||
Other income
|
62
|
|
|
150
|
|
|
78
|
|
|||
Total revenues and other income
|
5,190
|
|
|
6,582
|
|
|
4,765
|
|
|||
Costs and expenses:
|
|
|
|
|
|
||||||
Production
|
712
|
|
|
842
|
|
|
716
|
|
|||
Marketing, including purchases from related parties
|
—
|
|
|
—
|
|
|
168
|
|
|||
Shipping, handling and other operating
|
605
|
|
|
575
|
|
|
431
|
|
|||
Exploration
|
149
|
|
|
289
|
|
|
409
|
|
|||
Depreciation, depletion and amortization
|
2,397
|
|
|
2,441
|
|
|
2,372
|
|
|||
Impairments
|
24
|
|
|
75
|
|
|
229
|
|
|||
Taxes other than income
|
311
|
|
|
299
|
|
|
183
|
|
|||
General and administrative
|
356
|
|
|
394
|
|
|
371
|
|
|||
Total costs and expenses
|
4,554
|
|
|
4,915
|
|
|
4,879
|
|
|||
Income (loss) from operations
|
636
|
|
|
1,667
|
|
|
(114
|
)
|
|||
Net interest and other
|
(244
|
)
|
|
(226
|
)
|
|
(270
|
)
|
|||
Other net periodic benefit costs
|
3
|
|
|
(14
|
)
|
|
(19
|
)
|
|||
Loss on early extinguishment of debt
|
(3
|
)
|
|
—
|
|
|
(51
|
)
|
|||
Income (loss) from continuing operations before income taxes
|
392
|
|
|
1,427
|
|
|
(454
|
)
|
|||
Provision (benefit) for income taxes
|
(88
|
)
|
|
331
|
|
|
376
|
|
|||
Income (loss) from continuing operations
|
480
|
|
|
1,096
|
|
|
(830
|
)
|
|||
Loss from discontinued operations
|
—
|
|
|
—
|
|
|
(4,893
|
)
|
|||
Net income (loss)
|
$
|
480
|
|
|
$
|
1,096
|
|
|
$
|
(5,723
|
)
|
Per basic share:
|
|
|
|
|
|
||||||
Income (loss) from continuing operations
|
$
|
0.59
|
|
|
$
|
1.30
|
|
|
$
|
(0.97
|
)
|
Loss from discontinued operations
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(5.76
|
)
|
Net income (loss)
|
$
|
0.59
|
|
|
$
|
1.30
|
|
|
$
|
(6.73
|
)
|
Per diluted share:
|
|
|
|
|
|
||||||
Income (loss) from continuing operations
|
$
|
0.59
|
|
|
$
|
1.29
|
|
|
$
|
(0.97
|
)
|
Loss from discontinued operations
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(5.76
|
)
|
Net income (loss)
|
$
|
0.59
|
|
|
$
|
1.29
|
|
|
$
|
(6.73
|
)
|
Weighted average common shares outstanding:
|
|
|
|
|
|
||||||
Basic
|
810
|
|
|
846
|
|
|
850
|
|
|||
Diluted
|
810
|
|
|
847
|
|
|
850
|
|
|
Year Ended December 31,
|
||||||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Net income (loss)
|
$
|
480
|
|
|
$
|
1,096
|
|
|
$
|
(5,723
|
)
|
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
||||||
Postretirement and postemployment plans:
|
|
|
|
|
|
||||||
Change in actuarial gain and other
|
54
|
|
|
117
|
|
|
21
|
|
|||
Income taxes on postretirement and postemployment plans
|
(38
|
)
|
|
4
|
|
|
7
|
|
|||
Postretirement and postemployment plans, net of tax
|
16
|
|
|
121
|
|
|
28
|
|
|||
Derivative hedges:
|
|
|
|
|
|
||||||
Net unrecognized gain (loss)
|
2
|
|
|
—
|
|
|
(13
|
)
|
|||
Reclassification of gains on terminated derivative hedges
|
—
|
|
|
—
|
|
|
(47
|
)
|
|||
Income taxes on derivative hedges
|
—
|
|
|
—
|
|
|
21
|
|
|||
Derivative hedges, net of tax
|
2
|
|
|
—
|
|
|
(39
|
)
|
|||
Foreign currency translation:
|
|
|
|
|
|
||||||
Net recognized loss reclassified to discontinued operations
|
—
|
|
|
—
|
|
|
34
|
|
|||
Foreign currency translation adjustment related to sale of U.K. business
|
30
|
|
|
—
|
|
|
—
|
|
|||
Income taxes on foreign currency translation
|
(7
|
)
|
|
—
|
|
|
(4
|
)
|
|||
Foreign currency translation, net of tax
|
23
|
|
|
—
|
|
|
30
|
|
|||
Other, net of tax
|
1
|
|
|
4
|
|
|
2
|
|
|||
Other comprehensive income
|
42
|
|
|
125
|
|
|
21
|
|
|||
Comprehensive income (loss)
|
$
|
522
|
|
|
$
|
1,221
|
|
|
$
|
(5,702
|
)
|
|
December 31,
|
||||||
(In millions, except par values and share amounts)
|
2019
|
|
2018
|
||||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
858
|
|
|
$
|
1,462
|
|
Receivables, less reserve of $11 and $11
|
1,122
|
|
|
1,079
|
|
||
Inventories
|
72
|
|
|
96
|
|
||
Other current assets
|
83
|
|
|
257
|
|
||
Current assets held for sale
|
—
|
|
|
27
|
|
||
Total current assets
|
2,135
|
|
|
2,921
|
|
||
Equity method investments
|
663
|
|
|
745
|
|
||
Property, plant and equipment, less accumulated depreciation, depletion and amortization of $18,003 and $21,830
|
17,000
|
|
|
16,804
|
|
||
Goodwill
|
95
|
|
|
97
|
|
||
Other noncurrent assets
|
352
|
|
|
723
|
|
||
Noncurrent assets held for sale
|
—
|
|
|
31
|
|
||
Total assets
|
$
|
20,245
|
|
|
$
|
21,321
|
|
Liabilities
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
1,307
|
|
|
$
|
1,320
|
|
Payroll and benefits payable
|
112
|
|
|
154
|
|
||
Accrued taxes
|
118
|
|
|
181
|
|
||
Other current liabilities
|
208
|
|
|
170
|
|
||
Current liabilities held for sale
|
—
|
|
|
7
|
|
||
Total current liabilities
|
1,745
|
|
|
1,832
|
|
||
Long-term debt
|
5,501
|
|
|
5,499
|
|
||
Deferred tax liabilities
|
186
|
|
|
199
|
|
||
Defined benefit postretirement plan obligations
|
183
|
|
|
195
|
|
||
Asset retirement obligations
|
243
|
|
|
1,081
|
|
||
Deferred credits and other liabilities
|
234
|
|
|
279
|
|
||
Noncurrent liabilities held for sale
|
—
|
|
|
108
|
|
||
Total liabilities
|
8,092
|
|
|
9,193
|
|
||
Commitments and contingencies
|
|
|
|
|
|||
Stockholders’ Equity
|
|
|
|
||||
Preferred stock – no shares issued or outstanding (no par value, 26 million shares authorized)
|
—
|
|
|
—
|
|
||
Common stock:
|
|
|
|
||||
Issued – 937 million shares (par value $1 per share, 1.925 billion shares authorized at December 31, 2019 and December 31, 2018)
|
937
|
|
|
937
|
|
||
Held in treasury, at cost – 141 million shares and 118 million shares
|
(4,089
|
)
|
|
(3,816
|
)
|
||
Additional paid-in capital
|
7,207
|
|
|
7,238
|
|
||
Retained earnings
|
7,993
|
|
|
7,706
|
|
||
Accumulated other comprehensive income
|
105
|
|
|
63
|
|
||
Total stockholders’ equity
|
12,153
|
|
|
12,128
|
|
||
Total liabilities and stockholders’ equity
|
$
|
20,245
|
|
|
$
|
21,321
|
|
|
Year Ended December 31,
|
||||||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Increase (decrease) in cash and cash equivalents
|
|
|
|
|
|
||||||
Operating activities:
|
|
|
|
|
|
|
|||||
Net income (loss)
|
$
|
480
|
|
|
$
|
1,096
|
|
|
$
|
(5,723
|
)
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities from continuing operations:
|
|
|
|
|
|
|
|||||
Discontinued operations
|
—
|
|
|
—
|
|
|
4,893
|
|
|||
Depreciation, depletion and amortization
|
2,397
|
|
|
2,441
|
|
|
2,372
|
|
|||
Impairments
|
24
|
|
|
75
|
|
|
229
|
|
|||
Exploratory dry well costs and unproved property impairments
|
114
|
|
|
255
|
|
|
323
|
|
|||
Net gain on disposal of assets
|
(50
|
)
|
|
(319
|
)
|
|
(58
|
)
|
|||
Loss on early extinguishment of debt
|
3
|
|
|
—
|
|
|
51
|
|
|||
Deferred income taxes
|
(34
|
)
|
|
52
|
|
|
(61
|
)
|
|||
Net loss on derivative instruments
|
72
|
|
|
14
|
|
|
36
|
|
|||
Net settlements of derivative instruments
|
52
|
|
|
(281
|
)
|
|
45
|
|
|||
Pension and other post retirement benefits, net
|
(52
|
)
|
|
(65
|
)
|
|
(46
|
)
|
|||
Stock-based compensation
|
60
|
|
|
53
|
|
|
49
|
|
|||
Equity method investments, net
|
18
|
|
|
45
|
|
|
20
|
|
|||
Changes in:
|
|
|
|
|
|
||||||
Current receivables
|
52
|
|
|
(133
|
)
|
|
(334
|
)
|
|||
Inventories
|
3
|
|
|
(1
|
)
|
|
10
|
|
|||
Current accounts payable and accrued liabilities
|
(187
|
)
|
|
179
|
|
|
297
|
|
|||
Other current assets and liabilities
|
(4
|
)
|
|
(22
|
)
|
|
1
|
|
|||
All other operating, net
|
(199
|
)
|
|
(155
|
)
|
|
(116
|
)
|
|||
Net cash provided by operating activities from continuing operations
|
2,749
|
|
|
3,234
|
|
|
1,988
|
|
|||
Investing activities:
|
|
|
|
|
|
||||||
Additions to property, plant and equipment
|
(2,550
|
)
|
|
(2,753
|
)
|
|
(1,974
|
)
|
|||
Additions to other assets
|
36
|
|
|
(26
|
)
|
|
(25
|
)
|
|||
Acquisitions, net of cash acquired
|
(293
|
)
|
|
(25
|
)
|
|
(1,891
|
)
|
|||
Disposal of assets, net of cash transferred to the buyer
|
(76
|
)
|
|
1,264
|
|
|
1,787
|
|
|||
Equity method investments - return of capital
|
64
|
|
|
57
|
|
|
64
|
|
|||
All other investing, net
|
1
|
|
|
13
|
|
|
(5
|
)
|
|||
Net cash used in investing activities from continuing operations
|
(2,818
|
)
|
|
(1,470
|
)
|
|
(2,044
|
)
|
|||
Financing activities:
|
|
|
|
|
|
||||||
Borrowings
|
600
|
|
|
—
|
|
|
988
|
|
|||
Debt repayments
|
(600
|
)
|
|
—
|
|
|
(2,764
|
)
|
|||
Debt extinguishment costs
|
(2
|
)
|
|
—
|
|
|
(46
|
)
|
|||
Purchases of common stock
|
(362
|
)
|
|
(713
|
)
|
|
(11
|
)
|
|||
Dividends paid
|
(162
|
)
|
|
(169
|
)
|
|
(170
|
)
|
|||
All other financing, net
|
(9
|
)
|
|
23
|
|
|
—
|
|
|||
Net cash used in financing activities
|
(535
|
)
|
|
(859
|
)
|
|
(2,003
|
)
|
|||
Net increase in cash and cash equivalents of discontinued operations (Note 5)
|
—
|
|
|
—
|
|
|
130
|
|
|||
Effect of exchange rate on cash and cash equivalents
|
—
|
|
|
(2
|
)
|
|
4
|
|
|||
Net increase (decrease) in cash and cash equivalents
|
(604
|
)
|
|
903
|
|
|
(1,925
|
)
|
|||
Cash and cash equivalents at beginning of period
|
1,462
|
|
|
563
|
|
|
2,488
|
|
|||
Cash and cash equivalents included in current assets held for sale
|
—
|
|
|
(4
|
)
|
|
—
|
|
|||
Cash and cash equivalents at end of period
|
$
|
858
|
|
|
$
|
1,462
|
|
|
$
|
563
|
|
|
Total Equity of Marathon Oil Stockholders
|
|
|
||||||||||||||||||||||||
(In millions)
|
Preferred
Stock
|
|
Common
Stock
|
|
Treasury
Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Total
Equity
|
||||||||||||||
December 31, 2016 Balance
|
$
|
—
|
|
|
$
|
937
|
|
|
$
|
(3,431
|
)
|
|
$
|
7,446
|
|
|
$
|
12,672
|
|
|
$
|
(83
|
)
|
|
$
|
17,541
|
|
Shares issued - stock-based
compensation
|
—
|
|
|
—
|
|
|
117
|
|
|
(50
|
)
|
|
—
|
|
|
—
|
|
|
67
|
|
|||||||
Shares repurchased
|
—
|
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
|||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
(17
|
)
|
|
—
|
|
|
—
|
|
|
(17
|
)
|
|||||||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,723
|
)
|
|
—
|
|
|
(5,723
|
)
|
|||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
21
|
|
|||||||
Dividends paid ($0.20 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(170
|
)
|
|
—
|
|
|
(170
|
)
|
|||||||
December 31, 2017 Balance
|
$
|
—
|
|
|
$
|
937
|
|
|
$
|
(3,325
|
)
|
|
$
|
7,379
|
|
|
$
|
6,779
|
|
|
$
|
(62
|
)
|
|
$
|
11,708
|
|
Shares issued - stock-based
compensation
|
—
|
|
|
—
|
|
|
221
|
|
|
(109
|
)
|
|
—
|
|
|
—
|
|
|
112
|
|
|||||||
Shares repurchased
|
—
|
|
|
—
|
|
|
(712
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(712
|
)
|
|||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
(32
|
)
|
|
—
|
|
|
—
|
|
|
(32
|
)
|
|||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,096
|
|
|
—
|
|
|
1,096
|
|
|||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
125
|
|
|
125
|
|
|||||||
Dividends paid ($0.20 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(169
|
)
|
|
—
|
|
|
(169
|
)
|
|||||||
December 31, 2018 Balance
|
$
|
—
|
|
|
$
|
937
|
|
|
$
|
(3,816
|
)
|
|
$
|
7,238
|
|
|
$
|
7,706
|
|
|
$
|
63
|
|
|
$
|
12,128
|
|
Cumulative-effect adjustment (Note 2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(31
|
)
|
|
—
|
|
|
(31
|
)
|
|||||||
Shares issued - stock-based
compensation
|
—
|
|
|
—
|
|
|
89
|
|
|
(26
|
)
|
|
—
|
|
|
—
|
|
|
63
|
|
|||||||
Shares repurchased
|
—
|
|
|
—
|
|
|
(362
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(362
|
)
|
|||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
480
|
|
|
—
|
|
|
480
|
|
|||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42
|
|
|
42
|
|
|||||||
Dividends paid ($0.20 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(162
|
)
|
|
—
|
|
|
(162
|
)
|
|||||||
December 31, 2019 Balance
|
$
|
—
|
|
|
$
|
937
|
|
|
$
|
(4,089
|
)
|
|
$
|
7,207
|
|
|
$
|
7,993
|
|
|
$
|
105
|
|
|
$
|
12,153
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(Shares in millions)
|
Preferred
Stock
|
|
Common
Stock
|
|
Treasury
Stock
|
|
|
|
|
|
|
|
|
||||||||||||||
December 31, 2016 Balance
|
—
|
|
|
937
|
|
|
90
|
|
|
|
|
|
|
|
|
|
|||||||||||
Shares issued - stock-based
compensation
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
|
|
|
|
|
|
|
|||||||||||
December 31, 2017 Balance
|
—
|
|
|
937
|
|
|
87
|
|
|
|
|
|
|
|
|
|
|||||||||||
Shares issued - stock-based
compensation
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
|
|
|
|
|
|
|
|||||||||||
Shares repurchased
|
—
|
|
|
—
|
|
|
37
|
|
|
|
|
|
|
|
|
|
|||||||||||
December 31, 2018 Balance
|
—
|
|
|
937
|
|
|
118
|
|
|
|
|
|
|
|
|
|
|||||||||||
Shares issued - stock-based
compensation
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
|
|
|
|
|
|
|
|||||||||||
Shares repurchased
|
—
|
|
|
—
|
|
|
25
|
|
|
|
|
|
|
|
|
|
|||||||||||
December 31, 2019 Balance
|
—
|
|
|
937
|
|
|
141
|
|
|
|
|
|
|
|
|
|
Type of Asset
|
|
Range of Useful Lives
|
Office furniture, equipment and computer hardware
|
|
4 to 15 years
|
Pipelines
|
|
5 to 40 years
|
Plants, facilities and infrastructure
|
|
3 to 40 years
|
|
Year Ended December 31,
|
||||||||||
(In millions, except per share data)
|
2019
|
|
2018
|
|
2017
|
||||||
Income (loss) from continuing operations
|
$
|
480
|
|
|
$
|
1,096
|
|
|
$
|
(830
|
)
|
Loss from discontinued operations
|
—
|
|
|
—
|
|
|
(4,893
|
)
|
|||
Net income (loss)
|
$
|
480
|
|
|
$
|
1,096
|
|
|
$
|
(5,723
|
)
|
|
|
|
|
|
|
||||||
Weighted average common shares outstanding
|
810
|
|
|
846
|
|
|
850
|
|
|||
Effect of dilutive securities
|
—
|
|
|
1
|
|
|
—
|
|
|||
Weighted average common shares, diluted
|
810
|
|
|
847
|
|
|
850
|
|
|||
Per basic share:
|
|
|
|
|
|
|
|
||||
Income (loss) from continuing operations
|
$
|
0.59
|
|
|
$
|
1.30
|
|
|
$
|
(0.97
|
)
|
Loss from discontinued operations
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(5.76
|
)
|
Net income (loss)
|
$
|
0.59
|
|
|
$
|
1.30
|
|
|
$
|
(6.73
|
)
|
Per diluted share:
|
|
|
|
|
|
||||||
Income (loss) from continuing operations
|
$
|
0.59
|
|
|
$
|
1.29
|
|
|
$
|
(0.97
|
)
|
Loss from discontinued operations
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(5.76
|
)
|
Net income (loss)
|
$
|
0.59
|
|
|
$
|
1.29
|
|
|
$
|
(6.73
|
)
|
Dividends per share
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
|
Year Ended December 31,
|
||
(In millions)
|
|
2017
|
||
Total revenue and other income
|
|
$
|
431
|
|
Net loss on disposal of assets
|
|
(43
|
)
|
|
Total revenues and other income
|
|
388
|
|
|
Costs and expenses:
|
|
|
||
Production
|
|
254
|
|
|
Depreciation, depletion and amortization
|
|
40
|
|
|
Impairments
|
|
6,636
|
|
|
Other
|
|
25
|
|
|
Total costs and expenses
|
|
6,955
|
|
|
Pretax loss from discontinued operations
|
|
(6,567
|
)
|
|
Benefit for income taxes
|
|
(1,674
|
)
|
|
Loss from discontinued operations
|
|
$
|
(4,893
|
)
|
|
|
Year Ended December 31,
|
||
(In millions)
|
|
2017
|
||
Cash flow from discontinued operations:
|
|
|
||
Operating activities
|
|
$
|
141
|
|
Investing activities
|
|
(13
|
)
|
|
Changes in cash included in current assets held for sale
|
|
2
|
|
|
Net increase in cash and cash equivalents of discontinued operations
|
|
$
|
130
|
|
|
Year Ended December 31, 2019
|
||||||||||||||||||||||
(In millions)
|
Eagle Ford
|
|
Bakken
|
|
Oklahoma
|
|
Northern Delaware
|
|
Other U.S.
