View Filing Data

Print Document View Excel Document

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2017	Jan. 31, 2018	Jun. 30, 2017
Document and Entity Information
Entity Registrant Name	California Resources Corp
Entity Central Index Key	0001609253
Document Type	10-K
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 363
Entity Common Stock, Shares Outstanding		42,901,946
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
CURRENT ASSETS
Cash	$ 20	$ 12
Trade receivables	277	232
Inventories	56	58
Other current assets, net	130	123
Total current assets	483	425
PROPERTY, PLANT AND EQUIPMENT	21,260	20,915
Accumulated depreciation, depletion and amortization	(15,564)	(15,030)
Total property, plant, equipment, net	5,696	5,885
OTHER ASSETS	28	44
TOTAL ASSETS	6,207	6,354
CURRENT LIABILITIES
Current maturities of long-term debt		100
Accounts payable	257	219
Accrued liabilities	475	407
Total current liabilities	732	726
LONG-TERM DEBT - PRINCIPAL AMOUNT	5,306	5,168
DEFERRED GAIN AND ISSUANCE COSTS, NET	287	397
OTHER LONG-TERM LIABILITIES	602	620
EQUITY
Preferred stock (20 million shares authorized at $0.01 par value) no shares outstanding at December 31, 2017 or 2016
Common stock (200 million shares authorized at $0.01 par value) outstanding shares (2017 - 42,901,946 shares and 2016 - 42,542,637 shares)
Additional paid-in capital	4,879	4,861
Accumulated deficit	(5,670)	(5,404)
Accumulated other comprehensive loss	(23)	(14)
Total equity attributable to common stock	(814)	(557)
Noncontrolling interest	94
Total equity	(720)	(557)
TOTAL LIABILITIES AND EQUITY	$ 6,207	$ 6,354

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2017	Dec. 31, 2016	May 31, 2016	Dec. 31, 2015
Consolidated Balance Sheets
Preferred stock, authorized shares	20,000,000	20,000,000	20,000,000
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, outstanding shares	0	0
Common stock, authorized shares	200,000,000	200,000,000	200,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, outstanding shares	42,901,946	42,542,637		38,818,000

Consolidated Statements of Operations - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
REVENUES AND OTHER
Oil and gas net sales	$ 1,936	$ 1,621	$ 2,134
Net derivative (losses) gains	(90)	(206)	133
Other revenue	160	132	136
Total revenues and other	2,006	1,547	2,403
COSTS AND OTHER
Production costs	876	800	951
General and administrative expenses	259	248	354
Depreciation, depletion and amortization	544	559	1,004
Asset impairments			4,852
Taxes other than on income	136	144	180
Exploration expense	22	23	36
Other expenses, net	106	79	168
Total costs and other	1,943	1,853	7,545
OPERATING INCOME (LOSS)	63	(306)	(5,142)
NON-OPERATING (LOSS) INCOME
Interest and debt expense, net	(343)	(328)	(326)
Net gains on early extinguishment of debt	4	805	20
Gains on asset divestitures	21	30
Other non-operating expense	(7)		(28)
(LOSS) INCOME BEFORE INCOME TAXES	(262)	201	(5,476)
Income tax benefit		78	1,922
NET (LOSS) INCOME	(262)	279	(3,554)
Net income attributable to noncontrolling interest	(4)
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCK	$ (266)	$ 279	$ (3,554)
Net (loss) income attributable to common stock per share
Basic and diluted (in dollars per share)	$ (6.26)	$ 6.76	$ (92.79)
Dividends per common share (in dollars per share)			$ 0.30

Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Consolidated Statements of Comprehensive Income

Net (loss) income

$ (262)

$ 279

$ (3,554)

Other comprehensive (loss) income items:

Pension and postretirement losses

^[1]

(14)

(9)

(2)

Reclassification to income of realized losses on pension and postretirement

^[2]

Total other comprehensive income, net of tax

(9)

Comprehensive (loss) income attributable to common stock

$ (271)

$ 280

$ (3,545)

[1]	No associated tax for 2017 and 2016. Net of tax of $1 million for 2015. See Note 13 Pension and Postretirement Benefit Plans, for additional information.
[2]	No associated tax for 2017 and 2016. Net of tax $(7) million 2015. See Note 13 Pension and Postretirement Benefit Plans, for additional information.

Consolidated Statements of Comprehensive Income (Parenthetical) $ in Millions	12 Months Ended
	Dec. 31, 2015 USD ($)
Consolidated Statements of Comprehensive Income
Pension and postretirement losses, tax	$ 1
Reclassification to income of realized losses (gains) on derivatives, tax	$ (7)

Consolidated Statements of Equity - USD ($) $ in Millions	Equity Attributable to Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive (Loss) Income	Noncontrolling Interest	Total
Balance at Dec. 31, 2014	$ 2,611	$ 4,752	$ (2,117)	$ (24)		$ 2,611
Increase (decrease) in Equity
Net income (loss)	(3,554)		(3,554)			(3,554)
Other comprehensive income, net of tax	9			9		9
Dividends on common stock	(12)		(12)			(12)
Share-based compensation, net	30	30				30
Balance at Dec. 31, 2015	(916)	4,782	(5,683)	(15)		(916)
Increase (decrease) in Equity
Net income (loss)	279		279			279
Other comprehensive income, net of tax	1			1		1
Share-based compensation, net	79	79				79
Balance at Dec. 31, 2016	(557)	4,861	(5,404)	(14)		(557)
Increase (decrease) in Equity
Net income (loss)	(266)		(266)		$ 4	(262)
Contribution from noncontrolling interest, net					98	98
Distributions paid to noncontrolling interest holders					(8)	(8)
Other comprehensive income, net of tax	(9)			(9)		(9)
Share-based compensation, net	18	18				18
Balance at Dec. 31, 2017	$ (814)	$ 4,879	$ (5,670)	$ (23)	$ 94	$ (720)

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
CASH FLOW FROM OPERATING ACTIVITIES
Net (loss) income	$ (262)	$ 279	$ (3,554)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization	544	559	1,004
Asset impairments			4,852
Deferred income tax benefit		(78)	(2,258)
Net derivative losses (gains)	90	206	(133)
Net (payments) proceeds on settled derivatives	(7)	77	81
Net gains on early extinguishment of debt	(4)	(805)	(20)
Amortization of deferred gain	(74)	(71)	(3)
Gains on asset divestitures	(21)	(30)
Other non-cash tax provision			310
Other non-cash charges to income, net	77	101	210
Dry hole expenses	2	3	9
Changes in operating assets and liabilities, net:
(Increase) decrease in trade receivables	(45)	(33)	99
Decrease in inventories	2
(Increase) decrease in other current assets	(2)	25	18
Decrease in accounts payable and accrued liabilities	(52)	(103)	(212)
Net cash provided by operating activities	248	130	403
CASH FLOW FROM INVESTING ACTIVITIES
Capital investments	(371)	(75)	(401)
Changes in capital investment accruals	27	(6)	(205)
Asset divestitures	33	20
Acquisitions and other	(2)		(151)
Net cash used in investing activities	(313)	(61)	(757)
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from 2014 Revolving Credit Facility	1,696	2,218	2,035
Repayments of 2014 Revolving Credit Facility	(2,180)	(2,110)	(1,656)
Proceeds from 2016 Credit Agreement		990
Proceeds from 2017 Term Loan	1,274
Payments on 2014 Term Loan	(650)	(350)
Debt repurchases	(116)	(770)	(12)
Debt transaction costs	(42)	(51)	(11)
Contribution from noncontrolling interest, net	98
Distributions paid to noncontrolling interest holders	(8)
Employee stock purchases and other	3	4
Shares canceled for taxes	(2)
Issuance of common stock			8
Cash dividends paid			(12)
Net cash provided (used) by financing activities	73	(69)	352
Increase (decrease) in cash	8		(2)
Cash-beginning of year	12	12	14
Cash-end of year	$ 20	$ 12	$ 12

THE SPIN-OFF, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER

12 Months Ended

Dec. 31, 2017

THE SPIN-OFF, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER

THE SPIN-OFF, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER

NOTE 1 THE SPIN-OFF, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER

The Separation and Spin-off

We are an independent oil and natural gas exploration and production company operating properties within California. We were incorporated in Delaware as a wholly owned subsidiary of Occidental Petroleum Corporation (Occidental) on April 23, 2014, and remained a wholly owned subsidiary of Occidental until November 30, 2014. On November 30, 2014, Occidental distributed shares of our common stock on a pro-rata basis to Occidental stockholders. We became an independent, publicly traded company (the Spin-off) on December 1, 2014. Occidental initially retained approximately 18.5% of our outstanding shares of common stock, which it distributed to Occidental stockholders on March 24, 2016.

Except when the context otherwise requires or where otherwise indicated, (1) all references to ‘‘CRC,’’ the ‘‘Company,’’ ‘‘we,’’ ‘‘us’’ and ‘‘our’’ refer to California Resources Corporation and its subsidiaries or the California business, (2) all references to the ‘‘California business’’ refer to Occidental’s California oil and gas exploration and production operations and related assets, liabilities and obligations, which we have assumed in connection with the Spin-off, and (3) all references to ‘‘Occidental’’ refer to Occidental Petroleum Corporation, our former parent, and its subsidiaries.

Basis of Presentation

All financial information presented consists of our consolidated results of operations, financial position and cash flows. The assets and liabilities in the consolidated financial statements are presented on a historical cost basis. We have eliminated all of our significant intercompany transactions and accounts. We account for our share of oil and gas exploration and production ventures, in which we have a direct working interest, by reporting our proportionate share of assets, liabilities, revenues, costs and cash flows within the relevant lines on the balance sheets and statements of operations and cash flows.

As discussed more fully in Note 3 Acquisitions and Divestitures, we entered into a development joint venture with Benefit Street Partners (BSP) in 2017 in which we have a controlling financial interest. Therefore, the accounts of the BSP joint venture (BSP JV) are included in our accompanying consolidated financial statements beginning with the completion of the transaction. BSP’s portion of net earnings and stockholders’ equity is shown separately as a noncontrolling interest in the accompanying consolidated statements of operations and consolidated balance sheets, respectively. Our consolidated results reflect only our working interest share in our JV with Macquarie Infrastructure and Real Assets Inc. (MIRA JV).

Certain prior year amounts have been reclassified to conform to the 2017 presentation. On the statement of operations, we reclassified gains on asset divestitures out of other non-operating income (expense). On the statement of cash flows, we also moved gains on asset divestitures out of other non-cash charges to income, net.

On May 31, 2016, we completed a reverse stock split using a ratio of one share of common stock for every ten shares then outstanding. Share and per share amounts included in this report have been restated to reflect this reverse stock split. The split proportionally decreased the number of authorized shares of common stock from 2.0 billion shares to 200 million shares and preferred stock from 200 million to 20 million shares. The Compensation Committee of our Board approved proportionate adjustments to the number of shares outstanding and available for issuance under our stock-based compensation plans and to the exercise price, grant price or purchase price relating to any award under the plans, using the same reverse-split ratio, pursuant to existing authority granted to the Committee under the plans.

Risks and Uncertainties

The process of preparing financial statements in conformity with United States generally accepted accounting principles requires management to select appropriate accounting policies and make informed estimates and judgments regarding certain types of financial statement balances and disclosures. Such estimates primarily relate to unsettled transactions and events as of the date of the financial statements and judgments on expected outcomes as well as the materiality of transactions and balances. Changes in facts and circumstances or discovery of new information relating to such transactions and events may result in revised estimates and judgments and actual results may differ from estimates upon settlement. Management believes that these estimates and judgments provide a reasonable basis for the fair presentation of our financial statements.

Concentration of Customers

For the years ended December 31, 2017 and 2016, Phillips 66 Company, Andeavor (formerly Tesoro Refining & Marketing Company LLC), Valero Marketing & Supply Company and Shell Trading (US) Company each accounted for at least 10%, and, collectively, 67% of our revenue. For the year ended December 31, 2015, Phillips 66 Company, Tesoro Refining & Marketing Company LLC and Valero Marketing & Supply Company each accounted for more than 10%, and collectively, 64% of our revenue.

Critical Accounting Policies

Property, Plant and Equipment

We use the successful efforts method to account for our oil and gas properties. Under this method, we capitalize costs of acquiring properties, costs of drilling successful exploration wells and development costs. The costs of exploratory wells, including permitting, land preparation and drilling costs, are initially capitalized pending a determination of whether we find proved reserves. If we find proved reserves, the costs of exploratory wells remain capitalized. Otherwise, we charge the costs of the related wells to expense. In some cases, we cannot determine whether we have found proved reserves at the completion of exploration drilling, and must conduct additional testing and evaluation of the wells. We generally expense the costs of such exploratory wells if we do not determine we have found proved reserves within a 12-month period after drilling is complete.

Proved reserves are those quantities of oil and natural gas which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible—from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulations—prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation. We have no proved oil and gas reserves for which the determination of economic producibility is subject to the completion of major additional capital investments.

Several factors could change our proved oil and gas reserves. For example, for long-lived properties, higher product prices typically result in additional reserves becoming economic and lower product prices may lead to existing reserves becoming uneconomic. Estimation of future production and development costs is also subject to change partially due to factors beyond our control, such as energy costs and inflation or deflation of oil field service costs. These factors, in turn, could lead to changes in the quantity of proved reserves. Additional factors that could result in a change of proved reserves include production decline rates and operating performance differing from those estimated when the proved reserves were initially recorded as well as availability of capital to implement the development activities contemplated in the reserves estimates and changes in management’s plans with respect to such development activities.

We perform impairment tests with respect to proved properties when product prices decline other than temporarily, reserves estimates change significantly, other significant events occur or management’s plans change with respect to these properties in a manner that may impact our ability to realize the recorded asset amounts. Impairment tests incorporate a number of assumptions involving expectations of undiscounted future cash flows, which can change significantly over time. These assumptions include estimates of future product prices, which we base on forward price curves and, when applicable, contractual prices, estimates of oil and gas reserves and estimates of future expected operating and development costs. Any impairment loss would be calculated as the excess of the asset’s net book value over its estimated fair value. We recognize any impairment loss on proved properties by adjusting the carrying amount of the asset.

A portion of the carrying value of our oil and gas properties is attributable to unproved properties. At December 31, 2017, the net capitalized costs attributable to unproved properties were approximately $300 million. When we make acquisitions that include unproved properties, we assign values based on estimated reserves that we believe will ultimately be proved. As exploration and development work progresses and if reserves are proved, we transfer the book value from unproved based on the initially determined rate, not based on specific areas, leases or other units. If the exploration and development work were to be unsuccessful, or management decided not to pursue development of these properties as a result of lower commodity prices, higher development and operating costs, contractual conditions or other factors, the capitalized costs of the related properties would be expensed. The unproved amounts are not subject to DD&A until they are classified as proved properties. As exploration and development work progresses, if reserves on these properties are proved, capitalized costs attributable to the properties become subject to DD&A.

Impairments of unproved properties are primarily based on qualitative factors including intent of property development, primary lease term and recent development activity. The timing of impairments on unproved properties, if warranted, depends upon management’s plans, the nature, timing and extent of future exploration and development activities and their results. We recognize any impairment loss on unproved properties by providing a valuation allowance.

We determine depreciation and depletion of oil and gas producing properties by the unit-of-production method. We amortize acquisition costs over total proved reserves, and capitalize development and successful exploration costs over proved developed reserves. Our remaining assets are depreciated on a straight-line basis.

The most significant ongoing financial statement effect from a change in our proved oil and gas reserves or impairment of the carrying value of our proved properties would be to our DD&A rate. For example, a 5% increase or decrease in the amount of oil and gas reserves would change our DD&A rate by $0.61 per barrel, which would increase or decrease pre-tax income (loss) by $29 million annually based on production rates for the year ended December 31, 2017.

Asset Retirement Obligations

We recognize the fair value of asset retirement obligations in the period in which a determination is made that a legal obligation exists to dismantle an asset and reclaim or remediate the property at the end of its useful life and the cost of the obligation can be reasonably estimated. The liability amounts are based on future retirement cost estimates and incorporate many assumptions such as time of abandonment, technological changes, future inflation rates and the risk-adjusted discount rate. When the liability is initially recorded, we capitalize the cost by increasing the related PP&E balances. If the estimated future cost of the asset retirement obligation changes, we record an adjustment to both the asset retirement obligation and PP&E. Over time, the liability is increased and expense is recognized for accretion, and the capitalized cost is recovered over either the useful life of our facilities or the unit-of-production method for our minerals.

At certain of our facilities, we have identified asset retirement obligations that are related mainly to plant and field decommissioning, including plugging and abandonment of wells. In certain cases, we do not know or cannot estimate when we may settle these obligations and, therefore, we cannot reasonably estimate the fair value of these liabilities. We will recognize these asset retirement obligations in the periods in which sufficient information becomes available to reasonably estimate their fair values. Additionally, for certain plants, we do not have a legal obligation to decommission them and accordingly we have not recorded a liability.

The following table summarizes the activity of our asset retirement obligation, of which $403 million and $397 million is included in other long-term liabilities, with the remaining current portion in accrued liabilities at December 31, 2017 and 2016, respectively.

	For the years ended December 31,
	2017		2016
	(in millions)
Beginning balance	$	411	$	357
Liabilities incurred - capitalized to PP&E	2		2
Liabilities settled and paid	(9)		(10)
Accretion expense	25		22
Disposition and other - changes in PP&E	—		(17)
Revisions to estimated cash flows - changes in PP&E	(7)		57

Ending balance	$	422	$	411

Pension and Postretirement Benefit Plans

All of our employees participate in postretirement benefit plans sponsored by us. These plans are funded as benefits are paid. In addition, a small number of our employees also participate in defined benefit pension plans sponsored by us. We recognize the net overfunded or underfunded amounts in the financial statements using a December 31 measurement date.

We determine our defined benefit pension and postretirement benefit plan obligations based on various assumptions and discount rates. The discount rate assumptions used are meant to reflect the interest rate at which the obligations could effectively be settled on the measurement date. We estimate the rate of return on assets with regard to current market factors but within the context of historical returns.

Pension plan assets are measured at fair value. Publicly registered mutual funds are valued using quoted market prices in active markets. Commingled funds are valued at the fund units’ net asset value (NAV) provided by the issuer, which represents the quoted price in a non-active market. Guaranteed deposit accounts are valued at the book value provided by the issuer.

Actuarial gains and losses that have not yet been recognized through income are recorded in accumulated other comprehensive income within equity, net of taxes, until they are amortized as a component of net periodic benefit cost.

Fair Value Measurements

We have categorized our assets and liabilities that are measured at fair value in a three-level fair value hierarchy, based on the inputs to the valuation techniques: Level 1—using quoted prices in active markets for the assets or liabilities; Level 2—using observable inputs other than quoted prices for the assets or liabilities; and Level 3—using unobservable inputs. Transfers between levels, if any, are recognized at the end of each reporting period. We apply the market approach for certain recurring fair value measurements, maximize our use of observable inputs and minimize use of unobservable inputs. We generally use an income approach to measure fair value when observable inputs are unavailable. This approach utilizes management’s judgments regarding expectations of projected cash flows using a risk-adjusted discount rate.

Commodity derivatives are carried at fair value. We utilize the mid-point between bid and ask prices for valuing these instruments. In addition to using market data in determining these fair values, we make assumptions about the risks inherent in the inputs to the valuation technique. Our commodity derivatives comprise over-the-counter (OTC) bilateral financial commodity contracts, which are generally valued using industry-standard models that consider various inputs, including quoted forward prices for commodities, time value, volatility factors, credit risk and current market and contracted prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these inputs are observable data or are supported by observable prices at which transactions are executed in the marketplace. We classify these measurements as Level 2. The most significant items on our balance sheet that would be affected by recurring fair value measurements are derivatives. Based on the $133 million net derivative liability as of December 31, 2017, a 10% increase or decrease in their fair value would affect pre-tax earnings by approximately $13 million.

Our property, plant and equipment is written down to fair value if we determine that there has been an impairment in its value. The fair value is determined as of the date of the assessment using discounted cash flow models based on management’s expectations for the future. Inputs include estimates of future production, prices based on commodity forward price curves as of the date of the estimate, estimated future operating and development costs and a risk-adjusted discount rate.

The carrying amounts of cash and other on-balance sheet financial instruments, other than fixed-rate debt, approximate fair value.

Other Accounting Policies

Revenue Recognition

We recognize revenue from oil and natural gas production when delivery occurs and title has passed from us to the transportation company or the customer, as applicable. We recognize our share of revenues net of any royalties and other third-party share.

Inventories

Materials and supplies are valued at weighted-average cost and are reviewed periodically for obsolescence. Finished goods is primarily comprised of oil and NGLs, which are valued at the lower of cost or market. Inventories as of December 31, 2017 and 2016 consisted of the following:

	2017		2016
	(in millions)
Materials and supplies	$	53	$	55
Finished goods	3		3

Total	$	56	$	58

Derivative Instruments

Our derivatives are carried at fair value and on a net basis when a legal right of offset exists with the same counterparty. Fair value gains and losses from derivative instruments are recognized on a net basis in our consolidated statements of operations. Unless otherwise indicated, we use the term “hedge” to describe derivative instruments that are designed to achieve our hedging program goals, even though they are not necessarily accounted for as cash-flow or fair-value hedges.

Stock-Based Incentive Plans

We have stockholder-approved stock-based incentive plans for certain employees and directors that are more fully described in Note 10 Stock Compensation.

Earnings Per Share

We compute basic and diluted earnings per share (EPS) using the two-class method required for participating securities. Certain restricted and performance stock awards are considered participating securities when such shares have non-forfeitable dividend rights at the same rate as common stock.

Under the two-class method, undistributed earnings allocated to participating securities are subtracted from net income attributable to common stock in determining net income available to common stockholders. In loss periods, no allocation is made to participating securities because the participating securities do not share in losses. For basic EPS, the weighted-average number of common shares outstanding excludes outstanding shares related to unvested restricted stock awards. For diluted EPS, the basic shares outstanding are adjusted by adding potentially dilutive securities.

Other Loss Contingencies

In the normal course of business, we are involved in lawsuits, claims and other environmental and legal proceedings and audits. We accrue reserves for these matters when it is probable that a liability has been incurred and the liability can be reasonably estimated. In addition, we disclose, if material, in aggregate, our exposure to loss in excess of the amount recorded on the balance sheet for these matters if it is reasonably possible that an additional material loss may be incurred. We review our loss contingencies on an ongoing basis.

Loss contingencies are based on judgments made by management with respect to the likely outcome of these matters and are adjusted as appropriate. Management’s judgments could change based on new information, changes in, or interpretations of, laws or regulations, changes in management’s plans or intentions, opinions regarding the outcome of legal proceedings, or other factors.

Income Taxes

Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their tax bases. Deferred tax assets are recognized when it is more-likely-than-not that they will be realized. We periodically assess our deferred tax assets and reduce such assets by a valuation allowance if we deem it is more likely than not that some portion or all of the deferred tax assets will not be realized.

We recognize the financial statement effects of tax positions when it is more-likely-than-not, based on the technical merits, that the position will be sustained upon examination by a tax authority. We recognize interest and penalties, if any, related to uncertain tax positions as a component of the income tax provision. No interest or penalties related to uncertain tax positions were recognized in the financial statements for the periods presented.

