View Filing Data

(in millions)

Materials and supplies

Finished goods

Print Document View Excel Document

Document and Entity Information - USD ($) $ in Billions	12 Months Ended
Document and Entity Information - USD ($) $ in Billions	Dec. 31, 2018	Jan. 31, 2019	Jun. 30, 2018
Document and Entity Information
Entity Registrant Name	California Resources Corp
Entity Central Index Key	0001609253
Document Type	10-K
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 2.2
Entity Common Stock, Shares Outstanding		48,650,420

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
CURRENT ASSETS
Cash	$ 17	$ 20
Trade receivables	299	277
Inventories	69	56
Other current assets, net	255	130
Total current assets	640	483
PROPERTY, PLANT AND EQUIPMENT	22,523	21,260
Accumulated depreciation, depletion and amortization	(16,068)	(15,564)
Total property, plant and equipment, net	6,455	5,696
OTHER ASSETS	63	28
TOTAL ASSETS	7,158	6,207
CURRENT LIABILITIES
Accounts payable	390	257
Accrued liabilities	217	475
Total current liabilities	607	732
LONG-TERM DEBT	5,251	5,306
DEFERRED GAIN AND ISSUANCE COSTS, NET	216	287
OTHER LONG-TERM LIABILITIES	575	602
MEZZANINE EQUITY
Redeemable noncontrolling interests	756
EQUITY
Preferred stock (20 million shares authorized at $0.01 par value) no shares outstanding at December 31, 2018 or 2017
Common stock (200 million shares authorized at $0.01 par value) outstanding shares (2018 - 48,650,420 shares and 2017 - 42,901,946 shares)
Additional paid-in capital	4,987	4,879
Accumulated deficit	(5,342)	(5,670)
Accumulated other comprehensive loss	(6)	(23)
Total equity attributable to common stock	(361)	(814)
Noncontrolling interests	114	94
Total equity	(247)	(720)
TOTAL LIABILITIES AND EQUITY	$ 7,158	$ 6,207

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2018	Dec. 31, 2017	May 31, 2016
Condensed 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	48,650,420	42,901,946

Condensed Consolidated Statements of Operations - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
REVENUES AND OTHER
Oil and gas sales	$ 2,590	$ 1,936	$ 1,621
Net derivative gain (loss) from commodity contracts	1	(90)	(206)
Other revenue	473	160	132
Total revenues and other	3,064	2,006	1,547
COSTS AND OTHER
Production costs	912	876	800
General and administrative expenses	299	249	235
Depreciation, depletion and amortization	502	544	559
Taxes other than on income	149	136	144
Exploration expense	34	22	23
Other expenses, net	399	106	79
Total costs and other	2,295	1,933	1,840
OPERATING INCOME (LOSS)	769	73	(293)
NON-OPERATING (LOSS) INCOME
Interest and debt expense, net	(379)	(343)	(328)
Net gain on early extinguishment of debt	57	4	805
Gain on asset divestitures	5	21	30
Other non-operating expenses	(23)	(17)	(13)
INCOME (LOSS) BEFORE INCOME TAXES	429	(262)	201
Income tax benefit			78
NET INCOME (LOSS)	429	(262)	279
Net income attributable to noncontrolling interests	(101)	(4)
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK	$ 328	$ (266)	$ 279
Net income (loss) attributable to common stock per share
Basic (in dollars per share)	$ 6.77	$ (6.26)	$ 6.76
Diluted (in dollars per share)	$ 6.77	$ (6.26)	$ 6.76

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

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Condensed Consolidated Statements of Comprehensive Income

Net income (loss)

$ 429

$ (262)

$ 279

Other comprehensive income (loss) items:

Reclassification of unrealized gains (losses) on pension and postretirement losses

^[1]

(14)

(9)

Reclassification of realized losses on pension and postretirement to income

^[1]

Total other comprehensive income (loss)

(9)

Comprehensive income attributable to noncontrolling interests

(101)

(4)

Comprehensive income (loss) attributable to common stock

$ 345

$ (275)

$ 280

[1]	No associated tax for 2018, 2017 and 2016. See Note 14 Pension and Postretirement Benefit Plans for additional information.

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=114867106&loc=SL7669619-108580

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (a)(1)
-URI http://asc.fasb.org/extlink&oid=109239629&loc=SL4573702-111684

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1B
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=114867106&loc=SL7669625-108580

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (c)(1)
-URI http://asc.fasb.org/extlink&oid=109239629&loc=SL4573702-111684

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8736-108599

Reference 6: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4J
-URI http://asc.fasb.org/extlink&oid=84234705&loc=SL4591551-111686

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=109223946&loc=d3e3000-108585

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 45
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=108774443&loc=SL4569616-111683

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4K
-URI http://asc.fasb.org/extlink&oid=84234705&loc=SL4591552-111686

+ Details

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Condensed Consolidated Statements of Comprehensive Income
Pension and postretirement losses, tax	$ 0	$ 0	$ 0

Condensed Consolidated Statements of Equity - USD ($)
$ in Millions

Equity Attributable to Common Stock

Additional Paid-in Capital

Accumulated (Deficit) Earnings

Accumulated Other Comprehensive (Loss) Income

Equity Attributable to Noncontrolling Interest

Total

Beginning balance at Dec. 31, 2015

$ (916)

$ 4,782

$ (5,683)

$ (15)

$ (916)

Increase (decrease) in Equity

Net (loss) income

279

Other comprehensive income (loss)

Share-based compensation, net

Ending balance at Dec. 31, 2016

(557)

4,861

(5,404)

(14)

(557)

Increase (decrease) in Equity

Net (loss) income

(266)

$ 4

(262)

Contributions from noncontrolling interest holders, net

Distributions paid to noncontrolling interest holders

(8)

Other comprehensive income (loss)

(9)

Share-based compensation, net

Ending balance at Dec. 31, 2017

(814)

4,879

(5,670)

(23)

(720)

Increase (decrease) in Equity

Net (loss) income

328

330

Contributions from noncontrolling interest holders, net

Distributions paid to noncontrolling interest holders

(64)

Issuance of common stock

^[1]

101

Other comprehensive income (loss)

Share-based compensation, net

Ending balance at Dec. 31, 2018

$ (361)

$ 4,987

$ (5,342)

$ (6)

$ 114

$ (247)

[1]

Includes 2.85 million shares of common stock (valued at $51 million at issuance) issued to Chevron in connection with our acquisition of Chevron's working interest in Elk Hills unit and 2.3 million shares of common stock (valued at $50 million at issuance) issued to an Ares-led investor group. See Note 4 Acquisitions and Divestitures and Note 5 Joint Ventures for more information.

Condensed Consolidated Statements of Equity (Parenthetical)
shares in Thousands, $ in Millions

12 Months Ended

Dec. 31, 2018

USD ($)

Value of common stock at issuance

$ 101

^[1]

Chevron

Common stock shares issued (in shares) | shares

2,850

Value of common stock at issuance

$ 51

Ares-led investor group | Ares JV

Common stock shares issued (in shares) | shares

2,300

Value of common stock at issuance

$ 50

[1]

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
CASH FLOW FROM OPERATING ACTIVITIES
Net income (loss)	$ 429	$ (262)	$ 279
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization	502	544	559
Deferred income tax benefit			(78)
Net derivative (gain) loss from commodity contracts	(1)	90	206
Net (payments) proceeds on settled commodity derivatives	(228)	(7)	77
Net gain on early extinguishment of debt	(57)	(4)	(805)
Amortization of deferred gain	(76)	(74)	(71)
Gain on asset divestitures	(5)	(21)	(30)
Other non-cash charges to income, net	97	77	101
Dry hole expenses	16	2	3
Changes in operating assets and liabilities, net:
Increase in trade receivables	(23)	(45)	(33)
(Increase) decrease in inventories	(6)	2
(Increase) decrease in other current assets	(9)	(2)	25
Decrease in accounts payable and accrued liabilities	(178)	(52)	(103)
Net cash provided by operating activities	461	248	130
CASH FLOW FROM INVESTING ACTIVITIES
Capital investments	(690)	(371)	(75)
Changes in capital investment accruals	69	27	(6)
Asset divestitures	18	33	20
Acquisitions	(547)
Other	(6)	(2)
Net cash used in investing activities	(1,156)	(313)	(61)
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from 2014 Revolving Credit Facility	2,823	1,696	2,218
Repayments of 2014 Revolving Credit Facility	(2,646)	(2,180)	(2,110)
Proceeds from 2016 Credit Agreement			990
Proceeds from 2017 Term Loan		1,274
Payments on 2014 Term Loan		(650)	(350)
Debt repurchases	(199)	(116)	(770)
Debt transaction costs	(4)	(42)	(51)
Contributions from noncontrolling interest holders, net	796	98
Distributions paid to noncontrolling interest holders	(121)	(8)
Issuance of common stock	54	3	4
Shares canceled for taxes	(11)	(2)
Net cash provided (used) by financing activities	692	73	(69)
(Decrease) increase in cash	(3)	8
Cash-beginning of period	20	12	12
Cash-end of period	$ 17	$ 20	$ 12

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER

12 Months Ended

Dec. 31, 2018

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER

NOTE 1 NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER

Nature of Business

We are an independent oil and natural gas exploration and production company operating properties exclusively 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 (the Spin-off). We became an independent, publicly traded company 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, all references to ‘‘CRC,’’ the ‘‘Company,’’ ‘‘we,’’ ‘‘us’’ and ‘‘our’’ refer to California Resources Corporation and its subsidiaries, and 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 our consolidated balance sheets, statements of operations and cash flows.

Certain prior year amounts have been reclassified to conform to the 2018 presentation. On the statements of operations for 2017 and 2016, we reclassified interest cost, expected return on assets, amortization of prior service costs and settlements/curtailments, all associated with defined benefit pension plans, from general and administrative expenses to other non-operating expenses in accordance with new accounting rules. See Note 2 Accounting and Disclosure Changes for more information.

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.

Risks and Uncertainties

The process of preparing financial statements in conformity with United States (U.S.) generally accepted accounting principles (GAAP) 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 year ended December 31, 2018, our principal customers, Phillips 66 Company and Valero Marketing & Supply Company, each accounted for at least 10%, and, collectively, 43% of our oil and gas sales and other revenue. For the years ended December 31, 2017 and 2016, our principal customers, 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 oil and gas sales and other 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 that, 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 commodity prices typically result in additional reserves becoming economic and lower commodity 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, 2018, the net capitalized costs attributable to unproved properties were approximately $284 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 depreciation, depletion and amortization (DD&A) until they are classified as proved properties.

Impairments of unproved properties are primarily based on qualitative factors including intent of property development, 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 capitalized development and successful exploration costs over proved developed reserves. Our gas 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 of up 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 of up to 20 years.

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.

Asset Retirement Obligations

We recognize the fair value of asset retirement obligations (ARO) 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 fair value of the retirement obligation is estimated based on future retirement cost estimates and incorporates many assumptions such as time of abandonment, current regulatory requirements, 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 property, plant and equipment (PP&E) balances. If the estimated future cost or timing of cash flow changes, we record an adjustment to both the ARO 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 ARO 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 would perform the ARO work and, therefore, we cannot reasonably estimate the fair value of these liabilities. We will recognize ARO 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 ARO, of which $402 million and $403 million is included in other long-term liabilities, with the remaining current portion in accrued liabilities at December 31, 2018 and 2017, respectively.


	For the years ended
	December 31,
	2018		2017
	(in millions)
Beginning balance	$	422	$	411
Liabilities incurred, capitalized to PP&E		4		2
Liabilities settled and paid		(15)		(9)
Accretion expense		27		25
Acquisitions, capitalized to PP&E(a)		8		—
Dispositions and other, reduction to PP&E		(2)		—
Revisions in estimated cash flows, changes in PP&E		(11)		(7)
Ending balance	$	433	$	422

(a)

Includes $7 million related to the Elk Hills transaction and $1 million related to other acquisitions in 2018.

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 and interest-rate derivatives are carried at fair value. For commodity derivatives, we utilize the mid-point between bid and ask prices for valuing these instruments. For interest-rate derivatives, we utilize the LIBOR forward curve. 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 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.

Our PP&E 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 in accordance with ASC 606, Revenue from Contracts with Customers, which is more fully described in Note 15 Revenue Recognition.

Inventories

Materials and supplies are valued at weighted-average cost and are reviewed periodically for obsolescence. Finished goods predominantly comprise oil and natural gas liquids (NGLs), which are valued at the lower of cost or market. Inventories as of December 31, 2018 and 2017 consisted of the following:

Derivative Instruments

We apply hedge accounting when transactions meet specified criteria for cash-flow hedge treatment and management elects and documents such treatment. 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 accounted for as cash-flow or fair-value hedges.

Our derivative contracts are carried at fair value and on a net basis when a legal right of offset exists with the same counterparty. Since we did not apply hedge accounting for any of the periods presented, we recognize any fair value gains or losses on a net basis, over the remaining term of the instrument, in our consolidated statement of operations.

Stock-Based Incentive Plans

We have stockholder-approved stock-based incentive plans for certain employees and directors that are more fully described in Note 11 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, which participate at the same rate as common stock.

Under the two-class method, net income allocated to participating securities is 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 15% of our production for the year ended December 31, 2018.

In line with industry practice for reporting PSC-type contracts, we report 100% of operating costs under such contracts 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 PSC-type contracts. This difference in reporting full operating costs but only our net share of production equally inflates our revenue and operating costs per barrel and has no effect on our net results.

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 consolidated 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.

Cash

Cash at December 31, 2018 and 2017 included approximately $2 million and $5 million, respectively, that is restricted under one of our joint venture (JV) agreements.

Other Current Assets

Other current assets, net as of December 31, 2018 and 2017 consisted of the following:


	2018		2017
	(in millions)
Derivative assets	$	168	$	23
Amounts due from joint interest partners		68		76
Prepaid expenses		16		19
Assets held for sale		—		12
Other		3		—
Other current assets, net	$	255	$	130

Accrued Liabilities

Accrued liabilities as of December 31, 2018 and 2017 consisted of the following:


	2018		2017
	(in millions)
Accrued employee-related costs	$	109	$	86
Accrued taxes other than on income		38		130
Current portion of asset retirement obligation		31		19
Accrued interest		15		23
Derivative liabilities		3		154
Other		21		63
Accrued liabilities	$	217	$	475

Supplemental Cash Flow Information

We did not make any U.S. federal and state income tax payments in 2018, 2017 or 2016. Interest paid, net of capitalized amounts, totaled approximately $433 million, $393 million and $382 million for the years ended December 31, 2018, 2017 and 2016, respectively. Non-cash financing activities in 2018 included 2.85 million shares of common stock (valued at $51 million) issued in connection with the Elk Hills transaction. See Note 4 Acquisitions and Divestitures for more on the Elk Hills transaction.

ACCOUNTING AND DISCLOSURE CHANGES	12 Months Ended
ACCOUNTING AND DISCLOSURE CHANGES	Dec. 31, 2018
ACCOUNTING AND DISCLOSURE CHANGES
ACCOUNTING AND DISCLOSURE CHANGES	NOTE 2 ACCOUNTING AND DISCLOSURE CHANGES Recently Issued Accounting and Disclosure Changes In February 2016, the Financial Accounting Standards Board (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. In January 2018, the FASB issued an update to the lease standard providing an optional transition approach for land easements allowing entities to evaluate only new or modified land easements. In July 2018, the FASB provided optional transition relief allowing a prospective approach in applying the new rules by not adjusting comparative period financial information for the effects of the new rules and not requiring disclosures for periods before the effective date. In December 2018, the FASB issued an update to the lease standard for lessors regarding certain tax and other costs and the reporting of these costs against rental income. These rules will be effective for us on January 1, 2019, which we expect to apply prospectively. We are currently evaluating the impact of this accounting standard on our financial statements. We expect the adoption of these rules to increase both our assets and liabilities by an equal amount, which we do not expect to be material to our consolidated balance sheets. Recently Adopted Accounting and Disclosure Changes In May 2014, the FASB issued rules on the recognition of revenue that created Topic 606 (ASC 606), which superseded existing revenue recognition requirements reported in accordance with GAAP, and required an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. The new rules required certain sales-related costs to be reported as other expense as opposed to being netted against oil and gas sales or other revenue. We adopted ASC 606 on January 1, 2018 using the modified retrospective method with no adjustment to opening retained earnings. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect prior to adoption. See Note 15 Revenue Recognition for more information. 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 to assets. Under the new rules, employers are required to 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. We adopted these rules in the first quarter of 2018 with no significant impact on our financial statements. The interest cost, expected return on assets, amortization of prior service costs and settlements/curtailments have been reclassified from general and administrative expense to other non-operating expenses. We elected to use the amounts disclosed for the various components of net periodic benefit cost in the pension and postretirement benefit plans footnote as the basis of the retrospective application. In August 2018, the FASB issued rules to amend the guidance on defined benefit pension and postretirement plans. The rules add, remove and clarify specific requirements of disclosures in the notes to financial statements. We early adopted these rules retrospectively in 2018 with changes reflected in Note 14 Pension and Postretirement Benefit Plans. 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. We adopted these rules in the first quarter of 2018 with no impact on our financial statements. Components of accumulated other comprehensive income (AOCI) are recorded net of related taxes determined using prevailing rates when the components are initially recorded. When the U.S. federal corporate tax rates changed in December 2017, a difference arose between tax amounts reported in AOCI as compared to the expected tax amount using the newly enacted corporate tax rates. Our accounting policy is to remove such residual tax differences from AOCI when the related components are ultimately settled. In February 2018, the FASB issued rules that give entities the option to reclassify this residual difference from AOCI to retained earnings. We early adopted this accounting standard in the first quarter of 2018 without reclassifying this residual tax difference to retained earnings.

