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Derivative Instruments and Hedging Activities (Tables)
 9 Months Ended
Sep. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments
The following table presents the Partnership’s derivative instruments that were not designated as hedging instruments for accounting purposes.
September 30, 2020December 31, 2019
Gross Notional Volume
PurchasesSalesPurchasesSales
Natural gas— TBtu (1)
Financial fixed futures/swaps4 25 10 19 
Financial basis futures/swaps3 32 11 30 
Financial swaptions (2)
— 8 — 2 
Physical purchases/sales— 1 — 6 
Crude oil (for condensate)— MBbl (3)
Financial futures/swaps— 540 — 990 
Financial swaptions (2)
— 90 — 225 
Natural gas liquids— MBbl (4)
Financial futures/swaps1,395 1,410 2,490 2,415 
Financial options— 75 — — 
____________________
(1)As of September 30, 2020, 91.9% of the natural gas contracts had durations of one year or less and 8.1% had durations of more than one year and less than two years. As of December 31, 2019, 86.6% of the natural gas contracts had durations of one year or less and 13.4% had durations of more than one year and less than two years.
(2)The notional volume contains a combined derivative instrument consisting of a fixed price swap and a sold option, which gives the counterparties the right, but not the obligation, to increase the notional volume hedged under the fixed price swap until the option expiration date. The notional volume represents the volume prior to option exercise.
(3)As of September 30, 2020, 92.9% of the crude oil (for condensate) contracts had durations of one year or less and 7.1% had durations of more than one year and less than two years. As of December 31, 2019, 72.8% of the crude oil (for condensate) contracts had durations of one year or less and 27.2% had durations of more than one year and less than two years.
(4)As of September 30, 2020, 97.3% of the natural gas liquids contracts had durations of one year or less and 2.7% had durations of more than one year and less than two years. As of December 31, 2019, 72.2% of the natural gas liquids contracts had durations of one year or less and 27.8% had durations of more than one year and less than two years.
The following table presents the Partnership’s derivative instruments that were designated as hedging instruments for accounting purposes.
September 30, 2020December 31, 2019
Gross Notional Value
(In millions)
Interest rate swaps$300 $300 
 [1],[2],[3],[4]
Schedule of Derivative Assets at Fair Value
The following table presents the fair value of the derivative instruments that are included in the Partnership’s Condensed Consolidated Balance Sheets that were not designated as hedging instruments for accounting purposes.
September 30, 2020December 31, 2019
  Fair Value
InstrumentBalance Sheet LocationAssetsLiabilitiesAssetsLiabilities
  (In millions)
Natural gas
Financial futures/swapsOther Current$1 $7 $7 $5 
Financial swaptionsOther Current— 4 — — 
Physical purchases/salesOther Current— 2 5 — 
Financial futures/swapsOther— — — 1 
Crude oil (for condensate)
Financial futures/swapsOther Current1 13 1 19 
Financial swaptionsOther Current2 — — — 
Financial futures/swapsOther— 1 — 8 
Natural gas liquids
Financial futures/swapsOther Current17 1 25 3 
Financial futures/swapsOther1 — 11 2 
Total gross commodity derivatives (1)
$22 $28 $49 $38 
_____________________
(1)See Note 11 for a reconciliation of the Partnership’s commodity derivatives fair value to the Partnership’s Condensed Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019.

The following table presents the fair value of the derivative instruments that are included in the Partnership’s Condensed Consolidated Balance Sheets that were designated as hedging instruments for accounting purposes.
September 30, 2020December 31, 2019
  Fair Value
InstrumentBalance Sheet LocationAssetsLiabilitiesAssetsLiabilities
  (In millions)
Interest rate swapsOther Current$— $5 $— $1 
Interest rate swapsOther— 2 — 2 
Total gross interest rate derivatives (1)
$— $7 $— $3 
_____________________
(1)All interest rate derivative instruments that were designated as cash flow hedges are considered Level 2 as of September 30, 2020 and December 31, 2019.
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
The following table presents the effect of derivative instruments on the Partnership’s Condensed Consolidated Statements of Income.
Amounts Recognized in Income
Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
(In millions)
Natural gas
Financial futures/swaps gains (losses)$(5)$2 $(2)$10 
Financial swaptions gains (losses)(4)— (6)— 
Physical purchases/sales gains (losses)(1)1 — 1 
Crude oil (for condensate)
Financial futures/swaps gains (losses)— (8)12 (29)
Financial swaptions gains (losses)— — 2 — 
Natural gas liquids
Financial futures/swaps gains (losses)— 13 (1)32 
Total$(10)$8 $5 $14 
The following table presents the effect of derivative instruments that were designated as hedging instruments on the Partnership’s Condensed Consolidated Statements of Income.

Amounts Recognized in Income
Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
(In millions)
Interest rate swaps losses$(2)$— $(3)$— 
Total$(2)$— $(3)$— 
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location
The following table presents the components of gain (loss) on derivative activity in the Partnership’s Condensed Consolidated Statements of Income.
Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
 (In millions)
Change in fair value of commodity derivatives$(15)$(2)$(17)$(3)
Realized gain on commodity derivatives5 10 22 17 
Gain (loss) on commodity derivative activity$(10)$8 $5 $14 
[1] As of September 30, 2020, 91.9% of the natural gas contracts had durations of one year or less and 8.1% had durations of more than one year and less than two years. As of December 31, 2019, 86.6% of the natural gas contracts had durations of one year or less and 13.4% had durations of more than one year and less than two years.
[2] As of September 30, 2020, 92.9% of the crude oil (for condensate) contracts had durations of one year or less and 7.1% had durations of more than one year and less than two years. As of December 31, 2019, 72.8% of the crude oil (for condensate) contracts had durations of one year or less and 27.2% had durations of more than one year and less than two years.
[3] As of September 30, 2020, 97.3% of the natural gas liquids contracts had durations of one year or less and 2.7% had durations of more than one year and less than two years. As of December 31, 2019, 72.2% of the natural gas liquids contracts had durations of one year or less and 27.8% had durations of more than one year and less than two years.
[4] The notional volume contains a combined derivative instrument consisting of a fixed price swap and a sold option, which gives the counterparties the right, but not the obligation, to increase the notional volume hedged under the fixed price swap until the option expiration date. The notional volume represents the volume prior to option exercise.