Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 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 December 31, 2015:

	2016 Settlement
Oil
Three-Way Collars (MBbls/d)	83
Average price per barrel
Ceiling sold price (call)	$	63.82
Floor purchased price (put)	$	54.46
Floor sold price (put)	$	42.77
Natural Gas
Fixed-Price Contracts (thousand MMBtu/d)	38
Average price per MMBtu	$	2.53
NGLs
Fixed-Price Contracts (MBbls/d)	4
Average price per barrel	$	13.07

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MMBtu—million British thermal units

MMBtu/d—million British thermal units per day

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

millions	Gross Derivative Assets				Gross Derivative Liabilities
Balance Sheet Classification	2015		2014		2015			2014
Commodity derivatives
Other current assets	$	462	$	421	$	(177	)	$	(118	)
Other assets	8		1		—			—
Accrued expenses	—		71		(3		)	(114		)
Other liabilities	—		—		—			(6		)
	470		493		(180		)	(238		)
Interest-rate derivatives
Other current assets	2		—		—			—
Other assets	54		—		—			—
Accrued expenses	—		—		(54		)	—
Other liabilities	—		—		(1,488		)	(1,217		)
	56		—		(1,542		)	(1,217		)
Total derivatives	$	526	$	493	$	(1,722	)	$	(1,455	)

The following summarizes gains and losses related to derivative instruments:

millions
Classification of (Gain) Loss Recognized	2015			2014			2013
Commodity derivatives
Gathering, processing, and marketing sales (1)	$	(1	)	$	10		$	6
(Gains) losses on derivatives, net	(367		)	(589		)	141
Interest-rate derivatives
(Gains) losses on derivatives, net	268			786			(539		)
Total (gains) losses on derivatives, net	$	(100	)	$	207		$	(392	)

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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, 2015
Assets
Commodity derivatives	$	10		$	460		$	—	$	(178	)	$	(8	)	$	284
Interest-rate derivatives	—			56			—		—			—			56
Total derivative assets	$	10		$	516		$	—	$	(178	)	$	(8	)	$	340
Liabilities
Commodity derivatives	$	(1	)	$	(179	)	$	—	$	178		$	—		$	(2	)
Interest-rate derivatives	—			(1,542		)	—		—			58			(1,484		)
Total derivative liabilities	$	(1	)	$	(1,721	)	$	—	$	178		$	58		$	(1,486	)
December 31, 2014
Assets
Commodity derivatives	$	—		$	493		$	—	$	(189	)	$	(13	)	$	291
Total derivative assets	$	—		$	493		$	—	$	(189	)	$	(13	)	$	291
Liabilities
Commodity derivatives	$	—		$	(238	)	$	—	$	189		$	—		$	(49	)
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.