Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 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 September 30, 2021 and December 31, 2020 were as follows:

	September 30, 2021				December 31, 2020
(in millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Cash and cash equivalents	$	12	$	12	$	13	$	13
2018 revolving credit facility due April 2024	665		665		700		700
Senior notes (1)	3,580		3,886		2,471		2,609
Derivative instruments, net	(3,491)		(3,491)		(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:

	September 30, 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	$	—	$	2	$	—	$	2
Two-way costless collars	—		28		—		28
Three-way costless collars	—		59		—		59
Basis swaps	—		110		—		110
Call options	—		35		—		35
Purchased fixed price swaps – storage	—		2		—		2
Interest rate swaps	—		1		—		1
Liabilities
Fixed price swaps	—		(1,784)		—		(1,784)
Two-way costless collars	—		(580)		—		(580)
Three-way costless collars	—		(1,020)		—		(1,020)
Basis swaps	—		(68)		—		(68)
Call options	—		(252)		—		(252)
Swaptions	—		(26)		—		(26)
Fixed price swaps – storage	—		(5)		—		(5)
Total (1)	$	—	$	(3,498)	$	—	$	(3,498)

(1)Excludes a net reduction to the liability fair value of $7 million related to estimated non-performance 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 non-performance risk.