Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2020

Carrying Amount and Estimated Fair Values of Financial Instruments

The carrying amounts and estimated fair values of the Company’s financial instruments as of December 31, 2020 and 2019 were as follows:


	December 31, 2020				December 31, 2019
(in millions)	Carrying Amount		Fair Value		Carrying Amount			Fair Value
Cash and cash equivalents	$	13	$	13	$	5		$	5
2018 revolving credit facility due April 2024 (1)	700		700		34			34
Senior notes (2)	2,471		2,609		2,228			2,085
Derivative instruments, net	(41)		(41)		155		(3)	155		(3)

(1)In October 2019, the Company amended its 2018 revolving credit facility agreement which, among other things, extended the maturity from 2023 to 2024.

(2)Excludes unamortized debt issuance costs and debt discounts.

(3)Includes $9 million in premiums paid as of December 31, 2019 related to certain natural gas fixed price swaps recognized as a component of derivative assets within current assets on the consolidated balance sheet.

Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized below:


	December 31, 2020
	Fair Value Measurements Using:
(in millions)	Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Assets (Liabilities) at Fair Value
Assets:
Purchased fixed price swaps	$	—	$	1	$	—	$	1
Fixed price swaps	—		59		—		59
Two-way costless collars	—		74		—		74
Three-way costless collars	—		174		—		174
Basis swaps	—		75		—		75
Call options	—		4		—		4

Liabilities:

Fixed price swaps	—		(96)		—		(96)
Two-way costless collars	—		(65)		—		(65)
Three-way costless collars	—		(214)		—		(214)
Basis swaps	—		(10)		—		(10)
Call options	—		(40)		—		(40)
Put options	—		(1)		—		(1)
Swaptions	—		(2)		—		(2)

Total	$	—	$	(41)	$	—	$	(41)


	December 31, 2019
	Fair Value Measurements Using:
(in millions)	Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Assets (Liabilities) at Fair Value
Assets:
Fixed price swaps (1)	$	—	$	125	$	—	$	125
Two-way costless collars	—		21		—		21
Three-way costless collars	—		210		—		210
Basis swaps – natural gas	—		32		—		32
Call options	—		3		—		3

Liabilities:
Purchased fixed price swaps	—		(1)		—		(1)
Fixed price swaps	—		(9)		—		(9)
Two-way costless collars	—		(13)		—		(13)
Three-way costless collars	—		(168)		—		(168)
Basis swaps	—		(26)		—		(26)
Call options	—		(19)		—		(19)
Total	$	—	$	155	$	—	$	155

(1)Includes $9 million in premiums paid related to certain natural gas fixed price swaps recognized as a component of derivative assets within current assets on the consolidated balance sheet at December 31, 2019. As certain natural gas fixed price swaps settle, the premium will be amortized and recognized as a component of gain (loss) on derivatives on the consolidated statement of operations.