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Assets Held for Sale, Sold or Acquired | 12 Months Ended
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Dec. 31, 2019
Disposal Group Not Discontinued Operation Disposal Disclosures [Abstract] |
Long Lived Assets Held For Sale [Text Block] | Note 5—Asset Acquisitions and Dispositions All gains or losses on asset dispositions are reported before-tax and are included net in the “Gain on dispositions” line on our consolidated income statement. All cash proceeds are included in the “Cash Flows From Investing Activities” section of our consolidated statement of cash flows. 2019 Assets Held for Sale In October 2019, we entered into an agreement to sell the subsidiaries that hold our Australia-West assets and operations to Santos for $ 1.39 billion, plus customary adjustments, with an effective date of January 1, 2019. In addition, we will receive a payment of $ 75 million upon final investment decision of the Barossa development project. These subsidiaries hold our 37.5 percent interest in the Barossa Project and Caldita Field, our 56.9 percent interest in the Darwin LNG Facility and Bayu-Undan Field, our 40 percent interest in the Greater Poseidon Fields, and our 50 percent interest in the Athena Field. The net carrying value is approximately $ 0.6 billion, which consisted primarily of $ 1.2 billion of PP&E and $ 0.3 billion of cash and working capital, offset by $ 0.7 billion of ARO and $ 0.2 billion of deferred tax liabilities. The assets met held for sale criteria in the fourth quarter, and as of December 31, 2019 we had reclassified $ 1.2 billion of PP&E to “Prepaid expenses and other current assets” and $ 0.7 billion of noncurrent ARO to “Other accruals” on our consolidated balance sheet. The before-tax earnings associated with our Australia-West subsidiaries were $ 372 million, $ 364 million and $ 317 million for the years ended December 31, 2019, 2018 and 2017, respectively. This transaction is expected to be completed in the first quarter of 2020, subject to regulatory approvals and other specific conditions precedent. Results of operations for the subsidiaries to be sold are reported within our Asia Pacific segment. In the fourth quarter of 2019, we signed an agreement to sell our interests in the Niobrara shale play for $ 380 million, plus customary adjustments, and overriding royalty interests in certain future wells. To reduce the carrying value to fair value, in the fourth quarter of 2019, we recorded an impairment of $ 379 million before- tax for developed properties and exploration expenses of $ 7 million related to leasehold impairment of undeveloped properties. Our Niobrara interests to be sold have a net carrying value of approximately $ 390 million, which consisted primarily of $ 426 million of PP&E, offset by $ 34 million of noncurrent ARO. The assets met held for sale criteria in the fourth quarter, and as of December 31, 2019, we had reclassified $ 426 million of PP&E to “Prepaid expenses and other current assets” and $ 34 million of noncurrent AROs to “Other accruals” on our consolidated balance sheet. The before-tax losses associated with our interests in Niobrara, including the $386 million of impairments noted above, were $ 372 million and $ 12 million for the years ended December 31, 2019 and 2017, respectively. The before-tax earnings associated with our interests in Niobrara for the year ended December 31, 2018 was $ 35 million. This transaction is subject to regulatory approval and other specific conditions precedent and is expected to close in the first quarter of 2020. The Niobrara results of operations are reported within our Lower 48 segment. Assets Sold In January 2019, we entered into agreements to sell our 12.4 percent ownership interests in the Golden Pass LNG Terminal and Golden Pass Pipeline. We also entered into agreements to amend our contractual obligations for retaining use of the facilities. As a result of entering into these agreements, we recorded a before-tax impairment of $ 60 million in the first quarter of 2019 which is included in the “Equity in earnings of affiliates” line on our consolidated income statement. We completed the sale in the second quarter of 2019. Results of operations for these assets are reported in our Lower 48 segment. See Note 15—Fair Value Measurement for additional information. In April 2019, we entered into an agreement to sell two ConocoPhillips U.K. subsidiaries to Chrysaor E&P Limited for $ 2.675 billion plus interest and customary adjustments, with an effective date of January 1, 2018. On September 30, 2019, we completed the sale for proceeds of $ 2.2 billion and recognized a $ 1.7 billion before-tax and $ 2.1 billion after-tax gain associated with this transaction in 2019. Together the subsidiaries sold indirectly held our exploration and production assets in the