Derivatives and Risk Management (Tables)

12 Months Ended

Dec. 31, 2017

Derivatives and Risk Management [Abstract]

Schedule of Derivative Instruments, Notional Amount in BCF, Weighted Average Contract Prices and Fair Value

		Weighted Average Price per MMBtu
Financial protection on production	Volume (Bcf)	Swaps		Sold Puts		Purchased Puts		Sold Calls		Basis Differential		Fair value at December 31, 2017 ($ in millions)
2018
Fixed price swaps	194	$	3.02	$	–	$	–	$	–	$	–	$	38
Two-way costless collars	23		–		–		2.97		3.56		–		4
Three-way costless collars	272		–		2.40		2.97		3.37		–		46
Total	489											$	88
2019
Fixed price swaps	93	$	3.00	$	–	$	–	$	–	$	–	$	17
Three-way costless collars	108		–		2.50		2.95		3.32		–		9
Total	201											$	26
Basis swaps
2018	44	$	–	$	–	$	–	$	–	$	(0.48)	$	(21)
2019	–		–		–		–		–		(0.59)		–
Total	44											$	(21)

Purchased call options	Volume (Bcf)	Weighted Average Strike Price per MMBtu		Fair value at December 31, 2017 ($ in millions)
2018	13	$	3.23	$	2	(1)
	13			$	2
Sold call options
2018	63	$	3.50	$	(3)
2019	52		3.50		(5)
2020	68		3.63		(4)
2021	57		3.52		(6)
Total	240			$	(18)

(1) Excludes $1 million in premiums paid related to certain call options recognized as a component of derivative assets within current assets on the consolidated balance sheet.  As certain call options settle, the premium will be amortized and recognized as a component of gain (loss) on derivatives on the consolidated statements of operations.

Balance Sheet Classification of Derivative Financial Instruments

	Derivative Assets
	Balance Sheet Classification		Fair Value at December 31,
			2017			2016
Derivatives not designated as hedging instruments:		(in millions)
Fixed price swaps	Derivative assets		$	38		$	–
Two-way costless collars	Derivative assets			5			8
Three-way costless collars	Derivative assets			82			11
Basis swaps	Derivative assets			2			32
Purchased call options	Derivative assets			2			–
Fixed price swaps	Other long-term assets			18			1
Two-way costless collars	Other long-term assets			–			2
Three-way costless collars	Other long-term assets			39			100
Basis swaps	Other long-term assets			–			1
Total derivative assets			$	186	(1)	$	155
	Derivative Liabilities
	Balance Sheet Classification		Fair Value at December 31,
			2017			2016
Derivatives not designated as hedging instruments:			(in millions)
Fixed price swaps	Derivative liabilities		$	–			175
Two-way costless collars	Derivative liabilities			1			49
Three-way costless collars	Derivative liabilities			36			70
Basis swaps	Derivative liabilities			23			13
Sold call options	Derivative liabilities			3			46
Interest rate swaps	Derivative liabilities			1			2
Fixed price swaps	Other long-term liabilities			1			3
Two-way costless collars	Other long-term liabilities			–			9
Three-way costless collars	Other long-term liabilities			30			122
Basis swaps	Other long-term liabilities			–			5
Sold call options	Other long-term liabilities			15			35
Interest rate swaps	Other long-term liabilities			–			1
Total derivative liabilities			$	110		$	530

(1) Excludes $1 million in premiums paid related to certain call options currently recognized as a component of derivative assets within current assets on the consolidated balance sheet. As certain call options settle, the premium will be amortized and recognized as a component of gain (loss) on derivatives on the consolidated statements of operations.

Summary of Before Tax Effect of Fair Value Hedges not Designated for Hedge Accounting

		Gain (Loss) on Derivatives, Unsettled
		Recognized in Earnings
	Consolidated Statement of Operations	For the years ended
	Classification of Gain (Loss)	December 31,
Derivative Instrument	on Derivatives, Unsettled	2017			2016
		(in millions)
Fixed price swaps (1)	Gain (Loss) on Derivatives	$	232		$	(177)
Two-way costless collars	Gain (Loss) on Derivatives		52			(48)
Three-way costless collars	Gain (Loss) on Derivatives		136			(81)
Basis swaps	Gain (Loss) on Derivatives		(36)			12
Purchased call options	Gain (Loss) on Derivatives		2			–
Sold call options	Gain (Loss) on Derivatives		63			(81)
Interest rate swaps	Gain (Loss) on Derivatives		2			2
Total gain (loss) on unsettled derivatives		$	451		$	(373)
		Gain (Loss) on Derivatives, Settled (2)
		Recognized in Earnings
	Consolidated Statement of Operations	For the years ended
	Classification of Gain (Loss)	December 31,
Derivative Instrument	on Derivatives, Settled	2017			2016
		(in millions)
Fixed price swaps (1)	Gain (Loss) on Derivatives	$	(9)		$	–
Purchased put options	Gain (Loss) on Derivatives		–			11
Two-way costless collars	Gain (Loss) on Derivatives		–			3
Three-way costless collars	Gain (Loss) on Derivatives		(1)			1
Basis swaps	Gain (Loss) on Derivatives		(6)			21
Sold call options	Gain (Loss) on Derivatives		(11)	(3)		–
Interest rate swaps	Gain (Loss) on Derivatives		(2)			(2)
Total gain (loss) on settled derivatives (4)		$	(29)		$	34
Total gain (loss) on derivatives		$	422		$	(339)

(1) Includes the Company’s fixed price swaps on natural gas, ethane and propane. As of December 31, 2017, the amount of unsettled and settled fixed price swaps related to ethane and propane was immaterial.

(2) The Company calculates gain (loss) on derivatives, settled, as the summation of gains and losses on positions that have settled within the period.

(3) Includes $5 million amortization of premiums paid related to certain call options for the year ended December 31, 2017.

(4) Excluding interest rate swaps and settled ethane fixed price swaps, these amounts are included, along with gas sales revenues, in the calculation of the Company’s realized natural gas price.  Settled ethane fixed price swaps are included, along with NGL sales revenues, in the calculation of the Company’s realized NGL price.