Production Sharing Type Contracts

Our share of production and reserves from operations in the Wilmington field is subject to contractual arrangements similar to production-sharing contracts (PSCs) that are in effect through the economic life of the assets. Under such contracts we are obligated to fund all capital and production costs. We record a share of production and reserves to recover a portion of such capital and production costs and an additional share for profit. Our portion of the production represents volumes: (i) to recover our partners’ share of capital and production costs that we incur on their behalf, (ii) for our share of contractually defined base production and (iii) for our share of remaining production thereafter. We recover our share of capital and production costs, and generate returns, through our defined share of production from (ii) and (iii) above. These contracts do not transfer any right of ownership to us and reserves reported from these arrangements are based on our economic interest as defined in the contracts. Our share of production and reserves from these contracts decreases when product prices rise and increases when prices decline assuming comparable capital investment and production costs. However, our net economic benefit is greater when product prices are higher. The contracts represented approximately 20% of our production for the year ended December 31, 2017.

In addition, in line with industry practice for reporting PSC-type contracts, we report 100% of operating costs under the PSCs in our consolidated statements of operations as opposed to reporting only our share of those costs. We report the proceeds from production designed to recover our partners’ share of such costs (cost recovery) in our revenues. Our reported production volumes reflect only our share of the total volumes produced, including cost recovery, which is less than the total volumes produced under the PSCs. This difference in reporting full operating costs but only our net share of production inflates our operating costs per barrel, with an equal corresponding increase in revenues, with no effect on our net results.

Cash

Cash at December 31, 2017 included approximately $5 million that is restricted for distributions to BSP unless otherwise mutually agreed to by the parties. For more on this acquisition, see Note 3 Acquisitions and Divestitures.

Other Current Assets

Other current assets as of December 31, 2017 and 2016 consisted of the following:

	2017	2016
	(in millions)
Amounts due from joint interest partners	76	51
Derivative assets from commodities contracts	23	39
Assets held for sale	12	19
Prepaid expenses	19	14

Other current assets	130	123

Accrued Liabilities

Accrued liabilities as of December 31, 2017 and 2016 consisted of the following:

	2017	2016
	(in millions)
Derivative liabilities from commodities contracts	154	103
Greenhouse gas obligations	106	89
Accrued employee-related costs	86	91
Other	129	124

Accrued liabilities	475	407

Supplemental Cash Flow Information

We did not make U.S. federal and state income tax payments in 2017, 2016 or 2015. Interest paid, net of capitalized amounts, totaled approximately $393 million, $382 million and $350 million, respectively, for the years ended December 31, 2017, 2016 and 2015.

ACCOUNTING AND DISCLOSURE CHANGES	12 Months Ended
ACCOUNTING AND DISCLOSURE CHANGES	Dec. 31, 2017
ACCOUNTING AND DISCLOSURE CHANGES
ACCOUNTING AND DISCLOSURE CHANGES	NOTE 2 ACCOUNTING AND DISCLOSURE CHANGES Recently Issued Accounting and Disclosure Changes In 2016, the Financial Accounting Standards Board (FASB) issued rules clarifying the revenue recognition standard issued in 2014. The new revenue recognition model is based on control, which differs from the previous model which was based on a transfer of risks and rewards. Under the new rules, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. As a result, depending on where control transfers, certain fees for transportation, marketing and processing, which were previously netted against revenue, will prospectively be presented as expenses. We have not identified any changes to the timing of revenue recognition based on the requirements of the new rules. The new rules also require more detailed disclosures related to the nature, timing, amount and uncertainty of revenue and cash flows arising from contracts with customers. We will adopt these rules in the first quarter of 2018 and apply the modified retrospective approach. In February 2016, the FASB issued rules requiring lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months and to include qualitative and quantitative disclosures with respect to the amount, timing, and uncertainty of cash flows arising from leases. These rules will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with earlier application permitted. We are currently evaluating the impact of these rules on our financial statements. In January 2017, the FASB issued rules that changed the definition of a business to assist entities with evaluating when a set of transferred assets and activities is a business. The rules are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. We do not expect the adoption of these rules to have a significant impact on our financial statements. In March 2017, the FASB issued rules requiring employers that sponsor defined benefit plans for pensions and postretirement benefits to present the service cost component of net periodic benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period. Only the service cost component will be eligible for capitalization in assets. Employers will present the other components of the net periodic benefit cost separately from the line item that includes the service cost and outside of any subtotal of operating income. The rules are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. We do not expect the adoption of these rules to have a significant impact on our financial statements. In May 2017, the FASB issued rules to simplify the guidance on the modification of share-based payment awards. The amendments provide clarity on which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting prospectively. The rules are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. The new rules will be applied prospectively to any awards modified on or after the adoption date. Recently Adopted Accounting and Disclosure Changes In July 2015, the FASB issued rules requiring entities to measure inventory at the lower of cost or net realizable value. We adopted these rules in the first quarter of 2017 with no changes to our financial statements.

- Definition

The entire disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6507316

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Direct Effects of a Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=66092750

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=64853466&loc=d3e22583-107794

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Indirect Effects of a Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6515603

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64853466&loc=d3e22580-107794

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.10-01.(b)(6))
-URI http://asc.fasb.org/extlink&oid=27015980&loc=d3e46468-122699

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Accounting Change
-URI http://asc.fasb.org/extlink&oid=6503790

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=64853466&loc=d3e22499-107794

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Retrospective Application
-URI http://asc.fasb.org/extlink&oid=6523989

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section 45
-Paragraph 13
-URI http://asc.fasb.org/extlink&oid=68064558&loc=d3e765-108305

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=68064558&loc=d3e725-108305

+ Details

ACQUISITIONS AND DIVESTITURES	12 Months Ended
ACQUISITIONS AND DIVESTITURES	Dec. 31, 2017
ACQUISITIONS AND DIVESTITURES
ACQUISITIONS AND DIVESTITURES	NOTE 3 ACQUISITIONS AND DIVESTITURES 2017 In February 2017, we divested non-core assets resulting in $32 million of proceeds and a $21 million gain. In February 2017, we entered into a joint venture (JV) with BSP where BSP will contribute up to $250 million, subject to agreement of the parties, in exchange for a preferred interest in the BSP JV. The funds contributed by BSP are designated to be used to develop certain of our oil and gas properties. We contributed a net profits interest (NPI) in existing and future cash flow from such properties in exchange for a common interest in the JV. BSP is entitled to preferential distributions and, if BSP receives cash distributions equal to a predetermined threshold, the preferred interest is automatically redeemed in full with no additional payment. BSP funded two $50 million tranches in March and July 2017, which were net of a $2 million issuance fee. The $98 million net proceeds were used to fund capital investments of $96 million and the remainder for hedging activities. Proceeds from the NPI are used by the BSP JV to (1) pay quarterly minimum distributions to BSP, (2) pay for development costs within the project area, upon mutual agreement between members, and (3) make distributions to BSP until the predetermined threshold is achieved. In April 2017, we entered into a JV with Macquarie Infrastructure and Real Assets Inc. (MIRA) under which MIRA will invest up to $300 million, subject to agreement of the parties, to develop certain of our oil and gas properties in exchange for a 90% working interest in the related properties (MIRA JV). MIRA will fund 100% of the development cost of such properties. Our 10% working interest reverts to 75% if MIRA receives cash distributions equal to a predetermined threshold return. MIRA initially committed $160 million, which is intended to be invested over two years. Of the committed amount, MIRA contributed $58 million for drilling projects in 2017, with additional funding of up to $96 million expected in 2018. Our consolidated results reflect the full operations of our BSP JV, with BSP’s share of net income and stockholders’ equity being shown separately as a noncontrolling interest in the accompanying consolidated statements of operations and consolidated balance sheets, respectively. Our consolidated results reflect only our working interest share in our MIRA JV. 2016 During the year ended December 31, 2016, we divested non-core assets resulting in $20 million of proceeds and a $30 million gain. 2015 During the year ended December 31, 2015, we paid approximately $140 million to acquire certain producing and non-producing oil and gas properties, primarily in the San Joaquin basin.

PROPERTY, PLANT AND EQUIPMENT

12 Months Ended

Dec. 31, 2017

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT

NOTE 4 PROPERTY, PLANT AND EQUIPMENT

The carrying value of our property, plant and equipment (PP&E) represents the cost incurred to acquire or develop the asset, including any asset retirement obligations and capitalized interest, net of accumulated depreciation, depletion and amortization (DD&A) and any impairment charges. For assets acquired, initial PP&E cost is based on fair values at the acquisition date. Asset retirement obligations are capitalized and amortized over the lives of the related assets.

The following table summarizes the activity of capitalized exploratory well costs for the years ended December 31:

	2017		2016		2015
	(in millions)
Balance - beginning of year	$	4	$	6	$	4
Additions to capitalized exploratory well costs pending the determination of proved reserves	4		1		16
Reclassification to property, plant and equipment based on the determination of proved reserves	(2)		—		(5)
Capitalized exploratory well costs charged to expense	(2)		(3)		(9)

Balance - end of year	$	4	$	4	$	6

We expense annual lease rentals; the costs of injection used in production and exploration; and geological, geophysical and seismic costs as incurred. Costs of maintenance and repairs are expensed as incurred, except that the costs of replacements that expand capacity or add proven oil and gas reserves are capitalized.

Our gas plant and power plant assets are depreciated over the estimated useful lives of the assets, using the straight-line method, with expected initial useful lives of the assets ranging from two to 30 years. Other non-producing property and equipment is depreciated using the straight-line method based on expected initial lives of the individual assets or group of assets ranging from two to 20 years.

No impairment charges were recorded in 2017 or 2016. In 2015, we recorded impairment charges on our properties, in part, based on year-end forward price curves, as well as assessing projects we determined we would not pursue in the foreseeable future given the then current environment. As a result, in the fourth quarter of 2015, we recorded pre-tax asset impairment charges of $4.9 billion on certain proved and unproved properties throughout our asset base. Approximately $100 million of the charge was related to unproved properties.

DEBT

12 Months Ended

Dec. 31, 2017

DEBT

DEBT

NOTE 5 DEBT

As of December 31, 2017 and 2016, our debt consisted of the following credit agreements, second lien notes and senior notes:

	Outstanding Principal (in millions)				Interest Rate	Maturity	Security
	2017		2016
Credit Agreements
2014 Revolving Credit Facility(a)	$	363	$	847	LIBOR plus 3.25%-4.00% ABR plus 2.25%-3.00%	June 30, 2021	Shared First-Priority Lien
2014 Term Loan	—		650		LIBOR plus 3.25%-4.00% ABR plus 2.25%-3.00%	June 30, 2021	Shared First-Priority Lien
2017 Credit Agreement	1,300		—		LIBOR plus 4.75% ABR plus 3.75%	December 31, 2022(b)	Shared First-Priority Lien
2016 Credit Agreement	1,000		1,000		LIBOR plus 10.375% ABR plus 9.375%	December 31, 2021	First-Priority Lien
Second Lien Notes
Second Lien Notes	2,250		2,250		8%	December 15, 2022	Second-Priority Lien
Senior Notes
5% Senior Notes due 2020	100		193		5%	January 15, 2020	Unsecured
5½% Senior Notes due 2021	100		135		5.5%	September 15, 2021	Unsecured
6% Senior Notes due 2024	193		193		6%	November 15, 2024	Unsecured

Total Debt - Principal Amount	5,306		5,268
Less Current Maturities of Long-Term Debt	—		(100)

Long-Term Debt - Principal Amount	$	5,306	$	5,168

(a)

Following the Ares JV transaction in February 2018, we have no outstanding principal balance on our 2014 Revolving Credit Facility. See Note 14 Subsequent Event for further information on the Ares JV.

(b)

The 2017 Credit Agreement is subject to a springing maturity of 91 days prior to the maturity of our 2016 Credit Agreement if more than $100 million is outstanding at that time.

At December 31, 2017, deferred gain and issuance costs were $287 million net, consisting of $415 million of deferred gains offset by $128 million of deferred issuance costs and original issue discounts. The December 31, 2016 deferred gain and issuance costs were $397 million net, consisting of $489 million of deferred gains offset by $92 million of deferred issuance costs and original issue discounts.

Credit Agreements

2014 Revolving Credit Facility

In September 2014, we entered into a Credit Agreement with JPMorgan Chase Bank, N.A, as administrative agent, and certain other lenders. This credit agreement currently consists of a $1 billion senior revolving loan facility (2014 Revolving Credit Facility), which we are permitted to increase by up to $50 million if we obtain additional commitments from new or existing lenders. Previously this credit agreement included a term loan facility (2014 Term Loan) that was repaid in full in November 2017.

As of December 31, 2017, we had approximately $489 million of available borrowing capacity, before taking into account a $150 million month-end minimum liquidity requirement. Our 2014 Revolving Credit Facility also includes a sub-limit of $400 million for the issuance of letters of credit. As of December 31, 2017 and 2016, we had letters of credit of approximately $148 million and $130 million, respectively. These letters of credit were issued to support ordinary course marketing, insurance, regulatory and other matters.

Security – As of December 31, 2017, the lenders had a shared first-priority lien on a substantial majority of our assets, including our Elk Hills power plant and midstream assets. Following the formation of the Ares JV in February 2018, the Elk Hills power plant and certain other midstream assets are no longer subject to the shared first-priority lien. See Note 14 Subsequent Event for further information on the Ares JV.

Interest Rate – We can elect to borrow at either a London Interbank Offered Rate (LIBOR) rate or an alternate base rate (ABR), in each case plus an applicable margin. The ABR is equal to the highest of (i) the federal funds effective rate plus 0.50%, (ii) the administrative agent’s prime rate and (iii) the one-month LIBOR rate plus 1.00%. The applicable margin is adjusted based on the borrowing base utilization percentage under the 2014 Revolving Credit Facility and will vary from (i) in the case of LIBOR loans, 3.25% to 4.00% and (ii) in the case of ABR loans, 2.25% to 3.00%. The unused portion of our commitments is subject to a commitment fee that ranges from 0.30% to 0.50% per annum. We also pay customary fees and expenses. Interest on ABR loans is payable quarterly in arrears. Interest on LIBOR loans is payable at the end of each LIBOR period, but not less than quarterly.

Maturity Date – Our 2014 Revolving Credit Facility matures on June 30, 2021. Previously this facility was subject to a springing maturity of 273 days prior to the maturity of each of our 2020 Notes or our 2021 Notes if more than $100 million of such notes were outstanding on such date. During the fourth quarter of 2017, we repurchased $65 million in principal amount of 2020 Notes and $35 million in principal amount of 2021 Notes which eliminated this springing maturity feature.

Amortization Payments – The 2014 Revolving Credit Facility does not include any obligation to make amortization payments. In November 2017, we paid the remaining balance of our 2014 Term Loan in the amount of $559 million. Prior to that, we made a $16 million prepayment on our 2014 Term Loan from the proceeds of non-core asset sales in February 2017. In 2016 and through the nine months ended September 30, 2017, we made scheduled quarterly payments of $25 million on our 2014 Term Loan for an aggregate amount of $175 million. In August 2016, we made a $250 million prepayment on our 2014 Term Loan from the proceeds of our 2016 Credit Agreement.

Borrowing Base – The borrowing base is redetermined each May 1 and November 1, and was mostly recently reaffirmed at $2.3 billion on November 1, 2017. The borrowing base is based upon a number of factors, including commodity prices and reserves, declines in which could cause our borrowing base to be reduced. Increases in our borrowing base require approval of at least 80% of our lenders while decreases or affirmations require a two-thirds approval, in each case as measured by relative commitment amount. We and the lenders (requiring a request from the lenders holding two-thirds of the commitments) each may request a special redetermination once in any period between three consecutive scheduled redeterminations. We will be permitted to have collateral released when both (i) our credit ratings are at least Baa3 from Moody’s and BBB- from S&P, in each case with a stable or better outlook, and (ii) certain permitted liens securing other debt are released.

Financial Covenants – As of December 31, 2017, our financial performance covenants included a monthly minimum liquidity requirement of not less than $150 million and the following:

Ratio	Components(a)	Required Levels	Tested
Maximum leverage ratio	Ratio of indebtedness under our 2014 Revolving Credit Facility to trailing four-quarter Adjusted EBITDAX	Not greater than 1.90 to 1.00 through 2019 Not greater than 1.50 to 1.00 after 2019	Quarterly
Minimum interest coverage ratio	Ratio of Adjusted EBITDAX to consolidated cash interest charges	Not less than 1.20 to 1.00	Quarterly
Minimum asset coverage ratio	Ratio of PV-10 to first lien indebtedness	Not less than 1.20 to 1.00	Quarterly

(a)

Refer to the terms of our credit agreements for more detailed descriptions of the components of our financial covenants.

Other Covenants – Our 2014 Revolving Credit Facility includes covenants that, among other things, restrict our ability to incur additional indebtedness, grant liens, make asset sales and investments, repay existing indebtedness, pay dividends to common stockholders, make subsidiary distributions and enter into transactions that would result in fundamental changes. Generally, these covenants include exceptions that allow us to pursue some of these activities in certain circumstances. In addition to these covenants, we must also apply cash on hand in excess of $150 million daily to repay amounts outstanding.

Except for dispositions to development JVs, we must generally apply all of the proceeds from the sale of assets included in our borrowing base to repay loans outstanding under our 2014 Revolving Credit Facility. With respect to the sale of non-borrowing base assets (other than the Elk Hills power plant), we must apply the net cash proceeds to repay outstanding loans as follows:

25% of such proceeds for all net cash proceeds received up to $500 million

50% of such proceeds for all net cash proceeds received between $500 million and $1 billion

75% of such proceeds for all net cash proceeds received in excess of $1 billion.

We are permitted to use the balance of the proceeds for general corporate purposes including acquisitions and to repurchase our Second Lien Notes and Senior Notes subject to certain conditions, including that any repurchase be at a 20% minimum discount to par, pro-forma compliance with our financial performance covenants and that we maintain minimum liquidity of $250 million following such repurchase.

Consistent with the terms of the 2014 Credit Facility, 50% of the proceeds of an Elk Hills power plant sale are required to be used to repay outstanding loans with the balance of the funds used as described above for non-borrowing base assets. In connection with the February 2018 Ares JV transaction, we used $297 million of the net proceeds to repay all of the then outstanding loans under our 2014 Revolving Credit Facility. See Note 14 Subsequent Event for further information on the Ares JV.

Prior Amendments – Our 2014 Revolving Credit Facility was most recently amended in November 2017. As part of that amendment, we repaid the $559 million balance of our 2014 Term Loan and modified the financial and other covenants of our 2014 Revolving Credit Facility.

2017 Credit Agreement

In November 2017, we entered into a $1.3 billion credit agreement with The Bank of New York Mellon Trust Company, N.A., as administrative agent, and certain other lenders (2017 Credit Agreement). The net proceeds were used to pay the $559 million remaining balance of our 2014 Term Loan, resulting in a loss on the early extinguishment of debt of $8 million, reduce the balance of our 2014 Revolving Credit Facility and pay accrued interest. The proceeds received were net of a $26 million original issue discount and $38 million in transaction costs. As of December 31, 2017, we had a $1.3 billion term loan outstanding under our 2017 Credit Agreement.

Security – Our 2017 Credit Agreement is secured by the same shared first-priority lien used to secure our 2014 Revolving Credit Facility.

Maturity Date – The loans mature on December 31, 2022, subject to a springing maturity of 91 days prior to the maturity of our 2016 Credit Agreement if more than $100 million is outstanding at that time. Previously these loans included a springing maturity of 91 days prior to the maturity of our 2020 Notes or our 2021 Notes if more than $100 million of such notes were outstanding on such date. During the fourth quarter of 2017, we repurchased $65 million in principal amount of 2020 Notes and $35 million in principal amount of 2021 Notes which eliminated the springing maturity feature in the 2017 Credit Agreement that was tied to those notes. Prepayment more than 90 days prior to maturity is subject to a 2% premium.

Financial and Other Covenants – We are required to maintain a first-lien asset coverage ratio of not less than 1.20 to 1.00 as of any June 30 and December 31. In addition, our 2017 Credit Agreement provides for customary covenants and events of default consistent with, or generally less restrictive than, the covenants in our 2014 Revolving Credit Facility, including limitations on additional indebtedness, liens, asset dispositions, investments and restricted payments and other negative covenants, in each case subject to certain limitations and exceptions.

2016 Credit Agreement

In August 2016, we entered into a $1 billion credit agreement with The Bank of New York Mellon Trust Company, N.A., as administrative agent, and certain other lenders (2016 Credit Agreement). The net proceeds from the 2016 Credit Agreement were used to (i) prepay $250 million of our 2014 Term Loan and (ii) reduce our 2014 Revolving Credit Facility by $740 million. The proceeds received were net of a $10 million original issue discount. As of December 31, 2017, we had a $1 billion term loan outstanding under our 2016 Credit Agreement.

Security – Our 2016 Credit Agreement is secured by a first-priority lien on a substantial majority of our assets but is second in collateral recovery to our 2014 Revolving Credit Facility and 2017 Credit Agreement.

Maturity Date – The loans mature on December 31, 2021. Previously these loans included a springing maturity of 91 days prior to the maturity of our 2020 Notes or our 2021 Notes if more than $100 million of such notes were outstanding on such date. During the fourth quarter of 2017, we repurchased $65 million in principal amount of 2020 Notes and $35 million in principal amount of 2021 Notes which eliminated the springing maturity feature in the 2016 Credit Agreement that was tied to those notes. Prepayment is subject to a variable make-whole amount prior to the fourth anniversary. Following the fourth anniversary, we may redeem at par.

Financial and Other Covenants – We are required to maintain a first–lien asset coverage ratio of not less than 1.20 to 1.00 as of any June 30 and December 31. Our 2016 Credit Agreement also includes other covenants that are substantially similar to our 2017 Credit Agreement.

Second Lien Notes

In December 2015, we issued $2.25 billion in aggregate principal amount of 8% senior secured second-lien notes due December 15, 2022 (Second Lien Notes). The Second Lien Notes were issued in exchange for $2.8 billion of our then outstanding Senior Notes. We recorded a deferred gain of approximately $560 million on the debt exchange, which is being amortized using the effective interest rate method over the term of our Second Lien Notes. We pay cash interest semiannually in arrears on June 15 and December 15.

Security – Our Second Lien Notes are secured on a junior-priority basis to the first-priority liens that secure the loans under our 2014 Revolving Credit Facility, 2017 Credit Agreement and 2016 Credit Agreement.

Financial and Other Covenants – The indenture includes covenants that, among other things, limit our ability to grant liens securing borrowed money (subject to certain exceptions) and restrict our ability to merge or consolidate with, or transfer all or substantially all of our assets to, another entity. The covenants are not, however, directly linked to measures of our financial performance. In addition, if we experience a “change of control triggering event” (as defined in the indenture), we will be required, unless we have exercised our right to redeem our Second Lien Notes, to offer to purchase our Second Lien Notes at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest. The indenture also restricts our ability to sell certain assets and to release collateral from liens securing our Second Lien Notes, unless the collateral is also released in compliance with our senior credit facilities.

