Derivatives and Concentration of Credit Risk (Tables)

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives Related to Production

Derivatives related to production

The following table sets forth the derivative notional volumes of the net long (short) positions that are economic hedges of production volumes, which are included in our commodity derivatives portfolio as of December 31, 2019.

Commodity	Period	Contract Type (a)	Location	Notional Volume (b)	Weighted Average Price (c)
Crude Oil
Crude Oil	2020	Fixed Price Swaps(d)	WTI	(65,129)	$	57.07
Crude Oil	2020	Fixed Price Costless Collars	WTI	(20,000)	53.33 -63.48
Crude Oil	2020	Basis Swaps	Midland/Cushing	(7,486)	$	(1.31)
Crude Oil	2020	Basis Swaps	Brent/WTI Spread	(5,000)	$	8.36
Crude Oil	2021	Basis Swaps	Brent/WTI Spread	(1,000)	$	8.00
Crude Oil	2021	Fixed Price Swaptions	WTI	(20,000)	$	57.02
Crude Oil	2022	Basis Swaps	Brent/WTI Spread	(1,000)	$	7.75
Natural Gas
Natural Gas	2020	Basis Swaps	Waha	(60)	$	(0.79)
Natural Gas	2021	Basis Swaps	Waha	(70)	$	(0.59)
Natural Gas	2022	Basis Swaps	Waha	(70)	$	(0.57)
Natural Gas	2023	Basis Swaps	Waha	(70)	$	(0.51)

__________

(a) Derivatives related to crude oil production are fixed price swaps settled on the business day average, basis swaps, fixed price calls, collars or swaptions. The derivatives related to natural gas production are fixed price swaps, basis swaps, fixed price calls and swaptions. In connection with swaps, we may sell call options or swaptions to the swap counterparties in exchange for receiving premium hedge prices on the swaps. The sold call or swaption establishes a maximum price we will receive for the volumes under contract and are financially settled. Basis swaps for the Nymex CMA (Calendar Monthly Average) Roll location are pricing adjustments to the trade month versus the delivery month for contract pricing. Basis swaps for the Brent/WTI location are priced off the Brent and WTI futures spread.

(b) Crude oil volumes are reported in Bbl/day and natural gas volumes are reported in BBtu/day.

(c) The weighted average price for crude oil is reported in $/Bbl and the natural gas is reported in $/MMBtu.

(d) Fixed Price Swaps include hedges related to a new partnership created to fund non-operated interests.

DerivativeGainLoss [Table Text Block]

The following table presents the net gain (loss) related to our energy commodity derivatives.

	Years Ended December 31,
	2019		2018		2017
	(Millions)
Gain (loss) from derivatives related to production(a)	$	(150)	$	78	$	3
Gain (loss) from derivatives related to physical marketing agreements(b)	(3)		3		—
Net gain (loss) on derivatives	$	(153)	$	81	$	3

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(a) Includes settlements totaling $12 million for the year ended December 31, 2019, payments totaling $237 million for the year ended December 31, 2018, and settlements totaling $4 million for the year ended December 31, 2017.

(b) Includes payments totaling less than $1 million for the years ended December 31, 2019, 2018 and 2017.

Gross And Net Derivative Asset and Liability

The following table presents our gross and net derivative assets and liabilities.

	Gross Amount Presented on Balance Sheet		Netting Adjustments (a)		Net Amount
December 31, 2019	(Millions)
Derivative assets with right of offset or master netting agreements	$	67	$	(45)	$	22
Derivative liabilities with right of offset or master netting agreements	$	(91)	$	45	$	(46)
December 31, 2018
Derivative assets with right of offset or master netting agreements	$	178	$	(37)	$	141
Derivative liabilities with right of offset or master netting agreements	$	(37)	$	37	$	—

__________

(a) With all of our financial trading counterparties, we have agreements in place that allow for the financial right of offset for derivative assets and derivative liabilities at settlement or in the event of a default under the agreements. Additionally, we have negotiated master netting agreements with some of our counterparties. These master netting agreements allow multiple entities that have multiple underlying agreements the ability to net derivative assets and derivative liabilities at settlement or in the event of a default or a termination under one or more of the underlying contracts.

Concentration of Receivables, Net of Allowances, by Product or Service

The following table summarizes concentration of receivables, net of allowances, by product or service as of dates indicated below.

	December 31,
	2019		2018
	(Millions)
Receivables by product or service:
Sale of natural gas, crude and related products and services	$	336	$	269
Joint interest owners	88		98
Income tax receivable	19		38
Other	7		—
Total	$	450	$	405

Schedules of Concentration of Risk, by Risk Factor

The following companies accounted for more than 10 percent of our total consolidated revenues adjusted for net gain (loss) on derivatives in any given year presented below. Management believes that the loss of any individual purchaser would not have a long-term material adverse impact on the financial position or results of operations of the Company.

	Year ended December 31,
	2019	2018	2017
United Energy Trading LLC	20%	23%	(a)
Occidental Energy Marketing	18%	16%	(a)
Crestwood Midstream Partners LP	(a)	(a)	21%
St. Paul Refining	(a)	(a)	16%
NGL Crude Logistics	13%	14%	13%
Delek Refining, Ltd	(a)	(a)	10%
BP Products North America, Inc.	11%	(a)	(a)

__________

(a) Revenues for purchaser were less than 10 percent of total consolidated revenues adjusted for net gain (loss) on derivatives.