Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Unsettled Derivative Instruments

As of March 31, 2019, the following crude oil derivative contracts were outstanding:

				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	Swaption	NYMEX WTI	5,000	—			62.50		—		—		—
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	Three-Way Collars	NYMEX WTI	10,000	—			—		50.00		58.00		67.37
2020	Basis Swaps	(1)	15,000	(5.01		)	—		—		—		—

⁽¹⁾  We entered into crude oil basis swap contracts to establish a fixed amount for 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 March 31, 2019, the following natural gas derivative contracts were outstanding:

				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
2019	Three-Way Collars	NYMEX HH	104,000	$	—		$	—	$	2.25	$	2.65	$	2.95
2019	Swaps	NYMEX HH	46,000	—			3.00		—		—		—
2019	Basis Swaps	CIG (1)	113,500	(0.65		)	—		—		—		—
2019	Basis Swaps	WAHA (1)	15,000	(1.44		)	—		—		—		—
2020	Basis Swaps	CIG (1)	44,000	(0.62		)	—		—		—		—
2020	Basis Swaps	WAHA (1)	17,000	(0.75		)	—		—		—		—

⁽¹⁾ 

We entered into natural gas basis swap contracts to establish a fixed amount for the differential between the noted index pricing 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 commodity derivative instruments in our consolidated balance sheets were as follows:

	Asset Derivative Instruments					Liability Derivative Instruments
(millions)	Balance Sheet Location	March 31, 2019		December 31, 2018		Balance Sheet Location	March 31, 2019		December 31, 2018
Commodity Derivative Instruments	Other Current Assets	$	9	$	180	Other Current Liabilities	$	63	$	1
	Other Noncurrent Assets	1		—		Other Noncurrent Liabilities	20		26
	Total	$	10	$	180		$	83	$	27

Derivative Instruments, (Gain) Loss

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

	Three Months Ended March 31,
(millions)	2019			2018
Cash (Received) Paid in Settlement of Commodity Derivative Instruments
Crude Oil	$	(9	)	$	30
Natural Gas	(5		)	(2		)
Total Cash (Received) Paid in Settlement of Commodity Derivative Instruments	$	(14	)	$	28
Non-cash Portion of Loss on Commodity Derivative Instruments
Crude Oil	$	223		$	50
Natural Gas	3			1
Total Non-cash Portion of Loss on Commodity Derivative Instruments	$	226		$	51
Loss (Gain) on Commodity Derivative Instruments
Crude Oil	$	214		$	80
Natural Gas	(2		)	(1		)
Total Loss on Commodity Derivative Instruments	$	212		$	79