PROPERTY, PLANT AND EQUIPMENT

12 Months Ended

Dec. 31, 2018

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT

NOTE 3 PROPERTY, PLANT AND EQUIPMENT

The carrying value of our PP&E represents the cost incurred to acquire or develop the asset, including any ARO and capitalized interest, net of accumulated DD&A and any impairment charges. For assets acquired, initial PP&E cost is based on fair values at the acquisition date. ARO are capitalized and recovered over the lives of the related assets. No impairment charges were recorded in 2018, 2017 or 2016.

Property, plant and equipment, net is comprised of the following:


	December 31,
	2018		2017
	(in millions)
Proved oil and gas properties	$	20,882	$	19,664
Unproved oil and gas properties		1,103		1,111
Facilities and other		538		485
Total property, plant and equipment		22,523		21,260
Accumulated depreciation, depletion and amortization		(16,068)		(15,564)
Total property, plant and equipment, net	$	6,455	$	5,696

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


	2018		2017		2016
	(in millions)
Balance, beginning of year	$	4	$	4	$	6
Additions to capitalized exploratory well costs		19		4		1
Reclassification to property, plant and equipment		(2)		(2)		—
Charged to expense		(16)		(2)		(3)
Balance, end of year	$	5	$	4	$	4

ACQUISITIONS AND DIVESTITURES

12 Months Ended

Dec. 31, 2018

ACQUISITIONS AND DIVESTITURES

ACQUISITIONS AND DIVESTITURES

NOTE 4 ACQUISITIONS AND DIVESTITURES

Acquisitions

In April 2018, we acquired the remaining working, surface and mineral interests in the 47,000-acre Elk Hills unit from Chevron U.S.A., Inc. (Chevron) (the Elk Hills transaction) for approximately $518 million, including $7 million of liabilities assumed relating to ARO. We accounted for the Elk Hills transaction as a business combination. After the transaction, we hold all of the working, surface and mineral interests in the former Elk Hills unit. The effective date of the transaction was April 1, 2018.

As part of the Elk Hills transaction, Chevron reduced its royalty interest in one of our oil and gas properties by half and extended the time frame to invest the remainder of our capital commitment on that property by two years, to the end of 2020. As of December 31, 2018, the remaining commitment was approximately $17 million. In addition, the parties mutually agreed to release each other from pending claims with respect to the former Elk Hills unit.

The following table summarizes the total consideration, including customary closing adjustments, and the allocation of the consideration based on the fair value of the assets acquired as of the acquisition date (in millions):


Consideration:
Cash	$	460
Common stock issued (2.85 million shares)		51
Liabilities assumed		7
	$	518

Identifiable assets acquired:
Proved properties	$	435
Other property and equipment		77
Materials and supplies		6
	$	518

The results of operations for the Elk Hills transaction were included in our consolidated financial statements subsequent to the closing date.

Also in April 2018, we acquired an office building and land in Bakersfield, California for $48.4 million, which we believe is significantly less than the estimated replacement value of the property and the land. We have approximately 500 employees who have been using eight different locations in Bakersfield across multiple leases. We expect that the new building will create significant value by bringing our Bakersfield employees together into a single location, which will increase the efficiency, effectiveness and collaboration of these employees. This building was the only available office space in the Bakersfield area large enough to allow us to consolidate our workforce in a single location. For the initial eight months in 2018, a former owner of the building occupied most of the space as a tenant, from which we generated approximately $4 million in rental income. In December 2018, this tenant downsized the space they are leasing through December 2022, with a corresponding reduction in rent. The vacated space not used by us will be available to lease to other tenants to generate additional income. In addition, the unimproved land may be monetized in the future. Approximately $6 million of the purchase price was allocated to the in-place leases, which is included in other assets and is being amortized into other expenses, net.

Additionally, we had several other upstream acquisitions totaling approximately $39 million in 2018, excluding assumed ARO liabilities of $1 million.

Divestitures

In 2018, we divested non-core assets resulting in $18 million of proceeds and a $5 million gain. In 2017, we divested non-core assets resulting in $33 million of proceeds and a $21 million gain. In 2016, we divested non-core assets resulting in $20 million of proceeds and a $30 million gain.

JOINT VENTURES

12 Months Ended

Dec. 31, 2018

JOINT VENTURES

JOINT VENTURES

NOTE 5 JOINT VENTURES

Noncontrolling Interests

The following table presents the changes in noncontrolling interests by JV partners (described in greater detail below), reported in equity and mezzanine equity on the consolidated balance sheets, for the years ended December 31, 2018 and 2017:


							Mezzanine
							Equity -
							Redeemable
	Equity Attributable to Noncontrolling						Noncontrolling
	Interest						Interest
	Ares JV		BSP JV		Total		Ares JV
	(in millions)
Balance, December 31, 2017	$	—	$	94	$	94	$	—
Net (loss) income attributable to noncontrolling interests		(11)		13		2		99
Contributions from noncontrolling interest holders, net		33		49		82		714
Distributions to noncontrolling interest holders		(7)		(57)		(64)		(57)
Balance, December 31, 2018	$	15	$	99	$	114	$	756

Ares Management L.P. (Ares)

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 (a 550-megawatt natural gas fired power plant) and a 200 million cubic foot per day cryogenic gas processing plant. 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. We received $750 million in proceeds upon entering into the Ares JV, before $3 million of transaction costs.

The Class A common and Class B preferred interests held by ECR are reported as redeemable noncontrolling interest in mezzanine equity due to an embedded optional redemption feature. The Class C common interest held by ECR is reported in equity on our consolidated balance sheets.

The Ares JV is required to distribute each month its excess cash flow over its working capital requirements first to the Class B holders and then to the Class C common interests, on a pro-rata basis. The Class B preferred interest has a deferred payment feature whereby a portion of the monthly distributions may be deferred for the first three years to the fourth and fifth year. The deferred amounts accrue an additional return. Distributions to the Class B preferred interest holders are reported as a reduction to mezzanine equity on our consolidated balance sheets.

We can cause the Ares JV to redeem ECR's Class A and Class B interests, in whole, but not in part, at any time by paying $750 million for the Class B interest and $60 million for the Class A interest, plus any previously accrued but unpaid preferred distributions and a make-whole payment if the redemption happens prior to five years from inception. We have the option to extend the redemption period for up to an additional two and one-half years, in which case the interests can be redeemed for $750 million for the Class B interest and $80 million for the Class A interest, plus any previously accrued but unpaid preferred distributions and a make-whole payment if the redemption happens prior to seven and one-half years from inception. If the Ares JV does not exercise its redemption option at the end of the seven and one-half year period, ECR can either sell its Class A and Class B interests or cause the sale or lease of the Ares JV assets.

Our consolidated statements of operations reflect the full operations of our Ares JV, with ECR's share of net income reported in net income attributable to noncontrolling interests.

Additionally, in the first quarter of 2018, 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.

Benefit Street Partners (BSP)

In February 2017, we entered into a development joint venture with BSP (BSP JV) where BSP will contribute up to $250 million, subject to agreement of the parties, in exchange for a preferred interest in the BSP JV. BSP is entitled to preferential distributions and, if it receives cash distributions equal to a predetermined threshold, the preferred interest is automatically redeemed in full with no additional payment. BSP funded a total of $150 million in three equal tranches, before transaction costs, in March 2017, July 2017 and June 2018. The funds contributed by BSP were used to develop certain of our oil and gas properties.

The BSP JV holds net profits interests (NPI) in existing and future cash flow from certain of our properties and the proceeds from the NPI are used by the BSP JV to (1) pay quarterly minimum distributions to BSP, (2) make distributions to BSP until the predetermined threshold is achieved, and (3) pay for additional development costs within the project area, upon mutual agreement between members.

Our consolidated results reflect the full operations of our BSP JV, with BSP's share of net income being reported in net income attributable to noncontrolling interests on our consolidated statements of operations.

Other

In October 2018, we entered into a development JV for a three-year program to drill 20 wells where our JV partner committed approximately $23 million and we are investing approximately $13 million. We also entered into two exploration JVs where our JV partners have an initial total commitment of approximately $12 million. If certain milestones are met on the initial wells, the parties may move forward with a mutually agreed drilling program. Our consolidated results reflect only our working interest share in these JVs.

In April 2017, we entered into a development 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 will fund 100% of the development cost of such properties. Our 10% working interest increases to 75% if MIRA receives cash distributions equal to a predetermined threshold return. MIRA initially committed $160 million, which was intended to be invested over two years. In June 2018, the parties amended the joint development program to $140 million. The agreement provides for a commitment of up to 110% of the program amount. MIRA invested $58 million in 2017 and $57 million in 2018. Our consolidated results reflect only our working interest share in this JV.

DEBT

12 Months Ended

Dec. 31, 2018

DEBT

DEBT

NOTE 6 DEBT

As of December 31, 2018 and 2017, our long-term debt consisted of the following credit agreements, second lien notes and senior notes:


	Outstanding
	Principal
	(in millions)				Interest Rate	Maturity	Security
	2018		2017
Credit Agreements
2014 Revolving Credit Facility	$	540	$	363	LIBOR plus 3.25%-4.00% ABR plus 2.25%-3.00%	June 30, 2021	Shared First-Priority Lien

2017 Credit Agreement		1,300		1,300	LIBOR plus 4.75% ABR plus 3.75%	December 31, 2022(a)	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		2,067		2,250	8%	December 15, 2022 (b)	Second-Priority Lien
Senior Notes
5% Senior Notes due 2020		100		100	5%	January 15, 2020	Unsecured
5 1/2% Senior Notes due 2021		100		100	5.5%	September 15, 2021	Unsecured
6% Senior Notes due 2024		144		193	6%	November 15, 2024	Unsecured
Total	$	5,251	$	5,306

(a)

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 in principal of the 2016 Credit Agreement is outstanding at that time.

(b)

The Second Lien Notes require principal repayments of approximately $326 million in June 2021, $65 million in December 2021 and $68 million in June 2022.

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.

As of December 31, 2018, we had approximately $298 million of available borrowing capacity, before 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, 2018 and 2017, we had letters of credit of approximately $162 million and $148 million, respectively. These letters of credit were issued to support ordinary course marketing, insurance, regulatory and other matters.

Security -- The lenders share a first-priority lien on a substantial majority of our assets with the lenders under of 2017 Credit Agreement, excluding the Elk Hills power plant and midstream assets that are part of 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 the facility is subject to a commitment fee of 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.

Amortization Payments – The 2014 Revolving Credit Facility does not include any obligation to make amortization payments.

Borrowing Base – The borrowing base is redetermined each May 1 and November 1, and was most recently reaffirmed at $2.3 billion in October 2018. 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, 2018, 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, make subsidiary distributions and enter into transactions that would result in fundamental changes. We are also restricted from paying cash dividends on our stock. 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. Finally, we are also subject to a cross-default provision that causes a default under this facility if certain defaults occur under any of our other credit agreements or bond indentures.

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 proceeds from non-borrowing base asset sales for general corporate purposes including acquisitions and to repurchase our Second Lien Notes and Senior Notes subject to certain conditions, including pro-forma compliance with our financial performance covenants and that we have minimum liquidity of $300 million following such repurchase.

Events of Default and Change of Control – Our 2014 Revolving Credit Facility provides for certain events of default, including upon a change of control, that entitle our lenders to declare the outstanding loans immediately due and payable, subject to certain limitations and conditions.

Recent Amendments – Our 2014 Revolving Credit Facility was most recently amended in August 2018 and became effective in September 2018. The 2014 Credit Agreement was amended to, among other things:

permit us to draw on our revolver to repurchase up to $300 million of our Second Lien Notes and Senior Notes at a discount to par;

permit us to draw on our revolver to repurchase our Second Lien Notes and Senior Notes at a discount to par, without regard to time limit, in an amount not to exceed a specified portion of proceeds from future dispositions of certain assets;

in connection with any repurchase of certain of our indebtedness, increase the minimum liquidity required to make such repurchase (calculated on a pro forma basis after giving effect to the repurchase) from $250 million to $300 million; and

enhance our ability to refinance our outstanding term loans under our 2017 Credit Agreement and 2016 Credit Agreement, Second Lien Notes and Senior Notes, in each case by allowing the use of permitted refinancing indebtedness for such refinancing so long as certain conditions are met.

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, 2018, 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. 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. The covenants include limitations on additional indebtedness, liens, asset dispositions and investments among others, and are in each case subject to certain limitations and exceptions. We are also restricted from paying cash dividends on our stock.

Events of Default and Change of Control – Our 2017 Credit Agreement provides for certain events of default, including upon a change of control, that entitle our lenders to declare the outstanding loans immediately due and payable, subject to certain limitations and conditions. We are also subject to a cross-default provision that causes a default under this credit agreement if certain defaults occur under any of our other credit agreements or indentures.

Recent Amendments – In September 2018, our 2017 Credit Agreement was most recently amended to, among other things:

permit us to repurchase our Second Lien Notes and Senior Notes at a discount to par, without regard to time limit, in an amount not to exceed a specified portion of proceeds from dispositions of certain assets; and

enhance our ability to refinance our outstanding Second Lien Notes, Senior Notes and 2016 Credit Agreement, in each case by allowing the use of permitted refinancing indebtedness for such refinancing so long as certain conditions are met.

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, 2018, 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 (excluding the Elk Hills power plant and midstream assets that are part of the Ares JV) 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. 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. We are also restricted from paying cash dividends on our stock.

Events of Default and Change of Control – Our 2016 Credit Agreement provides for certain events of default, including upon a change of control, that entitle our lenders to declare the outstanding loans immediately due and payable, subject to certain limitations and conditions. We are also subject to a cross-default provision that causes a default under this credit agreement if certain defaults occur under any of our other credit agreements or indentures.

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.

Repurchases – In 2018, we repurchased $183 million in face value of our Second Lien Notes, for $159 million in cash resulting in a pre-tax gain of $48 million, including the effect of unamortized deferred gain and issuance costs.

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. We are also subject to a cross-default provision that causes a default under this indenture if certain defaults occur under any of our other credit agreements or indentures.

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 – In 2018, we repurchased $49 million in face value of our 2024 Notes for $40 million in cash resulting in a pre-tax gain of $9 million, including the effect of unamortized deferred issuance costs. In 2017, we repurchased $128 million in face value of our 2020 Notes and 2021 Notes for $116 million in cash, resulting in a $12 million pre-tax gain.

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 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. We are also subject to a cross-default provision that causes a default under this indenture if certain defaults occur under any of our other credit agreements or indentures.

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.

Deferred Gain and Issuance Costs

At December 31, 2018, net deferred gain and issuance costs were $216 million, consisting of $313 million of deferred gains offset by $97 million of deferred issuance costs and original issue discounts. The December 31, 2017 net deferred gain and issuance costs were $287 million, consisting of $415 million of deferred gains offset by $128 million of deferred issuance costs and original issue discounts.

Other

At December 31, 2018, 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 and Senior 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, 2018 are as follows (in millions):


2019	$	—
2020		100
2021		2,031
2022		2,976
2023		—
Thereafter		144
Total	$	5,251

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, 2018 and 2017, including the fair value of the variable-rate portion, was approximately $4.5 billion and $4.8 billion, respectively, compared to a carrying value of approximately $5.3 billion in both periods.

