content_image/1056508.jpg
## Marketing 

The 2018 information in the table below includes the results from the gas gathering assets included in the Fayetteville Shale sale which closed in December 2018. 

<img src='content_image/1056508.jpg'>

(1) Amounts for 2018 include our Fayetteville Shale-related midstream gathering business, which was sold in December 2018. 

(2) Includes $2 million of restructuring charges for the year ended December 31, 2018. 

(3) Includes a $145 million non-cash impairment related to the midstream gathering assets associated with the Fayetteville Shale sale in December 2018 and a $10 million non-cash impairment related to certain non-core gathering assets for the year ended December 31, 2018. 

## Operating Income 

• Marketing operating income for the year ended December 31, 2018 included a $7 million loss related to our midstream gathering operations in the Fayetteville Shale, which we sold in December 2018. Excluding this amount, operating income decreased $24 million for the year ended December 31, 2019, compared to 2018, primarily due to a $26 million decrease in marketing margin. 

• The margin generated from marketing activities was $16 million and $42 million for the years ended December 31, 2019 and 2018, respectively. 

Marketing margins are driven primarily by volumes marketed and may fluctuate depending on the prices paid for commodities, related cost of transportation and the ultimate disposition of those commodities. Increases and decreases in marketing revenues due to changes in commodity prices and volumes marketed are largely offset by corresponding changes in marketing purchase expenses. Efforts to mitigate the costs of excess transportation capacity can result in greater expenses and therefore lower Marketing margins. 

## Revenues 

• Revenues from our marketing activities decreased $648 million for the year ended December 31, 2019, compared to 2018, primarily due to a 14% decrease in the price received for volumes marketed and a 62 Bcfe decrease in the volumes marketed. 

## Operating Costs and Expenses 

• Marketing operating costs and expenses for the year ended December 31, 2018 included $140 million related to our midstream gathering operations in the Fayetteville Shale, which were sold in December 2018. Excluding this amount, operating costs and expenses decreased $1 million for the year ended December 31, 2019, compared to the year ended December 31, 2018, primarily due to decreased personnel costs and the implementation of cost reduction initiatives. 

## Impairments 

• In the third quarter of 2019, we recorded non-cash impairments of $3 million to non-core gathering assets. 

