Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Unsettled Derivative Instruments

As of December 31, 2018, we had entered into the following crude oil derivative instruments:

				Swaps					Collars
Settlement Period	Type of Contract	Index	Bbls per Day	Weighted Average Differential			Weighted Average Fixed Price		Weighted Average  Short Put  Price		Weighted Average Floor Price		Weighted Average  Ceiling Price
2019	Swaps	NYMEX WTI	22,000	$	—		$	56.96	$	—	$	—	$	—
2019	Three-Way Collars	NYMEX WTI	33,000	—			—		49.35		59.35		72.25
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)	27,000	(3.23		)	—		—		—		—
2020	Swaption	NYMEX WTI	5,000	—			61.79		—		—		—
2020	Basis Swap	(1)	15,000	(5.01		)	—		—		—		—

⁽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, 2018, we had entered into the following natural gas derivative instruments:

				Swaps					Collars
Settlement Period	Type of Contract	Index	MMBtu per Day	Weighted Average Differential			Weighted Average Fixed Price		Weighted Average Short Put  Price		Weighted Average Floor Price		Weighted Average Ceiling Price
1Q19(1)	Swaps	NYMEX HH	86,500	$	—		$	4.36	$	—	$	—	$	—
1Q19(1)	Three-Way Collars	NYMEX HH	21,500	—			—		3.00		3.25		4.08
2019	Three-Way Collars	NYMEX HH	104,000	—			—		2.25		2.65		2.95
2019	Basis Swaps	(2)	52,000	(0.74		)	—		—		—		—

⁽¹⁾ We have entered into contracts for portions of 2019 resulting in the difference in hedged volumes for the full year.

⁽²⁾ We have entered into natural gas basis swap contracts in order to establish a fixed amount for the differential between index pricing for Colorado Interstate Gas and NYMEX Henry Hub. The weighted average differential represents the amount of reduction to NYMEX Henry Hub prices for the notional volumes covered by the basis swap contracts.

Fair Value of Derivative Instruments

The fair values of derivative instruments on our consolidated balance sheets were as follows ⁽¹⁾: 

	Asset Derivative Instruments						Liability Derivative Instruments
	December 31, 2018			December 31, 2017			December 31, 2018			December 31, 2017
(millions)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair  Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Commodity Derivative Instruments	Current Assets	$	180	Current Assets	$	2	Current Liabilities	$	1	Current Liabilities	$	58
	Noncurrent Assets	—		Noncurrent Assets	—		Noncurrent Liabilities	26		Noncurrent Liabilities	15
Total		$	180		$	2		$	27		$	73

⁽¹⁾ See Note 1. Summary of Significant Accounting Policies – Derivative Instruments and Hedging Activities.

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)	2018			2017			2016
Cash Paid (Received) in Settlement of Commodity Derivative Instruments
Crude Oil	$	162		$	(14	)	$	(499	)
Natural Gas	(1		)	1			(70		)
Total Cash Paid (Received) in Settlement of Commodity Derivative Instruments	161			(13		)	(569		)
Non-cash Portion of (Gain) Loss on Commodity Derivative Instruments
Crude Oil	(225		)	18			582
Natural Gas	1			(68		)	126
Total Non-cash Portion of (Gain) Loss on Commodity Derivative Instruments	(224		)	(50		)	708
(Gain) Loss on Commodity Derivative Instruments
Crude Oil	(63		)	4			83
Natural Gas	—			(67		)	56
Total (Gain) Loss on Commodity Derivative Instruments	$	(63	)	$	(63	)	$	139