LEASE COMMITMENTS

12 Months Ended

Dec. 31, 2018

LEASE COMMITMENTS

LEASE COMMITMENTS

NOTE 7 LEASE COMMITMENTS

We have entered into various operating lease agreements, mainly for office space and vehicles. We lease assets when leasing offers greater operating flexibility. Lease payments are expensed as part of production costs or general and administrative expenses. At December 31, 2018, future minimum lease payments for noncancelable operating leases (excluding oil and natural gas and other mineral leases, utilities, taxes, insurance and common area maintenance expenses) totaled (in millions):


2019	$	12
2020		8
2021		7
2022		7
2023		6
Thereafter		28
Total	$	68

Rental expense for operating leases was $11 million in 2018 and $13 million in both 2017 and 2016. Rental income from subleases was approximately $4 million in 2018 and was de minimis in 2017 and 2016.

LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2018

LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES

LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES

NOTE 8 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, 2018 and 2017 were not material to our consolidated 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 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 such as pipeline capacity, land easements and field equipment. At December 31, 2018, total purchase obligations on a discounted basis were as follows (in millions):


2019	$	65
2020		63
2021		6
2022		4
2023		10
Thereafter		24
Total	$	172

In October 2018, the Internal Revenue Service (IRS) completed its audit of our U.S. federal income tax returns for the post-Spin-off period in 2014 and calendar year 2015. There were no changes to our tax filings as a result of the audit. We remain subject to audit by the IRS for calendar years 2016 and 2017 as well as for all periods subsequent to the Spin-off by the state of California.

DERIVATIVES

12 Months Ended

Dec. 31, 2018

DERIVATIVES

DERIVATIVES

NOTE 9 DERIVATIVES

We use a variety of derivative instruments to protect our cash flow, operating margin and capital program from the cyclical nature of commodity prices and interest-rate movements. These derivatives are intended to help us maintain adequate liquidity and improve our ability to comply with the covenants of our Credit Facilities in case of commodity price deterioration.

Commodity Price Risk

We did not have any commodity derivatives designated as accounting hedges as of and during the years ended December 31, 2018, 2017 and 2016. As part of our hedging program, we held the following Brent-based crude oil contracts as of December 31, 2018:


	Q1		Q2		Q3		Q4		Q1
	2019		2019		2019		2019		2020
Sold Calls:
Barrels per day		15,000		5,000		—		—		—
Weighted-average price per barrel	$	66.15	$	68.45	$	—	$	—	$	—

Purchased Calls:
Barrels per day		2,000		—		—		—		—
Weighted-average price per barrel	$	71.00	$	—	$	—	$	—	$	—

Purchased Puts:
Barrels per day		38,000		40,000		40,000		35,000		10,000
Weighted-average price per barrel	$	65.66	$	69.75	$	73.13	$	75.71	$	75.00

Sold Puts:
Barrels per day		40,000		35,000		40,000		35,000		10,000
Weighted-average price per barrel	$	51.88	$	55.71	$	57.50	$	60.00	$	60.00

Swaps:
Barrels per day		7,000		—		—		—		—
Weighted-average price per barrel	$	67.71	$	—	$	—	$	—	$	—

The BSP JV entered into crude oil derivatives that are included in our consolidated results but not in the above table. The hedges entered into by the BSP JV could affect the timing of the redemption of the JV interest. The BSP JV sold calls for up to approximately 1,000 barrels per day at a weighted-average price per barrel of $60.00 per barrel for 2019 through 2020. The BSP JV purchased puts for up to approximately 2,000 barrels per day at a weighted-average price per barrel of approximately $50.00 for 2019 through 2021. The BSP JV also entered into natural gas swaps for insignificant volumes for periods through May 2021.

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, 2018, 2017 and 2016, we recognized a non-cash derivative gain (loss) of approximately $229 million, $(83) million and $(283) million, respectively, from marking these contracts to market, which were included in net derivative gain (loss) from commodity contracts on our consolidated statements of operations. For the years ended December 31, 2018 and 2017, we made settlement payments of $228 million and $7 million, respectively. For the year ended December 31, 2016, we received settlement payments of $77 million.

Interest-Rate Risk

In May 2018, we entered into derivative contracts that limit our interest rate exposure with respect to $1.3 billion of our variable-rate indebtedness. These interest-rate contracts reset monthly and require the counterparties to pay any excess interest owed on such amount in the event the one-month LIBOR exceeds 2.75% for any monthly period prior to May 4, 2021.

For the year ended December 31, 2018, we reported a $6 million loss on these contracts in other non-operating expense on our consolidated statements of operations. No payments were received in 2018.

Fair Value of Derivatives

Our derivative contracts are measured at fair value using industry-standard models with various inputs, including quoted forward prices, and are classified as Level 2 in the required fair value hierarchy for the periods presented.

Commodity Contracts

The following table presents the fair values (at gross and net) of our outstanding derivatives as of December 31, 2018 and 2017 (in millions):


December 31, 2018
	Gross		Gross		Net Fair Value
	Amounts		Amounts		Presented in
	Recognized at		Offset in the		the Balance
Balance Sheet Classification	Fair Value		Balance Sheet		Sheet
Assets:
Other current assets	$	252	$	(84)	$	168
Other assets		23		(9)		14

Liabilities:
Accrued liabilities		(87)		84		(3)
Other long-term liabilities		(10)		9		(1)
	$	178	$	—	$	178


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

Liabilities:
Accrued liabilities		(170)		16		(154)
Other long-term liabilities		(3)		—		(3)
	$	(133)	$	—	$	(133)

Interest-Rate Contracts

As of December 31, 2018, we reported the fair value of our interest rate derivatives of $4 million in other assets on our consolidated balance sheets.

Counterparty Credit Risk

Our credit risk relates primarily to trade receivables, joint interest receivables and derivative financial instruments. Credit exposure for each customer is monitored for outstanding balances and current activity. 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, 2018, 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, 2018 was not material and losses associated with credit risk have been insignificant for all years presented.

All of our derivative instruments are covered by International Swap Dealers Association Master Agreements with counterparties. We had no collateral posted, and held no collateral, at December 31, 2018 and 2017.

INCOME TAXES

12 Months Ended

Dec. 31, 2018

INCOME TAXES

INCOME TAXES

NOTE 10 INCOME TAXES

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, 2018 and 2017 under the tax sharing agreement.

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 deduction for interest expense. We evaluated the provisions of the Tax Act, most of which are effective January 1, 2018, and determined that because of our current tax position and resulting valuation allowance, there was no net impact on our financial statements.

Income Tax Expense (Benefit)

Income (loss) before income taxes, which is all domestic, was $429 million, $(262) million and $201 million for the years ended December 31, 2018, 2017 and 2016, respectively. We had no provision (benefit) for federal, state and local income taxes in each of the years ended December 31, 2018 and 2017. For the year ended December 31, 2016, we recognized a $78 million deferred tax benefit, which consisted of $66 million in the U.S. federal jurisdiction and $12 million deferred tax benefit for state and local taxes.

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,
	2018		2017		2016
U.S. federal statutory tax rate	21	%	(35)	%	35	%
State income taxes, net	6		(6)		6
Exclusion of tax attributable to noncontrolling interests	(5)		—		—
Decrease in U.S. federal corporate tax rate	—		91		—
Tax credits, net	(6)		(19)		—
Cancellation of debt income, net	—		—		(275)
Stock-based compensation, net	—		1		2
Change in valuation allowance, net	(17)		(33)		192
Other	1		1		1
Effective tax rate	—	%	—	%	(39)	%

Our effective tax rate is affected by recurring items such as permanent differences, tax deductions related to equity compensation which is different from compensation expense recognized in the financial statements and income included in our consolidated results which is taxed to noncontrolling interests. Additionally, due to the low commodity price environment, the enhanced oil recovery credit was available in each of the years ended December 31, 2018 and 2017. During 2017, U.S. federal deferred tax assets and liabilities were remeasured due to the reduction of the top corporate tax rate from 35% to 21% under the Tax Act. During 2016, our effective tax rate differed from the U.S. federal statutory rate primarily due to excluding cancellation of debt income which is described further below.

Given our tax status, any item affecting our effective tax rate described above is offset by an equal change in the valuation allowance. As of December 31, 2018, 2017 and 2016, we had valuation allowances of $625 million, $706 million and $780 million, respectively.

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 an income tax 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.

As a result of our 2015 and 2016 debt transactions, we generated CODI of $1.4 billion and $1.3 billion, 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 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 U.S. federal and $800 million of California CODI was relieved without any future tax liability, which reduced our effective rate by 275%.

Deferred Tax Assets and Liabilities

The tax effects of temporary differences resulting in deferred income taxes at December 31, 2018 and 2017 were as follows:


	2018				2017
	Deferred Tax		Deferred Tax		Deferred Tax		Deferred Tax
	Assets		Liabilities		Assets		Liabilities
	(in millions)
Debt	$	253	$	—	$	324	$	—
Property, plant and equipment differences		11		(316)		33		(261)
Postretirement benefit accruals		27		—		33		—
Deferred compensation and benefits		56		—		53		—
Asset retirement obligations		129		—		126		—
Net operating loss carryforwards and credits		396		—		417		—
Investment in partnerships		93		—		—		—
All other		17		(41)		22		(41)
Subtotal		982		(357)		1,008		(302)
Valuation allowance		(625)		—		(706)		—
Total net deferred taxes	$	357	$	(357)	$	302	$	(302)

Components of accumulated other comprehensive income (loss) (AOCI) are presented net of tax. We use the "with-and-without" intraperiod allocation approach to allocate taxes and the portfolio approach to clear remaining taxes recorded to AOCI when our pension plans are terminated.

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, 2018, 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 as of December 31, 2018 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.

As of December 31, 2018, we had U.S. federal net operating loss carryforwards of $555 million , generated in 2017, which expire in 2037 and are available to offset up to 100% of taxable income in the year utilized. As of December 31, 2018, we had a carryforward for disallowed interest expense of $393 million for U.S. federal purposes, which does not expire.

In California, we had $1.6 billion of net operating loss carryforwards which begin to expire in 2026.

As of December 31, 2018, we had U.S. federal tax credit carryforwards of $49 million, which begin to expire in 2037, and we have $16 million of California tax credit carryforwards which begin to expire in 2037.

Unrecognized Tax Benefits

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, 2018 and 2017, we recorded a $25 million liability for tax positions taken in prior periods that was 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.

STOCK-BASED COMPENSATION

12 Months Ended

Dec. 31, 2018

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

NOTE 11 STOCK-BASED COMPENSATION

General

In 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 executives, 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, 2018, 4.1 million shares were issued or reserved under the Plan and 0.6 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.

Shares of our common stock may be withheld by us in satisfaction of tax withholding obligations arising upon the exercise of stock options or the vesting of restricted stock units. Further, shares of our common stock may be withheld by us in payment of the exercise price of employee stock options, which also count against the authorized shares specified above.

Compensation expense for stock-based awards for the year ended December 31, 2018 was $45 million, of which $36 million was included in general and administrative expenses and $9 million was included in production costs in our consolidated statement of operations. Compensation expense for stock-based awards for the year ended December 31, 2017 was $29 million, of which $23 million was included in general and administrative expenses and $6 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 $30 million, of which $23 million was included in general and administrative expenses and $7 million was included in production costs in our consolidated statement of operations. For the years ended December 31, 2018, 2017 and 2016, we did not recognize any income tax benefit related to our stock-based compensation. For the years ended December 31, 2018, 2017 and 2016, we made cash payments of $24 million, $6 million and $5 million for the cash-settled portion of our awards, respectively. Cash payments on our stock-based compensation were higher in 2018 compared to prior years due to the significant increase in our stock price during the second quarter of 2018.

As of December 31, 2018, the unrecognized compensation expense for all our unvested stock-based incentive awards was $44 million, based on the year-end value of our common stock. This expense is expected to be recognized over a weighted-average period of two years.

Restricted Stock

Certain executives and non-employee directors are granted restricted stock units (RSUs), which are in the form of, or equivalent in value to, actual shares of our common stock. RSUs are service based and, depending on the terms of the awards, are settled in cash or stock at the time of vesting. The awards vest ratably over three years or at the end of three years for employees and at the end of one year for non-employee directors. Our RSUs 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, 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 monthly basis for the cumulative change in the value of the underlying stock. Compensation expense for the stock-settled RSUs 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, 2018:


	Stock-Settled			Cash-Settled

	Number of	Weighted-
	Units	Average Grant-		Number of Units
	(in thousands)	Date Fair Value		(in thousands)
Unvested at January 1	1,035	$	16.04	2,066
Granted(a)	291	$	20.62	1,656
Vested	(466)	$	16.57	(903)
Forfeited	(41)	$	16.33	(183)
Unvested at December 31	819	$	17.36	2,636

(a)

During 2018 and 2017, our non-employee directors were granted stock-settled RSUs representing approximately 46,000 and 98,000 shares, respectively.

Performance Stock

Our performance stock units (PSUs) granted prior to 2015 were restricted stock awards with a performance target based on cumulative earnings before interest, taxes and depreciation. The units vested 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. The performance target was met in 2018. 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 accrue dividend equivalents as dividends are declared during the vesting period, which are paid upon certification for the number of vested units.

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. Fewer 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 was 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 was based on the vesting period of the award. The risk-free rate was 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 was 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 was 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 were 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 PSUs granted in 2018 are based 50% on achievement of specified cumulative VCI results and 50% on the change in CRC combined production costs compared to the change in production costs of a selected peer group of companies over a three-year period, with payouts ranging from 0% to 200% of the target award. The awards are paid out 60% in stock and 40% cash up to target. Amounts over target are paid out in cash. These awards accrue dividend equivalents as dividends are declared during the vesting period, which are paid upon certification for the number of vested units.

The following summarizes our PSU activity for the year ended December 31, 2018:


	Stock-Settled			Cash-Settled
	Number of	Weighted-Average
	Awards	Grant-Date		Number of Units
	(in thousands)	Fair Value		(in thousands)
Unvested at January 1	384	$	39.05	—
Granted	306	$	18.34	204
Vested	(384)	$	39.05	—
Forfeited	(12)	$	18.34	(8)
Unvested at December 31	294	$	18.34	196

Stock Options

In 2018, 2015 and 2014, we granted stock options to certain executives under our long-term incentive plan. The options permit the 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 options becoming exercisable on the day before each anniversary date following the date of grant, subject to certain restrictions including continued employment. No stock options were issued during 2017 and 2016.

Fair value 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 award. Expected life is calculated based on the simplified method and represents the period of time that options granted are expected to be held prior to exercise. For options granted in 2018, volatility was based on the average historical volatility of our stock. For options granted in 2015 and 2014, in the absence of adequate stock price history of our common stock at the time of grant, volatility was based on the average volatility of the stocks of a select group of peer companies. The risk-free interest rate is the implied yield available on zero-coupon 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 2018, 2015 and 2014 were as follows:


	2018			2015			2014
Exercise price per share	$	20.17		$	42.00		$	81.10
Expected life (in years)		4.5			4.5			4.5
Expected volatility		69.85	%		44.7	%		35.4	%
Risk-free interest rate		2.63	%		1.56	%		1.40	%
Dividend yield		—	%		0.95	%		0.50	%
Grant-date fair value of stock option awards	$	10.02		$	15.00		$	19.80

The following table summarizes our option activity during the year ended December 31, 2018:


		Weighted-		Weighted-
		Average		Average		Aggregate
	Options	Exercise		Grant-Date		Intrinsic
	(000's)	Price		Fair Value		Value
Beginning balance, January 1	1,105	$	69.95	$	18.43	$	—
Granted	187	$	20.17	$	10.02	$	—
Exercised	—	$	—	$	—	$	—
Forfeited	—	$	—	$	—	$	—
Expired or Canceled	(5)	$	42.00	$	15.00	$	—
Ending balance, December 31	1,287	$	62.82	$	17.22	$	—
Exercisable at December 31	1,109	$	69.66	$	18.38	$	—

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 and May 2018. 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 authorized shares of our common stock that may be issued pursuant to the ESPP is 1.5 million shares, subject to adjustment pursuant to the terms of the ESPP. In addition, participants in the ESPP are subject to certain limits on the number of shares that can be purchased in any given year and during any given offering period. As of December 31, 2018, 0.8 million shares were issued under our ESPP and 0.7 million shares were available for future issuance. For the year ended December 31, 2018, we issued approximately 0.1 million shares of common stock in connection with our ESPP.

EQUITY

12 Months Ended

Dec. 31, 2018

EQUITY

EQUITY

NOTE 12 EQUITY

The following is a summary of common stock issuances:


		Common Stock
		(in thousands)
Balance, December 31, 2016		42,543
Issued		359
Balance, December 31, 2017		42,902
Issued		6,110
Canceled		(362)
Balance, December 31, 2018		48,650

At December 31, 2018 and 2017, 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 $6 million and $23 million, at December 31, 2018 and 2017, respectively.

EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2018

EARNINGS PER SHARE

EARNINGS PER SHARE

NOTE 13 EARNINGS PER SHARE

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


	2018		2017		2016
	(in millions, except per share amounts)
Basic EPS calculation
Net income (loss)	$	429	$	(262)	$	279
Less: Net income attributable to noncontrolling interests		(101)		(4)		—
Net income (loss) attributable to common stock		328		(266)		279
Less: Net income allocated to participating securities		(7)		—		(6)
Net income (loss) available to common stockholders	$	321	$	(266)	$	273
Weighted-average common shares outstanding		47.4		42.5		40.4
Basic EPS	$	6.77	$	(6.26)	$	6.76

Diluted EPS calculation
Net income (loss)	$	429	$	(262)	$	279
Less: Net income attributable to noncontrolling interests		(101)		(4)		—
Net income (loss) attributable to common stock		328		(266)		279
Less: Net income allocated to participating securities		(7)		—		(6)
Net income (loss) available to common stockholders	$	321	$	(266)	$	273
Weighted-average common shares outstanding		47.4		42.5		40.4
Dilutive effect of potentially dilutive securities	$	—	$	—	$	—
Diluted EPS	$	6.77	$	(6.26)	$	6.76
Weighted-average anti-dilutive shares(a)		1.6		2.3		1.1

(a)

Anti-dilutive shares represent potential common shares that are excluded from the computation of diluted EPS.

PENSION AND POSTRETIREMENT BENEFIT PLANS

12 Months Ended

Dec. 31, 2018

PENSION AND POSTRETIREMENT BENEFIT PLANS

PENSION AND POSTRETIREMENT BENEFIT PLANS

NOTE 14 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 tax-qualified, defined contribution retirement plan that provides for periodic cash contributions by us based on annual cash compensation and employee deferrals.

Certain salaried employees participate in supplemental plans that restore benefits lost due to government limitations on qualified plans. As of December 31, 2018 and 2017, we recognized $36 million and $32 million in other long-term liabilities for these supplemental plans, respectively.

We expensed $35 million in 2018, $33 million in 2017 and $32 million in 2016 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 2018, 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. Our former employees are required to make monthly contributions to the plan, but the benefits are primarily funded by us 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,
	2018		2017		2018		2017
	Pension Benefits				Postretirement Benefits
	(in millions)
Amounts recognized in the balance sheet:
Accrued liabilities	$	—	$	—	$	(2)	$	(3)
Other long-term liabilities		(14)		(19)		(82)		(90)
	$	(14)	$	(19)	$	(84)	$	(93)

Amounts recognized in accumulated other comprehensive (loss) income:	$	(10)	$	(13)	$	4	$	(10)


	As of December 31,
	2018		2017		2018		2017
	Pension Benefits				Postretirement Benefits
	(in millions)
Changes in the benefit obligation:
Benefit obligation—beginning of year	$	65	$	70	$	93	$	77
Service cost—benefits earned during the period		1		1		4		3
Interest cost on projected benefit obligation		2		2		4		4
Actuarial (gain) loss		(2)		7		(14)		11
Benefits paid		(10)		(15)		(3)		(2)
Benefit obligation—end of year	$	56	$	65	$	84	$	93

Changes in plan assets:
Fair value of plan assets—beginning of year	$	46	$	44	$	—	$	—
Actual return on plan assets		(2)		5		—		—
Employer contributions		8		12		3		2
Benefits paid		(10)		(15)		(3)		(2)
Fair value of plan assets—end of year	$	42	$	46	$	—	$	—
Unfunded status	$	(14)	$	(19)	$	(84)	$	(93)

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:

None of our defined benefit pension plans had plan assets in excess of accumulated benefit obligations.

Components of Net Periodic Benefit Cost

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


	For the years ended December 31,
	2018		2017		2016		2018		2017		2016
	Pension Benefits						Postretirement Benefits
	(in millions)
Net periodic benefit costs:
Service cost—benefits earned during the period	$	1	$	1	$	1	$	4	$	3	$	3
Interest cost on projected benefit obligation		2		2		3		4		4		3
Expected return on plan assets		(3)		(3)		(3)		—		—		—
Amortization of net actuarial loss		2		2		2		—		—		—
Settlement costs		4		5		8		—		—		—
Net periodic benefit cost	$	6	$	7	$	11	$	8	$	7	$	6


	For the years ended December 31,
	2018		2017		2016		2018		2017		2016
	Pension Benefits						Postretirement Benefits
	(in millions)
Amounts recognized in other comprehensive income (loss):
Net actuarial (loss) gain	$	(3)	$	(4)	$	(9)	$	14	$	(12)	$	—
Settlement costs		4		5		8		—		—		—
Amortization of net actuarial gain/loss		2		2		2		—		—		—
Total recognized in other comprehensive income (loss)	$	3	$	3	$	1	$	14	$	(12)	$	—

Settlement costs related to our pension plans were associated with early retirements.

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,
	2018		2017		2018		2017
	Pension Benefits				Postretirement Benefits
Benefit Obligation Assumptions:
Discount rate	4.22	%	3.53	%	4.57	%	3.87	%
Rate of compensation increase	4.00	%	4.00	%	—		—
Net Periodic Benefit Cost Assumptions:
Discount rate	3.53	%	3.88	%	3.87	%	4.58	%
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 2018 and 2017. 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 2018, we adopted the Society of Actuaries MP-2018 Mortality Improvement Scale, which updated the Society of Actuaries Adjusted RP-2014 mortality assumptions that private defined benefit pension plans in the U.S. use in the actuarial valuations that determine a plan sponsor’s pension and postretirement obligations. In 2017, we utilized the Society of Actuaries Adjusted RP-2014 Mortality Table reflecting the MP-2017 Mortality Improvement Scale. At December 31, 2018, the changes in the mortality assumptions did not significantly change the pension benefit obligations or 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 1.78% and 1.97% as of December 31, 2018 and 2017, respectively. 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, 2018, healthcare cost trend rates would decrease 0.25% per year from 7.00% in 2018 until they reach 6.00% in 2022, then decrease 0.50% per year until they reach 4.50% in 2025 and remain at 4.50% thereafter.

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 2018 and 2017, 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, 2018
	Level 1		Level 2		Level 3		Total
	(in millions)
Asset Class:
Cash equivalents	$	1	$	—	$	—	$	1
Commingled funds:
Fixed income		—		9		—		9
U.S. equity		—		9		—		9
International equity		—		5		—		5
Mutual funds:
Bond funds		5		—		—		5
Blend funds		2		—		—		2
Value funds		2		—		—		2
Growth funds		2		—		—		2
Guaranteed deposit account		—		—		7		7
Total pension plan assets	$	12	$	23	$	7	$	42


	Fair Value Measurements at
	December 31, 2017
	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

The activity during the years ended December 31, 2018 and 2017, for the assets using Level 3 fair value measurements was insignificant.

Expected Cash Flows

In 2019, we expect to contribute $3 million to our postretirement benefit plans and at least our minimum funding requirement of $3 million to our defined benefit pension plans. Estimated future undiscounted benefit payments, which reflect expected future service, as appropriate, are as follows:


	Pension		Postretirement
For the years ended December 31,	Benefits		Benefits
	(in millions)
2019	$	17	$	3
2020	$	5	$	4
2021	$	4	$	4
2022	$	4	$	4
2023	$	4	$	4
2024 - 2028	$	14	$	23

REVENUE RECOGNITION

12 Months Ended

Dec. 31, 2018

REVENUE RECOGNITION

REVENUE RECOGNITION

NOTE 15 REVENUE RECOGNITION

We account for revenue in accordance with ASC 606, Revenue from Contracts with Customers, which we adopted on January 1, 2018 using the modified retrospective method, which was applied to all contracts that were not completed as of that date. Prior period results were not adjusted and continue to be reported under the accounting standards in effect for the applicable period. The new standard did not affect the timing of our revenue recognition and did not impact net income; accordingly, we did not record an adjustment to the opening balance of retained earnings.

We derive substantially all of our revenue from sales of oil, natural gas and NGLs, with the remaining revenue generated from sales of electricity and marketing activities related to storage and managing excess pipeline capacity.

The following is a description of our principal activities from which we generate revenue. Revenues are recognized when control of promised goods is transferred to our customers, in an amount that reflects the consideration we expect to receive in exchange for those goods.

Commodity Sales Contracts

We recognize revenue from the sale of our oil, natural gas and NGL production when delivery has occurred and control passes to the customer. Our commodity contracts are short term, typically less than a year. We consider our performance obligations to be satisfied upon transfer of control of the commodity. In certain instances, transportation and processing fees are incurred by us prior to control being transferred to customers. These costs were previously offset against oil and gas sales. Upon adoption of ASC 606, we are recording these costs as a component of other expenses, net on our consolidated statements of operations.

Our commodity sales contracts are based on index prices. We recognize revenue in the amount that we expect to receive once we are able to adequately estimate the consideration (i.e., when market prices are known). Our contracts with customers typically require payment within 30 days following invoicing.

Electricity

The electrical output of the Elk Hills power plant that is not used in our operations is sold to the wholesale power market and to a utility under a power purchase and sales agreement expiring in December 2020, which includes a capacity payment. Revenue is recognized when obligations under the terms of a contract with our customer are satisfied; generally, this occurs upon delivery of the electricity. We report electricity sales as other revenue on our consolidated statements of operations. Revenue is measured as the amount of consideration we expect to receive based on average index or California Independent System Operator market pricing with payment due the month following delivery. Capacity payments are based on a fixed annual amount per kilowatt hour and monthly rates vary based on seasonality, which is consistent with how we earn the capacity payment. Capacity payments are settled monthly. We consider our performance obligations to be satisfied as delivery occurs and in the amount we have a right to invoice or as the contracted amount of energy is made available to the customer in the case of capacity payments.

Marketing, Trading and Other

Marketing, trading and other revenue primarily includes our activities associated with marketing, storing and transporting third-party volumes.

To transport our natural gas as well as third-party volumes, we have entered into firm pipeline commitments. Depending on market conditions, we may have excess capacity or acquire additional capacity, in which case we may enter into natural gas purchase and sale agreements with third parties. We consider our performance obligations to be satisfied upon transfer of control of the commodity. We have not incurred any significant fees or penalties related to excess capacity on these commitments.

We report our marketing and trading activities on a gross basis with purchases and costs reported in other expenses, net and sales recorded in other revenue on our consolidated statements of operations.

Disaggregation of Revenue

The following table provides disaggregated revenue for the years ended December 31, 2018, 2017 and 2016:


	2018		2017		2016
	(in millions)
Oil and gas sales:
Oil	$	2,110	$	1,549	$	1,325
NGLs		260		210		132
Natural gas		220		177		164
		2,590		1,936		1,621
Other revenue:
Electricity		111		125		107
Marketing, trading and other		361		35		25
Interest income		1		—		—
		473		160		132
Net derivative gain from commodity contracts		1		(90)		(206)
Total revenues and other	$	3,064	$	2,006	$	1,547

The impact of the adoption of ASC 606 on our consolidated statements of operations for the year ended December 31, 2018 was as follows:


	2018
	As
	Reported		Previous
	ASC 606		GAAP		Change
	(in millions)
Oil and gas sales	$	2,590	$	2,568	$	22
Other revenue	$	473	$	392	$	81
Other expenses, net	$	399	$	296	$	103

The adoption of ASC 606 did not have an impact on our consolidated balance sheets as of December 31, 2018 and 2017.

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

12 Months Ended

Dec. 31, 2018

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS


			Charged
	Balance at		(Credited) to		Charged
	Beginning of		Costs and		to Other				Balance at End
(in millions)	Period		Expenses		Accounts		Deductions		of Period
2018
Deferred tax valuation allowance	$	706	$	(81)	$	—	$	—	$	625
Other asset valuation allowance	$	44	$	(13)	$	—	$	—	$	31

2017
Deferred tax valuation allowance	$	780	$	(78)	$	4	$	—	$	706
Other asset valuation allowance	$	56	$	(12)	$	—	$	—	$	44

2016
Deferred tax valuation allowance	$	382	$	398	$	—	$	—	$	780
Other asset valuation allowance	$	68	$	(12)	$	—	$	—	$	56

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER (Policies)

12 Months Ended

Dec. 31, 2018

THE SPIN-OFF AND BASIS OF PRESENTATION

Basis of Presentation

Risks and Uncertainties

Concentration of Customers

Property, Plant and Equipment

Asset Retirement Obligations


	For the years ended
	December 31,
	2018		2017
	(in millions)
Beginning balance	$	422	$	411
Liabilities incurred, capitalized to PP&E		4		2
Liabilities settled and paid		(15)		(9)
Accretion expense		27		25
Acquisitions, capitalized to PP&E(a)		8		—
Dispositions and other, reduction to PP&E		(2)		—
Revisions in estimated cash flows, changes in PP&E		(11)		(7)
Ending balance	$	433	$	422

(a)

Includes $7 million related to the Elk Hills transaction and $1 million related to other acquisitions in 2018.

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.

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

Revenue Recognition

We recognize revenue in accordance with ASC 606, Revenue from Contracts with Customers, which is more fully described in Note 15 Revenue Recognition.

Inventories

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 11 Stock Compensation.

Earnings Per Share

Other Loss Contingencies

Income Taxes

Production-Sharing Type Contracts

Pension and Postretirement Benefit Plans

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER (Tables)

12 Months Ended

Dec. 31, 2018

THE SPIN-OFF AND BASIS OF PRESENTATION

Summary of the activity of the asset retirement obligation


	For the years ended
	December 31,
	2018		2017
	(in millions)
Beginning balance	$	422	$	411
Liabilities incurred, capitalized to PP&E		4		2
Liabilities settled and paid		(15)		(9)
Accretion expense		27		25
Acquisitions, capitalized to PP&E(a)		8		—
Dispositions and other, reduction to PP&E		(2)		—
Revisions in estimated cash flows, changes in PP&E		(11)		(7)
Ending balance	$	433	$	422

(a)

Includes $7 million related to the Elk Hills transaction and $1 million related to other acquisitions in 2018.

Schedule of Inventories

Schedule of other current assets, net


	2018		2017
	(in millions)
Derivative assets	$	168	$	23
Amounts due from joint interest partners		68		76
Prepaid expenses		16		19
Assets held for sale		—		12
Other		3		—
Other current assets, net	$	255	$	130

Schedule of accrued liabilities


	2018		2017
	(in millions)
Accrued employee-related costs	$	109	$	86
Accrued taxes other than on income		38		130
Current portion of asset retirement obligation		31		19
Accrued interest		15		23
Derivative liabilities		3		154
Other		21		63
Accrued liabilities	$	217	$	475

PROPERTY, PLANT AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2018

PROPERTY, PLANT AND EQUIPMENT

Schedule of property, plant and equipment, net


	December 31,
	2018		2017
	(in millions)
Proved oil and gas properties	$	20,882	$	19,664
Unproved oil and gas properties		1,103		1,111
Facilities and other		538		485
Total property, plant and equipment		22,523		21,260
Accumulated depreciation, depletion and amortization		(16,068)		(15,564)
Total property, plant and equipment, net	$	6,455	$	5,696

Summary of the activity of capitalized exploratory well costs


	2018		2017		2016
	(in millions)
Balance, beginning of year	$	4	$	4	$	6
Additions to capitalized exploratory well costs		19		4		1
Reclassification to property, plant and equipment		(2)		(2)		—
Charged to expense		(16)		(2)		(3)
Balance, end of year	$	5	$	4	$	4

ACQUISITIONS AND DIVESTITURES (Tables)

12 Months Ended

Dec. 31, 2018

ACQUISITIONS AND DIVESTITURES

Summary of total consideration, including customary closing adjustments, and allocation of the consideration based on fair value of assets acquired as of acquisition date


Consideration:
Cash	$	460
Common stock issued (2.85 million shares)		51
Liabilities assumed		7
	$	518

Identifiable assets acquired:
Proved properties	$	435
Other property and equipment		77
Materials and supplies		6
	$	518

JOINT VENTURES (Tables)

12 Months Ended

Dec. 31, 2018

JOINT VENTURES

Schedule of changes in noncontrolling interests


							Mezzanine
							Equity -
							Redeemable
	Equity Attributable to Noncontrolling						Noncontrolling
	Interest						Interest
	Ares JV		BSP JV		Total		Ares JV
	(in millions)
Balance, December 31, 2017	$	—	$	94	$	94	$	—
Net (loss) income attributable to noncontrolling interests		(11)		13		2		99
Contributions from noncontrolling interest holders, net		33		49		82		714
Distributions to noncontrolling interest holders		(7)		(57)		(64)		(57)
Balance, December 31, 2018	$	15	$	99	$	114	$	756

DEBT (Tables)

12 Months Ended

Dec. 31, 2018

DEBT

Schedule of Debt


	Outstanding
	Principal
	(in millions)				Interest Rate	Maturity	Security
	2018		2017
Credit Agreements
2014 Revolving Credit Facility	$	540	$	363	LIBOR plus 3.25%-4.00% ABR plus 2.25%-3.00%	June 30, 2021	Shared First-Priority Lien

2017 Credit Agreement		1,300		1,300	LIBOR plus 4.75% ABR plus 3.75%	December 31, 2022(a)	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		2,067		2,250	8%	December 15, 2022 (b)	Second-Priority Lien
Senior Notes
5% Senior Notes due 2020		100		100	5%	January 15, 2020	Unsecured
5 1/2% Senior Notes due 2021		100		100	5.5%	September 15, 2021	Unsecured
6% Senior Notes due 2024		144		193	6%	November 15, 2024	Unsecured
Total	$	5,251	$	5,306

(a)

(b)

The Second Lien Notes require principal repayments of approximately $326 million in June 2021, $65 million in December 2021 and $68 million in June 2022.