Redemption – We may redeem our Second Lien Notes (i) prior to December 15, 2018, in whole or in part at a redemption price equal to 100% of the principal amount redeemed plus a make-whole amount and accrued and unpaid interest, (ii) between December 15, 2018 and 2020, in whole or in part at a fixed redemption price ranging from 104% to 102% of the principal amount redeemed plus accrued and unpaid interest and (iii) thereafter in whole or in part at a redemption price equal to 100% of the principal amount redeemed plus accrued and unpaid interest.

Senior Notes

In October 2014, we issued $5 billion in aggregate principal amount of our senior unsecured notes, including $1 billion of 5% notes due January 15, 2020 (2020 Notes), $1.75 billion of 5 ½% notes due September 15, 2021 (2021 Notes) and $2.25 billion of 6% notes due November 15, 2024 (2024 Notes and, collectively, Senior Notes). We used the net proceeds from the issuance of our Senior Notes to make a $4.95 billion cash distribution to Occidental in October 2014.

Repurchases and Exchanges – In 2015, we repurchased approximately $33 million in principal amount of our 2020 Notes for $13 million in cash. We also exchanged a substantial majority of our Senior Notes for our Second Lien Notes in December 2015 as described above. In 2016, we repurchased over $1.5 billion in principal amount of our outstanding Senior Notes, primarily using drawings of $750 million on our 2014 Revolving Credit Facility and cash from operations. We also exchanged approximately 3.4 million shares of our common stock for $100 million in aggregate principal amount of our Senior Notes. In the first quarter of 2017, we purchased $28 million in aggregate principal amount of our 2020 Notes for $24 million in cash, resulting in a $4 million pre-tax gain. As described above, in the fourth quarter of 2017, we also repurchased $65 million and $35 million in aggregate principal amount of our 2020 Notes and our 2021 Notes, respectively, for $92 million in cash, resulting in an $8 million pre-tax gain.

Financial and Other Covenants – The indenture includes covenants that, among other things, limits our ability to grant liens securing borrowed money subject to certain exceptions and restricts our ability to merge or consolidate with, or transfer all or substantially all of our assets to, another entity. The covenants are not, however, directly linked to measures of our financial performance. In addition, if we experience a “change of control triggering event” (as defined in the indenture), we will be required, unless we have exercised our right to redeem our Senior Notes, to offer to purchase our Senior Notes at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest.

Redemption – We may redeem our Senior Notes prior to their maturity dates, in whole or in part, at a redemption price equal to 100% of the principal amount redeemed plus accrued and unpaid interest and, generally, a make-whole amount.

Other

At December 31, 2017, we were in compliance with all financial and other debt covenants.

All obligations under our 2014 Revolving Credit Facility, 2017 Credit Agreement and 2016 Credit Agreement (collectively, Credit Facilities) as well as our Second Lien Notes are guaranteed both fully and unconditionally and jointly and severally by all of our material wholly owned subsidiaries.

The terms and conditions of all of our indebtedness are subject to additional qualifications and limitations that are set forth in the relevant governing documents.

Principal maturities of long-term debt outstanding at December 31, 2017 are as follows (in millions):

2018	$	—
2019	—
2020	100
2021	1,890
2022	3,123
Thereafter	193

Total	$	5,306

We estimate the fair value of fixed-rate debt, which is classified as Level 1, based on prices from known market transactions for our instruments. The estimated fair value of our debt at December 31, 2017 and 2016, including the fair value of the variable-rate portion, was approximately $4.8 billion and $4.9 billion, respectively, compared to a carrying value of approximately $5.3 billion in both years. A one-eighth percent change in the variable interest rates on the borrowings under our Credit Facilities on December 31, 2017 would result in a $3 million change in annual interest expense.

LEASE COMMITMENTS

12 Months Ended

Dec. 31, 2017

LEASE COMMITMENTS

LEASE COMMITMENTS

NOTE 6 LEASE COMMITMENTS

We have entered into various operating lease agreements, mainly for office space, office equipment and field equipment. We lease assets when leasing offers greater operating flexibility. Lease payments are generally expensed as part of production costs or general and administrative expenses. At December 31, 2017, future net minimum lease payments for noncancelable operating leases (excluding oil and natural gas and other mineral leases, utilities, taxes, insurance and maintenance expense) totaled:

	Amount
	(in millions)
2018	$	12
2019	11
2020	5
2021	4
2022	3
Thereafter	8

Total minimum lease payments	$	43

Rental expense for operating leases was $13 million in both 2017 and 2016 and $11 million in 2015. Minimum future lease payments and rental income from subleases was immaterial in 2017, 2016 and 2015.

LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES	12 Months Ended
LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES	Dec. 31, 2017
LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES
LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES	NOTE 7 LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES We, or certain of our subsidiaries, are involved, in the normal course of business, in lawsuits, environmental and other claims and other contingencies that seek, among other things, compensation for alleged personal injury, breach of contract, property damage or other losses, punitive damages, civil penalties, or injunctive or declaratory relief. We accrue reserves for currently outstanding lawsuits, claims and proceedings when it is probable that a liability has been incurred and the liability can be reasonably estimated. Reserve balances at December 31, 2017 and 2016 were not material to our balance sheets as of such dates. We also evaluate the amount of reasonably possible losses that we could incur as a result of these matters. We believe that reasonably possible losses that we could incur in excess of reserves accrued on our balance sheet would not be material to our consolidated financial position or results of operations. We have certain commitments under contracts, including purchase commitments for goods and services used in the normal course of business including pipeline capacity and rig termination costs. At December 31, 2017, total purchase obligations on a discounted basis were approximately $215 million, which included approximately $129 million, $33 million, $18 million, $4 million and $3 million that will be paid in 2018, 2019, 2020, 2021 and 2022, respectively. Included in these obligations is a commitment to invest approximately $84 million in evaluation and development activities for one of our oil and gas properties prior to the end of 2018. Any deficiency in meeting this capital investment obligation would need to be paid in cash. Our 2018 capital program includes development plans for these properties, and we expect to fulfill the minimum investment requirement. We, our subsidiaries, or both, have indemnified various parties against specific liabilities those parties might incur in the future in connection with the Spin-off, purchases and other transactions that they have entered into with us. These indemnities include indemnities made to Occidental against certain tax-related liabilities that may be incurred by Occidental relating to the Spin-off and liabilities related to operation of our business while it was still owned by Occidental. As of December 31, 2017, we are not aware of material indemnity claims pending or threatened against us. We are currently under examination by the Internal Revenue Service for our U.S. federal income tax returns for the post-Spin-off period in 2014 and calendar year 2015. No significant issues have been raised to date. The U.S. federal income tax return for 2016 and the California franchise tax returns for 2014 through 2016 remain subject to examination.

DERIVATIVES

12 Months Ended

Dec. 31, 2017

DERIVATIVES

DERIVATIVES

NOTE 8 DERIVATIVES

We maintain a commodity hedging program to help protect our cash flows, margins and capital program from the volatility of commodity prices and to improve our ability to comply with the covenants under our credit facilities. We will continue to be strategic and opportunistic in implementing our hedging program as market conditions permit.

Derivatives are carried at fair value and on a net basis when a legal right of offset exists with the same counterparty. We apply hedge accounting when transactions meet specified criteria for cash-flow hedge treatment and management elects and documents such treatment. Otherwise, we recognize any fair value gains or losses, over the remaining term of the hedge instrument, in earnings in the current period.

As of December 31, 2017, we did not have any derivatives designated as hedges. Unless otherwise indicated, we use the term “hedge” to describe derivative instruments that are designed to achieve our hedging program goals, even though they are not necessarily accounted for as cash-flow or fair-value hedges. As part of our hedging program, we entered into a number of derivative transactions that resulted in the following Brent-based crude oil contracts as of December 31, 2017:

	Q1 2018		Q2 2018		Q3 2018		Q4 2018		FY 2019		FY 2020
Sold Calls:
Barrels per day	10,400		10,400		16,100		16,100		1,000		500
Weighted-average price per barrel	$	59.38	$	59.37	$	58.91	$	58.91	$	60.00	$	60.00

Purchased Puts:
Barrels per day	1,200		1,200		1,100		1,100		1,000		500
Weighted-average price per barrel	$	45.82	$	45.83	$	45.83	$	45.85	$	45.84	$	43.91

Sold Puts:
Barrels per day	29,000		29,000		19,000		19,000		—		—
Weighted-average price per barrel	$	45.00	$	45.00	$	45.00	$	45.00	$	—	$	—

Swaps:
Barrels per day	38,300		34,000 (1)		19,000 (2)		19,000 (2)		—		—
Weighted-average price per barrel	$	60.03	$	60.00	$	60.13	$	60.13	$	—	$	—

Note:Additional hedges for 2018 and 2019 were put in place after December 31, 2017 that are not included in the table above.

(1)

Certain of our counterparties have options to increase swap volumes by up to 19,000 barrels per day at a weighted-average price of $60.00 for the second quarter of 2018.

(2)

Certain of our counterparties have options to increase swap volumes by up to 29,000 barrels per day at a weighted-average price of $60.50 for the second half of 2018.

As of December 31, 2017, a small portion of the crude oil derivatives in the table above were entered into by our BSP joint venture entity, including all of the 2019 and 2020 positions. This joint venture also entered into natural gas swaps for insignificant volumes for the period of February 2018 to July 2020.

The outcomes of the derivative positions are as follows:

Sold calls – we make settlement payments for prices above the indicated weighted-average price per barrel.

Purchased calls – we receive settlement payments for prices above the indicated weighted-average price per barrel.

Purchased puts – we receive settlement payments for prices below the indicated weighted-average price per barrel.

Sold puts – we make settlement payments for prices below the indicated weighted-average price per barrel.

From time to time, we may use combinations of these positions to increase the efficacy of our hedging program.

For the years ended December 31, 2017, 2016 and 2015, we recognized non-cash derivative (losses) gains of approximately $(83) million, $(283) million and $52 million, respectively, from marking these contracts to market, which were included in revenues.

We did not have any cash-flow hedges in 2017 and 2016. The after-tax gains and losses recognized in, and reclassified to income from accumulated other comprehensive income (AOCI), for derivative instruments classified as cash-flow hedges for the year ended December 31, 2015, and the ending AOCI balances for each period were not material. The amount of the ineffective portion of cash-flow hedges was immaterial for the year ended December 31, 2015.

We had no fair-value hedges as of and during the years ended December 31, 2017, 2016 and 2015.

Fair Value of Derivatives

Our commodity derivatives are measured at fair value using industry-standard models with various inputs, including quoted forward prices, and are all classified as Level 2 in the required fair value hierarchy for the periods presented. The following table presents the fair values (at gross and net) of our outstanding derivatives as of December 31, 2017 and 2016 (in millions):

	December 31, 2017
	Balance Sheet Classification	Gross Amounts Recognized at Fair Value		Gross Amounts Offset in the Balance Sheet		Net Fair Value Presented in the Balance Sheet
Assets
Commodity Contracts	Other current assets	$	39	$	(16)	$	23
Commodity Contracts	Other assets	1		—		1

Liabilities
Commodity Contracts	Accrued liabilities	(170)		16		(154)
Commodity Contracts	Other long-term liabilities	(3)		—		(3)

Total derivatives		$	(133)	$	—	$	(133)

	December 31, 2016
	Balance Sheet Classification	Gross Amounts Recognized at Fair Value		Gross Amounts Offset in the Balance Sheet		Net Fair Value Presented in the Balance Sheet
Assets
Commodity Contracts	Other current assets	$	88	$	(49)	$	39
Commodity Contracts	Other assets	25		(6)		19

Liabilities
Commodity Contracts	Accrued liabilities	(152)		49		(103)
Commodity Contracts	Other long-term liabilities	(58)		6		(52)

Total derivatives		$	(97)	$	—	$	(97)

Counterparty Credit Risk

Our credit risk relates primarily to trade receivables and derivative financial instruments. Credit exposure for each customer is monitored for outstanding balances and current activity. For derivative swaps and options entered into as part of our hedging program, we are subject to counterparty credit risk to the extent the counterparty is unable to meet its settlement commitments. We actively manage this credit risk by selecting counterparties that we believe to be financially strong and continuing to monitor their financial health. Concentration of credit risk is regularly reviewed to ensure that counterparty credit risk is adequately diversified.

As of December 31, 2017, the substantial majority of the credit exposures related to our derivative financial instruments was with investment-grade counterparties. We believe exposure to credit-related losses at December 31, 2017 was not material and losses associated with credit risk have been insignificant for all years presented.

- Definition

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624171-113959

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64837297&loc=d3e41620-113959

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624163-113959

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5579240-113959

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4D
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624177-113959

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=35736893&loc=d3e80784-113994

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=64837297&loc=d3e41641-113959

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5579245-113959

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4H
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624258-113959

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=35736893&loc=d3e80748-113994

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4K
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5708775-113959

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4J
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5708773-113959

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5618551-113959

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5580258-113959

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4E
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624181-113959

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 25
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=64837297&loc=d3e41638-113959

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(n))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

+ Details

INCOME TAXES

12 Months Ended

Dec. 31, 2017

INCOME TAXES

INCOME TAXES

NOTE 9 INCOME TAXES

Income (loss) before income taxes, which is all domestic, was $(262) million, $201 million and $(5,476) million for the years ended December 31, 2017, 2016 and 2015, respectively. The provision (benefit) for federal, state and local income taxes consisted of the following:

For the years ended December 31,	United States Federal		State and Local		Total
	(in millions)
2017
Current	$	—	$	—	$	—
Deferred	—		—		—

	$	—	$	—	$	—

2016
Current	$	—	$	—	$	—
Deferred	(66)		(12)		(78)

	$	(66)	$	(12)	$	(78)

2015
Current	$	255	$	81	$	336
Deferred	(1,961)		(297)		(2,258)

	$	(1,706)	$	(216)	$	(1,922)

Total income tax expense (benefit) differs from the amounts computed by applying the U.S. federal income tax rate to pre-tax income (loss) as follows:

	For the years ended December 31,
	2017	2016	2015
U.S. federal statutory tax rate	(35)%	35 %	(35)%
State income taxes, net	(6)	6	(5)
Decrease in U.S. federal corporate tax rate	91	—	—
Changes in tax attributes, net	(19)	—	—
Cancellation of debt income, net	—	(275)	—
Stock-based compensation, net	1	2	—
Valuation allowance, net	(33)	192	5
Other	1	1	—

Effective tax rate	— %	(39)%	(35)%

The Tax Cuts and Jobs Act (the Tax Act) was enacted on December 22, 2017. The Tax Act includes significant changes to U.S. income tax and related laws. In addition to the reduction in the top corporate tax rate, other provisions of the Tax Act include, but are not limited to, fully expensing the cost of acquired qualified property, subject to certain phase-out provisions, and limiting the interest expense deduction. We evaluated the provisions of the Tax Act, most of which are effective January 1, 2018, and determined that because of our tax-loss and valuation allowance position there will be no net current impact on our financial statements. Over the long term, the provisions are expected to be favorable to us when we begin to generate taxable income and should result in the deferral of cash tax payments from when they otherwise would have been due.

During 2017, our effective tax rate differed from the statutory tax rate of 35% due to (1) a 91% decrease related to a one-time adjustment of $240 million for the remeasurement of our net deferred tax asset as a result of the Tax Act, (2) a 19% increase related to enhanced oil recovery (EOR) tax credits, marginal well tax credits and other items and (3) a 6% increase related to state taxes. All of these items resulted in a corresponding change to our valuation allowance increasing our effective tax rate by 33%, because it is not more-likely-than-not that our net deferred tax asset is realizable.

In the first quarter of 2016, we reduced our valuation allowance due to our evaluation of our assets and liabilities at the time of our 2015 debt exchange, which generated $1.4 billion of cancellation of debt income (CODI) for tax purposes. Our evaluation indicated that our liabilities exceeded the value of our assets, both calculated in accordance with tax rules, enabling us to move the liability related to CODI to deferred tax liabilities. The resulting increase of our deferred tax liabilities that could be offset against deferred tax assets caused an $82 million reduction in the valuation allowance and resulted in a benefit of $78 million, net of $4 million in state tax. During the rest of 2016, we increased the valuation allowance by $480 million, which resulted in a net increase of the allowance by $398 million for the year. The net change in the valuation allowance had the effect of increasing our provision by $384 million, after $14 million in state taxes, which increased our effective tax rate by 192%. We concluded, on a more-likely-than-not basis, that we could not realize any of the deferred tax assets generated during 2016.

Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of existing deferred tax assets. A significant piece of evidence evaluated is a history of operating losses. Such evidence limits our ability to consider other evidence such as projections for growth. As of December 31, 2017, we concluded that we could not realize, on a more-likely-than-not basis, any of our deferred tax assets and there is not sufficient evidence to support the reversal of all or any portion of this allowance. Given our recent and anticipated future earnings trends, we do not believe any of the valuation allowance will be released within the next 12 months. The amount of the deferred tax assets considered realizable could however be adjusted if estimates or amounts of deferred tax liabilities change.

Cancellation of debt income

As a result of our 2015, 2016 and 2017 debt transactions and amendments, we generated CODI of $1.4 billion, $1.3 billion and $13 million, respectively ($2.7 billion in the aggregate), for both U.S. federal and California state tax purposes. These respective amounts were excluded from taxable income because we determined, in 2016, that our liabilities exceeded the value of our assets for tax purposes immediately prior to each of the deleveraging transactions. In exchange for this exclusion, tax rules require us to reduce the tax basis of our assets. Accordingly, we have reduced our net operating losses and the basis of property, plant and equipment by $1.2 billion for U.S. federal tax purposes and $1.9 billion for California tax purposes. We were not required to make any further reductions in those assets because, beyond this point, our liabilities would have exceeded the tax basis of our assets. Accordingly, any tax liability attributable to the remaining approximately $1.5 billion of federal and $800 million of California CODI was relieved without any future tax liability, which reduced our effective rate by 275%.

The tax effects of temporary differences resulting in deferred income taxes at December 31, 2017 and 2016 were as follows:

	2017				2016
	Deferred Tax Assets		Deferred Tax Liabilities		Deferred Tax Assets		Deferred Tax Liabilities
	(in millions)
Debt	$	324	$	—	$	693	$	—
Property, plant and equipment differences	33		(261)		60		(335)
Postretirement benefit accruals	33		—		45		—
Deferred compensation and benefits	53		—		74		—
Asset retirement obligations	126		—		183		—
Federal effect of state income taxes	—		—		—		—
Net operating loss carryforwards and credits	417		—		61		—
All other	22		(41)		39		(40)

Subtotal	1,008		(302)		1,155		(375)
Valuation allowance	(706)		—		(780)		—

Total net deferred taxes	$	302	$	(302)	$	375	$	(375)

Prior to the Spin-off date, we were included in the Occidental income tax returns for all applicable years. Under the tax sharing agreement, Occidental controls tax examinations for the periods in which we were included in a consolidated or combined income tax return filed by Occidental. There were no amounts due to Occidental as of December 31, 2017 and 2016 under the tax sharing agreement.

Tax benefits are recognized only for tax positions that are more-likely-than-not to be sustained upon examination by tax authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely to be realized upon settlement. A liability for unrecognized tax benefits is recorded for any tax benefits claimed in the Company’s tax returns that do not meet these recognition and measurement standards. As of December 31, 2017 and 2016, we recorded a $25 million liability for tax positions taken in prior periods which has been classified as a deferred tax liability. This amount of unrecognized tax benefit, if recognized, would affect the effective tax rate positively. We believe there will not be significant increases or decreases to our unrecognized tax benefits within the next 12 months.

As of December 31, 2017, we had a U.S. federal net operating loss carryforward of $1.1 billion and $1.9 billion of net operating loss carryforwards in California. The U.S. federal net operating loss carryforward expires in 2037. The California net operating loss carryforwards began expiring in 2026. A portion of the California net operating loss carryforwards resulted from acquisitions in prior years and is subject to an annual limitation. Accordingly, no financial statement benefit has been recognized for $88 million of the California net operating loss carryforwards. The deduction and carryforward period for the U.S. federal net operating loss generated in 2017 are unchanged by the Tax Act.

During 2017, we generated $27 million of U.S federal credits primarily related to EOR projects and marginal well credits. We also generated an $8 million California credit related to EOR projects. The U.S. federal and California credits begin expiring in 2037.

STOCK COMPENSATION

12 Months Ended

Dec. 31, 2017

STOCK COMPENSATION

STOCK COMPENSATION

NOTE 10 STOCK COMPENSATION

General

Effective May 2016, our stockholders approved the California Resources Corporation Long-Term Incentive Plan (the Plan), which provides for the issuance of incentive and non-qualified stock options, restricted stock awards, restricted stock units, stock appreciation rights, stock bonuses, performance-based awards and other awards to officers, employees and non-employee directors. The maximum number of authorized shares of our common stock that may be issued pursuant to our long-term incentive plan is 4.7 million shares. As of December 31, 2017, 3.6 million shares were issued or reserved under the Plan and 1.1 million shares were available for future issuance of awards under the Plan. Our incentive compensation program is administered by the Compensation Committee of our Board of Directors.

Compensation expense for stock-based awards for the year ended December 31, 2017 was $29 million, of which $22 million was included in general and administrative expenses and $7 million was included in production costs in our consolidated statement of operations. Compensation expense for stock-based awards for the year ended December 31, 2016 was $34 million, of which $27 million was included in general and administrative expenses and $7 million was included in production costs in our consolidated statement of operations. Compensation expense for stock-based awards for the year ended December 31, 2015 was $37 million, of which $28 million was included in general and administrative expenses and $9 million was included in production costs in our consolidated statement of operations. For the years ended December 31, 2017 and 2016, we did not recognize any income tax benefit related to our stock-based compensation. For the year ended December 31, 2015, we recognized income tax expense of approximately $2 million. For the years ended December 31, 2017, 2016 and 2015, we made cash payments of $6 million, $5 million and $10 million for the cash-settled portion of our awards, respectively.

As of December 31, 2017, unrecognized compensation expense for all our unvested stock-based incentive awards, based on the year-end value of our common stock, was $40 million. This expense is expected to be recognized over a weighted-average period of two years.

Restricted Stock

Certain employees and non-employee directors are granted restricted stock units (RSUs) or restricted stock awards (RSAs) which are in the form of, or equivalent in value to, actual shares of our common stock. Restricted stock is service-based and, depending on the terms of the grants, is settled in cash or stock at the time of vesting. The service-based awards vest ratably over three years or at the end of three years for employees and one year for directors following the date of grant. Our RSUs and RSAs have nonforfeitable dividend rights, and any dividends or dividend equivalents declared during the vesting period are paid as declared.

For cash- and stock-settled RSUs and RSAs, compensation value is initially measured on the grant date using the quoted market price of our common stock. Compensation expense for cash-settled RSUs is adjusted on a quarterly basis for the cumulative change in the value of the underlying stock. Compensation expense for the stock-settled RSUs and RSAs is recognized on a straight-line basis over the requisite service periods, adjusted for actual forfeitures.

The following summarizes our restricted stock activity for the year ended December 31, 2017:

	Stock-Settled			Cash-Settled
	Number of Awards and Units (in thousands)	Weighted- Average Grant- Date Fair Value		Number of Units (in thousands)
Unvested at January 1	682	$	20.90	1,580
Granted	718	$	16.20	1,184
Vested	(337)	$	25.97	(597)
Forfeited	(28)	$	18.41	(101)

Unvested at December 31	1,035	$	16.04	2,066

Note: During 2017 and 2016 , our directors were granted stock-settled RSUs representing approximately 98,000 shares and 77,000 shares, respectively.

