Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2011

Carrying value and fair value of financial instruments


	September 30, 2011						December 31, 2010
	Carrying			Fair			Carrying			Fair
	Amount			Value			Amount			Value
				(In millions)
Long-term financing obligations, including current maturities	$	12,881		$	14,230		$	14,006		$	14,686
Marketable securities in non-qualified compensation plans		20			20			20			20
Commodity-based derivatives		(45	)		(45	)		(186	)		(186	)
Interest rate derivatives		(13	)		(13	)		(61	)		(61	)
Other		(11	)		(11	)		(11	)		(11	)

Fair value of financial instruments


	September 30, 2011											December 31, 2010
	Level 1		Level 2			Level 3			Total			Level 1		Level 2			Level 3			Total
Assets
Commodity-based derivatives
Production-related oil and natural gas derivatives	$	—	$	379		$	—		$	379		$	—	$	373		$	—		$	373
Other natural gas derivatives		—		74			16			90			—		139			18			157
Power-related derivatives		—		—			16			16			—		—			31			31

Total commodity-based derivative assets		—		453			32			485			—		512			49			561
Interest rate derivatives designated as hedges
Fair value hedges		—		3			—			3			—		8			—			8
Impact of master netting arrangements		—		(113	)		(10	)		(123	)		—		(229	)		(14	)		(243	)

Total price risk management assets	$	—	$	343		$	22		$	365		$	—	$	291		$	35		$	326
Marketable securities in non-qualified compensation plans		20		—			—			20			20		—			—			20

Total net assets	$	20	$	343		$	22		$	385		$	20	$	291		$	35		$	346


Liabilities
Commodity-based derivatives
Production-related oil and natural gas derivatives	$	—	$	(83	)	$	—		$	(83	)	$	—	$	(136	)	$	—		$	(136	)
Other natural gas derivatives		—		(88	)		(56	)		(144	)		—		(162	)		(90	)		(252	)
Power-related derivatives		—		—			(303	)		(303	)		—		—			(359	)		(359	)

Total commodity-based derivative liabilities		—		(171	)		(359	)		(530	)		—		(298	)		(449	)		(747	)
Interest rate derivatives designated as hedges
Cash flow hedges		—		(16	)		—			(16	)		—		(69	)		—			(69	)
Impact of master netting arrangements		—		113			10			123			—		229			14			243

Total price risk management liabilities	$	—	$	(74	)	$	(349	)	$	(423	)	$	—	$	(138	)	$	(435	)	$	(573	)
Other		—		—			(12	)		(12	)		—		—			(12	)		(12	)


Total net liabilities	$	—	$	(74	)	$	(361	)	$	(435	)	$	—	$	(138	)	$	(447	)	$	(585	)


Total	$	20	$	269		$	(339	)	$	(50	)	$	20	$	153		$	(412	)	$	(239	)

Changes in level 3 fair value of assets and liabilities



				Change in Fair Value			Change in Fair Value
	Balance at			Reflected in			Reflected in						Balance at
	Beginning of			Operating			Operating						End of
	Period			Revenues⁽¹⁾			Expenses⁽²⁾			Settlements			Period
							(In millions)
Quarter Ended September 30, 2011
Assets	$	28		$	(5	)	$	—		$	(1	)	$	22
Liabilities		(396	)		4			(1	)		32			(361	)

Total	$	(368	)	$	(1	)	$	(1	)	$	31		$	(339	)


Nine Months Ended September 30, 2011
Assets	$	35		$	(11	)	$	—		$	(2	)	$	22
Liabilities		(447	)		1			(7	)		92			(361	)

Total	$	(412	)	$	(10	)	$	(7	)	$	90		$	(339	)


⁽¹⁾		Includes approximately $1 million and $10 million of net losses that had not been realized through settlements for the quarter and nine months ended September 30, 2011.

⁽²⁾		Includes approximately $1 million and $5 million of net losses that had not been realized through settlements for the quarter and nine months ended September 30, 2011.

Impact of commodity-based derivatives to income statement and statement of other comprehensive income


	2011								2010
						Other								Other
	Operating			Interest		Comprehensive			Operating			Interest		Comprehensive
	Revenues			Expense		Income (Loss)			Revenues			Expense		Income (Loss)
						(In millions)
Quarters ended September 30,
Production-related derivatives	$	251		$	—	$	2		$	184		$	—	$	2
Other natural gas and power derivatives		(1	)		—		—			(14	)		—		—
Total interest rate derivatives		—			12		84	⁽¹⁾		—			4		(43	)

Total	$	250		$	12	$	86		$	170		$	4	$	(41	)


Nine months ended September 30,
Production-related derivatives	$	274		$	—	$	8		$	468		$	—	$	8
Other natural gas and power derivatives		(8	)		—		—			(40	)		—		—
Total interest rate derivatives		—			20		53	⁽¹⁾		—			13		(89	)

Total	$	266		$	20	$	61		$	428		$	13	$	(81	)


⁽¹⁾		Includes $125 million related to the recognition of the accumulated other comprehensive loss associated with interest rate swaps on Ruby’s debt in conjunction with its deconsolidation (see Note 15) included in Loss on deconsolidation of subsidiary in the condensed consolidated statements of income.

- Definition

This element represents the disclosure related to assets and liabilities by class, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring and/or nonrecurring basis in periods after initial recognition (for example, impaired assets). The disclosures that may be required or desired include: (a) the fair value measurements recorded during the period and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 2

-Subparagraph (a),(b)

-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19207-110258

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19190-110258

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 32

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 5

-Subparagraph (a),(b)

-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19296-110258

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 33

-Subparagraph a, b

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 6

-Footnote 4

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

+ References+ Details