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DERIVATIVES AND RISK MANAGEMENT (Tables)
 6 Months Ended
Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments Notional Amount, Weighted Average Contract Prices and Fair Value As of June 30, 2024 and June 30, 2023, the Company’s derivative financial instruments consisted of fixed price swaps, two-way costless collars, three-way costless collars, basis swaps, and options (calls and puts). A description of the Company’s derivative financial instruments is provided below:
Fixed price swapsIf 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 collarsArrangements 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 collarsArrangements 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 swapsArrangements 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.
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 June 30, 2024:
Financial Protection on Production
 Weighted Average Price per MMBtu 
Volume (Bcf)
SwapsSold PutsPurchased PutsSold CallsBasis Differential
Fair Value at
June 30, 2024
(in millions)
Natural Gas       
2024       
Fixed price swaps267 $3.60 $— $— $— $— $195 
Two-way costless collars22 — — 3.07 3.53 — 7 
Three-way costless collars42 — 2.50 3.25 4.24 — 17 
Total331 $219 
2025
Fixed price swaps110 $3.58 $— $— $— $— $11 
Two-way costless collars73 — — 3.50 5.40 — 30 
Three-way costless collars161 — 2.59 3.66 5.88 — 64 
Total344 $105 
Basis Swaps
202460 $— $— $— $— $(0.71)$13 
20259 — — — — (0.64)3 
Total69 $16 
Volume
(MBbls)
Weighted Average Strike Price per Bbl
Fair Value at
June 30, 2024
(in millions)
SwapsSold PutsPurchased PutsSold Calls
Oil
2024
Fixed price swaps580 $71.50 $— $— $— $(5)
Two-way costless collars184 — — 70.00 88.56 — 
Three-way costless collars534 — 56.72 66.72 88.26 — 
Total1,298 $(5)
2025
Fixed price swaps41 $77.66 $— $— $— $— 
Three-way costless collars1,324 — 58.96 68.96 92.73 (1)
Total1,365 $(1)
2026
Three-way costless collars225 — 60.00 70.00 83.32 — 
Ethane
2024
Fixed price swaps4,085 $9.77 $— $— $— $6 
2025
Fixed price swaps3,650 $10.36 $— $— $— $(2)
Propane   
2024   
Fixed price swaps3,119 $31.25 $— $— $— $(13)
2025
Fixed price swaps2,071 $30.73 $— $— $— $(4)
Normal Butane
2024
Fixed price swaps718 $39.42 $— $— $— $(2)
2025
Fixed price swaps548 $35.28 $— $— $— $(1)
Natural Gasoline
2024
Fixed price swaps810 $61.45 $— $— $— $(4)
2025
Fixed price swaps821 $56.89 $— $— $— $(5)
Other Derivative Contracts
Volume
(Bcf)
Weighted Average Strike Price per MMBtu
Fair Value at
June 30, 2024
(in millions)
Call Options – Natural Gas (Net)
202437 $6.00 $(1)
202573 7.00 (3)
202673 7.00 (10)
Total183 $(14)
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 June 30, 2024 and December 31, 2023:
Derivative Assets    
Fair Value
(in millions)Balance Sheet ClassificationJune 30, 2024 December 31, 2023
Derivatives not designated as hedging instruments: 
Fixed price swaps – natural gasDerivative assets$227 $466 
Fixed price swaps – oilDerivative assets— 1 
Fixed price swaps – ethaneDerivative assets7 9 
Fixed price swaps – propaneDerivative assets— 12 
Fixed price swaps – normal butaneDerivative assets— 1 
Fixed price swaps – natural gasolineDerivative assets— 2 
Two-way costless collars – natural gasDerivative assets31 36 
Two-way costless collars – oilDerivative assets— 3 
Three-way costless collars – natural gasDerivative assets81 62 
Three-way costless collars – oilDerivative assets3 1 
Basis swaps – natural gasDerivative assets14 14 
Put options – natural gasDerivative assets— 8 
Fixed price swaps – natural gasOther long-term assets5 — 
Two-way costless collars – natural gasOther long-term assets18 46 
Three-way costless collars – natural gasOther long-term assets48 116 
Three-way costless collars – oilOther long-term assets6 10 
Basis swaps – natural gasOther long-term assets3 4 
Total derivative assets $443 $791 
Derivative Liabilities   
Fair Value
(in millions)Balance Sheet ClassificationJune 30, 2024December 31, 2023
Derivatives not designated as hedging instruments: 
Fixed price swaps – natural gasDerivative liabilities$19 $18 
Fixed price swaps – oilDerivative liabilities5 2 
Fixed price swaps – ethaneDerivative liabilities1 — 
Fixed price swaps – propaneDerivative liabilities16 1 
Fixed price swaps – normal butaneDerivative liabilities3 — 
Fixed price swaps – natural gasolineDerivative liabilities7 — 
Two-way costless collars – natural gasDerivative liabilities6 14 
Two-way costless collars – oilDerivative liabilities— 1 
Three-way costless collars – natural gasDerivative liabilities26 27 