|
|
Total
|
||||||||||||
Crude oil and condensate
|
$
|
1,358
|
|
|
$
|
1,686
|
|
|
$
|
425
|
|
|
$
|
316
|
|
|
$
|
102
|
|
|
$
|
3,887
|
|
Natural gas liquids
|
114
|
|
|
46
|
|
|
116
|
|
|
26
|
|
|
5
|
|
|
307
|
|
||||||
Natural gas
|
121
|
|
|
39
|
|
|
156
|
|
|
16
|
|
|
17
|
|
|
349
|
|
||||||
Other
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
52
|
|
|
59
|
|
||||||
Revenues from contracts with customers
|
$
|
1,600
|
|
|
$
|
1,771
|
|
|
$
|
697
|
|
|
$
|
358
|
|
|
$
|
176
|
|
|
$
|
4,602
|
|
|
Year Ended December 31, 2018
|
||||||||||||||||||||||
(In millions)
|
Eagle Ford
|
|
Bakken
|
|
Oklahoma
|
|
Northern Delaware
|
|
Other U.S.
|
|
Total
|
||||||||||||
Crude oil and condensate
|
$
|
1,554
|
|
|
$
|
1,568
|
|
|
$
|
426
|
|
|
$
|
235
|
|
|
$
|
164
|
|
|
$
|
3,947
|
|
Natural gas liquids
|
205
|
|
|
62
|
|
|
181
|
|
|
38
|
|
|
9
|
|
|
495
|
|
||||||
Natural gas
|
145
|
|
|
38
|
|
|
184
|
|
|
20
|
|
|
26
|
|
|
413
|
|
||||||
Other
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
31
|
|
||||||
Revenues from contracts with customers
|
$
|
1,912
|
|
|
$
|
1,668
|
|
|
$
|
791
|
|
|
$
|
293
|
|
|
$
|
222
|
|
|
$
|
4,886
|
|
|
Year Ended December 31, 2019
|
||||||||||||||
(In millions)
|
E.G.
|
|
U.K.
|
|
Other International
|
|
Total
|
||||||||
Crude oil and condensate
|
$
|
271
|
|
|
$
|
107
|
|
|
$
|
20
|
|
|
$
|
398
|
|
Natural gas liquids
|
4
|
|
|
1
|
|
|
—
|
|
|
5
|
|
||||
Natural gas
|
32
|
|
|
12
|
|
|
—
|
|
|
44
|
|
||||
Other
|
—
|
|
|
14
|
|
|
—
|
|
|
14
|
|
||||
Revenues from contracts with customers
|
$
|
307
|
|
|
$
|
134
|
|
|
$
|
20
|
|
|
$
|
461
|
|
|
Year Ended December 31, 2018
|
||||||||||||||||||
(In millions)
|
E.G.
|
|
U.K.
|
|
Libya
|
|
Other International
|
|
Total
|
||||||||||
Crude oil and condensate
|
$
|
342
|
|
|
$
|
282
|
|
|
$
|
187
|
|
|
$
|
77
|
|
|
$
|
888
|
|
Natural gas liquids
|
4
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|||||
Natural gas
|
37
|
|
|
40
|
|
|
9
|
|
|
—
|
|
|
86
|
|
|||||
Other
|
1
|
|
|
32
|
|
|
—
|
|
|
—
|
|
|
33
|
|
|||||
Revenues from contracts with customers
|
$
|
384
|
|
|
$
|
359
|
|
|
$
|
196
|
|
|
$
|
77
|
|
|
$
|
1,016
|
|
|
December 31,
|
|||||
(In millions)
|
2019
|
2018
|
||||
Receivables from contracts with customers, included in receivables, less reserves
|
$
|
837
|
|
$
|
714
|
|
Contract asset (liability)
|
$
|
—
|
|
$
|
(1
|
)
|
(In millions)
|
Year Ended December 31, 2019
|
||
Contract asset (liability) balance as of January 1, 2019
|
$
|
(1
|
)
|
Revenue recognized as performance obligations are satisfied
|
74
|
|
|
Amounts invoiced to customers
|
(52
|
)
|
|
Contract asset (liability) transferred to buyer(a)
|
(21
|
)
|
|
Contract asset (liability) balance as of December 31, 2019
|
$
|
—
|
|
(a)
|
•
|
United States (“U.S.”) – explores for, produces and markets crude oil and condensate, NGLs and natural gas in the United States
|
•
|
International (“Int’l”) – explores for, produces and markets crude oil and condensate, NGLs and natural gas outside of the United States as well as produces and markets products manufactured from natural gas, such as LNG and methanol, in E.G.
|
|
Year Ended December 31, 2019
|
||||||||||||||
(In millions)
|
U.S.
|
|
Int’l
|
|
Not Allocated to Segments
|
|
Total
|
||||||||
Revenues from contracts with customers
|
$
|
4,602
|
|
|
$
|
461
|
|
|
$
|
—
|
|
|
$
|
5,063
|
|
Net gain (loss) on commodity derivatives
|
52
|
|
|
—
|
|
|
(124
|
)
|
(b)
|
(72
|
)
|
||||
Income from equity method investments
|
—
|
|
|
87
|
|
|
—
|
|
|
87
|
|
||||
Net gain on disposal of assets
|
—
|
|
|
—
|
|
|
50
|
|
(c)
|
50
|
|
||||
Other income
|
13
|
|
|
9
|
|
|
40
|
|
|
62
|
|
||||
Less costs and expenses:
|
|
|
|
|
|
|
|
||||||||
Production
|
588
|
|
|
126
|
|
|
(2
|
)
|
|
712
|
|
||||
Shipping, handling and other operating
|
561
|
|
|
26
|
|
|
18
|
|
|
605
|
|
||||
Exploration
|
149
|
|
|
—
|
|
|
—
|
|
|
149
|
|
||||
Depreciation, depletion and amortization
|
2,250
|
|
|
121
|
|
|
26
|
|
|
2,397
|
|
||||
Impairments
|
—
|
|
|
—
|
|
|
24
|
|
(d)
|
24
|
|
||||
Taxes other than income
|
311
|
|
|
—
|
|
|
—
|
|
|
311
|
|
||||
General and administrative
|
127
|
|
|
25
|
|
|
204
|
|
|
356
|
|
||||
Net interest and other
|
—
|
|
|
—
|
|
|
244
|
|
|
244
|
|
||||
Other net periodic benefit costs
|
—
|
|
|
(3
|
)
|
|
—
|
|
(e)
|
(3
|
)
|
||||
Loss on early extinguishment of debt
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
||||
Income tax provision (benefit)
|
6
|
|
|
29
|
|
|
(123
|
)
|
|
(88
|
)
|
||||
Segment income (loss)
|
$
|
675
|
|
|
$
|
233
|
|
|
$
|
(428
|
)
|
|
$
|
480
|
|
Total assets
|
$
|
17,781
|
|
|
$
|
1,530
|
|
|
$
|
934
|
|
|
$
|
20,245
|
|
Capital expenditures(a)
|
$
|
2,550
|
|
|
$
|
16
|
|
|
$
|
25
|
|
|
$
|
2,591
|
|
(a)
|
Includes accruals and excludes acquisitions.
|
(b)
|
(c)
|
Primarily related to the sale of our working interest in the Droshky field (Gulf of Mexico) and the sale of our U.K. business (see Note 5).
|
(d)
|
Primarily a result of anticipated sales of non-core proved properties in our International and United States segments (see Note 11).
|
(e)
|
|
Year Ended December 31, 2018
|
||||||||||||||
(In millions)
|
U.S.
|
|
Int’l
|
|
Not Allocated to Segments
|
|
Total
|
||||||||
Revenues from contracts with customers
|
$
|
4,886
|
|
|
$
|
1,016
|
|
|
$
|
—
|
|
|
$
|
5,902
|
|
Net gain (loss) on commodity derivatives
|
(281
|
)
|
|
—
|
|
|
267
|
|
(b)
|
(14
|
)
|
||||
Income from equity method investments
|
—
|
|
|
225
|
|
|
—
|
|
|
225
|
|
||||
Net gain on disposal of assets
|
—
|
|
|
—
|
|
|
319
|
|
(c)
|
319
|
|
||||
Other income
|
16
|
|
|
12
|
|
|
122
|
|
(d)
|
150
|
|
||||
Less costs and expenses:
|
|
|
|
|
|
|
|
||||||||
Production
|
625
|
|
|
215
|
|
|
2
|
|
|
842
|
|
||||
Shipping, handling and other operating
|
499
|
|
|
70
|
|
|
6
|
|
|
575
|
|
||||
Exploration
|
246
|
|
|
3
|
|
|
40
|
|
(e)
|
289
|
|
||||
Depreciation, depletion and amortization
|
2,217
|
|
|
197
|
|
|
27
|
|
|
2,441
|
|
||||
Impairments
|
—
|
|
|
—
|
|
|
75
|
|
(f)
|
75
|
|
||||
Taxes other than income
|
301
|
|
|
—
|
|
|
(2
|
)
|
|
299
|
|
||||
General and administrative
|
146
|
|
|
32
|
|
|
216
|
|
|
394
|
|
||||
Net interest and other
|
—
|
|
|
—
|
|
|
226
|
|
|
226
|
|
||||
Other net periodic benefit costs
|
—
|
|
|
(9
|
)
|
|
23
|
|
(g)
|
14
|
|
||||
Income tax provision (benefit)
|
(21
|
)
|
|
272
|
|
|
80
|
|
|
331
|
|
||||
Segment income
|
$
|
608
|
|
|
$
|
473
|
|
|
$
|
15
|
|
|
$
|
1,096
|
|
Total assets
|
$
|
17,321
|
|
|
$
|
2,083
|
|
|
$
|
1,917
|
|
|
$
|
21,321
|
|
Capital expenditures(a)
|
$
|
2,620
|
|
|
$
|
39
|
|
|
$
|
26
|
|
|
$
|
2,685
|
|
(a)
|
Includes accruals and excludes acquisitions.
|
(b)
|
(c)
|
(d)
|
(e)
|
Primarily related to dry well expense and unproved property impairments associated with the Rodo well in Alba Block Sub Area B, offshore E.G. (see Note 10).
|
(f)
|
Due to the anticipated sales of certain non-core proved properties in our International and United States segments (see Note 11).
|
(g)
|
|
Year Ended December 31, 2017
|
||||||||||||||
(In millions)
|
U.S.
|
|
Int’l
|
|
Not Allocated to Segments
|
|
Total
|
||||||||
Revenues from contracts with customers
|
$
|
3,093
|
|
|
$
|
1,154
|
|
|
$
|
—
|
|
|
$
|
4,247
|
|
Net gain (loss) on commodity derivatives
|
45
|
|
|
—
|
|
|
(81
|
)
|
(b)
|
(36
|
)
|
||||
Marketing revenues
|
29
|
|
|
133
|
|
|
—
|
|
|
162
|
|
||||
Income from equity method investments
|
—
|
|
|
256
|
|
|
—
|
|
|
256
|
|
||||
Net gain on disposal of assets
|
1
|
|
|
—
|
|
|
57
|
|
(c)
|
58
|
|
||||
Other income
|
12
|
|
|
6
|
|
|
60
|
|
|
78
|
|
||||
Less costs and expenses:
|
|
|
|
|
|
|
|
||||||||
Production
|
476
|
|
|
239
|
|
|
1
|
|
|
716
|
|
||||
Marketing costs
|
36
|
|
|
132
|
|
|
—
|
|
|
168
|
|
||||
Shipping, handling and other operating
|
354
|
|
|
77
|
|
|
—
|
|
|
431
|
|
||||
Exploration
|
154
|
|
|
5
|
|
|
250
|
|
(d)
|
409
|
|
||||
Depreciation, depletion and amortization
|
2,011
|
|
|
328
|
|
|
33
|
|
|
2,372
|
|
||||
Impairments
|
4
|
|
|
—
|
|
|
225
|
|
(e)
|
229
|
|
||||
Taxes other than income
|
173
|
|
|
—
|
|
|
10
|
|
|
183
|
|
||||
General and administrative
|
119
|
|
|
30
|
|
|
222
|
|
|
371
|
|
||||
Net interest and other
|
—
|
|
|
—
|
|
|
270
|
|
(f)
|
270
|
|
||||
Other net periodic benefit costs
|
—
|
|
|
(8
|
)
|
|
27
|
|
(g)
|
19
|
|
||||
Loss on early extinguishment of debt
|
—
|
|
|
—
|
|
|
51
|
|
(h)
|
51
|
|
||||
Income tax provision
|
1
|
|
|
372
|
|
|
3
|
|
|
376
|
|
||||
Segment income (loss)
|
$
|
(148
|
)
|
|
$
|
374
|
|
|
$
|
(1,056
|
)
|
|
$
|
(830
|
)
|
Total assets
|
$
|
16,863
|
|
|
$
|
4,201
|
|
|
$
|
948
|
|
|
$
|
22,012
|
|
Capital expenditures(a)
|
$
|
2,081
|
|
|
$
|
42
|
|
|
$
|
27
|
|
|
$
|
2,150
|
|
(a)
|
Includes accruals and excludes acquisitions.
|
(b)
|
(c)
|
(d)
|
Primarily related to unproved property impairments associated with certain non-core properties within our International segment (see Note 11).
|
(e)
|
Primarily related to proved property impairments associated with certain non-core properties within our International segment (see Note 11).
|
(f)
|
Includes a gain of $46 million resulting from the termination of our forward starting interest rate swaps (see Note 15).
|
(g)
|
(h)
|
Primarily related to the make-whole call provisions paid upon redemption of our senior unsecured notes (see Note 17).
|
|
December 31,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
United States
|
$
|
16,507
|
|
|
$
|
16,094
|
|
Equatorial Guinea
|
1,156
|
|
|
1,333
|
|
||
Other international(a)
|
—
|
|
|
122
|
|
||
Total long-lived assets
|
$
|
17,663
|
|
|
$
|
17,549
|
|
(a)
|
The decrease in 2019 is due to the sale of our non-operated interest in the Atrush block in Kurdistan and the sale of our U.K. business (see Note 5).