Performance Stock Unit Awards

Our performance stock units (PSUs) granted prior to 2015 are RSAs with a performance target based on cumulative earnings before interest, taxes and depreciation. The units vest at the later of the three years following the grant date or when the performance target is met, if prior to seven years following the grant date. Fair value was based on Occidental’s stock price on the grant date divided by a conversion factor used at the time of the Spin-off. The resulting fair value was recognized as compensation expense on a straight-line basis over the three-year service period, adjusted for actual forfeitures. These awards have nonforfeitable dividend rights with any dividends or dividend equivalents declared during the vesting period paid as declared.

The PSUs granted in 2015 are RSUs based 50% on achievement of specified Value Creation Index (VCI) results and 50% on total stockholder return (TSR) relative to a selected peer group of companies over specified multi-year performance periods, with payouts ranging from 0% to 200% of the target award. The awards were originally granted as cash-settled awards accounted for as liability awards until they were modified in May 2016 and became stock-settled awards accounted for as equity awards from that point forward. Less than 50 people were impacted by this modification, which resulted in no incremental compensation cost.

Prior to the modification, the fair value of the VCI-based portions of the PSUs was determined on the grant date based on an estimated performance achievement at the target level. Additionally, the fair value of the TSR-based portions of the PSUs was determined on the grant date using a Monte Carlo simulation model based on applicable assumptions. The volatility is derived from corresponding peer group companies, which we used in the absence of adequate stock price history for our common stock at the date of grant. The expected life is based on the vesting period of the award. The risk-free rate is the implied yield available on zero-coupon U.S. Treasury notes at the time of grant and subsequent measurement periods with a remaining term equal to the remaining term of the awards. The dividend yield is the expected annual dividend yield over the term, expressed as a percentage of the stock price on the valuation date. The fair values were then recognized on a straight-line basis over the requisite service period, adjusted for actual forfeitures. Compensation expense was adjusted quarterly, on a cumulative basis, for any changes in the number of share equivalents expected to be paid based on the relevant performance criteria.

On the modification date, the fair value of the PSUs was redetermined based on target-level VCI and TSR Monte Carlo results as of that date. The resulting fair value is being recognized as compensation expense on a straight-line basis over the remaining requisite service period, adjusted for actual forfeitures. Dividend equivalents, if any, declared during the vesting period are accumulated and paid upon certification for the number of vested shares.

The modification and grant date assumptions used in the Monte Carlo valuation for the TSR-based portion of the outstanding PSU awards are as follows:

	Modification Date			Grant Date
Risk-free interest rate	0.77		%	1.06		%
Dividend yield	—		%	0.95		%
Volatility factor	69.69		%	43.63		%
Expected life (years)	2.16			2.9
Fair value of underlying common stock	$	18.50		$	42.00

The following summarizes our PSU activity for the year ended December 31, 2017:

	Stock-Settled
	Number of Awards (in thousands)	Weighted- Average Grant- Date Fair Value
Unvested at January 1	459	$	44.34
Granted	—	$	—
Vested	(72)	$	73.70
Forfeited	(3)	$	18.50

Unvested at December 31	384	$	39.05

Stock Options

In 2014 and 2015, we granted stock options to certain executives under our long-term incentive plan. The options permit purchase of our common stock at exercise prices no less than the fair market value of the stock on the date the options were granted. The options have terms of seven years and vest ratably over three years, with one third of the granted shares becoming exercisable on each anniversary date following the date of grant, subject to certain restrictions including continued employment. No stock options were issued during 2017 and 2016.

The fair value of stock options is measured on the grant date using the Black-Scholes option valuation model and expensed on a straight-line basis over the vesting period. The model uses various assumptions, based on management’s estimates at the time of grant, which impact the calculation of fair value and ultimately the amount of expense recognized over the vesting period of the stock option award. The expected life of stock options is calculated based on the simplified method and represents the period of time that options granted are expected to be held prior to exercise. In the absence of adequate stock price history of our common stock at the time of grant, the volatility factor was based on the average volatilities of the stocks of a select group of peer companies. The risk-free interest rate is the implied yield available on zero-coupon United States (U.S.) Treasury notes at the grant date with a remaining term approximating the expected life. The dividend yield is the expected annual dividend yield over the expected life, expressed as a percentage of the stock price on the grant date. Of the required assumptions, the expected life of the stock option award and the expected volatility have the most significant impact on the fair value calculation.

The grant date assumptions used in the Black-Scholes valuation for options granted during 2015 and 2014 were as follows:

	2015			2014
Exercise price per share	$	42.00		$	81.10
Expected life (in years)	4.5			4.5
Expected volatility	44.7		%	35.4		%
Risk-free interest rate	1.56		%	1.40		%
Dividend yield	0.95		%	0.50		%
Grant date fair value of stock option awards granted	$	15.00		$	19.80

The following table summarizes our option activity during the year ended December 31, 2017:

	Options (000’s)	Weighted- Average Exercise Price		Weighted- Average Grant-Date Fair Value		Aggregate Intrinsic Value
Beginning balance, January 1	1,109	$	69.89	$	18.42	$	—
Granted	—	$	—	$	—	$	—
Exercised	—	$	—	$	—	$	—
Forfeited	(4)	$	54.12	$	16.49	$	—

Ending balance, December 31	1,105	$	69.95	$	18.43	$	—

Exercisable at December 31	1,013	$	72.47	$	18.74	$	—

Employee Stock Purchase Plan

Effective January 1, 2015, we adopted the California Resources Corporation 2014 Employee Stock Purchase Plan (ESPP), which was subsequently amended in May 2016. The ESPP provides our employees the ability to purchase shares of our common stock at a price equal to 85% of the closing price of a share of our common stock as of the first or last day of each offering period (a fiscal quarter), whichever amount is less.

The maximum number of shares of our common stock that may be issued pursuant to the ESPP is subject to certain annual limits and has a cumulative limit of one million shares, subject to adjustment pursuant to the terms of the ESPP. For the year ended December 31, 2017, we issued approximately 0.2 million shares of common stock in connection with our ESPP.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details

EQUITY

12 Months Ended

Dec. 31, 2017

EQUITY

EQUITY

NOTE 11 EQUITY

The following is a summary of common stock issuances on a post-split basis:

		Common Stock
		(in thousands)
Balance, December 31, 2015		38,818
Issued		3,725

Balance, December 31, 2016		42,543
Issued		359

Balance, December 31, 2017		42,902

At December 31, 2017 and 2016, we had 200 million authorized shares of common stock and 20 million authorized shares of preferred stock, both with a $0.01 par value per share, and no outstanding shares of preferred stock on either date.

Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (loss) consisted of pension and post-retirement losses of $23 million and $14 million, at December 31, 2017 and 2016, respectively.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB Topic 4.E)
-URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74567-122707

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(29))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(31))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB Topic 4.C)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187143-122770

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(30))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(d))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

+ Details

EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2017

EARNINGS PER SHARE

EARNINGS PER SHARE

NOTE 12EARNINGS PER SHARE

The following table presents the calculation of basic and diluted EPS for the years ended December 31:

	2017		2016		2015
	(in millions, except per-share amounts)
Basic EPS calculation
Net (loss) income	$	(262)	$	279	$	(3,554)
Less: net income attributable to noncontrolling interest	(4)		—		—

Net (loss) income attributable to common stock	(266)		279		(3,554)
Less: net income allocated to participating securities	—		(6)		—

Net (loss) income available to common stockholders	$	(266)	$	273	$	(3,554)

Weighted-average common shares outstanding - basic	42.5		40.4		38.3

Basic EPS	$	(6.26)	$	6.76	$	(92.79)


Diluted EPS calculation
Net income (loss)	$	(262)	$	279	$	(3,554)
Less: net income attributable to noncontrolling interest	(4)		—		—

Net (loss) income attributable to common stock	(266)		279		(3,554)
Less: net income allocated to participating securities	—		(6)		—

Net (loss) income available to common stockholders	$	(266)	$	273	$	(3,554)

Weighted-average common shares outstanding - basic	42.5		40.4		38.3
Dilutive effect of potentially dilutive securities	—		—		—

Weighted-average common shares outstanding - diluted	42.5		40.4		38.3

Diluted EPS	$	(6.26)	$	6.76	$	(92.79)

Weighted-average anti-dilutive shares(a)	2.1		1.7		1.3

(a)

Anti-dilutive shares represent potentially dilutive securities that are excluded from the computation of diluted EPS due to the anti-dilutive effect due to our net loss and the anti-dilutive effect of out-of-the-money stock options.

PENSION AND POSTRETIREMENT BENEFIT PLANS

12 Months Ended

Dec. 31, 2017

PENSION AND POSTRETIREMENT BENEFIT PLANS

PENSION AND POSTRETIREMENT BENEFIT PLANS

NOTE 13 PENSION AND POSTRETIREMENT BENEFIT PLANS

We have various qualified and non-qualified benefit plans for our salaried and union and nonunion hourly employees.

Defined Contribution Plans

All of our employees are eligible to participate in our defined contribution retirement plan that provides for periodic contributions by us based on plan-specific criteria, such as eligible pay and employee contributions.

Certain salaried employees participate in supplemental plans that restore benefits lost due to governmental limitations on qualified plans. As of December 31, 2017 and 2016, we recognized $32 million and $31 million in other long-term liabilities for these supplemental plans.

We expensed $33 million in 2017, $32 million in 2016 and $39 million in 2015 under the provisions of these defined contribution and supplemental plans.

Defined Benefit Plans

Participation in defined benefit pension plans sponsored by us is limited. During 2017, approximately 70 employees accrued benefits under these plans, all of whom were union employees. Effective December 31, 2015, the plans were amended such that participants other than union employees no longer earn benefits for service after December 31, 2015.

Pension costs for the defined benefit pension plans, determined by independent actuarial valuations, are funded by us through payments to trust funds, which are administered by independent trustees.

Postretirement Benefit Plans

We provide postretirement medical and dental benefits for our eligible former employees and their dependents. The benefits are funded by us and required contributions from former employees as claims are paid during the year.

Obligations and Funded Status of our Defined Benefit Plans

The following tables show the amounts recognized in our balance sheets related to pension and postretirement benefit plans, as well as plans that we or our subsidiaries sponsor, and their funding status, obligations and plan asset fair values:

	As of December 31,
	2017		2016		2017		2016
	Pension Benefits				Postretirement Benefits
	(in millions)
Amounts recognized in the balance sheet:
Accrued liabilities	$	—	$	—	$	(3)	$	(2)
Other long-term liabilities	(19)		(26)		(90)		(75)

	$	(19)	$	(26)	$	(93)	$	(77)


Amounts recognized in accumulated other comprehensive (loss) income:	$	(13)	$	(16)	$	(10)	$	2

	As of December 31,
	2017		2016		2017		2016
	Pension Benefits				Postretirement Benefits
	(in millions)
Changes in the benefit obligation:
Benefit obligation—beginning of year	$	70	$	83	$	77	$	71
Service cost—benefits earned during the period	1		1		3		3
Interest cost on projected benefit obligation	2		3		4		3
Actuarial loss	7		7		11		1
Benefits paid	(15)		(24)		(2)		(1)

Benefit obligation—end of year	$	65	$	70	$	93	$	77


Changes in plan assets:
Fair value of plan assets—beginning of year	$	44	$	56	$	—	$	—
Actual return on plan assets	5		2		—		—
Employer contributions	12		10		2		1
Benefits paid	(15)		(24)		(2)		(1)

Fair value of plan assets—end of year	$	46	$	44	$	—	$	—

Unfunded status	$	(19)	$	(26)	$	(93)	$	(77)

The following table sets forth our defined benefit pension plans with accumulated benefit obligations in excess of plan assets for the years ended December 31:

	2017		2016
	(in millions)
Projected Benefit Obligation	$	65	$	70
Accumulated Benefit Obligation	$	62	$	67
Fair Value of Plan Assets	$	46	$	44

None of our defined benefit pension plans had plan assets in excess of accumulated benefit obligations. We do not expect any plan assets to be returned during 2018.

Components of Net Periodic Benefit Cost

The following tables set forth our pension and postretirement benefit costs and amounts recognized in other comprehensive income (before tax):

	For the years ended December 31,
	2017		2016		2015		2017		2016		2015
	Pension Benefits						Postretirement Benefits
	(in millions)
Net periodic benefit costs:
Service cost—benefits earned during the period	$	1	$	1	$	4	$	3	$	3	$	5
Interest cost on projected benefit obligation	2		3		4		4		3		3
Expected return on plan assets	(3)		(3)		(5)		—		—		—
Amortization of net actuarial loss	2		2		3		—		—		—
Settlement cost	5		8		18		—		—		—
Curtailment loss	—		—		—		—		—		5

Net periodic benefit cost	$	7	$	11	$	24	$	7	$	6	$	13

	For the years ended December 31,
	2017		2016		2015		2017		2016		2015
	Pension Benefits						Postretirement Benefits
	(in millions)
Amounts recognized in other comprehensive income (loss):
Net actuarial (loss) gain	$	(4)	$	(9)	$	(28)	$	(12)	$	—	$	9
Net prior service credit	—		—		12		—		—		—
Settlement cost	5		8		18		—		—		—
Amortization of net actuarial gain/loss	2		2		3		—		—		—

Total recognized in other comprehensive income (loss)	$	3	$	1	$	5	$	(12)	$	—	$	9

Settlement costs related to our pension plans were associated with early retirements. The curtailment loss in 2015 related to employee reductions.

The estimated net actuarial loss and prior service credit for the defined benefit pension plans that will be amortized from AOCI into net periodic benefit cost over the next fiscal year are $2 million and $0, respectively. We do not expect to have any estimated net actuarial loss or prior service cost for the defined benefit postretirement plans that will be amortized from AOCI into net periodic benefit cost over the next fiscal year.

The following table sets forth the weighted-average assumptions used to determine our benefit obligations and net periodic benefit cost:

	For the years ended December 31,
	2017	2016	2017	2016
	Pension Benefits		Postretirement Benefits
Benefit Obligation Assumptions:
Discount rate	3.53%	3.88%	3.87%	4.58	%
Rate of compensation increase	4.00%	4.00%	—	—
Net Periodic Benefit Cost Assumptions:
Discount rate	3.88%	3.99%	4.58%	4.81	%
Assumed long-term rate of return on assets	6.50%	6.50%	—	—
Rate of compensation increase	4.00%	4.00%	—	—

For pension plans and postretirement benefit plans that we or our subsidiaries sponsor, we based the discount rate on the Aon/Hewitt AA Above Median yield curve in both 2017 and 2016. The weighted-average rate of increase in future compensation levels is consistent with our past and anticipated future compensation increases for employees participating in retirement plans that determine benefits using compensation. The assumed long-term rate of return on assets is estimated with regard to current market factors but within the context of historical returns for the asset mix that exists at year end.

Effective in 2017, we adopted the Society of Actuaries MP-2017 Mortality Improvement Scale, which updated the Society of Actuaries Adjusted RP-2014 mortality assumptions that private defined benefit pension plans in the United States use in the actuarial valuations that determine a plan sponsor’s pension and postretirement obligations. In 2016, we utilized the Society of Actuaries Adjusted RP-2014 Mortality Table reflecting the MP-2016 Mortality Improvement Scale. At December 31, 2017, the changes in the mortality assumptions resulted in no significant change to the pension benefit obligations and a decrease of $1 million in the postretirement benefit obligations.

The postretirement benefit obligation was determined by application of the terms of medical and dental benefits, including the effect of established maximums on covered costs, together with relevant actuarial assumptions and healthcare cost trend rates projected at an assumed U.S. Consumer Price Index (CPI) increase of 1.97% as of December 31, 2017 and 2016. Under the terms of our postretirement plans, participants other than certain union employees pay for all medical cost increases in excess of increases in the CPI. For those union employees, we projected that, as of December 31, 2017, healthcare cost trend rates would decrease 0.25 percent per year from 7.00% in 2018 until they reach 6.00% in 2022, then decrease 0.50 percent per year until they reach 4.50% in 2025, and remain at 4.50% thereafter. A one-percent increase or a one-percent decrease in these assumed healthcare cost trend rates would result in an increase of $5 million or a reduction of $4 million, respectively, in the postretirement benefit obligation as of December 31, 2017. The annual service and interest costs would not be materially affected by these changes.

The actuarial assumptions used could change in the near term as a result of changes in expected future trends and other factors that, depending on the nature of the changes, could cause increases or decreases in the plan assets and liabilities.

Fair Value of Pension Plan Assets

We employ a total return investment approach that uses a diversified blend of equity and fixed-income investments to optimize the long-term return of plan assets at a prudent level of risk. Equity investments were diversified across U.S. and non-U.S. stocks, as well as differing styles and market capitalizations. Other asset classes, such as private equity and real estate, may have been used with the goals of enhancing long-term returns and improving portfolio diversification. In 2017 and 2016, the target allocation of plan assets was 65% equity securities and 35% debt securities. Investment performance was measured and monitored on an ongoing basis through quarterly investment portfolio and manager guideline compliance reviews, annual liability measurements and periodic studies.

The fair values of our pension plan assets by asset category are as follows:

	Fair Value Measurements at December 31, 2017 Using
	Level 1		Level 2		Level 3		Total
	(in millions)
Asset Class:
Cash equivalents	$	3	$	—	$	—	$	3
Commingled funds:
Fixed income	—		7		—		7
U.S. equity	—		9		—		9
International equity	—		5		—		5
Mutual funds:
Bond funds	6		—		—		6
Blend funds	3		—		—		3
Value funds	3		—		—		3
Growth funds	3		—		—		3
Guaranteed deposit account	—		—		7		7

Total pension plan assets	$	18	$	21	$	7	$	46

	Fair Value Measurements at December 31, 2016 Using
	Level 1		Level 2		Level 3		Total
	(in millions)
Asset Class:
Cash equivalents	$	3	$	—	$	—	$	3
Commingled funds:
Fixed income	—		9		—		9
U.S. equity	—		10		—		10
International equity	—		6		—		6
Mutual funds:
Bond funds	4		—		—		4
Blend funds	2		—		—		2
Value funds	2		—		—		2
Growth funds	2		—		—		2
Guaranteed deposit account	—		—		6		6

Total pension plan assets	$	13	$	25	$	6	$	44

The activity during the years ended December 31, 2017 and 2016, for the assets using Level 3 fair value measurements was insignificant.

Expected Cash Flows

In 2018, we plan to contribute $3 million to our postretirement benefit plans and at least our minimum funding requirement of $4 million to our defined benefit pension plans. Estimated future undiscounted benefit payments, which reflect expected future service, as appropriate, are as follows:

For the years ended December 31,	Pension Benefits		Postretirement Benefits
	(in millions)
2018	$	21	$	3
2019	$	5	$	3
2020	$	5	$	4
2021	$	5	$	4
2022	$	4	$	4
2023 - 2027	$	16	$	23

SUBSEQUENT EVENT	12 Months Ended
SUBSEQUENT EVENT	Dec. 31, 2017
SUBSEQUENT EVENT
SUBSEQUENT EVENT	NOTE 14 SUBSEQUENT EVENT In February 2018, we entered into a midstream JV with ECR Corporate Holdings L.P. (ECR), a portfolio company of Ares Management L.P. (Ares). This JV (Ares JV) holds the Elk Hills power plant, the 550 megawatt natural gas fired power plant, and the 200 million cubic foot per day cryogenic gas processing plant. Through one of our wholly owned subsidiaries, we hold 50% of the Class A common interest and 95.25% of the Class C common interest in the Ares JV. ECR holds 50% of the Class A common interest, 100% of the Class B preferred interest and 4.75% of the Class C common interest in the Ares JV. At closing, in accordance with the terms of our credit agreement, we used $297 million of the $747 million in net proceeds to pay off the then outstanding balance of our 2014 Revolving Credit Facility. We will consolidate the Ares JV in our financial statements and reflect the Class A common interest and Class B preferred interest as noncontrolling interest in mezzanine equity and the Class C common interest in equity on our balance sheet. Net income allocable to ECR will be reported as income attributable to noncontrolling interest. Distributions will be paid to the preferred interest on a priority basis with the remaining cash distributed pro-rata to the common interests. In February 2018 and in connection with the formation of the Ares JV, an Ares-led investor group purchased approximately 2.3 million shares of our common stock in a private placement for an aggregate purchase price of $50 million.

CONDENSED CONSOLIDATING FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2017

CONDENSED CONSOLIDATING FINANCIAL INFORMATION

CONDENSED CONSOLIDATING FINANCIAL INFORMATION

NOTE 15 CONDENSED CONSOLIDATING FINANCIAL INFORMATION

Our Credit Facilities and Second Lien Notes are guaranteed both fully and unconditionally and jointly and severally by our material wholly owned subsidiaries (Guarantor Subsidiaries). Certain of our subsidiaries are not required to guarantee our Credit Facilities and Second Lien Notes (Non-Guarantor Subsidiaries) either because they hold assets that are less than 1% of our total consolidated assets or because they are not deemed a “subsidiary” under the applicable financing agreement. The following condensed consolidating balance sheets at December 31, 2017 and 2016, condensed consolidating statements of operations and statements of cash flows for the years ended December 31, 2017, 2016 and 2015 reflect the condensed consolidating financial information of our parent company, CRC (Parent), our combined Guarantor Subsidiaries, our combined Non-Guarantor Subsidiaries and the consolidation and elimination entries necessary to arrive at the information for CRC on a consolidated basis.

The financial information may not necessarily be indicative of results of operations, cash flows or financial position had the Guarantor Subsidiaries operated as independent entities.