U.K. At the time of disposition, the net carrying value was approximately $ 0.5 billion, consisting primarily of $ 1.6 billion of PP&E, $ 0.5 billion of cumulative foreign currency translation adjustments, and $ 0.3 billion of deferred tax assets, offset by $ 1.8 billion of ARO and negative $ 0.1 billion of working capital. The before-tax earnings associated with the subsidiaries sold were $ 0.4 billion, $ 0.9 billion and $ 0.3 billion for the years ended December 31, 2019, 2018 and 2017, respectively. Results of operations for the U.K. are reported within our Europe, Middle East and North Africa segment. In the second quarter of 2019, we recognized an after-tax gain of $ 52 million upon the closing of the sale of our 30 percent interest in the Greater Sunrise Fields to the government of Timor-Leste for $ 350 million. The Greater Sunrise Fields were included in our Asia Pacific segment. In the fourth quarter of 2019, we sold our interests in the Magnolia field and platform for net proceeds of $ 16 million and recognized a before-tax gain of $ 82 million. At the time of sale, the net carrying value consisted of $ 4 million of PP&E offset by $ 70 million of ARO. The Magnolia results of operations are reported within our Lower 48 segment. Planned Dispositions In January 2020, we entered into an agreement to sell our interests in certain non-core properties in the Lower 48 segment for $ 186 million, plus customary adjustments. The assets met the held for sale criteria in January 2020 and the transaction is expected to be completed in the first quarter of 2020. No gain or loss is anticipated on the sale. This disposition will not have a significant impact on Lower 48 production. 2018 Assets Sold In the first quarter of 2018, we completed the sale of certain properties in the Lower 48 segment for net proceeds of $ 112 million. No gain or loss was recognized on the sale. In the second quarter of 2018, we completed the sale of a package of largely undeveloped acreage in the Lower 48 segment for net proceeds of $ 105 million and no gain or loss was recognized on the sale. In the third quarter of 2018, we completed a noncash exchange of undeveloped acreage in the Lower 48 segment. The transaction was recorded at fair value resulting in the recognition of a $ 56 million gain. In the fourth quarter of 2018, we sold several packages of undeveloped acreage in the Lower 48 segment for total net proceeds of $ 162 million and recognized gains of approximately $ 140 million. On October 31, 2018, we completed the sale of our interests in the Barnett to Lime Rock Resources for $ 196 million after customary adjustments and recognized a loss of $ 5 million. We recorded impairments of $ 87 million in 2018 and $ 572 million in 2017 to reduce the net carrying value of the Barnett to fair value. At the time of the disposition, our interest in Barnett had a net carrying value of $ 201 million, consisting of $ 250 million of PP&E and $ 49 million of AROs. The before-tax losses associated with our interests in the Barnett, including both the impairments and loss on disposition noted above, were $ 59 million and $ 566 million for the years 2018 and 2017, respectively. The Barnett results of operations are included in our Lower 48 segment. On December 18, 2018, we completed the sale of a ConocoPhillips subsidiary to BP. The subsidiary held 16.5 percent of our 24 percent interest in the BP-operated Clair Field in the U.K. We retained a 7.5 percent interest in the field. At the same time, we acquired BP’s 39.2 percent nonoperated interest in the Greater Kuparuk Area in Alaska, including their 38 percent interest in the Kuparuk Transportation Company (Kuparuk Assets). The transaction was recorded at a fair value of $ 1,743 million and was cash neutral except for customary adjustments which resulted in net proceeds of $ 253 million. At closing, our interest in the Clair Field had a net carrying value of approximately $ 1,028 million consisting primarily of $ 1,553 million of PP&E, $ 485 million of deferred tax liabilities, and $ 59 million of AROs. We recognized a before-tax gain of $ 715 million on the transaction. The 2018 before-tax earnings associated with our 16.5 interest in the Clair Field, including the recognized gain, were $ 748 million. The before-tax loss associated with our interest in the Clair Field was $ 0.4 million for 2017. Results of operations for our interest in the Clair Field are reported within our Europe, Middle East and North Africa segment and the Kuparuk Assets are included in our Alaska segment. Acquisitions In May 2018, we completed the acquisition of Anadarko’s 22 percent nonoperated interest in the Western North Slope of Alaska, as well as its interest in the Alpine Transportation Pipeline for $ 386 million, after customary adjustments. This transaction was accounted for as a business combination