|
|
Year Ended December 31,
|
|||||||||||
(In millions)
|
|
2019
|
|
2018
|
|
2017
|
||||||
United States
|
|
$
|
43
|
|
|
$
|
642
|
|
|
$
|
(783
|
)
|
Foreign
|
|
349
|
|
|
785
|
|
|
329
|
|
|||
Total
|
|
$
|
392
|
|
|
$
|
1,427
|
|
|
$
|
(454
|
)
|
|
Year Ended December 31,
|
||||||||||||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||||||||||||||
(In millions)
|
Current
|
|
Deferred
|
|
Total
|
|
Current
|
|
Deferred
|
|
Total
|
|
Current
|
|
Deferred
|
|
Total
|
||||||||||||||||||
Federal
|
$
|
(116
|
)
|
|
$
|
(3
|
)
|
|
$
|
(119
|
)
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
(32
|
)
|
|
$
|
41
|
|
|
$
|
9
|
|
State and local
|
4
|
|
|
3
|
|
|
7
|
|
|
(1
|
)
|
|
(23
|
)
|
|
(24
|
)
|
|
(14
|
)
|
|
2
|
|
|
(12
|
)
|
|||||||||
Foreign
|
58
|
|
|
(34
|
)
|
|
24
|
|
|
274
|
|
|
75
|
|
|
349
|
|
|
483
|
|
|
(104
|
)
|
|
379
|
|
|||||||||
Total
|
$
|
(54
|
)
|
|
$
|
(34
|
)
|
|
$
|
(88
|
)
|
|
$
|
279
|
|
|
$
|
52
|
|
|
$
|
331
|
|
|
$
|
437
|
|
|
$
|
(61
|
)
|
|
$
|
376
|
|
|
|
Year Ended December 31,
|
||||||||||
(In millions)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Total pre-tax income (loss) from continuing operations
|
|
$
|
392
|
|
|
$
|
1,427
|
|
|
$
|
(454
|
)
|
Total income tax expense (benefit)
|
|
$
|
(88
|
)
|
|
$
|
331
|
|
|
$
|
376
|
|
Effective income tax rate (benefit) on continuing operations
|
|
(22
|
)%
|
|
23
|
%
|
|
83
|
%
|
|||
|
|
|
|
|
|
|
||||||
Income taxes at the statutory tax rate(a)(b)
|
|
$
|
83
|
|
|
$
|
300
|
|
|
$
|
(159
|
)
|
Effects of foreign operations
|
|
(29
|
)
|
|
214
|
|
|
140
|
|
|||
Adjustments to valuation allowances
|
|
(28
|
)
|
|
(177
|
)
|
|
446
|
|
|||
State income taxes
|
|
11
|
|
|
(17
|
)
|
|
(19
|
)
|
|||
Tax law change
|
|
—
|
|
|
—
|
|
|
(35
|
)
|
|||
Other federal tax effects
|
|
(125
|
)
|
|
11
|
|
|
3
|
|
|||
Income tax expense (benefit) on continuing operations
|
|
$
|
(88
|
)
|
|
$
|
331
|
|
|
$
|
376
|
|
(a)
|
Includes income tax benefits primarily related to our U.S. federal income taxes where we have maintained a full valuation allowance since December 2016.
|
(b)
|
As a result of the Tax Reform Legislation (see below), the U.S. corporate income tax rate was reduced to 21% in 2018. The U.S. corporate income tax rate was 35% in 2017.
|
|
Year Ended December 31,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Deferred tax assets:
|
|
|
|
||||
Employee benefits
|
$
|
90
|
|
|
$
|
75
|
|
Operating loss carryforwards
|
1,685
|
|
|
1,304
|
|
||
Capital loss carryforwards
|
1
|
|
|
2
|
|
||
Foreign tax credits
|
611
|
|
|
611
|
|
||
Other
|
27
|
|
|
4
|
|
||
Subtotal
|
2,414
|
|
|
1,996
|
|
||
Valuation allowance
|
(699
|
)
|
|
(721
|
)
|
||
Total deferred tax assets
|
1,715
|
|
|
1,275
|
|
||
Deferred tax liabilities:
|
|
|
|
||||
Property, plant and equipment
|
1,861
|
|
|
1,018
|
|
||
Accrued revenue
|
40
|
|
|
60
|
|
||
Other
|
—
|
|
|
3
|
|
||
Total deferred tax liabilities
|
1,901
|
|
|
1,081
|
|
||
Net deferred tax liabilities
|
$
|
186
|
|
|
$
|
—
|
|
Net deferred tax assets
|
$
|
—
|
|
|
$
|
194
|
|
|
December 31,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Assets:
|
|
|
|
||||
Other noncurrent assets
|
$
|
—
|
|
|
$
|
393
|
|
Liabilities:
|
|
|
|
||||
Noncurrent deferred tax liabilities
|
186
|
|
|
199
|
|
||
Net deferred tax liabilities
|
$
|
186
|
|
|
$
|
—
|
|
Net deferred tax assets
|
$
|
—
|
|
|
$
|
194
|
|
United States(a)
|
2008-2018
|
Equatorial Guinea
|
2007-2018
|
(a)
|
Includes federal and state jurisdictions.
|
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Beginning balance
|
$
|
263
|
|
|
$
|
126
|
|
|
$
|
66
|
|
Additions for tax positions of prior years
|
13
|
|
|
152
|
|
|
83
|
|
|||
Reductions for tax positions of prior years
|
(152
|
)
|
|
(15
|
)
|
|
(3
|
)
|
|||
Settlements
|
(111
|
)
|
|
—
|
|
|
(20
|
)
|
|||
Ending balance
|
$
|
13
|
|
|
$
|
263
|
|
|
$
|
126
|
|
|
December 31,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Crude oil and natural gas
|
$
|
10
|
|
|
$
|
11
|
|
Supplies and other items
|
62
|
|
|
85
|
|
||
Inventories
|
$
|
72
|
|
|
$
|
96
|
|
|
December 31,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
United States
|
$
|
16,427
|
|
|
$
|
16,011
|
|
International(a)
|
493
|
|
|
710
|
|
||
Not allocated to segments
|
80
|
|
|
83
|
|
||
Net property, plant and equipment
|
$
|
17,000
|
|
|
$
|
16,804
|
|
(a)
|
The International decrease is due to dispositions of our non-operated interest in the Atrush block in Kurdistan and our U.K. business during 2019 (see Note 5).
|
|
December 31,
|
||||||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Amounts capitalized less than one year after completion of drilling
|
$
|
278
|
|
|
$
|
297
|
|
|
$
|
263
|
|
Amounts capitalized greater than one year after completion of drilling
|
—
|
|
|
—
|
|
|
32
|
|
|||
Total deferred exploratory well costs
|
$
|
278
|
|
|
$
|
297
|
|
|
$
|
295
|
|
Number of projects with costs capitalized greater than one year after
completion of drilling
|
—
|
|
|
—
|
|
|
1
|
|
|||
|
|
|
|
|
|
||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Beginning balance
|
$
|
297
|
|
|
$
|
295
|
|
|
$
|
249
|
|
Additions
|
218
|
|
|
262
|
|
|
212
|
|
|||
Charges to expense(a)
|
(5
|
)
|
|
(35
|
)
|
|
(64
|
)
|
|||
Transfers to development
|
(230
|
)
|
|
(197
|
)
|
|
(102
|
)
|
|||
Dispositions(b)
|
(2
|
)
|
|
(28
|
)
|
|
—
|
|
|||
Ending balance
|
$
|
278
|
|
|
$
|
297
|
|
|
$
|
295
|
|
(a)
|
2018 includes $32 million related to the Rodo well in Alba Block Sub Area B, offshore E.G. 2017 includes $64 million as a result of our agreement to sell Diaba License G4-223 in the Republic of Gabon (see Note 11 for further detail).
|
(b)
|
2018 includes the sale of our Libya subsidiary.
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||
(In millions)
|
Fair Value
|
|
Impairment
|
|
Fair Value
|
|
Impairment
|
|
Fair Value
|
|
Impairment
|
||||||||||||
Long-lived assets held for use
|
$
|
56
|
|
|
$
|
24
|
|
|
$
|
113
|
|
|
$
|
75
|
|
|
$
|
179
|
|
|
$
|
229
|
|
•
|
2019 – Impairments of $24 million, to an aggregate fair value of $56 million, were primarily a result of proved property impairments primarily as a result of anticipated sales for certain non-core proved properties in our United States segment and the sale of our non-operated interest in the Atrush block (Kurdistan) in our International segment. The related fair value was measured using the market approach, based upon anticipated sales proceeds less costs to sell which resulted in a Level 2 classification.
|
•
|
2018 – Impairments in our International and United States segments of $75 million, to a fair value of $113 million, were largely the result of anticipated sales for certain non-core proved properties. The related fair value measurement utilized the market approach, based upon anticipated sales proceeds less costs to sell which resulted in a Level 2 classification.
|
•
|
2017 – Impairments in our International segment were primarily a result of lower forecasted long-term commodity prices and the anticipated sales of certain non-core proved properties of $136 million, to an aggregate fair value of $103 million. These fair values were measured using the market approach, based upon either anticipated sales proceeds less costs to sell or a market comparable sales price per boe which resulted in a Level 2 classification.
|
(In millions)
|
2019
|
|
2018
|
||||
Beginning balance
|
$
|
1,145
|
|
|
$
|
1,483
|
|
Incurred liabilities, including acquisitions
|
34
|
|
|
21
|
|
||
Settled liabilities, including dispositions
|
(1,110
|
)
|
|
(117
|
)
|
||
Accretion expense (included in depreciation, depletion and amortization)
|
31
|
|
|
70
|
|
||
Revisions of estimates
|
46
|
|
|
(204
|
)
|
||
Held for sale(a)
|
108
|
|
|
(108
|
)
|
||
Ending balance(b)
|
$
|
254
|
|
|
$
|
1,145
|
|
(a)
|
In the fourth quarter 2018, we entered into an agreement to sell our working interest in the Droshky field (Gulf of Mexico), including our $98 million asset retirement obligation; this transaction closed during the first quarter of 2019.
|
(b)
|
$944 million of the 2018 ending balance relates to our asset retirement obligations in the U.K., the sale of which closed in 2019.
|
•
|
Settled liabilities primarily relates to the sale of our U.K. business, which closed during the third quarter of 2019, and the sale of the Droshky field (Gulf of Mexico).
|
•
|
Held for sale reflects a transfer to settled liabilities during 2019. This transfer was primarily related to the Droshky field (Gulf of Mexico) which was considered held for sale at year-end 2018 and closed in the first quarter of 2019.
|
•
|
Ending balance includes $11 million classified as short-term at December 31, 2019.
|
•
|
Settled liabilities include dispositions, primarily related to the sale of non-core, non-operated conventional properties in the Gulf of Mexico as well as retirements in the U.K.
|
•
|
Revisions of estimates were primarily due to the acceleration of U.K. abandonment activities to capture favorable market conditions and lower estimated abandonment costs.
|
•
|
Held for sale primarily related to the Droshky field, which was considered held for sale at year-end 2018.
|
•
|
Ending balance primarily relates to the U.K. and includes $64 million classified as short-term at December 31, 2018.
|
(In millions)
|
|
December 31, 2019
|
||
Operating Leases:
|
Balance Sheet Location:
|
|
||
ROU asset
|
Other noncurrent assets
|
$
|
199
|
|
Current portion of long-term lease liability
|
Other current liabilities
|
$
|
101
|
|
Long-term lease liability
|
Deferred credits and other liabilities
|
$
|
107
|
|
•
|
Implemented an accounting policy to not recognize any right-of-use assets and lease liabilities related to short-term leases on the balance sheet.
|
•
|
Implemented an accounting policy to not separate the lease and nonlease components for all asset classes, except for vessels.
|
•
|
Elected the package of practical expedients which allows us to not reassess our prior conclusions regarding the lease identification and lease classification for contracts that commenced or expired prior to the effective date.
|
•
|
Elected the practical expedient pertaining to land easements which allows us to continue accounting for existing agreements under the previous accounting policies as nonlease transactions. Any modifications of existing contracts or new agreements will be assessed under the new lease accounting guidance and may become leases in the future.
|
(In millions)
|
Year Ended December 31, 2019
|
||
Lease costs:
|
|
||
Operating lease costs(a)
|
$
|
84
|
|
Short-term lease costs(b)
|
321
|
|
|
Variable lease costs(c)
|
107
|
|
|
Total lease costs
|
$
|
512
|
|
|
|
||
Other information:
|
|
||
Cash paid for amounts included in the measurement of operating lease liabilities
|
$
|
100
|
|
ROU assets obtained in exchange for new operating lease liabilities(d)
|
$
|
293
|
|
(a)
|
Represents our net share of the ROU asset amortization and the interest expense.
|
(b)
|
Represents our net share of lease costs arising from leases of less than one year but longer than one month that were not included in the lease liability.
|
(c)
|
Represents our net share of variable lease payments that were not included in the lease liability.
|
(d)
|
Represents the cumulative value of ROU assets recognized at lease inception during the year of 2019. This amount is then amortized as we utilize the ROU asset, the net effect of which is the ending ROU asset of $199 million (first table above).
|
(In millions)
|
Operating Lease Obligations
|
||
2020
|
$
|
114
|
|
2021
|
63
|
|
|
2022
|
35
|
|
|
2023
|
5
|
|
|
2024
|
1
|
|
|
Thereafter
|
—
|
|
|
Total undiscounted lease payments
|
$
|
218
|
|
Less: amount representing interest
|
10
|
|
|
Total operating lease liabilities
|
$
|
208
|
|
Less: current portion of long-term lease liability as of December 31, 2019
|
101
|
|
|
Long-term lease liability as of December 31, 2019
|
$
|
107
|
|
(In millions)
|
Operating Lease Obligations
|
||
2019
|
$
|
62
|
|
2020
|
54
|
|
|
2021
|
35
|
|
|
2022
|
12
|
|
|
2023
|
5
|
|
|
Thereafter
|
49
|
|
|
Sublease rentals
|
—
|
|
|
Total minimum lease payments
|
$
|
217
|
|
(In millions)
|
Operating Lease Future Cash Receipts
|
||
2020
|
$
|
6
|
|
2021
|
6
|
|
|
2022
|
6
|
|
|
2023
|
6
|
|
|
2024
|
6
|
|
|
Thereafter
|
60
|
|
|
Total undiscounted cash flows
|
$
|
90
|
|
(In millions)
|
|
International
|
||
2018
|
|
|
||
Beginning balance, gross
|
|
$
|
115
|
|
Less: accumulated impairments
|
|
—
|
|
|
Beginning balance, net
|
|
115
|
|
|
Dispositions(a)
|
|
(18
|
)
|
|
Impairment
|
|
—
|
|
|
Ending balance, net
|
|
$
|
97
|
|
2019
|
|
|
||
Beginning balance, gross
|
|
$
|
97
|
|
Less: accumulated impairments
|
|
—
|
|
|
Beginning balance, net
|
|
97
|
|
|
Dispositions
|
|
(2
|
)
|
|
Impairment
|
|
—
|
|
|
Ending balance, net
|
|
$
|
95
|
|
(a)
|
|
December 31, 2019
|
|
|
||||||||||
(In millions)
|
Asset
|
|
Liability
|
|
Net Asset (Liability)
|
|
Balance Sheet Location
|
||||||
Not Designated as Hedges
|
|
|
|
|
|
|
|
||||||
Commodity
|
$
|
9
|
|
|
$
|
1
|
|
|
$
|
8
|
|
|
Other current assets
|
Commodity
|
1
|
|
|
—
|
|
|
1
|
|
|
Other noncurrent assets
|
|||
Commodity
|
—
|
|
|
5
|
|
|
(5
|
)
|
|
Other current liabilities
|
|||
Total Not Designated as Hedges
|
$
|
10
|
|
|
$
|
6
|
|
|
$
|
4
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash Flow Hedges
|
|
|
|
|
|
|
|||||||
Interest Rate
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
Other noncurrent assets
|
Total Designated Hedges
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
|
Total
|
$
|
12
|
|
|
$
|
6
|
|
|
$
|
6
|
|
|
|
|
December 31, 2018
|
|
|
||||||||||
(In millions)
|
Asset
|
|
Liability
|
|
Net Asset (Liability)
|
|
Balance Sheet Location
|
||||||
Not Designated as Hedges
|
|
|
|
|
|
|
|
||||||
Commodity
|
$
|
131
|
|
|
$
|
—
|
|
|
$
|
131
|
|
|
Other current assets
|
Commodity
|
—
|
|
|
4
|
|
|
(4
|
)
|
|
Deferred credits and other liabilities
|
|||
Total Not Designated as Hedges
|
$
|
131
|
|
|
$
|
4
|
|
|
$
|
127
|
|
|
|
|
|
Year Ended December 31,
|
||
(In millions)
|
|
2017
|
||
Interest Rate Swaps
|
|
|
||
Beginning balance
|
|
$
|
60
|
|
Change in fair value recognized in other comprehensive income
|
|
(13
|
)
|
|
Reclassification from other comprehensive income
|
|
(47
|
)
|
|
Ending balance
|
|
$
|
—
|
|
|
2020
|
|
|
2021
|
||||||||||||||||
Crude Oil
|
First Quarter
|
|
Second Quarter
|
|
Third Quarter
|
|
Fourth Quarter
|
|
|
Full Year
|
||||||||||
NYMEX WTI Three-Way Collars
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Volume (Bbls/day)
|
60,000
|
|
|
60,000
|
|
|
60,000
|
|
|
60,000
|
|
|
|
—
|
|
|||||
Weighted average price per Bbl:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ceiling
|
$
|
66.04
|
|
|
$
|
66.04
|
|
|
$
|
63.74
|
|
|
$
|
63.74
|
|
|
|
$
|
—
|
|
Floor
|
$
|
55.00
|
|
|
$
|
55.00
|
|
|
$
|
55.00
|
|
|
$
|
55.00
|
|
|
|
$
|
—
|
|
Sold put
|
$
|
47.67
|
|
|
$
|
47.67
|
|
|
$
|
48.00
|
|
|
$
|
48.00
|
|
|
|
$
|
—
|
|
Basis Swaps - Argus WTI Midland(a)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Volume (Bbls/day)
|
15,000
|
|
|
15,000
|
|
|
15,000
|
|
|
15,000
|
|
|
|
—
|
|
|||||
Weighted average price per Bbl
|
$
|
(0.94
|
)
|
|
$
|
(0.94
|
)
|
|
$
|
(0.94
|
)
|
|
$
|
(0.94
|
)
|
|
|
$
|
—
|
|
Basis Swaps - NYMEX WTI / ICE Brent(b)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Volume (Bbls/day)
|
5,000
|
|
|
5,000
|
|
|
5,000
|
|
|
5,000
|
|
|
|
808
|
|
|||||
Weighted average price per Bbl
|
$
|
(7.24
|
)
|
|
$
|
(7.24
|
)
|
|
$
|
(7.24
|
)
|
|
$
|
(7.24
|
)
|
|
|
$
|
(7.24
|
)
|
Natural Gas
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Three-Way Collars
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Volume (MMBtu/day)
|
100,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|||||
Weighted average price per MMBtu:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ceiling
|
$
|
3.32
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
Floor
|
$
|
2.75
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
Sold put
|
$
|
2.25
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
(a)
|
The basis differential price is indexed against Argus WTI Midland.