Condensed Consolidating Balance Sheets

	Parent		Combined Guarantor Subsidiaries		Combined Non- Guarantor Subsidiaries		Eliminations		Consolidated
As of December 31, 2017	(in millions)
Total current assets	$	13	$	464	$	12	$	(6)	$	483
Total property, plant and equipment, net	24		5,580		92		—		5,696
Investments in consolidated subsidiaries	5,105		606		—		(5,711)		—
Other assets	—		27		1		—		28

TOTAL ASSETS	$	5,142	$	6,677	$	105	$	(5,717)	$	6,207


Total current liabilities	122		613		3		(6)		732
Long-term debt - principal amount	5,306		—		—		—		5,306
Deferred gain and issuance costs, net	287		—		—		—		287
Other long-term liabilities	154		445		3		—		602
Amounts due to (from) affiliates	87		(87)		—		—		—
Total equity	(814)		5,706		99		(5,711)		(720)

TOTAL LIABILITIES AND EQUITY	$	5,142	$	6,677	$	105	$	(5,717)	$	6,207


As of December 31, 2016
Total current assets	$	7	$	418	$	—	$	—	$	425
Total property, plant and equipment, net	25		5,856		4		—		5,885
Investments in consolidated subsidiaries	5,713		537		—		(6,250)		—
Other assets	—		44		—		—		44

TOTAL ASSETS	$	5,745	$	6,855	$	4	$	(6,250)	$	6,354


Total current liabilities	221		505		—		—		726
Long-term debt - principal amount	5,168		—		—		—		5,168
Deferred gain and issuance costs, net	397		—		—		—		397
Other long-term liabilities	132		487		1		—		620
Amounts due to (from) affiliates	384		(384)		—		—		—
Total equity	(557)		6,247		3		(6,250)		(557)

TOTAL LIABILITIES AND EQUITY	$	5,745	$	6,855	$	4	$	(6,250)	$	6,354

Condensed Consolidating Statements of Operations

	Parent		Combined Guarantor Subsidiaries		Combined Non- Guarantor Subsidiaries		Eliminations		Consolidated
For the year ended December 31, 2017	(in millions)
Total revenues and other	$	42	$	1,947	$	17	$	—	$	2,006
Total costs and other	230		1,700		13		—		1,943
Non-operating (loss) income	(349)		24		—		—		(325)
Income tax benefit	—		—		—		—		—

NET (LOSS) INCOME	(537)		271		4		—		(262)

Net income attributable to noncontrolling interest	—		—		(4)		—		(4)

NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCK	$	(537)	$	271	$	—	$	—	$	(266)


For the year ended December 31, 2016
Total revenues and other	$	—	$	1,543	$	4	$	—	$	1,547
Total costs and other	205		1,644		4		—		1,853
Non-operating income	475		32		—		—		507
Income tax benefit	78		—		—		—		78

NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCK	$	348	$	(69)	$	—	$	—	$	279


For the year ended December 31, 2015
Total revenues and other	$	—	$	2,400	$	3	$	—	$	2,403
Total costs and other	302		7,236		7		—		7,545
Non-operating (loss) income	(343)		9		—		—		(334)
Income tax benefit	1,922		—		—		—		1,922

NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCK	$	1,277	$	(4,827)	$	(4)	$	—	$	(3,554)

Condensed Consolidating Statements of Cash Flows

	Parent		Combined Guarantor Subsidiaries		Combined Non- Guarantor Subsidiaries		Eliminations		Consolidated
For the year ended December 31, 2017	(in millions)
Net cash (used) provided by operating activities	$	(481)	$	718	$	11	$	—	$	248
Net cash used in investing activities	(4)		(212)		(97)		—		(313)
Net cash provided (used) by financing activities	492		(510)		91		—		73

Increase (decrease) in cash and cash equivalents	7		(4)		5		—		8
Cash and cash equivalents—beginning of period	—		12		—		—		12

Cash and cash equivalents— end of period	$	7	$	8	$	5	$	—	$	20


For the year ended December 31, 2016
Net cash (used) provided by operating activities	$	(598)	$	727	$	1	$	—	$	130
Net cash used in investing activities	(1)		(60)		—		—		(61)
Net cash provided (used) by financing activities	599		(667)		(1)		—		(69)

Increase in cash and cash equivalents	—		—		—		—		—
Cash and cash equivalents—beginning of period	—		12		—		—		12

Cash and cash equivalents— end of period	$	—	$	12	$	—	$	—	$	12


For the year ended December 31, 2015
Net cash (used) provided by operating activities	$	(1,676)	$	2,086	$	(7)	$	—	$	403
Net cash used in investing activities	(24)		(733)		—		—		(757)
Net cash provided (used) by financing activities	1,700		(1,355)		7		—		352

Decrease in cash and cash equivalents	—		(2)		—		—		(2)
Cash and cash equivalents—beginning of period	—		14		—		—		14

Cash and cash equivalents— end of period	$	—	$	12	$	—	$	—	$	12

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

12 Months Ended

Dec. 31, 2017

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

(in millions)	Balance at Beginning of Period		Charged (Credited) to Costs and Expenses		Charged to Other Accounts		Deductions(a)		Balance at End of Period
2017
Deferred tax valuation allowance	$	780	$	(78)	$	4	$	—	$	706

Other asset valuation allowance	$	56	$	(12)	$	—	$	—	$	44

Environmental reserves	$	6	$	4	$	—	$	(4)	$	6


2016
Deferred tax valuation allowance	$	382	$	398	$	—	$	—	$	780

Other asset valuation allowance	$	68	$	(12)	$	—	$	—	$	56

Environmental reserves	$	7	$	—	$	—	$	(1)	$	6


2015
Deferred tax valuation allowance(b)	$	—	$	294	$	88	$	—	$	382

Other asset valuation allowance	$	10	$	58	$	—	$	—	$	68

Environmental reserves	$	8	$	—	$	—	$	(1)	$	7

(a)

Consists of payments.

(b)

Our 2015 deferred tax liabilities were net of $88 million, which represented the federal benefit for the state-related portion of the deferred tax valuation allowance.

THE SPIN-OFF, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER (Policies)

12 Months Ended

Dec. 31, 2017

THE SPIN-OFF, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER

Basis of Presentation

Risks and Uncertainties

Concentration of Customers

Property, Plant and Equipment

Asset Retirement Obligations

	For the years ended December 31,
	2017		2016
	(in millions)
Beginning balance	$	411	$	357
Liabilities incurred - capitalized to PP&E	2		2
Liabilities settled and paid	(9)		(10)
Accretion expense	25		22
Disposition and other - changes in PP&E	—		(17)
Revisions to estimated cash flows - changes in PP&E	(7)		57

Ending balance	$	422	$	411

Pension and Postretirement Benefit Plans

Fair Value Measurements

The carrying amounts of cash and other on-balance sheet financial instruments, other than fixed-rate debt, approximate fair value.

Revenue Recognition

Inventories

	2017		2016
	(in millions)
Materials and supplies	$	53	$	55
Finished goods	3		3

Total	$	56	$	58

Derivative Instruments

Stock-Based Incentive Plans

We have stockholder-approved stock-based incentive plans for certain employees and directors that are more fully described in Note 10 Stock Compensation.

Earnings Per Share

Other Loss Contingencies

Income Taxes

Production Sharing Type Contracts

THE SPIN-OFF, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER (Tables)

12 Months Ended

Dec. 31, 2017

THE SPIN-OFF, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER

Summary of the activity of the asset retirement obligation

	For the years ended December 31,
	2017		2016
	(in millions)
Beginning balance	$	411	$	357
Liabilities incurred - capitalized to PP&E	2		2
Liabilities settled and paid	(9)		(10)
Accretion expense	25		22
Disposition and other - changes in PP&E	—		(17)
Revisions to estimated cash flows - changes in PP&E	(7)		57

Ending balance	$	422	$	411

Schedule of Inventories

	2017		2016
	(in millions)
Materials and supplies	$	53	$	55
Finished goods	3		3

Total	$	56	$	58

Schedule of other current assets

	2017	2016
	(in millions)
Amounts due from joint interest partners	76	51
Derivative assets from commodities contracts	23	39
Assets held for sale	12	19
Prepaid expenses	19	14

Other current assets	130	123

Schedule of accrued liabilities

	2017	2016
	(in millions)
Derivative liabilities from commodities contracts	154	103
Greenhouse gas obligations	106	89
Accrued employee-related costs	86	91
Other	129	124

Accrued liabilities	475	407

PROPERTY, PLANT AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2017

PROPERTY, PLANT AND EQUIPMENT

Summary of the activity of capitalized exploratory well costs

	2017		2016		2015
	(in millions)
Balance - beginning of year	$	4	$	6	$	4
Additions to capitalized exploratory well costs pending the determination of proved reserves	4		1		16
Reclassification to property, plant and equipment based on the determination of proved reserves	(2)		—		(5)
Capitalized exploratory well costs charged to expense	(2)		(3)		(9)

Balance - end of year	$	4	$	4	$	6

DEBT (Tables)

12 Months Ended

Dec. 31, 2017

DEBT

Schedule of Debt

	Outstanding Principal (in millions)				Interest Rate	Maturity	Security
	2017		2016
Credit Agreements
2014 Revolving Credit Facility(a)	$	363	$	847	LIBOR plus 3.25%-4.00% ABR plus 2.25%-3.00%	June 30, 2021	Shared First-Priority Lien
2014 Term Loan	—		650		LIBOR plus 3.25%-4.00% ABR plus 2.25%-3.00%	June 30, 2021	Shared First-Priority Lien
2017 Credit Agreement	1,300		—		LIBOR plus 4.75% ABR plus 3.75%	December 31, 2022(b)	Shared First-Priority Lien
2016 Credit Agreement	1,000		1,000		LIBOR plus 10.375% ABR plus 9.375%	December 31, 2021	First-Priority Lien
Second Lien Notes
Second Lien Notes	2,250		2,250		8%	December 15, 2022	Second-Priority Lien
Senior Notes
5% Senior Notes due 2020	100		193		5%	January 15, 2020	Unsecured
5½% Senior Notes due 2021	100		135		5.5%	September 15, 2021	Unsecured
6% Senior Notes due 2024	193		193		6%	November 15, 2024	Unsecured

Total Debt - Principal Amount	5,306		5,268
Less Current Maturities of Long-Term Debt	—		(100)

Long-Term Debt - Principal Amount	$	5,306	$	5,168

(a)

(b)

The 2017 Credit Agreement is subject to a springing maturity of 91 days prior to the maturity of our 2016 Credit Agreement if more than $100 million is outstanding at that time.

Schedule of financial performance covenants

Ratio	Components(a)	Required Levels	Tested
Maximum leverage ratio	Ratio of indebtedness under our 2014 Revolving Credit Facility to trailing four-quarter Adjusted EBITDAX	Not greater than 1.90 to 1.00 through 2019 Not greater than 1.50 to 1.00 after 2019	Quarterly
Minimum interest coverage ratio	Ratio of Adjusted EBITDAX to consolidated cash interest charges	Not less than 1.20 to 1.00	Quarterly
Minimum asset coverage ratio	Ratio of PV-10 to first lien indebtedness	Not less than 1.20 to 1.00	Quarterly

(a)

Refer to the terms of our credit agreements for more detailed descriptions of the components of our financial covenants.

Principal maturities of debt outstanding

Principal maturities of long-term debt outstanding at December 31, 2017 are as follows (in millions):

2018	$	—
2019	—
2020	100
2021	1,890
2022	3,123
Thereafter	193

Total	$	5,306

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6479336&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=64930739&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

+ Details

LEASE COMMITMENTS (Tables)

12 Months Ended

Dec. 31, 2017

LEASE COMMITMENTS

Future net minimum lease payments for noncancelable operating leases

	Amount
	(in millions)
2018	$	12
2019	11
2020	5
2021	4
2022	3
Thereafter	8

Total minimum lease payments	$	43

DERIVATIVES (Tables)

12 Months Ended

Dec. 31, 2017

DERIVATIVES

Schedule of oil hedge positions

	Q1 2018		Q2 2018		Q3 2018		Q4 2018		FY 2019		FY 2020
Sold Calls:
Barrels per day	10,400		10,400		16,100		16,100		1,000		500
Weighted-average price per barrel	$	59.38	$	59.37	$	58.91	$	58.91	$	60.00	$	60.00

Purchased Puts:
Barrels per day	1,200		1,200		1,100		1,100		1,000		500
Weighted-average price per barrel	$	45.82	$	45.83	$	45.83	$	45.85	$	45.84	$	43.91

Sold Puts:
Barrels per day	29,000		29,000		19,000		19,000		—		—
Weighted-average price per barrel	$	45.00	$	45.00	$	45.00	$	45.00	$	—	$	—

Swaps:
Barrels per day	38,300		34,000 (1)		19,000 (2)		19,000 (2)		—		—
Weighted-average price per barrel	$	60.03	$	60.00	$	60.13	$	60.13	$	—	$	—

Note:Additional hedges for 2018 and 2019 were put in place after December 31, 2017 that are not included in the table above.

(1)

Certain of our counterparties have options to increase swap volumes by up to 19,000 barrels per day at a weighted-average price of $60.00 for the second quarter of 2018.

(2)

Certain of our counterparties have options to increase swap volumes by up to 29,000 barrels per day at a weighted-average price of $60.50 for the second half of 2018.

Schedule of fair value (at gross and net) of outstanding derivatives

The following table presents the fair values (at gross and net) of our outstanding derivatives as of December 31, 2017 and 2016 (in millions):

	December 31, 2017
	Balance Sheet Classification	Gross Amounts Recognized at Fair Value		Gross Amounts Offset in the Balance Sheet		Net Fair Value Presented in the Balance Sheet
Assets
Commodity Contracts	Other current assets	$	39	$	(16)	$	23
Commodity Contracts	Other assets	1		—		1

Liabilities
Commodity Contracts	Accrued liabilities	(170)		16		(154)
Commodity Contracts	Other long-term liabilities	(3)		—		(3)

Total derivatives		$	(133)	$	—	$	(133)

	December 31, 2016
	Balance Sheet Classification	Gross Amounts Recognized at Fair Value		Gross Amounts Offset in the Balance Sheet		Net Fair Value Presented in the Balance Sheet
Assets
Commodity Contracts	Other current assets	$	88	$	(49)	$	39
Commodity Contracts	Other assets	25		(6)		19

Liabilities
Commodity Contracts	Accrued liabilities	(152)		49		(103)
Commodity Contracts	Other long-term liabilities	(58)		6		(52)

Total derivatives		$	(97)	$	—	$	(97)

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=64837297&loc=d3e41641-113959

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624163-113959

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=64837297&loc=d3e41678-113959

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=64837297&loc=d3e41638-113959

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5580258-113959

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5579245-113959

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624171-113959

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5579240-113959

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64837297&loc=d3e41620-113959

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(n)(2))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

+ Details

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

INCOME TAXES

Provision (benefit) for federal, state and local income taxes

For the years ended December 31,	United States Federal		State and Local		Total
	(in millions)
2017
Current	$	—	$	—	$	—
Deferred	—		—		—

	$	—	$	—	$	—

2016
Current	$	—	$	—	$	—
Deferred	(66)		(12)		(78)

	$	(66)	$	(12)	$	(78)

2015
Current	$	255	$	81	$	336
Deferred	(1,961)		(297)		(2,258)

	$	(1,706)	$	(216)	$	(1,922)

Schedule of differences between the U.S. federal income tax rate and the Company's effective tax rate

	For the years ended December 31,
	2017	2016	2015
U.S. federal statutory tax rate	(35)%	35 %	(35)%
State income taxes, net	(6)	6	(5)
Decrease in U.S. federal corporate tax rate	91	—	—
Changes in tax attributes, net	(19)	—	—
Cancellation of debt income, net	—	(275)	—
Stock-based compensation, net	1	2	—
Valuation allowance, net	(33)	192	5
Other	1	1	—

Effective tax rate	— %	(39)%	(35)%

Tax effects of temporary differences resulting in deferred income taxes

	2017				2016
	Deferred Tax Assets		Deferred Tax Liabilities		Deferred Tax Assets		Deferred Tax Liabilities
	(in millions)
Debt	$	324	$	—	$	693	$	—
Property, plant and equipment differences	33		(261)		60		(335)
Postretirement benefit accruals	33		—		45		—
Deferred compensation and benefits	53		—		74		—
Asset retirement obligations	126		—		183		—
Federal effect of state income taxes	—		—		—		—
Net operating loss carryforwards and credits	417		—		61		—
All other	22		(41)		39		(40)

Subtotal	1,008		(302)		1,155		(375)
Valuation allowance	(706)		—		(780)		—

Total net deferred taxes	$	302	$	(302)	$	375	$	(375)

STOCK COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2017

STOCK COMPENSATION

Summary of changes in cash and stock-settled Restricted Stock Units (RSUs)

	Stock-Settled			Cash-Settled
	Number of Awards and Units (in thousands)	Weighted- Average Grant- Date Fair Value		Number of Units (in thousands)
Unvested at January 1	682	$	20.90	1,580
Granted	718	$	16.20	1,184
Vested	(337)	$	25.97	(597)
Forfeited	(28)	$	18.41	(101)

Unvested at December 31	1,035	$	16.04	2,066

Summary of changes in stock-settled Performance Stock Units (PSUs)

	Stock-Settled
	Number of Awards (in thousands)	Weighted- Average Grant- Date Fair Value
Unvested at January 1	459	$	44.34
Granted	—	$	—
Vested	(72)	$	73.70
Forfeited	(3)	$	18.50

Unvested at December 31	384	$	39.05

TSR Awards

STOCK COMPENSATION

Schedule of grant date assumptions used in the Monte Carlo valuation

	Modification Date			Grant Date
Risk-free interest rate	0.77		%	1.06		%
Dividend yield	—		%	0.95		%
Volatility factor	69.69		%	43.63		%
Expected life (years)	2.16			2.9
Fair value of underlying common stock	$	18.50		$	42.00

Stock Options

STOCK COMPENSATION

Schedule of grant date assumptions used in the Black-Scholes valuation for stock options

	2015			2014
Exercise price per share	$	42.00		$	81.10
Expected life (in years)	4.5			4.5
Expected volatility	44.7		%	35.4		%
Risk-free interest rate	1.56		%	1.40		%
Dividend yield	0.95		%	0.50		%
Grant date fair value of stock option awards granted	$	15.00		$	19.80

Summary of stock option activity

	Options (000’s)	Weighted- Average Exercise Price		Weighted- Average Grant-Date Fair Value		Aggregate Intrinsic Value
Beginning balance, January 1	1,109	$	69.89	$	18.42	$	—
Granted	—	$	—	$	—	$	—
Exercised	—	$	—	$	—	$	—
Forfeited	(4)	$	54.12	$	16.49	$	—

Ending balance, December 31	1,105	$	69.95	$	18.43	$	—

Exercisable at December 31	1,013	$	72.47	$	18.74	$	—

EQUITY (Tables)

12 Months Ended

Dec. 31, 2017

EQUITY

Summary of common stock issuances on a post-split basis

		Common Stock
		(in thousands)
Balance, December 31, 2015		38,818
Issued		3,725

Balance, December 31, 2016		42,543
Issued		359

Balance, December 31, 2017		42,902

EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2017

EARNINGS PER SHARE

Calculation of basic and diluted EPS

	2017		2016		2015
	(in millions, except per-share amounts)
Basic EPS calculation
Net (loss) income	$	(262)	$	279	$	(3,554)
Less: net income attributable to noncontrolling interest	(4)		—		—

Net (loss) income attributable to common stock	(266)		279		(3,554)
Less: net income allocated to participating securities	—		(6)		—

Net (loss) income available to common stockholders	$	(266)	$	273	$	(3,554)

Weighted-average common shares outstanding - basic	42.5		40.4		38.3

Basic EPS	$	(6.26)	$	6.76	$	(92.79)


Diluted EPS calculation
Net income (loss)	$	(262)	$	279	$	(3,554)
Less: net income attributable to noncontrolling interest	(4)		—		—

Net (loss) income attributable to common stock	(266)		279		(3,554)
Less: net income allocated to participating securities	—		(6)		—

Net (loss) income available to common stockholders	$	(266)	$	273	$	(3,554)

Weighted-average common shares outstanding - basic	42.5		40.4		38.3
Dilutive effect of potentially dilutive securities	—		—		—

Weighted-average common shares outstanding - diluted	42.5		40.4		38.3

Diluted EPS	$	(6.26)	$	6.76	$	(92.79)

Weighted-average anti-dilutive shares(a)	2.1		1.7		1.3

(a)

PENSION AND POSTRETIREMENT BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2017

PENSION AND POSTRETIREMENT BENEFIT PLANS

Components of amounts recognized in the balance sheets

	As of December 31,
	2017		2016		2017		2016
	Pension Benefits				Postretirement Benefits
	(in millions)
Amounts recognized in the balance sheet:
Accrued liabilities	$	—	$	—	$	(3)	$	(2)
Other long-term liabilities	(19)		(26)		(90)		(75)

	$	(19)	$	(26)	$	(93)	$	(77)


Amounts recognized in accumulated other comprehensive (loss) income:	$	(13)	$	(16)	$	(10)	$	2

Funding status of plans

	As of December 31,
	2017		2016		2017		2016
	Pension Benefits				Postretirement Benefits
	(in millions)
Changes in the benefit obligation:
Benefit obligation—beginning of year	$	70	$	83	$	77	$	71
Service cost—benefits earned during the period	1		1		3		3
Interest cost on projected benefit obligation	2		3		4		3
Actuarial loss	7		7		11		1
Benefits paid	(15)		(24)		(2)		(1)

Benefit obligation—end of year	$	65	$	70	$	93	$	77


Changes in plan assets:
Fair value of plan assets—beginning of year	$	44	$	56	$	—	$	—
Actual return on plan assets	5		2		—		—
Employer contributions	12		10		2		1
Benefits paid	(15)		(24)		(2)		(1)

Fair value of plan assets—end of year	$	46	$	44	$	—	$	—

Unfunded status	$	(19)	$	(26)	$	(93)	$	(77)

Schedule of defined benefit pension plans with accumulated benefit obligations in excess of plan assets

	2017		2016
	(in millions)
Projected Benefit Obligation	$	65	$	70
Accumulated Benefit Obligation	$	62	$	67
Fair Value of Plan Assets	$	46	$	44

Components of the net periodic benefit costs

	For the years ended December 31,
	2017		2016		2015		2017		2016		2015
	Pension Benefits						Postretirement Benefits
	(in millions)
Net periodic benefit costs:
Service cost—benefits earned during the period	$	1	$	1	$	4	$	3	$	3	$	5
Interest cost on projected benefit obligation	2		3		4		4		3		3
Expected return on plan assets	(3)		(3)		(5)		—		—		—
Amortization of net actuarial loss	2		2		3		—		—		—
Settlement cost	5		8		18		—		—		—
Curtailment loss	—		—		—		—		—		5

Net periodic benefit cost	$	7	$	11	$	24	$	7	$	6	$	13

Amounts recognized in other comprehensive income (expense)

	For the years ended December 31,
	2017		2016		2015		2017		2016		2015
	Pension Benefits						Postretirement Benefits
	(in millions)
Amounts recognized in other comprehensive income (loss):
Net actuarial (loss) gain	$	(4)	$	(9)	$	(28)	$	(12)	$	—	$	9
Net prior service credit	—		—		12		—		—		—
Settlement cost	5		8		18		—		—		—
Amortization of net actuarial gain/loss	2		2		3		—		—		—

Total recognized in other comprehensive income (loss)	$	3	$	1	$	5	$	(12)	$	—	$	9

Weighted-average assumptions used to determine benefit obligations and net periodic benefit cost

	For the years ended December 31,
	2017	2016	2017	2016
	Pension Benefits		Postretirement Benefits
Benefit Obligation Assumptions:
Discount rate	3.53%	3.88%	3.87%	4.58	%
Rate of compensation increase	4.00%	4.00%	—	—
Net Periodic Benefit Cost Assumptions:
Discount rate	3.88%	3.99%	4.58%	4.81	%
Assumed long-term rate of return on assets	6.50%	6.50%	—	—
Rate of compensation increase	4.00%	4.00%	—	—

Fair values of pension plan assets by asset category

The fair values of our pension plan assets by asset category are as follows:

	Fair Value Measurements at December 31, 2017 Using
	Level 1		Level 2		Level 3		Total
	(in millions)
Asset Class:
Cash equivalents	$	3	$	—	$	—	$	3
Commingled funds:
Fixed income	—		7		—		7
U.S. equity	—		9		—		9
International equity	—		5		—		5
Mutual funds:
Bond funds	6		—		—		6
Blend funds	3		—		—		3
Value funds	3		—		—		3
Growth funds	3		—		—		3
Guaranteed deposit account	—		—		7		7

