10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

☒ Quarterly Report pursuant to Section 13 or 15(d) of the Securities

Exchange Act of 1934

For the quarterly period ended March 31, 2021

Or

☐ Transition Report pursuant to Section 13 or 15(d) of the Securities

Exchange Act of 1934

For the transition period from ________ to ________

Commission file number: 001-08246

Southwestern Energy Company

(Exact name of registrant as specified in its charter)

Delaware	71-0205415
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

10000 Energy Drive

Spring, Texas 77389

(Address of principal executive offices)(Zip Code)

(832) 796-1000

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, Par Value $0.01	SWN	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

Class	Outstanding as of April 27, 2021
Common Stock, Par Value $0.01	676,850,759

SOUTHWESTERN ENERGY COMPANY

INDEX TO FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2021

PART I – FINANCIAL INFORMATION			Page
Item 1.	Financial Statements		3
	Consolidated Statements of Operations		3
	Consolidated Statements of Comprehensive Income (Loss)		4
	Consolidated Balance Sheets		5
	Consolidated Statements of Cash Flows		6
	Consolidated Statements of Changes in Equity		7
	Notes to Consolidated Financial Statements		8
		Note 1. Basis of Presentation	8
		Note 2. Acquisition	8
		Note 3. Restructuring Charges	10
		Note 4. Revenue Recognition	11
		Note 5. Cash and Cash Equivalents	12
		Note 6. Natural Gas and Oil Properties	12
		Note 7. Earnings per Share	13
		Note 8. Derivatives and Risk Management	14
		Note 9. Reclassifications From Accumulated Other Comprehensive Income (Loss)	22
		Note 10. Fair Value Measurements	22
		Note 11. Debt	24
		Note 12. Commitments and Contingencies	27
		Note 13. Income Taxes	28
		Note 14. Pension Plan and Other Postretirement Benefits	28
		Note 15. Long-Term Incentive Compensation	29
		Note 16. Segment Information	32
		Note 17. New Accounting Pronouncements	33
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		33
	Results of Operations		36
	Liquidity and Capital Resources		43
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		47
Item 4.	Controls and Procedures		48
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings		49
Item 1A.	Risk Factors		49
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		49
Item 3.	Defaults Upon Senior Securities		49
Item 4.	Mine Safety Disclosures		49
Item 5.	Other Information		49
Item 6.	Exhibits		49

CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS

All statements, other than historical fact or present financial information, may be deemed to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).  All statements that address activities, outcomes and other matters that should or may occur in the future, including, without limitation, statements regarding the financial position, business strategy, production and reserve growth and other plans and objectives for our future operations, are forward-looking statements.  Although we believe the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements

1

are not guarantees of future performance.  We have no obligation and make no undertaking to publicly update or revise any forward-looking statements, except as may be required by law.

Forward-looking statements include the items identified in the preceding paragraph, information concerning possible or assumed future results of operations and other statements in this Quarterly Report on Form 10-Q (this “Quarterly Report”) identified by words such as “anticipate,” “intend,” “plan,” “project,” “estimate,” “continue,” “potential,” “should,” “could,” “may,” “will,” “objective,” “guidance,” “outlook,” “effort,” “expect,” “believe,” “predict,” “budget,” “projection,” “goal,” “forecast,” “model,” “target” or similar words.

You should not place undue reliance on forward-looking statements.  They are subject to known and unknown risks, uncertainties and other factors that may affect our operations, markets, products, services and prices and cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.  In addition to any assumptions and other factors referred to specifically in connection with forward-looking statements, risks, uncertainties and factors that could cause our actual results to differ materially from those indicated in any forward-looking statement include, but are not limited to:

•the timing and extent of changes in market conditions and prices for natural gas, oil and natural gas liquids (“NGLs”), including regional basis differentials and the impact of reduced demand for our production and products in which our production is a component due to governmental and societal actions taken in response to the COVID-19 pandemic;

•our ability to fund our planned capital investments;

•a change in our credit rating, an increase in interest rates and any adverse impacts from the discontinuation of the London Interbank Offered Rate (“LIBOR”);

•the extent to which lower commodity prices impact our ability to service or refinance our existing debt;

•the impact of volatility in the financial markets or other global economic factors, including the impact of COVID-19;

•difficulties in appropriately allocating capital and resources among our strategic opportunities;

•the timing and extent of our success in discovering, developing, producing and estimating reserves;

•our ability to maintain leases that may expire if production is not established or profitably maintained;

•our ability to realize the expected benefits from acquisitions, including the Merger (as defined below);

•integration of operations and results subsequent to the Merger;

•our ability to transport our production to the most favorable markets or at all;

•availability and costs of personnel and of products and services provided by third parties;

•the impact of government regulation, including changes in law, the ability to obtain and maintain permits, any increase in severance or similar taxes, and legislation or regulation relating to hydraulic fracturing, climate and over-the-counter derivatives;

•the impact of the adverse outcome of any material litigation against us or judicial decisions that affect us or our industry generally;

•the effects of weather;

•increased competition;

•the financial impact of accounting regulations and critical accounting policies;

•the comparative cost of alternative fuels;

•credit risk relating to the risk of loss as a result of non-performance by our counterparties; and

•any other factors listed in the reports we have filed and may file with the Securities and Exchange Commission (“SEC”).

Should one or more of the risks or uncertainties described above or elsewhere in this Quarterly Report occur, or should underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements.  We specifically disclaim all responsibility to update publicly any information contained in a forward-looking statement or any forward-looking statement in its entirety and therefore disclaim any resulting liability for potentially related damages.

All forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary statement.

2

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	For the three months ended March 31,
(in millions, except share/per share amounts)	2021		2020
Operating Revenues:
Gas sales	$	464	$	248
Oil sales	81		52
NGL sales	173		50
Marketing	352		239
Other	2		3
	1,072		592
Operating Costs and Expenses:
Marketing purchases	356		248
Operating expenses	250		193
General and administrative expenses	38		26
Montage merger-related expenses	1		—
Restructuring charges	6		10
Depreciation, depletion and amortization	96		113
Impairments	—		1,479
Taxes, other than income taxes	24		13
	771		2,082
Operating Income (Loss)	301		(1,490)
Interest Expense:
Interest on debt	50		40
Other interest charges	3		2
Interest capitalized	(22)		(23)
	31		19
Gain (Loss) on Derivatives	(191)		339
Gain on Early Extinguishment of Debt	—		28
Other Income, Net	1		1
Income (Loss) Before Income Taxes	80		(1,141)
Provision (Benefit) for Income Taxes:
Current	—		(2)
Deferred	—		408
	—		406
Net Income (Loss)	$	80	$	(1,547)
Earnings (Loss) Per Common Share:
Basic	$	0.12	$	(2.86)
Diluted	$	0.12	$	(2.86)
Weighted Average Common Shares Outstanding:
Basic	675,385,145		540,308,491
Diluted	679,867,825		540,308,491

The accompanying notes are an integral part of these consolidated financial statements.

3

SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

	For the three months ended March 31,
(in millions)	2021		2020
Net income (loss)	$	80	$	(1,547)
Change in value of pension and other postretirement liabilities:
Amortization of prior service cost and net loss included in net periodic pension cost (1)	—		—
Comprehensive income (loss)	$	80	$	(1,547)

(1)The amortization of prior service costs and net loss along with corresponding tax benefits for the three months ended March 31, 2021 and March 31, 2020 were immaterial.

The accompanying notes are an integral part of these consolidated financial statements.

4

SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	March 31, 2021		December 31, 2020
ASSETS	(in millions)
Current assets:
Cash and cash equivalents	$	4	$	13
Accounts receivable, net	400		368
Derivative assets	157		241
Other current assets	41		49
Total current assets	602		671
Natural gas and oil properties, using the full cost method, including $1,488 million as of March 31, 2021 and $1,472 million as of December 31, 2020 excluded from amortization	27,532		27,261
Other	493		523
Less: Accumulated depreciation, depletion and amortization	(23,741)		(23,673)
Total property and equipment, net	4,284		4,111
Operating lease assets	155		163
Deferred tax assets	—		—
Other long-term assets	206		215
Total long-term assets	361		378
TOTAL ASSETS	$	5,247	$	5,160
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	207	$	—
Accounts payable	639		573
Taxes payable	67		74
Interest payable	55		58
Derivative liabilities	338		245
Current operating lease liabilities	41		42
Other current liabilities	23		20
Total current liabilities	1,370		1,012
Long-term debt	2,812		3,150
Long-term operating lease liabilities	111		117
Long-term derivative liabilities	168		183
Pension and other postretirement liabilities	40		45
Other long-term liabilities	160		156
Total long-term liabilities	3,291		3,651
Commitments and contingencies (Note 12)
Equity:
Common stock, $0.01 par value; 1,250,000,000 shares authorized; issued 721,195,122 shares as of March 31, 2021 and 718,795,700 shares as of December 31, 2020	7		7
Additional paid-in capital	5,102		5,093
Accumulated deficit	(4,283)		(4,363)
Accumulated other comprehensive loss	(38)		(38)
Common stock in treasury, 44,353,224 shares as of March 31, 2021 and December 31, 2020	(202)		(202)
Total equity	586		497
TOTAL LIABILITIES AND EQUITY	$	5,247	$	5,160

The accompanying notes are an integral part of these consolidated financial statements.

5

SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	For the three months ended March 31,
(in millions)	2021		2020
Cash Flows From Operating Activities:
Net income (loss)	$	80	$	(1,547)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization	96		113
Amortization of debt issuance costs	2		1
Impairments	—		1,479
Deferred income taxes	—		408
(Gain) loss on derivatives, unsettled	169		(246)
Stock-based compensation	—		1
Gain on early extinguishment of debt	—		(28)
Change in assets and liabilities:
Accounts receivable	(33)		53
Accounts payable	33		(86)
Taxes payable	(8)		(6)
Interest payable	(2)		1
Inventories	9		8
Other assets and liabilities	1		9
Net cash provided by operating activities	347		160
Cash Flows From Investing Activities:
Capital investments	(227)		(228)
Proceeds from sale of property and equipment	1		—
Other	(1)		—
Net cash used in investing activities	(227)		(228)
Cash Flows From Financing Activities:
Payments on long-term debt	—		(52)
Payments on revolving credit facility	(923)		(500)
Borrowings under revolving credit facility	790		615
Change in bank drafts outstanding	7		5
Cash paid for tax withholding	(3)		—
Net cash provided by (used in) financing activities	(129)		68
Decrease in cash and cash equivalents	(9)		—
Cash and cash equivalents at beginning of year	13		5
Cash and cash equivalents at end of period	$	4	$	5

The accompanying notes are an integral part of these consolidated financial statements.

6

SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Unaudited)

	Common Stock			Additional Paid-In Capital		Accumulated Deficit		Accumulated Other Comprehensive Income (Loss)		Common Stock in Treasury			Total
	Shares Issued	Amount								Shares	Amount
	(in millions, except share amounts)
Balance at December 31, 2020	718,795,700	$	7	$	5,093	$	(4,363)	$	(38)	44,353,224	$	(202)	$	497
Comprehensive income:
Net income	—	—		—		80		—		—	—		80
Other comprehensive income	—	—		—		—		—		—	—		—
Total comprehensive income	—	—		—		—		—		—	—		80
Stock-based compensation	—	—		—		—		—		—	—		—
Issuance of restricted stock	10,067	—		—		—		—		—	—		—
Cancellation of restricted stock	(405)	—		—		—		—		—	—		—
Restricted units granted	2,136,882	—		8		—		—		—	—		8
Performance units vested	1,001,505	—		4		—		—		—	—		4
Tax withholding – stock compensation	(748,627)	—		(3)		—		—		—	—		(3)
Balance at March 31, 2021	721,195,122	$	7	$	5,102	$	(4,283)	$	(38)	44,353,224	$	(202)	$	586

	Common Stock			Additional Paid-In Capital		Accumulated Deficit		Accumulated Other Comprehensive Income (Loss)		Common Stock in Treasury			Total
	Shares Issued	Amount								Shares	Amount
	(in millions, except share amounts)
Balance at December 31, 2019	585,555,923	$	6	$	4,726	$	(1,251)	$	(33)	44,353,224	$	(202)	$	3,246
Comprehensive income:
Net loss	—	—		—		(1,547)		—		—	—		(1,547)
Other comprehensive income	—	—		—		—		—		—	—		—
Total comprehensive loss	—	—		—		—		—		—	—		(1,547)
Stock-based compensation	—	—		1		—		—		—	—		1
Issuance of restricted stock	12,397	—		—		—		—		—	—		—
Cancellation of restricted stock	(167,130)	—		—		—		—		—	—		—
Treasury stock	—	—		—		—		—		—	—		—
Restricted units granted	1,005,976	—		1		—		—		—	—		1
Tax withholding – stock compensation	(383,731)	—		—		—		—		—	—		—
Balance at March 31, 2020	586,023,435	$	6	$	4,728	$	(2,798)	$	(33)	44,353,224	$	(202)	$	1,701

The accompanying notes are an integral part of these consolidated financial statements.

7

SOUTHWESTERN ENERGY COMPANY AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(1) BASIS OF PRESENTATION

Southwestern Energy Company (including its subsidiaries, collectively “Southwestern” or the “Company”) is an independent energy company engaged in natural gas, oil and NGL exploration, development and production (“E&P”). The Company is also focused on creating and capturing additional value through its marketing business (“Marketing”), which was previously referred to as “Midstream” when it included the operation of gathering systems. Southwestern conducts most of its business through subsidiaries and operates principally in two segments: E&P and Marketing.

E&P. Southwestern’s primary business is the exploration for and production of natural gas, oil and NGLs, with ongoing operations focused on the development of unconventional natural gas and oil reservoirs located in Pennsylvania, West Virginia and Ohio. The Company’s operations in northeast Pennsylvania, herein referred to as “Northeast Appalachia,” are primarily focused on the unconventional natural gas reservoir known as the Marcellus Shale. Operations in West Virginia, Ohio and southwest Pennsylvania, herein referred to as “Southwest Appalachia,” are focused on the Marcellus Shale, the Utica and the Upper Devonian unconventional natural gas and oil reservoirs. Collectively, Southwestern refers to its properties located in Pennsylvania, Ohio and West Virginia as “Appalachia.” The Company also operates drilling rigs located in Appalachia, and provides certain oilfield products and services, principally serving the Company’s E&P activities through vertical integration.

Marketing. Southwestern’s marketing activities capture opportunities that arise through the marketing and transportation of natural gas, oil and NGLs primarily produced in its E&P operations.

The accompanying consolidated financial statements were prepared using accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission.  Certain information relating to the Company’s organization and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been appropriately condensed or omitted in this Quarterly Report.  The comparability of certain 2021 amounts to prior periods could be impacted as a result of the Merger (as defined below) with Montage Resources (“Montage”) in November 2020. The Company believes the disclosures made are adequate to make the information presented not misleading.

The consolidated financial statements contained in this report include all normal and recurring material adjustments that, in the opinion of management, are necessary for a fair statement of the financial position, results of operations and cash flows for the interim periods presented herein.  It is recommended that these consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (“2020 Annual Report”).

The Company’s significant accounting policies, which have been reviewed and approved by the Audit Committee of the Company’s Board of Directors, are summarized in Note 1 in the Notes to the Consolidated Financial Statements included in the Company’s 2020 Annual Report.

(2) ACQUISITION

Montage Resources Merger

On August 12, 2020, Southwestern entered into an Agreement and Plan of Merger (the “Agreement and Plan of Merger”) with Montage whereby Montage would merge with and into Southwestern, with Southwestern continuing as the surviving company (the "Merger"). On November 12, 2020, Montage’s stockholders voted to approve the Merger and it was made effective on November 13, 2020. The Merger added to Southwestern’s oil and gas portfolio in Appalachia.

In exchange for each share of Montage common stock, Montage stockholders received 1.8656 shares of Southwestern common stock, plus cash in lieu of any fractional share of Southwestern common stock that otherwise would have been issued, based on the average price of $3.05 per share of Southwestern common stock on the NYSE on November 13, 2020. Following the closing of the Merger, Southwestern's existing shareholders and Montage's existing shareholders owned approximately 90% and 10%, respectively, of the outstanding shares of the combined company.

In anticipation of the Merger, in August 2020 Southwestern issued $350 million of new senior unsecured notes and 63,250,000 shares of common stock for $152 million after deducting underwriting discounts and offering expenses. The Company used the net proceeds from the debt and common stock offerings and borrowings under its revolving credit facility to fund a redemption of $510 million aggregate principal amount of Montage's outstanding 8.875% senior notes due 2023 (the "Montage Notes") and related accrued interest in connection with the closing of the Merger. See Note 7 and Note 11 for additional information.

8

The Merger constituted a business combination and was accounted for using the acquisition method of accounting. The following table presents the fair value of consideration transferred to Montage stockholders as a result of the Merger:

(in millions, except share, per share amounts)	As of November 13, 2020
Shares of Southwestern common stock issued in respect of outstanding Montage common stock	67,311,166
Shares of Southwestern common stock issued in respect of Montage stock-based awards	2,429,682
	69,740,848
NYSE closing price per share of Southwestern common shares on November 13, 2020	$	3.05
Total consideration (fair value of Southwestern common shares issued)	$	213
Increase in Southwestern common stock ($0.01 par value per share)	1
Increase in Southwestern additional paid-in capital	$	212

The assets acquired and liabilities assumed were recorded at their preliminary estimated fair values at the date of the Merger. The following table sets forth the fair value of the assets acquired and liabilities assumed as of the acquisition date. Although the purchase price allocation is substantially complete as of the date of this filing, there may be further adjustments to the Company’s natural gas and oil properties as the studies necessary to determine the fair value are finalized. These amounts will be finalized no later than one year from the acquisition date. For the three months ended March 31, 2021 there were no changes to the allocation presented in the 2020 Form 10-K.

(in millions)	As of November 13, 2020
Consideration:
Fair value of Southwestern’s stock issued on November 13, 2020	$	213
Fair Value of Assets Acquired:
Cash and cash equivalents	3
Accounts receivable	73
Other current assets	1
Commodity derivative assets	11
Evaluated oil and gas properties	1,012
Unevaluated oil and gas properties	90
Other property, plant and equipment	28
Other long-term assets	26
Total assets acquired	1,244
Fair Value of Liabilities Assumed:
Accounts payable	145
Other current liabilities	49
Derivative liabilities	70
Revolving credit facility	200
Senior unsecured notes	522
Asset retirement obligations	28
Other noncurrent liabilities	17
Total liabilities assumed	1,031
Net Assets Acquired and Liabilities Assumed	$	213

For the three months ended March 31, 2021, revenues and operating income associated with the operations acquired through the Merger totaled $130 million and $61 million, respectively.

The following table presents selected unaudited pro forma condensed financial information for the three months ended March 31, 2020 as if the Merger had occurred on January 1, 2019:

(in millions, except per share amounts)	Pro forma results for the three months ended March 31, 2020
Revenues	$	725
Net income (loss) attributable to common stock	$	(1,498)

9

The unaudited pro forma information is not necessarily indicative of the operating results that would have occurred had the Merger been completed at January 1, 2019, nor is it necessarily indicative of future operating results of the combined entity. The unaudited pro forma information gives effect to the Merger and related equity and debt issuances along with the use of proceeds therefrom as if they had occurred on January 1, 2019. The unaudited pro forma information for 2020 is a result of combining the statements of operations of Southwestern with the pre-Merger results of Montage from January 1, 2020, and 2019 and included adjustments for revenues and direct expenses. The pro forma results exclude any cost savings anticipated as a result of the Merger and the impact of any Merger-related costs. The pro forma results include adjustments to DD&A (depreciation, depletion and amortization) based on the purchase price allocated to property, plant, and equipment and the estimated useful lives as well as adjustments to interest expense. Interest expense was adjusted to reflect the retirement of the Montage senior notes, the Montage credit facility, all related accrued interest and the associated decrease in amortization of issuance costs related to the Montage notes and revolving line of credit. This decrease was partially offset by increases in interest on debt associated with the issuance of $350 million in new 8.375% Senior Notes due 2028 related to the Southwestern debt offering and borrowings under Southwestern’s credit facility used to pay off the Montage notes, Montage credit facility and related accrued interest. Management believes the estimates and assumptions are reasonable, and the relative effects of the Merger are properly reflected.

Montage Merger-Related Expenses

For the three months ended March 31, 2021, the Company incurred $1 million in Merger-related expenses primarily related to one-time severance costs and the accelerated vesting of certain Montage share-based awards, based on the terms of the Agreement and Plan of Merger, for former Montage employees that continued to assist with the transition into 2021.

(3) RESTRUCTURING CHARGES

On February 24, 2021, the Company notified employees of a workforce reduction plan as part of an ongoing strategic effort to reposition its portfolio, optimize operational performance and improve margins. Affected employees were offered a severance package, which included a one-time payment depending on length of service and, if applicable, the current value of unvested long-term incentive awards that were forfeited. These costs were recognized as restructuring charges for the three months ended March 31, 2021, and were substantially complete by the end of the first quarter of 2021.

In February 2020, the Company notified employees of a workforce reduction plan as a result of a strategic realignment of the Company’s organizational structure. Affected employees were offered a severance package, which included a one-time payment depending on length of service and, if applicable, the current value of unvested long-term incentive awards that were forfeited. These costs were recognized as restructuring charges for the three months ended March 31, 2020, and were substantially complete by the end of the first quarter of 2020.

The following table presents a summary of the restructuring charges included in Operating Income (Loss) for the three months ended March 31, 2021 and 2020:

	For the three months ended March 31,
(in millions)	2021		2020
Severance (including payroll taxes) (1)	$	6	$	10

(1)Total restructuring charges were $6 million and $10 million for the Company’s E&P segment for the three months ended March 31, 2021 and March 31, 2020, respectively.

The following table presents a reconciliation of the liability associated with the Company’s restructuring activities at March 31, 2021, which is reflected in accounts payable on the consolidated balance sheet:

(in millions)
Liability at December 31, 2020	$	3
Additions	6
Distributions	(9)
Liability at March 31, 2021	$	—

10

(4) REVENUE RECOGNITION

Revenues from Contracts with Customers

Natural gas and liquids.  Natural gas, oil and NGL sales are recognized when control of the product is transferred to the customer at a designated delivery point.  The pricing provisions of the Company’s contracts are primarily tied to a market index with certain adjustments based on factors such as delivery, quality of the product and prevailing supply and demand conditions in the geographic areas in which the Company operates.  Under the Company’s sales contracts, the delivery of each unit of natural gas, oil and NGLs represents a separate performance obligation, and revenue is recognized at the point in time when the performance obligations are fulfilled.  There is no significant financing component to the Company’s revenues as payment terms are typically within 30 to 60 days of control transfer.  Furthermore, consideration from a customer corresponds directly with the value to the customer of the Company’s performance completed to date.  As a result, the Company recognizes revenue in the amount for which the Company has a right to invoice and has not disclosed information regarding its remaining performance obligations.

The Company records revenue from its natural gas and liquids production in the amount of its net revenue interest in sales from its properties. Accordingly, natural gas and liquid sales are not recognized for deliveries in excess of the Company’s net revenue interest, while natural gas and liquid sales are recognized for any under-delivered volumes.  Production imbalances are generally recorded as receivables and payables and not contract assets or contract liabilities as the imbalances are between the Company and other working interest owners, not the end customer.

Marketing.  The Company, through its marketing affiliate, markets natural gas, oil and NGLs for its affiliated E&P company as well as other joint interest owners that choose to market with the Company.  In addition, the Company markets some products purchased from third parties.  Marketing revenues for natural gas, oil and NGL sales are recognized when control of the product is transferred to the customer at a designated delivery point.  The pricing provisions of the Company’s contracts are primarily tied to market indices with certain adjustments based on factors such as delivery, quality of the product and prevailing supply and demand conditions.  Under the Company’s marketing contracts, the delivery of each unit of natural gas, oil and NGLs represents a separate performance obligation, and revenue is recognized at the point in time when the performance obligations are fulfilled.  Customers are invoiced and revenues are recorded each month as natural gas, oil and NGLs are delivered, and payment terms are typically within 30 to 60 days of control transfer.  Furthermore, consideration from a customer corresponds directly with the value to the customer of the Company’s performance completed to date.  As a result, the Company recognizes revenue in the amount for which the Company has a right to invoice and has not disclosed information regarding its remaining performance obligations.

Disaggregation of Revenues

The Company presents a disaggregation of E&P revenues by product on the consolidated statements of operations net of intersegment revenues.  The following table reconciles operating revenues as presented on the consolidated statements of operations to the operating revenues by segment:

(in millions)	E&P		Marketing		Intersegment Revenues		Total
Three months ended March 31, 2021
Gas sales	$	451	$	—	$	13	$	464
Oil sales	80		—		1		81
NGL sales	173		—		—		173
Marketing	—		996		(644)		352
Other (1)	1		1		—		2
Total	$	705	$	997	$	(630)	$	1,072
Three months ended March 31, 2020
Gas sales	$	239	$	—	$	9	$	248
Oil sales	52		—		—		52
NGL sales	50		—		—		50
Marketing	—		548		(309)		239
Other (2)	3		—		—		3
Total	$	344	$	548	$	(300)	$	592

(1)For the three months ended March 31, 2021, other E&P revenues consists primarily of gains on purchaser imbalances associated with certain NGLs and other Marketing revenues consists primarily of sales of gas from storage.

(2)For the three months ended March 31, 2020, other E&P revenues consists primarily of gains on purchaser imbalances associated with certain NGLs.

11

Associated E&P revenues are also disaggregated for analysis on a geographic basis by the core areas in which the Company operates, which are in Pennsylvania, West Virginia and Ohio.

	For the three months ended March 31,
(in millions)	2021		2020
Northeast Appalachia	$	263	$	195
Southwest Appalachia	441		149
Other	1		—
Total	$	705	$	344

Receivables from Contracts with Customers

The following table reconciles the Company’s receivables from contracts with customers to consolidated accounts receivable as presented on the consolidated balance sheet:

(in millions)	March 31, 2021		December 31, 2020
Receivables from contracts with customers	$	381	$	350
Other accounts receivable	19		18
Total accounts receivable	$	400	$	368

Amounts recognized against the Company’s allowance for doubtful accounts related to receivables arising from contracts with customers were immaterial for the three months ended March 31, 2021 and 2020.  The Company has no contract assets or contract liabilities associated with its revenues from contracts with customers.

(5) CASH AND CASH EQUIVALENTS

The following table presents a summary of cash and cash equivalents as of March 31, 2021 and December 31, 2020:

(in millions)	March 31, 2021		December 31, 2020
Cash	$	4	$	13
Marketable securities (1)	—		—
Total	$	4	$	13

(1)Typically consists of government stable value money market funds.

(6) NATURAL GAS AND OIL PROPERTIES

The Company utilizes the full cost method of accounting for costs related to the exploration, development and acquisition of natural gas and oil properties.  Under this method, all such costs (productive and nonproductive), including salaries, benefits and other internal costs directly attributable to these activities, are capitalized on a country-by-country basis and amortized over the estimated lives of the properties using the units-of-production method.  These capitalized costs are subject to a ceiling test that limits such pooled costs, net of applicable deferred taxes, to the aggregate of the present value of future net revenues attributable to proved natural gas, oil and NGL reserves discounted at 10% (standardized measure).  Any costs in excess of the ceiling are written off as a non-cash expense.  The expense may not be reversed in future periods, even though higher natural gas, oil and NGL prices may subsequently increase the ceiling.  Companies using the full cost method are required to use the average quoted price from the first day of each month from the previous 12 months, including the impact of derivatives designated for hedge accounting, to calculate the ceiling value of their reserves. The Company had no hedge positions that were designated for hedge accounting as of March 31, 2021. Prices used to calculate the ceiling value of reserves were as follows:

	March 31, 2021		March 31, 2020
Natural gas (per MMBtu)	$	2.16	$	2.30
Oil (per Bbl)	$	40.01	$	55.77
NGLs (per Bbl)	$	13.57	$	9.96

Using the average quoted prices above, adjusted for market differentials, the Company’s net book value of its United States natural gas and oil properties did not exceed the ceiling amount at March 31, 2021, and the Company had no derivative positions that were designated for hedge accounting as of March 31, 2021. Decreases in market prices as well as changes in production rates, levels of reserves, evaluation of costs excluded from amortization, future development costs and production costs could result in future ceiling test impairments.

12

No impairment expense was recorded for the three months ended March 31, 2021 in relation to the recently acquired Montage natural gas and oil properties. These properties were recorded at fair value as of November 13, 2020, in accordance with Accounting Standards Codification (“ASC”) Topic 820 – Fair Value Measurement. In the fourth quarter of 2020, pursuant to SEC guidance, the Company determined that the fair value of the properties acquired at the closing of the Merger clearly exceeded the related full-cost ceiling limitation beyond a reasonable doubt and received a waiver from the SEC to exclude the properties acquired in the Merger from the ceiling test calculation. This waiver was granted for all reporting periods through and including the quarter ending September 30, 2021, as long as the Company can continue to demonstrate that the fair value of properties acquired clearly exceeds the full cost ceiling limitation beyond a reasonable doubt in each reporting period. As part of the waiver received from the SEC, the Company is required to disclose what the full cost ceiling test impairment amounts for all periods presented in each applicable quarterly and annual filing would have been if the waiver had not been granted. The fair value of the properties acquired in the Merger was based on forward strip natural gas and oil pricing existing at the date of the Merger, and the Company affirmed that there has not been a material decline to the fair value of these acquired assets since the Merger. The properties acquired in the Merger have an unamortized cost at March 31, 2021 of $1,102 million. Due to the improvement in commodity prices in the first quarter of 2021, no impairment charge would have been recorded for the three months ended March 31, 2021 had the recently acquired Montage natural gas and oil properties been included in the full cost ceiling test.

The Company’s net book value of its United States natural gas and oil properties exceeded the ceiling by $1.5 billion at March 31, 2020, resulting in a non-cash ceiling test impairment for the three months ended March 31, 2020.

(7) EARNINGS PER SHARE

Basic earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding during the reportable period.  The diluted earnings per share calculation adds to the weighted average number of common shares outstanding: the incremental shares that would have been outstanding assuming the exercise of dilutive stock options, the vesting of unvested restricted shares of common stock, restricted stock units and performance units.  An antidilutive impact is an increase in earnings per share or a reduction in net loss per share resulting from the conversion, exercise or contingent issuance of certain securities.

In August 2020, the Company completed an underwritten public offering of 63,250,000 shares of its common stock with an offering price to the public of $2.50 per share. Net proceeds after deducting underwriting discounts and offering expenses were approximately $152 million. See Note 2 for additional details regarding the Company’s use of proceeds from the equity offering.

The following table presents the computation of earnings per share for the three months ended March 31, 2021 and 2020:

	For the three months ended March 31,
(in millions, except share/per share amounts)	2021		2020
Net income (loss)	$	80	$	(1,547)
Number of common shares:
Weighted average outstanding	675,385,145		540,308,491
Issued upon assumed exercise of outstanding stock options	—		—
Effect of issuance of non-vested restricted common stock	870,541		—
Effect of issuance of non-vested restricted units	804,944		—
Effect of issuance of non-vested performance units	2,807,195		—
Weighted average and potential dilutive outstanding	679,867,825		540,308,491
Earnings per common share
Basic	$	0.12	$	(2.86)
Diluted	$	0.12	$	(2.86)

13

The following table presents the common stock shares equivalent excluded from the calculation of diluted earnings per share for the three months ended March 31, 2021 and 2020, as they would have had an antidilutive effect:

	For the three months ended March 31,
	2021	2020
Unexercised stock options	3,795,091	4,584,563
Unvested share-based payment	—	1,006,860
Restricted stock units	3,987,291	1,312,293
Performance units	—	2,275,498
Total	7,782,382	9,179,214

(8) DERIVATIVES AND RISK MANAGEMENT

The Company is exposed to volatility in market prices and basis differentials for natural gas, oil and NGLs which impacts the predictability of its cash flows related to the sale of those commodities.  These risks are managed by the Company’s use of certain derivative financial instruments.  As of March 31, 2021, the Company’s derivative financial instruments consisted of fixed price swaps, two-way costless collars, three-way costless collars, basis swaps, call options, swaptions and interest rate swaps.  A description of the Company’s derivative financial instruments is provided below:

Fixed price swaps	If the Company sells a fixed price swap, the Company receives a fixed price for the contract and pays a floating market price to the counterparty.  If the Company purchases a fixed price swap, the Company receives a floating market price for the contract and pays a fixed price to the counterparty.
Two-way costless collars	Arrangements that contain a fixed floor price (“purchased put option”) and a fixed ceiling price (“sold call option”) based on an index price which, in aggregate, have no net cost.  At the contract settlement date, (1) if the index price is higher than the ceiling price, the Company pays the counterparty the difference between the index price and ceiling price, (2) if the index price is between the floor and ceiling prices, no payments are due from either party, and (3) if the index price is below the floor price, the Company will receive the difference between the floor price and the index price.
Three-way costless collars	Arrangements that contain a purchased put option, a sold call option and a sold put option based on an index price that, in aggregate, have no net cost.  At the contract settlement date, (1) if the index price is higher than the sold call strike price, the Company pays the counterparty the difference between the index price and sold call strike price, (2) if the index price is between the purchased put strike price and the sold call strike price, no payments are due from either party, (3) if the index price is between the sold put strike price and the purchased put strike price, the Company will receive the difference between the purchased put strike price and the index price, and (4) if the index price is below the sold put strike price, the Company will receive the difference between the purchased put strike price and the sold put strike price.
Basis swaps	Arrangements that guarantee a price differential for natural gas from a specified delivery point.  If the Company sells a basis swap, the Company receives a payment from the counterparty if the price differential is greater than the stated terms of the contract and pays the counterparty if the price differential is less than the stated terms of the contract.  If the Company purchases a basis swap, the Company pays the counterparty if the price differential is greater than the stated terms of the contract and receives a payment from the counterparty if the price differential is less than the stated terms of the contract.

14

Options (Calls and Puts)	The Company purchases and sells options in exchange for premiums.  If the Company purchases a call option, the Company receives from the counterparty the excess (if any) of the market price over the strike price of the call option at the time of settlement, but if the market price is below the call’s strike price, no payment is due from either party.  If the Company sells a call option, the Company pays the counterparty the excess (if any) of the market price over the strike price of the call option at the time of settlement, but if the market price is below the call’s strike price, no payment is due from either party. If the Company purchases a put option, the Company receives from the counterparty the excess (if any) of the strike price over the market price of the put option at the time of settlement, but if the market price is above the put’s strike price, no payment is due from either party. If the Company sells a put option, the Company pays the counterparty the excess (if any) of the strike price over the market price of the put option at the time of settlement, but if the market price is above the put’s strike price, no payment is due from either party.
Swaptions	Instruments that refer to an option to enter into a fixed price swap. In exchange for an option premium, the purchaser gains the right but not the obligation to enter a specified swap agreement with the issuer for specified future dates. If the Company sells a swaption, the counterparty has the right to enter into a fixed price swap wherein the Company receives a fixed price for the contract and pays a floating market price to the counterparty. If the Company purchases a swaption, the Company has the right to enter into a fixed price swap wherein the Company receives a floating market price for the contract and pays a fixed price to the counterparty.
Interest rate swaps	Interest rate swaps are used to fix or float interest rates on existing or anticipated indebtedness.  The purpose of these instruments is to manage the Company’s existing or anticipated exposure to unfavorable interest rate changes.

The Company contracts with counterparties for its derivative instruments that it believes are creditworthy at the time the transactions are entered into, and the Company actively monitors the credit ratings and credit default swap rates of these counterparties where applicable.  However, there can be no assurance that a counterparty will be able to meet its obligations to the Company.  The fair value of the Company’s derivative assets and liabilities includes a non-performance risk factor. See Note 10 for additional details regarding the Company’s fair value measurements of its derivative positions. The Company presents its derivative positions on a gross basis and does not net the asset and liability positions.

15

The following tables provide information about the Company’s financial instruments that are sensitive to changes in commodity prices and that are used to protect the Company’s exposure. None of the financial instruments below are designated for hedge accounting treatment.  The tables present the notional amount, the weighted average contract prices and the fair value by expected maturity dates as of March 31, 2021:

Financial Protection on Production
		Weighted Average Price per MMBtu
	Volume (Bcf)	Swaps		Sold Puts		Purchased Puts		Sold Calls		Basis Differential		Fair Value at March 31, 2021 (in millions)
Natural Gas
2021
Fixed price swaps	176	$	2.79	$	—	$	—	$	—	$	—	$	14
Two-way costless collars	195	—		—		2.57		2.93		—		1
Three-way costless collars	218	—		2.17		2.50		2.84		—		(23)
Total	589											$	(8)
2022
Fixed price swaps	112	$	2.68	$	—	$	—	$	—	$	—	$	(2)
Two-way costless collars	63	—		—		2.52		3.03		—		(3)
Three-way costless collars	278	—		2.06		2.50		2.97		—		(13)
Total	453											$	(18)
2023
Three-way costless collars	103	$	—	$	2.05	$	2.46	$	3.01	$	—	$	(4)
Basis Swaps
2021	233	$	—	$	—	$	—	$	—	$	(0.49)	$	39
2022	220	—		—		—		—		(0.44)		24
2023	119	—		—		—		—		(0.56)		4
2024	24	—		—		—		—		(0.64)		1
2025	9	—		—		—		—		(0.64)		—
Total	605											$	68

16

	Volume (MBbls)	Weighted Average Strike Price per Bbl								Fair Value at March 31, 2021 (in millions)
		Swaps		Sold Puts		Purchased Puts		Sold Calls
Oil
2021
Fixed price swaps	3,272	$	49.27	$	—	$	—	$	—	$	(29)
Two-way costless collars	156	—		—		37.79		45.73		(2)
Three-way costless collars	1,498	—		37.86		47.70		53.10		(10)
Total	4,926									$	(41)
2022
Fixed price swaps	1,719	$	48.54	$	—	$	—	$	—	$	(10)
Three-way costless collars	1,380	—		39.89		50.23		57.05		(4)
Total	3,099									$	(14)
2023
Three-way costless collars	1,268	$	—	$	33.97	$	45.51	$	56.12	$	(4)
Ethane
2021
Fixed price swaps	4,429	$	7.17	$	—	$	—	$	—	$	(11)
Two-way costless collars	440	—		—		7.14		10.40		—
Total	4,869									$	(11)
2022
Fixed price swaps	1,758	$	8.68	$	—	$	—	$	—	$	(1)
Two-way costless collars	135	—		—		7.56		9.66		—
Total	1,893									$	(1)
Propane
2021
Fixed price swaps	5,443	$	20.84	$	—	$	—	$	—	$	(69)
2022
Fixed price swaps	2,723	$	21.83	$	—	$	—	$	—	$	(14)
Three-way costless collars	305	—		16.80		21.00		31.92		(1)
Total	3,028									(15)
Normal Butane
2021
Fixed price swaps	1,568	$	25.30	$	—	$	—	$	—	$	(19)
2022
Fixed price swaps	888	$	24.47	$	—	$	—	$	—	$	(5)
Natural Gasoline
2021
Fixed price swaps	1,513	$	37.91	$	—	$	—	$	—	$	(27)
2022
Fixed price swaps	857	$	40.48	$	—	$	—	$	—	$	(8)

17

Other Derivative Contracts
	Volume (Bcf)	Weighted Average Strike Price per MMBtu		Fair Value at March 31, 2021 (in millions)
Call Options – Natural Gas (Net)
2021	57	$	3.19	$	(4)
2022	77	3.00		(16)
2023	46	2.94		(10)
2024	9	3.00		(3)
Total	189			$	(33)
Put Options – Natural Gas
2021	14	$	2.00	$	—
2022	5	2.00		(1)
Total	19			$	(1)

	Volume (MBbls)	Weighted Average Strike Price per Bbl		Fair Value at March 31, 2021 (in millions)
Call Options – Oil
2021	171	$	60.00	$	(1)

	Volume (Bcf)	Weighted Average Strike Price per MMBtu		Fair Value at March 31, 2021 (in millions)
Swaptions – Natural Gas
2021 (1)	18	$	3.00	$	(1)

(1)The Company has sold swaptions with an underlying tenor of January 2022 to December 2022, with an exercise date of December 23, 2021.

