XML 61 R40.htm IDEA: XBRL DOCUMENT v3.3.1.900
Risk Management and Hedging Activities (Tables)
 12 Months Ended
Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of Gross and Net Amounts of Derivative Instruments
The following summarizes the gross and net amounts of our derivative instruments:
 
 
December 31, 2015
 
December 31, 2014
 
Gross Amounts
of Assets and
(Liabilities)
Presented in the
Balance Sheet
 
Amounts Not
Offset in the
Balance Sheet -
Financial
Instruments (a)
 
Net
Amount
 
Gross Amounts
of Assets and
(Liabilities)
Presented in the
Balance Sheet
 
Amounts Not
Offset in the
Balance Sheet -
Financial
Instruments (a)
 
Net
Amount
 
(Millions)
Assets:
 
 
 
 
 
 
 
 
 
 
 
Commodity derivatives
$
114

 
$
(19
)
 
$
95

 
$
269

 
$
(42
)
 
$
227

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Commodity derivatives
$
(19
)
 
$
19

 
$
—

 
$
(43
)
 
$
42

 
$
(1
)
 
(a)
There is no cash collateral pledged or received against these positions.
Schedule of Designated and Non-Designated Derivative Instruments in Statement of Financial Position, Fair Value
The fair value of our derivative instruments that are marked-to-market each period, as well as the location of each within our consolidated balance sheets, by major category, is summarized below. We have no derivative instruments that are designated as hedging instruments for accounting purposes as of December 31, 2015 and 2014.
 
Balance Sheet Line Item
December 31, 
 2015
 
December 31, 
 2014
 
Balance Sheet Line Item
 
December 31, 
 2015
 
December 31, 
 2014
 
(Millions)
 
 
 
(Millions)
Derivative Assets Not Designated as Hedging Instruments:
 
Derivative Liabilities Not Designated as Hedging Instruments:
Commodity derivatives:
 
 
 
 
Commodity derivatives:
 
 
 
 
Unrealized gains on derivative instruments — current
$
105

 
$
230

 
Unrealized losses on derivative instruments — current
 
$
(18
)
 
$
(43
)
Unrealized gains on derivative instruments — long-term
9

 
39

 
Unrealized losses on derivative instruments — long-term
 
(1
)
 
—

Total
$
114

 
$
269

 
Total
 
$
(19
)
 
$
(43
)
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)
 
The following summarizes the balance and activity within AOCI relative to our interest rate, commodity and foreign currency cash flow hedges as of and for the year ended December 31, 2015:
 
Interest
Rate Cash
Flow
Hedges
 
 
 
Commodity
Cash Flow
Hedges
 
Foreign
Currency
Cash Flow
Hedges (a)
 
Total
 
(Millions)
Net deferred (losses) gains in AOCI (beginning balance)
$
(4
)
 
 
 
$
(6
)
 
$
1

 
$
(9
)
Losses reclassified from AOCI to earnings — effective portion
1

 
(b)
 
—

 
—

 
1

Net deferred (losses) gains in AOCI (ending balance)
$
(3
)
 
 
 
$
(6
)
 
$
1

 
$
(8
)
Deferred losses in AOCI expected to be reclassified into earnings over the next 12 months
$
(1
)
 
 
 
$
—

 
$
—

 
$
(1
)
(a)
Relates to Discovery, an unconsolidated affiliate.
(b)
Included in interest expense in our consolidated statements of operations.
 
The following summarizes the balance and activity within AOCI relative to our interest rate, commodity and foreign currency cash flow hedges as of and for the year ended December 31, 2015:
 
Interest
Rate Cash
Flow
Hedges
 
 
 
Commodity
Cash Flow
Hedges
 
Foreign
Currency
Cash Flow
Hedges (a)
 
Total
 
(Millions)
Net deferred (losses) gains in AOCI (beginning balance)
$
(4
)
 
 
 
$
(6
)
 
$
1

 
$
(9
)
Losses reclassified from AOCI to earnings — effective portion
1

 
(b)
 
—

 
—

 
1

Net deferred (losses) gains in AOCI (ending balance)
$
(3
)
 
 
 
$
(6
)
 
$
1

 
$
(8
)
Deferred losses in AOCI expected to be reclassified into earnings over the next 12 months
$
(1
)
 
 
 
$
—

 
$
—

 
$
(1
)
(a)
Relates to Discovery, an unconsolidated affiliate.
(b)
Included in interest expense in our consolidated statements of operations.