Total pension plan assets	$	18	$	21	$	7	$	46

	Fair Value Measurements at December 31, 2016 Using
	Level 1		Level 2		Level 3		Total
	(in millions)
Asset Class:
Cash equivalents	$	3	$	—	$	—	$	3
Commingled funds:
Fixed income	—		9		—		9
U.S. equity	—		10		—		10
International equity	—		6		—		6
Mutual funds:
Bond funds	4		—		—		4
Blend funds	2		—		—		2
Value funds	2		—		—		2
Growth funds	2		—		—		2
Guaranteed deposit account	—		—		6		6

Total pension plan assets	$	13	$	25	$	6	$	44

Estimated future undiscounted benefit payments, which reflect expected future service, as appropriate

For the years ended December 31,	Pension Benefits		Postretirement Benefits
	(in millions)
2018	$	21	$	3
2019	$	5	$	3
2020	$	5	$	4
2021	$	5	$	4
2022	$	4	$	4
2023 - 2027	$	16	$	23

CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables)

12 Months Ended

Dec. 31, 2017

CONDENSED CONSOLIDATING FINANCIAL INFORMATION

Schedule of Condensed Consolidating Balance Sheet

	Parent		Combined Guarantor Subsidiaries		Combined Non- Guarantor Subsidiaries		Eliminations		Consolidated
As of December 31, 2017	(in millions)
Total current assets	$	13	$	464	$	12	$	(6)	$	483
Total property, plant and equipment, net	24		5,580		92		—		5,696
Investments in consolidated subsidiaries	5,105		606		—		(5,711)		—
Other assets	—		27		1		—		28

TOTAL ASSETS	$	5,142	$	6,677	$	105	$	(5,717)	$	6,207


Total current liabilities	122		613		3		(6)		732
Long-term debt - principal amount	5,306		—		—		—		5,306
Deferred gain and issuance costs, net	287		—		—		—		287
Other long-term liabilities	154		445		3		—		602
Amounts due to (from) affiliates	87		(87)		—		—		—
Total equity	(814)		5,706		99		(5,711)		(720)

TOTAL LIABILITIES AND EQUITY	$	5,142	$	6,677	$	105	$	(5,717)	$	6,207


As of December 31, 2016
Total current assets	$	7	$	418	$	—	$	—	$	425
Total property, plant and equipment, net	25		5,856		4		—		5,885
Investments in consolidated subsidiaries	5,713		537		—		(6,250)		—
Other assets	—		44		—		—		44

TOTAL ASSETS	$	5,745	$	6,855	$	4	$	(6,250)	$	6,354


Total current liabilities	221		505		—		—		726
Long-term debt - principal amount	5,168		—		—		—		5,168
Deferred gain and issuance costs, net	397		—		—		—		397
Other long-term liabilities	132		487		1		—		620
Amounts due to (from) affiliates	384		(384)		—		—		—
Total equity	(557)		6,247		3		(6,250)		(557)

TOTAL LIABILITIES AND EQUITY	$	5,745	$	6,855	$	4	$	(6,250)	$	6,354

Schedule of Condensed Consolidating Statement of Operations

	Parent		Combined Guarantor Subsidiaries		Combined Non- Guarantor Subsidiaries		Eliminations		Consolidated
For the year ended December 31, 2017	(in millions)
Total revenues and other	$	42	$	1,947	$	17	$	—	$	2,006
Total costs and other	230		1,700		13		—		1,943
Non-operating (loss) income	(349)		24		—		—		(325)
Income tax benefit	—		—		—		—		—

NET (LOSS) INCOME	(537)		271		4		—		(262)

Net income attributable to noncontrolling interest	—		—		(4)		—		(4)

NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCK	$	(537)	$	271	$	—	$	—	$	(266)


For the year ended December 31, 2016
Total revenues and other	$	—	$	1,543	$	4	$	—	$	1,547
Total costs and other	205		1,644		4		—		1,853
Non-operating income	475		32		—		—		507
Income tax benefit	78		—		—		—		78

NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCK	$	348	$	(69)	$	—	$	—	$	279


For the year ended December 31, 2015
Total revenues and other	$	—	$	2,400	$	3	$	—	$	2,403
Total costs and other	302		7,236		7		—		7,545
Non-operating (loss) income	(343)		9		—		—		(334)
Income tax benefit	1,922		—		—		—		1,922

NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCK	$	1,277	$	(4,827)	$	(4)	$	—	$	(3,554)

Schedule of Condensed Consolidating Statement of Cash Flows

	Parent		Combined Guarantor Subsidiaries		Combined Non- Guarantor Subsidiaries		Eliminations		Consolidated
For the year ended December 31, 2017	(in millions)
Net cash (used) provided by operating activities	$	(481)	$	718	$	11	$	—	$	248
Net cash used in investing activities	(4)		(212)		(97)		—		(313)
Net cash provided (used) by financing activities	492		(510)		91		—		73

Increase (decrease) in cash and cash equivalents	7		(4)		5		—		8
Cash and cash equivalents—beginning of period	—		12		—		—		12

Cash and cash equivalents— end of period	$	7	$	8	$	5	$	—	$	20


For the year ended December 31, 2016
Net cash (used) provided by operating activities	$	(598)	$	727	$	1	$	—	$	130
Net cash used in investing activities	(1)		(60)		—		—		(61)
Net cash provided (used) by financing activities	599		(667)		(1)		—		(69)

Increase in cash and cash equivalents	—		—		—		—		—
Cash and cash equivalents—beginning of period	—		12		—		—		12

Cash and cash equivalents— end of period	$	—	$	12	$	—	$	—	$	12


For the year ended December 31, 2015
Net cash (used) provided by operating activities	$	(1,676)	$	2,086	$	(7)	$	—	$	403
Net cash used in investing activities	(24)		(733)		—		—		(757)
Net cash provided (used) by financing activities	1,700		(1,355)		7		—		352

Decrease in cash and cash equivalents	—		(2)		—		—		(2)
Cash and cash equivalents—beginning of period	—		14		—		—		14

Cash and cash equivalents— end of period	$	—	$	12	$	—	$	—	$	12

THE SPIN-OFF, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER - Separation and Spin off (Details)	Nov. 30, 2014
Spinoff - CRC \| Occidental Petroleum
Separation and Spin Off Transactions
Percentage of outstanding shares of common stock initially retained by Occidental	18.50%

THE SPIN-OFF, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER - Basis of Presentation (Details) shares in Millions	May 31, 2016 shares	Dec. 31, 2017 shares	Dec. 31, 2016 shares
Reverse Stock Split
Reverse stock split ratio	0.10
Common stock, authorized shares	200	200	200
Preferred stock, authorized shares	20	20	20
Before reverse stock split
Reverse Stock Split
Common stock, authorized shares	2,000
Preferred stock, authorized shares	200

THE SPIN-OFF, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER - Concentration of Customers (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Phillips 66 Company, Andeavor (formerly Tesoro Refining & Marketing Company LLC), Valero Marketing & Supply Company and Shell Trading (US) Company Combined
Revenue Recognition
Concentration risk percentage	67.00%	67.00%
Phillips 66 Company, Andeavor (formerly Tesoro Refining & Marketing Company LLC) and Valero Marketing & Supply Company Combined
Revenue Recognition
Concentration risk percentage			64.00%
Minimum \| Phillips 66 Company \| Major Customers
Revenue Recognition
Concentration risk percentage	10.00%	10.00%	10.00%
Minimum \| Tesoro Refining & Marketing Company LLC \| Major Customers
Revenue Recognition
Concentration risk percentage	10.00%	10.00%	10.00%
Minimum \| Valero Marketing & Supply Company \| Major Customers
Revenue Recognition
Concentration risk percentage	10.00%	10.00%	10.00%
Minimum \| Shell Trading (US) Company \| Major Customers
Revenue Recognition
Concentration risk percentage	10.00%	10.00%

THE SPIN-OFF, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER - Property, Plant and Equipment (Details) $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($) $ / bbl	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment, Net [Abstract]
Maximum time period after which costs of exploratory wells are charged to expense if determination of proved reserves has not been made	12 months	12 months	12 months
Net capitalized costs attributable to unproved properties	$ 300
Percentage of increase or decrease in the amount of oil and gas reserves	5.00%
Approximate change in DD&A rate in a 5% increase or decrease of oil gas reserves \| $ / bbl	0.61
Approximate increase or decrease in pre-tax income (loss) in a 5% increase or decrease of oil gas reserves	$ 29

THE SPIN-OFF, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER - Asset Retirement Obligations (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Asset Retirement Obligations
Non-current asset retirement obligation	$ 403	$ 397
Asset Retirement Obligations Roll forward
Beginning balance	411	357
Liabilities incurred - capitalized to PP&E	2	2
Liabilities settled and paid	(9)	(10)
Accretion expense	25	22
Disposition and other - changes in PP&E		(17)
Revisions to estimated cash flows - changes in PP&E	(7)	57
Ending balance	$ 422	$ 411

THE SPIN-OFF, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER - Fair Value Measurements (Details) $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($)
Fair Value Measurements
Net derivative liability	$ 133
Increase (decrease) in fair value	10.00%
Effect of 10% increase or decrease in net derivative liability on pre-tax earnings	$ 13

THE SPIN-OFF, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER - Inventories (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
THE SPIN-OFF, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER
Materials and supplies	$ 53	$ 55
Finished goods	3	3
Total	$ 56	$ 58

THE SPIN-OFF, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER - Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Taxes
Interest and penalties related to uncertain tax positions	$ 0	$ 0	$ 0

THE SPIN-OFF, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER - Production Sharing Type Contracts and Cash (Details)	12 Months Ended
	Dec. 31, 2017
Production Sharing Type Contracts
Approximate percentage of production less that is represented by production sharing type contracts	20.00%
Percentage of operating costs reported under PSC type contracts	100.00%

THE SPIN-OFF, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER - Cash (Details) $ in Millions	Dec. 31, 2017 USD ($)
Cash
Cash restricted for distributions to BSP	$ 5

THE SPIN-OFF, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER - Other Current Assets (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Other current assets
Amount due from joint interest partners	$ 76	$ 51
Derivative assets from commodities contracts	23	39
Assets held for sale	12	19
Prepaid expenses	19	14
Other current assets	$ 130	$ 123

THE SPIN-OFF, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER - Accrued Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Accrued liabilities
Derivative liabilities from commodities contracts	$ 154	$ 103
Greenhouse gas obligations	106	89
Accrued employee-related costs	86	91
Other	129	124
Accrued liabilities	$ 475	$ 407

- Definition

Fair value, after the effects of master netting arrangements, of a financial liability or contract with one or more underlyings, notional amount or payment provision or both, and the contract can be net settled by means outside the contract or delivery of an asset, expected to be settled within one year or normal operating cycle, if longer. Includes assets not subject to a master netting arrangement and not elected to be offset.

+ References + Details

THE SPIN-OFF, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Supplemental Cash Flow Information
Interest paid, net of capitalized amounts	$ 393	$ 382	$ 350
United States federal and state income taxes paid	$ 0	$ 0	$ 0

ACQUISITIONS AND DIVESTITURES (Details) $ in Millions	1 Months Ended				9 Months Ended	12 Months Ended
ACQUISITIONS AND DIVESTITURES (Details) $ in Millions	Jul. 31, 2017 USD ($) item	Apr. 30, 2017 USD ($)	Mar. 31, 2017 USD ($) item	Feb. 28, 2017 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Acquisition
Proceeds from sale of non-core assets				$ 32				$ 20
Gains on asset divestitures				21			$ 21	30
Contribution from noncontrolling interest, net							98
Amount used to fund capital investments							371	$ 75	$ 401
Joint venture with BSP \| BSP
Acquisition
Committed maximum investment in a joint venture				250
Number of $50 commitments funded \| item	1		1
Commitment contributed	$ 50		$ 50
Issuance fee							2
Contribution from noncontrolling interest, net							98
Amount used to fund capital investments							$ 96
Additional payment to redeem preferred interest				$ 0
Joint venture with MIRA
Acquisition
Working interest retained by CRC (as a percent)		10.00%
CRC's working interest after MIRA receives cash distributions equal to a predetermined threshold return (as a percent)		75.00%
Joint venture with MIRA \| MIRA
Acquisition
Maximum commitment contribution		$ 300
Commitment contributed					$ 58
Working interest acquired by MIRA		90.00%
Funding provided by MIRA for development of properties (as a percent)		100.00%
Initial commitment		$ 160
Investment period of initial commitment		2 years
Joint venture with MIRA \| MIRA \| Maximum \| Expected
Acquisition
Commitment contributed						$ 96
Oil and gas properties in San Joaquin Basin
Acquisition
Cash paid on acquisition									$ 140

PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Capitalized exploratory well costs for the years ended December 31:
Balance - beginning of year		$ 4	$ 6	$ 4
Additions to capitalized exploratory well costs pending the determination of proved reserves		4	1	16
Reclassification to property, plant and equipment based on the determination of proved reserves		(2)		(5)
Capitalized exploratory well costs charged to expense		(2)	(3)	(9)
Balance - end of year	$ 6	$ 4	4	$ 6
Gas plant and power plant assets \| Minimum
Property, Plant and Equipment
Expected useful lives		2 years
Gas plant and power plant assets \| Maximum
Property, Plant and Equipment
Expected useful lives		30 years
Other non- producing property and equipment \| Minimum
Property, Plant and Equipment
Expected useful lives		2 years
Other non- producing property and equipment \| Maximum
Property, Plant and Equipment
Expected useful lives		20 years
Proved and unproved properties
Asset Impairments
Asset impairment charges	4,900	$ 0	$ 0
Unproved properties
Asset Impairments
Asset impairment charges	$ 100

DEBT - Schedule of long-term debt (Details) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Nov. 30, 2017	Dec. 31, 2017	Dec. 31, 2016	Feb. 28, 2018	Dec. 31, 2015	Oct. 31, 2014
Debt
Total Debt Outstanding - Principal Amount		$ 5,306	$ 5,268
Less Current Maturities of Long-Term Debt			(100)
Long-Term Debt - Principal Amount		5,306	5,168
Deferred gain and issuance costs, net		287	397
Deferred gains		415	489
Deferred issuance costs		128	92
2014 Revolving Credit Facility (Shared First Priority Lien)
Debt
Total Debt Outstanding - Principal Amount		$ 363	$ 847
2014 Revolving Credit Facility (Shared First Priority Lien) \| Applicable margin on LIBOR loans \| Minimum
Debt
Interest rate added to variable rate basis (as a percent)		3.25%	3.25%
2014 Revolving Credit Facility (Shared First Priority Lien) \| Applicable margin on LIBOR loans \| Maximum
Debt
Interest rate added to variable rate basis (as a percent)		4.00%	4.00%
2014 Revolving Credit Facility (Shared First Priority Lien) \| Applicable margin on Alternate Base Rate loans \| Minimum
Debt
Interest rate added to variable rate basis (as a percent)		2.25%	2.25%
2014 Revolving Credit Facility (Shared First Priority Lien) \| Applicable margin on Alternate Base Rate loans \| Maximum
Debt
Interest rate added to variable rate basis (as a percent)		3.00%	3.00%
2014 Term Loan (Shared First Priority Lien)
Debt
Total Debt Outstanding - Principal Amount			$ 650
2014 Term Loan (Shared First Priority Lien) \| Applicable margin on LIBOR loans \| Minimum
Debt
Interest rate added to variable rate basis (as a percent)			3.25%
2014 Term Loan (Shared First Priority Lien) \| Applicable margin on LIBOR loans \| Maximum
Debt
Interest rate added to variable rate basis (as a percent)			4.00%
2014 Term Loan (Shared First Priority Lien) \| Applicable margin on Alternate Base Rate loans \| Minimum
Debt
Interest rate added to variable rate basis (as a percent)			2.25%
2014 Term Loan (Shared First Priority Lien) \| Applicable margin on Alternate Base Rate loans \| Maximum
Debt
Interest rate added to variable rate basis (as a percent)			3.00%
2017 Credit Agreement (Shared First Priority Lien)
Debt
Total Debt Outstanding - Principal Amount		$ 1,300
2017 Credit Agreement (Shared First Priority Lien) \| 91 days prior to maturity of 2016 Credit Agreement
Debt
Period before maturity of the specified notes that triggers accelerated payment	91 days
Outstanding amount of specified notes that triggers accelerated payment	$ 100
2017 Credit Agreement (Shared First Priority Lien) \| Applicable margin on LIBOR loans
Debt
Interest rate added to variable rate basis (as a percent)		4.75%
2017 Credit Agreement (Shared First Priority Lien) \| Applicable margin on Alternate Base Rate loans
Debt
Interest rate added to variable rate basis (as a percent)		3.75%
2016 Credit Agreement (Shared First Priority Lien)
Debt
Total Debt Outstanding - Principal Amount		$ 1,000	$ 1,000
2016 Credit Agreement (Shared First Priority Lien) \| Applicable margin on LIBOR loans
Debt
Interest rate added to variable rate basis (as a percent)		10.375%	10.375%
2016 Credit Agreement (Shared First Priority Lien) \| Applicable margin on Alternate Base Rate loans
Debt
Interest rate added to variable rate basis (as a percent)		9.375%	9.375%
Second Lien Notes \| 8% Notes Due 2022
Debt
Total Debt Outstanding - Principal Amount		$ 2,250	$ 2,250
Debt instrument interest rate stated percentage		8.00%	8.00%		8.00%
Senior Notes (Unsecured) \| 5% Notes Due 2020
Debt
Total Debt Outstanding - Principal Amount		$ 100	$ 193
Debt instrument interest rate stated percentage		5.00%	5.00%			5.00%
Senior Notes (Unsecured) \| 5.5% Notes Due 2021
Debt
Total Debt Outstanding - Principal Amount		$ 100	$ 135
Debt instrument interest rate stated percentage		5.50%	5.50%			5.50%
Senior Notes (Unsecured) \| 6% Notes Due 2024
Debt
Total Debt Outstanding - Principal Amount		$ 193	$ 193
Debt instrument interest rate stated percentage		6.00%	6.00%			6.00%
SUBSEQUENT EVENT \| 2014 Revolving Credit Facility (Shared First Priority Lien)
Debt
Total Debt Outstanding - Principal Amount				$ 0

DEBT - 2014 Revolving Credit Facility (Details) $ in Millions		1 Months Ended				12 Months Ended		21 Months Ended
	Sep. 30, 2017 USD ($)	Feb. 28, 2018 USD ($)	Nov. 30, 2017 USD ($)	Feb. 28, 2017 USD ($)	Aug. 31, 2016 USD ($)	Dec. 31, 2017 USD ($) item	Dec. 31, 2016 USD ($)	Sep. 30, 2017 USD ($)	Nov. 01, 2017 USD ($)
5.5% Notes Due 2021
Debt
Principal amount of debt reduction through payment or repurchase						$ 35
5% Notes Due 2020
Debt
Principal amount of debt reduction through payment or repurchase						$ 65
Second Lien Notes And Senior Notes \| Applications of proceeds from sale of nonborrowing base assets after required payment of 2014 RCF.
Other covenants
Percent of minimum discount for repurchase of 2016 credit agreement, senior notes or second lien notes						20.00%
Amount of minimum liquidity to be maintained after repurchase of 2016 credit agreement, senior notes or second lies notes						$ 250
2014 Revolving Credit Facility (Shared First Priority Lien)
Debt
Maximum borrowing capacity						1,000
Increase to maximum borrowing capacity with lender approval						50
Available borrowing capacity, subject to minimum liquidity requirement						489
Minimum monthly liquidity						$ 150
Borrowing base									$ 2,300
Number of consecutive redeterminations between which CRC or lenders can request a special redetermination \| item						3
Other covenants
Minimum interest coverage ratio						1.20
Minimum asset coverage ratio						1.20
Minimum monthly liquidity						$ 150
Amount of cash on hand above which amounts owed under the Revolving Credit Facility must be repaid						$ 150
Percentage of proceeds from the power plant sale that may be used to repurchase debts						50.00%
2014 Revolving Credit Facility (Shared First Priority Lien) \| Alternative Base Rate Loan Federal fund rate
Debt
Interest rate added to variable rate basis (as a percent)						0.50%
2014 Revolving Credit Facility (Shared First Priority Lien) \| Alternative Base Rate Loan One-Month LIBOR
Debt
Interest rate added to variable rate basis (as a percent)						1.00%
2014 Revolving Credit Facility (Shared First Priority Lien) \| 273 days prior to maturity of 2020 Notes or 2021 Notes
Debt
Period before maturity of the specified notes that triggers accelerated payment	273 days
Outstanding amount of specified notes that triggers accelerated payment	$ 100							$ 100
2014 Term Loan (Shared First Priority Lien)
Other covenants
Early extinguishment of debt under the 2014 Credit Facility			$ 559
Minimum \| 2014 Revolving Credit Facility (Shared First Priority Lien)
Debt
Commitment fees on unused portion of the Revolving Credit Facility						0.30%
Approval percentage measured by total exposure of lenders for approval of increases in borrowing base						80.00%
Approval percentage measured by total exposure of lenders to request a special redetermination						67.00%
Percent of commitment required to decrease or affirm the borrowing base						67.00%
Minimum \| 2014 Revolving Credit Facility (Shared First Priority Lien) \| Applicable margin on LIBOR loans
Debt
Interest rate added to variable rate basis (as a percent)						3.25%	3.25%
Minimum \| 2014 Revolving Credit Facility (Shared First Priority Lien) \| Applicable margin on Alternate Base Rate loans
Debt
Interest rate added to variable rate basis (as a percent)						2.25%	2.25%
Minimum \| 2014 Term Loan (Shared First Priority Lien) \| Applicable margin on LIBOR loans
Debt
Interest rate added to variable rate basis (as a percent)							3.25%
Minimum \| 2014 Term Loan (Shared First Priority Lien) \| Applicable margin on Alternate Base Rate loans
Debt
Interest rate added to variable rate basis (as a percent)							2.25%
Maximum \| 2014 Revolving Credit Facility (Shared First Priority Lien)
Debt
Commitment fees on unused portion of the Revolving Credit Facility						0.50%
Maximum \| 2014 Revolving Credit Facility (Shared First Priority Lien) \| Applicable margin on LIBOR loans
Debt
Interest rate added to variable rate basis (as a percent)						4.00%	4.00%
Maximum \| 2014 Revolving Credit Facility (Shared First Priority Lien) \| Applicable margin on Alternate Base Rate loans
Debt
Interest rate added to variable rate basis (as a percent)						3.00%	3.00%
Maximum \| 2014 Term Loan (Shared First Priority Lien) \| Applicable margin on LIBOR loans
Debt
Interest rate added to variable rate basis (as a percent)							4.00%
Maximum \| 2014 Term Loan (Shared First Priority Lien) \| Applicable margin on Alternate Base Rate loans
Debt
Interest rate added to variable rate basis (as a percent)							3.00%
Term Loan \| 2014 Revolving Credit Facility (Shared First Priority Lien)
Debt
Prepayment of term loan from proceeds of non-core asset sale				$ 16
Quarterly instalment payment of term loan								25
Payments of remaining balance of term loan			$ 559					$ 175
Prepayment of term loan from proceeds of the 2016 credit agreement					$ 250
2014 Revolving Credit Facility \| 2014 Credit Facilities (Secured First Lien), Amended \| Through 2019
Other covenants
Maximum leverage ratio						1.90
2014 Revolving Credit Facility \| 2014 Credit Facilities (Secured First Lien), Amended \| After 2019
Other covenants
Maximum leverage ratio						1.50
2014 Revolving Credit Facility \| Letters of Credit
Debt
Maximum sub-limit on borrowing capacity for issuance of letters of credit						$ 400
Aggregate letters of credit issued						$ 148	$ 130
Ares JV \| 2014 Revolving Credit Facility (Shared First Priority Lien) \| SUBSEQUENT EVENT
Other covenants
Early extinguishment of debt under the 2014 Credit Facility		$ 297
Up to $500 million \| 2016 Credit Agreement, Second Lien Notes and Senior Notes
Other covenants
Percent of net cash proceeds from non-borrowing base asset sales that must be used to repay the 2014 RCF						25.00%
Net cash proceeds from non-borrowing base asset sales that are subject to percentage of repayment of the 2014 RCF						$ 500
$500 million and $1 billion \| 2016 Credit Agreement, Second Lien Notes and Senior Notes
Other covenants
Percent of net cash proceeds from non-borrowing base asset sales that must be used to repay the 2014 RCF						50.00%
$500 million and $1 billion \| Minimum \| 2016 Credit Agreement, Second Lien Notes and Senior Notes
Other covenants
Net cash proceeds from non-borrowing base asset sales that are subject to percentage of repayment of the 2014 RCF						$ 500
$500 million and $1 billion \| Maximum \| 2016 Credit Agreement, Second Lien Notes and Senior Notes
Other covenants
Net cash proceeds from non-borrowing base asset sales that are subject to percentage of repayment of the 2014 RCF						$ 1,000
In excess of $1 billion \| 2016 Credit Agreement, Second Lien Notes and Senior Notes
Other covenants
Percent of net cash proceeds from non-borrowing base asset sales that must be used to repay the 2014 RCF						75.00%
Net cash proceeds from non-borrowing base asset sales that are subject to percentage of repayment of the 2014 RCF						$ 1,000