	Volume (Bcf)	Weighted Average Strike Price per MMBtu				Fair Value at March 31, 2021 (in millions)
		Swaps		Basis Differential
Storage (1)
2021
Purchased fixed price swaps	2	$	2.34	$	—	$	—
Purchased basis swaps	1	—		(0.88)		—
Fixed price swaps	—	2.23		—		—
Basis swaps	—	—		(0.57)		—
Total	3					$	—
2022
Purchased fixed price swaps	—	$	2.14	$	—	$	—
Fixed price swaps	2	2.82		—		—
Basis swaps	1	—		(0.57)		—
Total	3					$	—

(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 and sold at a later date.

Purchased Fixed Price Swaps – Marketing (Natural Gas) (1)	Volume (Bcf)	Weighted Average Strike Price per MMBtu	Fair Value at March 31, 2021 (in millions)
2021	4	2.44	1

(1)The Company has entered into a limited number of derivatives to protect the value of certain long-term sales contracts.

At March 31, 2021, the net fair value of the Company’s financial instruments related to commodities was a $211 million liability and included a net reduction of the liability of less than $1 million related to non-performance risk. See Note 10 for additional details regarding the Company’s fair value measurements of its derivative positions.

As of March 31, 2021, the Company had no positions designated for hedge accounting treatment. Gains and losses on derivatives that are not designated for hedge accounting treatment, or do not meet hedge accounting requirements, are recorded

18

as a component of gain (loss) on derivatives on the consolidated statements of operations. Accordingly, the gain (loss) on derivatives component of the statement of operations reflects the gain and losses on both settled and unsettled derivatives. Only the settled gains and losses are included in the Company’s realized commodity price calculations.

The balance sheet classification of the assets and liabilities related to derivative financial instruments (none of which are designated for hedge accounting treatment) is summarized below as of March 31, 2021 and December 31, 2020:

Derivative Assets
		Fair Value
(in millions)	Balance Sheet Classification	March 31, 2021		December 31, 2020
Derivatives not designated as hedging instruments:
Purchased fixed price swaps – natural gas	Derivative assets	$	1	$	1
Fixed price swaps – natural gas	Derivative assets	25		37
Fixed price swaps – oil	Derivative assets	—		13
Two-way costless collars – natural gas	Derivative assets	39		54
Three-way costless collars – natural gas	Derivative assets	39		57
Three-way costless collars – oil	Derivative assets	6		15
Basis swaps – natural gas	Derivative assets	46		60
Call options – natural gas	Derivative assets	1		4
Fixed price swaps – natural gas	Other long-term assets	—		7
Fixed price swaps – oil	Other long-term assets	—		2
Fixed price swaps – propane	Other long-term assets	1		—
Two-way costless collars – natural gas	Other long-term assets	2		20
Three-way costless collars – natural gas	Other long-term assets	82		87
Three-way costless collars – oil	Other long-term assets	14		15
Basis swaps – natural gas	Other long-term assets	39		15
Interest rate swaps	Other long-term assets	1		—
Total derivative assets		$	296	$	387

19

Derivative Liabilities
		Fair Value
(in millions)	Balance Sheet Classification	March 31, 2021		December 31, 2020
Derivatives not designated as hedging instruments:
Fixed price swaps – natural gas	Derivative liabilities	$	12	$	7
Fixed price swaps – oil	Derivative liabilities	32		12
Fixed price swaps – ethane	Derivative liabilities	11		10
Fixed price swaps – propane	Derivative liabilities	76		36
Fixed price swaps – normal butane	Derivative liabilities	21		8
Fixed price swaps – natural gasoline	Derivative liabilities	30		13
Two-way costless collars – natural gas	Derivative liabilities	39		43
Two-way costless collars – oil	Derivative liabilities	2		1
Three-way costless collars – natural gas	Derivative liabilities	73		82
Three-way costless collars – oil	Derivative liabilities	17		15
Basis swaps – natural gas	Derivative liabilities	9		3
Call options – natural gas	Derivative liabilities	13		12
Call options – oil	Derivative liabilities	1		—
Put options – natural gas	Derivative liabilities	1		1
Swaptions – natural gas	Derivative liabilities	1		2
Fixed price swaps – natural gas	Long-term derivative liabilities	1		3
Fixed price swaps – oil	Long-term derivative liabilities	7		2
Fixed price swaps – ethane	Long-term derivative liabilities	1		—
Fixed price swaps – propane	Long-term derivative liabilities	8		2
Fixed price swaps – normal butane	Long-term derivative liabilities	3		1
Fixed price swaps – natural gasoline	Long-term derivative liabilities	5		2
Two-way costless collars – natural gas	Long-term derivative liabilities	4		21
Three-way costless collars – natural gas	Long-term derivative liabilities	88		102
Three-way costless collars – oil	Long-term derivative liabilities	21		15
Three-way costless collars – propane	Long-term derivative liabilities	1		—
Basis swap – natural gas	Long-term derivative liabilities	8		7
Call options – natural gas	Long-term derivative liabilities	21		28
Total derivative liabilities		$	506	$	428

20

The following tables summarize the before-tax effect of the Company’s derivative instruments on the consolidated statements of operations for the three months ended March 31, 2021 and 2020:

Unsettled Gain (Loss) on Derivatives Recognized in Earnings
	Consolidated statement of Operations Classification of Gain (Loss) on Derivatives, Unsettled	For the three months ended March 31,
Derivative Instrument		2021			2020
		(in millions)
Purchased fixed price swaps – natural gas	Gain (Loss) on Derivatives	$	—		$	(1)
Purchased fixed price swaps – oil	Gain (Loss) on Derivatives	—			(5)
Fixed price swaps – natural gas	Gain (Loss) on Derivatives	(22)			103
Fixed price swaps – oil	Gain (Loss) on Derivatives	(40)			118
Fixed price swaps – ethane	Gain (Loss) on Derivatives	(2)			12
Fixed price swaps – propane	Gain (Loss) on Derivatives	(45)			36
Fixed price swaps – normal butane	Gain (Loss) on Derivatives	(15)			—
Fixed price swaps – natural gasoline	Gain (Loss) on Derivatives	(20)			—
Two-way costless collars – natural gas	Gain (Loss) on Derivatives	(12)			(4)
Two-way costless collars – oil	Gain (Loss) on Derivatives	(1)			19
Two-way costless collars – propane	Gain (Loss) on Derivatives	—			2
Three-way costless collars – natural gas	Gain (Loss) on Derivatives	—			(51)
Three-way costless collars – oil	Gain (Loss) on Derivatives	(18)			25
Three-way costless collars – propane	Gain (Loss) on Derivatives	(1)			—
Basis swaps – natural gas	Gain (Loss) on Derivatives	3			(1)
Call options – natural gas	Gain (Loss) on Derivatives	3			(5)
Call options – oil	Gain (Loss) on Derivatives	(1)			1
Swaptions – natural gas	Gain (Loss) on Derivatives	1			—
Purchased fixed price swap – natural gas storage	Gain (Loss) on Derivatives	—			(1)
Fixed price swap – natural gas storage	Gain (Loss) on Derivatives	—			(1)
Interest rate swaps	Gain (Loss) on Derivatives	1			(1)
Total gain (loss) on unsettled derivatives		$	(169)		$	246
Settled Gain (Loss) on Derivatives Recognized in Earnings (1)
	Consolidated statement of Operations Classification of Gain (Loss) on Derivatives, Settled	For the three months ended March 31,
Derivative Instrument		2021			2020
		(in millions)
Purchased fixed price swaps – natural gas	Gain (Loss) on Derivatives	$	—		$	(1)
Fixed price swaps – natural gas	Gain (Loss) on Derivatives	5			5
Fixed price swaps – oil	Gain (Loss) on Derivatives	(17)			9
Fixed price swaps – ethane	Gain (Loss) on Derivatives	(4)			6
Fixed price swaps – propane	Gain (Loss) on Derivatives	(30)			10
Fixed price swaps – normal butane	Gain (Loss) on Derivatives	(7)			—
Fixed price swaps – natural gasoline	Gain (Loss) on Derivatives	(9)			—
Two-way costless collars – natural gas	Gain (Loss) on Derivatives	2			6
Two-way costless collars – oil	Gain (Loss) on Derivatives	(1)			3
Two-way costless collars – propane	Gain (Loss) on Derivatives	—			1
Three-way costless collars – natural gas	Gain (Loss) on Derivatives	1			36
Three-way costless collars – oil	Gain (Loss) on Derivatives	(1)			1
Basis swaps – natural gas	Gain (Loss) on Derivatives	41			16
Put options – natural gas	Gain (Loss) on Derivatives	(2)		(2)	—
Fixed price swaps – natural gas storage	Gain (Loss) on Derivatives	—			1
Total gain (loss) on settled derivatives		$	(22)		$	93
Total gain (loss) on derivatives		$	(191)		$	339

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

21

(2)Includes $2 million amortization of premiums paid related to certain natural gas put options for the three months ended March 31, 2021 which is included in gain (loss) on derivatives on the consolidated statements of operations.

(9) RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Changes in accumulated other comprehensive income for the first three months of 2021 were related to the Company’s pension and other postretirement benefits. The following tables detail the components of accumulated other comprehensive income and the related tax effects for the three months ended March 31, 2021:

(in millions)	Pension and Other Postretirement		Foreign Currency		Total
Beginning balance December 31, 2020	$	(24)	$	(14)	$	(38)
Other comprehensive income before reclassifications	—		—		—
Amounts reclassified from other comprehensive income (1)	—		—		—
Net current-period other comprehensive income	—		—		—
Ending balance March 31, 2021	$	(24)	$	(14)	$	(38)

Details about Accumulated Other Comprehensive Income	Affected Line Item in the Consolidated Statement of Operations	Amount Reclassified from Accumulated Other Comprehensive Income
		For the three months ended March 31, 2021
		(in millions)
Pension and other postretirement:
Amortization of prior service cost and net gain (1)	Other Income, Net	$	—
	Provision (Benefit) for Income Taxes	—
	Net Income (Loss)	$	—
Total reclassifications for the period	Net Income (Loss)	$	—

(1) For the three months ended March 31, 2021, the amount reclassified from accumulated other comprehensive income was immaterial. See Note 14 for additional details regarding the Company’s pension and other postretirement benefit plans.

(10) FAIR VALUE MEASUREMENTS

Assets and liabilities measured at fair value on a recurring basis

The carrying amounts and estimated fair values of the Company’s financial instruments as of March 31, 2021 and December 31, 2020 were as follows:

	March 31, 2021				December 31, 2020
(in millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Cash and cash equivalents	$	4	$	4	$	13	$	13
2018 revolving credit facility due April 2024	567		567		700		700
Senior notes (1)	2,471		2,640		2,471		2,609
Derivative instruments, net	(210)		(210)		(41)		(41)

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

The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value.  As presented in the tables below, this hierarchy consists of three broad levels:

Level 1 valuations - Consist of unadjusted quoted prices in active markets for identical assets and liabilities and have the highest priority.

Level 2 valuations - Consist of quoted market information for the calculation of fair market value.

Level 3 valuations - Consist of internal estimates and have the lowest priority.

The carrying values of cash and cash equivalents, including marketable securities, accounts receivable, other current assets, accounts payable and other current liabilities on the consolidated balance sheets approximate fair value because of their short-term nature.  For debt and derivative instruments, the following methods and assumptions were used to estimate fair value:

Debt: The fair values of the Company’s senior notes are based on the market value of the Company’s publicly traded debt as determined based on the market prices of the Company’s senior notes. The fair value of the Company’s 4.10% Senior Notes

22

due March 2022 is considered to be a Level 2 measurement on the fair value hierarchy.  The fair values of the Company’s remaining senior notes are considered the be a Level 1 measurement. The carrying values of the borrowings under the Company’s revolving credit facility (to the extent utilized) approximates fair value because the interest rate is variable and reflective of market rates.  The Company considers the fair value of its revolving credit facility to be a Level 1 measurement on the fair value hierarchy.

Derivative Instruments: The Company measures the fair value of its derivative instruments based upon a pricing model that utilizes market-based inputs, including, but not limited to, the contractual price of the underlying position, current market prices, natural gas and liquids forward curves, discount rates such as the LIBOR curve for a similar duration of each outstanding position, volatility factors and non-performance risk. Non-performance risk considers the effect of the Company’s credit standing on the fair value of derivative liabilities and the effect of counterparty credit standing on the fair value of derivative assets. Both inputs to the model are based on published credit default swap rates and the duration of each outstanding derivative position. As of March 31, 2021 and December 31, 2020, the impact of non-performance risk on the fair value of the Company’s net derivative asset position was a decrease of the net liability of less than $1 million and $1 million, respectively.

The Company has classified its derivative instruments into levels depending upon the data utilized to determine their fair values.  The Company’s fixed price swaps (Level 2) are estimated using third-party discounted cash flow calculations using the New York Mercantile Exchange (“NYMEX”) futures index for natural gas and oil derivatives and Oil Price Information Service (“OPIS”) for ethane and propane derivatives. The Company utilizes discounted cash flow models for valuing its interest rate derivatives (Level 2). The net derivative values attributable to the Company’s interest rate derivative contracts as of December 31, 2020 are based on (i) the contracted notional amounts, (ii) active market-quoted London Interbank Offered Rate (“LIBOR”) yield curves and (iii) the applicable credit-adjusted risk-free rate yield curve.

The Company’s call options, two-way costless collars and three-way costless collars (Level 2) are valued using the Black-Scholes model, an industry standard option valuation model that takes into account inputs such as contract terms, including maturity, and market parameters, including assumptions of the NYMEX and OPIS futures index, interest rates, volatility and credit worthiness.  Inputs to the Black-Scholes model, including the volatility input, are obtained from a third-party pricing source, with independent verification of the most significant inputs on a monthly basis.  An increase (decrease) in volatility would result in an increase (decrease) in fair value measurement, respectively.

The Company’s basis swaps (Level 2) are estimated using third-party calculations based upon forward commodity price curves.

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

	March 31, 2021
	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	—		26		—		26
Two-way costless collars	—		41		—		41
Three-way costless collars	—		141		—		141
Basis swaps	—		85		—		85
Call options	—		1		—		1
Interest rate swap	—		1		—		1
Liabilities
Fixed price swaps	—		(207)		—		(207)
Two-way costless collars	—		(45)		—		(45)
Three-way costless collars	—		(200)		—		(200)
Basis swaps	—		(17)		—		(17)
Call options	—		(35)		—		(35)
Put options	—		(1)		—		(1)
Swaptions	—		(1)		—		(1)
Total (1)	$	—	$	(210)	$	—	$	(210)

(1)Includes a net reduction to the liability fair value of less than $1 million related to estimated nonperformance risk.

23

	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 (1)	$	—	$	(41)	$	—	$	(41)

(1)Includes a net reduction to the liability fair value of $1 million related to estimated nonperformance risk.

(11) DEBT

The components of debt as of March 31, 2021 and December 31, 2020 consisted of the following:

	March 31, 2021
(in millions)	Debt Instrument		Unamortized Issuance Expense			Unamortized Debt Discount		Total
Current portion of long-term debt:
4.10% Senior Notes due March 2022	$	207	$	—		$	—	$	207
Total current portion of long-term debt	$	207	$	—		$	—	$	207
Long-term debt:
Variable rate (2.09% at March 31, 2021) 2018 revolving credit facility due April 2024	$	567	$	—	(1)	$	—	$	567
4.95% Senior Notes due January 2025 (2)	856		(4)			(1)		851
7.50% Senior Notes due April 2026	618		(5)			—		613
7.75% Senior Notes due October 2027	440		(4)			—		436
8.375% Senior Notes due September 2028	350		(5)			—		345
Total long-term debt	$	2,831	$	(18)		$	(1)	$	2,812
Total debt	$	3,038	$	(18)		$	(1)	$	3,019
	December 31, 2020
(in millions)	Debt Instrument		Unamortized Issuance Expense			Unamortized Debt Discount		Total
Long-term debt:
Variable rate (2.11% at December 31, 2020) 2018 term loan facility due April 2024	$	700	$	—	(1)	$	—	$	700
4.10% Senior Notes due March 2022	207		—			—		207
4.95% Senior Notes due January 2025 (2)	856		(4)			(1)		851
7.50% Senior Notes due April 2026	618		(6)			—		612
7.75% Senior Notes due October 2027	440		(5)			—		435
8.375% Senior Notes due September 2028	350		(5)			—		345
Total long-term debt	$	3,171	$	(20)		$	(1)	$	3,150

24

(1)At March 31, 2021 and December 31, 2020, unamortized issuance expense of $11 million and $12 million, respectively, associated with the 2018 credit facility (as defined below) was classified as other long-term assets on the consolidated balance sheets.

(2)Effective in July 2018, the interest rate was 6.20% for the 2025 Notes, reflecting a net downgrade in the Company’s bond ratings since the initial offering. On April 7, 2020, S&P downgraded the Company’s bond rating to BB-, which had the effect of increasing the interest rate on the 2025 Notes to 6.45% following the July 23, 2020 interest payment date. The first coupon payment to the bondholders at the higher interest rate was paid in January 2021.

The following is a summary of scheduled debt maturities by year as of March 31, 2021:

(in millions)
2021	$	—
2022	207
2023	—
2024	567
2025	856
Thereafter	1,408
	$	3,038

(1)The Company’s current revolving credit facility matures in 2024.

Credit Facilities

2018 Revolving Credit Facility

In April 2018, the Company replaced its credit facility that was entered into in 2016 with a new revolving credit facility (the “2018 credit facility”) with a group of banks that, as amended, has a maturity date of April 2024.  The 2018 credit facility has an aggregate maximum revolving credit amount of $3.5 billion and, in March 2021, the banks participating in the 2018 credit facility reaffirmed the elected borrowing base and aggregate commitments to be $2.0 billion. The borrowing base is subject to redetermination at least twice a year, in April and October, and is secured by substantially all of the assets owned by the Company and its subsidiaries. The permitted lien provisions in certain senior note indentures currently limit liens securing indebtedness to the greater of $2.0 billion or 25% of adjusted consolidated net tangible assets.

The Company may utilize the 2018 credit facility in the form of loans and letters of credit. Loans under the 2018 credit facility are subject to varying rates of interest based on whether the loan is a Eurodollar loan or an alternate base rate loan.  Eurodollar loans bear interest at the Eurodollar rate, which is adjusted LIBOR for such interest period plus the applicable margin (as those terms are defined in the 2018 credit facility documentation).  The applicable margin for Eurodollar loans under the 2018 credit facility, as amended, ranges from 1.75% to 2.75% based on the Company’s utilization of the 2018 credit facility.  Alternate base rate loans bear interest at the alternate base rate plus the applicable margin.  The applicable margin for alternate base rate loans under the 2018 credit facility, as amended, ranges from 0.75% to 1.75% based on the Company’s utilization of the 2018 credit facility.

The 2018 credit facility contains customary representations and warranties and contains covenants including, among others, the following:

•a prohibition against incurring debt, subject to permitted exceptions;

•a restriction on creating liens on assets, subject to permitted exceptions; 

•restrictions on mergers and asset dispositions;

•restrictions on use of proceeds, investments, transactions with affiliates, or change of principal business; and

•maintenance of the following financial covenants, commencing with the fiscal quarter ending June 30, 2018:

1.Minimum current ratio of no less than 1.00 to 1.00, whereby current ratio is defined as the Company’s consolidated current assets (including unused commitments under the credit agreement, but excluding non-cash derivative assets) to consolidated current liabilities (excluding non-cash derivative obligations and current maturities of long-term debt).

2.Maximum total net leverage ratio of no greater than, with respect to each fiscal quarter ending on or after June 30, 2020, 4.00 to 1.00.  Total net leverage ratio is defined as total debt less cash on hand (up to the lesser of 10% of credit limit or $150 million) divided by consolidated EBITDAX for the last four consecutive quarters.  EBITDAX, as defined in the credit agreement governing the Company’s 2018 credit facility, excludes the effects of interest expense, depreciation, depletion and amortization, income tax, any non-cash impacts from impairments, certain non-cash hedging activities, stock-based compensation expense, non-cash gains or losses on asset sales, unamortized issuance cost, unamortized debt discount and certain restructuring costs. 

25

The 2018 credit facility contains customary events of default that include, among other things, the failure to comply with the financial covenants described above, non-payment of principal, interest or fees, violation of covenants, inaccuracy of representations and warranties, bankruptcy and insolvency events, material judgments and cross-defaults to material indebtedness.  If an event of default occurs and is continuing, all amounts outstanding under the 2018 credit facility may become immediately due and payable. As of March 31, 2021, the Company was in compliance with all of the covenants contained in the credit agreement governing the 2018 credit facility.

Each United States domestic subsidiary of the Company for which the Company owns 100% guarantees the 2018 credit facility.  Pursuant to requirements under the indentures governing its senior notes, each subsidiary that became a guarantor of the 2018 credit facility also became a guarantor of each of the Company’s senior notes.

As of March 31, 2021, the Company had $233 million in letters of credit and $567 million borrowings outstanding under the 2018 credit facility. The Company currently does not anticipate being required to supply a materially greater amount of letters of credit under its existing contracts.

The Company’s debt exposure to the anticipated transition from LIBOR in late 2021 is limited to the 2018 credit facility. Upon announcement by the administrator of LIBOR identifying a specific date for LIBOR cessation, the credit agreement governing the 2018 credit facility will be amended to reference an alternative rate as established by JP Morgan, as Administrative Agent, and the Company. The alternative rate will be based on the prevailing market convention and is expected to be the Secured Overnight Financing Rate (“SOFR”).

Senior Notes

In January 2015, the Company completed a public offering of $1.0 billion aggregate principal amount of its 4.95% senior notes due 2025 (the “2025 Notes”).  The interest rate on the 2025 Notes is determined based upon the public bond ratings from Moody’s and S&P.  Downgrades on the 2025 Notes from either rating agency increase interest costs by 25 basis points per downgrade level and upgrades decrease interest costs by 25 basis points per upgrade level, up to the stated coupon rate, on the following semi-annual bond interest payment.  Effective in July 2018, the interest rate for the 2025 Notes was 6.20%, reflecting a net downgrade in the Company’s bond ratings since the initial offering. On April 7, 2020, S&P downgraded the Company’s bond rating to BB-, which had the effect of increasing the interest rate on the 2025 Notes to 6.45% following the July 23, 2020 interest payment date. The first coupon payment to the 2025 Notes bondholders at the higher interest rate was paid in January 2021. In the event of future downgrades, the coupons for this series of notes have been capped at 6.95%.

In the first quarter of 2020, the Company repurchased $3 million of its 4.10% Senior Notes due 2022, $28 million of its 4.95% Senior Notes due 2025, $18 million of its 7.50% Senior Notes due 2026 and $31 million of its 7.75% Senior Notes due 2027 for $52 million, and recognized a $28 million gain on the extinguishment of debt.

In August 2020, the Company completed a public offering of $350 million aggregate principal amount of its 8.375% Senior Notes due 2028 (the “2028 Notes”), with net proceeds from the offering totaling approximately $345 million after underwriting discounts and offering expenses. The 2028 Notes were sold to the public at 100% of their face value. The net proceeds from the notes, in conjunction with the net proceeds from the August 2020 common stock offering and borrowings under the revolving credit facility, were utilized to fund a redemption of $510 million of Montage’s Notes in connection with the closing of the Merger.

26

(12) COMMITMENTS AND CONTINGENCIES

Operating Commitments and Contingencies

As of March 31, 2021, the Company’s contractual obligations for demand and similar charges under firm transportation and gathering agreements to guarantee access capacity on natural gas and liquids pipelines and gathering systems totaled approximately $8.4 billion, $436 million of which related to access capacity on future pipeline and gathering infrastructure projects that still require the granting of regulatory approvals and additional construction efforts.  The Company also had guarantee obligations of up to $908 million of that amount.  As of March 31, 2021, future payments under non-cancelable firm transportation and gathering agreements were as follows:

	Payments Due by Period
(in millions)	Total		Less than 1 Year		1 to 3 Years		3 to 5 Years		5 to 8 Years		More than 8 Years
Infrastructure currently in service	$	7,915	$	789	$	1,539	$	1,295	$	1,752	$	2,540
Pending regulatory approval and/or construction (1)	436		2		30		38		81		285
Total transportation charges	$	8,351	$	791	$	1,569	$	1,333	$	1,833	$	2,825

(1)Based on estimated in-service dates as of March 31, 2021.

Environmental Risk

The Company is subject to laws and regulations relating to the protection of the environment.  Environmental and cleanup related costs of a non-capital nature are accrued when it is both probable that a liability has been incurred and when the amount can be reasonably estimated.  Management believes any future remediation or other compliance related costs will not have a material effect on the financial position, results of operations or cash flows of the Company.

Litigation

The Company is subject to various litigation, claims and proceedings, most of which have arisen in the ordinary course of business, such as for alleged breaches of contract, miscalculation of royalties, employment matters, traffic accidents, pollution, contamination, encroachment on others’ property or nuisance. The Company accrues for litigation, claims and proceedings when a liability is both probable and the amount can be reasonably estimated. As of March 31, 2021, the Company does not currently have any material amounts accrued related to litigation matters. For any matters not accrued for, it is not possible at this time to estimate the amount of any additional loss, or range of loss, that is reasonably possible, but, based on the nature of the claims, management believes that current litigation, claims and proceedings, individually or in aggregate and after taking into account insurance, are not likely to have a material adverse impact on the Company’s financial position, results of operations or cash flows, for the period in which the effect of that outcome becomes reasonably estimable. Many of these matters are in early stages, so the allegations and the damage theories have not been fully developed, and are all subject to inherent uncertainties; therefore, management’s view may change in the future.

St. Lucie County Fire District Firefighters’ Pension Trust

On October 17, 2016, the St. Lucie County Fire District Firefighters’ Pension Trust filed a putative class action in the 61st District Court in Harris County, Texas, against the Company, certain of its former officers and current and former directors and the underwriters on behalf of itself and others that purchased certain depositary shares from the Company’s January 2015 equity offering, alleging material misstatements and omissions in the registration statement for that offering. The Company removed the case to federal court, but after a decision by the United States Supreme Court in an unrelated case that these types of cases are not subject to removal, the federal court remanded the case to the Texas state court. The Texas trial court denied the Company’s motion to dismiss, and in February 2020, the court of appeals declined to exercise discretion to reverse the trial court’s decision. The Company filed a petition to review the trial court’s decision with the Texas Supreme Court, and the Court requested a response from the plaintiff. The Court subsequently requested full briefing on the merits of the case. The Company carries insurance for the claims asserted against it and the officer and director defendants, and the carrier has accepted coverage. The Company denies all allegations and intends to continue to defend this case vigorously. The Company does not expect this case to have a material adverse effect on the results of operations, financial position or cash flows of the Company after taking insurance into account. Additionally, it is not possible at this time to estimate the amount of any additional loss, or range of loss, that is reasonably possible.

27

Indemnifications

The Company has provided certain indemnifications to various third parties, including in relation to asset and entity dispositions, securities offerings and other financings, and litigation, such as the St. Lucie County Fire District Firefighters’ Pension Trust case described above.  In the case of asset dispositions, these indemnifications typically relate to disputes, litigation or tax matters existing at the date of disposition. The Company likewise obtains indemnification for future matters when it sells assets, although there is no assurance the buyer will be capable of performing those obligations.  In the case of equity offerings, these indemnifications typically relate to claims asserted against underwriters in connection with an offering. No material liabilities have been recognized in connection with these indemnifications.

(13) INCOME TAXES

The Company’s effective tax rate was approximately 0% for the three months ended March 31, 2021. The effective tax rate for the three months ended March 31, 2021 related to the effects a valuation allowance against the Company’s U.S. deferred tax assets. A valuation allowance for deferred tax assets, including net operating losses, is recognized when it is more likely than not that some or all of the benefit from the deferred tax assets will not be realized.  To assess that likelihood, the Company uses estimates and judgment regarding future taxable income, and considers the tax consequences in the jurisdiction where such taxable income is generated, to determine whether a valuation allowance is required.  Such evidence can include current financial position, results of operations, both actual and forecasted, the reversal of deferred tax liabilities and tax planning strategies as well as current and forecasted business economics of the oil and gas industry.

In the first quarter of 2020, due to significant pricing declines and the material write-down of the carrying value of the Company’s natural gas and oil properties in addition to other negative evidence, the Company concluded that it was more likely than not that these deferred tax assets will not be realized and recorded a discrete tax expense of $408 million for the increase in its valuation allowance. The net change in valuation allowance is reflected as a component of income tax expense. The Company also retained a valuation allowance of $87 million related to net operating losses in jurisdictions in which it no longer operates. Management will continue to assess available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit the use of deferred tax assets. The amount of the deferred tax asset considered realizable, however, could be adjusted based on changes in subjective estimates of future taxable income or if objective negative evidence is no longer present.

The Company’s effective tax rate was approximately (36)% for the three months ended March 31, 2020. The effective tax rate for the three months ended March 31, 2020 was primarily the effect of recording the valuation allowance discussed above.

The Company adopted Accounting Standards Update No. 2019-12 (“ASU 2019-12”) in the current period. ASU 2019-12 addressed simplification to income tax accounting rules, such as removing a few exceptions to intraperiod allocation. There was no material impact to the financial statements as a result of this adoption.

(14) PENSION PLAN AND OTHER POSTRETIREMENT BENEFITS

The Company maintains defined pension and other postretirement benefit plans, which cover substantially all of the Company’s employees.  As part of ongoing effort to reduce costs, the Company elected to freeze its pension plan effective January 1, 2021. Employees that were participants in the pension plan prior to January 1, 2021 will continue to receive the interest component of the plan but will no longer receive the service component. Net periodic pension costs include the following components for the three months ended March 31, 2021 and 2020:

	Consolidated Statements of Operations Classification of Net Periodic Benefit Cost	For the three months ended March 31,
(in millions)		2021		2020
Service cost	General and administrative expenses	$	—	$	2
Interest cost	Other Income (Loss), Net	1		1
Expected return on plan assets	Other Income (Loss), Net	(1)		(1)
Net periodic benefit cost		$	—	$	2

The Company’s other postretirement benefit plan had a net periodic benefit cost of less than $1 million and $1 million for the three months ended March 31, 2021 and 2020, respectively.

As of March 31, 2021, the Company has contributed $5 million to the pension and other postretirement benefit plans and expects to contribute an additional $7 million to its pension plan during the remainder of 2021.  The Company recognized liabilities of $28 million and $13 million related to its pension and other postretirement benefits, respectively, as of March 31, 2021, compared to liabilities of $33 million and $13 million as of December 31, 2020, respectively.

28

The Company maintains a non-qualified deferred compensation supplemental retirement savings plan (“Non-Qualified Plan”) for certain key employees who may elect to defer and contribute a portion of their compensation, as permitted by the Non-Qualified Plan.  Shares of the Company’s common stock purchased under the terms of the Non-Qualified Plan are included in treasury stock and totaled 2,035 shares and 3,632 shares at March 31, 2021 and December 31, 2020, respectively.

(15) LONG-TERM INCENTIVE COMPENSATION

The Company’s long-term incentive compensation plans consist of a combination of stock-based awards that derive their value directly or indirectly from the Company’s common stock price, and cash-based awards that are fixed in amount but subject to meeting annual performance thresholds.

Stock-Based Compensation

The Company’s stock-based compensation is classified as either equity awards or liability awards in accordance with GAAP.  The fair value of an equity-classified award is determined at the grant date and is amortized to general and administrative expense on a straight-line basis over the vesting period of the award.  A portion of this general and administrative expense is capitalized into natural gas and oil properties, included in property and equipment. The fair value of a liability-classified award is determined on a quarterly basis beginning at the grant date until final vesting.  Changes in the fair value of liability-classified awards are recorded to general and administrative expense and capitalized expense over the vesting period of the award. Generally, stock options granted to employees and directors vest ratably over three years from the grant date and expire seven years from the date of grant. The Company issues shares of restricted stock, restricted stock units or performance cash awards to employees and directors which generally vest over four years. Restricted stock, restricted stock units, performance cash awards and stock options granted to participants under the 2013 Incentive Plan, as amended and restated, immediately vest upon death, disability or retirement (subject to a minimum of three years of service). The Company issues performance unit awards to employees which historically have vested at or over three years.

In February of 2021 and 2020, the Company notified employees of workforce reduction plans as a result of strategic realignments of the Company’s organizational structure. Theses reductions were substantially complete by the end of the first quarter of each respective year. Affected employees were offered a severance package which, if applicable, included the current value of unvested long-term incentive awards that were forfeited.

The Company recognized the following amounts in total employee stock-based compensation costs for the three months ended March 31, 2021 and 2020:

	For the three months ended March 31,
(in millions)	2021		2020
Stock-based compensation cost – expensed	$	13	$	—
Stock-based compensation cost – capitalized	5		—

Equity-Classified Awards

The Company recognized the following amounts in employee equity-classified stock-based compensation costs for the three months ended March 31, 2021 and 2020:

	For the three months ended March 31,
(in millions)	2021		2020
Equity-classified awards – expensed	$	—	$	1
Equity-classified awards – capitalized	—		—

As of March 31, 2021, there was less than $1 million of total unrecognized compensation cost related to the Company’s unvested equity-classified stock option grants, equity-classified restricted stock grants and equity-classified performance units.  This cost is expected to be recognized over a weighted-average period of 1.0 year.

29

Equity-Classified Stock Options

The following table summarizes equity-classified stock option activity for the three months ended March 31, 2021 and provides information for options outstanding and options exercisable as of March 31, 2021:

	Number of Options	Weighted Average Exercise Price
	(in thousands)
Outstanding at December 31, 2020	3,850	$	13.39
Granted	—	$	—
Exercised	—	$	—
Forfeited or expired	(61)	$	10.93
Outstanding at March 31, 2021	3,789	$	13.43
Exercisable at March 31, 2021	3,789	$	13.43

Equity-Classified Restricted Stock

The following table summarizes equity-classified restricted stock activity for the three months ended March 31, 2021 and provides information for unvested shares as of March 31, 2021:

	Number of Shares	Weighted Average Fair Value
	(in thousands)
Unvested shares at December 31, 2020	697	$	5.97
Granted	10	$	2.98
Vested	(451)	$	7.61
Forfeited	—	$	8.59
Unvested shares at March 31, 2021	256	$	2.94

Equity-Classified Restricted Stock Units

As a result of the Merger with Montage, certain employees became employees of Southwestern and retained their original equity awards. The following table summarizes equity-classified performance unit activity for the three months ended March 31, 2021 and provides information for unvested units as of March 31, 2021. 

	Number of Shares	Weighted Average Fair Value
	(in thousands)
Unvested units at December 31, 2020	134	$	3.05
Granted	—	—
Vested	(45)	3.05
Forfeited	—	—
Unvested Units at March 31, 2021	89	3.05

Liability-Classified Awards

The Company recognized the following amounts in employee liability-classified stock-based compensation costs for the three months ended March 31, 2021:

	For the three months ended March 31,
(in millions)	2021		2020
Liability-classified stock-based compensation cost – expensed	$	13	$	(1)
Liability-classified stock-based compensation cost – capitalized	5		—

30

Liability-Classified Restricted Stock Units

In the first quarter of each year beginning with 2018, the Company granted restricted stock units that vest over a period of four years and are payable in either cash or shares at the option of the Compensation Committee of the Company’s Board of Directors.  The awards granted in 2021 vest over a period of three years. The Company has accounted for these as liability-classified awards, and accordingly changes in the market value of the instruments will be recorded to general and administrative expense and capitalized expense over the vesting period of the award.  As of March 31, 2021, there was $32 million of total unrecognized compensation cost related to liability-classified restricted stock units that is expected to be recognized over a weighted-average period of 2.2 years. The amount of unrecognized compensation cost for liability-classified awards will fluctuate over time as they are marked to market.

	Number of Units	Weighted Average Fair Value
	(in thousands)
Unvested units at December 31, 2020	11,613	$	2.67
Granted	1,486	$	4.23
Vested	(4,522)	$	3.40
Forfeited	(416)	$	4.31
Unvested units at March 31, 2021	8,161	$	4.07

Liability-Classified Performance Units

In each year beginning with 2018, the Company granted performance units that vest at the end of, or over, a three-year period and are payable in either cash or shares at the option of the Compensation Committee of the Company’s Board of Directors.  The Company has accounted for these as liability-classified awards, and accordingly changes in the fair market value of the instruments will be recorded to general and administrative expense and capitalized expense over the vesting period of the awards.  The performance unit awards granted in 2018 include a performance condition based on cash flow per debt-adjusted share and two market conditions, one based on absolute TSR and the other on relative TSR as compared to a group of the Company’s peers. The performance unit awards granted in 2019 include performance conditions based on return on average capital employed and two market conditions, one based on absolute TSR and the other on relative TSR.  The performance units granted in 2020 include a performance condition based on return on average capital employed and a market condition based on relative TSR. In the first quarter of 2021, two types of performance unit awards were granted. One type of award includes a performance condition based on return on capital employed and a performance condition based on a reinvestment rate, and the second type of award includes one market condition based on relative TSR. The fair values of the market conditions are calculated by Monte Carlo models on a quarterly basis.  As of March 31, 2021, there was $22 million of total unrecognized compensation cost related to liability-classified performance units.  This cost is expected to be recognized over a weighted-average period of 2.1 years.  The amount of unrecognized compensation cost for liability-classified awards will fluctuate over time as they are marked to market. The final value of the performance unit awards is contingent upon the Company’s actual performance against these performance measures.

	Number of Units	Weighted Average Fair Value
	(in thousands)
Unvested units at December 31, 2020	8,699	$	2.57
Granted	3,580	$	4.14
Vested	(2,020)	$	4.05
Forfeited	(622)	$	2.98
Unvested units at March 31, 2021	9,637	$	2.88

Cash-Based Compensation

Performance Cash Awards

In 2021 and 2020, the Company granted performance cash awards that vest over a four-year period and are payable in cash on an annual basis. The value of each unit of the award equals one dollar. The Company recognizes the cost of these awards as general and administrative expense and capitalized expense over the vesting period of the awards. The performance cash awards granted in 2021 and 2020 include a performance condition determined annually by the Company. For both years, the performance measure is a targeted discretionary cash flow amount. If the Company, in its sole discretion, determines that the threshold was not met, the amount for that vesting period will not vest and will be cancelled. As of March 31, 2021, there was $30 million of total unrecognized compensation cost related to performance cash awards. This cost is expected to be

31

recognized over a weighted average 3.5 years. The final value of the performance cash awards is contingent upon the Company’s actual performance against these performance measures.

	Number of Units	Weighted Average Fair Value
	(in thousands)
Unvested units at December 31, 2020	18,353	$	1.00
Granted	18,546	$	1.00
Vested	(4,319)	$	1.00
Forfeited	(1,615)	$	1.00
Unvested units at March 31, 2021	30,965	$	1.00

(16) SEGMENT INFORMATION

The Company’s reportable business segments have been identified based on the differences in products or services provided.  Revenues for the E&P segment are derived from the production and sale of natural gas and liquids.  The Marketing segment generates revenue through the marketing of both Company and third-party produced natural gas and liquids volumes.

Summarized financial information for the Company’s reportable segments is shown in the following table.  The accounting policies of the segments are the same as those described in Note 1 of the Notes to Consolidated Financial Statements included in Item 8 of the 2020 Annual Report.  Management evaluates the performance of its segments based on operating income, defined as operating revenues less operating costs.  Income before income taxes, for the purpose of reconciling the operating income amount shown below to consolidated income before income taxes, is the sum of operating income, interest expense, gain (loss) on derivatives, gain on early extinguishment of debt and other income (loss).  The “Other” column includes items not related to the Company’s reportable segments, including real estate and corporate items. Corporate general and administrative costs, depreciation expense and taxes, other than income taxes, are allocated to the segments.

