Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2013

Table Text Block [Abstract]

Schedule of Derivative Instruments

The following is a summary of the Company’s derivative instruments related to its Oil and Natural-Gas Production/Processing Derivative Activities at September 30, 2013:

	2013 Settlement			2014 Settlement
Natural Gas
Two-Way Collars (thousand MMBtu/d)	600		(1)	—
Average price per MMBtu
Ceiling sold price (call)	$	4.00		$	—
Floor purchased price (put)	$	3.18		$	—
Three-Way Collars (thousand MMBtu/d)	—		(2)	600
Average price per MMBtu
Ceiling sold price (call)	$	—		$	5.01
Floor purchased price (put)	$	—		$	3.75
Floor sold price (put)	$	—		$	2.75
Fixed-Price Contracts (thousand MMBtu/d)	1,185			600
Average price per MMBtu	$	4.00		$	4.26
Crude Oil
Three-Way Collars (MBbls/d)	26			—
Average price per barrel
Ceiling sold price (call)	$	125.15		$	—
Floor purchased price (put)	$	105.00		$	—
Floor sold price (put)	$	85.00		$	—
Fixed-Price Contracts (MBbls/d)	167			—
Average price per barrel	$	102.74		$	—

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⁽¹⁾ The two-way collars have a contract term of April 2013 to October 2013.

⁽²⁾ The Company entered into offsetting purchased and sold natural-gas three-way collars of 450,000 MMBtu/d for 2013 settlement.

MMBtu—million British thermal units

MMBtu/d—million British thermal units per day

MBbls/d—thousand barrels per day

The Company had the following outstanding interest-rate swaps at September 30, 2013:

millions except percentages		Reference Period		Weighted-Average
Notional Principal Amount		Start	End	Interest Rate
$	750	June 2014	June 2024	6.00%
$	1,100	June 2014	June 2044	5.57%
$	50	September 2016	September 2026	5.91%
$	750	September 2016	September 2046	5.86%

Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The following summarizes the fair value of the Company’s derivative instruments:

	Gross Derivative Assets				Gross Derivative Liabilities
millions	September 30,		December 31,		September 30,			December 31,
Balance Sheet Classification	2013		2012		2013			2012
Commodity derivatives
Other current assets	$	359	$	475	$	(170	)	$	(197	)
Other assets	50		24		(13		)	(7		)
Accrued expenses	48		6		(61		)	(14		)
Other liabilities	—		1		(2		)	(7		)
	457		506		(246		)	(225		)
Interest-rate and other derivatives
Accrued expenses (1)	—		—		(550		)	—
Other liabilities (1)	—		—		(215		)	(1,194		)
	—		—		(765		)	(1,194		)
Total derivatives	$	457	$	506	$	(1,011	)	$	(1,419	)

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⁽¹⁾ Interest-rate swaps with June 2014 maturity dates were reclassified from other liabilities to accrued expenses during the second quarter of 2013.

The following summarizes realized and unrealized gains and losses related to derivative instruments:

millions	Three Months Ended   September 30, 2013									Nine Months Ended   September 30, 2013
Classification of (Gain) Loss Recognized	Realized			Unrealized			Total			Realized			Unrealized			Total
Commodity derivatives
Gathering, processing, and marketing sales (1)	$	2		$	(10	)	$	(8	)	$	9		$	(12	)	$	(3	)
(Gains) losses on derivatives, net	26			120			146			(46		)	81			35
Interest-rate and other derivatives
(Gains) losses on derivatives, net	—			(74		)	(74		)	—			(428		)	(428		)
Total (gains) losses on derivatives, net	$	28		$	36		$	64		$	(37	)	$	(359	)	$	(396	)
	Three Months Ended   September 30, 2012									Nine Months Ended   September 30, 2012
Classification of (Gain) Loss Recognized	Realized			Unrealized			Total			Realized			Unrealized			Total
Commodity derivatives
Gathering, processing, and marketing sales (1)	$	3		$	5		$	8		$	—		$	18		$	18
(Gains) losses on derivatives, net	(200		)	437			237			(600		)	369			(231		)
Interest-rate and other derivatives
(Gains) losses on derivatives, net	—			14			14			2			152			154
Total (gains) losses on derivatives, net	$	(197	)	$	456		$	259		$	(598	)	$	539		$	(59	)

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⁽¹⁾ Represents the effect of marketing and trading derivative activities.

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following summarizes the fair value of the Company’s derivative assets and liabilities, by input level within the fair-value hierarchy:

millions
September 30, 2013	Level 1			Level 2			Level 3		Netting (1)			Collateral			Total
Assets
Commodity derivatives
Financial institutions	$	4		$	379		$	—	$	(226	)	$	(1	)	$	156
Other counterparties	—			74			—		(6		)	—			68
Total derivative assets	$	4		$	453		$	—	$	(232	)	$	(1	)	$	224
Liabilities
Commodity derivatives
Financial institutions	$	(4	)	$	(232	)	$	—	$	226		$	1		$	(9	)
Other counterparties	—			(10		)	—		6			—			(4		)
Interest-rate and other derivatives	—			(765		)	—		—			—			(765		)
Total derivative liabilities	$	(4	)	$	(1,007	)	$	—	$	232		$	1		$	(778	)
December 31, 2012
Assets
Commodity derivatives
Financial institutions	$	6		$	453		$	—	$	(206	)	$	—		$	253
Other counterparties	—			47			—		(5		)	—			42
Total derivative assets	$	6		$	500		$	—	$	(211	)	$	—		$	295
Liabilities
Commodity derivatives
Financial institutions	$	(6	)	$	(202	)	$	—	$	206		$	1		$	(1	)
Other counterparties	—			(17		)	—		5			—			(12		)
Interest-rate and other derivatives	—			(1,194		)	—		—			—			(1,194		)
Total derivative liabilities	$	(6	)	$	(1,413	)	$	—	$	211		$	1		$	(1,207	)

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⁽¹⁾  Represents the impact of netting commodity derivative assets and liabilities with counterparties where the Company has the contractual right and intends to net settle.