Derivatives and Risk Management (Tables)

12 Months Ended

Dec. 31, 2023

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, 2023:

Financial Protection on Production

		Weighted Average Price per MMBtu										Fair value at December 31, 2023 ($ in millions)
	Volume (Bcf)	Swaps		Sold Puts		Purchased Puts		Sold Calls		Basis Differential
Natural Gas
2024
Fixed price swaps	528	$	3.54	$	—	$	—	$	—	$	—	$	448
Two-way costless collars	44	—		—		3.07		3.53		—		22
Three-way costless collars	88	—		2.47		3.20		4.09		—		35
Total	660											$	505
2025
Two-way costless collars	73	$	—	$	—	$	3.50	$	5.40	$	—	$	31
Three-way costless collars	161	—		2.59		3.66		5.88		—		56
Total	234											$	87
Basis swaps
2024	82	$	—	$	—	$	—	$	—	$	(0.72)	$	8
2025	9	—		—		—		—		(0.64)		4
Total	91											$	12

		Weighted Average Price per Bbl								Fair value at December 31, 2023 ($ in millions)
	Volume (MBbls)	Swaps		Sold Puts		Purchased Puts		Sold Calls
Oil
2024
Fixed price swaps	1,571	$	71.06	$	—	$	—	$	—	$	(1)
Two-way costless collars	512	—		—		70.00		85.63		2
Three-way costless collars	92	—		65.00		75.00		93.10		—
Total	2,175									$	1
2025
Fixed price swaps	41	$	77.66	$	—	$	—	$	—	$	—
Three-way costless collars	1,002	—		60.00		70.00		94.64		2
Total	1,043									$	2
Ethane
2024
Fixed price swaps	4,897	$	10.61	$	—	$	—	$	—	$	9
Propane
2024
Fixed price swaps	4,008	$	31.38	$	—	$	—	$	—	$	11
2025
Fixed price swaps	63	$	26.46	$	—	$	—	—		$	—
Normal Butane
2024
Fixed price swaps	329	$	40.74	$	—	$	—	$	—	$	1
Natural Gasoline
2024
Fixed price swaps	329	$	64.37	$	—	$	—	$	—	$	2

Other Derivative Contracts
	Volume (Bcf)	Weighted Average Strike Price per MMBtu		Fair value at December 31, 2023 ($ in millions)
Call Options – Natural Gas (Net)
2024	82	$	6.56	$	(1)
2025	73	7.00		(6)
2026	73	7.00		(11)
Total	228			$	(18)

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, 2023 and 2022:

Derivative Assets
	Balance Sheet Classification	Fair Value
(in millions)		December 31, 2023		December 31, 2022
Derivatives not designated as hedging instruments:
Fixed price swaps – natural gas	Derivative assets	$	466	$	—
Fixed price swaps – oil	Derivative assets	1		—
Fixed price swaps – ethane	Derivative assets	9		4
Fixed price swaps – propane	Derivative assets	12		9
Fixed price swaps – normal butane	Derivative assets	1		1
Fixed price swaps – natural gasoline	Derivative assets	2		1
Two-way costless collars – natural gas	Derivative assets	36		47
Two-way costless collars – oil	Derivative assets	3		—
Three-way costless collars – natural gas	Derivative assets	62		18
Three-way costless collars – oil	Derivative assets	1		1
Basis swaps – natural gas	Derivative assets	14		64
Put options – natural gas	Derivative assets	8		—
Fixed price swaps – natural gas	Other long-term assets	—		28
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	46		18
Three-way costless collars – natural gas	Other long-term assets	116		3
Three-way costless collars – oil	Other long-term assets	10		—
Basis swaps – natural gas	Other long-term assets	4		17
Put options – natural gas	Other long-term assets	—		4
Total derivative assets		$	791	$	218