For the year ended December 31, 2015, no derivative losses attributable to the ineffective portion or to amounts excluded from effectiveness testing were recognized in gains or losses from commodity derivative activity, net or interest expense in our consolidated statements of operations. For the year ended December 31, 2015, no derivative losses were reclassified from AOCI to gains or losses from commodity derivative activity, net or interest expense as a result of the discontinuance of cash flow hedges related to certain forecasted transactions that are not probable of occurring.
 

The following summarizes the balance and activity within AOCI relative to our interest rate, commodity and foreign currency cash flow hedges as of and for the year ended December 31, 2014:
 
Interest
Rate Cash
Flow
Hedges
 
 
 
Commodity
Cash Flow
Hedges
 
Foreign
Currency
Cash Flow
Hedges (a)
 
Total
 
(Millions)
Net deferred (losses) gains in AOCI (beginning balance)
$
(6
)
 
 
 
$
(6
)
 
$
1

 
$
(11
)
Losses reclassified from AOCI to earnings — effective portion
2

 
(b) (c)
 
—

 
—

 
2

Net deferred (losses) gains in AOCI (ending balance)
$
(4
)
 
 
 
$
(6
)
 
$
1

 
$
(9
)


(a)
Relates to Discovery, an unconsolidated affiliate.
(b)
Included in interest expense in our consolidated statements of operations.
(c)
For the year ended December 31, 2014, $1 million of derivative losses were reclassified from AOCI to interest expense as a result of the discontinuance of cash flow hedges related to certain forecasted transactions that are not probable of occurring.
Schedule of Changes in Derivative Instruments Not Designated as Hedging Instruments
The following summarizes these amounts and the location within the consolidated statements of operations that such amounts are reflected:
Commodity Derivatives: Statements of Operations Line Item
 
Year Ended December 31,
 
 
2015
 
2014
 
2013
 
(Millions)
Third party:
 
 
 
 
 
 
Realized gains (losses)
 
$
158

 
$
(2
)
 
$
(19
)
Unrealized (losses) gains
 
(106
)
 
38

 
14

Gains (losses) from commodity derivative activity, net
 
$
52

 
$
36

 
$
(5
)
Affiliates:
 
 
 
 
 
 
Realized gains
 
$
57

 
$
70

 
$
73

Unrealized (losses) gains
 
(24
)
 
48

 
(51
)
Gains from commodity derivative activity, net —affiliates
 
$
33

 
$
118

 
$
22

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest Rate Derivatives: Statements of Operations Line Item
 
Year Ended December 31,
 
 
2015
 
2014
 
2013
 
(Millions)
Third party:
 
 
 
 
 
 
Realized losses
 
$
—

 
$
(2
)
 
$
(2
)
Unrealized gains
 
—

 
2

 
2

Interest expense
 
$
—

 
$
—

 
$
—
Schedule of Net Long or Short Positions Expected to be Realized
The following tables represent, by commodity type, our net long or short positions that are expected to partially or entirely settle in each respective year. To the extent that we have long dated derivative positions that span multiple calendar years, the contract will appear in more than one line item in the tables below. 
 
December 31, 2015
 
Crude Oil
 
Natural Gas
 
Natural Gas
Liquids
 
Natural Gas
Basis Swaps
Year of Expiration
Net Short
Position
(Bbls)
 
Net
Short
Position
(MMBtu)
 
Net
Short
Position
(Bbls)
 
Net Long Position
(MMBtu)
2016
(1,408,672
)
 
(15,881,064
)
 
(813,267
)
 
2,665,000

2017
—

 
(7,387,500
)
 
—

 
1,800,000

 
 
 
 
 
 
 
 
 
December 31, 2014
 
Crude Oil
 
Natural Gas
 
Natural Gas
Liquids
 
Natural Gas
Basis Swaps
Year of Expiration
Net Short
Position
(Bbls)
 
Net Short
Position
(MMBtu)
 
Net Short
Position
(Bbls)
 
Net Long
Position
(MMBtu)
2015
(745,695
)
 
(20,803,975
)
 
(5,573,570
)
 
2,640,000

2016
(561,922
)
 
(5,668,564
)
 
(813,267
)
 
1,690,000

2017
—

 
(6,387,500
)
 
—

 
—