Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Unsettled Derivative Instruments

Unsettled Commodity Derivative Instruments   As of March 31, 2016, the following crude oil derivative contracts were outstanding:

				Swaps			Collars
Settlement Period	Type of Contract	Index	Bbls Per Day	Weighted Average Fixed Price			Weighted Average  Short Put  Price		Weighted Average Floor Price		Weighted Average  Ceiling Price
2Q16 (1)	Swaps	NYMEX WTI	5,000	$	54.16		$	—	$	—	$	—
2H16 (1)	Call Option (2)	NYMEX WTI	5,000	—			—		—		54.16
2H16 (1)	Swaps	NYMEX WTI	4,000	47.34			—		—		—
2H16 (1)	Two-Way Collars	NYMEX WTI	6,000	—			—		35.00		49.82
2016	Swaps	NYMEX WTI	12,000	74.47			—		—		—
2016	Swaps (3)	(4)	6,000	90.28		—	—		—		—
2016	Two-Way Collars	NYMEX WTI	1,000	—			—		60.00		70.00
2016	Three-Way Collars	NYMEX WTI	6,000	—			61.00		72.50		86.37
2016	Swaps	Dated Brent	9,000	97.96			—		—		—
2016	Three-Way Collars	Dated Brent	8,000	—			72.50		86.25		101.79
1H17 (1)	Swaps	NYMEX WTI	3,000	60.12			—		—		—
1H17 (1)	Two-Way Collars	NYMEX WTI	2,000	—			—		40.00		50.44
1H17 (1)	Swaps	Dated Brent	3,000	62.80			—		—		—
2H17 (1)	Call Option (2)	NYMEX WTI	3,000	—			—		—		60.12
2H17 (1)	Swaptions (5)	Dated Brent	3,000	—			—		—		62.80
2017	Two-Way Collars	NYMEX WTI	7,000	—			—		40.00		53.29
2017	Call Option (2)	NYMEX WTI	3,000	—			—		—		57.00
2017	Swaptions (5)	NYMEX WTI	4,000	—			—		—		47.34

⁽¹⁾  We have entered into NYMEX WTI swap contracts for portions of 2016 and 2017 resulting in the difference in hedge volumes for the full year.

⁽²⁾  We have entered into crude oil derivative enhanced swaps with strike prices that are above the market value as of trade commencement. To effect the enhanced swap structure, we sold call options to the applicable counterparty to receive the above market terms.

⁽³⁾  Includes derivative instruments assumed by our subsidiary, NBL Texas, LLC, in connection with the Rosetta Merger.

⁽⁴⁾  The index for these derivative instruments is NYMEX WTI and Argus LLS indices.

⁽⁵⁾  We have entered into certain derivative contracts (swaptions), which give counterparties the option to extend for an additional 6-month or 12-month period. Options covering a notional volume of 3,000 Bbls/d are exercisable on June 30, 2017. If the counterparties exercise all such options, the notional volume of our existing Dated Brent derivative contracts will increase by 3,000 Bbls/d at a weighted average price of $62.80 per Bbl for each month during the period July 1, 2017 through December 31, 2017. Options covering a notional volume of 4,000 Bbls/d are exercisable on December 30, 2016. If the counterparties exercise all such options, the notional volume of our existing NYMEX WTI derivative contracts will increase by 4,000 Bbls/d at a weighted average price of $47.34 per Bbl for each month during the period July 1, 2017 through December 31, 2017.

As of March 31, 2016, the following natural gas derivative contracts were outstanding:

				Swaps		Collars
Settlement Period	Type of Contract	Index	MMBtu Per Day	Weighted Average Fixed Price		Weighted Average Short Put  Price		Weighted Average Floor Price		Weighted Average Ceiling Price
2H16	Swaps	NYMEX HH	30,000	$	2.77	$	—	$	—	$	—
2016	Swaps	NYMEX HH	40,000	3.60		—		—		—
2016	Two-Way Collars	NYMEX HH	30,000	—		—		3.00		3.50
2016	Three-Way Collars	NYMEX HH	90,000	—		2.83		3.42		3.90
2016	Swaps (1)	(2)	30,000	4.04		—		—		—
2016	Two-Way Collars (1)	(2)	30,000	—		—		3.50		5.60
2017	Swaptions (3)	NYMEX HH	60,000	—		—		—		3.14

⁽¹⁾  Includes derivative instruments assumed by our subsidiary, NBL Texas, LLC, in connection with the Rosetta Merger.

⁽²⁾  The index for these derivative instruments includes a combination of Houston Ship Channel and Tennessee Zone 0 indices.

⁽³⁾  We have entered into certain natural gas derivative contracts (swaptions), which give counterparties the option to extend for an additional 12-month period. Options covering a notional volume of 60,000 MMBtu/d are exercisable on December 22 and 23, 2016. If the counterparties exercise all such options, the notional volume of our existing natural gas derivative contracts will increase by 60,000 MMBtu/d at a weighted average price of $3.14 per MMBtu for each month during the period January 1, 2017 through December 31, 2017.

Fair Value of Derivative Instruments

Fair Value Amounts and (Gain) Loss on Commodity Derivative Instruments   The fair values of commodity derivative instruments in our consolidated balance sheets were as follows:

Fair Value of Derivative Instruments
	Asset Derivative Instruments						Liability Derivative Instruments
	March 31, 2016			December 31, 2015			March 31, 2016			December 31, 2015
(millions)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair  Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Commodity DerivativeInstruments	Current Assets	$	454	Current Assets	$	582	Current Liabilities	$	2	Current Liabilities	$	—
	Noncurrent Assets	6		Noncurrent Assets	10		Noncurrent Liabilities	1		Noncurrent Liabilities	—
Total		$	460		$	592		$	3		$	—

Derivative Instruments, (Gain) Loss

The effect of commodity derivative instruments on our consolidated statements of operations was as follows:

	Three Months Ended March 31,
(millions)	2016			2015
Cash Received in Settlement of Commodity Derivative Instruments
Crude Oil	$	(156	)	$	(185	)
Natural Gas	(22		)	(25		)
Total Cash Received in Settlement of Commodity Derivative Instruments	(178		)	(210		)
Non-cash Portion of Loss on Commodity Derivative Instruments
Crude Oil	127			55
Natural Gas	7			5
Total Non-cash Portion of Loss on Commodity Derivative Instruments	134			60
Gain on Commodity Derivative Instruments
Crude Oil	(29		)	(130		)
Natural Gas	(15		)	(20		)
Total Gain on Commodity Derivative Instruments	$	(44	)	$	(150	)