DEBT - 2017 Credit Agreements (Details) $ in Millions	1 Months Ended	21 Months Ended
DEBT - 2017 Credit Agreements (Details) $ in Millions	Nov. 30, 2017 USD ($)	Sep. 30, 2017 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Debt
Outstanding borrowings			$ 5,306	$ 5,268
5% Notes Due 2020
Debt
Principal amount of debt reduction through payment or repurchase			65
5.5% Notes Due 2021
Debt
Principal amount of debt reduction through payment or repurchase			35
2014 Revolving Credit Facility (Shared First Priority Lien)
Debt
Maximum borrowing capacity			1,000
Outstanding borrowings			$ 363	$ 847
Minimum asset coverage ratio			1.20
2017 Credit Agreement (Shared First Priority Lien)
Debt
Maximum borrowing capacity	$ 1,300
Original issue discount	26
Transaction costs	$ 38
Outstanding borrowings			$ 1,300
Period prior to maturity before which prepayment premium applies	90 days
Premium on prepayment of debt (as a percent)	2.00%
2017 Credit Agreement (Shared First Priority Lien) \| 91 days prior to maturity of 2016 Credit Agreement
Debt
Period before maturity of the 2016 Credit Agreement that triggers accelerated payment	91 days
Outstanding amount of specified notes that triggers accelerated payment	$ 100
2017 Credit Agreement (Shared First Priority Lien) \| 91 days prior to maturity of 2020 Notes or 2021 Notes
Debt
Period before maturity of the 2016 Credit Agreement that triggers accelerated payment	91 days
Outstanding amount of specified notes that triggers accelerated payment	$ 100
2017 Credit Agreement (Shared First Priority Lien) \| Any June 30 and December 31
Debt
Minimum asset coverage ratio	1.20
Term Loan \| 2014 Revolving Credit Facility (Shared First Priority Lien)
Debt
Payment of bank debt	$ 559	$ 175
Loss on early extinguishment of debt	$ 8

DEBT - 2016 Credit Agreements (Details) $ in Millions	1 Months Ended	12 Months Ended
DEBT - 2016 Credit Agreements (Details) $ in Millions	Aug. 31, 2016 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Debt
Proceeds used to repay 2014 revolving credit facility		$ 2,180	$ 2,110	$ 1,656
Outstanding borrowings		5,306	5,268
5% Notes Due 2020
Debt
Principal amount of debt reduction through payment or repurchase		65
5.5% Notes Due 2021
Debt
Principal amount of debt reduction through payment or repurchase		35
2014 Revolving Credit Facility (Shared First Priority Lien)
Debt
Maximum borrowing capacity		1,000
Outstanding borrowings		$ 363	847
Minimum asset coverage ratio		1.20
2016 Credit Agreement (Shared First Priority Lien)
Debt
Maximum borrowing capacity	$ 1,000
Original issue discount	$ 10
Outstanding borrowings		$ 1,000	$ 1,000
2016 Credit Agreement (Shared First Priority Lien) \| 91 days prior to maturity of 2020 Notes or 2021 Notes
Debt
Period before maturity of the 2016 Credit Agreement that triggers accelerated payment	91 days
Outstanding amount of specified notes that triggers accelerated payment	$ 100
2016 Credit Agreement (Shared First Priority Lien) \| Any June 30 and December 31
Debt
Minimum asset coverage ratio		1.20
Term Loan \| 2014 Revolving Credit Facility (Shared First Priority Lien)
Debt
Proceeds used to repay 2014 term loan	250
2014 Revolving Credit Facility \| 2014 Revolving Credit Facility (Shared First Priority Lien)
Debt
Proceeds used to repay 2014 revolving credit facility	$ 740

DEBT - Second Lien Notes (Details) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
DEBT - Second Lien Notes (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Oct. 31, 2014
Debt
Outstanding borrowings		$ 5,306	$ 5,268
Pre-tax deferred gain on early extinguishment of debt		$ 4	$ 805	$ 20
Second Lien Notes
Debt
Percentage of principal amount at which notes can be redeemed in case of change control		101.00%
Second Lien Notes \| 8% Notes Due 2022
Debt
Aggregate principal amount issued	$ 2,250			$ 2,250
Interest rate (as a percent)	8.00%	8.00%	8.00%	8.00%
Outstanding borrowings		$ 2,250	$ 2,250
Second Lien Notes \| 8% Notes Due 2022 \| Prior to December 15, 2018
Debt
Percentage of principal amount at which notes can be redeemed prior to their maturity date		100.00%
Redemption period start		Dec. 15, 2017
Redemption period end		Dec. 14, 2018
Second Lien Notes \| 8% Notes Due 2022 \| Between December 15, 2018 and 2020
Debt
Redemption period start		Dec. 15, 2018
Redemption period end		Dec. 31, 2018
Second Lien Notes \| 8% Notes Due 2022 \| Thereafter
Debt
Percentage of principal amount at which notes can be redeemed in case of change control		100.00%
Redemption period start		Jan. 01, 2019
Redemption period end		Dec. 15, 2022
Senior Notes (Unsecured)
Debt
Aggregate principal amount issued					$ 5,000
Proceeds from Second Lien Notes used to reduce principal amount of senior note debt through exchange	$ 2,800			$ 2,800
Pre-tax deferred gain on early extinguishment of debt	$ 560
Percentage of principal amount at which notes can be redeemed in case of change control		101.00%
Percentage of principal amount at which notes can be redeemed prior to their maturity date		100.00%
Minimum \| Second Lien Notes \| 8% Notes Due 2022 \| Between December 15, 2018 and 2020
Debt
Percentage of principal amount at which notes can be redeemed prior to their maturity date		102.00%
Maximum \| Second Lien Notes \| 8% Notes Due 2022 \| Between December 15, 2018 and 2020
Debt
Percentage of principal amount at which notes can be redeemed prior to their maturity date		104.00%

DEBT - Senior Notes (Details) - USD ($) shares in Millions, $ in Millions	1 Months Ended	3 Months Ended		12 Months Ended
	Oct. 31, 2014	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
5% Notes Due 2020
Debt
Principal amount of debt reduction through payment or repurchase		$ 65		$ 65
5.5% Notes Due 2021
Debt
Principal amount of debt reduction through payment or repurchase		35		$ 35
Senior Notes (Unsecured)
Debt
Principal amount of debt reduction through payment or repurchase					$ 1,500
Repurchase value of the principal amounts					$ 750
Aggregate principal amount issued	$ 5,000
Net proceeds from issuance of senior notes used to make cash distribution to Occidental	$ 4,950
Number of common stock shares exchanged to pay down unsecured senior notes					3.4
Debt reduction from exchange of common stock shares					$ 100
Percentage of principal amount at which notes can be redeemed in case of change control				101.00%
Percentage of principal amount at which notes can be redeemed prior to their maturity date				100.00%
Senior Notes (Unsecured) \| 5% Notes Due 2020 and 5.5% Notes Due 2021
Debt
Repurchase value of the principal amounts		92		$ 92
Pre tax gain on extinguishment of debt		$ 8
Senior Notes (Unsecured) \| 5% Notes Due 2020
Debt
Interest rate (as a percent)	5.00%	5.00%		5.00%	5.00%
Principal amount of debt reduction through payment or repurchase			$ 28			$ 33
Repurchase value of the principal amounts			24			$ 13
Pre tax gain on extinguishment of debt			$ 4
Aggregate principal amount issued	$ 1,000
Senior Notes (Unsecured) \| 5.5% Notes Due 2021
Debt
Interest rate (as a percent)	5.50%	5.50%		5.50%	5.50%
Aggregate principal amount issued	$ 1,750
Senior Notes (Unsecured) \| 6% Notes Due 2024
Debt
Interest rate (as a percent)	6.00%	6.00%		6.00%	6.00%
Aggregate principal amount issued	$ 2,250

DEBT - Other (Details) - USD ($) $ in Millions	12 Months Ended
DEBT - Other (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Principal maturities of long-term debt
2020	$ 100
2021	1,890
2022	3,123
Thereafter	193
Total	5,306
Other Fixed-Rate and Variable-Rate Debt Disclosures
Estimated fair value of long-term debt	4,800	$ 4,900
Debt carrying value	$ 5,306	$ 5,268
Pro Forma \| Credit Agreements
Other Variable-Rate Debt Disclosures
Percentage of change in the variable interest rates	0.125%
Effect of 1/8 percent change in annual interest expense	$ 3

LEASE COMMITMENTS (Details) - USD ($) $ in Millions	12 Months Ended
LEASE COMMITMENTS (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Future net minimum operating lease payments
2018	$ 12
2019	11
2020	5
2021	4
2022	3
Thereafter	8
Total minimum lease payments	43
Rental expense for operating leases	$ 13	$ 13	$ 11

LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	Dec. 31, 2017 USD ($)
Purchase obligations
Commitments to invest for evaluation and development by the end of 2018	$ 84
Long Term Purchase and Contractual Obligation
Purchase obligations
Total purchase obligations	215
Purchase obligations, due in fiscal year 2018	129
Purchase obligations, due in fiscal year 2019	33
Purchase obligations, due in fiscal year 2020	18
Purchase obligations, due in fiscal year 2021	4
Purchase obligations, due in fiscal year 2022	$ 3

DERIVATIVES - General (Details) $ in Millions	12 Months Ended
DERIVATIVES - General (Details) $ in Millions	Dec. 31, 2017 USD ($) bbl / d item $ / bbl bbl	Dec. 31, 2016 USD ($) item	Dec. 31, 2015 USD ($) item
Derivatives
Net derivative (losses) gains \| $	$ (83)	$ (283)	$ 52
Swaps \| Q1 2018
Derivatives
Daily Volume (in Bbl) \| bbl / d	38,300
Weighted-average price (in dollars per barrel)	60.03
Swaps \| Q2 2018
Derivatives
Daily Volume (in Bbl) \| bbl / d	34,000
Weighted-average price (in dollars per barrel)	60.00
Maximum increase in volume per quarter of crude oil counter-party swaps (in barrels) \| bbl	19,000
Weighted-average price (in dollars per barrel)	60.00
Swaps \| Q3 2018
Derivatives
Daily Volume (in Bbl) \| bbl / d	19,000
Weighted-average price (in dollars per barrel)	60.13
Swaps \| Q4 2018
Derivatives
Daily Volume (in Bbl) \| bbl / d	19,000
Weighted-average price (in dollars per barrel)	60.13
Swaps \| Second half of 2018 production
Derivatives
Maximum increase in volume per quarter of crude oil counter-party swaps (in barrels) \| bbl	29,000
Weighted-average price (in dollars per barrel)	60.50
Purchased \| Puts \| Q1 2018
Derivatives
Daily Volume (in Bbl) \| bbl / d	1,200
Weighted-average price (in dollars per barrel)	45.82
Purchased \| Puts \| Q2 2018
Derivatives
Daily Volume (in Bbl) \| bbl / d	1,200
Weighted-average price (in dollars per barrel)	45.83
Purchased \| Puts \| Q3 2018
Derivatives
Daily Volume (in Bbl) \| bbl / d	1,100
Weighted-average price (in dollars per barrel)	45.83
Purchased \| Puts \| Q4 2018
Derivatives
Daily Volume (in Bbl) \| bbl / d	1,100
Weighted-average price (in dollars per barrel)	45.85
Purchased \| Puts \| FY 2019
Derivatives
Daily Volume (in Bbl) \| bbl / d	1,000
Weighted-average price (in dollars per barrel)	45.84
Purchased \| Puts \| FY 2020
Derivatives
Daily Volume (in Bbl) \| bbl / d	500
Weighted-average price (in dollars per barrel)	43.91
Sold \| Calls \| Q1 2018
Derivatives
Daily Volume (in Bbl) \| bbl / d	10,400
Weighted-average price (in dollars per barrel)	59.38
Sold \| Calls \| Q2 2018
Derivatives
Daily Volume (in Bbl) \| bbl / d	10,400
Weighted-average price (in dollars per barrel)	59.37
Sold \| Calls \| Q3 2018
Derivatives
Daily Volume (in Bbl) \| bbl / d	16,100
Weighted-average price (in dollars per barrel)	58.91
Sold \| Calls \| Q4 2018
Derivatives
Daily Volume (in Bbl) \| bbl / d	16,100
Weighted-average price (in dollars per barrel)	58.91
Sold \| Calls \| FY 2019
Derivatives
Daily Volume (in Bbl) \| bbl / d	1,000
Weighted-average price (in dollars per barrel)	60.00
Sold \| Calls \| FY 2020
Derivatives
Daily Volume (in Bbl) \| bbl / d	500
Weighted-average price (in dollars per barrel)	60.00
Sold \| Puts \| Q1 2018
Derivatives
Daily Volume (in Bbl) \| bbl / d	29,000
Weighted-average price (in dollars per barrel)	45.00
Sold \| Puts \| Q2 2018
Derivatives
Daily Volume (in Bbl) \| bbl / d	29,000
Weighted-average price (in dollars per barrel)	45.00
Sold \| Puts \| Q3 2018
Derivatives
Daily Volume (in Bbl) \| bbl / d	19,000
Weighted-average price (in dollars per barrel)	45.00
Sold \| Puts \| Q4 2018
Derivatives
Daily Volume (in Bbl) \| bbl / d	19,000
Weighted-average price (in dollars per barrel)	45.00
Fair Value Hedges
Derivatives
Number of hedges \| item	0	0	0

DERIVATIVES - Fair Value (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Fair Value of Derivatives
Net Fair Value Presented in the Balance Sheet	$ (133)
Presented in the Balance Sheet \| Commodity Contracts
Fair Value of Derivatives
Total derivatives	(133)	$ (97)
Presented in the Balance Sheet \| Commodity Contracts \| Other Current Assets
Fair Value of Derivatives
Net Fair Value Presented in the Balance Sheet	23	39
Presented in the Balance Sheet \| Commodity Contracts \| Other assets
Fair Value of Derivatives
Net Fair Value Presented in the Balance Sheet	1	19
Presented in the Balance Sheet \| Commodity Contracts \| Accrued Liabilities
Fair Value of Derivatives
Net Fair Value Presented in the Balance Sheet	(154)	(103)
Presented in the Balance Sheet \| Commodity Contracts \| Other long-term liabilities
Fair Value of Derivatives
Net Fair Value Presented in the Balance Sheet	(3)	(52)
Recognized Fair Value \| Commodity Contracts
Fair Value of Derivatives
Total derivatives	(133)	(97)
Recognized Fair Value \| Commodity Contracts \| Other Current Assets
Fair Value of Derivatives
Gross Amounts Recognized at Fair Value	39	88
Gross Amounts Offset in the Balance Sheet	(16)	(49)
Recognized Fair Value \| Commodity Contracts \| Other assets
Fair Value of Derivatives
Gross Amounts Recognized at Fair Value	1	25
Gross Amounts Offset in the Balance Sheet		(6)
Recognized Fair Value \| Commodity Contracts \| Accrued Liabilities
Fair Value of Derivatives
Gross Amounts Recognized at Fair Value	(170)	(152)
Gross Amounts Offset in the Balance Sheet	16	49
Recognized Fair Value \| Commodity Contracts \| Other long-term liabilities
Fair Value of Derivatives
Gross Amounts Recognized at Fair Value	$ (3)	(58)
Gross Amounts Offset in the Balance Sheet		$ 6

INCOME TAXES - Income and Provision for Income Tax (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income (loss) before income taxes
Income (loss) before income taxes		$ (262)	$ 201	$ (5,476)
Provision (benefit) for federal, state and local income taxes
Current United States Federal tax expense (benefit)				255
Current State and Local tax expense (benefit)				81
Current Total tax expense (benefit)				336
Deferred United States Federal tax expense (benefit)			(66)	(1,961)
Deferred State and Local tax expense			(12)	(297)
Deferred Total tax expense (benefit)	$ (78)		(78)	(2,258)
United States Federal Total tax expense (benefit)			(66)	(1,706)
State and Local Total tax expense (benefit)			(12)	(216)
Total tax expense (benefit)			$ (78)	$ (1,922)

INCOME TAXES - Income tax expense (benefit) (Details)	12 Months Ended
INCOME TAXES - Income tax expense (benefit) (Details)	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Total income tax expense (benefit) differs from the U.S. federal income tax rate to pre-tax income (loss)
U.S. federal statutory tax rate (as a percent)	35.00%	35.00%	35.00%
State income taxes, net (as a percent)	(6.00%)	6.00%	(5.00%)
Decrease in U.S. federal corporate tax rate (as a percent)	91.00%
Changes in tax attributes, net (as a percent)	(19.00%)
Cancellation of debt income, net (as a percent)		(275.00%)
Stock-based compensation, net (as a percent)	1.00%	2.00%
Valuation allowance, net (as a percent)	(33.00%)	192.00%	5.00%
Other (as a percent)	1.00%	1.00%
Effective tax rate (as a percent)		(39.00%)	35.00%

INCOME TAXES -Federal and State Valuation Allowance and Cancellation of Debt Income (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended	12 Months Ended			36 Months Ended
	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2017
Statutory tax rate (as a percent)			35.00%	35.00%	35.00%
Effect of decrease of statutory tax rate on deferred tax (as a percent)			91.00%
One-time adjustment for the remeasurement of deferred tax asset			$ 240
Increase related to EOR and marginal tax credits (as a percent)			(19.00%)
State income taxes, net (as a percent)			(6.00%)	6.00%	(5.00%)
Net change in valuation allowance (as a percent)			(33.00%)	192.00%	5.00%
Cancellation of debt income, for tax purposes	$ 1,400		$ 13	$ 1,300	$ 1,400	$ 2,700
Increase (decrease) in valuation allowance	(82)	$ 480		398
Deferred income tax benefit	(78)			(78)	$ (2,258)
Change in valuation allowance state taxes	$ 4			(14)
Income tax benefit related to change in valuation allowance on deferred tax assets				$ 384
Reduction of the federal tax basis of property, plant and equipment						1,200
Reduction in basis of state plant, property and equipment						1,900
Increase (decrease) in effective income tax rate on permanent reduction of tax liability				(275.00%)
Federal
Remaining CODI with no future tax liability						1,500
State and Local Jurisdiction
Remaining CODI with no future tax liability						$ 800

INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Deferred Tax Assets and Liabilities
Deferred Tax Assets, debt	$ 324.0	$ 693.0
Deferred Tax Assets, property, plant and equipment differences	33.0	60.0
Deferred Tax Assets, postretirement benefit accruals	33.0	45.0
Deferred Tax Assets, deferred compensation and benefits	53.0	74.0
Deferred Tax Assets, asset retirement obligations	126.0	183.0
Deferred Tax Assets, net operating loss carryforwards and credits	417.0	61.0
Deferred Tax Assets, all other	22.0	39.0
Deferred Tax Assets, subtotal	1,008.0	1,155.0
Deferred Tax Assets, valuation allowance	(706.0)	(780.0)
Deferred Tax Assets, total net deferred taxes	302.0	375.0
Deferred Tax Liabilities, property, plant and equipment differences	(261.0)	(335.0)
Deferred Tax Liabilities, all other	(41.0)	(40.0)
Deferred Tax Liabilities	(302.0)	(375.0)
Amounts due to Occidental under tax sharing agreement	0.0	$ 0.0
Minimum tax position realized upon settlement (as a percent)		50.00%
Deferred tax liability on prior period tax positions	25.0	$ 25.0
Federal
Deferred Tax Assets and Liabilities
Net operating loss carryforwards	1,100.0
Tax Credits	27.0
CALIFORNIA \| State and Local Jurisdiction
Deferred Tax Assets and Liabilities
Net operating loss carryforwards	1,900.0
Unrecognized tax benefits on net operating loss carryforward	88.0
Tax Credits	$ 8.0

STOCK COMPENSATION - General (Details) - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Employee awards
Compensation expense	$ 29	$ 34	$ 37
Unrecognized compensation expense	$ 40
Weighted-average period over which unrecognized compensation expense is expected to be recognized	2 years
General and administrative expenses
Employee awards
Compensation expense	$ 22	27	28
Production costs
Employee awards
Compensation expense	$ 7	7	9
Long-Term Incentive Plan
Employee awards
Aggregate number of shares authorized for issuance	4.7
Number of shares issued under the plan	3.6
Number of shares available for future issuance	1.1
Cash-settled Awards
Employee awards
Income tax benefit on stock-based compensation	$ 0	0	2
Cash payments	$ 6	$ 5	$ 10

STOCK COMPENSATION - Restricted Stock (Details) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Restricted Stock
Roll-forward of awards
Unvested, beginning of year (in shares)	682,000
Granted (in shares)	718,000
Vested (in shares)	(337,000)
Forfeited (in shares)	(28,000)
Unvested, end of year (in shares)	1,035,000	682,000
Restricted Stock \| Employees
Employee awards
Award vesting period	3 years
Restricted Stock \| Directors
Employee awards
Award vesting period	1 year
Roll-forward of awards
Granted (in shares)	98,000	77,000
Stock-Settled Restricted Stock
Restricted stock awards weighted-average grant-date fair value (in dollars per share)
Unvested, beginning of year, weighted-average grant-date fair value (in dollars per share)	$ 20.90
Granted, weighted-average grant-date fair value (in dollars per share)	16.20
Vested, weighted-average grant-date fair value (in dollars per share)	25.97
Forfeited, weighted-average grant-date fair value (in dollars per share)	18.41
Unvested, end of year, weighted-average grant-date fair value (in dollars per share)	$ 16.04	$ 20.90
Cash-Settled Restricted Stock
Roll-forward of awards
Unvested, beginning of year (in shares)	1,580,000
Granted (in shares)	1,184,000
Vested (in shares)	(597,000)
Forfeited (in shares)	(101,000)
Unvested, end of year (in shares)	2,066,000	1,580,000