|
(b)
|
The basis differential price is indexed against Intercontinental Exchange (“ICE”) Brent and NYMEX WTI.
|
|
Year Ended December 31,
|
|||||||||
(In millions)
|
2019
|
|
2018
|
2017
|
||||||
Mark-to-market gain (loss)
|
$
|
(124
|
)
|
|
$
|
267
|
|
$
|
(81
|
)
|
Net settlements of commodity derivative instruments
|
$
|
52
|
|
|
$
|
(281
|
)
|
$
|
45
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||
(In millions, except fixed rates)
|
Aggregate Notional Amount
|
|
Weighted Average, LIBOR
|
|
Aggregate Notional Amount
|
|
Weighted Average, LIBOR
|
||||||
Interest rate swaps
|
$
|
320
|
|
|
1.514
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
December 31, 2019
|
||||||||||||||
(In millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Derivative instruments, assets
|
|
|
|
|
|
|
|
||||||||
Commodity(a)
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
7
|
|
Interest rate
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||
Derivative instruments, assets
|
$
|
—
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
9
|
|
Derivative instruments, liabilities
|
|
|
|
|
|
|
|
||||||||
Commodity(a)
|
$
|
(3
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(3
|
)
|
Derivative instruments, liabilities
|
$
|
(3
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(3
|
)
|
Total
|
$
|
(3
|
)
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
|
|
|
|
|
|
|
||||||||
|
December 31, 2018
|
||||||||||||||
(In millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Derivative instruments, assets
|
|
|
|
|
|
|
|
||||||||
Commodity(a)
|
$
|
21
|
|
|
$
|
106
|
|
|
$
|
—
|
|
|
$
|
127
|
|
Derivative instruments, assets
|
$
|
21
|
|
|
$
|
106
|
|
|
$
|
—
|
|
|
$
|
127
|
|
Derivative instruments, liabilities
|
|
|
|
|
|
|
|
||||||||
Derivative instruments, liabilities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Total
|
$
|
21
|
|
|
$
|
106
|
|
|
$
|
—
|
|
|
$
|
127
|
|
(a)
|
|
December 31,
|
||||||||||||||
|
2019
|
|
2018
|
||||||||||||
(In millions)
|
Fair
Value
|
|
Carrying
Amount
|
|
Fair
Value
|
|
Carrying
Amount
|
||||||||
Financial assets
|
|
|
|
|
|
|
|
||||||||
Current assets
|
$
|
4
|
|
|
$
|
4
|
|
|
$
|
3
|
|
|
$
|
3
|
|
Other noncurrent assets
|
26
|
|
|
38
|
|
|
76
|
|
|
81
|
|
||||
Total financial assets
|
$
|
30
|
|
|
$
|
42
|
|
|
$
|
79
|
|
|
$
|
84
|
|
Financial liabilities
|
|
|
|
|
|
|
|
||||||||
Other current liabilities
|
$
|
62
|
|
|
$
|
90
|
|
|
$
|
37
|
|
|
$
|
58
|
|
Long-term debt, including current portion(a)
|
6,174
|
|
|
5,529
|
|
|
5,469
|
|
|
5,528
|
|
||||
Deferred credits and other liabilities
|
99
|
|
|
86
|
|
|
93
|
|
|
88
|
|
||||
Total financial liabilities
|
$
|
6,335
|
|
|
$
|
5,705
|
|
|
$
|
5,599
|
|
|
$
|
5,674
|
|
(a)
|
Excludes debt issuance costs.
|
|
December 31,
|
||||||
(In millions)
|
2019
|
|
2018
|
||||
Senior unsecured notes:
|
|
|
|
||||
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
|
|
|
900
|
|
||
4.400% notes due 2027(a)
|
1,000
|
|
|
1,000
|
|
||
6.800% notes due 2032(a)
|
550
|
|
|
550
|
|
||
6.600% notes due 2037(a)
|
750
|
|
|
750
|
|
||
5.200% notes due 2045(a)
|
500
|
|
|
500
|
|
||
Bonds:(c)
|
|
|
|
||||
2.00% bonds due 2037
|
200
|
|
|
—
|
|
||
2.10% bonds due 2037
|
200
|
|
|
—
|
|
||
2.20% bonds due 2037
|
200
|
|
|
—
|
|
||
Total(b)
|
5,536
|
|
|
5,536
|
|
||
Unamortized discount
|
(7
|
)
|
|
(8
|
)
|
||
Unamortized debt issuance cost
|
(28
|
)
|
|
(29
|
)
|
||
Total long-term debt
|
$
|
5,501
|
|
|
$
|
5,499
|
|
(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, 2019 may be declared immediately due and payable.
|
(c)
|
Mandatory purchase dates for these bonds: April 1, 2023 for the 2.00% bonds; July 1, 2024 for the 2.10% bonds; and July 1, 2026 for the 2.20% bonds. Subsequent to the various mandatory purchase dates, we will also have the right to convert and remarket these any time up to the 2037 maturity date.
|
(In millions)
|
|
||
2020
|
$
|
—
|
|
2021
|
—
|
|
|
2022
|
1,035
|
|
|
2023
|
401
|
|
|
2024
|
200
|
|
|
Thereafter
|
3,900
|
|
|
Total long-term debt, including current portion
|
$
|
5,536
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Exercise price per share
|
$
|
16.79
|
|
|
$
|
14.52
|
|
|
$
|
15.80
|
|
Expected annual dividend yield
|
1.2
|
%
|
|
1.4
|
%
|
|
1.3
|
%
|
|||
Expected life in years
|
5.82
|
|
|
6.45
|
|
|
6.4
|
|
|||
Expected volatility
|
43
|
%
|
|
43
|
%
|
|
42
|
%
|
|||
Risk-free interest rate
|
2.5
|
%
|
|
2.8
|
%
|
|
2.1
|
%
|
|||
Weighted average grant date fair value of stock option awards granted
|
$
|
6.62
|
|
|
$
|
5.83
|
|
|
$
|
6.07
|
|
|
Number of Shares
|
|
Weighted Average Exercise Price
|
|
Weighted Average Remaining Contractual Term
|
|
Aggregate Intrinsic Value
(in millions)
|
|||||
Outstanding at beginning of year
|
6,180,007
|
|
$
|
24.39
|
|
|
|
|
|
|||
Granted
|
648,526
|
|
$
|
16.79
|
|
|
|
|
|
|||
Exercised
|
(84,804)
|
|
$
|
8.17
|
|
|
|
|
|
|||
Canceled
|
(1,083,998)
|
|
$
|
25.45
|
|
|
|
|
|
|||
Outstanding at end of year
|
5,659,731
|
|
$
|
23.55
|
|
|
5 years
|
|
$
|
3
|
|
|
Exercisable at end of year
|
4,323,312
|
|
|
$
|
25.96
|
|
|
4 years
|
|
$
|
3
|
|
Expected to vest
|
1,319,850
|
|
|
$
|
15.76
|
|
|
8 years
|
|
$
|
—
|
|
|
Awards
|
|
Weighted Average Grant Date Fair Value
|
|||
Unvested at beginning of year
|
8,504,946
|
|
|
$
|
14.04
|
|
Granted
|
4,113,190
|
|
|
$
|
16.65
|
|
Vested and Exercised
|
(3,813,221
|
)
|
|
$
|
12.64
|
|
Canceled
|
(1,630,529
|
)
|
|
$
|
15.78
|
|
Unvested at end of year
|
7,174,386
|
|
|
$
|
15.88
|
|
|
2019(a)
|
|
2018
|
|
2017(b)
|
||||||
Valuation date stock price
|
$
|
16.79
|
|
|
$
|
13.69
|
|
|
$
|
13.58
|
|
Expected annual dividend yield
|
1.2
|
%
|
|
1.5
|
%
|
|
N/A
|
|
|||
Expected volatility
|
43
|
%
|
|
41
|
%
|
|
N/A
|
|
|||
Risk-free interest rate
|
2.5
|
%
|
|
1.5
|
%
|
|
N/A
|
|
|||
Fair value of stock-based performance units outstanding
|
$
|
20.66
|
|
|
$
|
17.29
|
|
|
$
|
14.18
|
|
(a)
|
Represents key assumptions at grant date, as 2019 performance unit awards are settled in stock.
|
(b)
|
N/A as these stock-based performance unit awards vested as of December 31, 2019 and as such the value is based on the final payout.
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||
(In millions)
|
U.S.
|
|
Int’l
|
|
U.S.
|
|
Int’l
|
|
U.S.
|
|
U.S.
|
||||||||||||
Accumulated benefit obligation
|
$
|
343
|
|
|
$
|
—
|
|
|
$
|
320
|
|
|
$
|
511
|
|
|
$
|
89
|
|
|
$
|
96
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Change in pension benefit obligations:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Beginning balance
|
$
|
326
|
|
|
$
|
511
|
|
|
$
|
384
|
|
|
$
|
599
|
|
|
$
|
96
|
|
|
$
|
221
|
|
Service cost
|
19
|
|
|
—
|
|
|
18
|
|
|
—
|
|
|
1
|
|
|
2
|
|
||||||
Interest cost
|
12
|
|
|
8
|
|
|
12
|
|
|
14
|
|
|
3
|
|
|
7
|
|
||||||
Plan amendment
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
(99
|
)
|
||||||
Divestiture(a)
|
—
|
|
|
(549
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Actuarial loss (gain)
|
48
|
|
|
36
|
|
|
(20
|
)
|
|
(38
|
)
|
|
9
|
|
|
(15
|
)
|
||||||
Foreign currency exchange rate changes
|
—
|
|
|
6
|
|
|
—
|
|
|
(29
|
)
|
|
—
|
|
|
—
|
|
||||||
Settlements paid
|
(45
|
)
|
|
—
|
|
|
(62
|
)
|
|
(23
|
)
|
|
—
|
|
|
—
|
|
||||||
Benefits paid
|
(6
|
)
|
|
(12
|
)
|
|
(6
|
)
|
|
(15
|
)
|
|
(20
|
)
|
|
(20
|
)
|
||||||
Ending balance
|
$
|
354
|
|
|
$
|
—
|
|
|
$
|
326
|
|
|
$
|
511
|
|
|
$
|
89
|
|
|
$
|
96
|
|
Change in fair value of plan assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Beginning balance
|
$
|
203
|
|
|
$
|
594
|
|
|
$
|
216
|
|
|
$
|
670
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Actual return on plan assets
|
44
|
|
|
68
|
|
|
(6
|
)
|
|
(21
|
)
|
|
—
|
|
|
—
|
|
||||||
Employer contributions
|
40
|
|
|
8
|
|
|
61
|
|
|
17
|
|
|
20
|
|
|
20
|
|
||||||
Foreign currency exchange rate changes
|
—
|
|
|
8
|
|
|
—
|
|
|
(34
|
)
|
|
—
|
|
|
—
|
|
||||||
Divestiture(a)
|
—
|
|
|
(666
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Settlements paid
|
(45
|
)
|
|
—
|
|
|
(62
|
)
|
|
(23
|
)
|
|
—
|
|
|
—
|
|
||||||
Benefits paid
|
(6
|
)
|
|
(12
|
)
|
|
(6
|
)
|
|
(15
|
)
|
|
(20
|
)
|
|
(20
|
)
|
||||||
Ending balance
|
$
|
236
|
|
|
$
|
—
|
|
|
$
|
203
|
|
|
$
|
594
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Funded status of plans at December 31
|
$
|
(118
|
)
|
|
$
|
—
|
|
|
$
|
(123
|
)
|
|
$
|
83
|
|
|
$
|
(89
|
)
|
|
$
|
(96
|
)
|
Amounts recognized in the consolidated balance sheets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Noncurrent assets
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
83
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Current liabilities
|
(6
|
)
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(18
|
)
|
|
(19
|
)
|
||||||
Noncurrent liabilities
|
(112
|
)
|
|
—
|
|
|
(118
|
)
|
|
—
|
|
|
(71
|
)
|
|
(77
|
)
|
||||||
Accrued benefit cost
|
$
|
(118
|
)
|
|
$
|
—
|
|
|
$
|
(123
|
)
|
|
$
|
83
|
|
|
$
|
(89
|
)
|
|
$
|
(96
|
)
|
Pretax amounts in accumulated other comprehensive loss:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net loss
|
$
|
85
|
|
|
$
|
—
|
|
|
$
|
90
|
|
|
$
|
59
|
|
|
$
|
23
|
|
|
$
|
14
|
|
Prior service cost
|
(29
|
)
|
|
—
|
|
|
(36
|
)
|
|
5
|
|
|
(129
|
)
|
|
(147
|
)
|
(a)
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||||||||||||||||||||||||||
|
Year Ended December 31,
|
|
Year Ended December 31,
|
||||||||||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||||||||
(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
|
$
|
19
|
|
|
$
|
—
|
|
|
$
|
18
|
|
|
$
|
—
|
|
|
$
|
22
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
2
|
|
Interest cost
|
12
|
|
|
8
|
|
|
12
|
|
|
14
|
|
|
13
|
|
|
17
|
|
|
3
|
|
|
7
|
|
|
8
|
|
|||||||||
Expected return on plan assets
|
(10
|
)
|
|
(11
|
)
|
|
(11
|
)
|
|
(24
|
)
|
|
(13
|
)
|
|
(30
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
- prior service credit
|
(7
|
)
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
(19
|
)
|
|
(8
|
)
|
|
(7
|
)
|
|||||||||
- actuarial loss
|
7
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
8
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|||||||||
Net settlement loss(a)
|
12
|
|
|
—
|
|
|
18
|
|
|
3
|
|
|
28
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Net periodic benefit cost(b)
|
$
|
33
|
|
|
$
|
(3
|
)
|
|
$
|
38
|
|
|
$
|
(7
|
)
|
|
$
|
48
|
|
|
$
|
(8
|
)
|
|
$
|
(14
|
)
|
|
$
|
2
|
|
|
$
|
3
|
|
Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss (pretax):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Actuarial loss (gain)
|
$
|
14
|
|
|
$
|
(21
|
)
|
|
$
|
(4
|
)
|
|
$
|
8
|
|
|
$
|
28
|
|
|
$
|
(26
|
)
|
|
$
|
9
|
|
|
$
|
(15
|
)
|
|
$
|
5
|
|
Amortization of actuarial gain (loss)
|
(19
|
)
|
|
(41
|
)
|
|
(29
|
)
|
|
(3
|
)
|
|
(36
|
)
|
|
(4
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|||||||||
Prior service cost (credit)
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(99
|
)
|
|
—
|
|
|||||||||
Amortization of prior service credit (cost)
|
7
|
|
|
(6
|
)
|
|
10
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
19
|
|
|
8
|
|
|
7
|
|
|||||||||
Total recognized in other comprehensive (income) loss
|
$
|
2
|
|
|
$
|
(68
|
)
|
|
$
|
(23
|
)
|
|
$
|
8
|
|
|
$
|
2
|
|
|
$
|
(30
|
)
|
|
$
|
27
|
|
|
$
|
(107
|
)
|
|
$
|
12
|
|
Total recognized in net periodic benefit cost and other comprehensive (income) loss
|
$
|
35
|
|
|
$
|
(71
|
)
|
|
$
|
15
|
|
|
$
|
1
|
|
|
$
|
50
|
|
|
$
|
(38
|
)
|
|
$
|
13
|
|
|
$
|
(105
|
)
|
|
$
|
15
|
|
(a)
|
Settlements are recognized as they occur, once it is probable that lump sum payments from a plan for a given year will exceed the plan’s total service and interest costs for that year.
|
(b)
|
Net periodic benefit cost reflects a calculated market-related value of plan assets which recognizes changes in fair value over three years.
|
|
Pension Benefits
|
|
Other Benefits
|
|||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|||||||||||||
(In millions)
|
U.S.
|
|
U.S.
|
|
Int’l
|
|
U.S.
|
|
Int’l
|
|
U.S.
|
|
U.S.
|
|
U.S.