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, 2018 are as follows (in millions):


2019	$	—
2020		100
2021		2,031
2022		2,976
2023		—
Thereafter		144
Total	$	5,251

- 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://fasb.org/us-gaap/role/ref/legacyRef
-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://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-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://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

LEASE COMMITMENTS (Tables)

12 Months Ended

Dec. 31, 2018

LEASE COMMITMENTS

Future net minimum lease payments for noncancelable operating leases

. At December 31, 2018, future minimum lease payments for noncancelable operating leases (excluding oil and natural gas and other mineral leases, utilities, taxes, insurance and common area maintenance expenses) totaled (in millions):


2019	$	12
2020		8
2021		7
2022		7
2023		6
Thereafter		28
Total	$	68

LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2018

LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES

Schedule of purchase obligations on a discounted basis

At December 31, 2018, total purchase obligations on a discounted basis were as follows (in millions):


2019	$	65
2020		63
2021		6
2022		4
2023		10
Thereafter		24
Total	$	172

DERIVATIVES (Tables)

12 Months Ended

Dec. 31, 2018

DERIVATIVES

Schedule of oil hedge positions


	Q1		Q2		Q3		Q4		Q1
	2019		2019		2019		2019		2020
Sold Calls:
Barrels per day		15,000		5,000		—		—		—
Weighted-average price per barrel	$	66.15	$	68.45	$	—	$	—	$	—

Purchased Calls:
Barrels per day		2,000		—		—		—		—
Weighted-average price per barrel	$	71.00	$	—	$	—	$	—	$	—

Purchased Puts:
Barrels per day		38,000		40,000		40,000		35,000		10,000
Weighted-average price per barrel	$	65.66	$	69.75	$	73.13	$	75.71	$	75.00

Sold Puts:
Barrels per day		40,000		35,000		40,000		35,000		10,000
Weighted-average price per barrel	$	51.88	$	55.71	$	57.50	$	60.00	$	60.00

Swaps:
Barrels per day		7,000		—		—		—		—
Weighted-average price per barrel	$	67.71	$	—	$	—	$	—	$	—

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, 2018 and 2017 (in millions):


December 31, 2018
	Gross		Gross		Net Fair Value
	Amounts		Amounts		Presented in
	Recognized at		Offset in the		the Balance
Balance Sheet Classification	Fair Value		Balance Sheet		Sheet
Assets:
Other current assets	$	252	$	(84)	$	168
Other assets		23		(9)		14

Liabilities:
Accrued liabilities		(87)		84		(3)
Other long-term liabilities		(10)		9		(1)
	$	178	$	—	$	178


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

Liabilities:
Accrued liabilities		(170)		16		(154)
Other long-term liabilities		(3)		—		(3)
	$	(133)	$	—	$	(133)

- 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://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624163-113959

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5580258-113959

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41620-113959

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5579245-113959

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41638-113959

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41678-113959

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41641-113959

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624171-113959

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-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

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5579240-113959

+ Details

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

INCOME TAXES

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


	For the years ended
	December 31,
	2018		2017		2016
U.S. federal statutory tax rate	21	%	(35)	%	35	%
State income taxes, net	6		(6)		6
Exclusion of tax attributable to noncontrolling interests	(5)		—		—
Decrease in U.S. federal corporate tax rate	—		91		—
Tax credits, net	(6)		(19)		—
Cancellation of debt income, net	—		—		(275)
Stock-based compensation, net	—		1		2
Change in valuation allowance, net	(17)		(33)		192
Other	1		1		1
Effective tax rate	—	%	—	%	(39)	%

Tax effects of temporary differences resulting in deferred income taxes


	2018				2017
	Deferred Tax		Deferred Tax		Deferred Tax		Deferred Tax
	Assets		Liabilities		Assets		Liabilities
	(in millions)
Debt	$	253	$	—	$	324	$	—
Property, plant and equipment differences		11		(316)		33		(261)
Postretirement benefit accruals		27		—		33		—
Deferred compensation and benefits		56		—		53		—
Asset retirement obligations		129		—		126		—
Net operating loss carryforwards and credits		396		—		417		—
Investment in partnerships		93		—		—		—
All other		17		(41)		22		(41)
Subtotal		982		(357)		1,008		(302)
Valuation allowance		(625)		—		(706)		—
Total net deferred taxes	$	357	$	(357)	$	302	$	(302)

STOCK-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2018

STOCK COMPENSATION

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


	Stock-Settled			Cash-Settled

	Number of	Weighted-
	Units	Average Grant-		Number of Units
	(in thousands)	Date Fair Value		(in thousands)
Unvested at January 1	1,035	$	16.04	2,066
Granted(a)	291	$	20.62	1,656
Vested	(466)	$	16.57	(903)
Forfeited	(41)	$	16.33	(183)
Unvested at December 31	819	$	17.36	2,636

(a)

During 2018 and 2017, our non-employee directors were granted stock-settled RSUs representing approximately 46,000 and 98,000 shares, respectively.

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


	Stock-Settled			Cash-Settled
	Number of	Weighted-Average
	Awards	Grant-Date		Number of Units
	(in thousands)	Fair Value		(in thousands)
Unvested at January 1	384	$	39.05	—
Granted	306	$	18.34	204
Vested	(384)	$	39.05	—
Forfeited	(12)	$	18.34	(8)
Unvested at December 31	294	$	18.34	196

PSU 2015 Awards

STOCK COMPENSATION

Schedule of grant date assumptions used in the Monte Carlo valuation for PSUs granted in 2015


	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


	2018			2015			2014
Exercise price per share	$	20.17		$	42.00		$	81.10
Expected life (in years)		4.5			4.5			4.5
Expected volatility		69.85	%		44.7	%		35.4	%
Risk-free interest rate		2.63	%		1.56	%		1.40	%
Dividend yield		—	%		0.95	%		0.50	%
Grant-date fair value of stock option awards	$	10.02		$	15.00		$	19.80

Summary of stock option activity


		Weighted-		Weighted-
		Average		Average		Aggregate
	Options	Exercise		Grant-Date		Intrinsic
	(000's)	Price		Fair Value		Value
Beginning balance, January 1	1,105	$	69.95	$	18.43	$	—
Granted	187	$	20.17	$	10.02	$	—
Exercised	—	$	—	$	—	$	—
Forfeited	—	$	—	$	—	$	—
Expired or Canceled	(5)	$	42.00	$	15.00	$	—
Ending balance, December 31	1,287	$	62.82	$	17.22	$	—
Exercisable at December 31	1,109	$	69.66	$	18.38	$	—

EQUITY (Tables)

12 Months Ended

Dec. 31, 2018

EQUITY

Summary of common stock issuances


		Common Stock
		(in thousands)
Balance, December 31, 2016		42,543
Issued		359
Balance, December 31, 2017		42,902
Issued		6,110
Canceled		(362)
Balance, December 31, 2018		48,650

EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2018

EARNINGS PER SHARE

Calculation of basic and diluted EPS


	2018		2017		2016
	(in millions, except per share amounts)
Basic EPS calculation
Net income (loss)	$	429	$	(262)	$	279
Less: Net income attributable to noncontrolling interests		(101)		(4)		—
Net income (loss) attributable to common stock		328		(266)		279
Less: Net income allocated to participating securities		(7)		—		(6)
Net income (loss) available to common stockholders	$	321	$	(266)	$	273
Weighted-average common shares outstanding		47.4		42.5		40.4
Basic EPS	$	6.77	$	(6.26)	$	6.76

Diluted EPS calculation
Net income (loss)	$	429	$	(262)	$	279
Less: Net income attributable to noncontrolling interests		(101)		(4)		—
Net income (loss) attributable to common stock		328		(266)		279
Less: Net income allocated to participating securities		(7)		—		(6)
Net income (loss) available to common stockholders	$	321	$	(266)	$	273
Weighted-average common shares outstanding		47.4		42.5		40.4
Dilutive effect of potentially dilutive securities	$	—	$	—	$	—
Diluted EPS	$	6.77	$	(6.26)	$	6.76
Weighted-average anti-dilutive shares(a)		1.6		2.3		1.1

Anti-dilutive shares represent potential common shares that are excluded from the computation of diluted EPS.

PENSION AND POSTRETIREMENT BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2018

PENSION AND POSTRETIREMENT BENEFIT PLANS

Components of pension and postretirement amounts recognized in the balance sheets


	As of December 31,
	2018		2017		2018		2017
	Pension Benefits				Postretirement Benefits
	(in millions)
Amounts recognized in the balance sheet:
Accrued liabilities	$	—	$	—	$	(2)	$	(3)
Other long-term liabilities		(14)		(19)		(82)		(90)
	$	(14)	$	(19)	$	(84)	$	(93)

Amounts recognized in accumulated other comprehensive (loss) income:	$	(10)	$	(13)	$	4	$	(10)

Funding status of plans


	As of December 31,
	2018		2017		2018		2017
	Pension Benefits				Postretirement Benefits
	(in millions)
Amounts recognized in the balance sheet:
Accrued liabilities	$	—	$	—	$	(2)	$	(3)
Other long-term liabilities		(14)		(19)		(82)		(90)
	$	(14)	$	(19)	$	(84)	$	(93)

Amounts recognized in accumulated other comprehensive (loss) income:	$	(10)	$	(13)	$	4	$	(10)


	As of December 31,
	2018		2017		2018		2017
	Pension Benefits				Postretirement Benefits
	(in millions)
Changes in the benefit obligation:
Benefit obligation—beginning of year	$	65	$	70	$	93	$	77
Service cost—benefits earned during the period		1		1		4		3
Interest cost on projected benefit obligation		2		2		4		4
Actuarial (gain) loss		(2)		7		(14)		11
Benefits paid		(10)		(15)		(3)		(2)
Benefit obligation—end of year	$	56	$	65	$	84	$	93

Changes in plan assets:
Fair value of plan assets—beginning of year	$	46	$	44	$	—	$	—
Actual return on plan assets		(2)		5		—		—
Employer contributions		8		12		3		2
Benefits paid		(10)		(15)		(3)		(2)
Fair value of plan assets—end of year	$	42	$	46	$	—	$	—
Unfunded status	$	(14)	$	(19)	$	(84)	$	(93)

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

Components of the net periodic benefit costs


	For the years ended December 31,
	2018		2017		2016		2018		2017		2016
	Pension Benefits						Postretirement Benefits
	(in millions)
Net periodic benefit costs:
Service cost—benefits earned during the period	$	1	$	1	$	1	$	4	$	3	$	3
Interest cost on projected benefit obligation		2		2		3		4		4		3
Expected return on plan assets		(3)		(3)		(3)		—		—		—
Amortization of net actuarial loss		2		2		2		—		—		—
Settlement costs		4		5		8		—		—		—
Net periodic benefit cost	$	6	$	7	$	11	$	8	$	7	$	6

Amounts recognized in other comprehensive income (expense)


	For the years ended December 31,
	2018		2017		2016		2018		2017		2016
	Pension Benefits						Postretirement Benefits
	(in millions)
Net periodic benefit costs:
Service cost—benefits earned during the period	$	1	$	1	$	1	$	4	$	3	$	3
Interest cost on projected benefit obligation		2		2		3		4		4		3
Expected return on plan assets		(3)		(3)		(3)		—		—		—
Amortization of net actuarial loss		2		2		2		—		—		—
Settlement costs		4		5		8		—		—		—
Net periodic benefit cost	$	6	$	7	$	11	$	8	$	7	$	6


	For the years ended December 31,
	2018		2017		2016		2018		2017		2016
	Pension Benefits						Postretirement Benefits
	(in millions)
Amounts recognized in other comprehensive income (loss):
Net actuarial (loss) gain	$	(3)	$	(4)	$	(9)	$	14	$	(12)	$	—
Settlement costs		4		5		8		—		—		—
Amortization of net actuarial gain/loss		2		2		2		—		—		—
Total recognized in other comprehensive income (loss)	$	3	$	3	$	1	$	14	$	(12)	$	—

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


	For the years ended December 31,
	2018		2017		2018		2017
	Pension Benefits				Postretirement Benefits
Benefit Obligation Assumptions:
Discount rate	4.22	%	3.53	%	4.57	%	3.87	%
Rate of compensation increase	4.00	%	4.00	%	—		—
Net Periodic Benefit Cost Assumptions:
Discount rate	3.53	%	3.88	%	3.87	%	4.58	%
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


	Fair Value Measurements at
	December 31, 2018
	Level 1		Level 2		Level 3		Total
	(in millions)
Asset Class:
Cash equivalents	$	1	$	—	$	—	$	1
Commingled funds:
Fixed income		—		9		—		9
U.S. equity		—		9		—		9
International equity		—		5		—		5
Mutual funds:
Bond funds		5		—		—		5
Blend funds		2		—		—		2
Value funds		2		—		—		2
Growth funds		2		—		—		2
Guaranteed deposit account		—		—		7		7
Total pension plan assets	$	12	$	23	$	7	$	42


	Fair Value Measurements at
	December 31, 2017
	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

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


	Pension		Postretirement
For the years ended December 31,	Benefits		Benefits
	(in millions)
2019	$	17	$	3
2020	$	5	$	4
2021	$	4	$	4
2022	$	4	$	4
2023	$	4	$	4
2024 - 2028	$	14	$	23

REVENUE RECOGNITION (Tables)

12 Months Ended

Dec. 31, 2018

Revenue recognition

Schedule of disaggregated revenue


	2018		2017		2016
	(in millions)
Oil and gas sales:
Oil	$	2,110	$	1,549	$	1,325
NGLs		260		210		132
Natural gas		220		177		164
		2,590		1,936		1,621
Other revenue:
Electricity		111		125		107
Marketing, trading and other		361		35		25
Interest income		1		—		—
		473		160		132
Net derivative gain from commodity contracts		1		(90)		(206)
Total revenues and other	$	3,064	$	2,006	$	1,547

ASU 2014-09

Revenue recognition

Schedule of the impact of the adoption of ASC 606 on our condensed consolidated statements of operations


	2018
	As
	Reported		Previous
	ASC 606		GAAP		Change
	(in millions)
Oil and gas sales	$	2,590	$	2,568	$	22
Other revenue	$	473	$	392	$	81
Other expenses, net	$	399	$	296	$	103

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICES AND OTHER - Nature of Business (Details)	Nov. 30, 2014
Spinoff - CRC \| Occidental Petroleum
Nature of Business
Percentage of outstanding shares of common stock initially retained by Occidental	18.50%

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER - Basis of Presentation (Details) shares in Millions	May 31, 2016 shares	Dec. 31, 2018 shares	Dec. 31, 2017 shares
Reverse Stock Split
Reverse stock split ratio	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

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER - Concentration of Customers (Details) - Oil and gas sales and other revenue	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Principal customers, Phillips 66 Company and Valero Marketing & Supply Company
Revenue Recognition
Concentration risk percentage	43.00%
Principal customers, Phillips 66 Company, Andeavor ( formerly Tesoro Refining & Marketing Company LLC),, Valero Marketing & Supply Company and Shell Trading (US) Company
Revenue Recognition
Concentration risk percentage		67.00%	67.00%
Minimum \| Principal customers \| 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 \| Phillips 66 Company \| Major Customers
Revenue Recognition
Concentration risk percentage	10.00%	10.00%	10.00%
Minimum \| Andeavor (formerly Tesoro Refining & Marketing Company LLC) \| Major Customers
Revenue Recognition
Concentration risk percentage		10.00%	10.00%
Minimum \| Shell Trading (US) Company \| Major Customers
Revenue Recognition
Concentration risk percentage		10.00%	10.00%

