Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Unsettled Derivative Instruments

As of December 31, 2017, 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
2018	Three-Way Collars	NYMEX WTI	10,000	$	—		$	45.50	$	52.50	$	69.09
2018	Swaps	NYMEX WTI	24,000	57.09			—		—		—
2018	Two-Way Collars	NYMEX WTI	18,000	—			—		50.42		58.82
2018	Three-Way Collars	Dated Brent	3,000	—			40.00		50.00		70.41
2018	Swaps	ICE Brent	2,000	59.00			—		—		—
2018	Two-Way Collars	ICE Brent	2,000	—			—		50.00		55.25
2018	Three-Way Collars	ICE Brent	5,000	—			43.00		50.00		59.50
2018	Basis Swaps	(1)	12,000	(0.60		)	—		—		—
2019	Swaps	NYMEX WTI	3,000	55.07			—		—		—
2019	Swaps	ICE Brent	5,000	57.00			—		—		—
2019	Three-Way Collars	ICE Brent	3,000	—			43.00		50.00		64.07
2019	Basis Swaps	(1)	12,000	(1.01		)	—		—		—

⁽¹⁾   We have entered into crude oil basis swap contracts in order to fix the differential between pricing in Midland, Texas, and Cushing, Oklahoma. The weighted average differential represents the amount of reduction to Cushing, Oklahoma, prices for the notional volumes covered by the basis swap contracts.

As of December 31, 2017, we had entered into the following natural gas derivative instruments:

				Collars
Settlement Period	Type of Contract	Index	MMBtu Per Day	Weighted Average Short Put  Price		Weighted Average Floor Price		Weighted Average Ceiling Price
2018	Three-Way Collars	NYMEX HH	120,000	$	2.50	$	2.88	$	3.65

Fair Value of Derivative Instruments

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

Fair Value of Derivative Instruments (1)
	Asset Derivative Instruments						Liability Derivative Instruments
	December 31, 2017			December 31, 2016			December 31, 2017			December 31, 2016
	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	$	2	Current Assets	$	—	Current Liabilities	$	58	Current Liabilities	$	102
	Noncurrent Assets	—		Noncurrent Assets	—		Noncurrent Liabilities	15		Noncurrent Liabilities	14
Total		$	2		$	—		$	73		$	116

⁽¹⁾ See Note 1. Summary of Significant Accounting Policies – Derivative Instruments and Hedging Activities for a discussion of our netting policy.

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)	2017			2016			2015
Cash (Received) Paid in Settlement of Commodity Derivative Instruments
Crude Oil	$	(14	)	$	(499	)	$	(844	)
Natural Gas	1			(70		)	(147		)
NGLs (1)	—			—			(18		)
Total Cash Received in Settlement of Commodity Derivative Instruments	(13		)	(569		)	(1,009		)
Non-cash Portion of (Gain) Loss on Commodity Derivative Instruments
Crude Oil	18			582			423
Natural Gas	(68		)	126			65
NGLs (1)	—			—			20
Total Non-cash Portion of (Gain) Loss on Commodity Derivative Instruments	(50		)	708			508
(Gain) Loss on Commodity Derivative Instruments
Crude Oil	4			83			(421		)
Natural Gas	(67		)	56			(82		)
NGLs (1)	—			—			2
Total (Gain) Loss on Commodity Derivative Instruments	$	(63	)	$	139		$	(501	)

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