|
|||||||||
Weighted average assumptions used to determine benefit obligation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Discount rate
|
3.13
|
%
|
|
4.26
|
%
|
|
2.90
|
%
|
|
3.55
|
%
|
|
2.50
|
%
|
|
2.91
|
%
|
|
4.09
|
%
|
|
3.54
|
%
|
|
Rate of compensation increase
|
4.50
|
%
|
|
4.00
|
%
|
|
—
|
%
|
|
4.00
|
%
|
|
—
|
%
|
|
4.50
|
%
|
|
4.00
|
%
|
|
4.00
|
%
|
|
Weighted average assumptions used to determine net periodic benefit cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Discount rate
|
3.70
|
%
|
|
3.88
|
%
|
|
2.50
|
%
|
|
3.86
|
%
|
|
2.70
|
%
|
|
4.09
|
%
|
|
3.54
|
%
|
|
3.98
|
%
|
|
Expected long-term return on plan assets
|
6.25
|
%
|
|
6.50
|
%
|
|
3.70
|
%
|
|
6.50
|
%
|
|
4.50
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
Rate of compensation increase
|
4.00
|
%
|
|
4.00
|
%
|
|
—
|
%
|
|
4.00
|
%
|
|
—
|
%
|
|
4.00
|
%
|
|
4.00
|
%
|
|
4.00
|
%
|
|
December 31, 2019
|
||||||||||||||
(In millions)
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||
Cash and cash equivalents(a)
|
$
|
(7
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(7
|
)
|
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Common stock
|
75
|
|
|
—
|
|
|
—
|
|
|
75
|
|
||||
Private equity
|
—
|
|
|
—
|
|
|
10
|
|
|
10
|
|
||||
Pooled funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Fixed income securities:
|
|
|
|
|
|
|
|
||||||||
Corporate
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||
Exchange traded funds
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
||||
Government
|
31
|
|
|
11
|
|
|
5
|
|
|
47
|
|
||||
Pooled funds
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Other
|
—
|
|
|
—
|
|
|
18
|
|
|
18
|
|
||||
Total investments, at fair value
|
102
|
|
|
13
|
|
|
33
|
|
|
148
|
|
||||
Commingled funds(b)
|
—
|
|
|
—
|
|
|
—
|
|
|
88
|
|
||||
Total investments
|
$
|
102
|
|
|
$
|
13
|
|
|
$
|
33
|
|
|
$
|
236
|
|
|
December 31, 2018
|
||||||||||||||||||||||||||||||
(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(a)
|
$
|
(1
|
)
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
5
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Common stock
|
75
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
75
|
|
|
—
|
|
||||||||
Private equity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
—
|
|
|
14
|
|
|
—
|
|
||||||||
Pooled funds
|
—
|
|
|
—
|
|
|
—
|
|
|
191
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
191
|
|
||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Corporate
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
||||||||
Government
|
22
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
34
|
|
|
—
|
|
||||||||
Pooled funds
|
—
|
|
|
—
|
|
|
—
|
|
|
398
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
398
|
|
||||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
17
|
|
|
—
|
|
||||||||
Total investments, at fair value
|
96
|
|
|
5
|
|
|
13
|
|
|
589
|
|
|
34
|
|
|
—
|
|
|
143
|
|
|
594
|
|
||||||||
Commingled funds(b)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
60
|
|
|
—
|
|
||||||||
Total investments
|
$
|
96
|
|
|
$
|
5
|
|
|
$
|
13
|
|
|
$
|
589
|
|
|
$
|
34
|
|
|
$
|
—
|
|
|
$
|
203
|
|
|
$
|
594
|
|
(a)
|
The negative cash balance was due to the timing of when investment trades occur and when they settle.
|
(b)
|
After the adoption of the FASB update for the fair value hierarchy, we separately report the investments for which fair value was measured using the net asset value per share as a practical expedient. Amounts presented in this table are intended to reconcile the fair value hierarchy to the pension plan assets.
|
(In millions)
|
Pension Benefits
|
|
Other Benefits
|
||||
2020
|
$
|
39
|
|
|
$
|
18
|
|
2021
|
35
|
|
|
10
|
|
||
2022
|
31
|
|
|
9
|
|
||
2023
|
29
|
|
|
8
|
|
||
2024
|
27
|
|
|
7
|
|
||
2025 through 2029
|
116
|
|
|
25
|
|
|
Year Ended December 31,
|
|
||||||
(In millions)
|
2019
|
|
2018
|
Income Statement Line
|
||||
Postretirement and postemployment plans
|
|
|
|
|
||||
Amortization of prior service credit
|
$
|
26
|
|
|
$
|
18
|
|
Other net periodic benefit costs
|
Amortization of actuarial loss
|
(8
|
)
|
|
(12
|
)
|
Other net periodic benefit costs
|
||
Net settlement loss, net of tax
|
(12
|
)
|
|
(20
|
)
|
Other net periodic benefit costs
|
||
|
6
|
|
|
(14
|
)
|
|
||
Other
|
|
|
|
|
||||
U.K pension plan transferred to buyer (a)(b)
|
83
|
|
|
—
|
|
|
||
Foreign currency translation adjustment related to sale of U.K. business(b)
|
30
|
|
|
—
|
|
|
||
Income taxes related to sale of U.K. business (b)
|
(45
|
)
|
|
—
|
|
|
||
|
68
|
|
|
—
|
|
Net gain on disposal of assets
|
||
Other insignificant items, net of tax
|
1
|
|
|
—
|
|
Net interest and other
|
||
Total reclassifications to expense, net of tax
|
$
|
75
|
|
|
$
|
(14
|
)
|
Net income (loss)
|
(a)
|
(b)
|
|
Year Ended December 31,
|
||||||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Included in operating activities:
|
|
|
|
|
|
||||||
Interest paid, net of amounts capitalized
|
$
|
269
|
|
|
$
|
270
|
|
|
$
|
379
|
|
Income taxes paid to taxing authorities, net of refunds received(a)
|
73
|
|
|
287
|
|
|
391
|
|
|||
Noncash investing activities, related to continuing operations:
|
|
|
|
|
|
||||||
Increase (decrease) in asset retirement costs
|
$
|
80
|
|
|
$
|
(183
|
)
|
|
$
|
(202
|
)
|
Asset retirement obligations assumed by buyer(b)
|
1,082
|
|
|
82
|
|
|
14
|
|
|||
Notes receivable for disposition of assets
|
—
|
|
|
—
|
|
|
748
|
|
(a)
|
2019, 2018 and 2017 includes $90 million, $37 million and $1 million, related to tax refunds. 2017 included a payment of $108 million made to the U.K. tax authorities to preserve our appeal rights, see Note 25 for additional discussion.
|
(b)
|
In 2019, our dispositions include the sale of the Droshky field (Gulf of Mexico), the sale of our non-operated interest in the Atrush block in Kurdistan and the sale of our U.K. business. See Note 5 for further detail on dispositions.
|
|
Year Ended December 31,
|
||||||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Interest:
|
|
|
|
|
|
||||||
Interest income
|
$
|
25
|
|
|
$
|
32
|
|
|
$
|
34
|
|
Interest expense
|
(280
|
)
|
|
(280
|
)
|
|
(380
|
)
|
|||
Income on interest rate swaps
|
—
|
|
|
—
|
|
|
53
|
|
|||
Interest capitalized
|
—
|
|
|
—
|
|
|
3
|
|
|||
Total interest
|
(255
|
)
|
|
(248
|
)
|
|
(290
|
)
|
|||
Other:
|
|
|
|
|
|
||||||
Net foreign currency gain (loss)
|
4
|
|
|
9
|
|
|
8
|
|
|||
Other
|
7
|
|
|
13
|
|
|
12
|
|
|||
Total other
|
11
|
|
|
22
|
|
|
20
|
|
|||
Net interest and other
|
$
|
(244
|
)
|
|
$
|
(226
|
)
|
|
$
|
(270
|
)
|
|
Year Ended December 31,
|
||||||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Net interest and other
|
$
|
4
|
|
|
$
|
9
|
|
|
$
|
8
|
|
Provision for income taxes
|
2
|
|
|
10
|
|
|
57
|
|
|||
Aggregate foreign currency gains
|
$
|
6
|
|
|
$
|
19
|
|
|
$
|
65
|
|
•
|
EGHoldings, in which we have a 60% noncontrolling interest. EGHoldings is engaged in LNG production activity.
|
•
|
AMPCO, in which we have a 45% noncontrolling interest. AMPCO is engaged in methanol production activity.
|
|
Ownership as of
|
|
December 31,
|
||||||
(In millions)
|
December 31, 2019
|
|
2019
|
|
2018
|
||||
EGHoldings
|
60%
|
|
$
|
310
|
|
|
$
|
402
|
|
Alba Plant LLC
|
52%
|
|
163
|
|
|
167
|
|
||
AMPCO
|
45%
|
|
190
|
|
|
176
|
|
||
Total
|
|
|
$
|
663
|
|
|
$
|
745
|
|
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Income data – year:
|
|
|
|
|
|
||||||
Revenues and other income
|
$
|
832
|
|
|
$
|
1,269
|
|
|
$
|
1,294
|
|
Income from operations
|
250
|
|
|
588
|
|
|
631
|
|
|||
Net income
|
187
|
|
|
459
|
|
|
508
|
|
|||
Balance sheet data – December 31:
|
|
|
|
|
|
||||||
Current assets
|
$
|
455
|
|
|
$
|
559
|
|
|
|
||
Noncurrent assets
|
1,049
|
|
|
931
|
|
|
|
||||
Current liabilities
|
284
|
|
|
253
|
|
|
|
||||
Noncurrent liabilities
|
183
|
|
|
87
|
|
|
|
|
2019
|
|
2018
|
|
||||||||||||||||||||||||||||
(In millions,
except per share data)
|
1st Qtr.
|
|
2nd Qtr.
|
|
3rd Qtr.
|
|
4th Qtr.
|
|
1st Qtr.
|
|
2nd Qtr.
|
|
3rd Qtr.
|
|
4th Qtr.
|
|
||||||||||||||||
Revenues from contracts with customers
|
$
|
1,200
|
|
|
$
|
1,381
|
|
|
$
|
1,249
|
|
|
$
|
1,233
|
|
|
$
|
1,537
|
|
|
$
|
1,447
|
|
|
$
|
1,538
|
|
|
$
|
1,380
|
|
|
Income (loss) before income taxes
|
27
|
|
(a)
|
193
|
|
|
175
|
|
|
(3
|
)
|
(a)
|
524
|
|
|
140
|
|
|
357
|
|
|
406
|
|
(b)
|
||||||||
Net income (loss)
|
$
|
174
|
|
|
$
|
161
|
|
|
$
|
165
|
|
|
$
|
(20
|
)
|
|
$
|
356
|
|
|
$
|
96
|
|
|
$
|
254
|
|
|
$
|
390
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Income (loss) per basic and diluted share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net income (loss)
|
$
|
0.21
|
|
|
$
|
0.20
|
|
|
$
|
0.21
|
|
|
$
|
(0.03
|
)
|
|
$
|
0.42
|
|
|
$
|
0.11
|
|
|
$
|
0.30
|
|
|
$
|
0.47
|
|
|
Dividends paid per share
|
$
|
0.05
|
|
|
$
|
0.05
|
|
|
$
|
0.05
|
|
|
$
|
0.05
|
|
|
$
|
0.05
|
|
|
$
|
0.05
|
|
|
$
|
0.05
|
|
|
$
|
0.05
|
|
|
(a)
|
The first and fourth quarter of 2019 includes mark-to-market loss on commodity derivatives of $113 million and $55 million.
|
(b)
|
The fourth quarter of 2018 includes a mark-to-market gain on commodity derivatives of $336 million and unproved property impairments and exploratory dry well costs of $49 million in the fourth quarter of 2018. (See Item 8. Financial Statements and Supplementary Data - Note 11 to the consolidated financial statements). Additionally, the first quarter of 2018 includes a gain on sale of our Libya subsidiary of $255 million. (See Item 8. Financial Statements and Supplementary Data - Note 5 to the consolidated financial statements).
|
|
2019 SEC Pricing
|
||
WTI Crude oil (per bbl)
|
$
|
55.69
|
|
Henry Hub natural gas (per mmbtu)
|
$
|
2.58
|
|
Brent crude oil (per bbl)
|
$
|
63.15
|
|
Mont Belvieu NGLs (per bbl)
|
$
|
18.41
|
|
(mmbbl)
|
U.S.
|
|
E.G.(a)
|
|
Libya(b)
|
|
Other Int'l(c)
|
|
Cont Ops(d)
|
|||||
Crude oil and condensate
|
|
|
|
|
|
|
|
|
|
|||||
Proved developed and undeveloped reserves:
|
||||||||||||||
Beginning of year - 2017
|
563
|
|
|
45
|
|
|
172
|
|
|
22
|
|
|
802
|
|
Revisions of previous estimates
|
9
|
|
|
(2
|
)
|
|
—
|
|
|
8
|
|
|
15
|
|
Purchases of reserves in place
|
18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18
|
|
Extensions, discoveries and other additions
|
30
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
34
|
|
Production
|
(49
|
)
|
|
(8
|
)
|
|
(7
|
)
|
|
(4
|
)
|
|
(68
|
)
|
Sales of reserves in place
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
End of year - 2017
|
570
|
|
|
39
|
|
|
165
|
|
|
26
|
|
|
800
|
|
Revisions of previous estimates
|
49
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|
55
|
|
Extensions, discoveries and other additions
|
42
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
44
|
|
Production
|
(63
|
)
|
|
(6
|
)
|
|
(3
|
)
|
|
(5
|
)
|
|
(77
|
)
|
Sales of reserves in place
|
(3
|
)
|
|
—
|
|
|
(162
|
)
|
|
(1
|
)
|
|
(166
|
)
|
End of year - 2018
|
595
|
|
|
36
|
|
|
—
|
|
|
25
|
|
|
656
|
|
Revisions of previous estimates
|
34
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
37
|
|
Purchases of reserves in place
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
Extensions, discoveries and other additions
|
53
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
53
|
|
Production
|
(69
|
)
|
|
(6
|
)
|
|
—
|
|
|
(2
|
)
|
|
(77
|
)
|
Sales of reserves in place
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(23
|
)
|
|
(26
|
)
|
End of year - 2019
|
619
|
|
|
33
|
|
|
—
|
|
|
—
|
|
|
652
|
|
Proved developed reserves:
|
|
|
|
|
|
|
|
|
|
|||||
Beginning of year - 2017
|
238
|
|
|
45
|
|
|
172
|
|
|
13
|
|
|
468
|
|
End of year - 2017
|
263
|
|
|
39
|
|
|
165
|
|
|
17
|
|
|
484
|
|
End of year - 2018
|
287
|
|
|
36
|
|
|
—
|
|
|
22
|
|
|
345
|
|
End of year - 2019
|
304
|
|
|
30
|
|
|
—
|
|
|
—
|
|
|
334
|
|
Proved undeveloped reserves:
|
|
|
|
|
|
|
|
|
|
|||||
Beginning of year - 2017
|
325
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
334
|
|
End of year - 2017
|
307
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
316
|
|
End of year - 2018
|
308
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
311
|
|
End of year - 2019
|
315
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
318
|
|
(mmbbl)
|
U.S.
|
|
E.G.(a)
|
|
Libya(b)
|
|
Other Int'l(c)
|
|
Cont Ops(d)
|
|||||
Natural gas liquids
|
|
|
|
|
|
|
|
|
|
|||||
Proved developed and undeveloped reserves:
|
||||||||||||||
Beginning of year - 2017
|
170
|
|
|
24
|
|
|
—
|
|
|
—
|
|
|
194
|
|
Revisions of previous estimates
|
37
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
40
|
|
Purchases of reserves in place
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
Extensions, discoveries and other additions
|
34
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
36
|
|
Production
|
(16
|
)
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
(20
|
)
|
Sales of reserves in place
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
End of year - 2017
|
229
|
|
|
25
|
|
|
—
|
|
|
—
|
|
|
254
|
|
Revisions of previous estimates
|
(9
|
)
|
|
1
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
Extensions, discoveries and other additions
|
25
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25
|
|
Production
|
(20
|
)
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
(24
|
)
|
Sales of reserves in place
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
End of year - 2018
|
224
|
|
|
22
|
|
|
—
|
|
|
—
|
|
|
246
|
|
Revisions of previous estimates
|
(21
|
)
|
|
2
|
|
|
—
|
|
|
—
|
|
|
(19
|
)
|
Purchases of reserves in place
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
Extensions, discoveries and other additions
|
19
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19
|
|
Production
|
(22
|
)
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(25
|
)
|
Sales of reserves in place
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
End of year - 2019
|
204
|
|
|
21
|
|
|
—
|
|
|
—
|
|
|
225
|
|
Proved developed reserves:
|
|
|
|
|
|
|
|
|
|
|||||
Beginning of year - 2017
|
78
|
|
|
24
|
|
|
—
|
|
|
—
|
|
|
102
|
|
End of year - 2017
|
118
|
|
|
25
|
|
|
—
|
|
|
—
|
|
|
143
|
|
End of year - 2018
|
119
|
|
|
22
|
|
|
—
|
|
|
—
|
|
|
141
|
|
End of year - 2019
|
122
|
|
|
19
|
|
|
—
|
|
|
—
|
|
|
141
|
|
Proved undeveloped reserves:
|
|
|
|
|
|
|
|
|
|
|||||
Beginning of year - 2017
|
92
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
92
|
|
End of year - 2017
|
111
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
111
|
|
End of year - 2018
|
105
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
105
|
|
End of year - 2019
|
82
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
84
|
|
(bcf)
|
U.S.