	E&P			Marketing		Other		Total
Three months ended March 31, 2021	(in millions)
Revenues from external customers	$	719		$	353	$	—	$	1,072
Intersegment revenues	(14)			644		—		630
Depreciation, depletion and amortization expense	94			2		—		96
Operating income	295		(1)	6		—		301
Interest expense (2)	31			—		—		31
Loss on derivatives	(191)			—		—		(191)
Other income, net	1			—		—		1
Assets	4,741		(3)	396		110		5,247
Capital investments (4)	266			—		—		266
Three months ended March 31, 2020
Revenues from external customers	$	353		$	239	$	—	$	592
Intersegment revenues	(9)			309		—		300
Depreciation, depletion and amortization expense	111			2		—		113
Impairments	1,479			—		—		1,479
Operating loss	(1,486)		(1)	(4)		—		(1,490)
Interest expense (2)	19			—		—		19
Gain on derivatives	339			—		—		339
Gain on early extinguishment of debt	—			—		28		28
Other income, net	1			—		—		1
Benefit from income taxes (2)	406			—		—		406
Assets	4,900		(3)	214		161		5,275
Capital investments (4)	237			—		—		237

(1)Operating income (loss) for the E&P segment includes $6 million and $10 million of restructuring charges for the three months ended March 31, 2021 and 2020, respectively. The E&P segment operating income (loss) also includes $1 million of merger-related charges for the three months ended March 31, 2021.

(2)Interest expense and provision (benefit) for income taxes by segment is an allocation of corporate amounts as they are incurred at the corporate level.

(3)E&P assets includes office, technology, water infrastructure, drilling rigs and other ancillary equipment not directly related to natural gas and oil properties. E&P assets also includes deferred tax assets which are an allocation of corporate amounts as they are incurred at the corporate level.

32

(4)Capital investments include increases of $38 million and $8 million for the three months ended March 31, 2021 and 2020, respectively, relating to the change in accrued expenditures between periods.

The following table presents the breakout of other assets, which represent corporate assets not allocated to segments and assets for non-reportable segments at March 31, 2021 and 2020:

	As of March 31,
(in millions)	2021		2020
Cash and cash equivalents	$	4	$	5
Income taxes receivable	—		32
Prepayments	6		9
Property, plant and equipment	15		23
Unamortized debt expense	11		10
Right-of-use lease assets	70		77
Non-qualified retirement plan	4		5
	$	110	$	161

(17) NEW ACCOUNTING PRONOUNCEMENTS

New Accounting Standards Implemented in this Report

In August 2018, the Financial Accounting Standards Board (the “FASB”) issued ASU 2018-14, Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans ("ASU 2018-14"). ASU 2018-14 amends, adds and removes certain disclosure requirements under FASB ASC Topic 715 – Compensation – Retirement Benefits. The guidance in ASU 2018-14 is effective for fiscal years beginning after December 15, 2020 and was adopted on January 1, 2021. Adoption of ASU 2018-14 will result in certain disclosure changes within the Company's footnote disclosures. The adoption of ASU 2018-14 did not have a material impact on the Company's consolidated financial statements.

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ASU 2019-12 eliminates certain exceptions to the guidance in Topic 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. The new guidance also clarifies certain aspects of the existing guidance, among other things. The standard became effective for interim and annual periods beginning after December 15, 2020 and shall be applied on either a prospective basis, a retrospective basis for all periods presented, or a modified retrospective basis through a cumulative-effect adjustment to retained earnings depending on which aspects of the new standard are applicable to an entity. The Company adopted the new standard on January 1, 2021 on a prospective basis, which did not have a material impact on its consolidated financial statements.

New Accounting Standards Not Yet Adopted in this Report

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform, as a new ASC Topic, ASC 848. The purpose of ASC 848 is to provide optional guidance to ease the potential effects on financial reporting of the market-wide migration away from Interbank Offered Rates, such as LIBOR, which is expected to be phased out at the end of calendar year 2021, to alternative reference rates. ASC 848 applies only to contracts, hedging relationships, debt arrangements and other transactions that reference a benchmark reference rate expected to be discontinued because of reference rate reform. ASC 848 contains optional expedients and exceptions for applying U.S. GAAP to transactions affected by this reform. The amendments in ASU 2020-04 are effective for all entities as of March 12, 2020 through December 31, 2022. The Company is currently assessing the impact of adopting this new guidance.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following updates information as to Southwestern Energy Company’s financial condition provided in our 2020 Annual Report and analyzes the changes in the results of operations between the three month periods ended March 31, 2021 and 2020.  For definitions of commonly used natural gas and oil terms used in this Quarterly Report, please refer to the “Glossary of Certain Industry Terms” provided in our 2020 Annual Report.

The following discussion contains forward-looking statements that involve risks and uncertainties.  Our actual results could differ materially from those anticipated in forward-looking statements for many reasons, including the risks described in “Cautionary Statement About Forward-Looking Statements” in the forepart of this Quarterly Report and in Item 1A, “Risk Factors” in Part I and elsewhere in our 2020 Annual Report.  You should read the following discussion with our consolidated financial statements and the related notes included in this Quarterly Report.

33

OVERVIEW

Background

Southwestern Energy Company (including its subsidiaries, collectively, “we,” “our,” “us,” “the Company” or “Southwestern”) is an independent energy company engaged in natural gas, oil and NGLs exploration, development and production, which we refer to as “E&P.”  We are also focused on creating and capturing additional value through our marketing business, which we call “Marketing.”  We conduct most of our businesses through subsidiaries, and we currently operate exclusively in the lower 48 United States.

E&P.  Our primary business is the exploration for and production of natural gas, oil and NGLs, with our ongoing operations focused on the development of unconventional natural gas reservoirs located in Pennsylvania, Ohio and West Virginia.  Our operations in northeast Pennsylvania, which we refer to as “Northeast Appalachia,” are primarily focused on the unconventional natural gas reservoir known as the Marcellus Shale.  Our operations in West Virginia, Ohio and southwest Pennsylvania, which we refer to as “Southwest Appalachia,” are focused on the Marcellus Shale, the Utica and the Upper Devonian unconventional natural gas and oil reservoirs.  Collectively, our properties in Pennsylvania, Ohio and West Virginia are herein referred to as “Appalachia.” We also have drilling rigs located in Appalachia, and we provide certain oilfield products and services, principally serving our E&P operations through vertical integration.

On November 13, 2020, we closed on our Agreement and Plan of Merger with Montage Resources Corporation (“Montage”) pursuant to which Montage merged with and into Southwestern, with Southwestern continuing as the surviving company (the “Merger”). The Merger expanded our footprint in Appalachia by supplementing our Northeast Appalachia and Southwest Appalachia operations and by expanding our operations into Ohio. See Note 2 to the consolidated financial statements of this Quarterly Report for more information on the Merger.

Marketing. Our marketing activities capture opportunities that arise through the marketing and transportation of natural gas, oil and NGLs primarily produced in our E&P operations.

Recent Financial and Operating Results

Significant first quarter 2021 operating and financial results include:

Total Company

•Net income of $80 million, or $0.12 per diluted share, increased compared to net loss of $1,547 million, or ($2.86) per diluted share, for the same period in 2020. The increase was primarily due to a $1,479 million non-cash full cost ceiling test impairment in the first quarter of 2020. Excluding the impact of the impairment, net income increased $148 million in the first quarter of 2021, compared to the same period in 2020, as a $406 million improvement in income tax expense and a $312 million improvement in operating income was partially offset by a $530 million reduction in our derivative position, $415 million of which was unrealized, resulting from an improved forward-pricing strip, and a $12 million increase in interest expense. The first quarter of 2020 also included a $28 million gain on the early extinguishment of debt.

•Operating income of $301 million increased compared to operating loss of $1,490 million for the same period in 2020 on a consolidated basis. Operating loss included a $1,479 million non-cash full cost ceiling test impairment in the first quarter of 2020. Excluding the non-cash impairment, operating income of $301 million improved $312 million, compared to the same period in 2020, as a $480 million increase in operating revenues more than offset a $168 million increase in operating costs and expenses.

•Net cash provided by operating activities of $347 million increased 117% from $160 million for the same period in 2020 as the effects of improved commodity pricing and higher production were only partially offset by a decrease in settled derivatives combined with an increase in operating expenses associated with higher liquids production.

•Total capital investment of $266 million increased 12% from $237 million for the same period in 2020.

34

E&P

•E&P segment operating income of $295 million increased from an operating loss of $1,486 million for the same period in 2020, primarily related to the non-cash full cost ceiling test impairment of $1,479 million in the first quarter of 2020. Excluding the non-cash impairment, E&P operating income increased $302 million, compared to the same period in 2020, as a $361 million increase in E&P operating revenues resulting from a $0.93 per Mcfe increase in our realized weighted average price (excluding derivatives) and a 68 Bcfe increase in production volumes was only partially offset by a $59 million increase in E&P operating costs and expenses.

•Total net production of 269 Bcfe, which was comprised of 79% natural gas and 21% oil and NGLs, increased 34% from 201 Bcfe in the same period in 2020, primarily due to a 37% increase in our natural gas production, 26% of which was associated with natural gas production from our Merger-related properties acquired in November 2020.

•Excluding the effect of derivatives, our realized natural gas price of $2.11 per Mcf increased 38%, our realized oil price of $48.14 per barrel increased 31% and our realized NGL price of $22.86 per barrel increased 180%, as compared to the same period in 2020. Excluding the effect of derivatives, our total weighted average realized price of $2.62 per Mcfe increased 55% from the same period in 2020.

•E&P segment invested $266 million in capital; drilling 23 wells, completing 29 wells and placing 17 wells to sales.

Outlook

Our primary focus in 2021 is to strengthen the balance sheet and maximize value with disciplined investment across our portfolio. We expect to accomplish this by:

•Maximizing Our Margins. We will continue to concentrate our efforts on our highest return investment opportunities and look for ways to further reduce our cost structure and build on the synergies from our Merger with Montage while further developing our knowledge of our asset base.

•Generating Free Cash Flow. We expect to generate cash flow from operations, net of changes in working capital, in excess of our expected capital investments, which are designed to keep our daily production at levels consistent with the end of last year. Additionally, we expect to maintain a hedging program that ensures a certain level of cash flow.

•Reducing Our Debt. We intend to utilize the free cash flow generated in 2021 to pay down our debt, further strengthen our balance sheet and progress towards our lower leverage targets.

We believe that we and our industry will continue to face challenges due to the uncertainty of natural gas, oil and NGL prices in the United States, changes in laws, regulations and investor sentiment, and other key factors described in Item 1A, “Risk Factors” in Part I and elsewhere in our 2020 Annual Report.

COVID-19

During the first quarter of 2021, we did not experience any material impact to our ability to operate or market our production due to the direct or indirect impacts of the COVID-19 pandemic. We continue to monitor the impact of COVID-19 on all aspects of our business. The COVID-19 outbreak resulted in state and local governments implementing measures with various levels of stringency to help control the spread of the virus. The U.S. Department of Homeland Security classifies individuals engaged in and supporting exploration for and production of natural gas, oil and NGLs as “essential critical infrastructure workforce,” and to date, state and local governments have followed this guidance and exempted these activities from business closures. Should this situation change, our access to supplies or workers to drill, complete and operate wells could be materially and adversely affected.

Ensuring the health and welfare of our employees, and all who visit our sites, is our top priority, and we are following all U.S. Centers for Disease Control and Prevention and state and local health department guidelines. Further, we implemented infection control measures at all our sites and put in place travel and in-person meeting restrictions and other physical distancing measures. The degree to which the COVID-19 pandemic or any other public health crisis adversely impacts our results will depend on future developments, which are uncertain and cannot be predicted, including, but not limited to, the duration and spread of the outbreak, its severity, the effectiveness of the vaccines and the actions to contain the virus or treat its impact, its impact on the economy and market conditions, and how quickly and to what extent normal economic and operating conditions can resume. We will continually monitor our 2021 capital investment program to take into account these changed conditions and proactively adjust our activities and plans. Therefore, while this continued matter could potentially disrupt our operations, the degree of the potentially adverse financial impact cannot be reasonably estimated at this time.

35

RESULTS OF OPERATIONS

The following discussion of our results of operations for our segments is presented before intersegment eliminations.  We evaluate our segments as if they were stand-alone operations and accordingly discuss their results prior to any intersegment eliminations.  Restructuring charges, interest expense, gain (loss) on derivatives, gain on early extinguishment of debt and income taxes are discussed on a consolidated basis.

E&P

	For the three months ended March 31,
(in millions)	2021			2020
Revenues	$	705		$	344
Operating costs and expenses	410		(1)	1,830		(2)
Operating income (loss)	$	295		$	(1,486)
Gain (loss) on derivatives, settled	$	(22)		$	93

(1)Includes $6 million in restructuring charges and $1 million in Montage merger-related expenses for the three months ended March 31, 2021.

(2)Includes $1,479 million related to non-cash full cost ceiling test impairments and $10 million in restructuring charges for the three months ended March 31, 2020.

Operating Income (Loss)

•E&P segment operating income increased $1,781 million for the three months ended March 31, 2021, compared to the same period in 2020. The operating loss for the first quarter of 2020 included a $1,479 million non-cash full cost ceiling test impairment. Excluding the effect of the impairment, operating income improved $302 million, compared to the same period in 2020, as a $361 million increase in E&P operating revenues resulting from a 55% increase in our realized weighted average price (excluding derivatives) and a 37% increase in production volumes was only partially offset by a $59 million increase in E&P operating costs and expenses.

Revenues

The following illustrates the effects on sales revenues associated with changes in commodity prices and production volumes:

	Three months ended March 31,
(in millions except percentages)	Natural Gas			Oil			NGLs			Total
2020 sales revenues (1)	$	239		$	52		$	50		$	341
Changes associated with prices	123			18			111			252
Changes associated with production volumes	89			10			12			111
2021 sales revenues (2)	$	451		$	80		$	173		$	704
Increase from 2020	89		%	54		%	246		%	106		%

(1)Excludes $3 million in other operating revenues for the three months ended March 31, 2020 primarily related to gains on purchaser imbalances associated with certain NGLs.

(2)Excludes $1 million in other operating revenues for the three months ended March 31, 2021 primarily related to gains on purchaser imbalances associated with certain NGLs.

36

Production Volumes

	For the three months ended March 31,				Increase/(Decrease)
Production volumes:	2021		2020
Natural Gas (Bcf)
Northeast Appalachia	118		114		4%
Southwest Appalachia	96		42		129%
Total	214		156		37%
Oil (MBbls)
Southwest Appalachia	1,658		1,395		19%
Other	4		4		—%
Total	1,662		1,399		19%
NGL (MBbls)
Southwest Appalachia	7,577		6,127		24%
Other	1		1		—%
Total	7,578		6,128		24%
Production volumes by area: (Bcfe)
Northeast Appalachia	118		114		4%
Southwest Appalachia	151		87		74%
Total (1)	269		201		34%
Production percentage: (Bcfe)
Natural gas	79	%	78	%
Oil	4	%	4	%
NGL	17	%	18	%

(1)Approximately 213 Bcfe and 201 Bcfe for the three months ended March 31, 2021 and 2020, respectively, were produced from the Marcellus Shale formation.

•E&P production volumes increased by 68 Bcfe for the three months ended March 31, 2021, compared to the same period in 2020, primarily due to incremental production volumes of 48 Bcfe associated with our recently acquired Montage properties, of which 47 Bcfe is reflected in Southwest Appalachia and 1 Bcfe is reflected in Northeast Appalachia.

•Oil and NGL production increased 19% and 24%, respectively, for the three months ended March 31, 2021, compared to the same period in 2020. Production volumes associated with the recently acquired Montage properties were 341 MBbls and 934 MBbls for oil and NGLs, respectively, for the three months ended March 31, 2021.

Commodity Prices

The price we expect to receive for our production is a critical factor in determining the capital investments we make to develop our properties.  Commodity prices fluctuate due to a variety of factors we can neither control nor predict, including increased supplies of natural gas, oil or NGLs due to greater exploration and development activities, weather conditions, political and economic events such as the response to the COVID-19 pandemic, and competition from other energy sources.  These factors impact supply and demand, which in turn determine the sales prices for our production.  In addition to these factors, the prices we realize for our production are affected by our hedging activities as well as locational differences in market prices, including basis differentials.  We will continue to evaluate the commodity price environments and adjust the pace of our activity in order to maintain appropriate liquidity and financial flexibility.

37

	For the three months ended March 31,						Increase/(Decrease)
	2021			2020
Natural Gas Price:
NYMEX Henry Hub Price ($/MMBtu) (1)	$	2.69		$	1.95		38%
Discount to NYMEX (2)	(0.58)			(0.42)			38%
Average realized gas price, excluding derivatives ($/Mcf)	$	2.11		$	1.53		38%
Gain on settled financial basis derivatives ($/Mcf)	0.19			0.10
Gain on settled commodity derivatives ($/Mcf)	0.03			0.31
Average realized gas price, including derivatives ($/Mcf)	$	2.33		$	1.94		20%
Oil Price:
WTI oil price ($/Bbl)	$	57.84		$	46.17		25%
Discount to WTI	(9.70)			(9.45)			3%
Average oil price, excluding derivatives ($/Bbl)	$	48.14		$	36.72		31%
Gain (loss) on settled derivatives ($/Bbl)	(11.17)			9.25
Average oil price, including derivatives ($/Bbl)	$	36.97		$	45.97		(20)%
NGL Price:
Average realized NGL price, excluding derivatives ($/Bbl)	$	22.86		$	8.16		180%
Gain (loss) on settled derivatives ($/Bbl)	(6.75)			2.62
Average realized NGL price, including derivatives ($/Bbl)	$	16.11		$	10.78		49%
Percentage of WTI, excluding derivatives	40		%	18		%
Total Weighted Average Realized Price:
Excluding derivatives ($/Mcfe)	$	2.62		$	1.69		55%
Including derivatives ($/Mcfe)	$	2.54		$	2.16		18%

(1)Based on last day settlement prices from monthly futures contracts.

(2)This discount includes a basis differential, a heating content adjustment, physical basis sales, third-party transportation charges and fuel charges, and excludes financial basis derivatives.

We receive a sales price for our natural gas at a discount to average monthly NYMEX settlement prices based on heating content of the gas, locational basis differentials and transportation and fuel charges.  Additionally, we receive a sales price for our oil and NGLs at a difference to average monthly West Texas Intermediate settlement and Mont Belvieu NGL composite prices, respectively, due to a number of factors including product quality, composition and types of NGLs sold, locational basis differentials and transportation and fuel charges.

We regularly enter into various derivatives and other financial arrangements with respect to a portion of our projected natural gas, oil and NGL production in order to ensure certain desired levels of cash flow and to minimize the impact of price fluctuations, including fluctuations in locational market differentials.  We refer you to Item 3, “Quantitative and Qualitative Disclosures About Market Risk,” and Note 8 to the consolidated financial statements, included in this Quarterly Report.

38

The table below presents the amount of our future production in which the basis is protected as of March 31, 2021:

	Volume (Bcf)	Basis Differential
Basis Swaps – Natural Gas
2021	233	$	(0.49)
2022	220	(0.44)
2023	119	(0.56)
2024	24	(0.64)
2025	9	(0.64)
Total	605
Physical NYMEX Sales Arrangements – Natural Gas
2021	189	$	(0.40)
2022	105	(0.36)
2023	60	(0.35)
2024	24	(0.49)
2025	12	(0.50)
Total	390

In addition to protecting basis, the table below presents the amount of our future production in which price is financially protected as of March 31, 2021:

	Remaining 2021	Full Year 2022	Full Year 2023
Natural gas (Bcf)	589	453	103
Oil (MBbls)	4,926	3,099	1,268
Ethane (MBbls)	4,869	1,893	—
Propane (MBbls)	5,443	3,028	—
Normal Butane (MBbls)	1,568	888	—
Natural Gasoline (MBbls)	1,513	857	—
Total financial protection on future production (Bcfe)	699	512	111

We refer you to Note 8 of the consolidated financial statements included in this Quarterly Report for additional details about our derivative instruments.

Operating Costs and Expenses

	For the three months ended March 31,				Increase/(Decrease)
(in millions except percentages)	2021		2020
Lease operating expenses	$	250	$	194	29%
General & administrative expenses	35		23		52%
Montage merger-related expenses	1		—		100%
Restructuring charges	6		10		(40)%
Taxes, other than income taxes	24		13		85%
Full cost pool amortization	90		106		(15)%
Non-full cost pool DD&A	4		5		(20)%
Impairments	—		1,479		(100)%
Total operating costs	$	410	$	1,830	(78)%

	For the three months ended March 31,						Increase/
Average unit costs per Mcfe:	2021			2020			(Decrease)
Lease operating expenses (1)	$	0.93		$	0.96		(3)%
General & administrative expenses	$	0.13	(2)	$	0.11	(3)	18%
Taxes, other than income taxes	$	0.09		$	0.07		29%
Full cost pool amortization	$	0.33		$	0.53		(38)%

(1)Includes post-production costs such as gathering, processing, fractionation and compression.

(2)Excludes $6 million in restructuring charges and $1 million in Montage merger-related expenses for the three months ended March 31, 2021.

39

(3)Excludes $10 million in restructuring charges for the three months ended March 31, 2020.

Lease Operating Expenses

•Lease operating expenses per Mcfe decreased $0.03 per Mcf for the three months ended March 31, 2021, compared to the same period in 2020, as a 34% increase in production volumes primarily associated with the Merger more than offset a $56 million increase in lease operating expenses. 85% of the increase in production volumes related to natural gas, which has lower operating expenses than oil or NGLs.

General and Administrative Expenses

•General and administrative expenses increased $12 million for the three months ended March 31, 2021, compared to the same period in 2020, as a result of the increase in our share price and related mark-to-market impact on the value of our share-based awards, which are accounted for as liability awards.

Restructuring Charges

•In February 2021, employees were notified of a workforce reduction plan as part of an ongoing strategic effort to reposition our portfolio, optimize operational performance and improve margins. Affected employees were offered a severance package, which included a one-time cash payment depending on length of service and, if applicable, the current value of unvested long-term incentive awards that were forfeited. We recognized restructuring expense of $6 million for the three months ended months ended March 31, 2021 related to cash severance expenses, including payroll taxes.

•In February 2020, employees were notified of a workforce reduction plan as a result of a strategic realignment of our organizational structure.  Affected employees were offered a severance package, which included a one-time cash payment depending on length of service and, if applicable, the current value of unvested long-term incentive awards that were forfeited.  We recognized restructuring expense of $10 million for the three months ended months ended March 31, 2020 related to cash severance expenses, including payroll taxes.

See Note 3 of the consolidated financial statements included in this Quarterly Report for additional details about our restructuring charges.

Taxes, Other than Income Taxes

•On a per Mcfe basis, taxes, other than income taxes, may vary from period to period due to changes in ad valorem and severance taxes that result from the mix of our production volumes and fluctuations in commodity prices.  Taxes, other than income taxes, per Mcfe increased $0.02 for the three months ended March 31, 2021, compared to the same period in 2020, primarily due to the impact of higher commodity pricing on our severance taxes.

Full Cost Pool Amortization

•Our full cost pool amortization rate decreased $0.20 per Mcfe for the three months ended March 31, 2021, as compared to the same period in 2020.  The average amortization rate decreased primarily as a result of the impact of $2,825 million in non-cash full cost ceiling test impairments recorded in 2020.

•No impairment expense was recorded for the three months ended March 31, 2021 in relation to our recently acquired Montage natural gas and oil properties. These properties were recorded at fair value as of November 13, 2020, in accordance with ASC 820 Fair Value Measurement. In the fourth quarter of 2020, pursuant to SEC guidance, we determined that the fair value of the properties acquired at the closing of the Merger clearly exceeded the related full-cost ceiling limitation beyond a reasonable doubt and received a waiver from the SEC to exclude the properties acquired in the Merger from the ceiling test calculation. This waiver was granted for all reporting periods through and including the quarter ending September 30, 2021, as long as we can continue to demonstrate that the fair value of properties acquired clearly exceeds the full cost ceiling limitation beyond a reasonable doubt in each reporting period. As part of the waiver received from the SEC, we are required to disclose what the full cost ceiling test impairment amounts for all periods presented in each applicable quarterly and annual filing would have been if the waiver had not been granted. The fair value of the properties acquired in the Merger was based on forward strip natural gas and oil pricing existing at the date of the Merger, and we affirmed that there has not been a material decline to the fair value of these acquired assets since the Merger. The properties acquired in the Merger have an unamortized cost at March 31, 2021 of $1,102 million. Due to the improvement in commodity prices in the first quarter of 2021, we would not have recorded any impairment charge for the three months ended March 31, 2021 had we included our recently acquired Montage natural gas and oil properties.

•The amortization rate is impacted by the timing and amount of reserve additions and the future development costs associated with those additions, revisions of previous reserve estimates due to both price and well performance, write-

40

downs that result from non-cash full cost ceiling test impairments, proceeds from the sale of properties that reduce the full cost pool and the levels of costs subject to amortization.  We cannot predict our future full cost pool amortization rate with accuracy due to the variability of each of the factors discussed above, as well as other factors, including but not limited to the uncertainty of the amount of future reserve changes.

•Unevaluated costs excluded from amortization were $1,488 million and $1,472 million at March 31, 2021 and at December 31, 2020, respectively.  The unevaluated costs excluded from amortization increased slightly as the impact of $98 million of unevaluated capital invested during the period was only partially offset by the evaluation of previously unevaluated properties totaling $83 million.

Impairments

•During the three months ended March 31, 2020, we recognized a $1,479 million non-cash full cost ceiling test impairment primarily due to decreased commodity pricing over the prior twelve months. There were no impairments in the first quarter of 2021.

Marketing

	For the three months ended March 31,						Increase/ (Decrease)
(in millions except volumes and percentages)	2021			2020
Marketing revenues	$	996		$	548		82%
Other operating revenues	1			—			100%
Marketing purchases	986			547			80%
Operating costs and expenses	5			5			—%
Operating income (loss)	$	6		$	(4)		(250)%
Volumes marketed (Bcfe)	345			263			31%
Percent natural gas production marketed from affiliated E&P operations	93		%	87		%
Percent oil and NGL production marketed from affiliated E&P operations	80		%	77		%

Operating Income

•Marketing operating income increased $10 million for the three months ended March 31, 2021, compared to the same period in 2020, primarily due to a $9 million increase in the marketing margin and a $1 million increase in natural gas storage gains recorded in the first quarter of 2021.

•The margin generated from marketing activities was $10 million and $1 million for the three months ended March 31, 2021 and 2020, respectively. The marketing margin increased for the three months ended March 31, 2021, compared to the same period in 2020, primarily due to a 31% increase in the volumes marketed and a corresponding reduction in third-party sales and purchases used to optimize the transportation portfolio due to increased affiliated volumes available for marketing.

Marketing margins are driven primarily by volumes marketed and may fluctuate depending on the prices paid for commodities, related cost of transportation and the ultimate disposition of those commodities.  Increases and decreases in marketing revenues due to changes in commodity prices and volumes marketed are largely offset by corresponding changes in purchase expenses. Efforts to optimize the cost of our transportation can result in greater expenses and therefore lower marketing margins.

Revenues

•For the three months ended March 31, 2021, revenues from our marketing activities increased $448 million compared to the same period in 2020, primarily due to a 39% increase in the price received for volumes marketed and a 31% increase in volumes marketed.

Operating Costs and Expenses

•Operating costs and expenses for the marketing segment remained flat for the three months ended March 31, 2021, compared to the same period in 2020, primarily due to the prior implementation of cost reduction initiatives.

41

Consolidated

Interest Expense

	For the three months ended March 31,				Increase/(Decrease)
(in millions except percentages)	2021		2020
Gross interest expense:
Senior notes	$	44	$	37	19%
Credit arrangements	6		3		100%
Amortization of debt costs	3		2		50%
Total gross interest expense	53		42		26%
Less: capitalization	(22)		(23)		(4)%
Net interest expense	$	31	$	19	63%

•Interest expense related to our senior notes increased for the three months ended March 31, 2021, compared to the same period in 2020, as the interest savings from the repurchase of $80 million of our outstanding senior notes during the first quarter of 2020 was more than offset by the interest associated with the August 2020 public offering of $350 million aggregate principal amount of our 8.375% Senior Notes due 2028.

•Capitalized interest decreased for the three months ended March 31, 2021, compared to the same period in 2020, due to the evaluation of natural gas and oil properties over the past twelve months.

•Capitalized interest decreased as a percentage of gross interest expense for the three months ended March 31, 2021, compared to the same period in 2020, primarily related to a smaller percentage change in our unevaluated natural gas and oil properties balance as compared to the larger percentage increase in our gross interest expense over the same period.

Gain (Loss) on Derivatives

	For the three months ended March 31,
(in millions)	2021		2020
Gain (loss) on unsettled derivatives	$	(169)	$	246
Gain (loss) on settled derivatives	(22)		93
Gain (loss) on derivatives	$	(191)	$	339

We refer you to Note 8 to the consolidated financial statements included in this Quarterly Report for additional details about our gain (loss) on derivatives.

Gain/Loss on Early Extinguishment of Debt

For the three months ended March 31, 2020, we recorded a gain on early extinguishment of debt of $28 million as a result of our repurchase of $80 million in aggregate principal amount of our outstanding senior notes for $52 million. See Note 11 to the consolidated financial statements of this Quarterly Report for more information on our long-term debt.

Income Taxes

	For the three months ended March 31,
(in millions except percentages)	2021			2020
Income tax expense	$	—		$	406
Effective tax rate	0		%	(36)		%

•As of the first quarter of 2019, we had sustained a three-year cumulative level of profitability. Based on this factor and other positive evidence including forecasted income, we concluded that it was more likely than not that the deferred tax asset would be realized and released substantially all of the valuation allowance. However, due to commodity price declines during 2020 and the write-down of the carrying value of our natural gas and oil properties, in addition to other negative evidence, we concluded that it was more likely than not that these deferred tax assets will not be realized and recorded a discrete tax expense of $408 million for the increase in our valuation allowance in the first quarter of 2020. The net change in valuation allowance is reflected as a component of income tax expense. We continue to have a full valuation allowance for the first quarter of 2021. We also continue to retain a valuation allowance of $87 million related to net operating losses in jurisdictions in which we no longer operate.

42

New Accounting Standards Implemented in this Report

Refer to Note 17 to the consolidated financial statements of this Quarterly Report for a discussion of new accounting standards that have been implemented.

New Accounting Standards Not Yet Implemented in this Report

Refer to Note 17 to the consolidated financial statements of this Quarterly Report for a discussion of new accounting standards that have not yet been implemented.

LIQUIDITY AND CAPITAL RESOURCES

We depend primarily on funds generated from our operations, our 2018 credit facility, our cash and cash equivalents balance and capital markets as our primary sources of liquidity. In March 2021, the banks participating in our 2018 credit facility reaffirmed our elected borrowing base and aggregate commitments to be $2.0 billion. At March 31, 2021, we had approximately $1.2 billion of total available liquidity, which exceeds our currently modeled needs, and we remain committed to our strategy of capital discipline. We refer you to Note 11 to the consolidated financial statements included in this Quarterly Report and the section below under “Credit Arrangements and Financing Activities” for additional discussion of our 2018 credit facility and related covenant requirements.

Our cash flow from operating activities is highly dependent upon our ability to sell, and the sales prices that we receive for, our natural gas and liquids production.  Natural gas, oil and NGL prices are subject to wide fluctuations and are driven by market supply and demand, which is impacted by many factors. The sales price we receive for our production is also influenced by our commodity derivative program.  Our derivative contracts allow us to ensure a certain level of cash flow to fund our operations. Although we are continually adding additional derivative positions for portions of our expected 2021, 2022 and 2023 production, there can be no assurance that we will be able to add derivative positions to cover the remainder of our expected production at favorable prices. See “Quantitative and Qualitative Disclosures about Market Risk” in Item 3 in Part I and Note 8 in the consolidated financial statements included in this Quarterly Report for further details.

Our commodity hedging activities are subject to the credit risk of our counterparties being financially unable to settle the transaction.  We actively monitor the credit status of our counterparties, performing both quantitative and qualitative assessments based on their credit ratings and credit default swap rates where applicable, and to date have not had any credit defaults associated with our transactions.  However, any future failures by one or more counterparties could negatively impact our cash flow from operating activities.

Our short-term cash flows are also dependent on the timely collection of receivables from our customers and joint interest owners.  We actively manage this risk through credit management activities and, through the date of this filing, have not experienced any significant write-offs for non-collectable amounts.  However, any sustained inaccessibility of credit by our customers and joint interest owners could adversely impact our cash flows.

Due to these factors, we are unable to forecast with certainty our future level of cash flows from operations.  Accordingly, we expect to adjust our discretionary uses of cash depending upon available cash flow.  Further, we may from time to time seek to retire, rearrange or amend some or all of our outstanding debt or debt agreements through cash purchases, and/or exchanges, open market purchases, privately negotiated transactions, tender offers or otherwise.  Such transactions, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors.  The amounts involved may be material.

Credit Arrangements and Financing Activities

In April 2018, we entered into a new revolving credit facility (the “2018 credit facility”) with a group of banks that, as amended, has a maturity date of April 2024.  The 2018 credit facility has an aggregate maximum revolving credit amount of $3.5 billion and, in March 2021, the banks participating in our 2018 credit facility reaffirmed the elected borrowing base to be $2.0 billion, which also reflected our aggregate commitments. The borrowing base is subject to redetermination at least twice a year, in April and October, and is subject to change based primarily on drilling results, commodity prices, our future derivative position, the level of capital investment and operating costs. The 2018 credit facility is secured by substantially all of our assets, including most of our subsidiaries. The permitted lien provisions in certain senior note indentures currently limit liens securing indebtedness to the greater of $2.0 billion or 25% of adjusted consolidated net tangible assets. We may utilize the 2018 credit facility in the form of loans and letters of credit. As of March 31, 2021, we had $567 million borrowings outstanding on our revolving credit facility and $233 million in outstanding letters of credit. We refer you to Note 11 to the consolidated financial statements included in this Quarterly Report for additional discussion of our revolving credit facility.

43

As of March 31, 2021, we were in compliance with all of the covenants contained in the credit agreement governing our revolving credit facility. Our ability to comply with financial covenants in future periods depends, among other things, on the success of our development program and upon other factors beyond our control, such as the market demand and prices for natural gas and liquids. We refer you to Note 11 of the consolidated financial statements included in this Quarterly Report for additional discussion of the covenant requirements of our 2018 credit facility.

The credit status of the financial institutions participating in our revolving credit facility could adversely impact our ability to borrow funds under the revolving credit facility.  Although we believe all of the lenders under the facility have the ability to provide funds, we cannot predict whether each will be able to meet their obligation to us. We refer you to Note 11 to the consolidated financial statements included in this Quarterly Report for additional discussion of our revolving credit facility.

Our exposure to the anticipated transition from LIBOR in late 2021 is limited to the 2018 credit facility. Upon announcement by the administrator of LIBOR identifying a specific date for LIBOR cessation, the credit agreement governing the 2018 credit facility will be amended to reference an alternative rate as established by JP Morgan, as Administrative Agent, and Southwestern. The alternative rate will be based on the prevailing market convention and is expected to be the Secured Overnight Financing Rate (or “SOFR”).

Because of the focused work on refinancing and repayment of our debt during the last three years, only $207 million, or 8%, of our senior notes outstanding as of March 31, 2021 are scheduled to become due prior to 2025.

At April 27, 2021, we had a long-term issuer credit rating of Ba2 by Moody’s (rating and stable outlook affirmed on April 2, 2020), a long-term debt rating of BB- by S&P (rating affirmed and outlook upgraded to stable on October 15, 2020) and a long-term issuer default rating of BB by Fitch Ratings (rating affirmed and outlook upgraded to stable on January 29, 2021).  In April 2020, S&P downgraded our bond rating to BB-, which had the effect of increasing the interest rate on the 2025 Notes to 6.45% in July 2020. The first coupon payment to the 2025 Notes bondholders at the higher interest rate was January 2021. Any further upgrades or downgrades in our public debt ratings by Moody’s or S&P could decrease or increase our cost of funds, respectively.

Cash Flows

	For the three months ended March 31,
(in millions)	2021		2020
Net cash provided by operating activities	$	347	$	160
Net cash used in investing activities	(227)		(228)
Net cash provided by (used in) financing activities	(129)		68

Cash Flow from Operating Activities

	For the three months ended March 31,
(in millions)	2021		2020
Net cash provided by operating activities	$	347	$	160
Add back (subtract) changes in working capital	—		21
Net cash provided by operating activities, net of changes in working capital	$	347	$	181

•Net cash provided by operating activities increased 117%, or $187 million, for the three months ended March 31, 2021, compared to the same period in 2020, primarily due to a $252 million increase resulting from higher commodity prices, a $111 million increase associated with increased production, a $21 million increase in impact of working capital and a $5 million increase in marketing margin. These increases were partially offset by a $115 million decrease in our settled derivatives, a $77 million increase in operating costs and expenses and a $12 million increase in interest expense.

•Net cash generated from operating activities, net of changes in working capital, provided 130% of our cash requirements for capital investments for the three months ended March 31, 2021, compared to providing 76% of our cash requirements for capital investments for the same period in 2020. We remain committed to our disciplined capital investment strategy.

44

Cash Flow from Investing Activities

•Total capital investments increased $29 million for the three months ended March 31, 2021, compared to the same period in 2020, due to a $28 million increase in direct E&P capital investments and a $1 million increase in capitalized interest and internal costs, as compared to the same period in 2020.

	For the three months ended March 31,
(in millions)	2021		2020
Additions to properties and equipment	$	227	$	228
Adjustments for capital investments
Changes in capital accruals	38		8
Other (1)	1		1
Total capital investment	$	266	$	237

(1)Includes capitalized non-cash stock-based compensation and costs to retire assets, which are classified as cash used in operating activities.

Capital Investment

	For the three months ended March 31,				Increase/(Decrease)
(in millions except percentages)	2021		2020
E&P capital investment	$	266	$	237	12%
Other capital investment (1)	—		—		—%
Total capital investment	$	266	$	237	12%

(1)Other capital investment was immaterial for the three months ended March 31, 2021 and 2020.

	For the three months ended March 31,
(in millions)	2021		2020
E&P Capital Investments by Type:
Exploratory and development drilling, including workovers	$	215	$	190
Acquisition of properties	10		6
Water infrastructure project	—		1
Other	4		4
Capitalized interest and expenses	37		36
Total E&P capital investments	$	266	$	237
E&P Capital Investments by Area:
Northeast Appalachia	$	80	$	86
Southwest Appalachia	183		146
Other E&P (1)	3		5
Total E&P capital investments	$	266	$	237

(1)Includes $1 million for the three months ended March 31, 2020 related to our water infrastructure project.

	For the three months ended March 31,
	2021	2020
Gross Operated Well Count Summary:
Drilled	23	38
Completed	29	22
Wells to sales	17	12

Actual capital expenditure levels may vary significantly from period to period due to many factors, including drilling results, natural gas, oil and NGL prices, industry conditions, the prices and availability of goods and services, and the extent to which properties are acquired or non-strategic assets are sold.

Cash Flow from Financing Activities

•For the three months ended March 31, 2021, we paid down $133 million on our revolving credit facility.

45

•In the first quarter of 2020, we borrowed $115 million from our revolving credit facility. In addition, we repurchased $80 million principal amount of our outstanding senior notes for $52 million and recognized a $28 million gain on the extinguishment of debt.

We refer you to Note 11 of the consolidated financial statements included in this Quarterly Report for additional discussion of our outstanding debt and credit facilities.

