Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

The following is a summary of the Company’s derivative instruments related to oil and natural-gas production/processing derivative activities at June 30, 2015:

	2015 Settlement		2016 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	$	—
Fixed-Price Contracts (thousand MMBtu/d)	7		28
Average price per MMBtu	$	2.56	$	3.22
Extendable Fixed-Price Contracts (thousand MMBtu/d) (1)	170		—
Average price per MMBtu	$	4.17	$	—
Oil
Three-Way Collars (MBbls/d)	—		28
Average price per barrel
Ceiling sold price (call)	$	—	$	69.29
Floor purchased price (put)	$	—	$	61.43
Floor sold price (put)	$	—	$	46.43

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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.

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 June 30, 2015:

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	6.06%

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	June 30,		December 31,		June 30,			December 31,
Balance Sheet Classification	2015		2014		2015			2014
Commodity derivatives
Other current assets	$	238	$	421	$	(73	)	$	(118	)
Other assets	5		1		—			—
Accrued expenses	60		71		(89		)	(114		)
Other liabilities	34		—		(40		)	(6		)
	337		493		(202		)	(238		)
Interest-rate derivatives
Other liabilities	—		—		(1,110		)	(1,217		)
Total derivatives	$	337	$	493	$	(1,312	)	$	(1,455	)

The following summarizes gains and losses related to derivative instruments:

millions	Three Months Ended   June 30,					Six Months Ended   June 30,
Classification of (Gain) Loss Recognized	2015			2014		2015			2014
Commodity derivatives
Gathering, processing, and marketing sales (1)	$	1		$	2	$	1		$	10
(Gains) losses on derivatives, net	1			164		(52		)	379
Interest-rate derivatives
(Gains) losses on derivatives, net	(312		)	159		(107		)	397
Total (gains) losses on derivatives, net	$	(310	)	$	325	$	(158	)	$	786

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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
June 30, 2015	Level 1		Level 2			Level 3		Netting (1)			Collateral			Total
Assets
Commodity derivatives
Financial institutions	$	—	$	314		$	—	$	(163	)	$	(3	)	$	148
Other counterparties	—		23			—		(4		)	—			19
Total derivative assets	$	—	$	337		$	—	$	(167	)	$	(3	)	$	167
Liabilities
Commodity derivatives
Financial institutions	$	—	$	(192	)	$	—	$	163		$	—		$	(29	)
Other counterparties	—		(10		)	—		4			—			(6		)
Interest-rate derivatives	—		(1,110		)	—		—			100			(1,010		)
Total derivative liabilities	$	—	$	(1,312	)	$	—	$	167		$	100		$	(1,045	)
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		$	—		$	(47	)
Other counterparties	—		(4		)	—		2			—			(2		)
Interest-rate derivatives	—		(1,217		)	—		—			23			(1,194		)
Total derivative liabilities	$	—	$	(1,455	)	$	—	$	189		$	23		$	(1,243	)

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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.