STOCK COMPENSATION - Performance Stock Unit Awards (Details) $ / shares in Units, shares in Thousands, $ in Millions	1 Months Ended		12 Months Ended
	May 31, 2016 USD ($) person $ / shares	Aug. 31, 2015 $ / shares	Dec. 31, 2017 $ / shares shares	Dec. 31, 2015
TSR Awards \| Minimum
Employee awards
Percentage of payouts target awards				0.00%
TSR Awards \| Maximum
Employee awards
Percentage of payouts target awards				200.00%
TSR Awards \| Monte Carlo valuation method \| Certain executives
Grant-date valuations
Risk-free interest rate (as a percent)	0.77%	1.06%
Dividend yield (as a percent)		0.95%
Volatility factor (as a percent)	69.69%	43.63%
Expected life (in years)	2 years 1 month 28 days	2 years 10 months 24 days
Fair value of underlying common stock (in dollars per share)	$ 18.50	$ 42.00
PSU Awards
Employee awards
Award vesting period			3 years
Performance target period and term of awards			7 years
Percentage of PSU performance target based on specified VCI results				50.00%
Percentage of PSU performance target based on TSR relative to selected peer group				50.00%
Incremental compensation cost from modification \| $	$ 0
PSU Awards \| Maximum
Employee awards
Number of people impacted by modification \| person	50
Stock-Settled PSU awards \| Certain executives
Roll-forward of awards
Unvested, beginning of year (in shares) \| shares			459
Vested (in shares) \| shares			(72)
Forfeited (in shares) \| shares			(3)
Unvested, end of year (in shares) \| shares			384
PSU awards weighted-average grant-date fair value (in dollars per share)
Unvested, beginning of year, weighted-average grant-date fair value (in dollars per share)			$ 44.34
Vested, weighted-average grant-date fair value (in dollars per share)			73.70
Forfeited, weighted-average grant-date fair value (in dollars per share)			18.50
Unvested, end of year, weighted-average grant-date fair value (in dollars per share)			$ 39.05

STOCK COMPENSATION - Stock Options (Details) - Stock Options - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Employee awards
Award vesting period			3 years	3 years
Stock options
Award term			P7Y	P7Y
Percentage of awards vesting each year			0.33%	0.33%
Options
Beginning balance (in shares)	1,109,000
Granted (in shares)	0.000	0.000
Forfeited (in shares)	(4,000)
Ending balance (in shares)	1,105,000	1,109,000
Exercisable, end of year (in shares)	1,013,000
Weighted-Average Exercise Price
Beginning balance, weighted-average exercise price (in dollars per share)	$ 69.89
Forfeited, weighted-average exercise price (in dollars per share)	54.12
Ending balance, weighted-average exercise price (in dollars per share)	69.95	$ 69.89
Exercisable, end of year, weighted-average exercise price (in dollars per share)	72.47
Weighted-Average Grant-Date Fair Value
Beginning balance, weighted-average grant date fair value (in dollars per share)	18.42
Forfeited weighted average, grant date fair value (in dollars per share)	16.49
Ending balance, weighted-average grant date fair value (in dollars per share)	18.43	$ 18.42
Exercisable, end of year, weighted-average grant date fair value (in dollars per share)	$ 18.74
Black-Scholes valuation method
Grant-date valuations
Expected life (in years)			4 years 6 months	4 years 6 months
Expected volatility (as a percent)			44.70%	35.40%
Risk-free interest rate (as a percent)			1.56%	1.40%
Dividend yield (as a percent)			0.95%	0.50%
Weighted-Average Exercise Price
Granted weighted-average exercise price (in dollars per share)			$ 42.00	$ 81.10
Weighted-Average Grant-Date Fair Value
Weighted-average, grant date fair value of stock option awards granted (in dollars per share)			$ 15.00	$ 19.80

STOCK COMPENSATION - Employee Stock Purchase Plan (Details) - Employee Stock Purchase Plan - shares shares in Millions		12 Months Ended
	Jan. 01, 2015	Dec. 31, 2017
Employee awards
Aggregate number of shares authorized for issuance	1.0
Employee Stock Purchase Plan
Percentage of share purchase price of common stock under ESPP	85.00%
Common stock issued under employee stock purchase plan (in shares)		0.2

EQUITY (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	May 31, 2016
EQUITY
Common stock, authorized shares	200,000,000	200,000,000	200,000,000
Preferred stock, authorized shares	20,000,000	20,000,000	20,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, outstanding shares	0	0
Common stock issuances
Balance at the beginning of the year (in shares)	42,542,637	38,818,000
Issued (in shares)	359,000	3,725,000
Balance at the end of the year (in shares)	42,901,946	42,542,637
Accumulated Other Comprehensive Income (Loss)
Pension and post-retirement adjustments	$ 23	$ 14

EARNINGS PER SHARE - Calculation of EPS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Basic EPS calculation
Net (loss) income	$ (262)	$ 279	$ (3,554)
Less: net income attributable to noncontrolling interest	(4)
Net (loss) income attributable to common stock	(266)	279	(3,554)
Less: net income allocated to participating securities		(6)
Net (loss) income available to common stockholders	$ (266)	$ 273	$ (3,554)
Weighed-average common shares outstanding - basic	42.5	40.4	38.3
Basic EPS (in dollars per share)	$ (6.26)	$ 6.76	$ (92.79)
Diluted EPS calculation
Net (loss) income	$ (262)	$ 279	$ (3,554)
Less: net income attributable to noncontrolling interest	(4)
Net (loss) income attributable to common stock	(266)	279	(3,554)
Less: net income allocated to participating securities		(6)
Net (loss) income available to common stockholders	$ (266)	$ 273	$ (3,554)
Weighed-average common shares outstanding - basic	42.5	40.4	38.3
Weighted-average common shares outstanding - diluted	42.5	40.4	38.3
Diluted EPS (in dollars per share)	$ (6.26)	$ 6.76	$ (92.79)
Weighted-average anti-dilutive shares	2.1	1.7	1.3

PENSION AND POSTRETIREMENT BENEFIT PLANS - Defined Contribution Plans (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Defined Contribution Plans
Other long-term liabilities for the supplemental retirement plan	$ 32	$ 31
Expenses under provisions of defined contribution and savings plans	$ 33	$ 32	$ 39

PENSION AND POSTRETIREMENT BENEFIT PLANS - Defined Benefit Plan (Details)	Dec. 31, 2017 person
Pension Benefit
Defined Contribution Plan Disclosure [Line Items]
Number of employees accruing benefits under defined benefit plans	70

PENSION AND POSTRETIREMENT BENEFIT PLANS - Obligations and Funded Status of our Defined Benefit Plans (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Amounts recognized in the balance sheet:
Amounts recognized in accumulated other comprehensive (loss) income:	$ (23)	$ (14)
Pension Benefit
Amounts recognized in the balance sheet:
Other long-term liabilities	(19)	(26)
Amounts recognized in the consolidated balance sheets, total	(19)	(26)
Amounts recognized in accumulated other comprehensive (loss) income:	(13)	(16)
Changes in the benefit obligation:
Benefit obligation - beginning of year	70	83
Service cost-benefits earned during the period	1	1	$ 4
Interest cost on projected benefit obligation	2	3	4
Actuarial loss	7	7
Benefits paid	(15)	(24)
Benefit obligation - end of year	65	70	83
Changes in plan assets:
Fair value of plan assets - beginning of year	44	56
Actual return on plan assets	5	2
Employer contributions	12	10
Benefits paid	(15)	(24)
Fair value of plan assets - end of year	46	44	56
Unfunded status	(19)	(26)
Postretirement Benefit
Amounts recognized in the balance sheet:
Accrued liabilities	(3)	(2)
Other long-term liabilities	(90)	(75)
Amounts recognized in the consolidated balance sheets, total	(93)	(77)
Amounts recognized in accumulated other comprehensive (loss) income:	(10)	2
Changes in the benefit obligation:
Benefit obligation - beginning of year	77	71
Service cost-benefits earned during the period	3	3	5
Interest cost on projected benefit obligation	4	3	3
Actuarial loss	11	1
Benefits paid	(2)	(1)
Benefit obligation - end of year	93	77	$ 71
Changes in plan assets:
Employer contributions	2	1
Benefits paid	(2)	(1)
Unfunded status	$ (93)	$ (77)

PENSION AND POSTRETIREMENT BENEFIT PLANS - Obligations and Asset Fair Values (Details) - Pension Benefit - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Pension plans with accumulated benefit obligation in excess of plan assets
Projected Benefit Obligation	$ 65	$ 70
Accumulated Benefit Obligation	62	67
Fair Value of Plan Assets	$ 46	$ 44

PENSION AND POSTRETIREMENT BENEFIT PLANS - Cost (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Pension Benefit
Net periodic benefit costs:
Service cost-benefits earned during the period	$ 1	$ 1	$ 4
Interest cost on projected benefit obligation	2	3	4
Expected return on plan assets	(3)	(3)	(5)
Amortization of net actuarial loss	2	2	3
Settlement loss	5	8	18
Net periodic benefit cost	7	11	24
Amounts recognized in other comprehensive income (loss):
Net actuarial (loss) gain	(4)	(9)	(28)
Net prior service credit			12
Settlement cost	5	8	18
Amortization of net actuarial gain/loss	2	2	3
Total recognized in other comprehensive income (loss)	3	1	5
Amounts that will be amortized from accumulated other comprehensive income (loss) in next fiscal year
Estimated net loss that will be amortized from AOCI into net periodic benefit cost over the next fiscal year	2
Estimated prior service cost that will be amortized from AOCI into net periodic benefit cost over the next fiscal year	0
Postretirement Benefit
Net periodic benefit costs:
Service cost-benefits earned during the period	3	3	5
Interest cost on projected benefit obligation	4	3	3
Curtailment loss			5
Net periodic benefit cost	7	$ 6	13
Amounts recognized in other comprehensive income (loss):
Net actuarial (loss) gain	(12)		9
Total recognized in other comprehensive income (loss)	(12)		$ 9
Amounts that will be amortized from accumulated other comprehensive income (loss) in next fiscal year
Estimated net loss that will be amortized from AOCI into net periodic benefit cost over the next fiscal year	0
Estimated prior service cost that will be amortized from AOCI into net periodic benefit cost over the next fiscal year	$ 0

PENSION AND POSTRETIREMENT BENEFIT PLANS - Assumptions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Pension Benefit
Benefit Obligation Assumptions:
Discount rate (as a percent)	3.53%	3.88%
Rate of compensation increase (as a percent)	4.00%	4.00%
Net Periodic Benefit Cost Assumptions:
Discount rate (as a percent)	3.88%	3.99%
Assumed long-term rate of return on assets (as a percent)	6.50%	6.50%
Rate of compensation increase (as a percent)	4.00%	4.00%
Postretirement Benefit
Benefit Obligation Assumptions:
Discount rate (as a percent)	3.87%	4.58%
Net Periodic Benefit Cost Assumptions:
Discount rate (as a percent)	4.58%	4.81%
Assumed health care cost trend rates
Decrease due to changes in mortality assumptions	$ 1
U.S. Consumer Price Index (CPI) increase (as a percent)	1.97%	1.97%
Effect of 1-percent increase or a 1-percent decrease in these assumed health care cost trend rates
Effect of 1-percent increase in assumed health care cost trend rates on postretirement benefit obligation	$ 5
Effect of 1-percent decrease in assumed health care cost trend rates on postretirement benefit obligation	$ 4
Union employees \| Postretirement Benefit
Assumed health care cost trend rates
Annual decrease in healthcare cost until 2022 (as a percent)	0.25%
Projected healthcare cost rate in 2018 (as a percent)	7.00%
Projected healthcare cost rate in 2022 (as a percent)	6.00%
Annual decrease in healthcare cost until from 2022 to 2025 (as a percent)	0.50%
Projected ultimate health care cost trend rates (as a percent)	4.50%
Year the projected health care cost trend rate reaches ultimate trend rate	2025

PENSION AND POSTRETIREMENT BENEFIT PLANS - Plan Assets (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Asset Class:
Cash equivalents	$ 3	$ 3
Pension Benefit
Asset Class:
Fair value of plan assets	46	44	$ 56
Pension Plan Assets - Gross \| Pension Benefit
Asset Class:
Fair value of plan assets	$ 46	$ 44
Equity securities
Defined Benefit Plan Disclosure
Target allocation of plan assets (as a percent)	65.00%	65.00%
Fixed Income \| Pension Benefit
Asset Class:
Fair value of plan assets	$ 7	$ 9
U.S. equity \| Pension Benefit
Asset Class:
Fair value of plan assets	9	10
International equity \| Pension Benefit
Asset Class:
Fair value of plan assets	5	6
Bond funds \| Pension Benefit
Asset Class:
Fair value of plan assets	6	4
Blend funds \| Pension Benefit
Asset Class:
Fair value of plan assets	3	2
Value funds \| Pension Benefit
Asset Class:
Fair value of plan assets	3	2
Growth funds \| Pension Benefit
Asset Class:
Fair value of plan assets	3	2
Guaranteed deposit account \| Pension Benefit
Asset Class:
Fair value of plan assets	$ 7	$ 6
Debt securities
Defined Benefit Plan Disclosure
Target allocation of plan assets (as a percent)	35.00%	35.00%
Level 1
Asset Class:
Cash equivalents	$ 3	$ 3
Level 1 \| Pension Plan Assets - Gross \| Pension Benefit
Asset Class:
Fair value of plan assets	18	13
Level 1 \| Bond funds \| Pension Benefit
Asset Class:
Fair value of plan assets	6	4
Level 1 \| Blend funds \| Pension Benefit
Asset Class:
Fair value of plan assets	3	2
Level 1 \| Value funds \| Pension Benefit
Asset Class:
Fair value of plan assets	3	2
Level 1 \| Growth funds \| Pension Benefit
Asset Class:
Fair value of plan assets	3	2
Level 2 \| Pension Plan Assets - Gross \| Pension Benefit
Asset Class:
Fair value of plan assets	21	25
Level 2 \| Fixed Income \| Pension Benefit
Asset Class:
Fair value of plan assets	7	9
Level 2 \| U.S. equity \| Pension Benefit
Asset Class:
Fair value of plan assets	9	10
Level 2 \| International equity \| Pension Benefit
Asset Class:
Fair value of plan assets	5	6
Level 3 \| Pension Plan Assets - Gross \| Pension Benefit
Asset Class:
Fair value of plan assets	7	6
Level 3 \| Guaranteed deposit account \| Pension Benefit
Asset Class:
Fair value of plan assets	$ 7	$ 6

PENSION AND POSTRETIREMENT BENEFIT PLANS - Benefit Payments (Details) $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($)
Pension Benefit
Defined Benefit Plan Disclosure
Expected contribution in 2018	$ 4
Estimated future undiscounted benefit payments
2018	21
2019	5
2020	5
2021	5
2022	4
2023 - 2027	16
Postretirement Benefit
Defined Benefit Plan Disclosure
Expected contribution in 2018	3
Estimated future undiscounted benefit payments
2018	3
2019	3
2020	4
2021	4
2022	4
2023 - 2027	$ 23

SUBSEQUENT EVENT (Details) shares in Thousands, $ in Millions	1 Months Ended	12 Months Ended
	Feb. 28, 2018 USD ($) MW shares MMcf	Dec. 31, 2017 USD ($) shares	Dec. 31, 2016 shares
SUBSEQUENT EVENT
Net proceeds from the transaction		$ 98
Common stock shares issued (in shares) \| shares		359	3,725
SUBSEQUENT EVENT \| Ares JV
SUBSEQUENT EVENT
Net proceeds from the transaction	$ 747
SUBSEQUENT EVENT \| Ares JV \| Private placement
SUBSEQUENT EVENT
Common stock shares issued (in shares) \| shares	2,300
Aggregate purchase price	$ 50
SUBSEQUENT EVENT \| Class A common interest \| Ares JV
SUBSEQUENT EVENT
Percentage of common interest held by CRC	50.00%
SUBSEQUENT EVENT \| Class A common interest \| ECR Corporate Holdings L.P. \| Ares JV
SUBSEQUENT EVENT
Percentage of common interest held by non-controlling interests	50.00%
SUBSEQUENT EVENT \| Class B preferred interest \| ECR Corporate Holdings L.P. \| Ares JV
SUBSEQUENT EVENT
Percentage of common interest held by non-controlling interests	100.00%
SUBSEQUENT EVENT \| Class C common interest \| Ares JV
SUBSEQUENT EVENT
Percentage of common interest held by CRC	95.25%
SUBSEQUENT EVENT \| Class C common interest \| ECR Corporate Holdings L.P. \| Ares JV
SUBSEQUENT EVENT
Percentage of common interest held by non-controlling interests	4.75%
Natural gas power and Gas processing plants \| SUBSEQUENT EVENT \| Ares JV
SUBSEQUENT EVENT
Power plant capacity \| MW	550
Gas processing plant capacity \| MMcf	200
2014 Revolving Credit Facility (Shared First Priority Lien) \| SUBSEQUENT EVENT \| Ares JV
SUBSEQUENT EVENT
Payments on long-term debt	$ 297

CONDENSED CONSOLIDATING FINANCIAL INFORMATION - Balance sheets (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Assets
Total current assets	$ 483	$ 425
Total property, plant, equipment, net	5,696	5,885
Other assets	28	44
TOTAL ASSETS	6,207	6,354
Total current liabilities	732	726
Long-Term Debt - Principal Amount	5,306	5,168
Deferred gain and issuance costs, net	287	397
Other long-term liabilities	602	620
Total equity	(720)	(557)	$ (916)	$ 2,611
TOTAL LIABILITIES AND EQUITY	6,207	6,354
Eliminations
Assets
Total current assets	(6)
Investments in consolidated subsidiaries	(5,711)	(6,250)
TOTAL ASSETS	(5,717)	(6,250)
Total current liabilities	(6)
Total equity	(5,711)	(6,250)
TOTAL LIABILITIES AND EQUITY	$ (5,717)	(6,250)
Maximum
Total consolidated assets held by Non-Guarantor Subsidiaries (as a percent)	1.00%
Parent \| Reportable Legal Entity
Assets
Total current assets	$ 13	7
Total property, plant, equipment, net	24	25
Investments in consolidated subsidiaries	5,105	5,713
TOTAL ASSETS	5,142	5,745
Total current liabilities	122	221
Long-Term Debt - Principal Amount	5,306	5,168
Deferred gain and issuance costs, net	287	397
Other long-term liabilities	154	132
Amounts due to (from) affiliates	87	384
Total equity	(814)	(557)
TOTAL LIABILITIES AND EQUITY	5,142	5,745
Combined Guarantor Subsidiaries \| Reportable Legal Entity
Assets
Total current assets	464	418
Total property, plant, equipment, net	5,580	5,856
Investments in consolidated subsidiaries	606	537
Other assets	27	44
TOTAL ASSETS	6,677	6,855
Total current liabilities	613	505
Other long-term liabilities	445	487
Amounts due to (from) affiliates	(87)	(384)
Total equity	5,706	6,247
TOTAL LIABILITIES AND EQUITY	6,677	6,855
Combined Non-Guarantor Subsidiaries \| Reportable Legal Entity
Assets
Total current assets	12
Total property, plant, equipment, net	92	4
Other assets	1
TOTAL ASSETS	105	4
Total current liabilities	3
Other long-term liabilities	3	1
Total equity	99	3
TOTAL LIABILITIES AND EQUITY	$ 105	$ 4

CONDENSED CONSOLIDATING FINANCIAL INFORMATION - Statements of Operations (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCK
Total revenues and other	$ 2,006	$ 1,547	$ 2,403
Total costs and other	1,943	1,853	7,545
Non-operating (loss) income	(325)	507	(334)
Income tax benefit		78	1,922
NET (LOSS) INCOME	(262)	279	(3,554)
Net income attributable to noncontrolling interest	(4)
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCK	(266)	279	(3,554)
Reportable Legal Entity \| Parent
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCK
Total revenues and other	42
Total costs and other	230	205	302
Non-operating (loss) income	(349)	475	(343)
Income tax benefit		78	1,922
NET (LOSS) INCOME	(537)
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCK	(537)	348	1,277
Reportable Legal Entity \| Combined Guarantor Subsidiaries
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCK
Total revenues and other	1,947	1,543	2,400
Total costs and other	1,700	1,644	7,236
Non-operating (loss) income	24	32	9
NET (LOSS) INCOME	271
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCK	271	(69)	(4,827)
Reportable Legal Entity \| Combined Non-Guarantor Subsidiaries
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCK
Total revenues and other	17	4	3
Total costs and other	13	$ 4	7
NET (LOSS) INCOME	4
Net income attributable to noncontrolling interest	$ (4)
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCK			$ (4)

CONDENSED CONSOLIDATING FINANCIAL INFORMATION - Statements of Cash Flows (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Net cash (used) provided by operating activities	$ 248	$ 130	$ 403
Net cash used in investing activities	(313)	(61)	(757)
Net cash provided (used) by financing activities	73	(69)	352
Increase (decrease) in cash and cash equivalents	8		(2)
Cash and cash equivalents-beginning of period	12	12	14
Cash and cash equivalents-end of period	20	12	12
Parent \| Reportable Legal Entity
Net cash (used) provided by operating activities	(481)	(598)	(1,676)
Net cash used in investing activities	(4)	(1)	(24)
Net cash provided (used) by financing activities	492	599	1,700
Increase (decrease) in cash and cash equivalents	7
Cash and cash equivalents-end of period	7
Combined Guarantor Subsidiaries \| Reportable Legal Entity
Net cash (used) provided by operating activities	718	727	2,086
Net cash used in investing activities	(212)	(60)	(733)
Net cash provided (used) by financing activities	(510)	(667)	(1,355)
Increase (decrease) in cash and cash equivalents	(4)		(2)
Cash and cash equivalents-beginning of period	12	12	14
Cash and cash equivalents-end of period	8	12	12
Combined Non-Guarantor Subsidiaries \| Reportable Legal Entity
Net cash (used) provided by operating activities	11	1	(7)
Net cash used in investing activities	(97)
Net cash provided (used) by financing activities	91	$ (1)	$ 7
Increase (decrease) in cash and cash equivalents	5
Cash and cash equivalents-end of period	$ 5

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
VALUATION AND QUALIFYING ACCOUNTS
Federal benefit for the state-related portion of the deferred tax valuation allowance			$ 88
Deferred tax valuation allowance
VALUATION AND QUALIFYING ACCOUNTS
Balance at Beginning of Period	$ 780	$ 382
Charged (Credited) to Costs and Expenses	(78)	398	294
Charged to Other Accounts	4		88
Balance at End of Period	706	780	382
Other asset valuation allowance
VALUATION AND QUALIFYING ACCOUNTS
Balance at Beginning of Period	56	68	10
Charged (Credited) to Costs and Expenses	(12)	(12)	58
Balance at End of Period	44	56	68
Environmental reserves
VALUATION AND QUALIFYING ACCOUNTS
Balance at Beginning of Period	6	7	8
Charged (Credited) to Costs and Expenses	4
Deductions	(4)	(1)	(1)
Balance at End of Period	$ 6	$ 6	$ 7