Working Capital

We had negative working capital of $768 million at March 31, 2021, a $427 million decrease from December 31, 2020, as a $32 million increase in accounts receivable was more than offset by the reclassification of long-term debt to short-term debt of $207 million related to our 2022 senior notes, a $177 million reduction in the current mark-to-market value of our derivative position related to improved forward strip pricing across all commodities, a $56 million increase in various payables, a $9 million decrease in cash and cash equivalents and a $7 million decrease in our net leasing assets, as compared to December 31, 2020. We believe that our anticipated cash flows from operations, our existing cash and cash equivalents and our available credit facility will be sufficient to meet our working capital and operational spending requirements.

Off-Balance Sheet Arrangements

We may enter into off-balance sheet arrangements and transactions that can give rise to material off-balance sheet obligations.  As of March 31, 2021, our material off-balance sheet arrangements and transactions include operating service arrangements and $233 million in letters of credit outstanding against our 2018 credit facility.  There are no other transactions, arrangements or other relationships with unconsolidated entities or other persons that are reasonably likely to materially affect our liquidity or availability of our capital resources.  For more information regarding off-balance sheet arrangements, we refer you to “Contractual Obligations and Contingent Liabilities and Commitments” below for a summary of our operating leases.

Contractual Obligations and Contingent Liabilities and Commitments

We have various contractual obligations in the normal course of our operations and financing activities.  Other than the firm transportation and gathering agreements discussed below, there have been no material changes to our contractual obligations from those disclosed in our 2020 Annual Report.

Contingent Liabilities and Commitments

As of March 31, 2021, we had commitments for demand and similar charges under firm transportation and gathering agreements to guarantee access capacity on natural gas and liquids pipelines and gathering systems totaling approximately $8.4 billion, $436 million of which related to access capacity on future pipeline and gathering infrastructure projects that still require the granting of regulatory approvals and/or additional construction efforts.  This amount also included guarantee obligations of up to $908 million.  As of March 31, 2021, future payments under non-cancelable firm transportation and gathering agreements are as follows:

	Payments Due by Period
(in millions)	Total		Less than 1 Year		1 to 3 Years		3 to 5 Years		5 to 8 years		More than 8 Years
Infrastructure currently in service	$	7,915	$	789	$	1,539	$	1,295	$	1,752	$	2,540
Pending regulatory approval and/or construction (1)	436		2		30		38		81		285
Total transportation charges	$	8,351	$	791	$	1,569	$	1,333	$	1,833	$	2,825

(1)Based on the estimated in-service dates as of March 31, 2021.

Substantially all of our employees who were employed prior to January 1, 2021 are covered by defined benefit and postretirement benefit plans.  As part of ongoing effort to reduce costs, we elected to freeze its pension plan effective January 1, 2021. Employees that were participants in the pension plan prior to January 1, 2021 will continue to receive the interest component of the plan but will no longer receive the service component. For the three months ended March 31, 2021, we have contributed $5 million to the pension and postretirement benefit plans, and we expect to contribute an additional $7 million to our pension plan during the remainder of 2021.  We recognized liabilities of $41 million and $46 million as of March 31, 2021 and December 31, 2020, respectively, as a result of the underfunded status of our pension and other postretirement benefit plans.  See Note 14 to the consolidated financial statements included in this Quarterly Report for additional discussion about our pension and other postretirement benefits.

We are subject to various litigation, claims and proceedings that arise in the ordinary course of business, such as for alleged breaches of contract, miscalculation of royalties, employment matters, traffic incidents, pollution, contamination, encroachment on others’ property or nuisance.  We accrue for such items when a liability is both probable and the amount can be reasonably

46

estimated. Management believes that current litigation, claims and proceedings, individually or in aggregate and after taking into account insurance, are not likely to have a material adverse impact on our financial position, results of operations or cash flows, although it is possible that adverse outcomes could have a material adverse effect on our results of operations or cash flows for the period in which the effect of that outcome becomes reasonably estimable.  Many of these matters are in early stages, so the allegations and the damage theories have not been fully developed, and are all subject to inherent uncertainties; therefore, management’s view may change in the future.

We are also subject to laws and regulations relating to the protection of the environment.  Environmental and cleanup related costs of a non-capital nature are accrued when it is both probable that a liability has been incurred and when the amount can be reasonably estimated.  Management believes any future remediation or other compliance related costs will not have a material effect on our financial position, results of operations or cash flows.

For further information, we refer you to “Litigation” and “Environmental Risk” in Note 12 to the consolidated financial statements included in Item 1 of Part I of this Quarterly Report.

Supplemental Guarantor Financial Information

As discussed in Note 11, in April 2018 the Company entered into the 2018 credit facility.  Pursuant to requirements under the indentures governing our senior notes, each 100% owned subsidiary that became a guarantor of the 2018 credit facility also became a guarantor of each of our senior notes (the “Guarantor Subsidiaries”). The Guarantor Subsidiaries also granted liens and security interests to support their guarantees under the 2018 credit facility but not of the senior notes.   These guarantees are full and unconditional and joint and several among the Guarantor Subsidiaries.  Certain of our operating units that are accounted for on a consolidated basis do not guarantee the 2018 credit facility and senior notes.

The Company and the Guarantor Subsidiaries jointly and severally, and fully and unconditionally, guarantee the payment of the principal and premium, if any, and interest on the senior notes when due, whether at stated maturity of the senior notes, by acceleration, by call for redemption or otherwise, together with interest on the overdue principal, if any, and interest on any overdue interest, to the extent lawful, and all other obligations of the Company to the holders of the senior notes.

SEC Regulation S-X Rule 13-01 requires the presentation of “Summarized Financial Information” to replace the “Condensed Consolidating Financial Information” required under Rule 3-10. Rule 13-01 allows the omission of Summarized Financial Information if assets, liabilities and results of operations of the Guarantor Subsidiaries are not materially different than the corresponding amounts presented in the consolidated financial statements of the Company. The Parent and Guarantor Subsidiaries comprise the material operations of the Company. Therefore, the Company concluded that the presentation of the Summarized Financial Information is not required as the Summarized Financial Information of the Company’s Guarantors is not materially different from our consolidated financial statements.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market risks relating to our operations result primarily from the volatility in commodity prices, basis differentials and interest rates, as well as service costs and credit risk concentrations.  We use fixed price swap agreements, options and basis swaps to reduce the volatility of earnings and cash flow due to fluctuations in the prices of natural gas, oil and certain NGLs.  Our Board of Directors has approved risk management policies and procedures to utilize financial products for the reduction of defined commodity price risk.  These policies prohibit speculation with derivatives and limit swap agreements to counterparties with appropriate credit standings.

Credit Risk

Our exposure to concentrations of credit risk consists primarily of trade receivables and derivative contracts associated with commodities trading.  Concentrations of credit risk with respect to receivables are limited due to the large number of our purchasers and their dispersion across geographic areas.  At March 31, 2021, no purchaser accounted for 10% of our revenues. For the year ended December 31, 2020, one purchaser accounted for 10% of our revenues. A default on this account could have a material impact on the Company, but we do not believe that there is a material risk of a default. We believe that the loss of any one customer would not have an adverse effect on our ability to sell our natural gas, oil and NGL production. See “Commodities Risk” below for discussion of credit risk associated with commodities trading.

47

Interest Rate Risk

As of March 31, 2021, we had approximately $2,471 million principal amount of outstanding senior notes with a weighted average interest rate of 7.02% and $567 million of borrowings under our revolving credit facility.  At March 31, 2021, we had a long-term issuer credit rating of Ba2 by Moody’s, a long-term debt rating of BB- by S&P and a long-term issuer default rating of BB by Fitch Ratings.  In April 2020, S&P downgraded our bond rating to BB-, which had the effect of increasing the interest rate on our 2025 Notes to 6.45% following the July 23, 2020 interest payment date. The first coupon payment to the bondholders at the higher interest rate was paid in January 2021. Any further upgrades or downgrades in our public debt ratings by Moody’s or S&P could decrease or increase our cost of funds, respectively.

	Expected Maturity Date
($ in millions)	2022			2023			2024			2025			2026			Thereafter			Total
Fixed rate payments (1)	$	207		$	—		$	—		$	856		$	618		$	790		$	2,471
Weighted average interest rate	4.10		%	—		%	—		%	6.45		%	7.50		%	8.03		%	7.02		%
Variable rate payments (1)	$	—		$	—		$	567		$	—		$	—		$	—		$	567
Weighted average interest rate	—		%	—		%	2.09		%	—		%	—		%	—		%	2.09		%

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

Commodities Risk

We use over-the-counter fixed price swap agreements and options to protect sales of our production against the inherent risks of adverse price fluctuations or locational pricing differences between a published index and the NYMEX futures market.  These swaps and options include transactions in which one party will pay a fixed price (or variable price) for a notional quantity in exchange for receiving a variable price (or fixed price) based on a published index (referred to as price swaps) and transactions in which parties agree to pay a price based on two different indices (referred to as basis swaps).

The primary market risks relating to our derivative contracts are the volatility in market prices and basis differentials for our production.  However, the market price risk is offset by the gain or loss recognized upon the related sale or purchase of the production that is financially protected.  Credit risk relates to the risk of loss as a result of non-performance by our counterparties.  The counterparties are primarily major banks and integrated energy companies that management believes present minimal credit risks.  The credit quality of each counterparty and the level of financial exposure we have to each counterparty are closely monitored to limit our credit risk exposure.  Additionally, we perform both quantitative and qualitative assessments of these counterparties based on their credit ratings and credit default swap rates where applicable.  We have not incurred any counterparty losses related to non-performance and do not anticipate any losses given the information we have currently.  However, we cannot be certain that we will not experience such losses in the future.  The fair value of our derivative assets and liabilities includes a non-performance risk factor. We refer you to Note 8 and Note 10 of the consolidated financial statements included in this Quarterly Report for additional details about our derivative instruments and their fair value.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

We have performed an evaluation under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer (Interim), of the effectiveness of our disclosure controls and procedures, as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act.  Our disclosure controls and procedures are the controls and other procedures that we have designed to ensure that we record, process, accumulate and communicate information to our management, including our Chief Executive Officer and Chief Financial Officer (Interim), to allow timely decisions regarding required disclosures and submission within the time periods specified in the SEC’s rules and forms.  All internal control systems, no matter how well designed, have inherent limitations.  Therefore, even those determined to be effective can provide only a level of reasonable assurance with respect to financial statement preparation and presentation.  Based on the evaluation, our management, including our Chief Executive Officer and Chief Financial Officer (Interim), concluded that our disclosure controls and procedures were effective as of March 31, 2021 at a reasonable assurance level.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the quarter ended March 31, 2021 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

48

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Refer to “Litigation” and “Environmental Risk” in Note 12 to the consolidated financial statements included in Item 1 of Part I of this Quarterly Report for a discussion of the Company’s legal proceedings.

ITEM 1A. RISK FACTORS

There were no additions or material changes to our risk factors as disclosed in Item 1A of Part I in the Company’s 2020 Annual Report.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Not applicable.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4. MINE SAFETY DISCLOSURES

Our sand mine location, which supported our former Fayetteville Shale business, is subject to regulation by the Federal Mine Safety and Health Administration under the Federal Mine Safety and Health Act of 1977.  Information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K (17 CFR 229.106) is included in Exhibit 95.1 to this Quarterly Report. On February 10, 2021, we sold our sand mine to a third party and, as a result, no longer own or operate any mines.

ITEM 5. OTHER INFORMATION

Not applicable.

ITEM 6. EXHIBITS

(2.1)	Agreement and Plan of Merger, dated as of August 12, 2020, by and between Southwestern Energy Company and Montage Resources Corporation (Incorporated by reference to Exhibit 2.1 to the Registrant’s Current Report on Form 8-K/A filed on August 12, 2020)
(3.1)	Amended and Restated Certificate of Incorporation of Southwestern Energy Company. (Incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed May 24, 2010)
(3.2)	Amended and Restated Bylaws of Southwestern Energy Company, as amended on April 28, 2020 (Incorporated by reference to Exhibit 3.2 to the Registrant’s Quarterly Report on Form 10-Q filed April 30, 2020)
(31.1)*	Certification of CEO filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
(31.2)*	Certification of CFO filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
(32.1)*	Certification of CEO furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
(32.2)*	Certification of CFO furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
(95.1)*	Mine Safety Disclosure
(101.INS)	Inline Interactive Data File Instance Document
(101.SCH)	Inline Interactive Data File Schema Document
(101.CAL)	Inline Interactive Data File Calculation Linkbase Document
(101.LAB)	Inline Interactive Data File Label Linkbase Document
(101.PRE)	Inline Interactive Data File Presentation Linkbase Document
(101.DEF)	Inline Interactive Data File Definition Linkbase Document
(104.1)	Cover Page Interactive Data File – the cover page from this Quarterly Report on Form 10-Q, formatted in inline XBRL (included within the Exhibit 101 attachments)

*Filed herewith

49

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		SOUTHWESTERN ENERGY COMPANY
		Registrant
Dated:	April 29, 2021	/s/ MICHAEL E. HANCOCK
		Michael E. Hancock Vice President and Chief Financial Officer (Interim)

50

EX-31.1

Exhibit 31.1

CERTIFICATION

I, William J. Way, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Southwestern Energy Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	April 29, 2021	/s/ WILLIAM J. WAY
		William J. Way
		Director, President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Michael E. Hancock, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Southwestern Energy Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	April 29, 2021	/s/ MICHAEL E. HANCOCK
		Michael E. Hancock
		Vice President and Chief Financial Officer - Interim

EX-32.1

Exhibit 32.1

CERTIFICATION

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code)

In connection with the Quarterly Report of Southwestern Energy Company, a Delaware corporation (the “Corporation”) on Form 10-Q for the quarter ended March 31, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, William J. Way, Director, President and Chief Executive Officer of the Corporation, certify to my knowledge, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350), that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

Dated:   April 29, 2021	/s/ WILLIAM J. WAY
	William J. Way
	Director, President and Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code)

In connection with the Quarterly Report of Southwestern Energy Company, a Delaware corporation (the “Corporation”) on Form 10-Q for the quarter ended March 31, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Michael E. Hancock, Vice President and Chief Financial Officer - Interim of the Corporation, certify to my knowledge, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350), that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

Dated:     April 29, 2021	/s/ MICHAEL E. HANCOCK
	Michael E. Hancock
	Vice President and Chief Financial Officer - Interim

EX-95.1

EXHIBIT 95.1

Mine Safety Disclosure

The following disclosure is provided pursuant to Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which requires certain disclosures by companies required to file periodic reports under the Securities Exchange Act of 1934, as amended, that operate mines regulated under the Federal Mine Safety and Health Act of 1977.

The table that follows reflects citations, orders, violations and proposed assessments issued by the Mine Safety and Health Administration (the “MSHA”) to A. W. Realty, LLC, an indirect wholly owned subsidiary of Southwestern Energy Company.  The disclosure is with respect to the three months ended March 31, 2021.  Due to timing and other factors, the data may not agree with the mine data retrieval system maintained by the MSHA at www.MSHA.gov.

Southwestern Energy Company

Mine Safety Disclosure

Three Months Ended March 31, 2021

(Unaudited)

Operation(1)

Section 104 S&S Citations

Section 104(b) Orders

Section 104(d) Citations and Orders

Section 110(b)(2) Violations

Section 107(a) Orders

Section 107(a) Orders

Total Dollar Value of Proposed MSHA Assessments (2)

Total Number of Mining Related  Fatalities

Received Notice of Pattern of Violations Under Section 104(e)

Received Notice of Potential to Have Pattern Under Section 104(e)

Legal Actions Pending as of the Last Day of  Period

Legal Actions Initiated During  Period

Legal Actions Resolved During Period

A. W. Realty Company, LLC

—

—

—

—

—

—

$—

—

—

—

—

Total

$—

No

No

(1)The definition of mine under section 3 of the Mine Act includes the mine, as well as other items used in, or to be used in, or resulting from, the work of extracting minerals, such as land, structures, facilities, equipment, machines, tools, and preparation facilities. Unless otherwise indicated, any of these other items associated with a single mine have been aggregated in the totals for that mine.

(2)The whole-dollar amounts included are the total dollar value of all proposed or outstanding assessments, regardless of classification, received from MSHA on or before March 31, 2021 regardless of whether the assessment has been challenged or appealed, for alleged violations occurring during the three month period ended March 31, 2021. Citations and orders can be contested and appealed, and as part of that process, are sometimes reduced in severity and amount, and are sometimes dismissed. The number of citations, orders, and proposed assessments vary by inspector and also vary depending on the size and type of the operation.

XML

COVER PAGE - shares	3 Months Ended
	Mar. 31, 2021	Apr. 27, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2021
Document Transition Report	false
Entity File Number	001-08246
Entity Registrant Name	Southwestern Energy Company
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Entity Central Index Key	0000007332
Current Fiscal Year End Date	--12-31
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	71-0205415
Entity Address, Address Line One	10000 Energy Drive
Entity Address, City or Town	Spring
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77389
City Area Code	832
Local Phone Number	796-1000
Title of 12(b) Security	Common Stock, Par Value $0.01
Trading Symbol	SWN
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		676,850,759

XML

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Operating Revenues:
Total operating revenues	$ 1,072	$ 592
Operating Costs and Expenses:
Operating expenses	250	193
General and administrative expenses	38	26
Montage merger-related expenses	1	0
Restructuring charges	6	10
Depreciation, depletion and amortization	96	113
Impairments	0	1,479
Taxes, other than income taxes	24	13
Total operating costs and expense	771	2,082
Operating Income (Loss)	301	(1,490)
Interest Expense:
Interest on debt	50	40
Other interest charges	3	2
Interest capitalized	(22)	(23)
Total interest expense	31	19
Gain (Loss) on Derivatives	(191)	339
Gain on Early Extinguishment of Debt	0	28
Other Income, Net	1	1
Income (Loss) Before Income Taxes	80	(1,141)
Provision (Benefit) for Income Taxes:
Current	0	(2)
Deferred	0	408
Total provision (benefit) from income taxes	0	406
Net Income (Loss)	$ 80	$ (1,547)
Earnings (Loss) Per Common Share:
Basic (in dollars per share)	$ 0.12	$ (2.86)
Diluted (in dollars per share)	$ 0.12	$ (2.86)
Weighted Average Common Shares Outstanding:
Basic (in shares)	675,385,145	540,308,491
Diluted (in shares)	679,867,825	540,308,491
Gas sales
Operating Revenues:
Total operating revenues	$ 464	$ 248
Oil sales
Operating Revenues:
Total operating revenues	81	52
NGL sales
Operating Revenues:
Total operating revenues	173	50
Marketing
Operating Revenues:
Total operating revenues	352	239
Other
Operating Revenues:
Total operating revenues	2	3
Marketing purchases
Operating Costs and Expenses:
Marketing purchases	$ 356	$ 248

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2021	Mar. 31, 2020
Statement of Comprehensive Income [Abstract]
Net income (loss)		$ 80	$ (1,547)
Change in value of pension and other postretirement liabilities:
Amortization of prior service cost and net loss included in net periodic pension cost	[1]	0	0
Comprehensive income (loss)		$ 80	$ (1,547)

[1] The amortization of prior service costs and net loss along with corresponding tax benefits for the three months ended March 31, 2021 and March 31, 2020 were immaterial.

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 4	$ 13
Accounts receivable, net	400	368
Derivative assets	157	241
Other current assets	41	49
Total current assets	602	671
Natural gas and oil properties, using the full cost method, including $1,488 million as of March 31, 2021 and $1,472 million as of December 31, 2020 excluded from amortization	27,532	27,261
Other	493	523
Less: Accumulated depreciation, depletion and amortization	(23,741)	(23,673)
Total property and equipment, net	4,284	4,111
Operating lease assets	155	163
Deferred tax assets	0	0
Other long-term assets	206	215
Total long-term assets	361	378
TOTAL ASSETS	5,247	5,160
Current liabilities:
Current portion of long-term debt	207	0
Accounts payable	639	573
Taxes payable	67	74
Interest payable	55	58
Derivative liabilities	338	245
Current operating lease liabilities	41	42
Other current liabilities	23	20
Total current liabilities	1,370	1,012
Long-term debt	2,812	3,150
Long-term operating lease liabilities	111	117
Long-term derivative liabilities	168	183
Pension and other postretirement liabilities	40	45
Other long-term liabilities	160	156
Total long-term liabilities	3,291	3,651
Commitments and contingencies (Note 12)
Equity:
Common stock, $0.01 par value; 1,250,000,000 shares authorized; issued 721,195,122 shares as of March 31, 2021 and 718,795,700 shares as of December 31, 2020	7	7
Additional paid-in capital	5,102	5,093
Accumulated deficit	(4,283)	(4,363)
Accumulated other comprehensive loss	(38)	(38)
Common stock in treasury, 44,353,224 shares as of March 31, 2021 and December 31, 2020	(202)	(202)
Total equity	586	497
TOTAL LIABILITIES AND EQUITY	$ 5,247	$ 5,160

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Natural gas and oil properties, using the full cost method, costs excluded from amortization	$ 1,488	$ 1,472
Common stock, par value (in dollars per shares)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	1,250,000,000	1,250,000,000
Common stock, shares issued (in shares)	721,195,122	718,795,700
Treasury stock, shares (in shares)	44,353,224	44,353,224

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash Flows From Operating Activities:
Net income (loss)	$ 80	$ (1,547)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization	96	113
Amortization of debt issuance costs	2	1
Impairments	0	1,479
Deferred income taxes	0	408
(Gain) loss on derivatives, unsettled	169	(246)
Stock-based compensation	0	1
Gain on early extinguishment of debt	0	(28)
Change in assets and liabilities:
Accounts receivable	(33)	53
Accounts payable	33	(86)
Taxes payable	(8)	(6)
Interest payable	(2)	1
Inventories	9	8
Other assets and liabilities	1	9
Net cash provided by operating activities	347	160
Cash Flows From Investing Activities:
Capital investments	(227)	(228)
Proceeds from sale of property and equipment	1	0
Other	(1)	0
Net cash used in investing activities	(227)	(228)
Cash Flows From Financing Activities:
Payments on long-term debt	0	(52)
Payments on revolving credit facility	(923)	(500)
Borrowings under revolving credit facility	790	615
Change in bank drafts outstanding	7	5
Cash paid for tax withholding	(3)	0
Net cash provided by (used in) financing activities	(129)	68
Decrease in cash and cash equivalents	(9)	0
Cash and cash equivalents at beginning of year	13	5
Cash and cash equivalents at end of period	$ 4	$ 5

XML

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)	Common Stock in Treasury
Balance (in shares) at Dec. 31, 2019		585,555,923				44,353,224
Balance beginning at Dec. 31, 2019	$ 3,246	$ 6	$ 4,726	$ (1,251)	$ (33)	$ (202)
Comprehensive income:
Net (loss) income	(1,547)			(1,547)
Comprehensive income (loss)	(1,547)
Stock-based compensation	1		1
Issuance of restricted stock (in shares)		12,397
Cancellation of restricted stock (in shares)		(167,130)
Restricted units granted (in shares)		1,005,976
Restricted units granted	1		1
Tax withholding - stock compensation (in shares)		(383,731)
Balance (in shares) at Mar. 31, 2020		586,023,435				44,353,224
Balance ending at Mar. 31, 2020	1,701	$ 6	4,728	(2,798)	(33)	$ (202)
Balance (in shares) at Dec. 31, 2020		718,795,700				44,353,224
Balance beginning at Dec. 31, 2020	497	$ 7	5,093	(4,363)	(38)	$ (202)
Comprehensive income:
Net (loss) income	80			80
Comprehensive income (loss)	80
Issuance of restricted stock (in shares)		10,067
Cancellation of restricted stock (in shares)		(405)
Restricted units granted (in shares)		2,136,882
Restricted units granted	8		8
Performance units vested (in shares)		1,001,505
Performance units vested	4		4
Tax withholding - stock compensation (in shares)		(748,627)
Tax withholding – stock compensation	(3)		(3)
Balance (in shares) at Mar. 31, 2021		721,195,122				44,353,224
Balance ending at Mar. 31, 2021	$ 586	$ 7	$ 5,102	$ (4,283)	$ (38)	$ (202)

XML

BASIS OF PRESENTATION

3 Months Ended

Mar. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BASIS OF PRESENTATION

BASIS OF PRESENTATION

Southwestern Energy Company (including its subsidiaries, collectively “Southwestern” or the “Company”) is an independent energy company engaged in natural gas, oil and NGL exploration, development and production (“E&P”). The Company is also focused on creating and capturing additional value through its marketing business (“Marketing”), which was previously referred to as “Midstream” when it included the operation of gathering systems. Southwestern conducts most of its business through subsidiaries and operates principally in two segments: E&P and Marketing.

E&P. Southwestern’s primary business is the exploration for and production of natural gas, oil and NGLs, with ongoing operations focused on the development of unconventional natural gas and oil reservoirs located in Pennsylvania, West Virginia and Ohio. The Company’s operations in northeast Pennsylvania, herein referred to as “Northeast Appalachia,” are primarily focused on the unconventional natural gas reservoir known as the Marcellus Shale. Operations in West Virginia, Ohio and southwest Pennsylvania, herein referred to as “Southwest Appalachia,” are focused on the Marcellus Shale, the Utica and the Upper Devonian unconventional natural gas and oil reservoirs. Collectively, Southwestern refers to its properties located in Pennsylvania, Ohio and West Virginia as “Appalachia.” The Company also operates drilling rigs located in Appalachia, and provides certain oilfield products and services, principally serving the Company’s E&P activities through vertical integration.

Marketing. Southwestern’s marketing activities capture opportunities that arise through the marketing and transportation of natural gas, oil and NGLs primarily produced in its E&P operations.

The accompanying consolidated financial statements were prepared using accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission.  Certain information relating to the Company’s organization and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been appropriately condensed or omitted in this Quarterly Report.  The comparability of certain 2021 amounts to prior periods could be impacted as a result of the Merger (as defined below) with Montage Resources (“Montage”) in November 2020. The Company believes the disclosures made are adequate to make the information presented not misleading.

The consolidated financial statements contained in this report include all normal and recurring material adjustments that, in the opinion of management, are necessary for a fair statement of the financial position, results of operations and cash flows for the interim periods presented herein.  It is recommended that these consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (“2020 Annual Report”).

The Company’s significant accounting policies, which have been reviewed and approved by the Audit Committee of the Company’s Board of Directors, are summarized in Note 1 in the Notes to the Consolidated Financial Statements included in the Company’s 2020 Annual Report.

XML

ACQUISITION

3 Months Ended

Mar. 31, 2021

Business Combinations [Abstract]

ACQUISITION

ACQUISITION

Montage Resources Merger

On August 12, 2020, Southwestern entered into an Agreement and Plan of Merger (the “Agreement and Plan of Merger”) with Montage whereby Montage would merge with and into Southwestern, with Southwestern continuing as the surviving company (the "Merger"). On November 12, 2020, Montage’s stockholders voted to approve the Merger and it was made effective on November 13, 2020. The Merger added to Southwestern’s oil and gas portfolio in Appalachia.

In exchange for each share of Montage common stock, Montage stockholders received 1.8656 shares of Southwestern common stock, plus cash in lieu of any fractional share of Southwestern common stock that otherwise would have been issued, based on the average price of $3.05 per share of Southwestern common stock on the NYSE on November 13, 2020. Following the closing of the Merger, Southwestern's existing shareholders and Montage's existing shareholders owned approximately 90% and 10%, respectively, of the outstanding shares of the combined company.

In anticipation of the Merger, in August 2020 Southwestern issued $350 million of new senior unsecured notes and 63,250,000 shares of common stock for $152 million after deducting underwriting discounts and offering expenses. The Company used the net proceeds from the debt and common stock offerings and borrowings under its revolving credit facility to fund a redemption of $510 million aggregate principal amount of Montage's outstanding 8.875% senior notes due 2023 (the "Montage Notes") and related accrued interest in connection with the closing of the Merger. See Note 7 and Note 11 for additional information.

The Merger constituted a business combination and was accounted for using the acquisition method of accounting. The following table presents the fair value of consideration transferred to Montage stockholders as a result of the Merger:

(in millions, except share, per share amounts)	As of November 13, 2020
Shares of Southwestern common stock issued in respect of outstanding Montage common stock	67,311,166
Shares of Southwestern common stock issued in respect of Montage stock-based awards	2,429,682
	69,740,848
NYSE closing price per share of Southwestern common shares on November 13, 2020	$	3.05
Total consideration (fair value of Southwestern common shares issued)	$	213
Increase in Southwestern common stock ($0.01 par value per share)	1
Increase in Southwestern additional paid-in capital	$	212

The assets acquired and liabilities assumed were recorded at their preliminary estimated fair values at the date of the Merger. The following table sets forth the fair value of the assets acquired and liabilities assumed as of the acquisition date. Although the purchase price allocation is substantially complete as of the date of this filing, there may be further adjustments to the Company’s natural gas and oil properties as the studies necessary to determine the fair value are finalized. These amounts will be finalized no later than one year from the acquisition date. For the three months ended March 31, 2021 there were no changes to the allocation presented in the 2020 Form 10-K.

(in millions)	As of November 13, 2020
Consideration:
Fair value of Southwestern’s stock issued on November 13, 2020	$	213
Fair Value of Assets Acquired:
Cash and cash equivalents	3
Accounts receivable	73
Other current assets	1
Commodity derivative assets	11
Evaluated oil and gas properties	1,012
Unevaluated oil and gas properties	90
Other property, plant and equipment	28
Other long-term assets	26
Total assets acquired	1,244
Fair Value of Liabilities Assumed:
Accounts payable	145
Other current liabilities	49
Derivative liabilities	70
Revolving credit facility	200
Senior unsecured notes	522
Asset retirement obligations	28
Other noncurrent liabilities	17
Total liabilities assumed	1,031
Net Assets Acquired and Liabilities Assumed	$	213

For the three months ended March 31, 2021, revenues and operating income associated with the operations acquired through the Merger totaled $130 million and $61 million, respectively.

The following table presents selected unaudited pro forma condensed financial information for the three months ended March 31, 2020 as if the Merger had occurred on January 1, 2019:

(in millions, except per share amounts)	Pro forma results for the three months ended March 31, 2020
Revenues	$	725
Net income (loss) attributable to common stock	$	(1,498)

The unaudited pro forma information is not necessarily indicative of the operating results that would have occurred had the Merger been completed at January 1, 2019, nor is it necessarily indicative of future operating results of the combined entity. The unaudited pro forma information gives effect to the Merger and related equity and debt issuances along with the use of proceeds therefrom as if they had occurred on January 1, 2019. The unaudited pro forma information for 2020 is a result of combining the statements of operations of Southwestern with the pre-Merger results of Montage from January 1, 2020, and 2019 and included adjustments for revenues and direct expenses. The pro forma results exclude any cost savings anticipated as a result of the Merger and the impact of any Merger-related costs. The pro forma results include adjustments to DD&A (depreciation, depletion and amortization) based on the purchase price allocated to property, plant, and equipment and the estimated useful lives as well as adjustments to interest expense. Interest expense was adjusted to reflect the retirement of the Montage senior notes, the Montage credit facility, all related accrued interest and the associated decrease in amortization of issuance costs related to the Montage notes and revolving line of credit. This decrease was partially offset by increases in interest on debt associated with the issuance of $350 million in new 8.375% Senior Notes due 2028 related to the Southwestern debt offering and borrowings under Southwestern’s credit facility used to pay off the Montage notes, Montage credit facility and related accrued interest. Management believes the estimates and assumptions are reasonable, and the relative effects of the Merger are properly reflected.

Montage Merger-Related Expenses

For the three months ended March 31, 2021, the Company incurred $1 million in Merger-related expenses primarily related to one-time severance costs and the accelerated vesting of certain Montage share-based awards, based on the terms of the Agreement and Plan of Merger, for former Montage employees that continued to assist with the transition into 2021.

XML

RESTRUCTURING CHARGES

3 Months Ended

Mar. 31, 2021

Restructuring and Related Activities [Abstract]

RESTRUCTURING CHARGES

RESTRUCTURING CHARGES

On February 24, 2021, the Company notified employees of a workforce reduction plan as part of an ongoing strategic effort to reposition its portfolio, optimize operational performance and improve margins. Affected employees were offered a severance package, which included a one-time payment depending on length of service and, if applicable, the current value of unvested long-term incentive awards that were forfeited. These costs were recognized as restructuring charges for the three months ended March 31, 2021, and were substantially complete by the end of the first quarter of 2021.

In February 2020, the Company notified employees of a workforce reduction plan as a result of a strategic realignment of the Company’s organizational structure. Affected employees were offered a severance package, which included a one-time payment depending on length of service and, if applicable, the current value of unvested long-term incentive awards that were forfeited. These costs were recognized as restructuring charges for the three months ended March 31, 2020, and were substantially complete by the end of the first quarter of 2020.

The following table presents a summary of the restructuring charges included in Operating Income (Loss) for the three months ended March 31, 2021 and 2020:

	For the three months ended March 31,
(in millions)	2021		2020
Severance (including payroll taxes) (1)	$	6	$	10

(1)Total restructuring charges were $6 million and $10 million for the Company’s E&P segment for the three months ended March 31, 2021 and March 31, 2020, respectively.

The following table presents a reconciliation of the liability associated with the Company’s restructuring activities at March 31, 2021, which is reflected in accounts payable on the consolidated balance sheet:

(in millions)
Liability at December 31, 2020	$	3
Additions	6
Distributions	(9)
Liability at March 31, 2021	$	—

XML

REVENUE RECOGNITION

3 Months Ended

Mar. 31, 2021

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

REVENUE RECOGNITION

Revenues from Contracts with Customers

Natural gas and liquids.  Natural gas, oil and NGL sales are recognized when control of the product is transferred to the customer at a designated delivery point.  The pricing provisions of the Company’s contracts are primarily tied to a market index with certain adjustments based on factors such as delivery, quality of the product and prevailing supply and demand conditions in the geographic areas in which the Company operates.  Under the Company’s sales contracts, the delivery of each unit of natural gas, oil and NGLs represents a separate performance obligation, and revenue is recognized at the point in time when the performance obligations are fulfilled.  There is no significant financing component to the Company’s revenues as payment terms are typically within 30 to 60 days of control transfer.  Furthermore, consideration from a customer corresponds directly with the value to the customer of the Company’s performance completed to date.  As a result, the Company recognizes revenue in the amount for which the Company has a right to invoice and has not disclosed information regarding its remaining performance obligations.

The Company records revenue from its natural gas and liquids production in the amount of its net revenue interest in sales from its properties. Accordingly, natural gas and liquid sales are not recognized for deliveries in excess of the Company’s net revenue interest, while natural gas and liquid sales are recognized for any under-delivered volumes.  Production imbalances are generally recorded as receivables and payables and not contract assets or contract liabilities as the imbalances are between the Company and other working interest owners, not the end customer.

Marketing.  The Company, through its marketing affiliate, markets natural gas, oil and NGLs for its affiliated E&P company as well as other joint interest owners that choose to market with the Company.  In addition, the Company markets some products purchased from third parties.  Marketing revenues for natural gas, oil and NGL sales are recognized when control of the product is transferred to the customer at a designated delivery point.  The pricing provisions of the Company’s contracts are primarily tied to market indices with certain adjustments based on factors such as delivery, quality of the product and prevailing supply and demand conditions.  Under the Company’s marketing contracts, the delivery of each unit of natural gas, oil and NGLs represents a separate performance obligation, and revenue is recognized at the point in time when the performance obligations are fulfilled.  Customers are invoiced and revenues are recorded each month as natural gas, oil and NGLs are delivered, and payment terms are typically within 30 to 60 days of control transfer.  Furthermore, consideration from a customer corresponds directly with the value to the customer of the Company’s performance completed to date.  As a result, the Company recognizes revenue in the amount for which the Company has a right to invoice and has not disclosed information regarding its remaining performance obligations.

Disaggregation of Revenues

The Company presents a disaggregation of E&P revenues by product on the consolidated statements of operations net of intersegment revenues.  The following table reconciles operating revenues as presented on the consolidated statements of operations to the operating revenues by segment:

(in millions)	E&P		Marketing		Intersegment Revenues		Total
Three months ended March 31, 2021
Gas sales	$	451	$	—	$	13	$	464
Oil sales	80		—		1		81
NGL sales	173		—		—		173
Marketing	—		996		(644)		352
Other (1)	1		1		—		2
Total	$	705	$	997	$	(630)	$	1,072
Three months ended March 31, 2020
Gas sales	$	239	$	—	$	9	$	248
Oil sales	52		—		—		52
NGL sales	50		—		—		50
Marketing	—		548		(309)		239
Other (2)	3		—		—		3
Total	$	344	$	548	$	(300)	$	592

(1)For the three months ended March 31, 2021, other E&P revenues consists primarily of gains on purchaser imbalances associated with certain NGLs and other Marketing revenues consists primarily of sales of gas from storage.

(2)For the three months ended March 31, 2020, other E&P revenues consists primarily of gains on purchaser imbalances associated with certain NGLs.

Associated E&P revenues are also disaggregated for analysis on a geographic basis by the core areas in which the Company operates, which are in Pennsylvania, West Virginia and Ohio.

	For the three months ended March 31,
(in millions)	2021		2020
Northeast Appalachia	$	263	$	195
Southwest Appalachia	441		149
Other	1		—
Total	$	705	$	344

Receivables from Contracts with Customers

The following table reconciles the Company’s receivables from contracts with customers to consolidated accounts receivable as presented on the consolidated balance sheet:

(in millions)	March 31, 2021		December 31, 2020
Receivables from contracts with customers	$	381	$	350
Other accounts receivable	19		18
Total accounts receivable	$	400	$	368

Amounts recognized against the Company’s allowance for doubtful accounts related to receivables arising from contracts with customers were immaterial for the three months ended March 31, 2021 and 2020.  The Company has no contract assets or contract liabilities associated with its revenues from contracts with customers.

XML

CASH AND CASH EQUIVALENTS

3 Months Ended

Mar. 31, 2021

Cash and Cash Equivalents [Abstract]

CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS

The following table presents a summary of cash and cash equivalents as of March 31, 2021 and December 31, 2020:

(in millions)	March 31, 2021		December 31, 2020
Cash	$	4	$	13
Marketable securities (1)	—		—
Total	$	4	$	13

(1)Typically consists of government stable value money market funds.

XML

NATURAL GAS AND OIL PROPERTIES

3 Months Ended

Mar. 31, 2021

Oil and Gas Exploration and Production Industries Disclosures [Abstract]

NATURAL GAS AND OIL PROPERTIES

NATURAL GAS AND OIL PROPERTIES

The Company utilizes the full cost method of accounting for costs related to the exploration, development and acquisition of natural gas and oil properties.  Under this method, all such costs (productive and nonproductive), including salaries, benefits and other internal costs directly attributable to these activities, are capitalized on a country-by-country basis and amortized over the estimated lives of the properties using the units-of-production method.  These capitalized costs are subject to a ceiling test that limits such pooled costs, net of applicable deferred taxes, to the aggregate of the present value of future net revenues attributable to proved natural gas, oil and NGL reserves discounted at 10% (standardized measure).  Any costs in excess of the ceiling are written off as a non-cash expense.  The expense may not be reversed in future periods, even though higher natural gas, oil and NGL prices may subsequently increase the ceiling.  Companies using the full cost method are required to use the average quoted price from the first day of each month from the previous 12 months, including the impact of derivatives designated for hedge accounting, to calculate the ceiling value of their reserves. The Company had no hedge positions that were designated for hedge accounting as of March 31, 2021. Prices used to calculate the ceiling value of reserves were as follows:

	March 31, 2021		March 31, 2020
Natural gas (per MMBtu)	$	2.16	$	2.30
Oil (per Bbl)	$	40.01	$	55.77
NGLs (per Bbl)	$	13.57	$	9.96

Using the average quoted prices above, adjusted for market differentials, the Company’s net book value of its United States natural gas and oil properties did not exceed the ceiling amount at March 31, 2021, and the Company had no derivative positions that were designated for hedge accounting as of March 31, 2021. Decreases in market prices as well as changes in production rates, levels of reserves, evaluation of costs excluded from amortization, future development costs and production costs could result in future ceiling test impairments.

