Derivatives and Risk Management (Tables)

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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

The tables present the notional amount, the weighted average contract prices and the fair value by expected maturity dates as of December 31, 2021:

Financial Protection on Production

		Weighted Average Price per MMBtu										Fair value at December 31, 2021 ($ in millions)
	Volume (Bcf)	Swaps		Sold Puts		Purchased Puts		Sold Calls		Basis Differential
Natural Gas
2022
Fixed price swaps	806	$	3.08	$	—	$	—	$	—	$	—	$	(486)
Two-way costless collars	144	—		—		2.71		3.14		—		(95)
Three-way costless collars	347	—		2.06		2.52		2.94		—		(286)
Total	1,297											$	(867)
2023
Fixed price swaps	489	$	3.07	$	—	$	—	$	—	$	—	$	(143)
Two-way costless collars	219	—		—		3.03		3.55		—		(19)
Three-way costless collars	215	—		2.09		2.54		3.00		—		(136)
Total	923											$	(298)
2024
Fixed price swaps	224	$	2.96	$	—	$	—	$	—	$	—	$	(39)
Two-way costless collars	44	$	—	$	—	$	3.07	$	3.53	$	—	4
Three-way costless collars	11	$	—	$	2.25	$	2.80	$	3.54	$	—	(5)
Total	279											$	(40)
Basis swaps
2022	322	$	—	$	—	$	—	$	—	$	(0.38)	$	68
2023	200	—		—		—		—		(0.45)		(1)
2024	46	—		—		—		—		(0.71)		—
2025	9	—		—		—		—		(0.64)		1
Total	577											$	68

		Weighted Average Price per Bbl								Fair value at December 31, 2021 ($ in millions)
	Volume (MBbls)	Swaps		Sold Puts		Purchased Puts		Sold Calls
Oil
2022
Fixed price swaps	3,203	$	53.54	$	—	$	—	$	—	$	(60)
Three-way costless collars	1,380	—		39.89		50.23		57.05		(23)
Total	4,583									$	(83)
2023
Fixed price swaps	846	$	55.98	$	—	$	—	$	—	$	(8)
Three-way costless collars	1,268	—		33.97		45.51		56.12		(18)
Total	2,114									$	(26)
2024
Fixed price swaps	54	$	53.15	$	—	$	—	$	—	$	(1)

		Weighted Average Price per Bbl								Fair value at December 31, 2021 ($ in millions)
	Volume (MBbls)	Swaps		Sold Puts		Purchased Puts		Sold Calls
Ethane
2022
Fixed price swaps	5,797	$	11.37	$	—	$	—	$	—	$	(8)
Two-way costless collars	135	—		—		7.56		9.66		(1)
Total	5,932									$	(9)
2023
Fixed price swaps	432	$	11.67	$	—	$	—	$	—	$	—
Propane
2022
Fixed price swaps	6,369	$	31.14	$	—	$	—	$	—	$	(76)
Three-way costless collars	305	$	—	$	16.80	$	21.00	31.92		(4)
Total	6,674									$	(80)
2023
Fixed price swaps	518	$	33.62	$	—	$	—	—		$	(1)
Normal Butane
2022
Fixed price swaps	1,587	$	32.86	$	—	$	—	$	—	$	(26)
2023
Fixed price swaps	164	$	37.84	$	—	$	—	$	—	$	—
Natural Gasoline
2022
Fixed price swaps	1,840	$	52.85	$	—	$	—	$	—	$	(33)
2023
Fixed price swaps	157	$	58.65	$	—	$	—	$	—	$	(1)

Other Derivative Contracts
	Volume (Bcf)	Weighted Average Strike Price per MMBtu		Fair value at December 31, 2021 ($ in millions)
Call Options – Natural Gas (Net)
2022	84	$	3.01	$	(67)
2023	46	2.94		(33)
2024	9	3.00		(9)
Total	139			$	(109)
Put Options – Natural Gas
2022	5	$	2.00	$	—

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

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

Balance Sheet Classification of Derivative Financial Instruments

The balance sheet classification of the assets and liabilities related to derivative financial instruments are summarized below as of December 31, 2021 and 2020:

