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Derivatives
 3 Months Ended
Mar. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives Derivatives
For further information regarding the fair value measurement of derivative instruments, see Note 14. All of our commodity derivatives are subject to enforceable master netting arrangements or similar agreements under which we report net amounts.
The following tables present the gross fair values of derivative instruments and the reported net amounts along with where they appear on the consolidated balance sheets.
March 31, 2022
(In millions)AssetLiabilityNet Asset (Liability)Balance Sheet Location
Not Designated as Hedges
Commodity$— $122 $(122)Other current liabilities
Interest Rate1 — 1 Other noncurrent assets
Total Not Designated as Hedges$1 $122 $(121)
Cash Flow Hedges
Interest Rate$1 $— $1 Other current assets
Interest Rate9 — 9 Other noncurrent assets
Total Designated Hedges$10 $— $10 
Total$11 $122 $(111)

December 31, 2021
(In millions)AssetLiabilityNet Asset (Liability)Balance Sheet Location
Not Designated as Hedges
Commodity1 8 (7)Other current liabilities
Interest Rate27 — 27 Other noncurrent assets
Total Not Designated as Hedges$28 $8 $20 
Cash Flow Hedges
Interest Rate$— $3 $(3)Other noncurrent assets
Interest Rate— 2 (2)Deferred credits and other liabilities
Total Designated Hedges$— $5 $(5)
Total$28 $13 $15 

Derivatives Not Designated as Hedges
Commodity Derivatives
We have entered into multiple crude oil and natural gas derivatives indexed to the respective indices as noted in the table below, related to a portion of our forecasted U.S. sales through 2022. These derivatives consist of three-way collars and NYMEX roll basis swaps. Three-way collars consist of a sold call (ceiling), a purchased put (floor) and a sold put. The ceiling price is the maximum we will receive for the contract volumes; the floor is the minimum price we will receive, unless the market price falls below the sold put strike price. In this case, we receive the NYMEX WTI price plus the difference between the floor and the sold put price.
The following table sets forth outstanding derivative contracts as of March 31, 2022, and the weighted average prices for those contracts:
2022
Second QuarterThird QuarterFourth Quarter
Crude Oil
NYMEX WTI Three-Way Collars
Volume (Bbls/day)50,000 30,000 30,000 
Weighted average price per Bbl:
Ceiling$98.79 $97.52 $97.52 
Floor$58.00 $56.67 $56.67 
Sold put$48.00 $46.67 $46.67 
NYMEX Roll Basis Swaps
Volume (Bbls/day)60,000 60,000 60,000 
Weighted average price per Bbl$0.67 $0.67 $0.67 
Natural Gas
Henry Hub Three-Way Collars
Volume (MMBtu/day)100,000 100,000 100,000 
Weighted average price per MMBtu:
Ceiling$7.13 $7.13 $7.13 
Floor$3.88 $3.88 $3.88 
Sold Put$2.88 $2.88 $2.88 
The unrealized and realized gain (loss) impact of our commodity derivative instruments appears in the table below and is reflected in net gain (loss) on commodity derivatives in the consolidated statements of income.
Three Months Ended March 31,
(In millions)20222021
Unrealized gain (loss) on derivative instruments, net$(114)$(82)
Realized gain (loss) on derivative instruments, net(a)
$(29)$(71)
(a)During the first quarter of 2022, net cash paid for settled derivative positions was $28 million. During the first quarter of 2021, net cash paid for settled derivative positions was $11 million.

Interest Rate Swaps
During 2020, we entered into forward starting interest rate swaps with a notional amount of $350 million to hedge variations in cash flows arising from fluctuations in the LIBOR benchmark interest rate related to forecasted interest payments of a future debt issuance in 2025. The expected proceeds of the future debt issuance were intended to refinance the $900 million 3.85% Senior Notes due 2025 (“2025 Notes”). In September 2021, we fully redeemed these 2025 Notes. In March 2022, we closed these positions and settled the interest rate swaps for proceeds of $44 million. During the three months ended March 31, 2022, we recorded a cumulative $17 million gain within net interest for these swaps.
During the second quarter of 2021, we de-designated $25 million of the $320 million Houston office cash flow hedges (discussed further in the Derivatives Designated as Cash Flow Hedges section below), as the construction cost budget estimate was reduced. These interest rate swap contracts began to settle in January 2022. Our realized loss for the first quarter of 2022 was immaterial. The mark-to-market activity within net interest to reflect the change in value of the unsettled interest rate swaps during the three months ended March 31, 2022 was immaterial.
The following table presents, by maturity date, information about our de-designated forward starting interest rate swap agreements, including the rate. We have the discretion to liquidate the positions should we choose.
March 31, 2022December 31, 2021
Maturity Date
Aggregate Notional Amount
(in millions)
Weighted Average, LIBOR
Aggregate Notional Amount
(in millions)
Weighted Average, LIBOR
June 1, 2025$— — %$350 0.95 %
September 9, 2026$25 1.45 %$25 1.45 %

Derivatives Designated as Cash Flow Hedges
During 2019, we entered into forward starting interest rate swaps with a total notional amount of $320 million to hedge variations in cash flows related to the 1-month LIBOR component of future lease payments of our future Houston office. During the second quarter of 2021, we de-designated $25 million of these hedges as the construction cost budget estimate associated with the project was reduced. Although lease commencement began in September 2021, our first cash lease payment was for February 2022 rent paid in March. The first settlement date for the interest rate swap was in January 2022. The last swap will mature in September 2026. During the first quarter of 2022, net cash paid for the settled interest rate swap positions was $1 million. As of March 31, 2022, we expect to reclassify $1 million from accumulated other comprehensive income into the income statement over the next twelve months. See Note 12 for further details regarding the lease of the Houston office.
The following table presents, by maturity date, information about our interest rate swap agreements, including the weighted average LIBOR-based, fixed rate.
March 31, 2022December 31, 2021
Maturity Date
Aggregate Notional Amount
(in millions)
Weighted Average, LIBOR
Aggregate Notional Amount
(in millions)
Weighted Average, LIBOR
September 9, 2026$295 1.52 %$295 1.52 %