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER - Property, Plant and Equipment (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
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	$ 284
Gas plant and power plant assets \| Maximum
Property, Plant and Equipment, Net [Abstract]
Expected useful lives	30 years
Other non- producing property and equipment \| Maximum
Property, Plant and Equipment, Net [Abstract]
Expected useful lives	20 years

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER - Asset Retirement Obligations (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Asset Retirement Obligations
Non-current asset retirement obligation	$ 402	$ 403
Asset Retirement Obligations Roll forward
Beginning balance	422	411
Liabilities incurred, capitalized to PP&E	4	2
Liabilities settled and paid	(15)	(9)
Accretion expense	27	25
Acquisitions, capitalized to PP&E	8
Dispositions and other, reduction to PP&E	(2)
Revisions in estimated cash flows, changes in PP&E	(11)	(7)
Ending balance	433	$ 422
Elk Hills transaction
Asset Retirement Obligations Roll forward
Acquisitions, capitalized to PP&E	7
Other upstream acquisitions
Asset Retirement Obligations Roll forward
Acquisitions, capitalized to PP&E	$ 1

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER - Inventories (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER
Materials and supplies	$ 65	$ 53
Finished goods	4	3
Total	$ 69	$ 56

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER - Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Taxes
Interest and penalties related to uncertain tax positions	$ 0	$ 0	$ 0

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER - Production Sharing - Type Contracts and Cash (Details)	12 Months Ended
	Dec. 31, 2018
Production Sharing Type Contracts
Percentage of production represented by PSC-type contracts	15.00%
Percentage of operating costs reported under PSC-type contracts	100.00%

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER - Cash (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Cash
Cash restricted under our joint venture agreements	$ 2	$ 5

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER - Accrued Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Accrued liabilities
Accrued employee-related costs	$ 109	$ 86
Accrued taxes other than on income	38	130
Current portion of asset retirement obligation	31	19
Accrued interest	15	23
Derivative liabilities	3	154
Other	21	63
Accrued liabilities	$ 217	$ 475

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER - Other Current Assets (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Other current assets
Derivative assets	$ 168	$ 23
Amounts due from joint interest partners	68	76
Prepaid expenses	16	19
Asset held for sale		12
Other	3
Other current assets, net	$ 255	$ 130

NATURE OF BUSINESS, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER - Supplemental Cash Flow Information (Details) - USD ($)
shares in Thousands, $ in Millions

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Supplemental Cash Flow Information

Interest paid, net of capitalized amounts

$ 433

$ 393

$ 382

United States federal and state income taxes paid

$ 0

Value of common stock at issuance

^[1]

$ 101

Elk Hills transaction

Supplemental Cash Flow Information

Common stock shares issued (in shares)

2,850

Value of common stock at issuance

$ 51

[1]

PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Asset Impairments
Asset impairment charges	$ 0	$ 0	$ 0
Property, Plant and Equipment
Total property, plant and equipment	22,523	21,260
Accumulated depreciation, depletion and amortization	(16,068)	(15,564)
Total property, plant and equipment, net	6,455	5,696
Capitalized exploratory well costs for the years ended December 31:
Balance - beginning of year	4	4	6
Additions to capitalized exploratory well costs	19	4	1
Reclassification to property, plant and equipment	(2)	(2)
Charged to expense	(16)	(2)	(3)
Balance - end of year	5	4	$ 4
Proved oil and gas properties
Property, Plant and Equipment
Total property, plant and equipment	20,882	19,664
Unproved oil and gas properties
Property, Plant and Equipment
Total property, plant and equipment	1,103	1,111
Facilities and other
Property, Plant and Equipment
Total property, plant and equipment	$ 538	$ 485

ACQUISITIONS AND DIVESTITURES - Elk Hills Transaction Paragraph (Details) $ in Millions	Apr. 01, 2018 USD ($) a	Dec. 31, 2018 USD ($)
Working, surface and mineral interests in the formerly Elk Hills field
ACQUISITIONS AND DIVESTITURES
Working, surface and mineral interests acquired \| a	47,000
Purchase price	$ 518
Liabilities assumed	$ 7
Other oil and gas property
ACQUISITIONS AND DIVESTITURES
Reduction of Chevron royalty interest in one of CRCs oil and gas properties	50.00%
Extension period for CRC's remaining capital commitment	2 years
Remaining commitments to invest an oil and gas property		$ 17

ACQUISITIONS AND DIVESTITURES - Elk Hills Table (Details) shares in Thousands, $ in Millions	Apr. 01, 2018 USD ($) shares
Working, surface and mineral interests in the formerly Elk Hills field
Consideration:
Common stock issued in connection with acquisition (in shares) \| shares	2,850
Working, surface and mineral interests in the formerly Elk Hills field
Consideration:
Cash	$ 460
Common stock issued (2.85 million shares)	51
Liabilities assumed	7
Consideration	518
Identifiable assets acquired:
Proved properties	435
Other property and equipment	77
Materials and supplies	6
Recognized amounts of identifiable assets acquired	$ 518

ACQUISITIONS AND DIVESTITURES - Office Building and Land (Details) $ in Millions	1 Months Ended	12 Months Ended
	Apr. 30, 2018 USD ($)	Dec. 31, 2018 USD ($) location employee
ACQUISITIONS AND DIVESTITURES
Acquisition cost		$ 547.0
Office building and land
ACQUISITIONS AND DIVESTITURES
Acquisition cost	$ 48.4
Number of employees in Bakersfield \| employee		500
Number of different locations in Bakersfield \| location		8
Term of occupying space as a tenant by former owner	8 months
Rental income received		$ 4.0
Amount allocated to in-place leases	$ 6.0

ACQUISITIONS AND DIVESTITURES - Other Upstream Acquisitions (Details) - Other upstream acquisitions $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($)
Acquisitions
Purchase price	$ 39
ARO liabilities assumed	$ 1

ACQUISITIONS AND DIVESTITURES - Divestitures (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Divestitures
Proceeds from sale of non-core assets	$ 18	$ 33	$ 20
Gain on asset divestitures	$ 5	$ 21	$ 30

JOINT VENTURES - Changes in Noncontrolling Interests (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Stockholders' Equity
Beginning balance	$ (720)	$ (557)
Contributions from noncontrolling interest holders, net	82	98
Distributions paid to noncontrolling interest holders	(64)	(8)
Ending balance	(247)	(720)
Equity Attributable to Noncontrolling Interest
Stockholders' Equity
Beginning balance	94
Net (loss) income attributable to noncontrolling interests	2
Contributions from noncontrolling interest holders, net	82	98
Distributions paid to noncontrolling interest holders	(64)	(8)
Ending balance	114	94
Equity Attributable to Noncontrolling Interest \| Ares JV
Stockholders' Equity
Net (loss) income attributable to noncontrolling interests	(11)
Contributions from noncontrolling interest holders, net	33
Distributions paid to noncontrolling interest holders	(7)
Ending balance	15
Equity Attributable to Noncontrolling Interest \| BSP JV
Stockholders' Equity
Beginning balance	94
Net (loss) income attributable to noncontrolling interests	13
Contributions from noncontrolling interest holders, net	49
Distributions paid to noncontrolling interest holders	(57)
Ending balance	$ 99	$ 94

JOINT VENTURES - Mezzanine Equity (Details) $ in Millions	12 Months Ended
JOINT VENTURES - Mezzanine Equity (Details) $ in Millions	Dec. 31, 2018 USD ($)
Mezzanine Equity - Redeemable Noncontrolling Interest - Ares
Balance	$ 756
Mezzanine Equity - Redeemable Noncontrolling Interest - Ares
Mezzanine Equity - Redeemable Noncontrolling Interest - Ares
Net (loss) income attributable to noncontrolling interests	99
Contributions from noncontrolling interest holders, net	714
Distributions to noncontrolling interest holders	(57)
Balance	$ 756

JOINT VENTURES - Ares (Details) shares in Millions, $ in Millions	1 Months Ended	3 Months Ended	12 Months Ended
	Feb. 28, 2018 USD ($) MW ft³	Mar. 31, 2018 USD ($) shares	Dec. 31, 2018 USD ($) shares	Dec. 31, 2017 USD ($)
JOINT VENTURES
Net proceeds received by CRC from the transaction			$ 796	$ 98
Ares JV
JOINT VENTURES
Net proceeds received by CRC from the transaction	$ 750
Joint venture transaction cost	$ 3
Ares JV \| Ares-led investor group
JOINT VENTURES
CRC shares issued to Ares-led investor group in a private placement \| shares		2.3	2.3
Purchase price of the CRC shares issued to Ares-led investor group in a private placement		$ 50
Class B preferred interest \| Ares JV
JOINT VENTURES
Period in which monthly distributions can be deferred	3 years
Natural gas power and Gas processing plants \| Ares JV
JOINT VENTURES
Power plant capacity \| MW	550
Gas processing plant capacity \| ft³	200
ECR \| Redemption prior to fifth year
JOINT VENTURES
Redemption period	5 years
ECR \| Redemption prior to fifth year \| Class A common interest
JOINT VENTURES
Redemption price	$ 60
ECR \| Redemption prior to fifth year \| Class B preferred interest
JOINT VENTURES
Redemption price	$ 750
ECR \| Redemption prior to seven and a half years
JOINT VENTURES
Maximum extension period of redemption	2 years 6 months
Make-whole payment redemption period	7 years 6 months
ECR \| Redemption prior to seven and a half years \| Class A common interest
JOINT VENTURES
Redemption price	$ 80
ECR \| Redemption prior to seven and a half years \| Class B preferred interest
JOINT VENTURES
Redemption price	$ 750
Ares JV \| Class A common interest
JOINT VENTURES
Percentage of common interest held by CRC	50.00%
Ares JV \| Class C common interest
JOINT VENTURES
Percentage of common interest held by CRC	95.25%
ECR \| Ares JV \| Class A common interest
JOINT VENTURES
Percentage of common interest held by ECR	50.00%
ECR \| Ares JV \| Class B preferred interest
JOINT VENTURES
Percentage of common interest held by ECR	100.00%
ECR \| Ares JV \| Class C common interest
JOINT VENTURES
Percentage of common interest held by ECR	4.75%

JOINT VENTURES - BSP (Details) - BSP JV - Joint venture with BSP $ in Millions	16 Months Ended
	Jun. 30, 2018 USD ($) item	Feb. 28, 2017 USD ($)
JOINT VENTURES
Maximum commitment contribution		$ 250
Commitment contributed	$ 150
Number of equal funding contributions \| item	3

JOINT VENTURES - Other (Details) $ in Millions	1 Months Ended			12 Months Ended
JOINT VENTURES - Other (Details) $ in Millions	Oct. 31, 2018 USD ($) item	Jun. 30, 2018 USD ($)	Apr. 30, 2017 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Development JV
JOINT VENTURES
JV program period (in years)	3 years
Number of wells agreed for drilling under JV program \| item	20
JV partner commitment	$ 23
Commitment contributed	$ 13
Exploration JVs
JOINT VENTURES
Number of joint ventures entered into \| item	2
JV partner commitment	$ 12
Joint venture with MIRA \| MIRA
JOINT VENTURES
Maximum commitment contribution			$ 300
Working interest acquired by MIRA (as a percent)			90.00%
Funding provided by MIRA for development of properties (as a percent)			100.00%
Working interest retained by CRC (as a percent)			10.00%
CRC's working interest if MIRA receives cash distributions equal to a predetermined threshold return (as a percent)			75.00%
Initial commitment			$ 160
Investment period			2 years
Amended commitment amount		$ 140
Commitment as a percentage to program amount		110.00%
Commitment contributed				$ 57	$ 58

DEBT - Schedule of long-term debt (Details) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Nov. 30, 2017	Dec. 31, 2018	Dec. 31, 2017	Oct. 31, 2014
Debt
Long-term debt		$ 5,251	$ 5,306
2014 Revolving Credit Facility (Shared First Priority Lien)
Debt
Long-term debt		$ 540	$ 363
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%
2017 Credit Agreement (Shared First Priority Lien)
Debt
Long-term debt		$ 1,300	$ 1,300
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 notes that triggers accelerated payment	91 days	91 days	91 days
Outstanding amount of 2016 Credit Agreement notes that triggers accelerated payment	$ 100	$ 100	$ 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%	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%	3.75%
2016 Credit Agreement (Shared First Priority Lien)
Debt
Long-term debt		$ 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 (Second Priority Lien)
Debt
Long-term debt		$ 2,067	$ 2,250
Debt instrument interest rate stated percentage		8.00%	8.00%
Principal amount due by June 2021		$ 326	$ 326
Principal amount due by December 2021		65	65
Principal amount due by June 2022		68	68
Senior Notes (Unsecured) \| 5% Notes Due 2020
Debt
Long-term debt		$ 100	$ 100
Debt instrument interest rate stated percentage		5.00%	5.00%	5.00%
Senior Notes (Unsecured) \| 5.5% Notes Due 2021
Debt
Long-term debt		$ 100	$ 100
Debt instrument interest rate stated percentage		5.50%	5.50%	5.50%
Senior Notes (Unsecured) \| 6% Senior Notes due 2024
Debt
Long-term debt		$ 144	$ 193
Debt instrument interest rate stated percentage		6.00%	6.00%	6.00%

DEBT - 2014 Revolving Credit Facility (Details) - 2014 Revolving Credit Facility (Shared First Priority Lien) $ in Millions	1 Months Ended	12 Months Ended
	Oct. 31, 2018 USD ($)	Dec. 31, 2018 USD ($) item	Dec. 31, 2017 USD ($)	Sep. 30, 2018 USD ($)	Aug. 31, 2018 USD ($)
Debt
Maximum borrowing capacity		$ 1,000
Increase to maximum borrowing capacity with lender approval		50
Available borrowing capacity, subject to minimum liquidity requirement		298
Financial covenant minimum month end liquidity		$ 150
Borrowing base	$ 2,300
Number of consecutive redeterminations between which CRC or lenders can request a special redetermination \| item		3
Commitment fees on unused portion of the Revolving Credit Facility		0.50%
Financial covenants
Minimum interest coverage ratio		1.20	1.20
Minimum asset coverage ratio		1.20	1.20
Other covenants
Amount of cash on hand above which amounts owed under the Revolving Credit Facility must be repaid		$ 150
Amount that can be drawn to repurchase Second Lien Notes and Senior Notes at a discount to par				$ 300
Minimum
Debt
Percentage of lenders to approve increases in borrowing base		80.00%
Percentage of lenders to approve decreases or affirmations in borrowing base		67.00%
Percentage of lenders to request special redetermination in borrowing base		67.00%
Applicable margin on LIBOR loans \| Minimum
Debt
Interest rate added to variable rate basis (as a percent)		3.25%	3.25%
Applicable margin on LIBOR loans \| Maximum
Debt
Interest rate added to variable rate basis (as a percent)		4.00%	4.00%
Applicable margin on Alternate Base Rate loans \| Minimum
Debt
Interest rate added to variable rate basis (as a percent)		2.25%	2.25%
Applicable margin on Alternate Base Rate loans \| Maximum
Debt
Interest rate added to variable rate basis (as a percent)		3.00%	3.00%
Alternative Base Rate Loan Federal fund rate
Debt
Interest rate added to variable rate basis (as a percent)		0.50%
Alternative Base Rate Loan One-Month LIBOR
Debt
Interest rate added to variable rate basis (as a percent)		1.00%
Through 2019
Financial covenants
Maximum leverage ratio		1.90	1.90
After 2019
Financial covenants
Maximum leverage ratio		1.50	1.50
Up to $500 million
Financial covenants
Percent of net cash proceeds from non-borrowing base asset sales that must be used to repay the 2014 RCF		25.00%	25.00%
Net cash proceeds from non-borrowing base asset sales that are subject to percentage of repayment of the 2014 RCF		$ 500	$ 500
$500 million and $1 billion
Financial covenants
Percent of net cash proceeds from non-borrowing base asset sales that must be used to repay the 2014 RCF		50.00%	50.00%
$500 million and $1 billion \| Minimum
Financial covenants
Net cash proceeds from non-borrowing base asset sales that are subject to percentage of repayment of the 2014 RCF		$ 500	$ 500
$500 million and $1 billion \| Maximum
Financial covenants
Net cash proceeds from non-borrowing base asset sales that are subject to percentage of repayment of the 2014 RCF		$ 1,000	1,000
In excess of $1 billion
Financial 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
Applications of proceeds from sale of nonborrowing base assets after required payment of 2014 RCF.
Financial covenants
Amount of minimum liquidity to be maintained using proceeds from non-borrowing base asset sales to repurchase senior notes or second lien notes		300		$ 300	$ 250
Letters of Credit
Debt
Maximum sub-limit on borrowing capacity for issuance of letters of credit		400	400
Aggregate letters of credit issued		$ 162	$ 148