|
|
E.G.(a)
|
|
Libya(b)
|
|
Other Int'l(c)
|
|
Cont Ops(d)
|
|||||
Natural gas
|
|
|
|
|
|
|
|
|
|
|||||
Proved developed and undeveloped reserves:
|
||||||||||||||
Beginning of year - 2017
|
1,288
|
|
|
943
|
|
|
205
|
|
|
10
|
|
|
2,446
|
|
Revisions of previous estimates
|
(33
|
)
|
|
(18
|
)
|
|
—
|
|
|
4
|
|
|
(47
|
)
|
Purchases of reserves in place
|
36
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
36
|
|
Extensions, discoveries and other additions
|
204
|
|
|
76
|
|
|
—
|
|
|
—
|
|
|
280
|
|
Production(e)
|
(127
|
)
|
|
(168
|
)
|
|
(1
|
)
|
|
(6
|
)
|
|
(302
|
)
|
Sales of reserves in place
|
(44
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(44
|
)
|
End of year - 2017
|
1,324
|
|
|
833
|
|
|
204
|
|
|
8
|
|
|
2,369
|
|
Revisions of previous estimates
|
188
|
|
|
35
|
|
|
—
|
|
|
4
|
|
|
227
|
|
Extensions, discoveries and other additions
|
198
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
198
|
|
Production(e)
|
(156
|
)
|
|
(153
|
)
|
|
(1
|
)
|
|
(5
|
)
|
|
(315
|
)
|
Sales of reserves in place
|
(1
|
)
|
|
—
|
|
|
(203
|
)
|
|
—
|
|
|
(204
|
)
|
End of year - 2018
|
1,553
|
|
|
715
|
|
|
—
|
|
|
7
|
|
|
2,275
|
|
Revisions of previous estimates
|
(223
|
)
|
|
108
|
|
|
—
|
|
|
—
|
|
|
(115
|
)
|
Purchases of reserves in place
|
28
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28
|
|
Extensions, discoveries and other additions
|
118
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
118
|
|
Production(e)
|
(160
|
)
|
|
(133
|
)
|
|
—
|
|
|
(3
|
)
|
|
(296
|
)
|
Sales of reserves in place
|
(38
|
)
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
(42
|
)
|
End of year - 2019
|
1,278
|
|
|
690
|
|
|
—
|
|
|
—
|
|
|
1,968
|
|
Proved developed reserves:
|
|
|
|
|
|
|
|
|
|
|||||
Beginning of year - 2017
|
648
|
|
|
943
|
|
|
95
|
|
|
5
|
|
|
1,691
|
|
End of year - 2017
|
726
|
|
|
833
|
|
|
94
|
|
|
2
|
|
|
1,655
|
|
End of year - 2018
|
869
|
|
|
715
|
|
|
—
|
|
|
7
|
|
|
1,591
|
|
End of year - 2019
|
825
|
|
|
649
|
|
|
—
|
|
|
—
|
|
|
1,474
|
|
Proved undeveloped reserves:
|
|
|
|
|
|
|
|
|
|
|||||
Beginning of year - 2017
|
640
|
|
|
—
|
|
|
110
|
|
|
5
|
|
|
755
|
|
End of year - 2017
|
598
|
|
|
—
|
|
|
110
|
|
|
6
|
|
|
714
|
|
End of year - 2018
|
684
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
684
|
|
End of year - 2019
|
453
|
|
|
41
|
|
|
—
|
|
|
—
|
|
|
494
|
|
(mmbbl)
|
Disc Ops
|
|
Synthetic crude oil
|
|
|
Proved developed and undeveloped reserves:
|
||
Beginning of year - 2017
|
692
|
|
Production
|
(7
|
)
|
Sales of reserves in place
|
(685
|
)
|
End of year - 2017
|
—
|
|
Proved developed reserves:
|
|
|
Beginning of year - 2017
|
692
|
|
End of year - 2017
|
—
|
|
Proved undeveloped reserves:
|
|
|
Beginning of year - 2017
|
—
|
|
End of year - 2017
|
—
|
|
(mmboe)
|
U.S.
|
|
E.G.(a)
|
|
Libya(b)
|
|
Other Int'l(c)
|
|
Cont Ops(d)
|
|
Disc Ops
|
|
Total
|
|||||||
Total Proved Reserves
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Proved developed and undeveloped reserves:
|
||||||||||||||||||||
Beginning of year - 2017
|
948
|
|
|
226
|
|
|
206
|
|
|
24
|
|
|
1,404
|
|
|
692
|
|
|
2,096
|
|
Revisions of previous estimates
|
42
|
|
|
(1
|
)
|
|
—
|
|
|
8
|
|
|
49
|
|
|
—
|
|
|
49
|
|
Purchases of reserves in place
|
28
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28
|
|
|
—
|
|
|
28
|
|
Extensions, discoveries and
other additions |
98
|
|
|
18
|
|
|
—
|
|
|
—
|
|
|
116
|
|
|
—
|
|
|
116
|
|
Production(e)
|
(86
|
)
|
|
(40
|
)
|
|
(7
|
)
|
|
(5
|
)
|
|
(138
|
)
|
|
(7
|
)
|
|
(145
|
)
|
Sales of reserves in place
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
(685
|
)
|
|
(695
|
)
|
End of year - 2017
|
1,020
|
|
|
203
|
|
|
199
|
|
|
27
|
|
|
1,449
|
|
|
—
|
|
|
1,449
|
|
Revisions of previous estimates
|
71
|
|
|
8
|
|
|
—
|
|
|
5
|
|
|
84
|
|
|
—
|
|
|
84
|
|
Extensions, discoveries and
other additions |
100
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
102
|
|
|
—
|
|
|
102
|
|
Production(e)
|
(109
|
)
|
|
(35
|
)
|
|
(3
|
)
|
|
(6
|
)
|
|
(153
|
)
|
|
—
|
|
|
(153
|
)
|
Sales of reserves in place
|
(4
|
)
|
|
—
|
|
|
(196
|
)
|
|
(1
|
)
|
|
(201
|
)
|
|
—
|
|
|
(201
|
)
|
End of year - 2018
|
1,078
|
|
|
176
|
|
|
—
|
|
|
27
|
|
|
1,281
|
|
|
—
|
|
|
1,281
|
|
Revisions of previous estimates
|
(23
|
)
|
|
24
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
Purchases of reserves in place
|
18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|
—
|
|
|
18
|
|
Extensions, discoveries and
other additions |
91
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
91
|
|
|
—
|
|
|
91
|
|
Production(e)
|
(117
|
)
|
|
(31
|
)
|
|
—
|
|
|
(3
|
)
|
|
(151
|
)
|
|
—
|
|
|
(151
|
)
|
Sales of reserves in place
|
(11
|
)
|
|
—
|
|
|
—
|
|
|
(24
|
)
|
|
(35
|
)
|
|
—
|
|
|
(35
|
)
|
End of year - 2019
|
1,036
|
|
|
169
|
|
|
—
|
|
|
—
|
|
|
1,205
|
|
|
—
|
|
|
1,205
|
|
Proved developed reserves:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Beginning of year - 2017
|
424
|
|
|
226
|
|
|
188
|
|
|
14
|
|
|
852
|
|
|
692
|
|
|
1,544
|
|
End of year - 2017
|
502
|
|
|
203
|
|
|
181
|
|
|
17
|
|
|
903
|
|
|
—
|
|
|
903
|
|
End of year - 2018
|
552
|
|
|
176
|
|
|
—
|
|
|
24
|
|
|
752
|
|
|
—
|
|
|
752
|
|
End of year - 2019
|
563
|
|
|
158
|
|
|
—
|
|
|
—
|
|
|
721
|
|
|
—
|
|
|
721
|
|
Proved undeveloped reserves:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Beginning of year - 2017
|
524
|
|
|
—
|
|
|
18
|
|
|
10
|
|
|
552
|
|
|
—
|
|
|
552
|
|
End of year - 2017
|
518
|
|
|
—
|
|
|
18
|
|
|
10
|
|
|
546
|
|
|
—
|
|
|
546
|
|
End of year - 2018
|
526
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
529
|
|
|
—
|
|
|
529
|
|
End of year - 2019
|
473
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
484
|
|
|
—
|
|
|
484
|
|
(a)
|
Consists of estimated reserves from properties governed by production sharing contracts.
|
(b)
|
In 2018, we closed on the sale of our subsidiary, Marathon Oil Libya Limited.
|
(c)
|
In 2019, we closed on the sale of our U.K. business and our non-operated interested in the Atrush block of Kurdistan. These volumes are reflected in Other Int’l in the tables above for the periods presented.
|
(d)
|
Continuing operations (“Cont Ops”) excludes the sale of our Canada business which was reflected as discontinued operations (“Disc Ops”) in 2017. Proved reserves in our Canada business consisted entirely of synthetic crude oil.
|
(e)
|
Excludes the resale of purchased natural gas used in reservoir management.
|
•
|
Revisions of previous estimates: Increased by 1 mmboe as referenced below:
|
•
|
Purchases of reserves in place: Increased by 18 mmboe due to the acquisition in the Eagle Ford.
|
•
|
Extensions, discoveries, and other additions: Increased by 91 mmboe in the U.S. resource plays as referenced below:
|
•
|
Production: Decreased by 151 mmboe.
|
•
|
Sales of reserves in place: Decreased by 35 mmboe as referenced below:
|
•
|
Revisions of previous estimates: Increased by 84 mmboe as referenced below:
|
•
|
108 mmboe associated with the acceleration of higher economic wells in the U.S. resource plays into the 5-year plan
|
•
|
Extensions, discoveries, and other additions: Increased by 102 mmboe primarily in the U.S. resource plays as referenced below:
|
•
|
Production: Decreased by 153 mmboe.
|
•
|
Sales of reserves in place: Decreased by 201 mmboe as referenced below:
|
•
|
Revisions of previous estimates: Increased by 49 mmboe as referenced below:
|
•
|
Extensions, discoveries, and other additions: Increased by 116 mmboe primarily due to an increase of 97 mmboe associated with the expansion of proved areas and wells to sales from unproved categories in Oklahoma.
|
•
|
Purchases of reserves in place: Increased by 28 mmboe from acquisitions of assets in the Northern Delaware Basin in New Mexico.
|
•
|
Production: Decreased by 145 mmboe.
|
•
|
Sales of reserves in place: Decreased by 695 mmboe as referenced below:
|
•
|
10 mmboe associated with divestitures of certain conventional assets in Oklahoma and Colorado. See Item 8. Financial Statements and Supplementary Data - Note 5 to the consolidated financial statements for information regarding these dispositions.
|
(In millions)
|
Future Development Costs
|
||
2020
|
$
|
1,464
|
|
2021
|
1,568
|
|
|
2022
|
1,562
|
|
|
2023
|
1,456
|
|
|
2024
|
913
|
|
(In millions)
|
U.S.
|
|
E.G.
|
|
Other Int’l
|
|
Total
|
||||||||
Year Ended December 31, 2019
|
|
|
|
|
|
|
|
||||||||
Capitalized Costs:
|
|
|
|
|
|
|
|
||||||||
Proved properties
|
$
|
29,250
|
|
|
$
|
2,042
|
|
|
$
|
—
|
|
|
$
|
31,292
|
|
Unproved properties
|
2,880
|
|
|
12
|
|
|
—
|
|
|
2,892
|
|
||||
Total
|
32,130
|
|
|
2,054
|
|
|
—
|
|
|
34,184
|
|
||||
Accumulated depreciation, depletion and amortization:
|
|
|
|
|
|
|
|
||||||||
Proved properties
|
15,435
|
|
|
1,568
|
|
|
—
|
|
|
17,003
|
|
||||
Unproved properties(a)
|
357
|
|
|
(7
|
)
|
|
—
|
|
|
350
|
|
||||
Total
|
15,792
|
|
|
1,561
|
|
|
—
|
|
|
17,353
|
|
||||
Net capitalized costs
|
$
|
16,338
|
|
|
$
|
493
|
|
|
$
|
—
|
|
|
$
|
16,831
|
|
Year Ended December 31, 2018
|
|
|
|
|
|
|
|
||||||||
Capitalized Costs:
|
|
|
|
|
|
|
|
||||||||
Proved properties
|
$
|
27,983
|
|
|
$
|
2,041
|
|
|
$
|
4,828
|
|
|
$
|
34,852
|
|
Unproved properties
|
2,977
|
|
|
11
|
|
|
—
|
|
|
2,988
|
|
||||
Total
|
30,960
|
|
|
2,052
|
|
|
4,828
|
|
|
37,840
|
|
||||
Accumulated depreciation, depletion and amortization:
|
|
|
|
|
|
|
|
||||||||
Proved properties
|
14,742
|
|
|
1,471
|
|
|
4,706
|
|
|
20,919
|
|
||||
Unproved properties(a)
|
299
|
|
|
(7
|
)
|
|
—
|
|
|
292
|
|
||||
Total
|
15,041
|
|
|
1,464
|
|
|
4,706
|
|
|
21,211
|
|
||||
Net capitalized costs
|
$
|
15,919
|
|
|
$
|
588
|
|
|
$
|
122
|
|
|
$
|
16,629
|
|
(a)
|
(In millions)
|
U.S.
|
|
E.G.
|
|
Libya
|
|
Other Int’l
|
|
Cont Ops
|
|
Disc Ops
|
|
Total
|
||||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Property acquisition:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Proved
|
$
|
93
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
93
|
|
|
$
|
—
|
|
|
$
|
93
|
|
Unproved
|
282
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
282
|
|
|
—
|
|
|
282
|
|
|||||||
Exploration
|
862
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
862
|
|
|
—
|
|
|
862
|
|
|||||||
Development
|
1,675
|
|
|
1
|
|
|
—
|
|
|
23
|
|
|
1,699
|
|
|
—
|
|
|
1,699
|
|
|||||||
Total
|
$
|
2,912
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
23
|
|
|
$
|
2,936
|
|
|
$
|
—
|
|
|
$
|
2,936
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Property acquisition:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Proved
|
$
|
211
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11
|
|
|
$
|
222
|
|
|
$
|
—
|
|
|
$
|
222
|
|
Unproved
|
144
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
144
|
|
|
—
|
|
|
144
|
|
|||||||
Exploration
|
929
|
|
|
1
|
|
|
—
|
|
|
(9
|
)
|
|
921
|
|
|
—
|
|
|
921
|
|
|||||||
Development
|
1,332
|
|
|
(2
|
)
|
|
—
|
|
|
(126
|
)
|
(b)
|
1,204
|
|
|
—
|
|
|
1,204
|
|
|||||||
Total
|
$
|
2,616
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
(124
|
)
|
|
$
|
2,491
|
|
|
$
|
—
|
|
|
$
|
2,491
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Property acquisition:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Proved
|
$
|
191
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
192
|
|
|
$
|
—
|
|
|
$
|
192
|
|
Unproved
|
1,746
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1,747
|
|
|
—
|
|
|
1,747
|
|
|||||||
Exploration
|
882
|
|
|
1
|
|
|
—
|
|
|
40
|
|
|
923
|
|
|
—
|
|
|
923
|
|
|||||||
Development
|
1,122
|
|
|
5
|
|
|
10
|
|
|
(144
|
)
|
(b)
|
993
|
|
|
6
|
|
|
999
|
|
|||||||
Total
|
$
|
3,941
|
|
|
$
|
7
|
|
|
$
|
10
|
|
|
$
|
(103
|
)
|
|
$
|
3,855
|
|
|
$
|
6
|
|
|
$
|
3,861
|
|
(a)
|
Includes costs incurred whether capitalized or expensed.
|
(b)
|
Includes revisions to asset retirement costs primarily due to changes in U.K. estimated costs as well as timing of abandonment activities.
|
|
U.S.
|
|
E.G.
|
|
Libya
|
|
Other Int’l
|
|
Cont Ops
|
|
Disc Ops
|
|
Total
|
||||||||||||||
Year Ended December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Revenues and other income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Sales
|
$
|
4,472
|
|
|
$
|
307
|
|
|
$
|
—
|
|
|
$
|
140
|
|
|
$
|
4,919
|
|
|
$
|
—
|
|
|
$
|
4,919
|
|
Other income(a)
|
46
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
49
|
|
|
—
|
|
|
49
|
|
|||||||
Total revenues and other income
|
4,518
|
|
|
307
|
|
|
—
|
|
|
143
|
|
|
4,968
|
|
|
—
|
|
|
4,968
|
|
|||||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Production costs
|
(1,384
|
)
|
|
(73
|
)
|
|
—
|
|
|
(71
|
)
|
|
(1,528
|
)
|
|
—
|
|
|
(1,528
|
)
|
|||||||
Exploration expenses(b)
|
(149
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(149
|
)
|
|
—
|
|
|
(149
|
)
|
|||||||
Depreciation, depletion and amortization(c)
|
(2,274
|
)
|
|
(97
|
)
|
|
—
|
|
|
(23
|
)
|
|
(2,394
|
)
|
|
—
|
|
|
(2,394
|
)
|
|||||||
Technical support and other
|
(38
|
)
|
|
(9
|
)
|
|
—
|
|
|
(10
|
)
|
|
(57
|
)
|
|
—
|
|
|
(57
|
)
|
|||||||
Total expenses
|
(3,845
|
)
|
|
(179
|
)
|
|
—
|
|
|
(104
|
)
|
|
(4,128
|
)
|
|
—
|
|
|
(4,128
|
)
|
|||||||
Results before income taxes
|
673
|
|
|
128
|
|
|
—
|
|
|
39
|
|
|
840
|
|
|
—
|
|
|
840
|
|
|||||||
Income tax (provision) benefit
|
(6
|
)
|
|
(32
|
)
|
|
—
|
|
|
12
|
|
|
(26
|
)
|
|
—
|
|
|
(26
|
)
|
|||||||
Results of operations
|
$
|
667
|
|
|
$
|
96
|
|
|
$
|
—
|
|
|
$
|
51
|
|
|
$
|
814
|
|
|
$
|
—
|
|
|
$
|
814
|
|
Year Ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Revenues and other income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Sales
|
$
|
4,842
|
|
|
$
|
383
|
|
|
$
|
196
|
|
|
$
|
402
|
|
|
$
|
5,823
|
|
|
$
|
—
|
|
|
$
|
5,823
|
|
Other income(a)
|
81
|
|
|
—
|
|
|
255
|
|
|
104
|
|
|
440
|
|
|
—
|
|
|
440
|
|
|||||||
Total revenues and other income
|
4,923
|
|
|
383
|
|
|
451
|
|
|
506
|
|
|
6,263
|
|
|
—
|
|
|
6,263
|
|
|||||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Production costs
|
(1,371
|
)
|
|
(68
|
)
|
|
(12
|
)
|
|
(180
|
)
|
|
(1,631
|
)
|
|
—
|
|
|
(1,631
|
)
|
|||||||
Exploration expenses(b)
|
(245
|
)
|
|
(51
|
)
|
|
—
|
|
|
7
|
|
|
(289
|
)
|
|
—
|
|
|
(289
|
)
|
|||||||
Depreciation, depletion and amortization(c)
|
(2,247
|
)
|
|
(117
|
)
|
|
(8
|
)
|
|
(102
|
)
|
|
(2,474
|
)
|
|
—
|
|
|
(2,474
|
)
|
|||||||
Technical support and other
|
(49
|
)
|
|
(5
|
)
|
|
—
|
|
|
(6
|
)
|
|
(60
|
)
|
|
—
|
|
|
(60
|
)
|
|||||||
Total expenses
|
(3,912
|
)
|
|
(241
|
)
|
|
(20
|
)
|
|
(281
|
)
|
|
(4,454
|
)
|
|
—
|
|
|
(4,454
|
)
|
|||||||
Results before income taxes
|
1,011
|
|
|
142
|
|
|
431
|
|
|
225
|
|
|
1,809
|
|
|
—
|
|
|
1,809
|
|
|||||||
Income tax (provision) benefit
|
19
|
|
|
(38
|
)
|
|
(163
|
)
|
|
(124
|
)
|
|
(306
|
)
|
|
—
|
|
|
(306
|
)
|
|||||||
Results of operations
|
$
|
1,030
|
|
|
$
|
104
|
|
|
$
|
268
|
|
|
$
|
101
|
|
|
$
|
1,503
|
|
|
$
|
—
|
|
|
$
|
1,503
|
|
Year Ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Revenues and other income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Sales
|
$
|
3,050
|
|
|
$
|
45
|
|
|
$
|
431
|
|
|
$
|
282
|
|
|
$
|
3,808
|
|
|
$
|
423
|
|
|
$
|
4,231
|
|
Transfers
|
—
|
|
|
344
|
|
|
—
|
|
|
—
|
|
|
344
|
|
|
—
|
|
|
344
|
|
|||||||
Other income(a)
|
74
|
|
|
—
|
|
|
—
|
|
|
38
|
|
|
112
|
|
|
(43
|
)
|
|
69
|
|
|||||||
Total revenues and other income
|
3,124
|
|
|
389
|
|
|
431
|
|
|
320
|
|
|
4,264
|
|
|
380
|
|
|
4,644
|
|
|||||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Production costs
|
(985
|
)
|
|
(84
|
)
|
|
(44
|
)
|
|
(152
|
)
|
|
(1,265
|
)
|
|
(272
|
)
|
|
(1,537
|
)
|
|||||||
Exploration expenses(b)
|
(153
|
)
|
|
—
|
|
|
—
|
|
|
(254
|
)
|
|
(407
|
)
|
|
—
|
|
|
(407
|
)
|
|||||||
Depreciation, depletion and amortization(c)
|
(2,105
|
)
|
|
(134
|
)
|
|
(21
|
)
|
|
(273
|
)
|
|
(2,533
|
)
|
|
(6,676
|
)
|
|
(9,209
|
)
|
|||||||
Technical support and other
|
(28
|
)
|
|
(4
|
)
|
|
(4
|
)
|
|
(25
|
)
|
|
(61
|
)
|
|
—
|
|
|
(61
|
)
|
|||||||
Total expenses
|
(3,271
|
)
|
|
(222
|
)
|
|
(69
|
)
|
|
(704
|
)
|
|
(4,266
|
)
|
|
(6,948
|
)
|
|
(11,214
|
)
|
|||||||
Results before income taxes
|
(147
|
)
|
|
167
|
|
|
362
|
|
|
(384
|
)
|
|
(2
|
)
|
|
(6,568
|
)
|
|
(6,570
|
)
|
|||||||
Income tax (provision) benefit
|
(1
|
)
|
|
(50
|
)
|
|
(333
|
)
|
|
13
|
|
|
(371
|
)
|
|
1,674
|
|
|
1,303
|
|
|||||||
Results of operations
|
$
|
(148
|
)
|
|
$
|
117
|
|
|
$
|
29
|
|
|
$
|
(371
|
)
|
|
$
|
(373
|
)
|
|
$
|
(4,894
|
)
|
|
$
|
(5,267
|
)
|
(a)
|
Includes net gain (loss) on dispositions (see Note 5). In 2018 and 2017 this also includes revisions to asset retirement costs primarily due to changes in U.K. estimated costs as well as timing of abandonment activities.
