Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments, Gain (Loss)

The effect of derivatives in our consolidated statements of operations is shown in the table below.

	Gain (loss) recognized in income
		Three months ended   September 30,				Nine months ended   September 30,
	Location	2022		2021		2022		2021
		(in millions)
Unrealized net (losses) gains on natural gas derivatives	Cost of sales	$	(11)	$	12	$	39	$	18
Realized net gains (losses) on natural gas derivatives	Cost of sales	12		—		20		(3)
Gain on net settlement of natural gas derivatives due to Winter Storm Uri	Cost of sales	—		—		—		112
Net derivative gains		$	1	$	12	$	59	$	127

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The fair values of derivatives on our consolidated balance sheets are shown below. As of September 30, 2022 and December 31, 2021, none of our derivative instruments were designated as hedging instruments. See Note 9—Fair Value Measurements for additional information on derivative fair values.

	Asset Derivatives					Liability Derivatives
	Balance Sheet Location	September 30,   2022		December 31, 2021		Balance Sheet Location	September 30,   2022		December 31, 2021
		(in millions)					(in millions)
Natural gas derivatives	Other current assets	$	26	$	16	Other current liabilities	$	(20)	$	(47)

Offsetting Liabilities

The following table presents amounts relevant to offsetting of our derivative assets and liabilities as of September 30, 2022 and December 31, 2021:

	Amounts presented in consolidated balance sheets(1)		Gross amounts not offset in consolidated balance sheets
			Financial instruments		Cash collateral received (pledged)		Net amount
	(in millions)
September 30, 2022
Total derivative assets	$	26	$	—	$	—	$	26
Total derivative liabilities	(20)		—		—		(20)
Net derivative assets	$	6	$	—	$	—	$	6
December 31, 2021
Total derivative assets	$	16	$	—	$	—	$	16
Total derivative liabilities	(47)		—		—		(47)
Net derivative liabilities	$	(31)	$	—	$	—	$	(31)

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(1)We report the fair values of our derivative assets and liabilities on a gross basis on our consolidated balance sheets. As a result, the gross amounts recognized and net amounts presented are the same.

Offsetting Assets

The following table presents amounts relevant to offsetting of our derivative assets and liabilities as of September 30, 2022 and December 31, 2021:

	Amounts presented in consolidated balance sheets(1)		Gross amounts not offset in consolidated balance sheets
			Financial instruments		Cash collateral received (pledged)		Net amount
	(in millions)
September 30, 2022
Total derivative assets	$	26	$	—	$	—	$	26
Total derivative liabilities	(20)		—		—		(20)
Net derivative assets	$	6	$	—	$	—	$	6
December 31, 2021
Total derivative assets	$	16	$	—	$	—	$	16
Total derivative liabilities	(47)		—		—		(47)
Net derivative liabilities	$	(31)	$	—	$	—	$	(31)

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(1)We report the fair values of our derivative assets and liabilities on a gross basis on our consolidated balance sheets. As a result, the gross amounts recognized and net amounts presented are the same.