Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2014

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 Activities at March 31, 2014:

	2014 Settlement		2015 Settlement
Natural Gas
Three-Way Collars (thousand MMBtu/d)	600		635
Average price per MMBtu
Ceiling sold price (call)	$	5.01	$	4.76
Floor purchased price (put)	$	3.75	$	3.75
Floor sold price (put)	$	2.75	$	2.75
Fixed-Price Contracts (thousand MMBtu/d)	600		—
Average price per MMBtu	$	4.26	$	—
Extendable Fixed-Price Contracts (thousand MMBtu/d) (1)	400		—
Average price per MMBtu	$	4.19	$	—
Crude Oil
Fixed-Price Contracts (MBbls/d)	107		—
Average price per barrel	$	100.58	$	—

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⁽¹⁾  The extendable fixed-price contracts have a remaining contract term of April 2014 to June 2014 with an option to extend the contract term to December 2014 at the same price.

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 March 31, 2014:

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	March 31,		December 31,		March 31,			December 31,
Balance Sheet Classification	2014		2013		2014			2013
Commodity derivatives
Other current assets	$	40	$	181	$	(15	)	$	(102	)
Other assets	23		89		(9		)	(66		)
Accrued expenses	52		106		(166		)	(149		)
Other liabilities	1		4		(3		)	(15		)
	116		380		(193		)	(332		)
Interest-rate and other derivatives
Accrued expenses	—		—		(628		)	(480		)
Other liabilities	—		—		(264		)	(174		)
	—		—		(892		)	(654		)
Total derivatives	$	116	$	380	$	(1,085	)	$	(986	)

The following summarizes gains and losses related to derivative instruments:

millions	Three Months Ended   March 31,
Classification of (Gain) Loss Recognized	2014		2013
Commodity derivatives
Gathering, processing, and marketing sales (1)	$	8	$	8
(Gains) losses on derivatives, net	215		283
Interest-rate and other derivatives
(Gains) losses on derivatives, net	238		(92		)
Total (gains) losses on derivatives, net	$	461	$	199

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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
March 31, 2014	Level 1		Level 2			Level 3		Netting (1)			Collateral		Total
Assets
Commodity derivatives
Financial institutions	$	—	$	90		$	—	$	(73	)	$	—	$	17
Other counterparties	—		26			—		(4		)	—		22
Total derivative assets	$	—	$	116		$	—	$	(77	)	$	—	$	39
Liabilities
Commodity derivatives
Financial institutions	$	—	$	(171	)	$	—	$	73		$	13	$	(85	)
Other counterparties	—		(22		)	—		4			—		(18		)
Interest-rate and other derivatives	—		(892		)	—		—			—		(892		)
Total derivative liabilities	$	—	$	(1,085	)	$	—	$	77		$	13	$	(995	)
December 31, 2013
Assets
Commodity derivatives
Financial institutions	$	—	$	211		$	—	$	(153	)	$	—	$	58
Other counterparties	—		169			—		(126		)	—		43
Total derivative assets	$	—	$	380		$	—	$	(279	)	$	—	$	101
Liabilities
Commodity derivatives
Financial institutions	$	—	$	(200	)	$	—	$	153		$	7	$	(40	)
Other counterparties	—		(132		)	—		126			—		(6		)
Interest-rate and other derivatives	—		(654		)	—		—			—		(654		)
Total derivative liabilities	$	—	$	(986	)	$	—	$	279		$	7	$	(700	)

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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.