|
(b)
|
Includes exploratory dry well costs, unproved property impairments, and other.
|
(c)
|
|
Year Ended December 31,
|
||||||||||
(In millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Results of operations
|
$
|
814
|
|
|
$
|
1,503
|
|
|
$
|
(5,267
|
)
|
Discontinued operations
|
—
|
|
|
—
|
|
|
4,894
|
|
|||
Results of continuing operations
|
814
|
|
|
1,503
|
|
|
(373
|
)
|
|||
Items not included in results of oil and gas operations, net of tax:
|
|
|
|
|
|
||||||
Marketing income and other non-oil and gas producing related activities
|
(141
|
)
|
|
(170
|
)
|
|
(107
|
)
|
|||
Income from equity method investments
|
87
|
|
|
214
|
|
|
229
|
|
|||
Items not allocated to segment income, net of tax:
|
|
|
|
|
|
||||||
Loss (gain) on asset dispositions and other
|
—
|
|
|
(304
|
)
|
|
(79
|
)
|
|||
Long-lived asset impairments
|
24
|
|
|
103
|
|
|
475
|
|
|||
Unrealized loss (gain) on derivatives
|
124
|
|
|
(265
|
)
|
|
81
|
|
|||
Segment income
|
$
|
908
|
|
|
$
|
1,081
|
|
|
$
|
226
|
|
(In millions)
|
U.S.
|
|
E.G.
|
|
Libya
|
|
Other Int’l
|
|
Total
|
||||||||||
Year Ended December 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
Future cash inflows
|
$
|
40,487
|
|
|
$
|
1,812
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
42,299
|
|
Future production and support costs
|
(14,167
|
)
|
|
(838
|
)
|
|
—
|
|
|
—
|
|
|
(15,005
|
)
|
|||||
Future development costs
|
(7,561
|
)
|
|
(18
|
)
|
|
—
|
|
|
—
|
|
|
(7,579
|
)
|
|||||
Future income tax expenses
|
(1,085
|
)
|
|
(280
|
)
|
|
—
|
|
|
—
|
|
|
(1,365
|
)
|
|||||
Future net cash flows
|
$
|
17,674
|
|
|
$
|
676
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
18,350
|
|
10% annual discount for timing of cash flows
|
(7,416
|
)
|
|
(179
|
)
|
|
—
|
|
|
—
|
|
|
(7,595
|
)
|
|||||
Standardized measure of discounted future net cash flows-
related to continuing operations
|
$
|
10,258
|
|
|
$
|
497
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,755
|
|
Year Ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Future cash inflows
|
$
|
49,054
|
|
|
$
|
2,218
|
|
|
$
|
—
|
|
|
$
|
1,813
|
|
|
$
|
53,085
|
|
Future production and support costs
|
(15,995
|
)
|
|
(878
|
)
|
|
—
|
|
|
(876
|
)
|
|
(17,749
|
)
|
|||||
Future development costs
|
(7,729
|
)
|
|
(12
|
)
|
|
—
|
|
|
(1,072
|
)
|
|
(8,813
|
)
|
|||||
Future income tax expenses
|
(1,967
|
)
|
|
(355
|
)
|
|
—
|
|
|
275
|
|
|
(2,047
|
)
|
|||||
Future net cash flows
|
$
|
23,363
|
|
|
$
|
973
|
|
|
$
|
—
|
|
|
$
|
140
|
|
(a)
|
$
|
24,476
|
|
10% annual discount for timing of cash flows
|
(10,653
|
)
|
|
(254
|
)
|
|
—
|
|
|
100
|
|
|
(10,807
|
)
|
|||||
Standardized measure of discounted future net cash flows-
related to continuing operations
|
$
|
12,710
|
|
|
$
|
719
|
|
|
$
|
—
|
|
|
$
|
240
|
|
|
$
|
13,669
|
|
Year Ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Future cash inflows
|
$
|
36,480
|
|
|
$
|
1,966
|
|
|
$
|
10,303
|
|
|
$
|
1,403
|
|
|
$
|
50,152
|
|
Future production and support costs
|
(14,796
|
)
|
|
(748
|
)
|
|
(931
|
)
|
|
(821
|
)
|
|
(17,296
|
)
|
|||||
Future development costs
|
(6,987
|
)
|
|
(7
|
)
|
|
(501
|
)
|
|
(1,247
|
)
|
|
(8,742
|
)
|
|||||
Future income tax expenses
|
(786
|
)
|
|
(274
|
)
|
|
(8,387
|
)
|
|
496
|
|
|
(8,951
|
)
|
|||||
Future net cash flows
|
$
|
13,911
|
|
|
$
|
937
|
|
|
$
|
484
|
|
|
$
|
(169
|
)
|
(a)
|
$
|
15,163
|
|
10% annual discount for timing of cash flows
|
(7,009
|
)
|
|
(235
|
)
|
|
(224
|
)
|
|
168
|
|
|
(7,300
|
)
|
|||||
Standardized measure of discounted future net cash flows-
related to continuing operations
|
$
|
6,902
|
|
|
$
|
702
|
|
|
$
|
260
|
|
|
$
|
(1
|
)
|
|
$
|
7,863
|
|
(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)
|
2019
|
|
2018
|
|
2017
|
||||||
Sales and transfers of oil and gas produced, net of production and support costs
|
$
|
(3,345
|
)
|
|
$
|
(4,135
|
)
|
|
$
|
(2,853
|
)
|
Net changes in prices and production and support costs related to future production
|
(3,569
|
)
|
|
6,342
|
|
|
4,916
|
|
|||
Extensions, discoveries and improved recovery, less related costs
|
718
|
|
|
998
|
|
|
661
|
|
|||
Development costs incurred during the period
|
1,727
|
|
|
1,240
|
|
|
1,027
|
|
|||
Changes in estimated future development costs
|
278
|
|
|
(330
|
)
|
|
183
|
|
|||
Revisions of previous quantity estimates(a)
|
7
|
|
|
(501
|
)
|
|
497
|
|
|||
Net changes in purchases and sales of minerals in place
|
(200
|
)
|
|
(3,035
|
)
|
|
102
|
|
|||
Accretion of discount
|
1,315
|
|
|
1,175
|
|
|
698
|
|
|||
Net change in income taxes
|
155
|
|
|
4,052
|
|
|
(1,245
|
)
|
|||
Net change for the year
|
(2,914
|
)
|
|
5,806
|
|
|
3,986
|
|
|||
Beginning of the year
|
13,669
|
|
|
7,863
|
|
|
3,877
|
|
|||
End of the year
|
$
|
10,755
|
|
|
$
|
13,669
|
|
|
$
|
7,863
|
|
(a)
|
Includes amounts resulting from changes in the timing of production.
|
•
|
Marathon Oil Corporation 2019 Incentive Compensation Plan (the “2019 Plan”)
|
•
|
Marathon Oil Corporation 2016 Incentive Compensation Plan (the “2016 Plan”)
|
•
|
Marathon Oil Corporation 2012 Incentive Compensation Plan (the “2012 Plan”) – No additional awards will be granted under this plan.
|
•
|
Marathon Oil Corporation 2007 Incentive Compensation Plan (the “2007 Plan”) – 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(b)
|
|
Number of securities remaining available for future issuance under equity compensation plans
|
|
||||
Equity compensation plans approved by stockholders
|
6,546,401
|
|
(a)
|
$
|
23.55
|
|
|
30,911,537
|
|
(c)
|
(a)
|
Includes the following:
|
•
|
No stock options outstanding under the 2019 Plan; 2,044,463 stock options outstanding under the 2016 Plan; 2,494,866 stock options outstanding under the 2012 Plan; 989,835 stock options outstanding under the 2007 Plan;
|
•
|
181,982 common stock units that have been credited to non-employee directors pursuant to the annual director stock award program established under the 2019 Plan, 2016 Plan, 2012 Plan and 2007 Plan. Common stock units credited under the 2019 Plan, 2016 Plan, 2012 Plan and 2007 Plan were nil 153,119, nil, and 28,863, respectively;
|
•
|
12,263 and 647,889 outstanding restricted stock units granted to non-officers under the 2019 Plan and 2016 Plan as of December 31, 2019, respectively. Additionally, 175,103 outstanding restricted stock units granted to officers under the 2016 Plan;
|
•
|
In addition to the awards reported above, 6,060,945 and 276,719 shares of restricted stock were issued and outstanding as of December 31, 2019, but subject to forfeiture restrictions under the 2016 Plan and 2019 Plan, respectively.
|
(b)
|
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.
|
(c)
|
Reflects the shares available for issuance under the 2019 Plan. No more than 30,775,974 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 20, 2020
|
|
MARATHON OIL CORPORATION
|
|
|
|
|
|
By: /s/ GARY E. WILSON
|
|
|
Gary E. Wilson
|
|
|
Vice President, Controller and Chief Accounting Officer
|
Signature
|
|
Title
|
|
|
|
/s/ LEE M. TILLMAN
|
|
Chairman, President and Chief Executive Officer
|
Lee M. Tillman
|
|
|
|
|
|
/s/ DANE E. WHITEHEAD
|
|
Executive Vice President and Chief Financial Officer
|
Dane E. Whitehead
|
|
|
|
|
|
/s/ GARY E. WILSON
|
|
Vice President, Controller and Chief Accounting Officer
|
Gary E. Wilson
|
|
|
|
|
|
/s/ GREGORY H. BOYCE
|
|
Director
|
Gregory H. Boyce
|
|
|
|
|
|
/s/ CHADWICK C. DEATON
|
|
Director
|
Chadwick C. Deaton
|
|
|
|
|
|
/s/ MARCELA E. DONADIO
|
|
Director
|
Marcela E. Donadio
|
|
|
|
|
|
/s/ JASON B. FEW
|
|
Director
|
Jason B. Few
|
|
|
|
|
|
/s/ DOUGLAS L. FOSHEE
|
|
Director
|
Douglas L. Foshee
|
|
|
|
|
|
/s/ M.ELISE HYLAND
|
|
Director
|
M. Elise Hyland
|
|
|
|
|
|
/s/ J.KENT WELLS
|
|
Director
|
J. Kent Wells
|
|
|
Exhibit Number
|
|
|
|
Incorporated by Reference (File No. 001-05153, unless otherwise indicated)
|
||||
|
Exhibit Description
|
|
Form
|
|
Exhibit
|
|
Filing Date
|
|
1
|
|
Underwriting Agreement
|
|
|
|
|
|
|
1.1
|
|
|
10-K
|
|
1.1
|
|
2/22/2018
|
|
2
|
|
Plan of Acquisition, Reorganization, Arrangement, Liquidation or Succession
|
|
|
|
|
|
|
2.1
|
|
|
10-Q
|
|
10.1
|
|
5/5/2017
|
|
3
|
|
Articles of Incorporation and By-laws
|
||||||
3.1
|
|
|
8-K
|
|
3.1
|
|
6/1/2018
|
|
3.2
|
|
|
10-Q
|
|
3.2
|
|
8/4/2016
|
|
3.3
|
|
|
10-K
|
|
3.3
|
|
2/28/2014
|
|
4
|
|
Instruments Defining the Rights of Security Holders, Including Indentures
|
||||||
4.1
|
|
|
10-K
|
|
4.2
|
|
2/28/2014
|
|
4.2*
|
|
|
|
|
|
|
|
|
10
|
|
Material Contracts
|
|
|
|
|
|
|
10.1
|
|
|
8-K
|
|
4.1
|
|
6/2/2014
|
|
10.2
|
|
|
10-Q
|
|
10.1
|
|
5/7/2015
|
|
10.3
|
|
|
8-K
|
|
99.1
|
|
3/8/2016
|
Exhibit Number
|
|
|
|
Incorporated by Reference (File No. 001-05153, unless otherwise indicated)
|
||||
|
Exhibit Description
|
|
Form
|
|
Exhibit
|
|
Filing Date
|
|
10.4
|
|
|
8-K
|
|
99.1
|
|
6/23/2017
|
|
10.5
|
|
|
10-Q
|
|
10.2
|
|
8/3/2017
|
|
10.6
|
|
|
8-K
|
|
99.1
|
|
10/22/2018
|
|
10.7
|
|
|
|
8-K
|
|
10.1
|
|
9/24/2019
|
10.8†
|
|
|
DEF 14A
|
|
App. A
|
|
4/12/2019
|
|
10.9†
|
|
|
10-Q
|
|
10.1
|
|
8/8/2019
|
|
10.10†
|
|
|
10-Q
|
|
10.2
|
|
8/8/2019
|
|
10.11†
|
|
|
10-Q
|
|
10.3
|
|
8/8/2019
|
|
10.12†
|
|
|
10-Q
|
|
10.4
|
|
8/8/2019
|
Exhibit Number
|
|
|
|
Incorporated by Reference (File No. 001-05153, unless otherwise indicated)
|
||||
|
Exhibit Description
|
|
Form
|
|
Exhibit
|
|
Filing Date
|
|
10.13†*
|
|
|
|
|
|
|
|
|
10.14†
|
|
|
DEF 14A
|
|
App. A
|
|
4/7/2016
|
|
10.15†
|
|
|
10-Q
|
|
10.1
|
|
5/2/2019
|
|
10.16†
|
|
|
10-Q
|
|
10.2
|
|
5/2/2019
|
|
10.17†
|
|
|
10-Q
|
|
10.3
|
|
5/2/2019
|
|
10.18†
|
|
|
10-Q
|
|
10.4
|
|
5/2/2019
|
|
10.19†
|
|
|
10-Q
|
|
10.5
|
|
5/2/2019
|
|
10.20†
|
|
|
8-K/A
|
|
10.1
|
|
10/6/2016
|
|
10.21†
|
|
|
10-K
|
|
10.6
|
|
2/24/2017
|
|
10.22†
|
|
|
10-K
|
|
10.7
|
|
2/24/2017
|
|
10.23†
|
|
|
10-K
|
|
10.8
|
|
2/24/2017
|
|
10.24†
|
|
|
10-K
|
|
10.9
|
|
2/24/2017
|
|
10.25†
|
|
|
10-K
|
|
10.12
|
|
2/22/2018
|
|
10.26†
|
|
|
10-K
|
|
10.13
|
|
2/22/2018
|
|
10.27†
|
|
|
DEF 14A
|
|
App. III
|
|
3/8/2012
|
|
10.28†
|
|
|
8-K
|
|
10.1
|
|
8/1/2014
|
|
10.29†
|
|
|
10-Q
|
|
10.1
|
|
5/7/2014
|
|
10.30†
|
|
|
10-Q
|
|
10.2
|
|
5/7/2014
|
|
10.31†
|
|
|
10-Q
|
|
10.1
|
|
11/6/2013
|
|
10.32†
|
|
|
10-K
|
|
10.5
|
|
2/22/2013
|
Exhibit Number
|
|
|
|
Incorporated by Reference (File No. 001-05153, unless otherwise indicated)
|
||||
|
Exhibit Description
|
|
Form
|
|
Exhibit
|
|
Filing Date
|
|
10.33†
|
|
|
10-K
|
|
10.6
|
|
2/22/2013
|
|
10.34†
|
|
|
10-K
|
|
10.5
|
|
2/29/2012
|
|
10.35†
|
|
|
10-K
|
|
10.6
|
|
2/29/2012
|
|
10.36†
|
|
|
10-K
|
|
10.5
|
|
2/28/2011
|
|
10.37†
|
|
|
10-K
|
|
10.29
|
|
2/24/2017
|
|
10.38†
|
|
|
10-K
|
|
10.32
|
|
2/29/2012
|
|
10.39†
|
|
|
10-K
|
|
10.31
|
|
2/29/2012
|
|
10.40†
|
|
|
|
10-Q
|
|
10.1
|
|
11/7/2019
|
10.41†
|
|
|
10-K
|
|
10.10
|
|
2/28/2011
|
|
10.42†
|
|
|
10-K
|
|
10.32
|
|
2/27/2009
|
|
10.43
|
|
|
8-K
|
|
10.1
|
|
5/26/2011
|
|
21.1*
|
|
|
|
|
|
|
|
|
23.1*
|
|
|
|
|
|
|
|
|
23.2*
|
|
|
|
|
|
|
|
|
23.3*
|
|
|
|
|
|
|
|
|
23.4*
|
|
|
|
|
|
|
|
|
31.1*
|
|
|
|
|
|
|
|
|
31.2*
|
|
|
|
|
|
|
|
|
32.1*
|
|
|
|
|
|
|
|
|
32.2*
|
|
|
|
|
|
|
|
|
99.1*
|
|
|
|
|
|
|
|
|
99.2*
|
|
|
|
|
|
|
|
|
99.3
|
|
|
10-K
|
|
99.2
|
|
2/21/2019
|
|
|
• 1,925,000,000 shares of common stock.