Derivative Assets
	Balance Sheet Classification	Fair Value
(in millions)		December 31, 2021		December 31, 2020
Derivatives not designated as hedging instruments:
Purchased fixed price swaps – natural gas	Derivative assets	$	—	$	1
Fixed price swaps – natural gas	Derivative assets	79		37
Fixed price swaps – oil	Derivative assets	—		13
Fixed price swaps – ethane	Derivative assets	2		—
Fixed price swaps – propane	Derivative assets	2		—
Fixed price swaps – normal butane	Derivative assets	1		—
Two-way costless collars – natural gas	Derivative assets	9		54
Three-way costless collars – natural gas	Derivative assets	12		57
Three-way costless collars – oil	Derivative assets	1		15
Basis swaps – natural gas	Derivative assets	77		60
Call options – natural gas	Derivative assets	—		4
Fixed price swaps – natural gas	Other long-term assets	64		7
Fixed price swaps – oil	Other long-term assets	—		2
Two-way costless collars – natural gas	Other long-term assets	100		20
Three-way costless collars – natural gas	Other long-term assets	37		87
Three-way costless collars – oil	Other long-term assets	3		15
Basis swaps – natural gas	Other long-term assets	22		15
Interest rate swaps	Other long-term assets	2		—
Total derivative assets		$	411	$	387

Derivative Liabilities
	Balance Sheet Classification	Fair Value
(in millions)		December 31, 2021		December 31, 2020
Derivatives not designated as hedging instruments:
Fixed price swaps – natural gas storage	Derivative liabilities	$	1	$	—
Fixed price swaps – natural gas	Derivative liabilities	565		7
Fixed price swaps – oil	Derivative liabilities	60		12
Fixed price swaps – ethane	Derivative liabilities	10		10
Fixed price swaps – propane	Derivative liabilities	78		36
Fixed price swaps – normal butane	Derivative liabilities	27		8
Fixed price swaps – natural gasoline	Derivative liabilities	33		13
Two-way costless collars – natural gas	Derivative liabilities	104		43
Two-way costless collars – oil	Derivative liabilities	—		1
Two-way costless collars – ethane	Derivative liabilities	1		—
Three-way costless collars – natural gas	Derivative liabilities	298		82
Three-way costless collars – oil	Derivative liabilities	24		15
Three-way costless collars – propane	Derivative liabilities	4		—
Basis swaps – natural gas	Derivative liabilities	9		3
Call options – natural gas	Derivative liabilities	67		12
Put options – natural gas	Derivative liabilities	—		1
Swaptions – natural gas	Derivative liabilities	—		2
Fixed price swaps – natural gas	Other long-term liabilities	246		3
Fixed price swaps – oil	Other long-term liabilities	9		2
Fixed price swaps – propane	Other long-term liabilities	1		2
Fixed price swaps – normal butane	Other long-term liabilities	—		1
Fixed price swaps – natural gasoline	Other long-term liabilities	1		2
Two-way costless collars – natural gas	Other long-term liabilities	115		21
Two-way costless collars – oil	Other long-term liabilities	—		—
Three-way costless collars – natural gas	Other long-term liabilities	178		103
Three-way costless collars – oil	Other long-term liabilities	21		15
Basis swaps – natural gas	Other long-term liabilities	22		7
Call options – natural gas	Other long-term liabilities	42		28
Total derivative liabilities		$	1,916	$	429

Net Derivative Position
	As of December 31,
	2021		2020
	(in millions)
Net current derivative liabilities	$	(1,098)	$	(4)
Net long-term derivative liabilities	(407)		(38)
Non-performance risk adjustment	3		1
Net total derivative liabilities	$	(1,502)	$	(41)

