Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Unsettled Derivative Instruments

Unsettled Derivative Instruments  As of December 31, 2016, we had entered into the following crude oil derivative instruments:

				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
1H17 (1)	Swaps	NYMEX WTI	6,000	$	55.08	$	—	$	—	$	—
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 (3)	NYMEX WTI	3,000	50.05		—		—		—
2H17 (1)	Swaptions (3)	Dated Brent	3,000	62.80		—		—		—
2017	Three-Way Collars	NYMEX WTI	24,000	—		39.08		47.71		61.20
2017	Two-Way Collars	NYMEX WTI	7,000	—		—		40.00		53.29
2017	Swaps	NYMEX WTI	4,000	50.90		—		—		—
2017	Call Option (2)	NYMEX WTI	3,000	—		—		—		57.00
2017	Three-Way Collars	ICE Brent	2,000	—		43.00		50.00		63.15
2017	Three-Way Collars	Dated Brent	2,000	—		35.00		45.00		66.33
2018	Three-Way Collars	NYMEX WTI	5,000	—		43.00		50.00		68.50
2018	Swaps	NYMEX WTI	5,000	54.03		—		—		—
2018	Swaptions (3)	NYMEX WTI	3,000	56.10		—		—		—
2018	Three-Way Collars	Dated Brent	3,000	—		40.00		50.00		70.41

⁽¹⁾  We traditionally enter into a hedge contract term of one year. For 2017 we have entered into various derivative hedging arrangements with a contract term of six months resulting in non-uniform annual volumes and weighted average prices.

⁽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 non-cash swap structure, we sold call options to the applicable counterparty to receive the above market terms.

⁽³⁾   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 December 31, 2016, we had entered into the following natural gas derivative instruments:

				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
1H17 (1)	Swaps	NYMEX HH	30,000	$	2.92	$	—	$	—	$	—
2H17 (1)	Swaps	NYMEX HH	30,000	3.45		—		—		—
2H17 (1)	Swaptions (2)	NYMEX HH	30,000	2.92		—		—		—
2017	Three-Way Collars	NYMEX HH	210,000	—		2.54		2.96		3.62
2017	Swaps	NYMEX HH	110,000	3.16		—		—		—
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⁾  We traditionally enter into a hedge contract term of one year. For 2017 we have entered into various derivative hedging arrangements with a contract term of six months resulting in non-uniform annual volumes and weighted average prices.

⁽²⁾  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.

Fair Value of Derivative Instruments

The fair values of derivative instruments in our consolidated balance sheets were as follows: 

Fair Value of Derivative Instruments
	Asset Derivative Instruments						Liability Derivative Instruments
	December 31, 2016			December 31, 2015			December 31, 2016			December 31, 2015
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair  Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
(millions)
Commodity DerivativeInstruments	Current Assets	$	—	Current Assets	$	582	Current Liabilities	$	102	Current Liabilities	$	—
	Noncurrent Assets	—		Noncurrent Assets	10		Noncurrent Liabilities	14		Noncurrent Liabilities	—
Total		$	—		$	592		$	116		$	—

Effect of derivative instruments on consolidated statement of operations

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

	Year Ended December 31,
(millions)	2016			2015			2014
Cash (Received) Paid in Settlement of Commodity Derivative Instruments
Crude Oil	$	(499	)	$	(844	)	$	(34	)
Natural Gas	(70		)	(147		)	5
NGLs (1)	—			(18		)	—
Total Cash Received in Settlement of Commodity Derivative Instruments	(569		)	(1,009		)	(29		)
Non-cash Portion of Loss (Gain) on Commodity Derivative Instruments
Crude Oil	582			423			(863		)
Natural Gas	126			65			(84		)
NGLs (1)	—			20			—
Total Non-cash Portion of Loss (Gain) on Commodity Derivative Instruments	708			508			(947		)
Loss (Gain) on Commodity Derivative Instruments
Crude Oil	83			(421		)	(897		)
Natural Gas	56			(82		)	(79		)
NGLs (1)	—			2			—
Total Loss (Gain) on Commodity Derivative Instruments	$	139		$	(501	)	$	(976	)

⁽¹⁾  Amounts for NGLs relate to commodity derivative instruments, acquired in the Rosetta Merger, which expired as of December 31, 2015.