Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 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 natural-gas production/processing derivative activities at December 31, 2014:

	2015 Settlement
Natural Gas
Three-Way Collars (thousand MMBtu/d)	635
Average price per MMBtu
Ceiling sold price (call)	$	4.76
Floor purchased price (put)	$	3.75
Floor sold price (put)	$	2.75
Extendable Fixed-Price Contracts (thousand MMBtu/d) (1)	170
Average price per MMBtu	$	4.17

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⁽¹⁾  The extendable fixed-price contracts have a contract term of January 2015 to December 2015 with an option for the counterparty to extend the contract term to December 2016 at the same price.

The Company had the following outstanding interest-rate swaps at December 31, 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 at December 31:

millions	Gross Derivative Assets				Gross Derivative Liabilities
Balance Sheet Classification	2014		2013		2014			2013
Commodity derivatives
Other current assets	$	421	$	181	$	(118	)	$	(102	)
Other assets	1		89		—			(66		)
Accrued expenses	71		106		(114		)	(149		)
Other liabilities	—		4		(6		)	(15		)
	493		380		(238		)	(332		)
Interest-rate and other derivatives
Accrued expenses	—		—		—			(480		)
Other liabilities	—		—		(1,217		)	(174		)
	—		—		(1,217		)	(654		)
Total derivatives	$	493	$	380	$	(1,455	)	$	(986	)

The following summarizes gains and losses related to derivative instruments:

millions
Classification of (Gain) Loss Recognized	2014			2013			2012
Commodity derivatives
Gathering, processing, and marketing sales (1)	$	10		$	6		$	18
(Gains) losses on derivatives, net	(589		)	141			(387		)
Interest-rate and other derivatives
(Gains) losses on derivatives, net	786			(539		)	61
Total (gains) losses on derivatives, net	$	207		$	(392	)	$	(308	)

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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	Level 1		Level 2			Level 3		Netting (1)			Collateral			Total
December 31, 2014
Assets
Commodity derivatives
Financial institutions	$	—	$	471		$	—	$	(187	)	$	(13	)	$	271
Other counterparties	—		22			—		(2		)	—			20
Total derivative assets	$	—	$	493		$	—	$	(189	)	$	(13	)	$	291
Liabilities
Commodity derivatives
Financial institutions	$	—	$	(234	)	$	—	$	187		$	23		$	(24	)
Other counterparties	—		(4		)	—		2			—			(2		)
Interest-rate and other derivatives	—		(1,217		)	—		—			—			(1,217		)
Total derivative liabilities	$	—	$	(1,455	)	$	—	$	189		$	23		$	(1,243	)
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.