Derivative Liabilities
	Balance Sheet Classification	Fair Value
(in millions)		December 31, 2023		December 31, 2022
Derivatives not designated as hedging instruments:
Fixed price swaps – natural gas	Derivative liabilities	$	18	$	581
Fixed price swaps – oil	Derivative liabilities	2		20
Fixed price swaps – ethane	Derivative liabilities	—		1
Fixed price swaps – propane	Derivative liabilities	1		—
Fixed price swaps – natural gasoline	Derivative liabilities	—		1
Two-way costless collars – natural gas	Derivative liabilities	14		235
Two-way costless collars – oil	Derivative liabilities	1		—
Three-way costless collars – natural gas	Derivative liabilities	27		311
Three-way costless collars – oil	Derivative liabilities	1		31
Basis swaps – natural gas	Derivative liabilities	6		69
Call options – natural gas	Derivative liabilities	1		70
Put options – natural gas	Derivative liabilities	8		—
Fixed price swaps – natural gas	Other long-term liabilities	—		281
Fixed price swaps – oil	Other long-term liabilities	—		4
Two-way costless collars – natural gas	Other long-term liabilities	15		56
Three-way costless collars – natural gas	Other long-term liabilities	60		20
Three-way costless collars – oil	Other long-term liabilities	8		—
Basis swaps – natural gas	Other long-term liabilities	—		1
Call options – natural gas	Other long-term liabilities	17		18
Total derivative liabilities		$	179	$	1,699

Net Derivative Position
	As of December 31,
	2023		2022
	(in millions)
Net current derivative assets (liabilities)	$	536	$	(1,174)
Net long-term derivative assets (liabilities)	76		(307)
Non-performance risk adjustment	(2)		3
Net total derivative assets (liabilities)	$	610	$	(1,478)

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, 2023 and 2022:

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		2023		2022
		(in millions)
Fixed price swaps – natural gas	Gain (Loss) on Derivatives	$	1,281	$	(166)
Fixed price swaps – oil	Gain (Loss) on Derivatives	22		46
Fixed price swaps – ethane	Gain (Loss) on Derivatives	5		12
Fixed price swaps – propane	Gain (Loss) on Derivatives	1		87
Fixed price swaps – normal butane	Gain (Loss) on Derivatives	—		27
Fixed price swaps – natural gasoline	Gain (Loss) on Derivatives	2		34
Two-way costless collars – natural gas	Gain (Loss) on Derivatives	279		(116)
Two-way costless collars – oil	Gain (Loss) on Derivatives	2		—
Two-way costless collars – ethane	Gain (Loss) on Derivatives	—		1
Three-way costless collars – natural gas	Gain (Loss) on Derivatives	402		117
Three-way costless collars – oil	Gain (Loss) on Derivatives	32		11
Three-way costless collars – propane	Gain (Loss) on Derivatives	—		4
Basis swaps – natural gas	Gain (Loss) on Derivatives	1		(57)
Call options – natural gas	Gain (Loss) on Derivatives	70		21
Put options – natural gas	Gain (Loss) on Derivatives	(4)		4
Fixed price swaps – natural gas storage	Gain (Loss) on Derivatives	—		1
Interest rate swaps	Gain (Loss) on Derivatives	—		(2)
Total gain on unsettled derivatives		$	2,093	$	24

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		2023		2022
		(in millions)
Fixed price swaps – natural gas	Gain (Loss) on Derivatives	$	300	$	(2,918)
Fixed price swaps – oil	Gain (Loss) on Derivatives	(27)		(129)
Fixed price swaps – ethane	Gain (Loss) on Derivatives	6		(49)
Fixed price swaps – propane	Gain (Loss) on Derivatives	26		(100)
Fixed price swaps – normal butane	Gain (Loss) on Derivatives	3		(35)
Fixed price swaps – natural gasoline	Gain (Loss) on Derivatives	1		(49)
Two-way costless collars – natural gas	Gain (Loss) on Derivatives	48		(448)
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	(19)		(1,319)
Three-way costless collars – oil	Gain (Loss) on Derivatives	(27)		(51)
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	43		128
Call options – natural gas	Gain (Loss) on Derivatives	(8)		(304)
Purchased fixed price swaps – natural gas storage	Gain (Loss) on Derivatives	—		1
Fixed price swaps – natural gas storage	Gain (Loss) on Derivatives	—		(3)
Total gain (loss) on settled derivatives		$	345	$	(5,283)

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

Total Gain (Loss) on Derivatives Recognized in Earnings
	For the years ended December 31,
	2023		2022
	(in millions)
Total gain on unsettled derivatives	$	2,093	$	24
Total gain (loss) on settled derivatives	345		(5,283)
Non-performance risk adjustment	(5)		—
Total gain (loss) on derivatives	$	2,433	$	(5,259)