Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Unsettled Derivative Instruments

As of June 30, 2017, 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
2H17 (1)	Call Option (2)	NYMEX WTI	3,000	$	—	$	—	$	—	$	60.12
2H17 (1)	Three-Way Collars	ICE Brent	5,000	—		43.00		50.00		64.00
2017	Three-Way Collars	NYMEX WTI	24,000	—		39.08		47.71		61.20
2017	Two-Way Collars	NYMEX WTI	10,837	—		—		40.80		52.71
2017	Swaps	NYMEX WTI	4,348	50.83		—		—		—
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	10,000	—		45.50		52.50		69.09
2018	Three-Way Collars	Dated Brent	3,000	—		40.00		50.00		70.41
2018	Swaptions (3)	NYMEX WTI	3,000	56.10		—		—		—

⁽¹⁾  We have entered into contracts for portions of 2017 resulting in the difference in hedged 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⁾  We have entered into certain derivative contracts (swaptions), which give counterparties the right, but not the obligation, to enter into swap agreements with us on the option expiration dates.

Subsequent Event Subsequent to June 30, 2017, we entered into additional ICE Brent crude oil derivative contracts including:

				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
2018	Three-Way Collars	ICE Brent	5,000	$	—	$	43.00	$	50.00	$	59.50
2018	Two-Way Collars	ICE Brent	2,000	—		—		50.00		55.25
2019	Three-Way Collars	ICE Brent	3,000	—		43.00		50.00		64.07

As of June 30, 2017, 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
2017	Three-Way Collars	NYMEX HH	110,000	$	—	$	2.58	$	2.93	$	3.65
2017	Two-Way Collars	NYMEX HH	70,000	—		—		2.93		3.32
2018	Three-Way Collars	NYMEX HH	120,000	—		2.50		2.88		3.65
2018	Swaptions(1)	NYMEX HH	30,000	3.36		—		—		—

⁽¹⁾  We have entered into certain derivative contracts (swaptions), which give counterparties the right, but not the obligation, to enter into swap agreements with us on the option expiration dates.

Fair Value of 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
	June 30, 2017			December 31, 2016			June 30, 2017			December 31, 2016
(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	$	23	Current Assets	$	—	Current Liabilities	$	—	Current Liabilities	$	102
	Noncurrent Assets	8		Noncurrent Assets	—		Noncurrent Liabilities	—		Noncurrent Liabilities	14
Total		$	31		$	—		$	—		$	116

Derivative Instruments, (Gain) Loss

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

	Three Months Ended June 30,						Six Months Ended June 30,
(millions)	2017			2016			2017			2016
Cash (Received) Paid in Settlement of Commodity Derivative Instruments
Crude Oil	$	(11	)	$	(120	)	$	(16	)	$	(276	)
Natural Gas	—			(24		)	2			(46		)
Total Cash Received in Settlement of Commodity Derivative Instruments	(11		)	(144		)	(14		)	(322		)
Non-cash Portion of (Gain) Loss on Commodity Derivative Instruments
Crude Oil	(28		)	233			(91		)	360
Natural Gas	(18		)	62			(62		)	69
Total Non-cash Portion of (Gain) Loss on Commodity Derivative Instruments	(46		)	295			(153		)	429
(Gain) Loss on Commodity Derivative Instruments
Crude Oil	(39		)	113			(107		)	84
Natural Gas	(18		)	38			(60		)	23
Total (Gain) Loss on Commodity Derivative Instruments	$	(57	)	$	151		$	(167	)	$	107