Derivatives and Risk Management (Tables)

3 Months Ended

Mar. 31, 2018

Derivatives and Risk Management [Abstract]

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

Financial Protection on Production		Weighted Average Price per MMBtu										Fair Value at
	Volume (Bcf)	Swaps		Sold Puts		Purchased Puts		Sold Calls		Basis Differential		March 31, 2018 ($ in millions)
Natural gas
2018
Fixed price swaps	215	$	2.97	$	–	$	–	$	–	$	–	$	33
Two-way costless collars	6		–		–		2.90		3.27		–		1
Three-way costless collars	213		–		2.40		2.97		3.37		–		39
Total	434											$	73
2019
Fixed price swaps	93	$	3.00	$	–	$	–	$	–	$	–	$	19
Two-way costless collars	53		–		–		2.80		2.98		–		6
Three-way costless collars	133		–		2.49		2.93		3.34		–		11
Total	279											$	36
Basis swaps
2018	73	$	–	$	–	$	–	$	–	$	(0.59)	$	–
2019	6		–		–		–		–		1.01		(1)
Total	79											$	(1)

	Volume (MBbls)	Weighted Average Strike Price per Bbl		Fair Value at March 31, 2018 ($ in millions)
Propane
2018
Fixed price swaps	1,100	$	34.64	$	3
Ethane
2018
Fixed price swaps	413	$	11.19	$	–
2019
Fixed price swaps	91	$	11.61	$	–

Other Derivative Contracts
	Volume (Bcf)	Weighted Average Strike Price per MMBtu		Fair Value at March 31, 2018 ($ in millions)
Purchased call options
2020	68	$	3.63	$	7
2021	57		3.52		11
Total	125			$	18
Sold call options
2018	47	$	3.50	$	(1)
2019	52		3.50		(4)
2020	137		3.39		(21)
2021	114		3.33		(27)
Total	350			$	(53)

	Volume (Bcf)	Weighted Average Strike Price per MMBtu		Basis Differential		Fair Value at March 31, 2018 ($ in millions)
Storage (1)
2018
Fixed price swaps	1	$	2.76	$	–	$	–
Basis swaps	1		–		(0.88)		–
Total	2					$	–
2019
Fixed price swaps	1	$	3.03	$	–	$	–
Basis swaps	1		–		(0.44)		–
Total	2					$	–

(1) The Company has entered into certain derivatives to protect the value of volumes of natural gas injected into a storage facility that will be withdrawn at a later date.

Balance Sheet Classification of Derivative Financial Instruments

	Derivative Assets
	Balance Sheet Classification		Fair Value
			March 31, 2018		December 31, 2017
Derivatives not designated as hedging instruments:		(in millions)
Fixed price swaps - natural gas	Derivative assets		$	34	$	38
Fixed price swaps - propane	Derivative assets			3		–
Two-way costless collars	Derivative assets			4		5
Three-way costless collars	Derivative assets			63		82
Basis swaps	Derivative assets			6		2
Purchased call options	Derivative assets			–		2
Fixed price swaps - natural gas	Other long-term assets			20		18
Two-way costless collars	Other long-term assets			12		–
Three-way costless collars	Other long-term assets			28		39
Purchased call options	Other long-term assets			18		–
Interest rate swaps	Other long-term assets			1		–
Total derivative assets			$	189	$	186	(1)
	Derivative Liabilities
	Balance Sheet Classification		Fair Value
			March 31, 2018		December 31, 2017
Derivatives not designated as hedging instruments:			(in millions)
Fixed price swaps - natural gas	Derivative liabilities		$	2	$	–
Two-way costless collars	Derivative liabilities			3		1
Three-way costless collars	Derivative liabilities			25		36
Basis swaps	Derivative liabilities			7		23
Sold call options	Derivative liabilities			3		3
Interest rate swaps	Derivative liabilities			–		1
Fixed price swaps - natural gas	Other long-term liabilities			–		1
Two-way costless collars	Other long-term liabilities			6		–
Three-way costless collars	Other long-term liabilities			16		30
Sold call options	Other long-term liabilities			49		15
Total derivative liabilities			$	111	$	110

(1) Excludes $1 million in premiums paid related to certain call options recognized as a component of derivative assets within current assets on the condensed consolidated balance sheet at December 31, 2017. As certain call options settled, the premium was amortized and recognized as a component of gain (loss) on derivatives on the unaudited condensed statement 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 three months ended
	Classification of Gain (Loss)	March 31,
Derivative Instrument	on Derivatives, Unsettled	2018			2017
		(in millions)
Fixed price swaps - natural gas	Gain (Loss) on Derivatives	$	(3)		$	118
Fixed price swaps - propane	Gain (Loss) on Derivatives		3			–
Two-way costless collars	Gain (Loss) on Derivatives		3			31
Three-way costless collars	Gain (Loss) on Derivatives		(5)			57
Basis swaps	Gain (Loss) on Derivatives		20			(103)
Purchased call options	Gain (Loss) on Derivatives		16			–
Sold call options	Gain (Loss) on Derivatives		(34)			42
Interest rate swaps	Gain (Loss) on Derivatives		2			1
Total gain on unsettled derivatives		$	2		$	146
		Gain (Loss) on Derivatives, Settled (1)
		Recognized in Earnings
	Consolidated Statement of Operations	For the three months ended
	Classification of Gain (Loss)	March 31,
Derivative Instrument	on Derivatives, Settled	2018			2017
		(in millions)
Fixed price swaps - natural gas	Gain (Loss) on Derivatives	$	–		$	(16)
Two-way costless collars	Gain (Loss) on Derivatives		4			(3)
Three-way costless collars	Gain (Loss) on Derivatives		7			(4)
Basis swaps	Gain (Loss) on Derivatives		(21)			(1)
Purchased call options	Gain (Loss) on Derivatives		2	(2)		–
Sold call options	Gain (Loss) on Derivatives		(1)			(6)
Total loss on settled derivatives		$	(9)		$	(30)
Total gain (loss) on derivatives		$	(7)		$	116

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

(2) Includes $1 million amortization of premiums paid related to certain call options for the three months ended March31, 2018, which is included in gain (loss) on derivatives on the unaudited condensed consolidated statements of operations.