Derivatives and Risk Management (Tables)

12 Months Ended

Dec. 31, 2022

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, 2022:

Financial Protection on Production

		Weighted Average Price per MMBtu										Fair value at December 31, 2022 ($ in millions)
	Volume (Bcf)	Swaps		Sold Puts		Purchased Puts		Sold Calls		Basis Differential
Natural Gas
2023
Fixed price swaps	504	$	3.08	$	—	$	—	$	—	$	—	$	(581)
Two-way costless collars	219	—		—		3.03		3.55		—		(188)
Three-way costless collars	215	—		2.09		2.54		3.00		—		(293)
Total	938											$	(1,062)
2024
Fixed price swaps	318	$	3.37	$	—	$	—	$	—	$	—	$	(253)
Two-way costless collars	49	—		—		3.17		3.91		—		(38)
Three-way costless collars	11	—		2.25		2.80		3.54		—		(17)
Total	378											$	(308)
Basis swaps
2023	281	$	—	$	—	$	—	$	—	$	(0.50)	$	(5)
2024	46	—		—		—		—		(0.71)		13
2025	9	—		—		—		—		(0.64)		3
Total	336											$	11

		Weighted Average Price per Bbl								Fair value at December 31, 2022 ($ in millions)
	Volume (MBbls)	Swaps		Sold Puts		Purchased Puts		Sold Calls
Oil
2023
Fixed price swaps	1,081	$	60.05	$	—	$	—	$	—	$	(20)
Three-way costless collars	1,268	—		33.97		45.51		56.12		(30)
Total	2,349									$	(50)
2024
Fixed price swaps	913	$	70.66	$	—	$	—	$	—	$	(3)
2025
Fixed price swaps	41	$	77.66	$	—	$	—	$	—	$	—

		Weighted Average Price per Bbl								Fair value at December 31, 2022 ($ in millions)
	Volume (MBbls)	Swaps		Sold Puts		Purchased Puts		Sold Calls
Ethane
2023
Fixed price swaps	3,810	$	12.52	$	—	$	—	$	—	$	3
2024
Fixed price swaps	420	$	12.03	$	—	$	—	$	—	$	1
Propane
2023
Fixed price swaps	3,100	$	35.95	$	—	$	—	$	—	$	9
2024
Fixed price swaps	566	$	35.94	$	—	$	—	—		$	1
Normal Butane
2023
Fixed price swaps	347	$	41.24	$	—	$	—	$	—	$	1
Natural Gasoline
2023
Fixed price swaps	359	$	66.00	$	—	$	—	$	—	$	—

Other Derivative Contracts
	Volume (Bcf)	Weighted Average Strike Price per MMBtu		Fair value at December 31, 2022 ($ in millions)
Call Options – Natural Gas (Net)
2023	46	$	2.94	$	(70)
2024	9	3.00		(18)
Total	55			$	(88)
Put Options – Natural Gas
2024	5	$	4.00	$	4

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, 2022 and 2021:

Derivative Assets
	Balance Sheet Classification	Fair Value
(in millions)		December 31, 2022		December 31, 2021
Derivatives not designated as hedging instruments:
Fixed price swaps – natural gas	Derivative assets	—		79
Fixed price swaps – ethane	Derivative assets	4		2
Fixed price swaps – propane	Derivative assets	9		2
Fixed price swaps – normal butane	Derivative assets	1		1
Fixed price swaps – natural gasoline	Derivative assets	1		—
Two-way costless collars – natural gas	Derivative assets	47		9
Three-way costless collars – natural gas	Derivative assets	18		12
Three-way costless collars – oil	Derivative assets	1		1
Basis swaps – natural gas	Derivative assets	64		77
Fixed price swaps – natural gas	Other long-term assets	28		64
Fixed price swaps – oil	Other long-term assets	1		—
Fixed price swaps – ethane	Other long-term assets	1		—
Fixed price swaps – propane	Other long-term assets	1		—
Two-way costless collars – natural gas	Other long-term assets	18		100
Three-way costless collars – natural gas	Other long-term assets	3		37
Three-way costless collars – oil	Other long-term assets	—		3
Basis swaps – natural gas	Other long-term assets	17		22
Put options – natural gas	Other long-term assets	4		—
Interest rate swaps	Other long-term assets	—		2
Total derivative assets		$	218	$	411

