Table of Contents Index to Financial Statements Working Capital Off-Balance Sheet Arrangements Actual capital expenditure levels may vary significantly from period to period due to many factors, including drilling results, natural gas, oil and NGL prices, industry conditions, the prices and availability of goods and services, and the extent to which properties are acquired or non-strategic assets are sold. Cash Flow from Financing Activities For the years ended December 31, Increase/ (in millions except percentages) 2018 2017 (Decrease) Debt  (1) $ 2,318  $ 4,391  $ (2,073) Equity $ 2,362  $ 1,979  $ 383  Total debt to capitalization ratio 50%  69%  Debt  (1) $ 2,318  $ 4,391  $ (2,073) Less: Cash and cash equivalents  (1) 201  916  (715) Debt, net of cash and cash equivalents  (2) $ 2,117  $ 3,475  $ (1,358) (1) The decreases in total debt and cash and cash equivalents as of December 31, 2018, as compared to December 31, 2017, primarily relates to the repayment of the 2016 term loan in April 2018 and replacement with a new 2018 revolving credit facility as well as the repurchase of $900 million of certain of our senior notes. (2) Debt, net of cash and cash equivalents is a non-GAAP financial measure of a company’s ability to repay its debt if it was all due today. · Net cash used in financing activities for the year ended December 31, 2018 was $2,297 million, compared to net cash used in financing activities of $352 million for the same period in 2017.  · In January 2018, we paid $27 million for a preferred stock dividend declared in the fourth quarter of 2017. · In April 2018, we fully repaid our $1,191 million 2016 term loan and replaced it with the 2018 revolving credit facility with a $2.1 billion borrowing base. We recognized a loss on early extinguishment of debt of $8 million. · In December 2018, upon closing of the Fayetteville Shale sale, a portion of the sale proceeds was used to complete a tender offer to repurchase $40 million of our 4.05% Senior Notes due January 2020, $787 million of our 4.10% Senior Notes due March 2022 and $73 million of our 4.95% Senior Notes due January 2025, reducing annual bond debt interest by approximately $39 million. We recognized a loss on early extinguishment of debt of $9 million, primarily related to the early retirement premiums. · We also used a portion of the net proceeds from the Fayetteville Shale sale to repurchase 39 million shares of common stock for approximately $180 million. We refer you to  Note 8  to the consolidated financial statements included in this Annual Report for additional discussion of our outstanding debt and credit facilities. We may enter into off-balance sheet arrangements and transactions that can give rise to material off-balance sheet obligations. As of December 31, 2018, our material off-balance sheet arrangements and transactions include operating lease · We had positive working capital of $110 million at December 31, 2018 primarily due to $201 million of cash and cash equivalents resulting from the net proceeds from the Fayetteville Shale sale and an increase in accounts receivable primarily related to the increase in commodity pricing in December 2018, as compared to December 2017. · At December 31, 2017, we had positive working capital of $729 million primarily due to $916 million of cash and cash equivalents resulting from our fully-drawn 2016 term loan. 63 (1) Includes $60 million and $37 million for the years ended December 31, 2018 and 2017, respectively, related to our water infrastructure project. For the years ended December 31, 2018 2017 2016 Gross Operated Well Count Summary: Drilled 106  134  62  Completed 119  151  86  Wells to sales 138  166  85 