Derivatives and Risk Management (Tables)

12 Months Ended

Dec. 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
	Volume (Bcf)	Swaps		Sold Puts		Purchased Puts		Sold Calls		Basis Differential		Fair value at December 31, 2018 ($ in millions)
Natural Gas
2019
Fixed price swaps	220	$	2.93	$	–	$	–	$	–	$	–	$	23
Two-way costless collars	53		–		–		2.80		2.98		–		4
Three-way costless collars	170		–		2.48		2.90		3.28		–		8
Total	443											$	35
2020
Fixed price swaps	24	$	2.88	$	–	$	–	$	–	$	–	$	5
Three-way costless collars	84		–		2.40		2.73		3.03		–		–
Total	108											$	5
2021
Three-way costless collars	37	$	–	$	2.35	$	2.60	$	2.93	$	–	$	(1)
Basis swaps
2019	107	$	–	$	–	$	–	$	–	$	(0.29)	$	(10)
2020	59		–		–		–		–		(0.44)		(1)
Total	166											$	(11)

		Weighted Average Price per Bbl
	Volume (MBbls)	Swaps		Purchased Puts		Sold Calls		Fair value at December 31, 2018 ($ in millions)
Oil
2019
Fixed price swaps (1)	346	$	68.74	$	–	$	–	$	7
Two-way costless collars	329		–		65.00		72.30		6
Total	675							$	13
2020
Fixed price swaps	366	$	65.68	$	–	$	–	$	6
Two-way costless collars	366		–		60.00		69.80		4
Total	732							$	10
Propane
2019
Fixed price swaps	1,689	$	33.12	$	–	$	–	$	11
Ethane
2019
Fixed price swaps	3,687	$	13.90	$	–	$	–	$	4
2020
Fixed price swaps	732	$	13.49	$	–	$	–	$	1

(1) Includes 274 MBbls of purchased fixed price oil swaps hedged at $69.10 per barrel with a fair value of ($6) million and 620 MBbls of sold fixed price oil swaps hedged at $68.90 with a fair value of $13 million.

Other Derivative Contracts
	Volume (Bcf)	Weighted Average Strike Price per MMBtu		Fair value at December 31, 2018 ($ in millions)
Purchased Call Options – Natural Gas
2020	68	$	3.63	$	4
2021	57		3.52		2
Total	125			$	6
Sold Call Options – Natural Gas
2019	52	$	3.50	$	(3)
2020	137		3.39		(12)
2021	114		3.33		(7)
Total	303			$	(22)
	Volume (MBbls)	Weighted Average Strike Price per Bbl		Fair Value at December 31, 2018 ($ in millions)
Sold Call Options – Oil
2019	270	$	65.00	$	–

	Volume (Bcf)	Weighted Average Strike Price per MMBtu		Basis Differential		Fair Value at December 31, 2018 ($ in millions)
Storage (1)
2019
Fixed price swaps	0.8	$	3.03	$	–	$	–
Basis swaps	0.8		–		(0.44)		–
Total						$	–

(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
(in millions)		December 31, 2018		December 31, 2017
Derivatives not designated as hedging instruments:
Fixed price swap – natural gas	Derivative assets	$	32	$	38
Fixed price swap – oil	Derivative assets		13		–
Fixed price swap – propane	Derivative assets		11		–
Fixed price swap – ethane	Derivative assets		7		–
Two-way costless collar – natural gas	Derivative assets		11		5
Two-way costless collar – oil	Derivative assets		6		–
Three-way costless collar – natural gas	Derivative assets		41		82
Basis swap – natural gas	Derivative assets		8		2
Purchased call option – natural gas	Derivative assets		–		3	(1)
Interest rate swap	Derivative assets		1		–
Fixed price swap – natural gas	Other long-term assets		6		18
Fixed price swap – oil	Other long-term assets		6		–
Fixed price swap – ethane	Other long-term assets		1		–
Two-way costless collar – oil	Other long-term assets		5		–
Three-way costless collar – natural gas	Other long-term assets		34		39
Basis swap – natural gas	Other long-term assets		3		–
Purchased call options – natural gas	Other long-term assets		6		–
Total derivative assets		$	191	$	187