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

The following tables summarize the before-tax effect of the Company’s derivative instruments on the consolidated statements of operations for the years ended December 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 years ended December 31,
Derivative Instrument		2021		2020
		(in millions)
Purchased fixed price swaps – natural gas	Gain (Loss) on Derivatives	$	(1)	$	2
Fixed price swaps – natural gas	Gain (Loss) on Derivatives	(237)		(25)
Fixed price swaps – oil	Gain (Loss) on Derivatives	(70)		—
Fixed price swaps – ethane	Gain (Loss) on Derivatives	2		(21)
Fixed price swaps – propane	Gain (Loss) on Derivatives	(40)		(60)
Fixed price swaps – normal butane	Gain (Loss) on Derivatives	(18)		(9)
Fixed price swaps – natural gasoline	Gain (Loss) on Derivatives	(18)		(15)
Two-way costless collars – natural gas	Gain (Loss) on Derivatives	(83)		10
Two-way costless collars – oil	Gain (Loss) on Derivatives	1		(1)
Two-way costless collars – propane	Gain (Loss) on Derivatives	—		(1)
Three-way costless collars – natural gas	Gain (Loss) on Derivatives	(375)		(78)
Three-way costless collars – oil	Gain (Loss) on Derivatives	(41)		3
Three-way costless collars – propane	Gain (Loss) on Derivatives	(4)		—
Basis swaps – natural gas	Gain (Loss) on Derivatives	3		59
Call options – natural gas	Gain (Loss) on Derivatives	(68)		(10)
Call options – oil	Gain (Loss) on Derivatives	—		1
Put options – natural gas	Gain (Loss) on Derivatives	1		—
Swaptions – natural gas	Gain (Loss) on Derivatives	2		7
Fixed price swaps – natural gas storage	Gain (Loss) on Derivatives	(1)		(1)
Interest rate swaps	Gain (Loss) on Derivatives	2		—
Total loss on unsettled derivatives		$	(945)	$	(139)

Settled Gain (Loss) on Derivatives Recognized in Earnings (1)
	Consolidated Statement of Operations Classification of Gain (Loss) on Derivatives, Settled	For the years ended December 31,
Derivative Instrument		2021			2020
		(in millions)
Purchased fixed price swaps – natural gas	Gain (Loss) on Derivatives	$	7		$	(3)
Purchased fixed price swaps – oil	Gain (Loss) on Derivatives	1			—
Fixed price swaps – natural gas	Gain (Loss) on Derivatives	(418)			142		(2)
Fixed price swaps – oil	Gain (Loss) on Derivatives	(86)			65
Fixed price swaps – ethane	Gain (Loss) on Derivatives	(39)			6
Fixed price swaps – propane	Gain (Loss) on Derivatives	(173)			18
Fixed price swaps – normal butane	Gain (Loss) on Derivatives	(53)			(2)
Fixed price swaps – natural gasoline	Gain (Loss) on Derivatives	(59)			(1)
Two-way costless collars – natural gas	Gain (Loss) on Derivatives	(325)			(5)
Two-way costless collars – oil	Gain (Loss) on Derivatives	(4)			17
Two-way costless collars – propane	Gain (Loss) on Derivatives	—			2
Two-way costless collars – ethane	Gain (Loss) on Derivatives	(2)			—
Three-way costless collars – natural gas	Gain (Loss) on Derivatives	(335)			38
Three-way costless collars – oil	Gain (Loss) on Derivatives	(29)			9
Basis swaps – natural gas	Gain (Loss) on Derivatives	92			76
Call options – natural gas	Gain (Loss) on Derivatives	(66)			—
Call options – oil	Gain (Loss) on Derivatives	(2)			—
Put options - natural gas	Gain (Loss) on Derivatives	(2)		(3)	—
Purchased fixed price swaps – natural gas storage	Gain (Loss) on Derivatives	2			(1)
Fixed price swaps – natural gas storage	Gain (Loss) on Derivatives	(1)			2
Interest rate swaps	Gain (Loss) on Derivatives	—			(1)
Total gain (loss) on settled derivatives		$	(1,492)		$	362

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

(2)Includes $9 million amortization of premiums paid related to certain natural gas fixed price swaps for the year ended December 31, 2020, which is included in gain (loss) on derivatives on the consolidated statements of operations.

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

Total Gain (Loss) on Derivatives Recognized in Earnings
	For the years ended December 31,
	2021		2020
	(in millions)
Total loss on unsettled derivatives	$	(945)	$	(139)
Total gain (loss) on settled derivatives	(1,492)		362
Non-performance risk adjustment	1		1
Total gain (loss) on derivatives	$	(2,436)	$	224