Three-way costless collars – oilDerivative liabilities3 1 
Basis swaps – natural gasDerivative liabilities1 6 
Call options – natural gasDerivative liabilities2 1 
Put options – natural gasDerivative liabilities— 8 
Fixed price swaps – natural gasLong-term derivative liabilities7 — 
Fixed price swaps – ethaneLong-term derivative liabilities2 — 
Fixed price swaps – propaneLong-term derivative liabilities1 — 
Fixed price swaps – natural gasolineLong-term derivative liabilities2 — 
Two-way costless collars – natural gasLong-term derivative liabilities6 15 
Three-way costless collars – natural gasLong-term derivative liabilities22 60 
Three-way costless collars – oilLong-term derivative liabilities7 8 
Call options – natural gasLong-term derivative liabilities12 17 
Total derivative liabilities $148 $179 
Net Derivative Position
June 30, 2024December 31, 2023
(in millions)
Net current derivative asset$274 $536 
Net long-term derivative asset21 76 
Non-performance risk adjustment— (2)
Net total derivative asset$295 $610 
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 and six months ended June 30, 2024 and 2023:

Unsettled Gain (Loss) on Derivatives Recognized in Earnings
Consolidated Statement of Operations Classification of Gain (Loss) on Derivatives, UnsettledFor the three months ended June 30,For the six months ended June 30,
Derivative Instrument2024202320242023
(in millions)
Fixed price swaps – natural gasGain (Loss) on Derivatives$(280)$(24)$(242)$937 
Fixed price swaps – oilGain (Loss) on Derivatives4 10 (4)22 
Fixed price swaps – ethaneGain (Loss) on Derivatives(6)(9)(5)— 
Fixed price swaps – propaneGain (Loss) on Derivatives1 28 (28)29 
Fixed price swaps – normal butaneGain (Loss) on Derivatives(1)6 (4)7 
Fixed price swaps – natural gasolineGain (Loss) on Derivatives— 6 (11)7 
Two-way costless collars – natural gasGain (Loss) on Derivatives(20)(11)(16)230 
Two-way costless collars – oilGain (Loss) on Derivatives1 1 (2)1 
Three-way costless collars – natural gasGain (Loss) on Derivatives(11)27 (10)290 
Three-way costless collars – oilGain (Loss) on Derivatives— 9 (3)21 
Basis swaps – natural gasGain (Loss) on Derivatives25 98 4 68 
Call options – natural gasGain (Loss) on Derivatives1 (34)4 27 
Sold put options - natural gasGain (Loss) on Derivatives— 1 8 (5)
Purchased put options – natural gasGain (Loss) on Derivatives— (1)(8)1 
Total gain (loss) on unsettled derivatives$(286)$107 $(317)$1,635 
Settled Gain (Loss) on Derivatives Recognized in Earnings (1)
Consolidated Statement of Operations Classification of Gain (Loss) on Derivatives, SettledFor the three months ended June 30,For the six months ended June 30,
Derivative Instrument2024202320242023
(in millions)
Fixed price swaps – natural gasGain (Loss) on Derivatives$232 $160 $372 $115 
Fixed price swaps – oilGain (Loss) on Derivatives(4)(3)(8)(7)
Fixed price swaps – ethaneGain (Loss) on Derivatives4 5 7 6 
Fixed price swaps – propaneGain (Loss) on Derivatives— 11 (2)12 
Fixed price swaps – normal butaneGain (Loss) on Derivatives1 1 — 1 
Fixed price swaps – natural gasolineGain (Loss) on Derivatives(2)1 (3)1 
Two-way costless collars – natural gasGain (Loss) on Derivatives13 31 22 31 
Three-way costless collars – natural gasGain (Loss) on Derivatives13 17 29 (16)
Three-way costless collars – oilGain (Loss) on Derivatives— (6)— (13)
Basis swaps – natural gasGain (Loss) on Derivatives(7)(7)(11)(36)
Call options – natural gasGain (Loss) on Derivatives— — — (7)
Sold put options - natural gasGain (Loss) on Derivatives— — (10)— 
Purchased put options – natural gasGain (Loss) on Derivatives— — 10 — 
Total gain on settled derivatives$250 $210 $406 $87 
Total gain (loss) on derivatives (2)
$(35)$317 $91 $1,718 
(1)The Company calculates gain (loss) on derivatives, settled, as the summation of gains and losses on positions that settled within the period.
(2)Total gain (loss) on derivatives includes non-performance risk adjustments of $1 million in gains for the three months ended June 30, 2024 and $2 million in gains and $4 million in losses for the six months ended June 30, 2024 and June 30, 2023, respectively.
Total Gain (Loss) on Derivatives Recognized in Earnings
For the three months ended June 30,For the six months ended June 30,
2024202320242023
(in millions)
Total gain (loss) on unsettled derivatives$(286)$107 $(317)$1,635 
Total gain on settled derivatives250 210 406 87 
Non-performance risk adjustment1 — 2 (4)
Total gain (loss) on derivatives$(35)$317 $91 $1,718