Derivative Liabilities
	Balance Sheet Classification	Fair Value
(in millions)		December 31, 2018		December 31, 2017
Derivatives not designated as hedging instruments:
Purchased fixed price swap – oil	Derivative liabilities	$	6	$	–
Fixed price swap – natural gas	Derivative liabilities		9		–
Fixed price swap – ethane	Derivative liabilities		3		–
Two-way costless collar – natural gas	Derivative liabilities		7		1
Three-way costless collar – natural gas	Derivative liabilities		33		36
Basis swap – natural gas	Derivative liabilities		18		23
Sold call option – natural gas	Derivative liabilities		3		3
Interest rate swap	Derivative liabilities		–		1
Fixed price swap – natural gas	Other long-term liabilities		1		1
Two-way costless collar – oil	Other long-term liabilities		1		–
Three-way costless collar – natural gas	Other long-term liabilities		35		30
Basis swap – natural gas	Other long-term liabilities		4		–
Sold call option – natural gas	Other long-term liabilities		19		15
Total derivative liabilities		$	139	$	110

(1) Includes $1 million in premiums paid related to certain natural gas call options recognized as a component of derivative assets within current assets on the consolidated balance sheet at December 31, 2017.  As certain natural gas call options settled, the premium was amortized and recognized as a component of gain (loss) on derivatives on the consolidated statements of operations.

Summary of Before Tax Effect of Cash Flow Hedges on Consolidated Financial Statements

Unsettled Gain (Loss) on Derivatives Recognized in Earnings
	Consolidated Statement of Operations	For the years ended
	Classification of Gain (Loss)	December 31,
Derivative Instrument	on Derivatives, Unsettled	2018			2017
		(in millions)
Purchased fixed price swap – oil	Gain (Loss) on Derivatives	$	(6)		$	–
Fixed price swap – natural gas	Gain (Loss) on Derivatives		(27)			232
Fixed price swap – oil	Gain (Loss) on Derivatives		19			–
Fixed price swap – propane	Gain (Loss) on Derivatives		11			–
Fixed price swap – ethane	Gain (Loss) on Derivatives		5			–
Two-way costless collar – natural gas	Gain (Loss) on Derivatives		–			52
Two-way costless collar – oil	Gain (Loss) on Derivatives		10			–
Three-way costless collar – natural gas	Gain (Loss) on Derivatives		(48)			136
Basis swap – natural gas	Gain (Loss) on Derivatives		10			(36)
Purchased call option – natural gas	Gain (Loss) on Derivatives		4			2
Sold call option – natural gas	Gain (Loss) on Derivatives		(4)			63
Interest rate swap	Gain (Loss) on Derivatives		2			2
Total gain (loss) on unsettled derivatives		$	(24)		$	451
Settled Gain (Loss) on Derivatives Recognized in Earnings (1)
	Consolidated Statement of Operations	For the years ended
	Classification of Gain (Loss)	December 31,
Derivative Instrument	on Derivatives, Settled	2018			2017
		(in millions)
Fixed price swap – natural gas	Gain (Loss) on Derivatives	$	(32)		$	(9)
Fixed price swap – propane	Gain (Loss) on Derivatives		(6)			–
Fixed price swap – ethane	Gain (Loss) on Derivatives		(8)			–
Two-way costless collar – natural gas	Gain (Loss) on Derivatives		(1)			–
Three-way costless collar – natural gas	Gain (Loss) on Derivatives		(9)			(1)
Basis swap – natural gas	Gain (Loss) on Derivatives		(31)			(6)
Purchased call option – natural gas	Gain (Loss) on Derivatives		2	(2)		–
Sold call option – natural gas	Gain (Loss) on Derivatives		(7)			(11)	(3)
Sold call option – oil	Gain (Loss) on Derivatives		(2)			–
Interest rate swap	Gain (Loss) on Derivatives		–			(2)
Total loss on settled derivatives		$	(94)		$	(29)
Total gain (loss) on derivatives		$	(118)		$	422

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

(2) Includes $1 million amortization of premiums paid related to certain natural gas call options for the year ended December 31, 2018, which is included in gain (loss) on derivatives on the consolidated statement of operations.

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