No impairment expense was recorded for the three months ended March 31, 2021 in relation to the recently acquired Montage natural gas and oil properties. These properties were recorded at fair value as of November 13, 2020, in accordance with Accounting Standards Codification (“ASC”) Topic 820 – Fair Value Measurement. In the fourth quarter of 2020, pursuant to SEC guidance, the Company determined that the fair value of the properties acquired at the closing of the Merger clearly exceeded the related full-cost ceiling limitation beyond a reasonable doubt and received a waiver from the SEC to exclude the properties acquired in the Merger from the ceiling test calculation. This waiver was granted for all reporting periods through and including the quarter ending September 30, 2021, as long as the Company can continue to demonstrate that the fair value of properties acquired clearly exceeds the full cost ceiling limitation beyond a reasonable doubt in each reporting period. As part of the waiver received from the SEC, the Company is required to disclose what the full cost ceiling test impairment amounts for all periods presented in each applicable quarterly and annual filing would have been if the waiver had not been granted. The fair value of the properties acquired in the Merger was based on forward strip natural gas and oil pricing existing at the date of the Merger, and the Company affirmed that there has not been a material decline to the fair value of these acquired assets since the Merger. The properties acquired in the Merger have an unamortized cost at March 31, 2021 of $1,102 million. Due to the improvement in commodity prices in the first quarter of 2021, no impairment charge would have been recorded for the three months ended March 31, 2021 had the recently acquired Montage natural gas and oil properties been included in the full cost ceiling test.

The Company’s net book value of its United States natural gas and oil properties exceeded the ceiling by $1.5 billion at March 31, 2020, resulting in a non-cash ceiling test impairment for the three months ended March 31, 2020.

XML

EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

EARNINGS PER SHARE

EARNINGS PER SHARE

Basic earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding during the reportable period.  The diluted earnings per share calculation adds to the weighted average number of common shares outstanding: the incremental shares that would have been outstanding assuming the exercise of dilutive stock options, the vesting of unvested restricted shares of common stock, restricted stock units and performance units.  An antidilutive impact is an increase in earnings per share or a reduction in net loss per share resulting from the conversion, exercise or contingent issuance of certain securities.

In August 2020, the Company completed an underwritten public offering of 63,250,000 shares of its common stock with an offering price to the public of $2.50 per share. Net proceeds after deducting underwriting discounts and offering expenses were approximately $152 million. See Note 2 for additional details regarding the Company’s use of proceeds from the equity offering.

The following table presents the computation of earnings per share for the three months ended March 31, 2021 and 2020:

	For the three months ended March 31,
(in millions, except share/per share amounts)	2021		2020
Net income (loss)	$	80	$	(1,547)
Number of common shares:
Weighted average outstanding	675,385,145		540,308,491
Issued upon assumed exercise of outstanding stock options	—		—
Effect of issuance of non-vested restricted common stock	870,541		—
Effect of issuance of non-vested restricted units	804,944		—
Effect of issuance of non-vested performance units	2,807,195		—
Weighted average and potential dilutive outstanding	679,867,825		540,308,491
Earnings per common share
Basic	$	0.12	$	(2.86)
Diluted	$	0.12	$	(2.86)

The following table presents the common stock shares equivalent excluded from the calculation of diluted earnings per share for the three months ended March 31, 2021 and 2020, as they would have had an antidilutive effect:

	For the three months ended March 31,
	2021	2020
Unexercised stock options	3,795,091	4,584,563
Unvested share-based payment	—	1,006,860
Restricted stock units	3,987,291	1,312,293
Performance units	—	2,275,498
Total	7,782,382	9,179,214

XML

DERIVATIVES AND RISK MANAGEMENT

3 Months Ended

Mar. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVES AND RISK MANAGEMENT

DERIVATIVES AND RISK MANAGEMENT

The Company is exposed to volatility in market prices and basis differentials for natural gas, oil and NGLs which impacts the predictability of its cash flows related to the sale of those commodities.  These risks are managed by the Company’s use of certain derivative financial instruments.  As of March 31, 2021, the Company’s derivative financial instruments consisted of fixed price swaps, two-way costless collars, three-way costless collars, basis swaps, call options, swaptions and interest rate swaps.  A description of the Company’s derivative financial instruments is provided below:

Fixed price swaps	If the Company sells a fixed price swap, the Company receives a fixed price for the contract and pays a floating market price to the counterparty.  If the Company purchases a fixed price swap, the Company receives a floating market price for the contract and pays a fixed price to the counterparty.
Two-way costless collars	Arrangements that contain a fixed floor price (“purchased put option”) and a fixed ceiling price (“sold call option”) based on an index price which, in aggregate, have no net cost.  At the contract settlement date, (1) if the index price is higher than the ceiling price, the Company pays the counterparty the difference between the index price and ceiling price, (2) if the index price is between the floor and ceiling prices, no payments are due from either party, and (3) if the index price is below the floor price, the Company will receive the difference between the floor price and the index price.
Three-way costless collars	Arrangements that contain a purchased put option, a sold call option and a sold put option based on an index price that, in aggregate, have no net cost.  At the contract settlement date, (1) if the index price is higher than the sold call strike price, the Company pays the counterparty the difference between the index price and sold call strike price, (2) if the index price is between the purchased put strike price and the sold call strike price, no payments are due from either party, (3) if the index price is between the sold put strike price and the purchased put strike price, the Company will receive the difference between the purchased put strike price and the index price, and (4) if the index price is below the sold put strike price, the Company will receive the difference between the purchased put strike price and the sold put strike price.
Basis swaps	Arrangements that guarantee a price differential for natural gas from a specified delivery point.  If the Company sells a basis swap, the Company receives a payment from the counterparty if the price differential is greater than the stated terms of the contract and pays the counterparty if the price differential is less than the stated terms of the contract.  If the Company purchases a basis swap, the Company pays the counterparty if the price differential is greater than the stated terms of the contract and receives a payment from the counterparty if the price differential is less than the stated terms of the contract.

Options (Calls and Puts)	The Company purchases and sells options in exchange for premiums.  If the Company purchases a call option, the Company receives from the counterparty the excess (if any) of the market price over the strike price of the call option at the time of settlement, but if the market price is below the call’s strike price, no payment is due from either party.  If the Company sells a call option, the Company pays the counterparty the excess (if any) of the market price over the strike price of the call option at the time of settlement, but if the market price is below the call’s strike price, no payment is due from either party. If the Company purchases a put option, the Company receives from the counterparty the excess (if any) of the strike price over the market price of the put option at the time of settlement, but if the market price is above the put’s strike price, no payment is due from either party. If the Company sells a put option, the Company pays the counterparty the excess (if any) of the strike price over the market price of the put option at the time of settlement, but if the market price is above the put’s strike price, no payment is due from either party.
Swaptions	Instruments that refer to an option to enter into a fixed price swap. In exchange for an option premium, the purchaser gains the right but not the obligation to enter a specified swap agreement with the issuer for specified future dates. If the Company sells a swaption, the counterparty has the right to enter into a fixed price swap wherein the Company receives a fixed price for the contract and pays a floating market price to the counterparty. If the Company purchases a swaption, the Company has the right to enter into a fixed price swap wherein the Company receives a floating market price for the contract and pays a fixed price to the counterparty.
Interest rate swaps	Interest rate swaps are used to fix or float interest rates on existing or anticipated indebtedness.  The purpose of these instruments is to manage the Company’s existing or anticipated exposure to unfavorable interest rate changes.

The Company contracts with counterparties for its derivative instruments that it believes are creditworthy at the time the transactions are entered into, and the Company actively monitors the credit ratings and credit default swap rates of these counterparties where applicable.  However, there can be no assurance that a counterparty will be able to meet its obligations to the Company.  The fair value of the Company’s derivative assets and liabilities includes a non-performance risk factor. See Note 10 for additional details regarding the Company’s fair value measurements of its derivative positions. The Company presents its derivative positions on a gross basis and does not net the asset and liability positions.

The following tables provide information about the Company’s financial instruments that are sensitive to changes in commodity prices and that are used to protect the Company’s exposure. None of the financial instruments below are designated for hedge accounting treatment.  The tables present the notional amount, the weighted average contract prices and the fair value by expected maturity dates as of March 31, 2021:

Financial Protection on Production
		Weighted Average Price per MMBtu
	Volume (Bcf)	Swaps		Sold Puts		Purchased Puts		Sold Calls		Basis Differential		Fair Value at March 31, 2021 (in millions)
Natural Gas
2021
Fixed price swaps	176	$	2.79	$	—	$	—	$	—	$	—	$	14
Two-way costless collars	195	—		—		2.57		2.93		—		1
Three-way costless collars	218	—		2.17		2.50		2.84		—		(23)
Total	589											$	(8)
2022
Fixed price swaps	112	$	2.68	$	—	$	—	$	—	$	—	$	(2)
Two-way costless collars	63	—		—		2.52		3.03		—		(3)
Three-way costless collars	278	—		2.06		2.50		2.97		—		(13)
Total	453											$	(18)
2023
Three-way costless collars	103	$	—	$	2.05	$	2.46	$	3.01	$	—	$	(4)
Basis Swaps
2021	233	$	—	$	—	$	—	$	—	$	(0.49)	$	39
2022	220	—		—		—		—		(0.44)		24
2023	119	—		—		—		—		(0.56)		4
2024	24	—		—		—		—		(0.64)		1
2025	9	—		—		—		—		(0.64)		—
Total	605											$	68

	Volume (MBbls)	Weighted Average Strike Price per Bbl								Fair Value at March 31, 2021 (in millions)
		Swaps		Sold Puts		Purchased Puts		Sold Calls
Oil
2021
Fixed price swaps	3,272	$	49.27	$	—	$	—	$	—	$	(29)
Two-way costless collars	156	—		—		37.79		45.73		(2)
Three-way costless collars	1,498	—		37.86		47.70		53.10		(10)
Total	4,926									$	(41)
2022
Fixed price swaps	1,719	$	48.54	$	—	$	—	$	—	$	(10)
Three-way costless collars	1,380	—		39.89		50.23		57.05		(4)
Total	3,099									$	(14)
2023
Three-way costless collars	1,268	$	—	$	33.97	$	45.51	$	56.12	$	(4)
Ethane
2021
Fixed price swaps	4,429	$	7.17	$	—	$	—	$	—	$	(11)
Two-way costless collars	440	—		—		7.14		10.40		—
Total	4,869									$	(11)
2022
Fixed price swaps	1,758	$	8.68	$	—	$	—	$	—	$	(1)
Two-way costless collars	135	—		—		7.56		9.66		—
Total	1,893									$	(1)
Propane
2021
Fixed price swaps	5,443	$	20.84	$	—	$	—	$	—	$	(69)
2022
Fixed price swaps	2,723	$	21.83	$	—	$	—	$	—	$	(14)
Three-way costless collars	305	—		16.80		21.00		31.92		(1)
Total	3,028									(15)
Normal Butane
2021
Fixed price swaps	1,568	$	25.30	$	—	$	—	$	—	$	(19)
2022
Fixed price swaps	888	$	24.47	$	—	$	—	$	—	$	(5)
Natural Gasoline
2021
Fixed price swaps	1,513	$	37.91	$	—	$	—	$	—	$	(27)
2022
Fixed price swaps	857	$	40.48	$	—	$	—	$	—	$	(8)

Other Derivative Contracts
	Volume (Bcf)	Weighted Average Strike Price per MMBtu		Fair Value at March 31, 2021 (in millions)
Call Options – Natural Gas (Net)
2021	57	$	3.19	$	(4)
2022	77	3.00		(16)
2023	46	2.94		(10)
2024	9	3.00		(3)
Total	189			$	(33)
Put Options – Natural Gas
2021	14	$	2.00	$	—
2022	5	2.00		(1)
Total	19			$	(1)

	Volume (MBbls)	Weighted Average Strike Price per Bbl		Fair Value at March 31, 2021 (in millions)
Call Options – Oil
2021	171	$	60.00	$	(1)

	Volume (Bcf)	Weighted Average Strike Price per MMBtu		Fair Value at March 31, 2021 (in millions)
Swaptions – Natural Gas
2021 (1)	18	$	3.00	$	(1)

(1)The Company has sold swaptions with an underlying tenor of January 2022 to December 2022, with an exercise date of December 23, 2021.

	Volume (Bcf)	Weighted Average Strike Price per MMBtu				Fair Value at March 31, 2021 (in millions)
		Swaps		Basis Differential
Storage (1)
2021
Purchased fixed price swaps	2	$	2.34	$	—	$	—
Purchased basis swaps	1	—		(0.88)		—
Fixed price swaps	—	2.23		—		—
Basis swaps	—	—		(0.57)		—
Total	3					$	—
2022
Purchased fixed price swaps	—	$	2.14	$	—	$	—
Fixed price swaps	2	2.82		—		—
Basis swaps	1	—		(0.57)		—
Total	3					$	—

(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 and sold at a later date.

Purchased Fixed Price Swaps – Marketing (Natural Gas) (1)	Volume (Bcf)	Weighted Average Strike Price per MMBtu	Fair Value at March 31, 2021 (in millions)
2021	4	2.44	1

(1)The Company has entered into a limited number of derivatives to protect the value of certain long-term sales contracts.

At March 31, 2021, the net fair value of the Company’s financial instruments related to commodities was a $211 million liability and included a net reduction of the liability of less than $1 million related to non-performance risk. See Note 10 for additional details regarding the Company’s fair value measurements of its derivative positions.

As of March 31, 2021, the Company had no positions designated for hedge accounting treatment. Gains and losses on derivatives that are not designated for hedge accounting treatment, or do not meet hedge accounting requirements, are recorded

as a component of gain (loss) on derivatives on the consolidated statements of operations. Accordingly, the gain (loss) on derivatives component of the statement of operations reflects the gain and losses on both settled and unsettled derivatives. Only the settled gains and losses are included in the Company’s realized commodity price calculations.

The balance sheet classification of the assets and liabilities related to derivative financial instruments (none of which are designated for hedge accounting treatment) is summarized below as of March 31, 2021 and December 31, 2020:

Derivative Assets
		Fair Value
(in millions)	Balance Sheet Classification	March 31, 2021		December 31, 2020
Derivatives not designated as hedging instruments:
Purchased fixed price swaps – natural gas	Derivative assets	$	1	$	1
Fixed price swaps – natural gas	Derivative assets	25		37
Fixed price swaps – oil	Derivative assets	—		13
Two-way costless collars – natural gas	Derivative assets	39		54
Three-way costless collars – natural gas	Derivative assets	39		57
Three-way costless collars – oil	Derivative assets	6		15
Basis swaps – natural gas	Derivative assets	46		60
Call options – natural gas	Derivative assets	1		4
Fixed price swaps – natural gas	Other long-term assets	—		7
Fixed price swaps – oil	Other long-term assets	—		2
Fixed price swaps – propane	Other long-term assets	1		—
Two-way costless collars – natural gas	Other long-term assets	2		20
Three-way costless collars – natural gas	Other long-term assets	82		87
Three-way costless collars – oil	Other long-term assets	14		15
Basis swaps – natural gas	Other long-term assets	39		15
Interest rate swaps	Other long-term assets	1		—
Total derivative assets		$	296	$	387

Derivative Liabilities
		Fair Value
(in millions)	Balance Sheet Classification	March 31, 2021		December 31, 2020
Derivatives not designated as hedging instruments:
Fixed price swaps – natural gas	Derivative liabilities	$	12	$	7
Fixed price swaps – oil	Derivative liabilities	32		12
Fixed price swaps – ethane	Derivative liabilities	11		10
Fixed price swaps – propane	Derivative liabilities	76		36
Fixed price swaps – normal butane	Derivative liabilities	21		8
Fixed price swaps – natural gasoline	Derivative liabilities	30		13
Two-way costless collars – natural gas	Derivative liabilities	39		43
Two-way costless collars – oil	Derivative liabilities	2		1
Three-way costless collars – natural gas	Derivative liabilities	73		82
Three-way costless collars – oil	Derivative liabilities	17		15
Basis swaps – natural gas	Derivative liabilities	9		3
Call options – natural gas	Derivative liabilities	13		12
Call options – oil	Derivative liabilities	1		—
Put options – natural gas	Derivative liabilities	1		1
Swaptions – natural gas	Derivative liabilities	1		2
Fixed price swaps – natural gas	Long-term derivative liabilities	1		3
Fixed price swaps – oil	Long-term derivative liabilities	7		2
Fixed price swaps – ethane	Long-term derivative liabilities	1		—
Fixed price swaps – propane	Long-term derivative liabilities	8		2
Fixed price swaps – normal butane	Long-term derivative liabilities	3		1
Fixed price swaps – natural gasoline	Long-term derivative liabilities	5		2
Two-way costless collars – natural gas	Long-term derivative liabilities	4		21
Three-way costless collars – natural gas	Long-term derivative liabilities	88		102
Three-way costless collars – oil	Long-term derivative liabilities	21		15
Three-way costless collars – propane	Long-term derivative liabilities	1		—
Basis swap – natural gas	Long-term derivative liabilities	8		7
Call options – natural gas	Long-term derivative liabilities	21		28
Total derivative liabilities		$	506	$	428

The following tables summarize the before-tax effect of the Company’s derivative instruments on the consolidated statements of operations for the three months ended March 31, 2021 and 2020:

Unsettled Gain (Loss) on Derivatives Recognized in Earnings
	Consolidated statement of Operations Classification of Gain (Loss) on Derivatives, Unsettled	For the three months ended March 31,
Derivative Instrument		2021			2020
		(in millions)
Purchased fixed price swaps – natural gas	Gain (Loss) on Derivatives	$	—		$	(1)
Purchased fixed price swaps – oil	Gain (Loss) on Derivatives	—			(5)
Fixed price swaps – natural gas	Gain (Loss) on Derivatives	(22)			103
Fixed price swaps – oil	Gain (Loss) on Derivatives	(40)			118
Fixed price swaps – ethane	Gain (Loss) on Derivatives	(2)			12
Fixed price swaps – propane	Gain (Loss) on Derivatives	(45)			36
Fixed price swaps – normal butane	Gain (Loss) on Derivatives	(15)			—
Fixed price swaps – natural gasoline	Gain (Loss) on Derivatives	(20)			—
Two-way costless collars – natural gas	Gain (Loss) on Derivatives	(12)			(4)
Two-way costless collars – oil	Gain (Loss) on Derivatives	(1)			19
Two-way costless collars – propane	Gain (Loss) on Derivatives	—			2
Three-way costless collars – natural gas	Gain (Loss) on Derivatives	—			(51)
Three-way costless collars – oil	Gain (Loss) on Derivatives	(18)			25
Three-way costless collars – propane	Gain (Loss) on Derivatives	(1)			—
Basis swaps – natural gas	Gain (Loss) on Derivatives	3			(1)
Call options – natural gas	Gain (Loss) on Derivatives	3			(5)
Call options – oil	Gain (Loss) on Derivatives	(1)			1
Swaptions – natural gas	Gain (Loss) on Derivatives	1			—
Purchased fixed price swap – natural gas storage	Gain (Loss) on Derivatives	—			(1)
Fixed price swap – natural gas storage	Gain (Loss) on Derivatives	—			(1)
Interest rate swaps	Gain (Loss) on Derivatives	1			(1)
Total gain (loss) on unsettled derivatives		$	(169)		$	246
Settled Gain (Loss) on Derivatives Recognized in Earnings (1)
	Consolidated statement of Operations Classification of Gain (Loss) on Derivatives, Settled	For the three months ended March 31,
Derivative Instrument		2021			2020
		(in millions)
Purchased fixed price swaps – natural gas	Gain (Loss) on Derivatives	$	—		$	(1)
Fixed price swaps – natural gas	Gain (Loss) on Derivatives	5			5
Fixed price swaps – oil	Gain (Loss) on Derivatives	(17)			9
Fixed price swaps – ethane	Gain (Loss) on Derivatives	(4)			6
Fixed price swaps – propane	Gain (Loss) on Derivatives	(30)			10
Fixed price swaps – normal butane	Gain (Loss) on Derivatives	(7)			—
Fixed price swaps – natural gasoline	Gain (Loss) on Derivatives	(9)			—
Two-way costless collars – natural gas	Gain (Loss) on Derivatives	2			6
Two-way costless collars – oil	Gain (Loss) on Derivatives	(1)			3
Two-way costless collars – propane	Gain (Loss) on Derivatives	—			1
Three-way costless collars – natural gas	Gain (Loss) on Derivatives	1			36
Three-way costless collars – oil	Gain (Loss) on Derivatives	(1)			1
Basis swaps – natural gas	Gain (Loss) on Derivatives	41			16
Put options – natural gas	Gain (Loss) on Derivatives	(2)		(2)	—
Fixed price swaps – natural gas storage	Gain (Loss) on Derivatives	—			1
Total gain (loss) on settled derivatives		$	(22)		$	93
Total gain (loss) on derivatives		$	(191)		$	339

(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 $2 million amortization of premiums paid related to certain natural gas put options for the three months ended March 31, 2021 which is included in gain (loss) on derivatives on the consolidated statements of operations.

XML

RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

3 Months Ended

Mar. 31, 2021

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Changes in accumulated other comprehensive income for the first three months of 2021 were related to the Company’s pension and other postretirement benefits. The following tables detail the components of accumulated other comprehensive income and the related tax effects for the three months ended March 31, 2021:

(in millions)	Pension and Other Postretirement		Foreign Currency		Total
Beginning balance December 31, 2020	$	(24)	$	(14)	$	(38)
Other comprehensive income before reclassifications	—		—		—
Amounts reclassified from other comprehensive income (1)	—		—		—
Net current-period other comprehensive income	—		—		—
Ending balance March 31, 2021	$	(24)	$	(14)	$	(38)

Details about Accumulated Other Comprehensive Income	Affected Line Item in the Consolidated Statement of Operations	Amount Reclassified from Accumulated Other Comprehensive Income
		For the three months ended March 31, 2021
		(in millions)
Pension and other postretirement:
Amortization of prior service cost and net gain (1)	Other Income, Net	$	—
	Provision (Benefit) for Income Taxes	—
	Net Income (Loss)	$	—
Total reclassifications for the period	Net Income (Loss)	$	—

(1) For the three months ended March 31, 2021, the amount reclassified from accumulated other comprehensive income was immaterial. See Note 14 for additional details regarding the Company’s pension and other postretirement benefit plans.

XML

FAIR VALUE MEASUREMENTS

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

Assets and liabilities measured at fair value on a recurring basis

The carrying amounts and estimated fair values of the Company’s financial instruments as of March 31, 2021 and December 31, 2020 were as follows:

	March 31, 2021				December 31, 2020
(in millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Cash and cash equivalents	$	4	$	4	$	13	$	13
2018 revolving credit facility due April 2024	567		567		700		700
Senior notes (1)	2,471		2,640		2,471		2,609
Derivative instruments, net	(210)		(210)		(41)		(41)

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

The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value.  As presented in the tables below, this hierarchy consists of three broad levels:

Level 1 valuations - Consist of unadjusted quoted prices in active markets for identical assets and liabilities and have the highest priority.

Level 2 valuations - Consist of quoted market information for the calculation of fair market value.

Level 3 valuations - Consist of internal estimates and have the lowest priority.

The carrying values of cash and cash equivalents, including marketable securities, accounts receivable, other current assets, accounts payable and other current liabilities on the consolidated balance sheets approximate fair value because of their short-term nature.  For debt and derivative instruments, the following methods and assumptions were used to estimate fair value:

Debt: The fair values of the Company’s senior notes are based on the market value of the Company’s publicly traded debt as determined based on the market prices of the Company’s senior notes. The fair value of the Company’s 4.10% Senior Notes

due March 2022 is considered to be a Level 2 measurement on the fair value hierarchy.  The fair values of the Company’s remaining senior notes are considered the be a Level 1 measurement. The carrying values of the borrowings under the Company’s revolving credit facility (to the extent utilized) approximates fair value because the interest rate is variable and reflective of market rates.  The Company considers the fair value of its revolving credit facility to be a Level 1 measurement on the fair value hierarchy.

Derivative Instruments: The Company measures the fair value of its derivative instruments based upon a pricing model that utilizes market-based inputs, including, but not limited to, the contractual price of the underlying position, current market prices, natural gas and liquids forward curves, discount rates such as the LIBOR curve for a similar duration of each outstanding position, volatility factors and non-performance risk. Non-performance risk considers the effect of the Company’s credit standing on the fair value of derivative liabilities and the effect of counterparty credit standing on the fair value of derivative assets. Both inputs to the model are based on published credit default swap rates and the duration of each outstanding derivative position. As of March 31, 2021 and December 31, 2020, the impact of non-performance risk on the fair value of the Company’s net derivative asset position was a decrease of the net liability of less than $1 million and $1 million, respectively.

The Company has classified its derivative instruments into levels depending upon the data utilized to determine their fair values.  The Company’s fixed price swaps (Level 2) are estimated using third-party discounted cash flow calculations using the New York Mercantile Exchange (“NYMEX”) futures index for natural gas and oil derivatives and Oil Price Information Service (“OPIS”) for ethane and propane derivatives. The Company utilizes discounted cash flow models for valuing its interest rate derivatives (Level 2). The net derivative values attributable to the Company’s interest rate derivative contracts as of December 31, 2020 are based on (i) the contracted notional amounts, (ii) active market-quoted London Interbank Offered Rate (“LIBOR”) yield curves and (iii) the applicable credit-adjusted risk-free rate yield curve.

The Company’s call options, two-way costless collars and three-way costless collars (Level 2) are valued using the Black-Scholes model, an industry standard option valuation model that takes into account inputs such as contract terms, including maturity, and market parameters, including assumptions of the NYMEX and OPIS futures index, interest rates, volatility and credit worthiness.  Inputs to the Black-Scholes model, including the volatility input, are obtained from a third-party pricing source, with independent verification of the most significant inputs on a monthly basis.  An increase (decrease) in volatility would result in an increase (decrease) in fair value measurement, respectively.

The Company’s basis swaps (Level 2) are estimated using third-party calculations based upon forward commodity price curves.

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

	March 31, 2021
	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	—		26		—		26
Two-way costless collars	—		41		—		41
Three-way costless collars	—		141		—		141
Basis swaps	—		85		—		85
Call options	—		1		—		1
Interest rate swap	—		1		—		1
Liabilities
Fixed price swaps	—		(207)		—		(207)
Two-way costless collars	—		(45)		—		(45)
Three-way costless collars	—		(200)		—		(200)
Basis swaps	—		(17)		—		(17)
Call options	—		(35)		—		(35)
Put options	—		(1)		—		(1)
Swaptions	—		(1)		—		(1)
Total (1)	$	—	$	(210)	$	—	$	(210)

(1)Includes a net reduction to the liability fair value of less than $1 million related to estimated nonperformance risk.

	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 (1)	$	—	$	(41)	$	—	$	(41)

(1)Includes a net reduction to the liability fair value of $1 million related to estimated nonperformance risk.

XML

DEBT

3 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

DEBT

DEBT

The components of debt as of March 31, 2021 and December 31, 2020 consisted of the following:

	March 31, 2021
(in millions)	Debt Instrument		Unamortized Issuance Expense			Unamortized Debt Discount		Total
Current portion of long-term debt:
4.10% Senior Notes due March 2022	$	207	$	—		$	—	$	207
Total current portion of long-term debt	$	207	$	—		$	—	$	207
Long-term debt:
Variable rate (2.09% at March 31, 2021) 2018 revolving credit facility due April 2024	$	567	$	—	(1)	$	—	$	567
4.95% Senior Notes due January 2025 (2)	856		(4)			(1)		851
7.50% Senior Notes due April 2026	618		(5)			—		613
7.75% Senior Notes due October 2027	440		(4)			—		436
8.375% Senior Notes due September 2028	350		(5)			—		345
Total long-term debt	$	2,831	$	(18)		$	(1)	$	2,812
Total debt	$	3,038	$	(18)		$	(1)	$	3,019
	December 31, 2020
(in millions)	Debt Instrument		Unamortized Issuance Expense			Unamortized Debt Discount		Total
Long-term debt:
Variable rate (2.11% at December 31, 2020) 2018 term loan facility due April 2024	$	700	$	—	(1)	$	—	$	700
4.10% Senior Notes due March 2022	207		—			—		207
4.95% Senior Notes due January 2025 (2)	856		(4)			(1)		851
7.50% Senior Notes due April 2026	618		(6)			—		612
7.75% Senior Notes due October 2027	440		(5)			—		435
8.375% Senior Notes due September 2028	350		(5)			—		345
Total long-term debt	$	3,171	$	(20)		$	(1)	$	3,150

(1)At March 31, 2021 and December 31, 2020, unamortized issuance expense of $11 million and $12 million, respectively, associated with the 2018 credit facility (as defined below) was classified as other long-term assets on the consolidated balance sheets.

(2)Effective in July 2018, the interest rate was 6.20% for the 2025 Notes, reflecting a net downgrade in the Company’s bond ratings since the initial offering. On April 7, 2020, S&P downgraded the Company’s bond rating to BB-, which had the effect of increasing the interest rate on the 2025 Notes to 6.45% following the July 23, 2020 interest payment date. The first coupon payment to the bondholders at the higher interest rate was paid in January 2021.

The following is a summary of scheduled debt maturities by year as of March 31, 2021:

(in millions)
2021	$	—
2022	207
2023	—
2024	567
2025	856
Thereafter	1,408
	$	3,038

(1)The Company’s current revolving credit facility matures in 2024.

Credit Facilities

2018 Revolving Credit Facility

In April 2018, the Company replaced its credit facility that was entered into in 2016 with a new revolving credit facility (the “2018 credit facility”) with a group of banks that, as amended, has a maturity date of April 2024.  The 2018 credit facility has an aggregate maximum revolving credit amount of $3.5 billion and, in March 2021, the banks participating in the 2018 credit facility reaffirmed the elected borrowing base and aggregate commitments to be $2.0 billion. The borrowing base is subject to redetermination at least twice a year, in April and October, and is secured by substantially all of the assets owned by the Company and its subsidiaries. The permitted lien provisions in certain senior note indentures currently limit liens securing indebtedness to the greater of $2.0 billion or 25% of adjusted consolidated net tangible assets.

The Company may utilize the 2018 credit facility in the form of loans and letters of credit. Loans under the 2018 credit facility are subject to varying rates of interest based on whether the loan is a Eurodollar loan or an alternate base rate loan.  Eurodollar loans bear interest at the Eurodollar rate, which is adjusted LIBOR for such interest period plus the applicable margin (as those terms are defined in the 2018 credit facility documentation).  The applicable margin for Eurodollar loans under the 2018 credit facility, as amended, ranges from 1.75% to 2.75% based on the Company’s utilization of the 2018 credit facility.  Alternate base rate loans bear interest at the alternate base rate plus the applicable margin.  The applicable margin for alternate base rate loans under the 2018 credit facility, as amended, ranges from 0.75% to 1.75% based on the Company’s utilization of the 2018 credit facility.

The 2018 credit facility contains customary representations and warranties and contains covenants including, among others, the following:

•a prohibition against incurring debt, subject to permitted exceptions;

•a restriction on creating liens on assets, subject to permitted exceptions; 

•restrictions on mergers and asset dispositions;

•restrictions on use of proceeds, investments, transactions with affiliates, or change of principal business; and

•maintenance of the following financial covenants, commencing with the fiscal quarter ending June 30, 2018:

1.Minimum current ratio of no less than 1.00 to 1.00, whereby current ratio is defined as the Company’s consolidated current assets (including unused commitments under the credit agreement, but excluding non-cash derivative assets) to consolidated current liabilities (excluding non-cash derivative obligations and current maturities of long-term debt).

2.Maximum total net leverage ratio of no greater than, with respect to each fiscal quarter ending on or after June 30, 2020, 4.00 to 1.00.  Total net leverage ratio is defined as total debt less cash on hand (up to the lesser of 10% of credit limit or $150 million) divided by consolidated EBITDAX for the last four consecutive quarters.  EBITDAX, as defined in the credit agreement governing the Company’s 2018 credit facility, excludes the effects of interest expense, depreciation, depletion and amortization, income tax, any non-cash impacts from impairments, certain non-cash hedging activities, stock-based compensation expense, non-cash gains or losses on asset sales, unamortized issuance cost, unamortized debt discount and certain restructuring costs. 

The 2018 credit facility contains customary events of default that include, among other things, the failure to comply with the financial covenants described above, non-payment of principal, interest or fees, violation of covenants, inaccuracy of representations and warranties, bankruptcy and insolvency events, material judgments and cross-defaults to material indebtedness.  If an event of default occurs and is continuing, all amounts outstanding under the 2018 credit facility may become immediately due and payable. As of March 31, 2021, the Company was in compliance with all of the covenants contained in the credit agreement governing the 2018 credit facility.

Each United States domestic subsidiary of the Company for which the Company owns 100% guarantees the 2018 credit facility.  Pursuant to requirements under the indentures governing its senior notes, each subsidiary that became a guarantor of the 2018 credit facility also became a guarantor of each of the Company’s senior notes.

As of March 31, 2021, the Company had $233 million in letters of credit and $567 million borrowings outstanding under the 2018 credit facility. The Company currently does not anticipate being required to supply a materially greater amount of letters of credit under its existing contracts.

The Company’s debt exposure to the anticipated transition from LIBOR in late 2021 is limited to the 2018 credit facility. Upon announcement by the administrator of LIBOR identifying a specific date for LIBOR cessation, the credit agreement governing the 2018 credit facility will be amended to reference an alternative rate as established by JP Morgan, as Administrative Agent, and the Company. The alternative rate will be based on the prevailing market convention and is expected to be the Secured Overnight Financing Rate (“SOFR”).

Senior Notes

In January 2015, the Company completed a public offering of $1.0 billion aggregate principal amount of its 4.95% senior notes due 2025 (the “2025 Notes”).  The interest rate on the 2025 Notes is determined based upon the public bond ratings from Moody’s and S&P.  Downgrades on the 2025 Notes from either rating agency increase interest costs by 25 basis points per downgrade level and upgrades decrease interest costs by 25 basis points per upgrade level, up to the stated coupon rate, on the following semi-annual bond interest payment.  Effective in July 2018, the interest rate for the 2025 Notes was 6.20%, reflecting a net downgrade in the Company’s bond ratings since the initial offering. On April 7, 2020, S&P downgraded the Company’s bond rating to BB-, which had the effect of increasing the interest rate on the 2025 Notes to 6.45% following the July 23, 2020 interest payment date. The first coupon payment to the 2025 Notes bondholders at the higher interest rate was paid in January 2021. In the event of future downgrades, the coupons for this series of notes have been capped at 6.95%.

In the first quarter of 2020, the Company repurchased $3 million of its 4.10% Senior Notes due 2022, $28 million of its 4.95% Senior Notes due 2025, $18 million of its 7.50% Senior Notes due 2026 and $31 million of its 7.75% Senior Notes due 2027 for $52 million, and recognized a $28 million gain on the extinguishment of debt.

In August 2020, the Company completed a public offering of $350 million aggregate principal amount of its 8.375% Senior Notes due 2028 (the “2028 Notes”), with net proceeds from the offering totaling approximately $345 million after underwriting discounts and offering expenses. The 2028 Notes were sold to the public at 100% of their face value. The net proceeds from the notes, in conjunction with the net proceeds from the August 2020 common stock offering and borrowings under the revolving credit facility, were utilized to fund a redemption of $510 million of Montage’s Notes in connection with the closing of the Merger.

XML

COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

Operating Commitments and Contingencies

As of March 31, 2021, the Company’s contractual obligations for demand and similar charges under firm transportation and gathering agreements to guarantee access capacity on natural gas and liquids pipelines and gathering systems totaled approximately $8.4 billion, $436 million of which related to access capacity on future pipeline and gathering infrastructure projects that still require the granting of regulatory approvals and additional construction efforts.  The Company also had guarantee obligations of up to $908 million of that amount.  As of March 31, 2021, future payments under non-cancelable firm transportation and gathering agreements were as follows:

	Payments Due by Period
(in millions)	Total		Less than 1 Year		1 to 3 Years		3 to 5 Years		5 to 8 Years		More than 8 Years
Infrastructure currently in service	$	7,915	$	789	$	1,539	$	1,295	$	1,752	$	2,540
Pending regulatory approval and/or construction (1)	436		2		30		38		81		285
Total transportation charges	$	8,351	$	791	$	1,569	$	1,333	$	1,833	$	2,825

(1)Based on estimated in-service dates as of March 31, 2021.

Environmental Risk

The Company is subject to laws and regulations relating to the protection of the environment.  Environmental and cleanup related costs of a non-capital nature are accrued when it is both probable that a liability has been incurred and when the amount can be reasonably estimated.  Management believes any future remediation or other compliance related costs will not have a material effect on the financial position, results of operations or cash flows of the Company.

Litigation

The Company is subject to various litigation, claims and proceedings, most of which have arisen in the ordinary course of business, such as for alleged breaches of contract, miscalculation of royalties, employment matters, traffic accidents, pollution, contamination, encroachment on others’ property or nuisance. The Company accrues for litigation, claims and proceedings when a liability is both probable and the amount can be reasonably estimated. As of March 31, 2021, the Company does not currently have any material amounts accrued related to litigation matters. For any matters not accrued for, it is not possible at this time to estimate the amount of any additional loss, or range of loss, that is reasonably possible, but, based on the nature of the claims, management believes that current litigation, claims and proceedings, individually or in aggregate and after taking into account insurance, are not likely to have a material adverse impact on the Company’s financial position, results of operations or cash flows, for the period in which the effect of that outcome becomes reasonably estimable. Many of these matters are in early stages, so the allegations and the damage theories have not been fully developed, and are all subject to inherent uncertainties; therefore, management’s view may change in the future.

St. Lucie County Fire District Firefighters’ Pension Trust

On October 17, 2016, the St. Lucie County Fire District Firefighters’ Pension Trust filed a putative class action in the 61st District Court in Harris County, Texas, against the Company, certain of its former officers and current and former directors and the underwriters on behalf of itself and others that purchased certain depositary shares from the Company’s January 2015 equity offering, alleging material misstatements and omissions in the registration statement for that offering. The Company removed the case to federal court, but after a decision by the United States Supreme Court in an unrelated case that these types of cases are not subject to removal, the federal court remanded the case to the Texas state court. The Texas trial court denied the Company’s motion to dismiss, and in February 2020, the court of appeals declined to exercise discretion to reverse the trial court’s decision. The Company filed a petition to review the trial court’s decision with the Texas Supreme Court, and the Court requested a response from the plaintiff. The Court subsequently requested full briefing on the merits of the case. The Company carries insurance for the claims asserted against it and the officer and director defendants, and the carrier has accepted coverage. The Company denies all allegations and intends to continue to defend this case vigorously. The Company does not expect this case to have a material adverse effect on the results of operations, financial position or cash flows of the Company after taking insurance into account. Additionally, it is not possible at this time to estimate the amount of any additional loss, or range of loss, that is reasonably possible.

Indemnifications

The Company has provided certain indemnifications to various third parties, including in relation to asset and entity dispositions, securities offerings and other financings, and litigation, such as the St. Lucie County Fire District Firefighters’ Pension Trust case described above.  In the case of asset dispositions, these indemnifications typically relate to disputes, litigation or tax matters existing at the date of disposition. The Company likewise obtains indemnification for future matters when it sells assets, although there is no assurance the buyer will be capable of performing those obligations.  In the case of equity offerings, these indemnifications typically relate to claims asserted against underwriters in connection with an offering. No material liabilities have been recognized in connection with these indemnifications.