resulting in the recognition of approximately $ 297 million of proved property and $ 114 million of unproved property within PP&E, $ 20 million of inventory, $ 14 million of investments, and $ 59 million of AROs. These assets are included in our Alaska segment. As discussed in the Clair Field transaction with BP above, we acquired BP’s Kuparuk Assets on December 18, 2018. The transaction was accounted for as an asset acquisition with a net acquisition cost of $ 1,490 million, comprised of the fair value of $ 1,743 million associated with the disposed 16.5 percent of our 24 percent interest in the Clair Field, reduced by the net proceeds of $253 million. Accordingly, we recorded approximately $ 1.9 billion to proved property within PP&E, $ 42 million to inventory, $ 15 million to investments, $ 374 million of AROs, and a $ 100 million decrease to net working capital. The Kuparuk Assets are included in our Alaska segment. 2017 Assets Sold On May 17, 2017, we completed the sale of our 50 percent nonoperated interest in the Foster Creek Christina Lake (FCCL) Partnership, as well as the majority of our western Canada gas assets to Cenovus Energy. Consideration for the transaction was $ 11.0 billion in cash after customary adjustments, 208 million Cenovus Energy common shares and a five-year uncapped contingent payment. The value of the shares at closing was $ 1.96 billion based on a price of $ 9.41 per share on the NYSE. The contingent payment, calculated and paid on a quarterly basis, is $6 million CAD for every $1 CAD by which the WCS quarterly average crude price exceeds $52 CAD per barrel. Contingent payments received during the five-year period are reflected as “Gain on dispositions” on our consolidated income statement. We reported before-tax equity earnings associated with FCCL of $ 197 million for 2017. We reported a before-tax loss of $ 26 million for the western Canada gas producing properties for 2017. We recorded gains on dispositions for these contingent payments of $ 114 million and $ 95 million for the years 2019 and 2018, respectively. At closing, the carrying value of our equity investment in FCCL was $ 8.9 billion. The carrying value of our interest in the western Canada gas assets was $ 1.9 billion consisting primarily of $ 2.6 billion of PP&E, partly offset by AROs of $ 585 million and approximately $ 100 million of environmental and other accruals. A gain of $ 2.1 billion was included in the “Gain on dispositions” line on our consolidated income statement in 2017. Both FCCL and the western Canada gas assets were reported in our Canada segment. For more information on the Canada disposition and our investment in Cenovus Energy see Note 7— Investment in Cenovus Energy, Note 15—Fair Value Measurement, and Note 20—Accumulated Other Comprehensive Loss. In July 2017, we completed the sale of our interests in the San Juan Basin to an affiliate of Hilcorp Energy Company for $ 2.5 billion in cash after customary adjustments and recognized a loss on disposition of $ 22 million. The transaction includes a contingent payment of up to $300 million. The six-year contingent payment, effective beginning January 1, 2018, is due annually for the periods in which the monthly U.S. Henry Hub price is at or above $3.20 per MMBTU. In 2018, we recorded a gain on dispositions for these contingent payments of $ 28 million. No contingent payments were recorded in 2019. In the second quarter of 2017, we recorded an impairment of $ 3.3 billion to reduce the carrying value of our interests in the San Juan Basin to fair value. At the time of disposition, the San Juan Basin interests had a net carrying value of approximately $ 2.5 billion, consisting of $ 2.9 billion of PP&E and $ 406 million of liabilities, primarily AROs. The before- tax loss associated with our interests in the San Juan Basin, including both the $3.3 billion impairment and $22 million loss on disposition noted above, was $ 3.2 billion for 2017. The San Juan Basin results were reported in our Lower 48 segment. In September 2017, we completed the sale of our interest in the Panhandle assets for $ 178 million in cash after customary adjustments and recognized a loss on disposition of $ 28 million. At the time of the disposition, the carrying value of our interest was $ 206 million, consisting primarily of $ 279 million of PP&E and $ 72 million of AROs. Including the $28 million loss on disposition noted above, we reported a before-tax loss for the Panhandle properties of $ 14 million for 2017. The Panhandle results were reported in our Lower 48 segment.

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- Definition The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes only disposal groups not categorized as discontinued operations. + References No definition available. + Details
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