Derivative Instruments and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Unsettled Derivative Instruments

Unsettled Commodity Derivative Instruments   As of September 30, 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
2016	Call Option (1)	NYMEX WTI	5,000	$	—	$	—	$	—	$	54.16
2016	Swaps	NYMEX WTI	16,000	67.69		—		—		—
2016	Swaps (2)	(3)	6,000	90.28		—		—		—
2016	Two-Way Collars	NYMEX WTI	10,000	—		—		40.50		53.42
2016	Three-Way Collars	NYMEX WTI	8,000	—		54.50		65.63		79.03
2016	Swaps	Dated Brent	9,000	97.96		—		—		—
2016	Three-Way Collars	Dated Brent	8,000	—		72.50		86.25		101.79
1H17 (4)	Swaps	NYMEX WTI	6,000	55.08		—		—		—
1H17 (4)	Two-Way Collars	NYMEX WTI	2,000	—		—		40.00		50.44
1H17 (4)	Swaps	Dated Brent	3,000	62.80		—		—		—
2H17 (4)	Call Option (1)	NYMEX WTI	3,000	—		—		—		60.12
2H17 (4)	Swaptions (5)	Dated Brent	3,000	—		—		—		62.80
2H17 (4)	Swaptions (5)	NYMEX WTI	3,000	—		—		—		50.05
2017	Two-Way Collars	NYMEX WTI	7,000	—		—		40.00		53.29
2017	Call Option (1)	NYMEX WTI	3,000	—		—		—		57.00
2017	Swaptions (5)	NYMEX WTI	4,000	—		—		—		47.34
2017	Three-Way Collars	NYMEX WTI	15,000	—		36.33		46.33		60.68
2017	Three-Way Collars	Dated Brent	2,000	—		35.00		45.00		66.33
2018	Three-Way Collars	Dated Brent	3,000	—		40.00		50.00		70.41

⁽¹⁾  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.

⁽²⁾  Includes derivative instruments assumed by our subsidiary, NBL Texas, LLC, in connection with the Rosetta Merger.

⁽³⁾  The indices for these derivative instruments are NYMEX WTI and Argus LLS.

⁽⁴⁾  We have entered into crude oil swap contracts for portions of 2017 resulting in the difference in hedge volumes for the full year.

⁽⁵⁾  We have entered into certain derivative contracts (swaptions), which give counterparties the option to extend with similar terms for an additional 6-month or 12-month period.

As of September 30, 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
2016	Swaps	NYMEX HH	70,000	3.24	—	—	—
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
1H17	Swaps	NYMEX HH	30,000	2.92	—	—	—
2H17	Swaptions (3)	NYMEX HH	30,000	—	—	—	2.92
2017	Swaps	NYMEX HH	30,000	3.15	—	—	—
2017	Swaptions (3)	NYMEX HH	60,000	—	—	—	3.14
2017	Three-Way Collars	NYMEX HH	180,000	—	2.50	2.93	3.58
2017	Two-Way Collars	NYMEX HH	70,000	—	—	2.93	3.32
2018	Three-Way Collars	NYMEX HH	70,000	—	2.50	2.80	3.76

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

⁽²⁾  The index for these derivative instruments is Houston Ship Channel.

⁽³⁾  We have entered into certain natural gas derivative contracts (swaptions), which give counterparties the option to extend with similar terms for an additional 6-month or 12-month period.

Fair Value of Derivative Instruments

Fair Value Amounts and Loss (Gain) 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
	September 30, 2016			December 31, 2015			September 30, 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	$	120	Current Assets	$	582	Current Liabilities	$	27	Current Liabilities	$	—
	Noncurrent Assets	—		Noncurrent Assets	10		Noncurrent Liabilities	8		Noncurrent Liabilities	—
Total		$	120		$	592		$	35		$	—

Derivative Instruments, (Gain) Loss

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

	Three Months Ended September 30,						Nine Months Ended September 30,
(millions)	2016			2015			2016			2015
Cash Received in Settlement of Commodity Derivative Instruments
Crude Oil	$	(119	)	$	(235	)	$	(395	)	$	(578	)
Natural Gas	(13		)	(42		)	(59		)	(98		)
NGLs	—			(7		)	—			(7		)
Total Cash Received in Settlement of Commodity Derivative Instruments	(132		)	(284		)	(454		)	(683		)
Non-cash Portion of Loss on Commodity Derivative Instruments
Crude Oil	80			4			441			301
Natural Gas	(3		)	3			66			41
NGLs	—			10			—			10
Total Non-cash Portion of Loss on Commodity Derivative Instruments	77			17			507			352
(Gain) Loss on Commodity Derivative Instruments
Crude Oil	(39		)	(231		)	46			(277		)
Natural Gas	(16		)	(39		)	7			(57		)
NGLs	—			3			—			3
Total Loss (Gain) on Commodity Derivative Instruments	$	(55	)	$	(267	)	$	53		$	(331	)