XML 25 R14.htm IDEA: XBRL DOCUMENT v3.19.2
Investment in Cenovus Energy
6 Months Ended
Jun. 30, 2019
Investment In Cenovus Energy [Abstract]  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Note 7—Investment in Cenovus Energy

 

On May 17, 2017, we completed the sale of our 50 percent nonoperated interest in the FCCL Partnership, as well as the majority of our western Canada gas assets to Cenovus Energy. Consideration for the transaction included 208 million Cenovus Energy common shares, which, at closing, approximated 16.9 percent of issued and outstanding Cenovus common stock. The fair value and cost basis of our investment in 208 million Cenovus Energy common shares was $1.96 billion based on a price of $9.41 per share on the New York Stock Exchange on the closing date.

 

Our investment on our consolidated balance sheet as of June 30, 2019, is carried at fair value of $1.84 billion, reflecting the closing price of Cenovus Energy shares on the New York Stock Exchange of $8.82 per share on the last trading day of the quarter, an increase of $30 million from $1.81 billion at the end of the first quarter of 2019 and an increase of $373 million from $1.46 billion at year-end 2018. The increase in fair value represents the net unrealized gain recorded within the “Other income” line of our consolidated income statement in the first six months of 2019 relating to the shares held at the reporting date. See Note 14—Fair Value Measurement, for additional information.

Subject to market conditions, we intend to decrease our investment over time through market transactions, private agreements or otherwise.