Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Unsettled Derivative Instruments

As of March 31, 2020, 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
Apr2020-Dec2020	Sold Calls	NYMEX WTI	8,000	$	—		$	65.59	$	—	$	—	$	—
Apr2020-Dec2020	Swaps	NYMEX WTI	11,500	—			57.79		—		—		—
Apr2020-Jun2020	Swaps	NYMEX WTI	72,000	—			37.09		—		—		—
Jul2020-Dec2020	Three-Way Collars	NYMEX WTI	53,000	—			—		10.00		25.00		37.20
Jul2020-Dec2020	Call Swaption	NYMEX WTI	11,000	—			58.95		—		—		—
2020	Basis Swaps	Midland (1)	15,000	(5.01		)	—		—		—		—

⁽¹⁾  These contracts 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, 2020, we had entered into the following natural gas liquid (NGL) derivative instruments:

				Swaps
Settlement Period	Type of Contract	Index	Bbls per Day	Weighted Average Fixed Price
Apr 2020-Sept 2020	Ethane Swaps	Mont Belvieu	2,000	$	7.77
Apr 2020-Sept 2020	Propane Swaps	Mont Belvieu	5,000	21.04
Apr 2020-Sept 2020	Isobutane Swaps	Mont Belvieu	1,000	25.36
Apr 2020-Sept 2020	Butane Swaps	Mont Belvieu	1,500	24.31

As of March 31, 2020, 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
Apr2020-Dec2020	Swaps	NYMEX HH	90,000	$	—		$	2.60	$	—	$	—	$	—
Apr2020-Oct2020	Three-Way Collars	NYMEX HH	40,000	—			—		2.25		2.70		2.85
Apr2020-Dec2020	Sold Puts	NYMEX HH	90,000	—			—		2.15		—		—
2020	Basis Swaps	CIG (1)	139,000	(0.56		)	—		—		—		—
2020	Basis Swaps	WAHA (1)	49,500	(1.05		)	—		—		—		—
2021	Swaps	NYMEX HH	70,000	—			2.42		—		—		—
2021	Call Swaption	NYMEX HH	70,000	—			2.42		—		—		—
2021	Basis Swaps	CIG (1)	60,000	(0.52		)	—		—		—		—
2021	Basis Swaps	WAHA (1)	32,000	(0.71		)	—		—		—		—

⁽¹⁾ 

These contracts establish a fixed amount for the differential between index pricing for Colorado Interstate Gas (CIG) and Waha Hub versus NYMEX Henry Hub (HH). The weighted average differential represents the amount of reduction to NYMEX HH prices for the notional volumes covered by the basis swap contracts.

Fair Value of Derivative Instruments

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

Asset Derivative Instruments					Liability Derivative Instruments
Balance Sheet Location	March 31, 2020		December 31, 2019		Balance Sheet Location	March 31, 2020		December 31, 2019
Other Current Assets	$	221	$	14	Other Current Liabilities	$	59	$	36
Other Noncurrent Assets	—		1		Other Noncurrent Liabilities	3		1
Total	$	221	$	15		$	62	$	37

Derivative Instruments, (Gain) Loss

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

	Three Months Ended March 31,
(millions)	2020			2019
Cash (Received) Paid in Settlement of Commodity Derivative Instruments
Crude Oil (1)	$	(210	)	$	(9	)
NGL	—			—
Natural Gas	2			(5		)
Total Cash Received in Settlement of Commodity Derivative Instruments	(208		)	(14		)
Non-cash Portion of (Gain) Loss on Commodity Derivative Instruments
Crude Oil	(187		)	223
NGL	(10		)	—
Natural Gas	16			3
Total Non-cash Portion of (Gain) Loss on Commodity Derivative Instruments	(181		)	226
(Gain) Loss on Commodity Derivative Instruments
Crude Oil	(397		)	214
NGL	(10		)	—
Natural Gas	18			(2		)
Total (Gain) Loss on Commodity Derivative Instruments	$	(389	)	$	212

⁽¹⁾ 

During first quarter 2020, we monetized certain crude oil derivative instruments by settling the instruments prior to their original settlement dates and entered into certain new instruments for the remainder of the year. Certain of this activity was intraperiod and related to crude oil instruments that were not part of our derivative portfolio as of December 31, 2019 and March 31, 2020. Net cash received in first quarter 2020 for these transactions was $160 million.