Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2017

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, 2017:

	2017 Settlement		2018 Settlement
Oil
Three-Way Collars (MBbls/d)	91		—
Average price per barrel
Ceiling sold price (call)	$	59.80	$	—
Floor purchased price (put)	$	50.00	$	—
Floor sold price (put)	$	40.00	$	—
Natural Gas
Three-Way Collars (thousand MMBtu/d)	857		250
Average price per MMBtu
Ceiling sold price (call)	$	3.64	$	3.54
Floor purchased price (put)	$	2.85	$	2.75
Floor sold price (put)	$	2.10	$	2.00

The Company had the following outstanding interest-rate swaps at June 30, 2017:

millions except percentages			Mandatory	Weighted-Average
Notional Principal Amount		Reference Period	Termination Date	Interest Rate
$	125	September 2016 – 2046	September 2018	6.782%
$	550	September 2016 – 2046	September 2020	6.418%
$	125	September 2016 – 2046	September 2022	6.835%
$	200	September 2017 – 2047	September 2018	6.049%
$	100	September 2017 – 2047	September 2020	6.891%
$	250	September 2017 – 2047	September 2021	6.570%
$	250	September 2017 – 2047	September 2023	6.761%

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	2017		2016		2017			2016
Commodity derivatives
Other current assets	$	88	$	10	$	(13	)	$	(3	)
Other assets	8		9		—			—
Other current liabilities	1		66		(9		)	(201		)
Other liabilities	—		—		(3		)	(12		)
	97		85		(25		)	(216		)
Interest-rate derivatives
Other current assets	12		8		—			—
Other assets	37		23		—			—
Other current liabilities	—		—		(69		)	(48		)
Other liabilities	—		—		(1,338		)	(1,328		)
	49		31		(1,407		)	(1,376		)
Total derivatives	$	146	$	116	$	(1,432	)	$	(1,592	)

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	2017			2016		2017			2016
Commodity derivatives
Gathering, processing, and marketing sales (1)	$	—		$	4	$	—		$	6
(Gains) losses on derivatives, net	(72		)	94		(207		)	66
Interest-rate derivatives
(Gains) losses on derivatives, net	104			213		92			538
Total (gains) losses on derivatives, net	$	32		$	311	$	(115	)	$	610

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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
June 30, 2017
Assets
Commodity derivatives	$	—		$	97		$	—	$	(14	)	$	—	$	83
Interest-rate derivatives	—			49			—		—			—		49
Total derivative assets	$	—		$	146		$	—	$	(14	)	$	—	$	132
Liabilities
Commodity derivatives	$	—		$	(25	)	$	—	$	14		$	—	$	(11	)
Interest-rate derivatives	—			(1,407		)	—		—			177		(1,230		)
Total derivative liabilities	$	—		$	(1,432	)	$	—	$	14		$	177	$	(1,241	)
December 31, 2016
Assets
Commodity derivatives	$	2		$	83		$	—	$	(69	)	$	—	$	16
Interest-rate derivatives	—			31			—		—			—		31
Total derivative assets	$	2		$	114		$	—	$	(69	)	$	—	$	47
Liabilities
Commodity derivatives	$	(3	)	$	(213	)	$	—	$	69		$	6	$	(141	)
Interest-rate derivatives	—			(1,376		)	—		—			117		(1,259		)
Total derivative liabilities	$	(3	)	$	(1,589	)	$	—	$	69		$	123	$	(1,400	)

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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.