XML

INCOME TAXES

3 Months Ended

Mar. 31, 2021

Income Tax Expense (Benefit), Continuing Operations [Abstract]

INCOME TAXES

INCOME TAXES

The Company’s effective tax rate was approximately 0% for the three months ended March 31, 2021. The effective tax rate for the three months ended March 31, 2021 related to the effects a valuation allowance against the Company’s U.S. deferred tax assets. A valuation allowance for deferred tax assets, including net operating losses, is recognized when it is more likely than not that some or all of the benefit from the deferred tax assets will not be realized.  To assess that likelihood, the Company uses estimates and judgment regarding future taxable income, and considers the tax consequences in the jurisdiction where such taxable income is generated, to determine whether a valuation allowance is required.  Such evidence can include current financial position, results of operations, both actual and forecasted, the reversal of deferred tax liabilities and tax planning strategies as well as current and forecasted business economics of the oil and gas industry.

In the first quarter of 2020, due to significant pricing declines and the material write-down of the carrying value of the Company’s natural gas and oil properties in addition to other negative evidence, the Company concluded that it was more likely than not that these deferred tax assets will not be realized and recorded a discrete tax expense of $408 million for the increase in its valuation allowance. The net change in valuation allowance is reflected as a component of income tax expense. The Company also retained a valuation allowance of $87 million related to net operating losses in jurisdictions in which it no longer operates. Management will continue to assess available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit the use of deferred tax assets. The amount of the deferred tax asset considered realizable, however, could be adjusted based on changes in subjective estimates of future taxable income or if objective negative evidence is no longer present.

The Company’s effective tax rate was approximately (36)% for the three months ended March 31, 2020. The effective tax rate for the three months ended March 31, 2020 was primarily the effect of recording the valuation allowance discussed above.

The Company adopted Accounting Standards Update No. 2019-12 (“ASU 2019-12”) in the current period. ASU 2019-12 addressed simplification to income tax accounting rules, such as removing a few exceptions to intraperiod allocation. There was no material impact to the financial statements as a result of this adoption.

XML

PENSION PLAN AND OTHER POSTRETIREMENT BENEFITS

3 Months Ended

Mar. 31, 2021

Retirement Benefits [Abstract]

PENSION PLAN AND OTHER POSTRETIREMENT BENEFITS

PENSION PLAN AND OTHER POSTRETIREMENT BENEFITS

The Company maintains defined pension and other postretirement benefit plans, which cover substantially all of the Company’s employees.  As part of ongoing effort to reduce costs, the Company elected to freeze its pension plan effective January 1, 2021. Employees that were participants in the pension plan prior to January 1, 2021 will continue to receive the interest component of the plan but will no longer receive the service component. Net periodic pension costs include the following components for the three months ended March 31, 2021 and 2020:

	Consolidated Statements of Operations Classification of Net Periodic Benefit Cost	For the three months ended March 31,
(in millions)		2021		2020
Service cost	General and administrative expenses	$	—	$	2
Interest cost	Other Income (Loss), Net	1		1
Expected return on plan assets	Other Income (Loss), Net	(1)		(1)
Net periodic benefit cost		$	—	$	2

The Company’s other postretirement benefit plan had a net periodic benefit cost of less than $1 million and $1 million for the three months ended March 31, 2021 and 2020, respectively.

As of March 31, 2021, the Company has contributed $5 million to the pension and other postretirement benefit plans and expects to contribute an additional $7 million to its pension plan during the remainder of 2021.  The Company recognized liabilities of $28 million and $13 million related to its pension and other postretirement benefits, respectively, as of March 31, 2021, compared to liabilities of $33 million and $13 million as of December 31, 2020, respectively.

The Company maintains a non-qualified deferred compensation supplemental retirement savings plan (“Non-Qualified Plan”) for certain key employees who may elect to defer and contribute a portion of their compensation, as permitted by the Non-Qualified Plan.  Shares of the Company’s common stock purchased under the terms of the Non-Qualified Plan are included in treasury stock and totaled 2,035 shares and 3,632 shares at March 31, 2021 and December 31, 2020, respectively.

XML

LONG-TERM INCENTIVE COMPENSATION

3 Months Ended

Mar. 31, 2021

Share-based Payment Arrangement, Noncash Expense [Abstract]

LONG-TERM INCENTIVE COMPENSATION

LONG-TERM INCENTIVE COMPENSATION

The Company’s long-term incentive compensation plans consist of a combination of stock-based awards that derive their value directly or indirectly from the Company’s common stock price, and cash-based awards that are fixed in amount but subject to meeting annual performance thresholds.

Stock-Based Compensation

The Company’s stock-based compensation is classified as either equity awards or liability awards in accordance with GAAP.  The fair value of an equity-classified award is determined at the grant date and is amortized to general and administrative expense on a straight-line basis over the vesting period of the award.  A portion of this general and administrative expense is capitalized into natural gas and oil properties, included in property and equipment. The fair value of a liability-classified award is determined on a quarterly basis beginning at the grant date until final vesting.  Changes in the fair value of liability-classified awards are recorded to general and administrative expense and capitalized expense over the vesting period of the award. Generally, stock options granted to employees and directors vest ratably over three years from the grant date and expire seven years from the date of grant. The Company issues shares of restricted stock, restricted stock units or performance cash awards to employees and directors which generally vest over four years. Restricted stock, restricted stock units, performance cash awards and stock options granted to participants under the 2013 Incentive Plan, as amended and restated, immediately vest upon death, disability or retirement (subject to a minimum of three years of service). The Company issues performance unit awards to employees which historically have vested at or over three years.

In February of 2021 and 2020, the Company notified employees of workforce reduction plans as a result of strategic realignments of the Company’s organizational structure. Theses reductions were substantially complete by the end of the first quarter of each respective year. Affected employees were offered a severance package which, if applicable, included the current value of unvested long-term incentive awards that were forfeited.

The Company recognized the following amounts in total employee stock-based compensation costs for the three months ended March 31, 2021 and 2020:

	For the three months ended March 31,
(in millions)	2021		2020
Stock-based compensation cost – expensed	$	13	$	—
Stock-based compensation cost – capitalized	5		—

Equity-Classified Awards

The Company recognized the following amounts in employee equity-classified stock-based compensation costs for the three months ended March 31, 2021 and 2020:

	For the three months ended March 31,
(in millions)	2021		2020
Equity-classified awards – expensed	$	—	$	1
Equity-classified awards – capitalized	—		—

As of March 31, 2021, there was less than $1 million of total unrecognized compensation cost related to the Company’s unvested equity-classified stock option grants, equity-classified restricted stock grants and equity-classified performance units.  This cost is expected to be recognized over a weighted-average period of 1.0 year.

Equity-Classified Stock Options

The following table summarizes equity-classified stock option activity for the three months ended March 31, 2021 and provides information for options outstanding and options exercisable as of March 31, 2021:

	Number of Options	Weighted Average Exercise Price
	(in thousands)
Outstanding at December 31, 2020	3,850	$	13.39
Granted	—	$	—
Exercised	—	$	—
Forfeited or expired	(61)	$	10.93
Outstanding at March 31, 2021	3,789	$	13.43
Exercisable at March 31, 2021	3,789	$	13.43

Equity-Classified Restricted Stock

The following table summarizes equity-classified restricted stock activity for the three months ended March 31, 2021 and provides information for unvested shares as of March 31, 2021:

	Number of Shares	Weighted Average Fair Value
	(in thousands)
Unvested shares at December 31, 2020	697	$	5.97
Granted	10	$	2.98
Vested	(451)	$	7.61
Forfeited	—	$	8.59
Unvested shares at March 31, 2021	256	$	2.94

Equity-Classified Restricted Stock Units

As a result of the Merger with Montage, certain employees became employees of Southwestern and retained their original equity awards. The following table summarizes equity-classified performance unit activity for the three months ended March 31, 2021 and provides information for unvested units as of March 31, 2021. 

	Number of Shares	Weighted Average Fair Value
	(in thousands)
Unvested units at December 31, 2020	134	$	3.05
Granted	—	—
Vested	(45)	3.05
Forfeited	—	—
Unvested Units at March 31, 2021	89	3.05

Liability-Classified Awards

The Company recognized the following amounts in employee liability-classified stock-based compensation costs for the three months ended March 31, 2021:

	For the three months ended March 31,
(in millions)	2021		2020
Liability-classified stock-based compensation cost – expensed	$	13	$	(1)
Liability-classified stock-based compensation cost – capitalized	5		—

Liability-Classified Restricted Stock Units

In the first quarter of each year beginning with 2018, the Company granted restricted stock units that vest over a period of four years and are payable in either cash or shares at the option of the Compensation Committee of the Company’s Board of Directors.  The awards granted in 2021 vest over a period of three years. The Company has accounted for these as liability-classified awards, and accordingly changes in the market value of the instruments will be recorded to general and administrative expense and capitalized expense over the vesting period of the award.  As of March 31, 2021, there was $32 million of total unrecognized compensation cost related to liability-classified restricted stock units that is expected to be recognized over a weighted-average period of 2.2 years. The amount of unrecognized compensation cost for liability-classified awards will fluctuate over time as they are marked to market.

	Number of Units	Weighted Average Fair Value
	(in thousands)
Unvested units at December 31, 2020	11,613	$	2.67
Granted	1,486	$	4.23
Vested	(4,522)	$	3.40
Forfeited	(416)	$	4.31
Unvested units at March 31, 2021	8,161	$	4.07

Liability-Classified Performance Units

In each year beginning with 2018, the Company granted performance units that vest at the end of, or over, a three-year period and are payable in either cash or shares at the option of the Compensation Committee of the Company’s Board of Directors.  The Company has accounted for these as liability-classified awards, and accordingly changes in the fair market value of the instruments will be recorded to general and administrative expense and capitalized expense over the vesting period of the awards.  The performance unit awards granted in 2018 include a performance condition based on cash flow per debt-adjusted share and two market conditions, one based on absolute TSR and the other on relative TSR as compared to a group of the Company’s peers. The performance unit awards granted in 2019 include performance conditions based on return on average capital employed and two market conditions, one based on absolute TSR and the other on relative TSR.  The performance units granted in 2020 include a performance condition based on return on average capital employed and a market condition based on relative TSR. In the first quarter of 2021, two types of performance unit awards were granted. One type of award includes a performance condition based on return on capital employed and a performance condition based on a reinvestment rate, and the second type of award includes one market condition based on relative TSR. The fair values of the market conditions are calculated by Monte Carlo models on a quarterly basis.  As of March 31, 2021, there was $22 million of total unrecognized compensation cost related to liability-classified performance units.  This cost is expected to be recognized over a weighted-average period of 2.1 years.  The amount of unrecognized compensation cost for liability-classified awards will fluctuate over time as they are marked to market. The final value of the performance unit awards is contingent upon the Company’s actual performance against these performance measures.

	Number of Units	Weighted Average Fair Value
	(in thousands)
Unvested units at December 31, 2020	8,699	$	2.57
Granted	3,580	$	4.14
Vested	(2,020)	$	4.05
Forfeited	(622)	$	2.98
Unvested units at March 31, 2021	9,637	$	2.88

Cash-Based Compensation

Performance Cash Awards

In 2021 and 2020, the Company granted performance cash awards that vest over a four-year period and are payable in cash on an annual basis. The value of each unit of the award equals one dollar. The Company recognizes the cost of these awards as general and administrative expense and capitalized expense over the vesting period of the awards. The performance cash awards granted in 2021 and 2020 include a performance condition determined annually by the Company. For both years, the performance measure is a targeted discretionary cash flow amount. If the Company, in its sole discretion, determines that the threshold was not met, the amount for that vesting period will not vest and will be cancelled. As of March 31, 2021, there was $30 million of total unrecognized compensation cost related to performance cash awards. This cost is expected to be

recognized over a weighted average 3.5 years. The final value of the performance cash awards is contingent upon the Company’s actual performance against these performance measures.

	Number of Units	Weighted Average Fair Value
	(in thousands)
Unvested units at December 31, 2020	18,353	$	1.00
Granted	18,546	$	1.00
Vested	(4,319)	$	1.00
Forfeited	(1,615)	$	1.00
Unvested units at March 31, 2021	30,965	$	1.00

XML

SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

The Company’s reportable business segments have been identified based on the differences in products or services provided.  Revenues for the E&P segment are derived from the production and sale of natural gas and liquids.  The Marketing segment generates revenue through the marketing of both Company and third-party produced natural gas and liquids volumes.

Summarized financial information for the Company’s reportable segments is shown in the following table.  The accounting policies of the segments are the same as those described in Note 1 of the Notes to Consolidated Financial Statements included in Item 8 of the 2020 Annual Report.  Management evaluates the performance of its segments based on operating income, defined as operating revenues less operating costs.  Income before income taxes, for the purpose of reconciling the operating income amount shown below to consolidated income before income taxes, is the sum of operating income, interest expense, gain (loss) on derivatives, gain on early extinguishment of debt and other income (loss).  The “Other” column includes items not related to the Company’s reportable segments, including real estate and corporate items. Corporate general and administrative costs, depreciation expense and taxes, other than income taxes, are allocated to the segments.

	E&P			Marketing		Other		Total
Three months ended March 31, 2021	(in millions)
Revenues from external customers	$	719		$	353	$	—	$	1,072
Intersegment revenues	(14)			644		—		630
Depreciation, depletion and amortization expense	94			2		—		96
Operating income	295		(1)	6		—		301
Interest expense (2)	31			—		—		31
Loss on derivatives	(191)			—		—		(191)
Other income, net	1			—		—		1
Assets	4,741		(3)	396		110		5,247
Capital investments (4)	266			—		—		266
Three months ended March 31, 2020
Revenues from external customers	$	353		$	239	$	—	$	592
Intersegment revenues	(9)			309		—		300
Depreciation, depletion and amortization expense	111			2		—		113
Impairments	1,479			—		—		1,479
Operating loss	(1,486)		(1)	(4)		—		(1,490)
Interest expense (2)	19			—		—		19
Gain on derivatives	339			—		—		339
Gain on early extinguishment of debt	—			—		28		28
Other income, net	1			—		—		1
Benefit from income taxes (2)	406			—		—		406
Assets	4,900		(3)	214		161		5,275
Capital investments (4)	237			—		—		237

(1)Operating income (loss) for the E&P segment includes $6 million and $10 million of restructuring charges for the three months ended March 31, 2021 and 2020, respectively. The E&P segment operating income (loss) also includes $1 million of merger-related charges for the three months ended March 31, 2021.

(2)Interest expense and provision (benefit) for income taxes by segment is an allocation of corporate amounts as they are incurred at the corporate level.

(3)E&P assets includes office, technology, water infrastructure, drilling rigs and other ancillary equipment not directly related to natural gas and oil properties. E&P assets also includes deferred tax assets which are an allocation of corporate amounts as they are incurred at the corporate level.

(4)Capital investments include increases of $38 million and $8 million for the three months ended March 31, 2021 and 2020, respectively, relating to the change in accrued expenditures between periods.

The following table presents the breakout of other assets, which represent corporate assets not allocated to segments and assets for non-reportable segments at March 31, 2021 and 2020:

	As of March 31,
(in millions)	2021		2020
Cash and cash equivalents	$	4	$	5
Income taxes receivable	—		32
Prepayments	6		9
Property, plant and equipment	15		23
Unamortized debt expense	11		10
Right-of-use lease assets	70		77
Non-qualified retirement plan	4		5
	$	110	$	161

XML

NEW ACCOUNTING PRONOUNCEMENTS

3 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

NEW ACCOUNTING PRONOUNCEMENTS

NEW ACCOUNTING PRONOUNCEMENTS

New Accounting Standards Implemented in this Report

In August 2018, the Financial Accounting Standards Board (the “FASB”) issued ASU 2018-14, Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans ("ASU 2018-14"). ASU 2018-14 amends, adds and removes certain disclosure requirements under FASB ASC Topic 715 – Compensation – Retirement Benefits. The guidance in ASU 2018-14 is effective for fiscal years beginning after December 15, 2020 and was adopted on January 1, 2021. Adoption of ASU 2018-14 will result in certain disclosure changes within the Company's footnote disclosures. The adoption of ASU 2018-14 did not have a material impact on the Company's consolidated financial statements.

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ASU 2019-12 eliminates certain exceptions to the guidance in Topic 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. The new guidance also clarifies certain aspects of the existing guidance, among other things. The standard became effective for interim and annual periods beginning after December 15, 2020 and shall be applied on either a prospective basis, a retrospective basis for all periods presented, or a modified retrospective basis through a cumulative-effect adjustment to retained earnings depending on which aspects of the new standard are applicable to an entity. The Company adopted the new standard on January 1, 2021 on a prospective basis, which did not have a material impact on its consolidated financial statements.

New Accounting Standards Not Yet Adopted in this Report

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform, as a new ASC Topic, ASC 848. The purpose of ASC 848 is to provide optional guidance to ease the potential effects on financial reporting of the market-wide migration away from Interbank Offered Rates, such as LIBOR, which is expected to be phased out at the end of calendar year 2021, to alternative reference rates. ASC 848 applies only to contracts, hedging relationships, debt arrangements and other transactions that reference a benchmark reference rate expected to be discontinued because of reference rate reform. ASC 848 contains optional expedients and exceptions for applying U.S. GAAP to transactions affected by this reform. The amendments in ASU 2020-04 are effective for all entities as of March 12, 2020 through December 31, 2022. The Company is currently assessing the impact of adopting this new guidance.

XML

New Accounting Pronouncements (Policies)

3 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

New Accounting Standards Implemented in this Report and New Accounting Standards Not Yet Adopted in this Report

New Accounting Standards Implemented in this Report

In August 2018, the Financial Accounting Standards Board (the “FASB”) issued ASU 2018-14, Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans ("ASU 2018-14"). ASU 2018-14 amends, adds and removes certain disclosure requirements under FASB ASC Topic 715 – Compensation – Retirement Benefits. The guidance in ASU 2018-14 is effective for fiscal years beginning after December 15, 2020 and was adopted on January 1, 2021. Adoption of ASU 2018-14 will result in certain disclosure changes within the Company's footnote disclosures. The adoption of ASU 2018-14 did not have a material impact on the Company's consolidated financial statements.

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ASU 2019-12 eliminates certain exceptions to the guidance in Topic 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. The new guidance also clarifies certain aspects of the existing guidance, among other things. The standard became effective for interim and annual periods beginning after December 15, 2020 and shall be applied on either a prospective basis, a retrospective basis for all periods presented, or a modified retrospective basis through a cumulative-effect adjustment to retained earnings depending on which aspects of the new standard are applicable to an entity. The Company adopted the new standard on January 1, 2021 on a prospective basis, which did not have a material impact on its consolidated financial statements.

New Accounting Standards Not Yet Adopted in this Report

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform, as a new ASC Topic, ASC 848. The purpose of ASC 848 is to provide optional guidance to ease the potential effects on financial reporting of the market-wide migration away from Interbank Offered Rates, such as LIBOR, which is expected to be phased out at the end of calendar year 2021, to alternative reference rates. ASC 848 applies only to contracts, hedging relationships, debt arrangements and other transactions that reference a benchmark reference rate expected to be discontinued because of reference rate reform. ASC 848 contains optional expedients and exceptions for applying U.S. GAAP to transactions affected by this reform. The amendments in ASU 2020-04 are effective for all entities as of March 12, 2020 through December 31, 2022. The Company is currently assessing the impact of adopting this new guidance.

XML

ACQUISITION (Tables)

3 Months Ended

Mar. 31, 2021

Business Combinations [Abstract]

Schedule of Business Acquisitions by Acquisition, Equity Interest Issued or Issuable

The following table presents the fair value of consideration transferred to Montage stockholders as a result of the Merger:

(in millions, except share, per share amounts)	As of November 13, 2020
Shares of Southwestern common stock issued in respect of outstanding Montage common stock	67,311,166
Shares of Southwestern common stock issued in respect of Montage stock-based awards	2,429,682
	69,740,848
NYSE closing price per share of Southwestern common shares on November 13, 2020	$	3.05
Total consideration (fair value of Southwestern common shares issued)	$	213
Increase in Southwestern common stock ($0.01 par value per share)	1
Increase in Southwestern additional paid-in capital	$	212

Schedule of Business Acquisitions, by Acquisition

The following table sets forth the fair value of the assets acquired and liabilities assumed as of the acquisition date. Although the purchase price allocation is substantially complete as of the date of this filing, there may be further adjustments to the Company’s natural gas and oil properties as the studies necessary to determine the fair value are finalized. These amounts will be finalized no later than one year from the acquisition date. For the three months ended March 31, 2021 there were no changes to the allocation presented in the 2020 Form 10-K.

(in millions)	As of November 13, 2020
Consideration:
Fair value of Southwestern’s stock issued on November 13, 2020	$	213
Fair Value of Assets Acquired:
Cash and cash equivalents	3
Accounts receivable	73
Other current assets	1
Commodity derivative assets	11
Evaluated oil and gas properties	1,012
Unevaluated oil and gas properties	90
Other property, plant and equipment	28
Other long-term assets	26
Total assets acquired	1,244
Fair Value of Liabilities Assumed:
Accounts payable	145
Other current liabilities	49
Derivative liabilities	70
Revolving credit facility	200
Senior unsecured notes	522
Asset retirement obligations	28
Other noncurrent liabilities	17
Total liabilities assumed	1,031
Net Assets Acquired and Liabilities Assumed	$	213

Business Acquisition, Pro Forma Information

The following table presents selected unaudited pro forma condensed financial information for the three months ended March 31, 2020 as if the Merger had occurred on January 1, 2019:

(in millions, except per share amounts)	Pro forma results for the three months ended March 31, 2020
Revenues	$	725
Net income (loss) attributable to common stock	$	(1,498)

XML

Restructuring Charges (Tables)

3 Months Ended

Mar. 31, 2021

Restructuring and Related Activities [Abstract]

Summary of Restructuring Charges

The following table presents a summary of the restructuring charges included in Operating Income (Loss) for the three months ended March 31, 2021 and 2020:

	For the three months ended March 31,
(in millions)	2021		2020
Severance (including payroll taxes) (1)	$	6	$	10

(1)Total restructuring charges were $6 million and $10 million for the Company’s E&P segment for the three months ended March 31, 2021 and March 31, 2020, respectively.

The following table presents a reconciliation of the liability associated with the Company’s restructuring activities at March 31, 2021, which is reflected in accounts payable on the consolidated balance sheet:

(in millions)
Liability at December 31, 2020	$	3
Additions	6
Distributions	(9)
Liability at March 31, 2021	$	—

XML

Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2021

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue by Segment

The following table reconciles operating revenues as presented on the consolidated statements of operations to the operating revenues by segment:

(in millions)	E&P		Marketing		Intersegment Revenues		Total
Three months ended March 31, 2021
Gas sales	$	451	$	—	$	13	$	464
Oil sales	80		—		1		81
NGL sales	173		—		—		173
Marketing	—		996		(644)		352
Other (1)	1		1		—		2
Total	$	705	$	997	$	(630)	$	1,072
Three months ended March 31, 2020
Gas sales	$	239	$	—	$	9	$	248
Oil sales	52		—		—		52
NGL sales	50		—		—		50
Marketing	—		548		(309)		239
Other (2)	3		—		—		3
Total	$	344	$	548	$	(300)	$	592

(1)For the three months ended March 31, 2021, other E&P revenues consists primarily of gains on purchaser imbalances associated with certain NGLs and other Marketing revenues consists primarily of sales of gas from storage.

(2)For the three months ended March 31, 2020, other E&P revenues consists primarily of gains on purchaser imbalances associated with certain NGLs.

Disaggregation of Revenue on Geographic Basis

Associated E&P revenues are also disaggregated for analysis on a geographic basis by the core areas in which the Company operates, which are in Pennsylvania, West Virginia and Ohio.

	For the three months ended March 31,
(in millions)	2021		2020
Northeast Appalachia	$	263	$	195
Southwest Appalachia	441		149
Other	1		—
Total	$	705	$	344

Reconciliation of Accounts Receivable

The following table reconciles the Company’s receivables from contracts with customers to consolidated accounts receivable as presented on the consolidated balance sheet:

(in millions)	March 31, 2021		December 31, 2020
Receivables from contracts with customers	$	381	$	350
Other accounts receivable	19		18
Total accounts receivable	$	400	$	368

XML

Cash and Cash Equivalents (Tables)

3 Months Ended

Mar. 31, 2021

Cash and Cash Equivalents [Abstract]

Summary of Cash and Cash Equivalents

The following table presents a summary of cash and cash equivalents as of March 31, 2021 and December 31, 2020:

(in millions)	March 31, 2021		December 31, 2020
Cash	$	4	$	13
Marketable securities (1)	—		—
Total	$	4	$	13

(1)Typically consists of government stable value money market funds.

XML

Natural Gas and Oil Properties (Tables)

3 Months Ended

Mar. 31, 2021

Oil and Gas Exploration and Production Industries Disclosures [Abstract]

Oil and Gas Exploration and Production Industries Disclosures

Prices used to calculate the ceiling value of reserves were as follows:

	March 31, 2021		March 31, 2020
Natural gas (per MMBtu)	$	2.16	$	2.30
Oil (per Bbl)	$	40.01	$	55.77
NGLs (per Bbl)	$	13.57	$	9.96

XML

Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Schedule of Earnings Per Share

The following table presents the computation of earnings per share for the three months ended March 31, 2021 and 2020:

	For the three months ended March 31,
(in millions, except share/per share amounts)	2021		2020
Net income (loss)	$	80	$	(1,547)
Number of common shares:
Weighted average outstanding	675,385,145		540,308,491
Issued upon assumed exercise of outstanding stock options	—		—
Effect of issuance of non-vested restricted common stock	870,541		—
Effect of issuance of non-vested restricted units	804,944		—
Effect of issuance of non-vested performance units	2,807,195		—
Weighted average and potential dilutive outstanding	679,867,825		540,308,491
Earnings per common share
Basic	$	0.12	$	(2.86)
Diluted	$	0.12	$	(2.86)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The following table presents the common stock shares equivalent excluded from the calculation of diluted earnings per share for the three months ended March 31, 2021 and 2020, as they would have had an antidilutive effect:

	For the three months ended March 31,
	2021	2020
Unexercised stock options	3,795,091	4,584,563
Unvested share-based payment	—	1,006,860
Restricted stock units	3,987,291	1,312,293
Performance units	—	2,275,498
Total	7,782,382	9,179,214

XML

Derivatives and Risk Management (Tables)

3 Months Ended

Mar. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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

The following tables provide information about the Company’s financial instruments that are sensitive to changes in commodity prices and that are used to protect the Company’s exposure. None of the financial instruments below are designated for hedge accounting treatment.  The tables present the notional amount, the weighted average contract prices and the fair value by expected maturity dates as of March 31, 2021:

Financial Protection on Production
		Weighted Average Price per MMBtu
	Volume (Bcf)	Swaps		Sold Puts		Purchased Puts		Sold Calls		Basis Differential		Fair Value at March 31, 2021 (in millions)
Natural Gas
2021
Fixed price swaps	176	$	2.79	$	—	$	—	$	—	$	—	$	14
Two-way costless collars	195	—		—		2.57		2.93		—		1
Three-way costless collars	218	—		2.17		2.50		2.84		—		(23)
Total	589											$	(8)
2022
Fixed price swaps	112	$	2.68	$	—	$	—	$	—	$	—	$	(2)
Two-way costless collars	63	—		—		2.52		3.03		—		(3)
Three-way costless collars	278	—		2.06		2.50		2.97		—		(13)
Total	453											$	(18)
2023
Three-way costless collars	103	$	—	$	2.05	$	2.46	$	3.01	$	—	$	(4)
Basis Swaps
2021	233	$	—	$	—	$	—	$	—	$	(0.49)	$	39
2022	220	—		—		—		—		(0.44)		24
2023	119	—		—		—		—		(0.56)		4
2024	24	—		—		—		—		(0.64)		1
2025	9	—		—		—		—		(0.64)		—
Total	605											$	68

	Volume (MBbls)	Weighted Average Strike Price per Bbl								Fair Value at March 31, 2021 (in millions)
		Swaps		Sold Puts		Purchased Puts		Sold Calls
Oil
2021
Fixed price swaps	3,272	$	49.27	$	—	$	—	$	—	$	(29)
Two-way costless collars	156	—		—		37.79		45.73		(2)
Three-way costless collars	1,498	—		37.86		47.70		53.10		(10)
Total	4,926									$	(41)
2022
Fixed price swaps	1,719	$	48.54	$	—	$	—	$	—	$	(10)
Three-way costless collars	1,380	—		39.89		50.23		57.05		(4)
Total	3,099									$	(14)
2023
Three-way costless collars	1,268	$	—	$	33.97	$	45.51	$	56.12	$	(4)
Ethane
2021
Fixed price swaps	4,429	$	7.17	$	—	$	—	$	—	$	(11)
Two-way costless collars	440	—		—		7.14		10.40		—
Total	4,869									$	(11)
2022
Fixed price swaps	1,758	$	8.68	$	—	$	—	$	—	$	(1)
Two-way costless collars	135	—		—		7.56		9.66		—
Total	1,893									$	(1)
Propane
2021
Fixed price swaps	5,443	$	20.84	$	—	$	—	$	—	$	(69)
2022
Fixed price swaps	2,723	$	21.83	$	—	$	—	$	—	$	(14)
Three-way costless collars	305	—		16.80		21.00		31.92		(1)
Total	3,028									(15)
Normal Butane
2021
Fixed price swaps	1,568	$	25.30	$	—	$	—	$	—	$	(19)
2022
Fixed price swaps	888	$	24.47	$	—	$	—	$	—	$	(5)
Natural Gasoline
2021
Fixed price swaps	1,513	$	37.91	$	—	$	—	$	—	$	(27)
2022
Fixed price swaps	857	$	40.48	$	—	$	—	$	—	$	(8)

Other Derivative Contracts
	Volume (Bcf)	Weighted Average Strike Price per MMBtu		Fair Value at March 31, 2021 (in millions)
Call Options – Natural Gas (Net)
2021	57	$	3.19	$	(4)
2022	77	3.00		(16)
2023	46	2.94		(10)
2024	9	3.00		(3)
Total	189			$	(33)
Put Options – Natural Gas
2021	14	$	2.00	$	—
2022	5	2.00		(1)
Total	19			$	(1)

	Volume (MBbls)	Weighted Average Strike Price per Bbl		Fair Value at March 31, 2021 (in millions)
Call Options – Oil
2021	171	$	60.00	$	(1)

	Volume (Bcf)	Weighted Average Strike Price per MMBtu		Fair Value at March 31, 2021 (in millions)
Swaptions – Natural Gas
2021 (1)	18	$	3.00	$	(1)

(1)The Company has sold swaptions with an underlying tenor of January 2022 to December 2022, with an exercise date of December 23, 2021.

	Volume (Bcf)	Weighted Average Strike Price per MMBtu				Fair Value at March 31, 2021 (in millions)
		Swaps		Basis Differential
Storage (1)
2021
Purchased fixed price swaps	2	$	2.34	$	—	$	—
Purchased basis swaps	1	—		(0.88)		—
Fixed price swaps	—	2.23		—		—
Basis swaps	—	—		(0.57)		—
Total	3					$	—
2022
Purchased fixed price swaps	—	$	2.14	$	—	$	—
Fixed price swaps	2	2.82		—		—
Basis swaps	1	—		(0.57)		—
Total	3					$	—

(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 and sold at a later date.

Purchased Fixed Price Swaps – Marketing (Natural Gas) (1)	Volume (Bcf)	Weighted Average Strike Price per MMBtu	Fair Value at March 31, 2021 (in millions)
2021	4	2.44	1

(1)The Company has entered into a limited number of derivatives to protect the value of certain long-term sales contracts.

Balance Sheet Classification of Derivative Financial Instruments

The balance sheet classification of the assets and liabilities related to derivative financial instruments (none of which are designated for hedge accounting treatment) is summarized below as of March 31, 2021 and December 31, 2020:

Derivative Assets
		Fair Value
(in millions)	Balance Sheet Classification	March 31, 2021		December 31, 2020
Derivatives not designated as hedging instruments:
Purchased fixed price swaps – natural gas	Derivative assets	$	1	$	1
Fixed price swaps – natural gas	Derivative assets	25		37
Fixed price swaps – oil	Derivative assets	—		13
Two-way costless collars – natural gas	Derivative assets	39		54
Three-way costless collars – natural gas	Derivative assets	39		57
Three-way costless collars – oil	Derivative assets	6		15
Basis swaps – natural gas	Derivative assets	46		60
Call options – natural gas	Derivative assets	1		4
Fixed price swaps – natural gas	Other long-term assets	—		7
Fixed price swaps – oil	Other long-term assets	—		2
Fixed price swaps – propane	Other long-term assets	1		—
Two-way costless collars – natural gas	Other long-term assets	2		20
Three-way costless collars – natural gas	Other long-term assets	82		87
Three-way costless collars – oil	Other long-term assets	14		15
Basis swaps – natural gas	Other long-term assets	39		15
Interest rate swaps	Other long-term assets	1		—
Total derivative assets		$	296	$	387

Derivative Liabilities
		Fair Value
(in millions)	Balance Sheet Classification	March 31, 2021		December 31, 2020
Derivatives not designated as hedging instruments:
Fixed price swaps – natural gas	Derivative liabilities	$	12	$	7
Fixed price swaps – oil	Derivative liabilities	32		12
Fixed price swaps – ethane	Derivative liabilities	11		10
Fixed price swaps – propane	Derivative liabilities	76		36
Fixed price swaps – normal butane	Derivative liabilities	21		8
Fixed price swaps – natural gasoline	Derivative liabilities	30		13
Two-way costless collars – natural gas	Derivative liabilities	39		43
Two-way costless collars – oil	Derivative liabilities	2		1
Three-way costless collars – natural gas	Derivative liabilities	73		82
Three-way costless collars – oil	Derivative liabilities	17		15
Basis swaps – natural gas	Derivative liabilities	9		3
Call options – natural gas	Derivative liabilities	13		12
Call options – oil	Derivative liabilities	1		—
Put options – natural gas	Derivative liabilities	1		1
Swaptions – natural gas	Derivative liabilities	1		2
Fixed price swaps – natural gas	Long-term derivative liabilities	1		3
Fixed price swaps – oil	Long-term derivative liabilities	7		2
Fixed price swaps – ethane	Long-term derivative liabilities	1		—
Fixed price swaps – propane	Long-term derivative liabilities	8		2
Fixed price swaps – normal butane	Long-term derivative liabilities	3		1
Fixed price swaps – natural gasoline	Long-term derivative liabilities	5		2
Two-way costless collars – natural gas	Long-term derivative liabilities	4		21
Three-way costless collars – natural gas	Long-term derivative liabilities	88		102
Three-way costless collars – oil	Long-term derivative liabilities	21		15
Three-way costless collars – propane	Long-term derivative liabilities	1		—
Basis swap – natural gas	Long-term derivative liabilities	8		7
Call options – natural gas	Long-term derivative liabilities	21		28
Total derivative liabilities		$	506	$	428

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

The following tables summarize the before-tax effect of the Company’s derivative instruments on the consolidated statements of operations for the three months ended March 31, 2021 and 2020:

Unsettled Gain (Loss) on Derivatives Recognized in Earnings
	Consolidated statement of Operations Classification of Gain (Loss) on Derivatives, Unsettled	For the three months ended March 31,
Derivative Instrument		2021			2020
		(in millions)
Purchased fixed price swaps – natural gas	Gain (Loss) on Derivatives	$	—		$	(1)
Purchased fixed price swaps – oil	Gain (Loss) on Derivatives	—			(5)
Fixed price swaps – natural gas	Gain (Loss) on Derivatives	(22)			103
Fixed price swaps – oil	Gain (Loss) on Derivatives	(40)			118
Fixed price swaps – ethane	Gain (Loss) on Derivatives	(2)			12
Fixed price swaps – propane	Gain (Loss) on Derivatives	(45)			36
Fixed price swaps – normal butane	Gain (Loss) on Derivatives	(15)			—
Fixed price swaps – natural gasoline	Gain (Loss) on Derivatives	(20)			—
Two-way costless collars – natural gas	Gain (Loss) on Derivatives	(12)			(4)
Two-way costless collars – oil	Gain (Loss) on Derivatives	(1)			19
Two-way costless collars – propane	Gain (Loss) on Derivatives	—			2
Three-way costless collars – natural gas	Gain (Loss) on Derivatives	—			(51)
Three-way costless collars – oil	Gain (Loss) on Derivatives	(18)			25
Three-way costless collars – propane	Gain (Loss) on Derivatives	(1)			—
Basis swaps – natural gas	Gain (Loss) on Derivatives	3			(1)
Call options – natural gas	Gain (Loss) on Derivatives	3			(5)
Call options – oil	Gain (Loss) on Derivatives	(1)			1
Swaptions – natural gas	Gain (Loss) on Derivatives	1			—
Purchased fixed price swap – natural gas storage	Gain (Loss) on Derivatives	—			(1)
Fixed price swap – natural gas storage	Gain (Loss) on Derivatives	—			(1)
Interest rate swaps	Gain (Loss) on Derivatives	1			(1)
Total gain (loss) on unsettled derivatives		$	(169)		$	246
Settled Gain (Loss) on Derivatives Recognized in Earnings (1)
	Consolidated statement of Operations Classification of Gain (Loss) on Derivatives, Settled	For the three months ended March 31,
Derivative Instrument		2021			2020
		(in millions)
Purchased fixed price swaps – natural gas	Gain (Loss) on Derivatives	$	—		$	(1)
Fixed price swaps – natural gas	Gain (Loss) on Derivatives	5			5
Fixed price swaps – oil	Gain (Loss) on Derivatives	(17)			9
Fixed price swaps – ethane	Gain (Loss) on Derivatives	(4)			6
Fixed price swaps – propane	Gain (Loss) on Derivatives	(30)			10
Fixed price swaps – normal butane	Gain (Loss) on Derivatives	(7)			—
Fixed price swaps – natural gasoline	Gain (Loss) on Derivatives	(9)			—
Two-way costless collars – natural gas	Gain (Loss) on Derivatives	2			6
Two-way costless collars – oil	Gain (Loss) on Derivatives	(1)			3
Two-way costless collars – propane	Gain (Loss) on Derivatives	—			1
Three-way costless collars – natural gas	Gain (Loss) on Derivatives	1			36
Three-way costless collars – oil	Gain (Loss) on Derivatives	(1)			1
Basis swaps – natural gas	Gain (Loss) on Derivatives	41			16
Put options – natural gas	Gain (Loss) on Derivatives	(2)		(2)	—
Fixed price swaps – natural gas storage	Gain (Loss) on Derivatives	—			1
Total gain (loss) on settled derivatives		$	(22)		$	93
Total gain (loss) on derivatives		$	(191)		$	339

(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 $2 million amortization of premiums paid related to certain natural gas put options for the three months ended March 31, 2021 which is included in gain (loss) on derivatives on the consolidated statements of operations.

XML

Reclassifications from Accumulated Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 2021

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Components of Accumulated Other Comprehensive Income (Loss)

The following tables detail the components of accumulated other comprehensive income and the related tax effects for the three months ended March 31, 2021:

(in millions)	Pension and Other Postretirement		Foreign Currency		Total
Beginning balance December 31, 2020	$	(24)	$	(14)	$	(38)
Other comprehensive income before reclassifications	—		—		—
Amounts reclassified from other comprehensive income (1)	—		—		—
Net current-period other comprehensive income	—		—		—
Ending balance March 31, 2021	$	(24)	$	(14)	$	(38)

Reclassification out of Accumulated Other Comprehensive Income

Details about Accumulated Other Comprehensive Income	Affected Line Item in the Consolidated Statement of Operations	Amount Reclassified from Accumulated Other Comprehensive Income
		For the three months ended March 31, 2021
		(in millions)
Pension and other postretirement:
Amortization of prior service cost and net gain (1)	Other Income, Net	$	—
	Provision (Benefit) for Income Taxes	—
	Net Income (Loss)	$	—
Total reclassifications for the period	Net Income (Loss)	$	—

(1) For the three months ended March 31, 2021, the amount reclassified from accumulated other comprehensive income was immaterial. See Note 14 for additional details regarding the Company’s pension and other postretirement benefit plans.

