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Assets Held for Sale or Sold
3 Months Ended
Mar. 31, 2017
Disposal Group Excluding Discontinued Operation Additional Disclosures [Abstract]  
Disposal Groups Exluding Discontinued Operations Disclosure [TextBlock]

Note 4—Assets Held for Sale and Other Planned Dispositions

Assets Held for Sale

On March 29, 2017, we signed a definitive agreement with Cenovus Energy to sell our 50 percent nonoperated interest in the Foster Creek Christina Lake (FCCL) oil sands partnership, as well as the majority of our western Canada gas assets, for total consideration of approximately $13.3 billion, based on Cenovus’ share price at the date of signing. Consideration for the transaction consists of $10.6 billion of cash payable at closing, 208 million Cenovus shares, and a five-year uncapped contingent payment. The cash portion of the consideration is subject to customary adjustments. The contingent payment, calculated and paid on a quarterly basis, is $6 million Canadian dollars for every $1 Canadian dollar by which the Western Canada Select (WCS) quarterly average crude price exceeds $52 Canadian dollars per barrel. On the date of signing, we received a $130 million deposit from Cenovus, which is included in the “Cash Flows From Investing Activities” section in our consolidated statement of cash flows. Both FCCL and the western Canada gas assets are included in the Canada segment. The transaction is subject to specific conditions precedent being satisfied, including regulatory review and approval, and is expected to close in the second quarter of 2017.

At March 31, 2017, the carrying value of our equity investment in FCCL was $9.0 billion. Our interests in the western Canada producing properties were considered held for sale resulting in the reclassification of $2.4 billion of properties, plants and equipment (PP&E) to “Prepaid expenses and other current assets” and $671 million of noncurrent liabilities, primarily asset retirement obligations, to “Other accruals,” on our consolidated balance sheet. The before-tax loss associated with our interests in the western Canada gas producing properties was $61 million and $145 million for the three months ended March 31, 2017 and March 31, 2016, respectively. We reported before-tax equity earnings of $120 million and a before-tax equity loss of $154 million related to FCCL for the three months ended March 31, 2017 and March 31, 2016, respectively.

Other Planned Dispositions

On April 12, 2017, we signed a definitive agreement to sell our interests in the San Juan Basin for up to $3.0 billion of total proceeds, comprised of $2.7 billion in cash and a contingent payment of up to $300 million. The cash portion of the proceeds is subject to customary adjustments. The six-year contingent payment is effective beginning January 1, 2018, and is due annually for the periods in which the monthly U.S. Henry Hub (HH) price is at or above $3.20 per million British thermal units (MMBTU). The transaction is subject to specific conditions precedent being satisfied, including regulatory approval, and is expected to close in the third quarter of 2017. The San Juan Basin results of operations are reported within the Lower 48 segment.

At March 31, 2017, the net carrying value was approximately $5.8 billion, consisting primarily of $6.2 billion of PP&E and $392 million of asset retirement obligations. The assets met held for sale criteria in April 2017. A noncash impairment will be recorded in the second quarter of 2017.