DEBT - 2017 Credit Agreements (Details) $ in Millions	1 Months Ended	12 Months Ended
DEBT - 2017 Credit Agreements (Details) $ in Millions	Nov. 30, 2017 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Debt
Outstanding borrowings		$ 5,251	$ 5,306
2014 Term Loan
Debt
Payment of bank debt	$ 559
Loss on early extinguishment of debt	8
2017 Credit Agreement (Shared First Priority Lien)
Debt
Maximum borrowing capacity	1,300
Original issue discount	26
Transaction costs	$ 38
Outstanding borrowings		$ 1,300	$ 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	91 days	91 days
Outstanding amount of 2016 Credit Agreement notes that triggers accelerated payment	$ 100	$ 100	$ 100
2017 Credit Agreement (Shared First Priority Lien) \| Any June 30 and December 31
Debt
Minimum asset coverage ratio	1.20

DEBT - 2016 Credit Agreements (Details) $ in Millions	1 Months Ended	12 Months Ended
DEBT - 2016 Credit Agreements (Details) $ in Millions	Aug. 31, 2016 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Debt
Proceeds used to repay 2014 revolving credit facility		$ 2,646	$ 2,180	$ 2,110
Outstanding borrowings		5,251	5,306
2014 Revolving Credit Facility (Shared First Priority Lien)
Debt
Maximum borrowing capacity		1,000
Outstanding borrowings		$ 540	$ 363
Minimum asset coverage ratio		1.20	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) \| Any June 30 and December 31
Debt
Minimum asset coverage ratio		1.20
Term Loan \| 2014 Revolving Credit Facility (Shared First Priority Lien)
Debt
Repurchase value of the principal amounts	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, 2018	Dec. 31, 2017	Dec. 31, 2016	Oct. 31, 2014
Debt
Pre-tax unamortized deferred gain on early extinguishment of debt and deferred issuance costs		$ 57	$ 4	$ 805
Second Lien Notes (Second Priority Lien)
Debt
Interest rate (as a percent)		8.00%	8.00%
Face value of debt reduction through payment or repurchase		$ 183
Repurchase value of the face amounts		159
Pre-tax unamortized deferred gain on early extinguishment of debt and deferred issuance costs		$ 48
Financial performance covenants
Percentage of principal amount at which notes can be redeemed in case of change control		101.00%
Second Lien Notes (Second Priority Lien) \| 8% Notes Due 2022
Debt
Interest rate (as a percent)	8.00%
Aggregate principal amount issued	$ 2,250
Second Lien Notes (Second Priority Lien) \| 8% Notes Due 2022 \| Prior to December 15, 2018
Financial performance covenants
Percentage of principal amount at which notes can be redeemed prior to their maturity date		100.00%
Redemption period start		Dec. 31, 2015
Redemption period end		Dec. 14, 2018
Second Lien Notes (Second Priority Lien) \| 8% Notes Due 2022 \| Between December 15, 2018 and 2020
Financial performance covenants
Redemption period start		Dec. 15, 2018
Redemption period end		Dec. 31, 2020
Second Lien Notes (Second Priority Lien) \| 8% Notes Due 2022 \| After December 15, 2020
Financial performance covenants
Percentage of principal amount at which notes can be redeemed in case of change control		100.00%
Redemption period start		Jan. 01, 2021
Redemption period end		Dec. 15, 2022
Senior Notes (Unsecured)
Debt
Proceeds from Second Lien Notes used to reduce principal amount of senior note debt through exchange	2,800
Pre-tax unamortized deferred gain on early extinguishment of debt	$ 560
Aggregate principal amount issued					$ 5,000
Financial performance covenants
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 (Second Priority Lien) \| 8% Notes Due 2022 \| Between December 15, 2018 and 2020
Financial performance covenants
Percentage of principal amount at which notes can be redeemed prior to their maturity date		102.00%
Maximum \| Second Lien Notes (Second Priority Lien) \| 8% Notes Due 2022 \| Between December 15, 2018 and 2020
Financial performance covenants
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	12 Months Ended
	Oct. 31, 2014	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Debt
Pre-tax unamortized deferred gain on early extinguishment of debt and deferred issuance costs		$ 57	$ 4	$ 805
Senior Notes (Unsecured)
Debt
Aggregate principal amount issued	$ 5,000
Net proceeds from issuance of senior notes used to make cash distribution to Occidental	$ 4,950
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 face amounts			$ 128
Number of common stock shares exchanged to pay down unsecured senior notes			116.0
Debt reduction from exchange of common stock shares			$ 12
Senior Notes (Unsecured) \| 5% Notes Due 2020
Debt
Interest rate (as a percent)	5.00%	5.00%	5.00%
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%
Aggregate principal amount issued	$ 1,750
Senior Notes (Unsecured) \| 6% Senior Notes due 2024
Debt
Interest rate (as a percent)	6.00%	6.00%	6.00%
Face value of debt reduction through payment or repurchase		$ 49
Pre-tax unamortized deferred gain on early extinguishment of debt and deferred issuance costs		9
Repurchase value of the face amounts		$ 40
Aggregate principal amount issued	$ 2,250

DEBT - Deferred Gain and Issuance Costs (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Deferred Gain and Issuance Costs [Abstract]
Net deferred gain and issuance costs	$ 216	$ 287
Deferred gains	313	415
Deferred issuance costs	$ 97	$ 128

DEBT - Other (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Principal maturities of long-term debt
2020	$ 100
2021	2,031
2022	2,976
Thereafter	144
Total	5,251
Fair Value, Other Financial Instruments [Abstract]
Estimated fair value of long-term debt	4,500	$ 4,800
Debt carrying value	$ 5,251	$ 5,306

LEASE COMMITMENTS (Details) - USD ($) $ in Millions	12 Months Ended
LEASE COMMITMENTS (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Future net minimum operating lease payments
2019	$ 12
2020	8
2021	7
2022	7
2023	6
Thereafter	28
Total minimum lease payments	68
Rental expense for operating leases	11	$ 13	$ 13
Sublease income	$ 4

LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES (Details) - Long Term Purchase and Contractual Obligation $ in Millions	Dec. 31, 2018 USD ($)
Purchase obligations
2019	$ 65
2020	63
2021	6
2022	4
2023	10
Thereafter	24
Total	$ 172

DERIVATIVES - Commodity Price Risk (Details) $ in Millions	12 Months Ended
DERIVATIVES - Commodity Price Risk (Details) $ in Millions	Dec. 31, 2018 USD ($) bbl / d $ / bbl	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Derivatives
Non-cash derivative (losses) gains \| $	$ 229	$ (83)	$ (283)
Amount of settlement paid (received) \| $	$ 228	$ 7	$ (77)
Calls \| Purchased \| Q1 2019
Derivatives
Daily Volume (in Bbl) \| bbl / d	2,000
Weighted-average price (in dollars per barrel) \| $ / bbl	71.00
Calls \| Sold \| Q1 2019
Derivatives
Daily Volume (in Bbl) \| bbl / d	15,000
Weighted-average price (in dollars per barrel) \| $ / bbl	66.15
Calls \| Sold \| Q2 2019
Derivatives
Daily Volume (in Bbl) \| bbl / d	5,000
Weighted-average price (in dollars per barrel) \| $ / bbl	68.45
Puts \| Purchased \| Q1 2019
Derivatives
Daily Volume (in Bbl) \| bbl / d	38,000
Weighted-average price (in dollars per barrel) \| $ / bbl	65.66
Puts \| Purchased \| Q2 2019
Derivatives
Daily Volume (in Bbl) \| bbl / d	40,000
Weighted-average price (in dollars per barrel) \| $ / bbl	69.75
Puts \| Purchased \| Q3 2019
Derivatives
Daily Volume (in Bbl) \| bbl / d	40,000
Weighted-average price (in dollars per barrel) \| $ / bbl	73.13
Puts \| Purchased \| Q4 2019
Derivatives
Daily Volume (in Bbl) \| bbl / d	35,000
Weighted-average price (in dollars per barrel) \| $ / bbl	75.71
Puts \| Purchased \| Q1 2020
Derivatives
Daily Volume (in Bbl) \| bbl / d	10,000
Weighted-average price (in dollars per barrel) \| $ / bbl	75.00
Puts \| Sold \| Q1 2019
Derivatives
Daily Volume (in Bbl) \| bbl / d	40,000
Weighted-average price (in dollars per barrel) \| $ / bbl	51.88
Puts \| Sold \| Q2 2019
Derivatives
Daily Volume (in Bbl) \| bbl / d	35,000
Weighted-average price (in dollars per barrel) \| $ / bbl	55.71
Puts \| Sold \| Q3 2019
Derivatives
Daily Volume (in Bbl) \| bbl / d	40,000
Weighted-average price (in dollars per barrel) \| $ / bbl	57.50
Puts \| Sold \| Q4 2019
Derivatives
Daily Volume (in Bbl) \| bbl / d	35,000
Weighted-average price (in dollars per barrel) \| $ / bbl	60.00
Puts \| Sold \| Q1 2020
Derivatives
Daily Volume (in Bbl) \| bbl / d	10,000
Weighted-average price (in dollars per barrel) \| $ / bbl	60.00
Swaps \| Q1 2019
Derivatives
Daily Volume (in Bbl) \| bbl / d	7,000
Weighted-average price (in dollars per barrel) \| $ / bbl	67.71
BSP JV \| Calls \| Sold \| Crude Oil \| 2019 Through 2020
Derivatives
Daily Volume (in Bbl) \| bbl / d	1,000
Weighted-average price (in dollars per barrel) \| $ / bbl	60.00
BSP JV \| Puts \| Purchased \| Crude Oil \| 2019 through 2021
Derivatives
Daily Volume (in Bbl) \| bbl / d	2,000
Weighted-average price (in dollars per barrel) \| $ / bbl	50.00

DERIVATIVES - Interest-Rate Contracts (Details) - Interest-rate contract - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	May 31, 2018
Derivatives
Hedged amount for variable-rate indebtedness		$ 1,300
Loss recorded in other non-operating expense	$ 6
Payments received	$ 0
One month LIBOR
Derivatives
Interest rate to be in place to receive payment		2.75%

DERIVATIVES - Fair Value (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Interest Rate Contracts \| Other assets
Fair Value of Derivatives
Interest rate derivative assets	$ 4
Presented in the Balance Sheet \| Commodity Contracts
Fair Value of Derivatives
Total derivatives	178	$ (133)
Presented in the Balance Sheet \| Commodity Contracts \| Other current assets
Fair Value of Derivatives
Net Fair Value Presented in the Balance Sheet	168	23
Presented in the Balance Sheet \| Commodity Contracts \| Other assets
Fair Value of Derivatives
Net Fair Value Presented in the Balance Sheet	14	1
Presented in the Balance Sheet \| Commodity Contracts \| Accrued liabilities
Fair Value of Derivatives
Net Fair Value Presented in the Balance Sheet	(3)	(154)
Presented in the Balance Sheet \| Commodity Contracts \| Other long-term liabilities
Fair Value of Derivatives
Net Fair Value Presented in the Balance Sheet	(1)	(3)
Recognized Fair Value \| Commodity Contracts
Fair Value of Derivatives
Total derivatives	178	(133)
Recognized Fair Value \| Commodity Contracts \| Other current assets
Fair Value of Derivatives
Gross Amounts Recognized at Fair Value	252	39
Gross Amounts Offset in the Balance Sheet	(84)	(16)
Recognized Fair Value \| Commodity Contracts \| Other assets
Fair Value of Derivatives
Gross Amounts Recognized at Fair Value	23	1
Gross Amounts Offset in the Balance Sheet	(9)
Recognized Fair Value \| Commodity Contracts \| Accrued liabilities
Fair Value of Derivatives
Gross Amounts Recognized at Fair Value	(87)	(170)
Gross Amounts Offset in the Balance Sheet	84	16
Recognized Fair Value \| Commodity Contracts \| Other long-term liabilities
Fair Value of Derivatives
Gross Amounts Recognized at Fair Value	(10)	$ (3)
Gross Amounts Offset in the Balance Sheet	$ 9

INCOME TAXES - Income and Provision for Income Tax (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income (loss) before income taxes
Income (loss) before income taxes	$ 429	$ (262)	$ 201
Provision (benefit) for federal, state and local income taxes
Provision (benefit) for federal, state and local income taxes	$ 0	$ 0	(78)
Deferred united states federal tax expense (benefit)			66
Deferred state and local tax expense (benefit)			$ 12

INCOME TAXES - Income tax expense (benefit) (Details)	12 Months Ended
INCOME TAXES - Income tax expense (benefit) (Details)	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Total income tax expense (benefit) differs from the U.S. federal income tax rate to pre-tax income (loss)
U.S. federal corporate tax rate (as a percent)	21.00%	35.00%	35.00%
State income taxes, net (as a percent)	6.00%	6.00%	6.00%
Exclusion of tax attributable to noncontrolling interests (as a percent)	(5.00%)
Decrease in U.S. federal corporate tax rate (as a percent)		(91.00%)
Tax credits, net (as a percent)	6.00%	19.00%
Cancellation of debt income, net (as a percent)			(275.00%)
Stock-based compensation, net (as a percent)		(1.00%)	2.00%
Change in valuation allowance, net (as a percent)	(17.00%)	33.00%	192.00%
Other (as a percent)	1.00%	(1.00%)	1.00%
Effective tax rate (as a percent)			(39.00%)

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				24 Months Ended
	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016
Corporate tax rate (as a percent)			21.00%	35.00%	35.00%
Valuation allowances		$ 780	$ 625	$ 706	$ 780		$ 780
Cancellation of debt income, for tax purposes	$ 1,400				1,300	$ 1,400	2,700
Increase (decrease) in valuation allowance	(82)	$ 480			398
Deferred income tax benefit	(78)				(78)
State tax provision	$ 4				$ (14)
Net change in valuation allowance (as a percent)			(17.00%)	33.00%	192.00%
Income tax benefit related to change in valuation allowance on deferred tax assets					$ 384
Reduction of net operating loss and the federal tax basis of property, plant and equipment							1,200
Reduction of net operating loss and the state tax basis of 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, 2018	Dec. 31, 2017	Dec. 31, 2016
Deferred Tax Assets and Liabilities
Deferred Tax Assets, debt	$ 253	$ 324
Deferred Tax Assets, property, plant and equipment differences	11	33
Deferred Tax Assets, postretirement benefit accruals	27	33
Deferred Tax Assets, deferred compensation and benefits	56	53
Deferred Tax Assets, asset retirement obligations	129	126
Deferred Tax Assets, net operating loss carryforwards and credits	396	417
Deferred Tax Assets, investment in partnerships	93
Deferred Tax Assets, all other	17	22
Deferred Tax Assets, subtotal	982	1,008
Deferred Tax Assets, valuation allowance	(625)	(706)	$ (780)
Deferred Tax Assets, total net deferred taxes	357	302
Deferred Tax Liabilities, property, plant and equipment differences	(316)	(261)
Deferred Tax Liabilities, all other	(41)	(41)
Deferred Tax Liabilities, total net deferred taxes	(357)	$ (302)
Federal
Deferred Tax Assets and Liabilities
Net operating loss carryforwards	555
Percentage of taxable income that can be utilized for offsetting CRC's net operating loss carryforwards		100.00%
Interest expense carryforward	393
Tax credit carryforwards	49
State and Local Jurisdiction \| CALIFORNIA
Deferred Tax Assets and Liabilities
Net operating loss carryforwards	1,600
Tax credit carryforwards	$ 16

INCOME TAXES - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Unrecognized Tax Benefits
Unrecognized tax benefits on net operating loss carryforward	$ 25	$ 25

STOCK-BASED COMPENSATION - General (Details) - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Employee awards
Compensation expense	$ 45	$ 29	$ 30
Income tax benefit on stock-based compensation	0	0	0
Unrecognized compensation expense	$ 44
Weighted-average period over which unrecognized compensation expense is expected to be recognized	2 years
General and administrative expenses
Employee awards
Compensation expense	$ 36	23	23
Production costs
Employee awards
Compensation expense	$ 9	6	7
Long-Term Incentive Plan
Employee awards
Aggregate number of common stock shares authorized for issuance	4.7
Number of shares issued under the plan	4.1
Number of shares available for future issuance	0.6
Cash-settled Awards
Employee awards
Cash payments	$ 24	$ 6	$ 5