XML

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Carrying Amount and Estimated Fair Values of Financial Instruments

The carrying amounts and estimated fair values of the Company’s financial instruments as of March 31, 2021 and December 31, 2020 were as follows:

	March 31, 2021				December 31, 2020
(in millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Cash and cash equivalents	$	4	$	4	$	13	$	13
2018 revolving credit facility due April 2024	567		567		700		700
Senior notes (1)	2,471		2,640		2,471		2,609
Derivative instruments, net	(210)		(210)		(41)		(41)

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

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:

	March 31, 2021
	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	—		26		—		26
Two-way costless collars	—		41		—		41
Three-way costless collars	—		141		—		141
Basis swaps	—		85		—		85
Call options	—		1		—		1
Interest rate swap	—		1		—		1
Liabilities
Fixed price swaps	—		(207)		—		(207)
Two-way costless collars	—		(45)		—		(45)
Three-way costless collars	—		(200)		—		(200)
Basis swaps	—		(17)		—		(17)
Call options	—		(35)		—		(35)
Put options	—		(1)		—		(1)
Swaptions	—		(1)		—		(1)
Total (1)	$	—	$	(210)	$	—	$	(210)

(1)Includes a net reduction to the liability fair value of less than $1 million related to estimated nonperformance risk.

	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 (1)	$	—	$	(41)	$	—	$	(41)

(1)Includes a net reduction to the liability fair value of $1 million related to estimated nonperformance risk.

XML

Debt (Tables)

3 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

Components of Debt

The components of debt as of March 31, 2021 and December 31, 2020 consisted of the following:

	March 31, 2021
(in millions)	Debt Instrument		Unamortized Issuance Expense			Unamortized Debt Discount		Total
Current portion of long-term debt:
4.10% Senior Notes due March 2022	$	207	$	—		$	—	$	207
Total current portion of long-term debt	$	207	$	—		$	—	$	207
Long-term debt:
Variable rate (2.09% at March 31, 2021) 2018 revolving credit facility due April 2024	$	567	$	—	(1)	$	—	$	567
4.95% Senior Notes due January 2025 (2)	856		(4)			(1)		851
7.50% Senior Notes due April 2026	618		(5)			—		613
7.75% Senior Notes due October 2027	440		(4)			—		436
8.375% Senior Notes due September 2028	350		(5)			—		345
Total long-term debt	$	2,831	$	(18)		$	(1)	$	2,812
Total debt	$	3,038	$	(18)		$	(1)	$	3,019
	December 31, 2020
(in millions)	Debt Instrument		Unamortized Issuance Expense			Unamortized Debt Discount		Total
Long-term debt:
Variable rate (2.11% at December 31, 2020) 2018 term loan facility due April 2024	$	700	$	—	(1)	$	—	$	700
4.10% Senior Notes due March 2022	207		—			—		207
4.95% Senior Notes due January 2025 (2)	856		(4)			(1)		851
7.50% Senior Notes due April 2026	618		(6)			—		612
7.75% Senior Notes due October 2027	440		(5)			—		435
8.375% Senior Notes due September 2028	350		(5)			—		345
Total long-term debt	$	3,171	$	(20)		$	(1)	$	3,150

(1)At March 31, 2021 and December 31, 2020, unamortized issuance expense of $11 million and $12 million, respectively, associated with the 2018 credit facility (as defined below) was classified as other long-term assets on the consolidated balance sheets.

(2)Effective in July 2018, the interest rate was 6.20% for the 2025 Notes, reflecting a net downgrade in the Company’s bond ratings since the initial offering. On April 7, 2020, S&P downgraded the Company’s bond rating to BB-, which had the effect of increasing the interest rate on the 2025 Notes to 6.45% following the July 23, 2020 interest payment date. The first coupon payment to the bondholders at the higher interest rate was paid in January 2021.

Schedule of Maturities of Long-term Debt

The following is a summary of scheduled debt maturities by year as of March 31, 2021:

(in millions)
2021	$	—
2022	207
2023	—
2024	567
2025	856
Thereafter	1,408
	$	3,038

(1)The Company’s current revolving credit facility matures in 2024.

XML

Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Obligation under Transportation Agreements

As of March 31, 2021, future payments under non-cancelable firm transportation and gathering agreements were as follows:

	Payments Due by Period
(in millions)	Total		Less than 1 Year		1 to 3 Years		3 to 5 Years		5 to 8 Years		More than 8 Years
Infrastructure currently in service	$	7,915	$	789	$	1,539	$	1,295	$	1,752	$	2,540
Pending regulatory approval and/or construction (1)	436		2		30		38		81		285
Total transportation charges	$	8,351	$	791	$	1,569	$	1,333	$	1,833	$	2,825

(1)Based on estimated in-service dates as of March 31, 2021.

XML

Pension Plan and Other Postretirement Benefits (Tables)

3 Months Ended

Mar. 31, 2021

Retirement Benefits [Abstract]

Pension and Other Postretirement Benefit Costs

The Company maintains defined pension and other postretirement benefit plans, which cover substantially all of the Company’s employees.  As part of ongoing effort to reduce costs, the Company elected to freeze its pension plan effective January 1, 2021. Employees that were participants in the pension plan prior to January 1, 2021 will continue to receive the interest component of the plan but will no longer receive the service component. Net periodic pension costs include the following components for the three months ended March 31, 2021 and 2020:

	Consolidated Statements of Operations Classification of Net Periodic Benefit Cost	For the three months ended March 31,
(in millions)		2021		2020
Service cost	General and administrative expenses	$	—	$	2
Interest cost	Other Income (Loss), Net	1		1
Expected return on plan assets	Other Income (Loss), Net	(1)		(1)
Net periodic benefit cost		$	—	$	2

XML

Long-term Incentive Compensation (Tables)

3 Months Ended

Mar. 31, 2021

Share-based Payment Arrangement, Noncash Expense [Abstract]

Schedule of Stock-Based Compensation Costs

The Company recognized the following amounts in total employee stock-based compensation costs for the three months ended March 31, 2021 and 2020:

	For the three months ended March 31,
(in millions)	2021		2020
Stock-based compensation cost – expensed	$	13	$	—
Stock-based compensation cost – capitalized	5		—

Schedule of Equity-Classified Stock-Based Compensation Costs

The Company recognized the following amounts in employee equity-classified stock-based compensation costs for the three months ended March 31, 2021 and 2020:

	For the three months ended March 31,
(in millions)	2021		2020
Equity-classified awards – expensed	$	—	$	1
Equity-classified awards – capitalized	—		—

Summary of Equity-Classified Stock Option Activity

The following table summarizes equity-classified stock option activity for the three months ended March 31, 2021 and provides information for options outstanding and options exercisable as of March 31, 2021:

	Number of Options	Weighted Average Exercise Price
	(in thousands)
Outstanding at December 31, 2020	3,850	$	13.39
Granted	—	$	—
Exercised	—	$	—
Forfeited or expired	(61)	$	10.93
Outstanding at March 31, 2021	3,789	$	13.43
Exercisable at March 31, 2021	3,789	$	13.43

Summary of Equity-Classified Restricted Stock Activity

The following table summarizes equity-classified restricted stock activity for the three months ended March 31, 2021 and provides information for unvested shares as of March 31, 2021:

	Number of Shares	Weighted Average Fair Value
	(in thousands)
Unvested shares at December 31, 2020	697	$	5.97
Granted	10	$	2.98
Vested	(451)	$	7.61
Forfeited	—	$	8.59
Unvested shares at March 31, 2021	256	$	2.94

Summary of Equity-Classified Performance Units Activity

The following table summarizes equity-classified performance unit activity for the three months ended March 31, 2021 and provides information for unvested units as of March 31, 2021. 

	Number of Shares	Weighted Average Fair Value
	(in thousands)
Unvested units at December 31, 2020	134	$	3.05
Granted	—	—
Vested	(45)	3.05
Forfeited	—	—
Unvested Units at March 31, 2021	89	3.05

Schedule of Liability-Classified Stock-Based Compensation Costs

The Company recognized the following amounts in employee liability-classified stock-based compensation costs for the three months ended March 31, 2021:

	For the three months ended March 31,
(in millions)	2021		2020
Liability-classified stock-based compensation cost – expensed	$	13	$	(1)
Liability-classified stock-based compensation cost – capitalized	5		—

Summary of Liability-Classified Restricted Stock Unit Activity

As of March 31, 2021, there was $32 million of total unrecognized compensation cost related to liability-classified restricted stock units that is expected to be recognized over a weighted-average period of 2.2 years. The amount of unrecognized compensation cost for liability-classified awards will fluctuate over time as they are marked to market.

	Number of Units	Weighted Average Fair Value
	(in thousands)
Unvested units at December 31, 2020	11,613	$	2.67
Granted	1,486	$	4.23
Vested	(4,522)	$	3.40
Forfeited	(416)	$	4.31
Unvested units at March 31, 2021	8,161	$	4.07

Summary of Liability-Classified Performance Unit Activity

	Number of Units	Weighted Average Fair Value
	(in thousands)
Unvested units at December 31, 2020	8,699	$	2.57
Granted	3,580	$	4.14
Vested	(2,020)	$	4.05
Forfeited	(622)	$	2.98
Unvested units at March 31, 2021	9,637	$	2.88

Summary of Liability-Classified Performance Unit Activity

	Number of Units	Weighted Average Fair Value
	(in thousands)
Unvested units at December 31, 2020	18,353	$	1.00
Granted	18,546	$	1.00
Vested	(4,319)	$	1.00
Forfeited	(1,615)	$	1.00
Unvested units at March 31, 2021	30,965	$	1.00

XML

Segment Information (Tables)

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Summary of Financial Information for Company's Reportable Segments

Summarized financial information for the Company’s reportable segments is shown in the following table.  The accounting policies of the segments are the same as those described in Note 1 of the Notes to Consolidated Financial Statements included in Item 8 of the 2020 Annual Report.  Management evaluates the performance of its segments based on operating income, defined as operating revenues less operating costs.  Income before income taxes, for the purpose of reconciling the operating income amount shown below to consolidated income before income taxes, is the sum of operating income, interest expense, gain (loss) on derivatives, gain on early extinguishment of debt and other income (loss).  The “Other” column includes items not related to the Company’s reportable segments, including real estate and corporate items. Corporate general and administrative costs, depreciation expense and taxes, other than income taxes, are allocated to the segments.

	E&P			Marketing		Other		Total
Three months ended March 31, 2021	(in millions)
Revenues from external customers	$	719		$	353	$	—	$	1,072
Intersegment revenues	(14)			644		—		630
Depreciation, depletion and amortization expense	94			2		—		96
Operating income	295		(1)	6		—		301
Interest expense (2)	31			—		—		31
Loss on derivatives	(191)			—		—		(191)
Other income, net	1			—		—		1
Assets	4,741		(3)	396		110		5,247
Capital investments (4)	266			—		—		266
Three months ended March 31, 2020
Revenues from external customers	$	353		$	239	$	—	$	592
Intersegment revenues	(9)			309		—		300
Depreciation, depletion and amortization expense	111			2		—		113
Impairments	1,479			—		—		1,479
Operating loss	(1,486)		(1)	(4)		—		(1,490)
Interest expense (2)	19			—		—		19
Gain on derivatives	339			—		—		339
Gain on early extinguishment of debt	—			—		28		28
Other income, net	1			—		—		1
Benefit from income taxes (2)	406			—		—		406
Assets	4,900		(3)	214		161		5,275
Capital investments (4)	237			—		—		237

(1)Operating income (loss) for the E&P segment includes $6 million and $10 million of restructuring charges for the three months ended March 31, 2021 and 2020, respectively. The E&P segment operating income (loss) also includes $1 million of merger-related charges for the three months ended March 31, 2021.

(2)Interest expense and provision (benefit) for income taxes by segment is an allocation of corporate amounts as they are incurred at the corporate level.

(3)E&P assets includes office, technology, water infrastructure, drilling rigs and other ancillary equipment not directly related to natural gas and oil properties. E&P assets also includes deferred tax assets which are an allocation of corporate amounts as they are incurred at the corporate level.

(4)Capital investments include increases of $38 million and $8 million for the three months ended March 31, 2021 and 2020, respectively, relating to the change in accrued expenditures between periods.

The following table presents the breakout of other assets, which represent corporate assets not allocated to segments and assets for non-reportable segments at March 31, 2021 and 2020:

	As of March 31,
(in millions)	2021		2020
Cash and cash equivalents	$	4	$	5
Income taxes receivable	—		32
Prepayments	6		9
Property, plant and equipment	15		23
Unamortized debt expense	11		10
Right-of-use lease assets	70		77
Non-qualified retirement plan	4		5
	$	110	$	161

XML

Basis of Presentation (Narrative) (Details)	3 Months Ended
	Mar. 31, 2021 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of segments	2

XML

ACQUISITION (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions		1 Months Ended	3 Months Ended
	Nov. 13, 2020	Aug. 31, 2020	Mar. 31, 2021	Dec. 31, 2020
Montage Resources Corporation
Business Acquisition [Line Items]
Number of Southwestern Energy common stock for each share of Montage Resources Corporation common stock converted (in shares)	1.8656
Offering price (in dollars per share)	$ 3.05
Percentage of voting interest	90.00%
Revenues associated with the operations acquired through the Merger			$ 130
Net income attributable to common stockholders associated with the operations acquired through the Merger			61
Employee severance and related costs			$ 1
Montage Resources Corporation | Public Stock Offering
Business Acquisition [Line Items]
Offering price (in dollars per share)		$ 2.50
Underwritten public offering of common stock (in shares)		63,250,000
Net proceeds from public offering		$ 152
Montage Resources Corporation | Montage Resources Corporation
Business Acquisition [Line Items]
Percentage of voting interest	10.00%
Senior Notes | 8.375% Senior Notes due September 2028
Business Acquisition [Line Items]
Senior notes		$ 350
Stated interest rate		8.375%	8.375%	8.375%
Senior Notes | Montage Resources Corporation | Eight Point Eight Seven Five Percent Senior Notes Due 2023
Business Acquisition [Line Items]
Senior notes		$ 510
Stated interest rate		8.875%
Senior Notes | Montage Resources Corporation | 8.375% Senior Notes due September 2028
Business Acquisition [Line Items]
Senior notes		$ 350
Stated interest rate		8.375%

XML

ACQUISITION - (Schedule of consideration Paid to Stockholders of Montage) (Details) - USD ($) $ / shares in Units, $ in Millions	Nov. 13, 2020	Mar. 31, 2021	Dec. 31, 2020
Business Acquisition, Equity Interests Issued or Issuable [Line Items]
Common stock, par value (in dollars per shares)	$ 0.01	$ 0.01	$ 0.01
Montage Resources Corporation
Business Acquisition, Equity Interests Issued or Issuable [Line Items]
Shares of Southwestern common stock issued in respect of outstanding Montage common stock	67,311,166
Shares of Southwestern common stock issued in respect of Montage stock-based awards	2,429,682
Shares of Southwestern common stock issued during Merger	69,740,848
NYSE closing price per share of Southwestern common shares on November 13, 2020 (in dollars per share)	$ 3.05
Total consideration (fair value of Southwestern common shares issued)	$ 213
Montage Resources Corporation | Additional Paid-In Capital
Business Acquisition, Equity Interests Issued or Issuable [Line Items]
Montage merger exchange	212
Montage Resources Corporation | Common Stock
Business Acquisition, Equity Interests Issued or Issuable [Line Items]
Montage merger exchange	$ 1

XML

ACQUISITION - (Schedule of the Allocation of Purchase Price) (Details) - Montage Resources Corporation $ in Millions	Nov. 13, 2020 USD ($)
Consideration:
Fair value of Southwestern’s stock issued on November 13, 2020	$ 213
Cash and cash equivalents	3
Accounts receivable	73
Other current assets	1
Derivative assets	11
Evaluated natural gas and oil properties	1,012
Unevaluated natural gas and oil properties	90
Other property, plant and equipment	28
Other long-term assets	26
Total assets acquired	1,244
Accounts payable	145
Other current liabilities	49
Derivative liabilities	70
Revolving credit facility	200
Senior unsecured notes	522
Asset retirement obligations	28
Other long-term liabilities	17
Total liabilities assumed	1,031
Net assets acquired and liabilities assumed	$ 213

XML

ACQUISITION - (Schedule of Pro Forma) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2020 USD ($)
Pro forma results for the three months ended March 31, 2020
Revenues	$ 725
Net income (loss) attributable to common stock	$ (1,498)

XML

Restructuring Charges (Summary of Restructuring Charges) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 6	$ 10
E&P
Restructuring Cost and Reserve [Line Items]
Restructuring charges	6	10
Workforce Reduction
Restructuring Cost and Reserve [Line Items]
Severance (including payroll taxes)	6	10
Restructuring charges	6
Workforce Reduction | E&P
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 6	$ 10

XML

Restructuring Charges (Restructuring Reserve Rollforward) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Restructuring Reserve [Roll Forward]
Additions	$ 6	$ 10
Workforce Reduction
Restructuring Reserve [Roll Forward]
Liability at December 31, 2020	3
Additions	6
Distributions	(9)
Liability at March 31, 2021	$ 0

XML

Revenue Recognition (Narrative) (Details)	3 Months Ended
	Mar. 31, 2021 USD ($)
Disaggregation of Revenue [Line Items]
Contract asset associated with revenues from contracts with customers	$ 0
Contract liability associated with revenues from contracts with customers	$ 0
Minimum | NGL sales
Disaggregation of Revenue [Line Items]
Payment terms	30 days
Minimum | Marketing
Disaggregation of Revenue [Line Items]
Payment terms	30 days
Maximum | NGL sales
Disaggregation of Revenue [Line Items]
Payment terms	60 days
Maximum | Marketing
Disaggregation of Revenue [Line Items]
Payment terms	60 days

XML

Revenue Recognition (Disaggregation of Revenue by Segment) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Disaggregation of Revenue [Line Items]
Total operating revenues	$ 1,072	$ 592
E&P
Disaggregation of Revenue [Line Items]
Total operating revenues	719	353
Marketing
Disaggregation of Revenue [Line Items]
Total operating revenues	353	239
Operating Segments | E&P
Disaggregation of Revenue [Line Items]
Total operating revenues	705	344
Operating Segments | Marketing
Disaggregation of Revenue [Line Items]
Total operating revenues	997	548
Intersegment Revenues
Disaggregation of Revenue [Line Items]
Total operating revenues	630	300
Intersegment Revenues | E&P
Disaggregation of Revenue [Line Items]
Total operating revenues	(14)	(9)
Intersegment Revenues | Marketing
Disaggregation of Revenue [Line Items]
Total operating revenues	644	309
Gas sales
Disaggregation of Revenue [Line Items]
Total operating revenues	464	248
Gas sales | Operating Segments | E&P
Disaggregation of Revenue [Line Items]
Total operating revenues	451	239
Gas sales | Operating Segments | Marketing
Disaggregation of Revenue [Line Items]
Total operating revenues	0	0
Gas sales | Intersegment Revenues
Disaggregation of Revenue [Line Items]
Total operating revenues	(13)	(9)
Oil sales
Disaggregation of Revenue [Line Items]
Total operating revenues	81	52
Oil sales | Operating Segments | E&P
Disaggregation of Revenue [Line Items]
Total operating revenues	80	52
Oil sales | Operating Segments | Marketing
Disaggregation of Revenue [Line Items]
Total operating revenues	0	0
Oil sales | Intersegment Revenues
Disaggregation of Revenue [Line Items]
Total operating revenues	(1)	0
NGL sales
Disaggregation of Revenue [Line Items]
Total operating revenues	173	50
NGL sales | Operating Segments | E&P
Disaggregation of Revenue [Line Items]
Total operating revenues	173	50
NGL sales | Operating Segments | Marketing
Disaggregation of Revenue [Line Items]
Total operating revenues	0	0
NGL sales | Intersegment Revenues
Disaggregation of Revenue [Line Items]
Total operating revenues	0	0
Marketing
Disaggregation of Revenue [Line Items]
Total operating revenues	352	239
Marketing | Operating Segments | E&P
Disaggregation of Revenue [Line Items]
Total operating revenues	0	0
Marketing | Operating Segments | Marketing
Disaggregation of Revenue [Line Items]
Total operating revenues	996	548
Marketing | Intersegment Revenues
Disaggregation of Revenue [Line Items]
Total operating revenues	644	309
Other
Disaggregation of Revenue [Line Items]
Total operating revenues	2	3
Other | Operating Segments | E&P
Disaggregation of Revenue [Line Items]
Total operating revenues	1	3
Other | Operating Segments | Marketing
Disaggregation of Revenue [Line Items]
Total operating revenues	1	0
Other | Intersegment Revenues
Disaggregation of Revenue [Line Items]
Total operating revenues	$ 0	$ 0

XML

Revenue Recognition (Disaggregation of Revenue on Geographic Basis) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Disaggregation of Revenue [Line Items]
Total operating revenues	$ 1,072	$ 592
E&P
Disaggregation of Revenue [Line Items]
Total operating revenues	719	353
Operating Segments | E&P
Disaggregation of Revenue [Line Items]
Total operating revenues	705	344
Operating Segments | E&P | Northeast Appalachia
Disaggregation of Revenue [Line Items]
Total operating revenues	263	195
Operating Segments | E&P | Southwest Appalachia
Disaggregation of Revenue [Line Items]
Total operating revenues	441	149
Operating Segments | E&P | Other
Disaggregation of Revenue [Line Items]
Total operating revenues	$ 1	$ 0

XML

Revenue Recognition (Reconciliation of Accounts Receivable) (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Receivables from contracts with customers	$ 381	$ 350
Other accounts receivable	19	18
Total accounts receivable	$ 400	$ 368

XML

Cash and Cash Equivalents (Summary of Cash and Cash Equivalents) (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Cash and Cash Equivalents [Abstract]
Cash	$ 4	$ 13
Marketable securities	0	0
Total	$ 4	$ 13

XML

Natural Gas and Oil Properties (Narrative) (Details)	3 Months Ended
	Mar. 31, 2021 USD ($) derivative_position $ / MMBTU $ / bbl	Mar. 31, 2020 USD ($) $ / bbl $ / MMBTU
Natural Gas and Oil Properties [Line Items]
Natural gas, oil and NGL reserves discount	10.00%
Period of time needed to calculate ceiling value of reserves	12 months
Number of hedge positions designated for hedge accounting | derivative_position	0
Impairments	$ 0	$ 1,479,000,000
Net book value adjusted for market differentials		$ 1,500,000,000
Montage Resources Corporation
Natural Gas and Oil Properties [Line Items]
Impairments	0
Unamortized cost of properties acquired	1,102,000,000
Montage Resources Corporation | Pro Forma
Natural Gas and Oil Properties [Line Items]
Impairments	$ 0
Natural Gas
Natural Gas and Oil Properties [Line Items]
Full cost ceiling test, price per MMBtu (in dollars per MMBtu) | $ / MMBTU	2.16	2.30
Oil
Natural Gas and Oil Properties [Line Items]
Full cost ceiling test, price per barrel (in dollars per bbl) | $ / bbl	40.01	55.77
NGL
Natural Gas and Oil Properties [Line Items]
Full cost ceiling test, price per barrel (in dollars per bbl) | $ / bbl	13.57	9.96

XML

Earnings Per Share (Narrative) (Details) - Montage Resources Corporation - USD ($) $ / shares in Units, $ in Millions	1 Months Ended
	Aug. 31, 2020	Nov. 13, 2020
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Offering price (in dollars per share)		$ 3.05
Public Stock Offering
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Underwritten public offering of common stock (in shares)	63,250,000
Offering price (in dollars per share)	$ 2.50
Net proceeds from public offering	$ 152

XML

Earnings Per Share (Schedule of Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income (loss)	$ 80	$ (1,547)
Number of common shares:
Weighted average outstanding (in shares)	675,385,145	540,308,491
Weighted average and potential dilutive outstanding (in shares)	679,867,825	540,308,491
Earnings per common share
Basic (in dollars per share)	$ 0.12	$ (2.86)
Diluted (in dollars per share)	$ 0.12	$ (2.86)
Stock options
Number of common shares:
Issued upon assumed exercise of outstanding stock options (in shares)	0	0
Restricted Common Stock
Number of common shares:
Effect of issuance of non-vested restricted common stock (in shares)	870,541	0
Restricted stock units
Number of common shares:
Effect of issuance of non-vested restricted common stock (in shares)	804,944	0
Performance units
Number of common shares:
Effect of issuance of non-vested performance units (in shares)	2,807,195	0

XML

Earnings Per Share (Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share) (Details) - shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	7,782,382	9,179,214
Unexercised stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	3,795,091	4,584,563
Unvested share-based payment
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	0	1,006,860
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	3,987,291	1,312,293
Performance units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	0	2,275,498

XML

Derivatives and Risk Management (Schedule of Derivative Instruments Notional Amount, Weighted Average Contract Prices and Fair Value) (Details) bbl in Thousands, Mcf in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2021 USD ($) $ / bbl $ / MMBTU Mcf bbl
Financial protection on production - 2021 | Not Designated as Hedging Instrument | Natural Gas
Derivative [Line Items]
Volume (Bcf, MBbls) | Mcf	589.0
Fair value	$ (8)
Financial protection on production - 2021 | Not Designated as Hedging Instrument | Oil
Derivative [Line Items]
Volume (Bcf, MBbls) | bbl	4,926
Fair value	$ (41)
Financial protection on production - 2021 | Not Designated as Hedging Instrument | Ethane
Derivative [Line Items]
Volume (Bcf, MBbls) | bbl	4,869
Fair value	$ (11)
Fixed Price Swaps - 2021 | Not Designated as Hedging Instrument | Natural Gas
Derivative [Line Items]
Volume (Bcf, MBbls) | Mcf	176.0
Weighted average price (in dollars per MMBtu, Bbl) | $ / MMBTU	2.79
Fair value	$ 14
Fixed Price Swaps - 2021 | Not Designated as Hedging Instrument | Oil
Derivative [Line Items]
Volume (Bcf, MBbls) | bbl	3,272
Weighted average price (in dollars per MMBtu, Bbl) | $ / bbl	49.27
Fair value	$ (29)
Fixed Price Swaps - 2021 | Not Designated as Hedging Instrument | Ethane
Derivative [Line Items]
Volume (Bcf, MBbls) | bbl	4,429
Weighted average price (in dollars per MMBtu, Bbl) | $ / bbl	7.17
Fair value	$ (11)
Fixed Price Swaps - 2021 | Not Designated as Hedging Instrument | Propane
Derivative [Line Items]
Volume (Bcf, MBbls) | bbl	5,443
Weighted average price (in dollars per MMBtu, Bbl) | $ / bbl	20.84
Fair value	$ (69)
Fixed Price Swaps - 2021 | Not Designated as Hedging Instrument | Normal Butane
Derivative [Line Items]
Volume (Bcf, MBbls) | bbl	1,568
Weighted average price (in dollars per MMBtu, Bbl) | $ / bbl	25.30
Fair value	$ (19)
Fixed Price Swaps - 2021 | Not Designated as Hedging Instrument | Natural Gasoline
Derivative [Line Items]
Volume (Bcf, MBbls) | bbl	1,513
Weighted average price (in dollars per MMBtu, Bbl) | $ / bbl	37.91
Fair value	$ (27)
Two-way Costless Collars-2021 | Not Designated as Hedging Instrument | Natural Gas
Derivative [Line Items]
Volume (Bcf, MBbls) | Mcf	195.0
Fair value	$ 1
Two-way Costless Collars-2021 | Not Designated as Hedging Instrument | Oil
Derivative [Line Items]
Volume (Bcf, MBbls) | bbl	156
Fair value	$ (2)
Two-way Costless Collars-2021 | Not Designated as Hedging Instrument | Ethane
Derivative [Line Items]
Volume (Bcf, MBbls) | bbl	440
Fair value	$ 0
Two-way Costless Collars - 2021 Sold Calls | Not Designated as Hedging Instrument | Natural Gas
Derivative [Line Items]
Cap price (in dollars per MMBtu, Bbl) | $ / MMBTU	2.93
Two-way Costless Collars - 2021 Sold Calls | Not Designated as Hedging Instrument | Oil
Derivative [Line Items]
Cap price (in dollars per MMBtu, Bbl) | $ / bbl	45.73
Two-way Costless Collars - 2021 Sold Calls | Not Designated as Hedging Instrument | Ethane
Derivative [Line Items]
Cap price (in dollars per MMBtu, Bbl) | $ / bbl	10.40
Three-way Costless-collars - 2021 | Not Designated as Hedging Instrument | Natural Gas
Derivative [Line Items]
Volume (Bcf, MBbls) | Mcf	218.0
Fair value	$ (23)
Three-way Costless-collars - 2021 | Not Designated as Hedging Instrument | Oil
Derivative [Line Items]
Volume (Bcf, MBbls) | bbl	1,498
Fair value	$ (10)
Three-Way Costless Collars - 2021 Sold Calls | Not Designated as Hedging Instrument | Natural Gas
Derivative [Line Items]
Cap price (in dollars per MMBtu, Bbl) | $ / MMBTU	2.84
Three-Way Costless Collars - 2021 Sold Calls | Not Designated as Hedging Instrument | Oil
Derivative [Line Items]
Cap price (in dollars per MMBtu, Bbl) | $ / bbl	53.10
Financial protection on production - 2022 | Not Designated as Hedging Instrument | Natural Gas
Derivative [Line Items]
Volume (Bcf, MBbls) | Mcf	453.0
Fair value	$ (18)
Financial protection on production - 2022 | Not Designated as Hedging Instrument | Oil
Derivative [Line Items]
Volume (Bcf, MBbls) | bbl	3,099
Fair value	$ (14)
Financial protection on production - 2022 | Not Designated as Hedging Instrument | Ethane
Derivative [Line Items]
Volume (Bcf, MBbls) | bbl	1,893
Fair value	$ (1)
Financial protection on production - 2022 | Not Designated as Hedging Instrument | Propane
Derivative [Line Items]
Volume (Bcf, MBbls) | bbl	3,028
Fair value	$ (15)
Fixed Price Swaps - 2022 | Not Designated as Hedging Instrument | Natural Gas
Derivative [Line Items]
Volume (Bcf, MBbls) | Mcf	112.0
Weighted average price (in dollars per MMBtu, Bbl) | $ / MMBTU	2.68
Fair value	$ (2)
Fixed Price Swaps - 2022 | Not Designated as Hedging Instrument | Oil
Derivative [Line Items]
Volume (Bcf, MBbls) | bbl	1,719
Weighted average price (in dollars per MMBtu, Bbl) | $ / bbl	48.54
Fair value	$ (10)
Fixed Price Swaps - 2022 | Not Designated as Hedging Instrument | Ethane
Derivative [Line Items]
Volume (Bcf, MBbls) | bbl	1,758
Weighted average price (in dollars per MMBtu, Bbl) | $ / bbl	8.68
Fair value	$ (1)
Fixed Price Swaps - 2022 | Not Designated as Hedging Instrument | Propane
Derivative [Line Items]
Volume (Bcf, MBbls) | bbl	2,723
Weighted average price (in dollars per MMBtu, Bbl) | $ / bbl	21.83
Fair value	$ (14)
Fixed Price Swaps - 2022 | Not Designated as Hedging Instrument | Normal Butane
Derivative [Line Items]
Volume (Bcf, MBbls) | bbl	888
Weighted average price (in dollars per MMBtu, Bbl) | $ / bbl	24.47
Fair value	$ (5)
Fixed Price Swaps - 2022 | Not Designated as Hedging Instrument | Natural Gasoline
Derivative [Line Items]
Volume (Bcf, MBbls) | bbl	857
Weighted average price (in dollars per MMBtu, Bbl) | $ / bbl	40.48
Fair value	$ (8)
Two Way Costless Collars - 2022 | Not Designated as Hedging Instrument | Natural Gas
Derivative [Line Items]
Volume (Bcf, MBbls) | Mcf	63.0
Fair value	$ (3)
Two Way Costless Collars - 2022 | Not Designated as Hedging Instrument | Ethane
Derivative [Line Items]
Volume (Bcf, MBbls) | bbl	135
Fair value	$ 0
Two Way Costless Collars - 2022 Sold Calls | Not Designated as Hedging Instrument | Natural Gas
Derivative [Line Items]
Cap price (in dollars per MMBtu, Bbl) | $ / MMBTU	3.03
Two Way Costless Collars - 2022 Sold Calls | Not Designated as Hedging Instrument | Ethane
Derivative [Line Items]
Cap price (in dollars per MMBtu, Bbl) | $ / bbl	9.66
Three-Way Costless Collars - 2022 | Not Designated as Hedging Instrument | Natural Gas
Derivative [Line Items]
Volume (Bcf, MBbls) | Mcf	278.0
Fair value	$ (13)
Three-Way Costless Collars - 2022 | Not Designated as Hedging Instrument | Oil
Derivative [Line Items]
Volume (Bcf, MBbls) | bbl	1,380
Fair value	$ (4)
Three-Way Costless Collars - 2022 | Not Designated as Hedging Instrument | Propane
Derivative [Line Items]
Volume (Bcf, MBbls) | bbl	305
Fair value	$ (1)
Three-way Costless Collars 2022 - Sold Calls | Not Designated as Hedging Instrument | Natural Gas
Derivative [Line Items]
Cap price (in dollars per MMBtu, Bbl) | $ / MMBTU	2.97
Three-way Costless Collars 2022 - Sold Calls | Not Designated as Hedging Instrument | Oil
Derivative [Line Items]
Cap price (in dollars per MMBtu, Bbl) | $ / bbl	57.05
Three-way Costless Collars 2022 - Sold Calls | Not Designated as Hedging Instrument | Propane
Derivative [Line Items]
Cap price (in dollars per MMBtu, Bbl) | $ / bbl	31.92
Three Way Costless Collars - 2023 | Not Designated as Hedging Instrument | Natural Gas
Derivative [Line Items]
Volume (Bcf, MBbls) | Mcf	103.0
Fair value	$ (4)
Three Way Costless Collars - 2023 | Not Designated as Hedging Instrument | Oil
Derivative [Line Items]
Volume (Bcf, MBbls) | bbl	1,268
Fair value	$ (4)
Three Way Costless Collars - 2023 Sold Calls | Not Designated as Hedging Instrument | Natural Gas
Derivative [Line Items]
Cap price (in dollars per MMBtu, Bbl) | $ / MMBTU	3.01
Three Way Costless Collars - 2023 Sold Calls | Not Designated as Hedging Instrument | Oil
Derivative [Line Items]
Cap price (in dollars per MMBtu, Bbl) | $ / bbl	56.12
Basis Swaps | Not Designated as Hedging Instrument | Natural Gas
Derivative [Line Items]
Volume (Bcf, MBbls) | Mcf	605.0
Fair value	$ 68
Basis Swaps - 2021 | Not Designated as Hedging Instrument | Natural Gas
Derivative [Line Items]
Volume (Bcf, MBbls) | Mcf	233.0
Basis differential per MMBtu | $ / MMBTU	(0.49)
Fair value	$ 39
Basis Swaps - 2022 | Not Designated as Hedging Instrument | Natural Gas
Derivative [Line Items]
Volume (Bcf, MBbls) | Mcf	220.0
Basis differential per MMBtu | $ / MMBTU	(0.44)
Fair value	$ 24
Basis Swap - 2023 | Not Designated as Hedging Instrument | Natural Gas
Derivative [Line Items]
Volume (Bcf, MBbls) | Mcf	119.0
Basis differential per MMBtu | $ / MMBTU	(0.56)
Fair value	$ 4
Basis Swap - 2024 | Not Designated as Hedging Instrument | Natural Gas
Derivative [Line Items]
Volume (Bcf, MBbls) | Mcf	24.0
Basis differential per MMBtu | $ / MMBTU	(0.64)
Fair value	$ 1
Basis Swap - 2025 | Not Designated as Hedging Instrument | Natural Gas
Derivative [Line Items]
Volume (Bcf, MBbls) | Mcf	9.0
Basis differential per MMBtu | $ / MMBTU	(0.64)
Fair value	$ 0
Call options | Not Designated as Hedging Instrument | Natural Gas
Derivative [Line Items]
Volume (Bcf, MBbls) | Mcf	189.0
Fair value	$ (33)
Call Options 2021 | Not Designated as Hedging Instrument | Natural Gas
Derivative [Line Items]
Volume (Bcf, MBbls) | Mcf	57.0
Cap price (in dollars per MMBtu, Bbl) | $ / MMBTU	3.19
Fair value	$ (4)
Call Options 2021 | Not Designated as Hedging Instrument | Oil
Derivative [Line Items]
Volume (Bcf, MBbls) | bbl	171
Cap price (in dollars per MMBtu, Bbl) | $ / bbl	60.00
Fair value	$ (1)
Call Options 2022 | Not Designated as Hedging Instrument | Natural Gas
Derivative [Line Items]
Volume (Bcf, MBbls) | Mcf	77.0
Cap price (in dollars per MMBtu, Bbl) | $ / MMBTU	3.00
Fair value	$ (16)
Call Options 2023 | Not Designated as Hedging Instrument | Natural Gas
Derivative [Line Items]
Volume (Bcf, MBbls) | Mcf	46.0
Cap price (in dollars per MMBtu, Bbl) | $ / MMBTU	2.94
Fair value	$ (10)
Call Options 2024 | Not Designated as Hedging Instrument | Natural Gas
Derivative [Line Items]
Volume (Bcf, MBbls) | Mcf	9.0
Cap price (in dollars per MMBtu, Bbl) | $ / MMBTU	3.00
Fair value	$ (3)
Put options | Natural Gas
Derivative [Line Items]
Volume (Bcf, MBbls) | Mcf	19.0
Fair value	$ (1)
Put Option 2021 | Natural Gas
Derivative [Line Items]
Volume (Bcf, MBbls) | Mcf	14.0
Floor price (in dollars per MMBtu, Bbl) | $ / MMBTU	2.00
Fair value	$ 0
Put Option 2022 | Natural Gas
Derivative [Line Items]
Volume (Bcf, MBbls) | Mcf	5.0
Floor price (in dollars per MMBtu, Bbl) | $ / MMBTU	2.00
Fair value	$ (1)
Swaption 2021 | Natural Gas
Derivative [Line Items]
Volume (Bcf, MBbls) | Mcf	18.0
Cap price (in dollars per MMBtu, Bbl) | $ / MMBTU	3.00
Fair value	$ (1)
Storage 2021 | Not Designated as Hedging Instrument
Derivative [Line Items]
Volume (Bcf, MBbls) | Mcf	3.0
Fair value	$ 0
Purchased Fixed Price Swaps, Storage, 2021 | Not Designated as Hedging Instrument
Derivative [Line Items]
Volume (Bcf, MBbls) | Mcf	2.0
Weighted average price (in dollars per MMBtu, Bbl) | $ / MMBTU	2.34
Basis differential per MMBtu | $ / MMBTU	0
Fair value	$ 0
Purchased Basis Swaps Storage, 2021 | Not Designated as Hedging Instrument
Derivative [Line Items]
Volume (Bcf, MBbls) | Mcf	1.0
Weighted average price (in dollars per MMBtu, Bbl) | $ / MMBTU	0
Basis differential per MMBtu | $ / MMBTU	(0.88)
Fair value	$ 0
Fixed Price Swap, Storage, 2021 | Not Designated as Hedging Instrument
Derivative [Line Items]
Volume (Bcf, MBbls) | Mcf	0.0
Weighted average price (in dollars per MMBtu, Bbl) | $ / MMBTU	2.23
Basis differential per MMBtu | $ / MMBTU	0
Fair value	$ 0
Basis Swaps Storage, 2021 | Not Designated as Hedging Instrument
Derivative [Line Items]
Volume (Bcf, MBbls) | Mcf	0.0
Weighted average price (in dollars per MMBtu, Bbl) | $ / MMBTU	0
Basis differential per MMBtu | $ / MMBTU	(0.57)
Fair value	$ 0
Storage 2022 | Not Designated as Hedging Instrument
Derivative [Line Items]
Volume (Bcf, MBbls) | Mcf	3.0
Fair value	$ 0
Purchased Fixed Price Swaps, Storage, 2022 | Not Designated as Hedging Instrument
Derivative [Line Items]
Volume (Bcf, MBbls) | Mcf	0.0
Weighted average price (in dollars per MMBtu, Bbl) | $ / MMBTU	2.14
Basis differential per MMBtu | $ / MMBTU	0
Fair value	$ 0
Fixed Price Swap, Storage, 2022 | Not Designated as Hedging Instrument
Derivative [Line Items]
Volume (Bcf, MBbls) | Mcf	2.0
Weighted average price (in dollars per MMBtu, Bbl) | $ / MMBTU	2.82
Basis differential per MMBtu | $ / MMBTU	0
Fair value	$ 0
Basis Swaps Storage, 2022 | Not Designated as Hedging Instrument
Derivative [Line Items]
Volume (Bcf, MBbls) | Mcf	1.0
Weighted average price (in dollars per MMBtu, Bbl) | $ / MMBTU	0
Basis differential per MMBtu | $ / MMBTU	(0.57)
Fair value	$ 0
Purchased Fixed Price Swaps, Marketing, 2022 | Not Designated as Hedging Instrument | Natural Gas
Derivative [Line Items]
Volume (Bcf, MBbls) | Mcf	4.0
Weighted average price (in dollars per MMBtu, Bbl) | $ / MMBTU	2.44
Fair value	$ 1
Sold Puts | Three-Way Costless Collars - 2021 Sold Puts | Not Designated as Hedging Instrument | Natural Gas
Derivative [Line Items]
Floor price (in dollars per MMBtu, Bbl) | $ / MMBTU	2.17
Sold Puts | Three-Way Costless Collars - 2021 Sold Puts | Not Designated as Hedging Instrument | Oil
Derivative [Line Items]
Floor price (in dollars per MMBtu, Bbl) | $ / bbl	37.86
Sold Puts | Three-Way Costless Collars - 2022 Sold Puts | Not Designated as Hedging Instrument | Natural Gas
Derivative [Line Items]
Floor price (in dollars per MMBtu, Bbl) | $ / MMBTU	2.06
Sold Puts | Three-Way Costless Collars - 2022 Sold Puts | Not Designated as Hedging Instrument | Oil
Derivative [Line Items]
Floor price (in dollars per MMBtu, Bbl) | $ / bbl	39.89
Sold Puts | Three-Way Costless Collars - 2022 Sold Puts | Not Designated as Hedging Instrument | Propane
Derivative [Line Items]
Floor price (in dollars per MMBtu, Bbl) | $ / bbl	16.80
Sold Puts | Three Way Costless Collars - 2023 Sold Puts | Not Designated as Hedging Instrument | Natural Gas
Derivative [Line Items]
Floor price (in dollars per MMBtu, Bbl) | $ / MMBTU	2.05
Sold Puts | Three Way Costless Collars - 2023 Sold Puts | Not Designated as Hedging Instrument | Oil
Derivative [Line Items]
Floor price (in dollars per MMBtu, Bbl) | $ / bbl	33.97
Purchased Puts | Two-way Costless Collars - 2021 Purchased Puts | Not Designated as Hedging Instrument | Natural Gas
Derivative [Line Items]
Floor price (in dollars per MMBtu, Bbl) | $ / MMBTU	2.57
Purchased Puts | Two-way Costless Collars - 2021 Purchased Puts | Not Designated as Hedging Instrument | Oil
Derivative [Line Items]
Floor price (in dollars per MMBtu, Bbl) | $ / bbl	37.79
Purchased Puts | Two-way Costless Collars - 2021 Purchased Puts | Not Designated as Hedging Instrument | Ethane
Derivative [Line Items]
Floor price (in dollars per MMBtu, Bbl) | $ / bbl	7.14
Purchased Puts | Three-Way Costless Collars - 2021 Purchased Puts | Not Designated as Hedging Instrument | Natural Gas
Derivative [Line Items]
Floor price (in dollars per MMBtu, Bbl) | $ / MMBTU	2.50
Purchased Puts | Three-Way Costless Collars - 2021 Purchased Puts | Not Designated as Hedging Instrument | Oil
Derivative [Line Items]
Floor price (in dollars per MMBtu, Bbl) | $ / bbl	47.70
Purchased Puts | Two Way Costless Collars - 2022 Purchased Puts | Not Designated as Hedging Instrument | Natural Gas
Derivative [Line Items]
Floor price (in dollars per MMBtu, Bbl) | $ / MMBTU	2.52
Purchased Puts | Two Way Costless Collars - 2022 Purchased Puts | Not Designated as Hedging Instrument | Ethane
Derivative [Line Items]
Floor price (in dollars per MMBtu, Bbl) | $ / bbl	7.56
Purchased Puts | Three Way Costless Collars 2022 - Purchased Puts | Not Designated as Hedging Instrument | Natural Gas
Derivative [Line Items]
Floor price (in dollars per MMBtu, Bbl) | $ / MMBTU	2.50
Purchased Puts | Three Way Costless Collars 2022 - Purchased Puts | Not Designated as Hedging Instrument | Oil
Derivative [Line Items]
Floor price (in dollars per MMBtu, Bbl) | $ / bbl	50.23
Purchased Puts | Three Way Costless Collars 2022 - Purchased Puts | Not Designated as Hedging Instrument | Propane
Derivative [Line Items]
Floor price (in dollars per MMBtu, Bbl) | $ / bbl	21.00
Purchased Puts | Three Way Costless Collars - 2023 Purchased Puts | Not Designated as Hedging Instrument | Natural Gas
Derivative [Line Items]
Floor price (in dollars per MMBtu, Bbl) | $ / MMBTU	2.46
Purchased Puts | Three Way Costless Collars - 2023 Purchased Puts | Not Designated as Hedging Instrument | Oil
Derivative [Line Items]
Floor price (in dollars per MMBtu, Bbl) | $ / bbl	45.51