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
TSR
Ranking of
|
|
TSR
Percentile
|
|
Vesting
|
Corporation
|
|
Ranking
|
|
Percentage
|
1st
|
|
100%
|
|
200%
|
2nd
|
|
90.9%
|
|
182%
|
3rd
|
|
81.8%
|
|
164%
|
4th
|
|
72.7%
|
|
145%
|
5th
|
|
63.6%
|
|
127%
|
6th
|
|
54.5%
|
|
109%
|
7th
|
|
45.4%
|
|
91%
|
8th
|
|
36.3%
|
|
73%
|
9th
|
|
27.2%
|
|
54%
|
10th
|
|
18.1%
|
|
0%
|
11th
|
|
9%
|
|
0%
|
12th
|
|
0%
|
|
0%
|
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
|
|
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
|
|
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. Production Limited
|
Cayman Islands
|
|
Marathon Eagle Ford Midstream LLC
|
United States
|
Delaware
|
Marathon East Texas Holdings LLC
|
United States
|
Delaware
|
Marathon International Investment LLC
|
United States
|
Delaware
|
Marathon International Oil Angola Block 31 Limited
|
Cayman Islands
|
|
Marathon International Oil Company
|
United States
|
Delaware
|
Marathon International Oil Holdings LLC
|
United States
|
Delaware
|
Marathon Oil (East Texas) L.P.
|
United States
|
Texas
|
Marathon Oil (West Texas) L.P.
|
United States
|
Texas
|
Marathon Oil Company
|
United States
|
Ohio
|
Marathon Oil Corporation
|
United States
|
Delaware
|
Marathon Oil Dutch Holdings B.V.
|
Netherlands
|
|
Marathon Oil EF II LLC
|
United States
|
Delaware
|
Marathon Oil EF LLC
|
United States
|
Delaware
|
Marathon Oil Holdings Limited
|
Cayman Islands
|
|
Marathon Oil Investment LLC
|
United States
|
Delaware
|
Marathon Oil KDV B.V.
|
Netherlands
|
|
Marathon Oil Permian LLC
|
United States
|
Delaware
|
Marathon West Texas Holdings LLC
|
United States
|
Delaware
|
Pennaco Energy, Inc.
|
United States
|
Delaware
|
Form S-3ASR:
|
|
Relating to:
|
|
|
|
|
|
||
Reg. No.
|
|
333-235867
|
|
Marathon Oil Corporation Debt Securities, Common Stock, Preferred Stock, Warrants and Stock Purchase Contracts/Units
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Form S-8:
|
|
Relating to:
|
|
|
|
|
|
||
Reg. No.
|
|
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
|
|
|
333-211611
|
|
Marathon Oil Corporation 2016 Incentive Compensation Plan
|
|
|
333-231833
|
|
Marathon Oil Corporation 2019 Incentive Compensation Plan
|
Form S-3ASR:
|
Relating to:
|
|
Reg. No.
|
333-235867
|
Marathon Oil Corporation Debt Securities, Common Stock, Preferred Stock, Warrants and Stock Purchase Contracts/Units
|
Form S-8:
|
Relating to:
|
|
Reg. No.
|
333-104910
|
Marathon Oil Corporation 2003 Incentive Compensation Plan
|
Reg. No.
|
333-143010
|
Marathon Oil Corporation 2007 Incentive Compensation Plan
|
Reg. No.
|
333-181301
|
Marathon Oil Corporation 2012 Incentive Compensation Plan
|
Reg. No.
|
333-211611
|
Marathon Oil Corporation 2016 Incentive Compensation Plan
|
Reg. No.
|
333-231833
|
Marathon Oil Corporation 2019 Incentive Compensation Plan
|
By:
|
Danny D. Simmons, P.E.
|
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 20, 2020
|
|
/s/ Lee M. Tillman
|
|
|
|
Lee M. Tillman
|
|
|
|
Chairman, 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 20, 2020
|
|
/s/ Dane E. Whitehead
|
|
|
|
Dane E. Whitehead
|
|
|
|
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 20, 2020
|
/s/ Lee M. Tillman
|
|
Lee M. Tillman
|
|
Chairman, 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 20, 2020
|
/s/ Dane E. Whitehead
|
|
Dane E. Whitehead
|
|
Executive Vice President and Chief Financial Officer
|
|
|
|
|
/s/ Scott J. Wilson
|
Scott J. Wilson, P.E., M.B.A.
|
Colorado License No. 36112
|
Senior Vice President
|
1100 LOUISIANA, SUITE 4600
|
HOUSTON, TEXAS 77002-5294
|
TEL (713) 651-9191
|
FAX (713) 651-0849
|
SUITE 800, 350 7TH AVENUE, S.W.
|
CALGARY, ALBERTA T2P 3N9
|
TEL (403) 262-2799
|
FAX (403) 262-2790
|
|
|
|
Proved
|
|
|
|||
Developed
|
|
|
|
Total
|
||||
Producing
|
|
Undeveloped
|
|
Proved
|
||||
Audited by Ryder Scott
|
|
|
|
|
|
|||
Net Remaining Reserves
|
|
|
|
|
|
|||
Oil/Condensate – MBarrels
|
25,406
|
|
|
37,050
|
|
|
62,456
|
|
Plant Products – MBarrels
|
44,799
|
|
|
45,228
|
|
|
90,027
|
|
Gas – MMCF
|
416,173
|
|
|
373,043
|
|
|
789,216
|
|
Geographic Area
|
Product
|
Price Reference
|
Average Benchmark Prices
|
Average Realized Prices
|
North America
|
|
|
|
|
United States
|
Oil/Condensate
|
WTI Cushing
|
$65.56/Bbl
|
$64.77/Bbl
|
NGLs
|
Mt. Belvieu
|
$26.63/Bbl
|
$25.16/Bbl
|
|
Gas
|
Henry Hub
|
$3.10/MMBTU
|
$2.31/MCF
|
(i)
|
The area of the reservoir considered as proved includes:
|
(A)
|
The area identified by drilling and limited by fluid contacts, if any, and
|
(1)
|
completion intervals that are open at the time of the estimate but which have not yet 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.
|
/s/ Daniel R. Olds
|
|
/s/ Syed R. Rizvi
|
Daniel R. Olds, P.E.
|
|
Syed R. Rizvi
|
TBE License No.60996
|
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Senior Petroleum Engineer
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Managing Senior Vice President
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SUITE 800, 350 7TH AVENUE, S.W.
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CALGARY, ALBERTA T2P 3N9
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TEL (403) 262-2799
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FAX (403) 262-2790
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621 17TH STREET, SUITE 1550
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DENVER, COLORADO 80293-1501
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TEL (303) 623-9147
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FAX (303) 623-4258
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Proved
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Developed
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Total
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Producing
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Undeveloped
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Proved
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Audited by Ryder Scott
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Net Remaining Reserves
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Oil/Condensate – MBarrels
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115,173
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114,218
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229,391
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Plant Products – MBarrels
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44,676
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35,445
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80,121
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Gas – MMCF
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261,062
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196,327
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457,389
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Geographic Area
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Product
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Price Reference
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Average Benchmark Prices
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Average Realized Prices
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North America
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United States
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Oil/Condensate
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WTI Cushing
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$65.56/Bbl
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$61.68/Bbl
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NGLs
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Mt. Belvieu
(NGL)
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$26.63/Bbl
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$29.22/Bbl
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Gas
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Henry Hub
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$3.10/MMBTU
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$3.10/MCF
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(i)
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The area of the reservoir considered as proved includes:
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(A)
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The area identified by drilling and limited by fluid contacts, if any, and
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(1)
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completion intervals that are open at the time of the estimate but which have not yet started producing;
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(2)
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wells which were shut-in for market conditions or pipeline connections; or
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(3)
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wells not capable of production for mechanical reasons.
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(i)
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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.
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Page(s)
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Independent Auditor’s Report
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1-2
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Financial Statements
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Balance Sheets
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3
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Statements of Income
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4
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Statements of Stockholders’ Equity
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5
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Statements of Cash Flows
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6
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Notes to Financial Statements
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7-14
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(in thousands of dollars, except share and per share amounts)
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2019
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2018*
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||||
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Assets
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Cash and cash equivalents
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$
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52,510
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$
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87,080
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Accounts receivable
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13,050
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21,669
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Accounts receivable–related parties
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9,405
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10,565
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Inventory
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37,068
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35,674
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Total current assets
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112,033
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154,988
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Facility cost
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582,226
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568,634
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Less: Accumulated depreciation
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362,391
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347,660
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Net facility cost
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219,835
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220,974
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Total assets
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$
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331,868
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$
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375,962
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Liabilities and Stockholders' Equity
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Accounts payable and accrued liabilities–related parties
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12,318
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7,471
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Accrued government royalty–net profit interest
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17,419
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28,118
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Foreign income taxes payable
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49,340
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83,923
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Total current liabilities
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79,077
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119,512
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Net deferred tax liability
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45,188
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45,106
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Stockholders' equity
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Common stock - 1,000 shares issued and outstanding
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1
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1
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(par value $1.00 per share, 50,000 shares authorized)
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Retained earnings
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207,602
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211,343
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Total stockholders' equity
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207,603
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211,344
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Total liabilities and stockholders' equity
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$
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331,868
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$
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375,962
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(in thousands of dollars)
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2019
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2018*
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2017
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Revenues from contracts with customers
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Plant products
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$
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185,801
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$
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295,357
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$
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298,923
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Plant products–related parties
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982
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933
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799
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Condensate
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114,050
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—
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—
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Condensate–related parties
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—
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140,707
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131,923
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Other sales
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923
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837
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962
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Other sales–related parties
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—
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248
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286
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Total revenues from contracts with customers
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301,756
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438,082
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432,893
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Expenses
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Direct operating–related parties
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41,203
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35,541
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37,331
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Depreciation and amortization
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14,732
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12,564
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11,233
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General and administrative–related parties
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27,777
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30,059
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28,165
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Government royalty–net profit interest
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17,416
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28,117
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28,380
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Shipping and handling–related parties
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3,960
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4,898
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3,543
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Total expenses
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105,088
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111,179
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108,652
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Income from operations
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196,668
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326,903
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324,241
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Interest income
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1,011
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996
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227
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Income before income taxes
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197,679
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327,899
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324,468
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Income tax expense
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49,420
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82,009
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81,152
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Net income
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$
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148,259
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$
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245,890
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$
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243,316
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Total
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|||||||
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Common Stock
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Retained
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Stockholders'
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||||||||||
(in thousands of dollars)
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Shares
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Amount
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Earnings
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Equity
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||||||
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Balances at December 31, 2016
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1
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$
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1
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$
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299,137
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$
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299,138
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Net income
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243,316
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243,316
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Dividends
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(242,000)
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(242,000
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)
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Balances at December 31, 2017
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1
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$
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1
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$
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300,453
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$
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300,454
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Net income*
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245,890
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245,890
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|||||
Dividends*
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(335,000
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)
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(335,000
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)
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Balances at December 31, 2018*
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1
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$
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1
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$
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211,343
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$
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211,344
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Net income
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148,259
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148,259
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|||||
Dividends
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(152,000
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)
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(152,000
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)
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|||||
Balances at December 31, 2019
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1
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$
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1
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$
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207,602
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$
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207,603
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(in thousands of dollars)
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||||||
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2019
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2018*
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2017
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||||||
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||||||
Operating activities
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||||||
Net income
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$
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148,259
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$
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245,890
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$
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243,316
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Adjustments to reconcile net income to net cash provided by operating activities
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||||||
Depreciation and amortization
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14,732
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12,564
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11,233
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Deferred income tax
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82
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(1,739
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)
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6,827
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Changes in:
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||||||
Accounts receivable
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8,619
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7,938
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905
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Accounts receivable-related parties
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1,160
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4,166
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(3,873
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)
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Inventory
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(1,394
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)
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2,019
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(656
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)
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Accounts payable and accrued liabilities-related parties
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(2,760
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)
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221
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75
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Accrued government royalty–net profit interest
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(10,699
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)
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(260
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)
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10,841
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Foreign income taxes payable
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(34,583
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)
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9,601
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38,387
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Net cash provided by operating activities
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123,416
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280,400
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307,055
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Investing activities
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||||||
Capital expenditures
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(5,986
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)
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(769
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)
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(65
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)
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Net cash used in investing activities
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(5,986
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)
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(769
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)
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(65
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)
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Financing activities
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||||||
Dividends
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(152,000
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)
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(335,000
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)
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(242,000
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)
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Net cash used in financing activities
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(152,000
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)
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(335,000
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)
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(242,000
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)
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Net increase (decrease) in cash and cash equivalents
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(34,570
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)
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(55,369
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)
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64,990
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Cash and cash equivalents at beginning of period
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$
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87,080
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$
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142,449
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|
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$
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77,459
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Cash and cash equivalents at end of period
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$
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52,510
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|
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$
|
87,080
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|
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$
|
142,449
|
|
Supplemental disclosure
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|
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|
||||||
Income taxes paid
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$
|
83,920
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|
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$
|
74,146
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|
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$
|
35,939
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|
Change in capital expenditure accrual
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|
$
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7,606
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|
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$
|
198
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|
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$
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(13
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)
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1.
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Organization and Nature of Business
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Samedan of North Africa, Inc. ("Samedan")
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34.79166%
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Marathon E.G. LPG Limited ("EG LPG")
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23.45834
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Marathon E.G. Alba Limited ("EG Alba")
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19.08334
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Marathon E.G. Production Limited ("MEGPL")
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11.45833
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Marathon E.G. Offshore Limited ("EG Offshore")
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11.20833
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100.00000%
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2.
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Summary of Significant Accounting Policies
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3.
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Accounting Standards
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4.
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Revenues
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5.
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Inventory
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|
6.
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Income Taxes
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•
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Alba Associates LLC and Sonagas, the Company’s owners;
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•
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Samedan, EG LPG, EG Alba, MEGPL, and EG Offshore, the owners in Alba Associates LLC; and
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•
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MOM, Equatorial Guinea LNG Train1, S.A. (“EG LNG”) and other affiliates of Marathon Oil Corporation (“Marathon”), which is the ultimate owner of several of the owners of Alba Associates LLC.
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||||||||||||
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2019
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|
2018*
|
||||||||||||
(in thousands of dollars)
|
|
Receivable from
|
|
Payable to
|
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Receivable from
|
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Payable to
|
||||||||
|
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|
|
||||||||
Sonagas
|
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$
|
285
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|
|
$
|
—
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$
|
1,052
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|
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$
|
—
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|
MOM
|
|
8,607
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|
|
—
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|
|
9,472
|
|
|
—
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|
||||
EG LNG
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30
|
|
|
36
|
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|
—
|
|
|
—
|
|
||||
MEGPL
|
|
458
|
|
|
12,275
|
|
|
17
|
|
|
7,434
|
|
||||
Marathon
|
|
25
|
|
|
7
|
|
|
24
|
|
|
37
|
|
||||
|
|
$
|
9,405
|
|
|
$
|
12,318
|
|
|
$
|
10,565
|
|
|
$
|
7,471
|
|
|
8.
|
Fair Value of Financial Instruments
|
9.
|
Dividends
|
10.
|
Contingencies
|
11.
|
Subsequent Events
|