STOCK-BASED COMPENSATION - Restricted Stock (Details) - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Restricted Stock
Roll-forward of awards
Unvested, beginning of year (in shares)	1,035,000
Granted (in shares)	291,000
Vested (in shares)	(466,000)
Forfeited (in shares)	(41,000)
Unvested, end of year (in shares)	819,000	1,035,000
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)	46,000	98,000
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)	$ 16.04
Granted, weighted-average grant-date fair value (in dollars per share)	20.62
Vested, weighted-average grant-date fair value (in dollars per share)	16.57
Forfeited, weighted-average grant-date fair value (in dollars per share)	16.33
Unvested, end of year, weighted-average grant-date fair value (in dollars per share)	$ 17.36	$ 16.04
Cash-Settled Restricted Stock
Roll-forward of awards
Unvested, beginning of year (in shares)	2,066,000
Granted (in shares)	1,656,000
Vested (in shares)	(903,000)
Forfeited (in shares)	(183,000)
Unvested, end of year (in shares)	2,636,000	2,066,000

STOCK-BASED 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, 2018 $ / shares shares
PSU 2015 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 2015 Awards \| Minimum
Employee awards
Percentage of payouts target awards		0.00%
PSU 2015 Awards \| Maximum
Employee awards
Percentage of payouts target awards		200.00%
Number of people impacted by modification \| person	50
PSU 2015 Awards \| Monte Carlo valuation method
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) \| $ / shares	$ 18.50	$ 42.00
PSU 2018 Awards
Employee awards
Percentage of PSU performance target based on specified VCI results			50.00%
Percentage of performance target based on CRC combined production costs compared to change in peer group production costs			50.00%
Percentage of awards to be paid in stock			60.00%
Percentage of awards to be paid in cash			40.00%
PSU 2018 Awards \| Minimum
Employee awards
Percentage of payouts target awards			0.00%
PSU 2018 Awards \| Maximum
Employee awards
Percentage of payouts target awards			200.00%
Stock-Settled PSU awards \| Certain executives
Roll-forward of awards
Unvested, beginning of year (in shares)			384
Granted (in shares)			306
Vested (in shares)			(384)
Forfeited (in shares)			(12)
Unvested, end of year (in shares)			294
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) \| $ / shares			$ 39.05
Granted, weighted-average grant-date fair value (in dollars per share) \| $ / shares			18.34
Vested, weighted-average grant-date fair value (in dollars per share) \| $ / shares			39.05
Forfeited, weighted-average grant-date fair value (in dollars per share) \| $ / shares			18.34
Unvested, end of year, weighted-average grant-date fair value (in dollars per share) \| $ / shares			$ 18.34
Cash-Settled PSU awards
Roll-forward of awards
Granted (in shares)			204
Forfeited (in shares)			(8)
Unvested, end of year (in shares)			196

STOCK-BASED COMPENSATION - Stock Options (Details) - Stock Options	12 Months Ended
	Dec. 31, 2018 $ / shares shares	Dec. 31, 2017 $ / shares shares	Dec. 31, 2016 shares	Dec. 31, 2015 $ / shares	Dec. 31, 2014 $ / shares
Employee awards
Award vesting period	3 years			3 years	3 years
Stock options
Award term	P7Y			P7Y	P7Y
Percentage of awards vesting each year	0.33%			0.33%	0.33%
Options
Beginning balance (in shares) \| shares	1,105,000
Granted (in shares) \| shares	187,000	0.000	0.000
Expired or Canceled (in shares) \| shares	5,000
Ending balance (in shares) \| shares	1,287,000	1,105,000
Exercisable, end of year (in shares) \| shares	1,109,000
Weighted-Average Exercise Price
Beginning balance, weighted-average exercise price (in dollars per share)	$ 69.95
Granted weighted-average exercise price (in dollars per share)	20.17
Expired or Canceled weighted-average exercise price (in dollars per share)	42.00
Ending balance, weighted-average exercise price (in dollars per share)	62.82	$ 69.95
Exercisable, end of year, weighted-average exercise price (in dollars per share)	69.66
Weighted-Average Grant-Date Fair Value
Beginning balance, weighted-average grant date fair value (in dollars per share)	18.43
Weighted-average, grant date fair value of stock option awards granted (in dollars per share)	$ 10.02
Expired or Canceled weighted average, grant date fair value (in dollars per share)	15.00
Ending balance, weighted-average grant date fair value (in dollars per share)	$ 17.22	$ 18.43
Exercisable, end of year, weighted-average grant date fair value (in dollars per share)	$ 18.38
Black-Scholes valuation method
Grant-date valuations
Expected life (in years)	4 years 6 months			4 years 6 months	4 years 6 months
Expected volatility (as a percent)	69.85%			44.70%	35.40%
Risk-free interest rate (as a percent)	2.63%			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)	$ 20.17			$ 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)	$ 10.02			$ 15.00	$ 19.80

STOCK-BASED COMPENSATION - Employee Stock Purchase Plan (Details) - Employee Stock Purchase Plan - shares shares in Millions		12 Months Ended
	Jan. 01, 2015	Dec. 31, 2018
Employee awards
Aggregate number of common stock shares authorized for issuance		1.5
Employee Stock Purchase Plan
Percentage of share purchase price of common stock under ESPP	85.00%
Common stock issued under employee stock purchase plan as of December 31, 2018 (in shares)		0.8
Number of shares available for future issuance		0.7
Common stock issued under employee stock purchase plan (in shares)		0.1

EQUITY (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	May 31, 2016
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)	42,901,946
Balance at the end of the year (in shares)	48,650,420	42,901,946
Accumulated Other Comprehensive Income (Loss)
Pension and post-retirement adjustments	$ 6	$ 23
Common Stock
Common stock issuances
Balance at the beginning of the year (in shares)		42,543,000
Common stock shares issued (in shares)	6,110,000	359,000
Common stock shares canceled (in shares)	(362,000)

EARNINGS PER SHARE - Calculation of EPS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Basic EPS calculation
Net income (loss)	$ 429	$ (262)	$ 279
Less: Net income attributable to noncontrolling interests	(101)	(4)
Net income (loss) attributable to common stock	328	(266)	279
Less: Net income allocated to participating securities	(7)		(6)
Net income (loss) available to common stockholders	$ 321	$ (266)	$ 273
Weighted-average common shares outstanding	47.4	42.5	40.4
Basic EPS (in dollars per share)	$ 6.77	$ (6.26)	$ 6.76
Diluted EPS calculation
Net income (loss)	$ 429	$ (262)	$ 279
Less: Net income attributable to noncontrolling interests	(101)	(4)
Net income (loss) attributable to common stock	328	(266)	279
Less: Net income allocated to participating securities	(7)		(6)
Net income (loss) available to common stockholders	$ 321	$ (266)	$ 273
Weighted-average common shares outstanding	47.4	42.5	40.4
Diluted EPS (in dollars per share)	$ 6.77	$ (6.26)	$ 6.76
Weighted-average anti-dilutive shares	1.6	2.3	1.1

PENSION AND POSTRETIREMENT BENEFIT PLANS - Defined Contribution Plans (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Defined Contribution Plans
Other long-term liabilities for the supplemental retirement plan	$ 36	$ 32
Expenses under provisions of defined contribution and supplemental plans	$ 35	$ 33	$ 32

PENSION AND POSTRETIREMENT BENEFIT PLANS - Defined Benefit Plan (Details)	Dec. 31, 2018 person
Pension Benefit
Defined Benefit 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, 2018	Dec. 31, 2017	Dec. 31, 2016
Amounts recognized in the balance sheet:
Amounts recognized in accumulated other comprehensive (loss) income:	$ (6)	$ (23)
Pension Benefit
Amounts recognized in the balance sheet:
Other long-term liabilities	(14)	(19)
Amounts recognized in the consolidated balance sheets, total	(14)	(19)
Amounts recognized in accumulated other comprehensive (loss) income:	(10)	(13)
Changes in the benefit obligation:
Benefit obligation - beginning of year	65	70
Service cost- benefits earned during the period	1	1	$ 1
Interest cost on projected benefit obligation	2	2	3
Actuarial (gain) loss	(2)	7
Benefits paid	(10)	(15)
Benefit obligation - end of year	56	65	70
Changes in plan assets:
Fair value of plan assets - beginning of year	46	44
Actual return on plan assets	(2)	5
Employer contributions	8	12
Benefits paid	(10)	(15)
Fair value of plan assets - end of year	42	46	44
Unfunded status	(14)	(19)
Postretirement Benefit
Amounts recognized in the balance sheet:
Accrued liabilities	(2)	(3)
Other long-term liabilities	(82)	(90)
Amounts recognized in the consolidated balance sheets, total	(84)	(93)
Amounts recognized in accumulated other comprehensive (loss) income:	4	(10)
Changes in the benefit obligation:
Benefit obligation - beginning of year	93	77
Service cost- benefits earned during the period	4	3	3
Interest cost on projected benefit obligation	4	4	3
Actuarial (gain) loss	(14)	11
Benefits paid	(3)	(2)
Benefit obligation - end of year	84	93	$ 77
Changes in plan assets:
Employer contributions	3	2
Benefits paid	(3)	(2)
Unfunded status	$ (84)	$ (93)

PENSION AND POSTRETIREMENT BENEFIT PLANS - Obligations and Asset Fair Values (Details) - Postretirement Benefit - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Pension plans with accumulated benefit obligation in excess of plan assets
Projected Benefit Obligation	$ 56	$ 65
Accumulated Benefit Obligation	53	62
Fair Value of Plan Assets	$ 42	$ 46

PENSION AND POSTRETIREMENT BENEFIT PLANS - Cost (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Pension Benefit
Net periodic benefit costs:
Service cost- benefits earned during the period	$ 1	$ 1	$ 1
Interest cost on projected benefit obligation	2	2	3
Expected return on plan assets	(3)	(3)	(3)
Amortization of net actuarial loss	2	2	2
Settlement costs	4	5	8
Net periodic benefit costs	6	7	11
Amounts recognized in other comprehensive income (loss):
Net actuarial (loss) gain	(3)	(4)	(9)
Settlement cost	4	5	8
Amortization of net actuarial gain/loss	2	2	2
Total recognized in other comprehensive income (loss)	3	3	1
Postretirement Benefit
Net periodic benefit costs:
Service cost- benefits earned during the period	4	3	3
Interest cost on projected benefit obligation	4	4	3
Net periodic benefit costs	8	7	$ 6
Amounts recognized in other comprehensive income (loss):
Net actuarial (loss) gain	14	(12)
Total recognized in other comprehensive income (loss)	$ 14	$ (12)

PENSION AND POSTRETIREMENT BENEFIT PLANS - Assumptions (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Pension Benefit
Benefit Obligation Assumptions:
Discount rate (as a percent)	4.22%	3.53%
Rate of compensation increase (as a percent)	4.00%	4.00%
Net Periodic Benefit Cost Assumptions:
Discount rate (as a percent)	3.53%	3.88%
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)	4.57%	3.87%
Net Periodic Benefit Cost Assumptions:
Discount rate (as a percent)	3.87%	4.58%
Assumed health care cost trend rates
U.S. Consumer Price Index (CPI) increase (as a percent)	1.78%	1.97%
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	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Asset Class:
Cash equivalents	$ 1	$ 3
Pension Benefit
Asset Class:
Fair value of plan assets	42	46	$ 44
Pension Plan Assets - Gross \| Pension Benefit
Asset Class:
Fair value of plan assets	$ 42	$ 46
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	$ 9	$ 7
U.S. equity \| Pension Benefit
Asset Class:
Fair value of plan assets	9	9
International equity \| Pension Benefit
Asset Class:
Fair value of plan assets	5	5
Bond funds \| Pension Benefit
Asset Class:
Fair value of plan assets	5	6
Blend funds \| Pension Benefit
Asset Class:
Fair value of plan assets	2	3
Value funds \| Pension Benefit
Asset Class:
Fair value of plan assets	2	3
Growth funds \| Pension Benefit
Asset Class:
Fair value of plan assets	2	3
Guaranteed deposit account \| Pension Benefit
Asset Class:
Fair value of plan assets	$ 7	$ 7
Debt securities
Defined Benefit Plan Disclosure
Target allocation of plan assets (as a percent)	35.00%	35.00%
Level 1
Asset Class:
Cash equivalents	$ 1	$ 3
Level 1 \| Pension Plan Assets - Gross \| Pension Benefit
Asset Class:
Fair value of plan assets	12	18
Level 1 \| Bond funds \| Pension Benefit
Asset Class:
Fair value of plan assets	5	6
Level 1 \| Blend funds \| Pension Benefit
Asset Class:
Fair value of plan assets	2	3
Level 1 \| Value funds \| Pension Benefit
Asset Class:
Fair value of plan assets	2	3
Level 1 \| Growth funds \| Pension Benefit
Asset Class:
Fair value of plan assets	2	3
Level 2 \| Pension Plan Assets - Gross \| Pension Benefit
Asset Class:
Fair value of plan assets	23	21
Level 2 \| Fixed Income \| Pension Benefit
Asset Class:
Fair value of plan assets	9	7
Level 2 \| U.S. equity \| Pension Benefit
Asset Class:
Fair value of plan assets	9	9
Level 2 \| International equity \| Pension Benefit
Asset Class:
Fair value of plan assets	5	5
Level 3 \| Pension Plan Assets - Gross \| Pension Benefit
Asset Class:
Fair value of plan assets	7	7
Level 3 \| Guaranteed deposit account \| Pension Benefit
Asset Class:
Fair value of plan assets	$ 7	$ 7

PENSION AND POSTRETIREMENT BENEFIT PLANS - Benefit Payments (Details) $ in Millions	Dec. 31, 2018 USD ($)
Pension Benefit
Defined Benefit Plan Disclosure
Expected contribution in 2018	$ 3
Estimated future undiscounted benefit payments
2019	17
2020	5
2021	4
2022	4
2023	4
2024 - 2028	14
Postretirement Benefit
Defined Benefit Plan Disclosure
Expected contribution in 2018	3
Estimated future undiscounted benefit payments
2019	3
2020	4
2021	4
2022	4
2023	4
2024 - 2028	$ 23

REVENUE RECOGNITION - Commodity Sales Contracts and Marketing (Details)	12 Months Ended
	Dec. 31, 2018
REVENUE RECOGNITION
Typical term of payment following invoicing	30 days

REVENUE RECOGNITION - Disaggregation of revenue (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disaggregation of revenue
Revenue from contract with customers	$ 2,590	$ 1,936	$ 1,621
Other revenue	473	160	132
Net derivative gain from commodity contracts	1	(90)	(206)
Total revenues and other	3,064	2,006	1,547
Oil
Disaggregation of revenue
Revenue from contract with customers	2,110	1,549	1,325
NGLs
Disaggregation of revenue
Revenue from contract with customers	260	210	132
Natural gas
Disaggregation of revenue
Revenue from contract with customers	220	177	164
Electricity
Disaggregation of revenue
Other revenue	111	125	107
Marketing, trading and other
Disaggregation of revenue
Other revenue	361	$ 35	$ 25
Interest income
Disaggregation of revenue
Other revenue	$ 1

REVENUE RECOGNITION - Statements of operations (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
New Accounting Pronouncements or Change in Accounting Principle
Oil and gas sales	$ 2,590	$ 1,936	$ 1,621
Other revenue	473	160	132
Other expenses, net	399	$ 106	$ 79
Difference between Revenue Guidance in Effect before and after Topic 606
New Accounting Pronouncements or Change in Accounting Principle
Oil and gas sales	22
Other revenue	81
Other expenses, net	103
ASU 2014-09 \| Balances without Adoption of ASC 606
New Accounting Pronouncements or Change in Accounting Principle
Oil and gas sales	2,568
Other revenue	392
Other expenses, net	$ 296

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Deferred tax valuation allowance
VALUATION AND QUALIFYING ACCOUNTS
Balance at Beginning of Period	$ 706	$ 780	$ 382
Charged (Credited) to Costs and Expenses	(81)	(78)	398
Charged to Other Accounts		4
Balance at End of Period	625	706	780
Other asset valuation allowance
VALUATION AND QUALIFYING ACCOUNTS
Balance at Beginning of Period	44	56	68
Charged (Credited) to Costs and Expenses	(13)	(12)	(12)
Balance at End of Period	$ 31	$ 44	$ 56