Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2011

As of December 31, 2011, we have entered into the following crude oil derivative instruments:

					Swaps		Collars
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
2012	Swaps	NYMEX WTI		5,000	$	91.84	$	-	$	-	$	-
2012	Swaps	Dated Brent		8,000		89.06		-		-		-
2012	Three-Way Collars	NYMEX WTI		23,000		-		61.09		83.04		101.66
2012	Three-Way Collars	Dated Brent		3,000		-		70.00		95.83		105.00
2013	Swaps	Dated Brent		3,000		98.03		-		-		-
2013	Three-Way Collars	NYMEX WTI		5,000		-		65.00		85.00		113.63
2013	Three-Way Collars	Dated Brent		23,000		-		82.61		100.32		127.62
2014	Three-Way Collars	Dated Brent		5,000		-		80.00		92.00		130.50
Instruments entered into during January 1-31, 2012
2013	Three-Way Collars	Dated Brent		5,000		-		90.00		105.00		127.97

As of December 31, 2011, we have entered into the following natural gas derivative instruments:

					Swaps		Collars
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
2012	Swaps	NYMEX HH		30,000	$	5.10	$	-	$	-	$	-
2012	Two-Way Collars	NYMEX HH		40,000		-		-		3.25		5.14
2012	Three-Way Collars	NYMEX HH		110,000		-		4.44		5.25		6.66
2013	Swaps	NYMEX HH		30,000		5.25		-		-		-
2013	Two-Way Collars	NYMEX HH		40,000		-		-		3.25		5.14
2013	Three-Way Collars	NYMEX HH		100,000		-		3.88		4.75		5.63

As of December 31, 2011, we have entered into the following natural gas basis swaps:

Period	Index	Index Less Differential	MMBtu Per Day	Weighted Average Differential

2012	IFERC CIG (1)	NYMEX HH	150,000	$	(0.52)

(1)	Colorado Interstate Gas – Northern System

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

Fair Value of Derivative Instruments
	Asset Derivative Instruments						Liability Derivative Instruments
	December 31,						December 31,
	2011			2010			2011			2010
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
(millions)
Commodity Derivative Instruments (Not Designated as Hedging Instruments)	Current Assets	$	10	Current Assets	$	62	Current Liabilities	$	76	Current Liabilities	$	24
	Noncurrent Assets		37	Noncurrent Assets		-	Noncurrent Liabilities		7	Noncurrent Liabilities		51
Interest Rate Derivative Instrument (Designated as Hedging Instrument)	Current Assets		-	Current Assets		-	Current Liabilities		-	Current Liabilities		63
	Total	$	47	Total	$	62	Total	$	83	Total	$	138

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

Commodity Derivative Instruments Not Designated as Hedging Instruments

Amount of (Gain) Loss on Derivative Instruments Recognized in Income

	Year Ended December 31,
	2011			2010			2009
(millions)
Realized Mark-to-Market (Gain)	$	(64	)	$	(87	)	$	(496	)
Unrealized Mark-to-Market (Gain) Loss		22			(70	)		606
Total (Gain) Loss on Commodity Derivative Instruments	$	(42	)	$	(157	)	$	110

Derivative Instruments in Cash Flow Hedging Relationships

	Amount of (Gain) Loss on Derivative Instruments Recognized in Other Comprehensive (Income) Loss								Amount of (Gain) Loss on Derivative Instruments Reclassified from Accumulated Other Comprehensive Loss
		2011			2010		2009		2011		2010		2009
(millions)
Commodity Derivative Instruments in Previously
Designated Cash Flow Hedging Relationships (1)
Crude Oil		$	-		$	-	$	-	$	-	$	19	$	58
Natural Gas			-			-		-		-		1		-
Interest Rate Derivative Instruments in
Cash Flow Hedging Relationships			(23	)		63		-		1		1		1
Total		$	(23	)	$	63	$	-	$	1	$	21	$	59

(1)	Includes effect of commodity derivative instruments previously accounted for as cash flow hedges. All net derivative gains and losses that were deferred in AOCL as a result of previous cash flow hedge accounting, had been reclassified to earnings by December 31, 2010.