XML

Derivatives and Risk Management (Narrative) (Details) - Not Designated as Hedging Instrument - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Derivative [Line Items]
Fair value of net derivative liability position	$ 1	$ 1
Commodities
Derivative [Line Items]
Derivative liability	$ (211)

XML

Derivatives and Risk Management (Balance Sheet Classification of Derivative Financial Instruments) (Details) - Not Designated as Hedging Instrument - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Derivatives, Fair Value [Line Items]
Derivative assets	$ 296	$ 387
Derivative liabilities	506	428
Interest rate swaps | Other long-term assets
Derivatives, Fair Value [Line Items]
Derivative assets	1	0
Natural Gas | Purchased fixed price swaps | Derivative assets
Derivatives, Fair Value [Line Items]
Derivative assets	1	1
Natural Gas | Fixed price swaps | Derivative assets
Derivatives, Fair Value [Line Items]
Derivative assets	25	37
Natural Gas | Fixed price swaps | Other long-term assets
Derivatives, Fair Value [Line Items]
Derivative assets	0	7
Natural Gas | Fixed price swaps | Derivative liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities	12	7
Natural Gas | Fixed price swaps | Long-term derivative liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities	1	3
Natural Gas | Two-way costless collars | Derivative assets
Derivatives, Fair Value [Line Items]
Derivative assets	39	54
Natural Gas | Two-way costless collars | Other long-term assets
Derivatives, Fair Value [Line Items]
Derivative assets	2	20
Natural Gas | Two-way costless collars | Derivative liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities	39	43
Natural Gas | Two-way costless collars | Long-term derivative liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities	4	21
Natural Gas | Three-way costless collars | Derivative assets
Derivatives, Fair Value [Line Items]
Derivative assets	39	57
Natural Gas | Three-way costless collars | Other long-term assets
Derivatives, Fair Value [Line Items]
Derivative assets	82	87
Natural Gas | Three-way costless collars | Derivative liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities	73	82
Natural Gas | Three-way costless collars | Long-term derivative liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities	88	102
Natural Gas | Basis swaps | Derivative assets
Derivatives, Fair Value [Line Items]
Derivative assets	46	60
Natural Gas | Basis swaps | Other long-term assets
Derivatives, Fair Value [Line Items]
Derivative assets	39	15
Natural Gas | Basis swaps | Derivative liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities	9	3
Natural Gas | Basis swaps | Long-term derivative liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities	8	7
Natural Gas | Call options | Derivative assets
Derivatives, Fair Value [Line Items]
Derivative assets	1	4
Natural Gas | Call options | Derivative liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities	13	12
Natural Gas | Call options | Long-term derivative liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities	21	28
Natural Gas | Put options | Derivative liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities	1	1
Natural Gas | Swaptions | Derivative liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities	1	2
Oil | Fixed price swaps | Derivative assets
Derivatives, Fair Value [Line Items]
Derivative assets	0	13
Oil | Fixed price swaps | Other long-term assets
Derivatives, Fair Value [Line Items]
Derivative assets	0	2
Oil | Fixed price swaps | Derivative liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities	32	12
Oil | Fixed price swaps | Long-term derivative liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities	7	2
Oil | Two-way costless collars | Derivative liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities	2	1
Oil | Three-way costless collars | Derivative assets
Derivatives, Fair Value [Line Items]
Derivative assets	6	15
Oil | Three-way costless collars | Other long-term assets
Derivatives, Fair Value [Line Items]
Derivative assets	14	15
Oil | Three-way costless collars | Derivative liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities	17	15
Oil | Three-way costless collars | Long-term derivative liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities	21	15
Oil | Call options | Derivative liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities	1	0
Propane | Fixed price swaps | Other long-term assets
Derivatives, Fair Value [Line Items]
Derivative assets	1	0
Propane | Fixed price swaps | Derivative liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities	76	36
Propane | Fixed price swaps | Long-term derivative liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities	8	2
Propane | Three-way costless collars | Long-term derivative liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities	1	0
Ethane | Fixed price swaps | Derivative liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities	11	10
Ethane | Fixed price swaps | Long-term derivative liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities	1	0
Normal Butane | Fixed price swaps | Derivative liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities	21	8
Normal Butane | Fixed price swaps | Long-term derivative liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities	3	1
Natural Gasoline | Fixed price swaps | Derivative liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities	30	13
Natural Gasoline | Fixed price swaps | Long-term derivative liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities	$ 5	$ 2

XML

Derivatives and Risk Management (Summary of Before Tax Effect of Fair Value Hedges not Designated for Hedge Accounting) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Derivative Instruments, Gain (Loss) [Line Items]
Unsettled Gain (Loss) on Derivatives Recognized in Earnings	$ (169)	$ 246
Settled Gain (Loss) on Derivatives Recognized in Earnings	(22)	93
Total gain (loss) on derivatives	(191)	339
Purchased fixed price swaps | Natural Gas
Derivative Instruments, Gain (Loss) [Line Items]
Unsettled Gain (Loss) on Derivatives Recognized in Earnings	0	(1)
Settled Gain (Loss) on Derivatives Recognized in Earnings	0	(1)
Purchased fixed price swaps | Oil
Derivative Instruments, Gain (Loss) [Line Items]
Unsettled Gain (Loss) on Derivatives Recognized in Earnings	0	(5)
Purchased fixed price swaps | Natural Gas Storage
Derivative Instruments, Gain (Loss) [Line Items]
Unsettled Gain (Loss) on Derivatives Recognized in Earnings	0	(1)
Fixed price swaps | Natural Gas
Derivative Instruments, Gain (Loss) [Line Items]
Unsettled Gain (Loss) on Derivatives Recognized in Earnings	(22)	103
Settled Gain (Loss) on Derivatives Recognized in Earnings	5	5
Fixed price swaps | Oil
Derivative Instruments, Gain (Loss) [Line Items]
Unsettled Gain (Loss) on Derivatives Recognized in Earnings	(40)	118
Settled Gain (Loss) on Derivatives Recognized in Earnings	(17)	9
Fixed price swaps | Ethane
Derivative Instruments, Gain (Loss) [Line Items]
Unsettled Gain (Loss) on Derivatives Recognized in Earnings	(2)	12
Settled Gain (Loss) on Derivatives Recognized in Earnings	(4)	6
Fixed price swaps | Propane
Derivative Instruments, Gain (Loss) [Line Items]
Unsettled Gain (Loss) on Derivatives Recognized in Earnings	(45)	36
Settled Gain (Loss) on Derivatives Recognized in Earnings	(30)	10
Fixed price swaps | Normal Butane
Derivative Instruments, Gain (Loss) [Line Items]
Unsettled Gain (Loss) on Derivatives Recognized in Earnings	(15)	0
Settled Gain (Loss) on Derivatives Recognized in Earnings	(7)	0
Fixed price swaps | Natural Gasoline
Derivative Instruments, Gain (Loss) [Line Items]
Unsettled Gain (Loss) on Derivatives Recognized in Earnings	(20)	0
Settled Gain (Loss) on Derivatives Recognized in Earnings	(9)	0
Two-way costless collars | Natural Gas
Derivative Instruments, Gain (Loss) [Line Items]
Unsettled Gain (Loss) on Derivatives Recognized in Earnings	(12)	(4)
Settled Gain (Loss) on Derivatives Recognized in Earnings	2	6
Two-way costless collars | Oil
Derivative Instruments, Gain (Loss) [Line Items]
Unsettled Gain (Loss) on Derivatives Recognized in Earnings	(1)	19
Settled Gain (Loss) on Derivatives Recognized in Earnings	(1)	3
Two-way costless collars | Propane
Derivative Instruments, Gain (Loss) [Line Items]
Unsettled Gain (Loss) on Derivatives Recognized in Earnings	0	2
Settled Gain (Loss) on Derivatives Recognized in Earnings	0	1
Three-way costless collars | Natural Gas
Derivative Instruments, Gain (Loss) [Line Items]
Unsettled Gain (Loss) on Derivatives Recognized in Earnings	0	(51)
Settled Gain (Loss) on Derivatives Recognized in Earnings	1	36
Three-way costless collars | Oil
Derivative Instruments, Gain (Loss) [Line Items]
Unsettled Gain (Loss) on Derivatives Recognized in Earnings	(18)	25
Settled Gain (Loss) on Derivatives Recognized in Earnings	(1)	1
Three-way costless collars | Propane
Derivative Instruments, Gain (Loss) [Line Items]
Unsettled Gain (Loss) on Derivatives Recognized in Earnings	(1)	0
Basis swaps | Natural Gas
Derivative Instruments, Gain (Loss) [Line Items]
Unsettled Gain (Loss) on Derivatives Recognized in Earnings	3	(1)
Settled Gain (Loss) on Derivatives Recognized in Earnings	41	16
Call options | Natural Gas
Derivative Instruments, Gain (Loss) [Line Items]
Unsettled Gain (Loss) on Derivatives Recognized in Earnings	3	(5)
Call options | Oil
Derivative Instruments, Gain (Loss) [Line Items]
Unsettled Gain (Loss) on Derivatives Recognized in Earnings	(1)	1
Swaptions | Natural Gas
Derivative Instruments, Gain (Loss) [Line Items]
Unsettled Gain (Loss) on Derivatives Recognized in Earnings	1	0
Fixed price swaps – storage | Natural Gas Storage
Derivative Instruments, Gain (Loss) [Line Items]
Unsettled Gain (Loss) on Derivatives Recognized in Earnings	0	(1)
Settled Gain (Loss) on Derivatives Recognized in Earnings	0	1
Interest rate swaps
Derivative Instruments, Gain (Loss) [Line Items]
Unsettled Gain (Loss) on Derivatives Recognized in Earnings	1	(1)
Put options | Natural Gas
Derivative Instruments, Gain (Loss) [Line Items]
Settled Gain (Loss) on Derivatives Recognized in Earnings	(2)	$ 0
Amortization of premium paid	$ 2

XML

Reclassifications from Accumulated Other Comprehensive Income (Loss) (Components of Accumulated Other Comprehensive Income (Loss)) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2021 USD ($)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance beginning	$ 497
Balance ending	586
Pension and Other Postretirement
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance beginning	(24)
Other comprehensive income before reclassifications	0
Amounts reclassified from other comprehensive income	0
Net current-period other comprehensive income	0
Balance ending	(24)
Foreign Currency
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance beginning	(14)
Other comprehensive income before reclassifications	0
Amounts reclassified from other comprehensive income	0
Net current-period other comprehensive income	0
Balance ending	(14)
Total
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance beginning	(38)
Other comprehensive income before reclassifications	0
Amounts reclassified from other comprehensive income	0
Net current-period other comprehensive income	0
Balance ending	$ (38)

XML

Reclassifications from Accumulated Other Comprehensive Income (Loss) (Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other Income, Net	$ 1	$ 1
Provision (Benefit) for Income Taxes	0	406
Net income (loss)	80	$ (1,547)
Amount Reclassified from Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net income (loss)	0
Amortization of prior service cost and net loss | Amount Reclassified from Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other Income, Net	0
Provision (Benefit) for Income Taxes	0
Net income (loss)	$ 0

XML

Fair Value Measurements (Carrying Amount and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments, net	$ (210)	$ (41)
Carrying Amount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	4	13
Derivative instruments, net	(210)	(41)
Carrying Amount | Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior notes	2,471	2,471
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	4	13
Derivative instruments, net	(210)	(41)
Fair Value | Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior notes	2,640	2,609
2018 revolving credit facility due April 2024 | Carrying Amount | Long-term debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
2018 revolving credit facility due April 2024	567	700
2018 revolving credit facility due April 2024 | Fair Value | Long-term debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
2018 revolving credit facility due April 2024	$ 567	$ 700

XML

Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Not Designated as Hedging Instrument
Debt Instrument [Line Items]
Fair value of net derivative liability position	$ 1	$ 1
Senior Notes | 4.20% Senior Notes Due March 2022
Debt Instrument [Line Items]
Stated interest rate	4.10%

XML

Fair Value Measurements (Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments, net	$ (210)	$ (41)
Quoted Prices in Active Markets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments, net	0	0
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments, net	(210)	(41)
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments, net	0	0
Purchased fixed price swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	1	1
Purchased fixed price swaps | Quoted Prices in Active Markets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	0	0
Purchased fixed price swaps | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	1	1
Purchased fixed price swaps | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	0	0
Fixed price swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	26	59
Derivative liabilities	(207)	(96)
Fixed price swaps | Quoted Prices in Active Markets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	0	0
Derivative liabilities	0	0
Fixed price swaps | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	26	59
Derivative liabilities	(207)	(96)
Fixed price swaps | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	0	0
Derivative liabilities	0	0
Two-way costless collars
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	41	74
Derivative liabilities	(45)	(65)
Two-way costless collars | Quoted Prices in Active Markets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	0	0
Derivative liabilities	0	0
Two-way costless collars | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	41	74
Derivative liabilities	(45)	(65)
Two-way costless collars | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	0	0
Derivative liabilities	0	0
Three-way costless collars
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	141	174
Derivative liabilities	(200)	(214)
Three-way costless collars | Quoted Prices in Active Markets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	0	0
Derivative liabilities	0	0
Three-way costless collars | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	141	174
Derivative liabilities	(200)	(214)
Three-way costless collars | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	0	0
Derivative liabilities	0	0
Basis swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	85	75
Derivative liabilities	(17)	(10)
Basis swaps | Quoted Prices in Active Markets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	0	0
Derivative liabilities	0	0
Basis swaps | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	85	75
Derivative liabilities	(17)	(10)
Basis swaps | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	0	0
Derivative liabilities	0	0
Call options
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	1	4
Derivative liabilities	(35)	(40)
Call options | Quoted Prices in Active Markets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	0	0
Derivative liabilities	0	0
Call options | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	1	4
Derivative liabilities	(35)	(40)
Call options | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	0	0
Derivative liabilities	0	0
Interest rate swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	1
Interest rate swaps | Quoted Prices in Active Markets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	0
Interest rate swaps | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	1
Interest rate swaps | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	0
Put options
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities	(1)	(1)
Put options | Quoted Prices in Active Markets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities	0	0
Put options | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities	(1)	(1)
Put options | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities	0	0
Swaptions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities	(1)	(2)
Swaptions | Quoted Prices in Active Markets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities	0	0
Swaptions | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities	(1)	(2)
Swaptions | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liabilities	$ 0	$ 0

XML

Debt (Components of Debt) (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020	Aug. 31, 2020	Jul. 24, 2020	Mar. 31, 2020	Jul. 31, 2018	Jan. 31, 2015
Debt Instrument [Line Items]
Debt Instrument	$ 3,038	$ 3,171
Unamortized Issuance Expense	18	20
Unamortized Debt Discount	(1)	(1)
Current portion of long-term debt	207	0
Total debt	3,019	3,150
Long-term debt
Debt Instrument [Line Items]
Debt Instrument	2,831
Unamortized Issuance Expense	18
Unamortized Debt Discount	(1)
Total debt	$ 2,812
Line of Credit | Variable rate (2.09% at March 31, 2021) 2018 revolving credit facility due April 2024
Debt Instrument [Line Items]
Variable interest rate	2.09%
Line of Credit | Variable rate (2.09% at March 31, 2021) 2018 revolving credit facility due April 2024 | Revolving Credit Facility
Debt Instrument [Line Items]
Debt Instrument	$ 567
Unamortized Issuance Expense	0
Unamortized Debt Discount	0
Total debt	567
Line of Credit | Variable rate (2.11% at December 31, 2020) 2018 term loan facility due April 2024
Debt Instrument [Line Items]
Debt Instrument		700
Unamortized Issuance Expense		0
Unamortized Debt Discount		0
Total debt		$ 700
Variable interest rate		2.11%
Senior Notes
Debt Instrument [Line Items]
Debt Instrument, current portion of long-term debt	207
Unamortized Issuance Expense	0
Unamortized Debt Discount	0
Current portion of long-term debt	207
Senior Notes | 4.10% Senior Notes due March 2022
Debt Instrument [Line Items]
Debt Instrument, current portion of long-term debt	207
Debt Instrument		$ 207
Unamortized Issuance Expense	0	0
Unamortized Debt Discount	0	0
Current portion of long-term debt	$ 207
Total debt		$ 207
Stated interest rate	4.10%	4.10%			4.10%
Senior Notes | 4.95% Senior Notes due January 2025
Debt Instrument [Line Items]
Debt Instrument	$ 856	$ 856
Unamortized Issuance Expense	4	4
Unamortized Debt Discount	(1)	(1)
Total debt	$ 851	$ 851
Stated interest rate	4.95%	4.95%		6.45%	4.95%	6.20%	4.95%
Senior notes							$ 1,000
Senior Notes | 7.50% Senior Notes due April 2026
Debt Instrument [Line Items]
Debt Instrument	$ 618	$ 618
Unamortized Issuance Expense	5	6
Unamortized Debt Discount	0	0
Total debt	$ 613	$ 612
Stated interest rate	7.50%	7.50%			7.50%
Senior Notes | 7.75% Senior Notes due October 2027
Debt Instrument [Line Items]
Debt Instrument	$ 440	$ 440
Unamortized Issuance Expense	4	5
Unamortized Debt Discount	0	0
Total debt	$ 436	$ 435
Stated interest rate	7.75%	7.75%			7.75%
Senior Notes | 8.375% Senior Notes due September 2028
Debt Instrument [Line Items]
Debt Instrument	$ 350	$ 350
Unamortized Issuance Expense	5	5
Unamortized Debt Discount	0	0
Total debt	$ 345	$ 345
Stated interest rate	8.375%	8.375%	8.375%
Senior notes			$ 350
Other long-term assets | Line of Credit | Variable rate (2.09% at March 31, 2021) 2018 revolving credit facility due April 2024
Debt Instrument [Line Items]
Unamortized Issuance Expense	$ 11	$ 12

XML

Debt (Schedule of Debt Maturities) (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Long-term Debt, Fiscal Year Maturity [Abstract]
2021	$ 0
2022	207
2023	0
2024	567
2025	856
Thereafter	1,408
Total	$ 3,038	$ 3,171

XML

Debt (2018 Revolving Credit Facility - Narrative) (Details)	1 Months Ended	3 Months Ended
	Apr. 30, 2018 USD ($)	Mar. 31, 2021 USD ($)	Jun. 30, 2018 USD ($)	Dec. 31, 2020 USD ($)	Oct. 31, 2020 USD ($)
Debt Instrument [Line Items]
Subsidiary ownership		100.00%
Letters of credit		$ 233,000,000
Debt instrument		3,038,000,000		$ 3,171,000,000
Long-term debt
Debt Instrument [Line Items]
Debt instrument		2,831,000,000
Long-term debt | 2018 revolving credit facility due April 2024
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 3,500,000,000
Current borrowing base					$ 2,000,000,000.0
Aggregate commitment					$ 2,000,000,000.0
Limit on securing indebtedness	$ 2,000,000,000.0
Percentage of consolidated net tangible assets	25.00%
Minimum interest coverage ratio			1.00
Long-term debt | 2018 revolving credit facility due April 2024 | Maximum
Debt Instrument [Line Items]
Leverage ratio, percentage of credit limit			10.00%
Leverage ratio, amount of credit limit			$ 150,000,000
Long-term debt | 2018 revolving credit facility due April 2024 | Eurodollar | Minimum
Debt Instrument [Line Items]
Basis points	1.75%
Long-term debt | 2018 revolving credit facility due April 2024 | Eurodollar | Maximum
Debt Instrument [Line Items]
Basis points	2.75%
Long-term debt | 2018 revolving credit facility due April 2024 | Base Rate | Minimum
Debt Instrument [Line Items]
Basis points	0.75%
Long-term debt | 2018 revolving credit facility due April 2024 | Base Rate | Maximum
Debt Instrument [Line Items]
Basis points	1.75%
Line of Credit | Revolving Credit Facility | 2018 Revolving Credit Facility
Debt Instrument [Line Items]
Debt instrument		$ 567,000,000
After June 30, 2020 | Long-term debt | 2018 revolving credit facility due April 2024 | Maximum
Debt Instrument [Line Items]
Leverage ratio			4.00

XML

Debt (Senior Notes - Narrative) (Details) - USD ($) $ in Millions	1 Months Ended		3 Months Ended
	Aug. 31, 2020	Jan. 31, 2015	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	Jul. 24, 2020	Apr. 07, 2020	Jul. 31, 2018
Debt Instrument [Line Items]
Gain on extinguishment of debt			$ 0	$ 28
Senior Notes
Debt Instrument [Line Items]
Gain on extinguishment of debt				28
Repayments of Long-term Debt				$ 52
Senior Notes | LIBOR
Debt Instrument [Line Items]
Incremental increase in basis points resulting from downgrades		0.25%
Incremental decrease in basis points resulting from upgrades		0.25%
4.95% Senior Notes due January 2025 | Senior Notes
Debt Instrument [Line Items]
Senior notes		$ 1,000
Stated interest rate		4.95%	4.95%	4.95%	4.95%	6.45%		6.20%
Stated interest rate cap							6.95%
Repurchased amount				$ 28
4.10% Senior Notes due March 2022 | Senior Notes
Debt Instrument [Line Items]
Stated interest rate			4.10%	4.10%	4.10%
Repurchased amount				$ 3
7.50% Senior Notes Due April 2026 | Senior Notes
Debt Instrument [Line Items]
Stated interest rate			7.50%	7.50%	7.50%
Repurchased amount				$ 18
7.75% Senior Notes due October 2027 | Senior Notes
Debt Instrument [Line Items]
Stated interest rate			7.75%	7.75%	7.75%
Repurchased amount				$ 31
8.375% Senior Notes due September 2028 | Senior Notes
Debt Instrument [Line Items]
Senior notes	$ 350
Stated interest rate	8.375%		8.375%		8.375%
Proceeds from issuance of long-term debt	$ 345
Percentage price of face value of the notes sold to the public	100.00%
Eight Point Eight Seven Five Percent Senior Notes Due 2023 | Senior Notes | Montage Resources Corporation
Debt Instrument [Line Items]
Senior notes	$ 510
Stated interest rate	8.875%

XML

Commitments and Contingencies (Narrative) (Details)	Mar. 31, 2021 USD ($)
Commitments And Contingencies [Line Items]
Obligation under transportation agreements	$ 8,351,000,000
Guarantee obligations relative to the firms transportation agreements and gathering project and services	908,000,000
Material liabilities recognized	0
Pending regulatory approval and/or construction
Commitments And Contingencies [Line Items]
Obligation under transportation agreements	$ 436,000,000

XML

Commitments and Contingencies (Schedule of Future Obligation under Transportation Agreements) (Details) $ in Millions	Mar. 31, 2021 USD ($)
Other Commitments [Line Items]
Total	$ 8,351
Less than 1 Year	791
1 to 3 Years	1,569
3 to 5 Years	1,333
5 to 8 Years	1,833
More than 8 Years	2,825
Infrastructure currently in service
Other Commitments [Line Items]
Total	7,915
Less than 1 Year	789
1 to 3 Years	1,539
3 to 5 Years	1,295
5 to 8 Years	1,752
More than 8 Years	2,540
Pending regulatory approval and/or construction
Other Commitments [Line Items]
Total	436
Less than 1 Year	2
1 to 3 Years	30
3 to 5 Years	38
5 to 8 Years	81
More than 8 Years	$ 285

XML

Income Taxes (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Tax Expense (Benefit), Continuing Operations [Abstract]
Effective tax rate	0.00%	(36.00%)
Discrete tax benefit		$ 408
Valuation allowance related to operating loss		$ 87

XML

Pension Plan and Other Postretirement Benefits (Pension and Other Postretirement Benefit Costs) (Details) - Pension - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 0	$ 2
Interest cost	1	1
Expected return on plan assets	(1)	(1)
Net periodic benefit cost	$ 0	$ 2

XML

Pension Plan and Other Postretirement Benefits (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Defined Benefit Plan Disclosure [Line Items]
Employer contributions	$ 5
Other Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Net periodic benefit cost	1	$ 1
Benefit obligation	13		$ 13
Pension
Defined Benefit Plan Disclosure [Line Items]
Net periodic benefit cost	0	$ 2
Expected future employer contributions, remainder of fiscal year	7
Benefit obligation	$ 28		$ 33
Non-Qualified Supplemental Employee Retirement Plan
Defined Benefit Plan Disclosure [Line Items]
Treasury stock acquired (in shares)	2,035		3,632

XML

Long-term Incentive Compensation (Narrative) (Details) $ in Millions	3 Months Ended				12 Months Ended
	Mar. 31, 2021 USD ($) award_plan	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Stock Based Compensation 2013 Plan
Long-term Incentive Compensation [Line Items]
Service period	3 years
Stock options
Long-term Incentive Compensation [Line Items]
Vesting period	3 years
Expiration period	7 years
Restricted stock
Long-term Incentive Compensation [Line Items]
Vesting period	4 years
Performance units
Long-term Incentive Compensation [Line Items]
Vesting period	3 years				3 years	3 years	3 years
Weighted average period over which unrecognized cost is recognized, years	2 years 1 month 6 days
Liability classified awards, unrecognized compensation costs	$ 22
Number of award plans granted | award_plan	2
Share-based payment arrangement
Long-term Incentive Compensation [Line Items]
Equity-classified awards, unrecognized compensation cost	$ 1
Weighted average period over which unrecognized cost is recognized, years	1 year
Restricted stock units
Long-term Incentive Compensation [Line Items]
Vesting period	3 years	4 years	4 years	4 years
Weighted average period over which unrecognized cost is recognized, years	2 years 2 months 12 days
Liability classified awards, unrecognized compensation costs	$ 32
Performance cash awards
Long-term Incentive Compensation [Line Items]
Vesting period	4 years				4 years
Weighted average period over which unrecognized cost is recognized, years	3 years 6 months
Liability classified awards, unrecognized compensation costs	$ 30

XML

Long-term Incentive Compensation (Schedule of Stock-Based Compensation Costs) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Share-based Payment Arrangement, Noncash Expense [Abstract]
Stock-based compensation cost – expensed	$ 13	$ 0
Stock-based compensation cost – capitalized	$ 5	$ 0

XML

Long-term Incentive Compensation (Schedule of Equity-Classified Stock-Based Compensation Costs) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Share-based Payment Arrangement, Noncash Expense [Abstract]
Equity-classified awards – expensed	$ 0	$ 1
Equity-classified awards – capitalized	$ 0	$ 0

XML

Long-term Incentive Compensation (Summary of Equity-Classified Stock Option Activity) (Details) - Stock options shares in Thousands	3 Months Ended
	Mar. 31, 2021 $ / shares shares
Number of Options
Beginning balance (in shares) | shares	3,850
Granted (in shares) | shares	0
Exercised (in shares) | shares	0
Forfeited or expired (in shares) | shares	(61)
Ending balance (in shares) | shares	3,789
Exercisable (in shares) | shares	3,789
Weighted Average Exercise Price
Beginning balance (in dollars per share) | $ / shares	$ 13.39
Granted (in dollars per share) | $ / shares	0
Exercised (in dollars per share) | $ / shares	0
Forfeited or expired (in dollars per share) | $ / shares	10.93
Ending balance (in dollars per share) | $ / shares	13.43
Exercisable (in dollars per share) | $ / shares	$ 13.43

XML

Long-term Incentive Compensation (Summary of Equity-Classified Restricted Stock Activity) (Details) - Restricted stock shares in Thousands	3 Months Ended
	Mar. 31, 2021 $ / shares shares
Number of Units
Beginning balance (in shares) | shares	697
Granted (in shares) | shares	10
Vested (in shares) | shares	(451)
Forfeited (in shares) | shares	0
Ending balance (in shares) | shares	256
Weighted Average Fair Value
Beginning balance (in dollars per share) | $ / shares	$ 5.97
Granted (in dollars per share) | $ / shares	2.98
Vested (in dollars per share) | $ / shares	7.61
Forfeited (in dollars per share) | $ / shares	8.59
Ending balance (in dollars per share) | $ / shares	$ 2.94

XML

Long-term Incentive Compensation (Summary of Equity-Classified Restricted Stock Units Activity) (Details) - Restricted stock units shares in Thousands	3 Months Ended
	Mar. 31, 2021 $ / shares shares
Number of Units
Beginning balance (in shares) | shares	134
Granted (in shares) | shares	0
Vested (in shares) | shares	(45)
Forfeited (in shares) | shares	0
Ending balance (in shares) | shares	89
Weighted Average Fair Value
Beginning balance (in dollars per share) | $ / shares	$ 3.05
Granted (in dollars per share) | $ / shares	0
Vested (in dollars per share) | $ / shares	3.05
Forfeited (in dollars per share) | $ / shares	0
Ending balance (in dollars per share) | $ / shares	$ 3.05

XML

Long-term Incentive Compensation (Schedule of Liability-Classified Stock-Based Compensation Costs) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Share-based Payment Arrangement, Noncash Expense [Abstract]
Liability-classified stock-based compensation cost – expensed	$ 13	$ (1)
Liability-classified stock-based compensation cost – capitalized	$ 5	$ 0

XML

Long-term Incentive Compensation (Summary of Liability-Classified Restricted Stock Unit Activity) (Details) - Restricted stock units shares in Thousands	3 Months Ended
	Mar. 31, 2021 $ / shares shares
Number of Units
Beginning balance (in shares) | shares	11,613
Granted (in shares) | shares	1,486
Vested (in shares) | shares	(4,522)
Forfeited (in shares) | shares	(416)
Ending balance (in shares) | shares	8,161
Weighted Average Fair Value
Beginning balance (in dollars per share) | $ / shares	$ 2.67
Granted (in dollars per share) | $ / shares	4.23
Vested (in dollars per share) | $ / shares	3.40
Forfeited (in dollars per share) | $ / shares	4.31
Ending balance (in dollars per share) | $ / shares	$ 4.07

XML

Long-term Incentive Compensation (Summary of Liability-Classified Performance Cash Awards ) (Details) - Performance units shares in Thousands	3 Months Ended
	Mar. 31, 2021 $ / shares shares
Number of Units
Beginning balance (in shares) | shares	8,699
Granted (in shares) | shares	3,580
Vested (in shares) | shares	(2,020)
Forfeited (in shares) | shares	(622)
Ending balance (in shares) | shares	9,637
Weighted Average Fair Value
Beginning balance (in dollars per share) | $ / shares	$ 2.57
Granted (in dollars per share) | $ / shares	4.14
Vested (in dollars per share) | $ / shares	4.05
Forfeited (in dollars per share) | $ / shares	2.98
Ending balance (in dollars per share) | $ / shares	$ 2.88

XML

Long-term Incentive Compensation (Summary of Liability-Classified Restricted Cash Unit Activity) (Details) - Performance cash awards shares in Thousands	3 Months Ended
	Mar. 31, 2021 $ / shares shares
Number of Units
Beginning balance (in shares) | shares	18,353
Granted (in shares) | shares	18,546
Vested (in shares) | shares	(4,319)
Forfeited (in shares) | shares	(1,615)
Ending balance (in shares) | shares	30,965
Weighted Average Fair Value
Beginning balance (in dollars per share) | $ / shares	$ 1.00
Granted (in dollars per share) | $ / shares	1.00
Vested (in dollars per share) | $ / shares	1.00
Forfeited (in dollars per share) | $ / shares	1.00
Ending balance (in dollars per share) | $ / shares	$ 1.00

XML

Segment Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Segment Reporting Information [Line Items]
Total operating revenues	$ 1,072	$ 592
Depreciation, depletion and amortization expense	96	113
Impairments	0	1,479
Operating income (loss)	301	(1,490)
Interest expense	31	19
(Loss) gain on derivatives	(191)	339
Gain on early extinguishment of debt	0	28
Other income, net	1	1
Benefit from income taxes	0	406
Assets	5,247	5,275	$ 5,160
Capital investments	266	237
Restructuring charges	6	10
Montage merger-related expenses	1	0
Change in accrued expenditures	38	8
Intersegment Revenues
Segment Reporting Information [Line Items]
Total operating revenues	630	300
E&P
Segment Reporting Information [Line Items]
Total operating revenues	719	353
Depreciation, depletion and amortization expense	94	111
Impairments		1,479
Operating income (loss)	295	(1,486)
Interest expense	31	19
(Loss) gain on derivatives	(191)	339
Gain on early extinguishment of debt		0
Other income, net	1	1
Benefit from income taxes		406
Assets	4,741	4,900
Capital investments	266	237
Restructuring charges	6	10
Montage merger-related expenses	1
E&P | Intersegment Revenues
Segment Reporting Information [Line Items]
Total operating revenues	(14)	(9)
Marketing
Segment Reporting Information [Line Items]
Total operating revenues	353	239
Depreciation, depletion and amortization expense	2	2
Impairments		0
Operating income (loss)	6	(4)
Interest expense	0	0
(Loss) gain on derivatives	0	0
Gain on early extinguishment of debt		0
Other income, net	0	0
Benefit from income taxes		0
Assets	396	214
Capital investments	0	0
Marketing | Intersegment Revenues
Segment Reporting Information [Line Items]
Total operating revenues	644	309
Other
Segment Reporting Information [Line Items]
Total operating revenues	0	0
Depreciation, depletion and amortization expense	0	0
Impairments		0
Operating income (loss)	0	0
Interest expense	0	0
(Loss) gain on derivatives	0	0
Gain on early extinguishment of debt		28
Other income, net	0	0
Benefit from income taxes		0
Assets	110	161
Capital investments	0	0
Other | Intersegment Revenues
Segment Reporting Information [Line Items]
Total operating revenues	$ 0	$ 0

XML

Segment Information (Schedule of Other Assets) (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020
Segment Reporting Information [Line Items]
Cash and cash equivalents	$ 4	$ 13
Property, plant and equipment	4,284	4,111
Unamortized debt expense	18	20
Right-of-use lease assets	155	163
TOTAL ASSETS	5,247	$ 5,160	$ 5,275
Other
Segment Reporting Information [Line Items]
Cash and cash equivalents	4		5
Income taxes receivable	0		32
Prepayments	6		9
Property, plant and equipment	15		23
Unamortized debt expense	11		10
Right-of-use lease assets	70		77
Non-qualified retirement plan	4		5
TOTAL ASSETS	$ 110		$ 161