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Derivative Instruments (Tables)
 9 Months Ended
Sep. 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 September 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)
—

 
34

Average price per MMBtu
$
—

 
$
3.18

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

NGLs
 
 
 
Fixed-Price Contracts (MBbls/d)
7

 
3

Average price per barrel
$
14.09

 
$
14.87

__________________________________________________________________
(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 September 30, 2015: 
millions except percentages
 
 
 
Mandatory
 
Weighted-Average
Notional Principal Amount
 
Reference Period
 
Termination Date
 
Interest Rate
$
50

 
 
September 2016 – 2026
 
September 2016
 
5.910%
$
50

 
 
September 2016 – 2046
 
September 2016
 
6.290%
$
250

 
 
September 2016 – 2046
 
September 2018
 
6.310%
$
300

 
 
September 2016 – 2046
 
September 2020
 
6.509%
$
250

 
 
September 2016 – 2046
 
September 2021
 
6.724%
$
200

 
 
September 2017 – 2047
 
September 2018
 
6.049%
$
300

 
 
September 2017 – 2047
 
September 2020
 
6.569%
$
500

 
 
September 2017 – 2047
 
September 2021
 
6.654%
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
 
2015
 
2014
 
2015
 
2014
Commodity derivatives
 
 
 
 
 
 
 
 
Other current assets
 
$
246

 
$
421

 
$
(74
)
 
$
(118
)
Other assets
 
42

 
1

 
(16
)
 
—

Accrued expenses
 
27

 
71

 
(43
)
 
(114
)
Other liabilities
 
—

 
—

 
—

 
(6
)
 
 
315

 
493

 
(133
)
 
(238
)
Interest-rate derivatives
 
 
 
 
 
 
 
 
Other liabilities
 
—

 
—

 
(1,462
)
 
(1,217
)
Total derivatives
 
$
315

 
$
493

 
$
(1,651
)
 
$
(1,455
)

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
 
2015
 
2014
 
2015
 
2014
Commodity derivatives
 
 
 
 
 
 
 
 
Gathering, processing, and marketing sales (1)
 
$
(1
)
 
$
(1
)
 
$
—

 
$
9

(Gains) losses on derivatives, net
 
(125
)
 
(419
)
 
(177
)
 
(40
)
Interest-rate derivatives
 
 
 
 
 
 
 
 
(Gains) losses on derivatives, net
 
407

 
96

 
300

 
493

Total (gains) losses on derivatives, net
 
$
281

 
$
(324
)
 
$
123

 
$
462

__________________________________________________________________
(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, 2015
Level 1
 
Level 2
 
Level 3
 
Netting (1)
 
Collateral
 
Total
Assets
 
 
 
 
 
 
 
 
 
 
 
Commodity derivatives
 
 
 
 
 
 
 
 
 
 
 
Financial institutions
$
4

 
$
288

 
$
—

 
$
(115
)
 
$
(6
)
 
$
171

Other counterparties
—

 
23

 
—

 
(3
)
 
—

 
20

Total derivative assets
$
4

 
$
311

 
$
—

 
$
(118
)
 
$
(6
)
 
$
191

Liabilities
 
 
 
 
 
 
 
 
 
 
 
Commodity derivatives
 
 
 
 
 
 
 
 
 
 
 
Financial institutions
$
—

 
$
(126
)
 
$
—

 
$
115

 
$
—

 
$
(11
)
Other counterparties
—

 
(7
)
 
—

 
3

 
—

 
(4
)
Interest-rate derivatives
—

 
(1,518
)
 
—

 
—

 
67

 
(1,451
)
Total derivative liabilities
$
—

 
$
(1,651
)
 
$
—

 
$
118

 
$
67

 
$
(1,466
)
 
 
 
 
 
 
 
 
 
 
 
 
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
)
 __________________________________________________________________
(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.