Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2016

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, 2016:

	2016 Settlement		2017 Settlement		2018 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
Three-Way Collars (thousand MMBtu/d)	—		682		250
Average price per MMBtu
Ceiling sold price (call)	$	—	$	3.60	$	3.54
Floor purchased price (put)	$	—	$	2.75	$	2.75
Floor sold price (put)	$	—	$	2.00	$	2.00
Fixed-Price Contracts (thousand MMBtu/d)	—		37		—
Average price per MMBtu	$	—	$	3.14	$	—
NGLs
Fixed-Price Contracts (MBbls/d)	—		2		—
Average price per barrel	$	—	$	15.84	$	—

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MBbls/d—thousand barrels per day

MMBtu/d—million British thermal units per day

MMBtu—million British thermal units

The Company had the following outstanding interest-rate swaps at September 30, 2016:

millions except percentages			Mandatory	Weighted-Average
Notional Principal Amount		Reference Period	Termination Date	Interest Rate
$	500	September 2016 – 2046	September 2018	6.559%
$	300	September 2016 – 2046	September 2020	6.509%
$	450	September 2017 – 2047	September 2018	6.445%
$	100	September 2017 – 2047	September 2020	6.891%
$	250	September 2017 – 2047	September 2021	6.570%

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	2016		2015		2016			2015
Commodity derivatives
Other current assets	$	65	$	462	$	(8	)	$	(177	)
Other assets	29		8		(2		)	—
Accrued expenses	2		—		(18		)	(3		)
Other liabilities	3		—		(22		)	—
	99		470		(50		)	(180		)
Interest-rate derivatives
Other current assets	4		2		—			—
Other assets	18		54		—			—
Accrued expenses	—		—		(48		)	(54		)
Other liabilities	—		—		(1,806		)	(1,488		)
	22		56		(1,854		)	(1,542		)
Total derivatives	$	121	$	526	$	(1,904	)	$	(1,722	)

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	2016			2015			2016		2015
Commodity derivatives
Gathering, processing, and marketing sales (1)	$	(1	)	$	(1	)	$	5	$	—
(Gains) losses on derivatives, net	(59		)	(125		)	7		(177		)
Interest-rate derivatives
(Gains) losses on derivatives, net	84			407			622		300
Total (gains) losses on derivatives, net	$	24		$	281		$	634	$	123

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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
September 30, 2016	Level 1			Level 2			Level 3		Netting (1)			Collateral			Total
Assets
Commodity derivatives	$	—		$	99		$	—	$	(14	)	$	—		$	85
Interest-rate derivatives	—			22			—		—			—			22
Total derivative assets	$	—		$	121		$	—	$	(14	)	$	—		$	107
Liabilities
Commodity derivatives	$	(1	)	$	(49	)	$	—	$	14		$	2		$	(34	)
Interest-rate derivatives	—			(1,854		)	—		—			422			(1,432		)
Total derivative liabilities	$	(1	)	$	(1,903	)	$	—	$	14		$	424		$	(1,466	)
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	)

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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.