Derivative Liabilities
	Balance Sheet Classification	Fair Value
(in millions)		December 31, 2022		December 31, 2021
Derivatives not designated as hedging instruments:
Fixed price swaps – natural gas storage	Derivative liabilities	$	—	$	1
Fixed price swaps – natural gas	Derivative liabilities	581		565
Fixed price swaps – oil	Derivative liabilities	20		60
Fixed price swaps – ethane	Derivative liabilities	1		10
Fixed price swaps – propane	Derivative liabilities	—		78
Fixed price swaps – normal butane	Derivative liabilities	—		27
Fixed price swaps – natural gasoline	Derivative liabilities	1		33
Two-way costless collars – natural gas	Derivative liabilities	235		104
Two-way costless collars – ethane	Derivative liabilities	—		1
Three-way costless collars – natural gas	Derivative liabilities	311		298
Three-way costless collars – oil	Derivative liabilities	31		24
Three-way costless collars – propane	Derivative liabilities	—		4
Basis swaps – natural gas	Derivative liabilities	69		9
Call options – natural gas	Derivative liabilities	70		67
Fixed price swaps – natural gas	Other long-term liabilities	281		246
Fixed price swaps – oil	Other long-term liabilities	4		9
Fixed price swaps – propane	Other long-term liabilities	—		1
Fixed price swaps – natural gasoline	Other long-term liabilities	—		1
Two-way costless collars – natural gas	Other long-term liabilities	56		115
Three-way costless collars – natural gas	Other long-term liabilities	20		178
Three-way costless collars – oil	Other long-term liabilities	—		21
Basis swaps – natural gas	Other long-term liabilities	1		22
Call options – natural gas	Other long-term liabilities	18		42
Total derivative liabilities		$	1,699	$	1,916

Net Derivative Position
	As of December 31,
	2022		2021
	(in millions)
Net current derivative liabilities	$	(1,174)	$	(1,098)
Net long-term derivative liabilities	(307)		(407)
Non-performance risk adjustment	3		3
Net total derivative liabilities	$	(1,478)	$	(1,502)

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, 2022 and 2021:

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		2022		2021
		(in millions)
Purchased fixed price swaps – natural gas	Gain (Loss) on Derivatives	$	—	$	(1)
Fixed price swaps – natural gas	Gain (Loss) on Derivatives	(166)		(237)
Fixed price swaps – oil	Gain (Loss) on Derivatives	46		(70)
Fixed price swaps – ethane	Gain (Loss) on Derivatives	12		2
Fixed price swaps – propane	Gain (Loss) on Derivatives	87		(40)
Fixed price swaps – normal butane	Gain (Loss) on Derivatives	27		(18)
Fixed price swaps – natural gasoline	Gain (Loss) on Derivatives	34		(18)
Two-way costless collars – natural gas	Gain (Loss) on Derivatives	(116)		(83)
Two-way costless collars – oil	Gain (Loss) on Derivatives	—		1
Two-way costless collars – ethane	Gain (Loss) on Derivatives	1		—
Three-way costless collars – natural gas	Gain (Loss) on Derivatives	117		(375)
Three-way costless collars – oil	Gain (Loss) on Derivatives	11		(41)
Three-way costless collars – propane	Gain (Loss) on Derivatives	4		(4)
Basis swaps – natural gas	Gain (Loss) on Derivatives	(57)		3
Call options – natural gas	Gain (Loss) on Derivatives	21		(68)
Put options – natural gas	Gain (Loss) on Derivatives	4		1
Swaptions – natural gas	Gain (Loss) on Derivatives	—		2
Fixed price swaps – natural gas storage	Gain (Loss) on Derivatives	1		(1)
Interest rate swaps	Gain (Loss) on Derivatives	(2)		2
Total gain (loss) on unsettled derivatives		$	24	$	(945)

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		2022		2021
		(in millions)
Purchased fixed price swaps – natural gas	Gain (Loss) on Derivatives	$	—	$	7
Purchased fixed price swaps – oil	Gain (Loss) on Derivatives	—		1
Fixed price swaps – natural gas	Gain (Loss) on Derivatives	(2,918)		(418)
Fixed price swaps – oil	Gain (Loss) on Derivatives	(129)		(86)
Fixed price swaps – ethane	Gain (Loss) on Derivatives	(49)		(39)
Fixed price swaps – propane	Gain (Loss) on Derivatives	(100)		(173)
Fixed price swaps – normal butane	Gain (Loss) on Derivatives	(35)		(53)
Fixed price swaps – natural gasoline	Gain (Loss) on Derivatives	(49)		(59)
Two-way costless collars – natural gas	Gain (Loss) on Derivatives	(448)		(325)
Two-way costless collars – oil	Gain (Loss) on Derivatives	—		(4)
Two-way costless collars – ethane	Gain (Loss) on Derivatives	(1)		(2)
Three-way costless collars – natural gas	Gain (Loss) on Derivatives	(1,319)		(335)
Three-way costless collars – oil	Gain (Loss) on Derivatives	(51)		(29)
Three-way costless collars – propane	Gain (Loss) on Derivatives	(5)		—
Index swaps - natural gas	Gain (Loss) on Derivatives	(1)		—
Basis swaps – natural gas	Gain (Loss) on Derivatives	128		92
Call options – natural gas	Gain (Loss) on Derivatives	(304)		(66)
Call options – oil	Gain (Loss) on Derivatives	—		(2)
Put options - natural gas	Gain (Loss) on Derivatives	—		(2)		(2)
Purchased fixed price swaps – natural gas storage	Gain (Loss) on Derivatives	1		2
Fixed price swaps – natural gas storage	Gain (Loss) on Derivatives	(3)		(1)
Total loss on settled derivatives		$	(5,283)	$	(1,492)

(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 $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,
	2022		2021
	(in millions)
Total loss on unsettled derivatives	$	24	$	(945)
Total loss on settled derivatives	(5,283)		(1,492)
Non-performance risk adjustment	—		1
Total loss on derivatives	$	(5,259)	$	(2,436)