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Derivative Instruments (Tables)
 9 Months Ended
Sep. 30, 2014
Derivative Instruments and Hedging Activities Disclosure [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, 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)
1,000

 
—

Average price per MMBtu
$
4.23

 
$
—

Crude Oil
 
 
 
Three-Way Collars (MBbls/d)
—

 
25

Average price per barrel
 
 
 
Ceiling sold price (call)
$
—

 
$
117.55

Floor purchased price (put)
$
—

 
$
100.00

Floor sold price (put)
$
—

 
$
85.00

Fixed-Price Contracts (MBbls/d)
140

 
—

Average price per barrel
$
101.94

 
$
—

__________________________________________________________________
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, 2014: 
millions except percentages
 
Reference Period
 
Weighted-Average
Notional Principal Amount
 
Start
 
End
 
Interest Rate
$
50

 
 
September 2016
 
September 2026
 
5.91%
$
1,850

 
 
September 2016
 
September 2046
 
6.05%
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
 
2014
 
2013
 
2014
 
2013
Commodity derivatives
 
 
 
 
 
 
 
 
Other current assets
 
$
255

 
$
181

 
$
(49
)
 
$
(102
)
Other assets
 
27

 
89

 
(11
)
 
(66
)
Accrued expenses
 
6

 
106

 
(10
)
 
(149
)
Other liabilities
 
1

 
4

 
(2
)
 
(15
)
 
 
289

 
380

 
(72
)
 
(332
)
Interest-rate and other derivatives
 
 
 
 
 
 
 
 
Accrued expenses
 
—

 
—

 
—

 
(480
)
Other liabilities
 
—

 
—

 
(925
)
 
(174
)
 
 
—

 
—

 
(925
)
 
(654
)
Total derivatives
 
$
289

 
$
380

 
$
(997
)
 
$
(986
)

The following summarizes gains and losses related to derivative instruments:
millions
 
Three Months Ended 
 September 30,
 
Nine Months Ended 
 September 30,
Classification of (Gain) Loss Recognized
 
2014
 
2013
 
2014
 
2013
Commodity derivatives
 
 
 
 
 
 
 
 
Gathering, processing, and marketing sales (1)
 
$
(1
)
 
$
(8
)
 
$
9

 
$
(3
)
(Gains) losses on derivatives, net
 
(419
)
 
146

 
(40
)
 
35

Interest-rate and other derivatives
 
 
 
 
 
 
 
 
(Gains) losses on derivatives, net
 
96

 
(74
)
 
493

 
(428
)
Total (gains) losses on derivatives, net
 
$
(324
)
 
$
64

 
$
462

 
$
(396
)
__________________________________________________________________
(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, 2014
Level 1
 
Level 2
 
Level 3
 
Netting (1)
 
Collateral
 
Total
Assets
 
 
 
 
 
 
 
 
 
 
 
Commodity derivatives
 
 
 
 
 
 
 
 
 
 
 
Financial institutions
$
—

 
$
265

 
$
—

 
$
(68
)
 
$
—

 
$
197

Other counterparties
—

 
24

 
—

 
—

 
—

 
24

Total derivative assets
$
—

 
$
289

 
$
—

 
$
(68
)
 
$
—

 
$
221

Liabilities
 
 
 
 
 
 
 
 
 
 
 
Commodity derivatives
 
 
 
 
 
 
 
 
 
 
 
Financial institutions
$
—

 
$
(70
)
 
$
—

 
$
68

 
$
1

 
$
(1
)
Other counterparties
—

 
(2
)
 
—

 
—

 
—

 
(2
)
Interest-rate and other derivatives
—

 
(925
)
 
—

 
—

 
—

 
(925
)
Total derivative liabilities
$
—

 
$
(997
)
 
$
—

 
$
68

 
$
1

 
$
(928
)
 
 
 
 
 
 
 
 
 
 
 
 
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
)
 __________________________________________________________________
(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.